Document:

Change of Control Severance Agreement

 EXHIBIT 10.78 
  
 PINNACLE SYSTEMS, INC. 
  
 CHANGE OF CONTROL SEVERANCE AGREEMENT 
  
 This Change of Control Severance Agreement (the “Agreement”) is made and entered into effective as of November 8, 2004 (the “Effective
Date”), by and between Warren Allgyer (the “Employee”) and Pinnacle Systems, Inc., a California corporation (the “Company”). Certain capitalized terms used in this Agreement are defined in Section 1 below. 
  
 R E C I T A L S 
  
 A. It is expected that the Company from time to time will consider the
possibility of a Change of Control. The Board of Directors of the Company (the “Board”) recognizes that such consideration can be a distraction to the Employee and can cause the Employee to consider alternative employment opportunities.

  
 B. The Board believes that it is in the best interests of the
Company and its shareholders to provide the Employee with an incentive to continue his employment and to maximize the value of the Company upon a Change of Control for the benefit of its shareholders. 
  
 C. In order to provide the Employee with enhanced financial security and
sufficient encouragement to remain with the Company notwithstanding the possibility of a Change of Control, the Board believes that it is imperative to provide the Employee with certain severance benefits upon the Employee’s termination of
employment (i) following a Change of Control and (ii) regardless of a Change of Control. 
  
 AGREEMENT 
  
 In
consideration of the mutual covenants herein contained and the continued employment of the Employee by the Company, the parties agree as follows: 
  
 1. Definition of Terms. The following terms referred to in this Agreement shall have the following meanings: 
  
 (a) Cause. “Cause” shall mean (i) any act of personal
dishonesty taken by the Employee in connection with his responsibilities as an employee which is intended to result in substantial personal enrichment of the Employee, (ii) the Employee’s conviction, or plea of nolo contendere, of a felony,
(iii) an act by the Employee which constitutes misconduct and is materially injurious to the Company, or (iv) continued violations by the Employee of the Employee’s obligations to the Company after there has been delivered to the Employee a
written demand for action from the Company which describes the basis for the Company’s belief that the Employee has not substantially performed his duties. 

 (b) Change of Control. “Change of Control” shall mean the occurrence of any of the
following events: 
  
 (i) the consummation of a merger or
consolidation of the Company with any other entity, 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) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation; 
  
 (ii) any approval by the shareholders of the
Company, or if shareholder approval is not required, by the Board of Directors of the Company, of a plan of complete liquidation of the Company or the consummation of the sale or disposition by the Company of all or substantially all of the
Company’s assets; 
  
 (iii) any “person” (as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becoming the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing more
than fifty percent (50%) of the total voting power represented by the Company’s then outstanding voting securities; or 
  
 (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 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. 
  
 (c) Involuntary Termination. “Involuntary Termination” shall
mean any of the following, without the Employee’s express written consent, (i) a significant reduction of the Employee’s duties, position or responsibilities relative to the Employee’s duties, position or responsibilities in effect
immediately prior to such reduction, or the removal of the Employee from such position, duties and responsibilities, unless the Employee is provided with comparable duties, position and responsibilities; provided, however, that a
reduction in duties, position or responsibilities solely by virtue of the Company being acquired and made part of a larger entity (as, for example, when, following a Change of Control, the Chief Executive Officer of the Company remains as the senior
executive officer or a division or subsidiary of the acquiror which division or subsidiary contains substantially all of the Company’s business or is of comparable size but is not made the Chief Executive Officer of the acquiring corporation)
shall not constitute an Involuntary Termination; (ii) a substantial reduction, without good business reasons, of the facilities and perquisites (including office space and location) available to the Employee immediately prior to such reduction;
(iii) a reduction by the Company of the Employee’s base salary or target bonus as in effect immediately prior to such reduction; (iv) a material reduction by the Company in the kind or level of employee benefits to which the Employee is
entitled immediately prior to such reduction with the result that the Employee’s overall benefits package is significantly reduced; (v) the relocation of the Employee to a facility or a location more than fifty (50) miles from his current
location; (vi) any purported termination of the Employee by the Company which is not effected for Cause or for which the grounds relied upon are not valid; or (vii) the failure of the Company to obtain the assumption of this Agreement by any
successors contemplated in Section 6 below. 
  

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 2. Term of Agreement. This Agreement shall terminate upon the date that all obligations of the
parties hereto under this Agreement have been satisfied. 
  
