Document:

EX-10.33 Change in Control Agreement

TABLE OF CONTENTS

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

Exhibit 10.33

EXECUTIVE OFFICER CHANGE IN CONTROL AGREEMENT

      THIS AGREEMENT dated September 18, 2000 is made by and between PictureTel
Corporation, a Delaware Corporation, (the “Company”) and Robert Kellegrew, 286
Chestnut Street, Clinton, MA 01510 (“Executive’’).

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

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

      WHEREAS the Board has determined that appropriate steps should be taken to
reinforce and encourage the continued attention and dedication of members of
the Company’s management, including the Executive, to their assigned duties
without distraction in the face of potentially disrupting circumstances arising
from the possibility of a Change in Control;

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

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

      2.0 Term of Agreement. This Agreement shall commence on the date hereof
and shall continue in effect through November 30, 2001; provided, however, that
commencing on December 1, 2001 and each December 1st thereafter, the term of
this Agreement shall automatically be extended for one additional year unless,
not later than September 30th preceding that December 1st, the Company or the
Executive shall have given notice not to extend this Agreement or a Change in
Control shall have occurred prior to such September 30th; provided, however, if
a Change in Control shall have occurred during the term of this Agreement, this
Agreement shall continue in effect for a period of not less than thirty-six
(36) months beyond the date such Change in Control occurred.

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

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

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      5.0 Compensation Other Than Severance Payments.

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

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

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

      6.0 Severance Payments.

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

		
	 	      (i) Subsequent to the Date of Termination, the Company shall make cash
severance payments to the Executive over a twenty-four (24) month period
in substantially equal bi-weekly installments, in an amount equal to two
(2) times the sum of (a) the higher of the Executive’s annual base salary
in effect immediately prior to the occurrence of the event or
circumstance upon which the Notice of Termination is based or in effect
immediately prior to the Change in Control, and (b) the higher of the
highest annual bonus paid to the Executive in the three years preceding
the year in which the Date of Termination occurs or paid in the three
years preceding the year in which the Change in Control occurs.

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	 	      (ii) For a twenty-four (24) month period after the Date of Termination,
the Company shall arrange to provide the Executive with medical and
dental insurance benefits substantially similar to those which the
Executive is receiving immediately prior to the Notice of Termination
(without giving effect to any reduction in such benefits subsequent to a
Change in Control which reduction constitutes Good Reason). Benefits
otherwise receivable by the Executive pursuant to this Section 6.1(ii)
shall be reduced to the extent comparable benefits are actually received
by or made available to the Executive without cost during the twenty-four
(24) month period following the Executive’s termination of employment
(and any such benefits actually received by the Executive shall be
reported to the Company by the Executive). If the benefits provided to
the Executive under this Section 6.1(ii) shall result in a decrease,
pursuant to Section 6.2, in the Change in Control Payments and these
Section 6.1(ii) benefits are thereafter reduced pursuant to the
immediately preceding sentence because of the receipt of comparable
benefits, the Company shall, at the time of such reduction, pay to the
Executive the lesser of (a) the amount of the decrease made in the
Severance Payments pursuant to Section 6.2, or (b) the maximum amount
which can be paid to the Executive without being, or causing any other
payment to be, nondeductible by reason of section 28OG of the Code.

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

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

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

      7.0 Termination Procedures and Compensation During Dispute.

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

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

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

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

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

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

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

      9.0 Successors; Binding Agreement.

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

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

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

          To the Company:

          PictureTel Corporation

          100 Minuteman Road

          Andover, Massachusetts 01810

          Attention: General Counsel

          To the Executive:

          Robert Kellegrew

          286 Chestnut Street

          Clinton, MA 01510

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

		
	 	      (M) “Good Reason” for termination by the Executive of the Executive’s
employment shall mean the occurrence (without the Executive’s express
written consent) of any one of the following acts by the Company, or
failures by the Company to act, unless, in the case of any act or failure
to act described in paragraph (i), (v), (vi), or (vii), below, such act
or failure to act is corrected prior to the Date of Termination specified
in the Notice of Termination given in respect thereof:

