Document:

Exhibit
10.1

AMENDED AND RESTATED LONG-TERM STOCK INCENTIVE PLAN

1.  PURPOSE. 
The Purposes of the Plan are to provide additional incentive to those
directors, officers and other employees of the Company and its Subsidiaries
whose substantial contributions are essential to the continued growth and
success of the Company’s business in order to strengthen their commitment to
the Company and its Subsidiaries, to motivate such officers and employees to
faithfully and diligently perform their assigned responsibilities and to
attract and retain competent and dedicated individuals whose efforts will
further the long-term growth and profitability of the Company. The purpose of
the Plan is also to secure for the Company and its stockholders the benefits of
the incentive inherent in increased common stock ownership by the members of
the Board who are not employees of the Company or any of its subsidiaries. To
accomplish such purposes, the Plan provides that the Company may grant
Incentive Stock Options, Nonqualified Stock Options, Restricted Stock Awards,
Performance Units or Stock Appreciation Rights.

 2. 
DEFINITIONS.  For purposes of this
Plan:

 (a) “Award” means a grant of Restricted Stock,
Performance Units or Stock Appreciation Rights, or any or all of them.

 (b) “Award Agreement” means the written
agreement between the Company and a Grantee evidencing the grant of an Award
and setting forth the terms and conditions thereof.

 (c) “Board” means the Board of Directors of
the Company.

 (d) “Cause” means the willful failure by an
Optionee or Grantee to perform his duties with the Company or with the
Subsidiary or the willful engaging in conduct, which is injurious to the
Company or any Subsidiary, monetarily or otherwise.

 (e) “Change in Capitalization” means any
increase, reduction, change or exchange of Shares for a different number or
kind of shares or other securities of the Company by reason of a
reclassification, re-capitalization, merger, consolidation, reorganization,
issuance of warrants or rights, stock dividend, stock split or reverse stock
split, combination or exchange of shares, repurchase of shares, change in
corporate structure or otherwise.

 (f) “Code” means the Internal Revenue Code of
1986, as amended.

 (g) “Committee” means a committee,
consisting of at least two directors of the Company, which is appointed by the
Board to administer the Plan and to perform the functions set forth herein;
provided, however, that if the Committee consists of less than the entire
Board, each member shall be a “non-employee director” within the meaning of
Exchange Act Rule 16b-3; provided, further, however, that to the extent
necessary for any Option or Award intended to qualify as performance—based
compensation under Section 162(m) of the Code to so qualify, each member of the
Committee shall be an “outside director” within the meaning of Section 162(m)
of the Code and the regulations promulgated thereunder.  Notwithstanding the preceding sentence, the
Board may, in its discretion, establish another committee and delegate to this
committee any or all of the authority and responsibility of the Committee with
respect to grants of Options or Awards to Eligible Participants who are not
named executive officers of the Company on the date such Options or Awards are
granted.  Such other committee may
consist of one or more directors.  To the
extent that the Board has delegated the authority and responsibility of the
Committee to such other committee, all references to the Committee in the Plan
shall be to such other committee.

 (h) “Company” means Axsys Technologies, Inc.,
a Delaware corporation.

 (i) “Disability” means the condition which
results when an individual has become permanently and totally disabled within
the meaning of Section 22(e)(3) of the Code.

 (j) “Eligible Participant” means any director,
officer or employee of the Company or a Subsidiary designated by the Committee
as eligible to receive Options or Awards subject to the conditions set forth
herein.

 (k) “Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 (l) “Fair Market Value” means the fair market
value of the Shares as determined by the Committee in its sole discretion;
provided, however, that (A) if the Shares are listed on a national securities
exchange, including without limitation the Nasdaq Global Select Market or The
Nasdaq Global Market or the Nasdaq Capital Market of the Nasdaq Stock Market (“Nasdaq”),
Fair Market Value on any date shall be the closing sales price for the Shares
(or the closing bid, if no sales were reported) on such date as such price is
officially reported on Nasdaq or as such price is quoted in the composite tape
of transactions on such exchange; or (B) if the Shares are admitted to
quotation on Nasdaq but selling prices are not reported, Fair Market Value on
any date shall be the average of the high bid and low asked prices on the date
of determination, or on the last day on which there are quoted prices prior to
the date of determination.

 (m) “Grantee” means a person to whom an Award
has been granted under the Plan.

 (n) “Incentive Stock Option” means an Option
that is intended to satisfy the requirements of Section 422 of the Code and is
designated an Incentive Stock Option at the time of grant.

 (o) “Named Executive Officers” means any
officer of the Company as defined by Section 16(a) of the Securities and
Exchange Act of 1934.

 (p) “Non-Employee Director” means any
director of the Company who is not an employee of the Company or any of its
Subsidiaries.

 (q) “Nonqualified Stock Option” means an
Option, which is designated at the time of grant as not constituting an
Incentive Stock Option.

 (r) “Option” means an Incentive Stock Option,
a Nonqualified Stock Option, or either or both of them.

 (s) “Option Agreement” means the written
agreement between the Company and an Optionee evidencing the grant of an Option
and setting forth the terms and conditions thereof.

 (t) “Optionee” means a person to whom an
Option has been granted under the Plan.

 (u) “Parent” means any corporation that, with
respect to the Company, is described in section 424(e) of the Code.

 (v) “Performance Unit” means a performance
unit granted under Section 9 of the Plan

 (w) “Plan” means the Amended and Restated
Long-Term Stock Incentive Plan as set forth in this instrument and as it may be
further amended from time to time.

 (x) “Restricted Stock” means Shares issued or
transferred to an Eligible Participant, which are subject to restrictions as
provided in Section 8 hereof.

 (y) “Shares” means the common stock, par value
$.01 per share, of the Company (including any new, additional or different
stock or securities resulting from a Change in Capitalization).

 (z) “Stock Appreciation Right” means a right
to receive all or some portion of the increase in the value of shares of Common
Stock as provided in Section 7 hereof.

 (aa) “Subsidiary” means any corporation that,
with respect to the Company, is described in Section 424(f) of the Code.

 (ab) “Successor Corporation” means a
corporation, or a Parent or Subsidiary thereof, which issues or assumes a stock
option in a transaction to which Section 424(a) of the Code applies.

 3. 
ADMINISTRATION.

 (a) The Plan shall be administered by the
Committee, which shall hold meetings at such times as may be necessary for the
proper administration of the Plan. The Committee shall keep minutes of its
meetings. A majority of the Committee shall constitute a quorum and a majority
of a quorum may authorize any action. No member of the Committee shall be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan, the Options or the Awards, and all members of
the Committee shall be fully indemnified and held harmless by the Company with
respect to any such action, determination or interpretation.

 (b) Subject to the express terms and
conditions set forth herein, the Committee shall have the power from time to
time:

 (1) to determine those Eligible Participants
to whom Options shall be granted under the Plan and the number of Shares
subject to Incentive Stock Options and/or Nonqualified Options to be granted to
each Eligible Participant and to prescribe the terms and conditions (which need
not be identical) of each Option, including the purchase price per share of
each Option;

 (2) to select those Eligible Participants to
whom Awards shall be granted under the Plan and to determine the number of
Performance Units, shares of Restricted Stock and/or Stock Appreciation Rights
to be granted pursuant to each Award, the terms and conditions of each Award,
including the restrictions or performance criteria relating to such units,
shares or rights, the purchase price per share, if any, of Restricted Stock,
the maximum value, if any, of the amount payable pursuant to each Performance
Unit and whether Stock Appreciation Rights will be granted alone or in
conjunction with an Option;

 (3) to construe and interpret the Plan and the
Options and Awards granted thereunder and to establish, amend and revoke rules
and regulations for the administration of the Plan, including, but not limited
to, correcting any defect or supplying any omission, or reconciling any
inconsistency in the Plan or in any Agreement, in the manner and to the extent
it shall deem necessary or advisable to make the Plan fully effective, and all
decisions and determinations by the Committee in the exercise of this power
shall be final and binding upon the Company or a Subsidiary, the Optionees and
the Grantees, as the case may be;

 (4) to determine the duration and purposes for
leaves of absence which may be granted to an Optionee or Grantee without
constituting a termination of employment or service for purposes of the Plan;
and

 (5) generally, to exercise such powers and to
perform such acts as are deemed necessary or advisable to promote the best
interest of the Company with respect to the Plan.

 4. 
STOCK SUBJECT TO PLAN.

 (a) The maximum number of Shares that may be
issued or transferred pursuant to Options and Awards under this Plan is
1,950,000 (or the number and kind of shares of stock or other securities which
are substituted for those Shares or to which those Shares are adjusted upon a
Change in Capitalization) and the Company shall reserve for the purposes of the
Plan, out of its authorized but unissued Shares or out of Shares held in the
Company’s treasury, or partly out of each, such number of Shares as shall be
determined by the Board.  The aggregated
number of shares actually issued or transferred by the Company upon the
exercise of Incentive Stock Options will not exceed 1,950,000.

 (b) Whenever any outstanding Option or portion
thereof expires, is cancelled or is otherwise terminated (other than by
exercise of the Option or any related Stock Appreciation Right), the shares of
Common Stock allocable to the unexercised portion of such Option may again be
the subject of Options and Awards hereunder.

 (c) Whenever any Shares subject to an Award or
Option are resold to the Company, or are forfeited for any reason pursuant to
the terms of the Plan, or any Shares are delivered to pay the exercise price of
an Option or to satisfy the withholding obligation with respect to an Option or
Award, any such Shares may again be the subject of Options and Awards
hereunder.  Upon payment in cash of the
benefit provided by any award granted under the Plan, any shares that were
covered by that Option Award will again be available for issue or transfer
hereunder.

 (d) An eligible participant may not be granted
Options and Awards in the aggregate in respect of more than 90,000 Shares per
calendar year.

 5. 
ELIGIBILITY.  Subject to the provisions
of the Plan, the Committee shall have full and final authority to select those
Eligible Participants who will receive Options and/or Awards; provided,
however, that no Eligible Participant shall receive any Incentive Stock Option
unless he is an employee of the Company or a Subsidiary at the time the
Incentive Stock Option is granted.

 6. 
STOCK OPTIONS.  The Committee may
grant Options in accordance with the Plan, the terms and conditions of which
shall be set forth in an Option Agreement. 
Each Option and Option Agreement shall be subject to the following
conditions:

 (a) PURCHASE PRICE. The purchase price, which
shall not be less than the Fair Market Value on the date of grant of the
Option, or the manner in which the purchase price is to be determined for
Shares under each Option shall be set forth in the Option Agreement.

 (b) DURATION. Options granted hereunder shall
be for such term as the Committee shall determine.  The Committee may, subsequent to the granting
of any Option, extend the term thereof. 
Notwithstanding the foregoing, no option will be exercisable more than
10 years from the date of the Option.

 (c) NON-TRANSFERABILITY. No Option granted
hereunder shall be transferable by the Optionee to whom granted otherwise than
by will or the laws of descent and distribution, and an Option may be exercised
during the life time of such Optionee only by the Optionee or his guardian or
legal representative.  The terms of such
Option shall be binding upon the beneficiaries, executors, administrators,
heirs and successors of the Optionee.

