Document:

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                               EXHIBIT NO. 10.11

             Lease Agreement dated January 10, 2000 by and between
            the Registrant and Affiliated Equities Real Estate L.P.
            -------------------------------------------------------
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                                  RIVER RIDGE
                            OFFICE LEASE AGREEMENT

                             ACCORD NETWORKS, INC.

______________________________________________________________________________

                               TABLE OF CONTENTS
                               -----------------
                                                                 Page

PARAGRAPH      1    TERM AND POSSESSION                            1
               2    MONTHLY RENTAL                                 1
               3    SECURITY DEPOSIT                               4
               4    OCCUPANCY AND USE                              4
               5    COMPLIANCE WITH LAWS                           5
               6    ALTERATIONS                                    5
               7    REPAIR                                         6
               8    LIENS                                          6
               9    ASSIGNMENT AND SUBLETTING                      6
               10   INSURANCE AND INDEMNIFICATION                  7
               11   WAIVER OF SUBROGATION                          8
               12   SERVICE AND UTILITIES                          8
               13   ESTOPPEL CERTIFICATE                           9
               14   HOLDING OVER                                   9
               15   SUBORDINATION                                  10
               16   ENTRY BY LANDLORD                              10
               17   INSOLVENCY OR BANKRUPTCY                       10
               18   DEFAULT AND REMEDIES                           11
               19   DAMAGE BY FIRE                                 13
               20   CONDEMNATION                                   13
               21   SALE BY LANDLORD                               14
               22   RIGHT OF LANDLORD TO PERFORM                   14
               23   SURRENDER OF PREMISES                          14
               24   WAIVER                                         15
               25   NOTICES                                        15
               26   CERTAIN RIGHTS RESERVED TO LANDLORD            15
               27   SUCCESSORS AND ASSIGNS                         16
               28   ATTORNEY'S FEES                                16
               29   CORPORATE AUTHORITY                            16
               30   MORTGAGE APPROVALS                             16
               31   MISCELLANEOUS                                  16
               32   LANDLORD'S LIEN                                16
               33   QUIET ENJOYMENT                                17
               34   LANDLORD'S LIABILITY                           17
               35   RIGHT TO RELOCATE                              17
               36   NO ESTATE                                      17
               37   LEASE EFFECTIVE DATE                           17
               38   RULES AND REGULATIONS                          17
               39   SPECIAL STIPULATIONS                           17
               40   GUARANTY [INTENTIONALLY OMITTED]               18
               41   BROKERAGE COMMISSIONS                          18
EXHIBIT        A    FLOOR PLAN OF DEMISED PREMISES
               B    LEGAL DESCRIPTION
               C    WORK LETTER AGREEMENT
               D    ESTOPPEL CERTIFICATE
               E    RULES AND REGULATIONS
               F    SPECIAL STIPULATIONS

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                                  RIVER RIDGE

                            OFFICE LEASE AGREEMENT

     THIS LEASE is made as of the 10/th/ day of January, 2000 between AFFILIATED
EQUITIES REAL ESTATE LIMITED PARTNERSHIP, a Delaware limited partnership
(hereinafter called "Landlord") and ACCORD NETWORKS, INC., a Georgia corporation
(hereinafter called "Tenant").

                                 WITNESSETH:

     Landlord hereby leases to Tenant and Tenant hereby leases from Landlord
those premises (hereinafter called "Premises") shown on Exhibit "A" attached
                                                        ----------
hereto and made a part thereof, being located in River Ridge, a multistory
office building (the "Building") constructed on a parcel of land (the
"Property") located at 9040 Roswell Road, Atlanta, Georgia, said Property being
more particularly described on Exhibit "B" hereto.
                               ----------

Premises:  River Ridge
           9040 Roswell Road
           Atlanta, Georgia 30350
           Square Feet: 3917 Suite Number: 430 and 450
           Floor(s): Fourth(4th)

1.   Term and Possession.

     (a)  The term of the Lease (the "Lease Term") shall begin on January 10,
2000 (the "Commencement Date") and shall expire (unless sooner terminated as
herein provided) on December 31, 2003.

     (b)  Landlord agrees to perform the work in the Premises to be performed by
Landlord as provided in the Work Letter Agreement attached hereto as Exhibit "C"
and made a part hereof (the "Work Letter Agreement") with diligence, subject to
Force Majeure Matters (as defined in the Work Letter Agreement).

     (c)  Notwithstanding any provisions herein to the contrary, Landlord and
Tenant acknowledge that Landlord's manager is currently occupying Suite 450 of
the Premises, containing approximately 584 rentable square feet, and that
Tenant's rights and obligations with respect thereto, including, but not limited
to, the right to occupy Suite 450 and the obligation to pay rent with respect to
said Suite 450, shall not commence until Landlord's manager vacates said Suite
450 and Landlord delivers written notice of the same to Tenant. Landlord agrees
to cause Landlord's manager to vacate said Suite 450 on or before March 10,
2000. The date Landlord's manager vacates Suite 450 is hereinafter referred to
as the "Suite 450 Date."

     (d)  The taking of possession by Tenant shall be deemed conclusively to
establish that, except for punchlist items, the Building, other improvements,
and the Premises have been completed in accordance with the plans and
specifications and are in good and satisfactory condition as of when possession
was so taken.

2.   Monthly Rental.

     (a)  Tenant shall pay to Landlord throughout the term of this Lease annual
rental as set forth below, payable in equal monthly rental installments payable
in advance on the first day of each month during every year of the term hereby
demised in lawful money of the United States, without deduction or offset
whatsoever, to Landlord at Landlord's management office in the Building or to
such other location and/or firm as Landlord may from time to time designate in
writing. Said rental is subject to adjustments as provided hereinbelow. If this
Lease commences on a day other than the first day of a calendar month, the
monthly rental for the fractional month shall be appropriately prorated. The
annual and monthly rental, subject to adjustment as hereinafter provided, is as
follows:

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     ----------------------------------------------------------------------
                                 Base Rent
     Lease Year                  $/RSF/Yr.        Monthly        Annual
     ----------                  ---------        -------        ------
     ----------------------------------------------------------------------

     ----------------------------------------------------------------------
     January 10, 2000 - Suite    $0.00           $0.00           $0.00
     450 Date
     ----------------------------------------------------------------------
     Suite 450 Date - April      $22.00          $1,070.67       $12,848.00
     30, 2000
     ----------------------------------------------------------------------
     May 1, 2000 -               $22.00          $7,181.17       $86,174.00
     December 31, 2000
     ----------------------------------------------------------------------
     January 1, 2001 -           $22.66          $7,396.60       $88,759.22
     December 31, 2001
     ----------------------------------------------------------------------
     January 1, 2002 -           $23.34          $7,618.57       $91,422.78
     December 31, 2002
     ----------------------------------------------------------------------
     January 1, 2003 -           $24.04          $7,847.06       $94,164.68
     December 31, 2003
     ----------------------------------------------------------------------

     (b)  Tenant recognizes that late payment of any rent or other sum due
hereunder from Tenant to Landlord will result in administrative expense to
Landlord, the extent of which additional expense is extremely difficult and
economically impractical to ascertain. Tenant therefore agrees that if rent or
any other payment due hereunder from Tenant to Landlord remains unpaid five (5)
days after said amount is due, the amount of such unpaid rent or other payment
shall be increased by a late charge to be paid to Landlord by Tenant in any
amount equal to five percent (5%) of the amount of the delinquent rent or other
payment; provided, however, that with respect to the first occurrence of any
such late payment during any consecutive twelve (12) month period during the
Lease Term, such late charge shall not be due unless such payment remains unpaid
five (5) days after written notice from Landlord to Tenant of such late payment.
The amount of the late charge to be paid to Landlord by Tenant for any month
shall be computed on the aggregate amount of delinquent rents and other
payments, including all accrued late charges then outstanding, and shall be
deemed to be rental for all purposes hereunder. Tenant agrees that such amount
is a reasonable estimate of the loss and expense to be suffered by Landlord as a
result of such late payment by Tenant and may be charged by Landlord to defray
such loss and expense. The provisions of this paragraph in no way relieve Tenant
of the obligation to pay rent or other payments on or before the date on which
they are due, nor do the terms of this paragraph in any way affect Landlord's
remedies pursuant to Paragraph 18 of this Lease in the event said rent or other
payment is unpaid after the date due.

     (c)  The monthly rental payable hereunder shall be subject to adjustment on
January 1 of each calendar year during the term of this Lease, commencing
January 1, 2001, in the following manner:

          (i)       Tenant shall pay to Landlord, in accordance with paragraphs
2(c)(v) and 2 (c)(vi) of this Lease, as additional rent Tenant's proportionate
share of the amount by which the Direct Operating Expenses (as hereinafter
defined) incurred by Landlord in the operation of the Building during each
calendar year of the Lease Term exceeds the Direct Operating Expenses for the
base year 2000 (hereinafter called the "Base Year"). Tenant's Proportionate
Share of Direct Operating Expenses (as hereinafter defined) shall be prorated on
a daily basis using a 365-day calendar year, as necessary for any year during
which this Lease is in effect for less than the full twelve month calendar year.
Direct Operating Expenses shall be calculated on an accrual basis. For the
purpose of estimating the Direct Operating Expenses during each subsequent year
after the Base Year, Landlord shall reasonably estimate such expenses (assuming
ninety-five percent (95%) occupancy of the Building if the actual occupancy is
less than ninety-five percent) based on the actual Direct Operating Expenses for
the preceding year, any then-known cost changes or additional expenses which can
be reasonably anticipated to occur within the year for which such expenses are
estimated, Landlord's experience with similar office buildings, the costs of
contracts already entered, quotes obtained, representations of providers of the
services and equipment, consultation with specialists such as insurers, and
other factors a prudent lessor would use to make a fair and accurate estimate of
operating costs.

     (ii)      "Tenant's Proportionate Share of Direct Operating Expenses" shall
mean, for each calendar year (or portion thereof), the product of (i) the
Operating Expense Amount (defined below) multiplied by (ii) a fraction, the
numerator of which is the number of square feet contained in the Premises
(3,917) and the denominator of which is the number of rentable square feet
contained in the Building (171,725), which product equals 2.281%. As used
herein, the "Operating Expense Amount" shall mean, for each calendar year (or
portion thereof), the amount by which the Direct Operating Expenses (defined
below) exceed the Base Year's Direct Operating Expenses.

     (iii)     For purposes of this Lease, the term "Direct Operating Expenses"
shall consist of all "operating costs" (as hereinafter defined) for the
Building, and the Building's share of all operating costs for any parking area
serving the Building, and the Property (the Building, such parking area and the
Property being hereinafter referred to collectively as the "Project"). For
purposes of this Lease, the term "operating costs" shall mean all reasonable
expenses, costs and disbursements computed on the accrual basis, relating to or
incurred or paid in connection with the operation, maintenance and repair of the
Project, including, but not limited to the following:

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          a.   Building personnel costs, including, but not limited to,
salaries, wages, fringe benefits, social security taxes and other direct and
indirect costs of personnel (up to, but no higher than, the level of Building
Manager) engaged in the operation and/or maintenance of the Project and
associated overhead.

          b.   The cost of all supplies, tools, equipment (except that any item
of equipment exceeding $5,000.00 in cost shall be amortized as a capital
expenditure in accordance with paragraph 2(c)(iii)(h) below) and materials used
in the operation and maintenance of the Project.

          c.   The cost of water, sewer, gas, heating, lighting, ventilation,
electricity, air conditioning, and any other utilities supplied or paid for by
Landlord for the Project and the costs of maintaining the systems supplying the
same, including, but not limited to, any utility and service costs incurred by
Landlord.

          d.   The cost of all agreements for maintenance and service of the
Project and the equipment therein, including, but not limited to, agreements
relating to security service, window cleaning, elevator maintenance, chiller
maintenance, Building management, janitorial service, pest control and
landscaping maintenance.

          e.   The cost of maintaining sprinkler systems, fire extinguishers and
fire hoses, and systems, improvements and equipment that may be now or hereafter
required by the Americans With Disabilities Act, and the cost of all security
services and protective services or devices rendered to or in connection with
the Project or any part thereof.

          f.   Insurance premiums for insurance for the Project required to be
maintained by Landlord hereunder or which a prudent owner would carry,
including, but not limited to, premiums for insurance maintained by Landlord,
business interruption or rental abatement insurance, garage keeper's insurance,
and liability insurance.

          g.   The cost of repairs and general maintenance of the Project
(excluding repairs, alterations and general maintenance paid by proceeds of
insurance or attributable solely to tenants of the Project other than Tenant,
but including deductibles paid by Landlord), including, but not limited to: any
management fees charged by Landlord, maintenance and cleaning of common areas
and facilities; lawn mowing, gardening, landscaping, and irrigation of
landscaped areas; line painting, pavement repair and maintenance, sweeping, and
sanitary control; removal of snow, trash, rubbish, garbage, and other refuse;
the cost of personnel to implement such services, to direct parking, and to
police the common areas; the cost of exterior and interior painting of common
areas; all maintenance and repair costs; and the cost of maintenance of sewers
and utility lines.

          h.   The cost of any capital improvement which (i) can be reasonably
expected to reduce any component cost included within Direct Operating Expenses,
or (ii) which is necessary to keep the Property, Premises or Building in
compliance with changes to governmental laws, rules and regulations currently in
effect, all changes in interpretation of governmental laws, rules and
regulations currently in effect, and all future governmental laws, rules and
regulations applicable from time to time thereto. Costs of capital improvements
permitted to be charged as Direct Operating Expenses hereunder shall be
amortized over a reasonable period consistent with generally accepted principles
of accounting, with interest on the unamortized amount, at the rate of the
greater of eight percent (8%) per annum or two percent (2%) per annum above the
base rate of interest charged on corporate loans at large U. S. money center
commercial banks as published in the Wall Street Journal (but in no event at a
rate which is more than the highest lawful rate allowable in the State of
Georgia).

          i.   All taxes, assessments, and governmental or other charges,
general or special, ordinary or extraordinary, foreseen or unforeseen, which are
levied, assessed, or otherwise imposed against the Project, street lights,
personal property or rents, or on the right or privilege of leasing the Project,
collecting rents therefrom or parking vehicles thereon, by any federal, state,
county, or municipal government or by any special sanitation district or by any
other governmental or quasi-governmental entity that has taxing or assessment
authority, and any other taxes and assessments, together with any interest and
penalties thereon (unless such interest or penalties are due to Landlord's
failure to pay such taxes when due), attributable to the Project or its
operation (herein collectively called the "Impositions"), but exclusive of
federal, state and local income taxes of Landlord, inheritance taxes, estate
taxes, gift taxes, transfer taxes, excess profit taxes and any taxes imposed in
lieu of such taxes. If at any time during the Lease Term, the present method of
taxation or assessment shall be so changed that the whole or any part of the
Impositions now levied, assessed or imposed on real estate and the improvements
thereon shall be discontinued and as a substitute therefor, or in lieu of and in
addition thereof, taxes, assessments, levies, impositions or charges shall be
levied, assessed and/or imposed wholly or partially as a capital levy or
otherwise on the rents received from the Project or the rents reserved herein or
any part thereof, then such substitute or additional taxes, assessments, levies,
impositions or charges, to the extent so levied, assessed or imposed, shall be
deemed to be included within the Impositions and the operating costs. Tenant
will be responsible for ad valorem taxes on its personal property and on the
value of the leasehold improvements in the Premises to the extent the same
exceed building standard allowances.

                                       3
<PAGE>

               j.   All assessments (if any) assessed against the Project during
the Lease Term pursuant to any protective covenants, easement agreements or
common area maintenance agreements now or hereafter of record against the
Project.

               k.   Fees of accountants, attorneys, and other consultants,
professionals or advisors incurred by Landlord with respect to the Project.

               l.   Promotional or seasonal expenses (but excluding leasing or
marketing expenses).

               m.   Any other costs or expenses incurred by Landlord in the
operation of the Building.

        (iv)   Nothing contained in this Section shall imply any duty on the
part of Landlord to pay any expense or provide any service not otherwise
imposed by the express terms of this Lease.

        (v)    During the Lease Term, Landlord may estimate the amount of
Direct Operating Expenses and Tenant's Proportionate Share of Direct Operating
Expenses for a calendar year or (if applicable) fractional part thereof and
notify Tenant in writing of such estimate. Such estimate, if any, shall be
made by Landlord in the exercise of its reasonable discretion, and shall not be
subject to dispute by Tenant. The amount of additional rent specified in such
notification shall be paid by Tenant to Landlord in equal monthly installments
in advance on the first day of each month, at the same time and in the same
manner as base rent, and shall continue until Tenant receives from Landlord a
notification to pay a different monthly amount of estimated additional rent.

        (vi)   Within One Hundred Eighty (180) days after December 31 of any
calendar year during the Lease Term for which additional rent is due under this
Section, Landlord shall advise Tenant in writing, of the amount of actual
Direction Operating Expenses for such calender year.  If Tenant has not paid any
estimated additional rent for such calendar year, or if the actual Direct
Operating Expenses for such calendar year prove to be greater than the estimated
amount previously paid by Tenant, if any, Landlord shall invoice Tenant for the
deficiency as soon as practicable after the amount of underpayment has been
determined, and Tenant shall pay such deficiency to Landlord within thirty (30)
days following its receipt of such invoice.  If, however, actual Direct
Operating Expenses for such calendar year are lower than the estimated amount
previously paid by Tenant, if any, Tenant shall receive a credit (or in the
event the term of this Lease has then expired, Tenant shall receive a cash
refund) toward the next ensuing monthly payment or payments of the estimated
amount of Tenant's Proportionate Share of Direct Operating Expenses in the
amount of such overpayment until depleted, but in no event shall Tenant's
Proportionate Share of Direct Operating Expenses be deemed to be less than zero.

        (vii)  Notwithstanding anything contained in this paragraph 2(c) to the
contrary, for purposes of determining Direct Operating Expenses for the Base
Year and each calendar year subsequent to the Base Year, in the event actual
occupancy of the Building is less than ninety-five percent (95%) during any
period of such calendar year, the actual Direct Operating Expenses for such
calendar year shall be increased to the amount which Landlord reasonably
estimates would have been incurred for such calendar year has the occupancy of
the Building been ninety-five percent (95%) throughout such year, and the amount
so estimated shall be deemed to be the Direct Operating Expenses for such
calendar year.

3.   Security Deposit

     Tenant hereby deposits with Landlord on the date hereof the sum of Seven
Thousand One Hundred Eighty-One and 17/100 Dollars ($7,181.17), which sum shall
be held by Landlord, without obligation for interest, as security for the full,
timely and faithful performance of Tenant's covenants and obligations under this
Lease. It is understood and agreed that such deposit is not an advance rental
deposit or a measure of Landlord's damages in case of Tenant's default. Upon the
occurrence of any default or event of default by Tenant, Landlord may, from time
to time, without prejudice to any other remedy provided herein or provided by
law, use such funds to the extent necessary to make good any arrears of rent or
other payments due Landlord hereunder, and any other damage, injury, expense or
liability caused by any event of Tenant's default; and Tenant shall pay to
Landlord on demand the amount so applied in order to restore the security
deposit to its original amount. Although the security deposit shall be deemed
the property of Landlord, any remaining balance of such deposit shall be
returned by Landlord to Tenant or Tenant's last permitted assignee within thirty
(30) days after termination of this Lease. Landlord shall not be required to
keep any security deposit separate from its general funds. Subject to the other
terms and conditions contained in this Lease, if the Building is conveyed by
Landlord, said deposit shall be turned over or credited to Landlord's grantee,
and if so, Tenant hereby releases Landlord from any and all liability with
respect to said deposit and its application or return.

4.   Occupancy and Use

     (a)  Tenant shall use and occupy the Premises for general office purposes
and for no other use or purpose without the prior written consent of Landlord.

                                       4

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     (b)  Tenant shall not do or permit anything to be done in or about the
Premises which will in any way obstruct or interfere with the rights of other
tenants or occupants of the Building or injure or annoy them, nor use or allow
the Premises to be used for any improper, immoral, unlawful, or objectionable
purposes or for any business, use or purpose deemed to be disreputable or
inconsistent with the operation of a first class office building, nor shall
Tenant cause or maintain or permit any nuisance in, on, or about the Premises.
Tenant shall not commit or suffer the commission of any waste in, on, or about
the Premises.

     (c)  Tenant shall have access to the Premises and the common areas of the
Property twenty-four (24) hours per day, seven (7) days a week, subject only to
(i) Landlord performing maintenance and other obligations of Landlord under this
Lease, and (ii) reasonable after-hours security regulations.

     (d)  Landlord shall provide to Tenant and Tenant's employees, agents and
business invitees the non-exclusive use of at least four (4) parking spaces per
one thousand (1,000) square feet of rentable area occupied by Tenant.  Landlord
reserves the right to limit parking in and restrict access to portions of the
parking areas upon the Property in Landlord's discretion; provided, however,
that Tenant shall continue to have access to at least four (4) parking spaces
per one thousand square feet of rentable area occupied by Tenant.

5.   Compliance with Laws.

     (a)  Tenant shall not use the Premises or permit anything to be done in or
about the Premises which will in any way conflict with any law, statute,
ordinance, or governmental rule, regulation or requirement now in force or which
may hereafter be enacted or promulgated.  Tenant shall not do or permit anything
to be done on or about the Premises or bring or keep anything therein which will
in any way increase the rate of any insurance upon the Building in which the
Premises are situated or any of its contents or cause a cancellation of said
insurance or otherwise affect said insurance in any manner, and Tenant shall at
its sole cost and expense promptly comply with all laws, statutes, ordinances,
and governmental rules, regulations, or requirements now in force or which may
hereafter be in force and with the requirements of any board of fire
underwriters or other similar body now or hereafter constituted relating to or
affecting the condition, use, or occupancy of the Premises.

     (b)  Tenant shall not use, handle, store, deal in, discharge, or fabricate
any Hazardous Materials (as herein defined) on or about the Premises, except for
customary office and cleaning supplies which are used in business offices
similar to Tenant's and which are stored, used and disposed of by Tenant in
compliance with all applicable laws, rules and regulations. Tenant shall
indemnify Landlord (and anybody claiming by, through, or under Landlord) from
and against any and all claims, damages, losses, costs, and expenses (including
reasonable attorney's fees and court costs) incurred by Landlord or anybody
claiming by, through, or under Landlord as a result of the existence of (i) any
Hazardous Materials on or about the Premises or (ii) any environmental problems
relating to the Premises, which are caused by or related to the delivery,
deposit or creation of Hazardous Materials on or about the Premises during the
term of this Lease by Tenant or Tenant's agents, employees, contractors,
invitees or licensees. As used herein, "Hazardous Materials" means any petroleum
or chemical liquids or solids, liquid or gaseous products, contaminants, oils,
radioactive materials, asbestos, PCB's, urea-formaldehyde, or any toxic or
hazardous waste or hazardous substances, as those terms are used in (A) the
Resources Conservation Recovery Act, as amended by the Hazardous and Solid Waste
Amendments of 1984, 42 U.S.C. (S)(S) 6901 et seq.; (B) the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended by
the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. (S)(S) 9601
et seq.; (C) the Clean Water Act, 33 U.S.C. (S)(S) 1251 et seq.; (D) the Toxic
Substances and Control Act, 15 U.S.C. (S)(S) 2601 et seq.; (E) the Clean Air
Act, 42 U.S.C. (S)(S) 7401 et seq,; (F) any and all applicable environmental
laws and regulations of the State of Georgia; and (G) any and all other
applicable federal, state or local law or regulation governing hazardous
substances or workplace health or safety, as such laws may be amended from time
to time.

6.   Alterations

     Tenant shall not make or suffer to be made any alterations, additions, or
improvements in, on, or to the Premises or any part thereof without the prior
written consent of Landlord, and no such alterations, additions or improvements
shall be made without the supervision of Landlord's designated agent or
representative.  Notwithstanding anything contained herein to the contrary,
Tenant, without Landlord's consent, shall have the right to recarpet, repaint,
and make other similar decorative alterations to the Premises provided the cost
of such alterations does not exceed Five Thousand and No/100 Dollars
($5,000.00), such alterations do not involve or tie into the electrical,
plumbing, HVAC or other systems of the Building, and Tenant provides to Landlord
at least five (5) business days' prior written notice of such alterations.  All
such alterations, additions, or improvements in, on, or to said Premises, except
for Tenant's movable furniture and equipment, shall immediately become
Landlord's property and, at the end of the term hereof, shall remain on the
Premises without compensation to Tenant.  In the event Landlord consents to the
making of such alterations, additions, or improvements by Tenant, the same shall
be made by Tenant, at Tenant's sole cost and expense, in accordance with all
applicable laws, ordinances, and regulations and all requirements of Landlord's
and Tenant's insurance policies, and in accordance with plans and specifications
approved by Landlord, and any contractor or person selected by Tenant to make
the same, and all subcontractors, must first be approved in writing by Landlord,
or, at Landlord's option,

                                       5

<PAGE>

the alteration, addition or improvement shall be made by Landlord for Tenant's
account and Tenant shall reimburse Landlord for the cost thereof upon demand.
Upon the expiration or sooner termination of the term herein provided, Tenant
shall, upon demand by Landlord, at Tenant's sole cost and expense, forthwith and
with all due diligence remove any or all alterations, additions, or improvements
made by or for the account of Tenant, designated by Landlord to be removed
(provided, however, that Landlord made such removal a condition of Landlord's
consent at the time Tenant requested and Landlord granted Landlord's prior
written approval of same), and Tenant shall forthwith and with all due
diligence, at its sole cost and expense, repair and restore the Premises to
their condition prior to such alteration, addition or improvements, reasonable
wear and tear, unrepaired casualty and condemnation expected. Tenant agrees that
Landlord shall have the right to charge a fee for any and all construction
supervision provided by Landlord's designated agents or representatives in
connection with any alterations, additions, or improvements to the Premises by
Tenant. Such fee, at Landlord's option, shall be either a fixed fee or a fee
calculated on an hourly basis, considering the time expended by Landlord's
agents or representatives in supervising Tenant's construction.

7.   Repair.

     By taking possession of the Premises, Tenant accepts the Premises as being
in the condition in which Landlord is obligated to deliver them and otherwise in
good order, condition and repair, except for punchlist items. Tenant shall, at
all times during the term hereof at Tenant's sole cost and expense, keep the
Premises and every part thereof in good order, condition and repair, excepting
ordinary wear and tear, damage thereto by fire, earthquake, act of God or the
elements. Tenant shall upon the expiration or sooner surrender to Landlord the
Premises and all repairs, changes, alterations, additions and improvements
thereto in the same condition as when received, or when first installed,
ordinary wear and tear, damage by fire, earthquake, act of God, or the elements
expected. It is hereby understood and agreed that Landlord has no obligation to
alter, remodel, improve, repair, decorate, or paint the Premises or any part
thereof except as specified in the Work Letter Agreement, and that no
representations respecting the condition of the Premises or the Building have
been made by Landlord to Tenant, except as specifically herein set forth.

8.   Liens.

     Tenant shall keep the Premises free from any liens arising out of any work
performed, material furnished, or obligations incurred by Tenant. In the event
that Tenant shall not, within ten (10) days following the recordation of any
such lien, cause the same to be released of record by payment or posting of a
proper bond, Landlord shall have, in addition to all other remedies provided
herein and by law, the right, but not the obligation, to cause the same to be
released by such means as it shall deem proper, including payment of the claim
giving rise to such lien. All such sums paid by Landlord and all expenses
incurred by it in connection therewith shall be considered additional rent and
shall be payable to Landlord by Tenant on demand and with interest at the rate
of four percentage points higher than the prime commercial lending rate from
time to time of Bank of America in Atlanta, Georgia, provided, however, that if
such rate exceeds the maximum rate permitted by law, the maximum lawful rate
shall apply; the interest rate so determined is hereinafter called the "Agreed
Interest Rate". Landlord shall have the right at all times to post and keep
posted on the Premises any notices permitted or required by law, or which
Landlord shall deem proper, for the protection of Landlord, the Premises, the
Building, and any other party having an interest therein, from mechanics' and
materialmen's liens, and Tenant shall give to Landlord at least five (5)
business days prior notice of commencement of any construction on the Premises.

9.   Assignment and Subletting.

     (a)  Tenant shall not sell, assign, encumber or otherwise transfer by
operation of law or otherwise this Lease or any interest herein, sublet the
Premises or any portion thereof, or suffer any other person to occupy or use the
Premises or any portion thereof, without the prior written consent of Landlord
as provided herein, which consent shall not be unreasonably withheld, delayed or
conditioned, nor shall Tenant permit any lien to be placed on the Tenant's
interest by operation of law. Tenant shall, by written notice, advise Landlord
of its desire from and after a stated date (which shall not be less than thirty
(30) days nor more than ninety (90) days after the date of Tenant's notice) to
sublet the Premises or any portion thereof for any part of the term hereof; and
supply Landlord with such information, financial statements, verifications and
related materials as Landlord may request or desire to evaluate the written
request to sublet; and in such event Landlord shall within thirty (30) days from
Landlord's receipt of such notice and all said information, financial
statements, verifications and related materials requested by Landlord (i)
consent to such proposed subletting or (ii) deny such consent giving reasons for
denying such consent at the time of denial. Said notice by Tenant shall state
the name and address of the proposed subtenant, and Tenant shall deliver to
Landlord a true and complete copy of the proposed sublease with said notice.
Tenant shall, at Tenant's own cost and expense, discharge in full any
outstanding commission obligation on the part of Landlord with respect to this
lease, and any commissions which may be due and owing as a result of any
proposed assignment or subletting. Tenant agrees to pay to Landlord, promptly
after request therefor, the amount of all reasonable attorneys' fees and
expenses incurred by Landlord in connection with any assignment or subletting
issues or review of documentation relating thereto.

