Document:

<PAGE>   1
                                                                   Exhibit 10.41

                            NEXTERA ENTERPRISES, INC.
                               ONE CRANBERRY HILL
                               LEXINGTON, MA 02421

                                                     As of December 31, 2000

Fleet National Bank
100 Federal Street
Boston, MA  02110

Bank of America
6610 Rockledge Drive, 6th Floor
Bethesda, MD  20817

         RE:      THIRD AMENDMENT TO CREDIT AGREEMENT

Ladies and Gentlemen:

         Reference is made to the Credit Agreement dated December 30, 1999, as
amended ("Credit Agreement") and all promissory notes, mortgages, guaranties,
agreements, documents and instruments entered into by Nextera Enterprises, Inc.
("Borrower") and any other person or obligor pursuant thereto (collectively, the
"Credit Documents") with or for the benefit of Fleet National Bank (f/k/a
BankBoston, N.A.) and Bank of America, N.A. (Fleet National Bank and Bank of
America together, "Lenders"). Except as otherwise defined herein, capitalized
terms used herein shall have the meanings given them in the Credit Agreement.
This Third Amendment to Credit Agreement is referred to as the "Third Amendment"
and supercedes and replaces the Second Amendment to Credit Agreement dated as of
November 14, 2000.

         Borrower has requested, among other things, that the Lenders amend
certain provisions contained in the Credit Agreement and Lenders are willing to
do so on the terms and conditions set forth herein.

         NOW THEREFORE, in consideration of any loan or advance or grant of
credit heretofore or hereafter made to or for the account of Borrower by
Lenders, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

         1. AMENDMENTS TO THE CREDIT AGREEMENT. Subject to satisfaction of the
conditions precedent set forth in Section 18 below, the Credit Agreement is
hereby amended as follows:

                  (a) Section 1 of the Credit Agreement is hereby amended to add
         the following definitions in their appropriate alphabetical order:

<PAGE>   2

Fleet National Bank
Bank of America
As of December 31, 2000
Page 2

                           "Third Amendment to Credit Agreement" means the Third
                           Amendment to this Agreement dated as of December 31,
                           2000.

                           "Third Amendment to Credit Agreement Effective Date"
                           means the date on which all of the conditions
                           precedent contained in Section 18 of the Third
                           Amendment to Credit Agreement are satisfied.

                  (b) Section 2.3.1 of the Credit Agreement is hereby amended to
         replace the amount "$7,500,000" therein with the amount "$5,000,000" in
         lieu thereof.

                  (c) Section 2.3.5 of the Credit Agreement is hereby deleted in
         its entirety and replaced as follows:

                           "REIMBURSEMENT OF LETTER OF CREDIT DISBURSEMENT. At
                           such time as a Letter of Credit Issuer makes any
                           disbursement on a draft presented or accepted under a
                           Letter of Credit ("Letter of Credit Disbursement")
                           the Borrower shall pay to such Letter of Credit
                           Issuer in immediately available funds the amount of
                           such Letter of Credit Disbursement."

         2. Section 6.5 of the Credit Agreement is hereby amended to add the
following Section 6.5.5 as follows:

                           "CUMULATIVE CASH FLOW. Commencing with the week
                           ending January 5, 2001 and continuing each week
                           thereafter, Borrower shall maintain actual cumulative
                           cash flow of not less than 10% of projected
                           cumulative cash flow for such period. As used herein,
                           "cumulative cash flow" refers to the Borrower's cash
                           collections less cash disbursements, as set forth at
                           the "net cash flow line" of Borrower's "Nextera
                           Enterprises, Inc. Weekly Cash Flow 05-Jan-01 through
                           30-Mar-01" chart (dated as of January 8, 2001) and
                           attached hereto as Schedule 6.5.5 (the
                           "Projections").

         3. FINANCIAL STATEMENTS AND OTHER DOCUMENTS. In addition to the other
reports required by this Agreement, Borrower shall furnish or cause to be
furnished to Lenders:

                  (a) A weekly report, to be provided no later than the third
         Business Day of each week, which sets forth Borrower's actual cash flow
         activity for the prior week and a reconciliation of actual cash
         activity to projected cash activity for such week;

                  (b) A weekly report, to be provided no later than the third
         Business Day of each week, setting forth Borrower's updated 13-week
         rolling cash activity projection;

                  (c) By the fifteenth day of each calendar month, an updated
         backlog report; and

<PAGE>   3

Fleet National Bank
Bank of America
As of December 31, 2000
Page 3

                  (d) By the twenty-fifth of each calendar month, a
         comprehensive and operational report for the prior month containing
         such items as payable and receivable agings, an internally prepared
         Consolidated balance sheet of Borrower and its Subsidiaries, and
         Consolidated statements of income and cash flows of Borrower and its
         Subsidiaries, together with other financial reporting items in
         substantially the form of Borrower's internal reports.

         4. CASH COLLATERAL FOR STANDBY LETTERS OF CREDIT. The Borrower shall
deliver cash collateral as security for outstanding Letters of Credit as
follows:

         If Riggs & Company and EOP Limited Operating Partnership extend the
maturity dates of their respective Letters of Credit, in the aggregate amount of
$1,460,000, to June 15, 2001, then the Letter of Credit Issuer shall extend such
Letters of Credit accordingly, without requiring cash collateral therefor;
PROVIDED, HOWEVER, that if such extension does not occur on or before January
31, 2001, then on that date the Borrower shall deliver $1,460,000 in immediately
available funds to the Letter of Credit Issuer to secure Borrower's
reimbursement obligations with respect to those Letters of Credit or make other
arrangements with respect to the same satisfactory to the Lenders in their
discretion.

         5. MISCELLANEOUS INVESTMENTS. Borrower shall, as of the date hereof and
on the fifteenth day of each calendar month, deliver to Lenders an updated
schedule of all investment and other property received or expected to be
received from customers or otherwise, as partial payment for services or
otherwise, and shall take all actions requested by Lenders to provide Lenders
with a continued perfected first priority lien on all such property.

         6. RATIFICATION OF CREDIT DOCUMENTS. Except as modified in this Third
Amendment or in any other instruments or documents executed in connection
herewith, (a) all terms and conditions of the Credit Documents shall remain in
effect in accordance with their original tenor; and (b) nothing contained herein
shall constitute a waiver by the Lenders or of any of the Lenders' rights and
remedies (including, without limitation, any of Lenders' rights or remedies as
to, or any obligations owing to Lenders of, any person who may be liable to
Lenders on account of any of the obligations, whether or not such person is a
party hereto), all of which rights and remedies are expressly reserved and not
waived. Each agreement, covenant, representation and warranty of any obligors
hereunder shall be deemed to be in addition to, and not in substitution for, the
agreements, covenants, representations and warranties previously made by
obligors. In the event that there shall be any inconsistency between any
provisions of this Third Amendment and a provision set forth in any other Credit
Document, the provision most favorable to Lenders and most restrictive as to
Borrower shall govern.

