Document:

2004 Employee Stock Purchase Plan

 EXHIBIT 10.69 
  
 PINNACLE SYSTEMS, INC. 
  
 2004 EMPLOYEE STOCK PURCHASE PLAN 
  
 The following constitute the provisions of the Employee Stock Purchase Plan of Pinnacle Systems, Inc. 
  
 1. Purpose. The purpose of the Plan is to provide employees of the
Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan”
under Section 423 of the Code. The provisions of the Plan, accordingly, shall be construed so as to extend and limit participation in a uniform and nondiscriminatory basis consistent with the requirements of Section 423. 
  
 2. Definitions. 
  
 (a) “Administrator” shall mean the Board or any Committee
designated by the Board to administer the Plan pursuant to Section 14. 
  
 (b) “Board” shall mean the Board of Directors of the Company. 
  
 (c) “Change of Control” shall mean the occurrence of any of the following events: 
  
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in
Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; or 
  
 (ii) The consummation of the sale or disposition by the Company of all or
substantially all of the Company’s assets; or 
  
 (iii) The
consummation of a merger or consolidation of the Company, with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company, or such surviving entity
or its parent outstanding immediately after such merger or consolidation. 
  
 (iv) A change in the composition of the Board, as a result of which fewer than a majority of the Directors are Incumbent Directors. “Incumbent Directors” shall mean Directors who either (A) are Directors of
the Company, as applicable, as of the date hereof, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of those Directors whose election or nomination was not in connection with any
transaction described in subsections (i), (ii) or (iii) or in connection with an actual or threatened proxy contest relating to the election of Directors of the Company. 

 (d) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 (e) “Committee” means a committee of the Board appointed by
the Board in accordance with Section 14 hereof. 
  
 (f)
“Common Stock” shall mean the common stock of the Company. 
  
 (g) “Company” shall mean Pinnacle Systems, Inc. 
  
 (h) “Compensation” shall mean all base straight time gross earnings, excluding commissions, payments for overtime, shift premium,
variable compensation, incentive payments, bonuses, and other cash compensation. 
  
 (i) “Designated Subsidiary” shall mean any Subsidiary selected by the Administrator as eligible to participate in the Plan. 
  
 (j) “Director” shall mean a member of the Board. 
  
 (k) “Eligible Employee” shall mean any individual who is a
common law employee of the Company or any Designated Subsidiary and whose customary employment with the Company or Designated Subsidiary is at least twenty (20) hours per week and more than five (5) months in any calendar year. For purposes of the
Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Company. Where the period of leave exceeds 90 days and the individual’s right to
reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on the 91st day of such leave. 
  

(l) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 (m) “Exercise Date” shall mean the first Trading Day on or
after May 1 and November 1 of each year. The first Exercise Date under the Plan shall be May 1, 2005. 
  
 (n) “Fair Market Value” shall mean, as of any date, the value of Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on any established stock exchange or a
national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or system on the date of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable; 
  
 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its
Fair Market Value shall be the mean of the closing bid and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable; or 
  

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 (iii) In the absence of an established market for the Common Stock, the Fair Market Value thereof shall
be determined in good faith by the Board. 
  
 (o)
“Offering Date” shall mean the first Trading Day of each Offering Period. 
  
 (p) “Offering Periods” shall mean the periods of approximately twenty-four (24) months during which an option granted pursuant to the Plan may be exercised, commencing on the first Trading Day on or
after May 1 and November 1 of each year and terminating on the May 1 and November 1 Offering Period commencement date approximately twenty-four months later; provided, however, that the first Offering Period under the Plan shall commence on the
first Trading Day on or after August 24, 2004 and end on the first Trading Day on or after November 1, 2006, and the second Offering Period under the Plan shall commence on the first Trading Day on or after May 1, 2005 and end on the first Trading
Day on or after May 1, 2007. The duration and timing of Offering Periods may be changed pursuant to Section 4 of this Plan. 
  
 (q) “Plan” shall mean this Employee Stock Purchase Plan. 
  
 (r) “Purchase Period” shall mean the approximately six (6) month period commencing on one Exercise Date and
ending with the next Exercise Date, except that the first Purchase Period of any Offering Period shall commence on the Offering Date and end with the next Exercise Date. 
  
 (s) “Purchase Price” shall mean 85% of the Fair Market Value of a share of Common Stock on the Offering
Date or on the Exercise Date, whichever is lower; provided however, that the Purchase Price may be adjusted by the Administrator pursuant to Section 20. 
  
