Document:

[LETTER SEPARATION AGREEMENT - FORM]

 

EXHIBIT

10.3

 

January 2, 2002

 

Randy Acres

163 Altura Vista

Los Gatos, CA 95030

 

Dear Randy:

 

This letter sets forth the terms and conditions of our agreement (the

“Agreement”) regarding your resignation of employment with First Virtual

Communications, Inc. (the “Company”). 

The Agreement shall become effective on the day this Agreement is signed

by you (the “Effective Date”).  You and

the Company hereby agree as follows:

 

1.             RESIGNATION.  The Company accepts

your resignation as Vice President, Finance and Chief Financial Officer of the

Company as of January 2, 2002 (the “Separation Date”).

 

2.             ACCRUED

SALARY AND VACATION.  You

agree and acknowledge that the Company has paid you all accrued salary, and all

accrued and unused vacation benefits earned through the Separation Date, if

any, subject to standard payroll deductions, withholding taxes and other

obligations.  You are entitled to this

payment regardless of whether or not you sign this Agreement.

 

3.             EXPENSE

REIMBURSEMENT.  Within ten (10) business days of the

Effective Date, you agree that you will submit your final documented expense

reimbursement statement reflecting all business expenses you incurred prior to

and including the Separation Date, if any, for which you seek reimbursement.  The Company shall reimburse your expenses

pursuant to Company policy and regular business practice.

 

4.             SEVERANCE.  Although the Company has

no policy or procedure for providing severance benefits, in exchange for the

promises and covenants set forth herein, the Company agrees to make severance

payments to you in the form of continuation of your base salary in effect on

the Separation Date for a period of twelve (12) weeks following the Effective

Date of this Agreement.  These payments

will be made on the Company’s ordinary payroll dates, and will be subject to

standard payroll deductions and withholdings. In addition the Company agrees

that you may have your existing IBM ThinkPad computer and Nokia mobile

telephone.

 

5.             INSURANCE

BENEFITS.  To

the extent provided by the federal COBRA law or, if applicable, state insurance

laws, and by the Company’s current group health insurance policies, you will be

eligible to continue your health insurance benefits at your own expense after

March 31, 2002.  Later, you may be

able to convert to an individual policy through the provider of the Company’s

health insurance, if you wish.  You will

be provided with a separate notice of your COBRA rights.

 

 

6.             DEBT  RE-PAYMENT SCHEDULE. Pursuant to two Secured Promissory Notes dated

May 31, 2000 and November 10, 2000 (the “Promissory Notes”), the Company has

loaned you the total sum of $300,000 in connection with your purchase of the

real property located at 163 Altura Vista, Los Gatos, California (the

“Property”).  The Promissory Notes are secured

by that property.  Accordingly, upon

your execution of this Agreement, you acknowledge and re-affirm your obligation

to re-pay $300,000 and the fact that this loan is secured by the Property.  In exchange for the consideration described

in this agreement you agree that paragraph 2 of the Promissory Notes is hereby

amended to provide for the following re-payment terms, and that you will re-pay

the note according to the following schedule: payment of all sums due under the

capital Promissory capital notes on or before June 30, 2002.  All other terms of the Promissory Notes

shall remain in full force and effect. 

In the event you sell the Property, the entire outstanding balance shall

be due and payable immediately.

 

7.             OTHER

COMPENSATION AND BENEFITS.  Except as expressly provided herein, you acknowledge and agree

that you are not entitled to and will not receive any additional compensation,

severance, stock options, stock or benefits from the Company.  You agree and understand that all vesting

under any stock compensation award (e.g., incentive stock option, nonqualified

stock option, stock purchase agreement, or restricted stock bonus agreement)

from the Company shall cease upon the Separation Date.  Any and all rights that you may have in any

Employee Stock Purchase Plan or Stock Option Plan are determined in accordance

with the provisions of the applicable plan and any agreements signed by you.

 

8.             TRANSITION

SERVICES.  In

exchange for the consideration provided herein, you agree that for a period of

two weeks, through close of business January 16, 2002, you will be on call and

available at the Company’s reasonable request to provide transition services in

the form of status reports, information, and other reasonable services

regarding pending projects and issues.

 

9.             COMPANY

PROPERTY.  Upon

the Separation Date, you agree to return to the Company all Company documents

(and all copies thereof) and other Company property in your possession or your

control, including, but not limited to, Company files, business plans, notes,

samples, sales notebooks, drawings, specifications, calculations, sequences,

data, computer-recorded information, tangible property, including, but not

limited to, cellular phones, computers, credit cards, entry cards, keys and any

other materials of any nature pertaining to your work with the Company, and any

documents or data of any description (or any reproduction of any documents or

data) containing or pertaining to any proprietary or confidential material of

the Company.

 

10.          PROPRIETARY

INFORMATION OBLIGATIONS.  You

acknowledge your continuing obligations under your Proprietary Information and

Inventions Agreement, a copy of which is attached hereto as Exhibit A.

 

11.          NON-DISPARAGEMENT.  You agree that you will

not at any time disparage the Company, or its officers, directors, employees,

shareholders and agents, in any manner likely to be harmful to them or their

business, business reputation or personal reputation; provided that you shall

respond accurately and fully to any questions, inquiry or request for

information when required by legal process.

 

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12.          CONFIDENTIALITY

AND PUBLICITY.  The

provisions of this Agreement shall be held in strictest confidence by you and

the Company and shall not be publicized or disclosed in any manner whatsoever;

provided, however, that: (a) you may disclose this Agreement, in confidence, to

your immediate family; (b) the parties may disclose this Agreement in

confidence to their respective attorneys, accountants, auditors, tax preparers,

and financial advisors; (c) the Company may disclose this Agreement as

necessary to fulfill standard or legally required corporate reporting or

disclosure requirements; and (d) the parties may disclose this Agreement

insofar as such disclosure may be necessary to enforce its terms or as

otherwise required by law.

 

13.          RELEASE

OF CLAIMS.  In

exchange for the consideration provided to you by this Agreement that you are

not otherwise entitled to receive, you hereby generally and completely release

the Company and its directors, officers, employees, shareholders, partners,

agents, attorneys, predecessors, successors, parent and subsidiary entities,

insurers, affiliates, and assigns from any and all claims, liabilities and obligations,

both known and unknown, that arise out of or are in any way related to events,

acts, conduct, or omissions occurring prior to your signing this

Agreement.  This general release

includes, but is not limited to: (1) all claims arising out of or in any way

related to your employment with the Company or the termination of that

employment; (2) all claims related to your compensation or benefits from the

Company, including salary, bonuses, commissions, vacation pay, expense

reimbursements, severance pay, fringe benefits, stock, stock options, or any

other ownership interests in the Company; (3) all claims for breach of

contract, wrongful termination, and breach of the implied covenant of good

faith and fair dealing; (4) all tort claims, including claims for fraud,

defamation, emotional distress, and discharge in violation of public policy;

and (5) all federal, state, and local statutory claims, including but not

limited to claims for discrimination, harassment, retaliation, attorneys’ fees,

or other claims arising under the federal Civil Rights Act of 1964 (as

amended), the federal Americans with Disabilities Act of 1990, and the

California Fair Employment and Housing Act (as amended).

 

14.          SECTION

1542 WAIVER.  In

giving this release, which includes claims which may be unknown to you at

present, you hereby acknowledge that you have read and understand Section 1542

of the Civil Code of the State of California which reads as follows:

 

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.