 (d) VESTING. Subject to Section 12(b) hereof,
each Option shall be exercisable in such installments (which need not be equal)
and at such times as may be designated by the Committee and set forth in the
Option Agreement.    Any grant of Options
may specify performance objectives that must be achieved as a condition to the
exercise of such Option.  To the extent
not exercised, installments shall accumulate and be exercisable, in whole or in
part, at any time after becoming exercisable, but not later than the date the
Option expires.  The Committee may
accelerate the exercisability of any Option or portion thereof at any time.

 (e) METHOD OF EXERCISE. The exercise of an
Option shall be made only by a written notice delivered in person or by mail to
the Secretary of the Company at the Company’s principal executive office,
specifying the number of Shares to be purchased and accompanied by payment
therefore and otherwise in accordance with the Option Agreement pursuant to which
the Option was granted.  The purchase
price for any Shares purchased pursuant to the exercise of an Option shall be
paid in full upon such exercise in cash, by check, or at the discretion of the
Committee and upon such terms and conditions as the Committee shall approve, by
transferring Shares to the Company. Any Shares transferred to the Company as
payment of the purchase price under an Option shall be valued at their Fair
Market Value on the day preceding the date of exercise of such Option. If requested
by the Committee, the Optionee shall deliver the Option Agreement evidencing
the Option and the Option Agreement evidencing any related Stock Appreciation
Right to the Secretary of the Company who shall endorse thereon a notation of
such exercise and return such agreement(s), to the Optionee. No less than 100
Shares may be purchased at any time upon the exercise of an Option unless the
number of Shares so purchased constitutes the total number of Shares then
purchasable under the Option.

 (f) RIGHTS OF OPTIONEES. No Optionee shall be
deemed for any purpose to be the owner of any Shares subject to any Option
unless and until (i) the Option shall have been exercised pursuant to the terms
thereof, (ii) 

the
Company shall have issued and delivered the shares to the Optionee, and (iii)
the Optionee’s name shall have been entered as a stockholder of record on the
books of the Company. Thereupon, the Optionee shall have full voting, dividend
and other ownership rights with respect to such Shares.

 (g) TERMINATION OF EMPLOYMENT. In the event
that an Optionee ceases to be employed by the Company or any Subsidiary, any
outstanding Options held by such Optionee shall, unless the Option Agreement
evidencing such Option provides otherwise, terminate on the earliest of the
following:

(1)
If the Optionee’s termination of employment is due to his death or Disability,
the Option (to the extent exercisable at the time of the Optionee’s termination
of employment) shall be exercisable for a period of one (1) year following such
termination of employment, and shall thereafter terminate;

(2)
If the Optionee’s termination of employment is by the Company or a Subsidiary
for Cause, the Option shall terminate on the date of the Optionee’s termination
of employment;

(3)  (a) If the Optionee’s termination of
employment is by the Company or any Subsidiary for any other reason (including
an Optionee’s ceasing to be employed by a Subsidiary as a result of the sale of
such Subsidiary or an interest in such Subsidiary), the Option (to the extent
exercisable at the time of the Optionee’s termination of employment) shall be
exercisable for a period of ninety (90) days following such termination of
employment, and shall thereafter terminate; and (b) If the Optionee’s
termination of employment is by the Optionee (other than as set forth in
paragraph (1) above) the Option (to the extent exercisable at the time of the
Optionee’s termination of employment) shall be exercisable for a period of ten
(10) days following such termination of employment and shall thereafter
terminate; and (c) If the Optionee’s employment terminates due to Disability
(as described in paragraph (1) above) or under circumstances described in
paragraph (3)(a) above, and the Optionee dies prior to the permissible period
of exercise for any outstanding Option then held by the Optionee, the Option
(to the extent exercisable at the time of the Optionee’s termination of
employment) shall be exercisable for a period of one (1) year following the
Optionee’s death, and shall thereafter terminate.

(4)  Notwithstanding the foregoing, in no event
will the Option be exercisable beyond the term of the Option.

Notwithstanding
the foregoing, the Committee may provide, either at the time an Option is
granted or thereafter, that the Option may be exercised after the periods
provided for in this Section 6(g), but in no event beyond the term of the
Option.

 (h) 
Subject to the terms of the Plan, the Committee may modify outstanding
Options or accept the surrender of outstanding Options (to the extent not
exercised) and grant new Options in substitution therefore.  Notwithstanding the foregoing, no
modification of an Option shall alter or impair any rights or obligations under
the Option without the Optionee’s consent.

 7. 
STOCK APPRECIATION RIGHTS.  The
Committee may, in its discretion, either alone or in connection with the grant
of an Option, grant Stock Appreciation Rights in accordance with the Plan, the
terms and conditions of which shall be set forth in an Award Agreement.  If granted in connection with an Option, a
Stock Appreciation Right shall cover the same Shares covered by the Option (or
such lesser number of Shares as the Committee may determine) and shall, except
as provided in this Section 7, be subject to the same terms and conditions as
the related Option.

(a)
TIME OF GRANT. A Stock Appreciation Right may be granted:

(1)
at any time if unrelated to an Option; or

(2)
if related to an Option at the time of grant.

(b)
STOCK APPRECIATION RIGHTS RELATED TO AN OPTION.

(i)
PAYMENT. A Stock Appreciation Right granted in connection with an Option shall
entitle the holder thereof, upon exercise of the Stock Appreciation Right or
any portion thereof, to receive payment of an amount computed pursuant to
Section 7(b)(iii).

(ii)
EXERCISE. A Stock Appreciation Right granted in connection with an Option shall
be exercisable at such time or times and only to the extent that the related
Option is exercisable, and will not be transferable except to the extent the
related Option may be transferable.  A
Stock Appreciation Right granted in connection with an Incentive Stock Option
shall be exercisable only if the Fair Market Value of a Share on the date of
exercise exceeds the purchase price specified in the related Incentive Stock
Option.

(iii)
AMOUNT PAYABLE. Except as otherwise provided in an Award Agreement (as
contemplated by Section 12, upon the exercise of a Stock Appreciation Right
related to an Option, the Grantee shall be entitled to receive an amount
determined by multiplying (A) the excess of the Fair Market Value of a Share on
the date of exercise of such Stock Appreciation Right over the per Share
purchase price under the related Option, by (b) the number of Shares as to
which such Stock Appreciation Right is being exercised.  Notwithstanding the foregoing, the Committee
may limit in any manner the amount payable with respect to any Stock
Appreciation Right by including such a limit in the Award Agreement evidencing
the Stock Appreciation Right at the time it is granted.

(iv)
TREATMENT OF RELATED OPTIONS AND STOCK APPRECIATION RIGHTS UPON EXERCISE. Upon
the exercise of a Stock Appreciation Right granted in connection with an
Option, the Option shall be canceled to the extent of the number of Shares as
to which the Stock Appreciation Right is exercised, and upon the exercise of an
Option granted in connection with a Stock Appreciation Right or the surrender
of such Option as may be provided for in any Option Agreement, the Stock
Appreciation Right shall be cancelled to the extent of the number of Shares as
to which the Option is exercised or surrendered.

(v)
CUMULATIVE EXERCISE OF STOCK APPRECIATION RIGHT AND OPTION. Not withstanding
Section 7(b)(iv), the Committee may provide, either at the time a Stock
Appreciation Right is granted in connection with a Nonqualified Stock Option or
thereafter during the term of the Stock Appreciation Right, that, upon exercise
of such Option or the surrender of the Option as may be provided for in any
Option Agreement, the Stock Appreciation Right shall automatically be deemed to
be exercised to the extent of the number of Shares as to which the Option is
exercised or surrendered.  In such event,
the Grantee shall be entitled to receive the amount described in Section
7(b)(iii) or, if otherwise provided for in the Award Agreement, as set forth
therein, in addition to the Shares acquired or cash received pursuant to the
exercise or surrender of the Option.  The
inclusion in an Award Agreement evidencing a Stock Appreciation Right of a
provision described in this Section 7(b)(v) may be in addition to and not in
lieu of the right to exercise the Stock Appreciation Right as otherwise
provided herein and in the Award Agreement.

(c)
STOCK APPRECIATION RIGHTS UNRELATED TO AN OPTION. The Committee may grant to
Eligible Participants Stock Appreciation Rights unrelated to Options. Stock
Appreciation Rights unrelated to Options shall contain such terms and
conditions as to exercisability, vesting (including the achievement of the
performance objectives) and duration as the Committee shall determine.  Except as otherwise provided in an Award
Agreement (as contemplated by Section 12), the amount payable upon exercise of
such Stock Appreciation Rights shall be determined in accordance with Section
7(b)(iii), except that “Fair Market Value of a Share on the date of the grant
of the Stock Appreciation Right” shall be substituted for “purchase price under
the related Option.”  No Stock
Appreciation Right unrelated to an Option will be exercised more than 10 years
from the date of a grant of such Stock Appreciation Right.

(d)
METHOD OF EXERCISE. Stock Appreciation Rights shall be exercised by a Grantee
only by a written notice delivered in person or by mail to the Secretary of the
Company at the Company’s principal executive office, specifying the number of
Shares with respect to which the Stock Appreciation Right is being
exercised.  If requested by the
Committee, the Grantee shall deliver the Award Agreement evidencing the Stock
Appreciation Right being exercised and the Option Agreement evidencing any
related Option to the Secretary of the Company who shall endorse thereon a
notation of such exercise and return such agreement(s) to the Grantee.

 

(e)
FORM OF PAYMENT. Payment of the amount determined under Sections 7(b)(iii) or
7(c), shall be made, at the sole discretion of the Committee, either (i) solely
in whole shares of Common Stock in a number determined at their Fair Market
Value on the date of exercise of the Stock Appreciation Right, (ii) solely in
cash, (iii) by delivery of a note or other security, or (iv) in a combination
of any of the foregoing.  If the
Committee decides to make full payment in Shares, and the amount payable
results in a fractional Share, payment for the fractional Share will be made in
cash.

8.  RESTRICTED STOCK.  The Committee may grant Awards of Restricted
Stock which shall be evidenced by an Award Agreement between the Company and
the Grantee. Each Award Agreement shall contain such restrictions, terms and
conditions as the Committee may require and (without limiting the generality of
the foregoing) such Award Agreements may require that an appropriate legend be
placed on Share certificates.  Awards of
Restricted Stock shall be subject to the following terms and provisions:

 (a) RIGHTS OF GRANTEE.

(i)
Shares of Restricted Stock granted pursuant to an Award hereunder shall be
issued in the name of the Grantee as soon as reasonably practicable after the
Award is granted and the purchase price, if any, is paid by the Grantee,
provided that the Grantee has executed an Award Agreement evidencing the Award,
an escrow agreement, appropriate stock powers and any other documents which the
Committee, in its absolute discretion, may require as a condition to the
issuance of such Shares.  If a Grantee
shall fail to execute the Award Agreement evidencing a Restricted Stock Award,
an escrow agreement or appropriate blank stock powers or shall fail to pay the
purchase price, if any, for the Restricted Stock, the Award shall be null and
void.  Shares issued in connection with a
Restricted Stock award shall be deposited together with the stock powers with
an escrow agent designated by the Committee. 
Except as restricted by the terms of the Award Agreement, upon delivery
of the Shares to the escrow agent, the Grantee shall have all of the rights of
a stockholder with respect to such Shares, including the right to vote the
Shares and to receive all dividends or other distributions paid or made with
respect to the Shares.

