Document:

EXHIBIT 4.1

 Exhibit 4.1 
  

CHASE ISSUANCE TRUST 
 as Issuer

  
 CLASS A(2005-3) TERMS DOCUMENT 
 dated as of May 23, 2005 
  
 to 
  
 AMENDED AND RESTATED 
 CHASESERIES INDENTURE SUPPLEMENT 
 dated as of October 15, 2004 
  
 to 
  
 AMENDED AND RESTATED 
 INDENTURE 
  
 dated as of October 15, 2004 
  
 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 as Indenture Trustee and Collateral Agent 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE

	ARTICLE I Definitions and Other Provisions of General Application	  	 
			
	Section 1.01	  	Definitions	  	1
	Section 1.02	  	Governing Law	  	4
	Section 1.03	  	Counterparts	  	4
	Section 1.04	  	Ratification of Indenture and Indenture Supplement	  	4
	
	ARTICLE II The Class A(2005-3) Notes
			
	Section 2.01	  	Creation and Designation	  	5
	Section 2.02	  	Specification of Required Subordinated Amount and Other Terms	  	5
	Section 2.03	  	Interest Payment	  	5
	Section 2.04	  	Calculation Agent; Determination of LIBOR	  	6
	Section 2.05	  	Payments of Interest and Principal	  	7
	Section 2.06	  	Form of Delivery of Class A(2005-3) Notes; Depository; Denominations	  	7
	Section 2.07	  	Delivery and Payment for the Class A(2005-3) Notes	  	8
	Section 2.08	  	Supplemental Indenture	  	8
	Section 2.09	  	Appointment of co-Paying Agent and co-Transfer Agent	  	8

 THIS CLASS A(2005-3) TERMS DOCUMENT (this “Terms Document”), by and between the CHASE ISSUANCE
TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”), having its principal office at c/o Wilmington Trust Company, 1100 North Market Street, Wilmington, Delaware 19890-1600, and WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association, as indenture trustee (the “Indenture Trustee”) and collateral agent (the “Collateral Agent”), is made and entered into as of May 23, 2005. 
  
 Pursuant to this Terms Document, the Issuer and the Indenture Trustee shall
create a new Tranche of CHASEseries Class A Notes and shall specify the principal terms thereof. 
  
 ARTICLE I 
  
 Definitions and Other Provisions of General Application 
  
 Section 1.01 Definitions. For all purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise requires: 
  
 (1) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as
the singular; 
  
 (2) all other terms used herein which are
defined in the Indenture Supplement, the Indenture or the Asset Pool Supplement, either directly or by reference therein, have the meanings assigned to them therein; 
  
 (3) as used in this Terms Document and in any certificate or other document made or delivered pursuant hereto or thereto,
accounting terms not defined in this Terms Document or in any such certificate or other document, and accounting terms partly defined in this Terms Document or in any such certificate or other document to the extent not defined, shall have the
respective meanings given to them under GAAP. To the extent that the definitions of accounting terms in this Terms Document or in any such certificate or other document are inconsistent with the meanings of such terms under GAAP, the definitions
contained in this Terms Document or in any such certificate or other document shall control; 
  
 (4) the words “hereof,” “herein,” “hereunder” and words of similar import when used in this Terms Document shall refer to this Terms Document as a whole and not to any particular
provision of this Terms Document; references to any subsection, Section, clause, Schedule or Exhibit are references to subsections, Sections, clauses, Schedules and Exhibits in or to this Terms Document unless otherwise specified; the term
“including” means “including without limitation”; references to any law or regulation refer to that law or regulation as amended from time to time and include any successor law or regulation; references to any Person include that
Person’s successors and assigns; and references to any agreement refer to such agreement, as amended, supplemented or otherwise modified from time to time; 

 (5) in the event that any term or provision contained herein shall conflict with or be inconsistent with
any term or provision contained in the Indenture Supplement, the Indenture or the Asset Pool Supplement, the terms and provisions of this Terms Document shall be controlling; and 
  
 (6) each capitalized term defined herein shall relate only to the Class A(2005-3) Notes and no other Tranche of CHASEseries
Notes issued by the Issuer. 
  
 “Asset Pool
Supplement” means the Amended and Restated Asset Pool One Supplement to the Indenture, dated as of October 15, 2004, as amended by the First Amendment thereto, dated as of May 10, 2005, among the Issuer, the Indenture Trustee and the
Collateral Agent. 
  
