Document:

Exhibit

Exhibit 10.1

STANDSTILL AGREEMENT
This Standstill Agreement, dated as of February 16, 2018 (this “Agreement”), is by and among Avid Technology, Inc., a Delaware corporation (the “Company”) and Cove Street Capital, LLC (together with its Affiliates, the “Investor”).  The Investor and the Company shall each be referred to herein as a “Party” and shall collectively be referred to herein as the “Parties.” 
In consideration of, and reliance upon, the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1.Board Representation and Board Matters.  Each Party agrees that:
(a)Prior to the time the Company files with the Securities and Exchange Commission (the “SEC”) its definitive proxy statement with respect to the annual meeting of stockholders of the Company to be held in 2018 (the “2018 Annual Meeting,” and such proxy statement, the “2018 Proxy Statement”)), the Board of Directors of the Company (the “Board’“) shall take such actions as are necessary to increase the size of the Board by one (1) directorship and shall appoint Daniel B. Silvers (“Mr. Silvers” or the “Designee”) as a Class III director to fill the vacancy so created, to serve for a term expiring at the annual meeting of stockholders of the Company to be held in 2020.  The Company’s obligation under this Section 1(a) is conditioned on the Board’s Nominating and Governance Committee’s completion, to its reasonable satisfaction with the results, of its review of the Designee, including a satisfactory background check.

(b)Upon his election, the Designee will be offered the opportunity to become a member of the Strategy Committee of the Board.  Consistent with usual Board practice applied to all Board members, upon serving on the Board for one year the Designee will be considered for assignment to either the Compensation Committee or Nominating and Governance Committee of the Board; provided, that once the Designee is appointed to any Board committee(s), the Designee, subject to satisfying the Company’s governance policies in effect as of the date hereof and from time to time (to the extent any changes in the Company’s governance policies are not, and could not reasonably be construed to have been, implemented for the purpose of removing the Designee from a committee) and applicable law and the rules and regulations of the NASDAQ (or any other securities exchange on which the Company’s securities are then traded) as in effect from time to time, shall continue to have the right to serve on such committee(s) for so long as he serves on the Board.  The Investor acknowledges that if the Board determines in its good faith judgment that the Designee no longer satisfies the Company’s governance policies, applicable law or the rules and regulations of the NASDAQ (or any other securities exchange on which the Company’s securities are then traded), as in effect from time to time, the Board shall have the discretion to remove the Designee from any committee(s) of the Board on which the Designee is then serving, so long as (i) the treatment of the Designee is not inconsistent with the treatment of the other directors and (ii) any changes in the Company’s governance policies are not, and could not reasonably be construed to have been, implemented for the purpose of removing the Designee from a committee(s).  

(c)The Investor shall, and shall cause its Affiliates to, immediately cease all communication efforts, direct or indirect, in furtherance of any potential efforts to influence the management and policies of the Company.

(d)If the Designee is not appointed pursuant to Section 1(a) hereof, or resigns (other than a resignation described in the definition of Standstill Period under Section 18) or is otherwise unable 

to serve as director (other than as a result of removal or resignation pursuant to Section 1(f) hereof), the Company and the Investor shall select a replacement director, mutually acceptable to the Company and the Investor, which acceptance shall not be unreasonably withheld.    

(e)The Investor agrees that neither it nor any of its Affiliates (i) will pay any compensation to the Designee (including any replacement director Designee selected pursuant to Section 1(d)) regarding the Designee’s service on the Board or any committee thereof or (ii) will have any agreement, arrangement or understanding, written or oral, with the Designee (including any replacement director Designee selected pursuant to Section 1(d)) regarding the Designee’s service on the Board or any committee thereof (including without limitation pursuant to which the Designee will be compensated for his service as a director on the Board or any committee thereof).

(f)lf (i) either the Investor materially breaches its commitments or obligations under this Agreement, including its acknowledgement and agreement hereunder that the Designee will not share confidential information relating to the Company with the Investor or any of its principals, directors, members, general partners, officers, other employees or attorney, or the Designee materially breaches his commitments or obligations under the letter agreement between the Designee and the Company entered into on the date hereof, upon written notice from the Company (specifying the relevant facts), or (ii) at any time prior to the expiration of the Standstill Period a Qualifying Disposition occurs, then, upon or immediately following the Company’s notice of such material breach or the occurrence of such Qualifying Disposition, as applicable, the Investor agrees that the Designee (or his replacement director selected pursuant to Section 1(d)) shall promptly tender his resignation from the Board, and the provisions of Sections 1(a), 1(b) and 1(d) shall terminate with respect to Mr. Silvers, except that if such material breach can be cured and is cured within the time period set forth in the immediately following sentence.  The Investor shall have fifteen (15) business days after the date of such written notice within which to cure its material breach and this Section 1(f) shall not apply in the event of such cure.

2.Proxy Solicitation Materials.  The Company agrees that the 2018 Proxy Statement and all other solicitation materials to be delivered to stockholders in connection with the 2018 Annual Meeting will be prepared in accordance with, and in a manner consistent with the intent and purpose of, this Agreement.  The Company will provide the Investor with a true and complete copy of any portion of the 2018 Proxy Statement or other “soliciting materials” (as used in Rule 14a-6 promulgated under the Exchange Act) with respect to the 2018 Annual Meeting, in each case that refer to the Investor, the Designee or this Agreement, at least two business days before filing such materials with the SEC in order to permit the Investor a reasonable opportunity to review and comment on such portions, and will consider in good faith any comment received from the Investor and its counsel relating to such portions.  Except as required by applicable law, the Company will use the same or substantially similar language, or any summary thereof that is agreed upon for the foregoing filings, in all other filings with the SEC that disclose, discuss, refer to or are being filed in response to or as a result of this Agreement.  The Investor will promptly provide all information relating to the Designee and other information to the extent required under applicable law to be included in the 2018 Proxy Statement and any other soliciting materials (as such term is used in Rule 14a-6 promulgated under the Exchange Act) to be filed with the SEC or delivered to stockholders of the Company in connection with the 2018 Annual Meeting.  The 2018 Proxy Statement and other soliciting materials will contain the same type of information and manner of presentation concerning the Designee as provided for the Company’s other independent director nominees.

3.Standstill. Except with the prior written consent of the Company, at all times during the Standstill Period (as defined below in Section 18), the Investor agrees not to, directly or indirectly, and 

will cause each of its Affiliates (as defined in Section 18) and its principals, directors, general partners, officers, employees and agents and representatives acting on their behalf (collectively, the “Restricted Persons”) not to, directly or indirectly, with respect to the Company:

(a)engage in any “solicitation”(as such term is defined under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of proxies or consents with respect to the election or removal of directors or any other matter or proposal or become a “participant” (as such term is defined in Instruction 3 to Item 4 of Schedule 14A promulgated under the Exchange Act) in any such solicitation of proxies or consents, other than soliciting proxies on behalf of the Company in accordance with the recommendation of the Board;

(b)knowingly encourage, advise or influence any other Person or knowingly assist any Person in so encouraging, advising or influencing any Person with respect to the giving or withholding of any proxy, consent or other authority to vote or in conducting any type of referendum, binding or non-binding, (other than such encouragement, advice or influence that is consistent with Company management’s recommendation in connection with such matter);

(c)form, join or act in concert with any partnership, limited partnership, syndicate or other group, including a “group” as defined pursuant to Section 13(d) of the Exchange Act with respect to any Voting Securities, other than solely with other Affiliates of the Investor with respect to Voting Securities now or hereafter owned by them;

