Magma Design Automation (LAVA)

Employment, Severance and Change of Control Agreements

Magma does not have formal employment or severance agreements with any of the executive officers set forth in Exhibit 10.16(b) except that Magma has agreed to pay to Mr. Peter S. Teshima a severance amount equal to six months’ of Mr. Teshima’s initial annual base salary (which initial annual base salary was $200,000.00) if Mr. Teshima’s employment with Magma is involuntarily terminated without Cause (as defined in Mr. Teshima’s offer letter). However, such executive officers may be entitled to accelerated vesting of their outstanding stock options in connection with a change in control or similar transaction and certain terminations of employment related to a change in control. Specifically, for options granted on or after October 22, 2003, if a change in control of Magma occurs, 25% of their unvested options will become immediately vested and exercisable and, if the executive officer is involuntarily terminated without cause (as described in further detail in the Company’s Proxy Statement dated July 23, 2007) within the first year following the change in control, an additional 50% of his unvested options will become vested and exercisable. However, any potential accelerated option vesting upon or following a change in control is subject to the 2001 Plan’s general parachute payment limitation.

Employment, Severance and Change of Control Agreements

Employment, Severance and Change of Control Agreements

Magma does not have formal employment or severance agreements with any of the executive officers set forth in Exhibit 10.27(b) except that Magma has agreed to pay to Mr. Peter S. Teshima a severance amount equal to six months’ of Mr. Teshima’s initial annual base salary (which initial annual base salary was $200,000.00) if Mr. Teshima’s employment with Magma is involuntarily terminated without Cause. Such executive officers are parties to stock option agreements that provide for acceleration of vesting upon specified events.

Employment, Severance and Change of Control Agreements

Magma does not have formal employment or severance agreements with any of the executive officers set forth in Exhibit 10.27(b). Such executive officers are party to stock option agreements that provide for acceleration of vesting upon specified events.

Employment, Severance and Change of Control Agreements

Magma does not have formal employment or severance agreements with any of the executive officers set forth in Exhibit 10.27(b). Such executive officers are party to stock option agreements that provide for acceleration of vesting upon specified events.