 “BDL” means Banque de
Luxembourg. 
  
 “Class A(2005-3) Adverse Event”
means the occurrence of any of the following: (a) an Early Amortization Event with respect to the Class A(2005-3) Notes, (b) an Event of Default and acceleration of the Class A(2005-3) Notes, (c) the Class A Usage of the Class B Required
Subordinated Amount for the Class A(2005-3) Notes becomes greater than zero or (d) the Class A Usage of the Class C Required Subordinated Amount for the Class A(2005-3) Notes becomes greater than zero. 
  
 “Class A(2005-3) Note” means any Note, substantially in the
form set forth in Exhibit A-1 to the Indenture Supplement, designated therein as a Class A(2005-3) Note and duly executed and authenticated in accordance with the Indenture. 
  
 “Class A(2005-3) Noteholder” means a Person in whose name a Class A(2005-3) Note is registered in the Note
Register. 
  
 “Class A(2005-3) Termination Date”
means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2005-3) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and
satisfied pursuant to Article V thereof. 
  
 “Class A
Required Subordinated Amount of Class B Notes” is defined in Section 2.02(a). 
  
 “Class A Required Subordinated Amount of Class C Notes” is defined in Section 2.02(b). 
  
 “Controlled Accumulation Amount” means $54,166,666.67; provided, however, if the Accumulation Period Length is determined
to be less than twelve months pursuant to Section 3.12(b)(ii) of the Indenture Supplement, the Controlled Accumulation Amount for any Note Transfer Date with respect to the Class A(2005-3) Notes will be the amount specified in the definition of
“Controlled Accumulation Amount” in the Indenture Supplement. 
  

 2 

 “Indenture” means the Amended and Restated Indenture, dated as of October 15, 2004,
between the Issuer and the Indenture Trustee. 
  
 “Indenture Supplement” means the Amended and Restated CHASEseries Indenture Supplement, dated as of October 15, 2004, among the Issuer, the Indenture Trustee and the Collateral Agent. 
  
 “Initial Dollar Principal Amount” means $650,000,000.

  
 “Interest Payment Date” means June 15, 2005
and the 15th day of each month thereafter, or if such 15th day is not a Business Day, the next succeeding Business Day. 
  
 “Interest Period” means, with respect to any Interest Payment Date, the period from and including the previous Interest Payment Date (or
in the case of the initial Interest Payment Date, from and including the Issuance Date) to but excluding such Interest Payment Date. 
  
 “Issuance Date” means May 23, 2005. 
  
 “Legal Maturity Date” means October 17, 2011. 
  
 “LIBOR” means, for any Interest Period, the London interbank offered rate for one-month United States dollar deposits determined by the
Trustee on the LIBOR Determination Date for each Interest Period in accordance with the provisions of Section 2.04. 
  
 “LIBOR Determination Date” means (1) May 19, 2005 for the period from and including the Issuance Date through but excluding June 15, 2005
and (2) for each interest period thereafter, the second London Business Day prior to the commencement of the second and each subsequent Interest Period. 
  
 “London Business Day” means any Business Day on which dealings in deposits in United States Dollars are transacted in the London
interbank market. 
  
 “Note Interest Rate” means
a rate per annum equal to 0.02% in excess of LIBOR as determined by the Calculation Agent on the related LIBOR Determination Date with respect to each Interest Period. 
  
 “Paying Agent” means Wells Fargo Bank, National Association. 
  
 “Predecessor Note” means, with respect to any particular
Note, every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 3.06 of the Indenture in lieu of a
mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note. 
  

 3 

 “Record Date” means, for any Note Transfer Date, the last Business Day of the preceding
Monthly Period. 
  
 “Reference Banks” means four
major banks in the London interbank market selected by the Beneficiary. 
  
 “Scheduled Principal Payment Date” means February 17, 2009. 
  
 “Stated Principal Amount” means $650,000,000. 
  
 “Telerate Page 3750” means the display page currently so designated on the Bridge Telerate Market Report (or such other page as may replace that page on that service for the purpose of displaying
comparable rates or prices). 
  
 Section 1.02 Governing
Law. THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  
 Section 1.03
Counterparts. This Terms Document may be executed in any number of counterparts, each of which so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 
  
 Section 1.04 Ratification of Indenture and Indenture Supplement. As
supplemented by this Terms Document, each of the Indenture, the Asset Pool Supplement and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as so supplemented by the Asset Pool Supplement and the Indenture
Supplement as so supplemented by this Terms Document shall be read, taken and construed as one and the same instrument. 
  