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

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

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

		
	 	      (iv) the failure by the Company, without the Executive’s consent, to
pay to the Executive any portion of the Executive’s current
compensation, or to pay to the Executive any portion of an installment
of deferred compensation under any deferred compensation program of
the Company, within seven (7) days of the date such compensation is
due;

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

		
	 	      (vi) the failure by the Company to continue to provide the Executive
with benefits substantially similar to those enjoyed by the Executive
under any of the Company’s pension, life insurance, medical, health
and accident, or disability plans in which the Executive was
participating at the time of the Change in Control, the taking of any
action by the Company which would directly or indirectly materially
reduce any of such benefits or deprive the Executive of any material
fringe benefit enjoyed by the Executive at the time of the Change in
Control, or the failure by the Company to provide the Executive with
the number of paid vacation days to which the Executive is entitled on
the basis of years of service with the Company in accordance with the
Company’s normal vacation policy in effect at the time of the Change
in Control; or

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

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

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

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

		
	 	      (i) the Company,

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

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

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

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

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

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

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

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

	 	PictureTel Corporation

	 	By __________________________

	 	Name: Ralph Walker

Title: Vice President, Human Resources

	 	__________________________

Robert Kellegrew

9<PAGE>

                    NOTE AND COMMON STOCK PURCHASE AGREEMENT

         This Note and Common Stock Purchase Agreement (the "Agreement") is made
this 30th day of March, 2001 (the "Effective Date") by and between Triton
Capital Investments, Ltd. (the "Seller"), and Acclaim Entertainment, Inc., a
Delaware corporation (the "Company").

                                    RECITALS

         WHEREAS, the Seller is the current bona fide owner and holder of
certain of the Company's notes in the aggregate principal amount of $4,925,000
(the "Note"), originally issued as part of the Company's private placement of
$50,000,000 aggregate principal amount of 10% Convertible Subordinated Notes due
in 2002 (the "Issuance");

         WHEREAS, both the Issuance and the Note are governed by an Indenture
between the Company and IBJ Schroeder Bank & Trust Company (the "Trustee"),
dated as of February 26, 1997 (the "Indenture");

         WHEREAS, the Company wishes to purchase the Note from Seller upon the
terms and subject to the conditions of this Agreement, and

         WHEREAS, in connection with the Company's purchase of the Note, the
Seller is concurrently purchasing from the Company 1,097,152 shares (the
"Purchased Stock") of the Company's common stock, par value $0.02 per share (the
"Common Stock").

                                    AGREEMENT

         The parties hereto hereby agree as follows:

1.       PURCHASE AND SALE.

     (a) PURCHASE AND SALE OF NOTE. The Seller hereby transfers, assigns and
sells to the Company, and the Company hereby purchases from the Seller, the
Note for an aggregate purchase price of $2,008,367 (the "Note Price"), as
reflected in paragraph 1.(e) below.

     (b) DELIVERY OF NOTE. The parties acknowledge that the Seller has
instructed Bear Stearns to transfer the Note to the Trustee, and the Company
has in turn instructed the Trustee to cancel the Note as a result of the
transactions contemplated hereby.

     (c) PURCHASE AND SALE OF PURCHASED STOCK The Company hereby sells and
delivers to the Seller, and the Seller hereby purchases from the Company, the
Purchased Stock, at a purchase price of $1.25 per share (which the parties
agree is the fair market value of the Common Stock), or an aggregate purchase
price for all the Purchased Stock of $1,371,440 (the "Stock Price") as
reflected in paragraph 1.(e) below.

<PAGE>

     (d) DELIVERY OF PURCHASED STOCK. The Company has delivered to the Seller
share certificates no. 19660, 19661 and 19662 representing the shares of
Purchased Stock, and the Seller hereby acknowledges receipt thereof.

