Document:

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                                                                   EXHIBIT 10.20

                                                                          [LOGO]
                                                                         Lombard
                                                                Network Services

                             MASTER RENTAL AGREEMENT

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                                                        Agreement Number AG 2198

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                              MASTER RENTAL AGREEMENT

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Arrangement Fee:                                                       Start
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Date:
      ---------------                                                  (to
be completed by us)

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                                    THE PARTIES

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THE LESSOR

Lombard Network Services Limited, Lombard House, Waterfront Business Park,
Elstree Road, Elstree, Herts WD6 3BS
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THE LESSEE

Name    Arbinet theXchange Limited

Address 12/18 Paul Street

            London
Post Code   EC2A 4JH

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SIGNED FOR AND ON BEHALF OF THE                                    SIGNED FOR
AND ON BEHALF OF THE
             LESSEE
LESSOR

<TABLE>
<S>                       <C>                        <C>                       <C>
  /s/ Peter F. Pastorelle   Authorized signatory        /s/ L. Capocci           Authorized signatory
--------------------------                           --------------------------
Name: Peter F. Pastorelle                            Name:  L. Capocci
      --------------------                                  -------------------
Title: VP Finance                                    Title: Credit & Contract Manager

Date: May 11, 2001                                   Date: 18.5.01
</TABLE>

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1.   Definitions

     In this Agreement and each Rental Agreement:

1.1  the following terms have the following meanings:

     "Agreement" means these Terms and Conditions.

     "Charges" means rentals and any other charges and sums due from you to us
     under any one or more Rental Agreements, including any applicable VAT and
     any similar or other taxes and duties.

     "Equipment" means the computer hardware, software and other products
     described in each Rental Agreement.

     "Lessee" or "you" means the legal entity designated above as the Lessee.

     "Lessor" or "we" means Lombard Network Services Limited.

     "Location" means your premises as specified in Clause 5.1.

     "Rental Term" means the period of rental stated in each Rental Agreement
     for the Equipment specified in that Agreement.

     "Rental Agreement" has the meaning given in Clause 2.3.

     "Rentals" means the rentals stated in each Rental Agreement for the
     Equipment specified in that Agreement.

     "Subsidiary" and "holding company" have the meanings given in section 736
     of the Companies Act 1985.

1.2  References to the words "includes" and "including" shall be construed
     without limitation to the generality of the proceeding words.

2.   Scope of Agreement

2.1  This Agreement sets out the procedures and terms which will apply to the
     renting of Equipment by us to you from time to time and the provision by us
     of any services in relation to rented Equipment.
2.2  Following receipt from you of a request for us to quote for the rental of
     specific Equipment and our acceptance to issue a quotation we will prepare
     and issue to you as soon as reasonably practicable an invitation (described
     as "the Quotation") for you to offer to rent that Equipment from us. Each
     Quotation will specify in a Schedule the specific Equipment, Rentals and
     other Charges, Rental Term, any services referred to in Clause 2.4 and any
     other supplementary terms for that Equipment, and its validity period.
2.3  No Rental Agreement for the Equipment specified in any Quotation will exist
     or be legally binding unless and until you return that Quotation unchanged
     and signed by you within the validity period of that Quotation and we have
     accepted and countersigned that Quotation signed by you following its
     receipt from you. Upon the date of our countersignature of a Quotation that
     Quotation shall be deemed to be a Rental Agreement attached to this
     Agreement.
2.4  If you elect to obtain from us any service relating to the Equipment under
     any Service Appendix attached to a Rental Agreement those services will be
     provided under the terms of that Appendix and the then current Services
     Schedule referenced in the Appendix, which will form part of that Rental
     Agreement. A copy of the Services Schedule will be supplied at any time you
     first elect to obtain services under any Rental Agreement entered into
     pursuant to this Agreement and the terms of that Service Schedule will
     apply to all services provided by us in relation to any Equipment rented to
     you unless we notify you to the contrary.
2.5  We and you agree that the provisions of each Schedules of a Quotation and
     the other provisions of this Agreement will form a separate Rental
     Agreement for the Equipment specified in that Schedule. However any breach
     of the provisions of that Rental Agreement will be deemed to be a breach of
     all other Rental Agreements in force between you and us. If there is any
     conflict or inconsistency between a Schedule and the terms of this
     Agreement, then the latter will prevail to the extent of such conflict or
     inconsistency only.
2.6  We may, upon prior written notice, change the terms and conditions of this
     Agreement, The changes will apply to all new Rental Agreements entered into
     on or after the effective date of change.

3.   Renting of Equipment

     We agree to rent to you and you agree to take on rental the Equipment
     listed in each Rental Agreement for the Rental Term and at the Rentals
     specified in that Rental Agreement, subject to the terms and conditions of
     that Agreement.

4.   Delivery and Inspection

4.1  Where the Equipment is to be delivered to you, either by us or the
     supplier, you agree to inspect the Equipment on delivery and accept the
     Equipment only if it is satisfactory. You will promptly notify us if any of
     the Equipment is not satisfactory and you will comply with our instructions
     regarding that unsatisfactory Equipment. If we have not received any notice
     to the contrary within 7 days after the delivery we are entitled to assume
     that you have accepted the Equipment as being satisfactory in every way.
4.2  You agree to sign, on our request, an acceptance certificated for the
     delivered Equipment that is satisfactory. You will be treated as having
     signed that certificate if after delivery you fail to notify us in
     accordance with Clause 4.1 that the Equipment is not satisfactory or when
     that Equipment is first put into operational use, whichever is the earlier.
4.3  You may not cancel or defer the delivery of any Equipment after you have
     returned the Quotation signed by you without our written approval, which
     may be subject to your payment of cancellation and other charges as
     notified by us.

5.   Equipment Location

5.1  You must keep the Equipment in your possession at all times at your
     premises specified in the Rental Agreement for that Equipment or at any
     other premises within the United Kingdom occupied by you which you notify
     us from time to time will be the usual location for that Equipment.
5.2  You must not take or use the Equipment outside of the United Kingdom
     without our prior written consent, except as permitted by Clause 5.3. use
     of the Equipment outside of the United Kingdom will be at your risk and
     expense.
5.3  Portable type Equipment may be taken outside of the Location and outside
     the United Kingdom for use in the normal course of your business without
     our consent.

6.0  Charges

6.1  You shall pay to us:
     a)   the Rentals specified in each rental Agreement by the dates stated in
          that Agreement, and
     b)   all other charges, including any arrangement fee, which become due
          from time to time, within 20 days of the invoice date for those
          Charges.
6.2  The Rental shall be paid by direct debit unless otherwise agreed by us and
     you agree to return a signed direct debit mandate within 7 days of
     signature of this Agreement.
6.3  If any Charge is unpaid for 10 days after the due date for payment, then
     without prejudice to any other right or remedy, interest shall be charged
     at the rate of 4% above the National Westminster Bank base rate from time
     to time on the amount outstanding, calculated on a daily basis from the
     original due date until paid in full and compounded annually. If not paid
     within 10 days of demand, interest will be added to the amounts overdue and
     will itself bear interest from the date of demand until payment in full.
6.4  The Rentals for the Equipment will remain fixed for the Rental Term of that
     Equipment, subject to the provisions of Clause 20.6.
6.5  You will pay us on demand our charges for:
     a)   at your request, either amending the terms of any Rental Agreement or
          providing additional services, and
     b)   reminding you about or dealing with any failure by you to comply with
          the terms of any Rental Agreement.

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          Details of these charges are available on request and will be notified
          to you before you are charged.
6.6  Punctual payment of all Charges is of the essence of this Agreement and
     each Rental Agreement.
6.7  Charges shall not be subject to any abatement, reduction, set-off defence
     or counterclaim for any reason.

7.   Use of the Equipment

     You must at your own expense:

     a)   operate and use the Equipment in accordance with the manufacturer's
          instructions and recommendations, using competent operators;
     b)   keep the Equipment properly protected from damage or loss;
     c)   give our representatives timely and reasonable access, during your
          normal business hours, to inspect the Equipment, check compliance by
          you with your obligations of use under the Rental Agreement, and
          service any Equipment for which we are responsible for servicing and
          maintaining;
     d)   not use or permit the Equipment to be used unlawfully or for any
          unlawful purpose;
     e)   make and update regularly backup copies of any data and software used
          on the Equipment;
     f)   not make any change (by alteration, addition or otherwise) to the
          Equipment without obtaining our written approval, which will not be
          unreasonably withheld;
     g)   not remove, alter or obscure any ownership notice on the Equipment;
     h)   keep the Equipment in good condition and working order; and
     i)   ensure that the Equipment remains personal and moveable property, even
          if fixed to land or buildings, and make sure that every person who has
          an interest in any land or buildings to which the Equipment is fixed
          gives us a written waiver of any right to that Equipment and a
          permission to enter the land or buildings and remove-that Equipment.

