Document:

Form of December 1999 non plan option agreement

 Exhibit 4.5 
  

SYNPLICITY, INC. 
 STOCK OPTION
AGREEMENT 
  
 Definitions. As used herein, the following
definitions shall apply: 
  

	 	(a)	“Administrator” means the Board or any of its Committees. 

  

	 	(b)	“Board” means the Board of Directors of the Company. 

  

	 	(c)	“Code” means the Internal Revenue Code of 1986, as amended. 

  

	 	(d)	“Committee” means a Committee appointed by the Board of Directors. 

  

	 	(e)	“Common Stock” means the Common Stock of the Company. 

  

	 	(f)	“Company” means Synplicity, Inc., a California corporation. 

  

	 	(g)	“Consultant” means any person, including an advisor, who is engaged by the Company or any Parent or Subsidiary to render services and is compensated for such services, and
any director of the Company whether compensated for such services or not, provided that if and in the event the Company registers any class of any equity security pursuant to the Exchange Act, the term Consultant shall thereafter not include
directors who are not compensated for their services or are paid only a director’s fee by the Company. 

  

	 	(h)	“Continuous Status as an Employee or Consultant” means that the employment or consulting relationship is not interrupted or terminated by the Company, any Parent or
Subsidiary. Continuous Status as an Employee or Consultant shall not be considered interrupted in the case of: (i) any leave of absence approved by the Company, including sick leave, military leave, or any other personal leave; provided, however,
that for purposes of Incentive Stock Options, any such leave may not exceed ninety (90) days, unless reemployment upon the expiration of such leave is guaranteed by contract (including certain Company policies) or statute; provided, further, that on
the ninety-first day of any such leave (where reemployment is not guaranteed by contract or statute) an Optionee’s Incentive Stock Option shall automatically convert to a Nonstatutory Stock Option; or (ii) transfers between locations of the
Company or between the Company, its Parent, its Subsidiaries or its successor. 

  

	 	(i)	“Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code. 

  

	 	(j)	“Employee” means any person, including officers and directors, employed by the Company or any Parent or Subsidiary of the Company. The payment of a director’s fee by
the Company shall not be sufficient to constitute “employment” by the Company. 

  

	 	(k)	“Fair Market Value” means, as of any date, the value of Common Stock determined as follows: In the absence of an established market for the Common Stock, the Fair Market
Value thereof shall be determined in good faith by the Administrator. 

  

	 	(l)	“Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code. 

  

	 	(m)	“Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 

  

	 	(n)	“Option” means a stock option granted. 

  

	 	(o)	“Optionee” means an Employee or Consultant who receives an Option. 

  

	 	(p)	“Parent” means a “ parent corporation”, whether now or hereafter existing, as defined in Section 424(e) of the Code. 

  

	 	(q)	“Share” means a share of the Common Stock. 

  

	 	(r)	“Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code. 

  
 Exercise Schedule: 
  
 To the extent that this Option has vested, it shall be exercisable at any
time until its expiration or termination. 
  

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 Vesting Schedule: 
  
 Subject to accelerated vesting as described below, shares subject to the Option shall vest 1/48th each month over a four year period beginning on the Vesting Commencement Date but only if Optionee is a Consultant or Employee
of the Company on the applicable vesting date. 
  
 Assumption,
Substitution or Accelerated Vesting Upon Merger or Asset Sale: 
  
 In the event of a merger of the Company with or into another corporation, or the sale of substantially all of the assets of the Company, this Option may be assumed or an equivalent option or right may be substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation; provided, however, that if such successor corporation or a Parent or Subsidiary of the successor corporation refuses to so assume or substitute this Option, 100% of the Shares
subject to this Option shall vest prior and subject to closing of the merger or asset sale and Optionee continuing as a Consultant or Employee of the Company as of the date of the closing of the merger or asset sale. If this Option contingently
vests in the event of a merger or asset sale, the Administrator shall notify Optionee that this Option shall be contingently exercisable for a period of fifteen (15) days from the date of such notice subject to closing of the merger or asset sale,
and this Option will terminate upon the closing of the merger or asset sale if not exercised prior thereto. In the event the merger or asset sale does not close, vesting shall revert to its original schedule. 
  
