Document:

EX-10.17

 Exhibit 10.17 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

This Amended and Restated Employment Agreement (the “Agreement”) is made and entered into effective as of December 15,
2016 by and between Chi-Foon Chan (the “Employee”) and Synopsys, Inc., a Delaware corporation (the “Company”), and amends and restates all prior employment agreements between Employee and the Company. 

R E C I T A L S 
 A. The
Employee is and has been employed by the Company and is currently the Company’s President and Co-Chief Executive Officer. 
 B. The
Company and the Employee desire to enter into this Agreement to provide additional financial security and benefits to the Employee and to encourage the Employee to continue his employment with the Company. 

C. Certain capitalized terms used in the Agreement are defined in Section 7 below. 

A G R E E M E N T 
 In
consideration of the mutual covenants herein contained, and in consideration of the continuing employment of the Employee by the Company, the parties agree as follows: 

1. Duties and Scope of Employment. The Company shall employ the Employee in the position of President and Co-Chief Executive
Officer, as such position has been defined in terms of responsibilities and compensation as of the effective date of this Agreement. The Board of Directors (the “Board”) shall have the right, at any time prior to the occurrence of a
Change of Control, to revise such responsibilities as the Board in its discretion may deem necessary or appropriate. The Employee shall comply with and be bound by the Company’s operating policies, procedures and practices from time to time in
effect during his employment. During the term of the Employee’s employment with the Company, the Employee shall continue to devote his full time, skill and attention to his duties and responsibilities, and shall perform them faithfully,
diligently and competently, and the Employee shall use his best efforts to further the business of the Company and its affiliated entities. 

2. Base Compensation. The Company shall pay the Employee as compensation for his services a base salary at an annualized rate in
an amount to be determined from time to time by the Board or the Compensation Committee of the Board. Such salary shall be paid periodically in accordance with normal Company payroll practices. The annualized compensation specified in this
Section 2, as such compensation may be increased or decreased by the Board or the Compensation Committee, is referred to in this Agreement as “Base Compensation.” 

3. Annual Incentive. Beginning with the Company’s current fiscal year and for each fiscal year thereafter during the term of
this Agreement, the Employee shall be eligible to earn additional cash compensation under the Company’s annual incentive plan based upon specific financial and/or other targets approved by the Compensation Committee, with the target amount of
such incentive opportunity, generally determined as a percentage of Base Compensation, referred to as the “Target Incentive.” Any amount of the Target Incentive that is earned will be payable in accordance with the Company’s
normal practices and policies pursuant to the terms of the annual incentive plan. 
 4. Employee Benefits. The Employee shall be
eligible to participate in the employee benefit plans and executive compensation programs maintained by the Company applicable to other key executives of the Company, including (without limitation) retirement plans, savings or profit-sharing plans,
stock option, incentive or other bonus plans, life, disability, health, accident and other insurance programs, paid vacations, and similar plans or programs, subject in each case to (a) the generally applicable terms and conditions of the
applicable plan or program in question and (b) the sole determination of the Board or any committee administering such plan or program. 

5. Employment Relationship. The Company and the Employee acknowledge that the Employee’s employment is and shall continue to
be at-will, as defined under applicable law. If the Employee’s employment terminates for any reason, the Employee shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement, or as
may otherwise be available in accordance with the Company’s established employee plans and policies at the time of termination. 

  
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 6. Severance Benefits. 