8.   Insurance, Loss, Damage

8.1  If you do not elect to insure the Equipment under an insurance scheme
     introduced by us then, unless otherwise agreed by us, you must
     comprehensively insure the Equipment against all insurable risks, including
     loss and damage from any cause for at least the greater from time to time
     of:
     a)   the total of the Rentals shown in the Rental Agreement for that
          Equipment less the sum of Rentals already paid; and
     b)   the full replacement value of that Equipment,

     in each case from the time that Equipment is delivered to you until the
     Equipment is either returned to or repossessed by us following termination
     of the applicable Rental Agreement. You will also insure us and you against
     any liability to others caused by the Equipment, including injury, death,
     and physical damage to or loss of property.

8.2  You shall make sure our interest is noted on the insurance policy and, on
     our request, produce within 7 days of the commencement date of the Rental
     Term and on each renewal or replacement of the policy a certificate of
     insurance and a copy of the current premium receipt. If you fail to insure
     in accordance with Clause 8.1 we may do so and you will repay our costs and
     expenses (including premiums) on demand.
8.3  You must notify us and the insurers immediately of any incident involving
     the Equipment. Following any incident involving the Equipment you shall, if
     we so request, assign to us all of your rights, claims and interests under
     the insurance policy, and you hereby agree that on the date of receipt of
     that request you will be deemed to have irrevocably appointed us to receive
     all insurance proceeds and to negotiate with the insurers in respect of the
     claim.
8.4  If the Equipment is lost, stolen, destroyed or so damaged that in the
     insurer's opinion they cannot be economically repaired (a "Total Loss") you
     will pay for the replacement of the Equipment, but in respect of any other
     damage which is not a Total Loss you will pay for the costs of repairing
     and restoring the Equipment to good working order. Unless otherwise agreed,
     you will pay to us any sum received under insurance of the Equipment and we
     may set that sum against any amounts owed to us under any Rental Agreement
     and we shall refund to you any excess of that sum received.
8.5  Unless otherwise agreed by us, you shall continue to pay the Rentals in
     full while any Equipment is being repaired. If the Equipment is a Total
     Loss the Rental Agreement for that Equipment will terminate automatically
     and you will immediately pay us ail arrears of Rental and other sums due.
     If you do not enter into a new Rental Agreement for replacement Equipment
     within 30 days of the Total Loss occurring you will also pay to us the
     balance of the Rentals for that Equipment which would but for termination
     have been payable from the date of termination to the end of the Rental
     Term, less a discount on that balance calculated at the rate of 2% below
     National Westminster Bank base rate applying at the commencement date of
     the Rental Term for that Equipment to reflect the early payment of the
     balance.

9.   Upgrades

9.1  You may elect on written notice to us to upgrade all or part of the
     Equipment at any time during the Rental Term on condition that new
     replacement equipment will be leased from us under this Agreement.
9.2  In order to upgrade to new equipment you must first terminate the Rental
     Agreement for the Equipment to be upgraded by payment to us of:
     a)   all sums due in respect of that Equipment up to the date of our
          receipt of notice of your election to upgrade; and
     b)   the balance of the Rentals for that Equipment less a discount on the
          balance, calculated at 2% below National Westminster Bank base rate
          applying at the commencement date of the Rental Term for that
          Equipment to reflect the early payment of that balance.
9.3  You will sign a new Rental Agreement for the upgraded Equipment detailing
     the Rentals and Rental Term for that Equipment.

10.  Extension of Rental Term

     The Rental Term of a Rental Agreement may be extended beyond the initial
     Rental Term if you are not in Default, as defined in Clause 11, subject to
     our prior written agreement of the Rentals for and duration of the
     extension period, but otherwise that Rental Agreement will continue on the
     same terms.

11.  Termination by Default

11.1 A default by you shall arise if any of the following events occur:
     a)   you fail to pay any Charges due under any Rental Agreement on or
          before its due date;
     b)   you are in breach of any other term of any Rental Agreement,
          undertaking or representation made by you and do not remedy that
          breach, if capable of remedy, within 14 days of receiving a written
          request to do so from us;
     c)   you default in payment of any sum due or commit any other breach under
          any agreement you may have with our holding company or any subsidiary
          of that holding company or us;
     d)   there is a petition for a bankruptcy order presented against you;
     e)   an application is made for an interim order against you under the
          Insolvency Act 1986;
     f)   you call a meeting of or come to any arrangement with your creditors;
     g)   there is a receiving order made against you or there is a petition for
          winding up or an administration order presented against you;
     h)   you pass a resolution for winding up (voluntary or otherwise) or have
          a receiver or administrative receiver appointed;
     i)   you cease to trade;
     j)   you do or suffer anything which will or may jeopardise our rights in
          the Equipment, including if the Equipment is seized by any third
          party; or

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     k)   if you are a limited company or a partnership and you cause or allow
          any change in your control (as defined in section 840 of the Income
          and Corporation Taxes Act 1988), other than by a solvent
          reconstruction or amalgamation.
11.2 If a Default occurs we may take any one or more of the following actions:
     a)   terminate this Agreement and/or the renting of Equipment under all or
          any Rental Agreements in whole or in part as we decide at our sole
          discretion;
     b)   recover all Rentals and other Charges due up to and including the date
          of expiry of the Rental Term, together with interest;
     c)   pursue any remedy otherwise available at Law, including the recovery
          of damages for breach.
11.3 The renting under the Rental Agreement terminates automatically and we may
     (whether by repossessing the Equipment or otherwise) terminate that Rental
     Agreement if you repudiate it. You will be treated as having repudiated a
     Rental Agreement if you fail for more than 28 days to pay any Rental or
     other Charges due under that Rental Agreement or you commit any breach of
     Clauses 8, 13.2, 13.3 or 19.1 or fail more than 14 days after a request
     from us to remedy any other breach of that Rental Agreement.
11.4 You must immediately pay us in relation to each Rental Agreement for which
     the renting of Equipment is terminated (together with VAT):
     a)   all arrears of Rentals and other Charges due; and
     b)   the balance of all Rentals which would but for termination have become
          payable from the date of termination to the end of the Rental Term.

12.  Return of the equipment on termination

12.1 You will notify us not later than 90 days before the expiry of the Rental
     Term of each Rental Agreement if you intend to allow the Rental Agreement
     to terminate on such expiry date and return the Equipment and not seek an
     extension of the Rental Term. If you fail to give us that information
     before expiry of that notice period you agree to pay us an amount equal to
     two months of Rental. If the Rental Term is extended beyond the initial
     Rental Term then the period of notice to be given to us will be not less
     than 90 days.
12.2 On the expiry of the Rental Term or earlier termination of each Rental
     Agreement or the renting under it for any reason:
     a)   you must at your expense promptly return the Equipment which is rented
          under that Agreement (including all cables, manuals and accessories)
          in good condition (fair wear and tear excluded) to us at such address
          in the United Kingdom as we may designate; if you fail to return the
          Equipment or wish us to collect the Equipment you will pay us our
          collection costs and expenses;
     b)   we may retake possession of that Equipment wherever it may be if you
          do not return it and you authorise our representatives to enter any of
          your premises for that purpose;
     c)   you will pay any costs and expenses incurred by us to restore that
          Equipment to good condition, such costs and expenses to include repair
          and the replacement of missing or damaged parts and inspection and the
          erasure of any of your confidential information which remains stored
          in the Equipment;
     d)   we may dispose of that Equipment as we consider appropriate; and
     e)   our consent to your possession of that Equipment terminates
          immediately and you will have no further right or interest in that
          Equipment unless the Rental Term is extended under Clauses 10 or 12.4.
12.3 For the purposes of Clause 12.2 "good condition" includes free from
     exterior and interior damage, including damaged casings, boards and drives
     and "fair wear and tear" includes natural discolouration of the Equipment,
     casings and cables.
12.4 If you do not return any Equipment in accordance with Clause 12.2 the
     Rental Term for that Equipment will be automatically extended on a month by
     month basis until the end of the calendar month in which that Equipment is
     returned to or repossessed by us and you will continue to pay the Rentals
     for each of those months at the same rates previously applying.

13.  Ownership

13.1 Title to the Equipment will not pass to you at any time. You have no rights
     or interest in the Equipment except as specified in each Rental Agreement.
13.2 You must not sublet the Equipment or change the Location without our
     written consent. No sublet or relocation will relieve you from your
     obligations under a Rental Agreement.
13.3 You must not sell, offer for sale, assign, mortgage, charge, pledge, hire
     out, loan or part with possession of the Equipment or any interest in them,
     or any part.