     (b)  Any subletting or assignment hereunder by Tenant shall not result in
Tenant being released or discharged from any liability under this Lease. As a
condition to Landlord's prior written

                                       6
<PAGE>

consent as provided for in this paragraph, the assignee or subtenant shall agree
in writing to comply with and be bound by all of the terms, covenants,
conditions, provisions and agreements of this Lease, and Tenant shall deliver to
Landlord promptly after execution, an executed copy of each sublease or
assignment and an agreement of said compliance by each sublessee or assignee.

     (c)  Landlord's consent to any sale, assignment, encumbrance, subletting,
occupation, lien or other transfer shall not release Tenant from any of Tenant's
obligations hereunder or be deemed to be a consent to any subsequent occurrence.
Any sale, assignment, encumbrance, subletting, occupation, lien or other
transfer of this Lease which does not comply with the provisions of this
Paragraph 9 shall be void.

     (d)  For purposes of this Section, an assignment of stock or other direct
or indirect ownership interest in Tenant which constitutes a controlling
interest in Tenant shall be deemed an assignment within the meaning of and be
governed by this Section.

     (e)  Notwithstanding any provision contained herein, Tenant agrees that it
shall not sell, assign, encumber or otherwise transfer by operation of law or
otherwise this Lease or any interest herein, or sublet the Premises or any
portion thereof, to any tenant who currently leases space in the Building.

     (f)  Landlord's consent to a proposed assignment or subletting pursuant to
this Paragraph 9 shall not be unreasonably withheld, delayed or conditioned,
but, in addition to any other grounds for denial, Landlord's consent shall be
deemed reasonably withheld if, in Landlord's reasonable judgment, any of the
following conditions exist:

     (i)       the proposed assignee or subtenant intends to use any part of the
     Premises for the operation of a retail business or for a purpose not
     permitted under this Lease; or

     (ii)      the use of the Premises or the Building by the proposed assignee
     or subtenant would, in Landlord's reasonable judgment, significantly
     increase the pedestrian traffic in and out of the Building, or would
     require material or substantial alterations to the Building, Premises or
     Property in order to comply with applicable laws; or

     (iii)     the proposed use by such subtenant or assignee would result in a
     violation of an exclusive right granted to another tenant in the Building,
     or require rezoning or a zoning variance; or

     (iv)      the proposed subtenant or assignee is a governmental agency; or

     (v)       the business and operations of the proposed assignee or subtenant
     are inconsistent with the tenancy of a comparable building, and/or would be
     incompatible with the businesses and operations being conducted by other
     tenants in the Building, or

     (vi)      the proposed use by such subtenant or assignee could create a
     condition that is dangerous to persons or property (e.g. a foreign
     consulate) or could create an atmosphere or condition that could be
     disruptive to the operation of the Building (e.g. an abortion or methadone
     clinic); or

     (vii)     as a result of the number of people to be officed in the space
     proposed for sublease or assignment, the efficiency of the Premises' HVAC
     system would be materially diminished; or

     (viii)    with respect to a sublease, Tenant proposes to demise the
     sublease space in a commercially unreasonable manner (e.g. in a
     configuration that would not be readily leaseable at the end of the Lease
     Term) and does not provide Landlord with additional security in an amount
     equal to all reasonably anticipated restoration costs.

10.  Insurance and Indemnification.

     (a)  Landlord shall not be liable to Tenant and Tenant hereby waives all
claims against Landlord for any injury or damages to any person or property in
or about the Premises by or from any cause whatsoever, without limiting the
generality of the foregoing, whether caused by water leakage of any character
from the roof, walls, basement, or other portion of the Premises or the
Building, or caused by gas, fire, or explosion of the Building or the complex of
which it is a part or any part thereof, except to the extent caused by the gross
negligence or willful misconduct of Landlord.

     (b)  Tenant shall hold Landlord harmless from and defend and indemnify
Landlord against any and all claims or liability for any injury or damage to any
person or property whatsoever: (i) occurring in, on or about the Premises or any
part thereof, (ii) occurring in, on, or about any facilities (including, without
limitation, elevators, stairways, passageways or hallways), the use of which
Tenant may have in conjunction with other tenants of the Building, when such
injury or damage shall be caused in part or in whole by the act, neglect, fault
of, or ommission of any duty with respect to the same by Tenant, its agents,
servants, employees, or invitees. Tenant further agrees to indemnify, defend and
save harmless Landlord against and from any and all claims in any manner
relating to any work or thing whatsoever done by Tenant in or about, or any
transactions of Tenant concerning, the Premises, and will further indemnify,
defend and save Landlord harmless against and from any and all claims arising
from any breach or default

                                       7
<PAGE>

on the part of Tenant in the performance of any covenant or agreement on the
part of Tenant to be performed pursuant to the terms of this Lease, or arising
from any act or negligence of Tenant, or any of its agents, contractors,
servants, employees and licensees, and from and against all costs, counsel fees,
expenses and liabilities incurred in connection with any such claim or action or
proceeding brought thereon. Furthermore, in case any action or proceeding be
brought against Landlord by reason of any claims or liability, Tenant agrees to
defend such action or proceeding at Tenant's sole expense by counsel reasonably
satisfactory to Landlord. The provisions of this Lease with respect to any
claims or liability occurring prior to the termination or expiration of this
Lease shall expressly survive such termination or expiration of this Lease.

     (c)  Tenant agrees to purchase at its own expense and to keep in force
during the term of this lease a policy or policies of worker's compensation and
comprehensive general liability insurance, including personal injury and
property damage, with contractual liability endorsement, in the amount of Two
Million Dollars ($2,000,000.00) for property damage and Three Million Dollars
($3,000,000.00) per occurrence for personal injuries or deaths of persons
occurring in or about the Premises.  Said policies shall: (i) name Landlord and
Landlord's management company as additional insureds and insure Landlord's
contingent liability under this Lease (except for the worker's compensation
policy, which shall instead include a waiver of subrogation endorsement in favor
of Landlord and Landlord's management company), (ii) be issued by an insurance
company which is acceptable to Landlord and licensed to do business in the State
of Georgia, and (iii) provide that said insurance shall not be canceled unless
thirty (30) days prior written notice shall have been given to Landlord.  Said
policy or policies or certificates thereof shall be delivered to Landlord by
Tenant upon commencement of the term of the Lease and upon each renewal of said
insurance.

     (d)  At all times after the Commencement Date, Landlord shall maintain in
force, at its sole cost and expense (but subject to reimbursement as Direct
Operating Expenses), "All Risk" (sometimes known as "Special Causes of Loss")
property insurance covering the Building and all permanent alterations,
additions and improvements constituting part of the Premises, for not less than
their full replacement cost.  Such insurance shall contain a waiver of
subrogation rights and may include such other coverages, such as rental
interruption insurance, as Landlord may deem reasonably necessary, and may
contain an endorsement naming Landlord's mortgagee as loss payee, as its
interests may appear.

     (e)  At all times after the Commencement Date, Landlord shall maintain in
force, at its sole cost and expense (but subject to reimbursement as Direct
Operating Expenses), a policy or policies of comprehensive general liability
insurance, including personal injury and property damage, in the amount of Two
Million and No/100 Dollars ($2,000,000.00) for property damage and Three Million
and No/100 Dollars ($3,000,000.00) for personal injuries or deaths of persons
occurring or about the Property.

11.  Waiver of Subrogation.

     Each of Landlord and Tenant hereby releases the other from any and all
liability or responsibility to the other or anyone claiming through or under
them by way of subrogation or otherwise for any loss or damage to property
caused by fire or any other perils insured in policies of insurance covering
such property, even if such loss or damage shall have been caused by the fault
or negligence of the other party, or anyone for whom such party may be
responsible, including any other tenants or occupants of the remainder of the
Building in which the Premises are located.  Each of Landlord and Tenant agrees
that it will request its insurance carriers to include in its policies a clause
or endorsement to the effect that any such release shall not adversely affect or
impair said policies or prejudice the right of the releasor to coverage
thereunder.

12.  Service and Utilities.

     (a)  Landlord shall maintain the public and common areas of the Building,
including lobbies, stairs, elevators, parking areas, sidewalks, landscaping,
corridors and restrooms, the windows in the Building, the mechanical, plumbing
and electrical equipment serving the Building, and the structure itself, in good
order and condition consistent with comparable first class office buildings in
the immediate market area, except for damage occasioned by the act of Tenant,
which damage shall be repaired by Landlord at Tenant's expense.  In the event
Tenant requires or needs to have one or more separate systems of either heating,
ventilating, air conditioning or other similar system over and above that
provided by Landlord, the installation, care, expenses and maintenance of each
such system shall be borne by and paid for by Tenant.

     (b)  Provided the Tenant shall not be in default hereunder, and subject to
the provisions elsewhere herein contained and to the rules and regulations of
the Building, Landlord agrees to furnish to the Premises during ordinary
business hours (being 8:00 a.m. to 6:00 p.m. Monday through Friday, and 8:00
a.m. to 1:00 p.m. on Saturday) of generally recognized business days, to be
determined by Landlord (but exclusive, in any event, of Sundays and legal
holidays), heat and air-conditioning which are, in Landlord's reasonable
judgment, consistent with comparable first class office buildings in the
immediate market area, replacement of bulbs for building standard fluorescent
lights and non-building standard lights, provided Tenant stocks the bulbs for
all of Tenant's non-building standard lights, janitorial services during the
times and in the manner that such services are, in Landlord's reasonable
judgement, customarily furnished in comparable first class office buildings in
the immediate market area, and elevator service.

                                      8

<PAGE>

    Landlord shall use reasonable efforts to provide additional or after-hours
heating or air-conditioning, but if Landlord elects to provide such series at
Tenant's request, Tenant shall pay to Landlord a reasonable charge for such
services as determined from time to time by Landlord. Tenant also agrees at all
times to cooperate fully with Landlord and to abide by all the regulations and
requirements which Landlord may reasonably prescribe for the proper functioning
and protection of said heating, ventilating, and air-conditioning system and to
comply with all laws, ordinances and regulations respecting the conservation of
energy. Wherever heat-generating machines, excess lighting or equipment are used
in the Premises which affect the temperature otherwise maintained by the air-
conditioning system, Landlord reserves the right to install supplementary air
conditioning units in the Premises, and the cost thereof, including the cost of
electricity and/or water therefor, shall be paid by Tenant to Landlord upon
demand by Landlord. Landlord agrees to furnish to the Premises electricity for
general office purposes and water for lavatory and drinking purposes, subject to
the provisions of subparagraph 12(c) below. Landlord shall in no event be liable
for any interruption or failure of utility services on the Premises, but
Landlord will exercise due diligence to furnish uninterrupted service.

    (c) Tenant will not without the written consent of Landlord use any
apparatus or device in the Premises, including without limitation, electronic
data processing machines, computers, and machines using excess lighting or
current which will in any way increase the amount of electricity or water
usually furnished or supplied for use of the Premises as general office space;
nor connect with electric current, except through existing electrical outlets in
the Premises, or water pipes, any apparatus or device for the purpose of using
electricity current or water. If Tenant in Landlord's judgment shall require
water or electric current or any other resource in excess of that usually
furnished or supplied for use of the Premises as general office space (it being
understood that such an excess may result from the number of fixtures, apparatus
and devices in use, the nature of such fixtures, apparatus and devices, the
hours of use, or any combination of such factors), Tenant shall first procure
the consent of Landlord, which Landlord may refuse, to the use thereof, and
Landlord may cause a special meter to be installed in the Premises so as to
measure the amount of water, electric current or other resource consumed for any
such other use. The cost of any such meters, and of installation, maintenance,
and repair thereof shall be paid for by Tenant, and Tenant agrees to pay
Landlord promptly upon demand by Landlord for all such water, electric current
or resource consumed, as shown by said meters, as the rates charged for such
resource, plus any additional expense incurred in keeping account of the water,
electric current or other resource so consumed. Landlord shall not be in default
hereunder or be liable for any damages directly or indirectly resulting from,
not shall the rental herein reserved be abated by reason of (i) the
installation, use or interruption of use of any equipment in connection with the
furnishing of any of the foregoing utilities and services, (ii) failure to
furnish or delay in furnishing any such utilities or services when such failure
or delay is caused by acts of God or the elements, labor disturbances of any
character, any other accidents or other conditions beyond the reasonable control
of Landlord, or by the making of repairs or improvements to the Premises or to
the Building, (iii) the limitation, curtailment, rationing or restriction on use
of water or electricity, gas or any other form of energy or any other service
utility whatsoever serving the Premise or the Building. Furthermore, Landlord
shall be entitled to cooperate voluntarily in a reasonable manner with the
efforts of national, state or local governmental agencies or utilities suppliers
in reducing energy or other resources consumption.

    (d) Any sums payable under this Paragraph 12 shall be considered additional
rent and may be added to any installment of rent thereafter becoming due, and
Landlord shall have the same remedies for a default in payment of such sums as
for a default in the payment of rent.

    (e) Tenant shall not provide any janitorial services without Landlord's
written consent and then only subject to supervision of Landlord and by a
janitorial contractor or employees at all times satisfactory to Landlord. Any
such services provided by Tenant shall be at Tenant's sole risk and
responsibility.

13. Estoppel Certificate.

    Within ten (10) days following the Commencement Date or any written request
which Landlord may make from time to time, Tenant shall execute and deliver to
Landlord a certificate substantially in the form attached hereto as Exhibit "D"
                                                                    -----------
and made a part thereof, indicating thereon any exceptions thereto which may
exist at that time. Failure of Tenant to execute and deliver such certificate
shall at Landlord's option constitute a default hereunder or constitute an
acceptance of the Premises and acknowledgement by Tenant that the statements
included in Exhibit "D" are true and correct without exception. Landlord and
            -----------
Tenant intend that any statement delivered pursuant to this paragraph may be
relied upon by Landlord or by any mortgagee, beneficiary, purchaser or
prospective purchaser of the Building or any interest therein or anyone to whom
Landlord may provide said certificate.

14. Holding Over.

    Tenant will, at the termination of this Lease by lapse or time or otherwise,
yield up immediate possession to Landlord. If Tenant retains possession of the
Premises or any part thereof after such termination, then Landlord may, at its
option, serve written notice upon Tenant that such holding over constitutes any
one of (i) creation of a month to month tenancy, upon the terms and conditions
set forth in this Lease, or (ii) creation of a tenancy of sufferance, in any
case upon the terms and conditions set forth in

                                       9
<PAGE>

this Lease; provided, however, that the monthly rental (or daily rental under
(ii)) shall, in addition to all other sums are to be paid by Tenant hereunder,
whether or not as additional rent, be equal to one hundred fifty percent (150%)
of the rental being paid monthly to Landlord under this Lease immediately prior
to such termination (prorated in the case of (ii) on the basis of a 365 day year
for each day Tenant remains in possession). If no such notice is served, then a
tenancy at sufferance shall be deemed to be created at the rent in the preceding
sentence. Tenant shall also pay to Landlord all damages sustained by Landlord
resulting from retention of possession by Tenant, including the loss of any
proposed subsequent tenant for any portion of the Premises. The provisions of
this paragraph shall not constitute a waiver by Landlord of any right of reentry
as herein set forth; nor shall receipt of any rent or any other act in apparent
affirmance of the tenancy operate as a waiver of the right to terminate this
Lease for a breach of any of the terms, covenants, or obligations herein on
Tenant's part to be performed.

15.  Subordination.

     Without the necessity of any additional document being executed by Tenant
for the purpose of effecting a subordination, this Lease shall be subject and
subordinate at all times to the lien or interest of any mortgage or deed to
secure debt which may now exist or hereafter be executed in any amount for which
said Building, land, or Landlord's interest or estate in any of said items is
specified as security. Notwithstanding the foregoing, Landlord shall have the
right to subordinate or cause to be subordinated any such liens or interests of
mortgages or deeds to secure debt to this Lease. In the event that any mortgage
or deed to secure debt is foreclosed or a conveyance in lieu of foreclosure is
made for any reason, Tenant shall, notwithstanding any subordination, attorn to
and become the Tenant of the successor in interest to Landlord at the option of
such successor in interest. Tenant agrees to execute such non-disturbance and
attornment agreements as the holder of any mortgage or deed to secure debt on
the Building may reasonably require. Tenant covenants and agrees to execute and
deliver, upon demand by Landlord and in the form requested by Landlord, any
additional documents evidencing the priority or subordination of this Lease with
respect to the lien of any such mortgage or deed to secure debt.

16.  Entry By Landlord.

     Landlord reserves and shall at all times have the right, after delivering
verbal notice to Tenant (which shall be given by direct conversation or message
to Tenant's chief financial officer or corporate counsel provided they maintain
offices within the Premises) at least twenty-four (24) hours in advance of
Landlord's entry (except in the case of an emergency or the supplying by
Landlord of janitorial and other routine services, in which case no advance
notice shall be necessary), to enter the Premises to inspect the same, to supply
janitor service and any other service to be provided by Landlord to Tenant
hereunder, to show said Premises to prospective purchasers, mortgagees or
tenants (but only during the last nine (9) months of the Lease Term as to
prospective tenants), to post notices of nonresponsibility, and to alter,
improve, or repair the Premises and any portion of the Building of which the
Premises are a part or to which access is conveniently made through the
Premises, without abatement of rent, and may for that purpose erect, use, and
maintain scaffolding, pipes, conduits, and other necessary structures in and
through the Premises where reasonably required by the character of the work to
be performed, provided that entrance to the Premises shall not be blocked
thereby, and further provided that the business of Tenant shall not be
interfered with unreasonably. Tenant hereby waves any claim for damages for any
injury or inconvenience to or interference with Tenant's business, any loss of
occupancy or quiet enjoyment of the Premises, and any other loss occasioned
thereby. For each of the aforesaid purposes, Landlord shall at all times have
and retain a key with which to unlock all of the doors, in, upon, and about the
Premises, and Landlord shall have the right to use any and all means which
Landlord may deem necessary or proper to open said doors in an emergency, in
order to obtain entry to any portion of the Premises, and any entry to the
Premises, or portions thereof obtained by Landlord by any of said means, or
otherwise, shall not under any circumstances be construed or deemed to be a
forcible or unlawful entry into, or a detainer of, the Premises, or an eviction,
actual or constructive, of Tenant from the Premises or any portions thereof.
Landlord shall also have the right at any time, without the same constituting an
actual or constructive eviction and without incurring any liability to Tenant
therefor, to change the arrangement and/or location of entrances or passage
ways, doors and doorways, and corridors, elevators, stairs, toilets, or other
public parts of the Building and to change the name, number or designation by
which the Building is commonly known.

17. Insolvency or Bankruptcy.

    The appointment of a receiver to take possession of all or substantially all
of the assets of Tenant, or an assignment of Tenant for the benefit of
creditors, or any action taken or suffered by Tenant under any insolvency,
bankruptcy, or reorganization act, shall at Landlord's option constitute a
breach of this Lease by Tenant. Upon the happening of any such event or at any
time thereafter, this Lease shall terminate five (5) days after written notice
of termination from Landlord to Tenant. In no event shall this Lease be assigned
or assignable by operation of law or by voluntary or involuntary bankruptcy
proceedings or otherwise and in no event shall this Lease or any rights or
privileges hereunder be an asset of Tenant under any bankruptcy, insolvency, or
reorganization proceedings.

                                      10
<PAGE>

18.  Default and Remedies.

     The following events shall be deemed to be events of default by Tenant
under this Lease:

     (a)  Tenant shall fail to pay when due any sum of money becoming due to be
paid to Landlord hereunder, whether such sum be any installment of the rent
herein reserved, any other amount treated as additional rent hereunder, or any
other payment or reimbursement to Landlord required herein, whether or not
treated as additional rent hereunder, and such failure shall continue for a
period of five (5) days from the date such payment was due; provided, however,
that with respect to the first occurrence of a failure to pay during any
consecutive twelve (12) month period during the Lease Term, such failure shall
not constitute an event of default under this Lease unless such failure shall
continue for a period of five (5) days after written notice from Landlord to
Tenant of such failure; or

     (b)  Tenant shall fail to comply with any term, provision or covenant of
this Lease other than by failing to pay when or before due any sum of money
becoming due to be paid to Landlord hereunder, and shall not cure such failure
within (i) twelve (12) hours after written notice to Tenant if the failure
involves a condition hazardous or dangerous to life or property or (ii) twenty
(20) days after written notice to Tenant in the case of any other failure (or,
in the event the failure cannot reasonably be cured within said twenty (20)-day
period, and provided Tenant commences such cure within said twenty (20)-day
period and thereafter diligently pursues such cure to completion, within such
reasonable period of time (not to exceed ninety (90) days) necessary to cure
such failure); or

     (c)  Tenant shall abandon or vacate any substantial portion of the Premises
for at least thirty (30) consecutive days; or

     (d)  Tenant shall create or allow to be created in or about the demised
Premises any condition or circumstance constituting a hazard to people or
property, a nuisance, a trespass, or other condition offensive to Landlord or
others, whether or not such condition or circumstance rises to the level of a
civil or criminal law violation or action; or

     (e)  Tenant shall fail to vacate the Premises immediately upon termination
of this Lease, by lapse of time or otherwise, or upon termination of Tenant's
right to possession only;

     (f)  If, in spite of the provisions hereof, the interest of Tenant shall be
levied upon under execution or be attached by process of law or Tenant shall
fail to contest diligently the validity of any lien or claimed lien and give
sufficient security to Landlord to insure payment thereof or shall fail to
satisfy any judgment  rendered thereon and have the same released, and such
default shall continue for ten (10) days after written notice thereof to Tenant;
or

     (g)  Tenant shall assign, sublet or transfer its interest hereunder in
violation of this Agreement.

     Upon the occurrence of any such events of default described in this
paragraph or elsewhere in this Lease, Landlord shall have the option to pursue
any one or more of the following remedies without any notice or demand
whatsoever:

     (aa) Landlord may, at its election, terminate this Lease or terminate
Tenant's right to possession only, without terminating the Lease.

     (bb) Upon any termination of this lease, whether by lapse of time or
otherwise, or upon any termination of Tenant's right to possession without
termination of the Lease, Tenant shall surrender possession and vacate the
Premises immediately, and deliver possession thereof to Landlord, and Tenant
hereby grants to Landlord full and free license to enter into and upon the
Premises in such event with or without process of law and to repossess the
Premises and to expel or remove Tenant and any others who may be occupying or
within the Premises and to remove any and all property therefrom, without being
deemed in any manner guilty of trespass, eviction or forcible entry or detainer,
and without incurring any liability for any damage resulting therefrom; Tenant
hereby waiving any right to claim damage for such reentry and expulsion, and
without relinquishing Landlord's right to rent or any other right given to
Landlord hereunder or by operation of law.

     (cc) Upon termination of this Lease, whether by lapse of time, by or in
connection with a dispossessory proceeding or otherwise, Landlord shall be
entitled to recover as Landlord's actual accrued damages, all rent, including
any amount treated as additional rent hereunder, and other sums due and payable
by Tenant on the date of termination, plus, as Landlord's liquidated damages for
the balance of the stated term hereof and not as a forfeiture or penalty, the
sum of: (i) an amount equal to the then present value of the rent, including any
amounts treated as additional rent hereunder, and other sums provided herein to
be paid by Tenant for the residue of the stated term hereof, less the fair
rental value of the Premises for such residue (taking into account the time and
expenses necessary to obtain a replacement tenant or tenants, including expenses
hereinafter described in subparagraph (dd)(ii) relating to recovery of the
Premises, preparation for reletting and for reletting itself), and (ii) the cost
of performing any other covenants which would have otherwise been performed by
Tenant.

                                      11

<PAGE>

     (dd)      (i)  Upon termination of the Lease or Tenant's right to
possession of the demised Premises, regardless of whether such termination
occurs as a result of a dispossessory proceeding, distraint proceeding, exercise
of right of termination, re-entry, lease expiration or otherwise, Tenant shall
remain liable for payment of all rent thereafter accruing and for performance of
all obligations thereafter performable under this Lease. Landlord may, at
Landlord's option, enter the Premises, remove Tenant's signs and other evidences
of tenancy, and take and hold possession thereof as provided in subparagraph
(bb) above, without such entry and possession releasing Tenant from any
obligation, including Tenant's obligation to pay rent, including any amounts
treated as additional rent, hereunder for the full term of the Lease.

               (ii) Landlord may, but need not, relet the Premises or any part
thereof for such rent and upon such terms as Landlord in its sole discretion
shall determine (including the right to relet the Premises for a greater or
lesser term than that remaining under this Lease, the right to relet the
Premises as a part of a larger area, and the right to change the character and
use made of the Premises) and Landlord shall not be required to accept any
tenant offered by Tenant or to observe any instructions given by Tenant about
such reletting. In any such case, Landlord may make repairs, alterations and
additions in or to the Premises, and redecorate the same to the extent Landlord
deems necessary or desirable, and Tenant shall, upon demand, pay the cost
thereof, together with Landlord's expenses for reletting, including, without
limitation, any broker's commission incurred by Landlord. If the consideration
collected by Landlord upon any such reletting plus any sums previously collected
from Tenant are not sufficient to pay the full amount of all rent, including any
amounts treated as additional rent hereunder and other sums reserved in this
Lease for the remaining term hereof, together with the costs of repairs,
alterations, additions, redecorating, and Lessor's expenses of reletting and the
collection of the rent accruing therefrom (including attorneys' fees and
broker's commissions), Tenant shall pay to Landlord, as Landlord's liquidated
damages and not as a forfeiture or penalty, the amount of such deficiency upon
demand and Tenant agrees that Landlord may file suit to recover any sums falling
due under this section from time to time.

     (ee)      Landlord may, at Landlord's option, enter into and upon the
Premises, with or without process of law, if Landlord determines in its sole
discretion that Tenant is not acting within a commercially reasonable time to
maintain, repair or replace anything for which Tenant is responsible hereunder,
and correct the same, without being deemed in any manner guilty of trespass,
eviction or forcible entry and detainer and without incurring any liability for
any damage resulting therefrom, and Tenant agrees to reimburse Landlord, on
demand, as additional rent, for any expenses which Landlord may incur in thus
effecting compliance with Tenant's obligations under this Lease.

     (ff)      Any and all property which may be removed from the Premises by
Landlord pursuant to the authority of the Lease or of law, to which Tenant is or
may be entitled, may be handled, removed and stored, as the case may be, by or
at the direction of Landlord at the risk, cost and expense of Tenant, and
Landlord shall in no event be responsible for the value, preservation or
safekeeping thereof. Tenant shall pay to Landlord, upon demand, any and all
expenses incurred in such removal and all storage charges against such property
so long as the same shall be in Landlord's possession or under Landlord's
control. Any such property of Tenant not retaken by Tenant from storage within
thirty (30) days after removal from the Premises shall, at Landlord's option, be
deemed conveyed by Tenant to Landlord under this Lease as by a bill of sale
without further payment or credit by Landlord to Tenant.

     Pursuit of any of the foregoing remedies shall not preclude pursuit of any
of the other remedies herein provided or any other remedies provided by law or
available in equity (all such remedies being cumulative), nor shall pursuit of
any remedy herein provided constitute a forfeiture or waiver of any rent due to
Landlord hereunder or of any damages accruing to Landlord by reason of the
violation of any of the terms, provisions and covenants herein contained. No act
or thing done by Landlord or its agents during the term hereby granted shall be
deemed a termination of this Lease or an acceptance of the surrender of the
Premises, and no agreement to terminate this Lease or accept a surrender of said
Premises shall be valid unless in writing signed by Landlord. No waiver by
Landlord of any violation or breach of any of the terms, provisions and
covenants herein contained shall be deemed or construed to constitute a waiver
of any other violation or breach of any of the terms, provisions and covenants
herein contained. Landlord's acceptance of the payment of rental or other
payments hereunder after the occurrence of an event of default shall not be
construed as a waiver of such default, unless Landlord so notifies Tenant in
writing. Forbearance by Landlord in enforcing one or more of the remedies herein
provided upon an event of default shall not be deemed or construed to constitute
a waiver of such default or of Landlord's right to enforce any such remedies
with respect to such default or any subsequent default. If, on account of any
breach or default by Tenant in Tenant's obligations under the terms and
conditions of this Lease, it shall become necessary or appropriate for Landlord
to employ or consult with an attorney concerning or to enforce or defend any of
Landlord's rights or remedies hereunder, Tenant agrees to pay reasonable
attorneys' fees so incurred.

     Without limiting the foregoing, to the extent permitted by law, Tenant
hereby: (i) appoints and designates the Premises as a proper place for service
of process upon Tenant, and agrees that service of process upon any person in
a managerial capacity employed by Tenant upon the Premises shall constitute
personal service of such process upon Tenant (provided, however, Landlord does
not hereby waive the right to serve Tenant with process by any other lawful
means); (ii) expressly waives any right to trial by jury; and (iii) expressly
waives the service of any notice under any existing or future law of the State
of Georgia applicable to landlords and tenants.

                                      12

<PAGE>

19.  Damage by Fire, Etc.

     (a)  If the Building, improvements, or Premises are rendered partially or
wholly untenantable by fire or other casualty, and if such damage cannot, in
Landlord's reasonable estimation, be materially restored within ninety (90) days
of such damage, then Landlord may, at its sole option, terminate this Lease as
of the date of such fire or casualty. Landlord shall exercise its option
provided herein by written notice to Tenant within sixty (60) days of such fire
or other casualty. For purposes hereof, the Building, improvements, or Premises
shall be deemed "materially restored" if they are in such condition as would not
prevent or materially interfere with Tenant's use of the Premises for the
purpose for which it was then being used.

     (b)  If this Lease is not terminated pursuant to Paragraph 19(a), then to
the extent of available insurance proceeds, Landlord shall proceed with all due
diligence to repair and restore the Building, improvements or Premises, as the
case may be (except that Landlord may elect not to rebuild if such damage occurs
during the last year of the term of this Lease exclusive of any option which is
unexercised at the date of such damage).

