THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Pinnacle Systems, Inc. (Retired) (PCLE.X)

9/30/2004 Proxy Information

The employment of William Loesch, our former vice president/general manager, content editing and viewing, was terminated on August 31, 2004. Pursuant to a duly executed separation agreement and release dated August 31, 2004 between us and William Loesch, Mr. Loesch is entitled to receive $140,000, paid over five months commencing on the effective date of this agreement, and reimbursement for elected continuation coverage pursuant to COBRA for a period of five months beginning September 1, 2004 and concluding on January 31, 2005. As part of this agreement, Mr. Loesch has agreed that the consideration under this agreement represents settlement in full of all outstanding obligations owed to him and claims relating or arising from his employment with us.

The employment of Georg Blinn, our former president, personal web video division, was terminated effective September 30, 2004. Pursuant to a duly executed termination agreement dated February 25, 2004 between us and Georg Blinn, Mr. Blinn continued to receive his monthly salary of 17,500 during his leave of absence from January 26, 2004 to September 30, 2004. In addition, the vesting of 131,875 shares of outstanding stock options held by Mr. Blinn was extended until August 31, 2006. Mr. Blinn will have 90 days from September 30, 2004 to exercise his other outstanding stock options. As part of this agreement, Mr. Blinn has agreed that the consideration under this agreement represents settlement in full of all outstanding obligations owed to him and claims relating or arising from his employment with us.

The employment of Robert Wilson, our former senior vice president, corporate development, was terminated on April 5, 2004. Pursuant to a duly executed separation agreement and release dated April 5, 2004 between us and Robert Wilson, Mr. Wilson was entitled to receive the lump sum payments of (i) $52,836.36, less applicable withholdings, which represented three months of his base salary, within five business days after the effective date of his separation agreement, (ii) $31,703.80, which represented three months of his yearly targeted bonus and (iii) three months of elected continuation coverage pursuant to COBRA. In addition, 50% of unvested shares subject to all outstanding stock options held by Mr. Wilson as of April 5, 2004, representing 46,928 shares of our common stock, accelerated and became vested and exercisable. As part of this agreement, Mr. Wilson has agreed that the consideration under this agreement represents settlement in full of all outstanding obligations owed to him and claims relating or arising from his employment with us.

10/8/2003 Proxy Information

Mr. Ajay Chopra, a founder of Pinnacle Systems, Inc., has served as President of Broadcast and Professional Division since July 2001 and as a director since inception in May 1986. In addition, He served as Chairman from January 1990 to July 2002. He served as President of the Professional Media Division of Pinnacle from August 2000 until August 2001, and as Vice President, General Manager, Desktop Products from April 1997 until July 2000. Mr. Chopra previously served as Chief Technology Officer from June 1996 to April 1997, Vice President of Engineering from January 1990 to June 1996, and as President and Chief Executive Officer from Pinnacle's inception to January 1990.

Mark L. Sanders served as the Chairman of Pinnacle Systems, Inc. from July 2002 until March 2004. He served as President and Chief Executive Officer for Pinnacle from January 1990 until July 2002.