Document:

Magma's 2005 Key Contributor Long-Term Incentive Plan

 Exhibit 10.1 
  
 Magma Design Automation, Inc. 
  
 2005 Key Contributor Long-Term Incentive Plan 
  
 Effective January 1, 2005 
  
 I. Plan Objective 
  
 The objective of Magma’s 2005 Key Contributor Long-Term Incentive Plan (“KC Incentive Plan”) is to retain and reward Magma’s key technology contributors. 
  
 II. Plan Details 
  
 A. Participants: Members of Magma’s senior management may nominate eligible individuals for participation in the KC
Incentive Plan. Magma’s Chief Executive Officer and the President will determine which nominated individuals will participate in the KC Incentive Plan (“Participants”) and the amount of their awards. However, eligible employees who
are executive officers of Magma must be nominated by Magma’s Chief Executive Officer and Magma’s President and their appointments as Participants, in addition to the amounts of their awards under the KC Incentive Plan, must be approved by
the Compensation Committee of the Board of Directors. 
  
 B.
Awards: Awards under the KC Incentive Plan are made under an Award Statement in substantially the form attached hereto as Attachment A. Awards may be for cash bonuses (“Cash Awards”), for restricted stock
(“Restricted Stock Awards”), granted pursuant to Magma’s 2001 Stock Incentive Plan (which has been approved by Magma’s stockholders), or for a combination of cash and restricted stock. Awards are earned pursuant to vesting
schedules set forth in the Award Statement. 
  
 C. Eligibility and
Performance Standards: Only full-time employees of Magma are eligible to participate in the KC Incentive Plan. Eligibility for the KC Incentive Plan is in the sole discretion of Magma’s management. Continued participation in the KC
Incentive Plan by any Participant, and payment or vesting of all incentive awards to that Participant, may be suspended if, and for so long as, Participant is placed on a formal Correction Action Plan or other disciplinary procedure. Reinstatement
of eligibility will be subject to management’s sole discretion and written approval. Compensation Committee approval is required with respect to any suspension or reinstatement of any Participant who is an executive officer of Magma.

  
 D. Single Plan Participation: If the Award Statement so states,
a Participant who receives a Cash Award or Restricted Stock Award (collectively, “Award(s)”) under the KC Incentive Plan will not be eligible to receive equity grants under Magma’s 2001 Stock Incentive Plan, or cash awards under other
Magma cash variable pay programs, until Participant’s Award under the KC Incentive Plan is fully vested. 
  

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 E. Accelerated Vesting in the event of Change of Control: All executive officers participating in the KC
Incentive Plan and certain other participants who receive a Restricted Stock Award will have the following Change in Control provision in his/her Award Statement: 
  
 In the event of a Change of Control, 25% of the remaining shares of unvested restricted stock issued under this Award
Statement shall immediately vest. Further, in the event that the Participant is Involuntarily Terminated prior to the first anniversary of the Change of Control, 50% of the remaining shares unvested restricted stock issued under this Award Statement
shall immediately vest, provided that such acceleration would not result in the underlying options becoming subject to variable award accounting or in any other adverse accounting effects. 
  
 “Change of Control” has the same meaning that such term has in
Magma’s 2001 Stock Incentive Plan. 
  
 “Involuntary
Termination” means any termination without Cause as well as any instance of Constructive Termination. 
  
 “Constructive Termination” shall be deemed to occur when the only position available at the successor or surviving company entails (i) a relocation of more than 50 miles, (ii) a reduction in base pay, or (iii) a unilateral change by the successor or
surviving company (or its parent) in Participant’s duties to non-executive level duties (in the case of an executive officers) or non-management level duties (in the case of other management employees); provided, however, that a
Participant’s duties shall not be deemed non-executive (in the case of executive officers), or non-management (in the case of management employees), level duties if they involve duties as to the Magma division or subsidiary of the successor or
surviving company (or its parent) that are comparable in scope to Participant’s duties at Magma immediately prior to the related Change of Control and in the case of managerial level employees, a Participant’s duties shall not be deemed
non-managerial if they involve duties as to the Magma division or subsidiary of the successor or surviving company (or its parent) that are comparable in scope to Participant’s duties at Magma immediately prior to the related Change of Control.

