Document:

Exhibit1053

Exhibit 10.53

[DATE]

[NAME]
[ADDRESS]
[ADDRESS]
Re:    Retention Bonus and Equity Award Amendments
Dear [NAME]:   
As you know, on September 24, 2013, Applied Materials, Inc. (“Applied” or the “Company”) announced a strategic combination with Tokyo Electron Limited (the “Transaction”).  This Transaction is a large and highly complex undertaking that may take a lengthy period of time to complete.  Your continued contributions as a part of Applied’s deep and talented leadership team are critical to the Company in order to ensure the successful closing of the Transaction and post-closing planning and integration, while simultaneously leading the continued effective operations of Applied’s business.  Applied desires to recognize your continuing dedication to Applied and provide further incentive for you to remain with Applied through and beyond the Transaction with this agreement (the “Agreement”).  We are pleased to offer to you the changes to your equity awards and the retention bonus that are described below.  In order to accept these changes to your equity awards and the opportunity to earn the retention bonus, please sign and return this Agreement by the deadline indicated below. 
1.Performance‐based Equity Awards.  Regardless of whether the Transaction is completed, all of your outstanding “performance‐based” equity awards covering shares of Applied’s common stock (“Shares”) that were granted before September 24, 2013 (that is, the awards are subject to performance goals and are referred to as “Performance Awards”), are amended in the following manner.  The performance goals automatically will be considered achieved at 100% of target levels so that the target number of Shares under the Performance Awards will become eligible to vest (for details regarding any Total Shareholder Return goal, see below).  We refer to this as the “Target Amendment.”  This Target Amendment will become effective as of the date three trading days before the Transaction is expected to close (the “Expected Closing”).  Alternatively, if the Transaction is terminated without being completed, this Target Amendment still will take effect, on the date that the Transaction is terminated.  (The date that the Target Amendment takes effect is the “Target Amendment Date.”)  Please note that for the Target Amendment to be effective, your Performance Awards will need to be outstanding on the Target Amendment Date and you will need to remain an employee through the Target Amendment Date.  
After the target number of Shares becomes eligible to vest, your amended Performance Awards will vest solely based on your continued employment.  This means that if you continue your employment through each applicable vesting date, the Shares under the amended Performance Awards will vest.  Your amended Performance Awards will remain subject to all of the other terms and conditions in the Performance Award agreement and the plan under which the Performance Award was granted.  

[NAME]
[DATE]
Page 2

If a Performance Award is subject to a “Total Shareholder Return” (“TSR”) goal and the TSR has been measured (according to the schedule in the applicable Performance Award agreement) (the “TSR Measurement”) on or before the Target Amendment Date, then any additional Shares that became eligible to be earned based on TSR achievement also will become eligible to vest under the Target Amendment, by assuming that the other performance goals are achieved at 100% of target levels.  However, if the TSR Measurement is scheduled to occur after the Target Amendment Date, then the TSR goal will be eliminated and any additional Shares that otherwise could have been earned in the future through TSR achievement will be forfeited. 
For purposes of this Agreement, (1) a “trading day” refers to any day on which Applied’s common stock is traded on the NASDAQ Global Select Market, and (2) the Expected Closing date will be determined solely in the discretion of the Chair of the Human Resources and Compensation Committee of Applied’s Board of Directors (the “Chair”).  
2.Time-based Equity Awards.  If the Transaction is completed, all of your outstanding and unvested, “time-based” equity awards covering Shares that were granted prior to September 24, 2013 (the “Time Awards”), also will be amended to provide that the unvested Shares subject to the Time Awards that are scheduled to vest during calendar year 2014 will accelerate vesting as of the date three trading days prior to the Expected Closing.  “Time-based” means that the equity award vests solely based on your continued employment.  The Time Awards also include your amended Performance Awards (as described in Section 1 above).  We refer to this change to the Time Awards as the “Acceleration Amendment” and the date that it takes effect as the “Acceleration Amendment Date.”  In order for the Acceleration Amendment to apply, your Time Awards will need to be outstanding as of the Acceleration Amendment Date and be expected to be taxed by Section 4985 of the Internal Revenue Code of 1986, as amended (the “Code”).  The Code Section 4985 tax will apply to your Time Awards if, under Code Section 4985, you are expected to be a “disqualified individual” of Applied when the Transaction closes. 
As noted above, the Acceleration Amendment will apply to your amended Performance Awards (including with respect to the TSR Measurement) if they meet the requirements in the paragraph immediately above.  If the TSR Measurement is scheduled to occur after the Acceleration Amendment Date, then the TSR goal will not be considered achieved for purposes of the Acceleration Amendment so that no accelerated vesting will occur with respect to any additional Shares under the TSR goal.  (As described in Section 1 above, any additional Shares under a Performance Award for which the TSR Measurement is scheduled to occur after the Target Amendment Date automatically will be forfeited.)  
Please note that the Acceleration Amendment will not occur if for any reason the Transaction is terminated without being completed.  Whether you are expected to be a disqualified individual for purposes of the first paragraph in this Section 2 will be determined by the Chair, in its sole discretion.  Your amended Time Awards will remain subject to all of the other terms and conditions in the Time Award agreement and the plan under which the Time Award was granted.