     (e) ADDITIONAL DELIVERY. In consideration of the purchase by the Company
of the Note for the Note Price, and the purchase by the Seller of the Purchased
Stock for the Stock Price, the Company hereby pays to Seller by wire transfer
of immediately available funds to an account of the Seller, the receipt of
which is hereby acknowledged, the difference between the Note Price and the
Stock Price (i.e. $636,927, referred to herein as the "Purchase Price").

2. REPRESENTATIONS AND WARRANTIES OF THE SELLER. The Seller hereby represents
and warrants to the Company that:

     (a) RIGHT, TITLE AND INTEREST TO NOTE. The Seller is the bona fide holder
of the Note and is in valid possession of all right, title and interest to the
Note, and when the Note is delivered to the Company pursuant hereto, the
Company will acquire good and marketable title thereto, free and clear of all
liens, restrictions, claims, charges and encumbrances and is not subject to any
adverse claim.

     (b) AUTHORIZATION AND VALIDITY OF AGREEMENT. The Seller has the power and
authority and has taken all necessary actions to execute and deliver this
Agreement, to consummate the transactions contemplated hereby and to take all
other actions required to be taken by it pursuant to the provisions hereof.
This Agreement has been duly executed and delivered by the Seller. This
Agreement is legal, valid and binding upon and enforceable against the Seller
in accordance with its terms, except as such enforceability may be limited by
bankruptcy, moratorium, insolvency, fraudulent conveyance, reorganization, or
other similar laws affecting the enforcement of creditors' rights generally.

     (c) NO CONFLICT WITH OTHER INSTRUMENTS. The Seller is not subject to any
agreement, instrument, judgment, order, document or other restriction of any
kind that would prevent the consummation of the transactions contemplated by
this Agreement.

     (d) INVESTMENT REPRESENTATIONS. The Seller understands that the shares of
Purchased Stock (and any other shares of Common Stock acquired hereunder) have
not been registered under the Securities Act of 1933 (the "Securities Act").
Seller also understands that the shares of Purchased Stock (and such other
shares of Common Stock) are being offered and sold pursuant to an exemption
from registration contained in the Securities Act based in part upon Seller's
representations contained in this Section 2(d). In that regard, the Seller
hereby represents and warrants as follows:

          (i) SELLER BEARS ECONOMIC RISK. The Seller has substantial experience
in evaluating and investing in private placement transactions of securities in
companies similar to the Company so that it is capable of evaluating the merits
and risks of its investment in the Company and has the capacity to protect its
own interests. The Seller understands and accepts that it must bear the
economic risk of this investment indefinitely unless the shares of Purchased
Stock (and any other shares of Common Stock acquired hereunder) are registered
pursuant to the Securities Act, or an exemption from registration is available.

                                       2
<PAGE>

          (ii) ACQUISITION FOR OWN ACCOUNT. The Seller is acquiring the shares
of Purchased Stock, (and any other shares of Common Stock acquired hereunder),
for the Seller's own account for investment only, and not with a view towards,
or for resale in connection with, their distribution in any transaction that
would be in violation of the securities laws of the United States of America or
any State thereof. Seller understands that the Purchased Stock (and any other
shares of Common Stock acquired hereunder) have not been approved or
disapproved by the Securities and Exchange Commission (the "Commission"), or
any other federal or state agency, nor has the Commission or any such agency
passed upon the accuracy or adequacy of any of the information provided to the
Seller.

          (iii) ACCREDITED INVESTOR. The Seller is an "accredited investor"
within the meaning of Regulation D under the Securities Act. The address of
Seller set forth on the signature page hereto is Seller's current address.

          (iv) COMPANY INFORMATION. The Seller has had an opportunity to
discuss the Company's business, management and financial affairs with
directors, officers and management of the Company and has had the opportunity
to review the Company's operations and facilities and is satisfied with the
results thereof. The Seller has also had the opportunity to ask questions of
and receive answers from, the Company and its management regarding the terms
and conditions of its investment in the shares of Purchased Stock.