  
 “Cause” means termination of a Participant’s
employment for: (i) continued failure to substantially perform Participant’s duties, which standard duties shall be referenced to the standards set by Magma at the date of Participant’s Award Statement (other than as a result of
Participant’s sickness, accident or similar cause beyond Participant’s control) after receipt of a written warning and Participant being given thirty (30) days to cure such failure; (ii) willful misconduct or gross negligence, which is
demonstrably injurious to the Magma or any of its subsidiaries, including without limitation willful or grossly negligent failure to perform Participant’s material duties as an officer or employee of Magma or 
  

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 any of its subsidiaries or a material breach of the KC Incentive Plan, Participant’s employment
agreement (if any) or Participant’s Proprietary Information and Inventions Agreement with Magma; (iii) conviction of or plea of nolo contendere to a felony; or (iv) commission of an act of fraud against, or the misappropriation of property
belonging to, Magma or any affiliated company, employee, customer or supplier of Magma. 
  
 No provision of any Award Statement may be inconsistent with applicable law and to the extent a provision of any such Award Statement is determined by Magma’s Board of Directors, or a committee thereof, to
violate the law or create material adverse legal, financial, or regulatory problems, such provision shall not apply. 
  
 F. Recoverable Cash Advances: Cash Awards or portions thereof, are earned as of the date set forth in the Award Statement. Cash Awards, or portions thereof, if
received by the Participant prior to the date earned, are deemed recoverable by Magma (“Recoverable Advances”). If Participant’s employment with Magma terminates for any reason before the date that a Cash Award, or a portion thereof
is earned, Recoverable Advances will be deducted from the employee’s final paycheck(s), including base pay/salary, vacation and/or other earnings due to employees at the time of termination. Should Participant’s final paycheck(s) not cover
the amounts due to Magma, Participant and Magma will work towards a mutually agreeable repayment plan. In any event, Participant shall be personally liable for Recoverable Advances. 
  
 G. Amendment or Termination of Plan: The KC Incentive Plan may be amended or terminated by Magma’s Board of Directors or the
Committee at any time. 
  
 H. No Obligation to Employ: Eligibility
for participation in KC Incentive Plan is not evidence of, nor does it constitute, a contract of employment between Magma and any Participant. Nothing in this KC Incentive Plan will confer or be deemed to confer on any individual any right to
continue in the employ of Magma or limit in any way the right of Magma to terminate an individual’s employment at any time, with or without Cause. 
  
 I. Headings: The headings of the sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning
thereof. 
  
 J. Withholding of Taxes: To the extent that Magma is
required to withhold federal, state, local or foreign taxes in connection with any benefit realized by a Participant under the KC Incentive Plan, and the amounts available to Magma for such withholding are insufficient, it will be a condition to the
realization of such benefit that such Participant make arrangements satisfactory to Magma for payment of the balance of such taxes required or requested to be withheld. 
  
 K. Choice of Law: All questions concerning the construction, validity and interpretation of the KC Incentive Plan or any Award
Statement will be governed by the law of the State of California. Any Award granted under the KC Incentive Plan will not be effective unless such Award is made in compliance with all applicable laws, rules and regulations. 
  

 3 

 III. Confidential Compensation Policy 
  
 Magma is committed to fair and competitive compensation practices, and to protection of confidential employee information. All compensation
information discussed, presented or agreed upon during the hiring, promotion and retention of employees are strictly confidential except to the extent disclosure is required by law or regulation. Any unauthorized discussion or dissemination of
confidential compensation information by an employee will immediately disqualify that employee from participation in the KC Incentive Plan and can subject the employee to appropriate disciplinary action, up to and including termination of
employment. 
  

 4 

 ATTACHMENT A 
  
 Magma Design Automation 
  
 2005 Key Contributor Long-Term Incentive Plan Award Statement 
  
 Additional terms of this Award Statement are set forth in the 2005 Key Contributor Long-Term Incentive Plan. All capitalized
terms not defined herein shall have the same meaning as set forth in the KC Incentive Plan. 
  
 I. Award Summary 
  
 A. Participant: [name] 
  
 B.
Award Effective Date: [date] 
  
 C. Award
Details: As a participant in the KC Incentive Plan, Participant is eligible to receive the following incentive award over the vesting and payment schedule set forth below: 
  
 CASH AWARD: Subject to the terms of the KC Incentive Plan and this Award Statement, the following amounts of
incentive compensation shall be paid in cash on the dates indicated below [OPTIONAL, USED IF AWARDS ARE PAID BEFORE EARNED], [subject to recovery of Recoverable Advances]. 
  

