Document:

Exhibit 10.1

 

OPTION AGREEMENT

 

This
Agreement is entered into this 31st day of December, 2002, by and
between Michael T. Putziger (“Putziger”) and Enterprise Bank and Trust Company
(“Enterprise”).

 

WHEREAS,
Putziger wishes to confer upon Enterprise the option to assume his rights and
obligations pursuant to both an Assignment and Assumption Agreement of even
date hereby between Putziger and (a) George L. Duncan relating to
interests in Merrimack Street Associates (MSA) and (b) an Assignment and
Assumption Agreement of even date hereby between Putziger and George L. Duncan
relating to interests in Old City Hall Limited Partnership (OCH); and

 

WHEREAS,
Enterprise wishes to have said option,

 

NOW,
THEREFORE, for good and sufficient consideration, the parties hereby agree as
follows:

 

1.             Enterprise or, in its sole
discretion, any affiliate thereof, may exercise the option granted here under
at any time during the period of thirty-six (36) months from the date hereof;
provided, however, that Enterprise must give Putziger notice in writing at
least 90 days prior to its exercising such option to acquire said rights and
obligations.  Upon OCH or MSA notifying
Enterprise of its intention to accept a bonafide third party offer to sell
either of the OCH or MSA related properties, Enterprise will be entitled to
execute the option expressed herein without fulfilling the 90 day notice
otherwise required.

 

2.             In consideration therefore,
Enterprise shall pay Putziger the sum of One Dollar ($1.00), plus any
additional reasonable expenses or costs, up to a maximum amount of $15,000,
that may be incurred by Putziger in connection with (and only in connection
with) Enterprise’s exercise of this option. 
In the event expenses incurred in connection with Enterprise’s option
exceed $15,000, Enterprise will review and consider for reimbursement any such
expenses, but shall not be obligated to approve such expenses for
reimbursement.

 

3.             It is expressly understood
by all parties to this Agreement that the options expressed herein must be
exercised simultaneously by Enterprise.

 

IN
WITNESS HEREOF, the undersigned has duly executed this Agreement as of the date
set forth above.

 

 

	
   

  	
   

  	
   

  	
  /s/
  Michael T. Putziger

  
	
   

  	
   

  	
   

  	
  Michael
  T. Putziger

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Enterprise
  Bank and Trust Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  John P. Clancy, Jr.

  
	
   

  	
   

  	
   

  	
         Its

  	
  CFO/Treasurer

  
	
   

  	
   

  	
   

  	
                    duly
  authorizedExhibit 10.2

 

NINTH AMENDMENT TO OPTION AGREEMENT

 

THIS NINTH AMENDMENT TO OPTION AGREEMENT (the “Amendment”) is made as
of the 11th day of July, 2008 by and between Enterprise Bank and
Trust Company (“Enterprise”) and Michael T. Putziger (“Putziger”).

 

W I T N E S S E T H:

 

WHEREAS, Putziger and Enterprise are parties to that certain Option
Agreement dated as of December 31, 2002, as amended by (i) that
certain Amendment to Option Agreement dated as of December 30, 2005, (ii) that
certain Second Amendment to Option Agreement dated as of February 15, 2006,
(iii) that certain Third Amendment to Option Agreement dated as of March 28,
2006, (iv) that certain Fourth Amendment to Option Agreement dated as of April 28,
2006, (v) that certain Fifth Amendment to Option Agreement dated as of June 28,
2006, (vi) that certain Sixth Amendment to Option Agreement dated as of December 22,
2006, (vii) that certain Seventh Amendment to Option Agreement dated as of
March 30, 2007 and (viii) that certain Eighth Amendment to Option
Agreement dated as of March 30, 2008 pursuant to which Putziger granted
Enterprise an option to assume Putziger’s rights and obligations pursuant to an
Assignment and Assumption Agreement dated as of December 31, 2002 between Putziger
and George L. Duncan (“Duncan”) relating to interests in Old City Hall Limited
Partnership (the portions of such Option dealing with interests in Merrimack
Street Associates having been terminated by that certain Termination Agreement
dated as of September 28, 2007 between Putziger and Enterprise) (such
Option Agreement, as so amended, and as it relates to interests in Old City
Hall Limited Partnership, the “Option Agreement”); and

 

WHEREAS, Putziger and Enterprise desire to extend the period of time
within which the option granted to Enterprise under the Option Agreement with
respect to interests in Old City Hall Limited Partnership can be exercised as
provided herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged and intending to be legally bound
hereby, Putziger and Enterprise agree as follows:

 

1.             Section 1 of
the Option Agreement is hereby deleted in its entirety and the following is substituted
therefor:

 

Enterprise or, in its sole discretion, any affiliate thereof, may
execute the option granted hereunder relating to OCH at any time after the date
hereof and on or before December 31, 2008; provided, however, that
Enterprise must give Putziger notice in writing at least 20 days prior to its
exercising such option to acquire said rights and obligations.  Upon OCH notifying Enterprise of its
intention to accept a bonafide third party offer to sell the 

 

 

OCH related property, Enterprise will be entitled to execute the option
expressed herein without fulfilling the 20 day notice otherwise required.

 

2.             This Amendment may
be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall be deemed one and the same
instrument.  Telefacsimile transmissions
of any executed counterpart of this Termination and/or retransmission of any
executed telefacsimile transmission shall be deemed to be the same as the
delivery of an executed original.  At the
request of either party hereto, the other party shall confirm telefacsimile
transmission by executing duplicate original documents and delivering the same
to the requesting party.

 

IN WITNESS WHEREOF, Putziger and Enterprise have caused this Amendment
to be duly executed as of the day and year first mentioned above.

 

	
   

  	
   

  	
  ENTERPRISE BANK AND TRUST

  
	
   

  	
   

  	
  COMPANY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Michael T. Putziger

  	
   

  	
  By:

  	
  /s/ John P. Clancy, Jr.

  
	
  Michael T. Putziger

  	
   

  	
   

  	
  Name: John P. Clancy, Jr.