 (t) “Subsidiary” shall mean a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the
Code. 
  
 (u) “Trading Day” shall mean a day on
which national stock exchanges and the Nasdaq System are open for trading. 
  
 3. Eligibility. 
  
 (a)
First Offering Period. Any individual who is enrolled in the Company’s 1994 Employee Stock Purchase Plan shall be automatically enrolled in the first Offering Period with payroll deductions commencing at the same rate as specified in
such individual’s most recent subscription agreement submitted to the Company. 
  
 (b) Subsequent Offering Periods. Any Eligible Employee on a given Offering Date shall be eligible to participate in the Plan. 
  
 (c) Limitations. Any provisions of the Plan to the contrary notwithstanding, no Eligible Employee shall be granted an
option under the Plan (i) to the extent that, immediately after the grant, such Eligible Employee (or any other person whose stock would be attributed to such 
  

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

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

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 (b) If the Administrator determines that, on a given Exercise Date, the number of shares with respect to
which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Offering Date of the applicable Offering Period, or (ii) the number of shares available for sale under the Plan
on such Exercise Date, the Administrator may in its sole discretion (x) provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such Offering Date or Exercise Date, as applicable, in as
uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and continue all Offering Periods then in effect, or
(y) provide that the Company shall make a pro rata allocation of the shares available for purchase on such Offering Date or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion
to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and terminate any or all Offering Periods then in effect pursuant to Section 20 hereof. The Company may make pro rata allocation of the shares
available on the Offering Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional shares for issuance under the Plan by the Company’s shareholders subsequent to such Offering
Date. 
  
 9. Delivery. As soon as reasonably practicable
after each Exercise Date on which a purchase of shares occurs, the Company shall arrange the delivery to each participant of the shares purchased upon exercise of his or her option in a form determined by the Administrator. 
  
 10. Withdrawal. 
  
 (a) A participant may withdraw all but not less than all the payroll
deductions credited to his or her account and not yet used to exercise his or her option under the Plan at any time by giving written notice to the Company in the form of Exhibit B to this Plan. All of the participant’s payroll
deductions credited to his or her account shall be paid to such participant promptly after receipt of notice of withdrawal and such participant’s option for the Offering Period shall be automatically terminated, and no further payroll
deductions for the purchase of shares shall be made for such Offering Period. If a participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the participant delivers
to the Company a new subscription agreement. 
  
 (b) A
participant’s withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the
termination of the Offering Period from which the participant withdraws. 
  
 11. Termination of Employment. In the event a participant ceases to be an Eligible Employee of the Company or any Designated Subsidiary, as applicable, his or her option automatically shall terminate on the
date of such Eligible Employee’s termination. Any payroll deductions credited to such participant’s account during the Offering Period but not yet used to purchase shares under the Plan shall be returned to such participant or, in the case
of his or her death, to the person or persons entitled thereto under Section 15 hereof, and such participant’s option shall be automatically terminated. 
  

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

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

  

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

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

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

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

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

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

  

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

  

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

  

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

  

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

  

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

 

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

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

  

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

  

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

  

	 NAME: (Please print)
	 	  

	 	 	(First)	  	(Middle)	  	(Last)
		
	  

	  	  

	 Relationship
	 	 	  	 	  	 	  	 
	  

	  	  

	 Percentage Benefit
	 	 	  	          (Address)	  	 	  	 
					
	 NAME: (please print)
	 	 	  	 	  	 	  	 
	

	 	 	(First)	  	(Middle)	  	(Last)
		
	  

	  	  

	 Relationship
	 	 	  	 	  	 	  	 
		
	  

	  	  

	 Percentage of Benefit
	 	 	  	          (Address)	  	 	  	 

  

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	 Employee’s Social
 Security Number:
	 	  

		
	 Employee’s Address:
	 	  

	 	 	  

	 	 	  

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

		
	 Dated:                                     
                               
	 	  

	 	 	 Signature of Employee

		
	 	 	  

	 	 	 Spouse’s Signature (If beneficiary other than spouse)

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

	 Name and Address of Participant:

	
	  

	  

	  

	
	 Signature:

	  

	
	 Date:Transition Employment Agreement dated as of November 1, 2003

 EXHIBIT 10.70 
  
 PINNACLE SYSTEMS, INC. 
  