         7. RELEASE OF CLAIMS. Borrower hereby releases, waives and forever
relinquishes all claims, demands, obligations, liabilities and causes of action
of whatever kind or nature, whether known or unknown, which it has, may have, or
might assert now or in the future against Lenders and/or their affiliates,
participants, affiliates, officers, directors, employees, agents, attorneys,

<PAGE>   4

Fleet National Bank
Bank of America
As of December 31, 2000
Page 4

accountants, consultants, successors and assigns, directly or indirectly,
arising out of, based upon, or in any manner connected with (i) any transaction,
event, circumstance, action, failure to act or occurrence of any sort or type,
whether known or unknown, which occurred, existed, was taken, permitted or begun
prior to the execution of this Third Amendment with respect to the obligations,
the Credit Documents and/or the administration thereof or the obligations
created thereby; (ii) any discussions, commitments, negotiations, conversations
or communications with respect to the refinancing, restructuring or collection
of any obligations; or (iii) any thing or matter related to any of the
foregoing. The inclusion of this paragraph in this Third Amendment, and the
execution of this Third Amendment by Lenders, does not constitute an
acknowledgment or admission by Lenders of liability for any matter, or a
precedent upon which liability may be asserted.

         8. LIMITED WAIVERS.

                  (a) CONSOLIDATED PRO FORMA DEBT TO CONSOLIDATED PRO FORMA
         EBITDA. Subject to satisfaction of the conditions precedent set forth
         in Section 18 below, Lenders hereby waive any Event of Default that
         occurred under Section 6.5.1 of the Credit Agreement as a result of
         Borrower's failure to maintain a ratio of Consolidated Total Debt to
         Consolidated Pro Forma EBITDA not in excess of 300% for the periods
         ending September 30, 2000 and December 31, 2000; Such waiver shall not
         apply to any other provision of the Credit Agreement, shall be limited
         precisely as written and shall only be effective from November 14, 2000
         through March 31, 2001 (the "Limited Waiver Period"). The Lenders
         expressly reserve all rights and remedies available to them (a) after
         the end of the Limited Waiver Period, and (b) as a result of
         non-specified Defaults or Events of Defaults. Borrower expressly
         acknowledges and agrees that, upon the expiration of the Limited Waiver
         Period (and absent further waivers by Lender as to the foregoing
         covenant, which further waivers Lenders may grant or deny in their
         absolute discretion), Borrower shall at such time be in default of the
         Credit Agreement as to such covenant and Lenders shall have available
         to them, and be able to exercise, all of the rights and remedies
         accorded under the Credit Agreement including, without limitation, with
         respect to Defaults or Events of Default under Section 6.5.1 of the
         Credit Agreement.

                  (b) CONSOLIDATED PRO FORMA EBITDA MINUS CAPITAL EXPENDITURES
         TO CONSOLIDATED PRO FORMA INTEREST EXPENSE. Subject to satisfaction of
         the conditions precedent set forth in Section 18 below, Lenders hereby
         waive any Event of Default that occurred under Section 6.5.2 of the
         Credit Agreement as a result of Borrower's failure to maintain a
         Consolidated Pro Forma EBITDA minus Capital Expenditures to
         Consolidated Pro Forma Interest Expense ratio equal to or in excess of
         3.00 to 1.00 for the periods ending September 30, 2000 and December 31,
         2000. Such waiver shall not apply to any other provision of the Credit
         Agreement, shall be limited precisely as written and shall only be
         effective during the Limited Waiver Period. The Lenders expressly
         reserve all rights and remedies available to them (a) after the end of
         the Limited Waiver

<PAGE>   5

Fleet National Bank
Bank of America
As of December 31, 2000
Page 5

         Period, and (b) as a result of non-specified Defaults or Events of
         Defaults. Borrower expressly acknowledges and agrees that upon the
         expiration of the Limited Waiver Period (and absent further waivers by
         Lender as to the foregoing covenant, which further waivers Lenders may
         grant or deny in their absolute discretion), Borrower shall at such
         time be in default of the Credit Agreement as to such covenant and
         Lenders shall have available to them, and be able to exercise, all of
         the rights and remedies accorded under the Credit Agreement including,
         without limitation, with respect to Defaults or Events of Default under
         Section 6.5.2 of the Credit Agreement.

         9. LOANS. The Borrower hereby acknowledges and agrees that during the
Limited Waiver Period, the Borrower (i) will not make, and the Lenders need not
honor, any borrowing requests under the Revolving Loans, Acquisition Loans or
otherwise (EXCEPT, HOWEVER, that Lenders shall continue to honor proper and
timely draws on Letters of Credit which are currently outstanding in accordance
with their terms and the Credit Agreement); and (ii) the Borrower will not
request, and the Lenders need not issue, new Letters of Credit (EXCEPT, HOWEVER,
that the Borrower may request, and the Lenders shall issue, new Letters of
Credit under Section 2.3.1 of the Credit Agreement, as amended, if prior to such
issuance, Borrower has after the date hereof permanently reduced the amount of
outstanding Revolving Loans by an amount greater than or equal to the Letters of
Credit so requested. Each Letter of Credit so issued during the Limited Waiver
Period shall not exceed $2,000,000.00). Except as described in this Section 10,
cancellation or reduction in the face amount of outstanding Letters of Credit
will not create availability under the Revolving Credit Loans or otherwise.
Borrower further acknowledges and agrees that the Maximum Amount of Revolving
Credit is hereby permanently reduced to $22,600,000.00 (inclusive of outstanding
Letters of Credit as of the date on which all of the conditions precedent
contained in Section 18 below). The Lenders agree that the calculation of the
Revolving Credit Commitment Fee shall reflect the foregoing permanent reduction
in the Maximum Amount of Revolving Credit.

         10. LIMITED WAIVER FEE: As additional consideration to enter into the
Second Amendment and this Third Amendment, Borrower shall pay to the Lenders a
fee of $200,000, which shall be earned immediately and paid in immediately
available funds as follows:

                  (a) $75,000, which was received by the Lenders prior to
         December 22, 2000; and

                  (b) $125,000 on or before January 12, 2001.

         11. ADDITIONAL EQUITY INVESTMENT. Borrower shall obtain investments in
newly issued equity securities, subordinated debt or other securities of
Borrower (resulting in receipt of cash by Borrower) (the "Required Equity
Investment"), which securities may be subsequently exchanged, converted or
restructured into other newly issued equity securities or other securities of
Borrower (through documentation that is acceptable to the Lenders, which
acceptance shall not be unreasonably withheld) that are subordinated in priority
and payment to the Loans (on terms acceptable to the Lenders, which acceptance
shall not be unreasonably withheld). Such Required Equity Investments shall be
made as follows:

<PAGE>   6

Fleet National Bank
Bank of America
As of December 31, 2000
Page 6

     (a) Knowledge Universe Capital Co. LLC ("Junior Creditor") hereby commits
to the Borrower and the Lenders that it shall make a Required Equity Investment
of $10,000,000 of which:

                           (i) $2,500,000 has occurred;

                           (ii) $2,500,000 shall occur on or before January 15,
                  2001; and

                           (iii) $5,000,000 shall occur on or before February
                  15, 2001.

     (b) On or before February 15, 2001, Borrowers shall deliver to the Lenders
a unconditional, written business plan for issuance of an additional $20,000,000
Required Equity Investment, with a target closing date that is consistent with
the Borrower's cash needs.

The commitment described in this Section 10 and the Required Equity Investment
itself (i) cannot be assigned without the prior written consent of the Lenders,
which consent shall not be unreasonably withheld; and (ii) cannot be set-off or
reduced by any provision contained in the Debenture, Subordination Agreement
and/or Security Agreement dated as of December 15, 2000 by and between the
Borrower and Junior Creditor or otherwise.