14.  Software

     All software forming part of the Equipment supplied to you under each
     Rental Agreement is provided subject to the licensing conditions and
     restrictions of the software manufacturer or supplier, details of which
     shall be made available on request, if not already supplied at the time of
     delivery of the Equipment. You must observe and comply with these licensing
     conditions, including any restrictions on the use, copying and transfer of
     the software.

15.  Confidentiality

15.1 You and we each agree to keep in the strictest confidence and not disclose
     to any third party which is not an affiliate or use for any purpose (other
     than in connection with this Agreement and any existing or proposed Rental
     Agreement) any information relating to the other's business which is marked
     "confidential" or is clearly by its nature confidential without the
     disclosing party's written consent.
15.2 The obligations in Clause 15.1, which will continue after termination of
     this Agreement or any Rental Agreement, will not apply to information which
     is or comes into the public domain for reasons not due to the default of
     the recipient or is lawfully received from a third party without
     restriction. Each of us may disclose the other's confidential information
     to our employees, agents, contractors and professional advisors on a need
     to know basis and to others having a legal right or duty to know that
     information.

16.  General Indemnity

     You shall indemnify us against:

     a)   any breach by you of the terms, conditions, undertakings and
          representations contained in this Agreement and each Rental Agreement;
     b)   any liability or loss (including legal costs on a full indemnity
          basis) arising from your possession and use of the Equipment,
          including injury, death, physical damage or loss to persons or
          property, except to the extent we are expressly liable under the terms
          of this Agreement or any Rental Agreement; and
     c)   any costs and expenses incurred by us in enforcing this Agreement or
          any Rental Agreement or in protecting our rights and interests under
          those Agreements and in the Equipment.

17.  Our Warranties

17.1 We warrant that we will not interfere with your quiet enjoyment of the use
     of the Equipment so long as you are complying with all of the terms of this
     Agreement and each Rental Agreement.
17.2 Where Equipment is identified in any Rental Agreement to be subject to our
     limited defects warranty, we warrant that such Equipment will be in good
     working order for a period of 90 days from the date of delivery to you. Our
     sole responsibility under this warranty will be, at our option and expense,
     to repair or replace the defective Equipment or refund the Rentals paid by
     you for that Equipment and terminate the Rental Agreement in relation to
     that Equipment.
17.3 We will transfer to you, on our terms and to the extent we are permitted,
     the benefit of any manufacturer's or supplier's express warranties we
     receive about the

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     relating to those warranties will be made by you directly against the
     manufacturer or supplier unless otherwise greed by us.
17.4 You are responsible for determining that the Equipment meets your needs,
     including ensuring that the Equipment is Year 2000 and Euro compliant,
     notwithstanding any advice or recommendation given by us. We do not warrant
     that the operation of any Equipment will be uninterrupted or fault free.
17.5 The express obligations and warranties given by us in this Agreement and in
     each Rental Agreement are in lieu of and to the exclusion (to the fullest
     extent permitted by law) of any other warranty, condition, term or
     undertaking, express or implied, statutory or otherwise relating to
     anything supplied or services provided under or in connection with this
     Agreement and any Rental Agreement including without limitation as to the
     quality and fitness for purpose of the Equipment or any part.

18.  Limitation of liability

18.1 We accept liability to the extent that it results from our negligence and
     that of our employees, agents and contractors for:
     (a)  death or personal injury without limit, and
     (b)  physical damage to or loss of your tangible property up to the amount
          of (pound)1,000,000 in respect of each incident or series of connected
          incidents.
18.2 Whether or not advised of their possibility, we and any affiliates will not
     be liable in contract, tort (including negligence) or otherwise, for any
     indirect or consequential loss, damage, cost or expense of any kind
     including (without limitation) toss of or corruption to data (you being
     responsible for establishing and maintaining adequate backup procedures),
     loss of profits or of contracts, economic loss, business interruption, loss
     of goodwill or anticipated savings or wasted management or staff time.
18.3 In all other cases (excluding cases where liability may not law be excluded
     or limited) not falling within Clause 18.1 the maximum liability of
     ourselves and any affiliates (whether in contract, tort including
     negligence or otherwise) under or in connection with this Agreement, the
     Rental Agreements and any other agreement with you relating to the
     Equipment or based on any claim for indemnity or contribution will not
     exceed in aggregate the greater of the sum of (pound)50,000 or 125% of the
     sums received by us under the Rental Agreement(s) in relation to the
     Equipment which is the subject of the claim(s).
18.4 You confirm and agree that the allocation of risk contained in this
     Agreement and each Rental Agreement is a recognition, inter alia, that it
     is not within our control how and for what purpose the Equipment is used
     and you are able to rely on your own insurance arrangements and other
     resources to bear or recover any loss for which we are not liable.

19.  Assignment

19.1 You must not assign, transfer or otherwise dispose of this Agreement and
     each Rental Agreement without our prior written approval.
19.2 We may assign our rights and obligations under this Agreement and/or each
     Rental Agreement on notice to you.

20.  General

20.1 If you incur any liability (whether liquidated or unliquidated) to us or
     our holding company or any subsidiary of that holding company or of us we
     may set off the liability against any sum that would otherwise be due to
     you under the Rental Agreement.
20.2 Any notice required under this Agreement or any Rental Agreement will be
     properly served if in writing and sent by prepaid first class post or
     delivered by hand to the addressee's. address shown above or the last known
     address of the addressee. Notice will be effective 48 hours after posting
     if sent by prepaid first class post and at the time of delivery if
     delivered by hand.
20.3 We may appoint subcontractors to perform any obligations to be performed by
     us in connection with the Equipment but we will remain responsible for the
     performance of those obligations.
20.4 If you are more than one person, your obligations are binding on each of
     you separately and all of you jointly.
20.5 Your obligations to indemnify us under Clause 16, to pay us interest under
     Clause 6.3 and to pay us additional Rental under Clause 12.4 will not be
     affected if for any reason this Agreement or any Rental Agreement
     terminates.
20.6 For the purpose of UK taxation, and irrespective of your accounting
     practices, you may not claim capital allowances on the Equipment. If any
     capital and other allowance or expense having been claimed by us in
     relation to the calculation of any Rentals is withdrawn or the benefit of
     it is reduced or limited in any way as a result of a decision of the
     taxation authorities, we may make, and you will accept, such adjustments to
     the Rentals as are necessary to place us in the same financial position as
     if the allowances originally made had continued unchanged. If the
     adjustment is disputed the dispute may be adjudicated by a reputable firm
     of chartered accountants appointed by us and its decision shall be binding
     on both of us.
20.7 You will keep us immediately informed of any event which might affect our
     rights or involve us in any proceedings, loss or liability, including those
     events specified in Clause 11 (Default) above.
20.8 You will give us information which we may reasonably request with regard to
     the Equipment and the performance of your obligations, including
     information needed by us for submission to HM Inland Revenue and reasonable
     financial and other information which we may request for financial
     evaluation purposes.

21.  Severability

     If any part of this Agreement or any Rental Agreement is found by a court
     of competent jurisdiction or other competent part shall be severed from the
     remainder of this Agreement or the Rental Agreement, as the case may be,
     which will continue to be valid and enforceable to the fullest extent
     permitted by law.

22.  Waiver

     No delay or failure by either party to exercise any of its powers, rights
     or remedies under this Agreement or any Rental Agreement will operate as a
     waiver of them, nor will any single or partial exercise of any of those
     powers, rights or remedies preclude any other or further exercise of them.
     Any waiver to be effective must be in writing. The remedies provided in
     this Agreement and each Rental Agreement are cumulative and not exclusive
     of any remedies provided by law.

23. Entire Agreement

23.1 This Agreement and the Rental Agreements are the complete and exclusive
     statement of the agreements between you and us relating to their subject
     matter and supersede all previous communications, representations and
     arrangements, written or oral. You confirm that no reliance is placed on
     any representation made but not embodied in these Agreements. The printed
     terms and conditions of any purchase order or other correspondence and
     documents issued by you in connection with this Agreement or any Rental
     Agreement will not apply unless expressly accepted in writing by us.
23.2 Except as otherwise permitted by this Agreement no change to its terms or
     the terms of any Rental Agreement will be effective unless it is in writing
     and signed by persons authorised on behalf of both you and us.

24.  Governing Law

     This Agreement and each Rental Agreement shall be governed by the laws of
     England and each party agrees to submit to the exclusive jurisdiction of
     the English courts. Headings have been included for convenience only and
     shall not be used in construing any provision.