 3.
At-Will Employment. The Company and the Employee acknowledge that the Employee’s employment is and shall continue to be at-will, as defined under applicable law. If the Employee’s employment terminates for any reason, the Employee
shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement, or as may otherwise be established under the Company’s then existing employee benefit plans or policies at the time of
termination. 
  
 4. Change of Control and Severance
Benefits. 
  
 (a) Severance in Connection with Termination
of Employment. If the Employee’s employment with the Company is terminated by the Company other than for Cause then the Employee shall be entitled to receive the following severance benefits: 
  
 (i) Option Acceleration. One hundred percent (100%) of the shares
subject to all outstanding options granted to the Employee by the Company (the “Options”) prior to the date of such termination shall immediately become vested and exercisable in full upon such termination. Following such acceleration, the
Options shall continue to be subject to the terms and conditions of the Company’s stock option plans and the applicable option agreements between the Employee and the Company. 
  
 (ii) Cash Severance Payment. The Employee shall be entitled to receive a severance payment in an amount equal to the
sum of (A) six (6) months of the Employee’s base salary as in effect immediately prior to such termination and (B) fifty percent (50%) of the Employee’s target performance bonus for the fiscal year of termination. Such severance payment
shall be in lieu of any other severance payment to which the Employee shall be entitled pursuant to any employment agreement, offer letter or the Company’s then existing severance plans and policies. Such severance payment shall be payable in a
lump sum within thirty (30) days of such termination in accordance with the Company’s normal payment practices. 
  
 (iii) Certain Benefits. During the six (6) months following such termination, the Company shall continue to make available to the Employee and the
Employee’s dependents covered under any group health plans or life insurance plans of the Company on the date of such termination of employment, all group health, life and other similar insurance plans in which the Employee or such covered
dependents participate on the date of the Employee’s termination; provided, however, that (i) the Employee constitutes a qualified beneficiary, as defined in Section 4980B(g)(l) of the Internal Revenue Code of 1986, as amended
(the “Code”); and (ii) the Employee elects continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), within the time period prescribed pursuant to COBRA. 
  

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 (b) Termination Following A Change of Control. If the Employee’s employment with the Company
terminates as a result of an Involuntary Termination at any time within three (3) months prior to or within twelve (12) months after a Change of Control, then the Employee shall be entitled to receive the following severance benefits: 
  
 (i) Option Acceleration. One hundred percent (100%) of the shares
subject to all Options granted to the Employee by the Company prior to the Change of Control shall immediately become vested and exercisable in full upon such Involuntary Termination. Following such acceleration, the Options shall continue to be
subject to the terms and conditions of the Company’s stock option plans and the applicable option agreements between the Employee and the Company. 
  
 (ii) Cash Severance Payment. The Employee shall be entitled to receive a severance payment in an amount equal to the sum of (A) six (6) months of
the Employee’s base salary as in effect immediately prior to the Involuntary Termination and (B) fifty percent (50%) of Employee’s target performance bonus for the fiscal year of termination. Such severance payment shall be in lieu of any
other severance payment to which the Employee shall be entitled pursuant to any employment agreement, offer letter or the Company’s then existing severance plans and policies. Such severance payment shall be payable in a lump sum within thirty
(30) days of the Involuntary Termination in accordance with the Company’s normal payment practices. 
  
 (iii) Certain Benefits. During the six (6) months following the Involuntary Termination, the Company shall continue to make available to the
Employee and the Employee’s dependents covered under any group health plans or life insurance plans of the Company on the date of such termination of employment, all group health, life and other similar insurance plans in which the Employee or
such covered dependents participate on the date of the Employee’s termination; provided, however, that (i) the Employee constitutes a qualified beneficiary, as defined in Section 4980B(g)(l) of the Code; and (ii) the Employee
elects continuation coverage pursuant to COBRA, within the time period prescribed pursuant to COBRA. 
  
 (c) Voluntary Resignation or Termination for Cause. If the Employee’s employment with the Company terminates as a result of the
Employee’s voluntary resignation which is not an Involuntary Termination or if the Employee is terminated for Cause at any time, then the Employee shall not be entitled to receive severance or other benefits hereunder, but may be eligible for
those benefits (if any) as may then be established under the Company’s then existing severance and benefits plans and policies at the time of such termination. 
  
 (d) Disability or Death. If the Employee’s employment with the Company terminates due to the Employee’s
death or disability following a Change of Control, then the Employee shall not be entitled to receive severance or other benefits hereunder, except for those (if any) as may be then established under the Company’s then existing severance and
benefits plans and policies at the time of such disability or death. In the event of the Employee’s death or disability after the termination of the Employee’s employment with the Company pursuant to Section 4(a) or Section 4(b) of this
Agreement, the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees shall be entitled to receive severance or other benefits hereunder. 
  