 TRANSITION EMPLOYMENT AGREEMENT 
  
 This Agreement (the “Agreement”) is made and entered into effective as of November 1, 2003 (the “Start Date”), by and between Pinnacle
Systems, Inc., a California corporation (the ”Company”), and J. Kim Fennell (the “Employee”). 
  
 WHEREAS, the Company and the Employee entered into an Offer Letter and Employment Contract dated as of June 18, 2002 (the “Offer Letter”);

  
 WHEREAS, the Employee was employed by the Company as its
President and Chief Executive Officer and served as a member of the Company’s Board of Directors; 
  
 WHEREAS, the Employee has resigned from his position as the President and Chief Executive Officer and his director position with the Company effective
October 31, 2003; 
  
 WHEREAS, the Company and the Employee
entered into a Change of Control Severance Agreement dated as of January 30, 2003 (the “Severance Agreement”); 
  
 WHEREAS, the Company and the Employee have entered into certain written stock option agreements to purchase common stock of the Company pursuant to the
Company’s 1996 Stock Option Plan and 1996 Supplemental Stock Option Plan (the “Stock Agreements”); 
  
 WHEREAS, the Company and the Employee entered into an Employment, Confidential Information and Invention Assignment Agreement (the “Confidentiality
Agreement”); 
  
 WHEREAS, the Company and the Employee desire
to enter into this Agreement which supersedes and replaces the Offer Letter and the Severance Agreement; 
  
 NOW THEREFORE, in consideration of the mutual promises made herein, the Company and the Employee (collectively referred to as the “Parties”)
hereby agree as follows: 
  
 1. Resignation. The Employee
hereby resigns from his position as the President and Chief Executive Officer of the Company, which resignation shall be effective October 31, 2003. 
  
 2. Employment. 
  
 (a) Employment Period; Position and Duties. The employment period shall begin upon the Start Date and shall continue for one (1)
year thereafter (the “Employment Period”), unless sooner terminated pursuant to the provisions of this Agreement. As of the Start Date, the Employee shall be employed by the Company, reporting to the Company’s Board of Directors (the
“Board”), and shall assume and discharge such responsibilities as may be requested and deemed necessary and appropriate by such officers. The Employee shall perform his duties faithfully and to the best of his ability. The Employee may
serve on the boards of directors of other entities and engage in other 

 business activities outside of his employment with the Company, so long as such activities do not
materially interfere with his duties to the Company. 
  
 (b) At-Will Employment. The Parties agree that the Employee’s employment with the Company will be “at-will” employment and may be terminated at any time with or without Cause (as defined below) or notice. No provision
of this Agreement shall be construed as conferring upon the Employee a right to continue as an employee of the Company. 
  
 (c) Early Termination. The Company may terminate the Employee’s employment prior to the end of the Employment Period. If the
Company terminates the Employee’s employment prior to the end of the Employment Period for any reason other than for Cause, as defined below, the provisions of paragraph 10 shall apply. The Employee may terminate his employment prior to the end
of the Employment Period by giving the Company five (5) days’ advance written notice. If the Employee terminates his employment prior to the end of the Employment Period, the provisions of paragraph 10 shall apply. 
  
 (d) Cause. The Company may terminate the
Employee’s employment at any time for “Cause.” For all purposes under this Agreement, “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. 
  
 3. Compensation. 
  
 (a) Base
Salary. For all services to be rendered by the Employee pursuant to this Agreement, the Company agrees to pay the Employee during the Employment Period a base salary at an annual rate of $395,000, less all applicable withholding taxes (the
“Base Salary”). The Base Salary shall be paid in periodic installments in accordance with the Company’s regular payroll practices. 
  
 (b) Performance Bonus. Within ten (10) days following the Effective Date of this Agreement, the Company agrees to pay the Employee
the lump sum amount of $316,000, less all applicable withholding taxes, which represents one hundred percent (100%) of the Employee’s fiscal 2004 target performance bonus (the “Bonus”). The Bonus shall be paid in accordance with the
Company’s regular payroll practices. 
  
 (c)
Stock. Fifty percent (50%) of the unvested shares subject to all outstanding Company options held by the Employee as of October 31, 2003 (the “Options”) shall accelerate and become vested and exercisable on the Effective Date of
this Agreement. Such accelerated Options shall remain exercisable until three (3) months after October 31, 2003. After October 31, 2003, none of the remaining unvested shares subject to the Options shall vest. Except as otherwise provided in this
Agreement, the Options shall continue to be subject to the terms and conditions of the Company’s applicable stock option plans and the Stock Agreements. 
  

