EXHIBIT 10.1
AVID TECHNOLOGY, INC.
Avid Technology Park
One Park West
Tewksbury, MA 01876
2007 EMPLOYEE BONUS
PLAN
On December 12, 2006, the
independent members of the Board of Directors (the
“Board”) of Avid Technology, Inc. (the
“Company”) adopted this 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 (as defined below) 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” means 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.
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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 their award, if any.
Each such eligible employee is deemed a “Participant”
in the Plan.
BONUS PAYOUTS
A Participant’s bonus payout
under the Plan (“Bonus Payout”) is based on three
factors, each as defined below: (1) the Participant’s Target
Award; (2) the financial performance of the Participant’s
Business Unit (“Business Unit Performance”); and (3)
the Participant’s individual performance (“Individual
Performance”).
Target Award
. A “Participant’s
Target Award” is an amount between 5% and 140% of a
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 and position within the organizational
structure of the Company. The “Business Unit Target
Award,” for each business unit, is the sum of the Target
Awards for all Participants in such business unit, as the case may
be.
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, as further discussed
below.
Individual Performance
. Based on the subjective evaluation
(by the Board for all executive officers, and by management for all
other Participants) of the Participan
