Preview | Agreement and Plan of Merger |

ARTICLE I
THE OFFER

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1.1.	The Offer	1

1.2.	Company Actions	3

1.3.	Stockholder Lists	4

1.4.	Directors	4

ARTICLE II
THE MERGER

2.1.	The Merger	5

2.2.	Effective Time	5

2.3.	Closing of the Merger	5

2.4.	Effects of the Merger	5

2.5.	Certificate of Incorporation; By-Laws	6

2.6.	Directors and Officers	6

2.7.	Stockholders Meeting	6

2.8.	Merger Without Meeting of Stockholders	6

ARTICLE III
CONVERSION OF SECURITIES

3.1.	Conversion of Securities	7

3.2.	Stock Options and Other Stock Plans	7

3.3.	Payment for Shares	9

3.4.	No Further Ownership Rights	10

3.5.	Investment of the Payment Fund	10

3.6.	Withholding Rights	10

3.7.	Stock Transfer Books	10

3.8.	Dissenting Shares	10

ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE COMPANY

4.1.	Organization and Qualification; Subsidiaries	11

4.2.	Capitalization of the Company and Its Subsidiaries	12

4.3.	Authority Relative to this Agreement	13

4.4.	SEC Reports; Financial Statements	14

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4.5.	No Undisclosed Liabilities	15

4.6.	Absence of Changes	15

4.7.	Schedule 14D-9; Offer Documents and Proxy Statement	17

4.8.	Consents and Approvals; No Violations	17

4.9.	No Default	18

4.10.	Real Property	18

4.11.	Litigation	19

4.12.	Company Permits; Compliance with Applicable Laws	19

4.13.	Employee Benefit Plans; ERISA	19

4.14.	Labor Matters	24

4.15.	Environmental Matters	24

4.16.	Taxes	26

4.17.	Absence of Questionable Payments	28

4.18.	Company Contracts	28

4.19.	Insurance Matters	30

4.20.	Intellectual Property	31

4.21.	Interested Party Transactions	34

4.22.	Opinion of Company Financial Advisor	34

4.23.	Brokers	34

4.24.	Takeover Statutes, etc.	35

ARTICLE V
REPRESENTATIONS AND WARRANTIES OF PARENT AND PURCHASER

5.1.	Organization	35

5.2.	Authority Relative to This Agreement	35

5.3.	Offer Documents; Proxy Statement	36

5.4.	Consents and Approvals; No Violations	36

5.5.	Financial Statements	37

5.6.	Availability of Funds	37

ARTICLE VI
COVENANTS

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6.1.	Conduct of Business of the Company	37

6.2.	Access to Information	40

6.3.	Dispositions	41

6.4.	CDAI Exchangeable Shares	41

6.5.	Transfer of Numerical Taiwan Shares	41

ARTICLE VII
ADDITIONAL AGREEMENTS

7.1.	Proxy Statement	42

7.2.	Commercially Reasonable Best Efforts	42

7.3.	Acquisition Proposals	43

7.4.	Public Announcements	45

7.5.	Indemnification; Directors and Officers Insurance	45

7.6.	Notification of Certain Matters	45

7.7.	Employee Matters	46

7.8.	SEC Filings	46

7.9.	Fees and Expenses	47

7.10.	Takeover Statutes	47

ARTICLE VIII
CONDITIONS TO CONSUMMATION OF THE MERGER

8.1.	Conditions to Each Partys Obligations to Effect the Merger	47

ARTICLE IX
TERMINATION; AMENDMENT; WAIVER

9.1.	Termination by Mutual Agreement	48

9.2.	Termination by Either Parent or the Company	48

9.3.	Termination by the Company	48

9.4.	Termination by Parent	49

9.5.	Effect of Termination and Abandonment	49

9.6.	Amendment	50

9.7.	Extension; Waiver	50

ARTICLE X
MISCELLANEOUS

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10.1.	Nonsurvival of Representations and Warranties	51

10.2.	Entire Agreement; Assignment	51

10.3.	Notices	51

10.4.	Governing Law	52

10.5.	Descriptive Headings	52

10.6.	Parties in Interest	52

10.7.	Severability	52

10.8.	Enforcement; Jurisdiction	53

10.9.	Counterparts	53

10.10.	Interpretation	53

10.11.	Definitions	54

	Exhibit AConditions to the Offer	57

THIS AGREEMENT AND PLAN OF MERGER, dated as of January 12, 2003 (the Agreement), is among Synopsys, Inc., a Delaware corporation (Parent), Neon Acquisition Corporation, a Delaware corporation and a direct wholly-owned subsidiary of Parent (Purchaser), and Numerical Technologies, Inc., a Delaware corporation (the Company).