(a) Termination Following A Change of Control. If the Employee’s employment with the Company terminates on or at any time
within twenty-four (24) months after a Change of Control, then subject to the release requirement described below, the Employee shall be entitled to receive severance benefits as a result of his “separation from service” (as
determined under Treasury Regulations Section 1.409A-1(h)) as follows: 
 (i) Involuntary Termination. If the
Employee’s employment terminates as a result of Involuntary Termination (other than for Cause or as a result of death or Disability): 

(1) the Company shall pay the Employee, on the 30th day following his “separation
of service,” a lump sum cash severance payment equal to the sum of (x) two (2) times the Employee’s Base Compensation for the Company’s fiscal year then in effect (ignoring any reduction that forms the basis for Good Reason)
or if greater, two (2) times the Employee’s Base Compensation for the Company’s fiscal year immediately preceding the “separation from service”, plus (y) two (2) times the Employee’s Target Incentive for the
fiscal year then in effect (ignoring any reduction that forms the basis for Good Reason) or, if no Target Incentive is in effect for such year, two (2) times the Employee’s highest Target Incentive in the three (3) preceding fiscal
years. 
 (2) the Company shall pay the Employee, on the 30th day following his “separation from service,” a lump sum cash
severance payment equal to the amount of the COBRA premiums that the Employee would incur to continue the Company’s group health, dental, and vision plan coverage for himself and his eligible dependents (as in effect immediately prior to the
“separation from service”) for eighteen (18) months; and 
 (3) the Company shall accelerate the vesting of all of the
Employee’s then-outstanding compensatory equity awards (including but not limited to performance stock awards, stock options, restricted stock units and shares of restricted stock), effective as of the date of his “separation from
service.” 
 (ii) Voluntary Resignation; Termination For Cause. If the Employee voluntarily resigns from the Company
without Good Reason, or if the Company terminates the Employee’s employment for Cause, then the Employee shall not be entitled to receive severance or other benefits except for those (if any) to which he may be entitled under the Company’s
then existing severance and benefits plans and policies at the time of such resignation or termination. 
 (iii) Disability;
Death. If the Company terminates the Employee’s employment as a result of the Employee’s Disability, or if the Employee’s employment terminates due to the death of the Employee, then the Employee shall not be entitled to receive
severance or other benefits except for those (if any) to which he may be entitled under the Company’s then existing severance and benefits plans and policies at the time of such Disability or death. 

(b) Termination Apart from a Change of Control. If the Employee’s employment with the Company terminates either prior to the
occurrence of a Change of Control or after the twenty-four (24) month period following a Change of Control, then subject to the release requirement described below, the Employee shall be entitled to receive severance benefits as a result of his
“separation from service” as follows: 
 (i) Involuntary Termination. If the Employee’s employment terminates as
a result of Involuntary Termination (other than for Cause or as a result of death or Disability): 
 (1) the Company shall pay the
Employee, on the 30th day following his “separation from service,” a lump sum cash severance payment equal to one (1) times the Employee’s Base Compensation for the
Company’s fiscal year then in effect (ignoring any reduction that forms the basis for Good Reason) or if greater, one (1) times the Employee’s Base Compensation for the Company’s fiscal year immediately preceding the
“separation from service.” 
 (2) the Company shall pay the Employee, on the
30th day following his “separation of service,” a lump sum cash severance payment equal to one (1) times the Employee’s Target Incentive for the fiscal year then in effect
(ignoring any reduction that forms the basis for Good Reason) or, if no Target Incentive is in effect for such year, one (1) times the Employee’s highest Target Incentive in the three (3) preceding fiscal years. 

(3) the Company shall pay the Employee, on the 30th day following his “separation from service,” a lump sum cash severance payment
equal to the amount of the COBRA premiums that the Employee would incur to continue the Company’s group health, dental, and vision plan coverage for himself and his eligible dependents (as in effect immediately prior to the “separation
from service”) for twelve (12) months. 

  
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 (ii) Voluntary Resignation; Termination for Cause. If the Employee voluntarily
resigns from the Company (other than a resignation that is an Involuntary Termination), or if the Company terminates the Employee’s employment for Cause, then the Employee shall not be entitled to receive severance or other benefits except for
those, if any, as may then be established under the Company’s then-existing severance and benefits plans and policies at the time of such resignation or termination. 

