Document:

Form of Indemnification Agreement

 Exhibit 10.1 
  
 POLYCOM, INC. 
  
 INDEMNIFICATION AGREEMENT 
  
 THIS AGREEMENT is entered into, effective as of [DATE], by and between Polycom, Inc., a Delaware corporation (the “Company”), and [INDEMNITEE]
(“Indemnitee”). 
  
 WHEREAS, it is essential to the
Company to retain and attract as directors and officers the most capable persons available; 
  
 WHEREAS, Indemnitee is a director and/or officer of the Company; 
  
 WHEREAS, both the Company and Indemnitee recognize the increased risk of litigation and other claims currently being asserted against directors and
officers of corporations; 
  
 WHEREAS, the Certificate of
Incorporation permits and Bylaws of the Company require the Company to indemnify and advance expenses to its directors and officers to the fullest extent permitted under Delaware law, and the Indemnitee has been serving and continues to serve as a
director and/or officer of the Company in part in reliance on the Company’s Certificate of Incorporation and Bylaws; and 
  
 WHEREAS, in recognition of Indemnitee’s need for (i) substantial protection against personal liability based on Indemnitee’s reliance on the
aforesaid Certificate of Incorporation and Bylaws, (ii) specific contractual assurance that the protection promised by the Certificate of Incorporation and Bylaws will be available to Indemnitee (regardless of, among other things, any amendment to
or revocation of the Certificate of Incorporation and Bylaws or any change in the composition of the Company’s Board of Directors or acquisition transaction relating to the Company), and (iii) an inducement to provide effective services to the
Company as a director and/or officer, the Company wishes to provide in this Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest extent (whether partial or complete) permitted under Delaware law and as set
forth in this Agreement, and, to the extent insurance is maintained, to provide for the continued coverage of Indemnitee under the Company’s directors’ and officers’ liability insurance policies. 
  
 NOW, THEREFORE, in consideration of the above premises and of Indemnitee
continuing to serve the Company directly or, at its request, with another enterprise, and intending to be legally bound hereby, the parties agree as follows: 
  
 1. Certain Definitions: 
  
 (a) Board: the Board of Directors of the Company. 
  
 (b) Affiliate: any corporation or other person or entity that directly, or indirectly through one or
more intermediaries, controls or is controlled by, or is under common control with, the person specified. 
  
 (c) Change in Control: shall be deemed to have occurred if (i) any “person” (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, 

  

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as amended (the “Exchange Act”)), other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a
corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding Voting Securities, or (ii) during any period of two consecutive years, individuals who
at the beginning of such period constitute the Board and any new director whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority of the Board, or (iii) the stockholders of the Company approve a
merger or consolidation of the Company with any other entity, other than a merger or consolidation that 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) at least 80% of the total voting power represented by the Voting Securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation, or (iv) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company (in one transaction or a series of transactions) of all or substantially all of
the Company’s assets. 
  
 (d)
Expenses: any expense, liability, or loss, including attorneys’ fees, judgments, fines, ERISA excise taxes and penalties, amounts paid or to be paid in settlement, any interest, assessments, or other charges imposed thereon, any federal,
state, local, or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement, and all other costs and obligations, paid or incurred in connection with investigating, defending, being a witness in,
participating in (including on appeal), or preparing for any of the foregoing in, any Proceeding relating to any Indemnifiable Event. 
  
 (e) Indemnifiable Event: any event or occurrence that takes place either prior to or after the execution of this Agreement, related
to the fact that Indemnitee is or was a director or officer of the Company, or while a director or officer is or was serving at the request of the Company as a director, officer, employee, trustee, agent, or fiduciary of another foreign or domestic
corporation, partnership, joint venture, employee benefit plan, trust, or other enterprise, or was a director, officer, employee, or agent of a foreign or domestic corporation that was a predecessor corporation of the Company or of another
enterprise at the request of such predecessor corporation, or related to anything done or not done by Indemnitee in any such capacity, whether or not the basis of the Proceeding is alleged action in an official capacity as a director, officer,
employee, or agent or in any other capacity while serving as a director, officer, employee, or agent of the Company, as described above. 
  
 (f) Independent Counsel: the person or body appointed in connection with Section 3. 
  
 (g) Proceeding: any threatened, pending, or completed
action, suit, or proceeding or any alternative dispute resolution mechanism (including an action by or in the right of the Company), or any inquiry, hearing, or investigation, whether conducted by the Company or any 

  

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other party, that Indemnitee in good faith believes might lead to the institution of any such action, suit, or proceeding, whether civil, criminal,
administrative, investigative, or other. 
  
 (h)
Reviewing Party: the person or body appointed in accordance with Section 3. 
  
 (i) Voting Securities: any securities of the Company that vote generally in the election of directors. 
  
 2. Agreement to Indemnify. 
  
 (a) General Agreement. In the event Indemnitee was,
is, or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or other participant in, a Proceeding by reason of (or arising in part out of) an Indemnifiable Event, the Company shall indemnify
Indemnitee from and against any and all Expenses to the fullest extent permitted by law, as the same exists or may hereafter be amended or interpreted (but in the case of any such amendment or interpretation, only to the extent that such amendment
or interpretation permits the Company to provide broader indemnification rights than were permitted prior thereto). The parties hereto intend that this Agreement shall provide for indemnification in excess of that expressly permitted by statute,
including, without limitation, any indemnification provided by the Company’s Certificate of Incorporation, its Bylaws, vote of its stockholders or disinterested directors, or applicable law. 
  
