Exhibit
      10.14


**SETTLEMENT
      AGREEMENT AND RELEASE**




This
      Settlement Agreement and Release (this “Agreement") is made and entered into as
      of the 6th day of April 2004, between George E. Claffey (“Employee”) and
      ClearOne Communications Corporation (“ClearOne”), who shall be referred to as
      the “Parties”, or individually as a “Party”.


**DEFINITIONS**





1.  The
      term
“Employee” shall mean Employee and his or her heirs, assigns, and legal
      representatives.





2.  The
      phrase "ClearOne Released Parties" shall mean ClearOne and any and all business
      units, committees, groups, and their present, former or future parents,
      affiliates, subsidiaries, employees, agents, directors, owners, officers,
      attorneys, successors, predecessors, and assigns.





3.  The
      "Released Claims" shall mean any type or manner of suits, claims, demands,
      allegations, charges, damages, or causes of action whatsoever in law or in
      equity under federal, state, municipal or local statute, law, ordinance,
      regulation, constitution, or common law, whether known or unknown, which
      Employee has ever had or now has against the ClearOne Released Parties. This
      includes but is not limited to any action for costs, interest or attorney's
      fees, which arise in whole or in part from Employee's employment relationship
      with ClearOne, from the ending of that relationship, and from any other conduct
      by or dealings of any kind between Employee and the ClearOne Released Parties,
      which occurred prior to the execution of this Agreement. This also includes
      but
      is not limited to any and all claims, rights, demands, allegations and causes
      of
      action for alleged wrongful discharge, breach of alleged employment contract,
      breach of the covenant of good faith and fair dealing, termination in violation
      of public policy, intentional or negligent infliction of emotional distress,
      fraud, misrepresentation, defamation, interference with prospective economic
      advantage, failure to pay wages due or other monies owed, failure to pay pension
      benefits, conversion, breach of duty, interference with existing economic
      relations, punitive damages, retaliation, discrimination on the basis of age
      in
      violation of the Age Discrimination and Employment Act of 1967, as amended
      ("ADEA"), harassment or discrimination on the basis of sex, race, color,
      citizenship, religion, age, national origin, or disability, or other protected
      classification under the federal, state, municipal or local laws of employment,
      including those arising under the common law, and any alleged violation of
      the
      Employee Retirement Income Security Act of 1974 ("ERISA"), the Fair Labor
      Standards Act ("FLSA"), the Occupational Safety and Health Act ("OSHA"), and
      any
      other law.




**RECITALS**





A.  WHEREAS,
      the Parties desire to settle and compromise the Released Claims and to enter
      into this Agreement.


437423v1
 1
 
  **COVENANTS**





NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, and in consideration of the mutual covenants
      set
      forth in this Agreement, the Parties agree as follows:





1.  Employee’s
      employment with ClearOne shall end effective April 6, 2004. Employee is not
      entitled to receive any further compensation or benefits from ClearOne after
      this date.





2.  Notwithstanding
      the provisions of section 1, above, after his or her execution of this Agreement
      and in accordance with the terms of this Agreement, beginning after the
      effective date of termination of Employee’s employment, ClearOne will make total
      payment to Employee in the amount of $61,192.49 paid in increments according
      to
      the normal payroll schedule. Regular payroll and tax withholdings and deductions
      shall be applied and shall reduce this gross amount accordingly. Employee
      acknowledges that this sum constitutes consideration for Employee’s execution
      and adherence to the provisions of this Agreement. Employee understands and
      agrees that he or she would not receive the amounts specified herein except
      for
      his or her execution of this Agreement and the fulfillment of the promises
      contained herein. The ClearOne Released Parties make no representations
      whatsoever to Employee concerning the taxable status of the payment of the
      settlement amount. Employee assumes full and sole responsibility for any tax
      consequences related to the settlement amount. Employee understands and agrees
      to indemnify and hold harmless the ClearOne Released Parties from any taxes,
      assessments, withholding obligations, penalties or interest payments that they
      may incur at any time by reason of demand, suit or proceeding brought against
      them for any taxes or assessments or withholdings arising out of the payment
      of
      the settlement amount. Employee acknowledges he or she has been fully
      compensated by the terms of this Agreement for releasing the Released
      Claims.





