<PAGE>

                                                                    Exhibit 10.7

                              EMPLOYMENT AGREEMENT

AGREEMENT, effective as of the 22nd day of July, 2002 by and between i3 MOBILE,
INC., a Delaware corporation with principal executive offices at 181 Harbor
Drive, Stamford, Connecticut 06902 ("i3 Mobile"), and SEAN J. DANIELS, residing
at 303 East 60th Street, #18F, New York, New York 10022 ("Daniels").

                              W I T N E S S E T H :

WHEREAS, i3 Mobile is desirous of employing Daniels as Senior Vice President,
Business Affairs and General Counsel of i3 Mobile and Daniels is desirous of
serving in such capacity for i3 Mobile, all upon the terms and subject to the
conditions hereinafter provided.

NOW, THEREFORE, In consideration of the mutual covenants and agreements herein
contained, the parties hereto, intending to be legally bound, agree as follows:

1.   Employment

i3 Mobile agrees to employ Daniels, and Daniels agrees to be employed by i3
Mobile, upon the terms and subject to the conditions of this Agreement.

2.   Term

The employment of Daniels by i3 Mobile as provided in Section 1 will be for a
period of two (2) years commencing on the date hereof, unless sooner terminated
as hereinafter provided (the "Term"), and shall automatically renew from year to
year thereafter unless either party gives at least ninety (90) days prior
written notice of termination. Daniels understands and accepts that all terms
contained herein are subject to the formal written ratification and approval of
the Compensation Committee and/or the Board of Directors of i3 Mobile.

3.   Duties; Best Efforts; Indemnification

Daniels shall serve as Senior Vice President, Business Affairs and General
Counsel of i3 Mobile reporting directly to John A. Lack, President and Chief
Executive Officer, and shall perform, subject to the policy directions of the
President and Chief Executive Officer and the Board of Directors of i3 Mobile,
such duties as are customarily performed by the Senior Vice President, Business
Affairs and General Counsel. Daniels shall also have such other powers and
duties as may be from time to time prescribed by the President and Chief
Executive Officer or the Board of Directors of i3 Mobile, provided that the
nature of Daniels' powers and duties so prescribed shall not be inconsistent
with Daniels' position and duties hereunder.

Daniels shall devote his business time, attention and energies to the business
and legal affairs of i3 Mobile, shall use his best efforts to advance the best
interests of i3 Mobile and shall not, during the Term, be actively engaged in
any other business activity,

<PAGE>

whether or not such business activity is pursued for gain, profit or other
pecuniary advantage, that will interfere with the performance by Daniels of his
duties hereunder or Daniels' availability to perform such duties or that will
adversely affect, or negatively reflect upon, i3 Mobile.

Subject to the provisions of i3 Mobile's Certificate of Incorporation and
Bylaws, each as amended from time to time, i3 Mobile shall indemnify Daniels to
the fullest extent permitted by the General Corporation Law of the State of
Delaware, as amended from time to time, for all amounts (including, without
limitation, judgments, fines, settlement payments, expenses and attorney's fees)
actually and reasonably incurred or paid by Daniels on a when-and as-incurred
basis in connection with any action, suit, investigation or proceeding arising
out of or relating to the performance by Daniels of services for, or the acting
by Daniels as a director, officer, or employee of, i3 Mobile, or any other
person or enterprise at i3 Mobile's request if Daniels acted in good faith and
in a manner he reasonably believed to be in or not opposed to the best interests
of i3 Mobile, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful. i3 Mobile shall use its
best efforts to obtain and maintain in full force and effect during the Term
directors' and officers' liability insurance policies providing full and
adequate protection to Daniels for his capacity, provided that the Board of
Directors of i3 Mobile shall have no obligation to purchase such insurance if,
in its opinion, coverage is available only on unreasonable terms, in which case,
Daniels shall be immediately notified of such decision and such event shall
qualify as "Good Reason" under the terms of this Agreement, affording Daniels
any and all such rights commensurate with such designation, as outlined in
Section 7 (d), below. Daniels agrees that, if it is finally judicially
determined or finally determined by a mutually agreed upon independent
arbitrator that he is not or was not entitled to any amounts paid on his behalf
or for which he has been reimbursed under this third paragraph of this Section 3
by virtue of having failed to have met the standards set forth in the first
sentence of this third paragraph of this section 3, Daniels shall promptly
reimburse i3 Mobile for such amounts.

