Lapsed patents are patents that expired because the maintenance fee was not paid in due time.
Maintenance fees on US patents are due 3.5, 7.5 and 11.5 years after grant of the patent (in many other countries, they are due every year and are called annuities). US patents maintenance fees cannot be paid more than 6 months before the due date. They can be paid for an additional six months after the due date with a surcharge (this actually is a provision of the Paris Convention).
The USPTO provides a web application to view the payment windows for each maintenance fee. In this specific case:
The same application (and Public Pair) shows that the second maintenance fee (8th year) was not paid. Hence the lapse.
However, lapsed patents can be revived under certain conditions. Usually, including in the U.S., patents can only be revived if the proprietor convincingly argues that payment delay was unintentional or unavoidable. In the first case (unintentional), there is a specific time window of 24 months after the close date (in this case 11/21/2010) for filing such a petition, and Public Pair shows that none was filed for this patent. There is no time limit for the unavoidable reason, but it's much harder to argue.
Please note that patents are often grouped in families, with continuations or extensions in other countries. An applicant may let a patent lapse and abandon a patent to save on maintenance fees, while protection could be granted through other patents of the same family.