     (c)  If this Lease shall be terminated pursuant to this Paragraph 19, the
term of this Lease shall end on the date of such damage as if that date had been
originally fixed in this Lease for the expiration of the term hereof. If this
Lease shall not be terminated by Landlord pursuant to this Paragraph 19 and if
the Premises is untenantable in whole or in part following such damage, the rent
payable during the period in which the Premises is untenantable shall abate with
respect to the untenantable portion of the Premises from the date of the
casualty until the date of restoration. In the event that (a) Landlord shall
fail to complete such repairs and material restoration within one hundred fifty
(150) days after the date of such damage, or (b) Landlord notifies Tenant, after
Tenant's request, that such repairs and restoration cannot, in Landlord's
determination, be materially restored within one hundred fifty (150) days after
the date of such damage, Tenant may at its option and as its sole remedy
terminate this Lease by delivering written notice to Landlord, whereupon the
Lease shall end on the date of such notice as if the date of such notice were
the date originally fixed in this Lease for the expiration of the term hereof;
provided, however, that if construction is delayed because of changes,
deletions, or additions in construction requested by Tenant, strikes, lockouts,
casualties, acts of God, war, material or labor shortage, governmental
regulation or control or other causes beyond the reasonable control of Landlord,
the period for restoration, repair or rebuilding shall be extended for the
amount of time Landlord is so delayed.

     In no event shall Landlord be required to rebuild, repair or replace any
part of the partitions, fixtures, additions or other improvements which may have
been placed in or about the Premises by Tenant. Any insurance which may be
carried by Landlord or Tenant against loss or damage to the Building or Premises
shall be for the sole benefit of the party carrying such insurance and under its
sole control except that Landlord's insurance may be subject to control by (i)
the holder or holders of any indebtedness secured by a mortgage or deed to
secure debt covering any interest of Landlord in the Premises, the Building, or
the Property, and/or (ii) the ground lessor of any portion of the Property.

     (d)  Notwithstanding anything herein to the contrary, in the event the
holder of any indebtedness secured by a mortgage or deed to secure debt covering
the Premises, Building or Property, or the ground lessor of the Property,
requires that any insurance proceeds be paid to it, then Landlord shall have the
right to terminate this Lease by delivering written notice of termination to
Tenant within fifteen (15) days after such requirement is made by any such
person, whereupon the Lease shall end on the date of such damage as if the date
of such damage were the date originally fixed in this Lease for the expiration
of the term.

     (e)  In the event of any damage or destruction to the Building or the
Premises by any peril covered by the provisions of this Paragraph 19, Tenant
shall, upon notice from Landlord, remove forthwith, at its sole cost and
expense, such portion or all of the property belonging to Tenant or its
licensees from such portion or all of the Building or the Premises as Landlord
shall request and Tenant hereby indemnifies, defends and holds Landlord harmless
from any loss, liability, costs, and expenses, including attorneys' fees,
arising out of any claim of damage or injury as a result of such removal and any
alleged failure to properly secure the Premises prior to such removal.

20.  Condemnation.

     (a)  If any substantial part of the Premises should be taken for any public
or quasi-public use under governmental law, ordinance or regulation, or by
right of eminent domain, or by private purchase in lieu thereof, and the taking
would prevent or materially interfere with the use of the Premises for the
purpose for which it is then being used, this Lease shall terminate effective
when the physical taking shall occur in the same manner as if the date of such
taking were the date originally fixed in this Lease for the expiration of the
term hereof. As used herein, "substantial part" shall mean more than twenty
percent (20%).

     (b)  If part of the Premises shall be taken for any public or quasi-public
use under any governmental law, ordinance or regulation, or by right of eminent
domain, or by private purchase in lieu

                                      13
<PAGE>

thereof, and this Lease is not terminated as provided in the subparagraph above,
this Lease shall not terminate but the rent payable hereunder during the
unexpired portion of this Lease shall be reduced in proportion to the square
feet of the Premises taken and Landlord shall undertake to restore the Premises
to a condition suitable for Tenant's use, as near to the condition thereof
immediately prior to such taking as is reasonably feasible under all
circumstances.

     (c)  Tenant shall not share in any condemnation award or payment in lieu
thereof or in any award for damages resulting from any grade change of adjacent
streets, the same being hereby assigned to Landlord by Tenant; provided,
however, that Tenant may separately claim and receive from the condemning
authority, if legally payable, compensation for Tenant's removal and relocation
costs and for Tenant's loss of business and/or business interruption.

     (d)  Notwithstanding anything to the contrary contained in this paragraph,
if the temporary use or occupancy of any part of the Premises shall be taken or
appropriated under power of eminent domain during the term of this Lease, this
Lease shall be and remain unaffected by such taking or appropriation and Tenant
shall continue to pay in full all rent payable hereunder by Tenant during the
term of this Lease; in the event of any such temporary appropriation or taking,
Tenant shall be entitled to receive that portion of any award which represents
compensation for the use of or occupancy of the Premises during the term of this
Lease, and Landlord shall be entitled to receive that portion of any award which
represents the cost of restoration of the Premises and the use and occupancy of
the Premises after the end of the term of this Lease.

21.  Sale by Landlord.

     In the event of a sale or conveyance by Landlord of the building, the same
shall operate to release Landlord from any future liability upon any of the
covenants or conditions, express or implied, herein contained in favor of
Tenant, and in such event Tenant agrees to look solely to the responsibility of
the successor in interest of Landlord in and to this Lease. Tenant agrees to
attorn to the purchaser or assignee in any such sale.

22.  Right of Landlord to Perform.

     All covenants and agreements to be performed by Tenant under any of the
terms of this Lease shall be performed by Tenant at Tenant's sole cost and
expense and without any abatement of rent. If Tenant shall fail to perform any
acts, covenants or agreements to be performed by Tenant under any of the terms
of this Lease or to pay any sum of money, other than rent, required to be paid
by it hereunder, and such failure shall continue for (10) days after notice
thereof by Landlord, Landlord may, but shall not be obligated so to do, and
without waiving or releasing Tenant from any obligations of Tenant, make any
such payment or perform any such act, covenant or agreement on Tenant's part to
be made or performed as in this Lease provided. All sums so paid by Landlord or
costs related to Landlord's performance of such acts, covenants or agreements
and all necessary incidental costs, together with interest thereon at the Agreed
Interest Rate as defined in Paragraph 8 hereof from the date of such payment by
Landlord, shall be payable as additional rent to Landlord on demand, and Tenant
covenants to pay any such sums, and Landlord shall have, in addition to any
other right or remedy of the Landlord, the same rights and remedies in the event
of nonpayment thereof by Tenant as in the case of default by Tenant in the
payment of the rent.

23.  Surrender of Premises.

     (a)  At the end of the Lease Term or any renewal thereof or other sooner
termination of this Lease, the Tenant will peaceably deliver up to the Landlord
possession of the Premises, together with all improvements, alterations or
additions upon or belonging to the same, by whomsoever made, in the same
condition as received, or first installed, ordinary wear and tear, damage by
fire, earthquake, act of God, or the elements alone expected. Tenant shall, upon
the termination of this Lease, remove all movable furniture, equipment and
computer and telephone cables belonging to Tenant, at Tenant's sole cost, title
to which shall be in name of Tenant until such termination, repairing any damage
caused by such removal. Property not so removed shall be deemed abandoned by the
Tenant, and title to the same shall thereupon pass to Landlord. Unless otherwise
agreed to in writing by Landlord, Tenant shall remove, at Tenant's sole cost,
any or all permanent improvements or additions to the Premises installed by or
at the expenses of Tenant (provided, however, that Landlord made such removal a
condition of Landlord's consent at the time Tenant requested and Landlord
granted Landlord's prior written approval of same), and all movable furniture,
equipment and computer and telephone cables belonging to Tenant which may be
left by Tenant and repair any damage resulting from such removal.

     (b)  The voluntary or other surrender of this lease by Tenant, or a mutual
cancellation thereof, shall not work a merger, and shall, at the option of the
Landlord, terminate all or any existing subleases or subtenancies, or may, at
the option of Landlord, operate as an assignment to it or any or all such
subleases or subtenancies.

                                      14
<PAGE>

24.  Waiver.

     If either Landlord or Tenant waives the performance of any term, covenant
or condition contained in this Lease, such waiver shall not be deemed to be a
waiver of any subsequent breach of the same or any other term, covenant or
condition contained herein. Furthermore, the acceptance of rent by Landlord
shall not constitute a waiver of any preceding breach by Tenant of any term,
covenant or condition of this Lease, regardless of Landlord's knowledge of such
preceding breach at the time Landlord accepted such rent. Failure by Landlord to
enforce any of the terms, covenants or conditions of this Lease for any length
of time shall not be deemed to waive or to decrease the right of Landlord to
insist thereafter upon strict performance by Tenant. Waiver by Landlord of any
term, covenant or condition contained in this Lease may only be made by a
written document signed by Landlord.

25.  Notices.

     Whenever any notice, demand or request is required or permitted hereunder,
such notice, demand or request shall be hand-delivered in person, by reputable
courier service or sent by United States Mail, registered, postage prepaid, to
the addresses set forth below:

               If to Landlord:  Affiliated Equities Real Estate Limited
                                Partnership
                                c/o GMH Management, Inc.
                                River Ridge
                                9040 Roswell Road
                                Suite 310
                                Atlanta, Georgia 30350

               If to Tenant:    Accord Networks, Inc.
                                River Ridge
                                9040 Roswell Road
                                Suite 450
                                Atlanta, Georgia 30350

     Any notice, demand or request which shall be served upon either of the
parties in the manner aforesaid shall be deemed sufficiently given for all
purposes hereunder (i) at the time such notices, demands or requests are
hand-delivered in person or (ii) on the third day after the mailing of such
notices, demands or requests in accordance with the preceding portion of this
paragraph.

     Either Landlord or Tenant shall have the right from time to time to
designate by written notice to the other party such other places in the United
States as Landlord or Tenant may desire written notice to be delivered or sent
in accordance herewith; provided, however, at no time shall either party be
required to send more than an original and two copies of any such notice, demand
or request required or permitted hereunder.

26.  Certain Rights Reserved to the Landlord.

     Landlord reserves and may exercise the following rights without affecting
Tenant's obligations hereunder:

     (a)  To change the name of the Building;

     (b)  To designate all sources furnishing sign painting and lettering, ice,
drinking water, towels, coffee cart service and toilet supplies, lamps and bulbs
used in the Premises;

     (c)  To retain at all times pass keys to the Premises;

     (d)  To grant to anyone the exclusive right to conduct any particular
business or undertaking in the Building;

     (e)  To close the Building after regular working hours and on legal
holidays subject, however, to Tenant's right to admittance, under such
reasonable regulations as Landlord may prescribe from time to time, which may
include by way of example but not of limitation, that persons entering or
leaving the Building register and provide sufficient forms of identification to
a watchman and that said persons establish their right to enter or leave the
Building; and

     (f)  To take any and all measures, including inspections, repairs,
alterations, decorations, additions and improvements to the Premises or the
Building, and identification and admittance procedures for access to the
Building as may be necessary or desirable for the safety, protection,
preservation or security of the Premises or the Building or Landlord's interest,
or as may be necessary or desirable in the operation of the Building.

     Landlord may enter upon the Premises and may exercise any or all of the
foregoing rights hereby reserved without being deemed guilty of an eviction or
disturbance of Tenant's use or possession and

                                      15

<PAGE>

without being liable in any manner to Tenant and without abatement of rent or
affecting any of Tenant's obligations hereunder.

27.  Successors and Assigns.

     Subject to the provisions of Paragraph 9 hereof, the terms, covenants, and
conditions contained herein shall be binding upon and inure to the benefit of
the heirs, successors, executors, administrators and assigns of the parties
hereto.

28.  Attorney's.

     In the event that any action or proceeding is brought to enforce any term,
covenant or condition of this Lease on the Part of Landlord or Tenant, the
prevailing party in such litigation shall be entitled to reasonable attorneys'
fees to be fixed by the Court in such action or proceeding.

29.  Authority.

     If Tenant signs a corporation, partnership, limited liability company or
limited liability partnership, each of the persons executing this Lease on
behalf of Tenant does hereby covenant and warrant that Tenant is a duly
authorized and existing entity, that Tenant has and is qualified to do business
in Georgia, that Tenant has full right and authority to enter into this Lease,
and that each both of the persons signing on behalf of Tenant were authorized to
do so. Upon Landlord's request, Tenant shall provide Landlord with evidence
reasonably satisfactory to Landlord confirming the foregoing covenants and
warranties.

30.  Mortgage Approvals.

     Any provisions of this Lease requiring the approval or consent of Landlord
shall not be deemed to have been unreasonably withheld if any mortgagee (which
shall include the holder of any deed to secure debt) of the Premises, Building
or Property or any portion thereof shall refuse or withhold its approval or
consent thereto. Any requirement of Landlord pursuant to this Lease which is
imposed pursuant to the direction of any such mortgagee shall be deemed to have
been reasonably imposed by Landlord if made in good faith.

31.  Miscellaneous.

     (a)  The paragraph headings herein are for convenience of reference and
shall in no way define, increase, limit, or describe the scope or intent of any
provision of this Lease. The term "Landlord" as used in this Lease shall include
the Landlord, its successors and assigns. In any case where this Lease is signed
by more than one person, the obligations hereunder shall be joint and several.
The term "Tenant" or any pronoun used in place thereof shall indicate and
include the masculine or feminine, the singular or plural number, individuals,
firms or corporations, and their and each of their respective successors,
executors, administrators, and permitted assigns, according to the context
hereof.

     (b)  Time is of the essence of this Lease and all of its provisions. This
Lease shall in all respects be governed by the laws of the State of Georgia.
This Lease, together with its exhibits, contains all the agreements of the
parties hereto and supersedes any previous negotiations. There have been no
representations made by the Landlord or understandings made between the parties
other than those set forth in this Lease and its exhibits. This Lease may not be
modified except by a written instrument by the parties hereto.

     (c)  All obligations of Tenant hereunder not fully performed as of the
expiration or earlier termination of the term at this Lease shall survive the
expiration or earlier termination of the term hereof.

     (d)  If any clause, phrase, provision or portion of this Lease or the
application thereof to any person or circumstance shall be invalid or
unenforceable under applicable law, such event shall not effect, impair or
render invalid or unenforceable the remainder of this Lease or any other clause,
phrase, provision or portion hereof, nor shall it affect the application of any
clause, phrase, provision or portion hereof to other persons or circumstances,
and it is also the intention of the parties to this Lease that in lieu of each
such clause, phrase, provision or portion of this Lease that is invalid or
unenforceable, there be added as a part of this Lease a clause, phrase,
provision or portion as similar in terms to such invalid or unenforceable
clause, phrase, provision or portion as may be possible and be valid and
enforceable.

     (e)  Whenever a period of time is herein prescribed for action to be taken
by Landlord, the Landlord shall not be liable or responsible for, and there
shall be excluded from the computation for any such period of time, any delays
due to Force Majeure Matters.

32.  Landlord's Lien.

     [INTENTIONALLY OMITTED]

                                      16

<PAGE>

33.  Quiet Enjoyment.

     Landlord represents and warrants that it has full right and authority to
enter into this Lease and that Tenant, while paying the rental and performing
its other covenants and agreements herein set forth, shall peaceably and quietly
have, hold and enjoy the Premises for the term hereof without hindrance or
molestation from Landlord subject to the terms and provisions of this Lease. In
the event this Lease is a sublease, then Tenant agrees to take the Premises
subject to the provisions of the prior leases. Landlord shall not be liable for
any interference, nuisance or disturbance by other tenants or third persons, nor
shall Tenant be released from any of the obligations of this Lease because of
such interference, nuisance or disturbance.

34.  Landlord's Liability.

     In no event shall Landlord's liability for any breach of this Lease exceed
the amount of rental then remaining unpaid for the then current term (exclusive
of any renewal periods which have not then actually commenced). This provision
is not intended to be a measure or agreed amount of Landlord's liability with
respect to any particular breach, and shall not be utilized by any court or
otherwise for the purpose of determining any liability of Landlord hereunder,
except only as a maximum amount not to be exceeded in any event. Furthermore,
any liability of Landlord hereunder shall be enforceable only out of the
interest of Landlord in the Building and the Property and in no event out of the
separate assets of Landlord or any shareholder or partner of Landlord.

35.  Right to Relocate.

     Landlord reserves the right to relocate Tenant during the term of this
Lease or any renewal hereof, to similar quality office space within the
Building; provided, however, that in any such relocation, Landlord shall be
required to also relocate Tenant from any other space on the fourth floor of the
Building occupied by Tenant, so that the Premises and such other space continue
to be continguous. If Landlord exercise this right to relocate Tenant, then any
and all costs incident to said relocation shall be the responsibility of the
Landlord; said costs to be determined prior to the relocation of Tenant.

36.  No Estate.

     This contract shall create the relationship of Landlord and Tenant, and no
estate shall pass out of Landlord. Tenant has only a usufruct, not subject to
levy and sale and not assignable by Tenant, except as provided for herein and in
compliance herewith.

37.  Lease Effective Date.

     Submission of this instrument for examination or signature by Tenant does
not constitute a reservation of or option for lease, and is not effective as a
lease or otherwise until execution and delivery by both Landlord and Tenant.

38.  Rules and Regulations.

     (a)  Tenant shall faithfully observe and comply with the rules and
regulations printed on or annexed to this Lease as Exhibit "E" which is attached
                                                   -----------
hereto and made a part hereof and all reasonable modifications thereof and
additions thereto from time to time put into effect by Landlord. Landlord shall
supply Tenant with any changes or amendments to said rules. Landlord shall not
be responsible for the nonperformance by any other tenant or occupant of the
Building of any said rules and regulations. Tenant will be responsible for
causing its employees, customers, subtenants, licensees, invitees, agents,
concessionaires and contractors to comply with all such rules and regulations.
Landlord shall not enforce such rules and regulations in a discriminatory
manner.

     (b)  Tenant acknowledges and agrees that Landlord may insist upon
compliance with and enforce the rules and regulations as well as any laws,
statues, ordinances or governmental rules or regulations as mentioned in
Paragraph 5 above, and may, pursuant to the Georgia Criminal Trespass Statue
(Official Code of Georgia Annotated, Section 16-7-21), prohibit any person
including any of Tenant's employees, agents, customers, licensees, guests,
invitees, concessionaires, or contractors from entering or remaining upon all or
any portion of the Building, including the Premises, or any other portion of the
Project, if Landlord determines in its sole discretion that said person has not
complied with any law, ordinance, rule or regulation or poses a threat to the
safety, welfare or health of any person or to the maintenance or orderliness of
the administration of the Building. Tenant further agrees that it shall not
interfere with or object to Landlord's enforcement of any such laws, ordinances,
rules and regulations including Official Code of Georgia Annotated, Section
16-7-21 or any similar statue.

39.  Special Stipulations.

     Special Stipulations to this Lease are set forth on Exhibit "F" attached
                                                         -----------
hereto and made a part hereof. In the event of any conflict between any
provision set forth set forth in Exhibit "F" and any provision contained
                                 -----------
elsewhere in this Lease, the former in all events shall supersede, prevail and
control.

                                      17

<PAGE>

40.  Guaranty.

     [INTENTIONALLY OMITTED]

41.  Brokerage Commissions.

     Tenant represents that Tenant has not engaged or worked with any real
estate brokers or agents other than The Wesley Company and ICON Commercial
Interests (collectively, "Broker") in connection with this Lease for the
Premises. Tenant shall indemnify and hold harmless Landlord and Landlord's
agents from and against any and all claims for commissions or other
compensation, and any liabilities, damages and costs relating thereto, that may
be asserted by any person or entity other than Broker to the extent that Tenant
has engaged such person or such claim results from any action of Tenant.

IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year
first above written.

                              LANDLORD:

                              AFFILIATED EQUITITES REAL ESTATE
                              LIMITED PARTNERSHIP,  a Delaware limited
                              partnership

                              By:  GH Equities, Inc., a Delaware corporation,
                                   its General Partner

                                   By:  /s/ Michael J. Maher
                                        -------------------------------------
                                        Name: Michael J. Maher
                                              -------------------------------
                                        Title: ASST SEC.
                                               ------------------------------

                              TENANT:

                              ACCORD NETWORKS, INC., a Georgia
                              corporation

                              By:  /s/ Jules DeVigne
                                   -------------------------------------
                                   Name: Jules DeVigne
                                         -------------------------------
                                   Title: CEO
                                          ------------------------------

                              By:  /s/ Adam Vexler
                                   -------------------------------------
                                   Name: Adam Vexler
                                         -------------------------------
                                   Title: Corporate Counsel
                                          ------------------------------

                                          (CORPORATE SEAL)
<PAGE>

                                  EXHIBIT "A"
                                  ----------

   [Floor plan of leased premises in Suites 430 and 45O, River Ridge office
         building, 9040 Roswell Road, Atlanta, Georgia appears here.]

<PAGE>

                                  EXHIBIT "B"

                               LEGAL DESCRIPTION
                               -----------------

All that tract, or parcel, of land in land lots 367, 368, 371, and 372, sixth
district, Fulton County, Georgia being more particularly described as follows:

Beginning at the corner common to land lots 367, 368, 371, and 372, proceed in
an easterly direction along the southern boundary lines of L.L. 372 plus or
minus 417.0 feet to a point. Said point on the western right of way of U.S.
Highway 19 (Roswell Road) being the true of beginning.

Thence from said point of beginning S 02 degrees 20 feet 28 inches W, 516.95
feet to a point; Thence N 86 degrees 17 feet 25 inches W, 15.00 feet to a point;
thence S 04 degrees 38 feet 38 inches W, 351.98 feet to a point; thence S 84
degrees 29 feet 19 inches E, 15.00 feet to a point; thence S 05 degrees 40 feet
27 inches W, 38.50 feet to a point; thence S 05 degrees 40 feet 27 inches W,
254.86 feet to a point; thence N 72 degrees 07 feet 57 inches W 222.72 feet to a
point; thence N 53 degrees 48 feet 02 inches W, 599.45 feet to a point; thence N
42 degrees 38 feet 02 inches W, 188.30 feet to a point; thence N 02 degrees 18
feet 02 inches W, 671.72 feet to a point; thence N 79 degrees 28 feet 17 inches
E, 258.92 feet to a point; thence N 70 degrees 03 feet 05 inches E, 490.35 feet
to a point; thence N 87 degrees 41 feet 44 inches E, 220.01 feet to a point;
thence S 01 degrees 15 feet 07 inches W, 295.85 feet to a point, said point
being the true point of beginning. That tract thus described consists of 23.07
Acres.

<PAGE>

                                  EXHIBIT "C"

                             WORK LETTER AGREEMENT
                             ---------------------

1.  IMPROVEMENTS

     Landlord shall furnish and install substantially in accordance with the
plans and specifications approved by Landlord and Tenant as hereinafter
provided, partitions, doors, lighting fixtures, acoustical ceiling floor
coverings, electrical outlets, telephone outlets, air conditioning, fire
sprinklers, life safety devices, signage, wall finishes, and construction clean
up. Landlord shall cause to be prepared all architectural plans and
specifications and other structural, mechanical and electrical engineering plans
and specifications (the "Plans"), as it deems necessary to accomplish the work
described in this paragraph and which is normally performed by the construction
trades. The cost of such improvements and Plans shall be borne as provided
below.

2.  IMPROVEMENT COSTS TO BE PAID BY LANDLORD

     Landlord shall provide to Tenant a "Tenant Allowance" to undertake all or
part of the improvements which Tenant desires to have made to the Premises. The
Tenant Allowance shall be the actual cost of said improvements to a limit of
(not to exceed) Five Thousand and No/100 Dollars ($5,000.00).

3.  IMPROVEMENTS COSTS TO BE PAID BY TENANT

     Any improvement costs in excess of the Tenant Allowance provided by
Landlord in Paragraph 2 above, including but not limited to design fees,
architectural and engineering fees, construction costs, permit fees, changes in
the work due to unforeseen conditions, or changes directed by any governmental
officials or authorities, shall be paid by Tenant to Landlord ("Tenant's
Share"), one half (1/2) upon commencement of the construction and one half (1/2)
upon completion of the construction. Landlord agrees to disburse the Tenant
Allowance and the Tenant's Share (to the extent deposited by Tenant with
Landlord) to pay the improvement costs as and when the same become due and
payable. Landlord shall be entitled to rely on the accuracy of any and all
invoices and fee statements for labor and materials performed on or furnished to
the Premises in connection with the tenant improvement and rely, to the extent
submitted, on any and all certifications as to tenant improvement costs
submitted by Landlord's contractor and/or Landlord's architect. Tenant does
hereby release Landlord from any claims which may result from Landlord's paying
an inaccurate invoice, fee statement or the like, provided that such payment is
made in good faith and in reliance upon fee statements received by Landlord with
respect to the improvements. Should Tenant request any modifications to the work
which has already been completed under this agreement, Tenant shall pay one half
(1/2) upon commencement of the modifications and one half (1/2) upon completion
of the modifications. Any delay in Landlord's delivery of possession of the
Premises to Tenant as a result of any changes by Tenant to the Plans agreed upon
pursuant to paragraph 4 below shall not serve to extend the Commencement Date of
the Lease or relieve Tenant of any obligations under the Lease (including the
obligation to pay rent beginning on the Commencement Date). Failure by Tenant to
pay its share of the improvement costs hereunder will constitute an event of
default by Tenant under the Lease, and Landlord shall have all of the remedies
available to it under the Lease and at law or in equity.

4.  PLANNING SCHEDULE AND APPROVAL OF COST

     (a)  Landlord and Tenant shall diligently pursue the preparation of the
          plans and specifications (the "Plans"). Tenant, at its expense, shall
          provide Landlord or Landlord's architect with instructions sufficient
          for preparation of the Plans no later than January 14, 2000. Failure
          of Tenant to provide said instructions by the date specified above
          shall not serve to extend the Commencement Date of the Lease.

     (b)  After receipt of Tenant's instructions, Landlord shall cause the Plans
          to be prepared in conformance with Landlord's requirements and all
          applicable codes, ordinances and laws. The Plans shall specify
          materials and details of equal or better quality to Landlord's
          building standard. The Plans shall be subject to the approval of
          Landlord and any governmental officials or authorities having
          jurisdiction. Landlord shall submit said Plans to Tenant for approval
          within ten (10) business days after receiving all required information
          from Tenant, and Tenant shall have five (5) calendar days after
          Tenant's receipt of the Plans to resubmit said Plans to Landlord with
          Tenant's approval or comments. Failure of Tenant to respond to the
          Plans within five (5) calendar days of receipt shall not serve to
          extend the Commencement Date of the Lease.

     (c)  After the Plans are approved by Landlord and Tenant, Landlord shall
          obtain from Landlord's contractor a price quotation for the tenant
          improvements, and shall submit the same to Tenant for approval. Upon
          written approval of such price by Tenant, Landlord and Tenant shall be
          deemed to have given final approval to the Plans on the basis of which
          the quotation was made, and Landlord shall be authorized to proceed
          with the improvements of the Premises in accordance with such Plans.
          If Tenant disapproves such price, or fails to approve or disapprove
          such price within five (5) calendar days after submission thereof by
          Landlord, Landlord shall not be obligated to proceed with any

<PAGE>

          improvement of the Premises until such time as Landlord and Tenant
          approve a price for Tenant's work.

     (d)  Tenant shall bear the cost of any changes in the work requested by
          Tenant after final approval of Plans under Paragraph 4(c) above.

5.   FORCE MAJEURE

     Landlord and Tenant agree that Landlord may be delayed in the completion of
construction of improvements to the Premises due to acts of God, civil strife,
riots, strike, governmental action (not caused by Tenant or Landlord) shortages
of equipment or supplies, or other matters beyond the reasonable control of
Landlord (a "Force Majeure Matter"), and Landlord shall not be in default
hereunder or liable to Tenant in the event of a delay in the completion of
improvements to the Premises due to a Force Majeure matter.

6.   TENANT'S WORK

     All work within the scope of the normal construction trades employed in the
Building, including, but not limited to, furnishing and installing of telephones
cable, data equipment and cable, furniture, and office equipment, shall be
furnished and installed by Tenant at Tenant's expense. Tenant shall adopt a work
schedule in conformance with the schedule of Landlord's contractors and conduct
its work in such a manner as to maintain harmonious labor relations and as not
to interfere unreasonably with or delay the work of Landlord's contractors.
Tenant's contractors, subcontractors, and labor shall be acceptable to and
approved by Landlord and shall be subject to the administrative supervision of
the Landlord as it may require to maintain building standard quality or
construction schedule. Tenant shall use its best efforts to ensure that Tenant's
contractors, subcontractors, and laborers follow the administrative supervision
of Landlord and conform in all ways to the Landlord's Rules and Regulations. If
Tenant's contractors fail to conform to Landlord's administrative supervision or
Landlord's Rules and Regulations and in doing so damage the Premises or the
common areas of the building, Tenant shall be responsible for the cost to repair
such damage. Landlord shall give access and entry to the Premises to Tenant and
its contractors and reasonable opportunity and time and reasonable use of
facilities to enable Tenant to adapt the Premises for Tenant's use; provided,
however, that if such entry is prior to the Commencement Date, such entry shall
be subject to all terms and conditions of the Lease except the payment of rent.