					
	 DATE EARNED

	  	 DATE PAYABLE

	  	 PAYMENT

	 	  	 	  	$                    

  
 RESTRICTED STOCK
AWARD: Subject to the terms of the KC Incentive Plan and this Award Statement, the following quantity of restricted stock shall be granted to Participant under Magma’s 2001 Stock Incentive Plan. The grant date shall be [month, date
200    ]. The number of shares to be granted to Participant shall be determined by dividing the total value below by the closing price per share of Magma common stock as quoted on the NASDAQ stock market on the grant
date. Vesting schedule and date are set forth below; all other terms shall be as set forth in the restricted stock agreement under Magma’s 2001 Equity Incentive Plan.  

					
	 TOTAL VALUE

	  	 Vesting Schedule

	  	 VESTING DATE

	 	  	 	  	 
	 	  	 	  	 

  
 II. Plan Conditions

  
 A. [OPTIONAL ALTERNATIVE PROVISIONS]

  
 [Alternative 1] [Single Plan Participation: Participant
will not be eligible to receive equity grants under Magma’s 2001 Stock Incentive Plan, or cash awards under other Magma cash variable pay programs, until all Awards summarized above are fully vested]. 
  
 [Alternative 2] [Eligibility for Other Compensation Plans: Participant
acknowledges that, until all Awards summarized above are fully vested, Participant may not be eligible to receive equity grants under Magma’s 2001 Stock Incentive Plan, or cash awards under other Magma cash variable pay programs].

  
 B. [OPTIONAL] Change of Control Provisions: The
following provisions will apply to Restricted Stock Awards upon a Change of Control: 
  
 In the event of a Change of Control, 25% of the remaining shares of unvested restricted stock issued under this Award Statement shall immediately vest. Further, in the event that the Participant is Involuntarily
Terminated prior to the first anniversary of the Change of Control, 50% of the remaining shares unvested restricted stock issued under this Award Statement shall immediately vest, provided that such acceleration would not result in the underlying
options becoming subject to variable award accounting or in any other adverse accounting effects. 
  
 “Change of Control” has the same meaning that such term has in Magma’s 2001 Stock Incentive Plan. 
  
 “Involuntary Termination” means any termination without Cause as
well as any instance of Constructive Termination. 
  
 “Constructive Termination” shall be deemed to occur when the only position available at the
successor or surviving company entails (i) a relocation of more than 50 miles, (ii) a reduction in base pay, or (iii) a unilateral change by the successor or surviving company 
  

 2 

 (or its parent) in Participant’s duties to non-executive level duties (in the case of an executive
officers) or non-management level duties (in the case of other management employees); provided, however, that a Participant’s duties shall not be deemed non-executive (in the case of executive officers), or non-management (in the case of
management employees), level duties if they involve duties as to the Magma division or subsidiary of the successor or surviving company (or its parent) that are comparable in scope to Participants duties at Magma immediately prior to the related
Change of Control and in the case of managerial level employees, a Participant’s duties shall not be deemed non-managerial if they involve duties as to the Magma division or subsidiary of the successor or surviving company (or its parent) that
are comparable in scope to Participant’s duties at Magma immediately prior to the related Change of Control.. 
  
 “Cause” means termination of a Participant’s employment for: (i) continued failure to substantially perform Participant’s duties,
which standard duties shall be referenced to the standards set by Magma at the date of Participant’s Award Statement (other than as a result of Participant’s sickness, accident or similar cause beyond Participant’s control) after
receipt of a written warning and Participant being given thirty (30) days to cure such failure; (ii) willful misconduct or gross negligence, which is demonstrably injurious to the Magma or any of its subsidiaries, including without limitation
willful or grossly negligent failure to perform Participant’s material duties as an officer or employee of Magma or any of its subsidiaries or a material breach of the KC Incentive Plan, Participant’s employment agreement (if any) or
Participant’s Proprietary Information and Inventions Agreement with Magma; (iii) conviction of or plea of nolo contendere to a felony; or (iv) commission of an act of fraud against, or the misappropriation of property belonging to, Magma or any
affiliated company, employee, customer or supplier of Magma. 
  