(d)make or in any way participate, directly or indirectly, in any tender offer, exchange offer, merger, consolidation, acquisition, business combination, sale of a division, sale of substantially all assets, recapitalization, restructuring, liquidation, dissolution or extraordinary transaction involving the Company or any of its subsidiaries or its or their securities or assets  (it being understood that the foregoing shall not restrict the Investor from tendering shares, receiving payment for shares or otherwise participating in any such transaction on the same basis as other stockholders of the Company, or from participating in any such transaction that has been approved by the Board); or make, directly or indirectly, any proposal, either alone or in concert with others, to the Company or the Board that would reasonably be expected to require a public announcement regarding any of the types of matters set forth above in this Section;

(e)other than through open market broker sale transactions where the identity of the purchaser is unknown, sell, offer or agree to sell directly or indirectly, through any swap or hedging transaction or otherwise, any security of the Company or any right decoupled from such underlying security held by the Investor to any Person that would knowingly result in such Person, together with its Affiliates, owning, controlling or otherwise having any beneficial or other ownership interest in the aggregate of 10% or more of the shares of Common Stock outstanding at such time or would increase the beneficial or other ownership interest of any Person who, together with its Affiliates, has a beneficial or other ownership interest in the aggregate of 10% or more of the shares of the Common Stock outstanding at such time, except in each case in a transaction approved by the Board; 

(f)enter into a voting trust, arrangement or agreement or subject any Voting Securities to any voting trust, arrangement or agreement, in each case other than solely with other Affiliates of the Investor, with respect to Voting Securities now or hereafter owned by them and other than granting proxies in solicitations approved by the Board;

(g)(i) seek, alone or in concert with others, election or appointment to, or representation on, the Board or nominate or propose the nomination of. or recommend the nomination of. any candidate to the Board, except as set forth herein, (ii) seek, alone or in concert with others, the removal of any member of the Board; or (iii) conduct a referendum of stockholders;

(h)make or be the proponent of any stockholder proposal (pursuant to Rule 14a-8 under the Exchange Act or otherwise);

(i)seek to call, or to request the call of, or call a special meeting of the stockholders of the Company, or make any request for stock list materials or other books and records of the Company under Section 220 or the Delaware General Corporation Law or other statutory or regulatory provisions providing for shareholder access to books and records;

(j)except as set forth herein, make any public proposal with respect to (i) any change in the number or term of directors or the filling of any vacancies on the Board, (ii) any material change in the capitalization of the Company, (iii) any other material change in the Company’s management, business or corporate structure, (iv) any waiver, amendment or modification to the Company’s Certificate of Incorporation or Bylaws, or other actions which may impede the acquisition of control of the Company by any person, (v) causing a class of securities of the Company to be delisted from, or to cease to be authorized to be quoted on, any securities exchange or (vi) causing a class of equity securities of the Company to become eligible for termination of registration pursuant to Section 12(g)(4) of the Exchange Act;

(k)institute, solicit, assist or join any litigation, arbitration or other proceeding against or involving the Company or any of its current or former directors or officers (including derivative actions) in order to effect or take any of the actions expressly prohibited by this Section 3; provided, however, that for the avoidance of doubt the foregoing shall not prevent any Restricted Person from (i) bringing litigation to enforce the provisions of this Agreement, (ii) making counterclaims with respect to any proceeding initiated by, or on behalf of, the Company against a Restricted Person, (iii) bringing bona fide commercial disputes that do not relate to the subject matter of this Agreement or the topics covered in the correspondence between the Company and the Restricted Persons prior to the date hereof, or (iv) exercising statutory appraisal rights; 

(l)assist, encourage or solicit, or enter into any negotiations, agreements or understandings with any Third Party to take any action that the Investor is prohibited from taking pursuant to this Section 3; 

(m)make any request or submit any proposal, directly or indirectly, to amend or waive the terms of this Agreement, in each case which would reasonably be expected to result in a public announcement of such request or proposal; or

(n)otherwise take, or solicit, cause or encourage others to take, any action inconsistent with any of the foregoing.

Notwithstanding anything to the contrary, nothing in this Agreement shall prohibit or restrict any director of the Company, including the Designee, from exercising his or her rights and fiduciary duties as a director of the Company.

4.Non-Disparagement.  During the Standstill Period, the Investor agrees that neither it nor any of its partners, officers, directors, managers or employees shall, and the Investor shall cause each of its Affiliates not to, make, or cause to be made, any comments or statements by press release or similar public statement to the press or media, or in any SEC filing, any statement or announcement that disparages, the Company, its partners, officers, directors or employees.  During the Standstill Period, neither the Company nor any of its officers or directors shall make, or cause to be made, by press release or similar public statement, including to the press or media or in an SEC filing, any statement or announcement that disparages, the Investor, its Affiliates, officers, directors or employees; provided that nothing herein shall be deemed to prevent either the Investor or the Company from complying with its respective disclosure obligations under applicable law or the rules and regulations of the NASDAQ (or any other securities exchange on which the Company’s securities are traded).

5.Voting. Notwithstanding anything in this Agreement to the contrary, until the end of the Standstill Period, the Investor agrees to cause all Voting Securities with respect to which it has any voting authority, whether owned of record or beneficially owned, as of the record date for any annual or special meeting of stockholders or in connection with any solicitation of stockholder action by written consent (each a “Stockholders Meeting”) within the Standstill Period, in each case that are entitled to vote at any such Stockholders Meeting to be present for quorum purposes and to be voted at all such Stockholders Meetings or at any adjournment or postponement thereof:

(a)for all existing directors nominated by the Board for election at such Stockholders Meeting;

(b)against any stockholder nominations for director which are not approved and recommended by the Board for election at any such meeting or action by consent; and

(c)in accordance with any recommendation of the Board on any proposal or other business set forth on Exhibit A hereto.

6.Press Release; SEC Filings. As soon as practicable on or after the date hereof, the Company shall issue a press release, a copy of which is attached hereto as Exhibit B (the “Press Release”).  Additionally, no later than four (4) business days following the execution and delivery of this Agreement, the Company will file a Current Report on Form 8-K.  The Investor will promptly, but in no case prior to the date of  public release of the Press Release by the Company, prepare and file an amendment (the “13D Amendment”) to its Schedule 13D with respect to the Company, reporting the entry into this Agreement and amending applicable items to conform to its obligations hereunder. The 13D Amendment will be consistent with the Press Release and the terms of this Agreement.  The Investor will provide the Company with a reasonable opportunity to review the 13D Amendment prior to filing, and will consider in good faith any changes proposed by the Company solely with respect to Items 4 and 6 thereof.  Except as required by law or the rules of any stock exchange or with the prior written consent of the Company, the Investor agrees not to (i) issue a press release in connection with this Agreement or the actions contemplated hereby or (ii) otherwise make any public disclosure, statement, comment or announcement (including “on background” or “off the record” to members of the media) with respect to the negotiations or discussions that led to this Agreement, this Agreement or the actions contemplated hereby.

7.Representations and Warranties of each Party. Each of the Company and the Investor represents and warrants to the other Party that:

(a)Such Party has all requisite power and authority to execute and deliver this Agreement and to perform its obligations hereunder.

(b)This Agreement has been duly and validly authorized, executed and delivered by it and is a valid and binding obligation of such Party, enforceable against such Party in accordance with its terms.

(c)This Agreement will not result in a violation of any term or condition of any agreement to which such Party is party or by which such Party may otherwise be bound or of any law, rule, license, regulation, judgment, order or decree governing or affecting such Party.

