Document:

Exhibit 10.1

 

SEPARATION AGREEMENT

 

This SEPARATION
AGREEMENT (“Agreement”) is made and entered into by Gary G. Greenfield (the “Executive”) and Avid Technology,
Inc. (“the Company”) as of February 6, 2013.

 

1.SEPARATION
DATE. The Company and the Executive have mutually agreed that the Executive's employment with the Company will terminate effective
February 11, 2013 (the “Separation Date”). In furtherance thereof, the Executive hereby resigns (i) his positions
as Chairman of the Company’s Board of Directors, Chief Executive Officer and President of the Company and (ii) his employment
with the Company and each affiliate of the Company, in each case effective as of the Separation Date. The Executive and the Company
each hereby waive any advance notice period which otherwise may have been required in connection with the Executive’s termination
of employment. Executive will remain a member of the Company’s Board of Directors (the “Board”) following the
Separation Date, subject to the Company’s Certificate of Incorporation and Amended and Restated Bylaws and shall be entitled
to cash compensation as an outside director in respect of such service following the Separation Date in accordance with the compensation
policy of the Board in effect from time to time; provided that the Executive agrees that he shall not be entitled to an initial
director equity grant due to the change in his status to a non-employee member of the Board. The Company shall continue to provide
the Executive with his existing salary and benefits through the Separation Date and shall provide the Executive with any accrued
and vested vacation and benefits following the Separation Date in accordance with the terms of the applicable Company benefit policy
or plan. The Company shall reimburse the Executive for all reasonable travel, entertainment or other expenses incurred by the Executive
prior to the Separation Date in connection with the performance of his duties to the Company in accordance with the Company’s
expense reimbursement policy.

 

2.ELIGIBILITY
FOR SEVERANCE BENEFITS UNDER EXISTING AGREEMENT. The Executive is currently party to an Amended and Restated Executive Employment
Agreement with the Company, as amended March 14, 2011 (the "Employment Agreement"). Provided that the Release (as described
in Paragraph 3) becomes effective, the parties hereto agree that the termination of the Executive's employment described in Paragraph
1 hereof will be treated as a termination of employment under Section 4.1.4 of the Employment Agreement, which will entitle the
Executive to the severance payments and benefits described in Section 4.3.3 of the Employment Agreement (the "Severance Benefits"),
which shall be paid or provided in such amounts and in such manner as is described in Paragraph 4 below.

 

3.EXECUTIVE'S
RELEASE OF CLAIMS. Pursuant to the Employment Agreement, in order to receive the Severance Benefits, the Executive is required
to execute and not revoke a release in favor of the Company in the form attached hereto as Exhibit A (the “Release”).
In the event that the Executive does not execute the Release or timely revokes the Release, this Agreement shall be null and void,
ab initio and the Executive will not be entitled to the Severance Benefits.

 

 

    	 

    	 

    

 

4.ACCRUED
BENEFITS AND SEVERANCE BENEFITS.

 

(a)Accrued
Benefits. The Company shall provide the Executive with the accrued compensation and benefits described in Section 4.3.3(a)
of the Employment Agreement; provided that the Executive acknowledges that the Executive’s entitlement to an Annual Incentive
Bonus in respect of 2012 will be determined by the Compensation Committee of the Board in accordance with the provisions of the
2012 Annual Incentive Bonus Program and that such bonus, if any, will be paid as described in Section 3.2 of the Employment Agreement.
The payment in respect of the Executive’s accrued and unused vacation as of the date hereof is $108,000.

 

(b)Salary
Continuation. Following the effectiveness of the Release, the Company shall pay the Executive salary continuation during the
twelve (12) month period following the Separation Date as provided in Section 4.3.3(b) of the Employment Agreement, in the aggregate
amount of $1,014,000, in accordance with the payment schedule described in Section 4.3.3(b); provided that not more than $510,000
of such amount shall be paid to the Executive with respect to such salary continuation during the six month period immediately
following the Separation Date; further provided that any reductions made on account of the foregoing limitation shall be applied
to the latest payment(s) during such period and any amounts so reduced shall be paid in the Company’s first payroll period
immediately following the expiration of such six month period.

 

(c)Payment
in Respect of Bonuses. The Company shall pay the Executive the sum of $936,000 and of $187,200 (resulting in a total payment
of $1,123,200), within ten business days after the Release becomes irrevocable, as provided in Section 4.3.3(c) of the Employment
Agreement.

 

(d)Payment
in Respect of Section 4.3.3(d). Following the effectiveness of the Release, the Company shall pay the Executive the amount
of $30,000 in full satisfaction of the Company’s obligations set forth in Section 4.3.3(d) of the Employment Agreement.

 

(e)Outplacement.
The Company shall provide the Executive with the outplacement services described in Section 4.3.3(e) of the Employment Agreement,
in accordance with the provisions of such section.

 

(f)Treatment
of Equity Awards. The Executive’s outstanding equity awards shall be treated in the following manner:

 

(i)Unvested
Time-Vesting Options. Upon the effectiveness of the Release, the Executive will become vested in (A) 190,000 of the stock options
granted to the Executive on February 24, 2012 (with an exercise price of $11.71 per share) and (B) the remaining unvested options
held by the Executive with an exercise price of $13.99 per share. Except as set forth in this Paragraph 4(f)(i), each other time-vesting
stock option award or portion thereof that is unvested as of the Separation Date shall be forfeited on the Separation Date.

 

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(ii)Unvested
Time-Vesting Restricted Stock Units. Upon the effectiveness of the Release, the Executive will become vested in (A) 25,000
of the restricted stock units granted to the Executive on February 24, 2012 and (B) an additional 24,610 of the restricted stock
units granted to the Executive on February 16, 2011. Except as set forth in this Paragraph 4(f)(ii), each other time-vesting restricted
stock unit award or portion thereof that is unvested as of the Separation Date shall be forfeited on the Separation Date.

 

(iii)Other Equity
Awards; Unvested Performance Awards. Each equity or equity-based award held by the Executive which is unvested as of the Separation
Date (after giving effect to the provisions of this Paragraph 4(f)), including, without limitation, all unvested awards the vesting
of which is contingent upon the attainment of performance goals, shall be forfeited on the Separation Date.

 

(iv)Exercise
Period of Vested Options. All stock options held by the Executive which are vested as of the Separation Date (after giving
effect to the vesting described in Paragraph 4(f)(i) hereof) shall remain exercisable for the thirteen (13) month period commencing
on the Separation Date.

 

(g)Other
Matters. The Executive hereby acknowledges that, in connection with his termination of employment with the Company or any event
subsequent to such termination, the Executive shall not be entitled to receive from the Company or an affiliate any severance pay
or benefits except as described in this Paragraph 4 and that the payments described in this Paragraph 4 are in full satisfaction
of the Company’s severance obligations to the Executive. The Company shall reimburse the Executive for the legal fees, incurred
by the Executive in connection with the negotiation and execution of this Agreement, up to a maximum of $5,000. Such reimbursement
shall be made by the Company within twenty business days of the Executive’s submission to the Company of an invoice or invoices
from counsel, which submission shall be made no later than March 1, 2013. All payments and benefits referenced hereunder shall
be subject to required tax withholding.

 

5.SURVIVAL
OF EXISTING AGREEMENT. This Agreement supplements and does not supersede the Employment Agreement, which shall remain in effect
in accordance with its terms to the extent applicable to periods following the Separation Date. Without limiting the generality
of the foregoing, the Executive and the Company agree that the provisions of Sections 4.4, 4.5, Article V, Article VI of the Employment
Agreement remain in effect in accordance with their terms. The Executive and the Company further agree that, except with respect
to Section 4.4 and 4.5 of the Employment Agreement, the provisions of this Agreement supersede the provisions of Article IV of
the Agreement and that any entitlement to severance payments or benefits upon or following a termination of the Executive’s
employment with the Company shall be solely governed by this Agreement.

 

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6.409A
COMPLIANCE. The Company and the Executive each hereby affirm that it is their mutual view that the provision of payments and
benefits described or referenced herein are exempt from or in compliance with the requirements of Section 409A of the Internal
Revenue Code of 1986, as amended and the Treasury regulations relating thereto ("Section 409A") and that each party’s
tax reporting shall be completed in a manner consistent with such view. The Company and the Executive each agree that upon the
Separation Date, the Executive will experience a "separation from service" for purposes of Section 409A.