 

You hereby expressly waive and relinquish all rights and benefits under

this section and any law or legal principle of similar effect in any

jurisdiction with respect to claims released hereby.

 

15.          NO

ADMISSIONS.  The

parties hereto hereby acknowledge that this is a compromise of various matters,

and that the promised payments in consideration of this Agreement shall not be

construed to be an admission of any liability or obligation by either party to

the other party or to any other person whomsoever.

 

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16.          ENTIRE

AGREEMENT.  This

Agreement, including Exhibit A, constitutes the complete, final and exclusive

embodiment of the entire Agreement between you and the Company with regard to

the subject matter hereof.  It is

entered into without reliance on any promise or representation, written or

oral, other than those expressly contained herein.  It may not be modified except in a writing signed by you and a

duly authorized officer of the Company. 

Each party has carefully read this Agreement, has been afforded the

opportunity to be advised of its meaning and consequences by his or its

respective attorneys, and signed the same of his or its free will.

 

17.          SUCCESSORS

AND ASSIGNS. 

This Agreement shall bind the heirs, personal representatives,

successors, assigns, executors, and administrators of each party, and inure to

the benefit of each party, its agents, directors, officers, employees,

servants, heirs, successors and assigns.

 

18.          APPLICABLE

LAW.  This

Agreement shall be deemed to have been entered into and shall be construed and

enforced in accordance with the laws of the State of California as applied to

contracts made and to be performed entirely within California.

 

19.          ATTORNEYS’

FEES.  In the

event of any litigation arising out of or relating to this Agreement, its

breach or enforcement, including an action for declaratory relief, the

prevailing party in such action or proceeding shall be entitled to receive his

or its damages, court costs, and all out-of-pocket expenses, including

attorneys’ fees.  Such recovery shall

include court costs, out-of-pocket expenses, and attorneys’ fees on appeal, if

any.

 

20.          SEVERABILITY.  If a court of competent

jurisdiction determines that any term or provision of this Agreement is invalid

or unenforceable, in whole or in part, then the remaining terms and provisions

hereof shall be unimpaired.  Such court

will have the authority to modify or replace the invalid or unenforceable term

or provision with a valid and enforceable term or provision that most

accurately represents the parties’ intention with respect to the invalid or

unenforceable term or provision.

 

21.          INDEMNIFICATION.  Each party will indemnify and save harmless

each other party hereto from any loss incurred directly or indirectly by reason

of the falsity or inaccuracy of any representation made herein.

 

22.          AUTHORIZATION.  Each party warrants and represents that

there are no liens or claims of lien or assignments in law or equity or

otherwise of or against any of the claims or causes of action released herein

and, further, that you are fully entitled and duly authorized to give your

complete and final general release and discharge.

 

23.          COUNTERPARTS.  This Agreement may be executed in two

counterparts, each of which shall be deemed an original, all of which together

shall constitute one and the same instrument.

 

24.          SECTION

HEADINGS.  The

section and paragraph headings contained in this Agreement are for reference

purposes only and shall not affect in any way the meaning or interpretation of

this Agreement.

 

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[Intentionally Left

Blank]

 

Please confirm your assent to the foregoing terms and conditions of our

Agreement by signing and returning a copy of this letter to me on or before

January 8, 2002.

 

Sincerely,

 

FIRST VIRTUAL COMMUNICATIONS, INC.

 

 

	

  /s/ Killko Caballero

  	

   

  
	

  Killko

  Caballero

  
	

  President and Chief Executive Officer

  

 

Attachments:

Exhibit A — Proprietary Information and Inventions Agreement

 

HAVING READ AND REVIEWED THE FOREGOING, I HEREBY AGREE TO AND

ACCEPT THE TERMS AND CONDITIONS OF THIS AGREEMENT AS STATED ABOVE.

 

	

  Dated: January 2, 2002

  	

  /s/ Randy Acres

  	

   

  
	

   

  	

  RANDY ACRES

  

 

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EXHIBIT A

PROPRIETARY INFORMATION AND

INVENTIONS AGREEMENT

 

FIRST VIRTUAL COMMUNICATIONS, INC.

 

EMPLOYEE

PROPRIETARY INFORMATION,

INVENTIONS,

AND NON-COMPETITION AGREEMENT

In consideration of my

employment or continued employment by First Virtual Communications,

Inc. (the “Company”), and the compensation now and

hereafter paid to me, I hereby agree as follows:

1.             Nondisclosure.

1.1      Recognition

of Company’s Rights; Nondisclosure.  At all times during my employment and thereafter, I will hold in

strictest confidence and will not disclose, use, lecture upon or publish any of

the Company’s Proprietary Information (defined below), except as such

disclosure, use or publication may be required in connection with my work for

the Company, or unless an officer of the Company expressly authorizes such in

writing.  I will obtain the Company’s

written approval before publishing or submitting for publication any material

(written, verbal, or otherwise) that relates to my work at the Company and/or

incorporates any Proprietary Information. 

I hereby assign to the Company any rights I may have or acquire in such

Proprietary Information and recognize that all Proprietary Information shall be

the sole property of the Company and its assigns.  I have been informed and acknowledge that the unauthorized taking

of the Company’s trade secrets may subject me to civil and/or criminal

penalties.

1.2      Proprietary

Information.  The term

“Proprietary

Information” shall mean any and all confidential and/or proprietary

knowledge, data or information of the Company. 

By way of illustration but not limitation, “Proprietary Information”

includes (a) trade secrets, inventions, mask works, ideas, processes,

formulas, source and object codes, data, programs, other works of authorship,

know-how, improvements, discoveries, developments, designs and techniques

(hereinafter collectively referred to as “Inventions”); and (b) information

regarding plans for research, development, new products, marketing and selling,

business plans, budgets and unpublished financial statements, licenses, prices

and costs, suppliers and customers; and (c) information regarding the skills

and compensation of other employees of the Company. Notwithstanding the

foregoing, it is understood that, subject to the restrictions set forth in

Sections 5 or 6 herein, at all such times, I am free to use information

which is generally known in the trade or industry, which is not gained as

result of a breach of this Agreement, and my own, skill, knowledge, know-how

and experience to whatever extent and in whichever way I wish.

1.3      Third

Party Information.  I

understand, in addition, that the Company has received and in the future will

receive from third parties confidential or proprietary information (“Third Party

Information”) subject to a duty on the Company’s part to maintain

the confidentiality of such information and to use it only for certain limited

purposes.  During the term of my

employment and thereafter, I will hold Third Party Information in the strictest

confidence and will not disclose to anyone (other than Company personnel who

need to know such information in connection with their work for the Company) or

use, except in connection with my work for the Company, Third Party Information

unless expressly authorized by an officer of the Company in writing.

1.4      No

Improper Use of Information of Prior Employers and Others.  During my employment by the Company I will

not improperly use or disclose any confidential information or trade secrets,

if any, of any former employer or any other person to whom I have an obligation

of confidentiality, and I will not bring onto the premises of the Company any

unpublished documents or any property belonging to any former employer or any

other person to whom I have an obligation of confidentiality unless consented

to in writing by that former employer or person.  It is understood that the foregoing restriction does not apply to

CUseeMe Networks (the Company’s predecessor-in-interest).  I will use in the performance of my duties

only information which is generally known and used by persons with training and

experience comparable to my own, which is common knowledge in the industry or

otherwise legally in the public domain, or which is otherwise provided or

developed by the Company or its predecessor-in-interest.