(ii)
If a Grantee receives any dividends or other distributions with respect to any
Shares which were awarded to him as Restricted Stock prior to the lapsing of
restrictions imposed upon such Shares, such dividends and distributions shall
be held by the escrow agent subject to the restrictions and obligations
(including forfeiture provisions) provided by this Plan. Any such dividends and
distributions shall be held by the escrow agent for the account of the Grantee
prior to the earlier of (i) the lapsing of restrictions imposed upon such
Shares and (ii) the forfeiture of such Shares; and, upon the lapsing of such
restrictions, there shall be credited to the Grantee interest at a rate to be
determined by the Committee on any cash dividend paid thereon for the period
held by the escrow agent pursuant hereto.

(b)
NON-TRANSFERABILITY. Until any restrictions upon the Shares of Restricted Stock
awarded to a Grantee shall have lapsed in the manner set forth in Section 8(c),
such Shares shall not be sold, transferred or otherwise disposed of and shall
not be pledged or otherwise hypothecated, nor shall they be delivered to the
Grantee.  Upon the termination of
employment of the Grantee, all of such Shares with respect to which
restrictions have not lapsed shall be resold by the Grantee to the Company at
the same price, if any, paid by the Grantee for such Shares or shall be
forfeited and automatically transferred to and reacquired by the Company at no
cost to the Company if no purchase price had been paid for such Shares.  The Committee may also impose such other
restrictions and conditions on the Shares as it deems appropriate.

(c)
LAPSE OF RESTRICTIONS.

(i)
Restrictions upon Shares of Restricted Stock awarded hereunder shall lapse at
such time or times and on such terms, conditions and satisfaction of performance
objectives (as described in Section 9(a)) as the Committee may determine;
provided, however, that the restrictions upon such Shares shall lapse only if
the Grantee on the date of such lapse is then and has continuously been an
employee or director, as applicable, of the Company or a Subsidiary from the
date the Award was granted.

 

(ii)
In the event of termination of employment or directorship, as applicable, as a
result of the death or Disability of a Grantee, the Committee, in its absolute
discretion, may determine that the restrictions upon some or all Shares of
Restricted Stock awarded to the Grantee shall thereupon immediately lapse.  The Committee may also decide at any time, in
its absolute discretion and on such terms and conditions as it deems appropriate,
to remove or modify the restrictions upon Shares of Restricted Stock awarded
hereunder.

(d)
DELIVERY OF SHARES. Upon the lapse of the restrictions on Shares of Restricted
Stock awarded hereunder, the Committee shall cause a stock certificate to be
delivered to the Grantee with respect to such Shares, free of all restrictions.

9.  PERFORMANCE UNITS.  The Committee may grant Performance Units,
the terms and conditions of which shall be set forth in an Award Agreement
between the Company and the Grantee. Each Performance Unit shall represent the
right to receive a Share, or a cash payment equal to the Fair Market Value
thereof, contingent upon the Company’s attainment of specified performance
objectives within a specified award period. 
Each Award Agreement shall specify the number of the Performance Units
to which it relates, the performance objectives which must be satisfied in
order for the Performance Units to vest, and the award period within which such
objectives must be satisfied.

(a)
PERFORMANCE OBJECTIVES. Performance objectives relating to any Option or Award
may be expressed in terms of (a) net earnings or net worth, (b) return on
equity or assets, (c) earnings per Share, (d) Share price, (e) pre-tax profits,
(f) gross revenues, (g) EBITDA, (h) dividends, (i) market share or market
penetration or (j) any combination of the foregoing, and may be determined
before or after accounting changes, special charges, foreign currency effects,
acquisitions, divestitures or other extraordinary events.  Performance objectives may be absolute or
relative to the performance of other companies.    Each grant may specify in respect of such
performance objectives, a minimum acceptable level of achievement and will set
forth the formula for determining the number of Options or Awards that will be
earned if performance is at or above the minimum level but falls short of full
achievement of the specified performance objectives.

(b)
VESTING AND FORFEITURE. A Grantee shall become vested with respect to the
Performance Units to the extent that the performance objectives set forth in
the Award Agreement are satisfied within the award period.  Subject to the terms of any Award Agreement
(as contemplated by Section 12 hereof), if the specified performance objectives
are not satisfied within the award period, the Grantee’s rights with respect to
the Performance Units shall be forfeited.

(c)
PAYMENT OF AWARDS. Subject to the terms of any Award Agreement (as contemplated
by Section 12), payments to Grantees in respect of vested Performance Units
shall be made within 2 weeks after the availability of audited financial
statements for the award period to which such Award relates but in no event
later than 2 1⁄2 months after the end of the period; provided, however, that
prior to the vesting, payment, settlement or lapsing of any restrictions with
respect to any Performance Unit intended to qualify as performance-based
compensation under Section 162(m) of the Code, the Committee shall certify in
writing that the applicable performance objectives have been satisfied.  Such payments may be made entirely in Shares,
entirely in cash, or in a combination of Shares and cash, in each case as the
Committee shall determine.  Except as
provided in the terms of any Award Agreement (as contemplated by Section 12),
if payment is made in the form of cash, the amount payable in respect of any
Share shall be equal to the Fair Market Value of such Share on the last day of
the award period.

(d)
TERMINATION OF EMPLOYMENT. In the event that a Grantee ceases to be employed by
the Company or a Subsidiary prior to the expiration of an award period for any
reason, any nonvested Performance Units previously awarded to said Eligible
Participant shall be forfeited unless the Committee in its discretion determines
that some part or all of said Performance Units shall continue in effect under
the Plan to the extent the applicable performance objectives are satisfied
within the award period.

(e)
NON-TRANSFERABILITY. No amounts payable under this Plan in respect of Performance
Units shall be transferable by the Grantee otherwise than by will or by the
laws of descent and distribution provided that the Grantee may designate a
beneficiary to receive such amounts in the event of the Grantee’s death.

 

10.  LOANS.

(a)
To the extent permitted by law and at the discretion of the Committee the
Company or any Subsidiary may make loans to a Grantee or Optionee in connection
with the purchase of Shares pursuant to an Award or in connection with the
exercise of an Option, subject to the following terms and conditions and such
other terms and conditions not inconsistent with the Plan including the rate of
interest, if any, as the Committee shall impose from time to time.

(b)
No loan made under the Plan shall exceed the sum of (i) the aggregate purchase
price payable pursuant to the Option or Award with respect to which the loan is
made plus (ii) the amount of the reasonably estimated income taxes payable by
the Optionee or Grantee with respect to the Option or Award. In no event may any
such loan exceed the Fair Market Value, at the date of exercise, of any such
Shares.

(c)
No loan shall have an initial term exceeding ten (10) years; provided, that
loans under the Plan shall be renewable at the discretion of the Committee; and
provided, further, that the indebtedness under each loan shall become due and
payable, as the case may be, on a date no later than (i) one (1) year after
termination of the Optionee’s or Grantee’s employment due to death, retirement
or Disability, or (ii) the date of termination of the Optionee’s or Grantee’s
employment for any reason other than death, retirement or Disability.

(d)
Loans under the Plan may be satisfied by an Optionee or Grantee, as determined
by the Committee, in cash or, with the consent of the Committee, in whole or in
part by the transfer to the Company of Shares whose Fair Market Value on the
date of such payment is equal to the cash amount due and payable under such
loans.

(e)
A loan shall be secured by a pledge of Shares with a Fair Market Value of not
less than the principal amount of the loan. After partial repayment of a loan,
pledged Shares no longer required as security may, at the discretion of the
Committee, be released to the Optionee or Grantee.

(f)
Every loan shall meet all applicable laws, regulations and rules of the Federal
Reserve Board and any other governmental agency having jurisdiction.

11.  ADJUSTMENT UPON CHANGES IN CAPITALIZATION.

(a)
In the event of a Change in Capitalization, the Committee shall conclusively
determine the appropriate adjustments, if any, to the maximum number and class
of shares of stock with respect to which Options or Awards may be granted under
the Plan, the number and class of shares or units as to which Options or Awards
may be granted under the Plan, the number and class of shares or units as to
which Options or Awards have been granted under the Plan, and the purchase
price therefor, if applicable.

(b)
Any such adjustment in the Shares or other securities subject to outstanding
Incentive Stock Options (including any adjustments in the purchase price) shall
be made in such manner as not to constitute a modification as defined by
Section 424(h)(3) of the Code and only to the extent otherwise permitted by
Section 422 and 424 of the Code.

(c)
If, by reason of a Change in Capitalization, a Grantee of an Award shall be
entitled to new, additional or different shares of stock, securities or
Performance Units (other than rights or warrants to purchase securities), such
new additional or different shares shall thereupon be subject to all of the
conditions, restrictions and performance criteria which were applicable to the
Shares or units pursuant to the Award prior to such Change in Capitalization.

12.  EFFECT OF CERTAIN TRANSACTIONS.

(a)
In the event of (i) a merger or consolidation or (ii) the sale or disposition
of all or substantially all of the Company’s assets, the Company shall have the
authority to make provision in connection with such transaction (x) for the
assumption of Options or Awards theretofore granted under the Plan, or the
substitution for such Options or Awards of new options or awards of the
Successor Corporation, with appropriate adjustment as to 

 

the
number and kind of shares and the purchase price for shares thereunder, or (y)
for the surrender of outstanding Options and Awards and the payments of cash in
consideration therefor at their fair market value.

 (b) Except as otherwise determined by the
Committee at the time of grant of an Option or Award, upon a Change in Control
(as defined below), all outstanding Options and Stock Appreciation Rights shall
become vested and exercisable; all restrictions on Restricted Stock
shall lapse, all performance
goals shall be deemed achieved at target levels and all other terms and
conditions are met; and all Performance Units shall be delivered.  The Committee may, in its sole discretion,
provide or agree to provide for payments in consideration for the exercise of,
surrender or repurchase of an Option or Award (at such times and in such
amounts determined by the Committee in its sole discretion, which amounts, in
the case of a Change in Control, may be based upon the highest price per share
paid in the transaction even if greater than the Fair Market Value at the time
of exercise, surrender or repurchase). 
Any such determination by the Committee may be set forth in the
applicable Option Agreement, Award Agreement or otherwise.  With respect to Options and Awards intended
to qualify as performance based compensation under Section 162(m) of the Code,
the Committee shall set forth in the applicable Option Agreement or Award
Agreement any terms as to acceleration of the exercisability or vesting of the
Option or Award (including, but not limited to, acceleration upon the
occurrence of a Change in Control (as defined in the applicable Option
Agreement or Award Agreement)).