8.Representations and Warranties of the Investor. The Investor represents and warrants that, as of the date hereof: 

(a)It beneficially owns (collectively with its Affiliates) 6,155,089 shares of Common Stock.

(b)It (collectively with its Affiliates) has an economic exposure to, including without limitation, through derivative transactions, an aggregate of 6,155,089 shares of Common Stock.

(c)Except for such ownership or exposure, neither the Investor nor any of its Affiliates has any other direct or indirect beneficial ownership (as defined in Section 18) of, and/or economic exposure to (including through “short sales” or hedging transactions), any Voting Securities or rights or options to acquire or sell any Voting Securities.

(d)It acknowledges and agrees that it will not seek confidential information relating to the Company and further acknowledges that the Designee is not permitted to share confidential information relating to the Company with the Investor or any of its principals, directors, members, general partners, officers, other employees or attorneys.

(e)It acknowledges that it and its Affiliates are aware that United States securities laws may restrict any person who has material, non-public information about a company from purchasing or selling any securities of such company while in possession of such information.

9.Miscellaneous. Each Party recognizes and agrees that if for any reason any provision of this Agreement is not performed in accordance with its specific terms or is otherwise breached, immediate and irreparable harm or injury would be caused for which money damages would not be an adequate remedy. Accordingly, each Party agrees that, in addition to any other remedy the other Party may be entitled to at law or equity, the other Party is entitled to an injunction or injunctions to prevent any breach of this Agreement and to enforce specifically the terms and provisions of this Agreement exclusively in the Chancery Court of the State of Delaware or, if that court lacks subject matter jurisdiction, the United States District Court for the District of Delaware (collectively, the “Chosen Courts’’). THIS AGREEMENT IS GOVERNED IN ALL RESPECTS, INCLUDING WITHOUT LIMITATION VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES OF SUCH STATE.

If any action is brought in equity to enforce any provision of this Agreement, no Party will allege, and each party hereby waives the defense, that there is an adequate remedy at law. Furthermore, each Party:
(a)consents to submit itself to the personal jurisdiction of the Chosen Courts if any dispute arises out of this Agreement or the transactions contemplated hereby;

(b)agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any Chosen Court;

(c)agrees that it will not bring any action relating to this Agreement or the transactions contemplated thereby in any court other than the Chosen Courts and each Party irrevocably waives any right to trial by jury;

(d)agrees to waive any bonding requirement under any applicable law, in the case any other party seeks to enforce the terms by way of equitable relief;

(e)irrevocably consents to service of process by a reputable overnight mail delivery service, signature requested, to the address of such parties’ principal place of business or as otherwise provided by applicable law; and

(f)WAIVES ANY RIGHT TO A JURY TRIAL OF ANY CONTROVERSY OR CLAIM ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE MAKING, PERFORMANCE OR INTERPRETATION THEREOF, INCLUDING FRAUDULENT INDUCEMENT THEREOF.

10.No Waiver. Any waiver by any Party of a breach of any provision of this Agreement does not operate as, nor is construed to be, a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of any Party to insist upon strict adherence to any term of this Agreement on one or more occasions is not a waiver and does not deprive that Party of the right thereafter to insist upon strict adherence to that or any other term of this Agreement.

11.Entire Agreement. This Agreement and the exhibits hereto contain the entire understanding of the Parties with respect to the subject matter hereof and may be amended only by an agreement in writing executed by the Parties.

12.Notice. All notices, consents, requests, instructions, approvals or other communications provided for herein and all legal process with regard hereto will be in writing and will be deemed validly given, made or served, if:

(a)Given by facsimile or email, when such facsimile or email is transmitted to the facsimile number or email address below.

(b)Or if given by any other means, when actually received during normal business hours at the applicable address specified as follows: 

(i) if to the Company:

Avid Technology, Inc.
75 Network Drive
Burlington, MA  01903
Attn: Corporate Secretary
Email: avid.Secretary@avid.com
 
(ii) with a copy, which will not constitute notice, to:

Covington & Burling LLP
One CityCenter
850 Tenth Street, NW
Washington, DC 20001
Attn: David B.H. Martin and David H. Engvall
Telephone: (202) 662-6000
Email: dmartin@cov.com and dengvall@cov.com
 
(iii) or if to the Investor:

Cove Street Capital, LLC
2101 East El Segundo Boulevard, Suite 302
El Segundo, CA 90245
Attn: Merihan Tynan
Telephone: (424) 221-5897
Email: mtynan@covestreetcapital.com

(iv) with a copy, which will not constitute notice, to:
Olshan Frome Wolosky LLP
1325 Avenue of the Americas
New York, NY 10019
Attn: Andrew Freedman
Telephone: (212) 451-2250
E-mail: afreedman@olshanlaw.com

13.Severability. If at any time after the date hereof, any provision of this Agreement is held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision has no force or effect, but the illegality or unenforceability of such provision has no effect on the legality or enforceability of any other provision of this Agreement.

14.Counterparts. This Agreement may be executed in counterparts, which together will constitute a single agreement.

15.Successors and Assigns. This Agreement is not assignable by any Party but is binding on any successor of such Party.

16.No Third-Party Beneficiaries. This Agreement is solely for the benefit of the Parties and is not enforceable by any other Person.

17.Expiration of Standstill Period. Except as provided in this Section 17, upon the expiration of the Standstill Period in accordance with Section 18 hereof, this Agreement immediately and 

automatically terminates in its entirety and no Party has any further right or obligation under this Agreement.  Further, following any such termination of the Agreement, Investor agrees and acknowledges that (i) the Designee may not share confidential information relating to the Company with the Investor, any of its directors, officers, other employees or attorneys, and (ii) United States securities laws may restrict any person who has material, non-public information about a company from purchasing or selling any securities of such company while in possession of such information.

18.Interpretation and Construction. Each Party acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement and that each Party has executed the same with the advice of said counsel. Each Party and its counsel cooperated and participated in the drafting and preparation of this Agreement and any and all drafts relating thereto exchanged among the Parties is deemed the work product of all Parties and may not be construed against any Party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any Party that drafted or prepared it is of no application and is hereby expressly waived by each Party and any controversy over any interpretation of this Agreement will be decided without regard to events of drafting or preparation. The section headings contained in this Agreement are for reference only and do not affect in any way the meaning or interpretation of this Agreement.

Other Definitions. As used in this Agreement:
(a)“Affiliate” has the meaning in Rule 12b-2, promulgated by the SEC under the Exchange Act.

(b)“Beneficial owner,” “beneficially own” or “beneficial ownership” and terms of like import have their respective meanings in Rule 13d-3 promulgated by the SEC under the Exchange Act; provided, that if a person is the Receiving Party to a Derivative Contract with respect to any shares of Common Stock or other Voting Securities, such person shall be deemed to be the “beneficial owner” of the Notional Number of shares of Common Stock or other Voting Securities, as applicable, with respect to such Derivatives Contract.

(c)“Derivatives Contract” means a contract between two parties (the “Receiving Party” and the “Counterparty”) that is designed to produce economic benefits and risks to the Receiving Party that correspond substantially to the ownership by the Receiving Party of a number of Voting Securities or shares of Common Stock specified or referenced in such contract (the number corresponding to such economic benefits and risks, the “Notional Number”), regardless of whether (a) obligations under such contract are required or permitted to be settled through the delivery of cash, shares of Common Stock or other property or (b) such contract conveys any voting rights in shares of Common Stock or other Voting Securities. For the avoidance of doubt, interests in broad based index options, broad based index futures and broad based publicly traded market baskets of stocks approved for trading by the appropriate federal governmental authority shall not be deemed to be Derivatives Contracts.