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2.             Assignment of Inventions.

2.1      Proprietary

Rights.  The term “Proprietary

Rights” shall mean all trade secret, patent, copyright, mask work

and other intellectual property rights or “moral rights” throughout the

world.  “Moral rights” refers to any

rights to claim authorship of an Invention or to object to or prevent the

modification of any Invention, or to withdraw from circulation or control the

publication or distribution of any Invention, and any similar right, existing

under judicial or statutory law of any country in the world, or under any

treaty, regardless of whether or not such right is denominated or generally

referred to as a “moral right.”

2.2      Prior

Inventions. 

Inventions, if any, patented or unpatented, which I made prior to the

commencement of my employment with the Company are excluded from the scope of

this Agreement.  To preclude any

possible uncertainty, I have set forth on Exhibit A (Previous Inventions)

attached hereto a complete list of all Inventions that I have, alone or jointly

with others, conceived, developed or reduced to practice or caused to be

conceived, developed or reduced to practice prior to the commencement of my

employment with the Company, that I consider to be my property or the property

of third parties and that I wish to have excluded from the scope of this

Agreement (collectively referred to as “Prior Inventions”).  If disclosure of any such Prior Invention

would cause me to violate any prior confidentiality agreement, I understand

that I am not to list such Prior Inventions in Exhibit A but am only

to disclose a cursory name for each such invention, a listing of the party(ies)

to whom it belongs and the fact that full disclosure as to such inventions has

not been made for that reason. A space is provided on Exhibit A for such

purpose.  If no such disclosure is

attached, I represent that there are no Prior Inventions.  If, in the course of my employment with the

Company, I incorporate a Prior Invention into a Company product, process or

machine, the Company is hereby granted and shall have a nonexclusive,

royalty-free, irrevocable, perpetual, worldwide license (with rights to

sublicense through multiple tiers of sublicensees) to make, have made, modify,

use and sell such Prior Invention. 

Notwithstanding the foregoing, I agree that I will not incorporate, or

permit to be incorporated, Prior Inventions in any Company Inventions without

the Company’s prior written consent.

2.3      Assignment

of Inventions. 

Subject to Sections 2.4, and 2.6, I hereby assign and agree to assign in

the future (when any such Inventions or Proprietary Rights are first reduced to

practice or first fixed in a tangible medium, as applicable) to the Company all

my right, title and interest in and to any and all Inventions (and all

Proprietary Rights with respect thereto) whether or not patentable or

registrable under copyright or similar statutes, made or conceived or reduced

to practice or learned by me, either alone or jointly with others, during the

period of my employment with the Company. 

Inventions assigned to the Company, or to a third party as directed by

the Company pursuant to this Section 2, are hereinafter referred to as “Company

Inventions.”

2.4      Unassigned

Inventions.  I

recognize that this Agreement will not be deemed to require assignment of any

invention that was developed entirely on my own time without using the

Company’s equipment, supplies, facilities, or trade secrets and neither related

to the Company’s actual or anticipated business, research or development, nor

resulted from work performed by me for the Company.

2.5      Obligation

to Keep Company Informed. 

During the period of my employment and for six (6) months after

termination of my employment with the Company, I will promptly disclose to the

Company fully and in writing all Inventions authored, conceived or reduced to

practice by me, either alone or jointly with others.  In addition, I will promptly disclose to the Company all patent

applications filed by me or on my behalf within a year after termination of

employment.  The Company will keep in

confidence and will not use for any purpose or disclose to third parties

without my consent any confidential information disclosed in writing to the

Company pursuant to this Agreement.

2.6      Government

or Third Party.  I

also agree to assign all my right, title and interest in and to any particular

Company Invention to a third party, including without limitation the United

States, as directed by the Company.

2.7      Works

for Hire.  I

acknowledge that all original works of authorship which are made by me (solely

or jointly with others) within the scope of my employment and which are

protectable by copyright are “works made for hire,” pursuant to 

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United States

Copyright Act (17 U.S.C., Section 101).

2.8      Enforcement

of Proprietary Rights. 

I will assist the Company in every proper way to obtain, and from time

to time enforce, United States and foreign Proprietary Rights relating to

Company Inventions in any and all countries. 

To that end I will execute, verify and deliver such documents and

perform such other acts (including appearances as a witness) as the Company may

reasonably request for use in applying for, obtaining, perfecting, evidencing,

sustaining and enforcing such Proprietary Rights and the assignment

thereof.  In addition, I will execute,

verify and deliver assignments of such Proprietary Rights to the Company or its

designee.  My obligation to assist the

Company with respect to Proprietary Rights relating to such Company Inventions

in any and all countries shall continue beyond the termination of my employment,

but the Company shall compensate me at a reasonable rate after my termination

for the time actually spent by me at the Company’s request on such assistance.

In the event the

Company is unable for any reason, after reasonable effort, to secure my

signature on any document needed in connection with the actions specified in

the preceding paragraph, I hereby irrevocably designate and appoint the Company

and its duly authorized officers and agents as my agent and attorney in fact,

which appointment is coupled with an interest, to act for and in my behalf to

execute, verify and file any such documents and to do all other lawfully

permitted acts to further the purposes of the preceding paragraph with the same

legal force and effect as if executed by me. 

I hereby waive and quitclaim to the Company any and all claims, of any

nature whatsoever, which I now or may hereafter have for infringement of any

Proprietary Rights assigned hereunder to the Company.

3.                        Records.  I agree to keep and maintain adequate and

current records (in the form of notes, sketches, drawings and in any other form

that may be required by the Company) of all Proprietary Information developed

by me and all Inventions made by me during the period of my employment at the

Company, which records shall be available to and remain the sole property of

the Company at all times.

4.             Duty of Loyalty During Employment.  I understand that my employment with the

Company requires my full attention and effort. 

I agree that during the period of my employment by the Company I will

not, without the Company’s express written consent, engage in any employment or

business activity other than for the Company, including but not limited to

employment or business activity which is competitive with, or would otherwise

conflict with, my employment by the Company.

5.             No Solicitation of Employees, Consultants,

Contractors or Customers. I agree that for the period

of my employment by the Company and for one (1) year after the date my

employment by the Company ends for any reason, including but not limited to

voluntary termination by me or involuntary termination by the Company, I will

not, either directly or through others, (i) solicit or attempt to solicit

any employee of the Company to end his or her relationship with the Company;

and (ii) solicit any consultant, contractor, or customer of the Company, with

whom I had contact or whose identity I learned as a result of my employment

with the Company to diminish or materially alter his, her or its relationship

with the Company.

                The parties agree that for

purposes of this Agreement, a customer is any person or entity to which the

Company has provided goods or services at any time during the period commencing

six (6) months prior to my employment with the Company and ending on the date

my employment with the Company ends.

6.             Non-Compete Provision.  I agree that for the period of my employment

with the Company, and for the period of one (1) year after the later of (1) the

date my employment ends for any reason, including but not limited to voluntary

termination by me or involuntary termination by the Company; or (2) the date a

court of competent jurisdiction enters an order enforcing this provision, I

will not provide services, similar to those I provided to the Company, to any

person or entity in competition (as defined below) with the Company within  any state,

province, or similar political unit in which the Company has or solicits

employees, consultants, contractors, or customers; or provides or solicits

products or services.  The parties

acknowledge that the Company provides or solicits products and services, and

has or solicits employees, consultants, contractors and customers, through the

Internet and wireless technology, and that the scope of this provision is

therefore co-extensive with the scope of the Company’s business through the

Internet and wireless technology.  The

parties agree that the geographic scope of the noncompete is reasonable in

light of the geographically broad scope of doing business through 

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the Internet and wireless technology. 

