Avid Technology, Inc.
Notice of Grant of Restricted Stock Under 1997 Stock Incentive Plan, as amended
NAME
Employee ID:
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Dear ,
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Effective (the "Effective Date"), you have been granted the
right to buy shares of Avid Technology, Inc. (the "Company") Restricted
Stock at $ per share (the "Shares"). The total price of the Shares is
$ . The Shares are subject to the terms and conditions of the Company's
1997 Stock Incentive Plan, as amended and the Terms and Conditions of the
Restricted Stock Award, each of which is attached hereto, and which, together
with this Notice of Grant of Restricted Stock, forms the complete agreement
between you and the Company relative to the Shares.
The Shares will vest as set forth in the following schedule, and will become
fully vested on the last date shown.
Vested Shares Vesting Date
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Upon termination of your employment, the Company has an option to repurchase the
Shares which are not then vested at a price of $ per Share, pursuant to the
Terms and Conditions of the Restricted Stock Award.
By your signature and the Company's signature below, you and the Company agree
that the Shares are granted under and governed by the terms and conditions of
the Company's 1997 Stock Incentive Plan, as amended and the Terms and Conditions
of the Restricted Stock Award.
AVID TECHNOLOGY, INC.
By Date
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Name:
Title:
Address: One Park West
Tewksbury, MA 01876
- --------------------------------- Date ------------------------
Employee
Address:
Avid Technology, Inc.
Terms and Conditions of Restricted Stock Award
Granted Under 1997 Stock Incentive Plan, as amended
1. Purchase of Shares.
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Avid Technology, Inc., a Delaware corporation (the "Company") has issued
and sold to the Participant, and the Participant has purchased from the Company,
subject to the terms and conditions set forth herein and in the
Company's 1997 Stock Incentive Plan, as amended (the "Plan"), the number of
shares identified in the attached Notice (the "Shares") of common stock, $.01
par value, of the Company ("Common Stock"), at a purchase price per share
identified in the attached Notice. The aggregate purchase price for the Shares
shall be paid by the Participant by check payable to the order of the Company or
such other method as may be acceptable to the Company. The Company shall record
on its books the issuance to the Participant of that number of Shares purchased
by the Participant. The Participant agrees that the Shares shall be subject to
the Purchase Option set forth in Section 2 herein and the restrictions on
transfer set forth in Section 4 herein.
2. Purchase Option.
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(a) The Shares shall vest and become "Vested Shares" on the
dates set forth in the attached Notice (each of such vesting dates being
referred to as a "Vesting Anniversary Date"). Except as provided in subsection
2(b) below, in the event that the Participant ceases to be employed by the
Company (as an employee or officer of, or an advisor or consultant to, the
Company) for any reason or no reason, with or without cause, prior to the final
Vesting Anniversary Date following the date hereof, vesting shall cease and the
Company shall have the right and option (the "Purchase Option") to purchase from
the Participant, for a sum specified in the attached Notice (the "Option
Price"), some or all of the Shares that are not then Vested Shares.
(b) In the event that the Participant's employment with the
Company is terminated by reason of death or disability (as defined in Section
22(e)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), the
Participant's Shares shall continue to vest for a period of one year.
(c) For purposes of these Terms and Conditions of the
Restricted Stock Award, employment with the Company shall include employment
with a parent or subsidiary of the Company.
3. Exercise of Purchase Option and Closing.
(a) The Company may exercise the Purchase Option by
delivering or mailing to the Participant (or his estate), within 90 days after
the termination of the employment of the Participant with the Company, a written
notice of exercise of the Purchase Option. Such notice shall specify the number
of Shares to be purchased. If and to the extent the Purchase Option is not so
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exercised by the giving of such a notice within such 90-day period, the Purchase
Option shall automatically expire and terminate effective upon the expiration of
such 90-day period.
(b) Within 10 days after delivery to the Participant of the
Company's notice of the exercise of the Purchase Option pursuant to subsection
(a) above, the Company shall cause to be transferred to the Company on its books
that number of Shares which the Company has elected to purchase in accordance
with the terms herein. In the event a certificate or certificates representing
the Shares have been issued to the Participant, the Participant (or his estate)
shall tender to the Company at its principal offices the certificate or
certificates representing the Shares which the Company has elected to purchase
in accordance with the terms herein, duly endorsed in blank or with duly
endorsed stock powers attached thereto, all in form suitable for the transfer of
such Shares to the Company. Upon such transfer, the Company shall deliver or
mail to the Participant a check in the amount of the aggregate Option Price for
such Shares (provided that any delay in making such payment shall not invalidate
the Company's exercise of the Purchase Option with respect to such Shares).
