Document:

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                        THE GREAT ATLANTIC & PACIFIC TEA
                                  COMPANY, INC.

                                       TO

                   JPMORGAN CHASE BANK (successor by merger to
                      Manufacturers Hanover Trust Company),

                                   as Trustee

                       ----------------------------------

                          FIRST SUPPLEMENTAL INDENTURE

                          Dated as of December 4, 2001

                                       to

                                    INDENTURE

                           Dated as of January 1, 1991

                       ----------------------------------

                                   Relating to
                                  $200,000,000
                           7.70% Senior Notes due 2004

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                  FIRST SUPPLEMENTAL INDENTURE dated as of December 4, 2001
(this "First Supplemental Indenture"), between THE GREAT ATLANTIC & PACIFIC TEA
COMPANY, INC., a corporation duly organized and existing under the laws of the
State of Maryland (the "Company" or the "Issuer"), having its principal office
at 2 Paragon Drive, Montvale, New Jersey 07645, and JPMORGAN CHASE BANK
(successor by merger to Manufacturers Hanover Trust Company), a corporation duly
organized and existing under the laws of the State of New York, as trustee (the
"Trustee").

                             RECITALS OF THE COMPANY

                  WHEREAS, the Company has heretofore executed and delivered to
the Trustee an Indenture, dated as of January 1, 1991 (the "Indenture"),
providing for the issuance from time to time of Securities (as defined in the
Indenture), to be issued in one or more series as provided in the Indenture;

                  WHEREAS, the Company has heretofore issued under the Indenture
$200,000,000 aggregate principal amount of 7.70% Senior Notes due 2004 (the
"2004 Notes");

                  WHEREAS, the Company desires by this First Supplemental
Indenture, pursuant to Section 902 of the Indenture, to amend certain provisions
in the Indenture as they relate to the 2004 Notes and thereby to modify the
rights of the Holders (as defined in the Indenture) of the 2004 Notes under the
Indenture;

                  WHEREAS, the Company, pursuant to an Offer to Purchase and
Consent Solicitation Statement, dated November 19, 2001 (the "Statement" and,
together with the related Consent and Letter of Transmittal, the "Offer
Documents"), has offered to purchase any and all of the outstanding 2004 Notes
(the "Offer") and solicited the consents of the Holders of the 2004 Notes to the
amendments to the Indenture contained herein (the "Consent Solicitation"), upon
the terms and subject to the conditions set forth in the Offer Documents;

                  WHEREAS, the Holders of a majority in principal amount of the
Outstanding (as defined in the Indenture) 2004 Notes have delivered, pursuant to
the Consent Solicitation and in accordance with the requirements of Section 902
of the Indenture, written consents to the amendments to the Indenture contained
herein;

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                                      -2-

                  WHEREAS, all conditions precedent provided for in the
Indenture with respect to the execution of this First Supplemental Indenture
have been complied with; and

                  WHEREAS, in accordance with Section 902 of the Indenture, it
is not necessary for the Act of the Holders of the 2004 Notes under Section 902
of the Indenture to approve the particular form of this First Supplemental
Indenture, and it is sufficient for such Act to approve to the Proposed
Amendments (as defined in the Offer Documents).

                  NOW, THEREFORE, in consideration of the foregoing premises,
the Company and the Trustee, for the equal and proportionate benefit of the
Holders of the 2004 Notes, mutually covenant and agree as follows:

                                   ARTICLE ONE

             DEFINITIONS AND OTHER PROVISION OF GENERAL APPLICATION

                  Section 1.01. Definitions. Terms used but not otherwise
defined herein shall have the respective meanings given them in the Indenture.

                  Section 1.02. Effect of First Supplemental Indenture. In
accordance with Section 904 of the Indenture, upon the execution of this First
Supplemental Indenture, the Indenture shall be modified in accordance herewith,
and this First Supplemental Indenture shall form a part of the Indenture for all
purposes; and every Holder of 2004 Notes heretofore or hereafter authenticated
and delivered under the Indenture shall be bound hereby. Except as modified by
this First Supplemental Indenture, the Indenture and the 2004 Notes, and the
rights of the Holders of the 2004 Notes thereunder, shall remain unchanged and
in full force and effect.

                  Section 1.03. Operation of Amendments. Notwithstanding
anything to the contrary in Section 1.02 hereof, the provisions of this First
Supplemental Indenture shall not become operative until the date and time the
Company notifies (orally or in writing) JPMorgan Chase Bank, as depositary for
the 2004 Notes under the Offer and the Consent Solicitation (the "Depositary"),
that the Company has accepted for purchase the 2004 Notes tendered and not
withdrawn pursuant to the Offer. In the event the Company notifies (orally or in
writing) the Depositary that it has withdrawn or terminated the Offer and the
Consent Solicitation, this First Supplemental Indenture shall be terminated and
of no force or effect and the Indenture shall not be modified hereby. The
Company shall promptly notify the Trustee in writing of any notice it gives to
the Depositary.