4.   Place of Performance

In connection with his employment by i3 Mobile, Daniels shall be based at the
principal executive offices of i3 Mobile which shall be in the New York City
Metropolitan area.

5.   Compensation

(a) Base Salary. i3 Mobile shall pay Daniels a base salary (the "Base Salary")
at a rate of not less than $200,000 per annum, payable in equal semi-monthly
installments during the Term. The President and Chief Executive Officer of i3
Mobile at least annually will review the Base Salary and other compensation
during the Term with a view to increase thereof based upon then prevailing
industry salary scales for equivalently valued businesses for the Senior Vice
President, Business Affairs and General Counsel positions, Daniels' performance,
the performance of i3 Mobile, inflation and other relevant factors.

                                       2

<PAGE>

(b) Performance Bonus. i3 Mobile's variable compensation program provides a
bonus of up to fifty percent (50%) of Daniels' Base Salary based on his
individual achievement with respect to company performance metrics as determined
by the President and CEO and the Board of Directors.

(b) Out-of-Pocket Expenses. i3 Mobile shall promptly pay to Daniels the
reasonable expenses incurred by him in the performance of his duties hereunder,
including, without limitation, those incurred in connection with business
related travel or entertainment, or, if such expenses are paid directly by
Daniels, shall promptly reimburse him for such payment, provided that Daniels
properly accounts therefore in accordance with i3 Mobile's policy. i3 Mobile
shall provide Daniels with a corporate credit card to be used with respect to
the foregoing expenses.

(c) Participation in Benefit Plans. Daniels shall be eligible to participate in
the current i3 Mobile health, accident, life and disability insurance, pension,
profit sharing, stock option, stock purchase plans or arrangements. Daniels
shall also be entitled to participate in any other employee benefit plan or
arrangement made available in the future by i3 Mobile to its executives and key
management employees.

(d) Vacation. Daniels shall be entitled to paid vacation days in each calendar
year determined by i3 Mobile from time to time, in accordance with i3 Mobile's
standard vacation policy; prorated in any calendar year during which Daniels is
employed hereunder for less than an entire year in accordance with the number of
days in such year during which he is so employed. Daniels shall also be entitled
to all paid holidays given by i3 Mobile to its executives and key management
employees.

(e) Automobile. i3 Mobile shall provide Daniels with exclusive use of an
automobile for business purposes during the Term. i3 Mobile shall pay the cost
of the monthly lease for this automobile which amount shall not exceed $650 per
month. Daniels shall be responsible for all other automobile related expenses
including, without limitation, insurance, gasoline, scheduled maintenance and
repairs.

(f) Stock Options. i3 Mobile shall, subject to approval by the Board of
Directors in accordance with i3 Mobile's plans and procedures, grant to Daniels
stock options ("Options") under its 2000 Stock Incentive Plan, as amended, to
acquire 200,000 shares of i3 Mobile's Common Stock at an exercise price of forty
cents ($0.40), the closing price of i3 Mobile's common shares as reported by the
NASDAQ National Exchange on July 22, 2002. The Options shall vest one-third on
the twelve month anniversary of the date hereof, one-third on the twenty-four
month anniversary of the date hereof and one-third on the thirty-six month
anniversary of the date hereof as reflected on a separate Incentive Stock Option
Grant Agreement, which shall be provided to Daniels within 30 days of the date
hereof.

6.   Termination

Daniels' employment hereunder shall be terminated upon Daniels' death and may be
terminated as follows:

                                       3

<PAGE>

(a) By i3 Mobile for "Cause." For purposes of this Agreement, a termination for
Cause shall occur if Daniels has (i) willfully failed to comply with any of the
material terms of this Agreement, (ii) willfully and repeatedly failed to
perform his duties hereunder, (iii) engaged in gross misconduct materially
injurious to i3 Mobile or (iv) been convicted of, or pleaded nolo contendere to,
a felony or a crime of moral turpitude; provided, however, that Daniels shall
receive thirty (30) days' advance written notice specifying the actions
constituting Cause and Daniels shall not have cured the actions constituting
Cause during such thirty (30) day period.