     12. JOINDER OF WHOLLY OWNED SUBSIDIARIES. Pursuant to Section 2.9 of the
Guarantee and Security Agreement ("Guaranty and Security Agreement") dated as of
December 30, 1999 and Section 9.1 of the Subordination Agreement ("Subordination
Agreement") dated as of December 30, 1999, each Wholly Owned Subsidiary that is
not already a party to the Joined Agreements (as defined below) shall promptly
initiate all corporate or other proceedings and obtain all consents, approvals
and authorizations ("Joinder Prerequisites") that are required to permit each
Wholly Owned Subsidiary to join in and become a party (as fully as if the Wholly
Owned Subsidiary had been an original signatory thereto) to (a) the Credit
Agreement and any amendments thereto as a Borrower, (b) the Guarantee and
Security Agreement as a Guarantor and Obligor thereunder and (c) the
Subordination Agreement as defined thereunder (the agreements described in
subsections (a), (b) and (c) are collectively referred to herein as the "Joined
Agreements"). Effective as of the date on which all of the Joinder Prerequisites
are satisfied (and in no event later than January 1, 2001), each Wholly Owned
Subsidiary that is not already a party to the Joined Agreements shall join in
and become a party to the Joined Agreements; SUBJECT, HOWEVER, to the same
conditions, limitations and qualifications listed in Section 2.9 of the Guaranty
and Security Agreement, except that such conditions, limitations and
qualifications shall apply to both existing and future Wholly Owned
Subsidiaries. Each Borrower and each Wholly Owned Subsidiary shall also
immediately pledge and deliver to the Lenders its stock certificates or other
ownership interests as to each other business enterprise in which it has an
interest and any other investment property; PROVIDED, HOWEVER, that in the event
that such a pledge by any Borrower or any Wholly Owned Subsidiary is prohibited
by any valid law, statute, rule or regulation or if a pledge of the stock of any
Foreign Subsidiary would result in a deemed repatriation of foreign earnings
under the Internal Revenue Code of 1986 (including the "deemed dividend"
provisions

<PAGE>   7

Fleet National Bank
Bank of America
As of December 31, 2000
Page 7

of section 956), such pledge will be limited to the extent necessary to comply
with such prohibition or to prevent such repatriation of foreign earnings.

         13. ACQUISITIONS AND INDEBTEDNESS. Notwithstanding sections 6.6 and 6.9
of the Credit Agreement or any other provision in any Credit Document, Borrower
shall not during the Limited Waiver Period incur any Indebtedness of the type
described at the following Sections of the Credit Agreement: 6.6.1, 6.6.2,
6.6.6, 6.6.12 (and shall not, without limitation of the foregoing, request any
Acquisition Loans).

         14. CERTAIN OBLIGATIONS. Borrower hereby acknowledges and agrees that
it shall not make any payments, including but not limited to regularly scheduled
payments of principal, interest or other charges, on account of any subordinated
debt, management fees to affiliates, dividends, bonus compensation to officers,
including but not limited to special incentive bonuses, retention or other
programs or charges, and whether or not such programs, bonuses or charges were
previously announced, except for bonus compensation not to exceed $7,424,000
(the, "Certain Obligations") for the period of October 1, 2000 through March 31,
2001. Borrower shall attach as SCHEDULE A (x) a list of all bonus obligations,
cash or otherwise, whether such obligations shall become due during the Limited
Waiver Period or otherwise; and (y) a list of all executive officer compensation
packages, cash or otherwise, whether such obligations shall become due during
the Limited Waiver Period or otherwise. The Borrower shall pay the Certain
Obligations consistent in all material respects with the purposes and to the
persons described at Schedule A unless Lenders have issued their prior written
consent to any material deviation therefrom (which consent shall not be
unreasonably withheld). The Borrower further acknowledges and agrees that all
Certain Obligations shall be and are expressly subordinated and junior in right
of payment and exercise of remedies as set forth in the Credit Agreement.

         15. JUNIOR CREDITOR ACKNOWLEDGEMENT. The undersigned Junior Creditor
hereby acknowledges and agrees that it shall not take any action or assert any
claim with respect to the Subordinated Indebtedness during the Limited Waiver
Period; PROVIDED, HOWEVER that the Junior Creditor and the Borrower may
restructure, exchange or convert Subordinated Indebtedness into any equity or
debt securities of the Borrower that are subordinated in priority and payment to
the Loans. Except as permitted in the foregoing sentence, the Junior Creditor
shall not during the Limited Waiver Period assert, collect, or enforce the
Subordinated Indebtedness or any part thereof or take any action to foreclose or
realize on the Subordinated Indebtedness, and the Junior Creditor will hold in
trust and immediately pay over to the Lenders in the same form of payment
received, with appropriate endorsements, any payment that the Borrower makes to
the Junior Creditor with respect to the Subordinated Indebtedness; PROVIDED,
HOWEVER, that the Borrower may make Distributions of PIK Interest (but not in
the form of cash or other securities or other property of any type) on the
Subordinated Indebtedness in accordance with its terms, and upon written notice
from the Agent or the Lenders that no Default currently exists, the Borrower may
make cash interest payments on the Subordinated Indebtedness equal to the
accrued, scheduled, mandatory cash payments of interest on the Subordinated
Indebtedness in accordance with its

<PAGE>   8

Fleet National Bank
Bank of America
As of December 31, 2000
Page 8

terms, including subordination terms. The Borrower hereby acknowledges and
agrees that it is not eligible to receive written notice that no Default
currently exists during the Limited Waiver Period.

         16. CAPITAL EXPENDITURES. During the period of October 1, 2000 through
March 31, 2001, Borrower shall not make or incur Capital Expenditures in excess
of $5,350,000.00 as set forth on SCHEDULE B.

         17. INVESTMENTS. During the period of October 1, 2000 through March 31,
2001, Borrower shall not make or incur Investments; except for (i) Investments
arising from operation of Borrower's customary cash management systems (i.e. the
so-called "sweep account"), and (ii) Investments permitted under Sections 6.9.1,
6.9.2 and 6.9.3 of the Credit Agreement.

         18. CONDITIONS PRECEDENT. Notwithstanding any other provision of this
Third Amendment or any of the other Credit Documents, and without affecting in
any manner the rights of Lenders under the other sections of this Third
Amendment, this Third Amendment shall not be effective as to the Lenders unless
and until each of the following conditions has been and continues to be
satisfied:

                  (a) DOCUMENTATION. The Lenders shall have received, in form
         and substance satisfactory to Lenders and their counsel, a duly
         executed copy of this Third Amendment, together with such additional
         documents, instruments and certificates as the Lenders and their
         counsel shall reasonably require in connection therewith, all in form
         and substance satisfactory to the Lenders and their counsel, including
         without limitation acknowledgement of obligations, releases of defenses
         and claims, waiver of jury trial, acknowledgement of default condition
         pending covenant test and such other provisions as deemed appropriate
         by Lenders' counsel.

                  (b) PAYMENT OF EXPENSES. Payment of all accrued but unpaid
         interest and all accrued but unreimbursed expenses, fees and other
         charges incurred by Lenders through the closing date, including,
         without limitation, attorneys' fees and expenses (provided, however,
         that the Lenders acknowledge that they do not intend to incur
         consultants' fees in excess of $175,000 from October 1, 2000 through
         the end of the Limited Waiver Period, but reserve their right to do so
         in their discretion). Any consultant fees shall be supported by the
         name of the individual providing service, their respective billing
         rate, and the hourly fee by week.

