Document:

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                                                                    EXHIBIT 4.27

                               GENERAL MAGIC, INC.
                       NONSTATUTORY STOCK OPTION AGREEMENT

       THIS NONSTATUTORY STOCK OPTION AGREEMENT (the "OPTION AGREEMENT") is made
and entered into as of the Date of Option Grant by and between General Magic,
Inc. and Steven Markman (the "OPTIONEE").

       The Company hereby grants to the Optionee an option (the "OPTION") to
purchase 685,000 shares of Stock, as adjusted from time to time pursuant to
Section 8, upon the following terms and conditions:

       1. DEFINITIONS AND CONSTRUCTION.

              1.1 DEFINITIONS. Whenever used herein, the following terms shall
have the meanings set forth below:

                     (a) "DATE OF OPTION GRANT" means April 26, 2001.

                     (b) "EXERCISE PRICE" means $0.96 per share of Stock, as
adjusted from time to time pursuant to Section 8.

                     (c) "VESTING COMMENCEMENT DATE" means April 26, 2001.

                     (d) "OPTION EXPIRATION DATE" means the date ten years after
the Date of Option Grant.

                     (e) "BOARD" means the Board of Directors of the Company. If
one or more Committees have been appointed by the Board to administer the Option
Agreement, "Board" shall also mean such Committee(s).

                     (f) "CODE" means the Internal Revenue Code of 1986, as
amended, and any applicable regulations promulgated thereunder.

                     (g) "COMMITTEE" means the Compensation Committee or other
committee of the Board duly appointed to administer the Option Agreement and
having such powers as shall be specified by the Board. Unless the powers of the
Committee have been specifically limited, the Committee shall have all of the
powers of the Board in administering the Option Agreement.

                     (h) "COMPANY" means General Magic, Inc., a Delaware
corporation, or any successor corporation thereto.

                     (i) "CONSULTANT" means a person engaged to provide
consulting or advisory services (other than as an Employee or a Director) to a
Participating Company, provided that the identity of such person, the nature of
such services or the entity to which such

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services are provided would not preclude the Company from offering or selling
securities to such person in reliance on registration on a Form S-8 Registration
Statement under the Securities Act.

                     (j) "DIRECTOR" means a member of the Board or of the board
of directors of any other Participating Company.

                     (k) "DISABILITY" means the permanent and total disability
of the Optionee within the meaning of Section 22(e)(3) of the Code.

                     (l) "EMPLOYEE" means any person treated as an employee
(including an officer or a Director who is also treated as an employee) in the
records of a Participating Company; provided, however, that neither service as a
Director nor payment of a director's fee shall be sufficient to constitute
employment for this purpose.

                     (m) "EXCHANGE ACT" means the Securities Exchange Act of
1934, as amended.

                     (n) "FAIR MARKET VALUE" means, as of any date, the value of
the Stock determined as follows:

                            (i) If the Common Stock is listed on any established
stock exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap
Market, the Fair Market Value of a share of Common Stock shall be the average of
the high and low sales price for such stock as quoted on such exchange or market
(or the exchange or market with the greatest volume of trading in the Common
Stock) on the day of determination, as reported in The Wall Street Journal or
such other source as the Board deems reliable. If the relevant date does not
fall on a day on which the Stock has traded on such securities exchange or
market system, the date on which the Fair Market Value shall be established
shall be the last day on which the Stock was so traded prior to the relevant
date, or such other appropriate day as shall be determined by the Board, in its
discretion.

                            (ii) In the absence of such markets for the Common
Stock, the Fair Market Value shall be determined in good faith by the Board.

                     (o) "PARENT CORPORATION" means any present or future
"parent corporation" of the Company, as defined in Section 424(e) of the Code,
while such corporation is a "parent corporation" of the Company.

                     (p) "PARTICIPATING COMPANY" means the Company or any Parent
Corporation or Subsidiary Corporation.

                     (q) "PARTICIPATING COMPANY GROUP" means, at any point in
time, all corporations collectively which are then Participating Companies.

                     (r) "SECURITIES ACT" means the Securities Act of 1933, as
amended.

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                     (s) "SERVICE" means the Optionee's employment or service
with the Participating Company Group, whether in the capacity of an Employee, a
Director or a Consultant. The Optionee's Service shall not be deemed to have
terminated merely because of a change in the capacity in which the Optionee
renders Service to the Participating Company Group or a change in the
Participating Company for which the Optionee renders such Service, provided that
there is no interruption or termination of the Optionee's Service. Furthermore,
the Optionee's Service with the Participating Company Group shall not be deemed
to have terminated if the Optionee takes any military leave, sick leave, or
other bona fide leave of absence approved by the Company. The Optionee's Service
shall be deemed to have terminated either upon an actual termination of Service
or upon the corporation for which the Optionee performs Service ceasing to be a
Participating Company. Subject to the foregoing, the Company, in its sole
discretion, shall determine whether the Optionee's Service has terminated and
the effective date of such termination.

                     (t) "STOCK" means the common stock of the Company, as
adjusted from time to time in accordance with Section 8.

                     (u) "SUBSIDIARY CORPORATION" means any present or future
"subsidiary corporation" of the Company, as defined in Section 424(f) of the
Code, while such subsidiary is a "subsidiary corporation" of the Company.

              1.2 CONSTRUCTION. Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation of any
provision of this Option Agreement. Except when otherwise indicated by the
context, the singular shall include the plural and the plural shall include the
singular. Use of the term "or" is not intended to be exclusive, unless the
context clearly requires otherwise.

       2. TAX STATUS OF OPTION.

              This Option is intended to be a nonstatutory stock option and
shall not be treated as an incentive stock option within the meaning of Section
422(b) of the Code.

       3. ADMINISTRATION.

              All questions of interpretation concerning this Option Agreement
shall be determined by the Board. All determinations by the Board shall be final
and binding upon all persons having an interest in the Option.

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       4. VESTING AND EXERCISE OF THE OPTION.

              4.1 VESTING SCHEDULE. The Option shares shall vest six (6) months
after the Vesting Commencement Date, provided that Optionee is continuously
employed by the Company from the Date of the Option Grant through the vesting
date. Optionee shall be deemed an employee for so long as he serves as a
founding member of the Company's Industry Advisory Board.

              4.2 RIGHT TO EXERCISE. Except as otherwise provided herein, the
Option shall first become exercisable on and after six (6) months following the
Vesting Commencement Date. The Option shall continue to be exercisable
thereafter and until the termination of the Option (as provided in Section 6) in
an amount not to exceed the number of Option shares less the number of shares
previously acquired upon exercise of the Option. In no event shall the Option be
exercisable for more shares than the number of Option shares granted under this
Option Agreement.

