Document:

Change of Control Severance Agreement dated January 30, 2003, Pinnacle Systems

 
EXHIBIT 10.67

 
EXECUTIVE FORM 
 
PINNACLE SYSTEMS, INC. 
 
CHANGE OF CONTROL SEVERANCE AGREEMENT 
 
This Change of Control Severance Agreement (the
“Agreement”) is made and entered into effective as of January 30, 2003 (the “Effective Date”), by and between _____________________ (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 following 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 Financial Officer of the Company remains as the senior financial 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 

 

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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.

 
2.    Term of
Agreement.    This Agreement shall terminate upon the date that all obligations of the parties hereto under this Agreement have been satisfied or, if earlier, on the date in excess of three months- prior to a Change of
Control, that the Employee is no longer employed by the Company. 
 
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 Benefits. 
 
(a)    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 months prior to or within twelve (12) months after a Change of Control, then 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 prior to the Change of Control (the “Options”) 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 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, other 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 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 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 

 

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Section 4980B(g)(1) of the Internal Revenue Code of 1986, as amended; 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. 
 
(b)    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. 
 
(c)    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 as a result of an Involuntary Termination within twelve (12) months of a Change of Control, 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. 
 
(d)    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 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. 
 
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 280G of the Internal Revenue Code of 1986, as amended (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 

 

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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
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 

 

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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. 
 
(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 

 

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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. 
 
(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. 
 

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(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/    J. KIM
FENNELL        

	 	 	 	 	 	 	 Title:
	 	 Chief Executive Officer

	
	 EMPLOYEE:
	 	 	 	  

 

 

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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 Arthur Chadwick (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 _______________, 2003 (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 prior 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.

 

A-3 

 
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 or 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. 
 

A-4 

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

	 PINNACLE SYSTEMS, INC.

	
	 By:
	 	  

	 Title:
	 	  

	 Date:
	 	  

 
 

	 EMPLOYEE

	
	

	 
	
	 Date:
	 	  

 

A-5 

Schedule to Exhibit 10.67—Executive Form of Change in Control Severance
Agreement 
 
This form of agreement was entered into and
executed by Pinnacle Systems, Inc. and each of Georg Blinn, Ajay Chopra, William Loesch and Bob Wilson. 
 

A-6Lease Agreement dated January 31, 2001

 
EXHIBIT 10.68

 
ENGLISH SUMMARY OF LEASE GRANTED TO
STEINBERG MEDIA TECHNOLOGIES GMBH (FORMERLY STEINBERG MEDIA TECHNOLOGIES AG) BY BETEILIGUNGSGESELLSCHAFT HÖLTIGBAUM AG 
 
Duration of lease 
 
The lease, entered into on 31 January 2001, is between Firma Steinberg Media Technologies GmbH (as lessee) and Beteiligungsgesellschaft Höltigbaum AG
(as lessor). The duration of the lease is for a fixed period from 30 June 2001 to 30 June 2011 and notice is not required. There is also the option to extend the lease to 30 June 2016 (and thereafter until 30 June 2021 and 30 June 2026 if desired)
but this must be communicated in writing to the lessor six months before the lease expires. 
 
Scope of lease 
 
The lease applies to the letting of offices and store-room facilities located at Neuer Höltigbaum 22-32, 22143 Hamburg, Germany. The office surface area is about 4.470 m2 and the store-room surface area is about 1.200 m2. In addition, as both parties agreed that the need for more surface space may arise during the term of the lease, the lessee has the right to rent further areas in the same building if he so chooses, according to the
conditions set forth in the original lease. 
 
Any change in the
type of work or any expansion of the business for which the offices and store room facilities have been leased requires written approval by the lessor. The lessor does not grant any competition or retail protection to the lessee and is only liable
for wrong acts carried out intentionally and gross negligence. The lessor does not assume any liability for the grant of official authorisation needed to carry out the lessee’s business, so long as the reasons for a denial of such authorisation
is not based upon the condition or the location of the leased object. Claims of the lessee based on §538 German Civil Code are precluded. The lessee is solely responsible for the costs which arise due to fulfilling the legal requirements needed
to carry on its trade. 
 
Costs 
 
According to the revised calculations made on 10 September 2001, the lessee
has to pay the lessor the following amounts of rent (starting from 1 October 2001) in three different phases: 
 

	 	(i)	 	From 30 June 2001 (Phase 1) - a total amount of Euros 58.096,12 

 

	 	(ii)	 	From 1 January 2002 (Phase 2) - a total amount of Euros 62.008,53 

 

	 	(iii)	 	From 1 January 2003 (Phase 3) - a total amount of Euros 69.797,12 

 
The lessee was not required to pay rent for the first 3 months, but during the first 5 years of the lease (up to 30 June
2006) the rental rates will stay the same. After this, the rent may change if the price index for the cost of living of all private households rises or falls by more than 5 % (the basis for this being the state of the price index on 30 June 2001).
This will only be allowed, however, if the lease is fixed for a period of at least 10 years after the initial 5 years and the State Central Bank (Landeszentralbank) in Hamburg approves of this. If this is the case, the rent will change in keeping
with the 5 % from the beginning of the next calendar month after which the agreed percentage has been exceeded. In any event, the cap will be the payment of rent which 
 

1 

 
covers the costs that the
lessor has incurred as a result of complying with official conditions laid down when purchasing plots of land. 
 
If the running costs increase or new ones arise within the framework of the normal government control of the company, the lessor is entitled to increase the advance payments due to him from the lessee.

 
The rent is due in advance on a monthly basis, at the latest on
the third working day in the month. Additional payments of bills for operational and heating costs are to be paid 14 days after the bill of costs has been presented. The lessee must also authorise the lessor to deduct all such payments directly from
the lessee’s bank account. 
 
If the lessee falls into arrears
then the lessor is allowed to claim the statutory interest payable on arrears from him, as well as charge him Euros 2,56 (5 DM) for every time he has to give a written reminder. The lessor also reserves the right to charge him for any further losses
that may arise as a result of falling into arrears. 
 
The security
offered on the rent by the lessee should be made available immediately in case it needs to be cashed at any point and the lessee is not allowed to refuse this. The lessee has to pay 3 months net rent exclusive of heating to the lessor as a deposit
and this will also count as security for the payment of rent. At the end of the lease the lessor will return this deposit to the lessee and make sure that the guarantor is informed of this so that no further financial demands in relation to the
lease can be made on the lessee. 
 
Subletting 
 
The lessee is allowed to sublet the lease in whole or in part, and must
inform the lessor of this, who is then able to accept or reject this only if there is an important reason why the person wishing to sublet will not be suitable. If the lease is terminated at any point the lessee is entitled to be reimbursed by the
next lessee for his investment and the lessor has to try his best to make sure that these expenses are paid. 
 
General points 
 
A reduction in rent is not allowed in those cases which are beyond the control of the lessor (such as traffic diversions, road blocks and building works in the neighborhood) and if the commercial revenue of the rooms becomes less due
to a decline in the turnover and business. 
 
At the end of the
lease the lessor has the right to demand that the rooms return to their original state or he can keep the new furnishings that the lessee paid for. If this is the case, then the lessee is not allowed to take them away and is only allowed to receive
compensation for this if such permission has been established in writing. If the lessor chooses not to keep such furnishings, the lessee has to restore the rooms to their original state at his own expense. 
 
If there is more than one lessee or lessor at any stage then they will jointly
be bound by the obligations in the lease. 
 
The lease agreement is
governed by German law. 
 

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