  
	
   

  	
   

  	
   

  	
  Title: Chief Executive Officer

  

 

2Exhibit 10.50

 

SYNOPSYS, INC.

 

FORM
OF AMENDED AND RESTATED EXECUTIVE CHANGE OF CONTROL SEVERANCE BENEFIT PLAN

 

SECTION 1.                            INTRODUCTION.

 

The Synopsys, Inc. Executive Change of
Control Severance Benefit Plan (the “Plan”) was established effective March 23,
2006 and is hereby amended and restated effective May 28, 2008.  The purpose of the Plan is to provide for the
payment of benefits to certain eligible executive employees of Synopsys, Inc.
(the “Company”)
if such employees are subject to qualifying employment terminations in
connection with a Change of Control (as such term is defined below).  This Plan shall supersede, as to any Eligible
Employee, any severance benefit plan, policy, or practice previously maintained
by the Company, other than change of control or severance benefits set forth in
an equity incentive plan in which the primary form of award is in the form of
options on stock of the Company or grants of shares of stock of the
Company.  In the event of a benefit set
forth in an equity incentive plan, an employee’s severance benefit, if any,
shall be governed by the terms of such equity incentive plan and shall be
governed by this Plan only to the extent that the reduction pursuant to Section 5(b) below
does not entirely eliminate benefits under this Plan.  This Plan shall not supersede or otherwise
amend any severance plan, policy, or practice of the Company with respect to
individuals who are not Eligible Employees. 
This document also constitutes the Summary Plan Description for the
Plan.

 

SECTION 2.                            DEFINITIONS.

 

For purposes of the Plan, the following terms
are defined as follows:

 

(a)                                  “Base Salary” means
the Eligible Employee’s annual base pay (excluding incentive pay, premium pay,
commissions, overtime, bonuses and other forms of variable compensation), at
the rate in effect during the last regularly scheduled payroll period
immediately preceding the date of the Eligible Employee’s Covered Termination.

 

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

 

(c)                                  “Change of Control”
means the occurrence, in a single transaction or in a series of related
transactions, of any one or more of the following events:

 

(i)                                    any person
becomes the Owner, directly or indirectly, of securities of the Company
representing more than fifty percent (50%) of the combined voting power of the
Company’s then outstanding securities other than by virtue of a merger,
consolidation or similar transaction. 
Notwithstanding the foregoing, a Change of Control shall not be deemed
to occur (A) on account of the acquisition of securities of the Company by
an investor, any affiliate thereof or any other person from the Company in a
transaction or series of related transactions the primary purpose of which is
to obtain financing for the Company through the issuance of equity securities
or (B) solely because the level of Ownership held by any person (the “Subject

 

1

 

Person”) exceeds the
designated percentage threshold of the outstanding voting securities as a
result of a repurchase or other acquisition of voting securities by the Company
reducing the number of shares outstanding, provided that if a Change of Control
would occur (but for the operation of this sentence) as a result of the
acquisition of voting securities by the Company, and after such share
acquisition, the Subject Person becomes the owner of any additional voting
securities that, assuming the repurchase or other acquisition had not occurred,
increases the percentage of the then outstanding voting securities Owned by the
Subject Person over the designated percentage threshold, then a Change of
Control shall be deemed to occur;

 

(ii)                                there is
consummated a merger, consolidation or similar transaction involving (directly
or indirectly) the Company and, immediately after the consummation of such
merger, consolidation or similar transaction, the stockholders of the Company
immediately prior thereto do not Own, directly or indirectly, either (A) outstanding
voting securities representing more than fifty percent (50%) of the combined
outstanding voting power of the surviving entity in such merger, consolidation
or similar transaction or (B) more than fifty percent (50%) of the
combined outstanding voting power of the parent of the surviving entity in such
merger, consolidation or similar transaction, in each case in substantially the
same proportions as their Ownership of the outstanding voting securities of the
Company immediately prior to such transaction;

 

(iii)                            the
stockholders of the Company approve or the Board approves a plan of complete
dissolution or liquidation of the Company, or a complete dissolution or
liquidation of the Company shall otherwise occur;

 

(iv)                               there is
consummated a sale, lease, license or other disposition of all or substantially
all of the consolidated assets of the Company and its Subsidiaries, other than
a sale, lease, license or other disposition of all or substantially all of the
consolidated assets of the Company and its Subsidiaries to an Entity, more than
fifty percent (50%) of the combined voting power of the voting securities of
which are Owned by stockholders of the Company in substantially the same
proportions as their Ownership of the Company immediately prior to such sale,
lease, license or other disposition.

 

(v)                                   individuals
who, on the date this Plan is adopted by the Board, are members of the Board
(the “Incumbent Board”)
cease for any reason to constitute at least a majority of the members of the
Board; provided, however, that if
the appointment or election (or nomination for election) of any new Board
member was approved or recommended by a majority vote of the members of the
Incumbent Board then still in office, such new member shall, for purposes of
this Plan, be considered as a member of the Incumbent Board.

 

For the avoidance of doubt, the term Change of Control
shall not include a sale of assets, merger or other transaction effected
exclusively for the purpose of changing the domicile of the Company. Once a
Change of Control has occurred, no future events shall constitute a Change of
Control for purposes of the Plan.

 

 

(d)                                  “COBRA” means the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

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

 

(f)                                    “Company” means
Synopsys, Inc. or, following a Change of Control, the surviving entity
resulting from such transaction.

 

(g)                                 “Constructive Termination”
means a termination of employment by an Eligible Employee within sixty (60)
days after one of the following is undertaken without the Eligible Employee’s
express written consent:

 

(i)                                    the Company
significantly reduces the Eligible Employee’s duties, authority or
responsibilities, relative to the Eligible Employee’s duties, authority or
responsibilities as in effect immediately prior to such reduction, taken as a whole;
provided, however, that a change
in the Eligible Employee’s title shall not be taken into account in determining
if the Eligible Employee’s duties, authority or responsibilities have been
reduced for the purposes of this Section 2(g)(i);

 

(ii)                                the Company
reduces the Eligible Employee’s Base Salary, unless such reduction is made in
connection with an across-the-board reduction of substantially all executives’
annual base salaries including those of the acquiring company;

 

(iii)                            a relocation of
an Eligible Employee’s primary business office to a location more than
seventy-five (75) miles from the location at which the Eligible Employee
predominately performed duties as of the effective date of the Change of
Control, except for required travel by the Eligible Employee on the Company’s
business to an extent substantially consistent with the Eligible Employee’s
business travel obligations prior to the Change of Control.