(iii) Disability; Death. If the Company terminates the Employee’s employment as a result of the Employee’s Disability,
or if the Employee’s employment terminates due to the death of the Employee, then the Employee shall not be entitled to receive severance or other benefits except for those (if any) as may then be established under the Company’s
then-existing severance and benefit plans and policies at the time of such Disability or death. 
 (c) Release. The Employee
will not be entitled to receive any severance payments or benefits under this Agreement unless (i) he has delivered to the Company a standard employee waiver and release of claims in favor of the Company, in form and substance satisfactory to
the Company, and (ii) such release has become effective not later than the 30th day following his “separation from service.” The Company or any successor thereto must provide a copy
of the release to the Employee not more than two (2) days after the Employee’s “separation from service.” 

(d) No Participation In The Synopsys, Inc. Executive Change of Control Severance Benefit Plan. It is agreed that the severance
benefits described in this Agreement are in lieu of the severance benefits described in The Synopsys, Inc. Executive Change of Control Severance Benefit Plan, as amended from time to time (the “Plan”), and that Employee is not
eligible to participate in the Plan. 
 (e) Application of Section 409A. It is intended that all of the severance
benefits and other payments payable under this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Internal Revenue Code Section 409A provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(5) and
1.409A-1(b)(9), and this Agreement will be construed to the greatest extent possible as consistent with those provisions, to the extent applicable. For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulation
Section 1.409A 2(b)(2)(iii)), the Employee’s right to receive any payments under this Agreement shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be
considered a separate and distinct payment. If the Employee is deemed by the Company at the time of his “separation from service” to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i), and if any of the
payments upon “separation from service” set forth herein and/or under any other agreement with the Company are deemed to be “deferred compensation,” then to the extent delayed commencement of any portion of such payments is
required to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments shall not be provided to the Employee prior to the earliest of (i) the expiration of
the six-month period measured from the date of the Employee’s “separation from service” with the Company, (ii) the date of his or her death or (iii) such earlier date as permitted under Section 409A without the
imposition of adverse taxation. Upon the first business day following the expiration of such applicable Section 409A(a)(2)(B)(i) period, all payments delayed pursuant to this paragraph shall be paid in a lump sum to the Employee, and any
remaining payments due shall be paid as otherwise provided herein or in the applicable agreement. No interest shall be due on any amounts so deferred. 

(f) Parachute Payments. Except as otherwise provided in an agreement between Employee and the Company, if any payment or benefit
the 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 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 or elimination in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount,
reduction shall occur in the following order: (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 Employee. Within any such category of payments and benefits (that is, (1)-(4)), a reduction shall occur first with respect to amounts that are not “deferred compensation” within the meaning of
Section 409A and then with respect to amounts that are “deferred compensation.” If acceleration of vesting of compensation from 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. 

  
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 7. Definition of Terms. The following terms referred to in this Agreement shall have
the following meanings: 
 (a) Cause. “Cause” shall mean (i) any act of personal dishonesty taken by the
Employee in connection with his responsibilities as an employee and intended to result in substantial personal enrichment of the Employee, (ii) conviction of a felony that is injurious to the Company, (iii) a willful act by the Employee
which constitutes gross misconduct and which is injurious to the Company, or (iv) continued violations by the Employee of the Employee’s obligations under Section 1 of this Agreement that are demonstrably willful and deliberate on the
Employee’s part after there has been delivered to the Employee a written demand for performance from the Company which describes the basis for the Company’s belief that the Employee has not substantially performed his duties. 

(b) Change of Control. “Change of Control” shall mean the occurrence of any of the following events (provided
that to the extent necessary for compliance with Section 409A, a transaction shall not constitute a Change of Control unless such transaction also constitutes a “change in the ownership or effective control of the corporation, or in the
ownership of a substantial portion of the assets of” the Company (as provided under Treasury Regulation Section 1.409A-3(a)(5)): 

(i) The acquisition by any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) (other than the
Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of the “beneficial ownership” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the
Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; or 

(ii) A change in the composition of the Board of Directors of the Company occurring within a two-year period, as a result of which fewer
than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or nominated for election, to the Board
of Directors of the Company with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual not otherwise an Incumbent Director whose election or nomination
is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); or 
 (iii) A
merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation, or the approval by the stockholders of the Company of a plan of complete liquidation of the Company or of an agreement for the sale or disposition by the Company of all or substantially all the Company’s assets.