I acknowledge that this non-compete provision is limited to the types of

activities and services I provided in my employment with the Company.

At

the present time, the Company engages in the business  of providing

broad band video networking for the Internet. 

The Company’s products enable end-to-end video in a wide range of room

and desktop environments.  The Company

designs, manufactures and supports a complete video networking product family

that includes Internet access devices, adapters, gateways and video storage

servers and therefore entities and individuals which provide similar products

or services are defined as in competition with the Company. The parties

understand that the scope and nature of my activities and services, and the

Company’s business, products or services, may change as the Company develops.

The parties agree that the scope of this provision will change to cover any

changes in my activities or services, as well as any changes in the Company’s

business, products or services, during my employment.

7.             No Conflicting Agreement or Obligation.  I represent that my performance of all the

terms of this Agreement and as an employee of the Company does not and will not

breach any agreement or obligation of any kind made prior to my employment by

the Company, including agreements or obligations I may have with prior

employers or entities for which I have provided services.  I have not entered into, and I agree I will

not enter into, any agreement or obligation either written or oral in conflict

herewith.

8.             Return of Company Documents.  When I leave the employ of the Company, I

will deliver to the Company any and all drawings, notes, memoranda,

specifications, devices, formulas, and documents, together with all copies

thereof, and any other material containing or disclosing any Company

Inventions, Third Party Information or Proprietary Information of the

Company.  I further agree that any

property situated on the Company’s premises and owned by the Company, including

disks and other storage media, filing cabinets or other work areas, is subject

to inspection by Company personnel at any time with or without notice.  Prior to leaving, I will cooperate with the

Company in completing and signing the Company’s termination statement.

9.             Legal and Equitable Remedies.

I recognize that in the course of employment with the Company, I will have

access to Proprietary Information, to Third Party Information, and to

employees, consultants, contractors, clients, and customers of the

Company.  I also recognize that the

services I will be employed to provide are personal and unique.  I understand that because of this the

Company may sustain irreparable injury if I violate this Agreement. In order to

limit or prevent such irreparable injury, the Company shall have the right to

enforce this Agreement and any of its provisions by injunction, specific

performance or other equitable relief, without bond and without prejudice to

any other rights and remedies that the Company may have for a breach of this

Agreement.

10.          Notices.  Any notices required or permitted hereunder

shall be given to the appropriate party at the address specified below or at

such other address as the party shall specify in writing.  Such notice shall be deemed given upon

personal delivery to the appropriate address or if sent by certified or

registered mail, three (3) days after the date of mailing.

11.          Notification of New Employer.  In the event that I leave the employ of the

Company, I authorize the Company to provide notice of my rights and obligations

under this Agreement to my subsequent employer and to any other entity or

person to whom I provide services.

12.          General Provisions.

12.1    Governing

Law; Consent to Personal Jurisdiction.  This Agreement will be governed by and

construed according to the laws of New Hampshire, as such laws are applied to

agreements entered into and to be performed entirely within New Hampshire

between New Hampshire residents.  I

hereby expressly consent to the personal jurisdiction of the state and federal

courts for _____________________ County, New Hampshire in any lawsuit filed

there against me by Company arising from or related to this Agreement.

12.2    Severability.  In case any one or more of the provisions,

subsections, or sentences contained in this Agreement shall, for any reason, be

held to be invalid, illegal or unenforceable in any respect, such invalidity,

illegality or unenforceability shall not affect the other provisions of this Agreement,

and this Agreement shall be construed as if such invalid, illegal or

unenforceable provision had never been contained herein.  Moreover, if any one or 

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more of the

provisions contained in this Agreement shall for any reason be held to be

excessively broad as to duration, geographical scope, activity or subject, it

shall be construed by limiting and reducing it, so as to be enforceable to the

extent compatible with the applicable law as it shall then appear.

12.3    Successors

and Assigns.  This

Agreement will be binding upon my heirs, executors, administrators and other

legal representatives and will be for the benefit of the Company, its

successors, and its assigns.

12.4    Survival.  The provisions of this Agreement shall

survive the termination of my employment and the assignment of this Agreement

by the Company to any successor in interest or other assignee.

12.5    Employment

At-Will.  I agree and

understand that I am employed at-will, and that nothing in this Agreement shall

change this at-will status or confer any right with respect to continuation of

employment by the Company, nor shall it interfere in any way with my right or

the Company’s right to terminate my employment at any time, with or without

cause.

12.6    Waiver.  No waiver by the Company of any breach of

this Agreement shall be a waiver of any preceding or succeeding breach.  No waiver by the Company of any right under

this Agreement shall be construed as a waiver of any other right.  The Company shall not be required to give

notice to enforce strict adherence to all terms of this Agreement.

12.7    Entire

Agreement.  The

obligations pursuant to Sections 1 and 2 of this Agreement shall apply to any

time during which I was previously employed, or am in the future employed, by

the Company as a consultant if no other agreement governs nondisclosure and

assignment of inventions during such period. 

This Agreement is the final, complete and exclusive agreement of the

parties with respect to the subject matter hereof and supersedes and merges all

prior discussions between us and any prior agreement between you and the

Company or its predecessor-in-interest with respect to the subject matter

hereof. No modification of or amendment to this Agreement, nor any waiver of

any rights under this Agreement, will be effective unless in writing and signed

by the party to be charged.  Any

subsequent change or changes in my duties, salary or compensation will not

affect the validity or scope of this Agreement.  This Agreement shall be deemed effective as of the first day of

my employment with the Company, namely: 

________, 2001.

                I have read this agreement

carefully and understand its terms.  I

have completely filled out Exhibit A to this Agreement.

	

  Dated: 

  	

   

  	

   

  
	

   

  	

   

  
	

   

  
	

  (Signature)

  
	

   

  	

   

  
	

   

  
	

  (Printed Name)

  

 

Accepted and

Agreed To:

First

Virtual Communications, Inc.

	

  By:

  	

   

  
	

   

  	

   

  	

   

  
	

  Title:

  	

   

  
	

   

  	

   

  
	

   

  
	

  (Address)

  
	

   

  	

   

  	

   

  
	

   

  
	

   

  
	

  Dated

  	

   

  

 

10

 

 

Exhibit A

Previous

Inventions

 

TO:                  First Virtual Communications, Inc.

	

  FROM:

  	

   

  
	

   

  	

   

  
	

  DATE:

  	

   

  

 

SUBJECT:      Previous Inventions

1.             Except as listed in Section 2 below, the

following is a complete list of all inventions or improvements relevant to the

subject matter of my employment by First Virtual Communications,

Inc. (the “Company”) that have been made or conceived

or first reduced to practice by me alone or jointly with others prior to my

engagement by the Company:

             o         No inventions or improvements.

             o         See below:

	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  

 

o         Additional sheets attached.

2.             Due to a prior confidentiality agreement,

I cannot complete the disclosure under Section 1 above with respect to

inventions or improvements generally listed below, the proprietary rights and

duty of confidentiality with respect to which I owe to the following

party(ies):

	

   

  	

  Invention or Improvement

  	

   

  	

  Party(ies)

  	

   

  	

  Relationship

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  1.