 Termination Period: 
  
 This Option, to the extent vested and exercisable, may be exercised for
three months after termination of Optionee’s employment or consulting relationship (extended to twelve months if such termination is because of Optionee’s death or Disability) but in no event later than the term/expiration date as set
forth above. 
  
 After such period, and, in any event, to the
extent not vested at the time of the termination of Optionee’s employment or consulting relationship, the Option shall terminate. 
  
 II. AGREEMENT 
  
 1. Grant of Option. Synplicity, Inc., a California corporation (the “Company”), hereby grants to the Optionee named in the Notice of Grant (the
“Optionee”), an option (the “Option”) to purchase a total number of shares of Common Stock (the “Shares”) set forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant (the
“Exercise Price”) subject to the terms, definitions and provisions herein. 
  
 If designated in the Notice of Grant as an Incentive Stock Option, this Option is intended to qualify as an Incentive Stock Option as
defined in Section 422 of the Code. However, if this Option is intended to be an Incentive Stock Option, to the extent that it exceeds the $100,000 rule of Code Section 422(d) it shall be treated as a Nonstatutory Stock Option. 
  
 2. Exercise of Option. This Option shall be exercisable during its term in
accordance with the Exercise Schedule set out in the Notice of Grant as follows: 
  
 (i) Right to Exercise. 
  
 (a) This Option may not be exercised for a fraction of a share. 
  
 (b) Termination of Employment. In the event of termination of Optionee’s Continuous Status as an
Employee or Consultant with the Company (but not in the event of a change of status from Employee to Consultant (in which case an Employee’s Incentive Stock Option shall be treated as a Nonstatutory Stock Option on the day that is three months
and one day following such change of status) or form Consultant to Employee), Optionee may, but only within three months from date of termination of employment, (and in no event later than the expiration date of the term of this Option as set forth
on the 

  

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Notice of Grant), exercise the Option to the extent that Optionee is was vested at the date of such termination . To the extent that Optionee was not vested
in the Option at the date of such termination, or if Optionee does not exercise such Option to the extent so entitled within the time specified in the Notice of Stock Option Grant, the Option shall terminate. 
  
 (c) Disability of Optionee. In the event of termination of
an Optionee’s Continuous Status as an Employee or Consultant as a result of Disability, Optionee may within twelve months from date of such termination (and in no event later than the expiration date of the term of this Option as set forth on
the Notice of Grant), exercise his or her Option to the extent that Optionee was vested at the date of such termination. To the extent that Optionee was not vested at the date of such termination, or if Optionee does not exercise such Option to the
extent so entitled within the time specified in the Notice of Stock Option Grant, the Option shall terminate. 
  
 (d) Death of Optionee. In the event of termination of an Optionee’s Continuous Status as an Employee or Consultant as a result of the
death of an Optionee, the Option may be exercised, but only within twelve months from date of such termination, (and in no event later than the expiration date of the term of such Option as set forth herein), to the extent that such Option is or
becomes exercisable during such period, by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent that the Option was vested at the date of death. To the extent that
the Option was not vested at the date of death, or if the Option is not exercised to the extent entitled within the time specified in the Notice of Stock Option Grant, the Option shall terminate. 
  
 (e) In no event may this Option be exercised after the date
of expiration of the term of this Option as set forth in the Notice of Stock Option Grant. 
  
 (ii) Method of Exercise. This Option shall be exercisable by written notice (in the form attached as Exhibit A) which shall state the
election to exercise the Option, the number of Shares in respect of which the Option is being exercised, and such other representations and agreements as to the holder’s investment intent with respect to such shares of Common Stock as may be
required by the Company. Such written notice shall be signed by the Optionee and shall be delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the Exercise Price. This Option
shall be deemed to be exercised upon receipt by the Company of such written notice accompanied by the Exercise Price. 
  