 

7.RETURN
OF PROPERTY AND COMPANY INFORMATION. At the completion of the Executive’s service as a member of the Board (or at such
other time as may be requested by the Company) Executive shall return to the Company, within five calendar (5) days of the applicable
date, all materials containing Company Information (as defined below), and any copies, duplicates, reproductions or excerpts thereof,
including, but not limited to, documents and memoranda, and all other property belonging to Company which in each case is in Executive's
possession or control. The term Company Information as used in this Agreement means (a) confidential information including, without
limitation, information received from third parties under confidential conditions; and (b) other technical, business or financial
information which Company regards as confidential and the use or disclosure of which might reasonably be considered to be contrary
to the interests of Company. Notwithstanding the foregoing, the Executive shall be entitled to retain his current personal computer;
provided that the Executive shall first permit the Company access to such computer in order to remove such information as the Company
shall determine.

 

8.TIME
AND DISCLOSURES. Executive acknowledges that he has been given at least twenty-one (21) days to consider whether to execute
this Agreement and the Release.

 

9.EXECUTIVE
ACKNOWLEDGEMENT. The Executive acknowledges that:

 

(a)The Executive
has carefully read all provisions of this Agreement and fully understands what those provisions mean.

 

(b)The Executive
has been advised by the Company of his or her right to review this Agreement with his legal counsel and other advisors prior to
executing it.

 

(c)The Executive
is entering into this Agreement of the Executive’s own free will and choice, without being pressured, forced or coerced into
signing in exchange for good and valuable consideration on the part of the Company. The Executive is in good health and of sound
mind, and there is no reason why the Executive would be unable to make a knowing and voluntary decision to agree to this Agreement.

 

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(d)The Executive
understands and agrees that if any provision of this Agreement shall, for any reason, be adjudged by any court of competent jurisdiction
to be invalid or unenforceable, such judgment shall not affect, impair, or invalidate the remainder of the Agreement, but shall
be confined in its operation to the provision of this Agreement directly involved in the controversy in which such judgment shall
have been rendered and the remainder of the Agreement shall remain valid and enforceable in accordance with its terms.

 

10.NO
ADMISSION OF WRONGDOING. Nothing herein is to be deemed to constitute an admission of wrongdoing by the Executive, the Company
or any of its affiliates.

 

11.ENTIRE
AGREEMENT. This Agreement, together with the Employment Agreement and the documents evidencing the awards described in Paragraph
4(f)(i) and 4(f)(ii) represent the entire agreement of the parties regarding the subject matter hereof. The Executive represents
that, in executing this Agreement, the Executive has not relied upon any representation or statement made by the Company or any
affiliate of the Company, other than those set forth herein, with regard to the subject matter, basis or effect of this Agreement
or otherwise.

 

THE EXECUTIVE IS ADVISED
TO READ THIS DOCUMENT AND THE RELEASE CAREFULLY. THIS DOCUMENT AND THE RELEASE ARE LEGAL DOCUMENTS. THEY INCLUDE AN AGREEMENT BY
THE EXECUTIVE TO GIVE UP ALL KNOWN AND UNKNOWN CLAIMS AGAINST THE COMPANY, ITS SUCCESSORS, SUBSIDIARIES AND AFFILIATES (AND THE
OTHER RELEASED PARTIES DESCRIBED IN THE RELEASE).

 

SIGNATURE PAGE FOLLOWS

 

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To indicate your understanding and acceptance
of the terms set forth in this Agreement, please sign and date this Agreement in the space provided below and return it to me.

 

 

	AVID TECHNOLOGY, INC.	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Jason Duva	 	 	2/6/13	 
	Print Name:   Jason Duva	 	 	Date	 
	 	 	 	 	 	 

	 	 	 	 	 	 
	Gary G. Greenfield	 	 	 	 
	 	 	 	 	 
	/s/ Gary G. Greenfield	 	 	2/6/13	 
	 	 	 	 	Date	 

 

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EXHIBIT A

 

RELEASE OF CLAIMS

 

This General Release
of Claims (the "General Release") is being executed by Gary G. Greenfield ("Executive"), for and in consideration
of certain amounts payable under the Executive Employment Agreement (the "Employment Agreement") originally entered into
between him and Avid Technology, Inc. (the "Company") on December 17, 2007 and as amended and restated on December 20,
2010 and March 14, 2011, and is conditioned upon the Company’s release of Executive, in such form as is reasonably satisfactory
to the Company, of any and all claims with respect to acts or omissions on the part of Executive that occurred prior to the date
that Executive executes this General Release. Executive agrees as follows:

 

Executive, on behalf
of himself and his agents, heirs, executors, administrators, successors and assigns, hereby releases and forever discharges the
Company, and any and all of the affiliates, stockholders, officers, directors, employees, agents, counsel, and successors and assigns
of the Company, from any and all complaints, claims, demands, damages, lawsuits, actions, and causes of action which he has or
may have against any one or more of them by reason of any event, matter, cause or thing which has occurred prior to the date this
General Release is executed by Executive arising from or related to his employment with the Company, or the termination of that
employment, including but not limited to: all employment discrimination claims under Title VII of the Civil Rights Act of 1964,
42 U.S.C. § 2000e et seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Americans With Disabilities
Act of 1990, 42 U.S.C., § 12101 et seq., the Equal Pay Act of 1963, 29 U.S.C. § 206(d), the Family and Medical Leave
Act, 29 U.S.C. § 2601 et seq., the Massachusetts Fair Employment Practices Act, M.G.L. c.151B, §1 et seq., and any and
all other similar applicable federal and state statutes, all as amended; all claims arising out of Section 806 of the Corporate
and Criminal Fraud Accountability Act of 2002, 18 U.S.C. § 1681 et seq., the Fair Credit Reporting Act, 15 U.S.C. § 1681
et seq., the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., and the Worker
Adjustment and Retraining Notification Act, 29 U.S.C. §2101 et seq., all as amended; all claims under the Massachusetts Civil
Rights Act, M.G.L. c.12 §§11H and 11I, the Massachusetts Equal Rights Act, M.G.L. c.93 §102 and M.G.L. c.214, §1C,
the Massachusetts Labor and Industries Act, M.G.L. c. 149, §1 et seq., and the Massachusetts Privacy Act, M.G.L. c.214, §1B
and the Massachusetts Maternity Leave Act , M.G.L. c. 149, §105(d), all as amended; all common law claims including, but not
limited to, actions in tort, defamation and breach of contract; all claims to any non-vested ownership interest in the Company,
contractual or otherwise, including but not limited to claims to stock or stock options; and any claim or damage (including a claim
for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above;
provided, however, that nothing in this General Release prevents the Executive from filing, cooperating with, or participating
in any proceeding before the EEOC or a state Fair Employment Practices Agency (except that the Executive acknowledges that he may
not be able to recover any monetary benefits in connection with any such claim, charge or proceeding), and provided further, however,
that nothing herein is intended to be construed as releasing the Company from any obligation set forth in the Employment Agreement.
Executive further hereby irrevocably and unconditionally waives any and all rights to recover any relief and damages concerning
the claims that are lawfully released in this Paragraph. Executive represents and warrants that he has not previously filed or
joined in any such claims against the Company or any of its affiliates or subsidiaries, and that he has not given or sold any portion
of any claims released herein to anyone else, and that he will indemnify and hold harmless the persons and entities released herein
from all liabilities, claims, demands, costs, expenses and/or attorneys' fees incurred as a result of any such assignment or transfer.

 

 

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Executive acknowledges
that this is a General Release, and he agrees and understands that he is specifically releasing all claims under the Age Discrimination
in Employment Act, 29 U.S.C. § 621 et seq, as amended by the Older Workers Benefit Protection Act. Executive acknowledges
that he has read and understands the foregoing General Release and executes it voluntarily and without coercion. He further acknowledges
that he is being advised herein in writing to consult with an attorney prior to executing this General Release, and that he has
had more than 21 days within which to consider this General Release. Executive understands that he has seven days following his
execution of this General Release to revoke it in writing, and that this General Release is not effective or enforceable until
after this seven-day period. For such revocation to be effective, notice must be received at the principal office of the Company,
no later than 11:59 p.m. on the seventh calendar day after the date on which Executive has signed this General Release. Executive
expressly agrees that, in the event he revokes this General Release, the Company shall not be obligated to pay him any amounts
the payment of which is expressly conditioned under the Employment Agreement on the effectiveness of this General Release and further
agrees that the release of claims by the Company set forth below will be null and void, ab initio.

 

Notwithstanding any
other provision of this General Release to the contrary or potentially interpretable to the contrary, it is expressly agreed and
understood that the Executive is not releasing hereunder (i) any rights or potential claims for indemnification as otherwise available
to Executive as an officer, director, agent or in any other capacity, (ii) any rights or potential claims with respect to any event,
matter, cause or thing which occurs after the date that Executive executes this General Release, including without limitation,
any such rights or potential claims which arise after the date that Executive executes this General Release with respect to the
Employment Agreement or with respect to any other agreement to which the Company and Executive are parties, or (iii) any claims
for benefits under employee benefit plans.