 (e) Accrued Wages and Vacation; Expenses. Without regard to the reason
for, or the timing of, the Employee’s termination of employment: (i) the Company shall pay the Employee any unpaid base salary due for periods prior to the date of termination; (ii) the Company shall pay 
  

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 the Employee all of the Employee’s accrued and unused vacation through the date of termination; and (iii) following
submission of proper expense reports by the Employee, the Company shall reimburse the Employee for all expenses reasonably and necessarily incurred by the Employee in connection with the business of the Company prior to the date of termination.
These payments shall be made promptly upon termination and within the period of time mandated by law. 
  
 (f) No Duplication of Benefits. The Employee shall only be entitled to receive benefits under either Section 4(a) or Section 4(b). In no event
shall the Employee receive benefits under both Section 4(a) and Section 4(b) of this Agreement. 
  
 5. Limitation on Payments. In the event that the benefits provided for in this Agreement or otherwise payable to the Employee (i) constitute
“parachute payments” within the meaning of Section 280 of the Code and (ii) but for this section 5, would-be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Employee’s benefits
hereunder shall be either 
  
 (a) delivered in full, or

  
 (b) delivered as to such lesser extent which would result in
no portion of such severance benefits being subject to the Excise Tax, 
  
 whichever of the foregoing amounts, taking into account the applicable federal, state and local income and employment taxes and the Excise Tax, results in the receipt by the Employee on an after-tax basis, of the greatest amount of
severance benefits notwithstanding that all or some portion of such benefits may be taxable under the Excise Tax. Unless the Company and the Employee otherwise agree in writing, any determination required under this Section 5 shall be made in
writing in good faith by the accounting firm serving as the Company’s independent public accountants immediately prior to the Change of Control (the “Accountants”). For purposes of making the calculations required by this Section 5,
the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of the Code. The Company and the Employee shall furnish to the
Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations
contemplated by this Section 5. 
  
 6. Successors.

  
 (a) Company’s Successors. Any successor to the
Company (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the Company’s obligations under this
Agreement and agree expressly to perform the Company’s obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes
under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described in this subsection (a) or which becomes bound by the terms of
this Agreement by operation of law. 
  
 (b) Employee’s
Successors. Without the written consent of the Company, the Employee shall not assign or transfer this Agreement or any right or obligation under this Agreement 
  

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 to any other person or entity. Notwithstanding the foregoing, the terms of this Agreement and all rights of the Employee
hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
  
 7. Notices. 
  
 (a) General. Notices and all other communications contemplated by
this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of the Employee, mailed notices
shall be addressed to him at the home address that he most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the
attention of its Secretary. 
  
 (b) Notice of Termination.
Any termination by the Company for Cause or by the Employee as a result of a voluntary resignation or an Involuntary Termination shall be communicated by a notice of termination to the other party hereto given in accordance with this Section. Such
notice shall indicate the specific termination provision in this Agreement relied upon, shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated. The failure by the
Employee to include in the notice any fact or circumstance which contributes to a showing of Involuntary Termination shall not waive any right of the Employee hereunder or preclude the Employee from asserting such fact or circumstance in enforcing
his rights hereunder. 
  
 8. Execution of Release Agreement
upon Termination. As a condition of entering into this Agreement and receiving the benefits under Section 4, the Employee agrees to execute and not revoke a release of claims agreement substantially in the form attached hereto as Exhibit
A upon the termination of his employment with the Company. 
  
 9. Arbitration. 
  
 (a) Except as provided in
Section 9(d) below, any dispute or controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof, shall be settled by binding arbitration to
be held in Palo Alto, California, in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association (the “Rules”). The arbitrator may grant injunctions or other relief in
such dispute or controversy. The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. 
  
 (b) The arbitrator(s) shall apply California law to the merits of any dispute
or claim, without reference to conflicts of law rules. The arbitration proceedings shall be governed by federal arbitration law and by the Rules, without reference to state arbitration law. The Employee hereby consents to the personal jurisdiction
of the state and federal courts located in California for any action or proceeding arising from or relating to this Agreement or relating to any arbitration in which the parties are participants. 
  

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 (c) The Employee understands that nothing in this Section modifies the Employee’s at-will employment
status. Either the Employee or the Company can terminate the employment relationship at any time, with or without cause. 
  