 (b) Initiation of Proceeding. Notwithstanding
anything in this Agreement to the contrary, Indemnitee shall not be entitled to indemnification pursuant to this Agreement in connection with any Proceeding initiated by Indemnitee against the Company or any director or officer of the Company unless
(i) the Company has joined in or the Board has consented to the initiation of such Proceeding; (ii) the Proceeding is one to enforce indemnification rights under Section 5; or (iii) the Proceeding is instituted after a Change in Control (other than
a Change in Control approved by a majority of the directors on the Board who were directors immediately prior to such Change in Control) and Independent Counsel has approved its initiation. 
  
 (c) Expense Advances. If so requested by Indemnitee,
the Company shall advance (within ten business days of such request) any and all Expenses incurred by Indemnitee (an “Expense Advance”). The Indemnitee shall qualify for such Expense Advances upon the execution and delivery to the Company
of this Agreement which shall constitute an undertaking providing that the Indemnitee undertakes to repay such Expense Advances if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final judgment, not
subject to appeal, that Indemnitee is not entitled to be indemnified by the Company. Until it is so finally determined by the court that Indemnitee is not entitled indemnification, Indemnitee shall not be required to repay such Expense Advances to
the Company and Indemnitee shall continue to receive Expense Advances pursuant to this Section 2(c). Indemnitee’s obligation to reimburse the Company for Expense Advances shall be unsecured and no interest shall be charged thereon. To the
extent permissible under third party policies, the Company agrees that invoices for Expense Advances shall be billed in the name of and be payable directly by the Company. 
  

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 (d) Mandatory Indemnification. Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any Proceeding relating in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein, Indemnitee shall be indemnified
against all Expenses incurred in connection therewith. 
  
 (e) Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled. Attorneys’ fees and expenses shall not be prorated but shall be deemed to apply to the portion of indemnification to which Indemnitee is entitled.

  
 (f) Prohibited Indemnification. No
indemnification pursuant to this Agreement shall be paid by the Company on account of any Proceeding in which judgment is rendered against Indemnitee for an accounting of profits made from the purchase or sale by Indemnitee of securities of the
Company pursuant to the provisions of Section 16(b) of the Exchange Act, or similar provisions of any federal, state, or local laws; provided, however, that notwithstanding any limitation set forth in this Section 2(f) regarding the Company’s
obligation to provide indemnification, Indemnitee shall be entitled under Section 2(c) to receive Expense Advances hereunder with respect to any such Proceeding unless and until a court having jurisdiction over the Proceeding shall have made a final
judicial determination (as to which all rights of appeal therefrom have been exhausted or lapsed) that Indemnitee has violated said statute. 
  
 3. Reviewing Party. Prior to any Change in Control, the Reviewing Party shall be any appropriate person or body consisting of a member or members
of the Board or any other person or body appointed by the Board who is not a party to the particular Proceeding with respect to which Indemnitee is seeking indemnification. With respect to all matters arising after a Change in Control (other than a
Change in Control approved by a majority of the directors on the Board who were directors immediately prior to such Change in Control) concerning the rights of Indemnitee to indemnity payments under this Agreement or any other agreement or under
applicable law or the Company’s Certificate of Incorporation or Bylaws now or hereafter in effect relating to indemnification for Indemnifiable Events, the Reviewing Party shall be Independent Counsel selected by Indemnitee and approved by the
Company (which approval shall not be unreasonably withheld), and who has not otherwise performed services for the Company or the Indemnitee (other than in connection with indemnification matters) within the last three years. The Independent Counsel
shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under
this Agreement. Such counsel, among other things, shall render its written opinion to the Company and Indemnitee as to whether and to what extent the Indemnitee should be permitted to be indemnified under applicable law. The Company agrees to pay
the reasonable fees of the Independent Counsel and to indemnify fully such counsel against any and all expenses (including attorneys’ fees), claims, liabilities, loss, and damages arising out of or relating to this Agreement or the engagement
of Independent Counsel pursuant hereto. 
  

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 4. Indemnification Process and Appeal. 
  
 (a) Indemnification Payment. Indemnitee shall be
entitled to indemnification of Expenses, and shall receive payment thereof, from the Company in accordance with this Agreement as soon as practicable after Indemnitee has made written demand on the Company for indemnification, unless the Reviewing
Party has given a written opinion to the Company that Indemnitee is not entitled to indemnification under Section 145 of the Delaware General Corporation Law. 
  

(b) Suit to Enforce Rights. Regardless of any action by the Reviewing Party, if Indemnitee has not received full indemnification
within thirty days after making a demand in accordance with Section 4(a), Indemnitee shall have the right to enforce its indemnification rights under this Agreement by commencing litigation in the Court of Chancery of the State of Delaware seeking
an initial determination by the court or challenging any determination by the Reviewing Party or any aspect thereof. The Company hereby consents to service of process and to appear in any such proceeding. Any determination by the Reviewing Party not
challenged by the Indemnitee shall be binding on the Company and Indemnitee. The remedy provided for in this Section 4 shall be in addition to any other remedies available to Indemnitee at law or in equity. 
  