 

Notwithstanding the foregoing, a termination shall not
constitute a Constructive Termination based on conduct described above unless (A) within
the thirty (30) day period following the occurrence  of the conduct, the Eligible Employee
provides the Chief Executive Officer of the Company with written notice
specifying (x) the particulars of the conduct and (y) that the
Eligible Employee deems such conduct to be described in (i), (ii) or (iii) of
this Section 2(g), and (B) the conduct described has not been cured
within thirty (30) days following receipt by the Chief Executive Officer of
such notice.

 

(h)                                 “Covered Termination”
means either (A) an Involuntary Termination Without Cause which occurs
within thirty (30) days prior to or twelve (12) months following the effective
date of a Change of Control, or (B) a Constructive Termination which occurs
within twelve (12) months following the effective date of a Change of
Control.  Termination of employment of an
Eligible Employee due to death or disability shall not constitute a Covered
Termination unless a voluntary termination of employment by the Eligible
Employee immediately prior to the Eligible Employee’s death or disability would
have qualified as a Constructive Termination. 
For purposes of the Plan, an event constituting a Covered Termination
shall satisfy the

 

 

requirements of a “separation from service” within the meaning of Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”) and Section 1.409A-1(h) of
the regulations promulgated under the Code or any successor regulations.

 

(i)                                    “Eligible Employee”  means an employee of the Company (A) who
has been designated by the Board as an “officer” under Section 16 of the
Securities Exchange Act of 1934; (B) who has received, signed and timely
returned a Participation Notice; and (C) whose employment with the Company
terminates due to a Covered Termination.

 

(j)                                    “Entity” means a
corporation, partnership or other entity.

 

(k)                                “ERISA”  means the Employee Retirement Income
Security Act of 1974, as amended.

 

(l)                                    “Involuntary Termination Without
Cause” means a termination by the Company of an Eligible
Employee’s employment relationship with the Company for any reason other than
the following:

 

(i)                                    the Eligible
Employee has committed an act of personal dishonesty in connection with the
Eligible Employee’s responsibilities as a Company employee;

 

(ii)                                the Eligible
Employee commits a felony or any act of moral turpitude;

 

(iii)                            the Eligible
Employee commits any willful or grossly negligent act that constitutes gross
misconduct and/or injures, or is reasonably likely to injure,  the Company; or

 

(iv)                               the Eligible
Employee substantially fails to perform the Eligible Employee’s job duties
and/or willfully and materially violates (A) any written policies or
procedures of the Company or (B) the Eligible Employee’s obligations to
the Company and that violation, if curable, continues for a period of thirty
(30) days after the Company provides the Eligible Employee written notice that
describes the basis for the Company’s belief that the Eligible Employee has not
substantially performed the Eligible Employee’s duties and/or willfully and
materially violated (x) any written policies or procedures of the Company
or (y) the Eligible Employee’s obligations to the Company.

 

(m)                              “Own,” “Owned,” “Owner,” “Ownership” A person
or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or
to have acquired “Ownership” of securities if such person or Entity, directly
or indirectly, through any contract, arrangement, understanding, relationship
or otherwise, has or shares voting power, which includes the power to vote or
to direct the voting, with respect to such securities.

 

(n)                                 “Participation Notice”
means the latest notice delivered by the Company to an employee informing the
employee that the employee is a participant in the Plan.  A Participation Notice shall be in such form
as may be determined by the Company. 
Notwithstanding the foregoing, neither the Company nor any successor may
amend a Participation Notice in any way that is adverse to a participant, without
the written consent of 

 

 

the participant, unless the amendment is made more than nine  (9) months prior to an applicable
Change of Control.

 

(o)                                  “Plan Administrator”
means the Board or any committee duly authorized by the Board to administer the
Plan.  The Plan Administrator may, but is
not required to be, the Compensation Committee of the Board.  The Board may at any time administer the
Plan, in whole or in part, notwithstanding that the Board has previously
appointed a committee to act as the Plan Administrator.

 

(p)                                  “Subsidiary” means,
with respect to the Company, (A) any corporation of which more than fifty
percent (50%) of the outstanding capital stock having ordinary voting power to
elect a majority of the board of directors of such corporation (irrespective of
whether, at the time, stock of any other class or classes of such corporation
shall have or might have voting power by reason of the happening of any
contingency) is at the time, directly or indirectly, Owned by the Company, and (B) any
partnership in which the Company has a direct or indirect interest (whether in
the form of voting or participation in profits or capital contribution) of more
than fifty percent (50%).

 

SECTION 3.                            ELIGIBILITY
FOR BENEFITS.

 

(a)                                  General Rules.  Subject to
the limitations set forth in this Section 3 and Section 5, in the
event of a Covered Termination, the Company shall provide the severance
benefits described in Section 4 to each affected Eligible Employee.

 

(b)                                  Exceptions to Benefit Entitlement.  An employee, including an employee who
otherwise is an Eligible Employee, will not receive benefits under the Plan (or
will receive reduced benefits under the Plan) in the following circumstances,
as determined by the Plan Administrator in its sole discretion:

 

(i)                                    The employee’s
employment terminates or is terminated for any reason other than a Covered
Termination.

 

(ii)                                The employee
resigns his or her employment with the Company in order to accept employment
with another entity that is controlled (directly or indirectly) by the Company
or is otherwise an affiliate of the Company.

 

(iii)                            The employee
does not confirm in writing that he or she shall be subject to the provisions
of Section 5(f), the employee’s proprietary information agreement with the
Company or the employee’s confidentiality agreement with the Company.