<PAGE>

                                  EXHIBIT "D"

                       TENANT LEASE ESTOPPEL CERTIFICATE
                       ---------------------------------

Landlord:   Affiliated Equities Real Estate Limited Partnership
--------

Tenant:
------      _____________________________________________

Premises:
--------    _____________________________________________

Area:
----        _________________________Sq.Ft.                   Lease Date:_______

     The undersigned Tenant under the above-referenced lease (the "Lease")
hereby ratifies the Lease and certifies to Affiliated Equities Real Estate
Limited Partnership ("Landlord") as owner of the real property of which the
premises demised under the Lease (the "Premises") is a part, as follows:

     1.   That the term of the Lease commenced on _________, 20__ and the Tenant
is in full and complete possession of the Premises demised under the Lease and
has commenced full occupancy and use of the Premises, such possession having
been delivered by Landlord and having been accepted by the Tenant.

     2.   That the Lease calls for monthly rent installments of $___________ to
date and that the Tenant is paying monthly installments of rent of $___________
which commenced to accrue on the _____ day of _________, 20__.

     3.   That no advance rental or other payment has been made in connection
with the Lease, except rental for the current month. There is no "free rent" or
other concession under the remaining term of the Lease, and the rent has been
paid to and including ______________, 20__.

     4.   That a security deposit in the amount of $____________ is being held
by Landlord, which amount is not subject to any set off or reduction or to any
increase for interest or other credit due to Tenant.

     5.   That all obligations and conditions under said Lease to be performed
to date by Landlord or Tenant have been satisfied, free of defenses and set-offs
including all construction work in the Premises.

     6.   That the Lease is a valid lease and in full force and effect and
represents the entire agreement between the parties; that there is no existing
default on the part of Landlord or the Tenant in any of the terms and conditions
thereof and no event has occurred which, with the passing of time or giving of
notice or both, would constitute an event of default; and that said Lease has:
(Initial One)

          (      )       not been amended, modified, supplemented, extended,
                         renewed or assigned.

          (      )       been amended, modified, supplemented, extended, renewed
                         or assigned as follows by the following described
                         agreements:

                         ________________________________________________

                         ________________________________________________

                         ________________________________________________

                         ________________________________________________

     7.   That the Lease provides for a primary term of ______ months; the term
of the Lease expires on the ____ day of ____________, 20__; and that: (Initial
One)

          (      )       neither the Lease nor any of the documents listed in
                         Paragraph 6 (if any), contain an option for any
                         additional term or terms.

          (      )       the Lease and/or the documents listed under Paragraph
                         6, above, contain an option for _____________
                         additional term(s) of _______ year(s) and _____________
                         month(s) (each) at a rent to be determined as follows:

                         ________________________________________________

                         ________________________________________________

                         ________________________________________________

     8.   That Landlord has not rebated, reduced or waived any amounts due from
Tenant under the Lease, either orally or in writing, nor has Landlord provided
financing for, made loans or advances to, or invested in the business of Tenant.

     9.   That, to the best of Tenant's knowledge, there is no apparent or
likely contamination of the real property or the Premises by hazardous
materials, and Tenant does not use, nor has Tenant disposed of, hazardous
materials in violation of environmental laws on the real property or the
Premises.
<PAGE>

     10.  That there are no actions, voluntary or involuntary, pending against
the Tenant under the bankruptcy laws of the United States or any state thereof.

     11.  That this certification is made knowing that Landlord is relying upon
the representations herein made.

                                             Tenant:

                                             ___________________________________

Dated: ____________________                  By:  ______________________________
                                                  Typed Name:___________________
                                                  Title:________________________

<PAGE>

                                  EXHIBIT "E"

                             RULES AND REGULATIONS
                             ---------------------

1.   Sidewalks, halls, passages, exits, entrances, elevators, escalators and
     stairways shall not be obstructed by Tenants or used by them for any
     purpose other than for ingress and egress from their respective Premises.
     The halls, passages, exits, entrances, elevators, and stairways are not for
     the use of the general public and Landlord shall in all cases retain the
     right to control and prevent access thereto by all persons whose presence,
     in the judgment of Landlord, shall be prejudicial to the safety, character,
     reputation and interests of the Building and its Tenants, provided that
     nothing herein contained shall be construed to prevent such access to
     persons with whom any Tenant normally deals in the ordinary course of such
     Tenant's business unless such persons are engaged in illegal activities. No
     Tenant, and no employees or invitees of any Tenant, shall go upon the roof
     of the Building, except as authorized by the Landlord.

2.   No sign, placard, picture, name, advertisement, notice or other such item
     visible from the exterior of Premises shall be inscribed, painted,
     illuminated, affixed, installed or otherwise displayed by any Tenant either
     on its Premises or any part of the Building without the prior written
     consent of Landlord, and Landlord shall have the right to remove any such
     sign, placard, picture, name, advertisement, notice or other such item
     without notice to and at the expense of Tenant. All approved signs or
     lettering on doors and walls shall be printed, painted, affixed and
     inscribed at the expense of the Tenant by a person approved by Landlord.

3.   The directory of the Building will be provided exclusively for the display
     of the name and location of Tenants only.

4.   No curtains, draperies, blinds, shutters, shades, screens or other
     coverings, awnings, hangings or decorations shall be attached to, hung or
     placed in, or used in connection with, any window or door on any Premises
     without the prior written consent of Landlord. In any event with the prior
     written consent of Landlord, all such items shall be installed inboard of
     Landlord's standard window covering and shall in no way be visible from the
     exterior of the Building. No articles shall be placed or kept on the window
     sills so as to be visible from the exterior of the Building. No articles
     shall be placed or kept on the window sills so as to be visible from the
     exterior of the Building. No articles shall be placed against glass
     partitions or doors which might appear unsightly from outside Tenant's
     Premises.

5.   Landlord reserves the right to exclude from the Building between the hours
     of 6 pm and 8 am on Monday through Friday and at all hours on Saturdays,
     Sundays, and holidays all persons who are not Tenants or their accompanied
     guests in the Building. Each Tenant shall be responsible for all persons
     for whom it allows to enter the Building and shall be liable to Landlord
     for all acts of such persons.

     Landlord shall in no case be liable for damages for error with regard to
     the admission to or exclusion from the Building of any person.

     During the continuance of any invasion, mob, riot, public excitement or
     other circumstances rendering such action advisable in Landlord's opinion,
     Landlord reserves the right to prevent access to the Building by closing
     and/or locking the doors, or otherwise, for the safety of Tenants and
     protection of the Building and property in the Building.

6.   No Tenant shall employ any person or persons for the purpose of cleaning
     Premises unless otherwise agreed to by Landlord in writing. Except with the
     written consent of Landlord no person or persons other than those approved
     by Landlord shall be permitted to enter the Building for the purpose of
     cleaning same. No Tenant shall cause any unnecessary labor by reason of
     such Tenant's carelessness or indifference in the preservation of good
     order and cleanliness of the Premises. Landlord shall in no way be
     responsible to any tenant for any loss of property on the Premises,
     however occurring, or for any damage done to the effects of any Tenant by
     the janitor or any other employee or any other person.

7.   No Tenant shall obtain or maintain for use upon its Premises or the
     Building coin-operated or other vending machines in its Premises or in the
     Building except from persons authorized by Landlord.

8.   Each Tenant shall see that all doors of its Premises are closed and
     securely locked and must observe strict care and caution that all water
     faucets, water apparatus, coffee makers and any other electrical appliances
     or equipment are entirely shut off before the Tenant or its employees leave
     such Premises, and that all utilities shall likewise be carefully shut off
     so as to prevent waste or damage, and for any default or carelessness the
     Tenant shall make good all injuries sustained by other Tenants or occupants
     of the Building of Landlord. On multiple tenancy floors, all Tenants shall
     keep the door or doors to the Building corridors closed at all times except
     for ingress and egress.

9.   As more specifically provided in the Tenant's Lease of the Premises, Tenant
     shall not waste electricity, water or air-conditioning and agrees to
     cooperate fully with Landlord to assure the most effective operation of the
     Building's heating and air-conditioning, and shall refrain from attempting
     to adjust any controls.

<PAGE>

10.  No Tenant shall alter any lock or access device or install a new or
     additional lock or access device or any bolt on any door of its Premises
     without the prior written consent of Landlord. If Landlord shall give its
     consent, Tenant shall in each case furnish Landlord with a key for any such
     lock.

11.  The toilet rooms, toilets, urinals, wash bowls and other apparatus shall
     not be used for any purpose other than that for which they were constructed
     and no foreign substance of any kind whatsoever, including, but not limited
     to, coffee grounds shall be thrown therein, and the expense of any
     breakage, stoppage or damage resulting from the violation of this rule
     shall be borne by the Tenant, who, or whose employees or invitees, shall
     have caused it.

12.  No Tenant shall use or keep in its Premises or the Building any keorsene,
     gasoline or inflammable or combustible fluid or material other than limited
     quantities necessary for the operation or maintenance of office equipment.
     No tenant shall use any method of heating or air-conditioning other than
     that supplied by Landlord. In the event flammable or combustible fluids or
     materials are permitted by Landlord in the Premises, these materials must
     be maintained and secured so as to comply with all laws, rules and
     regulations governing such materials, including but not limited to, all
     fire codes.

13.  No Tenant shall use, keep or permit to be used or kept in its Premises any
     foul or noxious gas or substance or permit or suffer such Premises to be
     occupied or used in a manner offensive or objectionable to Landlord or
     other occupants of the Building by reason of noise, orders and/or
     vibrations or interfere in any way with other Tenants or those having
     business therein, nor shall any animals or birds be brought or kept in or
     about any Premises of the Building.

14.  No cooking shall be done or permitted by any Tenant on its Premises without
     the consent of Landlord (except that use by the Tenant of Underwriters'
     Laboratory approved microwave ovens and equipment for the preparation of
     coffee, tee, hot chocolate and similar beverages for Tenants and their
     employees shall be permitted, provided that such equipment and use is in
     accordance with applicable federal, state and city laws, codes, ordinances,
     rules and regulations) nor shall Premises be used for lodging.

15.  If Tenant requires telegraphic, telephonic, burglar alarm or similar
     services, it shall first obtain, and comply with, Landlord's instructions
     in their installation.

16.  Landlord will direct electricians as to where and how telephone, telegraph
     and electrical wires are to be introduced or installed. No boring or
     cutting for wires will be allowed without the prior written consent of
     Landlord. The location of burglar alarms, telephones, call boxes or other
     office equipment affixed to all Premises shall be subject to the written
     approval of Landlord. In no event shall Tenant install or modify any wires,
     equipment or other facilities in telephone or electrical rooms or in other
     areas outside of the Premises without the prior written approval of
     Landlord.

17.  No Tenant shall install any radio or television antenna, loudspeaker or any
     other device on the exterior walls or the roof of the Building. Tenant
     shall not interfere with radio or television broadcasting or reception from
     or in the Building or elsewhere.

18.  No furniture, freight, equipment, material, supplies, packages, merchandise
     or other property will be received in the Building or carried up or down
     the elevators except between such hours and in such elevators as shall be
     designated by Landlord. In the event Landlord permits use of the Building's
     loading dock and/or elevators after normal Building hours, then Landlord
     shall have the right to impose reasonable charges on Tenant for such use.
     Landlord shall have the right to prescribe the weight, size and position of
     all safes, furniture, files, bookcases or other heavy equipment brought
     into the Building. Safes or other heavy objects shall, if considered
     necessary by Landlord, stand on wood strips of such thickness as determined
     by Landlord to be necessary to properly distribute the weight thereof.
     Landlord will not be responsible for loss of or damage to any such safe,
     equipment or property from any cause, and all damage done to the Building
     by moving or maintaining any such safe, equipment or other property shall
     be repaired at the expense of Tenant.

     Business machines and mechanical equipment belonging to Tenant which cause
     noise or vibration that may be transmitted to the structure of the
     Building or to any space therein to such a degree as to be objectionable to
     Landlord or to any tenants in the Building shall be placed and maintained
     by Tenant, at Tenant's expense, on vibration eliminators or other devices
     sufficient to eliminate noise or vibration. The persons employed to move
     such equipment in or out of the Building must be acceptable to Landlord.

19.  No Tenant shall place a load upon any floor of the Premises which exceeds
     the load per square foot which such floor was designed to carry and which
     is allowed by law.

20.  There shall not be used in any space, or in the public areas of the
     Building, either by Tenant or others, any hand trucks except those equipped
     with rubber tires and side guards or such other material-handling equipment
     as Landlord may approve. No other vehicles of any kind shall be brought by
     any Tenant into or kept in or about the Premises.

<PAGE>

21.  Each Tenant shall store all its trash and garbage within the interior of
     its Premises. No materials shall be placed in the trash boxes or
     receptacles if such material is of such nature that it may not be disposed
     of in the ordinary and customary manner of removing and disposing of trash
     and garbage in this area without violation of any law or ordinance
     governing such disposal. All trash, garbage and refuse disposal shall be
     made only through entryways and elevators provided for such purposes and at
     such times as Landlord may designate. Tenant shall comply with all
     recycling programs or requirements imposed by applicable governmental
     entities or reasonably imposed by Landlord.

22.  Canvassing, soliciting, distributing of handbills or any other written
     material, and peddling in the Building are prohibited and each tenant shall
     cooperate to prevent the same. No Tenant shall make room-to-room
     solicitation of business from other tenants in the Building.

23.  Landlord reserves the right to exclude or expel from the Building any
     person who, in Landlord's judgment, is intoxicated or under the influence
     of alcohol or drugs or who is in violation of any of the rules and
     regulations of the Building.

24.  Without the prior written consent of Landlord, Tenant shall not use the
     name of the Building in connection with or in promoting or advertising the
     business of Tenant except a Tenant's address.

25.  Tenant shall comply with all energy conservation, safety, fire protection
     and evacuation procedures and regulations established by Landlord or any
     governmental agency.

26.  Tenant assumes any and all responsibility for protecting its Premises from
     theft, robbery and pilferage, which includes keeping doors locked and other
     means of entry to the Premises closed.

27.  The requirements of Tenants will be attended to only upon application at
     the office of the Building by an authorized individual. Employees of
     Landlord shall not perform any work or do anything outside of their regular
     duties unless given special instructions from Landlord, and no employees
     will admit any person (Tenant or otherwise) to any office without specific
     instructions from Landlord.

28.  Landlord may waive any one or more of these Rules and Regulations for the
     benefit of any particular Tenant or Tenants, but no such waiver by Landlord
     shall be construed as a waiver of such Rules and Regulations in favor of
     any other Tenant or Tenants, nor prevent Landlord from thereafter enforcing
     any such Rules and Regulations against any or all Tenants of the Building.

29.  Landlord reserves the right to make such other and reasonable rules and
     regulations as in its judgment may from time to time be needed for safety
     and security, for care and cleanliness of the Building and for the
     preservation of good order therein. Tenant agrees to abide by all such
     Rules and Regulations hereinabove stated and any additional rules and
     regulations which are adopted.

30.  Tenant shall provide and maintain hard surface protective mats under all
     desk chairs which are equipped with casters to avoid excessive wear and
     tear to carpeting. If Tenant fails to provide such mats, the cost of carpet
     repair or replacement made necessary by such excessive wear and tear shall
     be charged to and paid for by Tenant.

31.  All work proposed by Tenant in the Premises must be pre-approved by
     Landlord. Tenant will refer all contractors, contractors representatives
     and installation technicians, rendering any service to Tenant, to Landlord
     for Landlord's supervision, approval, and control before performance of any
     contractual service. This provision shall apply to all work performed in
     the Premises and other portions of the Building, including installations of
     telephones, telegraph equipment, electrical devices and attachments and
     installations of any nature affecting floors, walls woodwork, trim,
     windows, ceilings, equipment or any other physical portion of the Building.

32.  Tenant shall give prompt notice to Landlord of any accidents to or defects
     in plumbing, electrical fixtures, or heating apparatus so that such
     accidents or defects may be attended to properly.

33.  Tenant shall be responsible for the observance of all of the foregoing
     Rules and Regulations by Tenant's employees, agents, clients, customers,
     invitees and guests.

34.  These Rules and Regulations are in addition to, and shall not be construed
     to in any way modify, alter or amend, in whole or in part, the terms,
     covenants, agreements and conditions of any Lease of Premises in the
     Building.

35.  Smoking of tobacco products (including, but not limited to, cigarettes,
     cigars, pipes or similar utensils) is expressly prohibited in the lobby,
     hallways, elevators, building entrances, restrooms, stairwells and common
     areas in and around the Building. Tenant shall not permit any of its
     employees, agents, servants, licensees, contractors or invitees to smoke in
     those areas specified in the immediately preceding sentence. Tenant further
     agrees either (i) to prohibit smoking within the Premises, or (ii) if
     smoking is permitted by Tenant within the Premises, to take, at Tenant's
     sole expense, such steps (which steps may included, but not by limited to,
     installing exhaust equipment to supplement the Building's heating,
     ventilation and air conditioning system) as shall be required by Landlord
     to avoid any infiltration of smoke from the Premises into the space of
     other tenants or the common areas in the Building. Tenant further agrees
     that if Tenant shall have

<PAGE>

taken steps to reduce or eliminate infiltration of smoke into the space of other
tenants, and, notwithstanding these steps, smoke from the Premises continues to
be a nuisance to other tenants in the Building, then Landlord shall have the
right to prohibit smoking in the Premises altogether. Tenant acknowledges and
agrees that (a) Landlord has the right under this paragraph to restrict and/or
prohibit smoking in the Premises, (b) smoking in the Premises is not an absolute
or inherent right of Tenant and (c) Landlord's determination that smoking in the
Premises must be abated shall be final. To enable smokers to have an area
outside of the Building in which to smoke, the Landlord shall designate from
time to time specific areas where smoking is permitted, to the extent permitted
by applicable laws and regulations. Smokers are required to keep all designated
smoking areas clean, attractive and free of litter. In order to comply with
present or future laws, regulations or guidelines of governmental entities
relation to workplace health and safety, Landlord retains the right to further
alter, move or eliminate such smoking areas from time to time and to establish
regulations relating thereto as Landlord reasonably deems necessary or
appropriate.
<PAGE>

                                  EXHIBIT "F"

                             SPECIAL STIPULATIONS
                             --------------------

     1.   Right of First Offer.  For so long as Tenant has at least twelve (12)
months remaining on its primary Lease Term, and provided Tenant is not in
default under this Lease, at such time as Landlord desires to lease any or all
of the remaining space on the fourth (4th) floor of the Building or any space on
the second (2nd) floor of the Building, Landlord shall notify Tenant that
Landlord intends to lease such space and shall outline the market terms upon
which Landlord intends to offer such identified space for lease.  Tenant shall
have ten (10) days following Landlord's notice in which to lease said space,
under the market terms contained in Landlord's notification (but in no event at
a rental rate less than the then current rental rate under this Lease for the
Premises).  In the event Tenant does not choose to lease such space, or fails to
notify Landlord of its desire to lease such space within such ten (10) day
notification period, Landlord will have the right to lease the space, or any
portion thereof, to any other party, and the rights of Tenant hereunder with
respect to such space shall terminate.  Notwithstanding any provisions herein to
the contrary, Tenant's rights hereunder shall be subject and subordinate to all
existing rights of existing tenants in the Building with respect to any such
space.

     2.   Entrance Sign.  Tenant shall have the right to place Tenant's name on
the main entrance pylon sign for the Building, at Tenant's sole cost and
expense.  All such signage is subject to the prior written approval of Landlord,
and must comply with all applicable laws, codes and regulations.<PAGE>

                                                                   EXHIBIT 10.12

*** Portions of this Exhibit have been omitted based upon a request for
confidential treatment pursuant to Rule 406 under the Securities Act of 1933.
The omitted portions have been filed separately with the Securities and Exchange
Commission.

                        PRODUCT DISTRIBUTION AGREEMENT

                                    Between

                             ACCORD NETWORKS, INC.

                                      And

                            PICTURETEL CORPORATION

                     Date of Agreement:  January 21, 2000
<PAGE>

*** Portions of this Exhibit have been omitted based upon a request for
confidential treatment pursuant to Rule 406 under the Securities Act of 1933.
The omitted portions have been filed separately with the Securities and Exchange
Commission.

                                   AGREEMENT
                                   ---------

This Agreement ("Agreement") dated January 21, 2000 ("Effective Date") is made
by and between Accord Networks, Inc., a Georgia corporation having an office  at
9040 Roswell Road, Suite 450, Atlanta, GA 30350 ("Accord") and PictureTel
Corporation, a Delaware corporation having an office at 100 Minuteman Road,
Andover, MA 01810 ("PictureTel").  In consideration of the mutual promises
contained herein, the parties agree as follows:

1.  Purpose and Scope of Agreement
    ------------------------------

A.  This Agreement establishes the terms and conditions under which Accord will
sell and license and PictureTel will purchase, acquire and license Accord
Products, as defined in Section 3, for distribution and resale by PictureTel to
its customers, distributors or dealers and for use for demonstration, trade show
and testing purposes.  Except as expressly provided in this Agreement,
PictureTel accepts no responsibility for any expenses, losses, or actions
incurred or undertaken by Accord as a result of work performed in anticipation
of purchase of said Products by PictureTel.

B. It is also the intent of the parties to utilize the proprietary PictureTel
features set forth on Exhibit 7  ("PictureTel Features") to differentiate
product in the marketplace for sales and marketing purposes. It is the intent
that all Accord MCUs that ship after [***] will be [***] enabled. Any hardware
capable of supporting [***] algorithm on MCU's shipped subsequent to [***] will
be provided by Accord at no additional charge over and above the original price
of the audio cards. In addition, it is the intent that all MCUs that ship after
[***] will be [***] enabled and will, at such time, include the necessary
hardware and software to support the said algorithms. Additional PictureTel
proprietary algorithms will be incorporated as set forth in Phase 2 of Exhibit
7. It is the intent that all such PictureTel proprietary algorithms will be
distributed as follows:

   .  If the end-user or reseller wants PictureTel Features, the reseller or
      end-user will purchase the MCU from PictureTel (or its reseller).

   .  PictureTel and Accord sales management agree to mutually establish a
      process, within 30 days of the Effective Date of this Agreement, to handle
      situations where an end-user or reseller wants to purchase PictureTel
      Features directly from Accord.

   .  If the end-user or reseller does not require or want PictureTel Features,
      the end-user or reseller will, at its discretion, purchase the MCU from
      either Accord (or its resellers) or PictureTel (or its resellers).

   .  An end-user who wishes to utilize PictureTel Features at some time after
      the initial purchase may enable the MCU by registering with the PictureTel
      web-site to download the software or using some other means to identify
      the MCU as using the PictureTel features and by paying to PictureTel its
      then standard license/enabling fees.

----------------------------
*** Omitted information is the subject of a request for confidential treatment
pursuant to Rule 406 under the Securities Act of 1933 and has been filed
separately with the Securities and Exchange Commission.

                                       2
<PAGE>

2.  Effective Date and Term of Agreement
    ------------------------------------

Unless terminated sooner pursuant to Section 47, this Agreement shall remain in
effect for an initial term of thirty-six (36) months after the Effective Date,
and shall automatically continue thereafter for 2 renewal periods of 12 months
each, unless either party gives the other written notice of its intent not to
renew at least ninety (90) days prior to the expiration of the initial or either
renewal term. This Agreement shall, in any event, expire sixty (60) months after
the Effective Date unless further extended by  written agreement executed by
both parties.

3.  Products Covered by This Agreement
    ----------------------------------

A.  The Products available for purchase and license by PictureTel under this
Agreement are generally described in Exhibit 1.  The parties intend that
PictureTel will resell Accord existing and future multipoint conference unit
Product(s) and that Accord will further develop its existing Product to support
PictureTel's next generation of video teleconferencing features ("New
Features").

B.  The parties, upon mutual written agreement, may replace, augment or modify
the list of Products in Exhibit 1 that are available for purchase by PictureTel
under this Agreement at any time. The term "Products" also includes all Product
components, spares, replacement parts, software, RTUs (Rights-to-Use), firmware
and related documentation that Accord chooses to offer separately for sale or
license.  All Products under this Agreement are furnished exclusive of
installation and other services.

C.  Accord agrees that upon incorporation of  PictureTel Features, all Product
Accord sells pursuant to Section 3(b) above, to its customers, distributors,
original equipment manufacturers ("OEMs"), and resellers will be able to support
technology that enables said Product to interact with PictureTel's next
generation of video teleconferencing features as defined in Exhibit 7, unless
otherwise agreed to by both parties in writing.

4.  Regular Meetings
    ----------------

A. The parties executive and regional sales managers will conduct regular
Quarterly Business Reviews. The parties will also hold joint meetings with
channels to help maximize channel distribution.

     Quarterly Business Review topics will include, but not be limited to, the
     following:

     a)  Review of key business indicators/drivers;
     b)  Review of stagger chart consisting of Rolling Forecast vs. Actual
         Purchase Orders;
     c)  Product Roadmaps with reasonable definition to allow each party to plan
         and transition its product plans that either party may acquire from
         the other party for purposes of selling and/or licensing (e.g. end of
         life of a component, short supply of a component, Upgrades) and
         potential new products;
     d)  Joint development and other collaborative efforts;

                                       3
<PAGE>

     e)  Review of Service and Support problems, escalation, troubleshooting
         techniques and customer experiences;
     f)  Review of Delivery Performance and Quality metrics. Quality metrics
         will be as described in Exhibit 10;
     g)  Review of Pricing;
     h)  Review of actual and potential cost reduction activities;
     i)  Review of homologation, localization and type approval efforts; and
     j)  Review of joint marketing initiatives.

Additional meetings may be scheduled as needed.

B.  Notwithstanding the foregoing, for each of the first six months of the
Agreement, the parties shall meet face to face on a monthly basis to facilitate
Agreement implementation.

5.  Product/Marketing Launch and Channel Communication Plan

A.  The parties agree to use reasonable efforts to develop a schedule, within 5
days of the Effective Date of this Agreement, in order to accomplish the tasks
and objectives identified in Exhibit 9, Product and Marketing Launch.

B.  The parties agree to implement the Channel Communication Plan as described
in Exhibit 11.

C.  The parties agree that the initial contact with NTT of Japan regarding the
sale of the Accord Products shall be accomplished though a joint sales call.

6.  Prices, Discounts and Royalties
    -------------------------------

A.  PictureTel agrees to pay all applicable charges for the Products furnished
by Accord under this Agreement. Applicable charges include all charges such as
packaging, packing, shipping, customs duties imposed before passage of title,
and all applicable taxes except for sales, use, value added or other excise
taxes, however designated or levied, for which Accord will properly invoice
PictureTel as set forth in Section 10. Applicable charges will be calculated by
applying Product Discounts (as described in Section 6.B) to the Accord OEM
Product List Price (as set forth in Exhibit 4).

B.  Product Discounts available to PictureTel are set forth in Exhibit 5.
Accord may not lower the Product Discounts during the initial twelve (12) months
of this Agreement. Thereafter, Accord, in its sole discretion, may review and
recalculate the Product Discount(s) annually, effective as of each year's
anniversary of the Effective Date and shall notify PictureTel in writing at
least ninety (90) days prior to any such change in the Product Discount(s)
taking effect. New Product Discount(s) will apply to all PictureTel orders
accepted by Accord after the effective date of the change, and to all
replacement parts after the effective date of the change.  In addition, Accord
agrees to provide PictureTel with special promotional "trade-in" as set forth in
Exhibit 5.

                                       4
<PAGE>

C.  Accord may not increase the prices as stated on the OEM Product List Prices
set forth in Exhibit 4 during the first twelve (12) months of this Agreement.
Thereafter, Accord may change the OEM Product List Prices set forth in Exhibit 4
as follows. If the change increases the price for a Product Accord will give
written notice to PictureTel not less than ninety (90) days prior to the
effective date of the price change.  The new increased price will apply to all
PictureTel orders accepted by Accord after the effective date of the change, and
to all Product components furnished as replacement parts after the effective
date of the change.  For price decreases, PictureTel is entitled to a price
reduction credit for an order if the shipment is within thirty (30) days before
the effective date of such decrease.

D.  Accord represents and warrants that the prices and discounts it offers to
PictureTel for Products is and will be at least equivalent to the best terms
offered to other distributors or purchasers in comparable circumstances
considering volume commitments, and terms and conditions.  Moreover, Accord
agrees to credit any excess amounts paid by PictureTel.

E.  PictureTel agrees to pay Accord non-recurring engineering funding (NRE) for
development of PictureTel Features as set forth in Exhibit 7, based on a to be
agreed to calculation for determining the NRE.  In no event shall the NRE exceed
[***] per quarter or [***] in total, unless otherwise agreed to in writing by
the parties. PictureTel will make an initial payment to Accord of [***], in
order to assure timely completion of the tasks outlined in Phase 1 and Phase 2.
If Accord does not deliver the Phase 2 features as set forth in Exhibit 7 prior
to [***], no further NRE payments will be due from PictureTel until Phase 2 is
completed.

The parties agree to determine and resolve other NRE issues and credits to
PictureTel within thirty (30) days of the Effective Date. If the parties fail to
so agree either party may immediately terminate this Agreement without further
obligation or liability.

7.  Taxes
    -----
A.  Charges under this Agreement are exclusive of taxes.  Any tax or related
charge resulting from this Agreement, or from the provision of Products, or from
any activities hereunder (other than taxes on net income) which Accord shall be
required to pay to or collect for any governmental authority, shall be billed to
and paid by PictureTel unless PictureTel furnishes to Accord a valid exemption
certificate and such other documentation as Accord may reasonably request.

B.  PictureTel assumes the obligation for all present and future taxes (and any
related interest or penalties), including without limitation all sales, use,
excise, value added, gross receipts, or other taxes, customs duties and other
import taxes, and other charges of any kind imposed by, or payable to, any
governmental authorities, instrumentality's, or agencies, including without
limitation any tax which PictureTel is required to withhold or deduct from any
payment or reimbursement to Accord.  If Accord is required to pay any tax or
other charge for which PictureTel assumes the obligation under this Section 7,
PictureTel shall reimburse Accord on demand.