 

The Company, on behalf
of itself and its subsidiaries, hereby releases and forever discharges the Executive from any and all complaints, claims, demands,
damages, lawsuits, actions, and causes of action which it or they have or may have against the Executive by reason of any event,
matter, cause or thing which has occurred prior to the date this General Release is executed by the Company arising from or related
to his employment with the Company, or the termination of that employment, including but not limited to all common law claims including,
but not limited to, actions in tort, defamation and breach of contract; provided that the effectiveness of the Company’s
release hereunder shall be conditioned on the effectiveness of the Executive’s General Release.

 

IN WITNESS WHEREOF,
the Executive and the Company have executed this Release Agreement, on the dates set forth below.

 

	ACCEPTED AND AGREED TO:	 	 	ACCEPTED AND AGREED TO:	 
	 	 	 	 	 
	Gary G. Greenfield	 	 	Avid Technology, Inc.	 
	 	 	 	 	 
	/s/ Gary G. Greenfield	 	 	/s/ Jason Duva	 
	 	 	 		 
	2/6/13	 	 	2/6/13	 
	Date	 	 	Date	 
	 	 	 	 	 

 

 

    	2Exhibit 10.2

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

 

This Amended and Restated Executive Employment Agreement (this
“Agreement”) is entered into on February 6, 2013, effective as of February 11, 2013, by and between Avid Technology,
Inc., a Delaware corporation (the “Company”), and Louis Hernandez, Jr. (“Executive”).

 

Agreement

 

In consideration of the mutual promises and covenants herein
contained, and for other good and valuable consideration, Executive and the Company, intending to be legally bound, agree as follows:

 

 

Article 1. Services

 

1.1. Service. Commencing on February
11, 2013 (the “Effective Date”) and throughout the Term (as defined below), Executive shall serve as the Chief Executive
Officer of the Company upon the terms and conditions set forth below.

 

1.2. Duties. During the Term, Executive
agrees to perform such executive duties consistent with his position as may be assigned to him from time to time by the Board of
Directors of the Company (the “Board” or “Board of Directors”) and to devote his full working time and
attention to such duties. Following the Effective Date, Executive shall be permitted to continue his then-existing roles as an
adviser, consultant, and/or board member for other companies. However, Executive shall not increase his formal responsibilities
with respect to such companies, or take on new formal responsibilities with other companies, without prior Board approval.

 

1.3. No Conflicting Commitments.
During the Term, Executive will not undertake any commitments, engage or have an interest in any outside business activities or
enter into any consulting agreements which, in the good faith determination of the Board of Directors (excluding Executive), conflict
with the Company’s interests or which might reasonably be expected to impair the performance of Executive’s duties
as a full-time employee of the Company. Notwithstanding the foregoing, Executive may pursue personal interests (including, without
limitation, industry, civic and charitable activities) and attend to his personal investments, so long as such activities do not
interfere with the performance of his duties hereunder.

 

1.4. Board Membership. Executive
shall continue as a member of the Board of Directors as of the Effective Date and shall serve as a member of the Board without
additional compensation. During the Term, at each annual meeting of the Company’s stockholders at which Executive’s
membership on the Board expires, the Company will nominate Executive to serve as a member of the Board. Executive’s service
as a member of the Board will be subject to any required stockholder approval. Upon termination of Executive’s employment
with the Company for any reason, unless the Board affirmatively requests that Executive remain on the Board, Executive will be
deemed to have resigned from the Board voluntarily as of the last day of employment with the Company; and at the Board’s
request, Executive will execute any documents necessary to reflect such resignation.

 

 

    	 

    	 	

    
 

Article 2. Term

 

2.1. Term. The term of this Agreement
(the “Term”) shall commence on the Effective Date and shall expire on the fifth anniversary of the Effective Date unless
the Term is:

 

2.1.1 extended pursuant to the
provisions of this Section 2.1; or

 

2.1.2 terminated when Executive’s
employment terminates pursuant to Section 4.1 hereof;

 

provided, however, that notwithstanding the foregoing, the Term
shall continue to automatically be extended for periods of one (1) year so long as neither party provides written notice to the
other of its intent to terminate by a date which is at least one hundred and eighty (180) days prior to the then-current expiration
date of this Agreement, and, provided further, that (i) in the event that a Change-in-Control of the Company (as defined in Section
4.2.2) should occur during the twelve (12) months prior to the end of the then-current Term and Executive is still an employee
of the Company at that time, then the Term shall be deemed to expire no earlier than the date that is twelve (12) months after
the date of such Change-in-Control of the Company, (ii) in the event a Potential Change-in-Control Period (as defined in Section
4.2.6) exists within the twelve (12) months prior to the end of the then-current Term and Executive is still an employee of the
Company as of that date, the Term shall be deemed to expire no earlier than the date that is twelve (12) months after the commencement
of such Potential Change-in-Control Period and (iii) the expiration of the Term shall not adversely affect Executive’s rights
under this Agreement which have accrued prior to such expiration (including, for the avoidance of doubt, all severance pay, benefits
and other rights that accrue under Article 4 as a result of termination of Executive’s employment before the last day of
the Term). For the avoidance of doubt, if a Potential Change-in-Control Period shall commence in the twelve (12) months prior to
the end of the then-current Term and a Change-in-Control of the Company shall also occur during such twelve (12) month period,
and if Executive is still an employee of the Company on the date of the Change-in-Control of the Company, the Term shall be deemed
to expire no earlier than twelve (12) months after the date of such Change-in-Control. Unless the services of Executive have terminated
prior to or upon the end of the Term in accordance with the provisions of this Agreement, from and after the end of the Term, Executive
shall be an employee-at-will.

 

Article 3. Payments

 

3.1. Base Compensation. During the
Term, the Company shall pay Executive an annual base salary (the “Base Salary”) of Six Hundred and Fifty Thousand Dollars
($650,000), payable in regular installments in accordance with the Company’s usual payment practices. The Base Salary shall
be reviewed by the Board of Directors’ Compensation Committee at least annually and increased (but not decreased) accordingly
at the discretion of the Compensation Committee.

 

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3.2. Incentive Payments. Commencing
with the Company’s fiscal year ending December 31, 2013 and thereafter during the remainder of the Term, Executive shall
be eligible to participate in an annual performance bonus plan pursuant to which he shall be eligible to receive a target annual
bonus (the “Annual Incentive Bonus”) equal to One Hundred percent (100%) of his then Base Salary for full attainment
of his performance objectives (which may include company-wide objectives), with a maximum annual bonus equal to Two Hundred percent
(200%) of his then Base Salary for extraordinary performance on all or nearly all of his performance objectives. The amount of
Executive’s Annual Incentive Bonus, if any, shall be based on the degree to which Executive’s performance objectives
for a fiscal year have been met. The Compensation Committee of the Board (after discussion with the Executive and receiving input
from the Board) shall establish Executive’s performance objectives for fiscal year 2013 in writing as soon as practicable
after the Effective Date. Thereafter, during the Term, Executive’s performance objectives for each fiscal year shall be established
by the Compensation Committee of the Board (after discussion with Executive) during Executive’s annual performance review;
provided, that in no event shall the percentages set forth in this Section 3.2 to be used in calculating Executive’s Annual
Incentive Bonus be reduced. The Compensation Committee of the Board shall determine, for each fiscal year, the extent to which
Executive’s performance objectives for such fiscal year have been attained and the corresponding amount of the Annual Incentive
Bonus, if any, for such fiscal year. Any Annual Incentive Bonus earned by Executive with respect to a fiscal year shall be paid
to him promptly after the filing of the Company's Annual Report on Form 10-K for such fiscal year but in no event later than 2.5
months after the end of such fiscal year. The amount of, and Executive’s entitlement to receive, the Annual Incentive Bonus
for a fiscal year shall be determined without regard to whether Executive is employed on the date that such Annual Incentive Bonus
is payable.

 

3.3. Equity Grant.

 

3.3.1. Option Grant. Effective as
of the Effective Date, pursuant to a stock option agreement, Executive will be awarded an option to purchase Seven Hundred Twenty-Five
Thousand (725,000) shares of Avid Technology, Inc. common stock (the “Stock Option”). The exercise price will be the
closing price of the stock on the Effective Date (the “Start Price”).

