Document:

<PAGE>

                                                                 EXHIBIT 10.22

[SYNPLICITY LOGO]

                             DISTRIBUTOR AGREEMENT

Effective Date:       April 1, 1999
Distributor:          Wyle Electronics
Address:              15370 Barranca Parkway
                      Irvine, CA 92618
Attention:            Rick Timmins
Telephone:            (949) 753-9953
Fax:                  (949) 753-9870
________________________________________________________________________________

Synplicity, Inc., a California corporation with its principal place of business
at 610 Caribbean Drive, Sunnyvale, CA 94089 USA ("Company") desires to appoint
the party identified above as "Distributor" to market and register sales
opportunities for certain software products.  Distributor desires to register
sales opportunities for such Products in accordance with the terms and
conditions contained in this Authorized Distributor Agreement (the "Agreement").

   THIS AGREEMENT CONSISTS OF THIS PAGE, THE ATTACHED "TERMS AND CONDITIONS,"
AND THE FOLLOWING ADDITIONAL EXHIBITS, WHICH ARE INCORPORATED HEREIN IN THEIR
ENTIRETY BY THIS REFERENCE.

          ________ EXHIBIT A: SCHEDULES

          ________ EXHIBIT B: PRODUCT LIST

          ________ EXHIBIT C: SOFTWARE LICENSE AGREEMENT

          ________ EXHIBIT D: SUPPORT AND SERVICES

          ________ EXHIBIT E: QUARTERLY SALES REGISTRATION TARGET FORECAST

          ________ EXHIBIT F: REGISTRATION PROCESS

          ________ EXHIBIT G: DESIGN FORECAST/REGISTRATION REPORTING FORM

DISTRIBUTOR ACKNOWLEDGES THAT IT HAS READ, UNDERSTOOD, AND AGREES TO BE BOUND BY
THE ATTACHED TERMS AND CONDITIONS AND BY ANY EXHIBIT OR OTHER ATTACHMENT
SPECIFICALLY MADE A PART OF THIS AGREEMENT.

AGREED:                                         AGREED:

SYNPLICITY, INC.                                WYLE ELECTRONICS

/s/ Douglas S. Miller                           /s/ Richard F. Timmins
___________________________                     _________________________
(Signature)                                     (Signature)

Douglas S. Miller                               Richard F. Timmins
---------------------------                     _________________________
(Name)                                          (Name)

                                                Vice President Design
                                                Engineering and Market
Vice President Finance, CFO                     Development
---------------------------                     _________________________
(Title)                                         (Title)

3/23/99                                         3/22/99
---------------------------                     _________________________
(Date)                                          (Date)

                                                       Synplicity Confidential

                                       1
<PAGE>

            TERMS AND CONDITIONS OF AUTHORIZED DISTRIBUTOR AGREEMENT

The following terms and conditions govern the Agreement between the parties:

1.  Appointment and License.

          (a)  Appointment. Company hereby appoints Distributor as a
nonexclusive Distributor for the Products in the Territory set forth in
Schedule 1 on Exhibit A. Distributor's sole authority is to market the
Products and to solicit sales opportunities in the form of a "Pre-Sales
Registration" (as defined in Schedule 1 on Exhibit A). Distributor shall not
advertise or otherwise market Company Products or otherwise solicit customers
outside of the Territory.

          (b)  Reserved Rights.  Company reserves the right to (i)
solicit orders directly from and sell directly to any customer and all
distributors or other intermediaries within the Territory, and (ii) appoint
other distributors or other distributors on a non-exclusive basis to sell the
Products in the Territory. Company shall pay no compensation to Distributor
for orders not based on a Pre-Sales Registration accepted by Company under
Section 2(a).

          (c)  Products.  Distributor shall solicit sales opportunities
for Products based upon the products described on the "Product List" (Exhibit
B). Company may revise the Product List to add or delete Products upon 30 days
prior written notice to Distributor. Revisions will apply to all Pre-Sales
Registrations accepted by Company after the effective date of the revision.

          (d) Independent Contractor.  The relationship of Company and
Distributor established by this Agreement is that of independent contractors,
and nothing contained in this Agreement shall be construed to (i) give either
party the power to direct or control the day-to-day activities of the other,
(ii) constitute the parties as partners, joint venturers, co-owners or
otherwise as participants in a joint undertaking, or (iii) allow Distributor
to create or assume any obligation on behalf of Company for any purpose
whatsoever. All financial and other obligations associated with Distributor's
business are the sole responsibility of Distributor. Distributor's only
authority is to market Products and solicit sales opportunities as described
in Section 1(a).

2.  Pre-Sales Registration; Product Ordering and Purchase

          (a)  Pre-Sales Registration. Distributor shall submit a Pre-
Sales Registration of all sales opportunities to Company at the beginning of
Distributor's sales cycle for the Products. The Pre-Sales Registration must be
made by completing a "Design Forecast/Registration Reporting Form" (Exhibit G)
in accordance with the "Registration Process" (Exhibit F). Company shall
review the Design Forecast/ Registration Reporting Forms submitted by
Distributor and accept or reject the Pre-Sales Registration at its sole
discretion within five business days of submission. Without limiting the
foregoing, Company will accept Pre-Sales Registrations only if Company is not
currently active with the sales opportunity identified on the Pre-Sales
Registration. Rejected Pre-Sales Registrations expire upon rejection and
accepted Pre-Sales Registrations expire 90 days after acceptance by Company.

          (b)  Product Ordering. Company is responsible for delivering
any license authorizations necessary for End User customers to use the
Products and shall quote, receive purchase orders, invoice and collect
payments from End User customers directly.

          (c)  Maintenance Renewal. Company shall be responsible for
generating quotes, receiving purchase orders, invoicing and collecting all
Maintenance Renewals from End User customers.

3.     Compensation.

          (a)  Commission.  Distributor's sole compensation under the
terms of this Agreement will be a commission as set forth in this Section 3.

          (b)  Basis of Commission.   Company shall pay commissions to
Distributor based on Qualified Billings only. For purposes of this Agreement,
"Qualified Billings" means billings by Company to End User customers, net of
taxes, governmental levies or fees, and shipping and handling charges, based
on Products sold pursuant to an accepted Pre-Sales Registration and for which
the End User requests delivery by Company within 90 days after Company has
accepted such Pre-Sales Registration. No payments will be due to Distributor
on any amounts billed by Company to customers subsequent to 90 days after
acceptance of Pre-Sales Registration or for any maintenance renewal fees or
other professional services, even if Company rendered such services in
connection with the sale of the Products. If any products are returned by an
End User customer, any credit given such End User customer shall reduce the
Qualified Billings used in future commission calculations.

                                                       Synplicity Confidential

                                       2
<PAGE>

          (c)

          (d)  Expired Pre-Sales Registrations.   In the event an
accepted Pre-Sales Registration does not result in a Qualified Billing by the
Company within 90 days of Company's acceptance of that Pre-Sales Registration,
Distributor may update the information and re-submit the Pre-Sales
Registration. However, any re-submissions will be subject to acceptance by the
Company, under Section 2(a), based on the facts and circumstances existing at
the time of re-submission. Prior approval of a previous Pre-Sales Registration
for an End User customer will not obligate the Company to approve any re-
submission by the Distributor.

          (e) Amount of Commission. Company shall pay to Distributor a
commission of [***]% of Qualified Billings collected by Company, except in
connection with Special Programs as discussed in Section 6 ( c ), on which the
commission rate on Qualified Billings resulting directly from such Special
Programs will be the rate agreed to by the parties in writing for that Special
Program. Payments due to Distributor will be made 30 days after each of
Company's fiscal quarter end, based on Qualified Billings collected during the
most recent fiscal quarter. Additionally, Company shall pay [***] dollars
($[***]) per Synplify license included in each Qualified Billing directly to
Distributor's Technical Sales Engineer responsible for such Qualified Billing.
Distributor will also match such [***] dollar payment to the Technical Sales
Engineer.

4.     Term and Termination.

          (a)  Term.  This Agreement is effective as of the Effective
Date and shall continue in accordance with the "Term" identified on the
"Schedules" (Exhibit A), unless earlier terminated in accordance with this
Section 4.

          (b)  Termination by Either Party.  Either party may terminate
this Agreement, upon written notice (i) at least 60 days prior to the
effective date of termination; or (ii) if the other party has materially
breached any provisions of this Agreement and has not cured that default
within 30 days after receiving written notice of the default. Company may
terminate this Agreement if Distributor fails to use commercially reasonable
efforts to maximize sales opportunities of the Products.

          (c)  Company Termination For Cause.  Company may terminate
this Agreement at any time in the event that:

                 (i) Distributor fails to perform any other obligation,
warranty, duty or responsibility or is in default with respect to any term or
condition undertaken by Distributor under this Agreement and such failure or
default continues unremedied for a period of 30 days following written notice
of such failure or default;

                 (ii) Distributor is merged, consolidated, sells all or
substantially all of its assets, or implements or suffers any substantial
change in management or control;

                 (iii)  Distributor fails to achieve 50% of the mutually
agreed sales registration target for a period of two consecutive quarters at
which time Company may elect to provide Distributor with 60 days notice of its
intent to terminate the Agreement. Company and Distributor will document the
agreed sales registration target for each quarter by filling out and returning
to Company the "Quarterly Sales Registration Target Forecast" (Exhibit E) no
later than the tenth day of the new quarter for which the sales registration
target pertains.

          (d)   Automatic Termination.  This Agreement terminates
automatically, with no further act or action of either party, if a receiver is
appointed for Distributor or its property, Distributor makes an assignment for
the benefit of its creditors, any proceedings are commenced by, for or against
Distributor under any bankruptcy, insolvency, composition or debtor's relief
law, or Distributor is liquidated or dissolved.

          (g)   Effect of Termination. Upon any expiration or termination of
this Agreement, Distributor shall cease use of any Marks and return all copies
of the Products and any related written materials. Within 10 days of the
effective date of termination of this Agreement, Distributor will provide
Company a Preliminary Termination Report, in writing, that includes the status
of negotiations with prospective customers and the services Distributor is
obligated to provide to existing customers. In no event will Distributor
license, sell or otherwise transfer Company Products to any third party upon
termination. All existing customers shall revert back to Company for continued
support and future sales of Company Products. Within 20 days of termination of
this Agreement, Distributor agrees to return to Company all Company Products,
including all computer media containing Company's computer programs and
printed material related to Company Products. Neither party will be relieved
of any obligations incurred prior to such termination. The provisions of
Section 4(g), 7(c), 8, 9, 10, 11, 12 and 13 survive.

5.        Company's Marketing Obligations.   Company promptly shall provide to
Distributor marketing and technical information concerning the Products as well
as reasonable quantities of instructional material, advertising literature and

[***] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

                                                       Synplicity Confidential

                                       3
<PAGE>

other Product data. Company shall be responsible for closing all sales
opportunities that have been registered with Company by Distributor and accepted
by Company.

6.  Distributor's Marketing Obligations.

          (a)  Efforts.  Distributor shall use all commercially reasonable
efforts to maximize sales opportunities for the Products in the Territory.
Distributor is responsible for Product presentations, demonstrations,
registering new sales opportunities and the introduction of these new sales
opportunities to Company. Distributor shall make no representations,
warranties or guarantees with respect to the Products that are inconsistent
with those made by Company in its Software License Agreement.

          (b)  Quarterly Forecasts. No later than the tenth day of each new
Company fiscal quarter, Distributor will provide to Company the "Quarterly
Sales Registration Target Forecast" (Exhibit E) indicating sales registration
target information for the quarter.

          (c)  Special Programs.  Within 60 days of execution of this
agreement, and at the beginning of each calendar year while this agreement is
in effect, Distributor will provide the Company with a plan for the calendar
year of value added demand creation activities in which Distributor may engage
and that are intended to create additional demand for the Company's Products
("Special Programs"). Such Special Programs may include, but not be limited
to, Product bundling offers, Product training programs, or seminars featuring
the Product. As soon as practical prior to the execution of any Special
Program, Distributor will discuss the full nature, timing and scope of the
Special Program with the Company and negotiate terms on which the Company can
choose to participate in the Special Program. Terms shall include any sharing
of costs for the Special Program and/or the applicable commission rate on
which payments will be made to the Distributor for Qualified Billings that
result directly from the Special Program per Section 3. Upon agreement and
acceptance of the terms of the Special Program, an amendment to this Agreement
solely for such Special Program will be made and signed by both parties.
Notwithstanding the above, no party will be obligated to provide or
participate in any Special Programs, unless an amendment to this Agreement for
the Special Program has been signed.

7.     Distributor's Use of Marks.

          (a)  License and Use.  Distributor shall identify with the Marks any
marketing, advertising or other materials in related advertising, marketing,
and technical material, or on Distributor's Internet site where the Products
are advertised or mentioned. Company hereby grants to Distributor a
nonexclusive license to use the Marks as set forth in the preceding sentence.
Distributor shall not remove or alter any trademark, copyright or other
proprietary notices, legends, symbols or labels on the Products, and shall
reproduce all such notices on any copies of the Products reproduced and
distributed under this Agreement. Use of the Marks must comply with Company's
then-current trademark usage guidelines. If Company determines that
Distributor is using the Marks improperly, then Distributor must remedy the
improper use within 10 days of notification from Company.

          (b)  End User Agreements. Distributor shall notify Company of (i)
any registrations or filings required to obtain intellectual property rights
protection in Company's name for the Products in the Territory or (ii) any
necessary government approvals with respect to this Agreement. Distributor
shall assist Company to complete such filings or registrations or to obtain
such government approvals, and shall enter into registered user agreements for
the Marks as Company deems necessary. Company shall pay fees and expenses
incurred in connection with such filings, registrations or approvals.

          (c)  Ownership.  Distributor acknowledges that Company is the owner
of the Marks, and shall do nothing inconsistent with Company's ownership of
the Marks. Distributor must acknowledge Company's ownership on any trademark
application and or registration thereto. All use of the marks by Distributor
will inure to the benefit of Company, and nothing in this Agreement grants to
Distributor any right, title, or interest in the Marks other than the right to
use the Marks in accordance with this Agreement.

8.     Confidentiality.  "Confidential Information" means any information
disclosed by one party to the other pursuant to this Agreement, which is marked
"Confidential," "Proprietary," or in some similar manner.  Each party shall
treat as confidential all Confidential Information of the other party, and shall
not use such Confidential Information except to exercise its rights or perform
its obligations under this Agreement and shall not disclose such Confidential
Information to any third party.  This paragraph will not apply to any
Confidential Information that is generally known and available, or in the public
domain through no fault of the receiver.