 No provision of any Award Statement may be inconsistent with applicable law and to the extent a provision of any such Award Statement is determined by Magma’s Board of Directors, or a committee thereof, to violate the law or create
material adverse legal, financial, or regulatory problems, such provision shall not apply. 
  
 C. [OPTIONAL, USED IF AWARDS ARE PAID BEFORE EARNED] Recoverable Cash Advances: Cash Awards or portions thereof, are earned as of the date set forth in the Award Statement. Cash Awards, or
portions thereof, if received by the Participant prior to the date earned, are deemed recoverable by Magma (“Recoverable Advances”). If Participant’s employment with Magma terminates for any reason before the date that a Cash Award,
or a portion thereof is earned, Recoverable Advances will be deducted from the employee’s final paycheck(s), including base pay/salary, vacation and/or other earnings due to employees at the time of termination. Should Participant’s final
paycheck(s) not cover the amounts due to Magma, Participant and Magma will work towards a mutually agreeable repayment plan. In any event, Participant shall be personally liable for Recoverable Advances. 
  

 3 

 III. Confidential Compensation Policy 
  
 Magma is committed to fair and competitive compensation practices, and to protection of confidential employee information.
All compensation information discussed, presented or agreed upon during the hiring, promotion and retention of employees are strictly confidential except to the extent disclosure is required by law or regulation. Any unauthorized discussion or
dissemination of confidential compensation information by an employee will immediately disqualify that employee from participation in the KC Plan Incentive Plan and can subject the employee to appropriate disciplinary action, up to and including
termination of employment. 
  
 By signing below, Participant
acknowledges that he/she (i) understands that this Award Statement are confidential and agrees not to disclose the terms of this Award Statement and (ii) acknowledges that he/she has received a copy of the KC Incentive Plan and that the KC Incentive
Plan governs the terms of this Award Statement. 
  
 AGREED: 
  
  

			
	
 Participant
	 	 
	  

 On
behalf of Magma Design Automation, Inc.
	 	
 Date

	  

 Print
Name and Title
	 	 

  
 [Signature page to
Award Statement of KC Incentive Plan.] 
  

 4Form of Notice and Agreement for other than Executive Officers

 Exhibit 10.2 
  
 MAGMA DESIGN AUTOMATION, INC. 
  

2001 STOCK INCENTIVE PLAN 
  
 NOTICE OF RESTRICTED SHARE AWARD 
 (other
than Executive Officers) 
  
 You have been granted an award of
Restricted Shares of Common Stock of Magma Design Automation, Inc. (the “Company”) under the Company’s 2001 Stock Incentive Plan (the “Plan”) on the following terms: 
  

					
	1.	  	Name of Grantee:	  	____________________________________________________
			
	2.	  	Total Number of Restricted Shares Awarded:	  	____________________________________________________
			
	3.	  	Fair Market Value per Restricted Share:	  	$___________________________________________________
			
	4.	  	Total Fair Market Value of Award:	  	$___________________________________________________
			
	5.	  	Purchase Price per Restricted Share:	  	$___________________________________________________
			
	6.	  	Total Purchase Price for all Restricted Shares:	  	$___________________________________________________
			
	7.	  	Date of Award:	  	____________________________________________________
			
	8.	  	Vesting Commencement Date:	  	____________________________________________________
			
	9.	  	Vesting Schedule:	  	 

  
 [Vesting schedule
to be provided here.] 
  
 [OPTIONAL][Notwithstanding the
foregoing vesting schedule, the Shares shall be subject to acceleration as provided for in Section 8 hereof.] 
  
 By your signature and the signature of the Company’s representative below, you and the Company agree that the Award of Restricted Shares is governed
by the terms and conditions of the Plan and the Restricted Share Agreement, which is attached hereto. 
  

			
	MAGMA DESIGN AUTOMATION, INC.
		
	 By:
	 	  

		
	 Its:
	 	  

	
	RECIPIENT:
	
	Signature___________________________________
	
	Please Print Name___________________________

  
  

 MAGMA DESIGN AUTOMATION, INC. 
  