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  2.

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  3.

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

o         Additional sheets attached.

 

11[LETTER SEPARATION AGREEMENT - FORM]

 

Exhibit 10.4

 

January 2, 2002

 

Raymond Cavanagh

 

1 Emery Drive

 

Atkinson, NH 03811

 

Dear Ray:

 

This letter sets forth the terms and conditions of our agreement (the

“Agreement”) regarding your resignation of employment with First Virtual

Communications, Inc. (the “Company”). 

The Agreement shall become effective on the eighth day after this

Agreement is signed by you (the “Effective Date”), as provided in

Section 12 hereof.  You and the

Company hereby agree as follows:

 

1.             RESIGNATION.  The Company accepts

your resignation as Vice President Worldwide Sales of the Company as of

January 2, 2002 (the “Separation Date”).

 

2.             ACCRUED

SALARY AND VACATION.  You

agree and acknowledge that the Company has paid you all accrued salary, and all

accrued and unused vacation benefits earned through the Separation Date, if

any, subject to standard payroll deductions, withholding taxes and other

obligations.  You are entitled to this

payment regardless of whether or not you sign this Agreement.

 

3.             EXPENSE

REIMBURSEMENT.  Within ten (10) business days of your

execution of this Agreement, you agree that you will submit your final

documented expense reimbursement statement reflecting all business expenses you

incurred prior to and including the Separation Date, if any, for which you seek

reimbursement.  The Company shall

reimburse your expenses pursuant to Company policy and regular business

practice.

 

4.             SEVERANCE.  Although the Company has

no policy or procedure for providing severance benefits, in exchange for the

promises and covenants set forth herein, the Company agrees to make severance

payments to you in the form of continuation of your base salary in effect on

the Separation Date for a period of six (6) weeks following the Effective Date

of this Agreement.  These payments will

be made on the Company’s ordinary payroll dates, and will be subject to

standard payroll deductions and withholdings.

 

5.             INSURANCE

BENEFITS.  To

the extent provided by the federal COBRA law or, if applicable, state insurance

laws, and by the Company’s current group health insurance policies, you will be

eligible to continue your health insurance benefits at your own expense after

January 31, 2002.  Later, you may

be able to convert to an individual policy through the provider of the

Company’s health insurance, if you wish. 

You will be provided with a separate notice of your COBRA rights.

 

 

6.             OTHER

COMPENSATION AND BENEFITS.  Except as expressly provided herein, you acknowledge and agree

that you are not entitled to and will not receive any additional compensation,

severance, stock options, stock or benefits from the Company.  You agree and understand that all vesting

under any stock compensation award (e.g., incentive stock option, nonqualified

stock option, stock purchase agreement, or restricted stock bonus agreement)

from the Company shall cease upon the Separation Date.  Any and all rights that you may have in any

Employee Stock Purchase Plan or Stock Option Plan are determined in accordance

with the provisions of the applicable plan and any agreements signed by you.

 

7.             COMPANY

PROPERTY.  Upon

the Separation Date, you agree to return to the Company all Company documents

(and all copies thereof) and other Company property in your possession or your

control, including, but not limited to, Company files, business plans, notes,

samples, sales notebooks, drawings, specifications, calculations, sequences,

data, computer-recorded information, tangible property, including, but not

limited to, cellular phones, computers, credit cards, entry cards, keys and any

other materials of any nature pertaining to your work with the Company, and any

documents or data of any description (or any reproduction of any documents or

data) containing or pertaining to any proprietary or confidential material of

the Company.

 

8.             PROPRIETARY

INFORMATION OBLIGATIONS.  You

acknowledge your continuing obligations under your Proprietary Information and

Inventions Agreement, a copy of which is attached hereto as Exhibit B.

 

9.             NON-DISPARAGEMENT.  You agree that you will

not at any time disparage the Company, or its officers, directors, employees,

shareholders and agents, in any manner likely to be harmful to them or their

business, business reputation or personal reputation; provided that you shall

respond accurately and fully to any questions, inquiry or request for

information when required by legal process.

 

10.          CONFIDENTIALITY

AND PUBLICITY.  The

provisions of this Agreement shall be held in strictest confidence by you and

the Company and shall not be publicized or disclosed in any manner whatsoever;

provided, however, that: (a) you may disclose this Agreement, in confidence, to

your immediate family; (b) the parties may disclose this Agreement in

confidence to their respective attorneys, accountants, auditors, tax preparers,

and financial advisors; (c) the Company may disclose this Agreement as

necessary to fulfill standard or legally required corporate reporting or

disclosure requirements; and (d) the parties may disclose this Agreement

insofar as such disclosure may be necessary to enforce its terms or as

otherwise required by law.

 

11.          RELEASE

OF CLAIMS.  In

exchange for the consideration provided to you by this Agreement that you are

not otherwise entitled to receive, you hereby generally and completely release

the Company and its directors, officers, employees, shareholders, partners,

agents, attorneys, predecessors, successors, parent and subsidiary entities,

insurers, affiliates, and assigns from any and all claims, liabilities and

obligations, both known and unknown, that arise out of or are in any way

related to events, acts, conduct, or omissions occurring prior to your signing

this Agreement.  This general release

includes, but is not limited to: (1) all claims arising out of or in any way

related to your employment with the Company or the termination of that

employment; (2) all claims related to your compensation or benefits from the

Company, including salary, bonuses, commissions, vacation pay, expense

reimbursements, severance pay, fringe benefits, 

 

2

 

stock, stock options, or any other ownership interests in the Company;

(3) all claims for breach of contract, wrongful termination, and breach of

the implied covenant of good faith and fair dealing; (4) all tort claims,

including claims for fraud, defamation, emotional distress, and discharge in

violation of public policy; and (5) all federal, state, and local statutory

claims, including claims for discrimination, harassment, retaliation,

attorneys’ fees, or other claims arising under the federal Civil Rights Act of

1964 (as amended), the federal Americans with Disabilities Act of 1990, the

federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), and

the California Fair Employment and Housing Act (as amended).

 

12.          ADEA

WAIVER.  You

further acknowledge that you are knowingly and voluntarily waiving and

releasing any rights you may have under the Age Discrimination in Employment

Act of 1967 (“ADEA”).  You also

acknowledge that the consideration given for the waiver and release in the

preceding paragraphs hereof is in addition to anything of value to which you

were already entitled.  If you are forty

(40) years of age or older when this release is signed, you hereby provide the

further acknowledgment that you are advised by this writing, as required by the

Older Workers Benefit Protection Act, that: (a) your waiver and release do not

apply to any rights or claims that may arise after the Effective Date of this

release; (b) you have the right to consult with an attorney prior to executing

this release (although you may voluntarily choose not to do so); (c) you

may have at least twenty-one (21) days to consider this Agreement (although you

may by your own choice execute this release earlier); (d) you have seven (7)

days following the execution of this release to revoke this release; and (e)

this Agreement shall not be effective until the date upon which the revocation

period has expired, therefore making the effective date the eighth day after

this release is signed by you (the “Effective Date”).

 

13.          SECTION

1542 WAIVER.  In

giving this release, which includes claims which may be unknown to you at

present, you hereby acknowledge that you have read and understand Section 1542

of the Civil Code of the State of California which reads as follows:

 

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.

 

You hereby expressly waive and relinquish all rights and benefits under

this section and any law or legal principle of similar effect in any

jurisdiction with respect to claims released hereby.