A “Change in Control”
shall mean the occurrence of any of the following:

(i)            An acquisition (other than directly
from the Company) of any Shares or other voting securities of the Company entitled
to vote generally for the election of directors (the “Voting Securities”) by
any “Person” (as the term “person” is used for purposes of Section 13(d) or
14(d) of the Exchange Act), immediately after which such Person has “Beneficial
Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of fifty percent or more of the then outstanding Shares or the combined
voting power of the Company’s then outstanding Voting Securities; provided,
however, in determining whether a Change in Control has occurred, Shares or
Voting Securities which are acquired in a Non-Control Acquisition (as
hereinafter defined) shall not constitute an acquisition which would cause a
Change in Control.  A “Non-Control
Acquisition” shall mean an acquisition by (i) an employee benefit plan (or a
trust forming a part thereof) maintained by (A) the Company or (B) any
corporation or other Person of which a majority of its voting power or its
voting equity securities or equity interest is owned, directly or indirectly,
by the Company (a “Subsidiary”), (ii) the Company or its Subsidiaries, (iii)
any Person in connection with a Non-Control Transaction (as hereinafter
defined) or (iv) an Affiliate;

(ii)           The individuals who, as of the date
of this agreement, are members of the Board (the “Incumbent Board”), cease for
any reason to constitute at least a majority of the members of the Board;
provided, however, that if the election, or nomination for election by the
Company’s stockholders, of any new director was approved by a vote of at least
two-thirds of the Incumbent Board, such new director shall, for purposes of
this Agreement, be considered a member of the Incumbent Board; provided
further, however, that no individual shall be considered a member of the
Incumbent Board if such individual initially assumed office as a result of
either an actual or threatened “Election Contest” (as described in Rule 14a-11
promulgated under the Exchange Act) or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board (a “Proxy
Contest”) including by reason of any agreement intended to avoid or settle any
Election Contest or Proxy Contest; or

(iii)          The consummation of:

(A)  A merger, consolidation, reorganization or
other business combination with or into the Company or in which securities of
the Company are issued, unless such merger, consolidation, reorganization or
other business combination is a “Non-Control Transaction.”  A “Non-Control Transaction” shall mean a
merger, consolidation, reorganization or other business combination with or
into the Company or in which securities of the Company are issued where:

(1)   the stockholders of the Company, immediately
before such merger, consolidation, reorganization or other business combination
own directly or indirectly immediately following such merger, consolidation,

 

reorganization or other
business combination, at least fifty percent of the combined voting power of
the outstanding voting securities of the corporation resulting from such merger
or consolidation, reorganization or other business combination (the “Surviving
Corporation”) in substantially the same proportion as their ownership of the
Voting Securities immediately before such merger, consolidation,
reorganization, or other business combination,

(2)   the individuals who were members of the
Incumbent Board immediately prior to the execution of the agreement providing
for such merger, consolidation, reorganization or other business combination
constitute at least two-thirds of the members of the board of directors of the
Surviving Corporation, or a corporation beneficially directly or indirectly
owning a majority of the combined voting power of the outstanding voting
securities of the Surviving Corporation, and

(3)   no Person other than (i) the Company, (ii)
any Subsidiary, (iii) any employee benefit plan (or any trust forming a part
thereof) that, immediately prior to such merger, consolidation, reorganization
or other business combination was maintained by the Company, the Surviving
Corporation, or any Subsidiary, or (iv) any Person who, immediately prior to such
merger, consolidation, reorganization or other business combination had
Beneficial Ownership of fifty percent or more of the then outstanding Voting
Securities or common stock of the Company, has Beneficial Ownership of fifty
percent or more of the combined voting power of the Surviving Corporation’s
then outstanding voting securities or its common stock.

(B)   A complete liquidation or dissolution of the
Company; or

(C)   The sale or other disposition of all or
substantially all of the assets of the Company to any Person (other than (i)
any such sale or disposition that results in at least fifty percent of the
Company’s assets being owned by a Subsidiary or Subsidiaries or (ii) a
distribution to the Company’s stockholders of the stock of a Subsidiary or any
other assets); provided, however, that no transaction or series of transactions
by which Stephen W. Bershad, or any Person in which Stephen W. Bershad has
Beneficial Ownership, directly or indirectly, of 25 percent of the outstanding
ownership interests or voting power, acquires fifty percent or more of the then
outstanding Shares or the combined voting power of the Company’s then
outstanding Voting Securities shall constitute a Change in Control for purposes
of this Agreement (regardless of the form of transaction or series of
transactions by which such acquisition occurs (including, without limitation,
any acquisition described in clause (a) hereof or any merger or other
transaction described in clause (c) hereof)).

Notwithstanding the
foregoing, a Change in Control shall not be deemed to occur solely because any
Person (the “Subject Person”) acquired Beneficial Ownership of more than the
permitted amount of the then outstanding Shares or Voting Securities as a
result of the acquisition of Shares or Voting Securities by the Company which,
by reducing the number of Shares or Voting Securities then outstanding,
increases the proportional number of shares Beneficially Owned by the Subject
Person, provided that if a Change in Control would occur (but for the operation
of this sentence) as a result of the acquisition of Shares or Voting Securities
by the Company, and after such share acquisition by the Company, the Subject
Person becomes the Beneficial Owner of any additional Shares or Voting
Securities which increase the percentage of the then outstanding Shares or
Voting Securities Beneficially Owned by the Subject Person, then a Change in
Control shall occur.

13.  RELEASE OF FINANCIAL INFORMATION.  A copy of the Company’s annual report to
stockholders shall be delivered to each Optionee and Grantee at the time such
report is distributed to the Company’s stockholders.  Upon request, the Company shall furnish to
each Optionee and Grantee a copy of its most recent annual report and each
quarterly report and current report filed under the Exchange Act, since the end
of the Company’s prior fiscal year.

14.  TERMINATION AND AMENDMENT OF THE PLAN.

(a)
The Plan shall terminate on August 31, 2011 and no Option or Award may be
granted thereafter.  The Board may sooner
terminate or amend the Plan at any time, and from time to time and in any
manner provided, however, that any amendment which must be approved by the
stockholders of the Company in order to comply with applicable law or the rules
of the NASDAQ Stock Market or, if the Common Shares are not traded under 

the
NASDAQ Stock Market, the principal national securities exchange upon which the
Common Shares are traded or quoted, will not be effective unless and until such
approval has been obtained.  Except as
provided in Sections 11 and 12 hereof, rights and obligations under any Option
or Award granted before any amendment of the Plan shall not be altered or
impaired by such amendment, except with the consent of the Optionee or Grantee,
as the case may be.

(b)
Neither the Board nor the
Committee will, without the further approval of the shareholders of the
Company, authorize the amendment of any outstanding Option or Stock
Appreciation Right to reduce the purchase price of the Option or Stock
Appreciation Rights, as applicable. Furthermore, no Option or Stock
Appreciation Right will be cancelled and replaced with awards having a lower
purchase price of the Option or Stock Appreciation Rights without further
approval of the shareholders of the Company. This Section 14(a) is intended
to prohibit the repricing of “underwater” Options and Stock Appreciation Rights
and will not be construed to prohibit the adjustments provided for in
Section 11 of this Plan.

15.  LIMITATION OF LIABILITY.  As illustrative of the limitations of liability
of the Company, but not intended to be exhaustive thereof, nothing in the Plan
shall be construed to:

(a)
give any person any right to be granted an Option or Award other than at the
sole discretion of the Committee;

(b)
give any person any rights whatsoever with respect to Shares except as
specifically provided in the Plan;

(c)
limit in any way the right of the Company or a Subsidiary to terminate the
employment of any person at any time; or

(d)
be evidence of any agreement or understanding, expressed or implied, that the
Company or any Subsidiary will employ any person in any particular position at
any particular rate of compensation or for any particular period of time.

16.  REGULATIONS AND OTHER APPROVALS; GOVERNING
LAW.

(a)
This Plan and the rights of all persons claiming any interest hereunder shall
be construed and determined in accordance with the laws of the State of
Delaware without giving effect to the choice of law principles thereof, except
to the extent that such law is preempted by federal law.

(b)
The obligation of the Company to sell or deliver Shares with respect to Options
and Awards granted under the Plan shall be subject to all applicable laws,
rules and regulations, including all applicable federal and state securities
laws, and the obtaining of all such approvals by governmental agencies as may
be deemed necessary or appropriate by the Committee.

(c)
Except as otherwise provided in Section 15, the Board may make such changes as
may be necessary or appropriate to comply with the rules and regulations of any
government authority, or to obtain for Eligible Participants granted Incentive
Stock Options the tax benefits under the applicable provisions of the Code and
regulations promulgated thereunder.

(d)
Each Option and Award is subject to the requirement that, if at any time the
Committee determines, in its absolute discretion, that the listing,
registration or qualification of Shares issuable pursuant to the Plan is
required by any securities exchange or under any state or federal law, or the
consent or approval of any governmental regulatory body is necessary or
desirable as a condition of, or in connection with, the grant of an Option or
the issuance of Shares, no Options shall be granted or payment made or Shares
issued, in whole or in part, unless listing, registration, qualification,
consent or approval has been effected or obtained free of any conditions as
acceptable to the Committee.

(e)
In the event that the disposition of Shares acquired pursuant to the Plan is
not covered by a then current registration statement under the Securities Act
of 1933, as amended, and is not otherwise exempt from such 

 

registration,
such Shares shall be restricted against transfer to the extent required by the
Securities Act of 1933, as amended, or regulations thereunder, and the
Committee may require any individual receiving Shares pursuant to the Plan, as
a condition precedent to receipt of such Shares (including upon exercise of an
Option), to represent to the Company in writing that the Shares acquired by
such individual are acquired for investment only and not with a view to
distribution.

17.  MISCELLANEOUS.

(a)
MULTIPLE AGREEMENTS. The terms of each Option or Award may differ from other
Options or Awards granted under the Plan at the same time, or at some other
time.  The Committee may also grant more
than one Option or Award to a given Eligible Participant during the term of the
Plan, either in addition to, or in substitution for, one or more Options or Awards
previously granted to that Eligible Participant.  The grant of multiple Options and/or Awards
may be evidenced by a single Agreement or multiple Agreements, as determined by
the Committee.

(b)
WITHHOLDING OF TAXES. The Company shall have the right to deduct from any
distribution of cash to any Optionee or Grantee an amount equal to the federal,
state and local income taxes and other amounts required by law to be withheld
with respect to any Option or Award. 
Notwithstanding anything to the contrary contained herein, if any
Optionee or Grantee is entitled to receive Shares upon exercise of an Option or
pursuant to an Award, the Company shall have the right to require such Optionee
or Grantee, prior to the delivery of such Shares, to pay to the Company the
amount of any federal, state or local income taxes and other amounts which the
Company is required by law to withhold.

(c)
DESIGNATION OF BENEFICIARY. Each Optionee and Grantee may, with the consent of
the Committee, designate a person or persons to receive in the event of his/her
death, any Option or Award or any amount payable pursuant thereto, to which
he/she would then be entitled.  Such
designation will be made upon forms supplied by and delivered to the Company
and may be revoked by the Optionee or Grantee in writing.  If an Optionee or Grantee fails effectively
to designate a beneficiary, then his/her estate will be deemed to be the
beneficiary.