(b) By i3 Mobile due to Daniels' "Disability." For purposes of this Agreement, a
termination for Disability shall occur upon the thirtieth (30th) day after i3
Mobile has provided a written termination notice to Daniels (i) supported by a
written statement from a reputable independent physician to the effect that
Daniels shall have become so incapacitated as to be unable to resume, within the
ensuing twelve (12) months, his employment hereunder by reason of-physical or
mental illness or injury, or (ii) indicating that Daniels has been unable to
substantially perform his duties hereunder for six (6) consecutive months or for
nine (9) months in any twelve (12) month period (exclusive of any vacation
permitted under Section 5(f) hereof) by reason of any physical or mental
illness. For purposes of this Section 6(b), Daniels agrees to make himself
available and to cooperate in any reasonable examination by a reputable
independent physician retained by i3 Mobile.

(c) By Daniels for "Good Reason." For purposes of this Agreement, "Good Reason"
shall mean any of the following that occurs during the Term, if not cured and
corrected by i3 Mobile or its successor within ten business days after written
notice thereof by Daniels to i3 Mobile or its successor: (i) any change in
Daniels' title or position that constitutes a diminution in authority; (ii) any
material reduction in Daniels' annual base salary not consented to by Daniels;
(iii) the relocation of the principal executive offices of i3 Mobile in excess
of fifty (50) miles from New York City, unless consented to by Daniels; (iv) i3
Mobile's failure to maintain directors' and officers' liability insurance
policies providing full and adequate protection to Daniels in his capacity; (v)
a Change in Control as defined below; (vi) a material breach of this Agreement
by i3 Mobile or its successor or (vii) a substantial diminution in Daniels'
duties and responsibilities (other than a change due to Daniels' Total and
Permanent Disability or as an accommodation under the Americans With
Disabilities Act, to which Daniels consents); provided, however, that no
diminution of title, position, duties or responsibilities shall be deemed to
occur solely because i3 Mobile becomes a subsidiary of another corporation or
entity or because there has been a change in the reporting hierarchy incident
thereto involving Daniels. "Change in Control" means: (i) the effective date of
any merger, share exchange, consolidation or other reorganization or business
combination of i3 Mobile if immediately after such transaction either (A)
persons who were directors of i3 Mobile immediately prior to such transaction do
not constitute at least a majority of the directors of the surviving entity, or
(B) persons who hold a majority of the outstanding voting securities entitled to
vote generally in the election of directors of the surviving entity are not
persons who held a majority of the voting capital stock of i3 Mobile immediately
prior to such transaction; (ii) the closing of a sale or conveyance of all or
substantially all of

                                       4

<PAGE>

the assets of i3 Mobile; (iii) an acquisition (other than from i3 Mobile) in a
transaction or a series of related transactions by any person, entity or
"group," within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934 (the "Exchange Act"), (excluding for this purpose, (A) i3
Mobile or its subsidiaries, (B) any employee benefit plan of i3 Mobile or its
subsidiaries which acquires beneficial ownership of voting securities of i3
Mobile, (C) an underwriter temporarily holding securities pursuant to an
offering of such securities, or (D) any corporation owned, directly or
indirectly, by the stockholders of i3 Mobile in substantially the same
proportions as their ownership of the then outstanding voting securities of i3
Mobile entitled to vote generally in the election of directors) of beneficial
ownership, within the meaning of Rule 13d-3 promulgated under the Exchange Act,
of 50% or more of either the then outstanding shares of common stock or the
combined voting power of i3 Mobile's then outstanding voting securities entitled
to vote generally in the election of directors; (iv) individuals who were the
Board's nominees for election as directors immediately prior to a meeting of the
stockholders of i3 Mobile involving an actual or threatened election contest
relating to the election of the directors of i3 Mobile, as such terms are used
in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, cease to
constitute a majority of the Board following the election; or (v) the
dissolution or liquidation of i3 Mobile, regardless of the manner in which such
transaction is constructed.