 (c) Defense to Indemnification, Burden of Proof, and
Presumptions. It shall be a defense to any action brought by Indemnitee against the Company to enforce this Agreement (other than an action brought to enforce a claim for Expenses incurred in defending a Proceeding in advance of its final
disposition) that it is not permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed. In connection with any such action or any determination by the Reviewing Party as to whether Indemnitee is entitled to be
indemnified hereunder, the burden of proving such a defense or determination shall be on the Company to establish that Indemnitee is not so entitled to indemnification. It is the parties’ intention that if Indemnitee commences legal proceedings
to secure a judicial determination that Indemnitee should be indemnified under this Agreement or applicable law, the question of Indemnitee’s right to indemnification shall be for the court to decide, and neither the failure of the Reviewing
Party or the Company (including its Board, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such action by Indemnitee that indemnification of the claimant is proper under the circumstances
because Indemnitee has met the standard of conduct set forth in applicable law, nor an actual determination by the Reviewing Party or Company (including its Board, independent legal counsel, or its stockholders) that the Indemnitee had not met such
applicable standard of conduct, shall be a defense to the action or create a presumption that the Indemnitee has not met the applicable standard of conduct. For purposes of this Agreement, the termination of any claim, action, suit, or proceeding,
by judgment, order, settlement (whether with or without court approval), conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that Indemnitee did not meet any particular standard of conduct or have any
particular belief or that a court has determined that indemnification is not permitted by applicable law. 
  

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 5. Indemnification for Expenses Incurred in Enforcing Rights. The Company shall indemnify
Indemnitee against any and all Expenses that are incurred by Indemnitee in connection with any action brought by Indemnitee for 
  
 (a) indemnification or advance payment of Expenses by the Company under this Agreement or any other agreement or under applicable law or
the Company’s Certificate of Incorporation or Bylaws now or hereafter in effect relating to indemnification for Indemnifiable Events, and/or 
  
 (b) recovery under directors’ and officers’ liability insurance policies maintained by the Company, but only in the event that
Indemnitee ultimately is determined to be entitled to such indemnification or insurance recovery, as the case may be. 
  
 In addition, the Company shall, if so requested by Indemnitee, advance the foregoing Expenses to Indemnitee, subject to and in accordance with Section 2(c). 

 
 6. Notification and Defense of Proceeding. 
  
 (a) Notice. Promptly after receipt by Indemnitee of
notice of the commencement of any Proceeding, Indemnitee shall, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement thereof; but the omission so to notify the Company will not
relieve the Company from any liability that it may have to Indemnitee, except as provided in Section 6(c). 
  
 (b) Defense. With respect to any Proceeding as to which Indemnitee notifies the Company of the commencement thereof, the Company
will be entitled to participate in the Proceeding at its own expense and except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof with counsel reasonably satisfactory to Indemnitee. After notice from
the Company to Indemnitee of its election to assume the defense of any Proceeding, the Company shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently incurred by Indemnitee in connection with the defense of
such Proceeding other than reasonable costs of investigation, transition costs associated with the Company’s assumption of the defense, or as otherwise provided below. Indemnitee shall have the right to employ legal counsel in such Proceeding,
but all Expenses related thereto incurred after notice from the Company of its assumption of the defense shall be at Indemnitee’s expense unless: (i) the employment of legal counsel by Indemnitee has been authorized by the Company, (ii)
Indemnitee has reasonably determined that there may be a conflict of interest between Indemnitee and the Company in the defense of the Proceeding, (iii) after a Change in Control (other than a Change in Control approved by a majority of the
directors on the Board who were directors immediately prior to such Change in Control), the employment of counsel by Indemnitee has been approved by the Independent Counsel, or (iv) the Company shall not in fact have employed counsel to assume the
defense of such Proceeding, in each of which cases all Expenses of the Proceeding shall be borne by the Company. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company or as to which
Indemnitee shall have made the determination provided for in (ii), (iii) and (iv) above. 
  

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 (c) Settlement of Claims. The Company shall not be liable to indemnify Indemnitee
under this Agreement or otherwise for any amounts paid in settlement of any Proceeding effected without the Company’s written consent, such consent not to be unreasonably withheld; provided, however, that if a Change in Control has occurred
(other than a Change in Control approved by a majority of the directors on the Board who were directors immediately prior to such Change in Control), the Company shall be liable for indemnification of Indemnitee for amounts paid in settlement if the
Independent Counsel has approved the settlement. The Company shall not settle any Proceeding in any manner that would impose any penalty or limitation on Indemnitee without Indemnitee’s written consent. The Company shall not be liable to
indemnify the Indemnitee under this Agreement with regard to any judicial award if the Company was not given a reasonable and timely opportunity, at its expense, to participate in the defense of such action; the Company’s liability hereunder
shall not be excused if participation in the Proceeding by the Company was barred by this Agreement. 
  