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                                      -3-

                  Section 1.04. No Effect on Rights of Holders of Securities of
Any Other Series. In accordance with Section 902 of the Indenture, the
amendments to the provisions of the Indenture contained herein have expressly
been included solely with respect to the 2004 Notes, and modify the rights of
the Holders of the 2004 Notes with respect to such provisions, and shall be
deemed not to effect the rights under the Indenture of the Holders of Securities
of any other series. Notwithstanding anything herein to the contrary, the
Indenture will not be deemed to have been amended hereby for any purpose with
respect to any series of Securities other than the 2004 Notes.

                                   ARTICLE TWO

                           AMENDMENTS TO THE INDENTURE

                  Section 2.01. Amendments to Section 501 of the Indenture.
Section 501 of the Indenture shall be amended as follows:

                  (a) Paragraphs (4) and (5) of Section 501 of the Indenture
shall be amended and restated in their entirety to read as follows:

                           (4) default in the performance, or breach, of any
                  covenant or warranty of the Company in this Indenture (other
                  than a covenant or warranty a default in whose performance or
                  whose breach is elsewhere in this Section specifically dealt
                  with or which has expressly been included in this Indenture
                  solely for the benefit of series of Securities other than that
                  series), and continuance of such default or breach for a
                  period of 60 days after there has been given, by registered or
                  certified mail, to the Company by the Trustee or to the
                  Company and the Trustee by the Holders of at least 10% in
                  principal amount of the Outstanding Securities (excluding for
                  purposes of this calculation the Company's 7.70% Senior Notes
                  due 2004) a written notice specifying such default or breach
                  and requiring it to be remedied and stating that such notice
                  is a "Notice of Default" hereunder; or

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                                      -4-

                           (5) a default under any bond, debenture, note or
                  other evidence of indebtedness of the Company for money
                  borrowed (including a default with respect to Securities of
                  any series other than that series) or under any mortgage,
                  indenture or instrument under which there may be issued or by
                  which there may be secured or evidenced any indebtedness of
                  the Company for money borrowed (including this Indenture),
                  whether such indebtedness now exists or shall hereafter be
                  created, which default shall constitute a failure to pay an
                  aggregate principal amount exceeding $10,000,000 of such
                  indebtedness when due and payable after the expiration of any
                  applicable grace period with respect thereto and shall have
                  resulted in such indebtedness in an aggregate principal amount
                  exceeding $10,000,000 becoming or being declared due and
                  payable prior to the date on which it would otherwise have
                  become due and payable, without such indebtedness having been
                  discharged, or such acceleration having been rescinded or
                  annulled, within a period of 30 days after there shall have
                  been given, by registered or certified mail, to the Company by
                  the Trustee or to the Company and the Trustee by the Holders
                  of at least 10% in principal amount of the Outstanding
                  Securities (excluding for purposes of this calculation the
                  Company's 7.70% Senior Notes due 2004) a written notice
                  specifying such default and requiring the Company to cause
                  such indebtedness to be discharged or cause such acceleration
                  to be rescinded or annulled and stating that such notice is a
                  "Notice of Default" hereunder; provided, however, that if such
                  Event of Default under such bond, debenture, note, mortgage,
                  indenture or other instrument or evidence of indebtedness
                  shall be remedied or cured by the company or waived pursuant
                  to such agreement or instrument, then, unless the maturity of
                  the Securities shall have been accelerated as provided herein,
                  the Event of Default hereunder by reason thereof shall be
                  deemed likewise to have been thereupon remedied, cured or
                  waived without further action upon the part of either the
                  Trustee or the Holders. Subject to the provisions of Sections
                  601 and 602, the Trustee shall not be deemed to have knowledge
                  of such default unless either (A) a Responsible Officer of the
                  Trustee assigned to its Corporate Trust Department shall have
                  actual knowledge of such default or (B) such Responsible
                  Officer shall have received written notice thereof from the
                  Company, from any Holder, from the holder of any such
                  indebtedness or from the trustee under any such mortgage,
                  indenture or other instrument; or

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                                      -5-

                  (b) The following paragraph shall be added at the end of
Section 501 of the Indenture:

                           Notwithstanding the foregoing, none of the events
         specified in Paragraphs (4), (5), (6), (7) or (8) of this Section 501
         shall constitute an "Event of Default" with respect to the Company's
         7.70% Senior Notes due 2004 and the Holders thereof shall have no
         rights under this Article Five as a consequence of any such event.

                  Section 2.02. Amendments to Section 801 of the Indenture.
Section 801 of the Indenture shall be amended as follows:

                  (a) Paragraph (3) of Section 801 of the Indenture shall be
amended and restated in its entirety to read as follows:

                           (3) if, as a result of any such consolidation or
                  merger or such conveyance, transfer or lease, properties or
                  assets of the Company would become subject to a mortgage,
                  pledge, lien, security interest or other encumbrance which
                  would not be permitted by this Indenture, the Company or such
                  successor corporation or Person, as the case may be, shall
                  take such steps as shall be necessary effectively to secure
                  the Securities (other than the Company's 7.70% Senior Notes
                  due 2004) equally and ratably with (or prior to) all
                  indebtedness secured thereby; and

                  (b) The following paragraph shall be added at the end of
Section 801 of the Indenture:

                           Notwithstanding any other provision in this
         Indenture, the provisions of this Section 801 will not apply to the
         Company's 7.70% Senior Notes due 2004 and the Holders thereof shall not
         be entitled to the benefits of this Section 801.