----------------------------
*** Omitted information is the subject of a request for confidential treatment
pursuant to Rule 406 under the Securities Act of 1933 and has been filed
separately with the Securities and Exchange Commission.

                                       5
<PAGE>

8.  Orders
    ------

A.  The term "Purchase Order" shall mean PictureTel's written purchase order
form and any documents incorporated therein by reference.  PictureTel may order
Products by submitting facsimile, or written Purchase Orders.  Except for the
first forty-five (45) days following the Effective Date, for which a longer lead
time may be required, Accord will use its best efforts to accomplish the goal of
normally shipping the PictureTel product  within [***] after receipt of a
PictureTel Purchase Order, but in any event (excluding force majeure events)
Accord will use its best efforts to accomplish the goal of shipment within [***]
business days of receipt of a PictureTel Purchase Order.

B.  PictureTel's Purchase Orders shall state Accord's committed delivery dates
for Products.

C.  Should PictureTel request a forecasted order pursuant to Section 36 and
Accord agrees to and meets a shipping lead time of less than [***] from receipt
of a PictureTel Purchase Order, then PictureTel, in those instances will agree
to issue payment within the same amount of time from the Ship Date that it took
Accord to Ship from receipt of the Purchase Order (for example, if Accord ships
within 24 hours from receipt of Purchase Order, PictureTel will issue payment
within 24 hours from the Ship Date), but in no event later than ten (10)
business days of the Ship Date.

D.  Accord shall give prompt written notice by either email, fax or mail of any
proposed variance in Lead Time to PictureTel.  Revisions to Lead Time shall
require written PictureTel authorization and may include appropriate quantity
adjustments.  During PictureTel's consideration of the proposed variance, Accord
shall continue to ship Products according to the existing commitment.

E.  PictureTel may make not cancel any order within [***] days of its scheduled
ship date.

F.  If PictureTel cancels a Purchase Order more than [***] days prior to its
scheduled ship date, Accord shall make every reasonable effort to cancel all
deliveries of materials on open order with its suppliers.  PictureTel will not
be responsible for any further costs of labor, overhead, or any other costs
including cancellation costs incurred by Accord with its subcontractor(s).

9.  Credit Terms
    ------------

Each order is subject to credit approval in Accord's sole discretion.  Accord
may change the amount of credit or terms of payment, or may withdraw credit, at
any time upon written notice to PictureTel.   Initially, PictureTel' will be
extended credit in the amount of [***].

10. Invoices
    --------

Accord will send invoices to the billing address in Exhibit 13.  Each shipment
or partial shipment (partial shipments are subject to PictureTel's prior written
approval) of Products shall constitute a separate billable transaction.

----------------------------
*** Omitted information is the subject of a request for confidential treatment
pursuant to Rule 406 under the Securities Act of 1933 and has been filed
separately with the Securities and Exchange Commission.

                                       6
<PAGE>

11. Payments
    --------

A. Payment shall not be due until PictureTel has received a correct invoice and
the conforming Products have been delivered, unless otherwise provided for in
Section 8 above.  PictureTel shall issue payment net thirty (30) days from the
invoice date, unless otherwise provided for in Section 8 above.

B. All payments shall be made in United States Dollars via electronic funds
transfers or check.

C. If PictureTel fails to pay an undisputed invoiced amount within 15 days of
when due, then, in addition to all other rights and remedies at law or
otherwise, Accord may have the right to bill PictureTel, and PictureTel shall
have the obligation to pay, late payment charges equal to 1% per month or the
maximum legal rate per month, whichever is less, on the unpaid amount for the
period starting with the date payment was due and ending when full payment is
made.

D. Accord reserves the right to impose commercially reasonable credit terms or
to withhold shipments or service pending satisfaction of payment obligations or
credit terms. This clause will not be effective with regard to disputed
invoices.

12. Packaging
    ---------

It is the intention of the parties to finalize packaging terms within thirty
(30) days of the Effective Date, until such time the following shall apply:

A. In addition to Accord's standard packaging, Accord agrees to include serial
numbers for all Products and subassembly components in a manner consistent with
PictureTel's tracking requirements. This should allow for both full forward and
backward tracking.

B. Accord will utilize packaging material that has appropriate certifications of
acceptance. The boxes shall meet all construction requirements of the applicable
freight classification. Accord will supply PictureTel with the box
manufacturer's certificates of approval.

13. Shipping
    --------

A. It is the intention that all Products are sold F.O.B. an Accord factory or
parts warehouse. However, Accord currently ships its Products Ex Works from
Israel. The contradiction in these positions will be resolved by mutual
agreement within thirty (30) days of the Effective Date. PictureTel will be
responsible for paying all applicable charges for shipping, handling, rigging,
brokerage, insurance, any other destination charges, and other taxes.

B. It is the intention of the parties to finalize packaging terms within thirty
(30) days of the Effective Date, until such time the following shall apply:
Accord will ship the Products, either from an ISO certified factory or from a
factory which has been quality approved by PictureTel, to an address designated
by PictureTel  in the United States, Europe or Asia. This address may either be
to a PictureTel distribution center or directly to a PictureTel customer. Accord
will only engage

                                       7
<PAGE>

carriers approved by PictureTel. In addition, Accord shall meet the quality
requirements as defined in Exhibit 8.

C.  Accord must receive prior written approval from PictureTel before it ships
any partial order.

14. This Section Intentionally Left Blank

15. This Section Intentionally Left Blank

16. Ship Date
    ---------

The date for shipment of Products ordered by PictureTel ("Ship Date") will be
established in the written acceptance of the order by Accord. Time and date of
shipment are of the essence of all purchases made under this Agreement and
Accord will use its best efforts (including, but not limited to Accord paying
for expedited shipment) to meet the Ship Date.  If shipment is delayed
(including approved partial deliveries) by more than 20 business days after the
Ship Date due to causes not attributable to PictureTel or to Force Majeure (as
defined in Section 45), PictureTel may elect, at its option, to accept late
delivery or to cancel the order without incurring cancellation charges or other
penalties.

17. Testing
    -------

A.  Interoperability Testing.  Accord shall be responsible, at its sole cost, to
    ------------------------
ensure that the Products interoperate, pursuant to Exhibit 10, with all of
PictureTel's then-current released videoconferencing products and conference
scheduling products. In addition, Accord will ensure that Products will be
backwards compatible (Accord Product to PictureTel product) of at least two
previous Product releases. PictureTel agrees to reasonably assist Accord in the
beta testing of Accord products, and will reasonably provide pre-release
PictureTel software and products for testing by Accord.

B.  Software Quality Assurance Testing.  Accord shall be responsible, at its
    ----------------------------------
sole cost, to ensure that the Products conform to the test requirements set
forth in Exhibit 10 and agrees that it will not provide Products to PictureTel
until all high severity software errors have been corrected.

C.  Homologation and Type Approvals.  Each party shall be responsible, at its
    -------------------------------
sole cost, to  complete type approvals in all the countries identified for
approvals pursuant to Exhibit 12.

18. Rejection of Nonconforming Products
    -----------------------------------

A.  With the exception of DOA products, to be effective, PictureTel's rejection
(or revocation of acceptance) of a nonconforming (i.e., not as ordered or does
not work in accordance with specifications) shipment must be made by written
notice to Accord and not later than 20 days after delivery of the Product to
PictureTel.  Accord, at its option, may correct the nonconforming Products on
PictureTel's premises or may instruct PictureTel to return the nonconforming
Products for replacement without charge.  If the Products are to be returned,
PictureTel will make the nonconforming Products available for pick-up by Accord
or its carrier within 10 days, and Accord will bear the shipping costs for the
returned Products and the replacement Products.

                                       8
<PAGE>

B.  After the time periods allowed in Section 18.A for rejection and return of
nonconforming Products, PictureTel shall have recourse to the appropriate
warranty as its remedy for nonconformity.

19.  Title and Risk of Loss
     ----------------------

Title and risk of loss for the Products (other than Licensed Materials, as
defined in Section 21) shall vest in PictureTel when the Products have been
shipped from the F.O.B. point at Accord.

20.  Product Makeup and Changes
     --------------------------

A.  With the exception of replacements for DOA products, which must be new,
Accord, at its option, may use new, reconditioned, refurbished, or
remanufactured parts in the furnishing of spares, replacement parts, and repairs
under this Agreement.

B.  PictureTel at any time may ask Accord to consider making changes to the
design, specifications, and features of the Products.  If PictureTel's request
is made in writing, Accord will endeavor to respond within 30 days with a
statement of whether Accord may potentially be interested in implementing the
proposed changes.

21.  Licensed Materials
     ------------------

A.  The term Products may include software, RTUs, firmware, and related
documentation (collectively "Licensed Materials").  Notwithstanding anything to
the contrary elsewhere in this Agreement, or in any purchase order,
confirmation, or other communication in connection with this Agreement:

    1.)      PictureTel shall receive no right, title, or interest in Licensed
         Materials, other than the license granted in Section 21.B; and

    2.)      all rights, title and interest in Licensed Materials (and all
         copies thereof made by PictureTel, including without limitation
         translations, compilations, and partial copies) are and shall remain
         the property of Accord or its parent, subsidiaries or assigns.

    3.)      all right, title and interest in and to all trademarks, copyrights,
         patents and other proprietary mark or notice, and the goodwill
         connected therewith, are and remain the sole property of Accord and, if
         applicable, any third party owner thereof.

B.  Accord hereby grants PictureTel a personal, non-assignable, nonexclusive
license to use and license the Licensed Materials, in object code form, solely
for the purpose of proper operation of the particular Product for which such
Licensed Materials are furnished. Notwithstanding the above, PictureTel may
permit a third party contractor to use the Licensed Materials, for the benefit
of PictureTel, subject to this Section 21 provided such third party is subject
to non-disclosure obligations comparable to those contained herein.

C.  PictureTel will not take any steps, nor will it permit third parties to take
any steps to print, copy, modify, translate (other than for human language
translations), alter, reverse assembly or reverse compilation or reverse
engineer to derive a source code equivalent of Licensed Materials.  If

                                       9
<PAGE>

Licensed Materials are located in a member state of the European Economic
Community ("EEC") or PictureTel needs information about the Licensed Materials
to achieve interoperability of an independently created software program:

    1.)      PictureTel shall first request such information from Accord, and
         Accord may charge a reasonable fee to provide such information; and

    2.)      if Accord elects not to make such information available, PictureTel
         may decompile the Licensed Materials to the minimum extent necessary to
         achieve such interoperability, subject to the limitations in Article 6
         of the EEC Council Directive of May 14, 1991 on the legal protection of
         computer programs.

D.  In addition to copies made incidental to the operation of the Licensed
Material, PictureTel is permitted to make a single archive copy of software, and
shall not otherwise reproduce software furnished under this Agreement.  All
copies of software must contain the same copyright notice and proprietary
marking as the original.

E.  During the term of this Agreement, PictureTel shall have the right to
sublicense Licensed Materials to customers of PictureTel (and to customers of
PictureTel's dealers and distributors), provided that such sublicense is solely
in connection with a sale or lease of the corresponding Product for the proper
operation of such Product,  pursuant to the "break the seal" End User Licnse
Agreement included with the Product. Accord will include the End User License
Agreement with the Products, and PictureTel will not remove or alter any such
agreements or any notifications or warning stickers attached thereto. This
license will terminate when this Agreement terminates.

F.  Intentionally left blank

G.  Accord may cancel, in whole or in part, any license granted under this
Section 21 if PictureTel fails to materially comply with the terms and
conditions of such license or this Agreement.  PictureTel shall return to Accord
all copies of Licensed Materials covered by the cancelled license.  Such
cancellation shall not affect the rights of PictureTel's customers under
sublicenses properly granted in accordance with Section 21.C prior to the date
of cancellation.

H.  PictureTel shall cancel any sublicense if the sublicensee fails to
materially comply with the terms and conditions of the sublicense.  PictureTel
shall cause the sublicensee to return to PictureTel all copies of Licensed
Materials covered by the cancelled sublicense.

22. Product Labeling/Branding
    -------------------------

Product labeling and branding will be implemented in accordance with Exhibit 2.

23. Intentionally Left Blank
    ------------------------

                                       10
<PAGE>

24. Intentionally Left Blank
    ------------------------

25. Documentation
    -------------

A.  To the extent that Accord has completed preparation of user documentation
for any of the Products, including, but not limited to, administrator guides,
user guides, and installation and service guides ("Accord Documentation"),
Accord will furnish to PictureTel, at no charge, one copy of the final version
thereof with each shipment. Additionally, Accord will provide PictureTel with an
electronic copy of the documentation. Accord hereby grants to PictureTel a
personal, nontransferable, nonexclusive, royalty-free license to use, reproduce,
reformat, modify, and distribute Accord Documentation for the sole purpose of
distributing Products to PictureTel's customers. At PictureTel's option, Accord
will reproduce and distribute standard Accord Documentation at no additional
charge.

B.  If the parties mutually agree to have Accord produce reformatted, modified,
or foreign language versions of Product documentation free of additional charge
for PictureTel, the terms, conditions, for this work will be agreed to at that
time.  If PictureTel uses its own personnel or engages a third party contractor
to reformat, modify or translate Accord Documentation, PictureTel shall submit
the draft to Accord for review and approval prior to its use or distribution.
Accord shall retain copyright rights in the entire documentation except those
specific portions constituting original works of authorship by PictureTel or
such third party contractor.

C.  PictureTel agrees to include the Accord copyright notice on any Accord
Documentation reproduced without change by PictureTel.  If feasible under
applicable law without jeopardizing the copyright rights of Accord, PictureTel
may elect to place only PictureTel's own copyright notice on documentation that
PictureTel or its third party contractor has reformatted, modified, or
translated, in which event PictureTel's copyright notice shall be interpreted to
protect the underlying copyright rights of Accord.

D.  Accord will use best efforts to provide to PictureTel, for each Product,
Release Bulletins of sufficient detail to allow PictureTel to service the to be
released Product at least sixty (60) days prior to the actual release of the
Product. In addition, Accord will its best efforts to instruct PictureTel in the
proper manner for servicing each new Product ("Transfer of Information") at
least thirty (30) days prior to the beginning of beta testing of the Product.
Such Transfer of Information shall include, but not be limited to, the delivery
of appropriate written service documentation.

E.  Accord will provide to PictureTel on a regular basis (not less frequently
than monthly) an outstanding bug or issue list for each Product.

26. Marketing Collateral
    --------------------

A.  Accord will provide to PictureTel in both hard copy and in high resolution
digital image form (including electronic files and/or PDF files) appropriate
brochures, datasheets, application notes, primers, white papers, customer
presentations, Q&A's, etc. ("Marketing Collateral") in English or any other
language(s) currently being or in the future distributed by Accord.  Accord
shall retain

                                       11
<PAGE>

copyright rights in the entire Marketing Collateral except those specific
portions constituting original works of authorship by PictureTel or such third
party contractor.

B. PictureTel agrees to include the Accord copyright notice on any Accord
Marketing Collateral reproduced without change by PictureTel.  If feasible under
applicable law without jeopardizing the copyright rights of Accord, PictureTel
may elect to place only PictureTel's own copyright notice on Marketing
Collateral that PictureTel or its third party contractor has reformatted,
modified, or translated, in which event PictureTel's copyright notice shall be
interpreted to protect the underlying copyright rights of Accord.

C. Accord will work with PictureTel to grant reasonable access to Accord's
customer listings in order that PictureTel may more efficiently implement
marketing programs.

D. Accord shall create a link between Accord's website and PictureTel's website
for any user who may have an interest in video conferencing or collaboration end
products.

27. Warranty on Products
    --------------------

A. Accord warrants to PictureTel that, for a period of 12 months from the date
of installation or 15 months from the Ship Date of Product shipment to
PictureTel, whichever is shorter (the "Warranty Period"), the hardware (i) shall
be free from defects in material and workmanship, (ii) are free of all liens and
encumbrances, and (iii) conform to Accord's published applicable specifications,
drawings, samples, and descriptions. Software Products (i) shall be free from
defects in material and workmanship, (ii) are free of all liens and
encumbrances, and (iii) conform to Accord's published applicable specifications,
drawings, samples, and descriptions  for a period of ninety (90) days from
acceptance. Accord also warrants that for ninety (90) days from the date of
acceptance, all hardware, software and documentation that is held in stock at
the PictureTel stocking center that is not at the current shipping levels shall
be upgraded by the Accord to the current shipping revision at no cost to
PictureTel. Accord further warrants that it has the right to convey the
Products.  These warranties shall survive any inspection, delivery, payment, or
termination of this Agreement.

Within thirty (30) days of the Effective Date the parties will agree on an
acceptable installation notification procedure.

B. Accord warrants that the date data contained in any product will (i)
accurately and unambiguously reflect the date, (ii) include an indication of
century in each instance, and (iii) not result in the abnormal termination of
any PictureTel software function. Accord will provide PictureTel with test
results that indicate that the products are Year 2000 Compliant (as define
below), and provide reasonable assistance as PictureTel requests. In addition to
Product warranties, Accord warrants that its internal IT systems relating to
manufacturing and ordering under the Agreement are Year 2000 Compliant and that
Accord has a contingency plan in place in the event such internal systems are
not Year 2000 Compliant so that the production, ordering or shipment of Products
to PictureTel will not be interrupted.

PictureTel defines Year 2000 Compliance as:

                                       12
<PAGE>

(i)    No value for current date will cause any interruption in operation
       (General Integrity).
(ii)   Date-based functionality must behave consistently for dates prior to,
       during, and after the year 2000 (Date Integrity).
(iii)  In all interfaces and data storage, the century in any date must be
       specified either explicitly or by unambiguous algorithms or inferencing
       rules (Explicit/Implicit Century).

Year 2000 must be recognized as a leap year (Leap Year).

C. If the Products are not in conformance with this warranty, then PictureTel
shall notify Accord in writing, except that such notice may be verbal if the
Products are not in conformance with the Year 2000 warranty.  Accord shall issue
a Return Materials Authorization ("RMA") number within 24 hours following
notification and correct defects in Products at Accord's facility.  Accord shall
repair or replace all defective Products within fifteen (15) days following
receipt of such Products.  In the event Accord does not repair or replace such
Products within such fifteen (15) day period, then title to the returned
Products shall revert to Accord and the RMA shall be deemed closed.  PictureTel
will receive credit on future orders for the amount paid of Products under each
closed RMA.  Accord shall bear all warranty costs including, without limitation,
labor, material, inspection, and shipping to and from PictureTel's facility.  If
PictureTel incurs any such cost, it may recover them directly from the Accord.
Replacement parts or components will be new or equivalent to new and warranted
for the remainder of the original warranty period for the Products, but in no
event less than ninety (90) days.  Accord or its agent agrees to perform repairs
upon Products which are no longer covered by warranty at a reasonable charge
within fifteen (15) days after notification by PictureTel. PictureTel may
request RMA numbers and return RMA material from any PictureTel organization and
the repaired or replaced RMA material will be returned by Accord to the
PictureTel organization that requested the RMA.

D. PictureTel shall obtain warranty support by isolating the failed component
whenever possible and returning it to Accord during the applicable Warranty
Period.  Upon verifying that the returned component has failed and is eligible
for warranty coverage, Accord will repair or replace the component under the
warranty, and will ship the repaired or replacement component to PictureTel.
PictureTel will be responsible for installing the repaired or replaced component
in the Product, and for testing the Product to verify that it is operable.
PictureTel shall bear the cost and risk of loss for shipment of components to
Accord.  Accord shall bear the cost and risk of loss for return shipment of the
replaced component to PictureTel unless Accord determines that the Product did
not fail or was not eligible for warranty coverage, in which event PictureTel
will pay for handling, inspection, repair, and transportation at Accord's then-
current rates, and PictureTel will bear risk of loss for return shipment.  At
the PictureTel's request Accord shall arrange for overnight shipment of the
replacement component.  In such case, PictureTel shall bear the cost and risk of
loss of shipment.  Replacements for component that are "dead on arrival" or fail
within thirty days of delivery to the end user shall be shipped by Accord within
24 hours of Accord's receipt of the request for replacement of the "dead" or
failed component.

E. Replacement Products and components will be warranted for the remainder of
the applicable Warranty Period or for 90 days from the date of return shipment,
whichever is greater.  Replaced Products and components will become the property
of Accord upon their return to Accord.  All warranty support will be provided at
Accord's standard intervals unless the parties agree to expedited warranty
support at additional charge to PictureTel.  If Accord fails to repair or
replace a

                                       13
<PAGE>

Product that is eligible for warranty coverage under this Section 27, and such
failure continues for thirty (30) working days after PictureTel gives written
notice thereof to Accord, PictureTel shall have the right, as its sole and
exclusive remedy, to return the Product for a refund of the purchase price.

28.  Warranty Exclusions
     -------------------

A.  EXCEPT AS STATED IN SECTION 27, PRELUDE, ITS SUBSIDIARIES, AND THEIR
RESPECTIVE AFFILIATES, SUBCONTRACTORS, AND PRELUDES, MAKE NO WARRANTIES, EXPRESS
OR IMPLIED, AND SPECIFICALLY DISCLAIM ANY WARRANTY OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE. THE ABOVE WARRANTIES ARE SOLELY FOR THE BENEFIT OF
PICTURETEL.

B.  PRELUDE DOES NOT WARRANT UNINTERRUPTED OR ERROR FREE OPERATION OF THE
PRODUCTS.  PRELUDE DOES NOT WARRANT THAT THE PRODUCTS WILL PREVENT, AND PRELUDE
WILL NOT BE RESPONSIBLE FOR, UNAUTHORIZED USE (OR CHARGES FOR SUCH USE) OF
COMMON CARRIER TELECOMMUNICATION SERVICES OR FACILITIES ACCESSED THROUGH OR
CONNECTED TO PRODUCTS.

C.  THE ABOVE WARRANTIES WILL NOT COVER DAMAGE RESULTING FROM (i) FAILURE TO USE
A PRODUCT PROPERLY AND IN ACCORDANCE WITH SPECIFICATIONS AND INSTRUCTIONS; (ii)
IMPROPER INSTALATION; (iii) ACCIDENTS, NEGLECT, ACTS OF GOD OR MISUSE; (iv)
CAUSES NOT ARISING OUT OF DEFECTS IN MATERIAL OR WORKMANSHIP; (v) FAILURE OR
DEFECT OF ELECTRICAL POWER, EXTERNAL ELECTRICAL CIRCUITRY, AIR CONDITIONING OR
HUMIDITY CONTROL; (vi) THE USE OF ITEMS NOT PROVIDED BY OR APPROVED BY PRELUDE;
OR (vii) FAILURE TO PROMPTLY INSTALL UPDATES.

29.  Repairs Not Covered By Warranty
     -------------------------------
Subject to the terms and conditions of Exhibit 6:

A.  If a Product failure during the applicable warranty period is outside the
scope of warranty coverage, or if a Product failure occurs after the applicable
Warranty Period, Accord will repair the failed component, at PictureTel's
discretion, either in accordance with Exhibit 6 or under its then-current
standard pricing schedule (plus applicable taxes, insurance, shipping, and
handling charges.

B.  Repaired or replaced components will be warranted for 90 days from the date
of return shipment.  Replaced components will become the property of Accord.

C.  In addition to any requirement of Exhibit 6, the following information needs
to be supplied for each Product:

    a.  PictureTel Part Numbers assigned to each Field Replaceable Unit (FRU);

    b.  All appropriate service related documentation;

                                       14
<PAGE>

    c.  Complete specifications;

    d.  Component Bill of Materials to the FRU level;

    e.  Regulatory compliance specifications;

    f.  Manufacturing Part Numbers;

    g.  Calculated, hypothetical Product Performance Data, including Mean Time
        Between Failure ("MTBF") statistics at the FRU level to allow PictureTel
        to reasonably calculate spare part stocking levels.

30.  Continuing Availability of Product and Parts
     --------------------------------------------

It is the intent of the parties to finalize negotiations on this section with
thirty (30) days of the Effective Date, in such regard Accord agrees to
research, in good faith, PictureTel's request to receive a license to "make and
have made" the Products and/or replacement parts, and for the delivery on a
confidential basis of all necessary documentation, specifications, drawings,
source code, object code, firmware, and other data, including its sources for
raw material necessary to make such Products and/or replacement parts. Unless
agreed to otherwise the following terms shall apply:

A.  Accord may discontinue availability of Products by giving PictureTel
eighteen (18) months prior written notice, provided that, at PictureTel's
option, Company shall:  (a) sell to PictureTel sufficient quantities of Products
as PictureTel deems necessary; or (b) grant to PictureTel a non-exclusive,
worldwide license to use, sell, or otherwise dispose of said Products.

B.  Accord agrees to make replacement parts (or their functional equivalent)
available for the Products until the earlier of 5 years after the Product has
been discontinued or 5 years after expiration or termination of this Agreement
or for as long as Accord makes the Products available to any of its customers.
Design, specifications, and features of such parts are subject to change
pursuant to Section 20.  During the term of this Agreement, prices for such
parts will be determined in accordance with Section 5.  After expiration or
termination of this Agreement, prices for such parts will be based on Accord
then-current list prices unless the parties otherwise agree. Following the five
(5) year period set forth above, Accord may discontinue availability of Products
by giving PictureTel eighteen (18) months prior written notice, provided that,
at PictureTel's option, Accord shall: (a) Grant to PictureTel a royalty-free,
non-exclusive, worldwide license to use, sell, or otherwise dispose of said
Products; or (b) Sell to PictureTel sufficient quantities of Products as
PictureTel deems necessary.

31.  Regulatory Directives
     ---------------------

A.  Before distributing a Product in any country or jurisdiction, Accord shall
ensure that the Product satisfies all applicable regulations, statutes,
directives, orders, standards, and other requirements (collectively "Regulatory
Directives") of that country or jurisdiction, including without limitation
telecommunications type approvals, safety standards, and electromagnetic
compatibility standards.

                                       15
<PAGE>

B.  Exhibit 12 identifies, by Product, the countries and jurisdictions where
Accord represents and warrants that it has satisfied, or will satisfy according
to the schedule set forth in Exhibit 12, the applicable Regulatory Directives
for distribution of each Product.  Accord shall be responsible for any and all
costs or expenses incurred with regard to obtaining or maintaining any such
certification for Tier I and Tier II countries.   With regard to Tier III
countries the party first intending to make an installation into said country is
responsible for the cost or expense of obtaining such certification and is
required to extend the benefit of such certification to the other party at no
additional cost, provided, however, that should Accord make an installation in a
Tier III country (either directly or through a Accord reseller other than
PictureTel), Accord shall be responsible for maintaining the certification in
that country regardless of which party incurred the original certification
expense.

32.  ISO Certification
     -----------------
Accord has obtained ISO 9002 Certification from its suppliers.

33.  Relationship of the Parties
     ---------------------------

A.  The parties acknowledge that, other than as expressly provided herein,
neither has an exclusive right to obtain or market Products, and no franchise is
granted herein.  Both parties expressly reserve the right to market products,
obtained from any source, in competition with the other.

B.  The relationship of the parties under this Agreement shall be, and at all
times remain, one of independent contractors and not that of franchiser and
franchisee, joint venturers, or principal and agent.  Neither party shall have
any authority to assume or create obligations on the other's behalf, and neither
party shall take any action which has the effect of creating the appearance of
its having such authority.

C.  Neither party is, or shall hold itself out to be, the representative of the
other.  PictureTel shall market Products to customers on such terms, conditions,
and prices as PictureTel chooses, provided PictureTel does not violate this
Agreement.

D.  All persons furnished by PictureTel shall be considered solely PictureTel's
employees or agents, and PictureTel shall be responsible for payment of all
unemployment, Social Security, and other payroll taxes including contributions
from them when required by law.

34.  Training
     --------

A.  PictureTel agrees to establish a training program to instruct PictureTel's
sales, installation, maintenance, and technical personnel (and those of its
dealers and distributors) with respect to the Products.  PictureTel shall ensure
that such personnel have been adequately trained before PictureTel begins
marketing Products to PictureTel's customers, distributors or dealers.

B.  At no additional charge, Accord will provide 2 initial Product training
sessions for PictureTel's instructors and for PictureTel's Relationship Manager
(as defined in Section 48) for Products in Exhibit 1. One session will cover
Sales/Marketing issues and the other session will cover Technical issues
including installation and maintenance. Thereafter, Accord will offer additional
sales and sales engineering training at each major Product release or quarterly,
at no charge at a location

                                       16
<PAGE>

mutually agreed upon by the parties, and whenever Accord determines that further
instruction is needed. Customer support training will be provided pursuant to
Exhibit 6.

C.  Accord, in its reasonable discretion, will determine the mutually agreed
upon duration, content, medium, date, and time for all training.  Accord may
elect to furnish training in person or by means of distance learning technology.
If offered in person, the training will be at a location designated by Accord,
and PictureTel will bear all travel, lodging, and other costs incurred by its
personnel.  Accord licenses PictureTel, on a royalty-free basis, to make a
reasonable number of copies of Accord's copyrighted training materials, provided
that each copy bears the same Accord copyright notice and proprietary rights
marking as the original, and provided further that PictureTel uses those
materials solely for the purpose of training PictureTel's employees in
connection with the Products.

D.  Accord agrees to offer other training for PictureTel's personnel or
PictureTel's authorized third parties pursuant to Exhibit 6.

35.  Accord Tier IV Support
     ----------------------

PictureTel will provide Tier I and Tier II support. Accord will provide Tier III
field level support pursuant to Exhibit 6. Accord will provide Tier IV (R&D)
interface support to the highest level tier of the PictureTel's service support
organization pursuant to Exhibit 6.  Accord will designate one or more
individuals ("Tier IV Interface") to provide such support which will be provided
by  telephone or email, at no charge, 24 hours a day. This Tier IV support
consists of  Accord's last level of technical support for trouble resolution.
Tier 4 support will be sought only after PictureTel's service support
organization has exhausted all appropriate avenues for diagnosing and resolving
troubles (e.g. procedures contained in Product documentation, troubleshooting
directly with customers and/or dealers, verifying the trouble by replication)
prior to placing a call or sending email to the Accord Tier IV Interface.