3.  Employee
      shall not pursue, or authorize anyone on his or her behalf to pursue, the
      Released Claims in any way in any court. Employee represents that he or she
      has
      not filed and there is not pending with any governmental agency or any state
      or
      federal court, any other claims, complaints, charges, or lawsuits of any kind
      against the ClearOne Released Parties. Employee agrees that he or she will
      not
      make any filings with any court at any time hereafter for any matter, claim
      or
      incident, known or unknown, which occurred or arose out of occurrences on or
      prior to the date of this Agreement; provided, however, this shall not limit
      the
      Parties from filing a lawsuit for the sole purpose of enforcing their rights
      under this Agreement. Each of the Parties shall bear their own costs and
      attorneys' fees in this dispute.





437423v1
 2





4.  Employee
      hereby waives, releases, remises and discharges each and every one of the
      ClearOne Released Parties from liability with respect to the Released Claims.
      Employee acknowledges that he or she understands he or she is prohibited from
      any further relief on the Released Claims. Employee hereby promises and
      covenants never to institute any suit or action at law or in equity against
      the
      ClearOne Released Parties regarding or relating to the Released Claims.
      Specifically and without limitation, Employee understands and agrees that he
      or
      she is waiving and forever discharging the ClearOne Released Parties from any
      and all claims, causes of action or complaints he or she may have or have ever
      had, which have or may have arisen prior to the execution of this
      Agreement.





5.  Employee
      represents and warrants that he or she is the sole owner of the Released Claims,
      that the Released Claims have not been assigned, transferred, or disposed of
      in
      fact, by operation of law or in any manner whatsoever, and that he or she has
      the full right and power to grant, execute and deliver the full and complete
      releases, undertakings, and agreements herein contained.





6.  Employee
      agrees that the existence and terms of this Agreement shall be and remain
      confidential. Employee acknowledges that this confidentiality provision is
      an
      essential element of the consideration he provides to ClearOne for entering
      into
      this Agreement. Therefore, Employee agrees not to discuss or describe any
      information concerning ClearOne, the circumstances of the ending of Employee's
      employment with ClearOne or the existence of the terms of this Agreement to
      anyone, except as required by law or permitted herein.





7.  Employee
      reaffirms and agrees to observe and abide by the terms of the Confidentiality
      and Invention Assignment Agreement (“Confidentiality Agreement”) he or she
      signed with ClearOne. Employee certifies and represents that he or she has
      fully
      complied with all terms of the Confidentiality Agreement to date and has
      returned to ClearOne all records or documents or other property of ClearOne
      within his or her possession. Employee understands that his or her receipt
      of
      the consideration provided under this Agreement is expressly conditioned on
      Employee’s compliance with the obligations in this paragraph.





8.  Employee
      agrees not to disparage, orally or in writing, ClearOne, its officers,
      employees, management, operations, products, designs, or any other aspects
      of
      ClearOne’s affairs to any third person or entity.





9.  Employee
      agrees that for one year following Employee’s separation from employment with
      ClearOne, Employee shall not, directly or indirectly, in any capacity (including
      but not limited to, as an individual, a sole proprietor, a member of a
      partnership, a stockholder, investor, officer, or director of a corporation,
      an
      employee, agent, associate, or consultant of any person, firm or corporation
      or
      other entity) hire any person from, attempt to hire any person from, or solicit,
      induce, persuade, or otherwise cause any person to leave his or her employment
      with ClearOne.


437423v1
 3





10.  Employee
      agrees that for one year following Employee’s separation from employment with
      ClearOne, Employee shall not, directly or indirectly, in any capacity, solicit
      the business of any customer of ClearOne except on behalf of ClearOne, or
      attempt to induce any customer of ClearOne to cease or reduce its business
      with
      ClearOne; provided that following Employee’s separation from employment with
      Company he or she may solicit a customer of ClearOne to purchase goods or
      services that do not compete directly or indirectly with those then offered
      by
      ClearOne.





11.  Employee
      will be available to ClearOne on a consulting basis, up to 160 hours, ending
      no
      later than August 31, 2004. Hours and location of work will be scheduled by
      mutual agreement. ClearOne will reimburse employee for approved, related
      business expenses.





12.  Any
      breach of Employee’s obligations under this Agreement shall, in addition to all
      other remedies available to ClearOne, result in the immediate release of
      ClearOne from any obligations it has to provide further payments under this
      Agreement. In addition, ClearOne may pursue such additional legal or equitable
      remedies as may be available to it.





13.  This
      Agreement does not constitute and shall not be construed as an admission by
      ClearOne of any breach of any alleged agreements or duties, or of any wrongdoing
      toward Employee or any other person, including any alleged breach of contract
      or
      violation of any federal, state, or local law, regulation, or ordinance.
      ClearOne specifically disclaims any liability to Employee for wrongdoing of
      any
      kind.





