EXHIBIT 10.1
AVID TECHNOLOGY, INC.
Avid Technology Park
One Park West
Tewksbury, MA 01876
AMENDED AND RESTATED 2007
EMPLOYEE BONUS PLAN
On April 16, 2007, the Board of
Directors (the “Board” ) of Avid Technology,
Inc. (the “Company” ) adopted this Amended and
Restated 2007 Employee Bonus Plan (the “Plan”
).
PURPOSE OF THE
PLAN
The purpose of this Plan is: (1) to
advance the interests of the Company’s stockholders by
enhancing the Company’s ability to attract, retain and
motivate talented employees and (2) to reward employees for helping
the Company to achieve certain financial goals for 2007, as well as
for individual performance and contributions. Except where the
context otherwise requires, the term “Company” includes
any of the Company’s present or future parent or subsidiary
corporations, as defined in Sections 424(e) or (f) of the
Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder and any other business venture (including,
without limitation, joint venture or limited liability company) in
which the Company has a controlling interest, as determined by the
Board.
ADMINISTRATION
The Plan is administered by the
Board. The Board has the exclusive right to administer, interpret
and decide any and all matters arising under or in connection with
the Plan including, without limitation, the right to modify, amend,
revoke or suspend the Plan at any time in its sole discretion. All
decisions by the Board are made in the Board's sole discretion and
shall be final and binding on all persons having or claiming any
interest in the Plan. No director or person acting pursuant to the
authority delegated by the Board will be liable for any action or
determination relating to or under the Plan made in good
faith.
To the extent permitted by
applicable law, the Board may delegate to one or more executive
officers of the Company such powers under the Plan as the Board may
determine in its discretion, provided that the Board shall
determine the bonus payout for each executive officer of the
Company.
To the extent permitted by
applicable law, the Board may delegate any or all of its powers
under the Plan to one or more committees or subcommittees of the
Board (each, a “Committee” ). All references in
the Plan to the “Board” mean the Board or a Committee
of the Board or the executive officer referred to in the
immediately preceding paragraph to the extent that the Board's
powers or authority under the Plan have been delegated to such
Committee or executive officer.
1
ELIGIBILITY
All Company employees (other than
temporary employees, employees hired after September 30, 2007, and
employees who are covered by a sales compensation or
commission-based plan) are eligible to participate in the Plan,
including all of the Company’s executive officers. Eligible
employees must be employed by the Company at the time awards are
paid out under the Plan in order to receive an award, if any. Each
eligible employee is deemed a “Participant” in
the Plan.
BONUS PAYOUTS
For purposes of the Plan, all
Participants are grouped into one of four business units:
Corporate, Audio, Consumer or Video. All executive officers of the
Company are included in the Corporate business unit.
A Participant’s bonus payout
under the Plan is based on three factors:
(1) Target Award . The
Target Award for a Participant is an amount between 5% and 140% of
the Participant’s base salary, based on various factors (as
determined by the Board for all executive officers, and by
management for all other Participants), including the
Participant’s role within the Company. The Target Award for a
business unit is the sum of the Target Awards for all Participants
in that business unit.
(2) Business Unit
Performance . The Business Unit Performance
component of a Participant’s bonus payout is an objective
measurement of a business unit’s financial results based on
operating profit.
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For executive officers of the Company and all
other Participants in the Corporate business unit, 100% of the
Business
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