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                                      -6-

                  Section 2.03. Amendments to Section 1004 of the Indenture.
Section 1004 of the Indenture shall be amended and restated in its entirety to
read as follows:

         SECTION 1004. Corporate Existence.

                           Subject to Article Eight, the Company will do or
         cause to be done all things necessary to preserve and keep in full
         force and effect its corporate existence, rights (charter and
         statutory) and franchises; provided, however, that the Company shall
         not be required to preserve any such right or franchise if the Board of
         Directors shall determine that the preservation thereof is no longer
         desirable in the conduct of the business of the Company and that the
         loss thereof is not disadvantageous in any material respect to the
         Holders (excluding from consideration the Holders of the Company's
         7.70% Senior Notes due 2004).

                           Notwithstanding any other provision in this
         Indenture, the provisions of this Section 1004 will not apply to the
         Company's 7.70% Senior Notes due 2004 and the Holders thereof shall not
         be entitled to the benefits of this Section 1004.

                  Section 2.04. Amendments to Section 1005 of the Indenture.
Section 1005 of the Indenture shall be amended and restated in its entirety to
read as follows:

         SECTION 1005. Maintenance of Properties.

                           The Company will use its reasonable efforts to cause
         all material properties used or useful in the conduct of its business
         or the business of any Restricted Subsidiary to be maintained and kept
         in good condition, repair and working order (subject to wear and tear)
         and supplied with all necessary material equipment and will use its
         reasonable efforts to cause to be made all necessary material repairs,
         renewals, replacements, betterments and improvements thereof, all as in
         the judgment of the Company may be necessary so that the business
         carried on in connection therewith may be property and advantageously
         conducted at all time; provided, however, that nothing in this Section
         shall prevent the Company from discontinuing the operation or
         maintenance of any of such properties if such discontinuance is, in the
         judgment of the company, desirable in the conduct of its business or
         the business of any Restricted Subsidiary and not disadvantageous in
         any material respect to the Holders (excluding from consideration the
         Holders of the Company's 7.70% Senior Notes due 2004).

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                                      -7-

                           Notwithstanding any other provision in this
         Indenture, the provisions of this Section 1005 will not apply to the
         Company's 7.70% Senior Notes due 2004 and the Holders thereof shall not
         be entitled to the benefits of this Section 1005.

                  Section 2.05. Amendments to Section 1006 of the Indenture.
Section 1006 of the Indenture shall be amended by adding the following paragraph
at the end thereof:

                           Notwithstanding any other provision in this
         Indenture, the provisions of this Section 1006 will not apply to the
         Company's 7.70% Senior Notes due 2004 and the Holders thereof shall not
         be entitled to the benefits of this Section 1006.

                  Section 2.06. Amendments to Section 1007 of the Indenture.
Section 1007 of the Indenture shall be amended by adding the following paragraph
at the end thereof:

                           Notwithstanding any other provision in this
         Indenture, the provisions of this Section 1007 will not apply to the
         Company's 7.70% Senior Notes due 2004 and the Holders thereof shall not
         be entitled to the benefits of this Section 1007.

                  Section 2.07. Amendments to Section 1008 of the Indenture.
Section 1008 of the Indenture shall be amended as follows:

                  (a) The first paragraph of Section 1008 of the Indenture shall
be amended and restated in its entirety to read as follows:

                           The Company covenants and agrees that it will not,
         and will not permit any Restricted Subsidiary to, create, issue, incur,
         assume or guarantee any Secured Debt without making effective provision
         (and the Company covenants that in such case it will make or cause to
         be made effective provision) whereby the Securities then outstanding
         and any other indebtedness of or guaranteed by the Company or such
         Restricted Subsidiary (other than the Company's 7.70% Senior Notes due
         2004) then entitled thereto shall be secured by such mortgage, pledge,
         lien or encumbrance equally and ratably with (or prior to) any and all
         other obligations and indebtedness thereby secured for so long as any
         such other obligations and indebtedness shall be so secured; provided,
         however, that the foregoing covenants shall not be applicable to the
         following:

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                                      -8-

                  (b) The following paragraph shall be added at the end of
Section 1008 of the Indenture:

                           Notwithstanding any other provision in this
         Indenture, the provisions of this Section 1008 will not apply to the
         Company's 7.70% Senior Notes due 2004 and the Holders thereof shall not
         be entitled to the benefits of this Section 1008.

                  Section 2.08. Amendments to Section 1009 of the Indenture.
Section 1009 of the Indenture shall be amended by adding the following paragraph
at the end thereof:

                           Notwithstanding any other provision in this
         Indenture, the provisions of this Section 1009 will not apply to the
         Company's 7.70% Senior Notes due 2004 and the Holders thereof shall not
         be entitled to the benefits of this Section 1009.

                                  ARTICLE THREE

                            MISCELLANEOUS PROVISIONS

                  Section 3.01. Conflict with Trust Indenture Act. If any
provision hereof limits, qualifies or conflicts with another provision which is
required or deemed to be included in this First Supplemental Indenture by any of
the provisions of the Trust Indenture Act, such required or deemed provision
shall control.

                  Section 3.02. Effect of Headings. The Article and Section
headings herein are for convenience only and shall not affect the construction
hereof.