 7. Establishment of Trust. In the event of a Change in Control (other than a Change in Control approved by a majority of the directors on the Board
who were directors immediately prior to such Change in Control) the Company shall, upon written request by Indemnitee, create a trust for the benefit of the Indemnitee (the “Trust”) and from time to time upon written request of Indemnitee
shall fund the Trust in an amount sufficient to satisfy any and all Expenses reasonably anticipated at the time of each such request to be incurred in connection with investigating, preparing for, participating in, and/or defending any Proceeding
relating to an Indemnifiable Event. The amount or amounts to be deposited in the Trust pursuant to the foregoing funding obligation shall be determined by the Independent Counsel. The terms of the Trust shall provide that (i) the Trust shall not be
revoked or the principal thereof invaded without the written consent of the Indemnitee, (ii) the trustee of the Trust (the “Trustee”) shall advance, within ten business days of a request by the Indemnitee, any and all Expenses to the
Indemnitee (and the Indemnitee hereby agrees to reimburse the Trust under the same circumstances for which the Indemnitee would be required to reimburse the Company under Section 2(c) of this Agreement), (iii) the Trust shall continue to be funded
by the Company in accordance with the funding obligation set forth above, (iv) the Trustee shall promptly pay to the Indemnitee all amounts for which the Indemnitee shall be entitled to indemnification pursuant to this Agreement or otherwise, and
(v) all unexpended funds in the Trust shall revert to the Company upon a final determination by the Independent Counsel or a court of competent jurisdiction, as the case may be, that the Indemnitee has been fully indemnified under the terms of this
Agreement. The Trustee shall be chosen by the Indemnitee. Nothing in this Section 7 shall relieve the Company of any of its obligations under this Agreement. All income earned on the assets held in the Trust shall be reported as income by the
Company for federal, state, local, and foreign tax purposes. The Company shall pay all costs of establishing and maintaining the Trust and shall indemnify the Trustee against any and all expenses (including attorneys’ fees), claims,
liabilities, loss, and damages arising out of or relating to this Agreement or the establishment and maintenance of the Trust. 
  
 8. Non-Exclusivity. The rights of Indemnitee hereunder shall be in addition to any other rights Indemnitee may have under the Company’s
Certificate of Incorporation, Bylaws, applicable law, or otherwise; provided, however, that this Agreement shall supersede any prior indemnification agreement between the Company and the Indemnitee. To the extent that a change in applicable law
(whether by statute or judicial decision) permits greater indemnification than would be afforded currently under the Company’s Certificate of Incorporation, Bylaws, 

  

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applicable law, or this Agreement, it is the intent of the parties that Indemnitee enjoy by this Agreement the greater benefits so afforded by such change
without any further action by the parties hereto. 
  
 9.
Liability Insurance. To the extent the Company maintains an insurance policy or policies providing general and/or directors’ and officers’ liability insurance, Indemnitee shall be covered by such policy or policies, in accordance
with its or their terms, to the maximum extent of the coverage available for any Company director or officer. 
  
 10. Period of Limitations. No legal action shall be brought and no cause of action shall be asserted by or on behalf of the Company or any
Affiliate of the Company against Indemnitee, Indemnitee’s spouse, heirs, executors, or personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, or such longer period as may be
required by state law under the circumstances. Any claim or cause of action of the Company or its Affiliate shall be extinguished and deemed released unless asserted by the timely filing and notice of a legal action within such period; provided,
however, that if any shorter period of limitations is otherwise applicable to any such cause of action, the shorter period shall govern. 
  
 11. Amendment of this Agreement. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by both of
the parties hereto. No waiver of any of the provisions of this Agreement shall be binding unless in the form of a writing signed by the party against whom enforcement of the waiver is sought, and no such waiver shall operate as a waiver of any other
provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided herein, no failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver
thereof. 
  
 12. Subrogation. In the event of payment under
this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the
execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights. 
  
 13. No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment in connection with any claim made against
Indemnitee to the extent Indemnitee has otherwise received payment (under any insurance policy, Bylaw, or otherwise) of the amounts otherwise indemnifiable hereunder. 
  
 14. Binding Effect. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation, or otherwise to all or substantially all of the business and/or assets of the Company), assigns, spouses, heirs, and
personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation, or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of
the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession
had taken place. The  

  

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indemnification provided under this Agreement shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity
pertaining to an Indemnifiable Event even though he may have ceased to serve in such capacity at the time of any Proceeding. 
  
 15. Severability. If any provision (or portion thereof) of this Agreement shall be held by a court of competent jurisdiction to be invalid, void,
or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of this
Agreement containing any provision held to be invalid, void, or otherwise unenforceable, that is not itself invalid, void, or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, void, or
unenforceable. 
  
 16. Governing Law. This Agreement shall
be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable to contracts made and to be performed in such State without giving effect to its principles of conflicts of laws. 
  
 17. Notices. All notices, demands, and other communications required
or permitted hereunder shall be made in writing and shall be deemed to have been duly given if delivered by hand, against receipt, or mailed, postage prepaid, certified or registered mail, return receipt requested, and addressed to the Company at:

  
 Polycom, Inc. 
 4750 Willow Road 
 Pleasanton, CA 94588

 Attention: Chief Executive Officer 
  
 and to Indemnitee at: 
  
 [INDEMNITEE NAME] 
 [ADDRESS] 
  
 Notice of change of address shall be effective only when given in accordance with this
Section. All notices complying with this Section shall be deemed to have been received on the date of hand delivery or on the third business day after mailing. 
  

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 18. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement as of the day specified above. 
  