 2001 Stock Incentive Plan 
  
 RESTRICTED SHARE AGREEMENT 
 (other than
Executive Officers) 
  
 THIS RESTRICTED SHARE AGREEMENT
(this “Agreement”) is made as of                         , 20     by and between
Magma Design Automation, Inc., a California corporation (the “Company”), and
                                        
         (“Purchaser”) pursuant to the Company’s 2001 Stock Incentive Plan (the “Plan”). To the extent any capitalized terms used in this Agreement are not defined, they shall have
the meaning ascribed to them in the Plan. 
  
 1. Sale of
Stock. Subject to the terms and conditions of this Agreement, on the Purchase Date (as defined below) the Company will issue and sell to Purchaser, and Purchaser agrees to purchase from the Company,
                     Shares at a purchase price of
$                     per Share for a total purchase price of
$                                        .
The per Share purchase price of the Shares shall be not less than the par value of the Shares as of the date of the offer of such Shares to the Purchaser. The term “Shares” refers to the purchased Shares and all securities received in
replacement of or in connection with the Shares pursuant to stock dividends or splits, all securities received in replacement of the Shares in a recapitalization, merger, reorganization, exchange or the like, and all new, substituted or additional
securities or other properties to which Purchaser is entitled by reason of Purchaser’s ownership of the Shares. 
  
 2. Time and Place of Exercise. The purchase and sale of the Shares under this Agreement shall occur at the principal office of the Company
simultaneously with the execution of this Agreement by the parties, or on such other date as the Company and Purchaser shall agree (the “Purchase Date”). On the Purchase Date, the Company will deliver to Purchaser a certificate
representing the Shares to be purchased by Purchaser (which shall be issued in Purchaser’s name) against payment of the purchase price therefor by Purchaser by (a) check made payable to the Company, (b) cancellation of indebtedness of the
Company to Purchaser, or (c) a combination of the foregoing. 
  
 3. Restrictions on Resale. By signing this Agreement, Purchaser agrees not to sell any Shares acquired pursuant to the Plan and this Agreement at a time when applicable laws, regulations or Company or underwriter trading
policies prohibit exercise or sale. This restriction will apply as long as Purchaser is providing Service to the Company or a Subsidiary of the Company. 
  
 4. Restrictive Legends and Stop Transfer Orders. 
  

4.1 Legends. The certificate or certificates representing the Shares shall bear the following legend (as well as any legends required by
applicable state and federal corporate and securities laws): 
  
 THE SHARE REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS Of AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY. 
  

 1 

 4.2 Stop-Transfer Notices. Purchaser 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. 
  
 4.3 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 the owner 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. 
  
 5. No Employment Rights. Nothing in this Agreement shall affect in any manner whatsoever the right or power of the Company, or a Parent or Subsidiary of the Company, to terminate Purchaser’s employment, for any reason, with or without cause. 
  
 6. Market Standoff Agreement. Upon request of the Company or the underwriters managing any underwritten public
offering of the Company’s securities, Purchaser agrees not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any Shares (other than those included in the registration) without the prior written
consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days) from the effective date of such registration as may be requested by the Company or such managing underwriters and to execute such
agreement reflecting the foregoing as may be requested by the underwriters at the time of the underwritten public offering. 
  
 7. Miscellaneous. 
  
 7.1 Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall
be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of law. 
  
 7.2 The Plan and Other Agreements; Enforcement of Rights. The text of the Plan and the Notice of Restricted Share Award to which this
Agreement is attached are incorporated into this Agreement by reference. This Agreement, the Plan and the Notice of Restricted Share Award to which this Agreement is attached constitute the entire agreement and understanding of the parties relating
to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning the purchase of the Restricted Shares hereunder are superseded. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing and signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver
of any rights of such party. 
  

 2 

 7.3 Severability. If one or more provisions of this Agreement are held to be unenforceable
under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i)such provision shall be excluded from this
Agreement, (ii) the balance of this Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of this Agreement shall be enforceable in accordance with its terms. 
  
 7.4 Construction. This Agreement is the result of negotiations
between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against
any one of the parties hereto. 
  
 7.5 Notices. Any
notice to be given under the terms of the Plan shall be addressed to the Company in care or its principal office, and any notice to be given to the Purchaser shall be addressed to such Purchaser at the address maintained by the Company for such
person or at such other address as the Purchaser may specify in writing to the Company. 
  
 7.6 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall he deemed an original and all of which together shall constitute one instrument. 
  