 (d) THE EMPLOYEE HAS READ AND UNDERSTANDS THIS SECTION, WHICH DISCUSSES ARBITRATION. THE EMPLOYEE UNDERSTANDS THAT SUBMITTING ANY CLAIMS ARISING OUT OF,
RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO BINDING ARBITRATION TO THE EXTENT PERMITTED BY LAW, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER
OF THE EMPLOYEE’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, THE FOLLOWING CLAIMS: 
  
 (i) ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH OF
CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL
INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION. 
  
 (ii) ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE CIVIL RIGHTS ACT OF 1991, THE AGE DISCRIMINATION IN
EMPLOYMENT ACT OF 1967, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, AND LABOR CODE SECTION 201, et seq; 
  
 (iii) ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND REGULATIONS
RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION. 
  
 10.
Miscellaneous Provisions. 
  
 (a) Mitigation. The
Employee shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor shall any such payment be reduced by any earnings that the Employee may receive from any other source. However, the Employee shall not be
entitled to receive the health coverage and benefits contemplated by this Agreement in the event that the Employee receives similar health coverage and benefits as a result of new employment. 
  
 (b) Waiver. No provision of this Agreement may be modified, waived or
discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Company (other than the Employee). No waiver by either party of any breach of, or of compliance with, any
condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
  

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 (c) Integration. This Agreement represents the entire agreement and understanding between the
parties with respect to the subject matter herein and supersedes all prior or contemporaneous agreements, offer letters, resolutions of the Board, understandings and arrangements, whether written or oral, regarding the same. 
  
 (d) Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the internal substantive laws, but not the conflicts of law rules, of the State of California. 
  
 (e) Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force and effect. 
  
 (f) Employment Taxes. All payments made pursuant to this Agreement shall be subject to withholding of applicable income and employment taxes. 
  
 (g) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all
of which together will constitute one and the same instrument. 
  
 [Remainder of Page Left Blank Intentionally] 
  

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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its
duly authorized officer, as of the day and year first above written. 
  

					
	 COMPANY:
	 	 PINNACLE SYSTEMS, INC.

			
	 	 	 By:
	 	 /s/ Patti S. Hart

	 	 	 	 	 Patti S. Hart

	 	 	 	 	 Chairman and Chief Executive Officer

		
	 EMPLOYEE:
	 	 /s/ Warren Allgyer

	 	 	 Warren Allgyer

 EXHIBIT A 
  
 FORM RELEASE OF CLAIMS AGREEMENT 
  
 This Release of Claims Agreement (this “Agreement”) is made and entered into by and between Pinnacle Systems, Inc.
(the “Company”) and Warren Allgyer (the “Employee”). 
  
 WHEREAS, the Employee was employed by the Company; and 
  
 WHEREAS, the Company (or the Company’s predecessor) and the Employee have entered into a Change of Control Severance Agreement effective as of November 8, 2004 (the “Severance Agreement”). 

 
 NOW THEREFORE, in consideration of the mutual promises made herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Employee (collectively referred to as the “Parties”) desiring to be legally bound do hereby agree as follows:

  
 1. Termination. The Employee’s employment with
the Company terminated on                 , 20        . 
  
 2. Consideration. Subject to and in consideration of the
Employee’s release of claims as provided herein, the Company has agreed to pay the Employee certain benefits and the Employee has agreed to provide certain benefits to the Company, both as set forth in the Severance Agreement. 
  
 3. Payment of Salary. The Employee acknowledges and represents that
the Company has paid all salary, wages, bonuses, accrued vacation, commissions and any and all other benefits due to the Employee. 
  
 4. Release of Claims. The Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to the
Employee by the Company. The Employee, on his own behalf and his respective heirs, family members, executors and assigns, hereby fully and forever releases the Company and its past, present and future officers, agents, directors, employees,
investors, shareholders, administrators, affiliates, divisions, subsidiaries, parents, predecessor and successor corporations, and assigns, from, and agrees not to sue or otherwise institute or cause to be instituted any legal or administrative
proceedings concerning any claim, duty, obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that he may possess arising from any omissions, acts or facts that have occurred
up until and including the Effective Date (as defined below) of this Agreement including, without limitation: 
  
 (a) any and all claims relating to or arising from the Employee’s employment relationship with the Company and the termination of that relationship;

 (b) any and all claims relating to, or arising from, the Employee’s right to purchase, or actual
purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law and securities fraud under any state or federal law;