 

(iv)                               The employee is
rehired by the Company prior to the date benefits under the Plan are scheduled
to be paid or otherwise commence.

 

(v)                                   The employee is
offered an identical or substantially equivalent or comparable position with
the Company or a successor pursuant to a Change of Control.  For purposes of the foregoing, a “substantially
equivalent or comparable position” is one that offers 

 

 

the employee substantially the same level of responsibility and
compensation; provided, however, that
an employee shall not be considered to be offered a “substantially equivalent
or comparable position” if a resignation by the employee would constitute a
Constructive Termination.

 

(c)                                  Termination or Return of Benefits.  An Eligible Employee’s right to receive
benefits under this Plan shall terminate immediately (and any benefits received
pursuant to this Plan shall be immediately returned to the Company) if, at any
time prior to or during the eighteen (18) month period following a Change of
Control, the Eligible Employee, without the prior written approval of the Plan
Administrator:

 

(i)                                    willfully
breaches a material provision of the Eligible Employee’s proprietary
information or confidentiality agreement with the Company, as referenced in Section 3(b)(iii);

 

(ii)                                encourages or
solicits any of the Company’s then current employees to leave the Company’s
employ for any reason or interferes in any other manner with employment
relationships at the time existing between the Company and its then current
employees;

 

(iii)                            uses the
Company’s proprietary or confidential information to induce any of the Company’s
then current clients, customers, suppliers, vendors, distributors, licensors,
licensees or other third party to terminate or materially diminish their existing
business relationship with the Company or interferes in any other manner with
any existing business relationship between the Company and any then current
client, customer, supplier, vendor, distributor, licensor, licensee or other
third party; or

 

(iv)                               willfully
breaches a material provision of Section 5(f).

 

SECTION 4.                            AMOUNT OF
BENEFITS.  In the event an Eligible Employee incurs a
Covered Termination, the Eligible Employee shall receive the benefits set forth
in this Section 4, subject, however, to the payment provisions set forth
in Section 6 and the other limitations and exclusions set forth in this
Plan.

 

(a)                                  Cash Severance Benefits.  Except as otherwise provided herein, the
Company shall make four equal quarterly cash severance payments to each Eligible
Employee in an amount equal to the sum of (i) one-fourth the Eligible
Employee’s Base Salary, as in effect on the date of a Covered Termination, or,
if higher, as in effect immediately prior to the Change of Control, plus (ii) an
additional payment equal to one-fourth of the product of (i) the Eligible
Employee’s annual target bonus at 100% achievement, as in effect on the date of
a Covered Termination, or, if higher, as in effect immediately prior to the
Change of Control multiplied by (ii) a fraction (x) the numerator of
which is the sum of 365 plus the number of calendar days of service actually
served by the Eligible Employee in the fiscal year of the Company in which such
termination occurs and (y) the denominator of which is 365 (e.g., if a qualifying
termination occurs effective May 31st of a given year and the Company’s
bonus program is based on an 

 

 

October 31 fiscal year end, the payment pursuant to this Section 4(a) will
equal the full bonus for the fiscal year of termination at 100% of target,
regardless of the Company’s actual performance, multiplied by (365 +
212)/365)), such payments to be due on the last day of the third, sixth, ninth
and twelfth months following the date of the Covered Termination, provided, however, that if any such
payment would otherwise be due on a date that is later than the 15th
day of the third month following the end of the fiscal year in which an
Eligible Employee’s Covered Termination occurs, such payment shall instead be
made on or prior to the 15th day of the third month following the
end of the fiscal year in which an Eligible Employee’s Covered Termination
occurs.  For the avoidance of doubt, it
is the intent of this Section 4(a) to provide a cash severance
benefit equal to 100% of the Base Salary (as modified) plus 100% of the target
bonus for the year of the Covered Termination plus a prorated target bonus (so
that the total bonus is between 100% and 200% of the target bonus regardless of
actual over or under achievement of performance targets).

 

(b)                                  Health Continuation Coverage.

 

(i)                                    Provided that
the Eligible Employee is eligible for, and has made an election at the time of
the Covered Termination pursuant to COBRA under a health, dental, or vision
plan sponsored by the Company, each such Eligible Employee shall be entitled to
receive a lump-sum payment equal to the amount of the COBRA premiums (inclusive
of premiums for the Eligible Employee’s dependents for such health, dental, or
vision plan coverage as in effect immediately prior to the date of the Covered
Termination) necessary to maintain such health, dental, or vision plan coverage
for a period of twelve (12) months following the date of the Covered
Termination.  Such lump-sum payment shall
be made on or prior to the 15th day of the third month following the
end of the fiscal year in which the Employee’s Covered Termination occurs.  The Eligible Employee shall be solely
responsible for making the payments required under the COBRA coverage elected
by the Eligible Employee.

 

(ii)                                For purposes of
this Section 4(b), (A) references to COBRA shall be deemed to refer
also to analogous provisions of state law, and (B) any applicable
insurance premiums that are paid by the Company shall not include any amounts
payable by the Eligible Employee under an Internal Revenue Code Section 125
health care reimbursement plan, which amounts, if any, are the sole
responsibility of the Eligible Employee.

 

(c)                                  Vesting Acceleration.  Effective upon
the Covered Termination, all Company stock awards, including options, restricted
stock, stock appreciation rights and any other form of performance-based equity
award, then held by the Eligible Employee shall vest in full and become fully
exercisable as of the date of such Covered Termination (subject, if applicable,
to the exercise period post-termination set forth in the applicable option
agreement, or if none is stated, in the plan(s) pursuant to which such
options were granted).

 

(d)                                  Other Employee Benefits.  All other
benefits (such as life insurance, disability coverage, and 401(k) plan
coverage) shall terminate as of the Eligible Employee’s termination date
(except to the extent that a conversion privilege may be available thereunder).