              4.3 METHOD OF EXERCISE. Exercise of the Option shall be by written
notice to the Company which must state the election to exercise the Option, the
number of whole shares of Stock for which the Option is being exercised and such
other representations and agreements as to the Optionee's investment intent with
respect to such shares as may be required pursuant to the provisions of this
Option Agreement. The written notice must be signed by the Optionee and must be
delivered in person, by certified or registered mail, return receipt requested,
by confirmed facsimile transmission, or by such other means as the Company may
permit, to the Chief Financial Officer of the Company, or other authorized
representative of the Participating Company Group, prior to the termination of
the Option as set forth in Section 6, accompanied by full payment of the
aggregate Exercise Price for the number of shares of Stock being purchased. The
Option shall be deemed to be exercised upon receipt by the Company of such
written notice and the aggregate Exercise Price.

              4.4 PAYMENT OF EXERCISE PRICE.

                     (a) FORMS OF CONSIDERATION AUTHORIZED. Except as otherwise
provided below, payment of the aggregate Exercise Price for the number of shares
of Stock for which the Option is being exercised shall be made (i) in cash, by
check, or cash equivalent, (ii) by tender to the Company, or attestation to the
ownership, of whole shares of Stock owned by the Optionee having a Fair Market
Value (as determined by the Company without regard to any restrictions on
transferability applicable to such stock by reason of federal or state
securities laws or agreements with an underwriter for the Company) not less than
the aggregate Exercise Price, (iii) by means of a Cashless Exercise, as defined
in Section 4.4(b)(ii), or (iv) by any combination of the foregoing.

                     (b) LIMITATIONS ON FORMS OF CONSIDERATION.

                            (i) TENDER OF STOCK. Notwithstanding the foregoing,
the Option may not be exercised by tender to the Company, or attestation to the
ownership, of shares of Stock to the extent such tender or attestation would
constitute a violation of the provisions of

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any law, regulation or agreement restricting the redemption of the Company's
stock. The Option may not be exercised by tender to the Company, or attestation
to the ownership, of shares of Stock unless such shares either have been owned
by the Optionee for more than six (6) months or were not acquired, directly or
indirectly, from the Company.

                            (ii) CASHLESS EXERCISE. A "CASHLESS EXERCISE" means
the assignment in a form acceptable to the Company of the proceeds of a sale or
loan with respect to some or all of the shares of Stock acquired upon the
exercise of the Option pursuant to a program or procedure approved by the
Company (including, without limitation, through an exercise complying with the
provisions of Regulation T as promulgated from time to time by the Board of
Governors of the Federal Reserve System). The Company reserves, at any and all
times, the right, in the Company's sole and absolute discretion, to decline to
approve or terminate any such program or procedure.

              4.5 TAX WITHHOLDING. At the time the Option is exercised, in whole
or in part, or at any time thereafter as requested by the Company, the Optionee
hereby authorizes withholding from payroll and any other amounts payable to the
Optionee, and otherwise agrees to make adequate provision for (including by
means of a Cashless Exercise to the extent permitted by the Company), any sums
required to satisfy the federal, state, local and foreign tax withholding
obligations of the Participating Company Group, if any, which arise in
connection with the Option, including, without limitation, obligations arising
upon (i) the exercise, in whole or in part, of the Option, (ii) the transfer, in
whole or in part, of any shares of Stock acquired upon exercise of the Option,
(iii) the operation of any law or regulation providing for the imputation of
interest, or (iv) the lapsing of any restriction with respect to any shares of
Stock acquired upon exercise of the Option. The Optionee is cautioned that the
Option is not exercisable unless the tax withholding obligations of the
Participating Company Group are satisfied. Accordingly, the Optionee may not be
able to exercise the Option when desired even though the Option is vested, and
the Company shall have no obligation to issue a certificate for such shares of
Stock.

              4.6 CERTIFICATE REGISTRATION. Except in the event the Exercise
Price is paid by means of a Cashless Exercise, the certificate(s) for the shares
as to which the Option is exercised shall be registered in the name of the
Optionee, or, if applicable, in the names of the heirs of the Optionee.

              4.7 RESTRICTIONS ON GRANT OF THE OPTION AND ISSUANCE OF SHARES.
The grant of the Option and the issuance of shares of Stock upon exercise of the
Option shall be subject to compliance with all applicable requirements of
federal, state or foreign law with respect to such securities. The Option may
not be exercised if the issuance of shares of Stock upon exercise would
constitute a violation of any applicable federal, state or foreign securities
laws or other law or regulations or the requirements of any stock exchange or
market system upon which the Stock may then be listed. In addition, the Option
may not be exercised unless (i) a registration statement under the Securities
Act shall at the time of exercise of the Option be in effect with respect to the
shares issuable upon exercise of the Option or (ii) in the opinion of legal
counsel to the Company, the shares issuable upon exercise of the Option may be
issued in accordance with the terms of an applicable exemption from the
registration requirements of the Securities Act.

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THE OPTIONEE IS CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE
FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, THE OPTIONEE MAY NOT BE ABLE TO
EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED. The inability
of the Company to obtain from any regulatory body having jurisdiction the
authority, if any, deemed by the Company's legal counsel to be necessary to the
lawful issuance and sale of any shares of Stock subject to the Option shall
relieve the Company of any liability in respect of the failure to issue or sell
such shares as to which such requisite authority shall not have been obtained.
As a condition to the exercise of the Option, the Company may require the
Optionee to satisfy any qualifications that may be necessary or appropriate to
evidence compliance with any applicable law or regulation and to make any
representation or warranty with respect thereto as may be requested by the
Company.

              4.8 FRACTIONAL SHARES. The Company shall not be required to issue
fractional shares of Stock upon the exercise of the Option.

       5. NONTRANSFERABILITY OF THE OPTION.

              The Option may be exercised during the lifetime of the Optionee
only by the Optionee or the Optionee's guardian or legal representative and may
not be assigned or transferred in any manner except by will or by the laws of
descent and distribution. Following the death of the Optionee, the Option, to
the extent provided in Section 7, may be exercised by the Optionee's legal
representative or by any person empowered to do so under the deceased Optionee's
will or under the then applicable laws of descent and distribution.

       6. TERMINATION OF THE OPTION.

              The Option shall terminate and may no longer be exercised on the
first to occur of (a) the Option Expiration Date, (b) the last date for
exercising the Option following termination of the Optionee's Service as
described in Section 7, or (c) a Corporate Transaction to the extent provided in
Section 8.

       7. EFFECT OF TERMINATION OF SERVICE.

              7.1 OPTION EXERCISABILITY.

                     (a) DISABILITY. If the Optionee's Service with the
Participating Company Group is terminated because of the Disability of the
Optionee, the Option, to the extent unexercised and exercisable on the date on
which the Optionee's Service terminated, may be exercised by the Optionee (or
the Optionee's guardian or legal representative) at any time prior to the
expiration of eighteen (18) months after the date on which the Optionee's
Service terminated, but in any event no later than the Option Expiration Date.