                                                       Synplicity Confidential

                                       4
<PAGE>

9.  Limited Warranty.  Pursuant to the Software License Agreement, Company makes
a limited warranty to End Users with respect to the Products (the "Limited
Warranty").  The Limited Warranty runs directly from Company to End Users
(including Distributor's customers).  DISTRIBUTOR SHALL NOT MAKE OR PASS ON TO
ANY PARTY ANY CONDITIONS, WARRANTIES OR REPRESENTATIONS ON BEHALF OF COMPANY
OTHER THAN OR INCONSISTENT WITH THE LIMITED WARRANTY OR THE PROVISIONS OF THIS
SECTION 9. EXCEPT FOR THE LIMITED WARRANTY REFERENCED ABOVE, COMPANY HEREBY
DISCLAIMS ANY EXPRESS, IMPLIED OR STATUTORY WARRANTIES ON THE PRODUCTS,
INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE, OR ANY STATUTORY WARRANTY AGAINST
INFRINGEMENT.

10.  Limitation of Liability.  Company's sole liability and Distributor's sole
remedy under the Limited Warranty and under this Agreement is limited to payment
of any commissions due to Distributor.  Distributor understands and agrees that
in no event will Company be liable for the cost of procurement of substitute
goods or for any special, incidental or consequential damage, whether for breach
of warranty or otherwise.  This limitation will apply notwithstanding any
failure of essential purpose of any limited remedy.

11.  Indemnification by Distributor.  Distributor shall hold Company harmless
against any claim arising from (i) Distributor or its agents' actions in
registering sales opportunities under this Agreement, (ii) Distributor's failure
to comply with its obligations under Section 9 (Limited Warranty), or (iii)
Distributor's material breach of any of the terms and conditions of this
Agreement (including in the Exhibits).  Distributor shall pay any loss, expense,
cost, liability or damage arising out of such claims.

12.  Compliance with Laws.  Distributor shall comply with (i) applicable export
laws and regulations of any agency of the U.S. Government, (ii) the United
States Foreign Corrupt Practices Act, and (iii) any other current, applicable
laws, regulations and other legal requirements in its performance under this
Agreement.  Distributor shall ensure that any notices required by the U.S.
Government agencies (including those required for procurement purposes under FAR
and DFAR) or other agencies are included with the Products.  Distributor
represents and warrants that, as of the Effective Date, no currency control laws
applicable in the Territory prevent the payment of any amounts due to Company
under this Agreement.  Distributor also represents and warrants that, to the
best of Distributor's knowledge, the provisions of this Agreement, and the
rights and obligations of the parties hereunder, are enforceable under the laws
of the jurisdictions within the Territory.

13.  Dispute Resolution and Governing Law.

          (a)   Any dispute arising out of or related to this Agreement shall
be finally settled in accordance with the Rules of Conciliation and
Arbitration of the International Chamber of Commerce. The arbitration shall
take place in Santa Clara County, California, but the parties hereby agree to
exclude any right of application or appeal to the courts in connection with
any question of law arising in the course of the reference or out of the
award. Each of the parties shall appoint one arbitrator and the two so
nominated shall, in turn, choose a third arbitrator. If the arbitrators chosen
by the parties cannot agree on the choice of the third arbitrator within a
period of 30 days after their nomination, then the third arbitrator shall be
appointed by the President of the International Chamber of Commerce.

          (b)  The arbitration shall be conducted in the English language.
Relevant documents in other languages shall be translated into English if the
arbitrators so direct. The law of the State of California, U.S.A., excluding
the Convention on Contracts for the International Sale of Goods and that body
of law known as conflicts of laws, shall be the applicable substantive law.
The applicable procedural law shall be the law of the place of arbitration.
The parties agree that they will, before the hearing of any dispute, make
discovery and disclosure of all materials relevant to the subject matter of
such dispute.

          (c)  A written transcript in English of the hearing will be made and
furnished to the parties.  Examination of witnesses by the parties and by the
arbitrators will be permitted.

          (d)  The arbitrators will decide in accordance with the terms of this
Agreement and will take into account any appropriate international trade usages
applicable to the transaction.  The arbitrators will state the reasons upon
which the award is based.

          (e)  The award of the arbitrators will be final and binding upon the
parties. Judgment upon the award may be entered in any court having
jurisdiction. An application may be made to any such court for judicial
acceptance of the award and an order of enforcement.

14.  Support Requirements.  Company and Distributor shall jointly provide
support and other servicesand Distributor

                                                       Synplicity Confidential

                                       5
<PAGE>

shall participate in training as set forth in Support and Services (Exhibit D).

15.  Miscellaneous.

          (a)  Entire Agreement.  If any portion of this Agreement is held to
be unenforceable, the remainder of this Agreement will remain valid. The terms
and conditions of this Agreement (including the Exhibits, which are
incorporated herein by reference) constitute the entire Agreement between the
parties and supersede all previous agreements, whether oral or written,
between the parties with respect to the subject matter hereof. Without
limiting the above, all purchase orders will be governed by the terms and
conditions of this Agreement notwithstanding any preprinted terms and
conditions.

          (b)  Title.  Company retains title to the Products, and reserves all
rights not explicitly granted.

          (c)  No Waiver and Excusable Delays.  A delay or failure by a party
in its exercising its rights and remedies provided for in this Agreement is
not and will not be a waiver of any right. No amendment or waiver of this
Agreement will be binding unless it has been assented to in writing by both
parties. Nonperformance is excused to the extent that it is rendered
impossible by strike, fire, flood, earthquake, governmental acts or orders or
restrictions, failure or suppliers or other circumstances in which the failure
to perform is beyond the control and not caused by the negligence of the
nonperforming party.

          (d)  Notices and Assignment.  This Agreement may not be assigned by
Distributor, directly or indirectly, without Company's prior written consent.
Subject to the preceding sentence, this Agreement will inure to the benefit of
the parties' successors and assigns. All notices must be either sent
registered or certified mail, return receipt requested, or served personally.

          (e)  English Language.  This Agreement is made in the English
language, which language is controlling. Communications and notices must be in
the English language.

                                                       Synplicity Confidential

                                       6
<PAGE>

                                   EXHIBIT A
                                   SCHEDULES

Schedule 1: Definitions

(a)  "End User" means any third party that obtains a Product solely to fulfill
     its own internal design development needs.  Distributor is an End User with
     respect to its internal use of the Product.

(b)  "Marks" means Company's trademarks and other identifying information
     identified in Schedule 2 below.

(c)  "Maintenance" means services, including support and right to receive
     Updates and New Releases provided by Company to customers who have
     purchased the right to receive such services.

(d)  "Maintenance Renewal" means an agreement by Company to provide Maintenance
     after the first year after a customer has purchased a license to the
     Products.

(e)  "New Release" means a new release of the Product released by Company, which
     is identified by the numeral to the left of the first decimal point (e.g. a
     change from version 1.1 to 2.0).

(f)  "Pre-Sales Registration" means information, including but not limited to
     contact information, provide to Company by Distributor regarding a sales
     opportunity for the Products.

(g)  "Product(s)" means Company's software products listed on the Product List
     or its Updates or New Releases.

(h)  "Proprietary Rights" means any and all rights with respect to patents,
     copyrights, trade secrets, moral rights, and other similar rights or
     interests in intellectual or industrial property.

(i)  "Qualified Billing" has the meaning set forth in Section 3(b).

(j)  "Software License Agreement" means Company's standard license agreement
     pursuant to which End Users are granted the right to use a Product.
     Company's current Software License Agreement is attached as Exhibit C.

(k)  "Territory" means the area identified in Schedule 3.

(l)  "Update" means a bug fix or minor enhancement to a Product, which is
     identified by the numeral to the right of the first decimal point in the
     Product (e.g., a change from version 1.1 to 1.2).

Schedule 2:  Marks
       Synplicity
       Synplify
       Simply Better Synthesis
       HDL Analyst
       Behavior Extracting Synthesis Technology
       Embedded Synthesis
       SCOPE
       B.E.S.T.
       Synthesis Constraints Optimization Environment
       HDL Partitioner
       HDL Floorplanner
       The Fast Synthesis Company
       Direct Synthesis Technology
       DST
       Synplicity's "S" Logo Design as shown:

                              [SYNPLICITY LOGO]

Schedule 3: Territory

       The United States and Canada.

Schedule 4: Term

(a)  Term: The term of this agreement shall be one year from the effective date.

(b)  Renewal Procedure:  This agreement may be renewed upon a written request 60
     days in advance of the last day of the term.

                                                       Synplicity Confidential

                                       7
<PAGE>

                                   EXHIBIT B

                                 PRODUCT LIST

Part Number                       Product Description
--------------------------------------------------------------------------------

PC Node-Locked (Win95,Win98 & WinNT)

SSPN         Synplify - All FPGA vendors
MSPN         Annual maintenance for Synplify - All FPGA vendor

SHPN         HDL Analyst Option to Synplify
MHPN         Annual maintenance for HDL Analyst Option

SSPN-AL      Synplify - Single Vendor (Altera Only)

MSPN-AL      Annual maintenance for Synplify - Single Vendor (Altera Only)

All-Platforms Floating (Win95, Win98, WinNT, Solaris & HPUX)

SSAF-AL      Synplify - Single Vendor (Altera Only) Floating 1
MSAF-AL      Annual maintenance for Synplify - Single Vendor (Altera Only)
             Floating

SSAF         Synplify - All FPGA vendors Floating 1
MSAF         Annual maintenance for Synplify - All FPGA Vendors Floating

SHAF         HDL Analyst Option to Synplify, Floating 2
MHAF         Annual maintenance for HDL Analyst Option, Floating

Upgrade Packages

SUPN-AL      Synplify Upgrade to all FPGA vendors from SSPN-AL
MUPN-AL      Annual maintenance for Synplify Upgrade from MSPN-AL

Notes
-----
1.  Batch capability is a standard feature in all Synplify floating licenses
    after release 5.0.   Batch is not included in the PC node-locked version.

2.  HDL Analyst floats in conjunction with a Synplify license.   When a user
    runs Synplify with HDL Analyst, both licenses (Synplify & HDL Analyst) are
    checked out until the Synplify program is exited.

                                                         Synplicity Confidential

                                       8
<PAGE>

                                   EXHIBIT C

                     SYNPLICITY SOFTWARE LICENSE AGREEMENT

     This is a legal agreement between the you, the user ("Licensee") and
Synplicity, Inc. ("Synplicity") regarding the software program attached to or
enclosed with this software license agreement (the "Software").  By clicking the
button below marked "Yes", by opening the packaging of the Software, or by
installing or using the Software, Licensee agrees to be bound by the terms of
this Software License Agreement (the "Agreement").  If Licensee is obtaining an
update, then the term "Software" also includes, and the terms and conditions of
this Agreement also apply to, any pre-existing software and data provided within
earlier Software releases, to the extent such earlier software and data is
retained by, embodied in or in any way used or accessed by the upgraded Software
provided with this Agreement.   If Licensee does not agree to the terms of this
Agreement, then click on the button marked "No" to terminate the download or
install process, and (if you have a copy) return the Software and any
accompanying items to the place from which you obtained them.

License.  Synplicity grants to Licensee, a nonexclusive right to use the
SOFTWARE on one computer system or on a networked computer system, using only
the number of nodes for which Licensee has a license and for which Licensee has
the security key(s) or authorization code(s) provided by Synplicity or its
agents.  All SOFTWARE must be used within the country for which the systems were
licensed and must be located at a single site (within a one-kilometer radius.)

Copy Restrictions.  This SOFTWARE and documentation is protected by United
States copyright laws and international treaty provisions.  Unauthorized copying
of the SOFTWARE in whole or in part is expressly forbidden.  Subject to these
restrictions, Licensee may (i) load the SOFTWARE onto one computer to support
authorized use and (ii) make one copy of the SOFTWARE solely for backup
purposes, provided Licensee includes all copyright and trademark notices on the
back-up copy.  Licensee may not copy any part of the documentation, nor modify,
adapt, translate into any language, or create derivative works based on the
documentation without the prior written consent of Synplicity.

Ownership of the SOFTWARE.  Synplicity retains all right, title, and interest in
the SOFTWARE and documentation (and any copy thereof), and reserves all rights
not expressly granted to Licensee.  This License is not a sale of the original
SOFTWARE or of any copy.

Use Restrictions.  This SOFTWARE is licensed to Licensee for internal use only.
Licensee acknowledges that the scope of the licenses granted hereunder do not
permit Licensee (and Licensee shall not allow any third party) to: (i)
decompile, disassemble, reverse engineer or attempt to reconstruct, identify or
discover any source code, underlying ideas, underlying user interface techniques
or algorithms of the SOFTWARE by any means whatever, or disclose any of the
foregoing; (ii) provide, lease, lend, use for timesharing or service bureau
purposes, or otherwise use or allow others to use the SOFTWARE for the benefit
of third parties; (iii) modify, incorporate into or with other software, or
create a derivative work of any part of the SOFTWARE; (iv) disclose the results
of any benchmarking of the SOFTWARE, or use such results for its own competing
software development activities, without the prior written permission of
Synplicity; or (v) attempt to circumvent any user limits, maximum gate count
limits or other license, timing or use restrictions that are built in to the
Software.

Transfer Restrictions.  Licensee shall not sublicense, transfer or assign this
Agreement or any of the rights or licenses granted under this Agreement, except
in the case of a merger or sale of all or substantially all of Licensee's
assets.

Ownership of Design Techniques.  "Design" means the representation of an
electronic circuit or device(s), derived or created by Licensee through the use
of the SOFTWARE in its various formats, including, but not limited to,
equations, truth tables, schematic diagrams, textual descriptions, hardware
description languages, and netlists.  "Design Techniques" means the Synplicity-
supplied data, circuit and logic elements, libraries, algorithms, search
strategies, rule bases, and technical information incorporated in the SOFTWARE
and employed in the process of creating Designs.  Synplicity retains all right,
title and interest in and to Design Techniques incorporated into the SOFTWARE,
including all intellectual property rights embodied therein. Licensee
acknowledges that Synplicity is in the business of licensing SOFTWARE which
incorporates Design Techniques. Licensee agrees that in the event Licensee
voluntarily discloses any design techniques to Synplicity without designating
such as Licensee's Confidential Information, Synplicity shall have the
unrestricted, royalty-free right to incorporate such design techniques into its
software, documentation and other products, and to sublicense third parties to
use such incorporated design techniques.