36.  Forecasts
     ---------

A.  On a quarterly basis, PictureTel shall provide in writing to Accord a non-
binding rolling 12-month forecast of PictureTel's anticipated Product purchases,
itemized as follows:

   - Projected total unit volume of each Product to be ordered during the
     ensuing 12 months

B.  The first such forecast shall be due within 45 days from the Effective Date.
Thereafter, an updated forecast shall be due not later than 30 days prior to the
start of each calendar quarter.

C.  The projections in each forecast shall be based on good faith estimates, and
shall not obligate PictureTel to purchase that quantity of Products.  If
PictureTel becomes aware of any changed circumstance, information, or plan that
could materially alter the projections set forth in PictureTel's most recent
forecast, PictureTel shall use reasonable efforts to notify the Accord
Relationship Manager.

37.  Information Sharing
     -------------------

A.  PictureTel shall provide reasonable cooperation with efforts by Accord to
improve the functionality, quality, reliability, interoperability, and cost-
effectiveness of the Products.  If

                                       17
<PAGE>

PictureTel becomes aware of any actual or suspected defects, safety problems,
customer complaints, or claims relating to any Product, PictureTel shall
promptly notify Accord.

B.  At least quarterly, PictureTel shall furnish information reasonably
requested by Accord for the purpose of evaluating possible future development of
Products, including without limitation PictureTel's suggestions for
modifications or improvements to the Products.

C.  At least quarterly, PictureTel shall furnish information reasonably
requested by Accord for the purpose of measuring and improving the quality of
Accord internal processes, including without limitation the provisioning,
maintenance, and billing processes.

D.  On a regular basis, but in any event before beta testing begins, Accord will
inform PictureTel of any new product that Accord is intending to distribute. If
PictureTel determines that it desires to distribute said new product, then
Accord will negotiate with PictureTel, in good faith, in order to accomplish
said distribution.

38.  Co-Marketing Funds
     ------------------

Within forty-five (45) days of the Effective Date of this Agreement, Accord and
PictureTel shall set up a Co-Marketing escrow fund, pursuant to a third party
escrow agreement, to support potential additional marketing issues between the
parties. The parties will within said 45 days mutually agree upon the use of
these funds.  The sum contained in this escrow fund shall be funded in an amount
equal to [***] of the net price for each Product acquired by PictureTel under
this Agreement to a maximum of [***]. Any amount of funds not utilized or being
utilized at the end of the term of this Agreement as set forth in Section 2,
will be released from escrow to Accord.

39.  Compliance with Applicable Laws
     -------------------------------

PictureTel agrees to comply (and to cause its dealers and distributors to
comply) with all applicable requirements of law worldwide (including without
limitation federal, state, and local laws, ordinances, administrative rules, and
regulations) in every jurisdiction in which Products are marketed, sold,
purchased, licensed, shipped, or installed.  In particular, and without limiting
the foregoing, PictureTel and its dealers and distributors shall comply with the
requirements of 47 CFR, Parts 2 (Subpart j), and the U.S. Export Administration
Regulations.  To this effect, PictureTel and its dealers and distributors shall:
(1) require their respective customers to assume in writing the obligation not
to re-export Products, or parts thereof, in violation of such regulations; and
(2) be responsible for obtaining, and require their respective customers to
obtain, any and all necessary export licenses for Products; and (3) if requested
by Accord, sign written assurances and other export-related documents as may be
required for Accord to comply with U.S. export regulations.  In those cases
where such customers are not permitted or able to obtain export licenses for any
country, PictureTel shall be responsible for obtaining such licenses on behalf
of such customers.

----------------------------
*** Omitted information is the subject of a request for confidential treatment
pursuant to Rule 406 under the Securities Act of 1933 and has been filed
separately with the Securities and Exchange Commission.

                                       18
<PAGE>

40.  Sales to Government
     -------------------

A.  PictureTel shall take all necessary steps to ensure that the intellectual
property rights of Accord are not impaired through PictureTel's offer, sale,
lease, or license of a Product (either directly or through PictureTel's dealer
or distributor) to a governmental entity in the United States or abroad.

B.  If PictureTel or its dealer or distributor furnishes Products to the United
States government or any agency, instrumentality, or contractor thereof,
PictureTel shall ensure that the applicable contract includes a restricted
rights clause satisfactory to Accord.

41.  Infringement Indemnification by Accord
     --------------------------------------

A.  Notwithstanding any warranty provisions, Accord will defend or settle, at
its own expense, any action or claim brought against PictureTel, to the extent
that it is based on a claim that a Product (as such is defined in Exhibit 1)
provided under this Agreement infringes any patent, trademark, trade secret, or
copyright.  In addition, Accord will pay all costs, expenses (including
attorneys' fees) and damages incurred by or against PictureTel or its dealers,
distributors, and customers in any such action or claim.  Notwithstanding the
above, in no event shall Accord's liability exceed the actual amount paid by
PictureTel for the Accord Products. Each of the obligations of Accord under this
Section 42 is subject to the following conditions:

    1.)      PictureTel must promptly notify Accord of any such claim.

    2.)      Accord shall have sole control of the defense of any action on such
         claim and of all negotiations for its settlement or compromise.

    3.)      PictureTel and its dealers, distributors, and customers shall
         cooperate in every reasonable way to facilitate the settlement or
         defense of such claim, and shall make no statement and take no action
         which might hamper or undermine the defense or settlement by Accord.

    4.)      The claim must not arise from Product modifications not performed
         by Accord, or from use or combination of the Products with software
         and/or apparatus or equipment not supplied or specified by Accord.

    5.)      The claim must not arise solely from adherence to PictureTel's
         instructions or from infringing items of PictureTel's origin, design,
         selection, or authorship.

    6.)      Each of PictureTel's contracts to furnish any Product must require
         the dealer, distributor, or customer (as applicable) to allow Accord to
         eliminate or mitigate infringement by taking the reasonable actions
         described in Section 42.B.

B.  If any Product is or becomes the subject of a claim of infringement,
PictureTel shall allow (and PictureTel shall cause its dealers, distributors,
and customers to allow) Accord to take any or all of the following actions at
Accord's option and sole expense:

    1.)      to procure for PictureTel and its dealers, distributors, and
         customers the right to continue using and marketing the Products, or

                                       19
<PAGE>

    2.)      to replace the infringing Product with a non-infringing Product
         substantially complying with the infringing Product's specifications.

42.   Insurance
      ---------

A.  At all times during the term of this Agreement, Accord and PictureTel each
shall maintain Comprehensive General Liability (ISO 1988 or later) occurrence
form of insurance, including contractual liability, with limits of at least
$2,000,000 combined single limit for Bodily Injury and Property Damage liability
for each occurrence.

B.  At all times during the term of this Agreement, PictureTel shall maintain
the following insurance coverage:

    1.)  Workers' Compensation insurance as prescribed by the laws of the
         applicable states or other jurisdictions.

    2.)  Employer's liability insurance with limits of at least $500,000 each
         occurrence.

    3.)  Automobile Liability insurance with limits of at least $2,000,000
         combined single limit for Bodily Injury and Property Damage for each
         occurrence.

C.  At all times during the term of this Agreement, and for not less than 1 year
after expiration or termination of this Agreement, Accord and PictureTel each
shall maintain Products/Completed Operations insurance with limits of at least
$5,000,000 per occurrence.

D.  At all times during the term of this Agreement, and for not less than 1 year
after expiration or termination of this Agreement, Accord shall maintain Errors
and Omissions or Professional Liability insurance in the amount of at least
$1,000,000 per claim and $2,000,000 in the aggregate.

E.  Total per occurrence limits for Automobile Liability and Comprehensive
General Liability coverage may be satisfied with any combination of primary and
umbrella or excess liability policies totaling the amount of required insurance.

F.  Accord's Comprehensive General Liability and Automobile Liability insurance
shall designate PictureTel, its affiliates and subsidiaries, and their
respective directors, officers, and employees as additional insureds.  All such
Accord insurance policies should be primary and non-contributory, and shall
respond and pay prior to any other insurance or self-insurance available.  Any
other coverage available to the PictureTel shall apply on an excess basis.
Accord agrees that Accord, Accord's insurers, and anyone claiming by, through,
under or in Accord's behalf shall have no claim, right of action, or right of
subrogation against PictureTel based upon any loss or liability insured against
under the foregoing insurance.

G.  Each party, upon request of the other party, shall furnish a certificate of
insurance attesting to the coverage described in this Section 43. Each party
shall notify the other party in writing at least 30 days prior to cancellation
of or change in a policy.  Insurance companies providing coverage will be rated
by A.M. Best with at least an A-rating.

                                       20
<PAGE>

43.  Limitation of Liability
     -----------------------

A.  THE ENTIRE LIABILITY OF EACH PARTY AND ITS RESPECTIVE SUBSIDIARIES,
AFFILIATES, AND SUBCONTRACTORS, AND THE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS,
REPRESENTATIVES, SUBCONTRACTORS, AND SUPPLIERS OF EACH OF THEM, AND THE
EXCLUSIVE REMEDIES FOR ANY DAMAGES CAUSED BY ANY PRODUCT DEFECT OR FAILURE, OR
ARISING FROM THE PERFORMANCE OR NON-PERFORMANCE OF ANY WORK, OR OTHERWISE
ARISING IN CONNECTION WITH THIS AGREEMENT, SHALL BE:

    1.)  FOR INFRINGEMENT BY A PRELUDE PRODUCT, THE REMEDIES STATED IN SECTION
         42.

    2.)  FOR PRODUCT DEFECT OR FAILURE DURING THE WARRANTY PERIOD, THE REMEDIES
         STATED IN SECTION 27.

    3.)  FOR DELAYS IN THE DELIVERY DATE, PRELUDE SHALL HAVE NO LIABILITY UNLESS
         THE DELIVERY OR IN-SERVICE DATE IS DELAYED BY MORE THAN 15 DAYS BY
         CAUSES NOT ATTRIBUTABLE TO PICTURETEL, ITS CUSTOMER, DEALERS OR
         DISTRIBUTORS, OR FORCE MAJEURE CONDITIONS, IN WHICH CASE PICTURETEL'S
         SOLE REMEDY SHALL BE TO CANCEL THE ORDER WITHOUT INCURRING CANCELLATION
         CHARGES.

    4.)  FOR DAMAGES TO REAL OR TANGIBLE PERSONAL PROPERTY OR FOR BODILY INJURY
         OR DEATH TO ANY PERSON FOR WHICH THE OTHER PARTY'S NEGLIGENCE WAS THE
         PROXIMATE CAUSE, THE DAMAGED PARTY SHALL HAVE THE RIGHT TO PROVEN
         DAMAGES TO SUCH PROPERTY OR PERSON.

    5.)  FOR CLAIMS OTHER THAN SET FORTH ABOVE, EACH PARTY'S LIABILITY SHALL BE
         LIMITED TO PROVEN DIRECT DAMAGES IN AN AMOUNT NOT TO EXCEED $500,000.

B.  NOTWITHSTANDING ANYTHING TO THE CONTRARY ELSEWHERE IN THIS AGREEMENT,
NEITHER PARTY SHALL BE LIABLE FOR ANY OF THE FOLLOWING DAMAGES, IRRESPECTIVE OF
WHETHER THE OTHER PARTY  HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES:

    1.)  INDIRECT OR INCIDENTAL; OR

    2.)  SPECIAL, PUNITIVE OR CONSEQUENTIAL (INCLUDING BUT NOT LIMITED TO LOST
         PROFITS, SAVINGS, OR REVENUES OF ANY KIND); OR

    3.)  CHARGES FOR COMMON CARRIER TELECOMMUNICATION SERVICES OR FACILITIES
         ACCESSED THROUGH OR CONNECTED TO PRODUCTS (TOLL FRAUD).

                                       21
<PAGE>

C.  THIS SECTION 44 SURVIVES THE FAILURE OF ANY EXCLUSIVE REMEDY.

D.  EACH PARTY SPECIFICALLY AGREES THAT THE LIMITATION OF LIABILITIES SET FORTH
IN THIS SECTION 44 SHALL APPLY REGARDLESS OF THE FORM OF ACTION, WHETHER IN
CONTRACT, TORT INCLUDING NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE.

44.  Force Majeure
     -------------

Neither party shall be held responsible for any delay or failure in performance
of any part of this Agreement or an order to the extent such delay or failure is
caused by Force Majeure, which is defined to include fire, flood, explosion,
war, strike, embargo, government requirement, civil or military authority, act
of God, act or omission of carriers, computer failures, or other similar causes
beyond its control and without the fault or negligence of the delayed or non-
performing party or its subcontractors, whether or not similar to the foregoing.

45.  Proprietary Information
     -----------------------

A.  In connection with this Agreement, each party may have occasion to disclose
its proprietary information to the other party.  Any such information that has
been designated as proprietary or confidential pursuant to Section 46.B or
Section 46.C (hereinafter "Information") shall be subject to the provisions of
this Section 46.  Such Information:

    1.)      may take the form of documentation, drawings, specifications,
         prototypes, software, technical or engineering data, product or market
         plans, forecasts, price lists, customer data, business information, and
         other forms;

    2.)      may be communicated orally, in writing, by electronic or magnetic
         media, by visual observation, and by other means; and

    3.)      also includes any copies, reports, analyses, studies, or other
         materials, whether prepared by the receiving party or otherwise, that
         contain or are based upon Information.

B.  Except as otherwise provided in Section 46.C:

    1.)      when Information is furnished in a written form, the disclosing
         party shall clearly mark the Information as proprietary or confidential
         or otherwise subject to the limited distribution described in this
         Agreement; and

    2.)      when Information is provided in an unwritten form, the disclosing
         party shall, at the time of disclosure, clearly identify the
         Information as being proprietary or confidential or otherwise subject
         to the limited distribution described in this Agreement.

C.  The following are hereby designated to be Information, and need not be
marked or identified as such pursuant to Section 46.B:

    1.)      The confidential prototypes, plans, and specifications for each
         party's unannounced future products shall be deemed Information of that
         party.

                                       22
<PAGE>

    2.)      The identities, locations, requirements, and communications systems
         of each party's customers and prospective customers shall be deemed
         Information of that party.

    3.)      The volumes of Products purchased by PictureTel shall be deemed
         Information of PictureTel, but may be disclosed by Accord as part of
         aggregated or general data that does not identify PictureTel's specific
         purchasing volumes.

    4.)      The terms, conditions, prices, and discounts under which Accord
         offers or provides Products to PictureTel shall be deemed Information
         of Accord.

D.  Throughout the term of this Agreement and for a period of three years after
any expiration or termination of this Agreement, the party to whom Information
is disclosed and its employees shall:

    1.)      hold the Information in confidence, exercising a degree of care not
         less than the care used by such party to protect its own proprietary or
         confidential information that it does not wish to disclose;

    2.)      restrict disclosure of the Information solely to those employees
         with a need to know, and not disclose it to any other person;

    3.)      advise those employees of their obligations with respect to the
         Information; and

    4.)      use the Information only for purposes of performing this Agreement,
         except as may otherwise be mutually agreed upon in writing, and
         reproduce such Information only to the extent necessary for such
         purpose.

E.  If Accord uses a contractor for the performance of any part of its duties
under this Agreement, Accord may disclose PictureTel's Information to such
contractor for that purpose, provided that the contractor has entered into a
confidentiality agreement with Accord.  If any of PictureTel's contractors,
dealers, or distributors has a need to know Accord's Information in order to
market, configure, install, or service Accord Products on PictureTel's behalf,
PictureTel may disclose the Information to such person for that purpose,
provided such person has entered into a confidentiality agreement with
PictureTel.

F.  Information shall be deemed the property of the disclosing party and, upon
request, the other party will return all Information received in tangible form
to the disclosing party or will destroy all such Information.  If either party
loses or makes an unauthorized disclosure of the other party's Information, it
shall notify such other party immediately and use reasonable efforts to retrieve
the lost or wrongfully disclosed Information.

G.  The party to whom Information is disclosed shall have no obligation to
preserve the proprietary nature of any Information which:

    1.)      was previously known to such party free of any obligation to keep
         it confidential; or

    2.)      is or becomes publicly available by means other than unauthorized
         disclosure; or

                                       23
<PAGE>

    3.)      is developed by or on behalf of such party independent of any
         Information furnished under this Agreement; or

    4.)      is received from a third party whose disclosure does not violate
         any confidentiality obligation.

H.  In the event that the receiving party becomes compelled by lawful process
(such as interrogatories, subpoenas, or civil investigative demands) to disclose
any Information, the receiving party shall provide the disclosing party with
prompt written notice so that the disclosing party may seek a protective order
or other appropriate remedy, or both, or waive compliance with the provisions of
this Agreement.  In the event that the disclosing party is unable to obtain a
protective order or other appropriate remedy, or if the disclosing party so
directs, the receiving party shall endeavor in good faith to obtain a protective
order or other appropriate remedy at the disclosing party's reasonable expense.
Failing the entry of a protective order or other appropriate remedy or receipt
of a waiver hereunder, the receiving party shall furnish only that portion of
the Information which it is advised by written opinion of its counsel is legally
required to be furnished and shall endeavor in good faith to obtain reliable
assurance that confidential treatment shall be accorded such Information.

I.  Except as otherwise expressly provided elsewhere in this Agreement, neither
this Agreement nor the disclosure of Information hereunder shall be construed as
granting or conferring any rights by license or otherwise in any Information
disclosed, or under any trademark, patent, copyright, mask work, or any other
intellectual property right of either party.

J.  The parties acknowledge that money damages might not be sufficient remedy
for breach of this Section 46. Accordingly, the parties agree that a non-
breaching party shall be entitled to seek specific performance and injunctive
relief as remedies for such breach of Section 46, which shall be in addition to
all other remedies available at law or equity, including money damages.

46.  Termination
     -----------

A.  Either party may terminate this Agreement for default upon 30 days' prior
written notice if the other party has materially defaulted in performance or has
materially breached its obligations under this Agreement, and such breach or
default remains uncured for a period of 30 days following receipt of written
notice of such breach or default.

B.  Either party may terminate this Agreement, without liability, except for the
payments of amounts then due and owing the other party, by notice in writing:
(i) if the other party makes an assignment for the benefit of creditors (other
than solely an assignment of monies due); or (ii) if the other party evidences
an inability to pay debts as they become due, unless adequate assurance of such
ability to pay is provided within thirty (30) days of such written notice.  If a
proceeding is commenced under any provision of the United States Bankruptcy
Code, voluntary or involuntary, by or against either party, and this Agreement
has not been terminated, the non-debtor party may file a request with the
bankruptcy court to have the court set a date within sixty (60) days after the
commencement of the case, by which the debtor party will assume or reject this
Agreement, and the

                                       24
<PAGE>

debtor party shall cooperate and take whatever steps necessary to assume or
reject the Agreement by such date.

47.  Relationship Manager
     --------------------

The Relationship Manager for each party as of the Effective Date is identified
in Exhibit 14.  Each party may unilaterally change the identity or address of
its Relationship Manager at any time by giving prior written notice to the other
party.

48.  Notices
     -------

A.  The Receiver of Notices for each party as of the Effective Date is
identified in Exhibit 15.  Each party may unilaterally change the identity or
address of its Receiver of Notices at any time by giving prior written notice to
the other party.

B.  Any notice or demand which under the terms of this Agreement or under any
statute must or may be given or made by Accord or PictureTel shall be in writing
and shall be given or made by hand delivery or overnight courier; or by
certified or registered mail, addressed to the respective party's Receiver of
Notices.  Such notice or demand shall be deemed to have been given or made when
received.

49.  Assignments
     -----------

A.  Except as otherwise provided in Section 50.B, neither party may assign this
Agreement, or assign its rights or delegate its obligations under this
Agreement, without the express written consent of the other party.

B.  Accord without restriction may assign its right to receive payments under
this Agreement.  In addition, either party may assign this Agreement, and may
assign its rights and delegate its obligations under this Agreement, to any
present or future parent, subsidiary, or affiliate.  Upon such assignment and
delegation, the assigning/delegating party shall be released and discharged, to
the extent of the assignment and delegation, from all further duties under this
Agreement as to Products. Notwithstanding the foregoing, each party is expressly
authorized to assign this Agreement to any of its current or future majority
owned subsidiaries, provided said subsidiary is reasonably capable of fulfilling
its obligations hereunder.

50.  Governing Law
     -------------

The parties expressly intend and agree that the construction, interpretation,
and performance of this Agreement and all transactions under it shall be
governed by the laws of the Commonwealth of Massachusetts, excluding its choice
of law rules and excluding the Convention for the International Sale of Goods.
Each party agrees to submit to the jurisdiction of any court in either
Massachusetts or Georgia wherein an action is commenced against such party based
on a claim under this Agreement.

                                       25
<PAGE>

51.  Intentionally left blank
     ------------------------

52.  Survival
     --------

A.  The obligations of the parties under this Agreement and any order issued
pursuant to this Agreement, which by their nature would continue beyond the
termination, cancellation, or expiration of this Agreement or any order,
including, by way of illustration only and not limitation, those in Sections 11,
21, 30, 31, 40, 41, 42, 43, 44, 46 and 51 shall survive termination,
cancellation, or expiration of this Agreement or any order hereunder.

B.  In addition to the survival provisions of Section 53.A, if this Agreement
expires or is terminated during the Warranty Period for any Product sold
hereunder, all terms and conditions pertaining to the warranty shall survive for
the remainder of such Warranty Period.

53.  No Waiver
     ---------

The failure of either party at any time to enforce any right or remedy available
to it under this Agreement or any order, or otherwise with respect to any breach
or failure by the other party, shall not be construed to be a waiver of such
right or remedy with respect to any other breach or failure by the other party.

54.  Titles
     ------
The headings of the clauses in this Agreement are inserted for convenience only
and are not intended to affect the meaning or interpretation of this Agreement.

55.  Severability
     ------------

If any provision or part hereof shall be held to be invalid or unenforceable for
any reason, then the meaning of such provision or part hereof shall be construed
so as to render it enforceable to the extent feasible.  If no feasible
interpretation would save such provision or part hereof, it shall be severed
from the Agreement, but without in any way affecting the remainder of such
provision or any other provision contained herein, all of which shall continue
in full force and effect unless such severance effects such a material change as
to render the Agreement unreasonable.

56.  Integration
     -----------

This Agreement (including the annexed Exhibits, which are incorporated by
reference herein and made a part hereof) supersedes all prior oral or written
understandings between the parties and constitutes the entire Agreement between
the parties as to the subject matter of this Agreement.  Except for preexisting
confidentiality agreements between the parties, which shall continue to govern
if more restrictive than the terms of this Agreement, there are no
understandings or representations, express or implied, not expressly set forth
in this Agreement.  Except as otherwise provided herein, this Agreement shall
not be modified or amended except by a writing signed by both parties, and no
changes or additions to this Agreement shall be binding on a party unless signed
by an authorized representative (vice president level or higher) of the other
party.

                                       26
<PAGE>

IN WITNESS WHEREOF, each party has caused this Agreement to be executed by its
authorized representative on the date(s) indicated.

PICTURETEL CORPORATION            ACCORD NETWORKS, INC.

By:  /s/ [Illegible Signature]    By:  /s/ David P. Gallagher
   ---------------------------       ----------------------------

Name:  Arthur L. Fatum            Name:  David P. Gallagher
     -------------------------         --------------------------

Title:  VP and CFO                Title:  VP-Business Development
      ------------------------          -------------------------

Date:  1/21/00                    Date:  1/26/00
     -------------------------          -------------------------

                                       27
<PAGE>

                                   EXHIBIT 1
                                   ---------

                        GENERAL DESCRIPTION OF PRODUCTS
                        -------------------------------

Product Description
-------------------

The MGC-100 is a Next Generation ITU-compliant Multipoint Control Unit
(MCU)/gateway solution. It enables live, interactive multimedia communication
between two or more audio, video and/or data endpoints from ISDN, IP and/or ATM
networks.

                   [Graphical Depiction of MGC-100]

                            The MGC-100

The MGC-100 is the first MCU to combine a robust telecom architecture that
includes a super-fast 256 Mbps backplane, front-accessible hot-swappable
modules, redundancy, on-line software downloads and comprehensive diagnostics -
with the ease of use of a user-friendly, powerful reservation and management
system. The MGC comes in a single-shelf model which supports the highest
capacities in the industry. Participants from ISDN, IP, and/or ATM networks can
all connect to the same MCU for seamless interconnectivity and centralized
management.

1.  Key Attributes
    --------------

    The MGC's Advanced Continuous Presence represents a breakthrough in terms of
    viewing flexibility and conference interaction.  It offers multiple viewing
    modes: 2 symmetrical sites, 4 symmetrical sites, 5+1 mixed view images (5
    small images arranged around one larger image) and 9 symmetrical sites.

[Graphical depiction of five different viewing modes: (a) two screens with one
on top of other, (b) two screens side by side; (c) four screens with two screens
on top of two screens; (d) six screens with one large screen in top left corner
with five smaller screens on right side and across bottom of screen; and (e)
nine symmetrical screens.]

The MGC's Multiway Transcoding automatically identifies the bit rate, frame
rate, video resolution, audio compression and T.120 transfer rate for each
endpoint and performs any necessary translations "on the fly".  Not only does
this capability make set-up fast and seamless for both point-to-point and
multipoint calls but it also ensures that each endpoint operates at all of its
optimal capabilities.

                                       28
<PAGE>

Designed with a powerful Telecom Architecture, allowing redundant modules and
power supplies, a universal slot chassis and automatic resource allocation, the
MGC provides continuous multipoint service for all calls, even in the most
rigorous conferencing environments.

The MGC Manager is a  Windows95/NT-based application that provides the entire
interface necessary to manage conferences, make reservations for multi-point
conferences and provide maintenance and monitoring functions into the MGC-100.
The MGC Manager that runs on a customer-provided PC quickly and easily connects
to and manages multiple MGC-100s via the Internet, LAN, dial-up modem, or RS-232
interface.

System Components

The MGC is comprised of several key components, or building blocks, that can be
combined and recombined in a variety of different configurations to suit a wide
range of user needs.  They are:

 .  Control Unit: performs conference set-up, conference tear-down, resource
allocation and controls the flow of audio, video and data between the modules
connected to the high speed bus. It is packaged as a front-removable, plug-in
element for easy service during operation.

 .  Redundant Power Supply Units: each provides power to the MGC using 110/220
volts AC - 50/60 Hz.

 .  Network Interface: interfaces between the MGC and the customer network.

 .  Video/Mux Processor: (H.221 and IMUX bonding mode 1): Multiplexes and
demultiplexes audio, video, data and control information and performs channel
aggregation.

 .  Audio Module: performs audio compression for G.722, G.728, G.711 and G.723
algorithms.

 .  Video Module: performs Dynamic Continuous Presence and Multiway Transcoding.

 .  T.120 Module: performs data routing to support the T.120 standard.

                                       29
<PAGE>

                                   EXHIBIT 2
                                   BRANDING

If PictureTel is distributing the Accord product without PictureTel-specific
enhancements, the phrase "A PictureTel Visual Collaboration Solution" should be
used.  For the Accord product, this wording will be on the chassis of the
product beneath the manufacturer's name and product model number.  Accord must
obtain PictureTel's written approval for this representation of this phrase on
the Accord product.

INGREDIENT BRANDING

If PictureTel technology is included in the product, PictureTel's ingredient
brand must be used. The ingredient brand is "PictureTel Powered" and is
represented below. The ingredient brand should be included in the
documentation, on the MCU chassis in the lower left corner, on the software
wallpaper, and on the UI mainscreen. Accord must obtain PictureTel's written
approval for the representation and placement of the PictureTel Powered brand.

[Graphical Depiction of PictureTel brand]

The PictureTel Powered logo is comprised of three elements:  The PictureTel
corporate signature formatted vertically above a red swish and the word
`powered'.  The PictureTel logo must be used as defined in this exhibit.

To maximize the impact and visibility of the corporate insignia when positioned
alongside text or graphics, the signature should always be surrounded by a space
margin. This margin is equal to the height of the screen (x) in the PictureTel
symbol, and should be maintained above, below and to either side of the
PictureTel insignia. No words, symbols or illustrative matter should intrude
into this area.

The minimum size of the vertical corporate signatures is .5 inches (13mm) wide
Because the corporate signature has been carefully designed to provide the
greatest visibility and harmony for it's elements, in order to distinguish the
corporate signature as a legal trademark, never:

 .  separate the symbol from the logotype
 .  recreate or alter proportions or rearrange the elements under any
   circumstances,
 .  incorporate the logo into a sentence or use it in a possessive form,
 .  fill the screen or eye area with any graphic elements inside the screen area
 .  fill the screen or eye area with color
 .  substitute another typeface for the logotype, or
 .  substitute another name or use another name in conjunction with the symbol.

C O L O R S
The PictureTel corporate identity system is made up of two colors that have been
chosen for their visibility, positive interaction, and boldness - PMS (Pantone
Matching System) 199 red and black. If the signature is being used against a
dark background color, such as black, the signature may be reproduced using PMS
199

                                       30
<PAGE>

red and white. The screen, camera swish and base are always red and the camera
eye and logotype are always the same color - either black or white.
Additionally, it is preferred that actual spot color (PMS 199) be used to
reproduce the red color of the corporate signature. If only process colors
(CMYK) are available, the Pantone-certified formula for PMS 199 red is
100%M/65%Y.

The corporate signature may also be produced using one color. This is
recommended when size or printing technique may result in unclear reproduction
or use of the wrong PMS color. Permitted options include all black or all white
reversed out of a dark background; in a neutral color such as silver or gold; or
tone-on-tone effects achieved through the use of varnishes or embossing. Never
reproduce the signature in any color or combination other than those specified
here.