                     (b) DEATH. If the Optionee's Service with the Participating
Company Group is terminated because of the death of the Optionee, the Option, to
the extent unexercised and exercisable on the date on which the Optionee's
Service terminated, may be exercised by the Optionee's legal representative or
other person who acquired the right to exercise the Option by

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reason of the Optionee's death at any time prior to the expiration of eighteen
(18) months after the date on which the Optionee's Service terminated, but in
any event no later than the Option Expiration Date. The Optionee's Service shall
be deemed to have terminated on account of death if the Optionee dies within
three (3) months after the Optionee's termination of Service.

                     (c) OTHER TERMINATION OF SERVICE. If the Optionee's Service
with the Participating Company Group terminates for any reason, except
Disability or death, the Option, to the extent unexercised and exercisable by
the Optionee on the date on which the Optionee's Service terminated, may be
exercised by the Optionee within eighteen (18) months after the date on which
the Optionee's Service terminated, but in any event no later than the Option
Expiration Date.

              7.2 EXTENSION IF EXERCISE PREVENTED BY LAW. Notwithstanding the
foregoing, if the exercise of the Option within the applicable time periods set
forth in Section 7.1 is prevented by the provisions of Section 4.7, the Option
shall remain exercisable until three (3) months after the date the Optionee is
notified by the Company that the Option is exercisable, but in any event no
later than the Option Expiration Date.

              7.3 EXTENSION IF OPTIONEE SUBJECT TO SECTION 16(b).
Notwithstanding the foregoing, if a sale within the applicable time periods set
forth in Section 7.1 of shares of Stock acquired upon the exercise of the Option
would subject the Optionee to suit under Section 16(b) of the Exchange Act, the
Option shall remain exercisable until the earliest to occur of (i) the tenth
(10th) day following the date on which a sale of such shares by the Optionee
would no longer be subject to such suit, or (ii) the Option Expiration Date.

       8. ADJUSTMENTS UPON CHANGES IN STOCK.

              8.1 CAPITALIZATION ADJUSTMENTS. If any change is made in the Stock
subject to the Option, without the receipt of consideration by the Company
(through merger, consolidation, reorganization, recapitalization,
reincorporation, stock dividend, dividend in property other than cash, stock
split, liquidating dividend, combination of shares, exchange of shares, change
in corporate structure or other transaction not involving the receipt of
consideration by the Company), any outstanding Option shares hereunder will be
appropriately adjusted in the nature, class(es) and number of securities and
price per share of Stock subject to such outstanding Option. The Board shall
make such adjustments, and its determination shall be final, binding and
conclusive. (The conversion of any convertible securities of the Company shall
not be treated as a transaction "without receipt of consideration" by the
Company.)

              8.2 DISSOLUTION OR LIQUIDATION. In the event of a dissolution or
liquidation of the Company, then all outstanding Option shares shall terminate
immediately prior to such event.

              8.3 ASSET SALE, MERGER, CONSOLIDATION OR REVERSE MERGER. In the
event of (i) a sale, lease or other disposition of all or substantially all of
the assets of the Company, (ii) a merger or consolidation in which the Company
is not the surviving corporation, or (iii) a reverse merger in which the Company
is the surviving corporation but the shares of Stock outstanding immediately
preceding the merger are converted by virtue of the merger into other property,
whether in the form of securities, cash or otherwise (individually, a "Corporate
Transaction"),

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then the vesting of the Option (and, if applicable, the time during which the
Option may be exercised) shall be accelerated in full, and the Option shall
terminate if not exercised at or prior to the Corporate Transaction.

       9. RIGHTS AS A SHAREHOLDER, EMPLOYEE OR CONSULTANT.

              The Optionee shall have no rights as a shareholder with respect to
any shares covered by the Option until the date of the issuance of a certificate
for the shares of Stock for which the Option has been exercised (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company). No adjustment shall be made for dividends,
distributions or other rights for which the record date is prior to the date
such certificate is issued, except as provided in Section 8. If the Optionee is
an Employee, the Optionee understands and acknowledges that, except as otherwise
provided in a separate, written employment agreement between a Participating
Company and the Optionee, the Optionee's employment is "at will" and is for no
specified term. Nothing in this Option Agreement shall confer upon the Optionee
any right to continue in the Service of a Participating Company or interfere in
any way with any right of the Participating Company Group to terminate the
Optionee's Service as an Employee or Consultant, as the case may be, at any
time.

       10. LEGENDS.

              The Company may at any time place legends referencing any
applicable federal, state or foreign securities law restrictions on all
certificates representing shares of Stock subject to the provisions of this
Option Agreement. The Optionee shall, at the request of the Company, promptly
present to the Company any and all certificates representing shares acquired
pursuant to the Option in the possession of the Optionee in order to carry out
the provisions of this Section.

       11. MISCELLANEOUS PROVISIONS.

              11.1 BINDING EFFECT. Subject to the restrictions on transfer set
forth herein, this Option Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, executors, administrators,
successors and assigns.

              11.2 TERMINATION OR AMENDMENT. The Board may terminate or amend
the Option at any time; provided, however, that except as provided in Section
8.3 in connection with a Corporate Transaction, no such termination or amendment
may adversely affect the Option or any unexercised portion hereof without the
consent of the Optionee unless such termination or amendment is necessary to
comply with any applicable law or government regulation. No amendment or
addition to this Option Agreement shall be effective unless in writing.

              11.3 INTEGRATED AGREEMENT. This Option Agreement constitutes the
entire understanding and agreement of the Optionee and the Participating Company
Group with respect to the subject matter contained herein and supersedes any
prior agreements, understandings, restrictions, representations, or warranties
among the Optionee and the Participating Company Group with respect to such
subject matter other than those set forth or provided for herein. To

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the extent contemplated herein, the provisions of this Option Agreement shall
survive any exercise of the Option and shall remain in full force and effect.

              11.4 APPLICABLE LAW. This Option Agreement shall be governed by
the laws of the State of California as such laws are applied to agreements
between California residents entered into and to be performed entirely within
the State of California.

              11.5 COUNTERPARTS. This Option Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                                        GENERAL MAGIC, INC.

                                        By: /s/ Mary E. Doyle
                                           -------------------------------------

                                        Title: General Counsel
                                              ----------------------------------

                                        Address:
                                                --------------------------------

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

       The Optionee represents that the Optionee is familiar with the terms and
provisions of this Option Agreement and hereby accepts the Option subject to all
of the terms and provisions thereof. The Optionee hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the Board upon
any questions arising under this Option Agreement. The undersigned acknowledges
receipt of a copy of the Option Agreement.

                                        OPTIONEE

Date: 8/5/01                            /s/ Steven Markman
     -------------------------------    ----------------------------------------
                                        Steven Markman

                                        Optionee Address:

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

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

                                       9<PAGE>   1

                                                                   EXHIBIT 4.28

                           THIRD AMENDED AND RESTATED
                                     BYLAWS
                                       OF
                               GENERAL MAGIC, INC.