Protection of Confidential Information.  "Confidential Information" means (i)
the SOFTWARE, in object and source code form, and any related technology, idea,
algorithm or information contained therein, including without limitation Design
Techniques, and any trade secrets related to any of the foregoing; (ii) either
party's product plans, Designs, costs, prices and names; non-published financial
information; marketing plans; business opportunities; personnel; research;
development or know-how; (iii) any information designated by the disclosing
party as confidential in writing or, if disclosed orally, designated as
confidential at the time of disclosure and reduced to writing and designated as
confidential in writing within thirty (30) days; and (iv) the terms and
conditions of this Agreement; provided, however that "Confidential Information"
will not include information that: (a) is or becomes generally known or
available by publication, commercial use or otherwise through no fault of the
receiving party; (b) is known and has been reduced to tangible form by the
receiving party at the time of disclosure and is not subject to restriction; (c)
is independently developed by the receiving party without use of the disclosing
party's Confidential Information; (d) is lawfully obtained from a third party
who has the right to make such disclosure; and (e) is released for publication
by the disclosing party in writing.

Each party will protect the other's Confidential Information from unauthorized
dissemination and use with the same degree of care that each such party uses to
protect its own like information. Neither party will use the other's
Confidential Information for purposes other

                                                         Synplicity Confidential

                                       9
<PAGE>

than those necessary to directly further the purposes of this Agreement. Neither
party will disclose to third parties the other's Confidential Information
without the prior written consent of the other party.

Termination.  Synplicity may terminate this Agreement in the event of breach or
default by Licensee.  Upon termination Licensee will relinquish all rights under
this Agreement, and must cease using the SOFTWARE and return or destroy all
copies (and partial copies) of the SOFTWARE and documentation.

Export.  Licensee agrees not to allow the Synplicity SOFTWARE to be sent or used
in any country except in compliance with applicable U.S. laws and regulations.

Limited Warranty and Disclaimer.  Synplicity warrants (i) that the SOFTWARE will
perform substantially in accordance with the accompanying documentation for a
period of ninety (90) days from the date of receipt, and (ii) that the SOFTWARE
will be able to accurately process date data (including, but not limited to,
calculating, comparing, and sequencing) from, into and between the twentieth and
twenty-first centuries, provided that it is used in accordance with the product
documentation provided by Synplicity, that all associated products (such as
hardware, software, firmware and the like) used in combination with the SOFTWARE
properly exchange date data with it, and that Licensee is covered under a
services or maintenance agreement with Synplicity regarding the SOFTWARE.
Synplicity's entire liability and Licensee's exclusive remedy for a breach of
the preceding limited warranties shall be, at Synplicity's option, either (a)
return of the license fee, or (b) providing a fix, patch, work-around, or
replacement of the SOFTWARE that does not meet such limited warranty.  In either
case, Licensee must return the SOFTWARE to Synplicity with a copy of the
purchase receipt or similar document.  Any replacement will be warranted for the
remainder of the original warranty period or 30 days, whichever is longer.  Some
states/jurisdictions do not allow limitations on duration of an implied
warranty, so the above limitation may not apply.  EXCEPT AS EXPRESSLY SET FORTH
ABOVE, NO OTHER WARRANTIES OR CONDITIONS, EITHER EXPRESS OR IMPLIED, ARE MADE BY
SYNPLICITY WITH RESPECT TO THE SOFTWARE AND THE ACCOMPANYING DOCUMENTATION
(STATUTORY OR OTHERWISE), AND SYNPLICITY EXPRESSLY DISCLAIMS ALL WARRANTIES AND
CONDITIONS NOT EXPRESSLY STATED HEREIN, INCLUDING BUT NOT LIMITED TO THE IMPLIED
WARRANTIES OR CONDITIONS OF MERCHANTABILITY, NONINFRINGEMENT, AND FITNESS FOR A
PARTICULAR PURPOSE.  SYNPLICITY DOES NOT WARRANT THAT THE FUNCTIONS CONTAINED IN
THE SOFTWARE WILL MEET LICENSEE'S REQUIREMENTS, BE UNINTERRUPTED OR ERROR FREE,
OR THAT ALL DEFECTS IN THE PROGRAM WILL BE CORRECTED.  Licensee assumes the
entire risk as to the results and performance of the SOFTWARE.  Some
states/jurisdictions do not allow the exclusion of implied warranties, so the
above exclusion may not apply.

Limitation of Liability.  LICENSEE AGREES THAT IN NO EVENT SHALL SYNPLICITY OR
ITS AGENTS BE LIABLE FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL OR INCIDENTAL
DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF BUSINESS
PROFITS, BUSINESS INTERRUPTIONS, LOSS OF BUSINESS INFORMATION, OR OTHER
PECUNIARY LOSS) ARISING OUT OF THE USE OF OR INABILITY TO USE THESE SYNPLICITY
PRODUCTS, EVEN IF SYNPLICITY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.  In no event will Synplicity be liable to Licensee for damages in an
amount greater than the fees paid for the use of the SOFTWARE.  Some
states/jurisdictions do not allow the limitation or exclusion of incidental or
consequential damages, so the above limitations or exclusions may not apply.

Intellectual Property Right Infringement.  In the event that a claim alleging
infringement of an intellectual property right arises concerning the SOFTWARE
(including but not limited to patent, trade secret, copyright or trademark
rights), Synplicity in its sole discretion may elect to defend or settle such
claim.  Synplicity in the event of such a claim may also in its sole discretion
elect to terminate this Agreement and all rights to use the SOFTWARE, and
require the return or destruction of the SOFTWARE, with a refund of the fees
paid for use of the SOFTWARE less a reasonable allowance for use and shipping.

Miscellaneous.  If Licensee is a corporation, partnership or similar entity,
then the license to the Software that is granted under this Agreement is
expressly conditioned upon acceptance by a person who is authorized to sign for
and bind the entity.  This Agreement is the entire agreement between Licensee
and Synplicity with respect to the license to the SOFTWARE, and supersedes any
previous oral or written communications or documents (including, if you are
obtaining an update, any agreement that may have been included with the initial
version of the Software). This Agreement is governed by the laws of the State of
California, USA.  This Agreement will not be governed by the U.N. Convention on
Contracts for the International Sale of Goods.  If any provision of this
Agreement is found to be invalid or unenforceable, it will be enforced to the
extent permissible and the remainder of this Agreement will remain in full force
and effect.  Failure to prosecute a party's rights with respect to a default
hereunder will not constitute a waiver of the right to enforce rights with
respect to the same or any other breach.

Government Users.  Use, reproduction, release, modification, or disclosure of
this commercial computer software, or of any related documentation of any kind,
is restricted in accordance with FAR 12.212 and DFARS 227.7202, and further
restricted by this License Agreement.  Synplicity, Inc., 610 Caribbean Drive,
Sunnyvale, CA 94089, U.S.A.

                                                         Synplicity Confidential

                                       10
<PAGE>

                                   EXHIBIT D

                              SUPPORT AND SERVICES

All support and services in this Agreement are provided pursuant to the Terms
and Conditions of the Authorized Distributor Agreement, to which this is
attached and into which it is incorporated by reference.

1.  Support Obligations of Distributor.  Distributor will provide initial
    presentation, installation assistance, and first level pre-sales technical
    assistance.

2.  Support Obligations of Company.  Company will provide second-level pre-sales
    support and all post-sales support through its Corporate Applications Group.

3.  Upgrades.  Company shall provide End User customers with Updates and New
    Releases as Company deems appropriate

4.  Training.  Distributor will coordinate technical and sales training on
    Company Products and services at least twice during the term of this
    Agreement. The location of such training shall be determined by Distributor.
    The allocated amount of training time will be reasonable and appropriate in
    Company's judgment, all such training will be in English, and Distributor
    will bear all travel and living expenses for such personnel sent by Company
    for training. Periodic training to maintain or increase technical competence
    on Company Products may be provided from time to time by Company.
    Distributor's personnel will attend this periodic training, as reasonably
    requested by Company, and Distributor shall bear all related travel and
    living expenses.

                                                         Synplicity Confidential

                                       11
<PAGE>

                                   EXHIBIT E
Synplicity, Inc.
610 Caribbean Drive
Sunnyvale, CA 94089
Phone:   408/548-6000
Fax:   408/548-0050

                  QUARTERLY SALES REGISTRATION TARGET FORECAST

Complete and return this form to Synplicity headquarters by the tenth day of the
current quarter.

Distributor:  __________________________________________

For Quarter:   [_] Jan-March   [_] Apr-June    [_] July-Sept     [_] Oct-Dec

Year:    _______________________

Territory:    __________________

Sales Registration target for Quarter:   ______________

Agreed:                        Agreed:

Distributor                    Synplicity

_________________________      ___________________________
Name                           Name

_________________________      ___________________________
Signature                      Signature

_________________________      ___________________________
Date                           Date

                                                         Synplicity Confidential

                                       12
<PAGE>

                                   EXHIBIT F

                              REGISTRATION PROCESS

(i)  Registrations shall be managed by designated Company employee,  Sandra
     Larrabee.

(ii) All Registrations shall be submitted to Company through the designated e-
     mail account: sandra@synplicity.com, by fax at: 408-548-0051, or via
                   ---------------------
     Company's distribution web page:  www.synplicity.com/Wyle
                                       -----------------------

                                                         Synplicity Confidential

                                       13
<PAGE>

                                   EXHIBIT G
                                   ---------

                  DESIGN FORECAST/REGISTRATION REPORTING FORM
                  -------------------------------------------

<TABLE>
<S>                                      <C>                                       <C>
     MANUFACTURER                                                                    REGISTRATION NUMBER
----------------------                   -------                                   --------------------------------------
| SYNPLICITY         |                   | [_] |  Product Liability Concern        |                                    |
----------------------                   -------  (check if applicable)            --------------------------------------
                                                                                   | Date Approved:                     |
                                                                                   --------------------------------------
                                                                                   | Expires:                           |
Date Submitted: ____________________                                               --------------------------------------
Accepted By: _______________________     Date: ___________________________         | Renewal Date:                      |
Rejected By: _______________________     Date: ___________________________         --------------------------------------
Reason: ______________________________________________________________________________________________________

------------------------------------------------------------------------------------------------------------------------------------
|          DISTRIBUTOR                     LOCATION:                                            TRACKING NUMBER                    |
| ------------------------------                                                     --------------------------------------        |
| |                            |                                                     |                                    |        |
| ------------------------------                                                     --------------------------------------        |
|  Technical Sales Engineer:                            Phone:                               Pgr:                                  |
|                                                                                                                                  |
|               Salesperson:                            Phone:                               Pgr:                                  |
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
|   CUSTOMER INFORMATION                                            DISTRIBUTOR       ---------------------------------------      |
|   --------------------                                            ACCOUNT NUMBER    |                                     |      |
|Company:                                                                             ---------------------------------------      |
|Address:                                                                                           Manufacturer                   |
|   City:                       State:                Country:         Zip:                        Account Number                  |
|Manufacturer Salesperson:                                 Phone:                     ---------------------------------------      |
|Manufacturer FAE:                                         Phone:                     |                                     |      |
|                                                                                     ---------------------------------------      |
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
|    PROJECT INFORMATION                                                                                                           |
|    -------------------                                                                                                           |
|             Project Name:                                  Status:                       Prototype Date:                         |
|               Board Name:                                   Units:                      Production Date:                         |
|                                                           Quantity                    Expected or Actual                         |
|              Description:                                                                                                        |
|         Project Engineer:                           Phone:                          Ext:                                         |
|      Additional Engineer:                           Phone:                          Ext:                                         |
|       Purchasing Contact:                           Phone:                          Ext:                                         |
|  -----------------------------------------------------------------------------------------------------------------------------   |
|  |  PART NUMBER FOR REGISTRATION                                                                                             |   |
|  |  ----------------------------                                                                                             |   |
|  |                                                                             Joint Visit Date: ________________________    |   |
|  |                        *R=Registrable  A=Associated                                                                       |   |
|  |  -----------------------------------------------------------------------------------------------------------------------  |   |
|  |  | Part Number      |  R  |  A  | Description          | A.S.P     | Qty/Sys | Value/1st Yr Prod  | Registration level |  |   |
|  |  -----------------------------------------------------------------------------------------------------------------------  |   |
|  |  |                  | [_] | [_] |                      |           |         |                    |                    |  |   |
|  |  -----------------------------------------------------------------------------------------------------------------------  |   |
|  |  |                  | [_] | [_] |                      |           |         |                    |                    |  |   |
|  |  -----------------------------------------------------------------------------------------------------------------------  |   |
|  |  |                  | [_] | [_] |                      |           |         |                    |                    |  |   |
|  |  -----------------------------------------------------------------------------------------------------------------------  |   |
|  |  |                  | [_] | [_] |                      |           |         |                    |                    |  |   |
|  |  -----------------------------------------------------------------------------------------------------------------------  |   |
|  |                    Competition:                                                                                           |   |
|  |          Comments/Action Items:                                                                                           |   |
|  |                                                                                                                           |   |
|  |    DEVELOPMENT SYSTEM/METRIC                                                                                              |   |
|  |  -----------------------------------------------------------------------------------------------------------------------  |   |
|  |  | Part Number       | Description                     | Price     | Qty     | Value              | Comments           |  |   |
|  |  -----------------------------------------------------------------------------------------------------------------------  |   |
|  |  |                   |                                 |           |         |                    |                    |  |   |
|  |  -----------------------------------------------------------------------------------------------------------------------  |   |
|  |                                                                                                                           |   |
|  |                                                                       --------------------------------------              |   |
|  |                                                                       |  1st Yr. Production                |              |   |
|  |                                                                       --------------------------------------              |   |
|  |                                                          Total Value  |                                    |              |   |
|  |                                                                       --------------------------------------              |   |
|  -----------------------------------------------------------------------------------------------------------------------------   |
-----------------------------------------------------------------------------------------------------------------------------------
        Win Date                                  Bonus Earned                                            Debit Number
  ---------------------    -----------------------------------------------------------------     -------------------------------
  |                   |    | Design                      | Production                      |     |                              |
  ---------------------    -----------------------------------------------------------------     -------------------------------
</TABLE>
<PAGE>

                                   ADDENDUM 2
                                   ----------
                                       TO
                                       --
                             DISTRIBUTOR AGREEMENT
                             ---------------------
                 BETWEEN SYNPLICITY, INC. AND WYLE ELECTRONICS
                 ---------------------------------------------

     This Addendum No. 2 to the Distributor Agreement dated April 1, 1999 is
made by and between Synplicity, Inc., having its principal place of business at
935 Stewart Drive, Sunnyvale, California 94086 and Wyle Electronics, having its
principal place of business at 15370 Barranca Parkway, Irvine, California 92618.