 (c) Disability. “Disability” shall mean that the Employee has been unable to substantially perform his
duties under this Agreement as the result of his incapacity due to physical or mental illness, and such inability, at least 26 weeks after its commencement, is determined to be total and permanent by a physician selected by the Company or its
insurers and acceptable to the Employee or the Employee’s legal representative (such Agreement as to acceptability not to be unreasonably withheld). 

(d) Exchange Act. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(e) Good Reason. “Good Reason” shall mean any of the following actions undertaken without the Employee’s
consent: (i) a significant reduction of the Employee’s duties, authority or responsibilities relative to his duties, authority or responsibilities immediately prior to such reduction, (ii) a requirement that the Employee report to
another employee or officer of the Company rather than to the Company’s Board of Directors; (iii) a reduction by at least five (5)% in the Employee’s Base Compensation; (iv) a relocation of the Employee’s primary place of
business to a location more than fifty (50) miles from the Employee’s primary place of business immediately prior to such relocation; or (v) a material breach of this agreement by the Company or any successor (including a failure to
assume all of the material terms of this Agreement). 
 (f) Involuntary Termination. “Involuntary Termination”
shall mean (i) any termination of employment of the Employee by the Company which is not effected for Disability or for Cause; or (ii) the Employee’s resignation for Good Reason, provided that the Employee’s resignation for Good
Reason is effective not later than two (2) years from the initial occurrence of such Good Reason, the Employee has provided notice to the Company of the event constituting Good Reason within ninety (90) days of its initial occurrence and
the Company has had at least thirty (30) days to cure the Good Reason event and has failed to do so. 

  
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 8. Successors. 

(a) Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, lease, merger,
consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner
and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and
assets which executes and delivers the assumption agreement described in this Section 8(a) or which becomes bound by the terms of this Agreement by operation of law. 

(b) Employee’s Successors. The terms of this Agreement and all rights of the Employee hereunder shall inure to the benefit
of, and be enforceable by, the Employee’s personal or legal representatives, executors, administrators, successors, heirs, devisees and legatees. 

9. Notice. 

(a) General. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have
been duly given when received electronically (including email addressed to the Employee’s Company email account and to the Company email account of the Company’s General Counsel), personally delivered or when mailed by U.S. registered or
certified mail, return receipt requested and postage prepaid. In the case of the Employee, mailed notices shall be addressed to him at the home address which he most recently communicated to the Company in writing. In the case of the Company, mailed
notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary. 

(b) Notice of Termination. Any termination by the Company for Cause or by the Employee as a result of an Involuntary Termination
shall be communicated by a notice of termination to the other party hereto given in accordance with Section 9(a) of this Agreement. Such notice shall indicate the specific termination provision in this Agreement relied upon, shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated, and shall specify the termination date (which shall be not more than ninety (90) days after the giving of such notice).
The failure by the Employee to include in the notice any fact or circumstance which contributes to a showing of Good Reason shall not waive any right of the Employee hereunder or preclude the Employee from asserting such fact or circumstance in
enforcing his rights hereunder. 
 10. Miscellaneous Provisions. 

(a) No Duty to Mitigate. The Employee shall not be required to mitigate the amount of any payment contemplated by this Agreement
(whether by seeking new employment or in any other manner), nor shall any such payment be reduced by any earnings that the Employee may receive from any other source. 