          (v) NO ORAL REPRESENTATIONS. In making the Seller's investment in the
Company, no oral representations or warranties have been made to the Seller.
The Seller acknowledges that it has been advised that no person is authorized
to give any information or to make any statement not contained in any of the
written information provided to the Seller by the Company and that any
information or statement not made by such person must not be relied upon as
having been authorized by the Company or any professional advisors or counsel
thereto. The Seller and the Seller's representatives must rely on their own due
diligence of the Company and any other investigations deemed necessary for the
purpose of determining whether to proceed with the investment in the Company.

          (vi) PURCHASED STOCK LEGEND. The Seller agrees that the certificates
evidencing the shares of Purchased Stock (and any other shares of Common Stock
acquired hereunder) bear the following legend restricting their transferability
under the Securities Act:

                  THE SHARES REPRESENTED BY THIS CERTIFICATE WERE ACQUIRED FOR
                  INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                  ACT OF 1933, AS AMENDED ("ACT"). NO SALE, OFFER TO SELL OR
                  TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL
                  BE MADE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
                  FOR THE SHARES UNDER THE ACT, OR AN OPINION OF COUNSEL TO THE
                  COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT.

                                       3

<PAGE>

     (e) PUBLIC REPORTS. Seller has received, read and understands the
Company's Annual Report on Form 10-K (for the year ended August 31, 2000) and
Quarterly Report on Form 10-Q (for to the quarterly period ended December 2,
2000).

     (f) INDEMNIFICATION. The Seller shall indemnify and hold harmless each of
the Company, its directors, officers, persons controlling the Company, any
affiliate of the foregoing or any professional advisors thereto, from and
against any and all loss, damage, liability or expense, including costs and
reasonable attorneys' fees, to which any of them may be put or which they may
incur by reason of or in connection with any misrepresentation made by Seller,
or any breach of any of Seller's warranties.

3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby represents
and warrants to the Seller that:

     (a) AUTHORIZATION AND VALIDITY OF AGREEMENT. The Company has the corporate
power and authority and has taken all necessary corporate actions to execute
and deliver this Agreement, to consummate the transactions contemplated hereby
and to take all other actions required to be taken by it pursuant to the
provisions hereof. This Agreement has been duly executed and delivered by the
Company. This Agreement is legal, valid and binding upon and enforceable
against the Company in accordance with its terms, except as such enforceability
may be limited by bankruptcy, moratorium, insolvency, fraudulent conveyance,
reorganization, or other similar laws affecting the enforcement of creditors'
rights generally.

     (b) NO CONFLICT WITH OTHER INSTRUMENTS. The Company is not subject to any
agreement, instrument, judgment, order, document or other restriction of any
kind that would prevent the consummation of the transactions contemplated by
this Agreement.

     (c) FULL DISCLOSURE. Neither the Company's Annual Report on Form 10-K (for
the year ended August 31, 2000) and Quarterly Report on Form 10-Q (for the
quarterly period ended December 2, 2000) contain any untrue statement of a
material fact or omit to state a material fact required to be stated or therein
necessary to make the statements contained therein not misleading in light of
the circumstances under which they were made.

     (d) VALIDITY OF PURCHASED STOCK. Upon issuance of the Purchased Stock (and
any shares of Common Stock acquired hereunder) and payment therefore pursuant
hereto, the shares of Purchased Stock (and any shares of Common Stock acquired
hereunder) will be fully paid and nonassessable. The shares of Purchased Stock
(and any shares of Common Stock acquired hereunder) are not subject to
preemptive rights.

4. RELEASE. By the surrender of the Note and acceptance of the Purchase Price,
the Seller hereby releases the Company from any and all obligations under the
Note and the Indenture, financial and otherwise, and relinquishes the right to
any legal claim against the Company in connection with either the Note or the
Indenture.

5. CONFIDENTIALITY OF INFORMATION. The Seller agrees to hold and to cause its
representatives and affiliates to hold all information received from or
concerning the Company in connection with the transactions contemplated by this
Agreement in confidence, and not to use

                                       4
<PAGE>

or disclose any of such information to any such third party, except to the
extent such information may be made publicly available by the Company.