 

14.          NO

ADMISSIONS.  The

parties hereto hereby acknowledge that this is a compromise of various matters,

and that the promised payments in consideration of this Agreement shall not be

construed to be an admission of any liability or obligation by either party to

the other party or to any other person whomsoever.

 

15.          Entire

Agreement.  This

Agreement, including Exhibit A, constitutes the complete, final and exclusive

embodiment of the entire Agreement between you and the Company with regard to

the subject matter hereof.  It is

entered into without reliance on any promise or representation, written or

oral, other than those expressly contained herein.  It may not be modified except in a writing signed by you and a

duly authorized officer of the Company. 

Each party has carefully read this Agreement, has been afforded the

opportunity to be advised of its 

 

3

 

meaning and consequences by his or its respective attorneys, and signed

the same of his or its free will.

 

16.          SUCCESSORS

AND ASSIGNS. 

This Agreement shall bind the heirs, personal representatives,

successors, assigns, executors, and administrators of each party, and inure to

the benefit of each party, its agents, directors, officers, employees,

servants, heirs, successors and assigns.

 

17.          APPLICABLE

LAW.  This

Agreement shall be deemed to have been entered into and shall be construed and

enforced in accordance with the laws of the State of New Hampshire as applied

to contracts made and to be performed entirely within New Hampshire.

 

18.          ATTORNEYS’

FEES.  In the

event of any litigation arising out of or relating to this Agreement, its

breach or enforcement, including an action for declaratory relief, the

prevailing party in such action or proceeding shall be entitled to receive his

or its damages, court costs, and all out-of-pocket expenses, including

attorneys fees.  Such recovery shall

include court costs, out-of-pocket expenses, and attorneys fees on appeal, if

any.

 

19.          SEVERABILITY.  If a court of competent

jurisdiction determines that any term or provision of this Agreement is invalid

or unenforceable, in whole or in part, then the remaining terms and provisions

hereof shall be unimpaired.  Such court

will have the authority to modify or replace the invalid or unenforceable term

or provision with a valid and enforceable term or provision that most

accurately represents the parties’ intention with respect to the invalid or

unenforceable term or provision.

 

20.          INDEMNIFICATION.  Each party will indemnify and save harmless

each other party hereto from any loss incurred directly or indirectly by reason

of the falsity or inaccuracy of any representation made herein.

 

21.          AUTHORIZATION.  Each party warrants and represents that

there are no liens or claims of lien or assignments in law or equity or

otherwise of or against any of the claims or causes of action released herein

and, further, that you are fully entitled and duly authorized to give your

complete and final general release and discharge.

 

22.          COUNTERPARTS.  This Agreement may be executed in two

counterparts, each of which shall be deemed an original, all of which together

shall constitute one and the same instrument.

 

23.          SECTION

HEADINGS.  The

section and paragraph headings contained in this Agreement are for reference

purposes only and shall not affect in any way the meaning or interpretation of

this Agreement.

 

 

[Intentionally Left

Blank]

 

4

 

Please confirm your assent to the foregoing terms and conditions of our

Agreement by signing and returning a copy of this letter to me on or before

January 24, 2002.

 

Sincerely,

 

FIRST VIRTUAL COMMUNICATIONS, INC.

 

 

	

  /s/ Robert Scott

  	

   

  
	

  Robert

  Scott

  
	

  Chief Marketing Officer

  

 

Attachments:

Exhibit A — Proprietary Information and Inventions Agreement

 

HAVING READ AND REVIEWED THE FOREGOING, I HEREBY AGREE TO AND

ACCEPT THE TERMS AND CONDITIONS OF THIS AGREEMENT AS STATED ABOVE.

 

	

  Dated: January 15, 2002

  	

  /s/ Raymond Cavanagh

  
	

   

  	

   

  	

  RAYMOND

  CAVANAGH

  

 

5

 

 

EXHIBIT A

PROPRIETARY INFORMATION AND

INVENTIONS AGREEMENT

 

FIRST VIRTUAL COMMUNICATIONS, INC.

 

EMPLOYEE

PROPRIETARY INFORMATION,

INVENTIONS,

AND NON-COMPETITION AGREEMENT

In consideration of my

employment or continued employment by First Virtual Communications,

Inc. (the “Company”), and the compensation now and

hereafter paid to me, I hereby agree as follows:

1.             Nondisclosure.

1.1      Recognition

of Company’s Rights; Nondisclosure.  At all times during my employment and thereafter, I will hold in

strictest confidence and will not disclose, use, lecture upon or publish any of

the Company’s Proprietary Information (defined below), except as such

disclosure, use or publication may be required in connection with my work for

the Company, or unless an officer of the Company expressly authorizes such in

writing.  I will obtain the Company’s

written approval before publishing or submitting for publication any material

(written, verbal, or otherwise) that relates to my work at the Company and/or

incorporates any Proprietary Information. 

I hereby assign to the Company any rights I may have or acquire in such

Proprietary Information and recognize that all Proprietary Information shall be

the sole property of the Company and its assigns.  I have been informed and acknowledge that the unauthorized taking

of the Company’s trade secrets may subject me to civil and/or criminal

penalties.

1.2      Proprietary

Information.  The term

“Proprietary

Information” shall mean any and all confidential and/or proprietary

knowledge, data or information of the Company. 

By way of illustration but not limitation, “Proprietary Information”

includes (a) trade secrets, inventions, mask works, ideas, processes,

formulas, source and object codes, data, programs, other works of authorship,

know-how, improvements, discoveries, developments, designs and techniques

(hereinafter collectively referred to as “Inventions”); and (b) information

regarding plans for research, development, new products, marketing and selling,

business plans, budgets and unpublished financial statements, licenses, prices

and costs, suppliers and customers; and (c) information regarding the skills

and compensation of other employees of the Company. Notwithstanding the

foregoing, it is understood that, subject to the restrictions set forth in

Sections 5 or 6 herein, at all such times, I am free to use information

which is generally known in the trade or industry, which is not gained as

result of a breach of this Agreement, and my own, skill, knowledge, know-how

and experience to whatever extent and in whichever way I wish.

1.3      Third

Party Information.  I

understand, in addition, that the Company has received and in the future will

receive from third parties confidential or proprietary information (“Third Party

Information”) subject to a duty on the Company’s part to maintain

the confidentiality of such information and to use it only for certain limited

purposes.  During the term of my

employment and thereafter, I will hold Third Party Information in the strictest

confidence and will not disclose to anyone (other than Company personnel who

need to know such information in connection with their work for the Company) or

use, except in connection with my work for the Company, Third Party Information

unless expressly authorized by an officer of the Company in writing.

1.4      No

Improper Use of Information of Prior Employers and Others.  During my employment by the Company I will

not improperly use or disclose any confidential information or trade secrets,

if any, of any former employer or any other person to whom I have an obligation

of confidentiality, and I will not bring onto the premises of the Company any

unpublished documents or any property belonging to any former employer or any

other person to whom I have an obligation of confidentiality unless consented

to in writing by that former employer or person.  It is understood that the foregoing restriction does not apply to

CUseeMe Networks (the Company’s predecessor-in-interest).  I will use in the performance of my duties

only information which is generally known and used by persons with training and

experience comparable to my own, which is common knowledge in the industry or

otherwise legally in the public domain, or which is otherwise provided or

developed by the Company or its predecessor-in-interest.