<PAGE>

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F.A.O.: Pete Pastorelle                 From:
Arbinet theXchange Limited              Company: Lombard Network Services Ltd.
12/18 Paul Street                       Lombard House, Waterfront Business Park
London, EC2A 4JH.                       Elstree Road, Elstree, Herts, WD6 3BS
                                        Tel: 0870 789 8553
Fax:                                    Fax: 0870 789 8554
                                        Date: 11th May 2001,
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                         RENTAL QUOTATION - DIRECT SHIP
                           QUOTATION NUMBER: ARB23171
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This Quotation is an invitation by us for you to make an offer to rent from us
the Equipment specified in the Schedule attached to this Quotation on the terms
stated below. Please check the details carefully. If you wish to offer to rent
from us that Equipment on those terms please complete and sign the "Offer to
Rent" section and return this document to us by post and fax. If you have any
queries or if your requirements have changed in any way, please contact us and
we shall be pleased to discuss them with you.

                                 OFFER TO RENT

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To: Lombard Network Services Ltd. ("Lessor")
--------------------------------------------------------------------------------
From: Arbinet theXchange Limited ("Lessee")

1.   Please accept this as our offer to rent the Equipment specified in the
     Schedule attached to the above numbered Quotation, as Lessee, subject to
     the terms and conditions of the Master Rental Agreement number 2198. Upon
     acceptance by you, this offer, together with the Schedule will constitute
     the Rental Agreement (as defined in the Master Rental Agreement) for that
     Equipment,

2.   The Lessee may make a written request to the Lessor, that the Lessor sells
     all or part of the Equipment listed in Part 1 of the Schedule to a
     specified third party. The Lessor shall not unreasonably withhold consent
     to such a sale.

     Prior to such a sale taking place, the Lessee must pay to the Lessor:

     a)   all sums due in respect of that Equipment up to the effective date of
          termination, which for the avoidance of doubt shall be the same date
          as the proposed date of sale of the Equipment.
     b)   the balance of the Rentals for that Equipment for the remainder of the
          Rental Term less a discount on the balance, calculated at 2% below
          National Westminster Bank base rate applying at the commencement date
          of the Rental Term for that Equipment to reflect the early payment of
          that balance.

     The Lessor will rebate Rentals to the Lessee equivalent to the amount by
     which the total cumulative sales proceeds from such sales exceeds
     (pound)40,000 as soon as practicable following the sale.

     For the purpose of calculating the above sums (as shown in a and b), the
     Rentals attributable to the Equipment being sold shall be the relevant
     proportion applied to the total rentals due for the Capital Value as a
     whole, where the relevant proportion is the sales proceeds of that
     Equipment expressed as a percentage of the total Capital Value, except that
     the cumulative relevant proportion shall not exceed 14.05%. The Capital
     Value being an amount of (pound)3,558,718.86 exclusive of VAT as defined in
     the Schedule of Equipment below.

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<PAGE>

     The Lessor shall release amounts from the deposit covered by the charge
     over deposit account dated 4th April 2001 in accordance with the terms of
     that charge.

3.   In the event that the Lessee continues to rent the Equipment after the
     initial term for a new term of at least one year then the quarterly rentals
     for that term shall not exceed 40% of the initial term's quarterly rental
     for that Equipment.

We understand and accept that this offer to rent is not binding on or accepted
by Lombard Network Services Limited, as Lessor, until counter-signed by an
authorised officer of the company. Please issue confirmation of your acceptance
by post and fax.

Authorised Signatory: /s/ Peter F. Pastorelle      Name: Peter F. Pastorelle
                     -------------------------
Title: VP Finance                                  Date: May 11, 2001

                         ACCEPTANCE COUNTER - SIGNATURE
                    (Signed by Lombard Network Services Ltd.)

To: Arbinet thexchange Limited
From: Lombard Network Services Ltd.

I am pleased to confirm acceptance of your Offer to Rent in respect of the
Equipment referred to in the above numbered Quotation on behalf of Lombard
Network Services Ltd. as Lessor. Unless you have issued a direct debit mandate
for the Rentals to be effective from the commencement date of the Rental Term,
please return your cheque for (pound)576,814.41 in respect of the Initial
Payment due, plus Value Added Tax - The first three months rental.

Authorised Signatory: /s/ L. Capocci                     Name: L. Capocci
                      --------------------               -----------------------

Title: Credit & Contracts Manager                  Date: 18.5.01

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<PAGE>

<TABLE>
----------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------
<S>                    <C>        <C>
RENTAL QUOTATION NO:   ARB23171   TO MASTER RENTAL AGREEMENT NO: 2198

LEESSEE CODE: TBA
----------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------

                                              SCHEDULE OF EQUIPMENT
EQUIPMENT LOCATION (if applicable):

----------------------------------------------------------------------------------------------------------
    QTY                CODE                DESCRIPTION             PRICE                  TOTAL
----------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------

-- As per Schedule attached below ------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------
                                                                                   (pound)3,558,718.86
                                           Capital Value to be financed

                                           (Exclusive of VAT) =

----------------------------------------------------------------------------------------------------------
Supplier of Equipment: the supplier

----------------------------------------------------------------------------------------------------------
                                 RENTALS (Exclusive of VAT)

----------------------------------------------------------------------------------------------------------
Rental Term: 12 Quarters            Commencement Date:

----------------------------------------------------------------------------------------------------------
                                                                                     Amount of each Rental
               No. of                                                                  (pound)      P
              Rentals   Frequency                               When Payable
----------------------------------------------------------------------------------------------------------
                 1      1   monthly   Starting on         Commencement Date:
                                                                                       576,814      41
----------------------------------------------------------------------------------------------------------

followed by     11      3   monthly   Starting 3 months after the Commencement         288,375      96
                                      Date and continuing on the same date
                                      every 3 month(s) after that
----------------------------------------------------------------------------------------------------------

                                              RENTAL RATE
                                              INCLUDES

----------------------------------------------------------------------------------------------------------
     Code     Service
     ----     -------
No services are provided for this equipment at present.

Services Schedule:
The services Schedule and applicable Appendices attached thereto will apply in
relation to those services marked above which the Lessee has elected to obtain
from the Lessor in relation to the Equipment

                  Limited Defects Warranty: NO
(refer to Clause 17.2 Master Rental Agreement)

----------------------------------------------------------------------------------------------------------
                                       Please Note:
..    Lombard Network Services Ltd. will absorb minor changes in interest rates,
     but reserves the right to amend this Quotation should interest rates
     Increase by more than .25 of a Percent before its acceptance of the offer
     to rent.
..    This Quotation is valid for 14 days from the date shown above or until a
     change in National Westminster Bank base interest rates, if sooner.
..    Note: Where this Quotation is issued in relation to a Master Hiring
     Agreement between you and us the term "Master Rental Agreement" means That
     Hiring Agreement and references to Lessee, Lessor, Rental Charges and
     Rental Term mean respectively the Hirer, Owner, Hire Charge and Term as
     defined in that Master Hiring Agreement.
----------------------------------------------------------------------------------------------------------
</TABLE>

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<PAGE>

Authorised Signatory: /s/ Peter F Pastorelle    Name: Peter F. Pastorelle
                      ----------------------
Title: VP-Finance                               Date: May 11, 2001

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<PAGE>

                                    SCHEDULE

                                     PART 1

Communications cabinet with Nokia MUX unit and
ECI TDAX 34 mb MUX unit

Fifteen ECI Telecom DTX 360 telephone compression units with
power supply units
Seven DTX 240 telephone compression units, comprising
IF, RT and FX units
WTI CAS-161A code activated switch

                                     PART 2

4th Floor
Eighteen metal frame elbow chairs

Eleven swivel elbow chairs

Five Sony PCG-F190 PII laptop computers with port replicator complete
with colour monitor, keyboard and mouse

Toshiba 7020CT laptop. Serial, no: Y9240763U

Toshiba 3010 CT/4.3 laptop. Serial no: Z8O157O7

Seven Hewlett Packard LaserJet 6L laser printers

Wood veneer 'L' shaped desk fitted with three drawers

Steel frame tambour front cabinet

Bisley tambour front cabinet

Xerox 745 document centre

Intimus paper shredder

Wood veneer meeting table

Wood veneer four door cabinet

Four clone tower personal computers with 3 1/2" drive and CD ROM,
complete with colour monitor, keyboard and mouse

Wall mounted projection screen

Vacuum cleaner

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<PAGE>

Communications cabinet containing:

BICC Brand-Rex fibre link patch panel
Two, 3 Com SuperStack II switch 3300 switches
Seven patch panels

Hewlett Packard LaserJet 4000 N laser printer

Sharp microwave oven

Hotpoint fridge/freezer

Hotpoint DF53 dishwasher

Kitchen sundries

Two metal frame elbow chairs

3' diameter wood veneer table

Melamine and metal frame "Castelli" desking system comprising:

