Exhibit 10.36

                                                        May 24, 2001

Mr. Gary Kiaski
183 Oakcreek Blvd.
Scotts Valley, California  95066

Dear Gary:

I am writing to confirm our agreement regarding the termination of your
employment at Innoveda.

Effective August 3, 2001, you have resigned from the employment of, and from all
offices and directorships of, Innoveda, Inc. and each of its subsidiary
companies. On August 3, 2001, Innoveda will pay to you $215,000, representing
one year of your current base salary. We will withhold from this payment taxes
and any other appropriate deductions. If you elect to continue medical and
dental insurance coverage under COBRA, Innoveda will pay the COBRA cost for the
period of August 3, 2001 through July 31, 2002. We reserve the right to change
your medical coverage from the indemnity plan to the Preferred Provider
Organization (PPO) plan. If you obtain other employment that offers medical
and/or dental coverage, you must promptly notify Innoveda and obtain that
coverage from your new employer and discontinue coverage from Innoveda under
COBRA.

Also, if you elect to exercise the stock option granted to you on November 23,
1998, Innoveda will loan to you $62,766 to be used as payment for the exercise
of that stock option (there will be 128,094 shares vested on August 3, 2001 and
the exercise price is $.49 per share). This loan will be a full recourse loan at
market rate interest (as determined by our bank), will require payment of only
interest until August 2, 2002 and the entire principal amount of the loan and
all unpaid interest will be due on August 2, 2002. We will hold the stock that
you acquire on the exercise of your stock option as security for the loan and
you (and your wife if you elect to have that stock issued in both names) will
sign a promissory note and stock pledge agreement in form and substance
satisfactory to Innoveda's lawyers.

Please sign below to indicate your agreement with the above.

Sincerely,                                          Agreed and Accepted
Innoveda, Inc.                                      Gary Kiaski


-------------------------------------               /s/ Gary Kiaski
William J. Herman                                   -----------------
President and Chief Executive Officer


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