 [END OF ARTICLE I] 
  

 4 

 ARTICLE II 
  
 The Class A(2005-3) Notes 
  
 Section 2.01 Creation and Designation. There is hereby created a Tranche of CHASEseries Class A Notes to be issued pursuant to the Indenture and
the Indenture Supplement to be known as the “CHASEseries Class A(2005-3) Notes.” 
  
 Section 2.02 Specification of Required Subordinated Amount and Other Terms. 
  
 (a) For the Class A(2005-3) Notes for any date of determination, the Class A Required Subordinated Amount of Class B Notes will be an amount equal to
8.47953% of (i) prior to the occurrence of a Class A(2005-3) Adverse Event, the Adjusted Outstanding Dollar Principal Amount of the Class A(2005-3) Notes on such date of determination or (ii) on and after the date on which a Class A(2005-3) Adverse
Event shall have occurred, the greater of (1) the Adjusted Outstanding Dollar Principal Amount of the Class A(2005-3) Notes on such date of determination and (2) the Adjusted Outstanding Dollar Principal Amount of the Class A(2005-3) Notes as of the
close of business on the day immediately preceding the date on which such Class A(2005-3) Adverse Event shall have occurred. 
  
 (b) For the Class A(2005-3) Notes for any date of determination, the Class A Required Subordinated Amount of Class C Notes will be an amount equal to
8.47953% of (i) prior to the occurrence of a Class A(2005-3) Adverse Event, the Adjusted Outstanding Dollar Principal Amount of the Class A(2005-3) Notes on such date or (ii) on and after the date on which a Class A(2005-3) Adverse Event shall have
occurred, the greater of (1) the Adjusted Outstanding Dollar Principal Amount of the Class A(2005-3) Notes on such date of determination and (2) Adjusted Outstanding Dollar Principal Amount of the Class A(2005-3) Notes as of the close of business on
the day immediately preceding the date on which such Class A(2005-3) Adverse Event shall have occurred. 
  
 (c) The Issuer may change the percentages or the formulas set forth in either clause (a) or (b) above without the consent of any Noteholder so long as
the Issuer has (i) received written confirmation from each Note Rating Agency that has rated any Outstanding Class A(2005-3) Notes that the change in either of such percentages or formulas, as applicable, will not result in a Ratings Effect with
respect to any Outstanding Class A(2005-3) Notes and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion and an Issuer Tax Opinion. 
  
 Section 2.03 Interest Payment. 
  
 (a) For each Interest Payment Date, the amount of interest due with respect to the Class A(2005-3) Notes shall be an amount
equal to the product of (i)(A) a fraction, the numerator of which is the actual number of days in the related 
  

 5 

 Interest Period and the denominator of which is 360, times (B) the Note Interest Rate in effect with respect to
the related Interest Period, times, (ii) the Outstanding Dollar Principal Amount of the Class A(2005-3) Notes determined as of the close of business on the Interest Payment Date preceding the related Note Transfer Date for the Class A(2005-3)
Notes; provided, however, that for the first Interest Payment Date, the amount of interest due with respect to the Class A(2005-3) Notes shall be an amount equal to the product of (x) the Outstanding Dollar Principal Amount of the
Class A(2005-3) Notes on the Issuance Date, (y) 23 divided by 360 and (z) the Note Interest Rate in effect with respect to the Class A(2005-3) Notes determined on May 19, 2005. Interest on the Class A(2005-3) Notes will be calculated on the basis of
the actual number of days elapsed and a 360-day year. 
  
 (b)
Pursuant to Section 3.03 of the Indenture Supplement, on each Note Transfer Date with respect to the Class A(2005-3) Notes, the Indenture Trustee shall deposit into the Class A(2005-3) Interest Funding Sub-Account the portion of CHASEseries
Available Finance Charge Collections allocable to the Class A(2005-3) Notes. 
  
 Section 2.04 Calculation Agent; Determination of LIBOR. 
  