Fourteen workstations
Eight tambour cabinets
Fourteen mobile pedestals
Twelve dividers
Seven linking units

Five colour monitors, various

Hewlett Packard Vectra VL2 4/50 personal computer fitted 3 12" drive and
CD ROM, complete with colour monitor, keyboard and mouse

Mint PII tower CPU fitted 3 1/2" drive and CD ROM

Hewlett Packard LaserJet 5L laser printer

Two Compaq DeskPro PII personal computers fitted 3 1/2" drive and
CD ROM, complete with colour monitor, keyboard and mouse

Toshiba Satellite Pro 420 CDT laptop computer
Serial No. 08612918E with external 3 1/2" drive

Canon Multi Pass C50 facsimile machine

Notebook Computers Pentium laptop personal computer

Flip chart and stand

Seven wood veneer and metal frame cabinets fitted double
doors, two drawers

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<PAGE>

Ten swivel elbow chairs

Seven wood veneer and metal frame curved edge desks
with three drawer pedestal

Two Toshiba Portege Pentium 3010 CT model PAP301E
laptop computers

Toshiba PA2722U laptop docking station complete with
colour monitor, keyboard and mouse

Nine steel frame elbow chairs

Two melamine veneer and steel frame, two position desking systems

AST Ascentia M Series Pentium laptop computer complete with
colour monitor, keyboard and mouse

Twenty two Northern Telecom Meridian M7310 handsets

4' diameter meeting table

Ground Floor

Telecommunications switching and ancillary equipment
consisting of:
               ------------------------------------------------------

Nortel Global Software Platform comprising:

Constant Power Services Ltd. CPS60-A33XP UPS
Serial No. 07991387 80 KVA with batteries, cable,
switchgear, etc.

Seven Qualitair Series 600 air conditioning plants, with
insulated ducting, cable, controls, etc.

Nortel Supernode main control unit with type SN70
processor, NT9X10CA cards, message switch, computing
module and system load modules
Nortel 128K enhanced Network cabinet
Three Nortel link interface modules, fitted
Seventy six link interface units and
Two Ethernet interface units
Seventeen Nortel digital trunk switch cabinets, containing:
Thirty four PCM30 digital controllers (27 x C7 and 7xISDN)

Two Nortel power distribution cabinets

Nortel cabinet containing various switch modems, etc.

Two Nortel integrated service module cabinets consisting of:

Seven maintenance trunk modules
Three Dram trunk modules

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<PAGE>

Conference trunk module

Nortel 1500-4000A power plant consisting of:
Conventional controller type NT6C25BB
Helios 3000/48 monitor
Six circuit breaker panels type NT6C12EG
Five Helios 2001/48 rectifiers
Twenty four x 100A-33 GNB battery rack

Ten Coherent EC-600 digital echo cancellers with six Coherent
EC-8000 digital echo cancellers

Telecom Solutions DCD-LPR/C digital clock and distributor
and satellite dish

Special purpose digital distribution frame consisting often
frames, patch panels, cabling, etc.

Norstar phone system consisting of central control unit
1/C 379593, three section line module, extension module and
3 section global live unit

Newbridge 3630 power control unit
Serial No. 319311872

Communications-cabinet containing:

Hewlett Packard 24R advance stack switching hub and five patch panels

TTC Dynatech Fireberd 6000 A communications analyser

Two communications cabinets containing:

Seven BICC patch panels
BICC fibre link
Dell Poweredge 2200 server fitted 3 1/2" drive CD ROM and tape
drive complete with colour monitor, keyboard and mouse

Four swivel elbow chairs

Seven melamine veneer desk units

Four wood veneer double door cabinet with two drawers

Five floating pedestals

Five clone PII 350 mhz tower personal computers fitted 3 1/2" drive
and CD ROM complete with colour monitor, keyboard and mouse

Two digital LA400 multi printers

Xerox 7092 fax machine

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<PAGE>

Oki 20 printer

Oki 121 printer

IBM 350 P100 personal computer complete with colour monitor,
keyboard and mouse

Lexmark 2390 plus printer

Sun Spark station, 5 computer

Compaq DeskPro PII personal computer fitted 3 1/2" drive and
CD ROM complete with colour monitor, keyboard and mouse

FEUPS

Hewlett Packard LaserJet 5L laser printer

Hotpoint dishwasher

Sharp microwave owen

Ignis fridge

Kitchen sundries

Co Location Room

Twenty 1800 mm high communications cabinets

Three communication cabinets containing Eighteen
class 5 patch panels and connecting panels to DDF frame

Side Room

Xerox 5621 photocopier

Xerox 610 fax machine

Spare colour monitors, cable, etc.

Outside

Interpower 447 km 60 hp standby generator

THIRD PARTY ITEMS

4th Floor

Culligan water dispenser

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<PAGE>

Xerox 5321 photocopier Serial No. 2128943830

Pitney Bowes "Postage by Phone" meter and scale

Ground Floor

Third Party communications cabinets and systems

Co-Location Room

Third Party cabinets and contents

Third Party contents of cabinets

Authorised Signatory:/s/ Peter F. Pastorelle  Name: Peter F. Pastorelle
                     -----------------------

Title: VP Finance                             Date: May 11, 2001

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<PAGE>

Addendum to Master Rental Agreement No 2198

The Lessor and Lessee have hereby agreed to the insertion of the following
amendment in to the Master Rental Agreement No 2198.

Clause 7 i)

This clause shall now be amended to read "ensure that the Equipment remains
personal and moveable property, even if fixed to land or buildings." - the
remaining text in 7i) will be treated as having been struck out.

Clause 11.1

The following shall be added to Clause 11.1

l) you fail within 180 days after the end of the accounting period of the
relevant company to provide us and to use your reasonable endeavours in the case
of your Parent company to provide us, with a copy of the annual audited
financial statements of your Company and your Parent Company, in each case
prepared in accordance with accounting principles generally accepted from time
to time in the United Kingdom and in the case of your Parent Company the United
States of America and (subject thereto) on a basis consistent with prior years;

m) you fail to provide us within 45 days from the end of each calendar quarter
with quarterly management accounts for the Company in the same format as that
produced to us and dated 31st March 2001 and received by us on 26th April 2001
and such other information as we may reasonably require including copies of
revised projections or budgets and will use your reasonable endeavours to
procure such financial information relating to the Parent as we from time to
time may reasonably require;

n) if at any time following the receipt of $33,000,000 of Series E capital the
financial position of Arbinet TheXchange Inc. shall be such that the Total Net
Worth falls below $37,000,000 (thirty seven million United States Dollars). For
the purposes of this clause, "Total Net Worth" means the aggregate of:

          Common Stock

          Additional Paid in Capital

          Preferred Stock (Series A to D and including Series E if and when
          raised)

          Deferred Compensation

          Accumulated Deficit Less an appropriate deduction from Stockholders
          Loans Outstanding.

Each of the above items (11.1 l, m and n) are to be interpreted as currently
defined in your company's Statutory Accounts dated 31 December 2000 to include
in the case of any restatement reinterpretation by us to cater for replacement
or restructuring of your Company's capital structure that may occur in the
future.

Clause 16 c)

Insert after "any costs and expenses" the word "reasonable" into this clause

Agreed and Accepted (for and on behalf of Lombard Network Services Ltd.)

Signed /s/ L. Capocci
       ---------------------------------
Title Credit & Contract Manager

Date 18.5.01

Agreed and Accepted (for and on behalf of Arbinet theXchange Limited)

Signed /s/ Peter F Partrelle
       ---------------------------------

Title VP-Finance

Date May 11, 2001

<PAGE>

                                                                         [Logo]

                                        Lombard
                                        Lombard GATX Technology
                                        Lombard House, The Waterfront
 Attn: Mr Peter Sach                    Elstree Road
 Arbinet-thexchange Limited             Elstree
 C/O 120 Albany Street                  Hertfordshire WD6 38S
 Tower 11, Suite 450,                   Telephone: 08707 898600
 New Brunswick,                         Facsimile: 08707 898601
 NJ 08901                               www.lombardgatx.co.uk

17/th/ June 2004

By Post and by Fax to 001 732 509 9299

Dear Peter,

Thank you for your letter dated 15/th/ June 2004 setting out your proposal to
pay invoice number 122947 by instalments. However, you will see that the VAT
amount set out in your proposal does not equal the 17.5% payable, which I am
sure is an oversight and we have increased the first instalment to reflect this.

I confirm that Lombard GATX Technology Limited is prepared to agree with
Arbinet-Thexchange Limited to vary the terms of the Master Rental Agreement No.
2198 and Rental Agreement No. ARB23171, as varied by the Addendum completed on
25 October 2002, (together the "Agreement") as set out in this letter.