 

a) One Hundred Thousand (100,000) shares
of the Stock Option will vest on a time-based schedule in equal 6.25% increments every three months, with the first vesting date
on May 11, 2013 and the last vesting date on February 11, 2017, as long as Executive is employed by the Company on each such vesting
date.

 

b) Six Hundred Twenty-Five Thousand (625,000)
shares of the Stock Option (the "ROE Option Shares") will vest in accordance with the following table, based upon improvement
in the Company's Return on Equity, or ROE (as defined below), in calendar year periods, commencing with calendar year 2013.  Improvements
for each calendar year shall be measured against a baseline ROE for the 12-month period ended December 31, 2012 ("Baseline").

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        ROE Percentage Point 

        Improvement in Calendar 

        Year Compared to 

        Baseline
	
        Percentage of

        ROE Option

        Shares to Vest

	14%	100%
	12%	90%
	10%	75%
	8%	60%
	6%	45%
	4%	30%
	2%	15%
	0%	0%

 

The Board (excluding Executive if he is a member of the Board)
shall make the final determination of ROE and the ROE percentage point improvement for purposes hereof for each calendar year no
later than the 1st day of March following the end of such calendar year.  The determination of ROE shall be derived upon
the Company's audited financial statements for the applicable calendar year and the unaudited financial statements for the Baseline
period.  The ROE Option Shares, if any, that are not vested at the end of the seventh calendar year shall be forfeited.

 

For the avoidance of doubt, the vested percentage at any time
shall not be less than the vested percentage at any prior time. For example, if ROE for 2013 is 4% above the Baseline, 30% of the
ROE Option will be vested; if ROE for 2014 is only 2% above the Baseline, the vested percentage shall remain 30%; and if ROE for
2015 is 6% above the Baseline, the vested percentage shall increase to 45% and shall not thereafter be reduced.

 

"Return on Equity" or "ROE" shall be determined
using the Company's non-GAAP net income as published in an earning release, adding the provision for income taxes and subtracting
the non-GAAP related tax adjustments for the applicable period and dividing by the average common stockholder equity during the
same period.

 

3.3.2. Restricted Stock Unit Grant.
Effective as of the Effective Date, pursuant to a restricted stock unit agreement, Executive will be granted One Hundred Thousand
(100,000) restricted stock units (the “Restricted Stock Unit Grant”), which will vest as to 25% of the units on February
11, 2014 and in equal 6.25% increments every three months thereafter, commencing on May 11, 2014, until fully vested on February
11, 2017, as long as Executive is employed by the Company on each such vesting date.

 

3.3.3. Representation Regarding Grant
Date. The Company represents and warrants that the Company has taken all corporate action necessary to create legally binding
rights on the part of Executive, as of the Effective Date, to the Stock Option and the Restricted Stock Unit Grant and that the
Effective Date is the grant date for all purposes, including (without limitation) for purposes of Section 409A of the United States
Internal Revenue Code of 1986, as amended (the “Code”).

 

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3.3.4. Covenant Regarding Registration.
The Company warrants that the shares of stock of the Company covered by the Stock Option and the Restricted Stock Unit Grant have
been registered under the Securities Act of 1933, as amended, by filing a registration statement or statements on Form S-8. The
Company shall use its best efforts to maintain the effectiveness of such registration statement or statements for so long as the
Stock Option and Restricted Stock Unit Grant are in effect and for so long as any of the shares of stock covered by the Stock Option
and Restricted Stock Unit Grant remain outstanding.

 

3.4. Benefits; Expenses. During the
Term, the Company shall provide Executive and his dependents with medical insurance and such other cash and noncash benefits, on
the same terms and conditions, as amended from time to time, as are generally made available by the Company to its full-time executive
officers. Executive shall be entitled to six (6) weeks of paid vacation per year. The Company shall pay, or reimburse Executive
for, all business expenses incurred by Executive which are related to the performance of Executive's duties, subject to timely
submission by Executive of payment or reimbursement requests and appropriate documentation, in accordance with the Company’s
reimbursement policies.

 

3.5. Participation in Equity Incentive
Plans. During the Term, in addition to the Stock Option and Restricted Stock Unit Grant, Executive shall be entitled to participate
in the Company’s stock incentive plans to the extent and in the manner determined by the Board of Directors in its absolute
discretion.

 

3.6. Relocation. Executive agrees
to purchase or otherwise arrange for long-term accommodations in the Greater Boston area no later than September 30, 2013. In lieu
of reimbursing relocation expenses, the Company shall make a one-time payment to Executive, as soon as practicable following the
Effective Date, of $365,000.

 

3.7. Corporate Apartment Near California
Office. The Company shall procure a furnished corporate apartment near the Company’s office in Daly City, California.
Executive shall be permitted to use such apartment for business-related visits to California.

 

3.8. One-Time Bonus. On the Effective
Date, the Company shall pay Executive a bonus of Four Hundred Thirty-Five Thousand Dollars ($435,000) (the "Signing Bonus").
If Executive’s employment with the Company is terminated prior to the first anniversary of the Effective Date pursuant to
either Section 4.1.3 or Section 4.1.5, Executive hereby authorizes the Company to deduct the amount of the Signing Bonus from monies
otherwise due to him and to the extent that the bonus is not so repaid in full, he agrees to pay the remaining amount to the Company
within 60 days after the effective date of the termination of his employment.

 

Article 4. Termination

 

4.1. Termination. Executive’s
employment hereunder shall terminate upon the occurrence of any of the following events:

 

4.1.1. Immediately upon Executive’s
death;

 

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4.1.2. The termination of Executive’s
employment by the Company for Disability (as defined below), to be effective immediately upon delivery of notice thereof;

 

4.1.3. The termination of Executive’s
employment by the Company for Cause (as defined below), to be effective immediately upon delivery of notice thereof;

 

4.1.4. The termination of Executive’s
employment by the Company, without Cause and not as a result of Executive’s death or Disability, to be effective 30 days
after the Company delivers written notice thereof to Executive;

 

4.1.5. The termination of Executive’s
employment by Executive without Good Reason (as defined below) to be effective 30 days after Executive delivers written notice
thereof from Executive to the Company; or

 

4.1.6. The termination of Executive’s
employment by Executive with Good Reason (as defined below), to be effective as set forth below.

 

4.2. For purposes of this Agreement, the
following definitions shall apply:

 

4.2.1. “Cause” shall
mean (i) Executive’s willful and material failure to perform (other than by reason of death or illness or other physical
or mental incapacity) his duties and responsibilities as assigned by the Board in accordance with Section 1.2 above, which is not
remedied after 30 days’ written notice from the Board (if such failure is susceptible to cure), (ii) a material breach of
any of the provisions of this Agreement or any other material written agreement (including the Company’s employee nondisclosure
and invention assignment agreement) between Executive and the Company, which is not substantially cured after 10 days’ written
notice from the Board (if such breach is susceptible to cure), (iii) Executive’s material violation of a material Company
policy (for purposes of this clause, the Company’s Conflicts of Interest policy shall be deemed a material policy), which
is not cured after 10 days’ written notice from the Board (if such violation is susceptible to cure), (iv) fraud, embezzlement
or other material dishonesty with respect to the Company, (v) conviction of a crime constituting a felony (which shall not include
any crime or offense related to traffic infractions or as a result of vicarious liability) or conviction of any other crime involving
fraud, dishonesty or moral turpitude or (vi) failing or refusing to cooperate, as reasonably requested in writing by the Board,
in any internal or external investigation of any matter in which the Company has a material (financial or otherwise) in the outcome
of the investigation, if such failure is not cured after 30 days’ written notice from the Board.

 

4.2.2. “Change-in-Control
of the Company” shall be deemed to have occurred only if any of the following events occur:

 

a) The acquisition by an individual, entity
or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of 30% or more of either (i) the then outstanding shares of common stock of the Company (the “Outstanding Company Common
Stock”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally
in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of
this Section 4.2.2, the following acquisitions shall not constitute a Change of Control: (A) any acquisition directly from the
Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the Company or any corporation controlled by the Company, or (D) any acquisition pursuant to a transaction which satisfies the
criteria set forth in clauses (A) and (B) of Section 4.2.2(c); or

 

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b) Individuals who, as of the Effective
Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, that any individual becoming a director subsequently to the Effective Date whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose,
any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect
to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board; or

 

c) Consummation of a reorganization, merger
or consolidation or sale or other disposition of all or substantially all of the operating assets of the Company (a “Business
Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals
and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting
Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 40% of, respectively,
the then-outstanding shares of common stock (or other equity interests, in the case of an entity other than a corporation), and
the combined voting power of the then-outstanding voting securities of the corporation or other entity resulting from such Business
Combination (which as used in this Section 4.2.2(c) shall include, without limitation, a corporation or other entity which as a
result of such transaction owns all or substantially all of the Company’s assets either directly or through one or more subsidiaries)
in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, as the case may be, and (B) no Person (excluding any corporation or other
entity resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation
resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then outstanding
shares of common stock (or other equity interests, in the case of an entity other than a corporation) of the corporation or other
entity resulting from such Business Combination, or the combined voting power of the then-outstanding voting securities of such
corporation or other entity;

 

provided, however, that as used in Section 4.3 and Article 5,
a “Change-in-Control of the Company” shall be deemed to occur only if any of the foregoing events occur and such event
that occurs is a “change in the ownership or effective control of a corporation, or a change in the ownership of a substantial
portion of the assets of a corporation” as defined in Treasury Reg. § 1.409A-3(i)(5).