 (a) The Issuer hereby agrees that for so long as any Class A(2005-3) Notes are Outstanding, there shall at all times be an agent appointed to calculate
LIBOR for each Interest Period (the “Calculation Agent”). The Issuer hereby initially appoints the Indenture Trustee as the Calculation Agent for purposes of determining LIBOR for each Interest Period. The Calculation Agent may be removed
by the Issuer at any time. If the Calculation Agent is unable or unwilling to act as such or is removed by the Issuer, or if the Calculation Agent fails to determine LIBOR for an Interest Period, the Issuer shall promptly appoint a replacement
Calculation Agent that does not control or is not controlled by or under common control with the Issuer or its Affiliates. The Calculation Agent may not resign its duties, and the Issuer may not remove the Calculation Agent, without a successor
having been duly appointed. 
  
 (b) On each LIBOR Determination
Date, the Calculation Agent shall determine LIBOR on the basis of the rate for deposits in United States dollars for a one-month period which appears on Telerate Page 3750 or on such comparable system as is customarily used to quote LIBOR as of
11:00 a.m., London time, on such date. If such rate does not appear on Telerate Page 3750 or on a comparable system as is customarily used to quote LIBOR the rate for that LIBOR Determination Date shall be determined on the basis of the rates at
which deposits in United States dollars are offered by the Reference Banks at approximately 11:00 a.m., London time, on that day to prime banks in the London interbank market for a one-month period. The Calculation Agent shall request the principal
London office of each of the Reference Banks to provide a quotation of its rate. If at least two such quotations are provided, the rate for that LIBOR Determination Date shall be the arithmetic mean of the quotations. If fewer than two quotations
are provided as requested, the rate for that LIBOR Determination Date will be the arithmetic mean of the rates quoted by major banks in New York City, selected by the Beneficiary, at approximately 11:00 a.m., New York City time, on that day for
loans in United States dollars to leading European banks for a one-month period. 
  

 6 

 (c) The Note Interest Rate applicable to the then current and the immediately preceding Interest Periods
may be obtained by telephoning the Indenture Trustee at its corporate trust office at (612) 667-8058 or such other telephone number as shall be designated by the Indenture Trustee for such purpose by prior written notice by the Indenture Trustee to
each Noteholder from time to time. 
  
 (d) On each LIBOR
Determination Date, the Calculation Agent shall send to the Indenture Trustee and the Beneficiary, by facsimile transmission, notification of LIBOR for the following Interest Period. 
  
 Section 2.05 Payments of Interest and Principal. 
  
 (a) Any installment of interest or principal payable on any Class A(2005-3) Note which is punctually paid or duly provided
for by the Issuer and the Indenture Trustee on the applicable Interest Payment Date or Principal Payment Date shall be paid by the Paying Agent to the Person in whose name such Class A(2005-3) Note (or one or more Predecessor Notes) is registered on
the Record Date, by wire transfer of immediately available funds to such Person’s account as has been designated by written instructions received by the Paying Agent from such Person not later than the close of business on the third Business
Day preceding the date of payment or, if no such account has been so designated, by check mailed first-class, postage prepaid to such Person’s address as it appears on the Note Register on such Record Date, except that with respect to Notes
registered on the Record Date in the name of the nominee of Cede & Co., payment shall be made by wire transfer in immediately available funds to the account designated by such nominee. 
  
 (b) The right of the Class A(2005-3) Noteholders to receive payments from
the Issuer will terminate on the first Business Day following the Class A(2005-3) Termination Date. 
  
 Section 2.06 Form of Delivery of Class A(2005-3) Notes; Depository; Denominations. 
  
 (a) The Class A(2005-3) Notes shall be delivered in the form of a global Registered Note as provided in Sections 2.02 and
3.01(i) of the Indenture, respectively. 
  
 (b) The Depository
for the Class A(2005-3) Notes shall be The Depository Trust Company, and the Class A(2005-3) Notes shall initially be registered in the name of Cede & Co., its nominee. 
  
 (c) The Class A(2005-3) Notes will be issued in minimum denominations of $1,000 and integral multiples of that amount.

  

 7 

 Section 2.07 Delivery and Payment for the Class A(2005-3) Notes. The Issuer shall execute and
deliver the Class A(2005-3) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2005-3) Notes when authenticated, each in accordance with Section 3.03 of the Indenture. 
  