6. REGISTRATION RIGHTS.

     (a) The Company hereby agrees to prepare and file with the Securities and
Exchange Commission (the "SEC") a registration statement on Form S-3, or other
appropriate form in the Company's discretion (the "Registration Statement")
with respect to the resale of the shares of Purchased Stock and to use its best
efforts to cause the Registration Statement to be declared effective by the
SEC. The parties hereto agree that if the Registration Statement has not been
filed with the SEC by no later than April 16th, 2001 (the "Registration
Period"), the Company shall deliver an additional 75,000 shares of Common Stock
to the Seller without additional consideration therefor and, for each 14-day
period thereafter until the Registration Statement has been filed with the SEC,
the Company shall deliver an additional 75,000 shares of Common Stock to the
Seller without additional consideration therefor. Notwithstanding the
foregoing, if the Registration Statement has not been declared effective by the
SEC on or before the 90th day following the filing of the Registration
Statement, the Company shall deliver 250,000 additional shares of Common Stock
to the Seller without additional consideration therefor.

     (b) In connection with the registration of the shares of Purchased Stock
described in section 6(a), the Company agrees that it will:

           (i) Prepare and file with the SEC such amendments and supplements
to the Registration Statement and the prospectus used in connection with the
Registration Statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by the
Registration Statement;

          (ii) Furnish to the Seller such number of copies of the Registration
Statement and each such amendment and supplement thereto (in each case
including all exhibits), such number of copies of the prospectus (including
each preliminary prospectus and summary prospectus) in conformity with the
requirements of the Securities Act, and such documents, if any, incorporated by
reference in such Registration Statement or prospectus, and such other
documents as the Seller may reasonably request in order to facilitate the
disposition of the shares of Purchased Stock owned by it that are included in
such registration;

          (iii) Use its best efforts to register and qualify the securities
covered by the Registration Statement under such other securities or "blue sky"
laws of such jurisdictions as shall be reasonably requested by the Seller, keep
such registration or qualification in effect for so long as the Registration
Statement remains in effect, and do any or all acts and things which may be
reasonably necessary to enable the Seller to consummate the disposition in such
jurisdiction of the shares of Purchased Stock covered by the Registration
Statement; provided that the Company shall not be required in connection
therewith or as a condition thereto to qualify to do business, to subject
itself to taxation, or to file a general consent to service of process in any
such states or jurisdictions;

                                       5
<PAGE>

          (iv) Notify the Seller and (if requested by the Seller) confirm such
advice in writing, (I) when or if the prospectus or any prospectus supplement
or post-effective amendment has been filed, and, with respect to the
Registration Statement or any post-effective amendment, when the same has
become effective, (II) of any request by the SEC for amendments or supplements
to the Registration Statement or the prospectus or for additional information,
(III) of the issuance by the SEC of any stop order suspending the effectiveness
of the Registration Statement or the initiation of any proceedings for that
purpose, (IV) of the receipt by the Company of any notification with respect to
the suspension of the qualification of the shares of Purchased Stock for sale
in any jurisdiction or the initiation or threatening of any proceeding for such
purpose, and (V) of the happening of any event as a result of which the
prospectus included in the Registration Statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing;

          (v) If any fact contemplated by clause (V) of paragraph (iv), above,
shall exist, prepare a supplement or post-effective amendment to the
Registration Statement or the related prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter
delivered to the purchaser of the shares of the Purchased Stock the prospectus
will not contain an untrue statement of material fact or omit to state any
material fact necessary to make the statements therein not misleading;

          (vi) Use best efforts to obtain the withdrawal of any order
suspending the effectiveness of the Registration Statement at the earliest
possible moment; and

          (vii) Otherwise use its best efforts to comply with all applicable
rules and regulations of the SEC, and make available to its shareholders, as
soon as reasonably practicable, an earnings statement covering the period of at
least 12 months, but not more than 18 months, beginning with the first month of
the first fiscal quarter after the effective date of such Registration
Statement, which earnings statement shall satisfy the provisions of Section
11(a) of the Securities Act and Rule 158 under the Securities Act.