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                  Page
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<S>                                                              <C>
ARTICLE I STOCKHOLDERS.......................................       1
     Section 1.1. Annual Meeting.............................       1
     Section 1.2. Special Meetings...........................       1
     Section 1.3. Notice of Meetings.........................       1
     Section 1.4. Quorum.....................................       2
     Section 1.5. Conduct of the Stockholders' Meeting.......       2
     Section 1.6. Conduct of Business........................       3
     Section 1.7. Notice of Stockholder Business.............       3
     Section 1.8. Proxies and Voting.........................       4
     Section 1.9. Stock List.................................       5

ARTICLE II BOARD OF DIRECTORS................................       5
     Section 2.1. Number and Term of Office..................       5
     Section 2.2. Vacancies and Newly Created Directorships..       6
     Section 2.3. Removal....................................       6
     Section 2.4. Regular Meetings...........................       6
     Section 2.5. Special Meetings...........................       6
     Section 2.6. Quorum; Required Approvals.................       6
     Section 2.7. Participation in Meetings by
                     Conference Telephone....................       7
     Section 2.8. Appointment of Chairman; Conduct of
                     Business...............................        7
     Section 2.9. Powers.....................................       7
     Section 2.10.Compensation of Directors.................        8
     Section 2.11.Nomination of Director Candidates.........        8

ARTICLE III COMMITTEES.........................................     9
     Section 3.1. Committees of the Board of Directors.......       9
     Section 3.2. Conduct of Business........................      10

ARTICLE IV OFFICERS..........................................      10
     Section 4.1. Generally..................................      10
     Section 4.2. Intentionally Omitted......................      10
     Section 4.3. President..................................      10
     Section 4.4. Vice President.............................      10
     Section 4.5. Treasurer and Chief Financial Officer......      11
     Section 4.6. Secretary..................................      11
     Section 4.7. Assistant Secretary........................      11
     Section 4.8. Subordinate Officers, etc..................      11
     Section 4.9. Delegation of Authority....................      11
     Section 4.10.Removal...................................       12
     Section 4.11.Action With Respect to Securities of Other
                     Corporations............................      12

ARTICLE V STOCK..............................................      12
     Section 5.1. Certificates of Stock......................      12
     Section 5.2. Transfers of Stock.........................      12
     Section 5.3. Record Date................................      12
     Section 5.4. Lost, Stolen or Destroyed Certificates.....      12
     Section 5.5. Regulations................................      13
</TABLE>

<PAGE>   3

                                TABLE OF CONTENTS

                                   (continued)

<TABLE>
<CAPTION>
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                                                                  ----
<S>                                                              <C>
ARTICLE VI NOTICES...........................................      13
     Section 6.1. Notices....................................      13
     Section 6.2. Waivers....................................      13

ARTICLE VII MISCELLANEOUS....................................      13
     Section 7.1. Facsimile Signatures.......................      13
     Section 7.2. Corporate Seal.............................      13
     Section 7.3. Reliance Upon Books, Reports and Records...      14
     Section 7.4. Fiscal Year................................      14
     Section 7.5. Time Periods...............................      14

ARTICLE VIII INDEMNIFICATION OF DIRECTORS AND OFFICERS.......      14
     Section 8.1. Right to Indemnification...................      14
     Section 8.2. Right of Claimant to Bring Suit............      15
     Section 8.3. Non-Exclusivity of Rights..................      16
     Section 8.4. Indemnification Contracts..................      16
     Section 8.5. Insurance..................................      16
     Section 8.6. Effect of Amendment........................      16

ARTICLE IX AMENDMENTS........................................      16
     Section 9.1. Amendment of Bylaws........................      16
</TABLE>

<PAGE>   4

                               GENERAL MAGIC, INC.

                             A DELAWARE CORPORATION

                                     BYLAWS

                                    ARTICLE I

                                  STOCKHOLDERS

              Section 1.1. Annual Meeting. An annual meeting of the
stockholders, for the election of directors to succeed those whose terms expire
and for the transaction of such other business as may properly come before the
meeting, shall be held at such place, on such date, and at such time as the
Board of Directors shall each year fix, which date shall be within thirteen
months subsequent to the later of the date of incorporation or the last annual
meeting of stockholders.

              Section 1.2. Special Meetings. Special meetings of the
stockholders, for any purpose or purposes prescribed in the notice of the
meeting, may be called only by (i) the Board of Directors pursuant to a
resolution adopted by a majority of the total number of authorized directors
(whether or not there exist any vacancies in previously authorized directorships
at the time any such resolution is presented to the Board of Directors for
adoption), or (ii) the Chairman of the Board, or (iii) the President, or (iv)
the holders of not less than 10% of all shares entitled to cast votes at the
meeting, voting together as a single class and shall be held at such place, on
such date, and at such time as they shall fix. Business transacted at special
meetings shall be confined to the purpose or purposes stated in the notice.

              Section 1.3. Notice of Meetings. Subject to Section 6.1 hereof,
written notice of the place, date, and time of all meetings of the stockholders
shall be given not less than ten (10) nor more than sixty (60) days before the
date on which the meeting is to be held, to each stockholder entitled to vote at
such meeting, except as otherwise provided herein or required by law (meaning,
here and hereinafter, as required from time to time by the Delaware General
Corporation Law or the Certificate of Incorporation of the Corporation).

              Notice may be given by (i) delivering a written notice thereof to
such stockholder personally, (ii) depositing notice in the United States mail,
in a postage prepaid envelope, directed to such stockholder at such
stockholder's address furnished by such stockholder to the Secretary of the
Corporation for the purpose of receiving notice or, if such stockholder shall
not have furnished to the Secretary such stockholder's address for such purpose,
then at such stockholder's address last known to the Secretary, or (iii)
transmitting the notice by any electronic means, directed to such stockholder at
the location furnished by such stockholder to the Secretary of the Corporation
for the purpose of receiving such notice. Except as otherwise expressly required
by law, no publication of any

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notice of a meeting of stockholders shall be required. Every notice of a meeting
of the stockholders shall state the place, date and hour of the meeting, and, in
the case of a special meeting, shall also state the purpose for which the
meeting is called. Notice of any meeting of stockholders shall not be required
to be given to any stockholder to whom notice may be omitted pursuant to
applicable Delaware law or who shall have waived such notice, and such notice
shall be deemed waived by any stockholder who shall attend such meeting in
person or by proxy, except a stockholder who shall attend such meeting for the
express purpose of objecting, at the beginning of the meeting, to the
transaction of any business because the meeting is not lawfully called or
convened. Except as otherwise expressly required by law, notice of any adjourned
meeting of the stockholders need not be given if the time and place thereof are
announced at the meeting at which the adjournment is taken.

              Section 1.4. Quorum. At any meeting of the stockholders, the
holders of a majority of all of the shares of the stock (including shares of the
Corporation's preferred stock) entitled to vote at the meeting, present in
person or by proxy (counting preferred or other convertible stock entitled to
vote for this purpose on an "as-if-converted" to common basis), shall constitute
a quorum for all purposes, unless or except to the extent that the presence of a
larger number may be required by law.