			
	 POLYCOM, INC.,

	 a Delaware corporation

		
	By:	 	 
	 	 	 Robert C. Hagerty,

	 	 	 President and Chief Executive Officer

  

	
	 INDEMNITEE

	
	 
	 

  

 10Settlement Agreement Dated November 2004

 Exhibit 10.26 
  
 CONFIDENTIAL 
 Execution Copy 
  
 SETTLEMENT AGREEMENT 
  
 This SETTLEMENT AGREEMENT (this “Settlement Agreement”) is
made and entered into as of November 12, 2004 (the “Effective Date”) by and between, on the one hand, Polycom, Inc., a Delaware corporation, having offices at 4750 Willow Road, Pleasanton, CA 94588 (“Polycom”), and,
on the other hand, Avistar Communications Corporation, a Delaware corporation, having offices at 555 Twin Dolphin Drive, Suite 360, Redwood Shores, California 94065 together with its wholly owned subsidiary Collaboration Properties, Inc., a Nevada
corporation, having offices at 555 Twin Dolphin Drive, Suite 360, Redwood Shores, California 94065 (collectively, “Avistar”) (Polycom and Avistar are individually referred to herein as a “party,” and collectively as
the “parties”). 
  
 WITNESSETH 
  
 WHEREAS, Avistar has filed claims against Polycom for patent infringement in
an action styled Collaboration Properties, Inc. v. Polycom, Inc., Case # 02-CV-04591, pending in the United States District Court for the Northern District of California, and Polycom has asserted counterclaims for, inter alia, patent
infringement, invalidity and unenforceability, against Avistar (the “Litigation”); 
  
 WHEREAS, Polycom denies that it does now or has ever infringed any of Avistar’s patents or committed any act that would entitle Avistar, under the
law of any jurisdiction anywhere in the world, to any of the relief it is seeking in the Litigation against Polycom; 
  
 WHEREAS, Avistar asserts that Polycom does infringe the Avistar patents asserted in the Litigation, that those patents are valid and enforceable, and that
it is entitled to the relief it is seeking in the Litigation against Polycom; 
  
 WHEREAS, Avistar and Polycom are concurrently entering into that certain Patent Cross-License Agreement of even date herewith and attached hereto as Exhibit C (the “Patent License Agreement”); and

  
 WHEREAS, Avistar and Polycom desire to avoid the time and
expense of litigation, and in compromise of the disputed claims, to fully and finally resolve and settle the Litigation through the exchange of mutual releases, licenses and other valuable and adequate consideration as set forth in this Settlement
Agreement and the Patent License Agreement. 
  
 NOW, THEREFORE, in
consideration of the above and the mutual covenants and promises hereinafter contained, the parties agree as follows: 
  
 ARTICLE I – DEFINITIONS 
  
 As used in this Settlement Agreement, the following terms shall have the following meanings: 
  
 1.1 “Avistar Patents” shall have the meaning set forth in Section 1.1 of the Patent License Agreement.

  

 1.2 “Person” shall have the meaning set forth in Section 1.10 of the Patent License
Agreement. 
  
 1.3 “Polycom Patents” shall have
the meaning set forth in Section 1.14 of the Patent License Agreement. 
  
 1.4 “Subsidiary” shall have the meaning set forth in Section 1.13 of the Patent License Agreement. 
  
 1.5 “Third Party” shall have the meaning set forth in Section 1.14 of the Patent License Agreement. 
  
 1.6 “Voting Power” shall have the meaning set forth in
Section 1.15 of the Patent License Agreement. 
  
 ARTICLE II
– RELEASES 
  
 2.1 Releases by Avistar.

  
 (a) Subject to ARTICLE V below, Avistar, on
behalf of itself and its Subsidiaries, irrevocably releases, acquits and forever discharges (and will cause its Subsidiaries to irrevocably release, acquit and forever discharge) Polycom and its Subsidiaries and its and their respective officers,
directors, employees, agents, predecessors, successors, assigns, representatives, and attorneys from and against any and all causes of action, actions, rights of action, suits, judgments, liens, indebtedness, damages, losses, claims, liabilities,
obligations, attorneys’ fees, costs, expenses and demands of every kind and character (i) arising from, included in or relating to the Litigation, or (ii) which otherwise accrued against Polycom or its Subsidiaries prior to the Effective Date
or arises out of any act or alleged act done prior to the Effective Date, whether known or unknown, suspected or unsuspected, disclosed or undisclosed, up to and as of the Effective Date, including misappropriation of trade secrets, unfair business
practices, anticompetitive acts, and infringement of any Avistar Patents, including Patents asserted by Avistar in the Litigation, whether direct, contributory or by inducement, and whether or not willful. 
  
 (b) Subject to ARTICLE V below, Avistar, on behalf of itself
and its Subsidiaries, irrevocably releases, acquits and forever discharges (and will cause its Subsidiaries to irrevocably release, acquit and forever discharge) Polycom’s and its Subsidiaries’ direct and indirect manufacturers,
distributors, dealers, resellers, customers (including OEM customers), and end users, (each direct and indirect manufacturer, distributor, dealer, reseller, customer (including OEM customer), and end user is a “Purchaser”, and all are
collectively “Purchasers” for the purposes of this section and section 2.2(b) below) from and against any and all causes of action, actions, rights of action, suits, judgments, liens, indebtedness, damages, losses, claims, liabilities,
obligations, attorneys’ fees, costs, expenses and demands of every kind and character, whether known or unknown, suspected or unsuspected, disclosed or undisclosed (i) arising from, included in or relating to the Litigation, or (ii) arising
from infringement of Avistar Patents, including Patents asserted by Avistar in the Litigation (whether direct, contributory or by inducement, and whether or not willful) based on acts prior to the Effective Date that would have been licensed under
the Patent License Agreement if conducted after the Effective Date. For the avoidance 

  

 
of doubt, this release extends to a Purchaser only with respect to their permitted manufacture, sale, distribution, import or use (as the case may be) of
products of Polycom or its Subsidiaries, and does not extend to any other actions or omissions of a Purchaser that may give rise to a claim or cause of action by Avistar. The foregoing shall not be construed as limiting the covenants not to sue set
forth in the Patent License Agreement, which the parties acknowledge shall apply to products of Polycom and its Subsidiaries (and subject to the limitations set forth in Section 4.2 of the Patent License Agreement, to new Subsidiaries) whether sold
prior to or after the Effective Date. 
  