 

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4.2.3. “Date of Termination”
shall mean the date of Executive’s “separation from service” with the Company, as determined under Treasury Reg.
§ 1.409A-1(h).

 

4.2.4. “Disability” shall mean
Executive’s absence from the full-time performance of his duties with the Company for more than 180 days during a 365 day
period as a result of incapacity due to mental or physical illness, as a result of which Executive is deemed “disabled”
by the institution appointed by the Company to administer its long-term disability plan (or any successor plan).

 

4.2.5. “Good Reason” shall mean
any material breach of this Agreement by the Company and/or the occurrence of any one or more of the following without Executive’s
prior express written consent: (i) a material diminution in Executive’s authority, duties or responsibility from those in
effect as of the Effective Date (including, without limitation, the removal or failure to reappoint Executive to the Board at any
time during the Term); (ii) a requirement that Executive report to any person or entity other than the Board; (iii) in connection
with a Change-in-Control of the Company (or in connection with any other Business Combination, as defined in Section 4.2.2(c),
or any other transfer or other disposition of the Company’s stock, without regard to whether such Business Combination or
transfer of the Company’s stock qualifies as a Change-in-Control of the Company), in which either the Company is not the
surviving entity or the stock or assets of the Company are acquired by another entity, Executive not being appointed as Chief Executive
Officer and member of the Board of the surviving or acquiring entity; (iv) a material change in Executive’s office location
(it being agreed that as of the Effective Date such office location shall be deemed to be Burlington, Massachusetts); provided,
however, that a termination for Good Reason by Executive can occur only if (a) Executive has given the Company a notice of the
existence of a condition giving rise to Good Reason within 90 days after the initial occurrence of the condition giving rise to
Good Reason and (b) the Company has not cured the condition giving rise to Good Reason within 30 days after receipt of such notice.
A termination for Good Reason shall occur 30 days after the end of such 30-day cure period.

 

4.2.6. A “Potential Change-in-Control
Period” shall be deemed to exist (A) commencing upon the date on which the Company shall have announced that it has entered
into a merger, acquisition or similar agreement, the consummation of which would result in the occurrence of a Change-in-Control
of the Company and ending on the earlier of (x) the date on which the transaction governed by such agreement has been consummated
or (y) the date on which the Company shall have announced that it has terminated such agreement, or (B) commencing on the date
on which any Person (as defined in Section 4.2.2(a)) shall publicly announce an intention to take actions which if consummated
would constitute a Change-in-Control of the Company and ending on the earlier of (x) the date on which such actions have caused
the consummation of a Change-in-Control of the Company or (y) the date on which such Person shall publicly announce the termination
of its intentions to take such actions.

 

4.2.7. “Pro Ration Percentage”
shall mean the amount, expressed as a percentage, equal to the number of days in the then current fiscal year through the date
that Executive’s employment with the Company terminates, divided by 365.

 

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4.2.8. “Termination Bonus Amount”
shall mean the greater of (i) Executive’s highest Annual Incentive Bonus earned in the two most recent full fiscal years
preceding the Date of Termination, or (ii) One Hundred Percent (100%) of Executive’s Base Salary in effect as of the Date
of Termination.

 

4.3. Adjustments Upon Termination.

 

4.3.1. Death or Disability. If during
the Term, Executive’s employment with the Company terminates pursuant to Section 4.1.1 or Section 4.1.2, subject to Section
4.6, the Company shall pay to Executive or Executive’s heirs, successors or legal representatives, as the case may be, (i)
any accrued but unpaid Base Salary through the date Executive’s employment with the Company terminates, plus (ii) any
accrued but unused vacation pay plus (iii) an amount equal to Executive’s annual Base Salary in effect as of the Date
of Termination (less, in the case of a termination of employment as a result of Disability, the amount of any payments owed to
Executive under any long-term disability plan of the Company for the first 12 months after the Date of Termination). Such amount
shall be paid in a lump sum within five (5) days after the Date of Termination. Notwithstanding any provision to the contrary in
any Company stock plan, or under the terms of any grant, award agreement or form for exercising any right under any such plan (including,
without limitation, the agreements evidencing the Stock Option and the Restricted Stock Unit Grant), any stock options, restricted
stock unit awards, stock appreciation rights or other equity participation rights held by Executive as of the date of death or
Disability shall become exercisable or vested, as the case may be, with respect to all time-based awards as to an additional number
of shares equal to the number that would have been exercisable or vested as of the end of the 12 month period immediately following
the date of death or Disability (as if Executive had remained employed by the Company until the end of such 12-month period). In
addition, Executive shall be eligible for a pro-rated portion of any performance-based vesting awards that have not vested as of
such date of death or Disability, determined based on the Company’s actual performance through the end of the performance
period.

 

4.3.2. With Cause or Without Good Reason.
If Executive’s employment with the Company terminates pursuant to Section 4.1.3 or Section 4.1.5, (a) all payments and benefits
provided to Executive under this Agreement shall cease as of the date Executive’s employment with the Company terminates,
except that Executive shall be entitled to any amounts earned, accrued or owing but not yet paid under Section 3.1, any accrued
but unused vacation pay and any benefits due in accordance with the terms of any applicable benefits plans and programs of the
Company, and (b) Executive shall forfeit the portion of any stock options and restricted stock unit awards that is not vested as
of the Date of Termination.

 

4.3.3. Without Cause or with Good Reason
Other than during a Potential Change-in-Control Period or After a Change-in-Control of the Company. If Executive’s employment
with the Company terminates pursuant to Section 4.1.4 or Section 4.1.6, other than during a Potential Change-in-Control period
or within 12 months after a Change-in-Control of the Company, subject to Section 4.6:

 

a) unless otherwise required by law to be
paid on a different date, within five (5) days following the Date of Termination, the Company shall pay Executive in a lump sum
in cash the sum of (i) any accrued but unpaid Base Salary through the date Executive’s employment with the Company terminates,
plus (ii) the Annual Incentive Bonus for the fiscal year preceding the fiscal year in which Executive’s employment with the
Company terminates, if unpaid, plus (iii) any accrued but unused vacation pay;

 

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b) the Company shall pay Executive, as severance
pay, an amount equal to his annual Base Salary in effect as of the Date of Termination. Such amount shall be paid in a lump sum
within five (5) days after the release of claims described in Section 4.6 becomes effective, provided however, that payment shall
in any event be made no later than the last day of the “applicable 21⁄2 month period” prescribed by Treas. Reg.
§ 1.409A-1(b)(4)(i);

 

c) the Company shall pay Executive incentive
compensation for the fiscal year in which the termination of Executive’s employment with the Company occurs in the amount
of the Termination Bonus Amount (as defined above) multiplied by the sum of One Hundred Percent (100%) plus the Pro Ration Percentage;
such payment will be made at the same time as the severance payment required by paragraph b), above;

 

d) if Executive is eligible to receive and
elects to continue receiving any group medical and dental insurance coverage under the Consolidated Omnibus Budget Reconciliation
Act (“COBRA”), the Company shall pay to Executive the following amount for each month that starts after the Date of
Termination and on or before the earliest of (x) the first anniversary of the Date of Termination, (y) the date Executive’s
coverage ends by reason of failure to pay the required premium or (z) the date on which Executive becomes eligible to receive group
medical and dental insurance benefits from another employer that are substantially equivalent (including, without limitation, equivalent
as to benefits, premium costs and co-pay amounts) to those provided by the Company as of the Date of Termination: 167 percent of
the excess of (i) the total monthly premium for the coverage that Executive elects to receive over (ii) the monthly amount
that the Company requires its Chief Executive Officer to pay for such coverage. Subject to Section 4.5 (Section 409A provisions),
the payment for each month shall be made during such month. Executive agrees to notify the Company in writing promptly upon becoming
eligible to receive the group medical and dental insurance described in clause (z) of the immediately preceding sentence from another
employer;