 -2- 

 4. Employee Benefits. During the Employment Period, the Employee shall be entitled to participate
in employee benefit plans or programs of the Company, subject to the rules and regulations applicable thereto. The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time. 
  
 5. Expenses. The Company shall reimburse the Employee for reasonable
and necessary travel, business or other expenses incurred by the Employee in the furtherance of or in connection with the performance of the Employee’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in
effect from time to time. 
  
 6. Payment of Salary. The
Employee acknowledges and represents that except as provided in Section 2 and 3 of this Agreement, the Company has paid all salary, wages, bonuses, accrued vacation, commissions and any and all other salary and benefits due to the Employee.

  
 7. 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 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 
  

 -3- 

 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 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. 
  
 8. Acknowledgement 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 up to twenty-one (21) days within which to consider this Agreement; 
  
 (c) he has seven (7) days following his execution of this
Agreement to revoke this Agreement; 
  
 (d) this
Agreement shall not be effective until the revocation period has expired; and, 
  
 (e) nothing in this Agreement prevents or precludes the Employee from challenging or seeking a determination in good faith of the validity
of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs for doing so, unless specifically authorized by federal law. 
  
 9. 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. 
  
  

 -4- 

 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. 
  
 10. Severance Payment. In the event the Employee’s employment terminates prior to the end of the Employment Period other than for Cause (the “Termination Date”), and subject to the Employee
executing a release of claims agreement substantially in the form attached hereto as Exhibit A (the “Release of Claims”), the Employee shall be entitled to receive severance and other benefits as follows: 
  
 (a) Cash. The Employee shall be entitled to a lump
sum payment equal to the Base Salary, less all applicable withholding taxes, that would otherwise be payable from the Termination Date until the end of the Employment Period (the “Severance Payment”). The Severance Payment, if applicable,
shall be paid no later than fifteen (15) days after the date on which the Release of Claims is signed by the Parties. 
  
 (b) Benefits. The Employee’s health insurance benefits shall cease on the Termination Date, subject to the Employee’s
right to continue his health insurance under COBRA. If the Employee timely elects COBRA, and provided that the Employee constitutes a qualified beneficiary, as defined in Section 4980B(g)(1) of the Internal Revenue Code of 1986, as amended, the
Company shall reimburse the Employee for health care coverage for the Employee and the Employee’s dependents until November 1, 2004, or until the Employee has secured other employment, whichever occurs first. The Employee’s participation
in all other benefits and incidents of employment shall cease on the Termination Date. The Employee shall cease accruing employee benefits, including, but not limited to, vacation time and paid time off, as of the Termination Date. 
  
 11. Successors. 
  
 (a) Company’s Successors. The Company shall
require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform it if no such succession had taken place. In the event the Company obtains such assumption agreement prior to the effectiveness of any such succession, the Employee may elect to
receive the remainder of the Base Salary to which he is entitled pursuant to Section 3(a) hereof as a lump sum payment. Such payment, if applicable, shall be paid no later than fifteen (15) days after the effective date of such succession. Failure
of the Company to obtain such assumption agreement prior to the effectiveness of any such succession shall entitle the Employee to the benefits described in paragraph 10 of this Agreement, subject to the terms and conditions therein. 
  
 (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. 
  

 -5- 

 12. Waiver. Failure or delay on the part of either party hereto to enforce any right, power, or
privilege hereunder shall not be deemed to constitute a waiver thereof. Additionally, a waiver by either party or a breach of any promise hereof by the other party shall not operate as or be construed to constitute a waiver of any subsequent waiver
by such other party. 
  
 13. Severability. Whenever
possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained herein. 
  
 14. Arbitration. 
  
 (a) Arbitration. In consideration of the Employee’s employment with the “Company”, its promise to arbitrate all employment-related disputes and the Employee’s receipt of the compensation,
pay raises and other benefits paid to the Employee by the Company, at present and in the future. The Employee agrees that any and all controversies, claims, or disputes with anyone (including the Company and any employee, officer, director,
shareholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from the Employee’s employment with the Company or the termination of the Employee’s employment with the Company,
including any breach of this Agreement, shall be subject to binding arbitration under the arbitration rules set forth in California Code of Civil Procedure Section 1280 through 1294.2, including Section 1283.05 (the “Rules”) and pursuant
to California law. Disputes which the Employee agrees to arbitrate, and thereby agrees to waive any right to a trial by jury, include any statutory claims under State or Federal law, including, but not limited to, claims under Title VII of the Civil
Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the California Fair Employment and Housing Act, the California Labor Code, claims of
harassment, discrimination or wrongful termination and any statutory claims. The Employee further understands that this Agreement to arbitrate also applies to any disputes that the Company may have with employee. 
  