 

 

(e)                                  Additional Benefits.  Notwithstanding
the foregoing, the Plan Administrator may, in its sole discretion, provide
benefits in addition to those pursuant to Sections 4(a), 4(b), and 4(c) to
Eligible Employees, or to employees who are not Eligible Employees but for whom
there has been a termination of employment that would be a Covered Termination
if such employee were an Eligible Employee (“Non-Eligible Employees”), chosen by the
Plan Administrator, in its sole discretion, and the provision of any such
benefits to an Eligible Employee or a Non-Eligible Employee shall in no way
obligate the Company to provide such benefits to any other Eligible Employee or
to any other Non-Eligible Employee, even if similarly situated.  If benefits under the Plan are provided to a
non-Eligible Employee, references in the Plan to “Eligible Employee” (with the
exception of Sections 4(a), 4(b), and 4(c)) shall be deemed to refer to such
Non-Eligible Employee.  Any benefits paid
pursuant to this Section 4(e) shall be paid not later than the 15th
day of the third month following the end of the fiscal year in which the
Eligible Employee’s Covered Termination, or Non-Eligible Employee’s termination
of employment, occurs.

 

SECTION 5.                            LIMITATIONS
ON BENEFITS.

 

(a)                                  Release.  In order to
be eligible to receive benefits under the Plan, an Eligible Employee must
execute the Company’s standard (and then-current) severance agreement and
general release, and such release must become effective in accordance with its
terms.  Unless a Change of Control has
occurred, the Plan Administrator, in its sole discretion, may modify the form
of the required release to comply with applicable law and shall determine the
form of the required release, which may be incorporated into a termination
agreement or other agreement with the Eligible Employee.

 

(b)                                  Certain Reductions.  The
Plan Administrator, in its sole discretion, shall have the authority to reduce
an Eligible Employee’s severance benefits, in whole or in part, by any other
severance benefits, pay in lieu of notice, or other similar benefits payable to
the Eligible Employee by the Company that become payable in connection with the
Eligible Employee’s termination of employment pursuant to (i) any
applicable legal requirement, including, without limitation, the Worker
Adjustment and Retraining Notification Act (the “WARN Act”), (ii) a written
employment or severance agreement with the Company, or (iii) any Company
policy or practice providing for the Eligible Employee to remain on the payroll
for a limited period of time after being given notice of the termination of the
Eligible Employee’s employment.  The
benefits provided under this Plan are intended to satisfy, in whole or in part,
any and all statutory obligations that may arise out of an Eligible Employee’s
termination of employment, and the Plan Administrator shall so construe and implement
the terms of the Plan.  The Plan
Administrator’s decision to apply such reductions to the severance benefits of
one Eligible Employee and the amount of such reductions shall in no way
obligate the Plan Administrator to apply the same reductions in the same
amounts to the severance benefits of any other Eligible Employee, even if
similarly situated.  In the Plan
Administrator’s sole discretion, such reductions may be applied on a
retroactive basis, with severance benefits previously paid being re-characterized
as payments pursuant to the Company’s statutory obligation.

 

 

(c)                                  Parachute Payments.  Except as
otherwise provided in an agreement between an Eligible Employee and the
Company, if any payment or benefit the Eligible Employee would receive in
connection with a Change of Control from the Company or otherwise (“Payment”) would (i) constitute
a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but
for this sentence, be subject to the excise tax imposed by Section 4999 of
the Code (the “Excise
Tax”), then such Payment shall be equal to the Reduced
Amount.  The “Reduced Amount” shall be
either (x) the largest portion of the Payment that would result in no
portion of the Payment being subject to the Excise Tax, or (y) the largest
portion, up to and including the total, of the Payment, whichever amount, after
taking into account all applicable federal, state and local employment taxes,
income taxes, and the Excise Tax (all computed at the highest applicable
marginal rate), results in the Eligible Employee’s receipt, on an after-tax
basis, of the greater amount of the Payment notwithstanding that all or some
portion of the Payment may be subject to the Excise Tax. If a reduction in
payments or benefits constituting “parachute payments” is necessary so that the
Payment equals the Reduced Amount, reduction shall occur in the following order
unless the Eligible Employee elects in writing a different order (provided,
however, that such election shall be subject to Company approval if made on or
after the date on which the event that triggers the Payment occurs): (1) reduction
of cash payments; (2) cancellation of accelerated vesting of equity awards
other than stock options; (3) cancellation of accelerated vesting of stock
options; and (4) reduction of other benefits paid to an Eligible Employee.
If acceleration of vesting of compensation from an Eligible Employee’s equity
awards is to be reduced, such acceleration of vesting shall be cancelled by
first canceling such acceleration for the vesting installment that will vest
last and continuing by canceling as a first priority such acceleration for
vesting installment with the latest vesting unless the Eligible Employee elects
in writing a different order for cancellation prior to any Change of Control.

 

(d)                                  Mitigation.  Except as
otherwise specifically provided herein, an Eligible Employee shall not be
required to mitigate damages or the amount of any payment provided under this
Plan by seeking other employment or otherwise, nor shall the amount of any
payment provided for under this Plan be reduced by any compensation earned by
an Eligible Employee as a result of employment by another employer or any
retirement benefits received by such Eligible Employee after the date of the
Eligible Employee’s termination of employment with the Company, except for
health continuation coverage provided pursuant to Section 4(b).

 

(e)                                  Non-Duplication of Benefits.  Except as otherwise specifically provided for
herein, no Eligible Employee is eligible to receive benefits under this Plan
more than one time.  This Plan is
designed to provide certain severance pay and Change of Control to Eligible
Employees pursuant to the terms and conditions set forth in this Plan.  The payments pursuant to this Plan are in addition
to, and not in lieu of, any unpaid salary, bonuses or benefits to which an
Eligible Employee may be entitled for the period ending with the Eligible
Employee’s Covered Termination.