 2.2 Releases by
Polycom. 
  
 (a) Subject to ARTICLE V below,
Polycom, on behalf of itself and its Subsidiaries, irrevocably releases, acquits and forever discharges (and will cause its Subsidiaries to irrevocably release, acquit and forever discharge) Avistar and its Subsidiaries and its and their respective
officers, directors, employees, agents, predecessors, successors, assigns, representatives, and attorneys from and against any and all causes of action, actions, rights of action, suits, judgments, liens, indebtedness, damages, losses, claims,
liabilities, obligations, attorneys’ fees, costs, expenses and demands of every kind and character (i) arising from, included in or relating to the Litigation, or (ii) which otherwise accrued against Avistar or its Subsidiaries prior to the
Effective Date or arises out of any act or alleged act done prior to the Effective Date, whether known or unknown, suspected or unsuspected, disclosed or undisclosed, up to and as of the Effective Date, including misappropriation of trade secrets,
unfair business practices, anticompetitive acts and infringement of any Polycom Patents, including Patents asserted by Polycom in the Litigation, whether direct, contributory or by inducement, and whether or not willful. 
  
 (b) Subject to ARTICLE V below, Polycom, on behalf of itself
and its Subsidiaries, irrevocably releases, acquits and forever discharges (and will cause its Subsidiaries to irrevocably release, acquit and forever discharge) Avistar’s and its Subsidiaries’ direct and indirect Purchasers from and
against any and all causes of action, actions, rights of action, suits, judgments, liens, indebtedness, damages, losses, claims, liabilities, obligations, attorneys’ fees, costs, expenses and demands of every kind and character, whether known
or unknown, suspected or unsuspected, disclosed or undisclosed (i) arising from, included in or relating to the Litigation, or (ii) arising from infringement of Polycom Patents including Patents asserted by Polycom in the Litigation (whether direct,
contributory or by inducement, and whether or not willful) based on acts prior to the Effective Date that would have been licensed under the Patent License Agreement if conducted after the Effective Date. For the avoidance of doubt, this release
extends to a Purchaser only with respect to their permitted manufacture, sale, distribution, import or use (as the case may be) of products of Avistar or its Subsidiaries, and does not extend to any other actions or omissions of a Purchaser that may
give rise to a claim or cause of action by Polycom. The foregoing shall not be construed as limiting the covenants not to sue set forth in the Patent License Agreement, which the parties acknowledge shall apply to products of Avistar and its
Subsidiaries (and subject to the limitations set forth in Section 4.2 of the Patent License Agreement, to new Subsidiaries) whether sold prior to or after the Effective Date. 
  
 2.3 General Releases. The releases between Avistar and Polycom in this Settlement Agreement include an express,
informed, knowing and voluntary waiver and relinquishment to the 

  

 
fullest extent permitted by law of rights under Section 1542 of the California Civil Code, which reads as follows, and under any similar or comparable laws
anywhere in the world: 
  
 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. 
  
 ARTICLE III – DISMISSAL OF LITIGATION 
  
 3.1 Dismissal. In accordance with ARTICLE V below, Avistar and Polycom
shall cause their respective counsel to execute and file a stipulation and order in the form set forth in Exhibit A dismissing with prejudice all claims and counterclaims in the Litigation. The parties shall cooperate in taking any and all
additional procedures needed to dismiss the Litigation with prejudice. 
  
 3.2 No Admission. The parties agree that the settlement of the Litigation is intended solely as a compromise of disputed claims and counterclaims. Neither the fact of a party’s entry into this Settlement Agreement nor the terms
hereof nor any acts undertaken pursuant hereto shall constitute an admission or concession by any party regarding liability or the validity of any claim or counterclaim in the Litigation. 
  
 3.3 Attorneys’ Fees and Costs. Except as set forth in Section 4.1, The parties agree that they shall bear their
own costs and attorneys’ fees relating to the Litigation and settlement thereof, including expert fees and court costs, and the preparation, negotiation and execution of this Settlement Agreement and the Patent License Agreement. 
  
 ARTICLE IV – CONSIDERATION 
  
 4.1 Polycom shall pay to Avistar a total of twenty-seven million five hundred
thousand U.S. dollars (US$27,500,000) in accordance with ARTICLE V below, some of which is related to Avistar’s attorneys’ fees. Such payment shall be made by check or wire transfer of immediately available funds to a bank account
designated by Avistar at execution. Such payment shall be the sole and exclusive payment required to be made by Polycom and its Subsidiaries in connection with this Settlement Agreement and shall be Avistar’s sole remuneration hereunder.