 No Shares will be issued pursuant to the exercise of an Option unless such issuance and such exercise shall comply with all relevant
provisions of law and the requirements of any stock exchange upon which the Shares may then be listed. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is
exercised with respect to such Shares. 
  
 3. Optionee’s
Representations. In the event the Shares purchasable pursuant to the exercise of this Option have not been registered under the Securities Act of 1933, as amended, at the time this Option is exercised, Optionee shall, if required by the Company,
concurrently with the exercise of all or any portion of this Option, deliver to the Company his Investment Representation Statement in the form attached hereto as Exhibit B. 
  
 4. Method of Payment. Payment of the Exercise Price shall be by any of the following, or a combination thereof, at
the election of the Optionee: 
  
 (i) cash; or

  
 (ii) check; or 
  
 (iii) surrender of other shares of Common Stock of the
Company which (A) in the case of Shares acquired pursuant to the exercise of a Company option, have been owned by the Optionee for 

  

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more than six (6) months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the Exercise Price of the Shares as to
which the Option is being exercised. 
  
 5. Restrictions on
Exercise. In addition to the restrictions contained in the Exercise Schedule in the Notice of Stock Option Grant, this Option may not be exercised if the issuance of such Shares upon such exercise or the method of payment of consideration for
such shares would constitute a violation of any applicable federal or state securities or other law or regulation, including any rule under Part 207 of Title 12 of the Code of Federal Regulations (“Regulation G”) as promulgated by the
Federal Reserve Board. As a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation. 
  
 6. Non-Transferability of Option. This Option may not be transferred
in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by him or her. The terms of this Option shall be binding upon the executors, administrators, heirs, successors
and assigns of the Optionee. 
  
 7. Term of Option. This
Option may be exercised only within the term set out in the Notice of Grant provided, however, that the term shall be no more than ten (10) years from the Date of Grant, and may be exercised during such term only in accordance with the terms of this
Option. In the case of an Incentive Stock Option granted to an Optionee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the term of the Option shall be five (5) years from the Date of Grant or such shorter term as may be provided in the Notice of Grant. 
  
 8. Taxation Upon Exercise of Option. Optionee understands that, upon exercising a Nonstatutory Stock Option, he or she will recognize income for
tax purposes in an amount equal to the excess of the then fair market value of the Shares over the exercise price. However, the timing of this income recognition may be deferred for up to six months if Optionee is subject to Section 16 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”). If the Optionee is an employee, the Company will be required to withhold from Optionee’s compensation, or collect from Optionee and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income. Additionally, the Optionee may at some point be required to satisfy tax withholding obligations with respect to any disqualifying disposition of an Incentive Stock Option. The
Optionee shall satisfy his or her tax withholding obligation arising upon the exercise of this Option out of Optionee’s compensation or by payment to the Company. 
  
 9. Tax Consequences. Set forth below is a brief summary as of the date of this Option of some of the federal and
California tax consequences of exercise of this Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION
OR DISPOSING OF THE SHARES. 
  
 (i) Exercise
of ISO. If this Option qualifies as an ISO, there will be no regular federal income tax liability or California income tax liability upon the exercise of the Option, although the excess, if any, of the fair market value of the Shares on the date
of exercise over the Exercise Price will be treated as an adjustment to the alternative minimum tax for federal tax purposes and may subject the Optionee to the alternative minimum tax in the year of exercise. 
  
 (ii) Exercise of Nonstatutory Stock Option. There may
be a regular federal income tax liability and California income tax liability upon the exercise of a Nonstatutory Stock Option. The Optionee will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the
excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise Price. If Optionee is an employee, the Company will be required to withhold from Optionee’s compensation or collect from Optionee and pay to the
applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. 
  