 .  Section 3 (e), Amount of Commission, shall be deleted in its entirety and
   replaced with the following:

     Company shall pay to Distributor a commission of [***]% of Certify
     Qualified Billings collected by Company and [***]% of Synplify and HDL
     Analyst Qualified Billings collected by Company, except in connection with
     Special Programs as discussed in Section 6 (c) on which the commission rate
     on Qualified billings resulting directly form such Special Programs will be
     the rate agreed to by the parties in writing for that Special Program.
     Additionally, Company shall pay to Distributor a commission of [***]% of
     Synplify Pro and Amplify Qualified Billings collected by Company provided
     the account design team or site is not an existing Synplify customer of
     Company.

     Payments due to Distributor will be made 30 days after each of Company's
     fiscal quarter end, based on Qualified billings collected during the most
     recent fiscal quarter. Additionally, Company shall pay [***] dollars
     ($[***]) per Synplify license and [***] dollars ($[***]) for each Certify,
     Amplify and Synplify Pro license included in each Qualified Billing
     directly to Distributor's Technical Sales Engineer responsible for such
     Qualified Billing.

 .  Exhibit A, Schedule 2: Marks, shall be deleted in its entirety and replaced
   with the following:

   Schedule 2:  Marks
     Synplicity's "S" Logo as shown:      [LOGO]
     Synplicity(R)
     Synplify(R)
     Simply Better Synthesis(R)
     HDL Analyst(TM)
     B.E.S.T.(TM)
     Behavior Extracting Synthesis Technology(TM)
     SCOPE(TM)
     Synthesis Constraints Optimization Environment(TM)
     Direct Synthesis Technology(TM)
     DST(TM)
     Certify(TM)
     Amplify(TM)
     Partition-Driven Synthesis(TM)

 .  Exhibit B, Product List, shall be deleted in its entirety and replaced with
   the following:

[***] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.
<PAGE>

                                   Exhibit B

                                 Product list

--------------------------------------------------------------------------------
Part Number                      Description
--------------------------------------------------------------------------------
Certify
--------------------------------------------------------------------------------
SCAF         Certify, Floating on all Computer Platforms
MCAF         Annual Maintenance for Certify
--------------------------------------------------------------------------------
Synplify
--------------------------------------------------------------------------------
SSPN-AL      Synplify, PC Node-Locked, Vendor Altera Only
MSPN-AL      Annual Maintenance, Synplify, PC Node-Locked, Vendor Altera Only
SSPN         Synplify, PC Node-Locked
MSPN         Annual Maintenance, Synplify, PC Node-Locked
SSAF-AL      Synplify, Floating, Vendor Altera Only
MSAF-AL      Annual Maintenance for Synplify, Floating, Vendor Altera Only
SSAF         Synplify, Floating
MSAF         Annual Maintenance, Synplify, Floating
--------------------------------------------------------------------------------
HDL Analyst
--------------------------------------------------------------------------------
SHPN         HDL Analyst Option, PC Node-Locked
MHPN         Annual Maintenance, HDL Analyst, PC Node-Locked
SHAF         HDL Analyst Option, Floating (floats with Synplify)
MHAF         Annual Maintenance, HDL Analyst, Floating (floats with Synplify)
--------------------------------------------------------------------------------
Synplify & HDL Analyst, Upgrade Packages
--------------------------------------------------------------------------------
SUPN         Upgrade from single-vendor PC-locked Synplify to support all FPGA
              vendors (PC-Locked license)
XSAF         Synplify (All-vendors) upgrade to floating from PC Node-Locked
SUAF         Synplify (Single vendor) upgrade to support all FPGA vendors
              (floating)
XSPN         Synplify (Single vendor) upgrade to support Single Vendor
              (floating)
XHAF         HDL Analyst, Upgrade to Floating from PC Node-Locked
--------------------------------------------------------------------------------
Synplify Pro
--------------------------------------------------------------------------------
SPAF         Synplify Pro Floating (All Vendors)
SPAF-AL      Synplify Pro Floating Single Vendor
SPPN         Synplify Pro for PC (All Vendors)
SPPN-AL      Synplify Pro for PC (Single Vendor)  REQUIRES SAPN-AL
MPAF         Synplify Pro Floating (All Vendors), Annual Maint.
MPAF-AL      Synplify Pro Floating Single Vendor, Annual Maint.
MPPN         Synplify Pro for PC (All Vendors), Annual Maint.
MPPN-AL      Synplify Pro for PC (Single Vendor), Annual Maint. REQUIRES MAPN-AL
--------------------------------------------------------------------------------
Amplify Physical Optimizer (Requires Synplify Pro)
--------------------------------------------------------------------------------
SAAF-AL      Amplify Physical Optimizer, Floating, Altera Only
SAPN-AL      Amplify Physical Optimizer for PC, Altera Only
MAAF-AL      Amplify Physical Optimizer, Floating, Altera Only, Annual Maint.
MAPN-AL      Amplify Physical Optimizer for PC, Altera Only, Annual Maint.
--------------------------------------------------------------------------------
<PAGE>

Except as amended herewith, all other paragraphs of the Synplicity, Inc.
Distributor Agreement shall continue in full force and effect.  In the event of
any conflict between the Distributor Agreement and this Addendum 2, the
provisions of this Addendum 2 shall prevail.

The parties hereto have executed this Addendum with an effective date of July 1,
2000.

SYNPLICITY, INC.                            WYLE ELECTRONICS

----------------------------------          ------------------------------------
Signature                                   Signature

Douglas S. Miller
----------------------------------          ------------------------------------
Printed Name                                Printed Name

Vice President Finance, CFO
----------------------------------          ------------------------------------
Title                                       Title

----------------------------------          ------------------------------------
Date                                        Date<PAGE>

                                                                   Exhibit 10.23

--------------------------------------------------------------------------------

                AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
                                SYNPLICITY, INC.

--------------------------------------------------------------------------------
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                               Page
                                                                               ----
<S>                                                                           <C>
1  ACCOUNTING AND OTHER TERMS..................................................   4
   --------------------------

2  LOAN AND TERMS OF PAYMENT...................................................   4
   -------------------------
     2.1 Credit Extensions.....................................................   4
     2.2 Overadvances..........................................................   5
     2.3 Interest Rate, Payments...............................................   6
     2.4 Fees..................................................................   6

3  CONDITIONS OF LOANS.........................................................   6
   -------------------
     3.1 Conditions Precedent to Initial Advance...............................   6
     3.2 Conditions Precedent to all Advances..................................   6

4  CREATION OF SECURITY INTEREST...............................................   7
   -----------------------------
     4.1 Grant of Security Interest............................................   7

5  REPRESENTATIONS AND WARRANTIES..............................................   7
   ------------------------------
     5.1 Due Organization and Authorization....................................   7
     5.2 Collateral............................................................   7
     5.3 Litigation............................................................   7
     5.4 No Material Adverse Change in Financial Statements....................   7
     5.5 Solvency..............................................................   8
     5.6 Regulatory Compliance.................................................   8
     5.7 Subsidiaries..........................................................   8
     5.8 Full Disclosure.......................................................   8

6  AFFIRMATIVE COVENANTS.......................................................   8
   ---------------------
     6.1 Government Compliance.................................................   8
     6.2 Financial Statements, Reports, Certificates...........................   9
     6.3 Inventory; Returns....................................................   9
     6.4 Taxes.................................................................   9
     6.5 Insurance.............................................................   9
     6.6 Primary Accounts......................................................   9
     6.7 Financial Covenants...................................................   9
     6.8 Further Assurances....................................................  10

7  NEGATIVE COVENANTS..........................................................  10
   ------------------
     7.1 Dispositions..........................................................  10
     7.2 Changes in Business, Ownership, Management or Business Locations......  10
     7.3 Mergers or Acquisitions...............................................  10
     7.4 Indebtedness..........................................................  10
     7.5 Encumbrance...........................................................  11
     7.6 Distributions; Investments............................................  11
     7.7 Transactions with Affiliates..........................................  11
     7.8 Subordinated Debt.....................................................  11
     7.9 Compliance............................................................  11

8  EVENTS OF DEFAULT...........................................................  11
   -----------------
     8.1 Payment Default.......................................................  11
     8.2 Covenant Default......................................................  11
</TABLE>

                                       2
<PAGE>

<TABLE>
    <S>                                                                         <C>
     8.3 Material Adverse Change...............................................  12
     8.4 Attachment............................................................  12
     8.5 Insolvency............................................................  12
     8.6 Other Agreements......................................................  12
     8.7 Judgments.............................................................  12
     8.8 Misrepresentations....................................................  12

9  BANK'S RIGHTS AND REMEDIES..................................................  12
   --------------------------
     9.1 Rights and Remedies...................................................  12
     9.2 Power of Attorney.....................................................  13
     9.3 Accounts Collection...................................................  13
     9.4 Bank Expenses.........................................................  13
     9.5 Bank's Liability for Collateral.......................................  14
     9.6 Remedies Cumulative...................................................  14
     9.7 Demand Waiver.........................................................  14

10  NOTICES....................................................................  14
    -------

11  CHOICE OF LAW , VENUE AND JURY TRIAL WAIVER................................  14
    -------------------------------------------

12  GENERAL PROVISIONS.........................................................  14
    ------------------
     12.1 Successors and Assigns...............................................  14
     12.2 Indemnification......................................................  15
     12.3 Time of Essence......................................................  15
     12.4 Severability of Provision............................................  15
     12.5 Amendments in Writing, Integration...................................  15
     12.6 Counterparts.........................................................  15
     12.7 Survival.............................................................  15
     12.8 Confidentiality......................................................  15
     12.9 Effect of Amendment and Restatement..................................  15
     12.10 Attorneys' Fees, Costs and Expenses.................................  16

13  DEFINITIONS................................................................  16
    -----------
     13.1 Definitions..........................................................  16
</TABLE>

                                       3
<PAGE>

     This AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT dated September 9,
1998, between SILICON VALLEY BANK ("Bank"), whose address is 3003 Tasman Drive,
Santa Clara, California 95054 and SYNPLICITY, INC. ("Borrower"), whose address
is 610 Caribbean Drive, Sunnyvale, California 94089.

                                   RECITALS

     A.  Bank and Borrower are parties to that certain Promissory Note, dated
April 16, 1997 in the original principal amount of $400,000 and that certain
Promissory Note dated April 16, 1997 in the original principal amount of
$1,000,000, a Business Loan Agreement, and Commercial Security Agreement, each
dated April 16, 1997, as amended (collectively, the "Original Agreement").

     B.  Borrower and Bank desire in this Agreement to set forth their agreement
with respect to a working capital and term loan and to amend and restate in its
entirety without novation the Original Agreement in accordance with the
provisions herein.

                                   AGREEMENT

     The parties agree as follows:

1  ACCOUNTING AND OTHER TERMS
   --------------------------

     Accounting terms not defined in this Agreement will be construed following
GAAP Calculations and determinations must be made following GAAP. The term
"financial statements" includes the notes and schedules. The terms "including"
and "includes" always mean "including (or includes) without limitation," in this
or any Loan Document. This Agreement shall be construed to impart upon Bank a
duty to act reasonably at all times.

2  LOAN AND TERMS OF PAYMENT
   -------------------------

2.1  Credit Extensions.

     Borrower will pay Bank the unpaid principal amount of all Credit Extensions
and interest on the unpaid principal amount of the Credit Extensions.

2.1.1  Revolving Advances.

     (a) Bank will make Advances not exceeding the lesser of (A) the Committed
Revolving Line or (B) the Borrowing Base, minus in each case, the outstanding
balance under the Temporary Equipment Sublimit. Amounts borrowed under this
Section may be repaid and reborrowed during the term of this Agreement.

     (b) To obtain an Advance, Borrower must notify Bank by facsimile or
telephone by 3:00 p.m. Pacific time on the Business Day the Advance is to be
made. Borrower must promptly confirm the notification by delivering to Bank the
Payment/Advance Form attached as Exhibit B. Bank will credit Advances to
Borrower's deposit account. Bank may make Advances under this Agreement based on
instructions from a Responsible Officer or without instructions if the Advances
are necessary to meet Obligations which have become due. Bank may rely on any
telephone notice given by a person whom Bank believes is a Responsible Officer.
Borrower will indemnify Bank for any loss Bank suffers due to reliance.

     (c) The Committed Revolving Line terminates on the Revolving Maturity Date,
when all Advances and other amounts due under this Agreement are immediately
payable.

                                       4
<PAGE>

2.1.2  Equipment Advances.

     (a) Through September 9, 1999 (the "Equipment Availability End Date"), Bank
will make advances ("Equipment Advance" and, collectively, "Equipment Advances")
not exceeding the Committed Equipment Line, however capped at One Million
Dollars ($1,000,000) (the "Cap Amount") until such time as Borrower has met the
criteria described below in sub-paragraph (d) of this Section. The Equipment
Advances may only be used to finance Equipment purchased on or after January 1,
1998 and may not exceed 100% of the equipment invoice excluding taxes, shipping,
warranty charges, freight discounts and installation expense. Software may
constitute up to 40% and leasehold improvements may constitute up to 25 % of the
aggregate Equipment Advances.

     (b) Interest accrues from the date of each Equipment Advance at the rate in
Section 2.3(a) and is payable monthly until the Equipment Availability End Date
occurs. Equipment Advances outstanding on the Equipment Availability End Date
are payable in 48 equal monthly installments of principal, plus accrued
interest, beginning on the 4th day of each month following the Equipment
Availability End Date and ending on September 9, 2003 (the "Equipment Maturity
Date"). Equipment Advances when repaid may not be reborrowed.

     (c) To obtain an Equipment Advance, Borrower must notify Bank (the notice
is irrevocable) by facsimile no later than 3:00 p.m. Pacific time 1 Business Day
before the day on which the Equipment Advance is to be made. The notice in the
form of Exhibit B (Payment/Advance Form) must be signed by a Responsible Officer
and include a copy of the invoice for the Equipment being financed.

     (d) Any Equipment Advances in excess of the Cap Amount are conditioned upon
either (i) the funds being advanced under the Temporary Equipment Sublimit or
(ii) Bank's receipt of evidence satisfactory to Bank, which evidence shall be in
the form of a pro-forma operating statement and balance sheets, verifying that
Borrower has adequately met and can and will maintain the Liquidity Covenant as
well as having maintained all other financial covenants (described in Section
6.7) and payment of the Increase Fee.