 

(f)                                    Noncompetition. To the fullest extent permitted by law, in
the event of a change of control that constitutes a transaction within the
meaning of California Business and Professions Code section 16601 between
Eligible Employee and the Company (to wit, Eligible 

 

 

Employee sells the goodwill of the Company, disposes (by merger or
otherwise) of all of his or her ownership interest in the Company, or sells all
or substantially all of the operating assets together with the goodwill of the
business or of a division or a subsidiary of the business), then at the written
request of the Company or the surviving corporation in a Change of Control, for
a period of eighteen (18) months following the effective date of the Change of
Control, the Eligible Employee shall not serve as an officer, director,
stockholder, employee, partner, proprietor, investor, joint venturer,
affiliate, agent or consultant of any other person, corporation, firm,
partnership or other entity whatsoever that competes directly or indirectly
with the Company or any Subsidiary of the Company (“Applicable Entities”)
anywhere in the world, in any line of business engaged in (or reasonably
planned to be engaged in) by the Applicable Entities immediately prior to the
effective time of the Change of Control; provided,
however, that the Eligible Employee may hold, as a passive
investment, up to (i) 2% of any class of securities of any private
enterprise (but without active participation in the activities of such
enterprise); or (ii) 1% of any class of securities of any publicly-traded
enterprise (but without active participation in the activities of such
enterprise).

 

SECTION 6.                            TIME OF
PAYMENT AND FORM OF BENEFITS.

 

(a)                                  General Rules.  Except as
otherwise provided herein, the payment of benefits in Section 4 shall be
made in accordance with and subject to the Company’s normal payroll
practices.  In no event shall payment of
any Plan benefit be made prior to the Eligible Employee’s termination date or
prior to the effective date of the release described in Section 5(a).   For the avoidance of doubt, in the event of
an acceleration of the exercisability of an option or other equity award
pursuant to Section 4(c), such option or other equity award shall not be
exercisable with respect to such acceleration of exercisability unless and
until the effective date of the release described in Section 5(a).

 

(b)                                  Application of Section 409A.  If the Plan
Administrator determines that (i) any cash severance benefit provided
under Section 4(a), (ii) any health continuation coverage provided
under Section 4(b) or (iii) any additional benefit provided
under Section 4(e) fails to satisfy the distribution requirement of Section 409A(a)(2)(A) of
the Code as a result of the application of Section 409A(a)(2)(B)(i) of
the Code, the payment of such benefit shall be delayed to the minimum extent
necessary so that such benefits are not subject to the provisions of Section 409A(a)(1) of
the Code.  The Plan Administrator may
attach conditions to or adjust the amounts paid pursuant to this Section 6(b) to
preserve, as closely as possible, the economic consequences that would have
applied in the absence of this Section 6(b); provided, however, that no such condition shall result in
the payments being subject to Section 409A(a)(1) of the Code.

 

(c)                                  Withholding.  All such
payments under the Plan will be subject to all applicable withholding
obligations of the Company, without limitation, obligations to withhold for
federal, state and local income and employment taxes.

 

(d)                                  Indebtedness of Eligible Employees. 
If an Eligible Employee is indebted to the Company on the effective
date of his or her Covered Termination, the Plan Administrator

 

 

reserves the right to offset any severance payments under the Plan by
the amount of such indebtedness.

 

SECTION 7.                            RIGHT TO
INTERPRET PLAN; AMENDMENT AND TERMINATION.

 

(a)           Exclusive
Discretion.  The Plan
Administrator shall have the exclusive discretion and authority to establish
rules, forms, and procedures for the administration of the Plan, and to
construe and interpret the Plan and to decide any and all questions of fact,
interpretation, definition, computation or administration arising in connection
with the operation of the Plan, including, but not limited to, the eligibility
to participate in the Plan and amount of benefits paid under the Plan.  The rules, interpretations, computations and
other actions of the Plan Administrator shall be binding and conclusive on all
persons.

 

(b)           Amendment
or Termination.  The Company
reserves the right to amend or terminate this Plan or the benefits provided
hereunder at any time; provided, however, that
no such amendment or termination shall occur during the period that begins nine
(9) months prior to a Change of Control and ends twelve (12) months after
such Change of Control as to any Eligible Employee who would be adversely
affected by such amendment or termination unless such Eligible Employee
consents in writing to such amendment or termination.  Any action amending or terminating the Plan
shall be in writing and executed by the Chief Executive Officer or General
Counsel of the Company.

 

SECTION 8.                            NO IMPLIED
EMPLOYMENT CONTRACT.

 

The Plan shall not be deemed (i) to give
any employee or other person any right to be retained in the employ of the
Company, or (ii) to interfere with the right of the Company to discharge
any employee or other person at any time, with or without cause, which right is
hereby reserved.

 

SECTION 9.                            LEGAL
CONSTRUCTION.

 

This Plan is intended to be governed by and
shall be construed in accordance with ERISA and, to the extent not preempted by
ERISA, the laws of the State of California.

 

SECTION 10.                     CLAIMS, INQUIRIES
AND APPEALS.

 

(a)           Applications
for Benefits and Inquiries.  Any application for benefits, inquiries about
the Plan or inquiries about present or future rights under the Plan must be
submitted to the Plan Administrator in writing by an applicant (or his or her
authorized representative).  The Plan
Administrator is set forth in Section 13(d).

 

(b)           Denial of
Claims.  In the event that any
application for benefits is denied in whole or in part, the Plan Administrator
must provide the applicant with written or electronic notice of the denial of
the application, and of the applicant’s right to review the denial.  Any electronic notice will comply with the
regulations of the U.S. Department of Labor. 
The notice

 

 

of denial will be set forth in a manner designed to be understood by
the applicant and will include the following:

 

(i)            the specific reason or
reasons for the denial;

 

(ii)           references to the specific
Plan provisions upon which the denial is based;

 

(iii)         a description of any
additional information or material that the Plan Administrator needs to
complete the review and an explanation of why such information or material is
necessary; and

 

(iv)          an explanation of the Plan’s
review procedures and the time limits applicable to such procedures, including
a statement of the applicant’s right to bring a civil action under Section 502(a) of
ERISA following a denial on review of the claim, as described in Section 10(d) below.