(d)“Person” means any individual, general or limited partnership, corporation, limited liability or unlimited liability company, joint venture, estate, trust, group, association or other entity of any kind or structure.

(e)“Qualifying Disposition” will be deemed to have occurred at such time as the number of shares of Common Stock beneficially owned by the Investor, collectively with its Affiliates, is 

less than five percent (5%) of the outstanding Common Stock (all items as adjusted for any stock dividends, combinations, splits, recapitalizations and the like).

(f)“Standstill Period” means the period from the date hereof until the earlier of (x) the end of the initial term for which the Designee is appointed (or such longer period as the Designee (or any replacement director Designee selected pursuant to Section 1(d) hereof) continues to serve on the Board), (y) the date that is ten (10) calendar days prior to the deadline for the submission of shareholder nominations for the annual meeting of stockholders of the Company to be held in 2019, but only in the event that the Designee has tendered his resignation as a director on or before such date and such resignation is due to a disagreement with the Board that has been set forth in writing, and (z) five (5) business days after such date, if any, that the Investor provides written notice to the Company (specifying the relevant facts) that the Company has materially breached any of its commitments or obligations under this Agreement; provided, that clause (y) shall not apply if the material breach is capable of being cured and is cured to the reasonable satisfaction of the Investor within fifteen (15) business days of the date of the Investor’s written notice specifying such material breach. 

(g)“Third Party” means any Person that is not a Party or an Affiliate thereof, a member of the Board, a director or officer of the Company, or legal counsel to any Party.

(h)“Voting Securities” means the common stock, par value $0.01 per share, of the Company (the “Common Stock”) and all other securities of the Company entitled to vote in the election of directors.

IN WITNESS WHEREOF, each Party has executed this Agreement or caused the same to be executed by its duly authorized representative as of the date first above written.

AVID TECHNOLOGY INC.

By:     /s/ Jason Duva                                                            
 
Name: Jason Duva
Title: SVP & General Counsel

COVE STREET CAPITAL, LLC

By:    /s/ Jeffrey Bronchick___                                          

Name: Jeffrey Bronchick, CFA
Title: Principal, Portfolio Manager 

    

Exhibit A
 
1.    Advisory approval of the Company’s executive compensation.
 
2.    To approve, by a non-binding advisory vote, the selection of BDO USA, LLP as our independent registered public accounting firm for the company’s fiscal year ending December 31, 2018.
 
3.    To approve an amendment to the Company’s stock incentive plan to increase the number of shares of Common Stock authorized for issuance under such plan, provided such amendment has received a favorable recommendation from either ISS or Glass Lewis.

Exhibit B
Press Release
AVID BOARD TO ADD DANIEL SILVERS AS NEW INDEPENDENT DIRECTOR

BURLINGTON, Mass., Feb. 20, 2018 - Avid Technology, Inc. (Nasdaq: AVID) ("Avid" or the "Company"), a leading global media technology provider for the creation, distribution and monetization of media assets for global media organizations, enterprise users and individual creative professionals, today announced that it would add a new independent director, Daniel B. Silvers, Managing Member of Matthews Lane Capital Partners LLC​, to the Company’s Board of Directors.  The Board is expected to elect Mr. Silvers at its next regularly scheduled meeting on March 8, 2018.  The decision to add Mr. Silvers resulted from a thorough review process by the Company’s Nominating and Governance Committee and discussions with key shareholders, including Cove Street Capital, LLC (“Cove Street Capital”).  To allow for this appointment, the Board will increase its size to nine directors. 

Louis Hernandez, Jr., Chairman and Chief Executive Officer of Avid stated, “Dan will bring extensive Board experience to our company.  With our strategic transformation complete, we are positioned to capitalize on our strong market position to generate profitable growth.  We believe that Dan’s experience and skills will complement the strong mix of experience and skills held by the existing Board members.”

“Our Board routinely evaluates its composition to ensure it encompasses a wide range of appropriate skills and expertise to provide increased value to shareholders,” continued Mr. Hernandez.  “We value the constructive discussions regarding the Board makeup with Cove Street Capital and are pleased to welcome Dan to our Board.”

Mr. Silvers stated, “I am honored to join Avid’s Board.  I look forward to the opportunity to work closely with my new colleagues on the Board and management team to support Avid’s further growth.  I am confident in the Board’s ability to work closely to realize the full potential of the company.”

“The addition of Dan to the Avid Board will undoubtedly bring a fresh perspective,” said Jeffrey Bronchick, Portfolio Manager and founder of Cove Street.  “We appreciate the collaboration and relationship we have had with Avid.  We believe Avid has outstanding value creation opportunities in the coming months and years.” 

In connection with the Board’s decision to elect Mr. Silvers, Avid entered into a Standstill Agreement with Cove Street Capital, LLC.  Under this agreement, Cove Street Capital may not, during a standstill period described below, engage in certain activities, including, without limitation, soliciting proxies, acting in concert with third parties, seeking to effect or facilitate an acquisition of Avid, calling a special meeting, initiating or encouraging litigation against Avid, or making certain public statements or disclosures. The standstill period is the duration of the initial term for which Mr. Silvers is appointed (and such longer period as Mr. Silvers continues to serve on the Board), except that the standstill period will end ten days prior to the deadline for the submission of shareholder nominations for the annual meeting of Avid’s stockholders in 2019, if Mr. Silvers has tendered his resignation on or before such date and such resignation is due to a disagreement with the Avid Board that has been set forth in writing.  The agreement also requires Cove Street Capital, during the same period, to vote its shares of Avid stock for director candidates nominated by Avid and in accordance with the Board’s recommendations on specified other matters. Further details on the standstill agreement will be contained in a current report on Form 8-K to be filed by Avid.

About Daniel B. Silvers

Daniel Silvers is the Founder and Managing Member of Matthews Lane Capital Partners LLC.  He serves as Chief Executive Officer and a Director of Leisure Acquisition Corp.  He serves as Chief Strategy Officer of Inspired Entertainment, Inc.  He also currently serves as Lead Independent Director on the board of directors of PICO Holdings, Inc.  He has previously served on the boards of directors of International Game Technology, Universal 

Health Services, Inc., bwin.party digital entertainment plc, Forestar Group, Inc., Ashford Hospitality Prime, Inc. and India Hospitality Corp., as well as serving as President of Western Liberty Bancorp, an acquisition-oriented company which bought and recapitalized Service1st Bank of Nevada, a community bank in Las Vegas, NV.  In 2015, Mr. Silvers was featured in the National Association of Corporate Directors' "A New Generation of Board Leadership: Directors Under Age 40" list of emerging corporate directors.

About Avid

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(978) 640-3379Exhibit

Exhibit 10.66

ANDEAVOR EXECUTIVE SECURITY PLAN
AMENDED AND RESTATED EFFECTIVE AUGUST 1, 2017
 

ANDEAVOR EXECUTIVE SECURITY PLAN
PREAMBLE
The principal objective of this Executive Security Plan (the "Plan") is to ensure the payment of a competitive level of retirement income in order to attract, retain and motivate selected executives.  The Plan is designed to provide a benefit which, when added to other retirement income of the executive, will meet the objective described above.  This Plan was originally established as a restatement and amendment of the Tesoro Executive Post Retirement Benefit Plan and Tesoro Executive Death Benefit Plan, and subsequently amended and restated, effective January 1, 2005.  The Plan was most recently amended and restated, effective January 1, 2009 (except as otherwise specifically noted herein), and is intended to conform to the requirements of Section 409A of the Code, together with the Regulations, and is intended to qualify as an unfunded plan maintained primarily for the purpose of providing benefits for a select group of management and highly compensated employees of the Company and its Subsidiaries.  The Plan is hereby amended and restated, effective August 1, 2017, to incorporate a prior amendment, to reflect a change in the name of the Company and to make such other changes deemed appropriate.
 
