On February 23, 2009, Pinnacle Data Systems, Inc. entered into a Second Lease Amendment with its landlord, Duke Realty Ohio, for its headquarters located at 6600 Port Road in Groveport, Ohio, and a First Lease Amendment for its warehouse space located at 6295 Commerce Center Drive in Groveport, Ohio. Under the lease amendments the Company and its landlord agreed to the following material amendments:

• the rent schedules of each lease have been revised to provide for a reduction in the minimum annual rent amounts;

• the term of each lease has been extended to July 31, 2012; and

• each lease has been revised to contain the grant of an option to extend the term of each lease period for one (1) additional period of three
(3) years, exercisable upon nine (9) months written notice.

Except as disclosed in this Form 8-K, all other material terms and conditions of the lease agreements remain the same.

The second lease amendment for the Company's headquarters located at 6600 Port Road in Groveport, Ohio is attached as Exhibit 10.1.

The first lease amendment for the Company's warehouse space located at 6295 Commerce Center Drive in Groveport, Ohio is attached as Exhibit 10.2.

(c) Exhibits

Exhibit No.      Descriptions

   10.1          Second Lease Amendment between Pinnacle Data Systems, Inc. and
                 Duke Realty Ohio, effective February 23, 2009

   10.2          First Lease Amendment between Pinnacle Data Systems, Inc. and Duke
                 Realty Ohio, effective February 23, 2009