     (c) OBLIGATION OF SELLER TO FURNISH INFORMATION. It shall be a condition
precedent to the obligations of the Company to take any action pursuant to this
Agreement that the Seller shall furnish to the Company in writing such
information regarding itself, the shares of Purchased Stock and Common Stock it
then holds, and the intended method of disposition of such shares as shall
reasonably be required to timely effect the registration of the shares of
Purchased Stock.

     (d) DEFERRAL. If the Company shall furnish to the Seller a certificate
signed by the President or Chief Executive Officer of the Company (a "Demand
Deferral Notice") stating that, in the good faith judgment of the Board of
Directors of the Company, it would be seriously detrimental to the Company and
its shareholders for such Registration Statement to be filed and it is
therefore essential to defer the filing of such Registration Statement, then
the Company shall have the right to defer such filing for a period of not more
than 90 days after the date such Demand Deferral Notice is furnished to the
Seller; provided, however, that the Company may not utilize this right more
than once. Notwithstanding the foregoing, if such a Demand Deferral

                                       6
<PAGE>

Notice is delivered during the Registration Period, the Company shall continue
to be obligated to deliver such additional shares as described in, and in
accordance with, Section 6(a) above.

     (e) DISCONTINUANCE OF A DISPOSITION OF REGISTRABLE SHARES. If any shares
of Purchased Stock are registered for sale under the Securities Act, the Seller
shall cease any distribution of such shares under the Registration Statement
not more than once in any twelve-month period, for up to 90 days each, upon the
request of the Company if: (x) such distribution would require the public
disclosure of material non-public information concerning any transaction or
negotiations involving the Company or any of its affiliates that, in the good
faith judgment of the Company's Board of Directors, would materially interfere
with such transaction or negotiations, (y) such distribution would otherwise
require premature disclosure of information that, in the good faith judgment of
the Company's Board of Directors, would adversely affect or otherwise be
detrimental to the Company or (z) the Company proposes to file a registration
statement under the Securities Act for the offering and sale of securities for
its own account in an underwritten offering and the managing underwriter
therefor shall advise the Company in writing that in its opinion the continued
distribution of the Purchased Stock would adversely affect the success of the
offering of the securities proposed to be registered for the account of the
Company. The Company shall promptly notify the Seller at such time as (i) such
transactions or negotiations have been otherwise publicly disclosed or
terminated, (ii) such non-public information has been publicly disclosed or
counsel to the Company has determined that such disclosure is not required due
to subsequent events or (iii) the completion of such underwritten offering.

     (f) "MARKET STAND-OFF" AGREEMENT. If requested by the Company, the Seller
agrees that it will refrain from selling or otherwise transferring or disposing
of any shares of Purchased Stock or other shares of stock of the Company that
it then owns (other than to donees or partners of the Seller who agree to be
similarly bound) for a period of up to 90 days following the effective date of
the first Registration Statement of the Company filed under the Securities Act
in connection with a public offering of the Common Stock after the date of this
Agreement (other than a registration on Form S-4 or Form S-8). In order to
enforce the foregoing covenant, the Company shall have the right to place
restrictive legends on the certificates representing the shares of Purchased
Stock and to impose stop transfer instructions with respect to the shares of
Purchased Stock until the end of such period.