SECTION I
DEFINITIONS
		
	 1.1
	"Affiliate" means each entity that would be considered a single employer with the Company under Section 414(b) or Section 414(c) of the Code, except that the phrase "at least 50%" shall be substituted for the phrase "at least 80%" as used therein.

		
	 1.2
	"Aggregated Plan" means all agreements, methods, programs and other arrangements that are aggregated with this Plan under Section 1.409A-1(c) of the Regulations.

		
	 1.3
	"Basic Compensation" shall have the meaning of such term, as set forth in the Andeavor Pension Plan (formerly known as the “Tesoro Corporation Retirement Plan”), as in effect on the date of a Participant's Retirement, but determined without regard to any compensation limits imposed by the Code, and, further provided, a normal bonus otherwise includible as Basic Compensation shall be credited in the calendar year in which such bonus is earned and not in the calendar year when paid, if different. 

		
	 1.4
	"Beneficiary" means the person or legal entity designated in writing by a Participant to receive, after his death, any death benefits provided by the Plan.  If no designation is in effect at the time of the Participant's death, or if no designated person shall survive the Participant, the Beneficiary shall be the Participant's estate.

		
	 1.5
	"Board" means the Board of Directors of the Company.

		
	 1.6
	"Change in Control" means (i) there shall be consummated (A) any consolidation or merger of Company in which Company is not the continuing or surviving corporation or pursuant to which shares of Company's common stock would be converted into cash, securities or 

2017 Restatement    1

other property, other than a merger of Company where a majority of the board of directors of the surviving corporation are, and for a one-year period after the merger continue to be, persons who were directors of Company immediately prior to the merger or were elected as directors, or nominated for election as director, by a vote of at least two-thirds of the directors then still in office who were directors of Company immediately prior to the merger, or (B) any sale, lease, exchange or transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of Company, or (ii) the shareholders of Company shall approve any plan or proposal for the liquidation or dissolution of Company, or (iii) (A) any "person" (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934), other than Company or a Subsidiary thereof or any employee benefit plan sponsored by Company or a Subsidiary thereof, shall become the beneficial owner (within the meaning of Rule 13c-3 under the Securities Exchange Act of 1934) of securities of Company representing 35 percent or more of the combined voting power of Company's then outstanding securities ordinarily (and apart from rights accruing in special circumstances) having the right to vote in the election of directors, as a result of a tender or exchange offer, open market purchases, privately negotiated purchases or otherwise, and (B) at any time during a period of one-year thereafter, individuals who immediately prior to the beginning of such period constituted the Board shall cease for any reason to constitute at least a majority thereof, unless election or the nomination by the Board for election by Company's shareholders of each new director during such period was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period.
		
	 1.7
	"Chief Executive Officer" means the Chief Executive Officer of the Company.

		
	 1.8
	"Code" means the Internal Revenue Code of 1986, as amended from time to time.

		
	 1.9
	"Committee" means, prior to August 1, 2017, the Tesoro Corporation Employee Benefits Committee and, effective August 1, 2017, the Andeavor Employee Benefits Committee or such other committee designated by the Compensation Committee of the Board to discharge the duties of the Committee hereunder.

		
	 1.10
	"Company" means, prior to August 1, 2017, Tesoro Corporation, a Delaware corporation, and, effective August 1, 2017, Andeavor, a Delaware corporation, or any successor thereto.

		
	 1.11
	"Disabled" or "Disability" means that a Participant is entitled to benefits under the long-term disability plan of the Company or an Affiliate.

		
	 1.12
	"Distribution Schedule" means the method of distributions elected (or deemed elected) by a Participant, which method may be either a lump sum payment or an annuity, pursuant to which distribution of the Participant's benefit hereunder shall be made or shall commence.  Such election shall be made at the time and in the manner described in Section 3.2 hereof and shall be subject to the provisions thereof.    

		
	 1.13
	"Early Retirement Date" means the date on which a Participant has either: (i) both attained age 55 and is credited with at least 5 years of Service or (ii) attained age 50 and is credited 

2017 Restatement    2

with at least eighty (80) points, with points credited for this purpose by adding the aggregate of a Participant's age and Service, each of which shall be determined in years and completed months rather than completed years only, and including "deemed years of age" granted pursuant to an employment agreement, change in control agreement, separation agreement or any other agreement between a Participant and the Company or an Affiliate.
		
	 1.14
	"Earnings" shall mean the amount determined by dividing a Participant's aggregate Basic Compensation for the three (3) calendar years out of the last seven (7) calendar years (including the year of such Participant's Retirement) for which the Participant’s Basic Compensation was the greatest by the number of full calendar months of employment during such three (3)-calendar year period. 

		
	 1.15
	"Funded Plan" means the prior Tesoro Petroleum Corporation Funded Executive Security Plan.  All benefits under the Funded Plan have been completely distributed and no additional benefits will be accrued or payable thereunder.

		
	 1.16
	"Lump Sum Interest Rate" means the discount rate used for the Company's financial disclosure purposes under Financial Accounting Standards Statement No. 158 for the December 31 prior to or coincident with the Participant's Retirement Date.

		
	 1.17
	"Lump Sum Mortality Table" means the mortality table used for the Company's financial disclosure purposes under Financial Accounting Standards Statement No. 158 for the December 31 prior to or coincident with the Participant's Retirement Date.  For this purpose, the mortality table will be a unisex table based on 95% of the male rates and 5% of the female rates.

		
	 1.18
	"Other Retirement Income" means the retirement income payable to a Participant from the following sources and assumed to commence at the earliest date possible coincident with or immediately following the Participant's Retirement Date:

		
	•
	Qualified and nonqualified retirement benefits from a prior employer of the Participant if said prior employer or employer facility was acquired by or merged into the Company or any Affiliate at any time and benefit service with the prior employer is recognized by the Company for any retirement plan, qualified or nonqualified, pursuant to the terms of an acquisition agreement or as otherwise provided under a separate agreement with the Company or an Affiliate.

		
	•
	Social Security Benefit as defined in Section 1.28 hereof.

		
	 1.19
	"Participant" means an officer of the Company or an Affiliate with the title of Senior Vice President or above who is recommended for participation by the Chief Executive Officer and approved by the Compensation Committee of the Board as eligible to participate.

		
	 1.20
	"Pension Plan" means, prior to August 1, 2017, the Tesoro Corporation Retirement Plan, as amended from time to time and, effective August 1, 2017, the Andeavor Pension Plan, as amended from time to time. 

2017 Restatement    3

		
	 1.21
	"Pension Plan Benefit" means the amount of monthly benefit payable from the Pension Plan to a Participant in the form of a straight life annuity and assumed to commence at the earliest date possible coincident with or immediately following the Participant's Retirement Date.

		
	 1.22
	"Plan" means, prior to August 1, 2017, the Tesoro Corporation Amended and Restated Executive Security Plan, effective January 1, 2009 (except as otherwise specifically noted herein), and, effective August 1, 2017, the Andeavor Executive Security Plan, as may be amended from time to time.