                  (c) RECEIPT OF LIMITED WAIVER FEE. The Lenders shall have
         received the Limited Waiver Fee described in Section 10 hereof.

                  (d) NO DEFAULT. No Default or Event of Default shall exist
         except as previously disclosed and as consented to herein by the
         Lenders.

<PAGE>   9

Fleet National Bank
Bank of America
As of December 31, 2000
Page 9

                  (e) NO LITIGATION. Except as set forth on SCHEDULE C hereto
         and consented to by the Lenders, there is no litigation, arbitration,
         proceeding or investigation pending, or, to the knowledge of Borrower's
         officers, threatened against Borrower that, if adversely determined
         would result in a material judgment not fully covered by insurance or
         that would otherwise have a material adverse effect on the assets,
         business or prospects of Borrower.

         19. LEASEHOLD. On or before January 31, 2001, Borrower shall deliver to
the Lenders a fully executed (by all lessee(s) and lessor(s)) a collateral
assignment of lease and landlord's acknowledgement and consent with respect to
Borrower's Boston, Massachusetts facility, in form and substance satisfactory to
the Lenders.

         20. LIST OF EQUITY INVESTMENTS. On or before December 31, 2000,
Borrower shall deliver to the Lenders a list of all equity holdings and/or
investments taken in lieu of fees.

         21. INTELLECTUAL PROPERTY. Borrowers shall, on or before the fifteenth
day of each calendar month, deliver to the Lenders an updated schedule of all
intellectual property.

         22. REPRESENTATIONS AND WARRANTIES. To induce the Lenders to enter into
this Third Amendment, Borrower warrants, represents and covenants to the Lenders
that:

                  (a) ORGANIZATION AND QUALIFICATION. Borrower is a corporation
         duly incorporated, validly existing and in good standing under the laws
         of the jurisdiction of its incorporation. Borrower is duly qualified or
         is authorized to do business and is in good standing as a foreign
         corporation in all states and jurisdictions in which the failure of
         Borrower to be so qualified would have a material adverse effect on the
         financial condition, business or properties of the Borrower.

                  (b) CORPORATE POWER AND AUTHORITY. Borrower is duly authorized
         and empowered to enter into, execute, deliver and perform this Third
         Amendment and each of the Credit Documents to which it is a party. The
         execution, delivery and performance of this Third Amendment and each of
         the other Credit Documents have been duly authorized by all necessary
         corporate action and do not and will not (i) require any consent or
         approval of the shareholders of Borrower; (ii) contravene Borrower's
         charter or by-laws; (iii) violate, or cause Borrower to be in default
         under, any provision of any law, rule, regulation, order, writ,
         judgment, injunction, decree, determination or award in effect having
         applicability to Borrower; (iv) result in a breach of or constitute a
         default under any indenture or loan or credit agreement or any other
         material agreement, lease or instrument to which Borrower is a party or
         by which Borrower's Properties may be bound or affected; or (v) result
         in, or require, the creation or imposition of any Lien (other than
         liens permitted under Section 6.8 of the Credit Agreement) upon or with
         respect to any of the properties now owned or hereafter acquired by
         Borrower.

<PAGE>   10

Fleet National Bank
Bank of America
As of December 31, 2000
Page 10

                  (c) LEGALLY ENFORCEABLE AGREEMENT. This Third Amendment and
         each of the other Credit Documents when delivered under this Third
         Amendment will be, a legal, valid and binding obligation of Borrower,
         enforceable against Borrower in accordance with its respective terms,
         except as such enforceability may be limited by applicable bankruptcy,
         insolvency, reorganization, moratorium or similar laws affecting the
         enforcement of creditors' rights generally.

                  (d) NO MATERIAL ADVERSE CHANGE. Since the date of the last
         financial statements provided by the Borrower to the Lenders, there has
         been no Material Adverse Change in the condition, financial or
         otherwise, of Borrower as shown on the consolidated balance sheet as of
         such date and no change in the aggregate value of equipment and real
         property owned by Borrower, except changes in the ordinary course of
         business, none of which individually or in the aggregate would
         constitute a Material Adverse Change.

                  (e) CONTINUOUS NATURE OF REPRESENTATIONS AND WARRANTIES. Each
         representation and warranty contained in the Credit Agreement and the
         other Credit Documents remains accurate, complete and not misleading in
         any material respect on the date of this Third Amendment, except for
         representations and warranties that explicitly relate to an earlier
         date and changes in the nature of Borrower's business or operations
         that would render the information in any exhibit attached thereto
         either inaccurate, incomplete or misleading, so long as the Lenders
         have consented to such changes or such changes are permitted by the
         Credit Agreement.

         23. ACKNOWLEDGEMENT OF OBLIGATIONS. Borrower hereby (1) reaffirms and
ratifies all of the promises, agreements, covenants and obligations to Lenders
under or in respect of the Credit Agreement and other Credit Documents as
amended hereby and (2) acknowledges that it is unconditionally liable for the
punctual and full payment of all obligations, including, without limitation, all
charges, fees, expenses and costs (including reasonable attorneys' fees and
expenses) under the Credit Documents, as amended hereby, and that it has no
defenses, counterclaims or set offs with respect to full, complete and timely
payment and performance of all obligations.

         24. CONFIRMATION OF LIENS. Borrower acknowledges, confirms and agrees
that the Credit Documents, as amended hereby, are effective to grant to Lenders
duly perfected, valid and enforceable first priority security interests and
liens in the collateral described therein and that the locations for such
Collateral specified in the Credit Documents have not changed. Borrower further
acknowledges and agrees that all obligations of Borrower are and shall be
secured by all such collateral.

         25. MISCELLANEOUS. Except as set forth herein, the undersigned confirms
and agrees that the Credit Documents remain in full force and effect without
amendment or modification of any kind. The execution and delivery of this Third
Amendment by Lenders shall not, except as specifically stated herein, be
construed as a waiver by the Lenders of any Default or Event of Default under
the Credit Documents. This Third Amendment, together with the Credit

<PAGE>   11

Fleet National Bank
Bank of America
As of December 31, 2000
Page 11

Agreement and other Credit Documents, constitutes the entire agreement between
the parties with respect to the subject matter hereof and supersedes all prior
dealings, correspondence, conversations or communications between the parties
with respect to the subject matter hereof. This Third Amendment and the
transactions hereunder shall be deemed to be consummated in the Commonwealth of
Massachusetts and shall be governed by and interpreted in accordance with the
laws of that state. This Third Amendment and the agreements, instruments and
documents entered into pursuant hereto or in connection herewith shall be
"Credit Documents" under and as defined in the Credit Agreement.

<PAGE>   12

Fleet National Bank
Bank of America
As of December 31, 2000
Page 12

         Executed under seal on the date set forth above.

ATTEST:                              NEXTERA ENTERPRISES, INC.