7. INDEMNIFICATION. In connection with the Registration Statement described in
section 6 above, or any Registration Statement prepared in connection with this
Agreement:

     (a) BY THE COMPANY. To the extent permitted by law, the Company will
indemnify and hold harmless the Seller, any underwriter (as defined in the
Securities Act), and all of their respective officers, directors, shareholders,
agents, employees or other control persons ("Related Persons") against any
actions, costs, losses, claims, damages or liabilities ("Claims or Damages"),
insofar as such Claims or Damages (or actions in respect thereto) arise out of
or are based upon the following actions by the Company or its Related Persons:
(i) any untrue statement or alleged untrue statement of a material fact
contained in a Registration Statement, including any preliminary prospectus or
final prospectus contained therein or any amendments or supplements thereto;
(ii) the omission or alleged omission to state therein a material fact required

                                       7
<PAGE>

to be stated therein, or necessary to make the statements therein not
misleading; or (iii) any violation or alleged violation by any party or its
agents of the Securities Act, the Securities Exchange Act of 1934 (the "Exchange
Act"), any federal or state securities law, or any rule or regulation
promulgated under any of the foregoing in connection with the offering covered
by such Registration Statement (collectively, "Violations"). The Company will
reimburse the Seller and each of its Related Persons for any legal or other
expenses they or any of them may incur in connection with investigating or
defending any such Claims or Damages; provided, however, that the indemnity
agreement contained in this Section 7(a) shall not apply to amounts paid in
settlement of any such Claims or Damages if such settlement is effected without
the consent of the Company (which consent shall not be unreasonably withheld
or delayed), nor shall the Company be liable in any such case for any such
Claims or Damages to the extent that they arise out of or are based upon a
Violation that occurs in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by
the Seller or any of its Related Persons.

     (b) BY SELLER. To the extent permitted by law, the Seller will indemnify
and hold harmless the Company, any underwriter (as defined in the Securities
Act), and all of their respective Related Persons, against any Claims or
Damages they or any of them may incur insofar as such Claims or Damages (or
actions in respect thereto) arise out of or are based upon any Violation of or
by the Seller or its Related Persons, in each case to the extent (and only to
the extent) that such Violation occurs in connection with written information
furnished by the Seller expressly for use in connection with a registration;
and the Seller will reimburse any legal or other expenses reasonably incurred
by the Company, any underwriter and any of their respective Related Persons, in
connection with investigating or defending any Claim or Damage; provided,
however, that the indemnity agreement contained in this subsection 7(b) shall
not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Seller, which consent shall not be unreasonably withheld or delayed; and
provided further, that the total amounts payable in indemnity by the Seller
under this Section 7(b) in respect of any Violation shall not exceed the net
proceeds received by the Seller in the registered offering out of which such
Violation arises.

     (c) CONTRIBUTION. If the indemnification provided for in this Section 7 is
unavailable to an indemnified party under Section 7(a) or Section 7(b) hereof
(other than by reason of exceptions provided in those Sections) in respect of
any Claims or Damages referred to therein, then each applicable indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such Claims or
Damages in such proportion as is appropriate to reflect the relative fault of
the Company on the one hand and of the Seller on the other in connection with
the statements or omissions which resulted in such Claims or Damages, as well
as any other relevant equitable considerations. The relative fault of the
Company on the one hand and of the Seller on the other shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company or by the Seller
and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The amount paid
or payable by a party as a result of the Claims or Damages referred to above
shall be deemed to include any legal or other fees or expenses reasonably
incurred by such party in connection with investigating or defending any action
or claim.

                                       8
<PAGE>

                  The Company and the Seller agree that it would not be just and
equitable if contribution pursuant to this Section 7(c) were determined by pro
rata allocation or by any other method of allocation which does not take account
of the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this Section 7(c), the Seller shall
not be required to contribute any amount in excess of the amount by which the
total price at which the Purchased Stock sold by the Seller and distributed to
the public exceeds the amount of any damages which the Seller has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. No Person (as defined in Section 2 of the Securities Act)
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.

     (d) NOTICE. Promptly after receipt by an indemnified party under this
Section 7 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Section 7,
deliver to the indemnifying party a written notice of the commencement thereof,
and the indemnifying party shall have the right to participate in, and, to the
extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall
have the right to retain its own counsel, with the fees and expenses to be paid
by the indemnifying party, if representation of such indemnified party by the
counsel retained by the indemnifying party would be inappropriate due to actual
or potential conflict of interests between such indemnified party and any other
party represented by such counsel in such proceeding. The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action, to the extent that it is materially
prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
7, but such a failure will not relieve it of any liability that it might have
to any indemnified party otherwise than under this Section 7.