  
 ARTICLE V – CLOSING PROCESS 
  
 5.1 Closing. The closing of the transactions contemplated by this
Settlement Agreement and the Patent License Agreement (the “Closing”) shall take place on Friday, November 12, 2004 at 9:30 am Pacific Time at the offices of Wilson Sonsini Goodrich & Rosati, 650 Page Mill Road, Palo Alto, California,
or at such other place and time as the parties may mutually determine. 
  
 5.2 Deliveries at Closing. At the Closing, the parties shall execute and deliver this Settlement Agreement, the Patent License Agreement, and the stipulation and order in the form set forth in Exhibit A. Polycom’s counsel shall
hold the executed stipulation and order pending payment as described in Section 5.3. 
  

 5.3 Payment. At the Closing or within one (1) business day after the Closing, Polycom shall pay to
Avistar the amount set forth in Section 4.1 in the manner set forth therein. Upon such payment, the releases, licenses and covenants and all other rights and benefits of both parties under this Settlement Agreement and the Patent License Agreement
shall become fully effective. 
  
 5.4 Filing of Dismissal.
Within two (2) court days after the date of payment as described in Section 5.3, Polycom shall cause its counsel to file the executed stipulation and order delivered pursuant to Section 5.2. 
  
 ARTICLE VI – MISCELLANEOUS PROVISIONS 
  
 6.1 Representations and Warranties. 
  
 (a) Each of the parties hereto represents and warrants that
it has the right to grant the releases granted by such party under this Settlement Agreement. 
  
 (b) Each of the parties hereto represents and warrants that (i) it has the right to grant releases of the full scope set forth herein with
respect to all Patents owned by such party and its Subsidiaries as of the Effective Date, including all Patents asserted by such party or its Subsidiaries in the Litigation; (ii) no Third Party has any right to enforce or obtain damages for past
infringement of any Patents owned by such party or its Subsidiaries as of the Effective Date (including Patents asserted by such party or its Subsidiaries in the Litigation), (iii) neither such party nor any of its Subsidiaries has any parent,
affiliate or joint venture (other than such party or its Subsidiaries under this Settlement Agreement) who owns or controls any Patents as of the Effective Date; (iv) neither it nor any of its Subsidiaries has assigned or otherwise transferred to
any other Person any rights to any claims, counterclaims, causes of action, damages or other remedies relating to the Litigation; and (vi) neither it nor any of its Subsidiaries has assigned or otherwise transferred its rights to any Patents in the
one (1) year period prior to the Effective Date. 
  
 6.2
Confidentiality of Terms. Neither party shall disclose the terms of this Settlement Agreement without the prior written consent of the other party except: 
  
 (a) In the press releases as set forth in 6.3 below, or any republication of those press releases;

  
 (b) to Subsidiaries of the parties in
confidence; 
  
 (c) to any governmental body
having jurisdiction and specifically requiring such disclosure (in confidence to the extent allowed); 
  
 (d) in response to a valid subpoena or as otherwise may be required by law (in confidence to the extent allowed); 
  
 (e) to the extent required, for the purposes of disclosure
in connection with the Securities Exchange Act of 1934, as amended, the Securities Act of 1933, as amended, and any other reports filed with the Securities and Exchange Commission, or any other filings, reports or disclosures that may be required
under applicable laws or regulations, provided however, that in the event either party determines it is necessary to disclose any terms beyond those included in the 

  

 
press releases attached hereto as Exhibit B or that it is required to publicly file this Settlement Agreement or the Patent License Agreement, the disclosing
party agrees to use commercially reasonable efforts to receive confidential treatment for information deemed sensitive and shall give the other party reasonable prior notice of its intention to disclose such information; 
  
 (f) to a party’s accountants, legal counsel and other
financial and legal advisors, subject to obligations of confidentiality; 
  
 (h) as required during the course of litigation, subject to protective orders or other similar protections as applicable; or 
  
 (i) to a Third Party’s outside counsel in connection with a potential merger or acquisition by, of or with the party provided that
such disclosure shall be (i) on a strictly limited, need-to-know basis, (ii) when such transaction is reasonably certain to take place, and (iii) on terms applicable to the most confidential information disclosed by such party in connection with
such transaction provided such terms are at least as restrictive as set forth herein; 
  
 provided, however, that prior to any such disclosure pursuant to paragraphs (d) and/or (h) hereof, the party seeking to make such
disclosure shall notify the other party and take reasonable actions in an effort to minimize the nature and extent of such disclosure. 
  
 6.3 Press Releases. At approximately 5 AM Pacific Time on November 15, 2004, each party shall issue its corresponding press release regarding this
Settlement Agreement and the Patent License Agreement, the content of which is set forth in Exhibit B hereto. Except as expressly authorized in Section 6.2 hereunder, or in the Patent License Agreement, neither party shall issue any other press
release or other public communication regarding this Settlement Agreement or the Patent License Agreement without the prior written consent of the other party. 
  

6.4 Notices. All notices required or permitted to be given hereunder shall be in writing and shall be delivered by hand, or if dispatched by
prepaid air courier or by registered or certified airmail, postage prepaid, addressed as follows: 
  

			
	If to Avistar:	  	Avistar Communications Corporation
	 	  	Attn: Chief Financial Officer
	 	  	555 Twin Dolphin Drive
	 	  	Suite 360
	 	  	Redwood Shores, California 94065
		
	If to Polycom:	  	Polycom, Inc.
	 	  	Attn: General Counsel
	 	  	4750 Willow Road
	 	  	Pleasanton, CA 94588

  

			
	 with a copy to:
	  	 Polycom, Inc.