2.1.3  Temporary Equipment Sublimit.  Subject to the terms of this Agreement, as
amended from time to time, Borrower may utilize up to $1,000,000.00 of the
Committed Equipment Line in excess of the Cap Amount for Equipment Advances (on
the terms described in Section 2.1.2 (a)) (the "Temporary Equipment Sublimit").
All Equipment Advances issued under the Temporary Equipment Sublimit will be
considered an Advance under the Committed Revolving Line until such time as
Borrower has met the criteria as described in subsection (d) (ii) of Section
2.1.2. At such time as Borrower has met such criteria the Temporary Equipment
Sublimit shall be deleted and all outstanding Equipment Advances thereunder will
be considered Equipment Advances under the Committed Equipment Line.

2.1.4  Term Loan.

     (a) Bank has made a Term Loan to Borrower pursuant to the Original
Agreement.

     (b) Borrower will continue to pay 30 equal installments of principal plus
interest (the "Term Loan Payment"). Each Term Loan Payment is payable on the
last day of each month during the term of the loan. Borrower's final Term Loan
Payment, due on December 31, 2000 (the "Term Loan Maturity Date") includes all
outstanding Term Loan principal and accrued interest.

2.2  Overadvances.

     If Borrower's Obligations under Section 2.1.1 exceed the lesser of either
(i) the Committed Revolving Line or (ii) the Borrowing Base, minus in each case,
the outstandings under the Temporary Equipment Sublimit, Borrower must
immediately pay Bank the excess.

                                       5
<PAGE>

2.3  Interest Rate, Payments.

     (a) Interest Rate.  (i) Advances accrue interest on the outstanding
principal balance at a per annum rate of 0.250 of one percentage point above the
Prime Rate; (ii) Equipment Advances accrue interest on the outstanding principal
balance at a per annum rate of 0.250 of one percentage point above the Prime
Rate; and (iii) the Term Loan accrues interest at a per annum rate of 0.500 of
one percentage point above the Prime Rate. After an Event of Default,
Obligations accrue interest at 5.00 percentage points above the rate effective
immediately before the Event of Default. The interest rate increases or
decreases when the Prime Rate changes. Interest is computed on a 360 day year
for the actual number of days elapsed.

     (b) Payments.  Interest due on the Committed Revolving Line is payable on
the 4th of each month. Interest due on the Equipment Advances is payable on the
4th of each month. Bank may debit any of Borrower's deposit accounts including
Account Number 3300052554 for principal and interest payments or any amounts
Borrower owes Bank under this Agreement, as amended restated or otherwise
modified. Bank will notify Borrower when it debits Borrower's accounts. These
debits are not a set-off. Payments received after 12:00 noon Pacific time (other
than a wire transfer or immediately available funds) are considered received at
the opening of business on the next Business Day. When a payment is due on a day
that is not a Business Day, the payment is due the next Business Day and
additional fees or interest accrue.

2.4  Fees.

     Borrower will pay:

     (a) Facility Fee.  A fully earned, non-refundable Facility Fee of $15,000
for the Committed Revolving Line and $2,500 for the Committed Equipment Line are
due on the Closing Date; and an Increase Fee of $2,500 for Equipment Advances in
excess of the Cap Amount (and not issued under the Temporary Equipment Sublimit)
shall be due and payable at the time of such Equipment Advance.

     (b) Bank Expenses.  All Bank Expenses (including reasonable attorneys' fees
and expenses) incurred through and after the date of this Agreement, are payable
when due.

3  CONDITIONS OF LOANS
   -------------------

3.1  Conditions Precedent to Initial Advance.

     Bank's obligation to make the initial Advance is subject to the condition
precedent that it receive the agreements, documents and fees it requires.

3.2  Conditions Precedent to all Advances.

     Bank's obligations to make each Advance, including the initial Advance, is
subject to the following:

     (a) timely receipt of any Payment/Advance Form; and

     (b) the representations and warranties in Section 5 must be materially true
on the date of the Payment/Advance Form and on the effective date of each
Advance (except to the extent they relate specifically to an earlier date, in
which case such representations and warranties shall continue to have been true
and accurate as of such date) and no Event of Default may have occurred and be
continuing, or result from the Advance. Each Advance is Borrower's
representation and warranty on that date that the representations and warranties
of Section 5 remain true.

                                       6
<PAGE>

4  CREATION OF SECURITY INTEREST
   -----------------------------

4.1  Grant of Security Interest.

     Borrower grants Bank a continuing security interest in all presently
existing and later acquired Collateral to secure all Obligations and performance
of each of Borrower's duties under the Loan Documents. Except for Permitted
Liens, any security interest will be a first priority security interest in the
Collateral. Bank may place a "hold" on any deposit account pledged as
Collateral. Notwithstanding termination of this Agreement, Bank's Lien on the
Collateral shall remain in effect for so long as any Obligations are
outstanding, in each case, to the extent a security interest in the Collateral
can be perfected by a filing, or, in the case of Collateral consisting of
instruments, documents, chattel paper, or certificated securities, to the extent
the Bank takes possession of such Collateral.

5  REPRESENTATIONS AND WARRANTIES
   ------------------------------

     Borrower represents and warrants as follows:

5.1  Due Organization and Authorization.

     Borrower and each Subsidiary is duly existing and in good standing in its
state of formation and qualified and licensed to do business in, and in good
standing in, any state in which the conduct of its business or its ownership of
property requires that it be qualified (except for states as to which any
failure so to qualify would not have a Material Adverse Change).

     The execution, delivery and performance of the Loan Documents have been
duly authorized, and do not conflict with Borrower's formation documents, nor
constitute an event of default under any material agreement by which Borrower is
bound. Borrower is not in default under any agreement to which or by which it is
bound in which the default would reasonably be expected to cause a Material
Adverse Change.

5.2  Collateral.

     Borrower has good title to the Collateral, free of Liens except Permitted
Liens. The Accounts are bona fide, existing obligations, and the service or
property has been performed or delivered to the account debtor or its agent for
immediate shipment to and unconditional acceptance by the account debtor.
Borrower has no notice of any actual or imminent Insolvency Proceeding of any
account debtor whose accounts are an Eligible Account in any Borrowing Base
Certificate. All Inventory is in all material respects of good and marketable
quality, free from material defects.

5.3  Litigation.

     Except as shown in the Schedule, there are no actions or proceedings
pending or, to Borrower's knowledge, threatened by or against Borrower or any
Subsidiary in which a likely adverse decision would reasonably be expected to
cause a Material Adverse Change.

5.4  No Material Adverse Change in Financial Statements.

     All consolidated financial statements for Borrower, and any Subsidiary,
delivered to Bank fairly present in all material respects Borrower's
consolidated financial condition and Borrower's consolidated results of
operations. There has not been any material deterioration in Borrower's
consolidated financial condition since the date of the most recent financial
statements submitted to Bank.

                                       7
<PAGE>

5.5  Solvency.

     The fair salable value of Borrower's assets (including goodwill minus
disposition costs) exceeds the fair value of its liabilities; the Borrower is
not left with unreasonably small capital after the transactions in this
Agreement; and Borrower is able to pay its debts (including trade debts) as they
mature.

5.6  Regulatory Compliance.

     Borrower is not an "investment company" or a company "controlled" by an
"investment company" under the Investment Company Act. Borrower is not engaged
as one of its important activities in extending credit for margin stock (under
Regulations G, T and U of the Federal Reserve Board of Governors). Borrower has
complied in all material respects with the Federal Fair Labor Standards Act.
Borrower has not violated any laws, ordinances or rules, the violation of which
that would reasonably be expected to cause a Material Adverse Change. None of
Borrower's or any Subsidiary's properties or assets has been used by Borrower or
any Subsidiary or, to the best of Borrower's knowledge, by previous Persons, in
disposing, producing, storing, treating, or transporting any hazardous substance
other than legally. Borrower and each Subsidiary has timely filed all required
tax returns and paid, or made adequate provision to pay, all taxes, except those
being contested in good faith with adequate reserves under GAAP. Borrower and
each Subsidiary has obtained all consents, approvals and authorizations of, made
all declarations or filings with, and given all notices to, all government
authorities that are necessary to continue its business as currently conducted
except where any failure to do so could not reasonably be expected to cause a
material adverse change.

5.7  Subsidiaries.

     Borrower does not own any stock, partnership interest or other equity
securities except for Permitted Investments.

5.8  Full Disclosure.

     No representation, warranty or other statement of Borrower in any
certificate or written statement given to Bank by Borrower in connection with
the transaction contemplated by this Agreement, taken as a whole contains any
untrue statement of a material fact or omits to state a material fact necessary
to make the statements contained in the certificates or statements not
misleading (it being recognized by the Bank that the projections and forecasts
provided by Borrower are not to be viewed as facts and that actual results
during the period or periods covered by any such projections and forecasts may
differ from the projected or forecasted results).

6  AFFIRMATIVE COVENANTS
   ---------------------

     Borrower will do all of the following:

6.1  Government Compliance.

     Borrower will maintain, or cause to be maintained, its and all
Subsidiaries' legal existence and good standing in its jurisdiction of formation
and maintain qualification in each jurisdiction in which the failure to so
qualify would reasonably be expected to have a material adverse effect on
Borrower's business or operations. Borrower will comply, and have each
Subsidiary comply, with all laws, ordinances and regulations to which it is
subject, noncompliance with which could have a material adverse effect on
Borrower's business or operations or would reasonably be expected to cause a
Material Adverse Change.

                                       8
<PAGE>

6.2  Financial Statements, Reports, Certificates.

     (a) Borrower will deliver to Bank: (i) as soon as available, but no later
than 30 days after the last day of each month, a company prepared consolidated
balance sheet and income statement covering Borrower's consolidated operations
during the period, in a form and certified by a Responsible Officer acceptable
to Bank; (ii) as soon as available, but no later than 120 days after the last
day of Borrower's fiscal year, preliminary audited consolidated financial
statements prepared under GAAP and 150 days after the last day of Borrower's
fiscal year, Borrower's final audited consolidated financial statements prepared
under GAAP, consistently applied, from an independent certified public
accounting firm acceptable to Bank; (iii) a prompt report of any legal actions
pending or threatened against Borrower or any Subsidiary that could result in
damages or costs to Borrower or any Subsidiary of $100,000 or more; and (iv)
budgets, sales projections, operating plans or other financial information Bank
requests.

     (b) Within 30 days after the last day of each month, Borrower will deliver
to Bank a Borrowing Base Certificate signed by a Responsible Officer in the form
of Exhibit C, with aged listings of accounts receivable and accounts payable.

     (c) Within 30 days after the last day of each month, Borrower will deliver
to Bank with the monthly financial statements a Compliance Certificate signed by
a Responsible Officer in the form of Exhibit D.

     (d) Bank has the right to audit Borrower's Accounts at Borrower's expense
not to exceed $600, but the audits will be conducted no more often than every
year unless an Event of Default has occurred and is continuing.

6.3  Inventory; Returns.

     Borrower will keep all Inventory in good and marketable condition, free
from material defects. Returns and allowances between Borrower and its account
debtors will follow Borrower's customary practices as they exist at execution of
this Agreement. Borrower must promptly notify Bank of all returns, recoveries,
disputes and claims, that involve more than $100,000.

6.4  Taxes.

     Borrower will make, and cause each Subsidiary to make, timely payment of
all material federal, state, and local taxes or assessments and will deliver to
Bank, on demand, appropriate certificates attesting to the payment.

6.5  Insurance.

     Borrower will keep its business and the Collateral insured for risks and in
amounts, as Bank requests. Insurance policies will be in a form, with companies,
and in amounts that are satisfactory to Bank. All property policies will have a
lender's loss payable endorsement showing Bank as an additional loss payee and
all liability policies will show the Bank as an additional insured and provide
that the insurer must give Bank at least 20 days notice before canceling its
policy. At Bank's request, Borrower will deliver certified copies of policies
and evidence of all premium payments. Proceeds payable under any policy will, at
Bank's option, be payable to Bank on account of the Obligations.

6.6  Primary Accounts.

     Borrower will maintain its primary depository and operating accounts with
Bank.

6.7  Financial Covenants.

     Borrower will maintain as of the last day of each month:

                                       9
<PAGE>

          (i) Adjusted Quick Ratio.  A ratio of Quick Assets to Current
Liabilities minus Deferred Maintenance and Product Revenue of at least 1.00 to
1.00.

          (ii) Liquidity Coverage.  A ratio of unrestricted cash (and
equivalents) plus net availability under the Committed Revolving Line divided by
Term Loan and Equipment Advances outstandings of not less than 1.75 to 1.00.
Following two (2) consecutive quarters of Borrower's achievement of quarterly
Debt Service of at least 1.50 to 1.00, the foregoing Liquidity Coverage covenant
will be replaced with a Debt Service Coverage covenant defined as follows: a
ratio of earnings after tax plus interest and non cash expenses (annualized) to
the current portion of long term debt and capital leases plus interest of not
less than 1.50 to 1.00.

          (iii) Profitability.  Borrower will be profitable each quarter, except
that Borrower may suffer losses, provided such losses do not exceed $1,300,000
for the quarter ending September 30, 1998, $900,000 for the quarter ending
December 31, 1998 and $500,000 for the quarter ending March 31, 1999.

6.8  Further Assurances.

     Borrower will execute any further instruments and take further action as
Bank requests to perfect or continue Bank's security interest in the Collateral
or to effect the purposes of this Agreement.

7  NEGATIVE COVENANTS
   ------------------

     Borrower will not do any of the following without Bank's prior written
consent, which consent may be withheld or granted in Bank's sole discretion:

7.1  Dispositions.

     Convey, sell, lease, transfer or otherwise dispose of (collectively
"Transfer"), or permit any of its Subsidiaries to Transfer, all or any part of
its business or property, other than Transfers (i) of Inventory in the ordinary
course of business; (ii) of non-exclusive licenses and similar arrangements for
the use of the property of Borrower or its Subsidiaries in the ordinary course
of business; or (iii) of worn-out or obsolete Equipment.

7.2  Changes in Business, Ownership, Management or Business Locations.

     Engage in or permit any of its Subsidiaries to engage in any business other
than the businesses currently engaged in by Borrower or have a material change
in its ownership other than the sale by Borrower of equity securities of
Borrower. Borrower will not, without at least 30 days prior written notice,
relocate its chief executive office or add any new offices or business locations
where there will be located material Collateral.