  
 (c) any and all claims for wrongful discharge of employment,
termination in violation of public policy, discrimination, breach of contract (both express and implied), breach of a covenant of good faith and fair dealing (both express and implied), promissory estoppel, negligent or intentional infliction of
emotional distress, negligent or intentional misrepresentation, negligent or intentional interference with contract or prospective economic advantage, unfair business practices, defamation, libel, slander, negligence, personal injury, assault,
battery, invasion of privacy, false imprisonment and conversion; 
  
 (d) any and all claims for violation of any federal, state or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, the
Americans with Disabilities Act of 1990, the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974, The Worker Adjustment and Retraining Notification Act, the California Fair Employment and Housing Act, and Labor Code Section
201, et seq. and Section 970, et seq. and all amendments to each such Act as well as the regulations issued thereunder; 
  
 (e) any and all claims for violation of the federal or any state constitution; 
  
 (f) any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;
and 
  
 (g) any and all claims for attorneys’ fees and costs.

  
 The Employee agrees that the release set forth in this Section
4 shall be and remain in effect in all respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement. 
  
 5. Acknowledgment of Waiver of Claims under ADEA. The Employee acknowledges that he is waiving and releasing any
rights he may have under the Age Discrimination in Employment Act of 1967 (“ADEA”) and that this waiver and release is knowing and voluntary. The Employee and the Company agree that this waiver and release does not apply to any rights or
claims that may arise under the ADEA after the Effective Date of this Agreement. The Employee acknowledges that the consideration given for this waiver and release agreement is in addition to anything of value to which the Employee was already
entitled. The Employee further acknowledges that he has been advised by this writing that (a) he should consult with an attorney to executing this Agreement; (b) he has at least twenty-one (21) days within which to consider this Agreement; (c) he
has seven (7) days following the execution of this Agreement by the Parties to revoke the Agreement; and (d) this Agreement shall not be effective until the revocation period has expired. Any revocation should be in writing and delivered to the
Company by the close of business on the seventh (7th) day from the date that the Employee signs this Agreement.

  

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 6. Civil Code Section 1542. The Employee represents that he is not aware of any claims against the
Company other than the claims that are released by this Agreement. The Employee acknowledges that he has been advised by legal counsel and is familiar with the provisions of California Civil Code Section 1542, which provides as follows: 

 
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
  
 The Employee, being aware of said code section, agrees to expressly waive any rights he may have thereunder, as well as
under any other statute or common law principles of similar effect. 
  
 7. No Pending or Future Lawsuits. The Employee represents that he has no lawsuits, claims or actions pending in his name, or on behalf of any other person or entity, against the Company or any other person or entity referred to
herein. The Employee also represents that he does not intend to bring any claims on his own behalf or on behalf of any other person or entity against the Company or any other person or entity referred to herein. 
  
 8. Confidentiality. The Employee agrees to use his best efforts to
maintain in confidence the existence of this Agreement, the contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as “Release Information”). The Employee agrees to take every
reasonable precaution to prevent disclosure of any Release Information to third parties and agrees that there will be no publicity, directly or indirectly, concerning any Release Information. The Employee agrees to take every precaution to disclose
Release Information only to those attorneys, accountants, governmental entities and family members who have a reasonable need to know of such Release Information. 
  
 9. No Cooperation. The Employee agrees he will not act in any manner that might damage the business of the Company.
The Employee agrees that he will not counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges or complaints by any third party against the Company and/or any
officer, director, employee, agent, representative, shareholder or attorney of the Company, unless under a subpoena or other court order to do so. 
  
 10. Costs. The Parties shall each bear their own costs, expert fees, attorneys’ fees and other fees incurred in connection with this
Agreement. 
  
 11. Authority. The Company represents and
warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement. The Employee represents and warrants that he has the capacity to
act on his own behalf and on behalf of all who might claim through him to bind them to the terms and conditions of this Agreement. 
  

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 12. No Representations. The Employee represents that he has had the opportunity to consult with an
attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. Neither party has relied upon any representations or statements made by the other party hereto which are not specifically set forth in this
Agreement. 
  
 13. Severability. In the event that any
provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision. 
  
 14. Entire Agreement. This Agreement and the Severance Agreement and
the agreements and plans referenced therein represent the entire agreement and understanding between the Company and the Employee concerning the Employee’s separation from the Company, and supersede and replace any and all prior agreements and
understandings concerning the Employee’s relationship with the Company and his compensation by the Company. This Agreement may only be amended in writing signed by the Employee and an executive officer of the Company. 
  
 15. Governing Law. This Agreement shall be governed by the internal
substantive laws, but not the choice of law rules, of the State of California. 
  
 16. Effective Date. This Agreement is effective eight (8) days after it has been signed by the Parties (the “Effective Date”). 
  