Arbinet-Thexchange Limited is to make payments towards the Balloon Payment as
due under our invoice number 122947 dated 5 May 2004 as follows:

18/th/ June 2004 payment of (Pounds)190,364.20 (this includes VAT payable on
this invoice at 17.5% of the invoice total of (Pounds)587,544.00 which equals
(Pounds)102,820.20).
18/th/ July 2004 payment of (Pounds)100,000
18/th/ August 2004 payment of (Pounds)100,000
18/th/ September 2004 payment of (Pounds)100,000
18/th/ October 2004 payment of (Pounds)100,000
18/th/ November 2004 payment of (Pounds)100,000

On completion of these scheduled payments, the initial rental term shall be
extended for an annual Rental of (Pounds)10,000 (exc VAT @ 17.5%), with the
first payment being due on the 18/th/ May 2005, followed by annual payments on
18/th/ May each year after that until the Agreement is terminated in accordance
with the original terms and conditions of the Agreement.

The terms and conditions of the Agreement shall remain in place and shall
continue to have full force and effect.

The sums set out above are liabilities due from Arbinet-Thexchange Limited to
Lombard GATX Technology Limited for the purposes of the guarantee provided by
Arbinet-Thexchange, Inc. to Lombard GATX Technology Limited and this guarantee
shall remain in place and shall continue to have full force and effect.

Our bank details for payment are as follows:

Account Name: ***
Bank Name:    ***
Branch:       ***
A/C no:       ***
Sort Code:    ***

<PAGE>

It is a condition of these terms that the payment of the sums set out above are
made punctually on the agreed dates and that any failure to make payments on or
before the agreed dates will be deemed to be a breach of the Agreement and may
result in the action specified in the default clauses in our Agreements being
imposed.

Please now arrange for the enclosed copy of this letter to be signed as
confirmation of the acceptance of the terms set out in this letter by
Arbinet-Thexchange Limited and Arbinet-Thexchange, Inc.

I look forward to receiving the first agreed instalment tomorrow by close of
business.

Yours sincerely,

/s/  Lynn Capocci
Lynn Capocci
Operations Manager
Authorised Signatory for and on behalf of Lombard GATX Technology Limited

Name /s/  Lynn Capocci
Title Director
Authorised Signatory for and on
behalf of Arbinet-Thexchange
Limited
Date. 17 June 2004

Name /s/ Peter P. Sach
Title CIO & SVP Operations
Authorised Signatory for and on
behalf of Arbinet-Thexchange,
Inc.
Date. 17 June 2004

Cc: Arbinet Thexchange Inc.

Payment Approval:  17 June 2004

Peter P. Sach
/s/  Peter P. Sach
CIO & SVP Operations

John Roberts
/s/  John Roberts
CFO

J. Curt Hockemeier
/s/  J. Curt Hockemeier
President & CEO2004 Employee Stock Purchase Plan

 EXHIBIT 10.69 
  
 PINNACLE SYSTEMS, INC. 
  
 2004 EMPLOYEE STOCK PURCHASE PLAN 
  
 The following constitute the provisions of the Employee Stock Purchase Plan of Pinnacle Systems, Inc. 
  
 1. Purpose. The purpose of the Plan is to provide employees of the
Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan”
under Section 423 of the Code. The provisions of the Plan, accordingly, shall be construed so as to extend and limit participation in a uniform and nondiscriminatory basis consistent with the requirements of Section 423. 
  
 2. Definitions. 
  
 (a) “Administrator” shall mean the Board or
any Committee designated by the Board to administer the Plan pursuant to Section 14. 
  
 (b) “Board” shall mean the Board of Directors of the Company. 
  
 (c) “Change of Control” shall mean the
occurrence of any of the following events: 
  
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company
representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; or 
  
 (ii) The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; or 

 
 (iii) The consummation of a merger or consolidation of
the Company, with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company, or such surviving entity or its parent outstanding immediately after
such merger or consolidation. 
  
 (iv) A change
in the composition of the Board, as a result of which fewer than a majority of the Directors are Incumbent Directors. “Incumbent Directors” shall mean Directors who either (A) are Directors of the Company, as applicable, as of the date
hereof, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of those Directors whose election or nomination was not in connection with any transaction described 

  

 
in subsections (i), (ii) or (iii) or in connection with an actual or threatened proxy contest relating to the election of Directors of the Company.

  
 (d) “Code” shall mean the
Internal Revenue Code of 1986, as amended. 
  
 (e) “Committee” means a committee of the Board appointed by the Board in accordance with Section 14 hereof. 
  
 (f) “Common Stock” shall mean the common stock of the Company. 
  
 (g) “Company” shall mean Pinnacle Systems,
Inc. 
  
 (h) “Compensation”
shall mean all base straight time gross earnings, excluding commissions, payments for overtime, shift premium, variable compensation, incentive payments, bonuses, and other cash compensation. 
  
 (i) “Designated Subsidiary” shall mean any
Subsidiary selected by the Administrator as eligible to participate in the Plan. 
  
 (j) “Director” shall mean a member of the Board. 
  
 (k) “Eligible Employee” shall mean any individual who is a common law employee of the
Company or any Designated Subsidiary and whose customary employment with the Company or Designated Subsidiary is at least twenty (20) hours per week and more than five (5) months in any calendar year. For purposes of the Plan, the employment
relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Company. Where the period of leave exceeds 90 days and the individual’s right to reemployment is not guaranteed
either by statute or by contract, the employment relationship shall be deemed to have terminated on the 91st day of such leave. 
  
 (l) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 (m) “Exercise Date” shall mean the first
Trading Day on or after May 1 and November 1 of each year. The first Exercise Date under the Plan shall be May 1, 2005. 
  
 (n) “Fair Market Value” shall mean, as of any date, the value of Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no
sales were reported) as quoted on such exchange or system on the date of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable; 
  
 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not
reported, its Fair Market Value shall be the mean of the closing bid 

  

 -2- 

 
and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other source as the Board deems
reliable; or 
  
 (iii) In the absence of an
established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Board. 
  
 (o) “Offering Date” shall mean the first Trading Day of each Offering Period. 
  
 (p) “Offering Periods” shall mean the
periods of approximately twenty-four (24) months during which an option granted pursuant to the Plan may be exercised, commencing on the first Trading Day on or after May 1 and November 1 of each year and terminating on the May 1 and November 1
Offering Period commencement date approximately twenty-four months later; provided, however, that the first Offering Period under the Plan shall commence on the first Trading Day on or after August 24, 2004 and end on the first Trading Day on or
after November 1, 2006, and the second Offering Period under the Plan shall commence on the first Trading Day on or after May 1, 2005 and end on the first Trading Day on or after May 1, 2007. The duration and timing of Offering Periods may be
changed pursuant to Section 4 of this Plan. 
  
 (q) “Plan” shall mean this Employee Stock Purchase Plan. 
  
 (r) “Purchase Period” shall mean the approximately six (6) month period commencing on one Exercise Date and ending with
the next Exercise Date, except that the first Purchase Period of any Offering Period shall commence on the Offering Date and end with the next Exercise Date. 
  

(s) “Purchase Price” shall mean 85% of the Fair Market Value of a share of Common Stock on the Offering Date or on the
Exercise Date, whichever is lower; provided however, that the Purchase Price may be adjusted by the Administrator pursuant to Section 20. 
  
 (t) “Subsidiary” shall mean a “subsidiary corporation,” whether now or hereafter existing, as defined in
Section 424(f) of the Code. 
  
 (u)
“Trading Day” shall mean a day on which national stock exchanges and the Nasdaq System are open for trading. 
  
 3. Eligibility. 
  
 (a) First Offering Period. Any individual who is enrolled in the Company’s 1994 Employee Stock Purchase Plan shall be
automatically enrolled in the first Offering Period with payroll deductions commencing at the same rate as specified in such individual’s most recent subscription agreement submitted to the Company. 
  
 (b) Subsequent Offering Periods. Any Eligible
Employee on a given Offering Date shall be eligible to participate in the Plan. 
  
 (c) Limitations. Any provisions of the Plan to the contrary notwithstanding, no Eligible Employee shall be granted an option under
the Plan (i) to the extent that, immediately after the grant, such Eligible Employee (or any other person whose stock would be attributed to such 

  

 -3- 

 
Eligible Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding options to purchase such stock
possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of any Subsidiary, or (ii) to the extent that his or her rights to purchase stock under all employee stock
purchase plans of the Company and its subsidiaries accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of stock (determined at the fair market value of the shares at the time such option is granted) for each calendar year in
which such option is outstanding at any time. 
  