 (b) Procedure. The Employee agrees that any
arbitration will be administered by the American Arbitration Association (“AAA”) and that a neutral arbitrator will be selected in a manner consistent with its national rules for the resolution of employment disputes. The arbitration
proceedings will allow for discovery according to the rules set forth in the National Rules for the Resolution of Employment Disputes. The Employee agrees that the arbitrator shall have the power to decide any motions brought by any party to
the arbitration, including motions for summary judgment and/or adjudication and motions to dismiss and demurrers, prior to any arbitration hearing. The Employee agrees that the arbitrator shall issue a written decision on the merits. The Employee
also agrees that the arbitrator shall have the power to award any remedies, including attorneys’ fees and costs, available under applicable law. The Employee understands the Company will pay for any administrative or hearing fees charged by the
arbitrator or AAA except that the Employee shall pay the first $200.00 of any filing fees associated with any arbitration the Employee initiates. The Employee agrees that the arbitrator shall administer and conduct any arbitration in a manner
consistent with the rules and that to the extent that the AAA’s National Rules for the Resolution of Employment Disputes conflict with the rules, the rules shall take precedence. 
  

 -6- 

 (c) Remedy. Except as provided by the rules, arbitration shall be the sole,
exclusive and final remedy for any dispute between the Employee and the Company. Accordingly, except as provided for by the rules, neither the Employee nor the Company will be permitted to pursue court action regarding claims that are subject to
arbitration. Notwithstanding, the arbitrator will not have the authority to disregard or refuse to enforce any lawful Company policy, and the arbitrator shall not order or require the Company to adopt a policy not otherwise required by law which the
Company has not adopted. 
  
 (d) Availability
of injunctive relief. In accordance with Rule 1281.8 of the California Code of Civil Procedure, the Employee agrees that any party may also petition the court for injunctive relief where either party alleges or claims a violation of the
employment, confidential information, invention assignment agreement between the Employee and the Company or any other agreement regarding trade secrets, confidential information, nonsolicitation or Labor Code §2870. In the event either party
seeks injunctive relief, the prevailing party shall be entitled to recover reasonable costs and attorneys’ fees. 
  
 (e) Administrative relief. The Employee understands that this Agreement does not prohibit the Employee from pursuing an
administrative claim with a local, state or federal administrative body such as the department of fair employment and housing, the equal employment opportunity commission or the workers’ compensation board. This Agreement does, however,
preclude the Employee from pursuing court action regarding any such claim. 
  
 15. Execution of Release Agreement upon Termination. As a condition of entering into this Agreement and of receiving benefits hereunder, the Employee agrees to execute the Release of Claims attached hereto as
Exhibit A upon the earlier of (i) the termination of his employment with the Company or (ii) the end of the Employment Period. 
  
 16. 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. 
  
 17. Integration. This Agreement, the Stock Agreements, and the Confidentiality Agreement represent the entire
agreement and understanding between the Parties as to the subject matter herein and supersede and replace all prior or contemporaneous agreements whether written or oral, including the Offer Letter and the Severance Agreement. No waiver, alteration,
or modification of any of the provisions of this Agreement will be binding unless in writing and signed by the Chairman of the Board. 
  

 -7- 

 18. Applicable Law. This Agreement shall be governed by and construed in accordance with the
internal substantive laws, and not the choice of law rules, of the State of California. 
  
 19. Effective Date. This Agreement is effective after it has been signed by both parties and after eight (8) days have passed since the Employee has signed the Agreement (the “Effective Date”).

  
 20. Counterparts. This Agreement may be executed in one
or more counterparts, none of which need contain the signature of more than one party hereto, and each of which shall be deemed to be an original, and all of which together shall constitute a single agreement. 
  
 21. Acknowledgment. The Employee acknowledges that he has had the
opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this
Agreement. 
  

 -8- 

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

	 PINNACLE SYSTEMS, INC.