                  Section 3.03. Successors and Assigns. All covenants and
agreements in this First Supplemental Indenture by the Company shall bind its
successors and assigns, whether so expressed or not.

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                                      -9-

                  Section 3.04. Separability Clause. In case any provision in
this First Supplemental Indenture shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

                  Section 3.05. Benefits of this First Supplemental Indenture.
Nothing in this First Supplemental Indenture, express or implied, shall give to
any Person, other than the parties hereto and their successors hereunder and the
Holders of the 2004 Notes, any benefit or any legal or equitable right, remedy
or claim under this First Supplemental Indenture.

                  Section 3.06. Governing Law. This First Supplemental Indenture
shall be governed by and construed in accordance with the laws of the State of
New York.

                  Section 3.07. Counterparts. This instrument may be executed in
any number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

                  Section 3.08. Recitals. In accordance with Section 604 of the
Indenture, the recitals contained herein shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this First
Supplemental Indenture.

                  [Remainder of page intentionally left blank;
                             signature page follows]

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                  IN WITNESS WHEREOF, the parties hereto have caused this First
Supplemental Indenture to be duly executed, all as of the day and year first
above written.

                                          THE GREAT ATLANTIC & PACIFIC
                                             TEA COMPANY, INC.

                                          By: /s/ Mitchell P. Goldstein
                                              -------------------------------
                                              Name:  Mitchell P. Goldstein
                                              Title: Senior Vice President

                                          JPMORGAN CHASE BANK,
                                             as Trustee

                                          By: /s/ Walter I. Johnson III
                                              -------------------------------
                                              Name:  Walter I. Johnson III
                                              Title: Assistant Treasurer<PAGE>
                                                                     EXHIBIT 4.1

                         COMMON STOCK PURCHASE AGREEMENT

        This Common Stock Purchase Agreement (this "AGREEMENT") is made and
effective as of November 30, 2001 by and among General Magic, Inc., a Delaware
corporation (the "COMPANY"), and the Purchasers identified in the signature
pages attached hereto (each a "PURCHASER" and, collectively, the "PURCHASERS").

        WHEREAS, subject to the terms and conditions set forth in this
Agreement, the Company desires to sell to the Purchasers and the Purchasers
severally desire to purchase from the Company an aggregate of up to 15,500,000
shares of the Company's common stock, $0.001 par value per share (the "COMMON
STOCK"), for a purchase price per share (each a "SHARE" and, collectively, the
"SHARES") equal to 75% of the average closing bid price of the Common Stock
during the five trading days prior to December 3, 2001 (the "PURCHASE PRICE").

        NOW, THEREFORE, in consideration of the mutual covenants contained in
this Agreement and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and the Purchasers agree
as follows:

        1.      CLOSING.

        (a) The closing of the purchase and sale of the Shares contemplated
hereby (the "CLOSING") shall take place at the offices of Robinson Silverman
Pearce Aronsohn & Berman LLP, 1290 Avenue of the Americas, New York, New York
10104, on the date of this Agreement or on such other date as the parties shall
agree. The date of the Closing is hereinafter referred to as the "CLOSING DATE."
At the Closing: (x) the Company shall deliver to each Purchaser (i)
electronically through The Depository Trust Company DWAC system to the account
designated opposite such Purchaser's name on Schedule A hereto, the number of
Shares equal to the quotient obtained by dividing (a) the purchase price set
forth below such Purchaser's signature to this Agreement by (b) the Purchase
Price, (ii) a prospectus supplement with respect to the Registration Statement
(as defined in Section 2(e)) disclosing the sale of the Shares (the
"SUPPLEMENT"), (iii) the legal opinion of the Company's outside counsel in
agreed form, and (iv) an executed copy of this Agreement; and (y) each Purchaser
shall deliver to the Company (i) the purchase price set forth below such
Purchaser's signature to this Agreement, in immediately available funds by wire
transfer to an account designated in writing by the Company for such purpose,
and (ii) an executed copy of this Agreement.

        (b) The obligation of the Purchasers to purchase and acquire Shares
under this Agreement is subject to the fulfillment (or waiver by such Purchaser)
of the following conditions:

        (i)     The Company shall have filed the Supplement with the Securities
                and Exchange Commission (the "COMMISSION").

        (ii)    The Registration Statement shall be effective on the Closing
                Date as to all Shares, not subject to any threatened or actual
                stop order and, as amended or supplemented by any supplement,
                including the Supplement, issued in

<PAGE>

                connection therewith, will not on the Closing Date contain any
                untrue statement of material fact or omit to state any material
                fact required to be stated therein or necessary to make the
                statements therein not misleading. The Company has advised the
                Purchasers that the Registration Statement contains a typo on
                page 11 (the number "909,870" should read "9,909,870") (the
                "TYPO"), and the Company has advised the Purchasers that the
                Typo will be corrected in the Supplement.

        (iii)   The Company shall have secured the listing of the Shares on the
                Nasdaq National Market.

        (iv)    The Company shall have provided a certificate from a duly
                authorized officer certifying on behalf of the Company that each
                of the conditions set forth in this Section 1(b) shall have been
                satisfied.