7.3  Mergers or Acquisitions.

     (i) Merge or consolidate, or permit any of its Subsidiaries to merge or
consolidate, with any other Person, or acquire, or permit any of its
Subsidiaries to acquire, all or substantially all of the capital stock or
property of another Person, provided no Event of Default has occurred and is
continuing or would result from such action during the term of this Agreement
and result in a decrease of more than 25% of Tangible Net Worth; or (ii) merge
or consolidate a Subsidiary into another Subsidiary or into Borrower.

7.4  Indebtedness.

     Create, incur, assume, or be liable for any Indebtedness, or permit any
Subsidiary to do so, other than Permitted Indebtedness.

                                       10
<PAGE>

7.5  Encumbrance.

     Create, incur, or allow any Lien on any of its property, or assign or
convey any right to receive income, including the sale of any Accounts, or
permit any of its Subsidiaries to do so, except for Permitted Liens, or permit
any Collateral not to be subject to the first priority security interest granted
here.

7.6  Distributions; Investments.

     Directly or indirectly acquire or own any Person, or make any Investment in
any Person, other than Permitted Investments, or permit any of its Subsidiaries
to do so. Pay any dividends or make any distribution or payment or redeem,
retire or purchase any capital stock.

7.7  Transactions with Affiliates.

     Directly or indirectly enter or permit any material transaction with any
Affiliate except transactions that are in the ordinary course of Borrower's
business, on terms less favorable to Borrower than would be obtained in an arm's
length transaction with a non-affiliated Person.

7.8  Subordinated Debt.

     Make or permit any payment on any Subordinated Debt, except under the terms
of the Subordinated Debt, or amend any provision in any document relating to the
Subordinated Debt without Bank's prior written consent.

7.9  Compliance.

     Become an "investment company" or a company controlled by an "investment
company," under the Investment Company Act of 1940 or undertake as one of its
important activities extending credit to purchase or carry margin stock, or use
the proceeds of any Advance for that purpose; fail to meet the minimum funding
requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as
defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards
Act or violate any other law or regulation, if the violation could have a
material adverse effect on Borrower's business or operations or cause a Material
Adverse Change, or permit any of its Subsidiaries to do so.

8  EVENTS OF DEFAULT
   -----------------

     Any one of the following is an Event of Default:

8.1  Payment Default.

     If Borrower fails to pay any of the Obligations;

8.2  Covenant Default.

     If Borrower does not perform any obligation in Section 6 or violates any
covenant in Section 7 or does not perform or observe any other material term,
condition or covenant in this Agreement, any Loan Documents, or in any agreement
between Borrower and Bank and as to any default under a term, condition or
covenant that can be cured, has not cured the default within 10 days after it
occurs, or if the default cannot be cured within 10 days or cannot be cured
after Borrower's attempts within 10 day period, and the default may be cured
within a reasonable time, then Borrower has an additional period (of not more
than 30 days) to attempt to cure the default. During the additional time, the
failure to cure the default is not an Event of Default (but no Advances will be
made during the cure period);

                                       11
<PAGE>

8.3  Material Adverse Change.

     (i) If there occurs a material impairment in the perfection or priority of
the Bank's security interest in the Collateral or in the value of such
Collateral which is not covered by adequate insurance or (ii) if the Bank
determines, based upon information available to it and in its reasonable
judgment, that there is a reasonable likelihood that Borrower will fail to
comply with one or more of the financial covenants in Section 6 during the next
succeeding financial reporting period.

8.4  Attachment.

     If any material portion of Borrower's assets is attached, seized, levied
on, or comes into possession of a trustee or receiver and the attachment,
seizure or levy is not removed in 10 days, or if Borrower is enjoined,
restrained, or prevented by court order from conducting a material part of its
business or if a judgment or other claim becomes a Lien on a material portion of
Borrower's assets, or if a notice of lien, levy, or assessment is filed against
any of Borrower's assets by any government agency and not paid within 10 days
after Borrower receives notice. These are not Events of Default if stayed or if
a bond is posted pending contest by Borrower (but no Credit Extensions will be
made during the cure period);

8.5  Insolvency.

     If Borrower becomes insolvent or if Borrower begins an Insolvency
Proceeding or an Insolvency Proceeding is begun against Borrower and not
dismissed or stayed within 30 days (but no Credit Extensions will be made before
any Insolvency Proceeding is dismissed);

8.6  Other Agreements.

     If there is a default in any agreement between Borrower and a third party
that gives the third party the right to accelerate any Indebtedness exceeding
$100,000 or that could cause a Material Adverse Change;

8.7  Judgments.

     If a money judgment(s) in the aggregate of at least $100,000 is rendered
against Borrower and is unsatisfied and unstayed for 30 days (but no Credit
Extensions will be made before the judgment is stayed or satisfied); or

8.8  Misrepresentations.

     If Borrower or any Person acting for Borrower makes any material
misrepresentation or material misstatement now or later in any warranty or
representation in this Agreement or in any writing delivered to Bank or to
induce Bank to enter this Agreement or any Loan Document.

9  BANK'S RIGHTS AND REMEDIES
   --------------------------

9.1  Rights and Remedies.

     When an Event of Default occurs and continues Bank may, without notice or
demand, do any or all of the following:

     (a) Declare all Obligations immediately due and payable (but if an Event of
Default described in Section 8.5 occurs all Obligations are immediately due and
payable without any action by Bank);

                                       12
<PAGE>

     (b) Stop advancing money or extending credit for Borrower's benefit under
this Agreement or under any other agreement between Borrower and Bank;

     (c) Settle or adjust disputes and claims directly with account debtors for
amounts, on terms and in any order that Bank considers advisable;

     (d) Make any payments and do any acts it considers necessary or reasonable
to protect its security interest in the Collateral. Borrower will assemble the
Collateral if Bank requires and make it available as Bank designates. Bank may
enter premises where the Collateral is located, take and maintain possession of
any part of the Collateral, and pay, purchase, contest, or compromise any Lien
which appears to be prior or superior to its security interest and pay all
expenses incurred. Borrower grants Bank a license to enter and occupy any of its
premises, without charge, to exercise any of Bank's rights or remedies;

     (e) Apply to the Obligations any (i) balances and deposits of Borrower it
holds, or (ii) any amount held by Bank owing to or for the credit or the account
of Borrower;

     (f) Ship, reclaim, recover, store, finish, maintain, repair, prepare for
sale, advertise for sale, and sell the Collateral; and

     (g)  Dispose of the Collateral according to the Code.

9.2  Power of Attorney.

     Effective only when an Event of Default occurs and continues, Borrower
irrevocably appoints Bank as its lawful attorney to:  (i) endorse Borrower's
name on any checks or other forms of payment or security; (ii) sign Borrower's
name on any invoice or bill of lading for any Account or drafts against account
debtors, (iii) make, settle, and adjust all claims under Borrower's insurance
policies; (iv) settle and adjust disputes and claims about the Accounts directly
with account debtors, for amounts and on terms Bank determines reasonable; and
(v) transfer the Collateral into the name of Bank or a third party as the Code
permits.  Bank may exercise the power of attorney to sign Borrower's name on any
documents necessary to perfect or continue the perfection of any security
interest regardless of whether an Event of Default has occurred.  Bank's
appointment as Borrower's attorney in fact, and all of Bank's rights and powers,
coupled with an interest, are irrevocable until all Obligations have been fully
repaid and performed and Bank's obligation to provide Advances terminates.

9.3  Accounts Collection.

     When an Event of Default occurs and continues, Bank may notify any Person
owing Borrower money of Bank's security interest in the funds and verify the
amount of the Account.  Borrower must collect all payments in trust for Bank
and, if requested by Bank, immediately deliver the payments to Bank in the form
received from the account debtor, with proper endorsements for deposit.

9.4  Bank Expenses.

     If Borrower fails to pay any amount or furnish any required proof of
payment to third persons Bank may make all or part of the payment or obtain
insurance policies required in Section 6.5, and take any action under the
policies Bank deems prudent.  Any amounts paid by Bank are Bank Expenses and
immediately due and payable, bearing interest at the then applicable rate and
secured by the Collateral.  No payments by Bank are deemed an agreement to make
similar payments in the future or Bank's waiver of any Event of Default.

                                       13
<PAGE>

9.5  Bank's Liability for Collateral.

     If Bank complies with reasonable banking practices it is not liable for:
(a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral;
(c) any diminution in the value of the Collateral; or (d) any act or default of
any carrier, warehouseman, bailee, or other person.  Borrower bears all risk of
loss, damage or destruction of the Collateral.

9.6  Remedies Cumulative.

     Bank's rights and remedies under this Agreement, the Loan Documents, and
all other agreements are cumulative.  Bank has all rights and remedies provided
under the Code, by law, or in equity. Bank's exercise of one right or remedy is
not an election, and Bank's waiver of any Event of Default is not a continuing
waiver. Bank's delay is not a waiver, election, or acquiescence. No waiver is
effective unless signed by Bank and then is only effective for the specific
instance and purpose for which it was given.

9.7  Demand Waiver.

     Borrower waives demand, notice of default or dishonor, notice of payment
and nonpayment, notice of any default, nonpayment at maturity, release,
compromise, settlement, extension, or renewal of accounts, documents,
instruments, chattel paper, and guarantees held by Bank on which Borrower is
liable.

10  NOTICES
    -------

     All notices or demands by any party about this Agreement or any other
related agreement must be in writing and be personally delivered or sent by an
overnight delivery service, by certified mail, postage prepaid, return receipt
requested, or by telefacsimile to the addresses set forth at the beginning of
this Agreement.  A Party may change its notice address by giving the other Party
written notice.

11  CHOICE OF LAW VENUE AND JURY TRIAL WAIVER
    -------------------------------------------

     California law governs the Loan Documents without regard to principles of
conflicts of law.  Borrower and Bank each submit to the exclusive jurisdiction
of the State and Federal courts in Santa Clara County, California.

BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY CONTEMPLATED
TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS
WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT.
EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

12  GENERAL PROVISIONS
    ------------------

12.1  Successors and Assigns.

     This Agreement binds and is for the benefit of the successors and permitted
assigns of each party.  Borrower may not assign this Agreement or any rights
under it without Bank's prior written consent which may be granted or withheld
in Bank's discretion.  Bank has the right, without the consent of or notice to
Borrower, to sell, transfer, negotiate, or grant participation in all or any
part of, or any interest in, Bank's obligations, rights and benefits under this
Agreement.

                                       14
<PAGE>

12.2  Indemnification.

     Borrower will indemnify, defend and hold harmless Bank and its officers,
employees, and agents against:  (a) all obligations, demands, claims, and
liabilities asserted by any other party in connection with the transactions
contemplated by the Loan Documents; and (b) all losses or Bank Expenses
incurred, or paid by Bank from, following, or consequential to transactions
between Bank and Borrower (including reasonable attorneys fees and expenses),
except for losses caused by Bank's gross negligence or willful misconduct.

12.3  Time of Essence.

     Time is of the essence for the performance of all obligations in this
Agreement.

12.4  Severability of Provision.

     Each provision of this Agreement is severable from every other provision in
determining the enforceability of any provision.

12.5  Amendments in Writing, Integration.

     All amendments to this Agreement must be in writing and signed by Borrower
and Bank.  This Agreement represents the entire agreement about this subject
matter, and supersedes prior negotiations or agreements.  All prior agreements,
understandings, representations, warranties, and negotiations between the
parties about the subject matter of this Agreement merge into this Agreement and
the Loan Documents.

12.6  Counterparts.

     This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and
delivered, are an original, and all taken together, constitute one Agreement.

12.7  Survival.

     All covenants, representations and warranties made in this Agreement
continue in full force while  any Obligations remain outstanding.  The
obligations of Borrower in Section 12.2 to indemnify Bank will survive until all
statutes of limitations for actions that may be brought against Bank have run.

12.8  Confidentiality.

     In handling any confidential information, Bank will exercise the same
degree of care that it exercises for its own proprietary information, but
disclosure of information may be made (i) to Bank's subsidiaries or affiliates
in connection with their business with Borrower, (ii) to prospective transferees
or purchasers of any interest in the Loans, (iii) as required by law,
regulation, subpoena, or other order, (iv) as required in connection with Bank's
examination or audit and (v) as Bank considers appropriate exercising remedies
under this Agreement.  Confidential information does not include information
that either: (a) is in the public domain or in Bank's possession when disclosed
to Bank, or becomes part of the public domain after disclosure to Bank; or (b)
is disclosed to Bank by a third party, if Bank does not know that the third
party is prohibited from disclosing the information.

12.9  Effect of Amendment and Restatement.

     This Agreement is intended to and does completely amend and restate,
without novation, the Original Agreement.  All advances or loans outstanding
under the Original Agreement are and shall

                                       15
<PAGE>

continue to be outstanding under this Agreement. All security interests granted
under the Original Agreement are hereby confirmed and ratified and shall
continue to secure all Obligations under this Agreement.

12.10  Attorneys' Fees, Costs and Expenses.

     In any action or proceeding between Borrower and Bank arising out of the
Loan Documents, the prevailing party will be entitled to recover its reasonable
attorneys' fees and other costs and expenses incurred, in addition to any other
relief to which it may be entitled.

13  DEFINITIONS
    -----------

13.1  Definitions.

     In this Agreement:

     "Accounts" are all existing and later arising accounts, contract rights,
and other obligations owed Borrower in connection with its sale or lease of
goods (including licensing software and other technology) or provision of
services, all credit insurance, guaranties, other security and  all merchandise
returned or reclaimed by Borrower and Borrower's Books relating to any of the
foregoing.

     "Advance" or "Advances" is a loan advance (or advances) under the Committed
Revolving Line.

     "Affiliate" of a Person is a Person that owns or controls directly or
indirectly the Person, any Person that controls or is controlled by or is under
common control with the Person, and each of that Person's senior executive
officers, directors, partners and, for any Person that is a limited liability
company, that Person's managers and members.

     "Bank Expenses" are all audit fees and expenses and reasonable costs or
expenses (including reasonable attorneys' fees and expenses) for preparing,
negotiating, administering, defending and enforcing the Loan Documents
(including appeals or Insolvency Proceedings).

     "Borrower's Books" are all Borrower's books and records including ledgers,
records regarding Borrower's assets or liabilities, the Collateral, business
operations or financial condition and all computer programs or discs or any
equipment containing the information, if such equipment is necessary for the
review of such information.

     "Borrowing Base" is 80% of Eligible Accounts as determined by Bank from
Borrower's most recent Borrowing Base Certificate.

     "Business Day" is any day that is not a Saturday, Sunday or a day on which
the Bank is closed.

     "Closing Date" is the date of this Agreement.

     "Code" is the California Uniform Commercial Code.