(d) By Daniels for "Change of CEO." For purposes of this Agreement, a "Change of
CEO" shall occur only if the Board of Directors of i3 Mobile unilaterally
relieves John A. Lack of his duties as CEO of i3 Mobile, and such action shall
qualify as "Good Reason" under this Agreement. Daniels shall have ten (10) days
from his receipt of notice of the effective date of such Change of CEO to
exercise his right to terminate under this Section 6(d). This provision shall
not apply in the event John A. Lack either voluntary resigns his position or is
terminated for Cause. This provision shall apply to no CEO other than John A.
Lack.

7.  Compensation upon Termination

(a) In the event of the termination of Daniels' employment as a result of
Daniels' death, i3 Mobile shall (i) pay to Daniels' estate his Base Salary and
Performance Bonus through the date of his death and (ii) for twelve (12) months
following his death (as if such termination had not occurred) provide
continuation coverage to the members of Daniels' family under all major medical
and other health, accident, life or other disability plans and programs in which
such family members participated immediately prior to his death.

(b) In the event of the termination of Daniels' employment by i3 Mobile for
Cause or by Daniels other than for Good Reason, i3 Mobile shall pay to Daniels
his Base Salary and accrued Performance Bonus through the date of his
termination, and Daniels shall have no further entitlement to any other
compensation or benefits from i3 Mobile.

(c) In the event of the termination of Daniels' employment by i3 Mobile due to
Disability, i3 Mobile shall pay to Daniels his Base Salary and accrued
Performance

                                       5

<PAGE>

Bonus through the date of his termination. In addition, for twelve (12) months
following any such termination, i3 Mobile shall (i) continue to pay Daniels the
Base Salary in effect at the time of such termination less the amount, if any,
then payable to Daniels under any disability benefits of i3 Mobile and (ii)
provide Daniels continuation coverage under all major medical and other health,
accident, life or other disability plans and programs in which Daniels
participated immediately prior to such termination.

(d) In the event that Daniels' employment is terminated (i) by i3 Mobile other
than (A) as a result of Daniels' death or (B) for reasons specified in Section
6(a) or (b) or (ii) by Daniels for Good Reason, i3 Mobile shall continue to pay
to Daniels (X) if Daniels' employment is terminated before January 22, 2003 his
Base Salary for three (3) months following any such termination or (Y) if
Daniels' employment is terminated on or after January 22, 2003 his Base Salary
and Performance Bonus for six (6) months following any such termination and, in
either case, provide Daniels continuation coverage under all major medical and
other health, accident, life or other disability plans or programs in which
Daniels participated, immediately prior to such termination and continue all
automobile lease payments specified in Section 5(f) for the same period.
Notwithstanding the foregoing, the amounts otherwise payable to Daniels pursuant
to this Section 7(d) shall be subject to reduction (but not below zero) to the
extent determined necessary by i3 Mobile to prevent any payments or benefits to
or for the benefit of Daniels (whether pursuant to this Agreement or any other
plan, arrangement or agreement) from being treated as a "parachute payment"
under Section 280G of the Internal Revenue Code of 1986, as amended. In the
event that Daniels' employment is terminated by Daniels for Good Reason, all
stock options and other equity incentive awards granted to Daniels by i3 Mobile
shall immediately fully vest on an accelerated basis and be exercisable for a
30-day period following the occurrence of the event comprising Good Reason upon
Change in Control or Change of CEO.

(e) If Daniels disputes the termination of his employment by i3 Mobile pursuant
to Section 6(a) or 6(b) herein and such dispute results in a final determination
to the effect that i3 Mobile did not have a proper basis for such termination,
i3 Mobile shall promptly pay to Daniels all payments Daniels would have been
entitled to receive had his employment hereunder not been improperly terminated;
provided, however, that any payments or benefits under this Section 7(e) shall
be reduced by the amount of any payments or benefits provided under any other
provision of Section 7 hereof.