 4. Offering
Periods. The Plan shall be implemented by consecutive, overlapping Offering Periods with a new Offering Period commencing on the first Trading Day on or after May 1 and November 1 each year, or on such other date as the Board shall determine,
and continuing thereafter until terminated in accordance with Section 20 hereof. The Board shall have the power to change the duration of Offering Periods (including the commencement dates thereof) with respect to future offerings without
shareholder approval if such change is announced prior to the scheduled beginning of the first Offering Period to be affected thereafter. 
  
 5. Participation. An Eligible Employee may become a participant in the Plan by completing a subscription agreement authorizing payroll deductions
in the form of Exhibit A to this Plan and filing it with the Company’s payroll office prior to the applicable Offering Date. 
  
 6. Payroll Deductions. 
  
 (a) At the time a participant files his or her subscription agreement, he or she shall elect to have payroll deductions made on each pay
day during the Offering Period in an amount not exceeding 15% of the Compensation which he or she receives on each pay day during the Offering Period; provided, however, that should a pay day occur on an Exercise Date, a participant shall have the
payroll deductions made on such day applied to his or her account under the new Offering Period or Purchase Period, as the case may be. A participant’s subscription agreement shall remain in effect for successive Offering Periods unless
terminated as provided in Section 10 hereof. 
  
 (b) Payroll deductions for a participant shall commence on the first payday following the Offering Date and shall end on the last payday in the Offering Period to which such authorization is applicable, unless sooner terminated by the
participant as provided in Section 10 hereof. 
  
 (c) All payroll deductions made for a participant shall be credited to his or her account under the Plan and shall be withheld in whole percentages only. A participant may not make any additional payments into such account. 
  
 (d) A participant may discontinue his or her participation
in the Plan as provided in Section 10 hereof, or may increase or decrease the rate of his or her payroll deductions during the Offering Period by completing or filing with the Company a new subscription agreement authorizing a change in payroll
deduction rate. The Administrator may, in its discretion, limit the nature and/or number of participation rate changes during any Offering Period. The change in rate shall be effective with the first full payroll period following five (5) business
days after the Company’s receipt of the new subscription agreement unless the Company elects to process a given change in participation more quickly. 
  

 -4- 

 (e) Notwithstanding the foregoing, to the extent necessary to comply with Section
423(b)(8) of the Code and Section 3(c) hereof, a participant’s payroll deductions may be decreased to zero percent (0%) at any time during a Purchase Period. Payroll deductions shall recommence at the rate provided in such participant’s
subscription agreement at the beginning of the first Purchase Period which is scheduled to end in the following calendar year, unless terminated by the participant as provided in Section 10 hereof. 
  
 (f) At the time the option is exercised, in whole or in
part, or at the time some or all of the Company’s Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, which arise
upon the exercise of the option or the disposition of the Common Stock. At any time, the Company may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet applicable
withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by the Eligible Employee. 
  
 7. Grant of Option. On the Offering Date of each Offering Period, each
Eligible Employee participating in such Offering Period shall be granted an option to purchase on each Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of shares of the Company’s Common Stock
determined by dividing such Eligible Employee’s payroll deductions accumulated prior to such Exercise Date and retained in the Participant’s account as of the Exercise Date by the applicable Purchase Price; provided that in no event shall
an Eligible Employee be permitted to purchase during each Purchase Period more than 5,000 shares of the Company’s Common Stock (subject to any adjustment pursuant to Section 19), and provided further that such purchase shall be subject to the
limitations set forth in Sections 3(c) and 12 hereof. The Eligible Employee may accept the grant of such option by turning in a completed Subscription Agreement (attached hereto as Exhibit A) to the Company on or prior to an Offering Date.
The Administrator may, for future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of the Company’s Common Stock an Eligible Employee may purchase during each Purchase Period of such Offering
Period. Exercise of the option shall occur as provided in Section 8 hereof, unless the participant has withdrawn pursuant to Section 10 hereof. The option shall expire on the last day of the Offering Period. 
  
 8. Exercise of Option. 
  
 (a) Unless a participant withdraws from the Plan as provided
in Section 10 hereof, his or her option for the purchase of shares shall be exercised automatically on the Exercise Date, and the maximum number of full shares subject to option shall be purchased for such participant at the applicable Purchase
Price with the accumulated payroll deductions in his or her account. No fractional shares shall be purchased; any payroll deductions accumulated in a participant’s account which are not sufficient to purchase a full share shall be retained in
the participant’s account for the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the participant as provided in Section 10 hereof. Any other funds left over in a participant’s account after the Exercise
Date shall be returned to the participant. During a participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her. 
  

 -5- 

 (b) If the Administrator determines that, on a given Exercise Date, the number of shares
with respect to which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Offering Date of the applicable Offering Period, or (ii) the number of shares available for sale
under the Plan on such Exercise Date, the Administrator may in its sole discretion (x) provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such Offering Date or Exercise Date, as
applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and continue all Offering Periods
then in effect, or (y) provide that the Company shall make a pro rata allocation of the shares available for purchase on such Offering Date or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in
its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and terminate any or all Offering Periods then in effect pursuant to Section 20 hereof. The Company may make pro rata
allocation of the shares available on the Offering Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional shares for issuance under the Plan by the Company’s shareholders
subsequent to such Offering Date. 
  
 9. Delivery. As soon
as reasonably practicable after each Exercise Date on which a purchase of shares occurs, the Company shall arrange the delivery to each participant of the shares purchased upon exercise of his or her option in a form determined by the Administrator.

  
 10. Withdrawal. 
  
 (a) A participant may withdraw all but not less than all the
payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan at any time by giving written notice to the Company in the form of Exhibit B to this Plan. All of the participant’s payroll
deductions credited to his or her account shall be paid to such participant promptly after receipt of notice of withdrawal and such participant’s option for the Offering Period shall be automatically terminated, and no further payroll
deductions for the purchase of shares shall be made for such Offering Period. If a participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the participant delivers
to the Company a new subscription agreement. 
  
 (b) A participant’s withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which
commence after the termination of the Offering Period from which the participant withdraws. 
  
 11. Termination of Employment. In the event a participant ceases to be an Eligible Employee of the Company or any Designated Subsidiary, as applicable, his or her option automatically shall terminate on the
date of such Eligible Employee’s termination. Any payroll deductions credited to such participant’s account during the Offering Period but not yet used to purchase shares under the Plan shall be returned to such participant or, in the case
of his or her death, to the person or persons entitled thereto under Section 15 hereof, and such participant’s option shall be automatically terminated. 
  

 -6- 

 12. Interest. No interest shall accrue on the payroll deductions of a participant in the Plan.

  
 13. Stock. 
  
 (a) Subject to adjustment upon changes in capitalization of
the Company as provided in Section 19 hereof, the maximum number of shares of the Company’s Common Stock that shall be made available for sale under the Plan shall be the number of shares that would have been authorized but unissued under the
Company’s 1994 Employee Stock Purchase Plan (the “1994 Plan”) as of August 24, 2004 had the 1994 Plan not terminated. 
  
 (b) Until the shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent
of the Company), a participant shall only have the rights of an unsecured creditor with respect to such shares, and no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to such shares. 
  
 (c) Shares to be delivered to a participant under the Plan
shall be registered in the name of the participant or in the name of the participant and his or her spouse. 
  
 14. Administration. The Administrator shall administer the Plan and shall have full and exclusive discretionary authority to construe, interpret
and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan. Every finding, decision and determination made by the Administrator shall, to the full extent permitted by law, be final and
binding upon all parties. 
  
 15. Designation of
Beneficiary. 
  
 (a) A participant may file a
written designation of a beneficiary who is to receive any shares and cash, if any, from the participant’s account under the Plan in the event of such participant’s death subsequent to an Exercise Date on which the option is exercised but
prior to delivery to such participant of such shares and cash. In addition, a participant may file a written designation of a beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such
participant’s death prior to exercise of the option. If a participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective. 
  
 (b) Such designation of beneficiary may be changed by the
participant at any time by written notice. In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such
shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash
to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
  
 (c) All beneficiary designations shall be in such form and
manner as the Administrator may designate from time to time. 
  

 -7- 

 16. Transferability. Neither payroll deductions credited to a participant’s account nor any
rights with regard to the exercise of an option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 15
hereof) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with Section
10 hereof. 
  
 17. Use of Funds. All payroll deductions
received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions. Until shares are issued, participants shall only have the rights of an
unsecured creditor. 
  
 18. Reports. Individual accounts
shall be maintained for each participant in the Plan. Statements of account shall be given to participating Eligible Employees at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of
shares purchased and the remaining cash balance, if any. 
  