 

This notice of denial will be given to the
applicant within ninety (90) days after the Plan Administrator receives the
application, unless special circumstances require an extension of time, in
which case, the Plan Administrator has up to an additional ninety (90) days for
processing the application.  If an
extension of time for processing is required, written notice of the extension
will be furnished to the applicant before the end of the initial ninety (90)
day period.

 

This notice of extension will describe the
special circumstances necessitating the additional time and the date by which
the Plan Administrator is to render its decision on the application.

 

(c)           Request for
a Review.  Any person
(or that person’s authorized representative) for whom an application for
benefits is denied, in whole or in part, may appeal the denial by submitting a
request for a review to the Plan Administrator within sixty (60) days after the
application is denied.  A request for a
review shall be in writing and shall be addressed to:

 

Synopsys, Inc.

Attn:  General Counsel

700 East Middlefield Road

Mountain View, CA 94043

 

A request for review must set forth all of
the grounds on which it is based, all facts in support of the request and any
other matters that the applicant feels are pertinent.  The applicant (or his or her representative)
shall have the opportunity to submit (or the Plan Administrator may require the
applicant to submit) written comments, documents, records, and other
information relating to his or her claim. 
The applicant (or his or her representative) shall be provided, upon
request and free of charge, reasonable access to, and copies of, all documents,
records and other information relevant to his or her claim.  The review shall take into account all
comments, documents, records and other information submitted by the applicant
(or his or her representative) relating to the claim, without regard to whether
such information was submitted or considered in the initial benefit
determination.

 

 

(d)           Decision on
Review.  The Plan Administrator will
act on each request for review within sixty (60) days after receipt of the
request, unless special circumstances require an extension of time (not to
exceed an additional sixty (60) days), for processing the request for a
review.  If an extension for review is
required, written notice of the extension will be furnished to the applicant
within the initial sixty (60) day period. 
This notice of extension will describe the special circumstances
necessitating the additional time and the date by which the Plan Administrator
is to render its decision on the review. 
The Plan Administrator will give prompt, written or electronic notice of
its decision to the applicant. Any electronic notice will comply with the
regulations of the U.S. Department of Labor. 
In the event that the Plan Administrator confirms the denial of the
application for benefits in whole or in part, the notice will set forth, in a
manner calculated to be understood by the applicant, the following:

 

(i)            the specific reason or
reasons for the denial;

 

(ii)           references to the specific
Plan provisions upon which the denial is based;

 

(iii)         a statement that the
applicant is entitled to receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records and other information relevant
to his or her claim; and

 

(iv)          a statement of the applicant’s
right to bring a civil action under Section 502(a) of ERISA.

 

(e)           Rules and
Procedures.  The Plan
Administrator will establish rules and procedures, consistent with the
Plan and with ERISA, as necessary and appropriate in carrying out its
responsibilities in reviewing benefit claims. 
The Plan Administrator may require an applicant who wishes to submit
additional information in connection with an appeal from the denial of benefits
to do so at the applicant’s own expense.

 

(f)            Exhaustion
of Remedies.  No legal action
for benefits under the Plan may be brought until the applicant (i) has
submitted a written application for benefits in accordance with the procedures
described by Section 10(a) above, (ii) has been notified by the
Plan Administrator that the application is denied, (iii) has filed a
written request for a review of the application in accordance with the appeal
procedure described in Section 10(c) above, and (iv) has been
notified that the Plan Administrator has denied the appeal.  Notwithstanding the foregoing, if the Plan
Administrator does not respond to an applicant’s claim or appeal within the
relevant time limits specified in this Section 10, the applicant may bring
legal action for benefits under the Plan pursuant to Section 502(a) of
ERISA.

 

SECTION 11.                     BASIS OF PAYMENTS
TO AND FROM PLAN.

 

The Plan shall be unfunded, and all benefits
hereunder shall be paid only from the general assets of the Company.

 

 

SECTION 12.                     OTHER PLAN
INFORMATION.

 

(a)           Employer
and Plan Identification Numbers.  The Employer Identification Number assigned
to the Company (which is the “Plan Sponsor” as that term is used in ERISA) by
the Internal Revenue Service is 56-1546236. 
The Plan Number assigned to the Plan by the Plan Sponsor pursuant to the
instructions of the Internal Revenue Service is 5    .

 

(b)           Ending Date
for Plan’s Fiscal Year.  The
date of the end of the fiscal year for the purpose of maintaining the Plan’s
records is the fiscal year ending on the Saturday that is closest to October 31.

 

(c)           Agent for
the Service of Legal Process.  The agent for the service of legal process
with respect to the Plan is:

 

Synopsys, Inc.

Attn:  General Counsel

700 East Middlefield Road

Mountain View, CA 94043

 

(d)           Plan
Sponsor and Administrator.  The “Plan Sponsor” and the “Plan Administrator”
of the Plan is:

 

Synopsys, Inc.

Attn:  General Counsel

700 East Middlefield Road

Mountain View, CA 94043

 

The
Plan Sponsor’s and Plan Administrator’s telephone number is (650)
584-5000.  The Plan Administrator is the
named fiduciary charged with the responsibility for administering the Plan.

 

SECTION 13.                     STATEMENT OF
ERISA RIGHTS.

 

Participants in this Plan (which is a welfare benefit plan sponsored by
Synopsys, Inc.) are entitled to certain rights and protections under
ERISA.  If you are an Eligible Employee,
you are considered a participant in the Plan for the purposes of this Section 13
and, under ERISA, you are entitled to:

 

(a)           Receive
Information About Your Plan and Benefits

 

(i)            Examine, without charge, at
the Plan Administrator’s office and at other specified locations, such as
worksites, all documents governing the Plan and a copy of the latest annual
report (Form 5500 Series), if applicable, filed by the Plan with the U.S.
Department of Labor and available at the Public Disclosure Room of the
Employee Benefits Security Administration;

 

 

(ii)           Obtain, upon written request
to the Plan Administrator, copies of documents governing the operation of the
Plan and copies of the latest annual report (Form 5500 Series), if
applicable, and an updated (as necessary) Summary Plan Description.  The Administrator may make a reasonable
charge for the copies; and

 

(iii)         Receive a summary of the
Plan’s annual financial report, if applicable. 
The Plan Administrator is required by law to furnish each participant
with a copy of this summary annual report.