[NAME]
[DATE]
Page 3

3.Retention Bonus.  Regardless of whether the Transaction is completed, you are eligible to receive a lump sum cash retention bonus (the “Retention Bonus”).  Upon remaining continuously employed with Applied through the earlier of March 31, 2015, or the date that is six months after the closing of the Transaction (the earlier of the dates is referred to as the “Bonus Date”), you will receive the Retention Bonus, equal to [____%] of your annual base salary as in effect on the Bonus Date (less applicable taxes and other required withholdings) within thirty (30) days after the Bonus Date.  
4.Assignment.  Upon or at any time after the Closing, you may become an employee of Applied’s parent entity or any of its subsidiaries.  For purposes of this Agreement, references to your continued employment with Applied will mean employment with Applied, any parent entity of Applied, or any direct or indirect subsidiary of Applied or its parent entity.  Applied may assign this Agreement and its rights and obligations to Applied’s parent entity or any other entity within the controlled group that includes Applied and its parent. 
5.Section 409A.  The payments and benefits under this Agreement are intended to be exempt from or otherwise comply with the requirements of Section 409A (as defined below) so that none of the payments or benefits to be provided under this Agreement will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms in this Agreement will be interpreted to be so exempt or otherwise comply with Section 409A.  Each payment and benefit under this Agreement is deemed to be a separate payment for Section 409A purposes.  You and Applied agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions that are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to you under Section 409A.  For purposes of this Agreement, “Section 409A” means Section 409A of the Code, any final regulations and guidance under that statute, and any applicable state law equivalent, as each may be amended or promulgated from time to time.  
6.Tax Consequences.  Applied makes no representations or warranties with respect to the tax consequences of any payments or benefits provided under this Agreement.  You agree and understand that you are responsible for payment, if any, of local, state, and/or federal taxes on the payments and benefits provided under this Agreement and any penalties or assessments related to such taxes (including but not limited to under Section 409A, Code Section 4985, and Code Section 457A). 
7.Severability.  If any provision of this Agreement is held to be void, voidable, unlawful or unenforceable, the remaining portions of this Agreement will remain in full force and effect.
8.Arbitration of Disputes Relating to Agreement.  Any dispute, controversy or claim arising under or in connection with this Agreement, or the breach of this Agreement, will be settled exclusively by arbitration in accordance with the Employment Arbitration Rules of the American Arbitration Association (“AAA”) now in effect, which are available online at http://www.adr.org/employment.  Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction of the matter.  The arbitration 

[NAME]
[DATE]
Page 4

will take place in Santa Clara County, California, unless otherwise required by law or ordered by the AAA.  The Arbitrator will have full authority to award interim injunctive relief in addition to any and all other appropriate remedies otherwise available to the Arbitrator. 
9.Governing Law.  Unless otherwise governed by federal law, this Agreement will be governed by and construed in accordance with the laws of the State of California (except for its conflict of laws provisions).
10.Complete Agreement; Modifications.  This Agreement contains the entire agreement of the parties with respect to this subject matter, and supersedes all prior and contemporaneous written and oral agreements, discussions, negotiations, understandings or courses of conduct with respect to this subject matter.  This Agreement may not be modified or changed in any manner except by a writing executed by you and a duly authorized executive officer of Applied.  No party is relying upon any other agreement, representation, statement, omission, understanding or course of conduct which is not expressly set forth in this Agreement.  Headings used in this Agreement are for convenience only and will not be used to interpret its substantive terms.
To accept this Agreement, please date and sign this letter below where indicated and return it to Greg Lawler.  If you do not accept this Agreement by October 18, 2013, this Agreement will not become effective and the changes to your equity awards under Sections 1 and 2 will not become effective and you will not be eligible to earn the Retention Bonus under Section 3.
We greatly appreciate your many contributions to Applied and look forward to your continued efforts towards the effective operations of Applied’s business, successful closing of the Transaction and post-closing planning and integration.
Sincerely,

[AUTHORIZED OFFICER]
Applied Materials, Inc.  