(b) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by the Employee and by an authorized officer of the Company (other than the Employee). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party
shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
 (c) Whole
Agreement. No agreements, representations or understandings (whether oral or written and whether express or implied) which are not expressly set forth in this Agreement have been made or entered into by either party with respect to the subject
matter hereof. 
 (d) Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of California. 
 (e) Severability. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 

(f) Arbitration. Any dispute or controversy arising out of, relating to or in connection with this Agreement shall be resolved to
the fullest extent permitted by law by final, binding and confidential arbitration in San Jose, California, in accordance with the Employment Arbitration Rules of the American Arbitration Association (“AAA”) then in effect, as
consistent with applicable law. The Employment Arbitration Rules at the time of execution of this Agreement can be found at 

  
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https://www.adr.org/. Employee understands that if he is unable to access or print these rules, he may obtain a printout of the rules from Human Resources. By agreeing to this arbitration
procedure, Employee and the Company both agree to waive the right to resolve any such dispute through a trial by jury, judge or administrative proceeding. The arbitrator shall: (a) have the authority to compel adequate discovery for the
resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award. The
arbitrator shall be authorized to award any or all remedies that Employee or the Company would be entitled to seek in a court of law. The Company shall pay all AAA arbitration fees in excess of the amount of court fees that would be required if the
dispute were decided in a court of law. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. 

(g) No Assignment of Benefits. The rights of any person to payments or benefits under this Agreement shall not be made subject to
option or assignment, either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and any action in violation of this Section 10(g)
shall be void. 
 (h) Employment Taxes. All payments made pursuant to this Agreement will be subject to withholding of
applicable income and employment taxes. 
 (i) Assignment by Company. The Company may assign its rights under this Agreement to
an affiliate, and an affiliate may assign its rights under this Agreement to another affiliate of the Company or to the Company; provided, however, that no assignment shall be made if the net worth of the assignee is less than the net worth of the
Company at the time of assignment. In the case of any such assignment, the term “Company” when used in a section of this Agreement shall mean the corporation that actually employs the Employee. 

(j) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument. 
 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of
the Company by its duly authorized officer, as of the day and year first above written. 
  

							
	COMPANY:	 		 		 	SYNOPSYS, INC.
				
		 		 	By:	 	 /s/ Jan Collinson

				
		 		 	Title:	 	 Senior Vice President, Human Resources and Facilities

				
	EMPLOYEE:	 		 		 	 /s/ Chi-Foon Chan

  
 6EX-10.18

 Exhibit 10.18 
  

			
	Title:	  	Executive Incentive Plan
	Effective Date:	  	December 15, 2016
		
	Document Owner:	  	Human Resources Compensation
	Approval:	  	Compensation Committee

  
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 PLAN OBJECTIVES: 

This Synopsys Executive Incentive Plan (the “Plan”) provides members of the Company’s management the potential to earn variable
compensation linked directly to: 
  

	 	•	 	Driving the strategic direction of Synopsys (the “Company”). 

  

	 	•	 	Driving attainment of revenue and operating margin targets. 

  

	 	•	 	Reinforcing a culture of accountability and performance excellence. 

 The Plan permits the payment of incentive
bonuses that qualify as “performance-based compensation” within the meaning of Section 162(m) of the Internal Revenue Code (“Section 162(m)”), and therefore, are not subject to the annual $1 million limitation on the
income tax deductibility of compensation paid to covered executive officers imposed under Section 162(m). To the extent that the Compensation Committee of the Company’s Board of Directors (or other duly authorized committee of the Board of
Directors, the “Committee”) determines to comply with such qualification with respect to any given award, the granting, administration and payment of such award under the Plan shall be made subject to the requirements of
Section 162(m) and the stockholder-approved Section 162(m) parameters set forth in the Company’s 2006 Employee Equity Incentive Plan, as amended (the “2006 Equity Plan”). 