(f) The continuation coverage under any major medical and other health,
accident, life or other disability plans and programs for the periods provided
in Section 7(a), 7(c) and 7(d) shall be provided (i) at the expense of i3 Mobile
and (ii) in satisfaction of i3 Mobile's obligation under Section 4980B of the
Internal Revenue Code (and any similar state law) with respect to the period of
time such benefits are continued hereunder.

(g) This Section 7 sets forth the only obligations of i3 Mobile with respect to
the termination of Daniels' employment with i3 Mobile, and Daniels acknowledges
that, upon the termination of his employment, he shall not be entitled to any
payments or benefits which are not explicitly provided herein.

                                       6

<PAGE>

8.   Covenant Regarding Inventions and Copyrights

Daniels shall disclose promptly to i3 Mobile any and all inventions,
discoveries, improvements and patentable or copyrightable works initiated,
conceived or made by him, either alone or in conjunction with others, during the
Term and related to the business or activities of i3 Mobile and he assigns all
of his interest therein to i3 Mobile or its nominee; whenever requested to do so
by i3 Mobile, Daniels shall execute any and all applications, assignments or
other instruments which i3 Mobile shall deem necessary to apply for and obtain
letters patent or copyrights of the United States or any foreign country, or
otherwise protect i3 Mobile's interest therein. These obligations shall continue
beyond the conclusion of the Term with respect to inventions, discoveries,
improvements or copyrightable works initiated, conceived or made by Daniels
during the Term and shall be binding upon Daniels' assigns, executors,
administrators and other legal representatives.

9.   Protection of Confidential Information

Daniels acknowledges that he has been and will be provided with information
about, and his employment by i3 Mobile will, throughout the Term, bring him into
close contact with, many confidential affairs of i3 Mobile and its subsidiaries,
including proprietary information about costs, profits, markets, sales,
products, key personnel, pricing policies, operational methods, technical
processes and other business affairs and methods, plans for future developments
and other information not readily available to the public, all of which are
highly confidential and proprietary and all of which were developed by i3 Mobile
at great effort and expense. Daniels further acknowledges that the services to
be performed by him under this Agreement are of a special, unique, unusual,
extraordinary and intellectual character, that the business of i3 Mobile will be
conducted throughout the world (the "Territory"), that its services will be
marketed throughout the Territory, that i3 Mobile competes and will compete in
all of its business activities with other organizations which are located in any
part of the Territory and that the nature of the relationship of Daniels with i3
Mobile is such that Daniels is capable of competing with i3 Mobile from nearly
any location in the Territory. In recognition of the foregoing, Daniels
covenants and agrees during the Term and for a period of five (5) years
thereafter:

     (i)   That he will keep secret all confidential matters of i3 Mobile and
not disclose them to anyone outside of i3 Mobile, either during or after the
Term, except with i3 Mobile's prior written consent or, if during the Term, in
the performance of his duties hereunder, Daniels makes a good faith
determination that it is the best interest of i3 Mobile and to disclose such
matters;

     (ii)  That he will not make use of any such confidential matters for his
own purposes or the benefit of anyone other than i3 Mobile; and

     (iii) That he will deliver promptly to i3 Mobile on termination of this
Agreement, or at any time i3 Mobile may so request, all confidential memoranda,
notes, records,

                                       7

<PAGE>

reports and other confidential documents (and all copies thereof) relating to
the business of i3 Mobile, which he may then possess or have under his control.