 19.
Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Change of Control. 
  
 (a) Changes in Capitalization. Subject to any required action by the shareholders of the Company, the maximum number of shares of
the Company’s Common Stock which shall be made available for sale under the Plan, the maximum number of shares each participant may purchase each Purchase Period (pursuant to Section 7), the number of shares that may be added annually to the
shares reserved under the Plan (pursuant to Section 13(a)(i)), as well as the price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other change in the number of shares of Common Stock
effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall
be made by the Administrator, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock
of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option. 
  
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the
Company, the Offering Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the consummation of such proposed dissolution or liquidation, unless
provided otherwise by the Administrator. The New Exercise Date shall be before the date of the Company’s proposed dissolution or liquidation. The Administrator shall notify each participant in writing, at least ten (10) business days prior to
the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10 hereof. 
  

 -8- 

 (c) Merger or Change of Control. In the event of a merger or Change of Control,
each outstanding option shall be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the
option, any Purchase Periods then in progress shall be shortened by setting a New Exercise Date and any Offering Periods then in progress shall end on the New Exercise Date. The New Exercise Date shall be before the date of the Company’s
proposed merger or Change of Control. The Administrator shall notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New
Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10 hereof. 
  
 20. Amendment or Termination. 
  
 (a) The Administrator may at any time and for any reason
terminate or amend the Plan. Except as otherwise provided in the Plan, no such termination can affect options previously granted, provided that an Offering Period may be terminated by the Administrator on any Exercise Date if the Administrator
determines that the termination of the Offering Period or the Plan is in the best interests of the Company and its shareholders. Except as provided in Section 19 and this Section 20 hereof, no amendment may make any change in any option theretofore
granted which adversely affects the rights of any participant. To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall
obtain shareholder approval in such a manner and to such a degree as required. 
  
 (b) Without shareholder consent and without regard to whether any participant rights may be considered to have been “adversely
affected,” the Administrator shall be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s
Compensation, and establish such other limitations or procedures as the Administrator determines in its sole discretion advisable which are consistent with the Plan. 
  
 (c) In the event the Administrator determines that the ongoing operation of the Plan may result in
unfavorable financial accounting consequences, the Board may, in its discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to: 
  
 (i) increasing the Purchase Price for any Offering Period
including an Offering Period underway at the time of the change in Purchase Price; 
  
 (ii) shortening any Offering Period so that Offering Period ends on a new Exercise Date, including an Offering Period underway at the time
of the Board action; and 
  

 -9- 

 (iii) allocating shares. 
  
 Such modifications or amendments shall not require stockholder approval or the consent of any Plan participants. 
  
 21. Notices. All notices or other communications by a participant to
the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form and manner specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

 
 22. Conditions Upon Issuance of Shares. Shares shall not be issued
with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with
respect to such compliance. 
  
 As a condition to
the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or
distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law. 
  
 23. Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption by the Board of Directors
or its approval by the shareholders of the Company. It shall continue in effect until terminated under Section 20 hereof. 
  
 24. Automatic Transfer to Low Price Offering Period. To the extent permitted by any applicable laws, regulations, or stock exchange rules if the
Fair Market Value of the Common Stock on any Exercise Date in an Offering Period is lower than the Fair Market Value of the Common Stock on the Offering Date of such Offering Period, then all participants in such Offering Period shall be
automatically withdrawn from such Offering Period immediately after the exercise of their option on such Exercise Date and automatically re-enrolled in the immediately following Offering Period. 
  

 -10- 

 EXHIBIT A 
  
 PINNACLE SYSTEMS, INC. 
  
 2004 EMPLOYEE STOCK PURCHASE PLAN 
  
 SUBSCRIPTION AGREEMENT 
  

			
	             Original Application	 	Offering Date:                     
	             Change in Payroll Deduction Rate	 	 
	             Change of Beneficiary(ies)	 	 

  

	1.	                                      
   hereby elects to participate in the Pinnacle Systems, Inc. 2004 Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”) and subscribes to purchase shares of the Company’s Common Stock in accordance with this
Subscription Agreement and the Employee Stock Purchase Plan. 

  

	2.	I hereby authorize payroll deductions from each paycheck in the amount of             % of my Compensation on each
payday (from 0 to 15%) during the Offering Period in accordance with the Employee Stock Purchase Plan. (Please note that no fractional percentages are permitted.) 

  

	3.	I understand that said payroll deductions shall be accumulated for the purchase of shares of Common Stock at the applicable Purchase Price determined in accordance with the Employee
Stock Purchase Plan. I understand that if I do not withdraw from an Offering Period, any accumulated payroll deductions will be used to automatically exercise my option. 

  

	4.	I have received a copy of the complete Employee Stock Purchase Plan. I understand that my participation in the Employee Stock Purchase Plan is in all respects subject to the terms
of the Plan. I understand that my ability to exercise the option under this Subscription Agreement is subject to shareholder approval of the Employee Stock Purchase Plan. 

  

	5.	Shares purchased for me under the Employee Stock Purchase Plan should be issued in the name(s) of (Eligible Employee or Eligible Employee and Spouse only). 

 

	6.	 I understand that if I dispose of any shares received by me pursuant to the Plan within 2 years after the Offering Date (the first day of the Offering Period during
which I purchased such shares) or one year after the Exercise Date, I will be treated for federal income tax purposes as having received ordinary income at the time of such disposition in an amount equal to the excess of the fair market value of the
shares at the time such shares were purchased by me over the price which I paid for the shares. I hereby agree to notify the Company in writing within 30 days after the date of any disposition of my shares and I will make adequate provision for
Federal, state or other tax withholding obligations, if any, which arise upon the 

  

	 	 
disposition of the Common Stock. The Company may, but will not be obligated to, withhold from my compensation the amount necessary to meet any
applicable withholding obligation including any withholding necessary to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by me. If I dispose of such shares at any time after the
expiration of the 2-year and 1-year holding periods, I understand that I will be treated for federal income tax purposes as having received income only at the time of such disposition, and that such income will be taxed as ordinary income only to
the extent of an amount equal to the lesser of (1) the excess of the fair market value of the shares at the time of such disposition over the purchase price which I paid for the shares, or (2) 15% of the fair market value of the shares on the first
day of the Offering Period. The remainder of the gain, if any, recognized on such disposition will be taxed as capital gain. 

  

	7.	I hereby agree to be bound by the terms of the Employee Stock Purchase Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the
Employee Stock Purchase Plan. 

  

	8.	In the event of my death, I hereby designate the following as my beneficiary(ies) to receive all payments and shares due me under the Employee Stock Purchase Plan:

  

							
	NAME: (Please print)	  	 	  	 	  	 
	 	  	(First)	  	(Middle)	  	(Last)

  

					
			
	  	 	 	 	  
	Relationship	 	 	 	 
			
	  	 	 	 	  
	Percentage Benefit	 	 	 	(Address)

  

							
	NAME: (please print)	  	 	  	 	  	 
	 	  	(First)	  	(Middle)	  	(Last)

  

					
			
	  	 	 	 	  
	Relationship	 	 	 	 
			
	  	 	 	 	  
	Percentage of Benefit	 	 	 	(Address)

  

 -2- 

			
	 Employee’s Social
 Security
Number:
	  	 
		
	 Employee’s Address:
	  	 
		
	 	  	 
		
	 	  	 

  
 I UNDERSTAND THAT THIS SUBSCRIPTION
AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME. 
  

							
				
	Dated:	 	  

	 	 	 	  

	 	 	 	 	 	 	Signature of Employee
				
	  	 	  	 	 	 	  

	 	 	 	 	 	 	Spouse’s Signature (If beneficiary other than spouse)

  

 -3- 

 EXHIBIT B 
  
 PINNACLE SYSTEMS, INC. 
  
 2004 EMPLOYEE STOCK PURCHASE PLAN 
  
 NOTICE OF WITHDRAWAL 
  
 The undersigned participant in the Offering Period of the Pinnacle Systems, Inc. 2004 Employee Stock Purchase Plan which began on
                    ,              (the “Offering Date”) hereby
notifies the Company that he or she hereby withdraws from the Offering Period. He or she hereby directs the Company to pay to the undersigned as promptly as practicable all the payroll deductions credited to his or her account with respect to such
Offering Period. The undersigned understands and agrees that his or her option for such Offering Period will be automatically terminated. The undersigned understands further that no further payroll deductions will be made for the purchase of shares
in the current Offering Period and the undersigned shall be eligible to participate in succeeding Offering Periods only by delivering to the Company a new Subscription Agreement. 
  

			
	Name and Address of Participant:
		
	 	 	 
		
	 	 	 
		
	 	 	 
	
	Signature:
		
	 	 	 
		
	Date:

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