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                                                                   EXHIBIT 10.42

                       RELEASE AND RESIGNATION AGREEMENT

            THIS AGREEMENT is made as of the 20th day of June, 2000.

WHEREAS:

A.   Mr. Michael Forster ("FORSTER") is the President, Director and Chief
Operating Officer of SmartSources.com Inc. ("SMARTSOURCES.COM") and a
consultant to SmartSources.com Inc. and its direct or indirect wholly owned,
subsidiary companies (collectively, the "SMARTSOURCES GROUP");

B.   Forster has agreed for and in consideration of the payments set out herein
to resign all offices, positions and terminate his employment and consulting
agreement with the SmartSources Group and will not stand for re-election as a
director of SmartSources.com at the upcoming Annual General Meeting of
SmartSources.com, and has further agreed to enter into this Release and
Resignation Agreement in order to release the SmartSources Group from all
further obligations on the terms hereinafter set forth.

        NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the
mutual agreements and covenants set out herein the parties agree as follows:

1.0       RESIGNATION AND RELEASE

1.1       Forster has agreed to:

     (a)  resign as a director and officer of SmartSources.com and shall resign
          from his offices, position, employment and as a consultant with the
          SmartSources Group as of July 1, 2000;

     (b)  not stand for, or be nominated for, re-election to the Board of
          Directors of SmartSources.com at the 2000 Annual General Meeting of
          SmartSources.com.

1.2       Forster hereby releases and forever discharges each of the companies
which comprise the SmartSources Group, their respective employees, officers,
directors, successors, assigns and all other affiliated and subsidiary companies
of the SmartSources Group from all claims, demands, damages, actions or causes
of action of any sort which Forster may have for any cause existing up to and
including the date of this Release and through until the date of his
resignation. This Release includes, but is not limited to, any claim arising
out of Forster's employment or consulting agreement with the SmartSources Group
or its termination, and more specifically, any claims under the  Employment
Standards Act, any complaints under human rights legislation, any claims for
damages for wrongful dismissal, termination of Forster's position, loss of
status, loss of future job opportunity, loss of opportunity to enhance
reputation, the timing of the resignation and the manner in which it was
effected, loss of stock options, salary, bonuses, commissions or incentive pay,
loss of benefits included but not limited to life insurance, short-term  and
long-term disability coverage and any other type of damages, in any way related
to Forster's resignation from employment with the SmartSources Group or the
terms of Forster's retainer as a consultant pursuant to the July 20, 1999,
Management Consulting Agreement letter from SmartSources.com Technologies Inc.
to Forster.

1.3       Forster further agrees that the termination benefits referred to in
this Agreement include any amounts to which Forster may be entitled under any
terms of any consulting agreement or employment with the SmartSources Group,
and the British Columbia Employment Standards Act and that neither Forster, nor
any corporation or trust, directly or indirectly owned or controlled by Forster
will file in any Court or with any other tribunal any claim for wrongful
dismissal, loss of benefits, termination pay, overtime, vacation pay or any
other remedy to which Forster or such corporation or trust may be entitled, and
Forster on behalf of himself and any such corporation or trust, hereby expressly
releases SmartSources.com Technologies Inc., SmartSources.com and the
SmartSources Group from all claims, demands, damages, actions or causes of
action of any sort which he may have with respect to the loss

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of any right to exercise any stock option or options (or any part thereof) which
would or might have vested or become exercisable at any time after the date of
Forster's resignation including without limitation the whole or any part of any
stock option which would or might have become vested or exercisable during any
period of reasonable notice deemed due to Forster on termination of his
consulting agreement or employment.

1.4  Forster agrees to save harmless and indemnify the SmartSources Group from
any and all proceedings which may occur in the future arising out of the payment
of any amounts referred to in this Agreement.

2.0 CONFIDENTIALITY

2.1  Forster covenants and agrees that he will not divulge, disclose or
communicate to any person, firm or corporation in any manner whatsoever, any
information concerning matters affecting or relating to the business of the
SmartSources Group, or any of the SmartSources Group's subsidiaries or
affiliates including all of the companies and individuals in the SmartSources
Group, their owners, shareholders, officers and directors which is in the nature
of a trade secret, including, without limitation, their financial statements,
financial projections, information, records, business plans or strategies,
special project plans, customers, the prices they obtain or have obtained from
the sale of their products, their manner of operation, their plans, processes or
other data, the parties hereto stipulating that, as between them, the same are
confidential and gravely affect the effective and successful conduct of the
business of the SmartSources Group.