                                       31
<PAGE>

                                  EXHIBIT 3 -
                                  ---------

              LICENSE PERMITTING USE OF THE TECHNICAL INFORMATION
              ---------------------------------------------------

License Granting Accord the right to include PictureTel Features. The parties
will mutually agree upon the terms of license within 45 days of the Effective
Date.

                                       32
<PAGE>

EXHIBIT 4 - PRICE LIST
---------   ----------

<TABLE>
<CAPTION>

                                             PictureTel Price List
                                                                                                                  Unit     Disc
Part Number   Item                             Description                                                        Price    Class
<S>           <C>                   <C>                                                                           <C>      <C>

Base Units

SYS0152        Base Unit-16;Rack        16-slot chassis with control unit                                          $22,300    A
PWR0549        Power Supply             supports 320W (approximately 9 modules)                                    $ 2,300    D
ASY0182        Control Unit             performs control functions for a single chassis                            $12,000    A

Hardware

BRD0898        Video/MUX-8              for initial 8 sites; module supports 8 sites at up to
                                        768 kbps or 4 sites at T1/E1                                               $10,900    A
BRD0445        Video/MUX-16             supports 16 sites at up to 384 kbps, 8 sites at
                                        448-768 kbps or 4 sites at T1/E1                                           $17,000    A
KIT1086        N/I T1-2                 supports up to 2 T1 PRI or Leased Line connections                         $ 8,400    A
KIT1085        N/I E1-2                 supports up to 2 E1 PRI or Leased Line connections                         $ 8,400    A
KIT1155        NET-2 PRI**              supports up to 2 PRI or Leased Line connections                            $ 8,400    A
KIT1156        NET-4 PRI**              supports up to 4 PRI or Leased Line connections                            $16,000    A
KIT1157        NET-8 PRI**              supports up to 8 PRI or Leased Line connections                            $28,000    A
KIT1423        NET-8 Leased             supports up to 8 Leased Line connections                                   $15,000    A
KIT1338        MPI - 4 Module**         supports up to 4 V.35, RS449, RS366 or EIA-530 connections                 $ 6,000    A
KIT1337        MPI - 8 Module**         supports up to 8 V.35, RS449, RS366 or EIA-530 connections                 $12,000    A
CON2012        V.35 Adapter             V.35 physical interface adapter mini-cable                                 $     0    D
CON2013        RS-530 Adapter           RS-530 physical interface adapter mini-cable                               $     0    D
CBL1357        1M MPI Cable             Cable connecting the MPI module with MPI Box, up to
                                        4 cables per Box                                                           $     0    D
CBL2010        5M MPI Cable             Cable connecting the MPI module with MPI Box, up to
                                        4 cables per Box                                                           $     0    D
KIT2010        MPI-8 Box                supports up to 16 RS-449 serial connections + 16 RS-366
                                        dialing ports                                                              $     0    D
KIT1158        ATM 25 Mbps              supports up to 60 B channels of ISDN over ATM                              $15,000    B
KIT1159        ATM 155 Mbps             supports up to 120 B channels of ISDN over ATM                             $30,000    B
KIT1160        MG323                    supports up to 12 H.323 sites at up to 384 Kbps                            $15,000    A
BRD1046        Audio Module - 12        supports up to 12 sites                                                    $15,700    A
KIT1109        Greet & Guide Package    h/w for one audio module, operator software + upgrade
                                        price for installed MCUs                                                   $20,000    A
SYS1246        TTCM-4                   Touch Tone Conference Management server; 4 ports                           $18,000    B
SYS1247        TTCM-8                   Touch Tone Conference Management server; 8 ports                           $30,000    B
SYS1248        TTCM-16                  Touch Tone Conference Management server; 16 ports                          $55,000    B
BRD0899        T.120 Module - 12        supports T.120 for up to 12 (H.320/H.321) sites                            $ 9,300    A
BRD0537        TX/CP Mod - 6            supports continuous presence and/or transcoding
                                        for up to 6 sites                                                          $18,000    A
BRD0630        TX/CP Mod - 12           supports continuous presence and/or transcoding
                                        for up to 12 sites                                                         $36,000    A
Software

SWL0697        H.320/ATM Ports 1-8      Port License for 1-8 H.320 or ATM sites                                   No Charge   A
SWL0698        H.320/ATM Ports 9-16     Port License for 1-16 H.320 or ATM sites                                   $30,000    A
SWL0699        H.320/ATM Ports 17-20    Port License for 1-20 H.320 or ATM sites                                   $65,000    A
SWL0749        H.320/ATM Ports 21-28    Port License for 1-28 H.320 or ATM sites                                   $75,000    A
SWL0700        H.320/ATM Ports add. 4   Per additional 4 H.320 or ATM sites after initial 28                       $10,000    A
</TABLE>

                                       33
<PAGE>

<TABLE>
<CAPTION>

                                                                                                                  Unit     Disc
Part Number   Item                             Description                                                        Price    Class
<S>           <C>                      <C>                                                                        <C>      <C>
SWL0901       MGC-Manager              Includes scheduler, conference manager, CDR and full
                                       MCU resource display. Accessible via modem, RS-232 direct
                                       line, LAN or remote Internet.                                              No Charge  A

SWL0701       BONDING License-8        for initial 8 sites                                                        $13,500    A
SWL0702       BONDING License-16       per 16 sites                                                               $21,000    A
SWL0703       T.120 (H.320) License    License per T.120 (H.320/H321) site                                        $   830    A
SWL0704       Cont. Pres. Lic. - 6     software license per 6 sites of H.320/H.321 Continuous
                                       Presence                                                                   $ 5,000    A
SWL0705       TX Lic. - 6              software license per 6 sites of H.320/H.321 Transcoding                    $ 5,000    A
SWL0707       High Bit Rate CP/TC-6    software license per 6 sites of H.320/H.321 CP and TC
                                       at rates up to E1                                                          $ 5,000    D
SWL0900       SDK-API                  Software Developers' Kit - Application Programming
                                       Interface: a programming environment for creating specific
                                       software applications for the MCU.                                         $ 8,000    D

SWL0706       Operator workstation     per station; requires Win95, Win98 or Win NT PC,
              license                  at least 16MB RAM, 30MB free disk space, Ethernet card,
                                       3.5" floppy drive or CD ROM.                                               $   450    A

               Shipping includes shipping, insurance & handling; Delivered Duty Unpaid (DDU)

               MGC-100                 Chassis and Cards each)                                                   $ 1,600    D
               Functional Modules      1 - 2 Modules (each shipment)                                             $   150    D
               Functional Modules      3 to 5 Modules (each shipment)                                            $   200    D
               Control Module          1  Module (each shipment)                                                 $   200    D
               Power Supply            1 Supply (each shipment)                                                  $   200    D
</TABLE>

                        Discount Classes:  A = [***]
                                           B = [***]
                                           D = [***]

                     **  MPI 8 availability - Q1 '00
                         NET2/4/8 is currently in beta; homologation started

---------------------------
*** Omitted information is the subject of a request for confidential treatment
pursuant to Rule 406 under the Securities Act of 1933 and has been filed
separately with the Securities and Exchange Commission.

                                       34
<PAGE>

                                   EXHIBIT 5

                                   DISCOUNTS

1.  Discount

PictureTel's purchases of the Products listed in Exhibit  1 will be eligible for
a Discount of [***] off the OEM Product List Price based on the following
schedule:  A = [***], B = [***], D = [***].

2.  Trade-In Discount

             TRADE-IN PROGRAM FOR MONTAGE AND PRISM TO PRELUDE MCU
             -----------------------------------------------------

        Configuration**       List        [***]         [***]
                             Price      PictureTel     Trade-In
                                         Discount      Discount
      Voice Switching Only
      12 @ 128Kbps               $ 96,150       [***]         [***]
      16 @ 128Kbps               $111,850       [***]         [***]
      24 @ 128Kbps               $181,450       [***]         [***]
      32 @ 128Kbps               $207,150       [***]         [***]
      36 @ 128Kbps               $234,150       [***]         [***]
      48 @ 128Kbps               $291,850       [***]         [***]

      12 @ 384Kbps w/ Bonding    $124,750       [***]         [***]
      16 @ 384Kbps w/ Bonding    $152,450       [***]         [***]
      24 @ 384Kbps w/ Bonding    $235,450       [***]         [***]
      32 @ 384Kbps w/ Bonding    $269,550       [***]         [***]
      36 @ 384Kbps w/ Bonding    $317,550       [***]         [***]
      48 @ 384Kbps w/ Bonding    $382,850       [***]         [***]

      CP/TX -
      12 @ 128Kbps -  6          $124,150       [***]         [***]
      12 @ 128Kbps - 12          $152,150       [***]         [***]
      16 @ 128Kbps - 12          $167,850       [***]         [***]
      16 @ 128Kbps - 18          $195,850       [***]         [***]
      24 @ 128Kbps - 24          $295,750       [***]         [***]
      32 @ 128Kbps - 30          $377,450       [***]         [***]
      36 @ 128Kbps - 24          $348,450       [***]         [***]
      36 @ 128Kbps - 36          $404,450       [***]         [***]
      48 @ 128Kbps - 48          $520,450       [***]         [***]

-----------------
*** Omitted information is the subject of a request for confidential treatment
pursuant to Rule 406 under the Securities Act of 1933 and has been filed
separately with the Securities and Exchange Commission.

                                       35
<PAGE>

12 @ 384Kbps-Bond -  6       $152,750       [***]         [***]
12 @ 384Kbps-Bond - 12       $180,570       [***]         [***]
16 @ 384Kbps-Bond - 12       $208,450       [***]         [***]
16 @ 384Kbps-Bond - 18       $236,450       [***]         [***]
24 @ 384Kbps-Bond - 24       $349,750       [***]         [***]
32 @ 384Kbps-Bond - 24       $383,850       [***]         [***]
32 @ 384Kbps-Bond - 32       $439,850       [***]         [***]
36 @ 384Kbps-Bond - 24       $431,850       [***]         [***]
36 @ 384Kbps-Bond - 36       $487,850       [***]         [***]
48 @ 384Kbps w/ Bonding      $583,450       [***]         [***]
     (42 cp/tx)

**  Configurations have non-redundant power. Power Supplies are not
discountable.

Highlighted Continuous Presence configurations recommended for selected port
counts.

48+ port configurations are available for trade-in but will be configured
case-by-case.

 .  Program will run for an initial period of 6 months renewable for another 6
   months by mutual written agreement of the parties.
 .  Any Montage, Prism or M-8000 MCU can be traded-in for a Accord MCU of 12
   ports or more.
 .  A Trade-In Discount of [***] applies to the entire MCU purchased under the
   Trade-In program based on the discount schedule above.
 .  The P.O. must reference the serial # of the Montage/Prism being traded-in.
   The old unit must be returned to PictureTel under the RMA process within 45
   days of the shipment of the Accord unit.

-----------------------
*** Omitted information is the subject of a request for confidential treatment
pursuant to Rule 406 under the Securities Act of 1933 and has been filed
separately with the Securities and Exchange Commission.

                                       36
<PAGE>

                                   EXHIBIT 6
                              SERVICE AND SUPPORT

                         SECTION I - SUPPORT SERVICES

     Accord shall provide to PictureTel the following Product support services
     and materials sufficient to allow PictureTel to provide similar services
     directly to its end users or through PictureTel's authorized service and
     product reseller channels, including, without limitation, OEMs, VARs,
     Service Providers, resellers, distributors and channels ("Support
     Services").

1.0  PHONE SUPPORT
     -------------

     Accord will maintain telephone support that will be staffed by qualified
     support engineers Monday through Friday, except Accord holidays, between
     the hours of 8:00 a.m. and 6:00 p.m., Eastern Standard Time. Per mutual
     agreement, both parties will continue to work off-hours and provide on-site
     support as needed during critical situations. Accord will provide to
     PictureTel, Web Site Access for PictureTel support personnel at all times
     in order for PictureTel to be able to communicate with Accord 24 hours per
     day with respect to maintenance and support of the PictureTel Product.

2.0  TRAINING
     --------

     a.  Accord agrees to provide an initial technical training class to
         PictureTel personnel at PictureTel facilities in Andover and Slough
         free of charge, not to exceed ten (10) students. For initial training
         at other locations, Accord will invoice PictureTel for travel and
         expenses only.

     b.  In addition, training of the types described within the advertised
         offerings of Accord shall be provided pursuant to Accord's then current
         Price List to PictureTel personnel at Accord facilities.

     c.  Accord will provide all current and future training materials,
         including student workbooks, pertinent to the instruction of the Accord
         Products as described above, pursuant to Accord's then current Price
         List.

     d.  For each Accord Product included in this Agreement, Accord will assist
         PictureTel in the development of an audio/visual tape that will
         instruct PictureTel Field Service Engineers in the installation and
         maintenance of such Products.

     e.  Accord shall provide to PictureTel, a person technically knowledgeable
         in the installation and maintenance for the specific Product subject
         for a period not to exceed 3 working days, at no charge. PictureTel
         agrees to pay travel incurred by such Accord personnel while
         developing training material at PictureTel  facilities.

3.0  DOCUMENTATION
     -------------

     Accord will provide, in both a pre-printed and fully packaged and mutually
     agreed upon electronic form, one documentation set for Support Services
     free of any additional charges. Accord grants to

                                       37
<PAGE>

     PictureTel a worldwide, royalty-free right to copy, develop, modify,
     translate and distribute all documentation, including Products, service
     and training materials, and PictureTel will own all such modified copies of
     documentation, except that Accord will at all times maintain all right,
     title and interest in any copyright, trademark, service mark or other
     intellectual property.

     a.  In addition, Accord will provide ten (10) sets of this documentation,
         at no charge, to PictureTel Corporate Support personnel to be used as
         support reference material. This material should be shipped to:

         PictureTel Corporation
         Distance Learning Center
         Training Coordinator
         100 Minuteman Road
         Andover, MA 01810

     b.  Accord agrees to provide PictureTel with a reproduction license for
         duplication of existent or developed material to be used for training,
         maintenance and support purposes only and not for resale.

     c.  Accord agrees to provide PictureTel Enterprise Service Division with
         copies of all Field Change Notices ("FCO") and technical service
         information within thirty (30) days of publication by Accord.

     d.  FCO notification will occur between Accord and PictureTel in cases of
         service safety, defective design and other pertinent changes of form,
         fit, or functionality and/or compatibility. These FCO's will include
         affected part description, effectively date and notice of applicability
         to PictureTel purchased parts, not excluding installation and
         verification procedures and any pertinent changes to diagnostic
         software and/or procedures if applicable. All such information should
         be mailed to:

         PictureTel Corporation
         100 Minuteman Road
         Andover, MA 01810
         Attn:

     e.  Training material mutually developed by both Accord and PictureTel is
         to be used for the training of Accord and PictureTel personnel ONLY and
         is not for sale or distribution to third parties without the express
         written consent of both parties

4.0  HARDWARE SUPPORT
     ----------------

4.1  DIAGNOSTICS
     -----------

     At no charge to PictureTel, Accord shall make available all diagnostics and
     remote access tools which would enable PictureTel to diagnose problems down
     to the Field Replaceable Unit ("FRU") level. PictureTel and its service
     channels define specify your channels shall have unlimited right to use
     such tools internally within their organizations in support of all
     PictureTel and its channel customers, products or services.

4.2  ENGINEERING CHANGE ORDERS
     -------------------------

     After a Product Engineering Change Order ("ECO") implementing any Upgrade
     or Update [or hardware ECO] is approved by Accord using its then-current
     ECO process, a copy of the ECO

                                       38
<PAGE>

     will be sent to PictureTel Engineering using 1 day overnight delivery.
     PictureTel has ten (10) working days from the date of receipt to review and
     accept or reject the ECO. No response by PictureTel within 10 working days
     will be considered an ECO acceptance. If PictureTel rejects the ECO within
     the 10 working day review period, Accord will continue to ship Product to
     PictureTel at the previous ECO level until the ECO is accepted by
     PictureTel. Accord will bear reasonable expense for all hardware, and
     software needed to implement all safety related ECO's.

4.3  FIELD CHANGE ORDERS
     -------------------

     a.  All FCO's released by Accord will be supplied to PictureTel at no
         charge.

     b.  All safety related FCO's are to be provided to PictureTel WITHIN SEVEN
         (7) DAYS OF RELEASE BY Accord at no charge.

     c.  All FCO's should be provided within thirty (30) days of publication.

     d.  Material and labor costs of FCO's that address safety of servicing or
         design flaws to bring the affected Product to a functioning level per
         its design specification are to be borne by Accord, unless otherwise
         agreed to in writing by the parties.

     e.  In addition, FCO's that affect purchased stock, consigned field kits or
         purchased field material are to be implemented by Accord via a mutually
         agreed upon update process at no charge to PictureTel, unless otherwise
         agreed to in writing by the parties.

5.0  SOFTWARE SUPPORT
     ----------------

     For purposes of this Section, the term "Update" means minor enhancements,
     corrections or modifications to any software included in or with the
     Products ("Software").  The term "Upgrade" means Software containing major
     new functionality or capabilities.

     PictureTel will provide first and second level telephone support for
     Products. PictureTel will attempt to resolve all support issues or errors.
     If PictureTel cannot resolve the support issue or error, Accord will
     provide central site assistance to PictureTel to resolve such support
     issues and/or errors as well as quality performance issues through Accord's
     support hot-line.  Accord agrees to correct errors, defects and
     malfunctions in Products and in all related documentation identified,
     classified and reported to Accord by PictureTel as a software problem
     report ("SPR") in accordance with the following criteria ("Error
     Classification"):

<TABLE>
<CAPTION>

     Error
     Classification      Type               Criteria
     <S>                 <C>                <C>

     X                   Fatal Error        A critical bug that crashes the
                                            system, causes the system to hang
                                            or destroys data

     A                   Major Error        Major Function does not work and
                                            an easy workaround is not possible

     B                   Function Error     Function does not work and an easy
                                            workaround is available

     C                   Minor Error        Minor problem or nuisance in the
                                            Product that does not inhibit
                                            progress

     D                   Documentation      Documentation error or change
                         Error              request
</TABLE>

                                       39
<PAGE>

     Upon Accord's receipt of an SPR from PictureTel's support personnel that
     must included the following: Unit S/N, Configuration including all H/W
     revision and serial number, faults file, CDR files, Relevant trace file,
     end points type vendor name, model s/w version, writing information
     describing the scenario and what was done before the failure happened,
     network diagram, procedure to reproduce the problem, Accord will track the
     SPR using tracking reference numbers and will correct the SPR within the
     time frames outlined below According to the type of Error Classification
     assigned by PictureTel.

<TABLE>
<CAPTION>
       PictureTel
     Classification                          Accord Response
     --------------  ------------------------------------------------------------------
                     1st Level             2nd Level                  Final Level
     <S>             <C>              <C>                         <C>
            X         4 Hours         Constant effort until       Constant effort until
                                        relief provided             relief provided
            A          2 Days               10 Days                     45 Days
            B          5 Days               45 Days                     90 Days
            C         30 Days               90 Days                As mutually agreed
            D         30 Days               90 Days                As mutually agreed
</TABLE>

     A "Day" means a business day.

<TABLE>
<CAPTION>
        Response
         Level                                        Description
        --------         ----------------------------------------------------------------------
       <S>               <C>
       1st Level:        Confirmation of SPR.
       2nd Level:        workaround, temporary fix conditional to customer awareness regarding
                           the testing and the stability of the software,
     Final Level:        Final Fix, Update or new Release including updated documentation.
</TABLE>

     A "Final Fix" will mean an official fix whereby Accord has conducted tests
     and performance measurements on the finally corrected Product that
     sufficiently demonstrate that each reproducible reported error is remedied
     and, as remedied, continues to meet the applicable functional and
     performance requirements, free of the reported error.  Accord will deliver
     the results of such tests and performance measurements to PictureTel along
     with the Final Fix, Update or Release.  Accord will make all corrections to
     both the source code materials and the object code.  Object code only
     corrections are prohibited. Accord will supply a master (object code) copy
     of the final fix, with rights to PictureTel to reproduce and distribute.

     Accord shall provide error corrections on each Major Release of Software
     for the longer of (i) 1.5 years from the initial release date, or (ii) the
     release of two succeeding Major releases.

     Accord will provide a monthly or more frequent, written status report on
     all outstanding SPRs and/or provide electronic access to such data at no
     charge to PictureTel.  Also at no charge, Accord shall provide PictureTel
     with electronic access to Accord's problem database.

     Accord shall prepare and release without charge to PictureTel bug fixes and
     error corrections similar to those provided to users of or incorporated
     into the Standard Version for the Product.

                                       40
<PAGE>

                        SECTION II - LOGISTIC SERVICES

     Accord will sell or otherwise make spares available for Products for a
     period of 5 years and will sell or otherwise make Updates/Upgrades
     available for a period of five 5 years (i) after termination or expiration
     of this Agreement, or (ii) after discontinuance of a Product. Accord will
     notify PictureTel one year prior to any discontinuance of any Product.

1.0  INVOICING/PAYMENT
     -----------------

     Fees for Accord Support Services shall be as set forth in Attachment A.

     Invoices submitted to Logistics/Planning should contain at least the
     following information: Repair cost/unit, PictureTel part number, serial
     number, RMA number (if applicable), and PictureTel P.O. number.

     Invoices are due and payable 30 days following date of invoice.

2.0  REPAIRS
     -------

     For Product which is covered by the repair provisions set forth in Addendum
     A, Accord shall negotiate in good faith repair cost structure in compliance
     to a fair market value.  Accord shall provide repair of parts and
     components which Accord generally considers repairable, not to exceed 20%
     of PictureTel's Spare price.  Accord shall repair such parts and components
     at Accord's plant and return to such location defined by PictureTel. Accord
     shall make available standard repair pricing and overnight exchange.
     Shipment and components may contain recycled, refurbished and
     remanufactured parts which are equivalent to new parts.  Replaced parts or
     components shall become the property of PictureTel.  Accord shall use its
     best efforts to deliver on time repair performance at 98% level per
     quarter[see section 8.0 below].  Accord will provide repaired material
     According to the prescribed weekly PictureTel schedule of repair parts
     needs and quantities.  PictureTel may at anytime adjust the forecast
     requirements.  All repaired returns must conform to U.S., and International
     specifications.

     If applicable, defective Product will be returned to Accord via a return
     material authorization process ("RMA") as set forth in Section 3.0.

4.0  DEAD ON ARRIVAL (DOA)
     ---------------------

     At no additional charge to PictureTel, Accord shall provide overnight
     replacement of all Products, parts or components that are delivered Dead on
     Arrival ("DOA") in the America and EMEIA and as soon as is practical in
     AP/Japan.  In the event that the rate of DOAs is unacceptable, Accord will
     work with PictureTel to eliminate the cause of such DOA.

                                       41
<PAGE>

5.0  FREIGHT AND SHIPMENT
     --------------------

     Freight charges for repair activities are paid by the sender.

     Accord will generate a packing list for returning repaired Product
     referencing the applicable RMA number and PictureTel Purchase Order Number.
     Each repaired part will be listed as a separate line item that includes
     part number and serial number.

     Accord will at PictureTel's request, ship repaired Product direct to a
     PictureTel, and will provide tracking number to PictureTel when available.

     Accord wills, at PictureTel's request, accept product for repair direct
     from an end user.

6.0  REPORTING
     ---------

     PictureTel collects and analyzes repair information using data collected
     from Repair Tags and the actual repair.  This is useful for detecting
     trends and long term failure histories for specific Products.  PictureTel
     will provide Accord with a spreadsheet format of specific information that
     should be collected for each repair and Accord is expected to input this
     data as each repair is completed.  Accord will then forward this
     information to PictureTel Logistics and Planning on a quarterly basis. As
     a minimum, the following information will be collected:

     a) Part Number, Serial Number, and Repair Tag RMA Number
     b) Failure Code and Repair Code (includes DOA, No Problem Found ("NPF")
        codes, and Warranty codes)
     c) Component Designator of replaced components
     d) Received Date and Completed Date

7.0  QUALITY
     -------

     A DOA rate occurrence in excess of 1% of a month's return shipments as
     reported by PictureTel will result in an immediate proactive improvement
     plan to reduce the excess back to within the specified goal of 1% on the
     part of Accord.

     Material repaired by Accord that is received DOA will result in no repair
     charge to PictureTel for such repair.

     PictureTel will implement a prescreen process for the Product that
     minimizes returns to Accord of only failed units.

     Accord will strive to meet on time repair goals at a 98% rate or better per
     quarter.

8.0  METRICS
     -------

     Accord and PictureTel will establish metrics suitable for the Accord
     Products during the first six months of the Agreement.

9.0  SERVICE CONTACT(S)
     ------------------

     Accord and PictureTel will provide the name(s), title, and telephone
     number(s) of a designated point(s) of contact responsible for Accord and
     PictureTel Product(s).

                                       42
<PAGE>

                                 ATTACHMENT A

PictureTel will enter into a support agreement with Accord for only those
systems that have a support agreement purchased from a PictureTel customer or a
reseller. The price for such support agreements shall be 5.5% per year of
Accord's then current List Price of each system under a support agreement.
PictureTel may opt to pay a mutually agreed upon fee for all systems per year,
whereby every system purchased by PictureTel would be covered. Pricing is in
effect for one (1) year from the signing of the Agreement, after which both
parties shall renegotiate the pricing.

North America and European Regions

For covered systems:

 .  Accord will provide Tier 3 and Tier 4 Technical support to PictureTel, who
   will perform Tier 1 and Tier 2 support for its customers.

 .  Accord will drop ship replacement parts (same day shipment if the order is
   placed prior to 7:00 PM Eastern Standard Time in North America or the
   equivalent in the United Kingdom) to the customer site for arrival by 10:30
   AM the next business day (Priority One), with prepaid return shipment.
   PictureTel will be responsible for returning the replaced part to Accord.

 .  Accord will have materials in stock in order to deliver parts the next day on
   average of 95% of the time.

 .  Software updates and upgrades are included.

For systems not covered by this Agreement, all work will be performed ala carte,
and billed per the spares, repair, installation, training and service fee
schedule below.

Asia Pacific/Japan Regions (Rest of the World)

For covered systems:

 .  Accord will provide Tier 3 and Tier 4 Technical support to PictureTel, who
   will perform Tier 1 and Tier 2 support for it's customers.

 .  Accord will consign spare parts to PictureTel for Asia Pacific and Japan
   based on Accord's standard spare policy for covered systems. Accord will make
   materials available to PictureTel to deliver next day delivery on an average
   of 95% of the time, based on usage patterns provided by PictureTel. Depending
   on the locations in which the units are sold, PictureTel may be required to
   place parts in 3 or more locations, e.g., Singapore, Australia and Japan.

 .  PictureTel will drop ship replacement parts to the customer site. PictureTel
   will be responsible for returning the replaced part to Accord.

 .  Accord will repair the failed unit and return it to PictureTel within 15 days
   of receipt by Accord. In the event that an order is placed upon stock that
   has been depleted, Accord will use its best efforts to make an emergency drop
   shipment.

 .  Software updates and upgrades are included.

                                       43
<PAGE>

For systems not covered by this Agreement, all work will be performed ala carte,
and billed per the spares, repair, installation, training and service fee
schedule below.

The following is to be mutually agreed to by the parties within 30 days of the
Effective Date:

* Logistics Material Handling and Standard Operating Process (SOP) to cover the
  details of parts ordering and RMA contacts and locations.

<TABLE>
<CAPTION>
               B.  PictureTel Spares Prices
--------------------------------------------------------------
<S>                                       <C>
Item                                          Spare Price
--------------------------------------------------------------
Chassis                                          [***]
--------------------------------------------------------------
Control Unit                                     [***]
--------------------------------------------------------------
Power Supply                                     [***]
--------------------------------------------------------------
Video/MUX module                                 [***]
--------------------------------------------------------------
N/I T1 module                                    [***]
--------------------------------------------------------------
N/I E1 module                                    [***]
--------------------------------------------------------------
NET-8 Leased                                     [***]
--------------------------------------------------------------
ATM-25 Mbps module                               [***]
--------------------------------------------------------------
ATM-155 Mbps module                              [***]
--------------------------------------------------------------
Audio Module                                     [***]
--------------------------------------------------------------
Music and Message Board                          [***]
--------------------------------------------------------------
T.120 Module                                     [***]
--------------------------------------------------------------
Transcoding/CP Module - 6                        [***]
--------------------------------------------------------------
Transcoding/CP Module - 12                       [***]
--------------------------------------------------------------
MG323                                            [***]
--------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
                   PictureTel Repair Prices
--------------------------------------------------------------
<S>                                       <C>
Item                                          Repair Price
--------------------------------------------------------------
Control Unit                                     [***]
--------------------------------------------------------------
Power Supply                                     [***]
--------------------------------------------------------------
Video/MUX module                                 [***]
--------------------------------------------------------------
N/I T1 module                                    [***]
--------------------------------------------------------------
N/I E1 module                                    [***]
--------------------------------------------------------------
NET-8 Leased                                     [***]
--------------------------------------------------------------
ATM-25 Mbps module                               [***]
--------------------------------------------------------------
ATM-155 Mbps module                              [***]
--------------------------------------------------------------
Audio Module                                     [***]
--------------------------------------------------------------
Music and Message Board                          [***]
--------------------------------------------------------------
T.120 Module                                     [***]
--------------------------------------------------------------
Transcoding/CP Module - 6                        [***]
--------------------------------------------------------------
Transcoding/CP Module - 12                       [***]
--------------------------------------------------------------
MG323                                            [***]
--------------------------------------------------------------
</TABLE>

------------
*** Omitted information is the subject of a request for confidential treatment
pursuant to Rule 406 under the Securities Act of 1933 and has been filed
separately with the Securities and Exchange Commission.