10.  Restriction on Competition, Interference and Solicitation

In recognition of the considerations described in Section 9 hereof, Daniels
covenants and agrees that, during the Term and for a period of one (1) year or
such longer period of time during which Daniels is continuing to receive
compensation from i3 Mobile after such termination, Daniels will not, directly
or indirectly, (A) enter into the employ of, or render any services to, any
person, firm or corporation engaged in any business directly competitive with
the business of i3 Mobile in any part of the Territory in which i3 Mobile is
actively engaged in business on the date of termination; (B) engage in any such
business for his own account; (C) become interested in any such business as an
individual, partner, shareholder, creditor, director, officer, principal, agent,
employee, trustee, consultant, advisor, franchisee or in any other relationship
or capacity; or (D) interfere with i3 Mobile's relationship with, or endeavor to
employ or entice away from i3 Mobile any person, firm, corporation, governmental
entity or other business organization who or which is or was an employee,
customer or supplier of, or maintained a business relationship with, i3 Mobile
at any time (whether before or after the Term), or which i3 Mobile has solicited
or prepared to solicit; provided, however, that the provisions of clause (A)
shall not be deemed to preclude Daniels from engagement by a corporation some of
the activities of which are competitive with the business of i3 Mobile if
Daniels' engagement does not relate, directly or indirectly, to such competitive
business, and nothing contained in this Section 10 shall be deemed to prohibit
Daniels from acquiring or holding, solely for investment, publicly traded
securities of any corporation some of the activities of which are competitive
with the business of i3 Mobile so long as such securities do not, in the
aggregate, constitute more than five percent (5%) of any class or series of
outstanding securities of such corporation.

11.  Specific Remedies

For purposes of Sections 8, 9 and 10 of this Agreement, references to i3 Mobile
shall include all current and future majority-owned subsidiaries of i3 Mobile
and all current and future joint ventures in which i3 Mobile may from time to
time be involved. It is understood by Daniels and i3 Mobile that the covenants
contained in this Section 11 and in Sections 8, 9 and 10 hereof are essential
elements of this Agreement and that, but for the agreement of Daniels to comply
with such covenants, i3 Mobile would not have agreed to enter into this
Agreement. i3 Mobile and Daniels have independently consulted with their
respective counsel and have been advised concerning the reasonableness and
propriety of such covenants with specific regard to the nature of the business
currently conducted by i3 Mobile and all interests of i3 Mobile. Daniels agrees
that the covenants of Sections 8, 9 or 10 hereof are reasonable and valid. If
Daniels commits a breach of any of the provisions of Sections 8, 9 or 10 hereof,
such breach shall be deemed to be grounds for termination for Cause. In
addition, Daniels acknowledges that i3 Mobile may have no adequate remedy at law
if he violates any of the terms hereof. Daniels therefore understands and agrees
that i3 Mobile shall have

                                       8

<PAGE>

(i) the right to have such provisions specifically enforced by any court having
equity jurisdiction, it being acknowledged and agreed that any such breach will
cause irreparable injury to i3 Mobile and that money damages will not provide an
adequate remedy to i3 Mobile, and (ii) the right to require Daniels to account
for and pay over to i3 Mobile all compensation, profits, monies, accruals,
increments and other benefits (collectively "Benefits") derived or received by
Daniels as a result of any transaction constituting a breach of any of the
provisions of Sections 8, 9 or 10 and Daniels hereby agrees to account for and
pay over such Benefits to i3 Mobile.

12.  Independence, Severability and Non-Exclusivity

Each of the rights enumerated in Sections 8, 9 or 10 hereof and the remedies
enumerated in Section 11 hereof shall be independent of the others and shall be
in addition to and not in lieu of any other rights and remedies available to 13
Mobile at law or in equity. If any of the covenants contained in Sections 8, 9
or 10, or any part of any of them, is hereafter construed or adjudicated to be
invalid or unenforceable, the same shall not affect the remainder of the
covenant or covenants or right or remedies which shall be given full effect
without regard to the invalid portions. The parties intend to and do hereby
confer jurisdiction to enforce the covenants contained in Section 8, 9 or 10 and
the remedies enumerated in Section 11 upon the federal and state courts of
Connecticut sitting in Fairfield County. If any of the covenants contained in
Sections 8, 9 or 10 is held to be invalid or unenforceable because of the
duration of such provision or the area covered thereby, the parties agree that
the court making such determination shall be the power to reduce the duration
and/or area of such provision and in its reduced form said provision shall then
be enforceable. No such holding of invalidity or unenforceability in one
jurisdiction shall bar or in any way affect i3 Mobile's right to the relief
provided in Section 11 or otherwise in the courts of any other state or
jurisdiction within the geographical scope of such covenants as to breaches of
such covenants in such other respective states or jurisdictions, such covenants
being, for this purpose, severable into diverse and independent covenants.