		
	By:	 	/s/    Arthur D. Chadwick
	 	

	 	 	Arthur D. Chadwick
	 	 	Vice President, Finance and
	 	 	Administration and Chief Financial Officer
	 	 	 
	  
 EMPLOYEE

		
	By:	 	/s/    J. Kim Fennell
	 	

	 	 	J. Kim Fennell

  
  
  
  
  
  

 -9- 

 EXHIBIT A 
  
 FORM OF RELEASE OF CLAIMS AGREEMENT 
  
 This Release of Claims Agreement (this “Agreement”) is made as of
            , 200_ by and between Pinnacle Systems, Inc. (the “Company”) and J. Kim Fennell (the “Employee”). 
  
 RECITALS 
  
 WHEREAS, the Employee was employed by the Company pursuant to that certain
Transitional Employment Agreement effective as of November 1, 2003 (the “Employment Agreement”); 
  
 WHEREAS, the Employee’s employment with the Company terminated on             ,
200_ (the “Termination Date”); 
  
 WHEREAS, the Company
and the Employee entered into an Employment, Confidential Information and Invention Assignment Agreement (the “Confidentiality Agreement”); 
  
 WHEREAS, the Company and the Employee have entered into certain written stock option agreements to purchase common stock of the Company pursuant to the
Company’s 1996 Stock Option Plan and 1996 Supplemental Stock Option Plan (the “Stock Agreements”); 
  
 WHEREAS, the Company and the Employee, and each of them, wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions
and demands that the Employee may have against the Company as defined herein, including, but not limited to, any and all claims arising or in any way related to the Employee’s employment with, or separation from, the Company; 
  
 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: 
  
 COVENANTS 
  
 1. Consideration. Subject to and in consideration of the
Employee’s release of claims as provided herein and such other consideration provided in the Employment Agreement, 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 Employment Agreement. 
  
 2.
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 salary and benefits due to the Employee. 
  
 3. 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 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 3 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. 
  
 4. Acknowledgement 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

  

 -11- 

 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 up to twenty-one (21) days within which to consider this Agreement; 
  
 (c) he has seven (7) days following his execution of this
Agreement to revoke this Agreement; 
  
 (d) this
Agreement shall not be effective until the revocation period has expired; and, 
  
 (e) nothing in this Agreement prevents or precludes the Employee from challenging or seeking a determination in good faith of the validity
of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs for doing so, unless specifically authorized by federal law. 
  
 5. 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. 
  
 6. Confidential Information. The Employee shall continue to maintain the confidentiality of all confidential and proprietary information of the Company and shall continue to comply with the terms and conditions of the Confidentiality
Agreement between the Employee and the Company. The Employee shall return all of the Company’s property and confidential and proprietary information in his possession to the Company on the Effective Date of this Agreement. 
  
 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. 
  

 -12- 

 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. Arbitration. The Parties agree that any
and all disputes arising out of, or relating to, the terms of this Agreement, their interpretation, and any of the matters herein released, shall be subject to binding arbitration in Santa Clara County before the American Arbitration Association
under its National Rules for the Resolution of Employment Disputes. The Parties agree that the prevailing party in any arbitration shall be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. The
Parties agree that the prevailing party in any arbitration shall be awarded its reasonable attorneys’ fees and costs. The Parties hereby agree to waive their right to have any dispute between them resolved in a court of law by a judge or
jury. This section will not prevent either party from seeking injunctive relief (or any other provisional remedy) from any court having jurisdiction over the Parties and the subject matter of their dispute relating to Employee’s obligations
under this Agreement and the agreements incorporated herein by reference. 
  
 12. 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. 
  
 13. 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. 
  
 14.
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. 

 

 -13- 

 15. Entire Agreement. This Agreement, the Confidentiality Agreement, and the Stock Agreements
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. 
  
 16. No Oral Modification. Any modification or amendment of this Agreement, or additional obligation assumed by either party in connection with this Agreement, shall be effective only if placed in writing and
signed by the Employee and an executive officer of the Company. 
  
 17. Governing Law. This Agreement shall be deemed to have been executed and delivered within the State of California, and it shall be construed, interpreted, governed, and enforced in accordance with the laws of the State of
California, without regard to conflict of law principles. 
  
 18.
Effective Date. This Agreement is effective after it has been signed by both parties and after eight (8) days have passed since the Employee has signed the Agreement (the “Effective Date”). 
  
 19. 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. 
  
 20. 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. 
  

 -14- 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

  

	PINNACLE SYSTEMS, INC.
		
	By:	 	 
	 	

	 	 	 Mark L. Sanders
 Chairman of the Board of
Directors

		
	 	 	 
	 EMPLOYEE
  

	By:	 	

	 	 	J. Kim Fennell

  
  

 -15-

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