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 (iii) Disposition of Shares. In the case of an NSO, if Shares are held for at
least one year after exercise, any gain realized on disposition of the Shares over the exercise price plus any gain realized on the exercise will be treated as long-term capital gain for federal and California income tax purposes. In the case of an
ISO, if Shares transferred pursuant to the Option are held for at least one year after exercise and are disposed of at least two years after the date of grant, any gain realized on disposition of the Shares will also be treated as long-term capital
gain for federal and California income tax purposes. If Shares purchased under an ISO are disposed of within such one-year period or within two years after the Date of Grant, any gain realized on such disposition will be treated as compensation
income (taxable at ordinary income rates) to the extent of the difference between the Exercise Price and the lesser of (1) the fair market value of the Shares on the date of exercise, or (2) the sale price of the Shares. 
  
 (iv) Notice of Disqualifying Disposition of ISO
Shares. If the Option granted to Optionee herein is an ISO, and if Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (1) the date two years after the Date of Grant, or (2) the date
one year after the date of exercise, the Optionee shall immediately notify the Company in writing of such disposition. Optionee agrees that Optionee may be subject to income tax withholding by the Company on the compensation income recognized by the
Optionee. 
  
 OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF
SHARES PURSUANT TO THE OPTION HEREOF IS EARNED ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND
AGREES THAT NOTHING IN THIS AGREEMENT SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH HIS OR HER RIGHT OR THE COMPANY’S RIGHT TO TERMINATE HIS
OR HER EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE. 
  
 Optionee
has reviewed this Option in its entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully understands all provisions of the Option. Optionee hereby accepts this Option subject to all of the terms and
provisions herein. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under this Option. 
  

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 EXHIBIT A 
  
 EXERCISE NOTICE 
  
 Synplicity, Inc. 
 935 Stewart Drive 

Sunnyvale, CA 94086 
  
 1. Exercise of Option. Effective as of today,
                                    ,
            , the undersigned (“Optionee”) hereby elects to exercise Optionee’s option to purchase
                     shares of the Common Stock (the “Shares”) of Synplicity, Inc. (the “Company”) under and pursuant to
the [    ] Incentive [    ] Nonstatutory Stock Option Agreement with Grant Date
                                 (the “Option Agreement”). 

 
 2. Representations of Optionee. Optionee acknowledges that Optionee has
received, read and understood the Option Agreement and agrees to abide by and be bound by its terms and conditions. 
  
 3. Rights as Shareholder. Until the stock certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the Company
or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the optioned Stock, notwithstanding the exercise of the Option. The Company shall issue
(or cause to be issued) such stock certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued. 
  
 Optionee shall enjoy rights as a shareholder until such time
as Optionee disposes of the Shares or the Company and/or its assignee(s) exercises the Right of First Refusal hereunder. Upon such exercise, Optionee shall have no further rights as a holder of the Shares so purchased except the right to receive
payment for the Shares so purchased in accordance with the provisions of this Agreement, and Optionee shall forthwith cause the certificate(s) evidencing the Shares so purchased to be surrendered to the Company for transfer or cancellation.

  
 4. Company’s Right of First Refusal. Before any Shares
held by Optionee or any transferee (either being sometimes referred to herein as the “Holder”) may be sold or otherwise transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall have a right of
first refusal to purchase the Shares on the terms and conditions set forth in this Section (the “Right of First Refusal”). 
  
 (a) Notice of Proposed Transfer. The Holder of the Shares shall deliver to the Company a written notice (the “Notice”) stating:
(i) the Holder’s bona fide intention to sell or otherwise transfer such Shares; (ii) the name of each proposed purchaser or other transferee (“Proposed Transferee”); (iii) the number of Shares to be transferred to each Proposed
Transferee; and (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the Shares (the “Offered Price”), and the Holder shall offer the Shares at the Offered Price to the Company or its assignee(s).

  
 (b) Exercise of Right of First Refusal. At
any time within thirty (30) days after receipt of the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase some or all of the Shares proposed to be transferred to any one or more of the Proposed
Transferees, at the purchase price determined in accordance with subsection (c) below. 
  