        2.      REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
hereby makes the following representations and warranties to the Purchasers:

        (a)     Organization and Qualification. The Company is a corporation
duly incorporated, validly existing and in good standing under the laws of the
State of Delaware with the requisite corporate power and authority to own and
use its properties and assets and to carry on its business as currently
conducted. The Company is duly qualified to conduct business and is in good
standing as a foreign corporation or other entity in each jurisdiction in which
the nature of the business conducted or property owned by it makes such
qualification necessary other than those in which the failure so to qualify
would not have a material adverse effect on the Company's financial condition.

        (b)     Authorization. The Company has the requisite corporate power and
authority to enter into and to consummate the transaction contemplated by this
Agreement and otherwise to carry out its obligations hereunder. The execution
and delivery of this Agreement by the Company and the consummation of the
transaction contemplated hereby have been duly authorized by all necessary
action on the part of the Company and no further action is required by the
Company. This Agreement has been duly executed by the Company and, when
delivered in accordance with the terms hereof, assuming the valid execution
thereof by the Purchasers, will constitute the valid and binding obligation of
the Company enforceable against the Company in accordance with its terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, conservatorship, receivership or
similar laws relating to, or affecting generally the enforcement of, creditors'
rights and remedies or by other equitable principles of general application.

        (c)     No Conflicts. The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transaction
contemplated hereby do not and will not: (i) conflict with or violate any
provision of the Company's certificate of incorporation, bylaws or other charter
documents (each as amended through the date hereof), or (ii) conflict with, or
constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment,
                                      -2-
<PAGE>

acceleration or cancellation (with or without notice, lapse of time or both) of,
any agreement, credit facility, debt or other instrument or other understanding
to which the Company is a party or by which any material property or asset of
the Company is bound or affected, or (iii) result in a violation of any law,
rule, regulation, order, judgment, injunction, decree or other restriction of
any court or governmental authority to which the Company is subject, except, in
the case of this clause (iii), for such violations which would not, individually
or in the aggregate, have a material adverse effect on the Company's financial
condition.

        (d)     Issuance of the Shares. The Shares are duly authorized and, when
issued and paid for in accordance with the terms hereof, will be duly and
validly issued, fully paid and nonassessable. The Company has reserved a
sufficient number of duly authorized shares of Common Stock to issue all of the
Shares. At the Closing, the Shares shall have been listed for trading on the
Nasdaq National Market.

        (e)     Registration Statement. The Company's Registration Statement on
Form S-3 (No. 333-66126) (the "REGISTRATION STATEMENT"), as amended by Amendment
No. 4 to the Registration Statement (filed with the Commission on November 26,
2001), was declared effective by the Commission on November 27, 2001. The
Registration Statement is effective on the date hereof and the Company has not
received notice that the Commission has issued or intends to issue a stop order
with respect to the Registration Statement or that the Commission otherwise has
suspended or withdrawn the effectiveness of the Registration Statement, either
temporarily or permanently, or intends or has threatened in writing to do so.
Except for the Typo, the Registration Statement (including the information or
documents incorporated by reference therein), as of the time it was declared
effective, and any amendments or supplements thereto, each as of the time of
filing, did not contain any untrue statement of material fact or omit to state
any material fact required to be stated therein or necessary to make the
statements therein not misleading. The issuance of the Shares to the Purchasers
is registered by the Registration Statement.

        (f)     Certain Fees. The Purchasers shall have no obligation with
respect to any fees incurred by the Company or any other Person (other than the
Purchasers, if the Purchasers have agreed in writing to pay such fees) or with
respect to any claims made by or on behalf of other Persons for fees or
commissions payable by the Company to any broker, financial advisor or
consultant, finder, placement agent, investment banker, bank or other Person,
that may be due in connection with the transactions contemplated by this
Agreement. The Company shall indemnify and hold harmless the Purchasers, their
employees, officers, directors, agents, and partners, and their affiliates, from
and against all claims, losses, damages, costs (including the costs of
preparation and attorney's fees) and expenses suffered in respect of any such
claimed or existing fees incurred by the Company or any other Person (other than
the Purchasers, if the Purchasers have agreed in writing to pay such fees), as
such fees and expenses are incurred. "PERSON" means any court or other federal,
state, local or other governmental authority or other individual or corporation,
partnership, trust, incorporated or unincorporated association, joint venture,
limited liability company, joint stock company, government (or an agency or
subdivision thereof) or other entity of any kind.

                                      -3-
<PAGE>

        (g)     Disclosure. Neither the Company nor any other Person acting on
its behalf has provided the Purchasers or their agents or counsel with any
information that the Company believes constitutes material non public
information.

        (h)     No Violation. The issuance and sale of the Shares hereunder does
not conflict with or violate any rules or regulations of the Nasdaq National
Market. Notwithstanding the foregoing, the Company makes no representation as to
its compliance or noncompliance with NASD Rule 4310(c)(17).