 

e) the Company shall provide Executive,
at the Company’s sole cost, with full executive outplacement assistance with an agency selected by Executive (and reasonably
satisfactory to the Company), provided that no outplacement benefits shall be provided after the end of the second calendar year
following the calendar year in which the Date of Termination occurs;

 

f) notwithstanding any provision to the
contrary in any Company stock plan, or under the terms of any grant, award agreement or form for exercising any right under any
such plan (including, without limitation, the agreements evidencing the Stock Option and the Restricted Stock Unit Grant), any
stock options, restricted stock unit awards, stock appreciation rights or other equity participation rights held by Executive as
of the date Executive’s employment with the Company terminates shall become exercisable or vested, as the case may be, with
respect to all time-based vesting awards as to an additional number of shares equal to the number that would have been exercisable
or vested as of the end of the 12 month period immediately following the date Executive’s employment with the Company terminates
(as if Executive had remained employed by the Company until the end of such 12-month period), and

 

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g) Executive shall be entitled to exercise
any such options or other awards or equity participation rights until 12 months after the date Executive’s employment with
the Company terminates (but not after the latest expiration date prescribed by the applicable award agreement), but all performance-based
vesting awards that have not vested as of the end of the fiscal year in which Executive’s employment with the Company terminates
(determined based on actual performance) shall be forfeited as of such date. No other payments or benefits shall be due under this
Agreement to Executive, but Executive shall be entitled to any benefits accrued or earned in accordance with the terms of any applicable
benefit plans and programs of the Company.

 

4.3.4. Without Cause or with Good Reason
After a Change-in-Control of the Company. If, within 12 months after a Change-in-Control of the Company, Executive shall terminate
Executive’s employment pursuant to Section 4.1.6 or the Company shall terminate Executive’s employment pursuant to
Section 4.1.4, then in any such event, subject to Section 4.6:

 

a) Unless otherwise required by law to be
paid on a different date, the Company shall pay Executive the following amounts as severance pay (and without regard to the provisions
of any benefit plan) in a lump sum in cash within five (5) days after the release of claims described in Section 4.6 becomes effective
(and no later than the last day of the “applicable 21⁄2 month period” prescribed by Treas. Reg. § 1.409A-1(b)(4)(i)):

 

(i) the sum of (A) Executive’s accrued
but unpaid Base Salary through the date Executive’s employment with the Company terminates, plus (B) the Annual Incentive
Bonus for the fiscal year preceding the fiscal year in which Executive’s employment with the Company terminates, if unpaid,
(C) the product of (x) Executive’s Termination Bonus Amount, and (y) One Hundred Percent (100%) plus the Pro Ration Percentage,
plus (D) any accrued but unused vacation pay; and

 

(ii) the amount equal to one and a half
(1.5) times the sum of (i) Executive’s Base Salary in effect as of the date Executive’s employment with the Company
terminates, plus (ii) Executive’s Termination Bonus Amount.

 

b) if Executive is eligible to receive and
elects to continue receiving any group medical and dental insurance coverage under COBRA, the Company shall pay to Executive the
amount described in Section 4.3.3(d), above, for each month that starts after the Date of Termination and on or before the earliest
of (x) the date that is eighteen (18) months after the Date of Termination, (y) the date Executive’s coverage ends by
reason of failure to pay the required premium or (z) the date on which Executive becomes eligible to receive group medical and
dental insurance benefits from another employer that are substantially equivalent (including, without limitation, equivalent as
to benefits, premiums and co-pay amounts) to those provided by the Company as of the Date of Termination (Executive agrees to notify
the Company in writing promptly upon becoming eligible to receive such group medical and dental insurance from another employer);

 

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c) notwithstanding anything to the contrary
in any Company stock plan, or under the terms of any grant, award agreement or form for exercising any right under such plan (including,
without limitation, the agreements evidencing the Stock Option and the Restricted Stock Unit Grant), all outstanding stock options,
restricted stock unit awards, stock appreciation rights and other equity participation rights then held by Executive with respect
to the common stock of the Company (or securities exchanged for such common stock in connection with the Change-in-Control of the
Company) shall immediately become fully vested and exercisable, and Executive shall be entitled to exercise any such options or
other awards or equity appreciation rights until 18 months after the date Executive’s employment with the Company terminates
(but not after the latest expiration date prescribed by the applicable award agreement); and

 

d) the Company shall provide Executive,
at the Company’s sole cost, with full executive outplacement assistance with an agency selected by Executive (and reasonably
satisfactory to the Company), provided that no outplacement benefits shall be provided after the end of the second calendar year
following the calendar year in which Date of Termination occurs.

 

4.3.5. Without Cause or with Good Reason
During a Potential Change-in-Control Period. If, during the existence of a Potential Change-in-Control Period, Executive shall
terminate Executive’s employment pursuant to Section 4.1.6 or the Company shall terminate Executive’s employment pursuant
to Section 4.1.4, then in any such event, subject to Section 4.6, Executive shall receive the payments, benefits and rights set
forth in Section 4.3.4.

 

 

4.4. Excess Parachute Payments.

 

4.4.1. Notwithstanding any other provisions
of this Agreement, in the event that (a) any payment or benefit received or to be received by Executive (including any payment
or benefit received or to be received in connection with a Change-in-Control or the termination of Executive's employment, whether
pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and benefits being hereinafter
referred to as the "Total Payments") is reasonably likely to be treated as a “parachute payment” (as defined
in Section 280G(b)(2) of the Code) and (b) Executive’s forfeiture of payments due would result in the aggregate after-tax
amount that Executive receives being greater than the aggregate after-tax amount he would receive if there were no such forfeiture,
then payments otherwise required by this Agreement that do not constitute deferred compensation within the meaning of Section 409A
of the Code shall be reduced (if necessary, to zero) to the extent necessary to ensure that Executive does not receive a “parachute
payment” under Section 280G(b)(2) of the Code. To the extent permitted by Section 409A of the Code, Executive may elect to
have noncash amounts reduced (or eliminated) prior to any reduction of any cash amounts.

 

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4.4.2 For purposes of this limitation, (i)
no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner
as not to constitute a "payment" within the meaning of Section 280G(b) of the Code shall be taken into account, (ii)
no portion of the Total Payments shall be taken into account which, in the opinion of tax counsel ("Tax Counsel") reasonably
acceptable to Executive and selected by the accounting firm which was, immediately prior to the Change-in-Control, the Company's
independent auditor (the "Auditor"), does not constitute a "parachute payment" within the meaning of Section
280G(b)(2) of the Code, including by reason of Section 280G(b)(4)(A) of the Code, (iii) payments shall be reduced only to the extent
necessary so that the Total Payments (other than those referred to in clauses (i) or (ii)) in their entirety constitute reasonable
compensation for services actually rendered within the meaning of Section 280G(b)(4)(B) of the Code or are otherwise not treated
as “parachute payments” under Section 280G(b)(2) of the Code, in the opinion of Tax Counsel, and (iv) the value of
any noncash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Auditor in accordance
with the principles of sections 280G(d)(3) and (4) of the Code.

 

4.5. Section 409A.

 

4.5.1. Each payment to Executive under this
Article 4 shall be treated as a separate payment for purposes of Section 409A of the Code. Payments hereunder shall first be made
from the portion that does not consist of nonqualified deferred compensation until it is exhausted and then shall be made from
the portion, if any, that does constitute nonqualified deferred compensation. If Executive is a “specified employee”
as defined in Section 409A(a)(2)(B)(i) of the Code, the commencement of the delivery of any payments that constitute nonqualified
deferred compensation will be delayed to the earlier of (a) date that is six (6) months and one (1) day after Executive’s
Date of Termination or (b) a date determined by the Company that is within thirty (30) days after Executive’s death
(the “Earliest Payment Date”). Any payments that are delayed pursuant to the preceding sentence shall be paid on the
Earliest Payment Date. The determination of whether, and the extent to which, any of the payments to be made to Executive hereunder
are nonqualified deferred compensation shall be made after the application of all applicable exclusions under Treasury Reg. §
1.409A-1(b)(4) and (9). Any payments that are intended to qualify for the exclusion for separation pay due to involuntary separation
from service set forth in Treasury Reg. § 1.409A-1(b)(9)(iii) must be paid no later than the last day of the second taxable
year of Executive following the taxable year of Executive in which Executive’s employment with the Company terminates. Executive
shall not be considered to have terminated employment with the Company for purposes of any payments under this Agreement which
are subject to Section 409A of the Code until Executive has incurred a “separation from service” from the Company within
the meaning of Section 409A of the Code. To the extent required to avoid an accelerated or additional tax under Section 409A of
the Code, amounts reimbursable to Executive shall be paid to Executive on or before the last day of the year following the year
in which the expense was incurred and the amount of expenses eligible for reimbursement (and in kind benefits provided to Executive)
during one year may not affect amounts reimbursable or provided in any subsequent year.