2.2  Forster agrees that on his last active day of work for the SmartSources
Group he will immediately deliver and return to the SmartSources Group:

          (a)    all documents, lists, books and records (whether stored in
                 printed or electronic form) and

          (b)    all other property in his possession or control,

                 (the "PROPERTY")

of, or connected with, the business of the SmartSources Group, and shall if
required by the SmartSources Group upon delivery of such Property certify by way
of execution of a Statutory Declaration in a form prescribed by the SmartSources
Group that:

          (c)    he no longer has possession of, or control over, any other
                 Property relating to the SmartSources Group;

          (d)    he has not entrusted to any third party other than the
                 SmartSources Group possession or control over any other
                 Property; and

          (e)    that he has neither taken, nor kept copies of any such
                 Property either in printed or electronic form.

2.3  Any breach of the terms of this Article 2.0 shall be a material breach of
this Agreement.

3.0 SEVERANCE TERMS

3.1  SmartSources.com and Forster hereby covenant and agree that:

          (a)    SmartSources.com shall continue payment to Forster of his
                 current salary (and if applicable less all statutory
                 deductions) until July 1, 2000.
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     (b)  Until July 1, 2000 Forster agrees to continue performance of his
          customary duties as an consultant or employee of SmartSources.com;

     (c)  On July 1, 2000 SmartSources.com shall pay to Forster in a lump sum as
          compensation for length of service and as a severance allowance in
          full satisfaction of any amount due to Forster under the terms of the
          July 20, 1999 Management Consulting Agreement, the gross sum of U.S.
          $70,000.00 (the "SEVERANCE ALLOWANCE"). Payment of the Severance
          Allowance shall be subject, to all applicable withholding
          requirements;

     (d)  SmartSources.com shall provide Forster with a positive recommendation
          and letter of reference; and

     (e)  the SmartSources Group shall, subject to the extent permitted by law
          and in particular any applicable corporate, securities or criminal
          legislation, releases and forever discharge Forster from all claims,
          demands, damages, actions or causes of action of any sort which the
          SmartSources Group may have for any cause existing up to and including
          the date of Forster's resignation, PROVIDED THAT this release shall
          not apply to any claim by the SmartSources Group against Forster
          arising from any breach by Forster of any corporate, securities or
          criminal legislation.

3.2       Forster hereby acknowledges that after his departure from
SmartSources.com on July 1, 2000 he shall conduct himself to the highest level
of integrity and shall not disparage the business of SmartSources Group or its
employees, officers and directors.

3.3       Except for payment of the Severance Allowance in accordance with
either Article 3.2 or 3.3, Forster shall not be entitled to any further
compensation for loss of any benefits (included but not limited to loss of life
insurance or short-term and long term disability coverage), loss of incentive
compensation, or any other claims or damages in any way related to the
termination of Forster's consulting agreement or employment, and payment of the
Severance Allowance shall in all cases be subject to execution of a Release of
All Claims in a form prescribed by SmartSources.com.

3.4       All benefits under the SmartSources Group's Employee Group Benefits
Plan as provided to Forster will be continued until July 1, 2000, and payment
of the consultant or employee's share of the monthly premium cost of such
benefits shall be made by way of monthly deductions from the gross amounts paid
to Forster.

4.0       INDEPENDENT ADVICE

4.1       Forster hereby declares and acknowledges that he has obtained
independent legal advice before entering into this Agreement and has read this
Agreement and fully understands its terms and Forster hereby agrees and
acknowledges that he has not been influenced to any extent whatsoever in making
this Agreement by any representations or statements made by the SmartSources
Group or persons representing the SmartSources Group other than as herein set
out.

5.0       LAW AND ARBITRATION

5.1       This Agreement will be interpreted in accordance with the laws of the
Province of British Columbia.

5.2       In the event of any dispute arising between the parties concerning
this Agreement, its enforceability or the interpretation thereof shall be
settled by a single arbitrator appointed pursuant to the provisions of the
Commercial Arbitration Act of British Columbia, or any successor legislation
then in force. The place of arbitration shall be Vancouver, British Columbia.
The language to be used in the
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arbitration proceedings shall be English. Nothing in Article 5.2 shall prevent
a party hereto from applying to a court of competent jurisdiction for interim
protection such as, by way of example, an interim injunction.