                                       44
<PAGE>

                              Installation Prices

<TABLE>
<CAPTION>

        II.  Installation and Training                      III.  Price
------------------------------------------------------------------------------
<S>                                                             <C>
1 day installation* + 2 days on-site Basic Course               [***]
------------------------------------------------------------------------------
Installation only                                               [***]
------------------------------------------------------------------------------
</TABLE>

* Installation duration and prices may vary based on site requirements.

                          Training Courses and Prices

<TABLE>
<CAPTION>
IV. Name                   V. Content                VI. Audience      VII. Duration & Price     VIII. Prerequisites
--------------------------------------------------------------------------------------------------------------------
<S>                        <C>                       <C>               <C>                       <C>
Basic Course:              Scheduling, Conference    Operators and     2 days                    None.
                           Management                Marketing         [***] at Accord* or
                                                     personnel         [***] at customer**
----------------------------------------------------------------------------------------------------------------
Intermediate Course:       Swap modules, Install     Technical         1 day                     Basic course.
                           software updates,         personnel         [***] at Accord* or
                           Modify MCU                                  [***] at customer**
                           configurations
----------------------------------------------------------------------------------------------------------------
Advanced Course:           Install new systems,      Technical         2 days                    Intermediate
                           Provide hot-line and      personnel         [***] at Accord or        course.
                           on-site support for                         [***] at customer**
                           end-users, Administer
                           Basic and Intermediate
                           training to end-users
----------------------------------------------------------------------------------------------------------------
</TABLE>

*  All trainees shall be responsible for their own transportation, meals and
lodging.

** For training courses that take place at Customer's site, Customer shall
provide all necessary training equipment, telecom infrastructure, and a
classroom environment as specified by Accord.  Up to 8 students per session.

                   Individual service charges for customers
              Not covered by support packages or system warranty

<TABLE>
<CAPTION>

            IX. Individual Service                                         X. Charge
-------------------------------------------------------------------------------------------------
<S>                                                               <C>
                                                                  [***]
-------------------------------------------------------------------------------------------------
Telephone hotline support 8AM to 5PM; Monday - Friday             [***] per hour (minimum 1 hour)
-------------------------------------------------------------------------------------------------
Telephone hotline support 8AM to 5PM; Saturday, Sunday and        [***] per hour (minimum 1 hour)
 Holidays
-------------------------------------------------------------------------------------------------
API support                                                       [***] per hour
-------------------------------------------------------------------------------------------------
On-site service                                                   [***} per day + expenses
-------------------------------------------------------------------------------------------------
Module repair service                                             See Repair Schedule
-------------------------------------------------------------------------------------------------
</TABLE>

------------
*** Omitted information is the subject of a request for confidential treatment
pursuant to Rule 406 under the Securities Act of 1933 and has been filed
separately with the Securities and Exchange Commission.

                                       45
<PAGE>

                                   EXHIBIT 7

                                PRODUCT ROADMAP

This exhibit defines the organizational expectations, development plan, and
development process for reselling the Accord product and enhancing that product
with specific additional features.

Organizational Expectations:

1.  PictureTel will provide one (1) technical program manager to provide
    detailed specifications for features, provide technical consulting
    throughout the program on implementing PictureTel proprietary technology,
    facilitate product introduction, and hold periodic reviews. PictureTel will
    involve other appropriate personnel (e.g. engineers, support) as required.

2.  Accord will add engineers to support the PictureTel program. It is estimated
    that an additional 10 - 15 engineers will be required during the development
    period. Accord will deliver PictureTel's required capabilities in the 4
    release development plans shown below.

3.  Accord and PictureTel by mutual agreement may modify the development roadmap
    as the parties move through the development process.

Development Plan:

The following is intended to represent 4 consecutive releases of the Accord
product where Release 1 involves PictureTel reselling the existing Accord
product as is after testing requirements have been met.  For subsequent
releases, Accord will incorporate and test the features listed and deliver the
product on or before the dates indicated.  The features listed in any given
release are to be supported by all Accord products in subsequent releases.

 .  Release 1 - [***]

 .  Release 2 - [***]

 .  Release 3 - [***]

 .  Release 4 - [***]

* Note: Inclusion of these features in the timeframes indicated are on a best
effort basis in accordance with resource expectations indicated above and
Development Process described below.

Development Process:

The Accord program will generally follow the PictureTel's Product Life Cycle
Process (PLCP) Execution Plan (PEP) as described in this section.  The Product
Life Cycle Process has 8 phases, including those described below. The following
outlines the questions that should be asked and answered at each Phase Exit.

Phase 1 - Tactical Concept Development
     What problem are we trying to solve?
     How well does this product solve the problem? How doable is this product?
     How much $ will it cost to make? How much $ will it sell for?
     What is the schedule?
     What are the issues and risks and what are the plans to address them?
------------
*** Omitted information is the subject of a request for confidential treatment
pursuant to Rule 406 under the Securities Act of 1933 and has been filed
separately with the Securities and Exchange Commission.

                                       46
<PAGE>

     S.W.O.T. (Strengths, Weaknesses, Opportunities, and Threats)
     Who else is in this space? How are we distinguished from them?
     What are the critical success factors?
Exit criteria: Execution of this agreement.

Phase 2 - Project Planning
     Revisit all Phase 1 questions
     How are the features described in Phase 1 to be developed?
          Functional specification - See details below.
          Project plan - See details below.
Exit criteria: PictureTel's approval of development specifications supplied by
Accord.

Phase 3 - Project Development
     Revisit all Phase 1 questions
     Beta Planning questions
          What sites are selected?
          Is the plan reviewed and approved?
     Vendor contracts signed?
     Has the team delivered everything in the specs and are they verified and do
     they work?
     Is the team ready to start Phase 4?
          Test cases written?
          Test plans written or revised?
     Exit criteria: PictureTel's approval of the Test Plan (See Exhibit 10)
     supplied by Accord.

Phase 4 - Initial Manufacturing and Beta
     Revisit all Phase 1 questions
     Are all P1 and P2 bugs addressed satisfactorily? Is testing satisfactorily
     complete?
     What are the risks with shipping at this time?
     Exit criteria: PictureTel's approval of Test Results (See Exhibit 10)
     supplied by Accord.

The following specifications must be supplied by Accord and reviewed and
approval by PictureTel for Releases 2-4 described above. PictureTel shall
provide example documents for the specifications and plans indicated above. The
Accord team will use these example documents to develop comparable (e.g.,
specificity, coverage, format) specifications and plans for this program.

  Product Functional Specification
A high-level description of the main product feature set and overall technical
plan.

  - Authored: Accord Program Manager (or designated Accord engineers)
  - Reviewed: PictureTel Program Engineering Manager (or designated PictureTel
    engineers)
  - Note: PictureTel will supply specifications for PictureTel proprietary
    features.

  Engineering Project Plan(s)
Resources, staff assignments, dependencies, and schedule for developing the
product features set.

  - Authored: Accord Program Manager (or designated Accord engineers)
  - Reviewed: PictureTel Program Engineering Manager (or designated PictureTel
    engineers)

Bi-weekly joint engineering meetings will be held to review the status of the
engineering effort.  The following table will be reviewed and updated at each
such meeting.

                                       47
<PAGE>

            TABLE 1: BI-WEEKLY REPORTING FORMAT FOR PRELUDE COMPANY
<TABLE>
<CAPTION>

                                    Responsible      Completion Date      Approval Date
Event                               Individual       Initial/(Actual)     Initial/(Actual)      Status
------------------------------------------------------------------------------------------------------
<S>                                 <C>              <C>                  <C>                   <C>
Release 1 Test Plan
Release 1 BETA
Release 1 FCS

Release 2 Functional Spec
Release 2 Project Plan
Release 2 Test Plan
Release 2 ALPHA
Release 2 BETA
Release 2 FCS

Release 3 Functional Spec
Release 3 Project Plan
Release 3 Test Plan
Release 3 ALPHA
Release 3 BETA
Release 3 FCS

Release 4 Functional Spec
Release 4 Project Plan
Release 4 Test Plan
Release 4 ALPHA
Release 4 BETA
Release 4 FCS
</TABLE>

                              NOTES FOR TABLE 1:

Initial dates are estimates given prior to detailed analysis of the task being
completed. Initial dates, once established, remain unchanged.  Actual dates will
be the projected date of completion at any moment in time until completed.
Completion will be identified in the status section of this reporting memo as
well as "weeks slipped" from original estimates.  Resp. is the person
responsible for completing the task.

Product ALPHA is defined when all features have been implemented by engineering
but not fully tested.

Product BETA is defined when product is deemed ready for customer testing.

Product FCS (First Customer Ship) is defined when the product has been approved
by both the PictureTel and Accord engineering teams and is "quality ready to
ship"  based on Engineering quality metrics and Manufacturing process
readiness/validation completion.

Program Reviews

Either party may request an in-depth program review.  The review shall take
place within 14 days of the request.  A new request shall not be issued within 2
months of a previous request by the same party.

                                       48
<PAGE>

                                  EXHIBIT 8 -

                         SUPPLIER QUALITY REQUIREMENTS

1.   Purpose

     This document outlines all of the generic quality objectives and
     requirements for product and process that should be achieved by Accord
     throughout the course of development and production of any PictureTel
     product. It however does not represent the total quality requirements of
     any particular PictureTel program/product as manufactured by Accord.

     This document is a living document and will be incorporated and represented
     in the Distribution Agreement with Accord. As such it is subject to agreed
     upon changes during the course of the development and production of
     PictureTel products by both PictureTel and Accord.

2.   Quality Goals and Metrics

     The PictureTel Quality level of the Accord product will be measured through
     the use of the following metrics:

     .  Perfect Order Fulfillment Rate - PictureTel to supply a reasonable
        definition of a "perfect order" within 30 days of the Effective Date
     .  Hardware/Software Installation DOA Rate

3.   Product Acceptance

     A.  After a Product Engineering Change Order ("ECO") implementing any
         Upgrade or Update [or hardware ECO] is approved by Accord using its
         then-current ECO process, a copy of the ECO will be sent to PictureTel
         Engineering using 1 day overnight delivery. PictureTel has ten (10)
         working days from the date of receipt to review and accept or reject
         the ECO. No response by PictureTel within 10 working days will be
         considered an ECO acceptance. If PictureTel rejects the ECO within the
         10 working day review period, Accord will continue to ship Product to
         PictureTel at the previous ECO level until the ECO is accepted by
         PictureTel. Accord will bear reasonable expense for all hardware, and
         software needed to implement all safety related ECO's.

     B.  PictureTel will not accept product that has critical defects. (see
         section IV)

4.   Defect Classification

A)   Critical

     1)  Safety, EMC or Telecommunications regulatory violations
     2)  Epidemic failures preventing the product from being used for its
         intended purpose requiring product to be recalled or placed on stop
         ship.

B)   Major

     1)  Failures preventing the product from being used for its intended
         purpose.

                                       49
<PAGE>

     2)  Incipient process or component defects resulting in a 5 percent or
         greater field failure rate within one year after delivery to
         PictureTel.

C) Minor

     1)  Cosmetic or workmanship errors that do not prevent the unit from
         performing its intended function but require repair to meet
         requirements.

                                       50
<PAGE>

5.   Quality Reporting

     A.  Accord will collect and analyze repair information of PictureTel
         product using data collected from repair tags and related information
         to detect trends and long term failure histories for specific products.
         This data should be used to monitor trends and develop Corrective
         Action plans for identified problems.
     B.  Accord will record the RMA number, part number, revision, serial
         number, defect found and root cause analysis of all PictureTel RMA
         material.
     C.  PictureTel may request the failure data on all RMA material.
     D.  Repair tags or repair paperwork shall not accompany any repair product
         that is returned to PictureTel from Accord.

6.   Dead On Arrival (DOA)

     A.  A DOA is defined as any failure within the first 30 days after product
         installation within the warranty period of the product. A DOA rate
         occurrence in excess of 1% as reported by PictureTel will result in an
         immediate duty for Accord to create and implement a proactive
         improvement and corrective action plan.
     B.  The PictureTel DOA rate is based upon a 3 month rolling average of
         units installed into PictureTel customer sites computed against the
         failed installations for that period.
     C.  DOA product returned to Accord is considered the property of Accord. It
         is assumed a new replacement has been sent to PictureTel to satisfy the
         DOA.

7.   Corrective Action

     A.  Formal Corrective Action may be requested by PictureTel and Accord will
         be expected to respond within 10 working days with a written corrective
         action plan.
     B.  All corrective actions initiated by PictureTel will be documented and
         monitored through PictureTel's Corrective Action Request database.

8.   Request for Intervention (RFI)

     A.  A RFI is defined as a request for intervention. This request is
         necessary to escalate the severity of a quality issue with the
         performance of the Accord product. Accord is expected to respond within
         2 working days with a written corrective action plan.
     B.  Accord shall use due diligence in disclosing known hardware and
         software quality issues within the Accord product.

9.   Serialization, and Tracking [CHECKING WITH ISRAEL]

     A.  Accord shall part number and serialize each board and chassis that is
         orderable for PictureTel.
     B.  Accord will record and track the part number and serial number of all
         board and chassis that are orderable for PictureTel.

10.  Bar Code Labeling

It is PictureTel's intent that the following be accomplished. The parties will
agree within 30 days as to the appropriate method for accomplishing the bar
coding requirements:

     A.  Accord shall label each box shipped with a Bar Code label that reflects
         the PictureTel part number.
     B.  Bar Code labeling procedures will be provided to Accord Manufacturing.

                                       51
<PAGE>

                                 EXHIBIT NINE

                     ACCORD MARKETING/PRODUCT LAUNCH PLAN

COMMUNICATIONS PLAN
1.  Press release
2.  1-hour video briefing for WW PictureTel employees
2.  Marketing Bulletin (WW internal)
4.  Channel Newsletter (WW channels)
5.  Mailing to PictureTel User Group customers
6.  Briefings for selected distribution partners
7.  Briefings for federal customers
8.  Briefings for selected strategic partners

PRODUCT LAUNCH
1.  WW Product Launch
 .   Press release
 .   Analyst and press briefings
 .   Electronic Launch Kit to include:
    Product collateral
    Sales presentation
    Form channel letter for installed base
    Product Information Bulletin
    Pricing and ordering
    Trade-in program overview
    Competitive overview
    Q&A
    Contact List
 .   Readiness of the PictureTel demonstration centers

SALES TRAINING PLAN
1.  PictureTel Learning Channel 2-hour internal/channel sessions to include:
 .   Messaging/positioning
 .   Servers strategy
 .   Product features and differentiation
 .   Product road-map
 .   Configurations and packaging
 .   Automated quoting tool
 .   Competition
 .   Sales tools
 .   Marketing initiatives, i.e. letter to installed base, seminars, road-show,
    etc.
 .   Available support organization

2.  WW Systems Engineer Training
 .   Series of videoconferencing sessions for each region, i.e. Americas, EMEIA
    and APJ.
 .   Hands-on product training at Accord regional offices

3.  Streamed broadcast sessions

                                       52
<PAGE>

                                 EXHIBIT 10 -

                       SQA TESTING AND INTEROPERABILITY

For each release, Accord will perform all testing of the MCU product.
PictureTel will review any testing specifications, generate test specifications
for new features, and review SQA and interoperability/compatibility reports.

                             I.  Development Phase

 .  PictureTel shall review the current MCU SQA test plans and specifications.
   They will be received by PictureTel no later than 14 days from the signing of
   the contract.
 .  Any concerns, comments about the specifications will be made within 30 days
   of the receipt of the specifications/test plans.
 .  For each incremental release, PictureTel shall receive updated SQA test plans
   and specifications, detailing any additional testing procedures required for
   validation of the new features. The documents must be received at least 14
   days before the start of the testing phase.
 .  Any concerns, comments about the additional information will be made within
   14 days of the receipt of the specifications/test plans.

                              II.  Testing Phase

 .  PictureTel and Accord shall exchange documents detailing defect
   classification, so that there is little ambiguity involved when describing
   defect tracking and resolution. Accord shall also provide a document
   describing the bug tracking process which is used for the MCU. These
   documents will be exchanged no later than 14 days from the signing of the
   contract.
 .  PictureTel and Accord shall be involved in weekly (or otherwise agreed upon
   interval) bug meetings, once testing has begun.
 .  According to PictureTel criteria, all X and A defects (as defined in Exhibit
   6) must be addressed by Accord before shipping the product, otherwise the
   product will not be accepted.

                III.  Interoperability and Compatibility Phase

Interoperability is defined as interworking with non-PictureTel products.
Compatibility is defined as interworking with PictureTel products

 .  Accord will be responsible for all Interoperability and Compatibility
   testing.  A prioritized list of products required for testing before first
   customer shipment is attached.  This list may be updated for each subsequent
   release.
 .  Accord will be responsible for gaining access to the list of equipment. In
   some cases, testing can be done using PictureTel's interoperability and
   compatibility laboratories. However, PictureTel cannot guarantee unlimited
   access to the equipment, as it is a shared resource, however, with regard to
   initial testing, PictureTel will use best reasonable efforts to make such
   equipment available to Accord.
 .  Interop/Compatibility is achieved per IMTC, and SQA Templates, also attached.

                           IV.  Post Release Issues

 .  Compatibility problems encountered with the MCU will be given priority within
   Accord engineering for resolution.
 .  Compatibility problems encountered with PictureTel products will be given
   priority within PictureTel engineering for resolution.

                                       53
<PAGE>

<TABLE>
<CAPTION>
                  PictureTel Products                        DONE       Phase 1     Phase 2      Phase 3      Phase 4
-----------------------------------------------------------------------------------------------------------------------
<S>                                                      <C>           <C>        <C>          <C>          <C>
Concorde 6.50                                                 I*           x
-----------------------------------------------------------------------------------------------------------------------
Concorde 6.70  (FCS Feb '00)                                                           x
-----------------------------------------------------------------------------------------------------------------------
Venue 1.3                                                                  x
-----------------------------------------------------------------------------------------------------------------------
Venue 1.4                                                                  x
-----------------------------------------------------------------------------------------------------------------------
SwiftSite II 1.0                                                           x
-----------------------------------------------------------------------------------------------------------------------
SwiftSite II 1.1  (FCS Jan '00)                                                        x
-----------------------------------------------------------------------------------------------------------------------
SwiftSite 1.3                                                A**                       x
-----------------------------------------------------------------------------------------------------------------------
Live 200 1.5                                                 I,A           x
-----------------------------------------------------------------------------------------------------------------------
Live200 NT 1.1                                                                         x
-----------------------------------------------------------------------------------------------------------------------
Live LAN 3.0                                                                                        x
-----------------------------------------------------------------------------------------------------------------------
Live LAN 3.1                                                                           x
-----------------------------------------------------------------------------------------------------------------------
Onwan 250 1.0                                                                                       x
-----------------------------------------------------------------------------------------------------------------------
Onwan 350 1.0                                                 I                                     x
-----------------------------------------------------------------------------------------------------------------------
PictureTel 550  1.1                                           I            x
-----------------------------------------------------------------------------------------------------------------------
PictureTel 550  1.2  (FCS Jan '00)                                                     x
-----------------------------------------------------------------------------------------------------------------------
Net Conference 2.0                                                         x
-----------------------------------------------------------------------------------------------------------------------
Live Gateway 3.1                                                           x
-----------------------------------------------------------------------------------------------------------------------
Portal 240 2.0                                                             x
-----------------------------------------------------------------------------------------------------------------------
Live Manager 4.0                                                           x
-----------------------------------------------------------------------------------------------------------------------
Venue with PictureTel 210                                                              x
-----------------------------------------------------------------------------------------------------------------------
Concorde With PictureTel 210                                                           x
-----------------------------------------------------------------------------------------------------------------------
Montage 6.1                                                                x
-----------------------------------------------------------------------------------------------------------------------
Montage 6.2                                                                x
-----------------------------------------------------------------------------------------------------------------------
TeamStation 4.0                                               A            x
-----------------------------------------------------------------------------------------------------------------------
TeamStation 4.0a                                                                       x
-----------------------------------------------------------------------------------------------------------------------
TeamStation 5.0                                               A            x
-----------------------------------------------------------------------------------------------------------------------
Proshare 2.0                                                 I,A                       x
-----------------------------------------------------------------------------------------------------------------------
Proshare 2.1                                                  I                        x
-----------------------------------------------------------------------------------------------------------------------
ProShare 500                                                               x
-----------------------------------------------------------------------------------------------------------------------
                      Vendor End Points
-----------------------------------------------------------------------------------------------------------------------
Aethra Vega 384 2.0                                                                                 x
-----------------------------------------------------------------------------------------------------------------------
Polycom ViewStation 4.0                                       I            x
-----------------------------------------------------------------------------------------------------------------------
Polycom ViewStation MP                                        I            x
-----------------------------------------------------------------------------------------------------------------------
Tandberg 2000 3.3B                                            A            x
-----------------------------------------------------------------------------------------------------------------------
Tandberg 2000 1.0                                                                      x
-----------------------------------------------------------------------------------------------------------------------
Tandberg 8000 1.0                                                          x
-----------------------------------------------------------------------------------------------------------------------
Sony 1000                                                                              x
-----------------------------------------------------------------------------------------------------------------------
Sony 5100 v2.11                                                                        x
-----------------------------------------------------------------------------------------------------------------------
Sony 5100 4.0                                                              x
-----------------------------------------------------------------------------------------------------------------------
Sony 5100 Plus                                                             x
-----------------------------------------------------------------------------------------------------------------------
RSI Video Flyer 3.0                                                                                 x
-----------------------------------------------------------------------------------------------------------------------
Vcon Armada 384 3.01                                          I                        x
-----------------------------------------------------------------------------------------------------------------------
Vtel wg 500                                                                            x
-----------------------------------------------------------------------------------------------------------------------
Vtel TC 2000  2.2                                             I            x
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       54
<PAGE>

<TABLE>
<CAPTION>
                  PictureTel Products                        DONE       Phase 1     Phase 2      Phase 3      Phase 4
-----------------------------------------------------------------------------------------------------------------------
<S>                                                      <C>           <C>        <C>          <C>          <C>
Vtel Galaxy                                                                            x
-----------------------------------------------------------------------------------------------------------------------
Vtel Smartstation 5.0                                                                               x
-----------------------------------------------------------------------------------------------------------------------
Vtel Settop 250                                                                        x
-----------------------------------------------------------------------------------------------------------------------
Numonics Personal                                                                                   x
-----------------------------------------------------------------------------------------------------------------------
Numonics Whiteboard                                                                                 x
-----------------------------------------------------------------------------------------------------------------------
NetMeeting 3.0                                                I            x
-----------------------------------------------------------------------------------------------------------------------
Vcon 8000                                                                  x
-----------------------------------------------------------------------------------------------------------------------
Vcon MediaConnect 8300                                        I            x
-----------------------------------------------------------------------------------------------------------------------
Vcon QuickConnect2L                                           I            x
-----------------------------------------------------------------------------------------------------------------------
Vcon 150                                                      I            x
-----------------------------------------------------------------------------------------------------------------------
Vcon 75                                                       I            x
-----------------------------------------------------------------------------------------------------------------------
Vcon 25                                                       I            x
-----------------------------------------------------------------------------------------------------------------------
Landesk Conf Mgr                                                                       x
-----------------------------------------------------------------------------------------------------------------------
                   H.323 Gatekeepers
-----------------------------------------------------------------------------------------------------------------------
Radvision GK-3233                                             I            x
-----------------------------------------------------------------------------------------------------------------------
VS Encounter Gatekeeper 1.2                                                            x
-----------------------------------------------------------------------------------------------------------------------
Cisco Multimedia Manager                                      I            x
-----------------------------------------------------------------------------------------------------------------------
                   H.320 Gateways
-----------------------------------------------------------------------------------------------------------------------
Radvision L2W-323 Gateway                                                  x
-----------------------------------------------------------------------------------------------------------------------
VS Encounter NetGate 1.2                                                               x
-----------------------------------------------------------------------------------------------------------------------
First Virtual V-Gate323                                                                x
-----------------------------------------------------------------------------------------------------------------------
Intel Gatekeeeper                                                                                   x
-----------------------------------------------------------------------------------------------------------------------
Ericsson Gatekeeper                                                                                 x
-----------------------------------------------------------------------------------------------------------------------
Cisco Gatekeeer                                                                        x
-----------------------------------------------------------------------------------------------------------------------
                   H.320 MCUs
-----------------------------------------------------------------------------------------------------------------------
Lucent 5.0                                                                 x
-----------------------------------------------------------------------------------------------------------------------
                   H.323 MCUs
-----------------------------------------------------------------------------------------------------------------------
VS Encounter Netserver 1.2                                                             x
-----------------------------------------------------------------------------------------------------------------------
Radvision MCU-323                                             I            x
-----------------------------------------------------------------------------------------------------------------------
White Pine Meeting point                                                               x
-----------------------------------------------------------------------------------------------------------------------
                   H.323 Firewalls
-----------------------------------------------------------------------------------------------------------------------
Check Point Fire Wall-1                                                    x
-----------------------------------------------------------------------------------------------------------------------
Axent/paptor Firewall 6.0                                                                           x
-----------------------------------------------------------------------------------------------------------------------
Secure Computing  NT                                                                                x
-----------------------------------------------------------------------------------------------------------------------
Cisco Pix Firewall                                                         x
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

*  I  Testing completed by Accord Israel.
** A  Testing completed by Accord Atlanta.

                                       55
<PAGE>

                                  EXHIBIT 11

                          CHANNELS COMMUNICATION PLAN

1.  Immediately prior to the announcement of the Agreement, a joint letter from
    the PictureTel Executive Sales Management and Accord's Senior Sales
    Management will be sent to each channel that currently has a distribution
    agreement with both PictureTel and Accord. The objective of this
    communication is to move these channels towards acquiring the Accord product
    from PictureTel, since the Accord unit with the PictureTel value-added
    features will initially only be available from PictureTel.

2.  Accord will not actively solicit for distribution any channels that
    currently only has an exclusive endpoint distribution agreement with
    PictureTel. PictureTel will supply a list of such distributors within 30
    days of the Effective Date.

3.  Accord management will participate in joint calls with PictureTel to
    facilitate clear communications to key channels and customers.

4.  A series of video training sessions will be offered to PictureTel's
    worldwide channels within 15 days after the product launch. Accord will
    participate in delivering the product training.

5.  PictureTel and Accord will agree to non-discriminatory, mutual guidelines of
    engagement for selling to the end-users and service providers.

6.  Accord will disclose to PictureTel their target list of the prospective IP
    channel partners.

7.  Accord will continue to facilitate discussions for guidelines of engagement
    between FVC.com and PictureTel.

                                       56
<PAGE>

                                 EXHIBIT 12 -

                        COUNTRY HOMOLOGATION APPROVALS

                 Homologation and Type Certification Schedule

Accord will pay all fees and supply appropriate resources to facilitate
homologation and type approval of the product in Tier 1 and 2 countries as
defined by PictureTel.  PictureTel will pay all fees and supply appropriate
resources to facilitate homologation and type approval in Tier 3 countries.

     Tier 1. Accord is responsible for completing the homologation process in
     the following countries by the time of the launch:
        .  United States - completed
        .  Japan
        .  United Kingdom - completed
        .  Germany - completed
        .  France  - completed
        .  Australia
        .  China
        .  Canada

     Tier 2. Accord will complete the homologation process in the following
     countries within 3 months of the product launch:
        .  Argentina
        .  Belgium - completed
        .  Brazil
        .  Finland - completed
        .  Holland - completed
        .  Hong Kong
        .  India
        .  Israel
        .  Italy - completed
        .  Korea
        .  Mexico
        .  Singapore
        .  South Africa
        .  Spain - completed
        .  Sweden - completed
        .  Switzerland - completed
        .  Taiwan

     Tier 3. The first party delivering a Product to a Tier 3 country will be
     responsible for the completion of any homologation efforts. The following
     countries are defined as Tier 3:
        .  Austria
        .  Chile
        .  Columbia
        .  Denmark
        .  Hungary
        .  Ireland
        .  Malaysia
        .  New Zealand
        .  Norway
        .  Peru

                                       57
<PAGE>

        .  Portugal
        .  Russia
        .  United Arab Emirates
        .  Venezuela

The parties agree to reasonably provide consulting assistance to each other as
they engage in the homologation effort.

                                       58
<PAGE>

                                 EXHIBIT 13 -

                       PICTURETEL'S ADDRESS FOR BILLING

Billing Address

     Attn.:  Accounts Payable
     PictureTel Corporation
     100 Minuteman Road
     ANDOVER, MA  01810

                                       59
<PAGE>

                                 EXHIBIT 14 -

                             RELATIONSHIP MANAGERS

For PictureTel:
---------------

x
x
PictureTel Corporation
100 Minuteman Road
Andover, MA  01810
United States of America
Telephone:
Facsimile:
Email:

For Accord:
-----------

Ken Orbach
Accord Networks, Inc.
9040 Roswell Road, Suite 450
Atlanta, GA 30350
United States of America

Telephone:  (770) 641-4000
Facsimile:  (770) 641-4499

                                       60
<PAGE>

                                 EXHIBIT 15 -

                             RECEIVERS OF NOTICES

For PictureTel:
---------------

W. Robert Kellegrew, Jr.
General Counsel
PictureTel Corporation
100 Minuteman Road
Andover, MA  01810
United States of America

Telephone:  978-292-5693
Facsimile:  978-292-3338
Email:  kellegrewb@pictel.com

For Accord:
-----------

Adam D. Vexler
Corporate Counsel
Accord Networks, Inc.
9040 Roswell Road, Suite 450
Atlanta, GA 30350
United States of America

Telephone:  770-641-4469
Facsimile:  770-261-3636
Email:  adam.vexler@accordnetworks.com

                                       61

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