     (e) DEFECT ELIMINATED IN FINAL PROSPECTUS OR SUPPLEMENT OR POST-EFFECTIVE
AMENDMENT. The foregoing indemnity agreements of the Company and the Seller are
subject to the condition that, insofar as they relate to any Violation made (x)
in a preliminary prospectus but eliminated or remedied in the amended
prospectus on file with the SEC at the time the Registration Statement in
question becomes effective or in the amended prospectus filed with the SEC
pursuant to SEC Rule 424(b) (the "Final Prospectus") or (y) in the Final
Prospectus but eliminated or remedied in a supplement or post-effective
amendment contemplated by Section 4(i) hereof, as applicable, such indemnity
agreement shall not inure to the benefit of any person if a copy of the Final
Prospectus or such supplement or post-effective amendment, as applicable, was
furnished to the indemnified party and was not furnished to the person
asserting the loss, liability, claim or damage at or prior to the time such
action is required by the Securities Act.

8. SURVIVAL. The obligations of the Company and the Seller under Section 7
shall survive the completion of any resale of Purchased Stock by the Seller in
a Registration Statement. The representations and warranties of the parties
under Sections 2 and 3 hereof, respectively, shall survive for a period of one
year from the date hereof.

9. MISCELLANEOUS.

                                      9
<PAGE>

     (a) This Agreement shall bind the parties, their respective heirs,
administrators, executors, successors and assigns.

     (b) Each party hereto will, upon request, execute and deliver any
additional documents deemed by the other party to be necessary or desirable to
complete the transactions contemplated hereby.

     (c) All prior or contemporaneous agreements, contracts, promises,
representations and statements, if any, between the parties hereto pertaining
to the transactions contemplated hereby, are merged into this Agreement. This
Agreement sets forth the entire understanding between the parties, and there
are no terms, conditions, representations, warranties or covenants other than
those contained herein.

     (d) Any notice required or permitted by this Agreement shall be in writing
and shall be deemed sufficient upon receipt, when delivered personally or by
courier, overnight delivery service or confirmed facsimile, or 48 hours after
being deposited in the U.S. mail as certified or registered mail with postage
prepaid, if such notice is addressed to the party to be notified at such
party's address or facsimile number as set forth on the signature page hereto
or as subsequently modified by written notice.

     (e) This Agreement, and any provision hereof, may not be amended,
modified, released or discharged, in whole or in part, except by a writing
signed by the parties hereto.

     (f) This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which together shall constitute
one instrument.

     (g) The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting
this Agreement.

     (h) This Agreement shall be governed by the laws of the State of New York,
without regard to its principles of conflict of laws.

     (i) The Seller will bear all costs, fees and expenses incurred by it in
connection with the negotiation, documentation, and/or enforcement of its
rights under this Agreement and any related matters or documents.
Notwithstanding the foregoing, all expenses incurred in connection with a
registration pursuant to this Agreement (excluding underwriters' and brokers'
discounts and commissions), including, without limitation all federal or state
"blue sky" registration and qualification fees, printers' and accounting fees,
and fees and disbursements of counsel for the Company, shall be borne by the
Company.

                                      10
<PAGE>

                            [Signature Page Follows]

<PAGE>

         The parties have executed this Note and Common Stock Purchase Agreement
as of the date first written above.

                                       COMPANY:

                                       ACCLAIM ENTERTAINMENT, INC.

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:
                                       Address:

                                       Facsimile No.:

                                       SELLER:

                                       Triton Capital Investments, Ltd.

                                       By:
                                          -------------------------------------
                                       Name:  Roger Richter
                                       Title:
                                       Address: 1 Sansome Street
                                                San Francisco, CA 94104

                                                Facsimile No.:

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