		
	 1.23
	"Regulations" means the Treasury Regulations promulgated under the Code.

		
	 1.24
	"Retirement" means a Participant's Separation from Service on or after the earlier of: (i) his Early Retirement Date or (ii) a Change in Control.

		
	 1.25
	"Retirement Date" means the date of a Participant's Retirement.

		
	 1.26
	"Separation from Service" means a reasonably anticipated permanent reduction in the level of bona fide services performed by the Participant for the Company and its Affiliates to 20% or less of the average level of bona fide services performed by the Participant for the Company and its Affiliates (whether as an employee or an independent contractor) in the immediately preceding thirty-six (36) months (or the full period of service to the Company and its Affiliates if the Participant has been providing services to the Company and its Affiliates for fewer than thirty-six (36) months).  The determination of whether a Separation from Service has occurred shall be made by the Committee in accordance with the provisions of Section 409A of the Code and the Regulations promulgated thereunder.

		
	 1.27
	"Service" means a Participant's "Vesting Service," as such term is defined in the Pension Plan, but calculated in years and completed months rather than completed years only, and including "deemed service" granted pursuant to an employment agreement, change in control agreement, separation agreement or any other agreement between a Participant and the Company or an Affiliate.

		
	 1.28
	"Social Security Benefit" means the monthly primary insurance amount estimated by the Committee to be payable to the Participant at age 65 under the federal Social Security Act, provided, however, that:

		
	(a)
	the Social Security Benefit for a Participant who terminates employment prior to age 65 will be calculated assuming:

		
	(i)
	the Participant will not receive any future wages which would be treated as wages for purposes of the federal Social Security Act, and

		
	(ii)
	the Participant will elect to begin receiving his Social Security Benefit as of the earliest age then allowable under said Social Security Act, or if later, at actual date of Retirement.

2017 Restatement    4

		
	(b)
	the Social Security Benefit, once calculated, will be frozen as of the date the Participant terminates employment.

		
	 1.29
	"Subsidiary" means any entity in which the Company owns or otherwise controls, directly or indirectly, stock or other ownership interests having the voting power to elect a majority of the board of directors, or other governing group having functions similar to a board of directors, as determined by the Committee.

The masculine gender, where appearing in the Plan, will be deemed to include the feminine gender, and the singular may include the plural, unless the context clearly indicates to the contrary.
SECTION II
ELIGIBILITY FOR BENEFITS
		
	 2.1
	Each Participant is eligible to receive a benefit under this Plan upon his Retirement.  Such benefit shall commence as provided in Section 4.1 hereof.  Except as provided in Section V hereof, no benefit is payable hereunder in the event of a Participant's Separation from Service prior to Retirement except in the event of such Participant's Disability, as provided in Section 2.2 below, or a Change in Control, as provided in Section 4.5 below.

		
	 2.2
	In the event a Participant becomes Disabled while in the active employment of the Company or an Affiliate and eligible to participate hereunder, he shall be entitled to the retirement benefit determined under Section 3.1 payable on the first day of the month following the date on which such Participant has both attained the age of 65 and is credited with at least 5 years of Service, but based upon the Service the Participant would have accrued had he remained in active employment until such date and continued at the same rate of Earnings until that date.  Notwithstanding the foregoing, no Participant shall be entitled to credit for Service after the date on which such Participant is no longer considered Disabled.

		
	 2.3
	Notwithstanding anything herein to the contrary, if a Participant who is receiving, or may be entitled to receive, a benefit hereunder, engages in competition with the Company (without prior authorization given by the Committee in writing) or is discharged for cause, or performs acts of willful malfeasance or gross negligence in a matter of material importance to the Company, payments thereafter payable hereunder to such Participant or such Participant's Beneficiary will, at the discretion of the Committee, be forfeited and the Company will have no further obligation hereunder to such Participant or Beneficiary.

SECTION III
AMOUNT AND FORM OF RETIREMENT BENEFIT
		
	 3.1
	The monthly retirement benefit under this Plan will equal 4% of Earnings times the first 10 years of Service, plus 2% of Earnings times the next 10 years of Service, plus 1% of Earnings times the next 10 years of Service, actuarially reduced by seven percent (7%) per year from age sixty (60) for Participants who have not attained age 55 with ten (10) years of Service by December 31, 2005 and who retire prior to age sixty (60), and offset by any Pension Plan Benefit and any Other Retirement Income.  Notwithstanding the foregoing, no credit will 

2017 Restatement    5

be included under this Plan formula for Service in excess of 30 years.  The amount payable under this Plan shall also be reduced by the amount of the vested Basic Pension paid or payable under the Funded Plan (without regard to whether a smaller, adjusted amount is in fact paid from such Funded Plan after retirement because of prior distributions made from such Funded Plan to enable the Participant to pay taxes resulting from his participation in such Funded Plan).  
		
	 3.2
	Each Participant may, within thirty (30) days of the date on which he is notified of his eligibility to participate in the Plan, irrevocably elect the Distribution Schedule pursuant to which benefits hereunder will be paid, subject to the restrictions of the Plan.  The Participant's election shall become effective immediately following the Committee’s receipt of the Participant’s executed participation agreement.  A Participant's failure to elect a Distribution Schedule in accordance with this Section 3.2 shall be deemed an election by the Participant to receive his benefits hereunder in the form of a single life annuity, payable for the Participant's lifetime, unless the Participant elects an actuarially equivalent life annuity, as provided below.  The Participant’s election (or deemed election) shall become irrevocable as of the last day of the 30-day period during which the Participant is permitted to make an election in accordance with this Section 3.2, except as provided below.  If a Participant has timely elected an annuity form of payment, or if the Participant has failed to elect a Distribution Schedule, resulting in a deemed election of a single life annuity, the benefit determined under this Plan will be paid in the form of a single life annuity, payable for the Participant's lifetime, unless, prior to the date on which an annuity payment has been made, and within the time and in the manner determined by the Committee, the Participant elects an actuarially equivalent life annuity, within the meaning of Section 1.409A-2(b)(2)(ii) of the Regulations.  Subject to the preceding sentence. actuarially equivalent life annuities shall be calculated by using the applicable actuarial assumptions set forth in the Pension Plan.  The actuarially equivalent life annuity forms available hereunder shall be those forms of life annuity set forth in the Pension Plan as in effect on the date of the Participant's Separation from Service.  Lump sum amounts shall be determined by using the Lump Sum Interest Rate and the Lump Sum Mortality Table.

		
	 3.3
	Notwithstanding any provision herein to the contrary, effective December 12, 2008, each Participant who is actively employed by the Company or an Affiliate and who remains actively employed through the 31st day of December, 2008, may elect to modify an existing election (or deemed election) provided that such election:  (i) may apply only to amounts that would not otherwise be payable in 2008, (ii) may not cause an amount to be paid in 2008 that would not otherwise be payable in 2008, (iii) shall be made no later than December 31, 2008 and prior to such earlier date as may be established by the Committee, and (iv) shall be made in the manner and subject to such restrictions as shall be determined by the Committee.  If a Participant modifies an election (or deemed election) pursuant to this Section 3.3 and thereby elects a lump sum form of payment, such Participant will not later be eligible to elect an actuarially equivalent life annuity form of payment.

