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                                                                   Exhibit 10.08

                          CADENCE DESIGN SYSTEMS, INC.
                          SENIOR EXECUTIVE BONUS PLAN
                      JANUARY 1, 1996 - DECEMBER 31, 1996


The purpose of the Senior Executive Bonus Plan is to motivate and reward the
Senior Executives of the company to profitably grow Cadence and achieve
corporate goals. The plan provides for a cash payment after January 1, 1997. The
financial performance will be based on the audited financial statements.

The Target Bonus Pool will be made up of the sum of each participant's salary
times a percentage as assigned by the Compensation Committee. The Actual Bonus
Pool will be a percentage of the Target Bonus Pool determined based on Cadence's
performance against Earnings Per Share (EPS) targets.

If Earnings Per Share fall outside the target range, the Bonus Pool will be
determined at the sole discretion of the Board of Directors.

The target bonus for each Senior Executive will be pre-established by the
Compensation Committee of the Board of Directors.

The individual Senior Executive bonus target will be adjusted in proportion to
the adjustment of the Bonus Pool, the portion of 1996 actively employed by
Cadence as a Senior Executive and an individual performance factor with a range
of .5 to 1.5 as assigned or approved by the Compensation Committee of the Board
of Directors. There will be no adjustment for the other Senior Executives if a
Senior Executive leaves the Company. The total of the individual bonuses will be
controlled to the bonus pool, as adjusted by the Earnings Per Share performance
factor.

The Board of directors reserves the right to terminate or modify this plan at
any time. The plan is only effective for 1996, and any future Senior Executive
Bonus or other bonus plan is at the discretion of the Board of Directors.

In order for the Bonus to be paid to a Senior Executive, he/she must be in the
active employment of Cadence on the date checks are distributed. All forfeitures
revert to Cadence.

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