6

 

2.             Assignment of Inventions.

2.1      Proprietary

Rights.  The term “Proprietary

Rights” shall mean all trade secret, patent, copyright, mask work

and other intellectual property rights or “moral rights” throughout the

world.  “Moral rights” refers to any

rights to claim authorship of an Invention or to object to or prevent the

modification of any Invention, or to withdraw from circulation or control the

publication or distribution of any Invention, and any similar right, existing

under judicial or statutory law of any country in the world, or under any

treaty, regardless of whether or not such right is denominated or generally

referred to as a “moral right.”

2.2      Prior

Inventions. 

Inventions, if any, patented or unpatented, which I made prior to the

commencement of my employment with the Company are excluded from the scope of

this Agreement.  To preclude any

possible uncertainty, I have set forth on Exhibit A (Previous Inventions)

attached hereto a complete list of all Inventions that I have, alone or jointly

with others, conceived, developed or reduced to practice or caused to be

conceived, developed or reduced to practice prior to the commencement of my

employment with the Company, that I consider to be my property or the property

of third parties and that I wish to have excluded from the scope of this

Agreement (collectively referred to as “Prior Inventions”).  If disclosure of any such Prior Invention

would cause me to violate any prior confidentiality agreement, I understand that

I am not to list such Prior Inventions in Exhibit A but am only to disclose a

cursory name for each such invention, a listing of the party(ies) to whom it

belongs and the fact that full disclosure as to such inventions has not been

made for that reason. A space is provided on Exhibit A for such

purpose.  If no such disclosure is

attached, I represent that there are no Prior Inventions.  If, in the course of my employment with the

Company, I incorporate a Prior Invention into a Company product, process or machine,

the Company is hereby granted and shall have a nonexclusive, royalty-free,

irrevocable, perpetual, worldwide license (with rights to sublicense through

multiple tiers of sublicensees) to make, have made, modify, use and sell such

Prior Invention.  Notwithstanding the

foregoing, I agree that I will not incorporate, or permit to be incorporated,

Prior Inventions in any Company Inventions without the Company’s prior written

consent.

2.3      Assignment

of Inventions. 

Subject to Sections 2.4, and 2.6, I hereby assign and agree to assign in

the future (when any such Inventions or Proprietary Rights are first reduced to

practice or first fixed in a tangible medium, as applicable) to the Company all

my right, title and interest in and to any and all Inventions (and all

Proprietary Rights with respect thereto) whether or not patentable or

registrable under copyright or similar statutes, made or conceived or reduced

to practice or learned by me, either alone or jointly with others, during the

period of my employment with the Company. 

Inventions assigned to the Company, or to a third party as directed by

the Company pursuant to this Section 2, are hereinafter referred to as “Company

Inventions.”

2.4      Unassigned

Inventions.  I

recognize that this Agreement will not be deemed to require assignment of any

invention that was developed entirely on my own time without using the

Company’s equipment, supplies, facilities, or trade secrets and neither related

to the Company’s actual or anticipated business, research or development, nor

resulted from work performed by me for the Company.

2.5      Obligation

to Keep Company Informed. 

During the period of my employment and for six (6) months after

termination of my employment with the Company, I will promptly disclose to the

Company fully and in writing all Inventions authored, conceived or reduced to

practice by me, either alone or jointly with others.  In addition, I will promptly disclose to the Company all patent

applications filed by me or on my behalf within a year after termination of

employment.  The Company will keep in

confidence and will not use for any purpose or disclose to third parties

without my consent any confidential information disclosed in writing to the

Company pursuant to this Agreement.

2.6      Government

or Third Party.  I

also agree to assign all my right, title and interest in and to any particular

Company Invention to a third party, including without limitation the United

States, as directed by the Company.

2.7      Works

for Hire.  I

acknowledge that all original works of authorship which are made by me (solely

or jointly with others) within the scope of my employment and which are

protectable by copyright are “works made for hire,” pursuant to 

7

 

United States

Copyright Act (17 U.S.C., Section 101).

2.8      Enforcement

of Proprietary Rights. 

I will assist the Company in every proper way to obtain, and from time

to time enforce, United States and foreign Proprietary Rights relating to

Company Inventions in any and all countries. 

To that end I will execute, verify and deliver such documents and

perform such other acts (including appearances as a witness) as the Company may

reasonably request for use in applying for, obtaining, perfecting, evidencing,

sustaining and enforcing such Proprietary Rights and the assignment

thereof.  In addition, I will execute,

verify and deliver assignments of such Proprietary Rights to the Company or its

designee.  My obligation to assist the

Company with respect to Proprietary Rights relating to such Company Inventions

in any and all countries shall continue beyond the termination of my

employment, but the Company shall compensate me at a reasonable rate after my

termination for the time actually spent by me at the Company’s request on such

assistance.

In the event the

Company is unable for any reason, after reasonable effort, to secure my

signature on any document needed in connection with the actions specified in

the preceding paragraph, I hereby irrevocably designate and appoint the Company

and its duly authorized officers and agents as my agent and attorney in fact,

which appointment is coupled with an interest, to act for and in my behalf to

execute, verify and file any such documents and to do all other lawfully

permitted acts to further the purposes of the preceding paragraph with the same

legal force and effect as if executed by me. 

I hereby waive and quitclaim to the Company any and all claims, of any

nature whatsoever, which I now or may hereafter have for infringement of any

Proprietary Rights assigned hereunder to the Company.

3.                        Records.  I agree to keep and maintain adequate and

current records (in the form of notes, sketches, drawings and in any other form

that may be required by the Company) of all Proprietary Information developed

by me and all Inventions made by me during the period of my employment at the

Company, which records shall be available to and remain the sole property of

the Company at all times.

4.             Duty of Loyalty During Employment.  I understand that my employment with the

Company requires my full attention and effort. 

I agree that during the period of my employment by the Company I will

not, without the Company’s express written consent, engage in any employment or

business activity other than for the Company, including but not limited to

employment or business activity which is competitive with, or would otherwise

conflict with, my employment by the Company.

5.             No Solicitation of Employees, Consultants,

Contractors or Customers. I agree that for the period

of my employment by the Company and for one (1) year after the date my

employment by the Company ends for any reason, including but not limited to

voluntary termination by me or involuntary termination by the Company, I will

not, either directly or through others, (i) solicit or attempt to solicit

any employee of the Company to end his or her relationship with the Company;

and (ii) solicit any consultant, contractor, or customer of the Company, with

whom I had contact or whose identity I learned as a result of my employment

with the Company to diminish or materially alter his, her or its relationship

with the Company.

                The parties agree that for

purposes of this Agreement, a customer is any person or entity to which the

Company has provided goods or services at any time during the period commencing

six (6) months prior to my employment with the Company and ending on the date

my employment with the Company ends.

6.             Non-Compete Provision.  I agree that for the period of my employment

with the Company, and for the period of one (1) year after the later of (1) the

date my employment ends for any reason, including but not limited to voluntary

termination by me or involuntary termination by the Company; or (2) the date a

court of competent jurisdiction enters an order enforcing this provision, I

will not provide services, similar to those I provided to the Company, to any

person or entity in competition (as defined below) with the Company within  any state,

province, or similar political unit in which the Company has or solicits

employees, consultants, contractors, or customers; or provides or solicits

products or services.  The parties

acknowledge that the Company provides or solicits products and services, and

has or solicits employees, consultants, contractors and customers, through the

Internet and wireless technology, and that the scope of this provision is

therefore co-extensive with the scope of the Company’s business through the

Internet and wireless technology.  The

parties agree that the geographic scope of the noncompete is reasonable in

light of the geographically broad scope of doing business through 

8

 

the Internet and wireless technology. 