2017 Restatement    6

SECTION IV
PAYMENT OF RETIREMENT BENEFITS
		
	 4.1
	Benefits payable in accordance with Section III will be calculated as of the first day of the month next following the month of the Participant's Retirement and shall commence, or in the case of a lump sum payment, be distributed in full on the first day of the seventh (7th) calendar month beginning after the Participant's Retirement Date.  Benefits payable in the form of an annuity will continue to be paid on the first day of each succeeding month.  The last such payment will be on the first day of the month in which the retired Participant dies unless another annuity form of payment that contemplates payments made subsequent to the Participant's death, is elected in accordance with Section 3.2.  The first payment will include all amounts that would otherwise have been paid during the period commencing on the first day of the month next following the month of the Participant's Retirement and ending on such payment date, plus interest on such amounts for such period, which interest shall be calculated using the Lump Sum Interest Rate in effect on the date of the Participant's Retirement.

		
	 4.2
	The Company shall be liable for all benefits due the Participants under the Plan.

		
	 4.3
	Under all circumstances, the rights of the Participants to the assets held in a rabbi trust, if any, created with respect to the Plan shall be no greater than the rights expressed in this Plan.  Nothing contained in the trust agreement which creates any such rabbi trust shall constitute a guarantee by the Company that the amounts transferred by it to the trust shall be sufficient to pay any benefits under the Plan or would place the Participant in a secured position ahead of judgment and/or general creditors should the Company become insolvent or bankrupt.  Any trust agreement established with respect to the Plan must specifically set out these principles so it is clear in the trust agreement that the Participants are only unsecured general creditors of the Company with respect to their benefits under the Plan.

		
	 4.4
	The Plan is only a general corporate commitment and each Participant must rely upon the general credit of the Company for the fulfillment of its obligations under the Plan.  Under all circumstances the rights of Participants to any asset held by the Company shall be no greater than the rights expressed in this Plan.  Nothing contained in this Plan shall constitute a guarantee by the Company that the assets of the Company will be sufficient to pay any benefits under the Plan or would place the Participant in a secured position ahead of general creditors and judgment creditors of the Company.  Though the Company may establish or become a signatory to a rabbi trust to accumulate assets to help fulfill its obligations, the Plan and any trust created, shall not create any lien, claim, encumbrance, right, title or other interest of any kind in any Participant in any asset held by the Company, contributed to any trust created, or otherwise be designated to be used for payment of any of its obligations created in this agreement.  No specific assets of the Company have been or will be set aside, or will be transferred to a trust or will be pledged for the performance of the Company's obligations under the Plan which would remove those assets from being subject to the general creditors and judgment creditors of the Company.  Notwithstanding the preceding provisions of this Section 4.4 to the contrary, upon a Change in Control, the Company shall, as soon 

2017 Restatement    7

as possible following the Change in Control, make an irrevocable contribution to the rabbi trust previously established, or if not so established, to a newly created rabbi trust, in an amount that is sufficient to pay each Plan Participant or Beneficiary the benefits to which each Plan Participant or Beneficiary would be entitled pursuant to the terms of the Plan as of the date on which the Change in Control occurred.
		
	 4.5
	Upon a Change in Control, each Participant's benefit hereunder shall be immediately vested.  Payment of such benefit shall commence as of the first day of the seventh (7th) calendar month following the later of such Participant's Separation from Service or Early Retirement Date.  Benefits will continue to be paid on the first day of each succeeding month.  The last payment will be on the first day of the month in which the Participant dies unless another form of payment is elected in accordance with Section 3.2 hereof. The first payment will include all amounts that would otherwise have been paid during the period commencing on the first day of the month next following the month of the later of the Participant's Separation from Service or Early Retirement Date.    

		
	 4.6
	It is intended that this Plan shall be unfunded for tax purposes and for purposes of Title I of ERISA.

		
	 4.7
	Notwithstanding any provision of this Section IV to the contrary, the benefits payable hereunder may, to the extent expressly provided in this Section 4.7, be paid prior to or later than the date on which they would otherwise be paid to the Participant.

		
	(a)
	Distribution in the Event of Income Inclusion Under Code Section 409A.  If any portion of a Participant's benefit hereunder is required to be included in income by the Participant prior to receipt due to a failure of this Plan or any Aggregated Plan to comply with the requirements of Section 409A of the Code or the Regulations, the Committee may determine that such Participant shall receive a distribution from the Plan in an amount equal to the portion of his or her benefit required to be included in income as a result of the failure of the Plan or any Aggregated Plan to comply with the requirements of Section 409A of the Code or the Regulations.

		
	(b)
	Distribution Necessary to Satisfy Applicable Tax Withholding.  If the Company is required to withhold amounts to pay the Participant’s portion of the Federal Insurance Contributions Act (FICA) tax imposed under Code Sections 3101, 3121(a) or 3121(v)(2) with respect to amounts that are or will be paid to the Participant under the Plan before they otherwise would be paid, the Committee may determine that such Participant shall receive a distribution from the Plan in an amount equal to the lesser of:  (i) the amount of the Participant's benefit hereunder or (ii) the aggregate of the FICA taxes imposed and the income tax withholding related to such amount.

		
	(c)
	Delay for Payments in Violation of Federal Securities Laws or Other Applicable Law.  In the event the Company reasonably anticipates that the payment of benefits as specified hereunder would violate Federal securities laws or other applicable law, the Committee may delay the payment of such benefit hereunder until the earliest 

2017 Restatement    8

date at which the Company reasonably anticipates that the making of such payment would not cause such violation.  
		
	(d)
	Delay for Insolvency or Compelling Business Reasons.  In the event the Company determines that the making of any payment of benefits on the date specified hereunder would jeopardize the ability of the Company to continue as a going concern, the Committee may delay the payment of such benefits until the first calendar year in which the Company notifies the Committee that the payment of benefits would not have such effect.

		
	(e)
	Administrative Delay in Payment.  The payment of benefits hereunder shall begin at the date specified in accordance with the provisions of the foregoing paragraphs of this Section IV; provided that, in the case of administrative necessity, the payment of such benefits may be delayed up to the later of the last day of the calendar year in which payment would otherwise be made or the 15th day of the third calendar month following the date on which payment would otherwise be made.  Further, if, as a result of events beyond the control of the Participant (or following the Participant's death, the Participant's Beneficiary), it is not administratively practicable for the Committee to calculate the amount of benefits due to the Participant as of the date on which payment would otherwise be made, the payment may be delayed until the first calendar year in which calculation of the amount is administratively practicable.

		
	(f)
	No Participant Election.  Notwithstanding the foregoing provisions, if the period during which payment of benefits hereunder will be made occurs, or will occur, in two calendar years, the Participant shall not be permitted to elect the calendar year in which the payment shall be made. 

SECTION V
PRE-RETIREMENT DEATH BENEFITS
		
	 5.1
	If a Participant should die before Retirement, the Beneficiary will receive the greatest of (1), (2) and (3) where (1) is the Participant's benefit hereunder calculated as of his date of death and payable for the life of the Beneficiary as a single life annuity, (2) is a benefit payable for the life of the Beneficiary as a single life annuity equal to the Actuarial Equivalent of 400% of the amount of the Participant's rate of annual base pay determined as of the December 1 immediately preceding the Participant's date of death, and (3) is the benefit the Participant would have received under Section 2.2 hereof if he had been determined to be Disabled on the date of his death (but payable immediately and reduced as provided in Section 3.1 hereof) and payable for the life of the Beneficiary as a single life annuity.  "Actuarial Equivalence" as such term is used in this Section 5.1, shall be determined in accordance with Section 1.409A-2(b)(2)(ii) of the Regulations and, subject to the foregoing, shall be calculated by using the applicable actuarial assumptions set forth in the Pension Plan.