              If a quorum shall fail to attend any meeting, the chairman of the
meeting or the holders of a majority of the shares of stock entitled to vote who
are present, in person or by proxy (counting preferred or other convertible
stock entitled to vote for this purpose on an "as-if-converted" to common
basis), may adjourn the meeting to another place, date, or time.

              If a notice of any adjourned special meeting of stockholders is
sent to all stockholders entitled to vote thereat, stating that it will be held
with those present constituting a quorum, then except as otherwise required by
law, those present at such adjourned meeting shall constitute a quorum, and all
matters shall be determined by a majority of the votes cast at such meeting.

              Section 1.5. Conduct of the Stockholders' Meeting. At every
meeting of the stockholders, the Chairman, if there is such an officer, or if
not, the President of the Corporation, or in his absence the Vice President
designated by the President, or in the absence of such designation any Vice
President, or in the absence of the President or any Vice President, a chairman
chosen by the majority of the voting shares represented in person or by proxy,
shall act as Chairman. The Secretary of the Corporation or a person designated
by the Chairman shall act as Secretary of the meeting. Unless otherwise approved
by the Chairman, attendance at the stockholders' meeting is restricted to
stockholders of record, persons authorized in accordance with Section 1.8 of
these Bylaws to act by proxy, and officers of the Corporation.

                                       2
<PAGE>   6

              Section 1.6. Conduct of Business. The Chairman shall call the
meeting to order, establish the agenda, and conduct the business of the meeting
in accordance therewith or, at the Chairman's discretion, it may be conducted
otherwise in accordance with the wishes of the stockholders in attendance. The
date and time of the opening and closing of the polls for each matter upon which
the stockholders will vote at the meeting shall be announced at the meeting.

              The Chairman shall also conduct the meeting in an orderly manner,
rule on the precedence of and procedure on, motions and other procedural
matters, and exercise discretion with respect to such procedural matters with
fairness and good faith toward all those entitled to take part. The Chairman may
impose reasonable limits on the amount of time taken up at the meeting on
discussion in general or on remarks by any one stockholder. Should any person in
attendance become unruly or obstruct the meeting proceedings, the Chairman shall
have the power to have such person removed from participation. Notwithstanding
anything in the Bylaws to the contrary, no business shall be conducted at a
meeting except in accordance with the procedures set forth in this Section 1.6
and Section 1.7, below. The Chairman of a meeting shall, if the facts warrant,
determine and declare to the meeting that business was not properly brought
before the meeting and in accordance with the provisions of this Section 1.6 and
Section 1.7, and if he should so determine, he shall so declare to the meeting,
and any such business not properly brought before the meeting shall not be
transacted.

              Section 1.7. Notice of Stockholder Business. At an annual or
special meeting of the stockholders, only such business shall be conducted as
shall have been properly brought before the meeting. To be properly brought
before a meeting, business must be (a) specified in the notice of meeting (or
any supplement thereto) given by or at the direction of the Board of Directors,
(b) properly brought before the meeting by or at the direction of the Board of
Directors, (c) properly brought before an annual meeting by a stockholder, or
(d) properly brought before a special meeting by a stockholder, but if, and only
if, the notice of a special meeting provides for business to be brought before
the meeting by stockholders. For business to be properly brought before a
meeting by a stockholder, the stockholder must have given timely notice thereof
in writing to the Secretary of the Corporation. To be timely, a stockholder
proposal to be presented at an annual meeting shall be received at the
Corporation's principal executive offices not less than 120 calendar days in
advance of the date that the Corporation's (or the Corporation's predecessor's)
proxy statement was released to stockholders in connection with the previous
year's annual meeting of stockholders, except that if no annual meeting was held
in the previous year or the date of the annual meeting has been changed by more
than 30 calendar days from the date contemplated at the time of the previous
year's proxy statement, or in the event of a special meeting, notice by the
stockholder to be timely must be received not later than the close of business
on the tenth day following the day on which such notice of the date of the
meeting was

                                       3
<PAGE>   7

mailed or such public disclosure was made. A stockholder's notice to the
Secretary shall set forth as to each matter the stockholder proposes to bring
before the annual or special meeting (a) a brief description of the business
desired to be brought before the annual or special meeting and the reasons for
conducting such business at the special meeting, (b) the name and address, as
they appear on the Corporation's books, of the stockholder proposing such
business, (c) the class and number of shares of the Corporation which are
beneficially owned by the stockholder, and (d) any material interest of the
stockholder in such business.

              Section 1.8. Proxies and Voting.

              (a) Each stockholder shall, at each meeting of the stockholders,
be entitled to vote in person or by proxy each share of the stock of the
Corporation having voting rights on the matter in question and which shall have
been held by such stockholder and registered in such stockholder's name on the
books of the Corporation:

                     (i) on the date fixed pursuant to Section 5.3 of these
Bylaws as the record date for the determination of stockholders entitled to
notice of and to vote at such meeting, or

                     (ii) if no such record date shall have been so fixed, then
(1) at the close of business on the day next preceding the day on which notice
of the meeting shall be given, or (2) if notice of the meeting shall be waived,
at the close of business on the day next preceding the day on which the meeting
shall be held.

              (b) Shares of its own stock belonging to the Corporation or to
another corporation, if a majority of the shares entitled to vote in the
election of directors in such other corporation is held, directly or indirectly,
by the Corporation, shall neither be entitled to vote nor be counted for quorum
purposes. Persons holding stock of the Corporation in a fiduciary capacity shall
be entitled to vote such stock. Persons whose stock is pledged shall be entitled
to vote, unless in the transfer by the pledgor on the books of the Corporation
the pledgor shall have expressly empowered the pledgee to vote thereon, in which
case only the pledgee, or the pledgee's proxy, may represent such stock and vote
thereon. Stock having voting power standing of record in the names of two or
more persons, whether fiduciaries, members of a partnership, joint tenants,
tenants in common, tenants by the entirety or otherwise, or with respect to
which two or more persons have the same fiduciary relationship, shall be voted
in accordance with the provisions of the General Corporation Law of the State of
Delaware.

              (c) Any such voting rights may be exercised by the stockholder
entitled thereto in person or by such stockholder's proxy duly authorized as
such by any means permitted under the General Corporation Law of the State of
Delaware (including without limitation, in writing or by transmitting or
authorizing an electronic transmission, or by any copy, facsimile,
telecommunication or other

                                       4
<PAGE>   8

reproduction of such authorization) and delivered to the secretary of the
meeting; provided, however, that no proxy shall be voted or acted upon after
three years from its date unless said proxy shall provide for a longer period.
The attendance at any meeting of a stockholder who may theretofore have given a
proxy shall not have the effect of revoking the same unless such stockholder
shall in writing, or by any other means permissible for authorizing a proxy, so
notify the secretary of the meeting prior to the voting of the proxy. At any
meeting of the stockholders, unless otherwise required by the Certificate of
Incorporation, in these Bylaws or by law, all elections shall be determined by a
plurality of the votes cast in person or by proxy and entitled to vote thereat
and thereon, a quorum being present, and all other matters, except as otherwise
provided in the Certificate of Incorporation, in these Bylaws or by law, shall
be decided by the vote of a majority in voting interest of the stockholders
present in person or by proxy and entitled to vote thereat and thereon, a quorum
being present. The vote at any meeting of the stockholders on any question need
not be by ballot, unless so directed by the chairman of the meeting. On a vote
by ballot each ballot shall be signed by the stockholder voting, or by such
stockholder's proxy, if there be such proxy, and it shall state the number of
shares voted.