 Section 2.08 Supplemental Indenture. The Issuer may enter into a
supplemental indenture with respect to the Class A(2005-3) Notes as provided in Section 9.01 of the Indenture; provided, however, that any supplemental indenture which provides for an additional or alternative form of credit
enhancement for the Class A(2005-3) Notes shall, in addition to the requirements set forth in Section 9.01 of the Indenture, require confirmation from the Note Rating Agencies that have rated any Outstanding Notes of the CHASEseries that such change
in credit enhancement will not result in a Ratings Effect with respect to any Outstanding Notes of the CHASEseries. 
  
 Section 2.09 Appointment of co-Paying Agent and co-Transfer Agent. BDL is appointed as co-paying agent and as co-transfer agent in Luxembourg with
respect to the Class A(2005-3) Notes for so long as the Class A(2005-3) Notes are listed on the Luxembourg Stock Exchange. Any reference in this Terms Document, the Indenture Supplement, the Asset Pool Supplement and the Indenture to the Paying
Agent or the Transfer Agent shall be deemed to include BDL as co-paying agent or co-transfer agent, as the case may be, unless the context requires otherwise. 
  

[END OF ARTICLE II] 
  

 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed, all as of the
day and year first above written. 
  

			
	CHASE ISSUANCE TRUST
		
	By:	 	CHASE BANK USA, NATIONAL ASSOCIATION,
	 	 	as Beneficiary and not in its individual capacity
		
	By:	 	 /s/ Keith W. Schuck

	Name:	 	Keith W. Schuck
	Title:	 	President
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture Trustee and Collateral Agent
		
	By:	 	 /s/ Cheryl C. Zimmerman

	Name:	 	Cheryl C. Zimmerman, CCTS
	Title:	 	Assistant Vice President

  
 CHAIT A(2005-3)
Terms Document 
 Signature PageVariable Incentive Pay Plan

 Exhibit 10.41 
  
 Synplicity Confidential 
  

 Synplicity Variable Incentive Pay Plan 
  
 Adopted February 17, 2005, Amended April 18, 2005 & May 18, 2005

  
 Plan Summary 
  
 The Synplicity Variable Incentive Pay Plan (“VIPP”) ties a portion of total
employee compensation to the performance of Synplicity (the “Company”), aligning employees to a common set of objectives and creating a “performance culture” throughout the Company. The VIPP becomes effective April 1, 2005.
Initially the plan participants will be U.S. non-commissioned employees. Other plan participants may be added to the VIPP by the Board of Directors (“Board”) by resolution. 
  
 VIPP payments will be earned and paid quarterly based on achievement of a quarterly revenue target, quarterly operating income target and
one or more additional Company objectives. VIPP quarterly revenue and quarterly operating income targets for the entire fiscal year will be determined by the Company’s Board at the beginning of each fiscal year, and the other Company objectives
will be determined quarterly. The Board will determine whether the various targets are achieved and calculate the resulting quarterly payouts, with input from the Chief Executive Officer (CEO). At inception of the VIPP, participating employees with
the exception of the CEO, will receive a one-quarter minimum guarantee of 100% payment. 
  
 Variable pay percentages correspond to individual job categories and are consistent with industry levels as determined by compensation survey information. The initial variable pay percentages are less than target market levels, but the
percentages will increase annually over a three-year period to a final variable pay percentage by job category that is market level, as determined by compensation survey information. 
  
 Plan Details 
  

	1.	The purpose of the plan is to create a closer risk/reward relationship between compensation and performance that promotes a “performance culture.”

  

	2.	Plan Participant Eligibility 

  

	 	a.	All non-commissioned, U.S. full-time and U.S. part-time exempt employees are included in the VIPP. 

  

	 	i.	Any non-commissioned U.S employees who are not either full-time employees or part-time exempt employees are excluded from the plan. 

  

	 	ii.	New hires will participate from date of employment and are eligible to receive a pro rata share of the plan payout amount in their first quarter of employment.

  

	 	iii.	A plan participant must be an active U.S. employee on the last day of a calendar quarter in order to be eligible for a potential VIPP payout for that quarter, because payments are
considered earned on the last day of each quarter. 

  

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 Synplicity Confidential 
  

	 	iv.	Plan participants for whom employment with the Company is terminated non-voluntarily shall be an exception to (iii) above and are eligible to receive plan payout for the quarter of
their termination, pro rata based on their length of employment during the quarter. 

  

	 	v.	Employees on leaves of absence shall be an exception to (iii) above and are eligible for VIPP participation for any portion of leave that is paid by the Company. For unpaid leaves
of any kind, the VIPP will be suspended, and employees will earn a pro rata share of the incentive for the Company paid portion during the quarters they are starting or returning from unpaid leave. 