 

(b)           Prudent
Actions By Plan Fiduciaries.  In addition to creating rights for Plan
participants, ERISA imposes duties upon the people who are responsible for the
operation of the employee benefit plan. 
The people who operate the Plan, called “fiduciaries” of the Plan, have
a duty to do so prudently and in the interest of you and other Plan
participants and beneficiaries.  No one,
including your employer, your union or any other person, may fire you or otherwise
discriminate against you in any way to prevent you from obtaining a Plan
benefit or exercising your rights under ERISA.

 

(c)           Enforce
Your Rights.

 

(i)            If your claim for a Plan
benefit is denied or ignored, in whole or in part, you have a right to know why
this was done, to obtain copies of documents relating to the decision without
charge, and to appeal any denial, all within certain time schedules.

 

(ii)           Under ERISA, there are steps
you can take to enforce the above rights. 
For instance, if you request a copy of Plan documents or the latest
annual report from the Plan, if applicable, and do not receive them within 30
days, you may file suit in a Federal court. 
In such a case, the court may require the Plan Administrator to provide
the materials and pay you up to $110 a day until you receive the materials,
unless the materials were not sent because of reasons beyond the control of the
Plan Administrator.

 

(iii)         If you have a claim for
benefits which is denied or ignored, in whole or in part, you may file suit in
a state or Federal court.

 

(iv)          If you are discriminated
against for asserting your rights, you may seek assistance from the U.S.
Department of Labor, or you may file suit in a Federal court.  The court will decide who should pay court
costs and legal fees.  If you are
successful, the court may order the person you have sued to pay these costs and
fees.  If you lose, the court may order
you to pay these costs and fees, for example, if it finds your claim is
frivolous.

 

(d)           Assistance
With Your Questions.  If you have
any questions about the Plan, you should contact the Plan Administrator.  If you have any questions about this
statement or about your rights under ERISA, or if you need assistance in
obtaining documents from the Plan Administrator, you should contact the nearest
office of the Employee Benefits Security Administration, U.S. Department of
Labor, listed in your telephone directory or the Division of Technical
Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department

 

 

of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.  You may also obtain certain publications
about your rights and responsibilities under ERISA by calling the publications
hotline of the Employee Benefits Security Administration.

 

SECTION 14.                     GENERAL
PROVISIONS.

 

(a)           Notices.  Any notice, demand or
request required or permitted to be given by either the Company or an Eligible
Employee pursuant to the terms of this Plan shall be in writing and shall be
deemed given when delivered personally or deposited in the U.S. mail, First Class with
postage prepaid, and addressed to the parties, in the case of the Company, at
the address set forth in Section 12(d) and, in the case of an
Eligible Employee, at the address as set forth in the Company’s employment file
maintained for the Eligible Employee as previously furnished by the Eligible
Employee or such other address as a party may request by notifying the other in
writing.

 

(b)           Transfer
and Assignment.  The rights and
obligations of an Eligible Employee under this Plan may not be transferred or
assigned without the prior written consent of the Company.  This Plan shall be binding upon any surviving
entity resulting from a Change of Control and upon any other person who is a
successor by merger, acquisition, consolidation or otherwise to the business
formerly carried on by the Company without regard to whether or not such person
or entity actively assumes the obligations hereunder.

 

(c)           Waiver.  Any Party’s failure to
enforce any provision or provisions of this Plan shall not in any way be
construed as a waiver of any such provision or provisions, nor prevent any
Party from thereafter enforcing each and every other provision of this
Plan.  The rights granted the Parties
herein are cumulative and shall not constitute a waiver of any Party’s right to
assert all other legal remedies available to it under the circumstances.

 

(d)           Severability.  Should any provision of this
Plan be declared or determined to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired.

 

(e)           Section Headings.  Section headings in
this Plan are included for convenience of reference only and shall not be
considered part of this Plan for any other purpose.

 

 

SECTION 15.                     EXECUTION.

 

To record the amendment and restatement of
the Plan as set forth herein, Synopsys, Inc. has caused its duly
authorized officer to execute the same as of the date set forth below.

 

	
   

  	
  SYNOPSYS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
				

 

 

SYNOPSYS, INC.

 

AMENDED AND RESTATED EXECUTIVE CHANGE OF
CONTROL SEVERANCE BENEFIT PLAN

 

PARTICIPATION NOTICE

 

To:

 

	
  Date:

  	
   

  	
   

  

 

Synopsys, Inc. (the “Company”) has adopted the Synopsys, Inc.
Amended and Restated Executive Change of Control Severance Benefit Plan (the “Plan”).  The Company is providing you with this
Participation Notice to inform you that you qualify as a participant in the
Plan.  A copy of the Plan document is
attached to this Participation Notice. [Except as provided below, the][The]
terms and conditions of your participation in the Plan are as set forth in the
Plan, and in the event of any conflict between this Participation Notice and
the Plan, the terms of the Plan shall prevail.

 

[Your participation in the Plan is modified as follows:
                                              ]

 

Please retain a copy of this Participation Notice, along with the Plan
document, for your records.

 

	
   

  	
  SYNOPSYS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  

 

 

ACKNOWLEDGEMENT

 

The undersigned hereby acknowledges receipt of the foregoing
Participation Notice.    The undersigned
acknowledges that the undersigned has been advised to obtain tax and financial
advice regarding the consequences of participating in the Plan, including the
effect, if any, of Sections 409A and 4999 of the Internal Revenue Code.  The undersigned further acknowledges that the
undersigned has no severance benefits [(other than with respect to awards under
the            Plan)] except
as provided by the attached Plan.

 

	
   

  	
   

  
	
   

  	
   

   

  
	
   

  	
  Print name

  

 

1

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