     "Collateral" is the property described on Exhibit A.
                                               ---------

     "Committed Equipment Line" is a Credit Extension of up to $2,000,000
subject to the Cap Amount.

     "Committed Revolving Line" is an Advance of up to $3,000,000.

                                       16
<PAGE>

     "Contingent Obligation" is, for any Person, any direct or indirect
liability, contingent or not, of that Person for (i) any indebtedness, lease,
dividend, letter of credit or other obligation of another such as an obligation
directly or indirectly guaranteed, endorsed, co-made, discounted or sold with
recourse by that Person, or for which that Person is directly or indirectly
liable; (ii) any obligations for undrawn letters of credit for the account of
that Person; and (iii) all obligations from any interest rate, currency or
commodity swap agreement, interest rate cap or collar agreement, or other
agreement or arrangement designated to protect a Person against fluctuation in
interest rates, currency exchange rates or commodity prices;  but "Contingent
Obligation" does not include endorsements in the ordinary course of business.
The amount of a Contingent Obligation is the stated or determined amount of the
primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by
the Person in good faith; but the amount may not exceed the maximum of the
obligations under the guarantee or other support arrangement.

     "Credit Extension" is each Advance, Equipment Advance, Letter of Credit,
Term Loan, Exchange Contract or any other extension of credit by Bank for
Borrower's benefit.

     "Current Liabilities" are the aggregate amount of Borrower's Total
Liabilities which mature within one (1) year.

     "Eligible Accounts" are Accounts in the ordinary course of Borrower's
business that meet all Borrower's representations and warranties in Section 5.2
provided, that standards of eligibility may be fixed and revised from time to
time by Bank in Bank's reasonable judgment and upon {thirty (30) days prior}
notification thereof to Borrower in accordance with the provisions hereof.
Unless Bank agrees otherwise in writing, Eligible Accounts will not include:

     (a) Accounts that the account debtor has not paid within 90 days of invoice
     date;

     (b) Accounts for an account debtor, 50% or more of whose Accounts have not
     been paid within 90 days of invoice date;

     (c) Credit balances over 90 days from invoice date;

     (d) Accounts for an account debtor, including Affiliates, whose total
     obligations to Borrower exceed 25% of all Accounts, for the amounts that
     exceed that percentage, unless the Bank approves in writing except for
     those certain Accounts from Pacific Design, for which the percentage may be
     40%;

     (e) Accounts for which the account debtor does not have its principal place
     of business in the United States except for Eligible Foreign Accounts;

     (f) Accounts for which the account debtor is a federal, state or local
     government entity or any department, agency, or instrumentality;

     (g) Accounts for which Borrower owes the account debtor, but only up to the
     amount owed (sometimes called "contra" accounts, accounts payable, customer
     deposits or credit accounts);

     (h) Accounts for demonstration or promotional equipment, or in which goods
     are consigned, sales guaranteed, sale or return, sale on approval, bill and
     hold, or other terms if account debtor's payment may be conditional;

     (i) Accounts for which the account debtor is Borrower's Affiliate, officer,
     employee, or agent;

                                       17
<PAGE>

     (j) Accounts in which the account debtor disputes liability or makes any
     claim and Bank believes there may be a basis for dispute (but only up to
     the disputed or claimed amount), or if the Account Debtor is subject to an
     Insolvency Proceeding, or becomes insolvent, or goes out of business;

     (k) Accounts for which Bank reasonably determines  collection to be
     doubtful after reasonable inquiry and reasonable consultation with
     Borrower.

     "Eligible Foreign Accounts" "Eligible Foreign Accounts" are Accounts for
which the account debtor does not have its principal place of business in the
United States but are:  (1) covered by credit insurance satisfactory to Bank,
less any deductible; or (2) supported by letter(s) of credit acceptable to Bank;
or (3) that Bank approves in writing; or (4) Accounts for which the account
debtor does not have its principal place of business in the United States but
are accounts owing from Pacific Design and Hardi Electronics.

     "Equipment" is all present and future machinery, equipment, tenant
improvements, furniture, fixtures, vehicles, tools, parts and attachments in
which Borrower has any interest.

     "Equipment Advance" is defined in Section 2.1.2.

     "Equipment Availability End Date" is defined in Section 2.1.2.

     "Equipment Maturity Date" is defined in Section 2.1.2.

     "ERISA" is the Employment Retirement Income Security Act of 1974, and its
regulations.

     "GAAP" is generally accepted accounting principles.

     "Indebtedness" is (a) indebtedness for borrowed money or the deferred
price of property or services, such as reimbursement and other obligations for
surety bonds and letters of credit, (b) obligations evidenced by notes, bonds,
debentures or similar instruments, (c) capital lease obligations and (d)
Contingent Obligations.

     "Insolvency Proceeding" are proceedings by or against any Person under
the United States Bankruptcy Code, or any other bankruptcy or insolvency law,
including assignments for the benefit of creditors, compositions, extensions
generally with its creditors, or proceedings seeking reorganization,
arrangement, or other relief.

     "Inventory" is present and future inventory in which Borrower has any
interest, including merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products intended for sale or
lease or to be furnished under a contract of service, of every kind and
description now or later owned by or in the custody or possession, actual or
constructive, of Borrower, including inventory temporarily out of its custody or
possession or in transit and including returns on any accounts or other proceeds
(including insurance proceeds) from the sale or disposition of any of the
foregoing and any documents of title.

     "Investment" is any beneficial ownership of (including stock, partnership
interest or other securities) any Person, or any loan, advance or capital
contribution to any Person.

     "Lien" is a mortgage, lien, deed of trust, charge, pledge, security
interest or other encumbrance.

     "Loan Documents" are, collectively, this Agreement, any note, or notes or
guaranties executed by Borrower or Guarantor, and any other present or future
agreement between Borrower and/or for the benefit of Bank in connection with
this Agreement, all as amended, extended or restated.

                                       18
<PAGE>

     "Material Adverse Change" is defined in Section 8.3.

     "Obligations" are debts, principal, interest, Bank Expenses and other
amounts Borrower owes Bank now or later, including letters of credit and
Exchange Contracts and including interest accruing after Insolvency Proceedings
begin and debts, liabilities, or obligations of Borrower assigned to Bank.

     "Original Agreement" has the meaning set forth in recital paragraph A.

     "Permitted Indebtedness" is:

     (a)  Borrower's indebtedness to Bank under this Agreement or any other Loan
Document;

     (b)  Indebtedness existing on the Closing Date and shown on the Schedule;

     (c)  Subordinated Debt;

     (d)  Indebtedness to trade creditors incurred in the ordinary course of
business; and

     (e)  Indebtedness secured by Permitted Liens; and

     (f)  Other Indebtedness, not otherwise permitted by Section 7.4 not
exceeding $100,000 in the aggregate outstanding at any time; and

     (g)  Extensions, refinancings, modifications, amendments and restatements
of any items of Permitted Indebtedness (a) through (e) above, provided that the
principal amount thereof is not increased or the terms thereof are not modified
to impose more burdensome terms upon Borrower or its Subsidiary, as the case may
be.

     "Permitted Investments" are:

     (a)  Investments shown on the Schedule and existing on the Closing Date;

     (b)  (i)  marketable direct obligations issued or unconditionally
guaranteed by the United States or its agency or any State maturing within 1
year from its acquisition, (ii) commercial paper maturing no more than 1 year
after its creation and having the highest rating from either Standard & Poor's
Corporation or Moody's Investors Service, Inc., and (iii) Bank's certificates of
deposit issued maturing no more than 1 year after issue; and

     (c) Investments consisting of the endorsement of negotiable instruments
for deposit or collection or similar transactions in the ordinary course of
business; and

     (d)  Investments consisting of receivables owing to Borrower or its
Subsidiaries by Persons and advances to customers or suppliers, in each case, if
created, acquired or made in the ordinary course of business; provided that this
paragraph (d) shall not apply to Investments owing by Subsidiaries to Borrower;
and

     (e)  Investments consisting of (i) compensation of employees, officers and
directors of Borrower or its Subsidiaries so long as the Board of Directors of
Borrower determines that such compensation is in the best interests of Borrower,
(ii) travel advances, employee relocation loans and other employee loans and
advances in the ordinary course of business, (iii) loans to employees, officers
or directors relating to the purchase of equity securities of Borrower or its
Subsidiaries pursuant to employee stock purchase plans approved by Borrower's
Board of Directors, (iv) other loans to officers and employees approved by the
Board of Directors in an aggregate amount not in excess of $100,000 outstanding
at any time; and

                                       19
<PAGE>

     (f)  Investments (including debt obligations) received in connection with
the bankruptcy or reorganization of customers or suppliers and in settlement of
delinquent obligations of, and other disputes with, customers or suppliers
arising in the ordinary course of business; and

     (g)  Investments pursuant to or arising under currency agreements or
interest rate agreements entered into in the ordinary course of business; and

     (h)  Investments consisting of prepaid royalties and other credit
extensions to, customers and suppliers who are not Affiliates, in the ordinary
course of business; and

     (i)  Investments constituting acquisitions permitted under Section 7.3; and

     (j)  Deposit accounts of Borrower in which Bank has a Lien prior to any
other Lien; and

     (k)  Deposit accounts of any Subsidiaries maintained in the ordinary
course of business; and

     (l)  Investments accepted in connection with Transfers permitted by Section
7.1;

     (m)  Other Investments aggregating not in excess of $100,000 at any time.

     "Permitted Liens" are:

     (a)  Liens existing on the Closing Date and shown on the Schedule or
arising under this Agreement or other Loan Documents;

     (b)  Liens for taxes, fees, assessments or other government charges or
levies, either not delinquent or being contested in good faith and for which
Borrower maintains adequate reserves on its Books, if they have no priority over
any of Bank's security interests;

     (c)  Purchase money Liens (i) on Equipment acquired or held by Borrower or
its Subsidiaries incurred for financing the acquisition of the Equipment, or
(ii) existing on equipment when acquired, if the Lien is confined to the
property and improvements and the proceeds of the equipment;

     (d)  Leases or subleases and licenses or sublicenses granted in the
ordinary course of Borrower's business and any interest or title of a lessor,
licensor or under any lease or license, if the leases, subleases, licenses and
sublicenses permit granting Bank a security interest;

     (e)  Liens incurred in the extension, renewal or refinancing of the
indebtedness secured by Liens described in (a) through (c), but any extension,
renewal or replacement Lien must be limited to the property encumbered by the
existing Lien and the principal amount of the indebtedness may not increase.

     (f)  Liens arising from judgments, decrees or attachments in circumstances
not constituting an Event of Default under Section 8.8;

     (g)  Easements, reservations, rights-of-way, restrictions, minor defects
or irregularities in title and other similar charges or encumbrances affecting
real property not constituting a Material Adverse Effect;

     (h)  Liens that are not prior to the Lien of Bank which constitute rights
of set-off of a customary nature or bankers' Liens with respect to amounts on
deposit, whether arising by operation of law or by contract, in connection with
arrangements entered into with banks in the ordinary course of business;]

                                       20
<PAGE>

     (i)  Earn-out and royalty obligations existing on the date hereof or
entered into in connection with an acquisition permitted by Section 7.3; and

     (j)  Liens incurred in connection with the extension, renewal or
refinancing of the indebtedness secured by Liens of the type described in
[clauses (a), (c), and (d) above], provided that any extension, renewal or
replacement Lien shall be limited to the property encumbered by the existing
Lien and the principal amount of the indebtedness

     "Person" is any individual, sole proprietorship, partnership, limited
liability company, joint venture, company association, trust, unincorporated
organization, association, corporation, institution, public benefit corporation,
firm, joint stock company, estate, entity or government agency.

     "Prime Rate" is Bank's most recently announced "prime rate," even if it
is not Bank's lowest rate.

     "Quick Assets" is, on any date, the Borrower's consolidated, unrestricted
cash, cash equivalents, net billed accounts receivable and investments with
maturities of fewer than 12 months determined according to GAAP.

     "Responsible Officer" is each of the Chief Executive Officer, the
President, the Chief Financial Officer of Borrower.

     "Revolving Maturity Date" is September 4, 2000.

     "Schedule" is any attached schedule of exceptions.

     "Subordinated Debt" is debt incurred by Borrower subordinated to Borrower's
debt to Bank (and identified as subordinated by Borrower and Bank).

     "Subsidiary" is for any Person, or any other business entity of which more
than 50% of the voting stock or other equity interests is owned or controlled,
directly or indirectly, by the Person or one or more Affiliates of the Person.

     "Temporary Equipment Sublimit" is defined in Section 2.1.3.

     "Term Loan" a loan of $344,444.40.

     "Term Loan Maturity Date" is December 31, 2000.

                                       21
<PAGE>

BORROWER:

SYNPLICITY, INC.

By: /s/ Alisa Yaffa, Alisa Yaffa
   ---------------------------------

Title: CFO, VP
      ------------------------------

BANK:

SILICON VALLEY BANK

By: /s/ Kevin J. Conway
   ---------------------------------

Title: Vice President
      ------------------------------

                                       22
<PAGE>

                                   EXHIBIT A
                                   ---------

     The Collateral consists of all of Borrower's right, title and interest in
and to the following:

     All goods and equipment now owned or hereafter acquired, including, without
limitation, all machinery, fixtures, vehicles (including motor vehicles and
trailers), and any interest in any of the foregoing, and all attachments,
accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing, wherever located;

     All inventory, now owned or hereafter acquired, including, without
limitation, all merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products including such
inventory as is temporarily out of Borrower's custody or possession or in
transit and including any returns upon any accounts or other proceeds, including
insurance proceeds, resulting from the sale or disposition of any of the
foregoing and any documents of title representing any of the above;

     All contract rights and general intangibles now owned or hereafter
acquired, including, without limitation, goodwill, trademarks, servicemarks,
trade styles, trade names, patents, patent applications, leases, license
agreements, franchise agreements, blueprints, drawings, purchase orders,
customer lists, route lists, infringements, claims, computer programs, computer
discs, computer tapes, literature, reports, catalogs, design rights, income tax
refunds, payments of insurance and rights to payment of any kind;

     All now existing and hereafter arising accounts, contract rights,
royalties, license rights and all other forms of obligations owing to Borrower
arising out of the sale or lease of goods, the licensing of technology or the
rendering of services by Borrower, whether or not earned by performance, and any
and all credit insurance, guaranties, and other security therefor, as well as
all merchandise returned to or reclaimed by Borrower;

     All documents, cash, deposit accounts, securities, securities entitlements,
securities accounts, investment property, financial assets, letters of credit,
certificates of deposit, instruments and chattel paper now owned or hereafter
acquired and Borrower's Books relating to the foregoing;

     All copyright rights, copyright applications, copyright registrations and
like protections in each work of authorship and derivative work thereof, whether
published or unpublished, now owned or hereafter acquired; all trade secret
rights, including all rights to unpatented inventions, know-how, operating
manuals, license rights and agreements and confidential information, now owned
or hereafter acquired; all mask work or similar rights available for the
protection of semiconductor chips, now owned or hereafter acquired; all claims
for damages by way of any past, present and future infringement of any of the
foregoing; and

All Borrower's Books relating to the foregoing and any and all claims, rights
and interests in any of the above and all substitutions for, additions and
accessions to and proceeds thereof.