        (i)     SEC Reports; Financial Statements. The Company has filed all
reports required to be filed by it under the Securities Exchange Act of 1934, as
amended (the "EXCHANGE ACT"), for the twelve months preceding the date hereof
(collectively, "SEC REPORTS") on a timely basis or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to the
expiration of any such extension; provided, however, that in connection with the
Commission's review of the Registration Statement, the Company filed the
following: (1) an amendment to its Current Report on Form 8-K (originally filed
with the Commission on February 2, 2000) on November 9, 2001, (2) Amendment No.
1 to its Quarterly Report on Form 10-Q for the period ended June 30, 2001, on
November 13, 2001, and Amendments Nos. 1 and 2 to its Quarterly Report on Form
10-Q for the period ended September 30, 2001, on November 21, 2001
(collectively, the "AMENDED REPORTS"). Subject to the filing of the Amended
Reports, as of their respective dates, the SEC Reports complied in all material
respects with the requirements of the Securities Act and the Exchange Act and
the rules and regulations of the Commission promulgated thereunder, and none of
the SEC Reports, when filed, contained any untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under
which they were made, not misleading. The financial statements of the Company
included in the SEC Reports (as amended or modified by the SEC Reports) comply
in all material respects with applicable accounting requirements and the rules
and regulations of the Commission with respect thereto as in effect at the time
of filing. Such financial statements (as amended or modified by the SEC Reports)
have been prepared in accordance with generally accepted accounting principles
applied on a consistent basis during the periods involved, except as may be
otherwise specified in such financial statements or the notes thereto, and
fairly present in all material respects the financial position of the Company
and its consolidated subsidiaries as of and for the dates thereof and the
results of operations and cash flows for the periods then ended, subject, in the
case of unaudited statements, to normal year-end audit adjustments.

        3.      REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS. Each Purchaser
hereby for itself and for no other Purchaser, represents, warrants and covenants
to the Company as follows:

        (a)     Organization; Authorization. Such Purchaser is an entity duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation. Such Purchaser has full right, power,
authority and capacity to enter into this Agreement and to consummate the
transactions contemplated hereby and has taken all necessary action to authorize
the execution, delivery and performance of this Agreement. Upon the execution
and delivery of

                                      -4-
<PAGE>

this Agreement, and assuming the valid execution thereof by the Company, this
Agreement shall constitute the valid and binding obligation of such Purchaser
enforceable in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or
affecting generally the enforcement of, creditors' rights and remedies or by
other equitable principles of general application.

        (b)     No Conflicts. The execution, delivery and performance of this
Agreement and the consummation by the Purchaser of the transactions contemplated
hereby or relating hereto do not and will not result in a violation of
Purchaser's charter documents or bylaws.

        (c)     Purchaser Status. Such Purchaser is an "accredited investor" as
defined in Rule 501(a) under the Securities Act. Such Purchaser is not a
registered broker-dealer.

        (d)     No Governmental Review. Such Purchaser understands that no
United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Shares or
on the fairness or suitability of the investment in the Shares nor have such
authorities passed upon or endorsed the merits of the offering of the Shares.

        4.      OTHER AGREEMENTS OF THE PARTIES.

        (a)     Disclosure of Material Non-Public Information. The Company shall
not and shall cause each of its Affiliates (as defined in Rule 405 under the
Securities Act) and other Persons acting on behalf of the Company not to divulge
to any Purchaser or any of its known agents any information that it believes to
be material non-public information unless such Purchaser has agreed in writing
to receive such information prior to such divulgence.

        (b)     Limitations on Future Transactions. The Company will not enter
into any transaction that might be integrated with the transactions contemplated
by this Agreement for purposes of the rules and regulations of the Nasdaq Stock
Market unless, prior to the consummation of such transaction, the Company
receives written advice from the Nasdaq Stock Market that the consummation of
such transaction, if integrated with the transactions contemplated by this
Agreement, would not cause the transactions contemplated by this Agreement to
violate the rules and regulations of the Nasdaq Stock Market, or unless, prior
to the consummation of such transaction, the Company complies with the NASD's
Marketplace Rules in effect at such time.

        (c)     Certain Trading Restrictions. Each Purchaser covenants and
agrees that from the date of this Agreement through the date on which the
Purchaser no longer holds Shares, neither such Purchaser nor any domestic or
international entity managed by such Purchaser will establish a short position
in the Common Stock in any accounts managed by such Purchaser or by such entity.

                                      -5-
<PAGE>

        (d)     Use of Proceeds. The Company shall use the proceeds from the
sale of the Shares hereunder for working capital purposes and not for the
prepayment of any portion of the Company's 5% secured subordinated notes due
April 15, 2003, or to redeem any Company equity or equity-equivalent securities,
or to extend loans to any officers or directors of the Company.

    5.  MISCELLANEOUS.

        (a)     Fees and Expenses. Except as contemplated in Section 5(e), each
party shall pay the fees and expenses of its advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such party incident to
the negotiation, preparation, execution, delivery and performance of this
Agreement. The Company shall pay all stamp and other taxes and duties levied in
connection with the issuance of the Shares.

        (b)     Publicity. Neither the Company nor the Purchasers shall issue
any press release or make any other public announcement relating to this
Agreement unless (i) the content thereof is mutually agreed to by the Company
and the Purchasers, or (ii) such party is advised by its counsel that such press
release or public announcement is required by law; except that no press release
issued to disclose the issuance and sale of the Shares to the Purchasers will
refer to the Purchasers by name without consent of such Purchaser.