14.  The
      Parties agree that this Agreement may be used in evidence in a subsequent
      proceeding in which any of the Parties alleges a breach of this
      Agreement.





15.  The
      parties shall attempt in good faith to resolve any dispute arising out of or
      relating to this Agreement by negotiation. The parties recognize that
      irreparable injury to ClearOne will result from a material breach of this
      Agreement, and that monetary damages will be inadequate to rectify such injury.
      Accordingly, notwithstanding anything to the contrary, ClearOne shall be
      entitled to one or more preliminary or permanent orders: (i) restraining or
      enjoining any act which would constitute a material breach of this Agreement,
      and (ii) compelling the performance of any obligation which, if not performed,
      would constitute a material breach of this Agreement, and to attorney’s fees in
      connection with any such action





16.  Employee
      affirms he or she is not relying on any representations or statements made
      by
      the ClearOne Released Parties which are not specifically included in this
      Agreement. Employee acknowledges he or she has been informed in writing by
      this
      Agreement that he or she has the right to consult with legal counsel regarding
      this release and confirms Employee has consulted with counsel to the extent
      desired concerning the meaning and consequences of this Agreement.





17.  This
      Agreement constitutes the entire agreement between the Parties with relation
      to
      the subject matter hereof. Any prior negotiations or correspondence relating
      to
      the subject matter hereof shall be deemed to have merged into this Agreement
      and
      to the extent inconsistent herewith shall be deemed to be of no force or
      effect.


437423v1
 4





18.  This
      Agreement may be executed in any number of counterparts, each of which when
      executed and delivered shall be an original, but all of such counterparts shall
      constitute one and the same instrument.





19.  This
      Agreement shall be interpreted and enforced in accordance with the laws of
      the
      State of Utah, and/or when applicable, of the United States. By entering into
      this Agreement, the Parties submit themselves and their principals individually
      to personal jurisdiction in the courts in the State of Utah and agree that
      Utah
      is the only appropriate venue for any action brought to interpret or enforce
      any
      provision of this Agreement, or which may otherwise arise under or relate to
      the
      subject matter of this Agreement.





20.  The
      provisions of this Agreement are severable, and if any part of it is found
      to be
      unenforceable, the other parts and/or paragraphs shall remain fully valid and
      enforceable. Should any provisions of this Agreement be determined by any court
      or administrative body to be invalid, the validity of the remaining provisions
      is not affected thereby and the invalidated part shall be deemed not a part
      of
      this Agreement. Any court or administrative body shall construe and interpret
      this Agreement as enforceable to the full extent available under applicable
      law.
      This Agreement shall survive the termination of any arrangements contained
      in
      it.





21.  Employee
      acknowledges and understands this is a legal contract and that he or she signs
      this Agreement knowingly, freely and voluntarily and has not been threatened,
      coerced or intimidated into making the same. Employee acknowledges that he
      or
      she has had ample and reasonable time to consider this Agreement and the effects
      and import of it and that he or she has fully dwelt on it in his or her mind
      and
      has had such counsel and advice, legal or otherwise, as Employee desires in
      order to make this Agreement. EMPLOYEE, BY SIGNING THIS AGREEMENT, ACKNOWLEDGES
      IT CONTAINS A RELEASE OF KNOWN AND UNKNOWN CLAIMS. Employee has read and fully
      considered this Agreement and understands and desires to enter into it. The
      terms of this agreement were derived through mutual compromise and are fully
      understood. Employee acknowledges that he or she has been offered at least
      twenty one (21) days to consider the impact of this Agreement and its release
      of
      his or her rights to bring suit against the ClearOne Released Parties and after
      due consideration has decided to enter into this Agreement at this time.
      Employee further understands that he or she may revoke this Agreement for a
      period of up to seven (7) days following signature and execution of the same.
      This Agreement shall not become effective or enforceable until the revocation
      period has expired. Any revocation within this period must be signed and
      submitted in writing to the undersigned representative of ClearOne and must
      state, "I hereby revoke my acceptance of the Agreement." Employee understands
      that if he or she revokes this Agreement, he or she is not entitled to receive
      the consideration provided by this Agreement. ****


437423v1
 5


Employee
      has until Wednesday, April 28, 2004 to accept terms and conditions by signing
      below. If Employee does not accept such terms and conditions by such date,
      this
      offer shall expire at **** that
      time.








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





EMPLOYEE






/s/
      George E.
      Claffey







CLEARONE
      COMMUNICATIONS CORP.






/s/
      DeLonie N. Call


DeLonie
      N. Call


Vice
      President, Human Resources