18.  INTERPRETATION.

(a)
RULE 16B-3. The Plan is intended to comply with Exchange Act Rule 16b-3 and the
Committee shall interpret and administer the provisions of the Plan or any
Option Agreement or Award Agreement in a manner consistent therewith.  Any provisions inconsistent with such Rule
shall be inoperative and shall not affect the validity of the Plan.  The Board is authorized to amend the Plan and
to make any such modifications to Option Agreements or Award Agreements to
comply with Exchange Act Rule 16b-3, as it may be amended from time to time,
and to make any other such amendments or modifications deemed necessary or
appropriate to better accomplish the purposes of the Plan in light of any
amendments made to Exchange Act Rule 16b-3.

(b)
SECTION 162(M) OF THE CODE. Unless otherwise expressly stated in the relevant
Option Agreement or Award Agreement, each Option, Stock Appreciation Right and
Performance Unit granted under the Plan to a named executive officer of the
Company is intended to be performance-based compensation within the meaning of
Section 162(m)(4)(c) of the Code (except that, upon a Change in Control (as
defined in the applicable Option Agreement or Award Agreement), payment of an
Option or Award to an Eligible Participant who remains a “covered employee”
with respect to such payment within the meaning of Section 162(m)(3) of the
Code may not qualify as performance-based compensation).  The Committee shall not be entitled to
exercise any discretion otherwise authorized hereunder with respect to such
Options and Awards if the ability to exercise such discretion or the exercise
of such discretion itself would cause the compensation attributable to such
Options and Awards to fail to qualify as performance-based compensation.  Notwithstanding anything to the contrary in
the Plan, the provisions of the Plan may at any time be bifurcated by the Board
or the Committee in any manner so that certain provisions of the Plan or any
Option or Award intended (or required in order) to satisfy the applicable
requirements of Section 162(m) of the Code are only applicable to persons whose
compensation is subject to Section 162(m).

 

19.  EFFECTIVE DATE.  The effective date of the Plan shall be the
date of its adoption by the Board, subject only to the approval by the
affirmative vote of a majority of the votes eligible to be cast at a meeting of
stockholders of the Company to be held within twelve (12) months of such
adoption.

20.  AWARD AND OPTION
GRANTS TO NON-EMPLOYEE DIRECTORS.

(a) The Board may, from time to time, upon such
terms and conditions and in such amounts as it may determine, authorize the
granting to Non-Employee Directors Options to purchase shares of Common
Stock, SARs, Restricted Stock and Performance Units.  Each grant of an Award to a
Non-Employee Director will be upon such terms and conditions as approved by the
Board.  If a Non-Employee Director
subsequently becomes an employee of the Company or a Subsidiary while remaining
a member of the Board, any Award or Option held under the Plan by such
individual at the time of such commencement of employment will not be affected
thereby.

(b) TERMINATION OF DIRECTORSHIP.

(i)            In the event that
an Optionee ceases to be a Non-Employee Director of the Company, any
outstanding Options held by such Optionee shall terminate as follows:

(A)          If the Optionee’s termination of
directorship is due to his death or Disability, the Option (to the extent exercisable
at the time of the Optionee’s termination of directorship) shall be exercisable
for a period of one (1) year following such termination of directorship, and
shall thereafter terminate;

(B)           If the Optionee’s
termination of directorship is by the Company for Cause, the Option shall
terminate on the date of the Optionee’s termination of directorship;

(C)           If the Optionee’s
directorship terminates for any other reason, the Option (to the extent
exercisable at the time of the Optionee’s termination of directorship) shall be
exercisable for a period of ninety (90) days following such termination of
directorship, and shall thereafter terminate; and

(D)          If the Optionee’s
directorship terminates under circumstances described in paragraph (iii) above,
and the Optionee dies prior to the permissible period of exercise for any
outstanding Option then held by the Optionee, the Option (to the extent
exercisable at the time of the Optionee’s termination of directorship) shall be
exercisable for a period of one (1) year following the Optionee’s death, and
shall thereafter terminate.

(ii)           In the event that a
Grantee ceases to be a Non-Employee Director of the Company, all Shares of
Restricted Stock with respect to which restrictions have not lapsed shall be
resold by the Grantee to the Company at the same price, if any, paid by the
Grantee for such Shares or shall be forfeited and automatically transferred to
and reacquired by the Company at no cost to the Company if no purchase price
had been paid for such Shares.

(iii)          In the event that a Grantee ceases to be a
Non-Employee Director of the Company prior to the expiration of an award period
for any reason, any nonvested Performance Units previously awarded to said
Eligible Participant shall be forfeited unless the Committee in its discretion
determines that some part or all of said Performance Units shall continue in
effect under the Plan to the extent the applicable performance objectives are satisfied within
the award period.

COMPLIANCE
WITH SECTION 409A OF THE CODE.   To the
extent applicable, it is intended that this Plan and any grants made hereunder
comply with the provisions of Section 409A of the Code.  The Plan and any grants made hereunder shall
be administered in a manner consistent with this intent, and any provision that
would cause the Plan or any grant made hereunder to fail to satisfy Section
409A of the Code shall have no force and effect until amended to comply with
Section 409A of the Code (which amendment may be retroactive to the extent
permitted by Section 409A of the Code and may be made by the Company without
the consents of Participants).  Any
reference in this Plan to Section 409A of the Code will also include any
proposed, temporary or final regulations, or any other guidance, promulgated
with respect to such Section by the U.S. Department of the Treasury or the
Internal Revenue Service.Exhibit 10.20

PATENT LICENSE AGREEMENT

This Patent License Agreement (this “Agreement”)
is entered into as of February 15, 2007 (the “Effective Date”) between
and among Collaboration Properties, Inc., a Nevada corporation, having offices
at 555 Twin Dolphin Drive, Redwood Shores, California 94065  (“CPI”),
Avistar Communications Corporation, a Delaware corporation, having offices at
555 Twin Dolphin Drive, Redwood Shores, California 94065 (“ACC”) (CPI
and ACC are collectively “Avistar”), Tandberg ASA, a Norwegian
corporation, having offices at Philip Pedersens vei 20, 1366 Lysaker, Norway (“Tandberg
ASA”), Tandberg Telecom AS a Norwegian corporation, having offices at
Philip Pedersens vei 20, 1366 Lysaker, Norway (“Tandberg Telecom”),
Tandberg, Inc. a Delaware corporation, having offices at 1860 Michael Faraday
Dr., Suite 250, Reston, VA 20190 (“Tandberg, Inc.”) (Tandberg ASA,
Tandberg Telecom and Tandberg, Inc. are collectively “Tandberg”).  Tandberg, on the one hand, and Avistar, on
the other hand, are each a “Party” and collectively the “Parties.”

RECITALS

WHEREAS, the Parties are presently involved in the Lawsuits, in which
it has been asserted that (i) ACC infringes certain claims of U.S. Patent Nos.
6,621,515; 6,590,603; and 6,584,077, and with respect to which ACC has asserted
affirmative defenses and counterclaims alleging invalidity, unenforceability
and/or non-infringement, and (ii) Tandberg ASA and Tandberg, Inc. infringe
certain claims of U.S. Patent Nos. 5,896,500; 6,212,547; and 5,867,654, and with
respect to which Tandberg ASA and Tandberg, Inc. have asserted affirmative
defenses and counterclaims alleging invalidity, unenforceability and/or
non-infringement;

WHEREAS, Tandberg denies that it does now or has ever committed any act
that would entitle Avistar, under the law of any jurisdiction anywhere in the
world, to any of the relief Avistar is seeking in the Lawsuit against Tandberg;

WHEREAS, Avistar denies that it does now or has ever committed any act
that would entitle Tandberg, under the law of any jurisdiction anywhere in the
world, to any of the relief Tandberg is seeking in the Lawsuit against Avistar;

WHEREAS, the Parties dispute the infringement, validity and
enforceability of the Licensed Patents;

WHEREAS, the Parties desire to avoid the time and expense of
litigation, and in compromise of the disputed claims, wish to fully settle the
Lawsuits and prevent future litigation concerning the Licensed Products, upon
the terms and subject to the conditions set forth below;

NOW, THEREFORE, in consideration of the mutual
covenants, agreements and undertakings set forth herein, the parties agree as
follows:

[***] Portions of this exhibit have been omitted
pursuant to a request for confidential treatment filed pursuant to Rule 24-b-2
promulgated under the Securities Exchange Act of 1934, as amended, and the
omitteed portions represented by [***] have been separately filed with the
Securities and Exchange Commission.

 1
 

1.             Definitions

The following capitalized
terms used in this Agreement shall have the following meanings.  The use of singular shall include the plural
and vice versa, where appropriate:

1.1                                 “Avistar” shall
have the meaning given to this term in the recitals.

1.2                                 “Avistar Licensed
Products” shall mean Avistar’s Existing Products and Follow On Products,
which are sold by Avistar or its Subsidiaries, or which are manufactured by or
for Avistar or its Subsidiaries and which, absent the license granted to
Avistar and its Subsidiaries hereunder, would allegedly infringe, directly or
indirectly, a claim of any of the Tandberg Licensed Patents.  For the avoidance of doubt, to the extent
they allegedly infringe any claim of any of the Tandberg Licensed Patents,
Avistar Licensed Products include Existing Products and Follow On Products
thereto.

1.3                                 “Change of Control”
means a transaction or series of related transactions (other than a transaction
or series of related transactions effected solely for the purposes of changing
the form or jurisdiction of organization of an entity, or a pledge of assets
pursuant to a credit agreement with an unrelated bank, bank group or other
financial institution) in which either (i) a party consolidates or merges with
or into another Person, or sells, assigns, conveys, transfers, leases or
otherwise disposes of all or substantially all of its assets, or any Person
consolidates with, or merges with or into, a party, in each case unless the
direct and indirect holders of aggregate Voting Power of the party immediately
prior to the transaction or series of related transactions will hold, directly
or indirectly, more than fifty percent (50%) of the aggregate Voting Power of
the surviving or transferee Person immediately after the transaction or series
of related transactions; or (ii) any Person or “group” (as such term is used in
Rule 13d-5 under the United States Securities Exchange Act of 1934) is or
becomes, or has the right to become, the beneficial owner, directly or
indirectly, of more than fifty percent (50%) of the total aggregate Voting
Power of a party.  Notwithstanding the
foregoing, a transaction or series of related transactions shall not constitute
a Change of Control to the extent that more than 50% of the Voting Power of the
surviving or transferee Person, as the case may be, is held (i) by the existing
management of Parties; or (ii) by a financial investor who does not conduct,
does not have any Subsidiary that conducts, and is not a Subsidiary of any
Person that conducts any manufacture, development, distribution, support or
marketing of any video, communications or networking products; provided,
however, that the licenses granted hereunder to or by the acquired party shall
not extend to or from either the financial investor (or any Person owned by the
financial investor that is used to acquire the acquired party) or any of its
Subsidiaries other than the acquired party and any Subsidiary of such
acquired party.

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 2
 

1.4                                 “CPI Licensed
Patents” shall mean all patents and patent applications and any patents
issuing there from worldwide that have or are entitled to the benefit of a
filing date before, on, or within ten (10) years after the Effective Date that
are owned or licensable by CPI, Avistar, or any of their Subsidiaries without
the bona fide payment of royalties to an unaffiliated third party.

1.5                                 “Disputes”
shall mean any action, dispute, claim or controversy of any kind, including,
without limitation, issues of patent infringement and claim coverage, whether
in contract or tort, statutory or common law, legal or equitable, now existing
or hereafter arising between the Parties.