	 	  	 Attn: Chief Financial Officer

	 	  	 4750 Willow Road

	 	  	 Pleasanton, CA 94588

  
 Such notices shall be
deemed to have been served when received by addressee or, if delivery is not accomplished by reason of some fault of the addressee, when tendered for delivery. Either party may give written notice of a change of address and, after notice of such
change has been received, any notice or request shall thereafter be given to such party as above provided at such changed address. 
  
 6.5 Assignment. Neither party may assign this Settlement Agreement or any right or obligation under this Settlement Agreement without the prior
written consent of the other party, except to a successor-in-interest of all or substantially all of its business or assets, whether by sale, merger or otherwise. Subject to the foregoing, this Settlement Agreement shall be binding upon and inure to
the benefit of the parties and their permitted successors and assigns. 
  
 6.6 Governing Law. This Settlement Agreement and matters connected with the performance thereof shall be construed, interpreted, applied and governed in all respects in accordance with the laws of the United States of America and the
State of California, without reference to conflict of laws principles. 
  
 6.7 Dispute Resolution. If a dispute arises regarding this Settlement Agreement, or the interpretation, breach, termination or validity thereof, the senior management of both parties shall meet to attempt to resolve such disputes. If
the senior management cannot resolve the dispute, the parties agree to meet for one (1) day with an impartial mediator to attempt to resolve such dispute. If the dispute is not resolved by such mediation, then the parties agree that such dispute
shall be resolved by binding arbitration in San Francisco, California before three (3) arbitrators in accordance with the rules of the International Chamber of Commerce (“ICC”) in effect as of the Effective Date of this Settlement
Agreement. The parties, their representatives, other participants and arbitrators shall hold the existence, content and result of arbitration in confidence, except as otherwise required or advisable in connection with securities filings or otherwise
required by law. The award of the arbitrators may be entered in any court having jurisdiction thereof. This Section 6.7 shall not be construed as restricting or limiting either party’s ability to immediately assert a license or other defense in
any litigation or other proceeding against such party, such party’s Subsidiaries, or its or their products or the resellers, distributors or customers of such products, regardless of jurisdiction or venue. 
  
 6.8 Further Acts. Each party to this Settlement Agreement agrees to
perform any further acts and to cause its Subsidiaries to perform such further acts, and execute and deliver and to cause its Subsidiaries to execute and deliver any further documents that may be reasonably necessary to carry out the provisions of
this Settlement Agreement. 
  
 6.9 Severability. If any
provision of this Settlement Agreement is held to be illegal or unenforceable, such provision shall be limited or eliminated to the minimum extent necessary so that the remainder of this Settlement Agreement will continue in full force and effect
and be 

  

 
enforceable. The parties agree to negotiate in good faith an enforceable substitute provision for any invalid or unenforceable provision that most nearly
achieves the intent of such provision. 
  
 6.10 Entire
Agreement. This Settlement Agreement, together with the Patent License Agreement, embodies the entire understanding of the parties with respect to the subject matter hereof, and merge all prior discussions between them, and neither of the
parties shall be bound by any conditions, definitions, warranties, understandings, or representations with respect to the subject matter hereof other than as expressly provided herein. No oral explanation or oral information by either party hereto
shall alter the meaning or interpretation of this Settlement Agreement. 
  
 6.11 Modification; Waiver. No modification or amendment to this Settlement Agreement, nor any waiver of any rights, will be effective unless assented to in writing by the party to be charged, and the waiver of any breach or default
will not constitute a waiver of any other right hereunder or any subsequent breach or default. 
  
 6.12 Construction. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not be applied in the construction or interpretation of this Settlement Agreement.
As used in this Settlement Agreement, the words “include” and “including,” and variations thereof, will not be deemed to be terms of limitation, but rather will be deemed to be followed by the words “without
limitation.” The headings in this Settlement Agreement will not be referred to in connection with the construction or interpretation of this Settlement Agreement. 
  
 6.13 Counterparts. This Settlement Agreement may be executed in counterparts or duplicate originals, both of which
shall be regarded as one and the same instrument, and which shall be the official and governing version in the interpretation of this Settlement Agreement. This Settlement Agreement may be executed by facsimile signatures and such signatures shall
be deemed to bind each party as if they were original signatures. 
  
 [The remainder of this page has been intentionally left blank] 
  

 IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement to be signed below by their
respective duly authorized officers. 
  

									
	Avistar Communications Corporation	 	 	 	Polycom, Inc.
					
	 By:
	 	 /s/ William L. Campbell
	 	 	 	 By:
	 	 /s/ Michael R. Kourey

					
	 Name:
	 	 William L. Campbell
	 	 	 	 Name:
	 	 Michael R. Kourey

					
	 Title:
	 	 Vice Chairman & Chief Administrative Officer
	 	 	 	 Title:
	 	 CFO

					
	 Date:
	 	 11/12/04
	 	 	 	 Date:
	 	 11/12/04

  

			
	Collaboration Properties, Inc.
		
	 By:
	 	 /s/ William L. Campbell

		
	 Name:
	 	 William L. Campbell

		
	 Title:
	 	 President & CEO

		
	 Date:
	 	 11/12/04

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