        (c)     Entire Agreement; Amendments. This Agreement contains the entire
understanding of the parties with respect to the subject matter hereof and
supersedes all prior agreements and understandings, oral or written, with
respect to such matters, which the parties acknowledge have been merged into
such documents, exhibits and schedules. This Agreement may not be modified or
amended except pursuant to an instrument in writing signed by the Company and
each Purchaser. The waiver by either party hereto of any right hereunder or the
failure to perform or of a breach by the other party shall not be deemed a
waiver of any other right hereunder or of any other breach or failure by said
other party whether of a similar nature or otherwise.

        (d)     Notices. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section prior to 6:30 p.m. (New York City
time) on a business day, (ii) the business day after the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile
number specified in this Agreement later than 6:30 p.m. (New York City time) on
any date and earlier than 11:59 p.m. (New York City time) on such date, (iii)
the business day following the date of mailing, if sent by nationally recognized
overnight courier service, or (iv) upon actual receipt by the party to whom such
notice is required to be given. The address for such notices and communications
shall be as follows:

        If to the Company:          General Magic, Inc.
                                    420 North Mary Avenue,
                                    Sunnyvale, CA 94085

                                      -6-
<PAGE>

                                    Facsimile No.: (408) 774-4014
                                    Attn: Chief Financial Officer

        If to the Purchasers:       To the address set forth under such
                                    Purchaser's name on the signature pages
                                    attached hereto.

    or such other address as may be designated in writing hereafter, in the
same manner, by such Person.

        (e)     Governing Law. All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of
New York, without regard to the principles of conflicts of law thereof. Each
party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement
(whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, employees or agents) shall be commenced in the state and
federal courts sitting in the City of New York, Borough of Manhattan. Each party
hereto hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the City of New York, Borough of Manhattan for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein (including with respect to
the enforcement of this Agreement), and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is improper. Each party hereto hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by
jury in any legal proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby. If either party shall commence an action or
proceeding to enforce any provisions of this Agreement, then the prevailing
party in such action or proceeding shall be reimbursed by the other party for
its attorneys fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.

        (f)     Execution. This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is
executed) the same with the same force and effect as if such facsimile signature
page were an original thereof.

                                      -7-
<PAGE>

        (g)     Independent Nature of Purchasers' Obligations and Rights. The
obligations of each Purchaser under this Agreement is several and not joint with
the obligations of any other Purchaser and no Purchaser shall be responsible in
any way for the performance of the obligations of any other Purchaser under this
Agreement. Nothing contained herein, and no action taken by any Purchaser
pursuant hereto, shall be deemed to constitute the Purchasers as a partnership,
an association, a joint venture or any other kind of entity, or create a
presumption that the Purchasers are in any way acting in concert with respect to
such obligations or the transactions contemplated by this Agreement. Each
Purchaser shall be entitled to independently protect and enforce its rights,
including without limitation the rights arising out of this Agreement, and it
shall not be necessary for any other Purchaser to be joined as an additional
party in any proceeding for such purpose.

       *      *      *      *      *       *      *      *      *      *

                                      -8-
<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

                             GENERAL MAGIC, INC.

                             By: /s/ Kathleen M. Layton
                                 -----------------------------------
                                 Name: Kathleen M. Layton
                                 Title: President and Chief Executive Officer

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                     SIGNATURE PAGE OF PURCHASERS FOLLOWS]

                                      -9-

<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

                             ZLP MASTER FUND, LTD.

                             By: /s/ Stuart J. Zimmer
                                 -----------------------------------
                             Name: Stuart J. Zimmer
                             Title: Director

                             Purchase Price: $1,000,000

                             Address for Notice:
                             Zimmer Lucas Partners, LLC
                             45 Broadway--28th Floor
                             New York, NY 10006
                             Attn: Rita Patel

        With copies to:      Robinson Silverman Pearce Aronsohn & Berman LLP
                             1290 Avenue of the Americas
                             New York, NY 10104
                             Facsimile No.: (212) 541-4630 and (212) 541-1432
                             Attn: Eric L. Cohen, Esq.

<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

                             STRONG RIVER INVESTMENTS, LTD.

                             By: /s/  Kenneth Henderson
                                 -----------------------------------
                                 Kenneth Henderson, Attorney-in-fact

                             Purchase Price: $500,000
                                             1,562,500 shares

                             Address for Notice:
                             660 Madison Avenue
                             18th floor
                             New York, NY 10021
                             Attn: Avi Vigder
                             Facsimile No.: (212) 651-9010

        With copies to:      Robinson Silverman Pearce Aronsohn & Berman LLP
                             1290 Avenue of the Americas
                             New York, NY 10104
                             Facsimile No.: (212) 541-4630 and (212) 541-1432
                             Attn: Eric L. Cohen, Esq.

<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

                             [PURCHASER] VERTICAL VENTURES, LLC

                             By: /s/ Joshua Silverman
                                 -----------------------------------
                                 Joshua Silverman
                                 Partner

                             Purchase Price: $[ ] 1,562,500 shares
                                             $.32
                                             $500,000 USD

                             Address for Notice:
                             []

        With copies to:      Robinson Silverman Pearce Aronsohn & Berman LLP
                             1290 Avenue of the Americas
                             New York, NY 10104
                             Facsimile No.: (212) 541-4630 and (212) 541-1432
                             Attn: Eric L. Cohen, Esq.