 (c) Purchase Price. The purchase price (“Purchase Price”) for the Shares purchased by the Company or its assignee(s) under this
Section shall be the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board of Directors of the Company in good faith. 
  
 (d) Payment. Payment of the Purchase Price shall be made, at
the option of the Company or its assignee(s), in cash (by check), by cancellation of all or a portion of any outstanding 

  

 6 

 
indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination thereof within 30 days after
receipt of the Notice or in the manner and at the times set forth in the Notice. 
  
 (e) Holder’s Right to Transfer. If some or all of the Shares proposed in the Notice to be transferred to a given Proposed Transferee
are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Shares to that Proposed Transferee at the Offered Price or at a higher price, provided that such sale or other
transfer is consummated within 120 days after the date of the Notice and provided further that any such sale or other transfer is effected in accordance with any applicable securities laws and the Proposed Transferee agrees in writing that the
provisions of this Section shall continue to apply to the Shares in the hands of such Proposed Transferee. If the Shares described in the Notice are not transferred to the Proposed Transferee within such period, a new Notice shall be given to the
Company, and the Company and/or its assignees shall again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred. 
  
 (f) Exception for Certain Family Transfers. Anything to the contrary contained in this Section
notwithstanding, upon the approval of the Administrator, the transfer of any or all of the Shares during the Optionee’s lifetime or on the Optionee’s death by will or intestacy to the Optionee’s immediate family or a trust for the
benefit of the Optionee’s immediate family shall be exempt from the provisions of this Section. “Immediate Family” as used herein shall mean spouse, lineal descendant or antecedent, father, mother, brother or sister. In such case, the
transferee or other recipient shall receive and hold the Shares so transferred subject to the provisions of this Section, and there shall be no further transfer of such Shares except in accordance with the terms of this Section. 
  
 (g) Termination of Right of First Refusal. The Right of
First Refusal shall terminate as to any Shares 90 days after the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under
the 1933 Act. 
  
 5. Tax Consultation. Optionee understands that
Optionee may suffer adverse tax consequences as a result of Optionee’s purchase or disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection with the purchase or
disposition of the Shares and that Optionee is not relying on the Company for any tax advice. 
  
 6. Restrictive Legends and Stop-Transfer Orders. 
  
 (a) Legends. Optionee understands and agrees that the Company shall cause the legends set forth below or legends substantially equivalent
thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by state or federal securities laws: 
  
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
HYPOTHECATION IS IN COMPLIANCE THEREWITH. 
  
 THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND RIGHT OF FIRST REFUSAL OPTIONS HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY
BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES. 
  

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 (b) Stop-Transfer Notices. Optionee agrees that, in order to ensure compliance
with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same
effect in its own records. 
  
 (c) Refusal to
Transfer. The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the
right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred. 
  
 7. Successors and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall
inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Optionee and his or her heirs, executors, administrators, successors and assigns.

  
 8. Interpretation. Any dispute regarding the
interpretation of this Agreement shall be submitted by Optionee or by the Company forthwith to the Company’s Board of Directors or the Committee thereof, which shall review such dispute at its next regular meeting. The good faith resolution of
such a dispute by the Board or Committee shall be final and binding on the Company and on Optionee. 
  
 9. Governing Law; Severability. This Agreement shall be governed by and construed in accordance with the laws of the State of California excluding
that body of law pertaining to conflicts of law. Should any provision of this Agreement be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.

  
 10. Notices. Any notice required or permitted hereunder
shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with postage and fees prepaid, addressed to the other party at its address as shown below beneath its
signature, or to such other address as such party may designate in writing from time to time to the other party. 
  
 11. Further Instruments. The parties agree to execute such further instruments and to take such further action as may be reasonably necessary to
carry out the purposes and intent of this Agreement. 
  
 12.
Delivery of Payment. Optionee herewith delivers to the Company the full Exercise Price for the Shares. 
  

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 13. Entire Agreement. The Notice of Grant/Option Agreement are incorporated herein by reference.
This Agreement, the Option Agreement and the Investment Representation Statement constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the
subject matter hereof, and is governed by California law except for that body of law pertaining to conflict of laws. 
  