ELIGIBILITY: 
 Subject to achievement as
described below, an employee is eligible to earn an incentive award under the Plan if: 
  

	 	•	 	Such employee as a position grade of Vice President or higher; 

  

	 	•	 	Such employee is a regular employee scheduled to work at least 20 hours per week; 

  

	 	•	 	Such employee is employed by Synopsys as of the first working work day of the fourth quarter of the fiscal year; 

  

	 	•	 	Such employee is actively employed through the day the incentive payments are made (or on an approved leave of absence); 

  

	 	•	 	Such employee prepares and delivers performance reviews for all direct reports eligible to receive reviews by the date announced annually by the Company, unless an exception to this requirement is recommended by the
SVP, Human Resources and Facilities, and approved by the Chairman of the Committee; and 

  

	 	•	 	The Committee has approved such employee’s participation for a given performance period and a Target Award for such period. 

Any employee who satisfies the eligibility requirements above is an “Eligible Employee,” as such term is used in this Plan. If an employee
transitions into a role during the performance period that would qualify such employee as an Eligible Employee, or if an Eligible Employee transitions out of a role during a performance period that would result in such employee ceasing to be an
Eligible Employee, the Committee will determine in connection with such transition whether such employee shall participate in the Plan (and the size of the Target Award) for the then-ongoing performance period, and such decision shall be final and
binding on the employee. 
 ADMINISTRATION: 

The Plan shall be administered by the Committee. The Committee shall have authority to make rules and adopt administrative procedures in connection with the
Plan and shall have discretion to provide for situations or conditions not specifically provided for herein consistent with the purposes of the Plan. Notwithstanding any other provision of the Plan to the contrary, if the Committee determines to
comply with the rules governing “performance-based compensation” within the meaning of Section 162(m) with respect to any given award, the Committee shall administer and interpret the Plan with respect to such award in a manner
consistent with the “performance-based compensation” requirement of Section 162(m), including the requirements regarding timing and manner of decision making. Determinations by the Committee shall be final and binding on the Company,
all Eligible Employees, and all other persons. 
 PERFORMANCE PERIOD: 

The Committee shall determine the beginning and ending dates for each performance period. Unless otherwise determined by the Committee, the performance period
shall correspond to the Company’s fiscal year. 

  
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 INCENTIVE TARGET AWARDS: 

The Committee shall approve the individual incentive target award (each, a “Target Award”) for each Eligible Employee. The Target Award is
equal to a percentage of the Eligible Employee’s regular base salary for the performance period (at the rate in effect at the time the Committee determines the Target Award). If an Eligible Employee’s base salary or role with the Company
is changed during a performance period, the Committee will determine whether and how the Target Award size will be adjusted, subject, in the case of awards intended to comply with Section 162(m), to the limitations imposed under
Section 162(m). Stock-based compensation, cash variable compensation, employee benefit value, any additional bonus, commission or other incentive plans, and any non-recurring or other extraordinary cash compensation (e.g., relocation payments
or signing bonuses) are not included in the Target Award calculation. 
 FUNDING GOAL - PERFORMANCE CRITERIA: 

No amount will be earned under the Plan unless the Company achieves the “Funding Goal” selected by the Committee for the applicable
performance period from the list of permitted performance criteria (and permitted adjustments to the manner of measurement of such criteria) set forth in the 2006 Equity Plan. If the Company fails to achieve the Funding Goal, no amounts will be
earned or paid under this Plan for such performance period. If the Company achieves the Funding Goal, the Plan will fund at the maximum award per Eligible Employee for such performance period. 

The maximum Final Award that any Eligible Employee may earn in any performance period is 200% of such employee’s Target Award. The Committee will then
use negative discretion in respect of such Final Award for each Eligible Employee to determine the actual award earned by such Eligible Employee, as set forth herein. 