  

	3.	Plan Participant Variable Compensation Target Amount and Percentages by Job Category 

  

	 	a.	The target percentage of an employee’s compensation that is variable under the VIPP (assuming a 100% payout percentage) is based the employees’ job category and the fiscal
year of the program, as follows, with the changes effective on April 1 of each new calendar year of the program: 

  

							
	 Job Category

	  	2005 Variable %

	 	2006 Variable %

	 	2007 and Future
Year Variable %

	 CEO
	  	[***]%	 	TBD	 	TBD
	 Sr. VP/VP
	  	[***]%	 	[***]%	 	[***]%
	 Director/Sr. Staff Eng.
	  	[***]%	 	[***]%	 	[***]%
	 Manager/Staff Eng.
	  	[***]%	 	[***]%	 	[***]%
	 Individual Contributor
	  	[***]%	 	[***]%	 	[***]%

  

	 	b.	The non-variable and variable amounts of an employee’s compensation are recalculated and prorated immediately upon any changes in compensation and/or job category, as
applicable. 

  

	 	c.	For example, if an employee who is a manager and has cash compensation of $100,000 receives a 3% annual increase, his compensation going forward will be established as a $[***] base
compensation ($100,000 * [***] * [***]%), and a $[***] variable compensation ($100,000 * [***] * [***]%). The new base 

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

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 Synplicity Confidential 
  

	 	 
amount will be paid in semi-monthly payments of $[***] ($[***] / 24), and the variable amount will be determined in accordance with the payout formula and
other terms of the VIPP. Note that the actual amount of the variable compensation paid to this employee per quarter may be more or less than $[***] ($[***] / 4), which is the amount calculated assuming 100% as the payout percentage. Additionally, if
the compensation increase was effective in the middle of the quarter, the amounts would be prorated accordingly. 

  

	 	d.	Notwithstanding anything to the contrary in this plan, in the event of a merger, acquisition or other transaction in which the shareholders of the Company prior to the transaction
hold less than 50% of the surviving entity immediately after the transaction, for purposes of any other Synplicity, Inc. benefit plan or company agreement (as it applies to participants in the VIPP), “annual base salary” shall be deemed to
equal an amount that equals current base compensation and variable compensation as determined under the terms of the VIPP calculated using 100% as the payout percentage for the year. 

  

	4.	Plan Payout Formula 

  

	 	a.	The “Plan Payout Formula” that determines the payout percentage is as follows: 

  
 Plan Payout % = Revenue Achievement x 40% + Operating Income Achievement x 40% + Company Objective Achievement x 20%

  
 This formula “weights” revenue and operating
income achievement equally at 40% each (or a total of 80%) when calculating the payout, and “weights” the other company objectives at 20% when calculating the payout. 
  

	 	b.	For every calendar quarter in which the VIPP is effective (“VIPP Quarter”), the Company’s Board of Directors will generally determine the Plan Payout% for that
quarter within one month after the quarter ends. The determination by the Company’s Board of Directors is final and binding. 

  

	 	c.	If the computed Plan Payout% as determined in sections 4, 5, 6, and 7 herein exceeds 100%, in no case will the actual quarterly payment above 100% of VIPP payout exceed 50% of
operating profit in excess of the QOIT (defined below). 

  

	5.	Process for Plan Communication, Payout Determination, and Payment 

  

	 	a.	For every calendar quarter in which the VIPP is effective (“VIPP Quarter”), Company management will communicate the current quarterly revenue target, quarterly operating
income target, and other VIPP Company objectives to plan participants at the regular quarterly employee meeting. Additionally, Company management will communicate the total of the four QRTs and the total of the four QOITs for the year at the first
regular quarterly employee meeting of the year. 

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

 3 of 8 

 Synplicity Confidential 
  

	 	b.	The Company’s Board of Directors will determine the Plan Payout % for each quarter within one month after that quarter ends. The determination by the Company’s Board of
Directors is final and binding. 

  

	 	c.	Company management will communicate the Plan Payout % for the preceding VIPP Quarter to plan participants at the regular quarterly employee meeting following the VIPP Quarter.

  

	 	d.	Payments to employees under the VIPP are anticipated to be made by the 15th of the second month following the applicable VIPP Quarter, except that the Company’s Board of
Directors can ask management to reasonably delay payment, at its sole discretion, if it determines that more time is required to make an accurate determination of the Plan Payout %. 