 

4.5.2. The parties acknowledge and agree
that the interpretation of Section 409A of the Code and its application to the terms of this Agreement is uncertain and may be
subject to change as additional guidance and interpretations become available. Anything to the contrary herein notwithstanding,
all benefits and payments required by this Agreement are intended to be exempt from Section 409A of the Code or to comply with
the requirements of Section 409A of the Code, and this Agreement shall be administered, construed, and interpreted consistent with
such intent. If, however, any such benefit or payment is nevertheless deemed to not comply with Section 409A of the Code, the Company
and Executive agree to renegotiate in good faith any such benefit or payment (including, without limitation, as to the timing of
any severance payments payable hereof) so that either (i) Section 409A of the Code will not apply or (ii) compliance with Section
409A of the Code will be achieved; provided, however, that any resulting renegotiated terms shall provide to Executive the after-tax
economic equivalent of what otherwise has been provided to Executive pursuant to the terms of this Agreement; provided further,
that any deferral of payments or other benefits shall be only for such time period as may be required to comply with Section 409A;
and provided, further, that payments or other benefits that occur as a result of the application of this Section 4.5.2 shall themselves
be exempt from or comply with Section 409A of the Code.

 

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4.6. Release. In order to be eligible
to receive any of the payments or benefits under Sections 4.3.3, 4.3.4 or 4.3.5, Executive (or his personal representative, if
applicable) shall be required to execute and deliver to the Company (without subsequent revocation) and allow to become effective
and unrevoked, within sixty (60) days after the Date of Termination or such shorter period as the Company then provides, a binding
severance and mutual release agreement in a form provided by and reasonably satisfactory to the Company which shall contain a release
of claims by Executive substantially in the form attached hereto as Exhibit A.

 

Article 5. Non-Competition and Non-Solicitation

 

5.1. Non-Competition and Non-Solicitation.
Executive acknowledges and recognizes the highly competitive nature of the businesses of the Company and accordingly agrees that
while Executive is employed by the Company and the following period: (a) one year after the date Executive’s employment with
the Company terminates, in the case of a termination other than within 12 months after a Change-in-Control of the Company, or (b)
18 months after the date Executive’s employment with the Company terminates, in the case of a termination within 12 months
after a Change-in-Control of the Company:

 

5.1.1. Executive will not perform services
for or own an interest in (except for investments of not more than five percent (5%) of the total outstanding shares or other equity
interests of a company or entity in which Executive does not actively participate in management) any firm, person or other entity
that competes in any geographic area with the Company in the business of the development, manufacture, promotion, distribution
or sale of professional or consumer film, video or audio production tools, including, but not limited to, editing, special effects,
3D, animation, live sound, broadcast or newsroom products or systems, content-creation tools, media storage or other business or
services in which the Company is engaged or plans (as evidenced by consideration by the Company’s executive staff or by the
Board) to engage at the time Executive’s employment with the Company terminates.

 

5.1.2. Executive will not directly or indirectly
assist others in engaging in any of the activities in which Executive is prohibited to engage by Section 5.1.1.

 

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5.1.3. Executive will not directly or indirectly
either alone or in association with others (a) solicit, or permit any organization directly or indirectly controlled by Executive
to solicit, any employee of the Company to leave the employ of the Company, or (b) solicit for employment, hire or engage as an
independent contractor, or permit any organization directly or indirectly controlled by Executive to solicit for employment, hire
or engage as an independent contractor, any natural person who is then employed by the Company at any time. This Section 5.1.3
(i) shall not apply to the solicitation, hiring or engagement of any individual whose employment with the Company has been terminated
or whose engagement to the Company as an independent contractor has been terminated and (ii) shall not apply to the solicitation,
hiring or engagement of any individual arising from such individual’s affirmative response to a general recruitment effort
carried out through a public solicitation or a general solicitation.

 

5.1.4. Executive will not directly or indirectly
either alone or in association with others solicit, or permit any organization directly or indirectly controlled by Executive to
solicit, any current or future customer or supplier of the Company to cease doing business in whole or in part with the Company
or otherwise adversely modify his, her or its business relationship with the Company.

 

5.2. Reasonableness of Restrictions.
It is expressly understood and agreed that (a) although Executive and the Company consider the restrictions contained in this Article
5 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or
any other restriction contained in this Article 5 is unenforceable, such restriction shall not be rendered void but shall be deemed
to be enforceable to such maximum extent as such court may judicially determine or indicate to be enforceable and (b) if any restriction
contained in this Agreement is determined to be unenforceable and such restriction cannot be amended so as to make it enforceable,
such finding shall not affect the enforceability of any of the other restrictions contained herein.

 

5.3. Remedies for Breach. Executive
acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach of any of the provisions of
this Section 5 would be inadequate and, in recognition of this fact, Executive expressly agrees that, in the event of such a breach
or threatened breach, in addition to any remedies at law, the Company shall be entitled to obtain equitable relief in the form
of specific performance, temporary restraining orders, temporary or permanent injunctions or any other equitable remedy which may
then be available.

 

Article 6. Miscellaneous

 

6.1. Indemnification.

 

6.1.1. Executive shall be entitled to indemnification
as set forth in Article Eleventh of the Company’s Certificate of Incorporation, a copy of which has been provided to Executive.

 

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6.1.2. A directors’ and officers’
liability insurance policy (or policies) shall be kept in place, during the Term and thereafter until at least the fourth anniversary
of the date this Agreement is terminated for any reason, providing coverage to Executive that is no less favorable to him in any
respect (including, without limitation, with respect to scope, exclusions, amounts, and deductibles) than the coverage then being
provided to any other present or former officer or director of the Company.

 

6.2. Counsel Fees. The Company shall
pay to Executive reimbursement for all legal fees and expenses incurred by Executive in disputing in good faith any issue hereunder
relating to the termination of Executive’s employment, in seeking in good faith to obtain or enforce any benefit or right
provided by this Agreement Such reimbursement payments shall be made within 15 days after delivery of Executive’s written
requests for payment accompanied with such evidence of fees and expenses incurred as the Company reasonably may require. Executive’s
written requests for payment must be delivered to the Company within one hundred and twenty (120) days after Executive incurs such
fees or expenses.

 

6.3. No Mitigation. The Company agrees
that, except as specifically set forth in Section 4.3.3(d) and Section 4.3.4(b) regarding payments during the COBRA period, (i)
if Executive's employment is terminated during the term of this agreement, Executive is not required to seek other employment or
to attempt in any way to reduce any amounts payable to Executive by the Company and (ii) the amount of any payment provided hereunder
shall not be reduced by any compensation earned by Executive.

 

6.4. Obligation of Successors. Any
successor to substantially all of the Company’s assets and business, whether by merger, consolidation, purchase of assets
or otherwise, shall succeed to the rights and obligations of the Company hereunder. As used in this Agreement, “Company”
shall mean the Company as defined above and any successor to its assets and business or which otherwise becomes bound by all the
terms and provisions of this Agreement by operation of law.

 

6.5. Notice. All notices required
or permitted hereunder shall be in writing and deemed effectively given (i) when delivered in person, (ii) on the third business
day after mailing by registered or certified mail, postage prepaid, (iii) on the next business day after delivery to an air courier
for next day delivery, paid by the sender, or (iv) when sent by telecopy or facsimile transmission during normal business hours
(9:00 a.m. to 5:00 p.m.) where the recipient is located (or if sent after such hours, as of commencement of the next business day),
followed within 24 hours by notification pursuant to any of the foregoing methods of delivery, in all cases addressed to the other
party hereto as follows:

 

If to the Company:

 

Avid Technology, Inc.

75 Network Drive

Burlington, MA 01803

Attention: General Counsel

Facsimile: (978) 548-4639

 

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or by email to the Company's General Counsel at his or her then-current
email address.

 

If to Executive:

 

at the latest address or email address on the personnel records
of the Company or at such other address or email address as either party shall designate to the other in accordance with this Section
6.5.

 

6.6. Survival. The respective rights
and obligations of the parties under this Agreement shall survive any termination of Executive’s employment to the extent
necessary to the intended preservation of such rights and obligations. Notwithstanding the termination of this Agreement or Executive’s
services hereunder for any reason, Article 5 shall survive any such termination.