 17. Counterparts. This Agreement may be executed in counterparts, and each counterpart shall have the same force and
effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. 
  
 18. Voluntary Execution of Agreement. This Agreement is executed voluntarily and without any duress or undue influence on the part of behalf of the
Parties hereto, with the full intent of releasing all claims. The Parties acknowledge that: 
  
 (a) They have read this Agreement; 
  
 (b) They have been represented in the preparation, negotiation and execution of this Agreement by legal counsel of their own choice or that they have voluntarily declined to seek such counsel; 
  
 (c) They understand the terms and consequences of this Agreement and of the
releases it contains; and 
  
 (d) They are fully aware of the
legal and binding effect of this Agreement. 
  

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 IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

  

			
	 PINNACLE SYSTEMS, INC.

		
	 By:
	 	  

	 Title:
	 	  

	 Date:
	 	  

	
	 EMPLOYEE

	
	  

	 Warren Allgyer
  

	 Date:
	 	  

  

 A-5FORM OF STOCK OPTION AGREEMENT UNDER 1996 MANAGEMENT STOCK OPTION PLAN

 Exhibit 10.59 
  
 VIISAGE TECHNOLOGY, INC. 
 MANAGEMENT STOCK OPTION AGREEMENT 
 Management Stock Option Terms and Conditions 
 (Nonqualified) 
  
 1. Option Price. The price to be paid for each share of common stock of the Company, $.001 par value (each, a “Share”), issued upon
exercise of the whole or any part of this Option, is the Option Price per Share set forth on the stock option certificate to which these terms and conditions have been attached (the “Certificate”). 
  
 2. Exercise Schedule. This Option shall vest in accordance with the
Exercise Schedule set forth on the Certificate, subject to acceleration pursuant to Section 11 below, all as administered by the Committee described in Section 10 below in its sole discretion. The Option is exercisable only for Shares that have
vested as described above and may not be exercised as to any Shares after the Expiration Date set forth on the Certificate or after any earlier termination of the Option in accordance with this Agreement. 
  
 3. Method and Terms of Exercise. 
  
 (a) Notice of Exercise. To exercise this Option, the
Optionholder shall deliver written notice of exercise to the Treasurer of the Company specifying the number of shares with respect to which the Option is being exercised accompanied by payment of the Option Price for such Shares. 
  
 (b) Payment. Payment shall be made by (i) cash; (ii)
certified check, (iii) if permitted by vote of the Committee, and subject to Section 3(f) hereof, by delivery and assignment to the Company of Shares previously owned by the Optionholder for more than six months and having a value equal to the
Option Price; (iv) if permitted by vote of the Committee, and if permitted by applicable law, through the delivery of an assignment to the Company of a sufficient amount of the proceeds from the sale of unrestricted Shares acquired upon exercise to
pay for all of the Shares so acquired and any tax withholding obligation resulting from such exercise, and an authorization to the broker or selling agent to pay that amount to the Corporation; or (v) by a combination of (i), (ii), (iii) and (iv).
The value of the Company stock for purposes of the foregoing clause (iii) shall be its fair market value as of the date the Option is exercised, as determined in accordance with procedures to be established by the Committee. Optionholder’s
election to request payment in any manner other than that described in clause (i) or (ii) above shall be made in writing on or before the applicable exercise date and (subject to approval by the Committee) shall be irrevocable by the Optionholder,
unless any such method of exercise would result in a loss of exemption under or violate Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any successor provision, as applicable to the Company at the
time (“Rule 16b-3”). 
  
 (c) Reload
Options. Reload Options, as defined in the Plan, have been authorized with respect to this Option. Accordingly, (a) if any portion of this Option is permitted to be exercised under Subsection 3(b)(iii) above or if any withholding tax obligation
is permitted to be paid under the second sentence of Section 9 below, in either 
  

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 case at a time when the Optionholder is employed by the Company (or, to the extent applicable under
Section 8 below, by a Designated Employer as provided therein), and (b) if the Option Price or such withholding tax is paid by assignment and delivery of Shares that have been owned by the Optionholder for a period of more than six months, then
Reload Options for the Shares so assigned and delivered shall be issued as provided in and subject to the terms and conditions of the Plan. 
  
 (d) Delivery of Shares. Promptly following notice of exercise and payment, the Company will deliver to the Optionholder a
certificate representing the number of Shares with respect to which the Option has been exercised. 
  