1.6                                 “Existing Products”
shall mean products, computer software, methods and articles of manufacture
that, as of the Effective Date, either (i) have been made commercially
available by a Party or its Subsidiary; (ii) are under substantial development
by a Party or its Subsidiary and are made commercially available within twelve
(12) months after the Effective Date; or (iii) are bug fixes or error
corrections to products described in subsection (i) or (ii) above.  For the avoidance of doubt, Existing Products
include third party products made commercially available by a Party or its
Subsidiary that meet (i) or (ii) above.

1.7                                 “Follow On Products”
shall mean Licensed Products (regardless of product name) that are natural
extensions, enhancements, new releases, updates or new versions of Existing
Products, in all cases primarily and in substantial part based on Existing
Products.

1.8                                 “Lawsuits”
shall mean (i) Collaboration Properties,
Inc. vs. Tandberg ASA and Tandberg, Inc.  (United States District Court for the
Northern District of California; Civ. Action No. 05-1940 (MHP)) and (ii) Tandberg Telecom AS v. Avistar Communications Corp.
(United States District Court for the Eastern District of Texas; Civ. Action
No. 2:06-cv-0040-TJW).

1.9                                 “Licensed Patents”
shall mean the CPI Licensed Patents and Tandberg Licensed Patents.

1.10                           “Licensed Products”
shall mean the Avistar Licensed Products and Tandberg Licensed Products.

1.11                           “Material Business Unit”
shall mean a material and substantial business unit that has, among other
things, all of the following: (i) all of the products for one or more market
segments, including at least one line of commercially available products; (ii)
key employees who develop such products; (iii) patents or other intellectual
property rights relating to such products; and (iv) tangible assets 

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 3
 

related to such products.  A
transaction involving a Material Business Unit as described herein may be an
asset sale (in which case Section 9.3(a) applies) or may be by divestiture of a
Subsidiary (in which case Section 9.2(c) applies).

1.12                           “Person” shall mean
an individual, corporation, partnership, association, trust, incorporated
organization, governmental authority, other entity or group (as defined in
Section 13(d)(3) of the United States Securities Exchange Act of 1934, as
amended as of the Effective Date).

1.13                           “Subsidiary” means,
with respect to a given Party or Person (the “Parent”), any other Person
where the Parent directly or indirectly owns or controls (i) more than fifty
percent (50%) of the aggregate Voting Power of such other Person, or (ii) in
countries where the percentage ownership by a foreign Parent is limited by law
to no more than fifty percent (50%), the maximum percentage of the aggregate
Voting Power permitted under applicable law, but in no event less than forty
five (45%).  A Person shall be deemed to
be a Subsidiary under this Agreement only so long as such ownership or control
exists.  Notwithstanding the foregoing, a
Subsidiary of a party shall only be entitled to receive the benefit of the
licenses and covenants granted under this Agreement to its Parent so long as
such party also has (and has not contractually or otherwise forfeited) a
percentage economic interest in such Subsidiary at least equal to the minimum
percentage of Voting Power required under (i) or (ii) above, as applicable (“Minimum
Economic Interest”).  It is
understood that, with respect to a Subsidiary, the Minimum Economic Interest is
only required for purposes of receiving the benefit of licenses and covenants
granted under this Agreement to its Parent and shall not be construed as
restricting a Subsidiary’s obligation to grant licenses and covenants under
this Agreement.

1.14                           “Tandberg” shall have
the meaning given to this term in the recitals.

1.15                           “Tandberg Licensed
Patents” shall mean all patents and patent applications and any patents
issuing there from worldwide that have or are entitled to the benefit of a
filing date before, on, or within ten (10) years after the Effective Date that
are owned or licensable by Tandberg ASA, Tandberg Telecom, Tandberg, Inc. or
any of their Subsidiaries without the bona fide payment of royalties to an
unaffiliated third party.

1.16                           “Tandberg Licensed
Products” shall mean Tandberg’s Existing Products and Follow On Products,
which are sold by Tandberg or its Subsidiaries, or which are manufactured for
Tandberg or its Subsidiaries and which, absent the license granted to Tandberg
and its Subsidiaries hereunder, would allegedly infringe, directly or
indirectly, a claim of any of the CPI Licensed Patents.  For the avoidance of doubt, to the extent
they allegedly infringe any claim of any of the 

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 4
 

CPI Licensed Patents, Tandberg Licensed Products include Existing
Products and Follow On Products thereto.

1.17                           “Third Party” means a
Person other than a Party or a Subsidiary of a Party to this Agreement.

1.18                           “Voting Power” means
the right to exercise voting power with respect to the election of directors or
similar managing authority of a Person (whether through direct or indirect
beneficial ownership of shares or securities of such Person or otherwise).

2.                                      Grant of Rights

2.1                                 Avistar License
Grant.  Subject to the terms of this
Agreement and the payment pursuant to Section 4 below, Avistar grants to
Tandberg and its Subsidiaries a perpetual, world wide, non-exclusive, paid up
license under the CPI Licensed Patents to make, have made, use, import, offer
to sell, sell, lease, license, or otherwise transfer (whether directly or
through resellers or distributors) Tandberg Licensed Products as used alone or
in combination with third party products. 
Without limiting the foregoing, and subject to the terms of this
Agreement, Avistar covenants, on its own behalf and on behalf of its
Subsidiaries, that it will not assert claims of infringement of any of the CPI
Licensed Patents against Tandberg, its Subsidiaries, [***] of [***] ([***] or
[***]), [***] ([***] or [***]), [***] ([***] or [***], including [***] [***])
or [***] ([***] or [***]) with respect to any combination of Tandberg’s or its
Subsidiaries’ Existing Products, or Follow On Products thereto.  No license is granted under this Agreement
for any third party products [***].

2.2                                 Tandberg
License Grant.  Subject to the terms
of this Agreement, Tandberg grants to Avistar and its Subsidiaries a perpetual,
world wide, non-exclusive, paid up license under the Tandberg Licensed Patents
to make, have made, use, import, offer to sell, sell, lease, license, or
otherwise transfer (whether directly or through resellers or distributors)
Avistar Licensed Products as used alone or in combination with third party
products.  Without limiting the
foregoing, and subject to the terms of this Agreement, Tandberg covenants, on
its own behalf and on behalf of its Subsidiaries, that it will not assert
claims of infringement of any of the Tandberg Licensed Patents against Avistar,
its Subsidiaries, [***] of [***] [***] ([***] or [***]), [***] ([***] or
[***]), [***] ([***] or [***], including [***]) or [***] ([***] or [***]) with
respect to any combination of Avistar’s or its Subsidiaries’ Existing Products,
or Follow On Products thereto.  No
license is granted under this Agreement for any third party products [***].

[***] Portions of this exhibit have been omitted
pursuant to a request for confidential treatment filed pursuant to Rule 24-b-2
promulgated under the Securities Exchange Act of 1934, as amended, and the
omitteed portions represented by [***] have been separately filed with the
Securities and Exchange Commission.

 5
 

2.3                                 Limited
Have Made Rights. The “have made” rights under the licenses set forth in
Sections 2.1 and 2.2 only apply when substantially all the designs, working
drawings or specifications for the respective Licensed Product are owned or
licensed and provided by a Party or its Subsidiary and do not extend to “off
the shelf” products of a Third Party supplier that are made generally available
by such supplier to other Third Parties.

2.4                                 Branding.
Either Party shall have the right to sell its products under other brands.

2.5                                 No
Sublicense Rights.  Except as
provided in this Section 2, neither Party shall have any right to grant any
third party any sublicense or other rights under the Licensed Patents without
the express prior written consent of the other Party.   [***] and its [***] [***], [***] with [***]
to [***] under the Licensed Patents [***] as [***] be [***] for the [***] and
[***] of, [***] any [***] of, the [***] by [***] thereof.

2.6                                 No
Other Rights.  Each Party reserves
all rights not expressly granted to the other Party and its Subsidiaries in
this Agreement.  Without limiting the
generality of the foregoing sentence, no
right or license is granted herein under any intellectual property (including
under any patent, copyrights, trademarks, mask work rights, or trade secret
rights) of either Party or any other Person, other than under the Licensed
Patents.

3.             Additional Rights

3.1                                 Avistar
Release of Tandberg. Subject to Section 4 and in consideration for the
releases granted by Tandberg and its Subsidiaries herein, Avistar, individually
and on behalf of each of its Subsidiaries, officers, directors and employees,
irrevocably releases, acquits and forever discharges (and will cause its
Subsidiaries to irrevocably release, acquit and forever discharge) Tandberg and
its Subsidiaries which are Subsidiaries as of the Effective Date and their
respective past, present and future officers, directors, employees, agents,
distributors, manufacturers, resellers, dealers, customers (including OEM
customers), end users, 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 Lawsuits,
or (ii) which otherwise accrued against Tandberg or its Subsidiaries prior to
the Effective Date or arises out of any act or alleged act done prior to the
Effective Date anywhere in the world, 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, breach of contract, and infringement of 

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 6
 

any CPI Licensed
Patents, including Patents asserted by Avistar in the Lawsuits, whether direct,
contributory or by inducement, and whether or not willful. 

3.2                                 Tandberg
Release of Avistar.  Subject to
Section 4 and in consideration for the releases granted by Avistar and its
Subsidiaries herein, Tandberg, individually and on behalf of each of its
Subsidiaries, officers, directors and employees, irrevocably releases, acquits
and forever discharges (and will cause its Subsidiaries to irrevocably release,
acquit and forever discharge) Avistar and its Subsidiaries which are
Subsidiaries as of the Effective Date and their respective past, present and
future officers, directors, employees, agents, distributors, manufacturers,
resellers, dealers, customers (including OEM customers), end users,
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 Lawsuits, 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 anywhere in the world, 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, breach of contract, and infringement of any Tandberg
Licensed Patents, including Patents asserted by Tandberg in the Lawsuits,
whether direct, contributory or by inducement, and whether or not willful.

3.3                                 GENERAL
RELEASE.  THE RELEASES BETWEEN AVISTAR
AND TANDBERG IN THIS PATENT LICENSE 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.

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 7
 

FOR THE AVOIDANCE
OF DOUBT, THIS SECTION SHALL NOT CAUSE THIS AGREEMENT TO BE GOVERNED BY
CALIFORNIA LAW.

3.4                                 Dismissal
with Prejudice of N.D. Cal. Action. 
Within five (5) business days of the Effective Date, Avistar agrees to
dismiss its infringement allegations in the N.D. Cal. Action against Tandberg
with prejudice, and Tandberg agrees to dismiss its claims, counterclaims,
defenses and/or demands with prejudice by filing the stipulated dismissal and
order attached as Attachment A hereto.

3.5                                 Dismissal
with Prejudice of E.D. Tex. Action. 
Within five (5) business days of the Effective Date, Tandberg agrees to
dismiss its infringement allegations in the E.D. Tex. Action against Avistar
with prejudice, and Avistar agrees to dismiss its claims, counterclaims,
defenses and/or demands with prejudice by filing the stipulated dismissal and
order attached as Attachment B hereto.

3.6
                              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 Agreement, nor the fact of the settlement of
Litigation reflected in this 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.