              Section 1.9. Stock List. A complete list of stockholders entitled
to vote at any meeting of stockholders, arranged in alphabetical order for each
class of stock and showing the address of each such stockholder and the number
of shares registered in his or her name, shall be open to the examination of any
such stockholder, for any purpose germane to the meeting, during ordinary
business hours for a period of at least ten (10) days prior to the meeting,
either at a place within the city where the meeting is to be held, which place
shall be specified in the notice of the meeting, or if not so specified, at the
place where the meeting is to be held.

              The stock list shall also be kept at the place of the meeting
during the whole time thereof and shall be open to the examination of any such
stockholder who is present. This list shall presumptively determine the identity
of the stockholders entitled to vote at the meeting and the number of shares
held by each of them.

                                   ARTICLE II

                               BOARD OF DIRECTORS

              Section 2.1. Number and Term of Office.

              (a) The number of directors shall be five (5), and thereafter
shall be fixed from time to time exclusively by the Board of Directors pursuant
to a resolution adopted by a majority of the total number of authorized
directors (whether or not there exist any vacancies in previously authorized
directorships at the time any such resolution is presented to the Board for
adoption), provided that in no event shall the number of directors exceed twelve
(12).

                                       5
<PAGE>   9

              (b) A vacancy resulting from the removal of a director by the
stockholders as provided in Article II, Section 2.3 below may be filled at a
special meeting of the stockholders held for that purpose. All directors shall
hold office until the expiration of the term for which elected and until their
respective successors are elected, except in the case of the death, resignation
or removal of any director.

              Section 2.2. Vacancies and Newly Created Directorships. Subject to
the rights of the holders of any series of Preferred Stock then outstanding,
newly created directorships resulting from any increase in the authorized number
of directors or any vacancies in the Board of Directors resulting from death,
resignation, retirement, disqualification or other cause (other than removal
from office by a vote of the stockholders) may be filled only by a majority vote
of the directors then in office, though less than a quorum, and directors so
chosen shall hold office for a term expiring at the next annual meeting of
stockholders at which the term of office of the class to which they have been
elected expires. No decrease in the number of directors constituting the Board
of Directors shall shorten the term of any incumbent director.

              Section 2.3. Removal. Subject to the rights of holders of any
series of Preferred Stock then outstanding, any directors, or the entire Board
of Directors, may be removed from office at any time, with or without cause, but
only by the affirmative vote of the holders of at least a majority of the voting
power of all of the then outstanding shares of capital stock of the Corporation
entitled to vote generally in the election of directors, voting together as a
single class. Vacancies in the Board of Directors resulting from such removal
may be filled by a majority of the directors then in office, though less than a
quorum, or by the stockholders as provided in Article II, Section 2.1(b) above.
Directors so chosen shall hold office until the next annual meeting of
stockholders.

              Section 2.4. Regular Meetings. Regular meetings of the Board of
Directors shall be held at such place or places, on such date or dates, and at
such time or times as shall have been established by the Board of Directors and
publicized among all directors. A notice of each regular meeting shall not be
required.

              Section 2.5. Special Meetings. Special meetings of the Board of
Directors may be called by one-third of the directors then in office (rounded up
to the nearest whole number) or by the chief executive officer and shall be held
at such place, on such date, and at such time as they or he or she shall fix.

              Section 2.6. Quorum; Required Approvals. At any meeting of the
Board of Directors, one third of the total number of authorized directors shall
constitute a quorum for all purposes. If a quorum shall fail to attend any
meeting, a majority of those present may adjourn the meeting to another place,
date, or time, without further

                                       6
<PAGE>   10

notice or waiver thereof. If a quorum is present, the affirmative vote of a
majority of the directors attending the meeting and entitled to vote shall be
the act of the Board of Directors.

              Section 2.7. Participation in Meetings by Conference Telephone.
Members of the Board of Directors, or of any committee thereof, may participate
in a meeting of such Board or committee by means of conference telephone or
similar communications equipment by means of which all persons participating in
the meeting can hear each other and such participation shall constitute presence
in person at such meeting.

              Section 2.8. Appointment of Chairman; Conduct of Business. The
members of the Board shall appoint a Chairman, who need not also be an officer
of the Corporation, to preside at all meetings of the Board of Directors, and to
exercise and perform such other powers and duties as may be from time to time
assigned by the Board of Directors or prescribed by these Bylaws. At any meeting
of the Board of Directors, business shall be transacted in such order and manner
as the Board may from time to time determine, and all matters shall be
determined by the vote of a majority of the directors present, except as
otherwise provided herein or required by law. Action may be taken by the Board
of Directors without a meeting if all members thereof consent thereto in
writing, and the writing or writings are filed with the minutes of proceedings
of the Board of Directors.

              Section 2.9. Powers. Subject to Section 2.6 of Article II of these
Bylaws, the Board of Directors may, except as otherwise required by law,
exercise all such powers and do all such acts and things as may be exercised or
done by the Corporation, including, without limiting the generality of the
foregoing, the unqualified power:

              (a) To declare dividends from time to time in accordance with law;

              (b) To purchase or otherwise acquire any property, rights or
privileges on such terms as it shall determine;

              (c) To authorize the creation, making and issuance, in such form
as it may determine, of written obligations of every kind, negotiable or
non-negotiable, secured or unsecured, and to do all things necessary in
connection therewith;

              (d) To remove any officer of the Corporation with or without
cause, and from time to time to devolve the powers and duties of any officer
upon any other person for the time being;

              (e) To confer upon any officer of the Corporation the power to
appoint, remove and suspend subordinate officers, employees and agents;

                                       7
<PAGE>   11

              (f) To adopt from time to time such stock, option, stock purchase,
bonus or other compensation plans for directors, officers, employees and agents
of the Corporation and its subsidiaries as it may determine;

              (g) To adopt from time to time such insurance, retirement, and
other benefit plans for directors, officers, employees and agents of the
Corporation and its subsidiaries as it may determine; and

              (h) To adopt from time to time regulations, not inconsistent with
these Bylaws, for the management of the Corporation's business and affairs.

              Section 2.10 Compensation of Directors. Directors, as such, may
receive, pursuant to resolution of the Board of Directors, fixed fees and other
compensation for their services as directors, including, without limitation,
their services as members of committees of the Board of Directors.