 (e) Compliance and Registration. If said Shares are not at that time effectively registered under the Securities Act of 1933, as
amended, the Optionholder shall include with such notice a letter, in form and substance satisfactory to the Company, confirming that the Shares are being purchased for the Optionholder’s own account for investment and not with a view to
distribution. The issuance or delivery of any Shares hereunder may be postponed by the Committee for such period as may be required to comply with any applicable requirements under the federal securities laws, any applicable listing requirements of
the Nasdaq National Market or any national securities exchange or any requirements under any law or regulation applicable to the issuance or delivery of such Shares. The Company shall not be obligated to issue or deliver any such Shares if the
issuance or delivery thereof would constitute a violation of any provision of any law or of any applicable regulation of any governmental authority, the Nasdaq National Market or any national securities exchange; but the Company shall exercise its
reasonable efforts to cause the Shares that are the subject of the Option to be effectively registered on Form S-8 (or any successor form) under the Securities Act of 1933, as amended, and for so long as the Company shall be subject to the reporting
requirements of the Exchange Act, to exercise its reasonable efforts to keep such registration in effect. 
  
 (f) Withheld Shares — Rule 16b-3. Any election made by the Optionholder, if then subject to Section 16 of the Exchange Act, to
make payment of any portion of a tax withholding obligation with respect to any Option exercise by withholding or assignment of Shares or to make payment of any portion of an exercise price by assignment of Shares shall be subject to any
then-applicable requirements of Rule 16b-3 and other applicable rules under Section 16 of the Exchange Act. 
  
 4. Rights as a Stockholder or Employee. The Optionholder shall not have any rights in respect of Shares to which the Option has not been exercised
as provided above. The Optionholder shall not have any rights to continued employment by the Company or its affiliates by virtue of the issuance of this Option. 
  

5. Stock Dividends; Stock Splits; Recapitalization. In the event of a stock dividend, stock split or combination of shares, recapitalization or
other change in the Company’s capitalization, or other distribution with respect to holders of the Company’s common stock other than normal cash dividends, automatic adjustment shall be made in the number and kind of shares as to which the
then unexercised portion of the Option shall be exercisable, to the end that the proportionate interest of the Optionholder shall be maintained as before the occurrence of such 
  

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 event. Such adjustment shall be made without change in the total price applicable to the unexercised portion of the
Option and with a corresponding adjustment in the Option price per Share. 
  
 6. Merger; Sale of Assets; Dissolution. In the event of a change of the Shares resulting from a merger or similar reorganization as to which the Company is the surviving corporation, or the formation of a
holding company, the Committee will adjust the number and kind of shares subject to this Option and the exercise price hereunder to prevent substantial dilution or enlargement of the rights available or granted hereunder. If the Company shall be a
party to a merger or a similar reorganization after which the Company will not survive, or if there will be a sale of substantially all the Common Stock of the Company or a sale of all or substantially all of the assets of the Company, the
Committee, in its discretion, may declare (a) that the Option shall terminate on a date not less than 30 days after the date notice of such termination is given to the holder hereof unless theretofore exercised (but if the Committee determines that
30 days’ notice would be disruptive to the reorganization transaction with respect to which such notice is given, then the Committee may give such shorter notice as the circumstances reasonably require, but in no event less than 10 days), (b)
that the Option shall pertain to and apply, with appropriate adjustments as determined by the Committee, to the securities of the surviving or resulting corporation to which a holder of the number of Shares subject to this Option would have been
entitled, or (c) that the Company or the surviving or resulting corporation will purchase the Option from the holder at a price per Share as to which the Option is outstanding, unexercised and vested equal to the difference between the price at
which Shares of the Company are to be purchased or exchanged in the transaction and the Option Price. 
  
 7. Option Not Transferable. This Option is not transferable by the Optionholder otherwise than by will or the laws of descent and distribution, and
is exercisable, during the Optionholder’s lifetime, only by the Optionholder. Notwithstanding the foregoing (but if Optionholder then is subject to Section 16 of the Exchange Act, only to the extent consistent with the requirements of Rule
16b-3 or other rules under Section 16 of the Exchange Act), this Option may be transferred pursuant to an order that would constitute a qualified domestic relations order as defined in the Internal Revenue Code of 1986, as amended (the
“Code”), or Title I of the Employee Retirement Income Security Act or the rules thereunder. 
  