 

6.7. Complete Agreement; Amendments.
This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes any
and all prior agreements between the parties with respect to the subject matter hereof. This Agreement may not be modified or amended
except upon written amendment approved by the Compensation Committee of the Board, and executed by a duly authorized officer of
the Company and by Executive. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any time prior or subsequent time.

 

6.8. Applicable Law. This Agreement
shall be interpreted in accordance with the laws of the Commonwealth of Massachusetts (without reference to the conflicts of laws
provisions thereof) and the parties hereby submit to the jurisdiction of the courts of that state.

 

6.9. Waiver of Jury Trial. Executive
hereby irrevocably waives any right to a trial by jury in any action, suit, or other legal proceeding arising under or relating
to any provision of this Agreement.

 

6.10. Severability. If any non-material
provision of this Agreement shall be held invalid or unenforceable, it shall be deemed to be deleted or qualified so as to be enforceable
or valid to the maximum extent permitted by law, and the remaining provisions shall continue in full force and effect.

 

6.11. Binding Effect. This Agreement
shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, legal
representatives, successors, assigns and personal representatives, except that the duties, responsibilities and rights of Executive
under this Agreement are of a personal nature and shall not be assignable or delegatable in whole or in part by Executive, except
to the extent that the rights of Executive hereunder may be enforceable by his heirs, executors, administrators or legal representatives.
If Executive should die while any amounts would still be payable to Executive hereunder if Executive had continued to live, all
such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Executive’s
devisee, legatee or other designee or, if there be no such designee, to Executive’s estate.

 

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6.12. Captions. Captions of sections
have been added only for convenience and shall not be deemed to be a part of this Agreement.

 

6.13. Withholding. The Company may
withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

 

6.14. Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute
one in the same instrument.

 

6.15. Further Assurances. Each party
hereto agrees to furnish and execute such additional forms and documents, and to take such further action, as shall be reasonable
and customarily required in connection with the performance of this Agreement or the payment of benefits hereunder.

 

IN WITNESS WHEREOF, the undersigned have duly executed and delivered
this Agreement as of the date first above written.

 

 

	 	 	 	Company
	 	 	 	
         

        

	 	 	 	/s/ Jason A. Duva
	 	 	 	Jason A. Duva
	 	 	 	
        VP, General Counsel & Corporate Secretary

        

 

 

	 	 	 	Executive
	 	 	 	 
	 	 	 	/s/ Louis Hernandez
	 	 	 	Louis Hernandez

 

    	18

    	 

    
 

EXHIBIT A

 

MUTUAL RELEASE OF CLAIMS PROVISIONS

 

 

This General Release of Claims (the "General
Release") is being executed by Avid Technology, Inc. (the “Company”) and Louis Hernandez, Jr. ("Executive"),
for and in consideration of certain amounts payable under the Executive Employment Agreement (the "Agreement") entered
into between him and the Company as of February 11, 2013. The Company and Executive agree as follows:

 

The Company, on behalf of itself, its affiliates
and its subsidiaries (collectively, the “Affiliated Entities”), hereby releases and forever discharges Executive, and
Executive’s spouse and child or children (if any), Executive’s heirs, beneficiaries, devisees, executors, administrators,
attorneys, personal representatives, successors and assigns (the “Executive’s Released Parties”) from to any
and all complaints, claims, demands, lawsuits, actions, and causes of actions which the Company or any Affiliated Entity has or
may have against each of the Executive’s Released Parties (whether individually or collectively) by reason of any event,
matter, cause or thing which has occurred prior to the date this General Release is executed by the Company arising from or related
to his employment and other service with and to the Company. The Company (on behalf of itself and the Affiliated Entities) further
hereby irrevocably and unconditionally waives any and all rights to recover any relief and damages concerning the claims that are
lawfully released in this Paragraph. The Company represents and warrants that neither the Company nor any Affiliated Entity has
previously filed or joined in any such claims against any Executive’s Released Party, and that neither the Company nor any
Released Party has given or sold any portion of any claims released herein to anyone else, and that the Company will indemnify
and hold harmless the Executive’s Released Parties from all liabilities, claims, demands, costs, expenses and/or attorneys'
fees incurred as a result of any such assignment or transfer.

 

Executive, on behalf of himself and his
agents, heirs, executors, administrators, successors and assigns, hereby releases and forever discharges the Company, and any and
all of the affiliates, stockholders, officers, directors, employees, agents, counsel, and successors and assigns of the Company,
from any and all complaints, claims, demands, damages, lawsuits, actions, and causes of action which he has or may have against
any one or more of them by reason of any event, matter, cause or thing which has occurred prior to the date this General Release
is executed by Executive arising from or related to his employment with the Company, or the termination of that employment, including
but not limited to: all employment discrimination claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e
et seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Americans With Disabilities Act of 1990, 42
U.S.C., § 12101 et seq., the Equal Pay Act of 1963, 29 U.S.C. § 206(d), the Family and Medical Leave Act, 29 U.S.C. §
2601 et seq., the Massachusetts Fair Employment Practices Act, M.G.L. c.151B, §1 etseq., and any and all other similar applicable
federal and state statutes, all as amended; all claims arising out of Section 806 of the Corporate and Criminal Fraud Accountability
Act of 2002, 18 U.S.C. § 1681 et seq., the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., the Employee Retirement
Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., and the Worker Adjustment and Retraining Notification
Act, 29 U.S.C. §2101 etseq., all as amended; all claims under the Massachusetts Civil Rights Act, M.G.L. c.12 §§11H
and 11I, the Massachusetts Equal Rights Act, M.G.L. c.93 §102 and M.G.L. c.214, §1C, the Massachusetts Labor and Industries
Act, M.G.L. c. 149, §1 etseq., the Massachusetts Privacy Act, M.G.L. c.214, §1B and the Massachusetts Maternity Leave
Act , M.G.L. c. 149, §105(d), all as amended; all common law claims including, but not limited to, actions in tort, defamation
and breach of contract; all claims to any non-vested ownership interest in the Company, contractual or otherwise, including but
not limited to claims to stock or stock options; and any claim or damage (including a claim for retaliation) under any common law
theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that nothing in this
Agreement prevents Executive from filing, cooperating with, or participating in any proceeding before the EEOC or a state Fair
Employment Practices Agency (except that Executive acknowledges that he may not be able to recover any monetary benefits in connection
with any such claim, charge or proceeding), and provided further, however, that nothing herein is intended to be construed as releasing
the Company from any obligation set forth in the Agreement or pursuant to any employee benefit plan. Executive further hereby irrevocably
and unconditionally waives any and all rights to recover any relief and damages concerning the claims that are lawfully released
in this Paragraph. Executive represents and warrants that he has not previously filed or joined in any such claims against the
Company or any of its affiliates or subsidiaries, and that he has not given or sold any portion of any claims released herein to
anyone else, and that he will indemnify and hold harmless the persons and entities released herein from all liabilities, claims,
demands, costs, expenses and/or attorneys' fees incurred as a result of any such assignment or transfer.

 

    	1

    	 

    
 

Executive acknowledges that this is a General
Release, and he agrees and understands that he is specifically releasing all claims under the Age Discrimination in Employment
Act, 29 U.S.C. § 621 et seq, as amended by the Older Workers Benefit Protection Act. Executive acknowledges that he has read
and understands the foregoing General Release and executes it voluntarily and without coercion. He further acknowledges that he
is being advised herein in writing to consult with an attorney prior to executing this General Release, and that he has had more
than 21 days within which to consider this General Release. Executive understands that he has seven days following his execution
of this General Release to revoke it in writing, and that this General Release is not effective or enforceable until after this
seven-day period. For such revocation to be effective, notice must be received by ________, at the principal office of the Company,
no later than 11:59 p.m. on the seventh calendar day after the date on which Executive has signed this General Release. Executive
expressly agrees that, in the event he revokes this General Release, the Company shall not be obligated to pay him any amounts
the payment of which is expressly conditioned under the Agreement on the effectiveness of this General Release.

 

Notwithstanding any other provision of this
General Release to the contrary or potentially interpretable to the contrary, it is expressly agreed and understood that Executive
is not releasing hereunder (i) any rights or potential claims for indemnification as otherwise available to Executive as an officer,
director, agent or in any other capacity, (ii) any rights or potential claims with respect to any event, matter, cause or thing
which occurs after the date that Executive executes this General Release, including without limitation, any such rights or potential
claims which arise after the date that Executive executes this General Release with respect to the Agreement or with respect to
any other agreement to which the Company and Executive are parties, or (iii) any claims for payments or benefits under the Agreement
or any employee benefit plan.

 

    	2

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