By signing this letter, I acknowledge that I have had the opportunity to review this Agreement carefully with an attorney of my choice; that I have read this Agreement and understand its terms; that I enter into this Agreement knowingly and voluntarily; and that I agree to and accept all of the terms set forth in this Agreement.
Agreed and Accepted:

	
			
	Date:  __________________, 2013
	 
	[NAME]

	 
	 
	 

	 
	 
	 

Schedule of Retention Bonus and Equity Award Amendment Agreements
	
			
	Name
	Date of Agreement
	Retention Bonus

	Gary E. Dickerson
	October 9, 2013
	N/A

	Randhir Thakur
	October 18, 2013
	352.5%

	Robert J. Halliday
	October 17, 2013
	352.5%

	Mary Humiston
	October 15, 2013
	322.5%

	Thomas F. Larkins
	October 11, 2013
	315.0%

	Ali Salehpour
	October 17, 2013
	315.0%

	Omkaram Nalamasu
	October 8, 2013
	300.0%

	Jay Kerley
	October 10, 2013
	270.0%MENT-2013.10.31.Exhibit 4.1

SECOND AMENDMENT TO CREDIT AGREEMENT

THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Agreement”) dated as of September 30, 2013 (the “Second Amendment Effective Date”) is entered into among Mentor Graphics Corporation, an Oregon corporation (the “Company”), the Banks party hereto and Bank of America, N.A., as administrative agent (the “Agent”) for the Banks.  All capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (as defined below).

RECITALS

WHEREAS, the Company, the Banks and the Agent have entered into that certain Credit Agreement dated as of April 26, 2011 (as amended by that certain First Amendment to Credit Agreement dated as of May 24, 2013 and as further amended or modified from time to time, the “Credit Agreement”);

WHEREAS, the Company has requested that the Banks amend the Credit Agreement as set forth below;

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.    Amendments.  

(a)    The definition of “Consolidated Current Liabilities” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“Consolidated Current Liabilities” means, at any time of determination, all amounts which would, in accordance with GAAP, be included under current liabilities on a consolidated balance sheet of the Company and its Subsidiaries, but in any event including all outstanding Loans, at such time; provided that, notwithstanding the foregoing, “Consolidated Current Liabilities” shall not include the Subordinated Convertible Debentures. 

(b)    The definition of “Offshore Rate” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“Offshore Rate” means:

(a)    for any Interest Period with respect to an Offshore Rate Loan, the rate per annum equal to the London Interbank Offered Rate (or if such rate is not available, a comparable or successor rate which is approved by the Agent) (“LIBOR”), as published on the applicable Reuters screen page (or such other commercially available source providing such quotations as may be designated by the Agent from time to time) at approximately 11:00 a.m. (London time), two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period; and

(b)    for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to LIBOR, at approximately 11:00 a.m., London time determined two Business Days prior to such date for U.S. Dollar deposits with a term of one month commencing that day;

provided that to the extent a comparable or successor rate is approved by the Agent in connection herewith, the approved rate shall be applied to the applicable Interest Period in a manner consistent with market practice; provided further that to the extent such market practice is not administratively feasible for the Agent, such approved rate shall be applied to the applicable Interest Period as otherwise reasonably determined by the Agent.

(c)    Section 1.01 of the Credit Agreement is hereby amended by adding the following new definitions in the appropriate alphabetical order:

“Subordinated Convertible Debentures” means the Company’s 4.00% Convertible Subordinated Debentures due 2031 issued pursuant to that certain Indenture dated April 4, 2011 between the Company, as issuer, and Wilmington Trust Company, as trustee.

(d)    Section 3.05 of the Credit Agreement is hereby amended and restated in its entirety as follows:

3.05    Inability to Determine Rates.  If in connection with any request for an Offshore Rate Loan or a conversion to or continuation thereof, (a) the Agent determines that (i) Dollar deposits are not being offered to banks in the applicable offshore interbank market for such currency for the applicable amount and Interest Period of such Offshore Rate Loan or (ii) adequate and reasonable means do not exist for determining the Offshore Rate for any requested Interest Period with respect to a proposed Offshore Rate Loan or in connection with an existing or proposed Base Rate Loan (in each case with respect to clause (a) above, “Impacted Loans”), or (b) the Majority Banks determine that for any reason the Offshore Rate for any requested Interest Period with respect to a proposed Offshore Rate Loan, does not adequately and fairly reflect the cost to such Banks of funding such Offshore Rate Loan, the Agent will promptly so notify the Company and each Bank.  Thereafter, (x) the obligation of the Banks to make or maintain Offshore Rate Loans shall be suspended (to the extent of the affected Offshore Rate Loans or Interest Periods) and (y) in the event of a determination described in the preceding sentence with respect to the Offshore Rate component of the Base Rate, the utilization of the Offshore Rate component in determining the Base Rate shall be suspended, in each case until the Agent (upon the instruction of the Majority Banks) revokes such notice.  Upon receipt of such notice, the Company may revoke any pending request for a Borrowing of, conversion to or continuation of Offshore Rate Loan, or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the amount specified therein.