 8. Exercise of Option After Termination of Employment. If the Optionholder’s employment with (a) the Company or (b) a corporation (or parent
or subsidiary corporation of such corporation) issuing or assuming a stock option in a transaction to which section 424(a) of the Code applies (a “Designated Employer”), is terminated for any reason, then the Option may be exercised for a
period of ninety days (or in the case of death or disability, for a period of one year) after such termination of employment, but only to the extent that the Option shall have been vested in accordance with the terms and conditions hereof on the
date of such termination, and upon the expiration of such ninety-day period following termination (or in the case of termination by death or disability, upon the expiration of such one-year period following termination), the Option immediately shall
expire and may not be exercised. Any portion of the Option that is not vested on the date when employment with the Company or a Designated Employer terminates immediately shall expire on the date of employment termination and may not be exercised.
Further, no rights under the Option may be exercised after the Expiration Date. 
  

 3 

 9. Payment of Taxes. The Optionholder shall pay to the Company, or make provision satisfactory to
the Company for payment, of all applicable federal, state and local income and employment act withholding obligations. Such tax obligations may be paid in whole or in part, to the extent permitted under Section 3(f) hereof and if the Committee so
approves: (i) by electing to have Shares withheld having a value equal to the amount to be so satisfied (but not in an amount exceeding the minimum statutory withholding requirement applicable to such exercise), or (ii) by assigning and delivering
to the Company Shares previously owned by the Optionholder and having a value equal to the amount to be so satisfied (but unless such Shares have been owned by the Optionholder for more than six months, not in an amount exceeding the minimum
statutory withholding requirement applicable to such exercise). The value of Shares to be withheld or assigned shall be determined based on the fair market value of the Shares on the date the amount of tax to be withheld is to be determined. The
Company, its parent and subsidiaries may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the Optionholder. 
  
 10. Administration. The Option is issued and this Agreement has been made pursuant and subject to the terms and
conditions of the Company’s 1996 Management Stock Option Plan, as amended from time to time. The Option and this Agreement shall be administered by a committee of two or more members of the Board of Directors of the Company appointed by said
Board (the “Committee”) pursuant to the Plan. The Committee shall have full power to construe and interpret the Option, this Agreement (which includes the Certificate and these Management Stock Option Terms and Conditions) and the Plan,
and to establish, amend and rescind rules and regulations for its and their administration. Any decisions of the Committee made with respect to any of the foregoing shall be final and binding on the Company, the Optionholder and all other persons.

  
 11. Acceleration. Notwithstanding anything to the
contrary herein, immediately upon the occurrence of a “Change in Control” (as defined below), the vesting of all Shares subject to the Option shall be fully accelerated such that the Option shall then be exercisable as to all Shares. For
purposes hereof, “Change in Control” shall mean and shall be deemed to occur if any of the following occurs: (i) any Person is or becomes the beneficial owner of securities of the Company representing more than 50% of the combined
voting power of the Company’s then outstanding voting securities; or (ii) individuals comprising the Incumbent Board, or individuals approved by a majority of the Incumbent Board, cease for any reason to constitute at least a majority of the
Board of Directors of the Company; or (iii) approval by the stockholders of the Company of a merger or consolidation of the Company, other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent more than 50% of the combined voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation or (B) a merger or consolidation effected to
implement a recapitalization of the Company in which no Person acquires more than 50% of the Company’s then outstanding voting securities; or (iv) approval by the stockholders of the Company of (A) a complete or substantial liquidation or
dissolution of the Company, or (B) the sale or other disposition of all or substantially all of the assets of the 
  

 4 

 Company. An underwritten public offering of common stock of the Company, including the completion of any sale of common
stock pursuant to an underwriter’s over-allotment option, and any offering to employees pursuant to a registration statement on Form S-8 or other similar offering shall not be counted toward a Change in Control for purposes of this Agreement.
For purposes of the foregoing: “Incumbent Board” shall mean those individuals who comprised the Board of Directors of the Company on the date hereof; and “Person” shall have the meaning used in Sections 13(d)(3) or 14(d)(2) of
the Exchange Act, provided that, it shall not include Denis K. Berube, Joanna T. Lau, Lau Acquisition Corp., the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any entity owned by
the stockholders of Lau Acquisition Corp. 
  
 12. Option
Nonqualified. The Option shall be a nonstatutory option which is not intended to meet the requirements of Section 422 of the Code. 
  
 13. Surrender and Notation of Option. If and when the Option is exercised in its entirety, this Agreement and the Certificate shall be surrendered
to the Company for cancellation. If and as the Option shall be exercised in part, or any change or adjustment shall be made to the Option as contemplated under this Agreement, this Agreement and the Certificate shall be delivered by the Optionholder
to the Company for the purpose of making appropriate notation thereon, or of otherwise reflecting the partial exercise or the change or adjustment hereto. 
  

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