2017 Restatement    9

		
	 5.2
	A Beneficiary's pre-retirement death benefit will be payable in accordance with the Participant's Distribution Schedule; provided, however, that a Participant's failure to elect a Distribution Schedule in accordance with Section 3.2 hereof shall be deemed an election by the Participant for the pre-retirement death benefit hereunder to be paid in the form of a single life annuity.  If a Participant has timely elected an annuity form of payment, or if the Participant has failed to elect a Distribution Schedule, resulting in a deemed election of a single life annuity, the pre-retirement death benefit will be paid in the form of a single life annuity, payable for the Beneficiary's lifetime, unless, prior to the date on which an annuity payment has been made, and within the time and in the manner determined by the Committee, the Beneficiary elects an actuarially equivalent life annuity, within the meaning of Section 1.409A-2(b)(2)(ii) of the Regulations.  Subject to the preceding sentence, actuarially equivalent life annuities shall be calculated by using the applicable actuarial assumptions set forth in the Pension Plan.  The actuarially equivalent life annuity forms available hereunder shall be those forms of life annuity set forth in the Pension Plan as in effect on the date of the Participant's death.  Lump sum amounts shall be determined by using the Lump Sum Interest Rate and the Lump Sum Mortality Table. Distribution of a Participant's pre-retirement death benefit will commence or, in the case of a lump sum payment, will be made in full within sixty (60) days of the date of the Participant's death.

		
	 5.3
	Amounts otherwise payable under this Section will be reduced by any amount previously funded through any trust designated for retirement and death benefits from this Plan, and by the amount of any death benefit payable under the Funded Plan.

SECTION VI
CLAIMS PROCEDURES 
		
	 6.1
	 Claims for Benefits.  The Committee shall determine the rights of any Participant to any deferred compensation benefits hereunder.  Any Participant who believes that he has not received the deferred compensation benefits to which he is entitled under the Plan may file a claim in writing with the Committee.  The Committee shall, no later than 90 days after the receipt of a claim (plus an additional period of 90 days if required for processing, provided that notice of the extension of time is given to the claimant with the first 90-day period), either allow or deny the claim in writing.  

A denial of a claim by the Committee, wholly or partially, shall be written in a manner intended to be understood by the claimant and shall include:
		
	(a)
	the specific reasons for the denial;

		
	(b)
	specific reference to pertinent Plan provisions on which the denial is based;

		
	(c)
	a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and

2017 Restatement    10

		
	(d)
	an explanation of the claim review procedure and the time limits applicable to such procedures, including a statement of the claimant's right to bring a civil action under Section 502(a) of ERISA.

		
	 6.2
	Appeal Provisions.  A claimant whose claim is denied (or his duly authorized representative) may within 60 days after receipt of denial of a claim file with the Committee a written request for a review of such claim.  If the claimant does not file a request for review of his claim within such 60-day period, the claimant shall be deemed to have acquiesced in the original decision of the Committee on his claim, the decision shall become final and the claimant will not be entitled to bring a civil action under Section 502(a) of ERISA.  If such an appeal is so filed within such 60-day period the Company (or its delegate) shall conduct a full and fair review of such claim.  During such review, the claimant (or the claimant's authorized representative) shall be given the opportunity to review all documents that are pertinent to his claim and to submit issues and comments in writing.  

The Company shall mail or deliver to the claimant a written decision on the matter based on the facts and the pertinent provisions of the Plan within 60 days after the receipt of the request for review (unless special circumstances require an extension of up to 60 additional days, in which case written notice of such extension shall be given to the claimant prior to the commencement of such extension).  Such decision shall be written in a manner intended to be understood by the claimant, shall state the specific reasons for the decision and the specific Plan provisions on which the decision was based and shall, to the extent permitted by law, be final and binding on all interested persons.
SECTION VII
MISCELLANEOUS
		
	 7.1
	The Board, or its delegate, may, in its sole discretion, terminate, suspend or amend this Plan at any time, in whole or in part.  However, the termination, amendment or suspension of this Plan will not operate to decrease the benefit of (i) a retired Participant, (ii) a Participant who has reached his Early Retirement Date, or (iii) a Beneficiary who is entitled to receive a pre-retirement death benefit hereunder.

To the extent provided by the Board or its delegate, the Plan may be liquidated following a termination under any of the following circumstances:
		
	(a)
	the termination and liquidation of the Plan within twelve (12)  months of a complete dissolution of the Company taxed under Section 331 of the Code or with the approval of a bankruptcy court pursuant to 11 U.S.C. § 503(b)(1)(A); provided that the amounts deferred under this Plan are included in the Participants' gross incomes in the latest of the following years (or, if earlier, the taxable year in which the amount is actually or constructively received): (i) the calendar year in which the Plan is terminated; (ii) the first calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the payment is administratively practicable.  

2017 Restatement    11

		
	(b)
	the termination and liquidation of the Plan pursuant to irrevocable action taken by the Company within the thirty (30) days preceding or the twelve (12) months following a change of control within the meaning of Section 409A of the Code; provided that all Aggregated Plans are terminated and liquidated with respect to each Participant that experienced such change of control, so that under the terms of the termination and liquidation, all such Participants are required to receive all amounts of deferred compensation under this Plan and any other Aggregated Plans within twelve (12) months of the date the Company irrevocably takes all necessary action to terminate and liquidate this Plan and such other Aggregated Plans;

		
	(c)
	the termination and liquidation of the Plan, provided that: (i) the termination and liquidation does not occur proximate to a downturn in the Company's financial health; (2) the Company terminates and liquidates all Aggregated Plans; (3) no payments in liquidation of this Plan are made within twelve (12) months of the date the Company irrevocably takes all necessary action to terminate and liquidate this Plan, other than payments that would be payable under the terms of this Plan if the action to terminate and liquidate this Plan had not occurred; (4) all payments are made within twenty four (24) months of the date on which the Company irrevocably takes all action necessary to terminate and liquidate this Plan; and (5) the Company does not adopt a new Aggregated Plan at any time within three (3) years following the date on which the Company irrevocably takes all action necessary to terminate and liquidate the Plan.

Notwithstanding the foregoing, the Plan shall automatically terminate, without further action of the Company, upon Insolvency of the Company.  For this purpose, Insolvency shall mean the inability of the Company to continue as a going concern.
		
	 7.2
	Notwithstanding any provision of the Plan to the contrary, the Committee may at any time (without the consent of any Participant) modify, amend or terminate any or all of the provisions of this Plan to the extent necessary to conform the provisions of the Plan with Section 409A of the Code, regardless of whether such modification, amendment or termination of this Plan shall adversely affect the rights of a Participant under the Plan.  

		
	 7.3
	Nothing contained herein will confer upon any Participant the right to be retained in the service of the Company, nor will it interfere with the right of the Company to discharge or otherwise deal with a Participant without regard to the existence of this Plan.

		
	 7.4
	No benefit under this Plan shall be assignable or subject to any manner of alienation, sale, transfer, claims of creditors, pledge, attachment or encumbrances of any kind.

		
	 7.5
	The Committee may adopt rules and regulations to assist it in the administration of the Plan and may delegate such of its duties hereunder as it may deem advisable.

		
	 7.6
	This Plan is established under and will be construed according to the laws of the State of Texas.

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	 7.7
	The effective date of this amended and restated Plan, as signed this 28th day of July, 2017, is August 1, 2017 (except as otherwise specifically noted herein).  

ANDEAVOR (or, prior to August 1, 2017, TESORO CORPORATION)

By: /s/ Rob Patterson                    
      Rob Patterson
      Vice President, Compensation & Benefits

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