I acknowledge that this non-compete provision is limited to the types of

activities and services I provided in my employment with the Company.

At

the present time, the Company engages in the business  of providing

broad band video networking for the Internet. 

The Company’s products enable end-to-end video in a wide range of room

and desktop environments.  The Company

designs, manufactures and supports a complete video networking product family

that includes Internet access devices, adapters, gateways and video storage

servers and therefore entities and individuals which provide similar products

or services are defined as in competition with the Company. The parties

understand that the scope and nature of my activities and services, and the

Company’s business, products or services, may change as the Company develops.

The parties agree that the scope of this provision will change to cover any

changes in my activities or services, as well as any changes in the Company’s

business, products or services, during my employment.

7.             No Conflicting Agreement or Obligation.  I represent that my performance of all the

terms of this Agreement and as an employee of the Company does not and will not

breach any agreement or obligation of any kind made prior to my employment by

the Company, including agreements or obligations I may have with prior employers

or entities for which I have provided services.  I have not entered into, and I agree I will not enter into, any

agreement or obligation either written or oral in conflict herewith.

8.             Return of Company Documents.  When I leave the employ of the Company, I

will deliver to the Company any and all drawings, notes, memoranda,

specifications, devices, formulas, and documents, together with all copies

thereof, and any other material containing or disclosing any Company

Inventions, Third Party Information or Proprietary Information of the

Company.  I further agree that any

property situated on the Company’s premises and owned by the Company, including

disks and other storage media, filing cabinets or other work areas, is subject

to inspection by Company personnel at any time with or without notice.  Prior to leaving, I will cooperate with the

Company in completing and signing the Company’s termination statement.

9.             Legal and Equitable Remedies.

I recognize that in the course of employment with the Company, I will have

access to Proprietary Information, to Third Party Information, and to

employees, consultants, contractors, clients, and customers of the

Company.  I also recognize that the

services I will be employed to provide are personal and unique.  I understand that because of this the

Company may sustain irreparable injury if I violate this Agreement. In order to

limit or prevent such irreparable injury, the Company shall have the right to

enforce this Agreement and any of its provisions by injunction, specific

performance or other equitable relief, without bond and without prejudice to

any other rights and remedies that the Company may have for a breach of this

Agreement.

10.          Notices.  Any notices required or permitted hereunder

shall be given to the appropriate party at the address specified below or at

such other address as the party shall specify in writing.  Such notice shall be deemed given upon

personal delivery to the appropriate address or if sent by certified or

registered mail, three (3) days after the date of mailing.

11.          Notification of New Employer.  In the event that I leave the employ of the

Company, I authorize the Company to provide notice of my rights and obligations

under this Agreement to my subsequent employer and to any other entity or person

to whom I provide services.

12.          General Provisions.

12.1    Governing

Law; Consent to Personal Jurisdiction.  This Agreement will be governed by and

construed according to the laws of New Hampshire, as such laws are applied to

agreements entered into and to be performed entirely within New Hampshire

between New Hampshire residents.  I

hereby expressly consent to the personal jurisdiction of the state and federal

courts for _____________________ County, New Hampshire in any lawsuit filed

there against me by Company arising from or related to this Agreement.

12.2    Severability.  In case any one or more of the provisions,

subsections, or sentences contained in this Agreement shall, for any reason, be

held to be invalid, illegal or unenforceable in any respect, such invalidity,

illegality or unenforceability shall not affect the other provisions of this

Agreement, and this Agreement shall be construed as if such invalid, illegal or

unenforceable provision had never been contained herein.  Moreover, if any one or 

9

 

more of the

provisions contained in this Agreement shall for any reason be held to be

excessively broad as to duration, geographical scope, activity or subject, it

shall be construed by limiting and reducing it, so as to be enforceable to the

extent compatible with the applicable law as it shall then appear.

12.3    Successors

and Assigns.  This

Agreement will be binding upon my heirs, executors, administrators and other

legal representatives and will be for the benefit of the Company, its

successors, and its assigns.

12.4    Survival.  The provisions of this Agreement shall

survive the termination of my employment and the assignment of this Agreement

by the Company to any successor in interest or other assignee.

12.5    Employment

At-Will.  I agree and

understand that I am employed at-will, and that nothing in this Agreement shall

change this at-will status or confer any right with respect to continuation of

employment by the Company, nor shall it interfere in any way with my right or

the Company’s right to terminate my employment at any time, with or without

cause.

12.6    Waiver.  No waiver by the Company of any breach of

this Agreement shall be a waiver of any preceding or succeeding breach.  No waiver by the Company of any right under

this Agreement shall be construed as a waiver of any other right.  The Company shall not be required to give

notice to enforce strict adherence to all terms of this Agreement.

12.7    Entire

Agreement.  The

obligations pursuant to Sections 1 and 2 of this Agreement shall apply to any

time during which I was previously employed, or am in the future employed, by

the Company as a consultant if no other agreement governs nondisclosure and

assignment of inventions during such period. 

This Agreement is the final, complete and exclusive agreement of the

parties with respect to the subject matter hereof and supersedes and merges all

prior discussions between us and any prior agreement between you and the

Company or its predecessor-in-interest with respect to the subject matter

hereof. No modification of or amendment to this Agreement, nor any waiver of

any rights under this Agreement, will be effective unless in writing and signed

by the party to be charged.  Any

subsequent change or changes in my duties, salary or compensation will not

affect the validity or scope of this Agreement.  This Agreement shall be deemed effective as of the first day of

my employment with the Company, namely: 

________, 2001.

                I have read this agreement

carefully and understand its terms.  I

have completely filled out Exhibit A to this Agreement.

	

  Dated: 

  	

   

  	

   

  
	

   

  	

   

  
	

   

  
	

  (Signature)

  
	

   

  	

   

  
	

   

  
	

  (Printed Name)

  

 

Accepted and

Agreed To:

First

Virtual Communications, Inc.

	

  By:

  	

   

  
	

   

  	

   

  	

   

  
	

  Title:

  	

   

  
	

   

  	

   

  
	

   

  
	

  (Address)

  
	

   

  	

   

  	

   

  
	

   

  
	

   

  
	

  Dated

  	

   

  

 

10

 

 

Exhibit A

Previous

Inventions

 

TO:                  First Virtual Communications, Inc.

	

  FROM:

  	

   

  
	

   

  	

   

  
	

  DATE:

  	

   

  

 

SUBJECT:      Previous Inventions

1.             Except as listed in Section 2 below, the

following is a complete list of all inventions or improvements relevant to the

subject matter of my employment by First Virtual Communications,

Inc. (the “Company”) that have been made or conceived

or first reduced to practice by me alone or jointly with others prior to my

engagement by the Company:

             o         No inventions or improvements.

             o         See below:

	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  

 

o         Additional sheets attached.

2.             Due to a prior confidentiality agreement,

I cannot complete the disclosure under Section 1 above with respect to

inventions or improvements generally listed below, the proprietary rights and

duty of confidentiality with respect to which I owe to the following

party(ies):

	

   

  	

  Invention or Improvement

  	

   

  	

  Party(ies)

  	

   

  	

  Relationship

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  1.

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  2.

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  3.

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

o         Additional sheets attached.

 

11

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