6.0      GENERAL:

6.1      No condoning, excusing or overlooking by any party of any default,
breach or non-observance by any other party at any time or times in respect of
any covenants, provisos, or conditions of this Agreement shall operate as a
waiver of such party's rights under this Agreement in respect of any continuing
or subsequent default, breach or non-observance, so as to defeat in any way the
rights of such party in respect of any such continuing or subsequent default or
breach and no waiver shall be inferred from or implied by anything done or
omitted by such party, save only an express waiver in writing.

6.2      No exercise of a specific right or remedy by any party precludes it
from or prejudices it in exercising another right or pursuing another remedy or
maintaining an action to which it may otherwise be entitled either at law or in
equity.

6.3      The terms and provisions, covenants and conditions contained in this
Agreement which by the terms hereof require their performance by the parties
hereto after the date of execution of his Agreement shall be and remain in
force. In particular it is agreed that all the covenants and agreements of
Forster contained in this Agreement shall continue and shall remain in full
force and effect after the date of Forster's resignation as a consultant, or
termination, from employment with the SmartSources Group.

6.4      In the event that any part, section, clause, paragraph or subparagraph
of this Agreement shall be held to be indefinite, invalid, illegal or otherwise
voidable or unenforceable, the entire agreement shall not fail on account
thereof, and the balance of the Agreement shall continue in full force and
effect.

6.5      The parties hereto acknowledge that the law firm of RBS Lawyers has
acted solely for the SmartSources Group in connection with this Agreement.

6.6      This Agreement sets forth the entire understanding between the parties
and no modifications hereof shall be binding unless executed in writing by the
parties hereto.

IN WITNESS WHEREOF the parties have hereunto set their hand and seal this ___
day of June, 2000.

WITNESS:                            )
                                    )
/s/ JEFFREY J. LOWE                 )
----------------------------------- )
Witness Signature                   )
                                    )
         JEFFREY J. LOWE            )
----------------------------------- )
Address                             )
            [ILLEGIBLE]             )        /s/ MICHAEL FORSTER
----------------------------------- )        ------------------------------
     380-1111 MELVILLE STREET       )        MICHAEL FORSTER
----------------------------------- )
          VANCOUVER, B.C.           )
----------------------------------- )
              V6E 4R7               )
----------------------------------- )
         TEL:(604)682-3684          )
----------------------------------- )
Occupation                          )

SMARTSOURCES.COM TECHNOLOGIES INC.  )
by its authorized signatory         )
                                    )
/s/ NATHAN NIFCO                    )
----------------------------------- )
Authorized Signatory                )<PAGE>   1
                                                                    EXHIBIT 10.1

June 16, 1998

Mr.Frazer Hamilton
16 Garden Close
Hook
Hampshire
RG27 9QZ
U.K.

Dear Frazer:

On behalf of PictureTel Corporation ( the "Company" ), I am very pleased to
offer you an opportunity to immediately join our Company as the Vice President,
Quality reporting directly to me.

Initially, you will be based in the United Kingdom, but you will be expected to
travel to and spend appropriate work periods at the Company's headquarters in
Andover, Massachusetts. While based in the U.K., you will an employee of
PictureTel International Corporation, and for administrative, pay and benefit
purposes, you will be placed on the United Kingdom subsidiary payroll. You will
be eligible for all benefits and other emoluments provided U.K. employees in
similar positions and circumstances as yours, including but not limited to, the
health scheme, pension contributions, death in service benefits (life insurance)
and participation in the subsidiary's prevailing automobile scheme.

The cash compensation in the offered position will contain two elements: an
annual base salary and an annual bonus opportunity under PictureTel's Management
Incentive Plan. The base salary for the position will be paid at the monthly
rate of P10,000. ( this the equivalent of P120,000. annually based on 12 monthly
pay periods in the year ). The offered base salary will be the minimum paid
while employed with the Company. As Vice President, Quality a full personal
performance and total compensation ( salary, bonus, and equity ) review is
completed by the Compensation Committee of the Board during the quarter
immediately following the close of the fiscal year and recommendations acted
upon as appropriate.