									
	 Submitted by:
	 	 	 	 Accepted by:

			
	 OPTIONEE:
	 	 	 	 SYNPLICITY, INC.

					
	By:	 	 	 	 	 	 By:
	 	 
	 	 	 Print Name
	 	 	 	 	 	 Print Name

				
	 	 	 	 	 Its:
	 	 
	 (Signature)
	 	 	 	 	 	 Title

			
	 Address:
	 	 	 	 Address:

			
	 	 	 	 	 935 Stewart Drive

	 	 	 	 	 Sunnyvale, CA 94086

  

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 EXHIBIT B 
  
 INVESTMENT REPRESENTATION STATEMENT 
  

			
	OPTIONEE:	 	_____________________________
		
	COMPANY:	 	      SYNPLICITY, INC.
		
	SECURITY:	 	      COMMON STOCK

  

			
	# SHARES EXERCISED:                                 
                	  	$ AMOUNT:
                                        
                     
		
	GRANT DATE:                                    
                             	  	EXERCISE DATE:
                                        
            

  
 In connection with the purchase of the
above-listed Securities, the undersigned Optionee represents to the Company the following: 
  
 (a) Optionee is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the
Company to reach an informed and knowledgeable decision to acquire the securities. Optionee is acquiring these securities for investment for Optionee’s own account only and not with a view to, or for resale in connection with, any
“distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). 
  
 (b) Optionee acknowledges and understands that the securities constitute “restricted securities” under the Securities Act and
have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Optionee’s investment intent as expressed herein. In this connection,
Optionee understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Optionee’s representation was predicated solely upon a present intention to hold these Securities for
the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future. Optionee further
understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Optionee further acknowledges and understands that the Company is under
no obligation to register the securities. Optionee understands that the certificate evidencing the securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such registration is not
required in the opinion of counsel satisfactory to the Company, a legend prohibiting their transfer without the consent of the Commissioner of Corporations of the State of California and any other legend required under applicable state securities
laws. 
  
 (c) Optionee is familiar with the
provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof, in a non-public offering
subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to the Optionee, the exercise will be exempt from registration under the Securities Act. In the
event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the securities exempt
under Rule 701 may be resold, subject to the satisfaction of certain of the conditions specified by Rule 144, including: (1) the resale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly
with a market maker (as said term is defined under the Securities Exchange Act of 1934); and, in the case of an affiliate, (2) the availability of certain public information about the Company, (3) the amount of securities being sold during any three
month period not exceeding the limitations specified in Rule 144(e), and (4) the timely filing of a Form 144, if applicable. 
  

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 In the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then
the securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which requires the resale to occur not less than one year after the party has purchased, and made full payment for, within the meaning of Rule 144,
the securities to be sold; and, in the case of an affiliate, or of a non-affiliate who has held the securities less than two years, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above.

  
 (d) Optionee hereby agrees that if so
requested by the Company or any representative of the underwriters in connection with any registration of the offering of any securities of the Company under the 1933 Act, Optionee shall not sell or otherwise transfer any Shares or other securities
of the Company during the 180-day period following the effective date of a registration statement of the Company filed under the 1933 Act; provided, however, that such restriction shall only apply to the first registration statement of the Company
to become effective under the 1933 Act which include securities to be sold on behalf of the Company to the public in an underwritten public offering under the 1933 Act. The Company may impose stop-transfer instructions with respect to securities
subject to the foregoing restrictions until the end of such 180-day period. 
  
 (e) Optionee further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other
registration exemption will be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement
securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons
and their respective brokers who participate in such transactions do so at their own risk. Optionee understands that no assurances can be given that any such other registration exemption will be available in such event. 
  