                                     By: /s/ Michael P. Muldowney
---------------------------             ----------------------------------
                                        Name: Michael P. Muldowney
                                        Title: CFO

<PAGE>   13

Fleet National Bank
Bank of America
As of December 31, 2000
Page 13

Accepted in Boston, Massachusetts as of December 31, 2000

FLEET NATIONAL BANK, as Lender

By: /s/ Michael F. O'Neill
   --------------------------------------
     Name: Michael F. O'Neill
     Title: Senior Vice President

BANK OF AMERICA, N.A. as Lender

By: /s/ Michael R. Heredia
   --------------------------------------
     Name: Michael R. Heredia
     Title: Managing Director

<PAGE>   14

Fleet National Bank
Bank of America
As of December 31, 2000
Page 14

Accepted as to Sections 11 and 15 hereof in Boston, Massachusetts as of December
31, 2000

KNOWLEDGE UNIVERSE CAPITAL CO. LLC,
 AS JUNIOR CREDITOR

By: /s/ Stanley E. Maron
   -----------------------------------
     Name: Stanley E. Maron
     Title: Secretary

<PAGE>   15

Fleet National Bank
Bank of America
As of December 31, 2000
Page 15

                                   SCHEDULE A
               (Bonus Obligations/Executive Officer Compensation)

<PAGE>   16

Fleet National Bank
Bank of America
As of December 31, 2000
Page 16

                                   SCHEDULE B
                             (Capital Expenditures)

<PAGE>   17

Fleet National Bank
Bank of America
As of December 31, 2000
Page 17

                                   SCHEDULE C
                                  (Litigation)

         Two former employees of the Borrower whose employment with the Borrower
was recently terminated have informed the Borrower of their belief that they are
entitled to consideration from the Borrower with respect to claims they have
made in connection with their employment. No formal legal actions have been
filed to date to the Borrower's knowledge.

         A software vendor has claimed that the Borrower owes it approximately
$245,000 for the purchase of software. An attorney for the software vendor has
contacted the Borrower seeking payment, however no formal legal action has been
filed to date to the Borrower's knowledge. The Borrower disputes the validity of
this claim and intends to vigorously defend itself in the event any legal action
is taken.

#980881 v\5 - - 11433/394EX-10.6.3 Change in Control Agreement

TABLE OF CONTENTS

									
	Exhibit 10.6.3
	CHIEF EXECUTIVE OFFICER CHANGE IN CONTROL AGREEMENT
	EX-3.1.1.1 CERTIFICATE OF DECREASE
	EX-10.6.3 CHANGE IN CONTROL AGREEMENT
	EX-10.29.1 CHANGE IN CONTROL AGREEMENT
	EX-10.30.1 CHANGE IN CONTROL AGREEMENT
	EX-10.31 EMPLOYMENT AGREEMENT
	EX-10.31.1 CHANGE IN CONTROL AGREEMENT
	EX-10.32 EMPLOYMENT AGREEMENT
	EX-10.32.1 CHANGE IN CONTROL AGREEMENT
	EX-10.33 CHANGE IN CONTROL AGREEMENT
	EX-21 SUBSIDIARIES OF THE REGISTRANT
	EX-23 CONSENT OF PRICEWATERHOUSECOOPERS LLP

Exhibit 10.6.3

CHIEF EXECUTIVE OFFICER CHANGE IN CONTROL AGREEMENT

      THIS AGREEMENT dated August 31, 1999 is made by and between
PictureTel Corporation, a Delaware Corporation, (the “Company”) and Dr.
Norman E. Gaut, 25 Marrett Street, Lexington, MA 02173 (“Executive’’).

      WHEREAS the Company considers it essential to the best interests of
the Company, its shareholders, and its employees generally to foster the
continuous employment of the Executive; and

      WHEREAS the Board of Directors of the Company (the “Board”)
recognizes that, as is the case with many publicly held corporations,
the possibility of a Change in Control (as defined in the last Section
hereof) exists and that such possibility, and the resultant uncertainty,
may result in the departure or distraction of the Executive to the
detriment of the Company and its shareholders; and

      WHEREAS the Board has determined that appropriate steps should be
taken to encourage the continued attention and dedication of the
Executive to his assigned duties without distraction in the face of
potentially disrupting circumstances arising from the possibility of a
Change in Control;

      NOW THEREFORE, in consideration of the premises and the mutual
covenants herein contained and other good and valuable consideration,
the Company and the Executive hereby agree as follows:

      1.0 Defined Terms. The definition of capitalized terms used in this
Agreement is provided in the last Section hereof.

      2.0 Term of Agreement. This Agreement shall commence on the date
hereof and shall continue in effect through August 31, 2001; provided,
however, that commencing on September 1, 2000 and each September 1st
thereafter, the term of this Agreement shall automatically be extended
for one additional year unless, not later than December 31st preceding
that September 1st, the Company or the Executive shall have given notice
not to extend this Agreement or a Change in Control shall have occurred
prior to such December 31st; provided, however, if a Change in Control
shall have occurred during the term of this Agreement, this Agreement
shall continue in effect for a period of not less than thirty-six (36)
months beyond the date such Change in Control occurred.

      3.0 Company’s Covenants Summarized. In order to induce the
Executive to remain in the employ of the Company and in consideration of
the Executive’s covenants set forth in Section 4.0 hereof, the Company
agrees, under the conditions described herein, to pay the Executive the
“Severance Payments” described in Section 6.1 hereof and the other
payments and benefits described herein in the event the Executive’s
employment with the Company is terminated following a Change in Control
and during the term of this Agreement. No amount or benefit shall be
payable under this Agreement unless there shall have been (or, under the
terms hereof, there shall be deemed to have been) a termination of the
Executive’s employment with the Company following a Change in Control.
This Agreement shall not be construed as creating an express or implied
contract of employment prior to the date of a Change in Control and,
except as otherwise agreed in writing between the Executive and the
Company, the Executive shall not have any right to be retained in the
employ of the Company.

      4.0 The Executive’s Covenants. The Executive agrees that, subject
to the terms and conditions of this Agreement, in the event of a
Potential Change in Control during the term of this Agreement, the
Executive will remain in the employ of the Company until the earliest of
(A) a date which is six (6) months from the date of such Potential
Change of Control, (B) the date of a Change in Control, (C) the date of
termination by the Executive of the Executive’s employment for Good
Reason (determined by treating the Potential Change in Control as a
Change in Control in applying the definition of Good Reason), by reason
of death or Disability, or (D) the termination by the Company of the
Executive’s employment for any reason.

1

Table of Contents

      5.0 Compensation Other Than Severance Payments.

      5.1 Following a Change in Control during the term of this
Agreement, during any period that the Executive fails to perform the
Executive’s full-time duties with the Company as a result of incapacity
due to physical or mental illness, the Company shall pay the Executive’s
full salary to the Executive at the rate in effect at the commencement
of any such period, together with all compensation and benefits payable
to the Executive under the terms of any compensation or benefit plan,
program or arrangement maintained by the Company during such period,
until the Executive’s employment is terminated by the Company for
Disability.

      5.2 If the Executive’s employment shall be terminated for any
reason following a Change in Control during the term of this Agreement,
the Company shall pay the Executive’s full salary to the Executive
through the Date of Termination at the rate in effect at the time the
Notice of Termination is given, together with all compensation and
benefits payable to the Executive through the Date of Termination under
the terms of any compensation or benefit plan, program or arrangement
maintained by the Company prior to the Date of Termination.