                                      -10-
<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

                             CRESCENT INTERNATIONAL LTD.

                             By: /s/ [signature illegible]
                                 -----------------------------------

                       Purchase Price: $500,000 (USD Five Hundred Thousand only)
                       Share #:        1,562,500

                       Address for Notice:

                       Crescent International Ltd
                       C/O GreenLight (Switzerland) SA
                       84, Av. Louis-Casai
                       CH 1216 COINTRIN, Geneva
                       Switzerland
                       Tel.: +41 22 791 7256
                       Fax: +41 22 929 5394
                       Contact: Maxi Brezzi

      With copies to:  Robinson Silverman Pearce Aronsohn & Berman LLP
                       1290 Avenue of the Americas
                       New York, NY 10104
                       Facsimile No.: (212) 541-4630 and (212) 541-1432
                       Attn: Eric L. Cohen, Esq.

<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

                             THE ISOSCELES FUND LIMITED

                             By: /s/ Andrew Dipkin          /s/ Sharon L. Albury
                                 -----------------------------------------------
                                 INTER CARIBBEAN SERVICES (BAHAMAS) LTD.

                             Purchase Amount:     330,000 Shares
                             Purchase Price:      $0.32
                             Total Consideration: $105,600 (ONE HUNDRED AND FIVE
                                                  THOUSAND US DOLLARS ONLY

                             Address for Notice:
                             THE ISOSCELES FUND LTD
                             [LINE ILLEGIBLE]
                             3rd Floor
                             Shirley & Charlotte Streets
                             Nassau, Bahamas
                             Tel: (242) 356 5928
                             Facsimile: (242) 356 0223
                             Attn: M/s Sudba Sundaram

        With copies to:      Robinson Silverman Pearce Aronsohn & Berman LLP
                             1290 Avenue of the Americas
                             New York, NY 10104
                             Facsimile No.: (212) 541-4630 and (212) 541-1432
                             Attn: Eric L. Cohen, Esq.

                                      -10-
<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

                             [PURCHASER]
                             EURAM CAP STRAT. "A" FUND LIMITED
                             PRESIDENT -- JMJ CAPITAL, INC.
                             THE INVESTMENT MANAGER

                             By: /s/ [SIGNATURE ILLEGIBLE]
                                 -----------------------------------
                                 [NAME ILLEGIBLE]

                             Purchase Price: $[ ] $500,000.00

                             Address for Notice: 666 Dundee Road, Suite 1901
                             [ ]                 Northbrook, IL 60062

        With copies to:      Robinson Silverman Pearce Aronsohn & Berman LLP
                             1290 Avenue of the Americas
                             New York, NY 10104
                             Facsimile No.: (212) 541-4630 and (212) 541-1432
                             Attn: Eric L. Cohen, Esq.

                                      -10-

<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

                  [PURCHASER] ALPHA CAPITAL AKTIENGESELLSCHAFT

                              By: /s/ Konrad Ackermann
                                 -----------------------------------
                                 Konrad Ackermann, Director

                              Purchase Price: $[ ]

                             Address for Notice:
                             [ ]

        With copies to:      Robinson Silverman Pearce Aronsohn & Berman LLP
                             1290 Avenue of the Americas
                             New York, NY  10104
                             Facsimile No.: (212) 541-4630 and (212) 541-1432
                             Attn: Eric L. Cohen, Esq.

                                      -10-

<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

                             [PURCHASER]

                             By: /s/ [SIGNATURE ILLEGIBLE]
                                 -----------------------------------------------
                                 Director, 01144 Ltd.

                             Purchase Price: $[ ] 100,000.00

                             Address for Notice:
                             []

        With copies to:      Robinson Silverman Pearce Aronsohn & Berman LLP
                             1290 Avenue of the Americas
                             New York, NY 10104
                             Facsimile No.: (212) 541-4630 and (212) 541-1432
                             Attn: Eric L. Cohen, Esq.

                                      -10-

<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

                        [PURCHASER]

                        By: /s/ M. Funkelstein (Stonestreet Limited Partnership)
                            ----------------------------------------------------

                        Purchase Price: $[ ] $500,000

                        Address for Notice:
                        [ ]

   With copies to:      Robinson Silverman Pearce Aronsohn & Berman LLP
                        1290 Avenue of the Americas
                        New York, NY 10104
                        Facsimile No.: (212) 541-4630 and (212) 541-1432
                        Attn: Eric L. Cohen, Esq.

                                      -10-

<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

                             [PURCHASER]

                             By: /s/ [SIGNATURE ILLEGIBLE]
                                 -----------------------------------------------
                                 General Partner

                             Purchase Price: $[ ] 500,000.00

                             Address for Notice: c/o Palisades Equity Fund, LP
                             [ ]

        With copies to:      Robinson Silverman Pearce Aronsohn & Berman LLP
                             1290 Avenue of the Americas
                             New York, NY 10104
                             Facsimile No.: (212) 541-4630 and (212) 541-1432
                             Attn: Eric L. Cohen, Esq.

                                      -10-

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