13.  Disputes

If i3 Mobile or Daniels shall dispute any termination of Daniels' employment
hereunder or if a dispute concerning any payment hereunder shall exist:

(a)  either party shall have the right (but not the obligation), in addition to
all other rights and remedies provided by law, to compel binding, enforceable
and non-appealable arbitration of the dispute in the City of New York under the
rules of the American Arbitration Association by giving written notice of
arbitration to the other party within thirty (30) days after notice of such
dispute has been received by the party to whom notice has been given; and

(b)  if such dispute (whether or not submitted to arbitration pursuant to
Section 13(a) hereof) results in a determination that (i) i3 Mobile did not have
the right to terminate Daniels' employment under the provisions of this
Agreement or (ii) the position taken by

                                       9

<PAGE>

Daniels concerning payments to Daniels is correct, i3 Mobile shall promptly pay,
or if theretofore paid by Daniels, shall promptly reimburse Daniels for, all
costs and expenses (including reasonable attorneys' fees) reasonably incurred by
Daniels in connection with such dispute.

14.  Successors; Binding Agreement

In the event of a future disposition by i3 Mobile (whether direct or indirect),
by sale of assets or stock, merger, consolidation or otherwise of all or
substantially all of its business and/or assets in a transaction to which
Daniels consents, i3 Mobile will require any successor, by agreement in form and
substance satisfactory to Daniels, to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that i3 Mobile would be
required to perform if no such disposition had taken place. This Agreement and
all rights of Daniels hereunder shall inure to the benefit of, and be
enforceable by, Daniels' personal or legal representatives, executors,
administrators, administrators cta, successors, heirs, distributees, devisees
and legatees. If Daniels should die while any amount would still be payable to
him hereunder if he had continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement to
Daniels' estate.

15.  Notices

All notices, consents and other communications required or permitted to be given
by any party hereunder shall be in writing (including telecopy or other similar
writing) and shall be given by personal delivery, certified or registered mail,
postage prepaid, or telecopy (or other similar writing) as follows:

To i3 Mobile:        181 Harbor Drive
                     Stamford, CT 06902
                     Attn: President and Chief Executive Officer
                     Telecopy: (203) 428-3204

To Daniels:          303 East 60th Street, Apt 18F
                     New York, New York 10022

or at such other address or telecopy number (or other similar number) as either
party may from time to time specify to the other. Any notice, consent or other
communication required or permitted to be given hereunder shall have been deemed
to be given on the date of mailing, personal delivery or telecopy or other
similar means (provided the appropriate answer back is received) thereof and
shall be conclusively presumed to have been received on the second business day
following the date of mailing or, in the case of personal delivery or telecopy
or other similar means, the day of delivery thereof, except that a change of
address shall not be effective until actually received by either party in any
form.

                                       10

<PAGE>

16.  Modifications and Waivers

No term, provision or condition of this Agreement may be modified or discharged
unless such modification or discharge is authorized by the President and Chief
Executive Officer or Board of Directors of i3 Mobile and is agreed to in writing
and signed by Daniels. No waiver by either party hereto of any breach by the
other party hereto of any term, provision or condition 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.

17.  Entire Agreement

This Agreement constitutes the entire understanding between the parties hereto
relating to the subject matter hereof, superseding all negotiations, prior
discussions, preliminary agreements and agreements relating to the subject
matter hereof made prior to the date hereof.

18.  Law Governing

Except as otherwise explicitly noted, this Agreement shall be governed by and
construed in accordance with the laws of the State of Connecticut (without
giving effect to the principles of conflicts of law).

19.  Invalidity

Except as otherwise specified herein, the invalidity or unenforceability of any
term or terms of this Agreement shall not invalidate, make unenforceable or
otherwise affect any other term of this Agreement which shall remain in full
force and effect.

20.  Headings

The headings contained in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day
and year set forth above.

                          i3 MOBILE, INC.


                          By:  /s/ John A. Lack
                               --------------------------------
                               John A. Lack
                               President and Chief Executive Officer

                               /s/ Sean J. Daniels
                               --------------------------
                               Sean J. Daniels

                                       11