  

	6.	The Revenue Achievement and Operating Income Achievement used in the Plan Payout Formula 

  

	 	a.	Overview 

  

	 	i.	Each year, generally in January, the Company’s Board of Directors will determine VIPP quarterly revenue targets (“QRT”) and quarterly operating income targets
(“QOIT”) for the current fiscal year after consultation with management. QRTs and QOITs are determined specifically for the VIPP, and are not necessarily the same as other internal goals or external financial “guidance” given to
the public in the Company’s financial conference calls. 

  

	 	ii.	The Revenue Achievement and Operating Income Achievement in the Plan Payout Formula are calculated based on how well the Company met its VIPP quarterly targets. A high Revenue
Achievement or Operating Income Achievement (100% or more) indicates the Company met or exceeded its quarterly targets (QRT, or QOIT, respectively). A low Revenue Achievement or Operating Income Achievement (less than 100%) indicates the Company
fell short of its quarterly targets (QRT, or QOIT, respectively). The actual revenue and operating income numbers for the quarter that are used in the formulas to determine Revenue Achievement and Operating Income Achievement are taken from the
Company’s financial statements, with actual operating income on a proforma basis. 

  

	 	iii.	The QRTs and QOITs will generally not change throughout the year once they are set by the Board, but the Board does reserve the right to make changes to the QRTs and QOITs, if, in
its sole discretion, market changes warrant changes to the targets, provided that the changes are made for future quarters, and not for the current quarter. 

  

	 	b.	Process for Determining Revenue Achievement and Operating Income Achievement 

  

	 	i.	 Company management calculates the Revenue Achievement and Operating Income Achievement for a VIPP Quarter and submits them to the Board for review. The Board
reviews management’s calculations 

  

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and determines the Revenue Achievement and Operating Income Achievement to be used in the Plan Payout Formula, such determinations being final and binding.

  

	 	c.	Calculation of Revenue Achievement for a VIPP Quarter 

  

	 	i.	Revenue Achievement ranges from 0% to 200% and is determined on a straight line basis, with QRT achievement resulting in 100% Revenue Achievement, [***]% or less of QRT achievement
resulting in zero Revenue Achievement and [***]% or more of QRT achievement resulting in 200% Revenue Achievement 

  

	 	ii.	If the actual revenue achieved during the prior VIPP Quarter falls between [***]% and [***]% of the QRT, the formula for determining Revenue Achievement is as follows:

  
 ([***] x actual revenue for quarter (in
dollars) / QRT (in dollars)) – 9 
  

	 	iii.	Example Revenue Achievement calculations: 

  

	 	1.	Assume the QRT for a quarter is $15.0M and the actual revenue achieved for that quarter is $15.2M. The Revenue Achievement equals: 

  
 ([***] x 15.2M / $15.0M) – 9 = [***] or [***]%.

  

	 	2.	Assume the QRT for a quarter is $15.0M and the actual revenue achieved for that quarter is $13.8M. The Revenue Achievement equals: 

  
 ([***] x 13.8M / $15.0M) – 9 = [***] or [***]%.

  

	 	d.	Operating Income Achievement for a VIPP Quarter 

  

	 	i.	As the amount of the VIPP payout affects the financial results of the Company, throughout the calculation of Operating Income Achievement, “actual operating income” refers
to operating income achieved after the total cost of the VIPP payout is considered. 

  

	 	ii.	Operating Income Achievement ranges from 0% to 200% and is determined on a straight line basis, with QOIT achievement resulting in 100% Operating Income Achievement.

  

	 	iii.	Operating Income Achievement during the prior VIPP Quarter will be determined based on the following formula, with a maximum value of 2.00 (200%) and a minimum value of 0 (0%):

  
 1 + [ (actual operating
income-QOIT) / (QRT * [***]) ] 
  

	 	iv.	Example Operating Income Achievement calculations (excludes the effect of computing Operating Income Achievement after consideration of payout of 

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

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 the VIPP at other than 100%): 
  

	 	1.	Assume the QOIT is $1.0M and the QRT is $15M for a quarter, and assume the actual operating income achieved for that quarter is $1.2M. The Operating Income Achievement equals:

  
 1 + [ (1.2-1.0) / (15 *
[***])]= [***] or [***]%. 
  