									
	 Signature of Optionee:
	 	 	 	 
			
	 	 	 	 	 Date:
                                        
    , 19    

  

 11Stock Option Agreement

 Exhibit 10.25.1 
  
 [            ] STOCK OPTION AGREEMENT 
  
 [            ]
STOCK OPTION AGREEMENT, dated as of the              day of
                    ,             , by and between NovaStar Financial,
Inc., a Maryland corporation (the “Company”), and                             , an
individual employee of the Company or any Subsidiary (the “Optionee”). 
  
 Pursuant to the NovaStar Financial, Inc. 2004 Incentive Stock Plan (the “Plan”), the Compensation Committee of the Board of Directors has determined that the Optionee is to be granted an option (the
“Option”) to purchase shares of the Company’s common stock, on the terms and conditions set forth herein, and the Board of Directors hereby grants such Option. It is intended that the Option constitute an
“[            ] stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”); subject to the approval at the 1999 Annual
Meeting of Shareholders of an amendment to the Plan. In the event that approval is withheld, such Option will thereafter be treated as a Non-Qualified Stock Option. Any capitalized terms not defined herein shall have the meaning set forth in the
Plan. 
  
 1. Number of Shares and Option Price. The Option
entitles the Optionee to purchase                             
(            ) shares of the Company’s common stock, par value $0.01 per share (the “Option Shares”), at a price (the “Option Price”) of
                             Dollars
($            ) per share, which is not less than the Fair Market Value of the Option Shares as of the date hereof, as determined by the Compensation Committee of the Board of
Directors. 
  
 2. DERs.
[        ] percent ([    ]%) dividend equivalent rights in the form of “Accrued DERs” as provided in, and subject to the limitations of, the Plan shall be credited with respect to
the Option to the extent it has become exercisable and [    ]% dividends shall likewise be credited on the Accrued DERs. Dividends payable or credited as Accrued DERs shall equal [    ]% of the cash dividend
paid, or [    ]% of the value of stock or other property being distributed, as the case may be, with respect to the Company’s common stock. 
  
 3. Period of Option. The term of the Option and of this Option Agreement shall commence on the date hereof (the
“Date of Grant”) and terminate upon the expiration of ten years from the Date of Grant; provided, however, that if the Optionee owns or is deemed to own (by reason of the attribution rules of Section 425(d) of the Code) more
than 10% of the combined voting power of all classes of stock of the Company or any Parent Corporation or Subsidiary, the term of the Option shall be no more than five (5) years from the Date of Grant. Upon termination of the Option, all rights of
the Optionee hereunder shall cease. 
  
 4. Conditions of
Exercise. 
  
 (a) Subject to the provisions of paragraph (b)
of this Section 4, the Option shall become exercisable as follows: 
  
 (i) Twenty-five Percent of the Option Shares (rounded down to the nearest whole number of shares) on                     ;

  

 1 

 (ii) An additional 25% of the Option Shares (rounded down to the nearest whole number of shares) on
                    ; 
  
 (iii) An additional 25% of the Option Shares (rounded down to the nearest whole number of shares) on
                    ; 
  
 (iv) An additional 25% of the Option Shares (rounded down to the nearest whole number of shares) on
                    . 
  
 (b) The right of the Optionee to purchase shares with respect to which this Option has become exercisable as herein provided may be exercised in whole or
in part at any time or from time to time up to ten (10) years from the Date of Grant, but only during the period in which such Option remains exercisable as herein provided. 
  
 5. Nontransferability of Option. The Option and this Option Agreement shall not be transferable otherwise than by
will or by the laws of descent and distribution or pursuant to a “qualified domestic relations order,” as defined in the Employee Retirement Income Security Act of 1974; and the Option may be exercised, during the lifetime of the Optionee,
only by the Optionee or by the Optionee’s legal representative. 
  