              Section 2.11. Nomination of Director Candidates. Subject to the
rights of holders of any class or series of Preferred Stock then outstanding,
nominations for the election of directors may be made by the Board of Directors.
Nominations for the election of directors may also be made by any stockholder
entitled to vote in the election of directors generally. However, any
stockholder entitled to vote in the election of directors generally may nominate
one or more persons for election as directors at a meeting only if timely notice
of such stockholder's intent to make such nomination or nominations has been
given in writing to the Secretary of the Corporation. To be timely, a
stockholder's nomination for a director to be elected at an annual meeting shall
be received at the Corporation's principal executive offices not less than 120
calendar days in advance of the date that the Corporation's (or the
Corporation's Predecessor's) proxy statement was released to stockholders in
connection with the previous year's annual meeting of stockholders, except that
if no annual meeting was held in the previous year or the date of the annual
meeting has been changed by more than 30 calendar days from the date
contemplated at the time of the previous year's proxy statement, or in the event
of a nomination for director to be elected at a special meeting, notice by the
stockholders to be timely must be received not later than the close of business
on the tenth day following the day on which such notice of the date of the
meeting was mailed or such public disclosure was made. Each such notice shall
set forth: (a) the name and address of the stockholder who intends to make the
nomination and of the person or persons to be nominated; (b) a representation
that the stockholder is a holder of record of stock of the Corporation entitled
to vote for the election of directors on the date of such notice and intends to
appear in person or by proxy at the meeting to nominate the person or persons
specified in the notice; (c) a description of all arrangements or understandings
between the stockholder and each nominee and any other person or persons (naming
such person or persons) pursuant to which the nomination or nominations are to
be made by the stockholder; (d) such other

                                       8
<PAGE>   12

information regarding each nominee proposed by such stockholder as would be
required to be included in a proxy statement filed pursuant to the proxy rules
of the Securities and Exchange Commission, had the nominee been nominated, or
intended to be nominated, by the Board of Directors; and (e) the consent of each
nominee to serve as a director of the Corporation if so elected.

              In the event that a person is validly designated as a nominee in
accordance with this Section 2.11 and shall thereafter become unable or
unwilling to stand for election to the Board of Directors, the Board of
Directors or the stockholder who proposed such nominee, as the case may be, may
designate a substitute nominee upon delivery, not fewer than five days prior to
the date of the meeting for the election of such nominee, of a written notice to
the Secretary setting forth such information regarding such substitute nominee
as would have been required to be delivered to the Secretary pursuant to this
Section 2.11 had such substitute nominee been initially proposed as a nominee.
Such notice shall include a signed consent to serve as a director of the
Corporation, if elected, of each such substitute nominee.

              If the chairman of the meeting for the election of directors
determines that a nomination of any candidate for election as a director at such
meeting was not made in accordance with the applicable provisions of this
Section 2.11, such nomination shall be void; provided, however, that nothing in
this Section 2.11 shall be deemed to limit any voting rights upon the occurrence
of dividend arrearages provided to holders of Preferred Stock pursuant to the
Preferred Stock designation for any series of Preferred Stock.

                                   ARTICLE III

                                   COMMITTEES

              Section 3.1. Committees of the Board of Directors. The Board of
Directors, by a vote of a majority of the whole Board, may from time to time
designate committees of the Board, with such lawfully delegable powers and
duties as it thereby confers, to serve at the pleasure of the Board and shall,
for those committees and any others provided for herein, elect a director or
directors to serve as the member or members, designating, if it desires, other
directors as alternate members who may replace any absent or disqualified member
at any meeting of the committee. Any committee so designated may exercise the
power and authority of the Board of Directors to declare a dividend, to
authorize the issuance of stock or to adopt a certificate of ownership and
merger pursuant to Section 253 of the Delaware General Corporation Law if the
resolution which designates the committee or a supplemental resolution of the
Board of Directors shall so provide. In the absence or disqualification of any
member of any committee and any alternate member in his place, the member or
members of the committee present at the meeting and not disqualified from
voting, whether or not he or she or they constitute a quorum, may

                                       9
<PAGE>   13

by unanimous vote appoint another member of the Board of Directors to act at the
meeting in the place of the absent or disqualified member.

              Section 3.2. Conduct of Business. Each committee may determine the
procedural rules for meeting and conducting its business and shall act in
accordance therewith, except as otherwise provided herein or required by law.
Adequate provision shall be made for notice to members of all meetings;
one-third of the authorized members shall constitute a quorum unless the
committee shall consist of one or two members, in which event one member shall
constitute a quorum; and all matters shall be determined by a majority vote of
the members present. Action may be taken by any committee without a meeting if
all members thereof consent thereto in writing, and the writing or writings are
filed with the minutes of the proceedings of such committee.

                                   ARTICLE IV

                                    OFFICERS

              Section 4.1. Generally. The officers of the Corporation shall be a
Chairman of the Board, a President, a Vice President, a Secretary, and a
Treasurer, who shall be the Chief Financial Officer of the Corporation. The
Corporation may also have, at the discretion of the Board of Directors, one or
more additional Vice Presidents, one or more Assistant Secretaries, and such
other officers as may be appointed in accordance with the provisions of Section
4.8 below. One person may hold two or more offices.

              Section 4.2. Intentionally Omitted.

              Section 4.3. President. The President shall be the chief executive
officer ("CEO") of the Corporation. Subject to the provisions of these Bylaws
and to the direction of the Board of Directors, the CEO shall have the
responsibility for the general management and control of the business and
affairs of the Corporation and shall perform all duties and have all powers
which are usually vested in the office of president of a corporation. The CEO
shall have the general supervision and direction of all of the other officers,
employees and agents of the Corporation, and shall have such other powers and
duties as may be delegated by the Board of Directors or these Bylaws.

              Section 4.4. Vice President. In the absence or disability of the
President, the Vice Presidents in order of their rank as fixed by the Board of
Directors, or if not ranked, the Vice President designated by the Board of
Directors, shall perform the duties of the President, and when so acting shall
have all the powers of, and be subject to all the restrictions upon, the
President. The Vice Presidents shall have such other powers and perform such
other duties as from time to time may be prescribed for them respectively by the
Board of Directors or these Bylaws.

                                       10
<PAGE>   14

              Section 4.5. Treasurer and Chief Financial Officer. The Treasurer
and Chief Financial Officer shall keep and maintain, or cause to be kept and
maintained, adequate and correct books and records of account in written form or
any other form capable of being converted into written form.

              The Treasurer and Chief Financial Officer shall deposit all monies
and other valuables in the name and to the credit of the Corporation with such
depositaries as may be designated by the Board of Directors. He shall disburse
all funds of the Corporation as may be ordered by the Board of Directors, shall
render to the President and directors, whenever they request it, an account of
all of his transactions as Treasurer and Chief Financial Officer and of the
financial condition of the Corporation, and shall have such other powers and
perform such other duties as may be prescribed by the Board of Directors or by
these Bylaws.

