Vice President, Marketing Employment Agreement - Neal J. Carney

EXHIBIT 10.18


July 18, 2001


Neal J. Carney


Dear Neal,


I am pleased to make the following employment offer to you for the position as Vice President, Marketing with Artisan Components ("Company"). You will be reporting directly to Harry Dickinson. The specifics of the offer are as follows: 1. Your salary will be $8,125.00 semi-monthly ($195,000.00 annually).

2. Your responsibilities shall be determined by your manager, and such other different tasks as may be assigned to you from time to time by the Company. You shall devote your full time, ability, attention, energy and skills solely and exclusively in performing all duties as assigned and delegated to you by Company.

3. In addition to your total compensation, subject to approval by our Board of Directors, you will be granted the option to purchase 160,000 shares of Artisan Components stock. The purchase price shall be equal to the fair market value on your grant date and vesting period commencing on the first date of your employment by the Company over a four-year period. You must work for the company for one year before any stock vests to you, and all stock options are subject to the terms of the Stock Option Plan and any applicable laws.

4. You will also be eligible for participation in an MBO program with a bonus equal to 20% of your base salary at 100% performance of your goals. Specific achievement goals for this program will be determined within 30 days of your start date.

5. In addition to the above compensation outlined above, to aid transition to your new position, Artisan will pay you a sign-on bonus of $10,000.00 less applicable taxes/withholding. This bonus will be paid after 6 months of continuous employment with Artisan Components. If you should voluntarily or involuntarily resign or otherwise terminate your employment within 12 months of hire, you will be expected to repay this amount on a pro-rated basis based on full months of employment.

6. Upon meeting all applicable eligibility requirements, you will be entitled to receive such other benefits or rights as may be provided under any employment benefit plan provided by Company that is now hereafter will be in effect, including participation in life, medical, and dental insurance plan.

7. Upon acceptance of this offer, your anticipated start date will be August 27, 2001.

8. You will be entitled to paid vacation, sick leave, as well as Artisan designated holidays, for each year of employment with Artisan.

PERSONAL AND CONFIDENTIAL


Neal J. Carney

July 18, 2001

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9. As a condition of your employment with Artisan, you shall execute, contemporaneously with ...