      5.3 If the Executive’s employment shall be terminated for any
reason following a Change in Control during the term of this Agreement,
the Company shall pay the Executive’s normal post-termination
compensation and benefits to the Executive as such payments become due.
Such post-termination compensation and benefits shall be determined
under, and paid in accordance with, the Company’s retirement, insurance
and other compensation or benefit plans, programs and arrangements;
provided however, that the Severance Payments under Section 6.0 of this
Agreement shall be the only severance paid following a Change in Control
during the term of this Agreement.

      6.0 Severance Payments.

      6.1 Subject to Section 6.2 hereof, the Company shall pay the
Executive the payments described in this Section 6.1 (“Severance
Payments”) upon the termination of the Executive’s employment following
a Change in Control during the term of this Agreement, in addition to
the payments and benefits described in Section 5.0 hereof, unless such
termination is (A) by the Company for Cause, (B) by reason of Death or
Disability, or (C) by the Executive without Good Reason. The Executive’s
employment shall be deemed to have been terminated following a Change in
Control by the Company without Cause or by the Executive with Good
Reason if the Executive’s employment is terminated prior to a Change in
Control without Cause at the direction (or action which constitutes a
direction) of a Person who has entered into an agreement with the
Company the consummation of which will constitute a Change in Control or
if the Executive terminates his employment with Good Reason prior to a
Change in Control (determined by treating a Potential Change in Control
as a Change in Control in applying the definition of Good Reason) if the
circumstance or event which constitutes Good Reason occurs at the
direction (or action which constitutes a direction) of such Person.

		
	 	      (i) Subsequent to the Date of Termination, the Company shall make
cash severance payments to the Executive over a thirty-six (36)
month period in substantially equal bi-weekly installments, in an
amount equal to three (3) times the sum of (a) the higher of the
Executive’s annual base salary in effect immediately prior to the
occurrence of the event or circumstance upon which the Notice of
Termination is based or in effect immediately prior to the Change
in Control, and (b) the higher of the highest annual bonus paid to
the Executive in the three years preceding the year in which the
Date of Termination occurs or paid in the three years preceding
the year in which the Change in Control occurs.

		
	 	      (ii) For a thirty-six (36) month period after the Date of
Termination, the Company shall arrange to provide the Executive
with medical and dental insurance benefits substantially similar
to those which the Executive is receiving on the same premium cost
share basis immediately prior to the Notice of Termination
(without giving effect to any reduction in such benefits
subsequent to a Change in Control which reduction constitutes Good
Reason). Benefits otherwise receivable by the Executive pursuant
to this Section 6.1(ii) shall be reduced to the extent comparable
benefits are actually received by or made available to the
Executive without cost during the thirty-six (36) month period
following the Executive’s termination of employment (and any such
benefits actually received by the Executive shall be reported to
the Company by the Executive). If the benefits provided to the
Executive under this Section 6.1(ii) shall result in a decrease,
pursuant to Section 6.2, in the Change in Control Payments and
these Section 6.1(ii) benefits are thereafter reduced pursuant to
the immediately preceding sentence because of the receipt of
comparable benefits, the Company shall, at the time of such
reduction, pay to the Executive the lesser of (a) the amount of
the decrease made in the Severance Payments pursuant to Section
6.2, or (b) the maximum amount which can be paid to the Executive
without being, or causing any other payment to be, nondeductible
by reason of section 28OG of the Code.

2

Table of Contents

      6.2 Notwithstanding any other provisions of this Agreement, in the
event that any payment or benefit received or to be received by the
Executive in connection with a Change in Control or the termination of
the Executive’ s employment (whether or not received pursuant to the
terms of this Agreement) (all such payments and benefits, including but
not limited to the Severance Payments, being hereinafter called the
“Total Payments”) would be subject in whole or in part to the Excise
Tax, then the Severance Payments shall be reduced to the extent, but
only to the extent, necessary so that no portion of the Total Payments
is subject to the Excise Tax; provided, that no such reduction shall be
effected unless the net amount of the Total Payments after such
reduction in the Severance Payments and after deduction of the net
amount of federal, state and local income taxes on such reduced Total
Payments would be greater than the excess of (A) the net amount of the
Total Payments without such reduction in the Severance Payments but
after deduction of the net amount of federal, state and local income
taxes (other than the Excise Tax) on such unreduced Total Payments, over
(B) the Excise Tax to which the Total Payments are subject. The
determination as to whether a reduction in Severance Payments is to be
made under this Section 6.2 and, if so, the amount of any such reduction
shall be made by the Company’s auditors or by such other firm of
certified public accountants, benefits consulting firm or legal counsel
as the Board may designate prior to the Change in Control.

      The Company shall provide the executive with its calculations of
the amounts referred to in this Section 6.2 and such supporting
materials as are reasonably necessary for the Executive to evaluate the
Company’s calculations.

      6.3 The Company also shall pay to the Executive all legal fees and
expenses incurred by the Executive as a result of a termination which
entitles the Executive to the Severance Payments (including all such
fees and expenses, if any, incurred in disputing any such termination or
in seeking in good faith to obtain or enforce any benefit or right
provided by this Agreement or in connection with any tax audit or
proceeding to the extent attributable to the application of section 4999
of the Code to any payment or benefit provided hereunder). Such payments
shall be made within five (5) business days after delivery of the
Executive’s written requests for payment accompanied with such evidence
of fees and expenses incurred as the Company reasonably may require.

      7.0 Termination Procedures and Compensation During Dispute.

      7.1 Notice of
Termination. After a Change in Control and during the
term of this Agreement, any purported termination of the Executive’s
employment (other than by reason of death) shall be communicated by
written Notice of Termination from one party hereto to the other party
hereto in accordance with Section 10.0 hereof. For purposes of this
Agreement, a “Notice of Termination” shall mean a notice which shall
indicate the specific termination provision in this Agreement relied
upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated. Further, a
Notice of Termination for Cause is required to include a copy of a
resolution duly adopted by the affirmative vote of not less than
three-quarters (3/4) of the entire membership (excluding the Executive,
if a Director) of the Board at a meeting of the Board which was called
and held for the purpose of considering such termination (after
reasonable notice to the Executive and an opportunity for the Executive,
together with the Executive’s counsel, to be heard before the Board)
finding that, in the good faith opinion of the Board, the Executive was
guilty of conduct set forth in clause (i) or (ii) of the definition of
Cause herein, and specifying the particulars thereof in detail.

      7.2 Date of Termination. “Date of Termination”, with respect to any
purported termination of the Executive’s employment after a Change in
Control during the term of this Agreement, shall mean:

		
	 	      (A) if the Executive’s employment is terminated for Disability,
thirty (30) days after Notice of Termination is given (provided
that the Executive shall not have returned to the full-time
performance of the Executive’s duties during such thirty (30) day
period), and

		
	 	      (B) if the Executive’s employment is terminated for any other
reason, the date specified in the Notice of Termination (which, in
the case of a termination by the Company, shall not be less than
thirty (30) days (except in the case of a termination for Cause)
and, in the case of a termination by the Executive, shall not be
less than fifteen (15) days nor more than sixty (60) days,
respectively, from the date such Notice of Termination is given).