 6. Exercise of Option. The Option shall be exercised in the following manner: the Optionee, or the person or persons having the right to exercise the Option upon the death or Disability of the Optionee, shall deliver to the Company
written notice specifying the number of Option shares which he or she elects to purchase, together with either (i) cash, (ii) shares of Company common stock having a Fair Market Value determined as of the date of exercise, (iii) cancellation of any
indebtedness owed by the Company to the Optionee, or (iv) any combination of the above, the sum of which equals the total price to be paid upon the exercise of the Option, and the stock purchased shall thereupon be promptly delivered. The Optionee
will not be deemed to be a holder of any shares pursuant to exercise of the Option until the date of issuance to him or her of a stock certificate for such shares and until the shares are paid in full. 
  
 7. Termination by Death. If the Optionee’s employment with the
Company or any Subsidiary terminates by reason of death, the Option may thereafter be exercised by the legal representative of the estate or by the legatee of the Optionee under the will of the Optionee, to the full extent of the Option Shares
(accelerating the provisions of paragraph (a) of Section 4), for a period of twelve (12) months or until the expiration of the stated term of such Option, whichever period is shorter. 
  
 8. Termination by Reason of Disability. If the Optionee’s employment with the Company or any Subsidiary
terminates by reason of Disability, any Option held by such Optionee may thereafter be exercised, to the full extent of the Option Shares (accelerating the provisions of paragraph (a) of Section 4), for a period of twelve (12) months from the date
of such termination of employment or until the expiration of the stated term of such Option, whichever period is shorter; provided, however, that if the Optionee dies within such twelve (12) month period and prior to the expiration of
the stated term of such Option, such Option may thereafter be exercised for a period of twelve (12) months from the date of death or until the expiration of the stated term of such Option, whichever period is shorter; provided,
further, that in the event of a termination 

  

 2 

 
of employment by reason of Disability, if an Incentive Stock Option is exercised after the expiration of the exercise periods that apply for purposes of
Section 422 of the Code, such Option will thereafter be treated as a Non-Qualified Stock Option. 
  
 9. Other Termination. If the Optionee’s employment with the Company or any Subsidiary terminates for any reason other than death or
Disability, the Option may be exercised to the extent it has become exercisable, for a period of three (3) months from the date of such termination or until the expiration of the stated term of the Option, whichever period is shorter;
provided, however, that if the Optionee dies within such three (3) month period and prior to the expiration of the stated term of such Option, such Option may thereafter be exercised to the extent it has become exercisable for a period
of three (3) months from the date of death or until the expiration of the stated term of the Option, whichever period is shorter. 
  
 10. Notices. Any notice required or permitted under this Option Agreement shall be deemed given when delivered personally, or when deposited in a
United States Post Office, postage prepaid, addressed, as appropriate, to the Optionee either at the Optionee’s address set forth below or such other address as the Optionee may designate in writing to the Company, or the Company: Attention:
Board of Directors/Corporate Secretary, at the Company’s address or such other address as the Company may designate in writing to the Optionee. 
  
 11. Failure to Enforce Not a Waiver. The failure of the Company to enforce at any time any provision of this Option Agreement shall in no way be
construed to be a waiver of such provision or of any other provision hereof. 
  
 12. Incorporation of Plan. The Plan is hereby incorporated by reference and made a part hereof, and the Option and this Option Agreement are subject to all terms and conditions of the Plan. 
  
 13. Amendments. This Option Agreement may be amended or modified at
any time by an instrument in writing signed by the parties hereto. 
  

 3 

 IN WITNESS WHEREOF, the parties have executed this Option Agreement on the day and year first above
written. 
  

					
	COMPANY:	 	NOVASTAR FINANCIAL, INC.
			
	 	 	By:	 	  

	 	 	Name:	 	  

	 	 	Title:	 	  

		
	 	 	The undersigned hereby accepts and agrees to all the terms and provisions of the foregoing Option Agreement and to all the terms and provisions of the Plan herein incorporated by
reference.

	

	

									
			
	OPTIONEE:	 	 	 	  

	 	 	 	 	Name:	 	 
				
	 	 	 	 	Address:	 	  

	 	 	 	 	 	 	  

	 	 	 	 	 	 	Phone:	 	  

  

 4

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