Notwithstanding the foregoing, if the Agent has made the determination described in clause (a) of this Section 3.05, the Agent, in consultation with the Company and the affected Banks, may establish an alternative interest rate for the applicable Impacted Loans, in which case, such alternative interest rate shall apply with respect to such Impacted Loans until (1) the Agent revokes the notice delivered with respect to the applicable Impacted Loans under the first sentence of this Section 3.05, (2) the Agent notifies the Company that such alternative interest rate does not adequately and fairly reflect the cost to such Banks of funding the applicable Impacted Loans, or (3) any Bank determines that any Requirement of Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for such Bank or its applicable Lending Office to make, maintain or fund Loans whose interest is determined by reference to such alternative interest rate or to determine or charge interest rates based upon such rate or any Governmental Authority has imposed material restrictions on the ability of such Bank to do any of the foregoing and, in each case, such Bank provides the Agent and the Company written notice thereof.

2.    Condition Precedent.  This Agreement shall be effective upon the satisfaction of the following conditions precedent:

(a)    Counterparts of Second Amendment.  The Agent shall have received counterparts of this Agreement, which collectively shall have been duly executed on behalf of the Company, the Majority Banks and the Agent.

(b)    Fees.  Receipt by the Agent and the Banks of any fees required to be paid on or before the Second Amendment Effective Date.

(c)    Attorney Costs.  The Company shall have paid all reasonable fees, charges and disbursements of counsel to the Agent to the extent invoiced prior to the Second Amendment Effective Date.

3.    Miscellaneous.

(a)    Except as otherwise modified by this Agreement, the Credit Agreement and the obligations of the Company thereunder and under the other Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their terms.  This Agreement is a Loan Document.

(b)    The Company hereby represents and warrants as follows:

(i)    The Company has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement.

(ii)    This Agreement has been duly executed and delivered by the Company and constitutes the Company’s legal, valid and binding obligations, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by Debtor Relief Laws affecting the enforcement of creditors’ rights or general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

(iii)    No consent, approval, exemption, authorization or other action by, or notice to, or filing with, any Governmental Authority is necessary or required in connection with the execution, delivery or performance by the Company of this Agreement.

(iv)    The execution, delivery and performance by the Company of this Agreement do not and will not conflict with or result in any breach or contravention of, or the creation of any Lien under, any document evidencing any Contractual Obligation to which the Company is a party or any order, injunction, writ or decree of any Governmental Authority to which the Company or its property is subject, except where such conflict, breach, contravention or creation is not reasonably expected to have a Material Adverse Effect.

(c)    The Company represents and warrants to the Banks that after giving effect to this Agreement (i) the representations and warranties set forth in Article V of the Credit Agreement and in each other Loan Document are true and correct in all material respects as of the date hereof with the same effect as if made on and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date, in which case they are true and correct as of such earlier date; provided that, if a representation and warranty is generally qualified as to materiality, with respect to such representation and warranty the applicable materiality qualifier set forth above shall be disregarded for purposes of this Section 3(c) and (ii) no Default or Event of Default exists or shall result from entering into this Agreement.

(d)    This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart of this Agreement by telecopy or electronic mail shall be effective as an original and shall constitute a representation that an executed original shall be delivered.

(e)    THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION OF ANOTHER LAW; PROVIDED THAT THE AGENT AND THE BANKS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

[remainder of page intentionally left blank]

Each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written.

COMPANY:            MENTOR GRAPHICS CORPORATION

By: /S/ Ethan Manuel            
Name:  Ethan Manuel
Title:  Treasurer

By:  /S/ Dean Freed            
Name: Dean Freed
Title: Vice President

AGENT:            BANK OF AMERICA, N.A.,
as Agent

By:  /S/ Erik M. Truette        
Name: Erik M. Truette
Title:  Assistant Vice President

BANKS:            BANK OF AMERICA, N.A.,
as a Bank

By:  /S/ Thuy Bui                
Name: Thuy Bui
Title:  Vice President
                    
                
BANKS:            CITIBANK, N.A.,
as a Bank

By:  /S/ Sean Klimchalk        
Name:  Sean Klimchalk
Title: Vice President

BANKS:            HSBC BANK USA, NATIONAL ASSOCIATION,
as a Bank

By:  /S/ Mike A. Mitchell    
Name:  Mike A. Mitchell
Title: Vice President

BANKS:            KEYBANK NATIONAL ASSOCIATION,
as a Bank

By:  /S/ Tad Stainbrook    
Name:  Tad Stainbrook
Title: Vice President

BANKS:            U.S BANK, NATIONAL ASSOCIATION,
as a Bank

By:  /S/ Mark D. Rodgers    
Name:  Mark D. Rodgers
Title: Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]