3

Table of Contents

      7.3 Dispute Concerning
Termination. If within fifteen (15) days
after any Notice of Termination is given, or, if later, prior to the
Date of Termination (as determined without regard to this Section 7.3),
the party receiving such Notice of Termination notifies the other party
that a dispute exists concerning the termination, the Date of
Termination shall be the date on which the dispute is finally resolved,
either by mutual written agreement of the parties, by arbitrator’s
award, or, to the extent permitted by Section 14.0, by a final judgment,
order or decree of a court of competent jurisdiction on the arbitrator’s
award (which is not appealable or with respect to which the time for
appeal therefrom has expired and no appeal has been perfected); provided
further that the Date of Termination shall be extended by a notice of
dispute only if such notice is given in good faith and the party giving
such notice pursues the resolution of such dispute with reasonable
diligence.

      7.4 Compensation During
Dispute. If a purported termination occurs
following a Change in Control and during the term of this Agreement and
such termination is disputed in accordance with Section 7.3 hereof, the
Company shall continue to pay the Executive the full compensation in
effect when the notice giving rise to the dispute was given (including,
but not limited to, salary) and continue the Executive as a participant
in all compensation, benefit and insurance plans in which the Executive
was participating when the notice giving rise to the dispute was given,
until the dispute is finally resolved in accordance with Section 7.3
hereof. Amounts paid under this Section 7.4 are in addition to all other
amounts due under this Agreement (other than those due under Section 5.2
hereof) and shall not be offset against or reduce any other amounts due
under this Agreement.

      8.0 No Mitigation. The Company agrees that, if the Executive’s
employment by the Company is terminated during the term of this
Agreement, the Executive is not required to seek other employment or to
attempt in any way to reduce any amounts payable to the Executive by the
Company pursuant to Section 6.0 or Section 7.4. Further, the amount of
any payment or benefit provided for in Section 6.0 (other than Section
6.1(ii)) or Section 7.4 shall not be reduced by any compensation earned
by the Executive as the result of employment by another employer, by
retirement benefits, by offset against any amount claimed to be owed by
the Executive to the Company, or otherwise.

      9.0 Successors; Binding Agreement.

      9.1 In addition to any obligations imposed by law upon any
successor to the Company, the Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and / or assets
of the Company to expressly assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. Failure of
the Company to obtain such assumption and agreement prior to the
effectiveness of any such succession shall be a breach of this Agreement
and shall entitle the Executive to compensation from the Company in the
same amount and on the same terms as the Executive would be entitled to
hereunder if the Executive were to terminate the Executive’s employment
for Good Reason after a Change in Control, except that, for purposes of
implementing the foregoing, the date on which any such succession
becomes effective shall be deemed the Date of Termination. In any event
this agreement shall be binding upon the Company and any successors or
assignee.

      9.2 This Agreement shall inure to the benefit of and be enforceable
by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.
If the Executive shall die while any amount would still be payable to
the Executive hereunder (other than amounts which, by their terms,
terminate upon the death of the Executive) if the Executive had
continued to live, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of this Agreement to the
executors, personal representatives or administrators of the Executive’s
estate.

      10.0 Notices. For the purpose of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing
and shall be deemed to have been duly given when delivered in hand or
when delivered or mailed by United States certified mail, return receipt
requested, postage prepaid, addressed to the respective addresses set
forth below, or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notice of
change of address shall be effective only upon actual receipt:

4

Table of Contents

            To the Company:

            PictureTel Corporation

            100 Minuteman Road

            Andover, Massachusetts 01810

            Attention: General Counsel

            To the Executive:

            Dr. Norman E. Gaut

            25 Marrett Street

            Lexington, MA 02173

      11.0 Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by the Executive and such officer as may
be specifically designated by the Board. No waiver by either party
hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof have been
made by either party which are not expressly set forth in this
Agreement. The validity, interpretation, construction and performance of
this Agreement shall be governed by the laws of the Commonwealth of
Massachusetts and the Agreement shall be an instrument under seal. All
references to sections of the Exchange Act or the Code shall be deemed
also to refer to any successor provisions to such sections. Any payments
provided for hereunder shall be paid net of any applicable withholding
required under federal, state or local law and any additional
withholding to which the Executive has agreed. The obligations of the
Company and the Executive under Sections 6.0, 7.0, 8.0 and 14.0 shall
survive the expiration of the term of this Agreement.

      12.0 Validity. The invalidity or unenforceability or any provision
of this Agreement shall not affect the validity or enforceability of any
other provision of this Agreement, which shall remain in full force and
effect. In addition, if any provision of this Agreement is held invalid
or unenforceable by a court of competent jurisdiction, then such
provision shall be deemed modified to the extent necessary to enable
such provision to be valid and enforceable.

      13.0 Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of
which together will constitute one and the same instrument.

      14.0 Settlement of Disputes; Arbitration. All claims by the
Executive for benefits under this Agreement shall be directed to the
Board and shall be in writing. Any denial by the Board of a claim for
benefits under this Agreement shall be delivered to the Executive in
writing and shall set forth the specific reasons for the denial and the
specific provisions of this Agreement relied upon. The Board then shall
afford a reasonable opportunity to the Executive for a review of the
decision denying a claim and shall further allow the Executive to appeal
to the Board a decision of the Board within sixty (60) days after
notification by the Board that the Executive’s claim has been denied.
Any further dispute or controversy arising under or in connection with
this Agreement shall be settled exclusively by arbitration in Boston,
Massachusetts in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the arbitrator’s
award in any court having jurisdiction; provided, however, that the
Executive shall be entitled to seek specific performance of the
Executive’s right to be paid until the Date of Termination during the
pendency of any dispute or controversy arising under or in connection
with this Agreement in such arbitration or by a proceeding in the
federal court in Boston or the Massachusetts state court in Essex
County.

      15.0 Definitions. For purposes of this Agreement, the following
terms shall have the meanings indicated below:

		
	 	      (A) “Base Amount” shall have the meaning defined in section
28OG(b)(3) of the Code.

		
	 	      (B) “Beneficial Owner” shall have the meaning defined in Rule
13d-3 under the Exchange Act.

		
	 	      (C) “Board” shall mean the Board of Directors of the Company.

5

Table of Contents

		
	 	      (D) “Cause” for termination by the Company of the Executive’s
employment, after any Change in Control, shall mean:

		
	 	      (i) the willful and continued failure by the Executive to
substantially perform the Executive’s duties with the Company
(other than any such failure resulting from the Executive’s
incapacity due to physical or mental illness or any such actual
or anticipated failure after the issuance of a Notice of
Termination for Good Reason by the Executive pursuant to
Section 7.1) for thirty (30) days after a written demand for
substantial performance is delivered to the Executive by the
Board, which demand specifically identifies the manner in which
the Board believes that the Executive has not substantially
performed the Executive’s duties, or

		
	 	      (ii) the willful engaging by the Executive in conduct which is
demonstrably and materially injurious to the Company or its
subsidiaries, monetarily or otherwise.

For purposes of clauses (i) and (ii) of this definition, no act,
or failure to act, on the Executive’s part shall be deemed
“Willful” unless done, or omitted to be done, by the Executive not
in good faith and without reasonable belief that the Executive’s
act, or failure to act, was in the best interest of the Company.