The payment of a bonus under the Management Incentive Plan is predicated on the
Company's achievement of the annual revenue and profitability objectives
established at the start of the fiscal year and your performance in meeting your
Individual Goals for the year. The bonus opportunity will be 0% - 40% of base
salary for full performance in meeting the objectives for the year, but may
range up to 80% of base salary for performance in excess of the plan. The bonus,
if any, is determined and paid in the first quarter following the close of the
fiscal year.

The Company will offer you a cash sign-on bonus in the amount of P75,000.; paid
as follows: P30,000. thirty ( 30 ) days following your employment start date;
P15,000. on January 1, 1999 and P30,000. on July 1, 1999.

In addition, we will recommend to the Compensation Committee of the Board of
Directors your participation in PictureTel's Equity Incentive Plan. The
recommendation presented will be for you to be granted an option to purchase
70,000 shares of the Common Stock of the Company ( "Option" ). The Option will
vest over a four year period, with the first twenty-five ( 25 ) percent of the
aggregate number of shares vesting one ( 1 ) year following the date the option
grant is approved and six and one quarter ( 6.25 ) percent of the aggregate
number of shares vesting each quarter thereafter. The purchase price of the
Option will be determined by the Compensation Committee on the day your option
grant is approved and will be no less than the closing price as quoted on the
National Market System of NASDAQ on that date. Vesting shall be conditional on
your continued full-time employment with the company. Certain other restrictions
may apply to your option grant as are set forth in the Equity Incentive Plan. As
a Vice President, additional option grants are subject to the annual total
compensation review discussed above.

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Inasmuch as you will be expected to travel to and spend appropriate work periods
at the Company's headquarters in Andover, Massachusetts while based in the U.K,
the Company will provide you with appropriate local housing and an automobile
during such periods of time. You will have eighteen months following the
commencement of work with the Company to make a decision to relocate to the
United States. If you decide to relocate, PictureTel will provide you with full
relocation assistance from Hook, Hampshire, U.K. to the Andover, Massachusetts
area. Details will be specified at the time you decide to effect your relocation
and will be in accordance with standard Company Relocation Policy. After
relocation, you will given one annual home leave trip to the U.K. for you and
your spouse, any additional home leave trips will be decided between you and
Bruce Bond. However, in the event that you voluntarily terminate your employment
within eighteen ( 18 ) months of the relocation, the relocation expenses paid up
to the termination date shall be subject to repayment to the Company pro-rata
for your service with the company.

In the event that you are involuntarily terminated by the Company for any reason
other than for Cause, you would be entitled to receive a continuation of your
then current base salary for a period of twelve ( 12 ) months. During the twelve
months that you receive salary payments from the Company, you will remain
eligible for the same continued benefit coverage provided employees in similar
positions and circumstances as yours. Further, if such termination occurs after
you have relocated to the U.S., the Company will fully "repatriate" you back to
the U.K.. For purposes of this letter, "Cause" shall be defined as and be
limited to conviction of a felony or willful misconduct or gross negligence in
the performance of duties which result in material harm to PictureTel.

Further, the Company will enter into a separate Change in Control Agreement (
"CIC Agreement" ) which will provide you with certain benefits in the event of
an involuntary termination due to a change in control. The CIC Agreement will
include certain triggering events and provide, but not be limited to, severance
equal to the sum of ( i ) your then current base salary, plus ( ii ) the highest
bonus paid in the three years preceding the triggering events, paid over a
twelve ( 12 ) month period. Additionally, if such termination occurs after you
have relocated to the U.S., the Company will fully "repatriate" you back to the
U.K.. The full acceleration of all unvested stock options in the event of a
change in control is specifically covered in PictureTel's Equity Incentive Plan
and will not be included in the CIC Agreement. The CIC Agreement will be
executed concurrently with your acceptance of our employment offer and the
commencement of work with the Company.

Please indicate your acceptance of this offer and your anticipated start date by
completing and signing the enclosed copy of this letter, the PictureTel
Application for Employment, and the Proprietary Information Agreement. Please
return all signed documents to Larry Bornstein as soon as practical.

If you have any questions regarding this offer, please do not hesitate to call
Larry or me. We look forward to your joining and being an important member of
our team.

Sincerely,

Bruce Bond
President and
Chief Executive Officer

ACCEPTED:_____________________________________ Date:_____________
SS#:___________________ Anticipated Start Date:_________________

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