(c) After the time at which any Shares are transferred to
the Company pursuant to subsection 3(b) above, the Company shall not pay any
dividend to the Participant on account of such Shares or permit the Participant
to exercise any of the privileges or rights of a stockholder with respect to
such Shares, but shall, in so far as permitted by law, treat the Company as the
owner of such Shares.
(d) The Option Price may be payable, at the option of the
Company, in cancellation of all or a portion of any outstanding indebtedness of
the Participant to the Company or in cash (by check) or both.
(e) The Company shall not purchase any fraction of a Share
upon exercise of the Purchase Option, and any fraction of a Share resulting from
a computation made pursuant to Section 2 herein shall be rounded to the nearest
whole Share (with any one-half Share being rounded upward).
(f) The Company may assign its Purchase Option to one or
more persons or entities.
4. Restrictions on Transfer.
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The Participant shall not sell, assign, transfer, pledge, hypothecate
or otherwise dispose of, by operation of law or otherwise any unvested Shares,
or any interest therein, except by will or the laws of descent and distribution,
provided that such Shares shall remain subject to these Terms and Conditions of
the Restricted Stock Award (including without limitation the restrictions on
transfer set forth in this Section 4, and the Purchase Option) and such
permitted transferee shall, as a condition to such transfer, deliver to the
Company a written instrument confirming that such transferee shall be bound by
all of the terms and conditions herein.
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5. Effect of Prohibited Transfer.
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The Company shall not be required (a) to transfer on its books any of
the Shares which shall have been sold or transferred in violation of any of the
provisions set forth herein, or (b) to treat as owner of such Shares or to pay
dividends to any transferee to whom any such Shares shall have been so sold or
transferred.
6. Restrictive Legend.
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All certificates representing Shares shall have affixed thereto a
legend in substantially the following form, in addition to any other legends
that may be required under federal or state securities laws:
"The shares of stock represented by this certificate are
subject to restrictions on transfer and an option to purchase
set forth in certain Terms and Conditions of Restricted Stock
Award, and a copy of such Terms and Conditions of Restricted
Stock Award is available for inspection without charge at the
office of the Secretary of the corporation."
7. Provisions of the Plan.
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These Terms and Conditions of Restricted Stock Award are subject to the
provisions of the Plan, a copy of which is furnished herewith to the
Participant.
8. Withholding Taxes; Section 83(b) Election.
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(a) The Participant acknowledges and agrees that the Company
has the right to withhold from payments of any kind otherwise due to the
Participant, or to require the Participant to pay to the Company any federal,
state or local taxes of any kind required by law to be withheld by the Company
with respect to the purchase of the Shares by the Participant or the lapse of
the Purchase Option. At the option of the Board of Directors of the Company, the
Participant may satisfy such tax obligation in whole or in part by surrendering
to the Company shares of Common Stock, including Shares which are Vested Shares,
having a value, based on the last reported sale price of the Common Stock on the
NASDAQ National Market on the day prior to surrender, equal to the amount of
such obligation.
(b) The Participant acknowledges that the Participant has
been informed of the availability of making an election in accordance with
Section 83(b) of the Code; that such election must be filed with the Internal
Revenue Service within 30 days of the transfer of shares to the Participant; and
that the Participant is solely responsible for making such election.
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9. Miscellaneous.
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(a) Severability. The invalidity or unenforceability of any
provision hereof shall not affect the validity or enforceability of any other
provision hereof, and each such other provision shall be severable and
enforceable to the extent permitted by law.
(b) Binding Effect. These terms and conditions shall be
binding upon and inure to the benefit of the Company and the Participant and
their respective heirs, executors, administrators, legal representatives,
successors and assigns, subject to the restrictions on transfer set forth in
Section 4 herein.
(c) Notice. All notices required or permitted hereunder
shall be in writing and deemed effectively given upon personal delivery or five
days after deposit in the United States Post Office, by registered or certified
mail, postage prepaid, addressed to the other party hereto at the address shown
beneath his or its respective signature to the attached Notice, or at such other
address or addresses as either party shall designate to the other in accordance
with this Section 9(c).
(d) Entire Agreement. These terms and conditions, the
attached Notice and the Plan constitute the entire agreement between the
parties, and supersedes all prior agreements and understandings, relating to the
subject matter herein.
(e) Amendment. These terms and conditions may be amended or
modified only by a written instrument executed by both the Company and the
Participant.
(f) Governing Law. These terms and conditions shall be
construed, interpreted and enforced in accordance with the internal laws of the
State of Delaware without regard to any applicable conflicts of laws.
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