Exhibit 10.40
Effective <<Grant Date>> , Synopsys, Inc. (the “Company”) has granted you a Nonstatutory Stock Option
(the “Option”) under the 2006 Employee Equity Incentive Plan (the “Plan”) to buy <<# of Shares>> shares of
common stock of the Company at an exercise price of <<price>> per share.
This Option may be exercised, in whole or in part, in accordance with the following vesting
schedule, subject to your continued service with the Company or an affiliate.
1. Exercise upon Termination of Employment . In the event of termination of your
employment or service with the Company for any reason, you will be permitted to exercise the Option to the
extent vested at the time of termination for ninety (90) days following your date of termination; provided,
however, that if your termination is due to death or disability, the post-termination exercise period is twelve (12)
months; and provided further that if your termination is for “Cause” as defined in the Plan, you shall not be
permitted to exercise the Option in any respect.
2. Responsibility for Taxes . Regardless of any action the Company, or my employer, if
different from the Company (the “Employer”) takes with respect to any or all income tax, social insurance, payroll
tax, payment on account or other tax-related withholding (“Tax-Related Items”), I acknowledge that the ultimate
liability for all Tax-Related Items legally due by me is and remains my responsibility and that the Employer (1)
makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with
any aspect of the Option, including the grant, vesting or exercise of the Option, the subsequent sale of shares
acquired pursuant to such exercise and the receipt of any dividends; and (2) does not commit to structure the
terms of the grant or any aspect of the Option to reduce or eliminate my liability for Tax-Related Items.
Prior to exercise of the Option, I shall pay or make adequa