                                       23
<PAGE>

                                   EXHIBIT B
                                   ---------

                  LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM

             DEADLINE FOR SAME DAY PROCESSING IS 3:00 P.M., P.S.T.

TO:  CENTRAL CLIENT SERVICE DIVISION     DATE:
                                              -------------------------

FAX#:  (408) 496-2426                    TIME:
                                              -------------------------

--------------------------------------------------------------------------------
FROM:  SYNPLICITY, INC.
     ---------------------------------------------------------------------------
                            CLIENT NAME (BORROWER)

REQUESTED BY:
             -------------------------------------------------------------------
                           AUTHORIZED SIGNER'S NAME

AUTHORIZED SIGNATURE:
                     -----------------------------------------------------------

PHONE NUMBER:
             -------------------------------------------------------------------

FROM ACCOUNT #                             TO ACCOUNT #
              --------------------------               -------------------------

REQUESTED TRANSACTION TYPE          REQUESTED DOLLAR AMOUNT
--------------------------          -----------------------

PRINCIPAL INCREASE (ADVANCE)        $
                                     -------------------------------------------
PRINCIPAL PAYMENT (ONLY)            $
                                     -------------------------------------------
INTEREST PAYMENT (ONLY)             $
                                     -------------------------------------------
PRINCIPAL AND INTEREST (PAYMENT)    $
                                     -------------------------------------------

OTHER INSTRUCTIONS:
                   -------------------------------------------------------------

--------------------------------------------------------------------------------

All Borrower's representations and warranties in the Amended and Restated Loan
and Security Agreement are true, correct and complete in all material respects
on the date of the telephone request for and Advance confirmed by this Borrowing
Certificate; but those representations and warranties expressly referring to
another date shall be true, correct and complete in all material respects as of
that date.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                                 BANK USE ONLY

TELEPHONE REQUEST:
-----------------

The following person is authorized to request the loan payment transfer/loan
advance on the advance designated account and is known to me.

---------------------------------------              ---------------------------
         Authorized Requester                                   Phone #

---------------------------------------              ---------------------------
          Received By (Bank)                                    Phone #

                      -----------------------------------
                          Authorized Signature (Bank)

--------------------------------------------------------------------------------

                                       24
<PAGE>

                                   EXHIBIT C
                          BORROWING BASE CERTIFICATE

--------------------------------------------------------------------------------

Borrower:  SYNPLICITY, INC.                      Bank:   Silicon Valley Bank
                                                         3003 Tasman Drive
                                                         Santa Clara, CA 95054
Commitment Amount:  $3,000,000

--------------------------------------------------------------------------------

ACCOUNTS RECEIVABLE
1.        Accounts Receivable Book Value as of ____                $
                                                                    ------------
2.        Additions (please explain on reverse)                    $
                                                                    ------------
3.        TOTAL ACCOUNTS RECEIVABLE                                $
                                                                    ------------

ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)

4.        Amounts over 90 days due                    $
                                                       ------------
5.        Balance of 50% over 90 day accounts         $
                                                       ------------
6.        Credit balances                             $
                                                       ------------
7.        Concentration Limits*                       $
                                                       ------------
8.        Foreign Accounts**                          $
                                                       ------------
9.        Governmental Accounts                       $
                                                       ------------
10.       Contra Accounts                             $
                                                       ------------
11.       Promotion or Demo Accounts                  $
                                                       ------------
12.       Intercompany/Employee Accounts              $
                                                       ------------
13.       Other (please explain on reverse)           $
                                                       ------------
14.       TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS                     $
                                                                    ------------
15.       Eligible Accounts (#3 minus #14)                         $
                                                                    ------------
16.       LOAN VALUE OF ACCOUNTS (80% of #15)                      $
                                                                    ------------
*  40% for Pacific Design
** Pacific Design and Hardi Electronics eligible Foreign

BALANCES

17.       Maximum Loan Amount                         $
                                                       ------------
18.       Total Funds Available [Lesser of #16
           or #17)                                    $
                                                       ------------
19.       Present balance owing on Line of Credit     $
                                                       ------------
20.       Outstanding under Sublimits (  )            $
                                                       ------------
21.       RESERVE POSITION (#18 minus #19 and #20)                 $
                                                                    ------------

The undersigned represents and warrants that this is true, complete and correct,
and that the information in this Borrowing Base Certificate complies with the
representations and warranties in the Amended and Restated Loan and Security
Agreement between the undersigned and Silicon Valley Bank.

COMMENTS:                                              +-----------------------+
                                                       |     BANK USE ONLY     |
                                                       |     -------------     |
                                                       |                       |
SYNPLICITY, INC.                                       | Rec'd By:             |
                                                       |          ------------ |
                                                       |          Auth. Signer |
By:                                                    |                       |
   --------------------------------                    | Date:                 |
     Authorized Signer                                 |      ---------------- |
                                                       |                       |
                                                       | Verified:             |
                                                       |          ------------ |
                                                       |          Auth. Signer |
                                                       |                       |
                                                       | Date:                 |
                                                       |      ---------------- |
                                                       |                       |
                                                       +-----------------------+

                                       25
<PAGE>

                                   EXHIBIT D
                            COMPLIANCE CERTIFICATE

TO:       SILICON VALLEY BANK
          3003 Tasman Drive
          Santa Clara, CA 95054

FROM:     SYNPLICITY, INC.

     The undersigned authorized officer of SYNPLICITY, INC. ("Borrower")
certifies that under the terms and conditions of the Amended and Restated Loan
and Security Agreement between Borrower and Bank (the "Agreement"), (i) Borrower
is in complete compliance for the period ending _______________ with all
required covenants except as noted below and (ii) all representations and
warranties in the Agreement are true and correct in all material respects on
this date. Attached are the required documents supporting the certification. The
Officer certifies that these are prepared in accordance with Generally Accepted
Accounting Principles (GAAP) consistently applied from one period to the next
except as explained in an accompanying letter or footnotes. The Officer
acknowledges that no borrowings may be requested at any time or date of
determination that Borrower is not in compliance with any of the terms of the
Agreement, and that compliance is determined not just at the date this
certificate is delivered.

 Please indicate compliance status by circling Yes/No under "Complies" column.

<TABLE>
<CAPTION>
Reporting Covenant                    Required                                        Complies
------------------                    --------                                        --------
<S>                                   <C>                                             <C>
Financial Statements + CC             Monthly within 30 days                          Yes     No
Preliminary Annual (Audited           FYE within 120 days                             Yes     No
Final Annual (Audited)                FYE within 150 days                             Yes     No
A/R & A/P Agings                      Monthly within 30 days                          Yes     No
Borrowing Base Certificate            Monthly within 30 days                          Yes     No

Financial Covenant                    Required         Actual                         Complies
------------------                    --------         ------                         --------

Maintain on a Monthly Basis:

  Minimum Adjusted Quick Ratio        1.00:1.00        _____:1.00                     Yes     No
  Minimum Liquidity                   1.75:1.00*       _____:1.00                     Yes     No

Profitability:                        Quarterly        $_________                     Yes     No

    Losses not to exceed:             $1,300,000 for the quarter ending 9/30/98       Yes     No
                                      $900,000 for the quarter ending 12/31/98; and
                                      $500,0000 for the quarter ending 3/31/98.
</TABLE>

*Following two (2) consecutive quarters of Borrower's achievement of a quarterly
debt service of at least 1.50 to 1.00, the Liquidity Coverage covenant will be
replaced with a Debt Service Coverage covenant defined as follows: a ratio of
earnings after tax plus interest and non cash expenses (annualized) to the
current portion of long term debt and capital leases plus interest of at least
1.50 to 1.00.

<PAGE>

<TABLE>
<CAPTION>
<S>                                                <C>
Comments Regarding Exceptions:  See Attached.      +--------------------------------------+
                                                   |            BANK USE ONLY             |
                                                   |                                      |
Sincerely,                                         | Received by:                         |
                                                   |             ------------------------ |
                                                   |             AUTHORIZED SIGNER        |
SYNPLICITY, INC.                                   |                                      |
                                                   | Date:                                |
                                                   |      ------------------------------- |
---------------------------------------            |                                      |
Signature                                          | Verified:                            |
                                                   |          --------------------------- |
                                                   |          AUTHORIZED SIGNER           |
---------------------------------------            |                                      |
Title                                              | Date:                                |
                                                   |      ------------------------------- |
                                                   |                                      |
---------------------------------------            | Compliance Status:     Yes     No    |
Date                                               +--------------------------------------+
</TABLE>

                                       2
<PAGE>

[LOGO OF SILICON VALLEY BANK]

                              SILICON VALLEY BANK

                      PRO FORMA INVOICE FOR LOAN CHARGES

BORROWER:           SYNPLICITY, INC.

LOAN OFFICER:       Kevin Conway

DATE:               September 9, 1998

                    Revolving Loan Fee         $15,000.00
                    Equipment Line Loan Fee      5,000.00*
                    Documentation Fee            1,000.00

                    TOTAL FEE DUE              $21,000.00
                    -------------              ==========

*$2,500 due and payable now and $2,500 due on the initial Equipment Advance in
excess of the Cap Amount and not issued under the Temporary Equipment Sublimit.

Please indicate the method of payment:

     [ ]  A check for the total amount is attached.

     [ ]  Debit DDA # __________________ for the total amount.

     [ ]  Loan proceeds

Borrower:

By:
-----------------------------------
  (Authorized Signer)

-----------------------------------
Silicon Valley Bank         (Date)
Account Officer's Signature

<PAGE>

                        CORPORATE BORROWING RESOLUTION

Borrower:  SYNPLICITY, INC.          Bank:  Silicon Valley Bank
           624 E. Evelyn Avenue             3003 Tasman Drive
           Sunnyvale, CA 94086              Santa Clara, CA 95054-1191

I, the undersigned Secretary or Assistant Secretary of SYNPLICITY, INC.
("Borrower"), HEREBY CERTIFY that Borrower is a corporation duly organized and
existing under and by virtue of the laws of the State of California.

I FURTHER CERTIFY that at a meeting of the Directors of Borrower (or by other
duly authorized corporate action in lieu of a meeting), duly called and held, at
which a quorum was present and voting, the following resolutions were adopted.

BE IT RESOLVED, that any one (1) of the following named officers, employees, or
agents of Borrower, whose actual signatures are shown below:

        NAMES                   POSITIONS                  ACTUAL SIGNATURES
-----------------------  ------------------------  -----------------------------

-----------------------  ------------------------  -----------------------------

-----------------------  ------------------------  -----------------------------

-----------------------  ------------------------  -----------------------------

-----------------------  ------------------------  -----------------------------

acting for and on behalf of Borrower and as its act and deed be, and they hereby
are, authorized and empowered:

     Borrow Money.  To borrow from time to time from Silicon Valley Bank
     ("Bank"), on such terms as may be agreed upon between the officers of
     Borrower and Bank, such sum or sums of money as in their judgment should be
     borrowed.

     Execute Loan Documents.  To execute and deliver to Bank the loan documents
     of Borrower, on Bank's forms, at such rates of interest and on such terms
     as may be agreed upon, evidencing the sums of money so borrowed or any
     indebtedness of Borrower to Bank, and also to execute and deliver to Bank
     one or more renewals, extensions, modifications, refinancings,
     consolidations, or substitutions for one or more of the loan documents, or
     any portion of the loan documents.

     Grant Security.  To grant a security interest to Bank in any of Borrower's
     assets, which security interest shall secure all of Borrower's obligations
     to Bank.

     Negotiate Items.  To draw, endorse, and discount with Bank all drafts,
     trade acceptances, promissory notes, or other evidences of indebtedness
     payable to or belonging to Borrower or in which Borrower may have an
     interest, and either to receive cash for the same or to cause such proceeds
     to be credited to the account of Borrower with Bank, or to cause such other
     disposition of the proceeds derived therefrom as they may deem advisable.

     Letters of Credit.  To execute letter of credit applications and other
     related documents pertaining to Bank's issuance of letters of credit.

                                       29
<PAGE>

     Foreign Exchange Contracts.  To execute and deliver foreign exchange
     contracts, either spot or forward, from time to time, in such amount as, in
     the judgment of the officer or officers herein authorized.

     Issue Warrants.  To issue warrants to purchase Borrower's capital stock,
     for such class, series and number, and on such terms, as an officer of
     Borrower shall deem appropriate.

     Further Acts.  In the case of lines of credit, to designate additional or
     alternate individuals as being authorized to request advances thereunder,
     and in all cases, to do and perform such other acts and things, to pay any
     and all fees and costs, and to execute and deliver such other documents and
     agreements, including agreements waiving the right to a trial by jury, as
     they may in their discretion deem reasonably necessary or proper in order
     to carry into effect the provisions of these Resolutions.

BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these
Resolutions and performed prior to the passage of these resolutions are hereby
ratified and approved, that these Resolutions shall remain in full force and
effect and Bank may rely on these Resolutions until written notice of their
revocation shall have been delivered to and received by Bank.  Any such notice
shall not affect any of Borrower's agreements or commitments in effect at the
time notice is given.

I FURTHER CERTIFY that the persons named above are principal officers of the
Borrower and occupy the positions set opposite their respective names; that the
foregoing Resolutions now stand of record on the books of the Borrower; and that
they are in full force and effect and have not been modified or revoked in any
manner whatsoever.

IN WITNESS WHEREOF, I have hereunto set my hand on September 4, 1998 and attest
that the signatures set opposite the names listed above are their genuine
signatures.

CERTIFIED TO AND ATTESTED BY:

X
  ----------------------------------------------
 *Secretary or Assistant Secretary

X
  ----------------------------------------------

*NOTE: In case the Secretary or other certifying officer is designated by the
foregoing resolutions as one of the signing officers, this resolution should
also be signed by a second Officer or Director of Borrower.

                                       30

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]