CORPORATE FINANCIAL & REVENUE PREDICTABILITY PERFORMANCE GOALS: 

First, the Committee shall determine the Company’s achievement of the following Corporate Financial Performance Goals (weighted as set forth below) and
the Revenue Predictability Goal and apply such determination to the following formula: 
 Target Award x Corporate Financial Payout Factor x
Revenue Predictability Payout Factor (if any) x Corporate Multiple (if any) 
 CORPORATE FINANCIAL PERFORMANCE GOALS: 

Current Fiscal Year Revenue Target – 33.33% 

Current Fiscal Year Non-GAAP Operating Margin Target – 33.33% 

Following Fiscal Year Revenue Backlog Target – 33.34% 

REVENUE PREDICTABILITY GOAL: 

Second Following Fiscal Year Revenue Backlog Target 

The “Corporate Financial Payout Factor” is equal to the weighted average of the achievement of the three Corporate Financial Performance
Goals for the completed performance period. Minimum weighted average results of 90% must be achieved before any Eligible Employee may earn an award under this Plan. At the start of each performance period, the Committee will approve a matrix that
specifies the Corporate Financial Payout Factor for achievement at different levels of weighted average Corporate Financial Performance Goals. 
 The
“Revenue Predictability Payout Factor” is determined using a matrix approved by the Committee based on the achievement of the Second Following Fiscal Revenue Backlog Target for the completed performance period. If a minimum of 100%
performance is achieved, the Revenue Predictability Payout Factor will equal 100%. At the start of each performance period, the Committee will approve a matrix that specifies the Revenue Predictability Payout Factor for achievement at different
levels of performance above the minimum Revenue Predictability Goal. 
 The “Corporate Multiple” is an additional multiplier that is used
if the weighted average achievement of the Corporate Financial Performance Goals is greater than 100%; that is, in addition to the Corporate Financial Payout Factor, the formula may include the use of a multiplier that the Committee approves at the
start of the applicable performance period. For the avoidance of doubt, the use or approval of a Corporate Multiple is determined at the sole discretion of the Committee. 

  
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 FINAL AWARDS: 

The Committee will determine the “Final Award” for each Eligible Employee by utilizing the formula set forth above, and taking into account
management’s recommendations to the Committee regarding individual performance. The Committee may also reduce Final Awards based on the Company’s achievement of other financial goals, product milestones, or strategic goals, as well as
cross-functional teamwork and collaboration, unforeseen changes in the economy and/or geopolitical climate and any other factors deemed material by the Committee. 

PAYMENT SCHEDULE: 
 Payment of Final
Awards will occur within thirty (30) days following the date of the written certification by the Committee (the “Certificate Date”) that the performance and other criteria for payment have been satisfied and the Final Award is
determined, but in all cases not later than the date necessary for compliance with Treasury Regulations Section 1.409A-1(b)(4). An Eligible Employee must remain employed by the Company as of the payment date to earn and vest in the Final Award.
The Committee reserves the discretion to pay the Final Award, or a portion thereof, using shares of the Company’s common stock issued under the 2006 Equity Plan. 

All payments under this Plan are subject to recovery in accordance with the Compensation Recovery Policy of the Company, as modified from time to time, as
well as any clawback policy required by applicable law. 
 IMPORTANT NOTES ABOUT THE PLAN: 

This Plan supersedes and replaces all prior executive incentive plans applicable to employees at or above the level of Vice President for performance periods
commencing on or after the effective date of this Plan. The Committee reserves the right to terminate or make changes to the Plan, including changes consistent with Section 162(m) and the regulations issued thereunder, at any time, with or
without notice. The Committee may likewise terminate an individual’s participation in the Plan at any time, with or without notice. Nothing in this Plan shall be construed to be a guarantee that any Eligible Employee will receive all or part of
an incentive award or to imply a contract between the Company and any Eligible Employee. Further, participation in the Plan and/or receipt of an award shall not be construed to grant any person the right to remain in the employ of the Company for
any specific period of duration. Eligibility for and determination of incentive awards under the Plan are within the sole discretion of the Committee. 
  

 

					
	Approval:	  		  	
			
	Compensation Committee	  		  	

  

									
	By:	 	 /s/ Chrysostomos L. “Max” Nikias
	 		 		 	 December 15, 2016

		 	Chrysostomos L. “Max” Nikias	 		 		 	Date
		 	Chair, Compensation Committee	 		 		 	

  
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