3.7                                 Other
Transactions.  Either Party may
assign, convey, sell, lease, encumber, license, sublicense or otherwise
transfer to a third party any and all of the Licensed Patents it owns provided
that any such transaction is made subject to all rights of and licenses to the
other Party and its Subsidiaries arising from this Agreement and shall not
impose any additional obligations on the other Party or any of its
Subsidiaries.

4.                                      Payment

4.1                                 License
Payment.  In consideration of the
licenses, releases and other rights granted to Tandberg and its Subsidiaries
under this Agreement, Tandberg shall pay to CPI the sum of twelve million U.S.
dollars ($12,000,000). Such payment shall be made by electronic funds transfer
to the account specified by CPI below within five (5) business days of filing
and electronic receipt of filing of Attachment A dismissing the N.D. Cal.
Action.

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 8
 

Banking Information for CPI:

Collaboration Properties, Inc. Operating Account

[***]

[***]

[***]

 

4.2                                 Taxes.  Avistar represents and warrants
that no withholding taxes shall be deducted from the payment to CPI, as
provided under the US/Norway Tax Treaty (“United States-Norway, Income and
Property Tax Convention, Article 10”).

5.                                      Warranties
and Representations

5.1                                 General.
Each Party represents and warrants to the other Party as of the Effective Date
that:

(a)           it is a corporation duly organized,
validly existing and in good standing or its equivalent under the laws of its
place of organization;

(b)           it has the authority to (i) enter
into this Agreement, (ii) extend the rights, licenses and sublicenses granted
to the other Party under this Agreement, and (iii) undertake and fully perform
its obligations under this Agreement;

(c)           it is not subject to a petition for
relief under any bankruptcy legislation, it has not made an assignment for the
benefit of creditors, it is not subject to the appointment of a receiver for
all or a substantial part of its assets, and it is not contemplating taking any
of the foregoing actions; and

(d)                                     all
necessary consents, approvals and authorizations of all regulatory and
governmental authorities and other Persons required to be obtained by it in
connection with (i) the execution and delivery of this Agreement, (ii) its
granting of rights and licenses hereunder, and (iii) the performance of its
obligations hereunder have been obtained.

(e)                                      it
has not prior to the Effective Date assigned or transferred to any third party
or encumbered in whole or in part any of the claims which are included in its
release in Section 3.

5.2                                 Absence
of Patent Warranties.  Nothing in
this Agreement shall be construed (i) as a warranty or representation by
either Party as to the validity, enforceability or scope of any of the claims
of the Licensed Patents, (ii) as a warranty or representation that any Licensed
Product, or anything else made, used, sold, imported or otherwise disposed of
under the license grant of Section 2 is, or will 

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 9
 

be, free from
infringement of any patents, copyrights, trade secrets, trademarks, or any
other intellectual property or proprietary rights of third parties.

5.3                                 No
Obligations. Neither Party shall have any obligation hereunder to institute
any action or suit against any Person for infringement of any of the Licensed Patents
or to defend any action or suit brought by a Person which challenges or
concerns the validity of any of the Licensed Patents.   Neither Party shall have the right to
institute any action or suit against Persons for infringement of any of the
Licensed Patents to which it receives a license under Section 2.  Neither Party is required to file any patent
application, or to secure any patent or patent rights, or to maintain any
patent in force.

5.4                                 Avistar.  Avistar represents and warrants that CPI is
the true and rightful owner of the CPI Patents asserted against Tandberg in the
Litigation.

5.5                                 Tandberg.  Tandberg represents and warrants that
Tandberg Telecom is the true and rightful owner of the Tandberg Patents
asserted against Avistar in the Litigation.

6.             Bankruptcy

All
licenses and releases granted to a Party and its Subsidiaries under this
Agreement are deemed to be, for the purpose of Section 365(n) of the U.S.
Bankruptcy Code, licenses of rights to intellectual property as defined under
Section 101 of the U.S. Bankruptcy Code, as amended.  The Parties
agree that any Party who is a licensee or beneficiary of such rights under this
Agreement, shall retain and may exercise all of its rights and elections under the U.S. Bankruptcy Code, as amended.  To the extent that similar protections of its
rights are available to the Parties and Subsidiaries in foreign jurisdictions,
the Parties agree that they shall be entitled to retain and exercise all such
rights.

7.             Disputes

It is the intent
of the Parties that Disputes be resolved expeditiously, amicably and at the
level within each Party’s organization that is most knowledgeable about the
disputed issue. As a result, the Parties agree that all Disputes will be
resolved by the procedure outlined in this Section 7 unless such Dispute is
governed by a subsequent written agreement signed by authorized representatives
of the Parties:

7.1                                 The
complaining Party will notify the other Party in writing of the Dispute, and
the non-complaining Party will exercise good faith efforts to resolve the
matter as expeditiously as possible.

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 10

7.2                                 In
the event that such matter remains unresolved thirty (30) days after the
delivery of the complaining Party’s written notice, a senior representative of
each Party will meet or participate in a telephone conference call within five
(5) business days, or as soon as practicable but no later than thirty (30)
days, of a request for such a meeting or conference call by either Party to
resolve the Dispute.

7.3                                 If
the Parties are unable to reach a resolution of the Dispute after following the
above procedure, any Dispute will be resolved by mediation or binding
arbitration in accordance with the terms of this Section 7.  Any mediations or arbitrations entered into
pursuant to this Section shall be
confidential and subject to the exclusive jurisdiction of the mediator or
arbitrators selected in accordance with the terms of this Section.  The Parties expressly waive any right to
challenge the jurisdiction or venue of these mediation or binding arbitration
proceedings.

7.4                                 In
order that Disputes may be resolved expeditiously, the Parties agree to submit
all Disputes within three (3) years of the Effective Date to mediation in San
Francisco, California before Hon. Judge Edward Infante, the mediator that is
most knowledgeable about the disputed issues. 
The parties agree to participate in good faith in the mediation and
related negotiations for a period of 30 days from the date of appointment of
Hon. Judge Edward Infante.  The parties
may enter into an agreement prior to the mediation setting out the procedures
to be used during the mediation.  The
parties will bear the costs of mediation equally, and neither party will call
the mediator as a witness for any purpose in any proceeding, during or
subsequent to the mediation, nor will any party seek access to any documents
prepared for or delivered to the mediator in connection with the mediation or
to any records or notes of the mediator. 
Documents produced in connection with the mediation which are not
otherwise discoverable and statements made in connection with the mediation
will not be subject to disclosure through discovery or admissible in any
proceeding. If a Dispute is not settled by mediation in accordance with this
Section 7.4 it shall proceed to arbitration as set forth in Section 7.5.

7.5                                 Any
Dispute not settled by mediation or later than three (3) years after the
Effective Date shall be resolved by
binding arbitration to be held in New York, New York before three arbitrators
(the “Arbitration Agreement”). 
The arbitration shall be administered by Judicial Arbitration and
Mediation Services (“JAMS”) pursuant to its Comprehensive Arbitration
Rules and Procedures (Streamlined Arbitration Rules and Procedures).  The decisions of the arbitrators shall be
binding and conclusive upon all Parties involved and judgment on the award may
be entered in any court having jurisdiction. 
This clause shall not preclude the Parties from seeking provisional
remedies in aid of arbitration from a court of appropriate jurisdiction.  The Parties agree that the losing Party shall
bear the cost of the arbitration filing and hearing fees, and the cost of the
arbitrators.  Each 

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 11
 

Party must bear its own attorney’s fees and associated costs and
expenses.  This Arbitration Agreement shall
survive (i) termination or changes in the Agreement and (ii) the bankruptcy of
any Party.  Furthermore, this Arbitration
Agreement shall be binding on the Parties’ respective successors and assigns.

7.6                                 Arbitrators
must be active members of the Bar of a U.S. state or retired judges of the
state or federal courts, with expertise in the substantive laws, including
patent law and licensing law, applicable to the subject matter of the Dispute.
Any Dispute will be decided by majority vote of a panel of three arbitrators;
provided however, that all three arbitrators must actively participate in all
hearings. Notwithstanding anything herein to the contrary, the arbitrators will
be required to make specific, written findings of fact and conclusions of law.

7.7                                 To
the maximum extent practicable, JAMS, the arbitrators and the Parties will take
all action required to conclude any arbitration proceeding within one hundred
and eighty (180) days of the filing of the Dispute with JAMS. No arbitrator or
other party to an arbitration proceeding may disclose the existence, content or
results thereof, except for disclosures of information by a Party required in
the ordinary course of its business or by applicable law or regulation.

8.             Term

The term of this Agreement shall commence upon the Effective Date and
terminate on the date on which the last of the Licensed Patents expires.  The provisions of Sections 1, 3.1, 3.2, 3.3,
3.4, 3.5, 5, 6, 7, 8, 9, 10 and 11 shall survive any termination or expiration
of this Agreement.

9.             Change of Control and
Subsidiaries

9.1                                 Change
of Control.  In the event of a Change
of Control of either Tandberg or Avistar resulting in such Party being
controlled by some other Person:

(a)           The Licensed Products of the Party
subject to the Change of Control (“Acquired Party”) shall be limited to
Existing Products of the Acquired Party and its 
Subsidiaries at the time of the Change of Control and Follow On Products
thereto.  The licenses granted under this
Agreement shall not apply to Existing Products of (i) any third party involved
in such Change of Control or any of its Subsidiaries (collectively, the “Acquirer”)
at the time of the Change of Control or any Follow On Products thereto, or (ii)
any Person that is acquired by the Acquirer or any of its Subsidiaries
subsequent to the Change of Control, including any Person acquired by the
Acquired Party subsequent to the Change of Control.  The Licensed Products of the non-Acquired
Party shall not be limited as a result of the Change of Control of the Acquired
Party.

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 12
 

(b)           The licenses and covenants granted by
each of the Parties under this Agreement shall be limited solely to those
Patents owned or licensable by each Party and its Subsidiaries prior to the
date of the Change of Control of such Party.

(c)           A subsequent Change of Control of the
Acquired Party shall not be construed as further limiting or expanding the
licenses granted to the Acquired Party. 
In such event, the Licensed Products of the Acquired Party shall remain
limited to the Existing Products of the Acquired Party and its Subsidiaries at
the time of the initial Change of Control, and Follow On Products thereto, as
described in Section 9.1(a) above.

9.2                                 Subsidiaries

(a)           New Subsidiaries.  If a Person becomes a Subsidiary of a Party
after the Effective Date (“New Subsidiary”), then such New Subsidiary
shall be granted the licenses and covenants set forth in this Agreement.  The Patents of such New Subsidiary shall be
subject to the licenses and covenants granted to the other Party and its
Subsidiaries under this Agreement.

(b)           New Parents.  If a Party to this Agreement becomes a
Subsidiary or a Material Business Unit (“Controlled Party”) of a Third
Party (“New Parent”) after the Effective Date, then the Licensed
Products of the New Parent shall remain limited to the Existing Products of the
Controlled Party and its Subsidiaries at the time of the Change of Control, and
Follow On Products thereto, as described in Section 9.1(a) above.