	 	2.	Assume the QOIT is $1.0M and the QRT is $15M for a quarter, and assume the actual operating income achieved for that quarter is $0.75M. The Operating Income Achievement equals:

  
 1 + [ (0.75-1.0) / (15 * [***]
]= [***] or [***]%. 
  

	7.	The Company Objective Achievement used in the Plan Payout Formula 

  

	 	a.	Overview 

  

	 	i.	The Company Objective Achievement is a metric that measures whether the Company achieves important Company performance objectives that have been established specifically for the
VIPP. 

  

	 	ii.	Each VIPP Quarter the Company’s Board of Directors, in consultation with the CEO, will determine VIPP Company Objectives (“VCOs”) for that VIPP Quarter. The VCOs may
include long term or short term objectives, and some long term VCOs may be determined at the beginning of the year, and not change throughout the year. 

  

	 	iii.	The VIPP Company Objectives (VCOs) for the current VIPP Quarter will generally be communicated to VIPP participants at the regular quarterly employee meeting, along with the
determination of the Company Objective Achievement for the previous quarter. VCOs that are long term in nature will generally be communicated to participants at the first regular quarterly employee meeting of the year. 

  

	 	iv.	It is anticipated that there will generally be 2-4 VCOs each VIPP year, but there may be a fewer, or greater, number. 

  

	 	v.	The VIPP Company Objectives (VCOs) may include, but are not limited to the following areas: 

  
 [***] 
  

	 	b.	Process for Determining the Company Objective Achievement 

  

	 	i.	After the end of each quarter, the CEO will provide his recommendation to the Board as to whether the Company achieved, exceeded, or did not achieve the prior VIPP Quarter’s
VCOs. The CEO will provide whatever information he feels necessary to support his recommendation to the Board. The Board of Directors, in its sole discretion, will make the determination as to the achievement of the VCOs for that prior VIPP Quarter,
and will determine the resulting Company Objective Achievement to be used in the Plan Payout Formula, such determination being final and binding. 

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

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	 	c.	Calculation of Company Objective Achievement 

  

			
	 Board of Director’s determination

	 	 Company Objective
 Achievement calculation

	All VCOs were achieved	 	[***]%
	All VCOs were exceeded	 	[***]%
	No VCOs were achieved	 	[***]%
	Combination of the above, if there is more than one VCO for the quarter (some combination of achieving, exceeding, not achieving)	 	 Between [***] – [***]%, at the
 discretion of the Board

  

	8.	Conflict Resolution 

  

	 	a.	The Board of Directors solely determines the Plan Payout % for a VIPP Quarter, as well as the QRTs, QOITs, VCOs, and the Revenue Achievement, Operating Income Achievement, and
Company Objective Achievement, and such decisions are final and binding. 

  

	 	b.	Any other conflicts or disputes arising from participation in the program must first be brought to the attention of the Human Resources Director, who will attempt to resolve the
issue. Should the employee not attain resolution, the Chief Financial Officer will review the issue and make a determination. If such other conflict or dispute is not resolved by either the Human Resource Director or the Chief Financial Officer, the
Company’s Chief Executive Officer will review the dispute and make a final determination. 

  

	 	c.	Any dispute or controversy arising out of, relating to, or in connection with the VIPP, or the interpretation, validity, construction, performance, breach, or termination thereof,
shall be finally settled by binding arbitration to be held in Santa Clara County, California under the Employment Dispute Resolution Rules of the American Arbitration Association as then in effect (the “Rules”). The arbitrator may grant
injunctions or other relief in such dispute or controversy. The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration, and judgment may be entered on the decision of the arbitrator in any court having
jurisdiction. The arbitrator shall apply California law to the merits of any dispute or claim, without reference to rules of conflicts of law, and the arbitration proceedings shall be governed by federal arbitration law and by the Rules, without
reference to state arbitration law. The Company shall pay the costs and expenses of such arbitration, and each party shall pay its own counsel fees and expenses. 

	[***]	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

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	9.	Changes to the Plan 

  

	 	a.	The Company reserves the right to make changes to the plan at any time. All changes or amendments to the plan are subject to the approval of the Board of Directors.

  
 At Will Employment 
  
 Employment at the Company is at will. Nothing in this plan modifies the at
will nature of employment at the Company, and the fact that any incentive payments are earned does not guarantee continued employment at the Company. 
  

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