		
	 	      (E) A “Change in Control”, shall be deemed to have occurred if the
conditions set forth in any one of the following paragraphs shall
have been satisfied:

		
	 	      (i) any Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Company representing
twenty-five (25) percent or more of the combined voting power
of the Company’s then outstanding securities; or

		
	 	      (ii) during any period of not more than two consecutive years
(not including any period prior to the execution of this
Agreement), individuals who at the beginning of such period
constitute the Board and any new director (other than a
director designated by a Person who has entered into an
agreement with the Company to effect a transaction described in
clause (i), (ii) or (iii) of this Section 15(E)) whose election
by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds (2 /
3) of the directors then still in office who either were
directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for
any reason to constitute a majority thereof; or

		
	 	      (iii) the shareholders of the Company approve a merger or
consolidation of the Company with any other corporation, other
than (a) a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the
surviving entity) sixty (60) percent or more of the combined
voting power of the voting securities of the Company or such
surviving entity outstanding immediately after such merger or
consolidation, or (b) a merger or consolidation effected to
implement a recapitalization of the Company (or similar
transaction) in which no Person acquires twenty-five (25)
percent or more of the combined voting power of the Company’s
then outstanding securities; or

		
	 	      (iv) the shareholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all the
Company’s assets.

		
	 	      (F) “Code” shall mean the Internal Revenue Code of 1986, as
amended from time to time.

		
	 	      (G) “Company” shall mean PictureTel Corporation and any successor
to its business and/or assets which assumes and agrees to perform
this Agreement by operation of law, or otherwise (except in
determining, under Section 15(E) hereof, whether or not any Change
in Control of the Company has occurred in connection with such
succession).

		
	 	      (H) “Date of Termination” shall have the meaning stated in
Section 7.2 hereof.

6

Table of Contents

		
	 	      (I) “Disability” shall be deemed the reason for the termination by
the Company of the Executive’s employment, if, as a result of the
Executive’s incapacity due to physical or mental illness, the
Executive shall have been absent from the full-time performance of
the Executive’s duties with the Company for a period of six (6)
consecutive months, the Company shall have given the Executive a
Notice of Termination for Disability, and, within thirty (30) days
after such Notice of Termination is given, the Executive shall not
have returned to the full-time performance of the Executive’s
duties.

		
	 	      (J) “Exchange Act” shall mean the Securities Exchange Act of 1934,
as amended from time to time.

		
	 	      (K) “Excise Tax” shall mean any excise tax imposed under section
4999 of the Code.

		
	 	      (L) “Executive” shall mean the individual named in the first
paragraph of this Agreement.

		
	 	      (M) “Good Reason” for termination by the Executive of the
Executive’s employment shall mean:

		
	 	      (i) during the period commencing thirty days after the Change
in Control and terminating six (6) months after the Change in
Control, a good faith determination by the Executive that, as a
result of the Change in Control, the Executive is unable to
discharge his duties effectively, or

		
	 	      (ii) the occurrence (without the Executive’s express written
consent) of any one of the following acts by the Company, or
failures by the Company to act, unless, in the case of any act
or failure to act described in paragraph (a), (e), (f), or (g),
below, such act or failure to act is corrected prior to the
Date of Termination specified in the Notice of Termination
given in respect thereof:

		
	 	      (a) the assignment to the Executive of any duties
inconsistent with the Executive’s status as a senior
executive officer of the Company or a substantial adverse
alteration in the nature or status of the Executive’s
responsibilities from those in effect immediately prior to
the Change in Control;

		
	 	      (b) a reduction by the Company in the Executive’s annual
base salary as in effect on the date hereof or as the same
may be increased from time to time;

		
	 	      (c) the relocation of the Company’s principal executive
offices to a location more than thirty (30) miles] from the
location of such offices immediately prior to the Change in
Control or the Company’s requiring the Executive to be based
anywhere other than the Company’s principal executive
offices, except for required travel on the Company’s
business to an extent substantially consistent with the
Executive’s present business travel obligations;

		
	 	      (d) the failure, not corrected within five (5) days after
written notice thereof to the Company, by the Company,
without the Executive’s consent, to pay to the Executive any
portion of the Executive’s current compensation, or to pay
to the Executive any portion of an installment of deferred
compensation under any deferred compensation program of the
Company, within seven (7) days of the date such compensation
is due;

		
	 	      (e) the failure, not corrected within five (5) days after
written notice thereof to the Company, by the Company to
continue in effect any compensation plan in which the
Executive participates immediately prior to the Change in
Control which is material to the Executive’s total
compensation, including but not limited to the Company’s
Equity Incentive Plan and Employee Stock Purchase Plan or
any substitute plans adopted prior to the Change in Control,
unless an equitable arrangement (embodied in an ongoing
substitute or alternative plan) has been made with respect
to such plan, or the failure by the Company to continue the
Executive’s participation therein (or in such substitute or
alternative plan) on a basis not materially less favorable,
both in terms of the amount of benefits provided and the
level of the Executive’s participation relative to other
participants, as existed at the time of the Change in
Control;

7

Table of Contents

		
	 	      (f) the failure, not corrected within five (5) days after
written notice thereof to the Company, by the Company to
continue to provide the Executive with benefits
substantially similar to those enjoyed by the Executive
under any of the Company’s pension, life insurance, medical,
health and accident, or disability plans in which the
Executive was participating at the time of the Change in
Control (other than changes required by law), the taking of
any action by the Company which would directly or indirectly
materially reduce any of such benefits or deprive the
Executive of any material fringe benefit enjoyed by the
Executive at the time of the Change in Control, or the
failure by the Company to provide the Executive with the
number of paid vacation days to which the Executive is
entitled on the basis of years of service with the Company
in accordance with the Company’s normal vacation policy in
effect at the time of the Change in Control; or

		
	 	      (g) any purported termination of the Executive’s employment
which is not effected pursuant to a Notice of Termination
satisfying the requirements of Section 7.1; for purposes of
this Agreement, no such purported termination shall be
effective.

	 	 	The Executive’s right to terminate the Executive’s
employment for Good Reason shall not be affected by the
Executive’s incapacity due to physical or mental illness.
The Executive’s continued employment shall not constitute
consent to, or a waiver of rights with respect to, any act
or failure to act constituting Good Reason hereunder.

		
	 	      (N) “Notice of Termination” shall have the meaning stated in
Section 7.1 hereof.

		
	 	      (O) “Person” shall have the meaning given in Section 3(a)(9) of
the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof; however, a Person shall not include:

		
	 	      (i) the Company,

		
	 	      (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company, or

		
	 	      (iii) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company.

		
	 	      (P) “Potential Change in Control’, shall be deemed to have
occurred if the conditions set forth in any one of the following
paragraphs shall have been satisfied:

		
	 	      (i) the Company enters into an agreement, the consummation of
which would result in the occurrence of a Change in Control;

		
	 	      (ii) the Company or any Person publicly announces an intention
to take or to consider taking actions which, if consummated,
would constitute a Change in Control;

		
	 	      (iii) the Board adopts a resolution to the effect that, for
purposes of this Agreement, a Potential Change in Control has
occurred.

		
	 	      (Q) “Severance Payments” shall mean those payments described in
Section 6.1 hereof.

		
	 	      (R) “Total Payments” shall mean those payments described in Section
6.2 hereof.

For the Board of Directors

of PictureTel Corporation

	 	 	 
	 	 	
        Executive:
	
	 	

	
        
        Lawrence Bornstein

        	 	
                      Norman Gaut
	
        
        Vice President, Human Resources

        	 	 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00024-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00024-of-00352.parquet"}]]