 7.7 Successors and Assigns. The rights and benefits of this
Agreement shall inure to the benefit of., and be enforceable by, the Company’s successors and assigns. The
rights and obligations of Purchaser under this Agreement may only be assigned with the prior written consent of the Company. 
  
 [OPTIONAL] 8. Acceleration Upon Change in Control. Upon a Change of Control (as defined in the Plan), 25% of the remaining unvested Shares
shall immediately vest. Further, in the event of your Involuntary Termination (as defined below) prior to the first anniversary of the Change of Control, 50% of the then remaining unvested Shares shall immediately vest, provided that such
acceleration would not result in the underlying options becoming subject to variable award accounting or in any other adverse accounting effects. “Involuntary Termination” shall mean any termination without Cause (as defined below) as well
as any instance of “Constructive Termination.” “Constructive Termination” shall be deemed to
occur when the only position available at the successor or surviving company entails (i) a relocation of more than 50 miles, (ii) a reduction in base pay, or (iii) (in the case on of a managerial level employee) a unilateral change by the successor
or surviving company (or its parent) in Participant’s duties to non-managerial level duties; provided, however, that Participant’s duties shall not be deemed non-managerial if they involve duties as to the Magma division or
subsidiary of the successor or surviving company (or its parent) that are comparable in scope to Participant’s duties at the Company immediately prior to the related Change of Control. For purposes of this section, “Cause” shall mean
(i) continued failure to perform substantially Participant’s duties, which standard of duties shall be referenced to the standards set by the Company at the date of this Agreement (other than as a result of sickness, accident or similar cause
beyond Participant’s reasonable control) after receipt of a written warning and Participant 
  

 3 

 being given thirty (30) days to cure the failure; (ii) willful misconduct or gross negligence, which is demonstrably
injurious to the Company or any of its subsidiaries, including without limitation willful or grossly negligent failure to perform Participant’s material duties as an officer or employee of the Company or any of its subsidiaries or a material
breach of this Agreement, Participant’s employment agreement (if any) or Participant’s Proprietary Information and Inventions Agreement with the Company; (iii) conviction of or plea of nolo contendere to a felony; or (iv) commission of an
act of fraud against, or the misappropriation of property belonging to, the Company or any affiliated company, employee, customer or supplier of the Company. 
  
 [Signature Page follows.] 
  

 4 

 The parties have executed this Agreement as of the date first set forth above. 
  

			
	MAGMA DESIGN AUTOMATION, INC.
		
	 By:
	 	  

		
	 Its:
	 	  

	
	RECIPIENT:                                    
                                      
 
	
	 (Signature)                                    
                                        
     

	
	 (Please Print Name)                                 
                               

  
 I,
                                        
            , spouse of
                                        
    , have read and hereby approve the foregoing Agreement. In consideration of the Company’s granting my spouse the right to purchase the Shares set forth in the Agreement, I hereby agree to be irrevocably bound by the
Agreement and further agree that any community property or other such interest shall be similarly bound by the Agreement. I hereby appoint my spouse as my attorney-in-fact with respect to any amendment or exercise of any rights under the Agreement.

  

	
	Spouse of
                                        
                            

  

 5 

 RECEIPT 
  
 Magma Design Automation, Inc. hereby acknowledges receipt of (check as applicable): 
  
  ̈ A check in the amount of
$                             
  
  ̈ The cancellation of indebtedness
in the amount of $                             
  
 given by
                                        
as consideration for Certificate No. CS-                     for
                                 shares of Common Stock of Magma Design
Automation, Inc. 
  
 Dated:
                             
  

			
	MAGMA DESIGN AUTOMATION, INC.
		
	By:	 	  

		
	Its:	 	  

 RECEIPT AND CONSENT 
  
 The undersigned hereby acknowledges receipt of a photocopy of Certificate No.
CS-                     for
                                 shares of Common Stock of Magma Design
Automation, Inc. (the “Company”) 
  
 The undersigned
further acknowledges that the Secretary of the Company, or his or her designee, is acting as escrow holder pursuant to the Restricted Shares Agreement that Purchaser has previously entered into with the Company. As escrow holder, the Secretary of
the Company, or his or her designee, holds the original of the aforementioned certificate issued in the undersigned’s name. 
  
 Dated:
                                        
         
  

	
	Signature
	
	Please Print Name

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