(c)           Former Subsidiaries.  If a Person ceases to qualify as a Subsidiary
of a Party (“Former Subsidiary”), then:

(i)            The licenses and covenants granted
to the Former Subsidiary shall terminate on the date the Former Subsidiary
ceases to be a Subsidiary under this Agreement; and

(ii)           The licenses and covenants granted
hereunder to the other Party and its Subsidiaries with respect to patents of
the Former Subsidiary shall continue until the expiration of each such patent,
including patents based on applications filed prior to the date it ceased to be
a Subsidiary under this Agreement and related patents; provided, however, that
such licenses and covenants shall not extend to patents of the Former
Subsidiary where the Former Subsidiary first acquires rights to such patents
after the date it ceases to be a Subsidiary under this Agreement.

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 13
 

9.3                               Divestiture
of Business or Assets

(a)           If a Party or any of its Subsidiaries
spins out or transfers a portion of its business or assets such that the
spun-out or transferred business or assets are no longer part of a Party or any
of its Subsidiaries under this Agreement, then the licenses and covenants
granted to such Party under this Agreement shall not extend to such business
(or with respect to the products manufactured, distributed, imported, marketed,
leased, sold or used by such business) or assets after the spin-out or
transfer.

(b)           If a Party or any of its Subsidiaries
assigns or transfers any CPI Licensed Patents or Tandberg Licensed Patents, as
applicable, the licenses and covenants granted to the other Party and its
Subsidiaries with respect to those Patents shall remain in effect, and the
transferring Party or Subsidiary shall enter into a written agreement with the
transferee making any such assignment or transfer expressly subject to the
licenses and covenants set forth in this Agreement.  In the event a Person becomes a Subsidiary of
a Party after the Effective Date (“New Subsidiary”), then such New Subsidiary
shall be granted the licenses and covenants set forth in this Agreement.  The Patents of such New Subsidiary shall be
subject to the licenses and covenants granted to the other Party and its
Subsidiaries under this Agreement.

10.          Assignment

10.1                           By Either Party.  Except as expressly set forth in this
Agreement, the licenses and covenants not to sue granted herein are not
sublicensable or assignable.  Any
assignee must agree in writing to be bound to the terms and conditions of this
Agreement.  Any assignment made in
contravention of this Section 10.1 shall be void
ab initio and of no force or effect. 
The licenses granted in Section 2 shall not apply to any products or
services that are not Existing Products as of the Effective Date, or Follow On
Products thereto.

10.2                           Binding upon Assignees.  Subject to the foregoing Section 10.1, this
Agreement shall be binding upon, and inure to the benefit of, the legal
representatives, successors and permitted assigns of the Parties. Any attempt
to assign or delegate all or any portion of this Agreement in violation of this
Section 10 shall be void.

11.          General Provisions

11.1                           Expenses of the Parties.  Each Party shall pay its own expenses
incurred in connection with the negotiation, execution and performance of this
Agreement, except as specified in Section 7.

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 14
 

11.2                           Waiver.  No term or provision hereof will be
considered waived by either Party, and no breach excused by either Party,
unless such waiver or consent is in writing and signed by an authorized
representative on behalf of the Party against whom the waiver is asserted.  No consent by either Party to, or waiver of,
a breach by either Party, whether express or implied, will constitute a consent
to, waiver of, or excuse of any other different or subsequent breach by either
Party.

11.3                           Amendment and
Modification.  This Agreement may be
amended, modified and/or supplemented only by means of a written amendment,
signed by the authorized representatives of the Parties, which specifically
refers to this Agreement.

11.4                           Notices.  Any notice to any Party hereto given pursuant
to this Agreement shall be in writing and given by reputable overnight courier
having an established tracking capability addressed as follows:

	
  if to CPI:

  	
  555 Twin Dolphin Drive

  
	
   

  	
  Redwood Shores, CA 94065

  
	
   

  	
  Attention: Chief Financial Officer

  
	
   

  	
   

  
	
  if to ACC:

  	
  555 Twin Dolphin Drive

  
	
   

  	
  Redwood Shores, CA 94065

  
	
   

  	
  Attention: Chief Financial Officer

  
	
   

  	
   

  
	
  if to Tandberg
  ASA:

  	
  1212 Avenue of the Americas

  
	
   

  	
  24th Floor

  
	
   

  	
  New York, NY 10036

  
	
   

  	
  Attention: General Counsel

  
	
   

  	
   

  
	
  with a copy to:

  	
  Philip Pedersens vei 20

  
	
   

  	
  1366 Lysaker

  
	
   

  	
  Norway

  
	
   

  	
  Attention: Chief Financial Officer

  
	
   

  	
   

  
	
  if to Tandberg
  Telecom AS:

  	
  1212 Avenue of the Americas

  
	
   

  	
  24th Floor

  
	
   

  	
  New York, NY 10036

  
	
   

  	
  Attention: General Counsel

  
	
   

  	
   

  
	
  with a copy to:

  	
  Philip Pedersens vei 20

  
	
   

  	
  1366 Lysaker

  
	
   

  	
  Norway

  
	
   

  	
  Attention: Chief Financial Officer

  

 

[***] Portions of
this exhibit have been omitted pursuant to a request for confidential treatment
filed pursuant to Rule 24-b-2 promulgated under the Securities Exchange Act of
1934, as amended, and the omitteed portions represented by [***] have been
separately filed with the Securities and Exchange Commission.

 15
 

 

	
  if to Tandberg,
  Inc.:

  	
  1212 Avenue of the Americas

  
	
   

  	
  24th Floor

  
	
   

  	
  New York, NY 10036

  
	
   

  	
  Attention: General Counsel

  
	
   

  	
   

  
	
  with a copy to:

  	
  1860 Michael Faraday Dr.

  
	
   

  	
  Suite 250

  
	
   

  	
  Reston, VA 20190

  
	
   

  	
  Attention: President

  

 

Any notice shall be deemed delivered when placed for
delivery so addressed with charges prepaid. A Party may change its address for
notice by written notice to the other Party.

11.5                           Governing Law and Venue.  This Agreement is made and shall be construed
in accordance with and any arbitration under Section 7 will be governed by the
laws of the State of New York, without regard to the conflict of laws
provisions thereof.  Subject to Section
7, this Agreement shall be subject to the exclusive jurisdiction of any Federal
court or, in the absence of Federal jurisdiction, any State court sitting
within the geographic boundaries of the Southern District of New York.

11.6                           Headings.  Headings are supplied herein for convenience
only and shall not be deemed a part of this Agreement for any purpose.

11.7                           Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed an original for all purposes,
but all of which together shall constitute one and the same instrument.

11.8                           Severability.  If any term or provision of this Agreement or
the application thereof to any person or circumstances shall to any extent be
invalid or unenforceable, the remainder of this Agreement or the application of
such terms or provisions to persons or circumstances other than those as to
which it is invalid or unenforceable, shall not be affected thereby and each
term and provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by law.

11.9                           Confidentiality.  Except as may be required by law or
regulations, neither Party shall disclose any of the terms, conditions or other
provisions of this Agreement without the prior written consent of the other
Party, except (i) as may be required by law, regulation, or judicial process,
or (ii) to outside legal and financial advisors that are subject to
non-disclosure obligations. In the event that a Party believes that the
disclosure of all or any portion of this Agreement is required by applicable
law, regulation, or judicial process, then the disclosing Party shall notify
the non-disclosing Party one (1) business day prior to any such disclosure.

[***] Portions of this exhibit have been omitted pursuant to a request
for confidential treatment filed pursuant to Rule 24-b-2 promulgated under the
Securities Exchange Act of 1934, as amended, and the omitteed portions
represented by [***] have been separately filed with the Securities and
Exchange Commission.

 16
 

11.10                     Press Release. The parties
shall make a joint press release announcement in the form of Attachment C,
attached hereto after the execution of this Agreement.  Except as expressly permitted by Section
11.9, no other press release, announcement or publication regarding this
Agreement or its existence is permitted by either Party without prior written approval
of the other Party.

11.11                     Consequential
Damages.  IN NO EVENT WILL EITHER
PARTY BE LIABLE FOR LOST PROFITS, OR ANY SPECIAL, INDIRECT, INCIDENTAL OR
CONSEQUENTIAL OR EXEMPLARY DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF
LIABILITY, ARISING IN ANY WAY IN CONNECTION WITH THIS AGREEMENT.  THIS LIMITATION WILL APPLY EVEN IF A PARTY
HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND NOT WITHSTANDING ANY
FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

11.12                     Parties
Advised by Counsel. This Agreement has been negotiated between unrelated
Parties who are sophisticated and knowledgeable in the matters contained in
this Agreement and who have acted in their own self interest. In addition, each
Party has been represented by legal counsel. This Agreement shall not be
interpreted or construed against any Party to this Agreement because that Party
or any attorney or representative for that Party drafted or participated in the
drafting of this Agreement.

11.13                     Compliance.
The Parties shall comply with all national, state and local laws (including
regulations, orders and ordinances) now or hereafter enacted, of any
jurisdiction in which performance occurs or may occur hereunder. Without
limitation, each Party hereby acknowledges that the rights and obligations of
this Agreement are subject to the laws and regulations of the United States
relating to the export of products and technical information, and it shall
comply with all such laws and regulations.

11.14                     Entire Agreement and Facsimile
Execution.  This Agreement comprises
the entire agreement between the Parties hereto as to the subject matter hereof
and supersedes all prior discussions, agreements and understandings, written or
oral, between them relating thereto. 
This Agreement may be executed in counterparts and via facsimile and
such counterparts shall be treated as an original or when signed, via
facsimile, by both Parties; nevertheless, any one of the Parties may require
the follow-up exchange of originals in hardcopy by so requesting in writing
within five (5) days of counterpart or facsimile execution.

11.15                     Further
Acts.  Each Party to this 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 Agreement.

[***] Portions of this exhibit have been omitted
pursuant to a request for confidential treatment filed pursuant to Rule 24-b-2
promulgated under the Securities Exchange Act of 1934, as amended, and the
omitteed portions represented by [***] have been separately filed with the
Securities and Exchange Commission.

 17
 

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

	
  COLLABORATION PROPERTIES, INC.

  	
  TANDBERG ASA

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  [***]

  	
   

  	
  By:

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  [***]

  	
   

  	
  Name:

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  [***]

  	
   

  	
  Title:

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  February 14,
  2007

  	
   

  	
  Date:

  	
  February 15,
  2007

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  AVISTAR COMMUNICATIONS CORPORATION

  	
  TANDBERG TELECOM AS

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  [***]

  	
   

  	
  By:

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  [***]

  	
   

  	
  Name:

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  [***]

  	
   

  	
  Title:

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  February 14,
  2007

  	
   

  	
  Date: 

  	
  February 15,
  2007

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TANDBERG, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date: 

  	
  February 15,
  2007

  	
   

  

 

[***] Portions of this
exhibit have been omitted pursuant to a request for confidential treatment
filed pursuant to Rule 24-b-2 promulgated under the Securities Exchange Act of
1934, as amended, and the omitted portions represented by [***] have been
separately filed with the Securities and Exchange Commission.

 18
 

Attachment A

Dismissal of N.D.
Cal. Action

 19
 

Attachment B

Dismissal of E.D.
Tex. Action

 20
 

Attachment C

Press Release

 21

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