              Section 4.6. Secretary. The Secretary shall keep, or cause to be
kept, a book of minutes in written form of the proceedings of the Board of
Directors, committees of the Board, and stockholders. Such minutes shall include
all waivers of notice, consents to the holding of meetings, or approvals of the
minutes of meetings executed pursuant to these Bylaws or the Delaware General
Corporation Law. The Secretary shall keep, or cause to be kept at the principal
executive office or at the office of the Corporation's transfer agent or
registrar, a record of its stockholders, giving the names and addresses of all
stockholders and the number and class of shares held by each.

              The Secretary shall give or cause to be given, notice of all
meetings of the stockholders and of the Board of Directors required by these
Bylaws or by law to be given, and shall keep the seal of the Corporation in safe
custody, and shall have such other powers and perform such other duties as may
be prescribed by the Board of Directors or these Bylaws.

              Section 4.7. Assistant Secretary. The Assistant Secretary shall
have all the powers, and perform all the duties of, the Secretary in the absence
or inability of the Secretary to act.

              Section 4.8. Subordinate Officers, etc. The Board of Directors may
appoint such other officers as the business of the Corporation may require, each
of whom shall hold office for such period, have such authority and perform such
duties as are provided in these Bylaws or as the Board of Directors may from
time to time determine.

              Section 4.9. Delegation of Authority. The Board of Directors may
from time to time delegate the powers or duties of any officer to any other
officers or agents, notwithstanding any provision hereof.

                                       11
<PAGE>   15

              Section 4.10. Removal. Any officer of the Corporation may be
removed at any time, with or without cause, by the Board of Directors.

              Section 4.11. Action With Respect to Securities of Other
Corporations. Unless otherwise directed by the Board of Directors, the Chairman
of the Board, the President or any officer of the Corporation authorized by
either the Chairman of the Board or the President shall have power to vote and
otherwise act on behalf of the Corporation, in person or by proxy, at any
meeting of stockholders of or with respect to any action of stockholders of any
other corporation in which this Corporation may hold securities and otherwise to
exercise any and all rights and powers which this Corporation may possess by
reason of its ownership of securities in such other corporation.

                                    ARTICLE V

                                      STOCK

              Section 5.1. Certificates of Stock. Each stockholder shall be
entitled to a certificate signed by, or in the name of the Corporation by, the
Chairman of the Board, the President or a Vice President, and by the Secretary
or an Assistant Secretary, or the Treasurer or an Assistant Treasurer,
certifying the number of shares owned by him or her. Any of or all the
signatures on the certificate may be facsimile.

              Section 5.2. Transfers of Stock. Transfers of stock shall be made
only upon the transfer books of the Corporation kept at an office of the
Corporation or by transfer agents designated to transfer shares of the stock of
the Corporation. Except where a certificate is issued in accordance with Section
5.4 of Article V of these Bylaws, an outstanding certificate for the number of
shares involved shall be surrendered for cancellation before a new certificate
is issued therefor.

              Section 5.3. Record Date. The Board of Directors may fix a record
date, which shall not be more than sixty (60) nor fewer than ten (10) days
before the date of any meeting of stockholders, nor more than sixty (60) days
prior to the time for the other action hereinafter described, as of which there
shall be determined the stockholders who are entitled: to notice of or to vote
at any meeting of stockholders or any adjournment thereof; to receive payment of
any dividend or other distribution or allotment of any rights; or to exercise
any rights with respect to any change, conversion or exchange of stock or with
respect to any other lawful action.

              Section 5.4. Lost, Stolen or Destroyed Certificates. In the event
of the loss, theft or destruction of any certificate of stock, another may be
issued in its place pursuant to such regulations as the Board of Directors may
establish concerning proof of such loss,

                                       12
<PAGE>   16

theft or destruction and concerning the giving of a satisfactory bond or bonds
of indemnity.

              Section 5.5. Regulations. The issue, transfer, conversion and
registration of certificates of stock shall be governed by such other
regulations as the Board of Directors may establish.

                                   ARTICLE VI

                                     NOTICES

              Section 6.1. Notices. Except as otherwise specifically provided
herein or required by law, all notices required to be given to any stockholder,
director, officer, employee or agent shall be in writing and may in every
instance be effectively given by hand delivery to the recipient thereof, by
depositing such notice in the mails, postage paid, or by sending such notice by
prepaid telegram, mailgram, telecopy or commercial courier service. Any such
notice shall be addressed to such stockholder, director, officer, employee or
agent at his or her last known address as the same appears on the books of the
Corporation. The time when such notice shall be deemed to be given shall be the
time such notice is received by such stockholder, director, officer, employee or
agent, or by any person accepting such notice on behalf of such person, if hand
delivered, or the time such notice is dispatched, if delivered through the mails
or by telegram or mailgram. Notice of the place, date, and time of special
meetings of the Board of Directors shall be given each director by whom it is
not waived by mailing written notice not fewer than five (5) days before the
meeting or by telegraphing or personally delivering the same not fewer than
twenty-four (24) hours before the meeting. Unless otherwise indicated in the
notice thereof, any and all business may be transacted at a special meeting.

              Section 6.2. Waivers. A written waiver of any notice, signed by a
stockholder, director, officer, employee or agent, whether before or after the
time of the event for which notice is to be given, shall be deemed equivalent to
the notice required to be given to such stockholder, director, officer, employee
or agent. Neither the business nor the purpose of any meeting need be specified
in such a waiver.

                                   ARTICLE VII

                                  MISCELLANEOUS

              Section 7.1. Facsimile Signatures. In addition to the provisions
for use of facsimile signatures elsewhere specifically authorized in these
Bylaws, facsimile signatures of any officer or officers of the Corporation may
be used whenever and as authorized by the Board of Directors or a committee
thereof.

              Section 7.2. Corporate Seal. The Board of Directors may provide a
suitable seal, containing the name of the Corporation, which

                                       13
<PAGE>   17

seal shall be in the charge of the Secretary. If and when so directed by the
Board of Directors or a committee thereof, duplicates of the seal may be kept
and used by the Treasurer or by an Assistant Secretary or Assistant Treasurer.

              Section 7.3. Reliance Upon Books, Reports and Records. Each
director, each member of any committee designated by the Board of Directors, and
each officer of the Corporation shall, in the performance of his duties, be
fully protected in relying in good faith upon the books of account or other
records of the Corporation, including reports made to the Corporation by any of
its officers, by an independent certified public accountant, or by an appraiser
selected with reasonable care.

              Section 7.4. Fiscal Year. The fiscal year of the Corporation shall
be as fixed by the Board of Directors.

              Section 7.5. Time Periods. In applying any provision of these
Bylaws which require that an act be done or not done a specified number of days
prior to an event or that an act be done during a period of a specified number
of days prior to an event, calendar days shall be used, the day of the doing of
the act shall be excluded, and the day of the event shall be included.

                                  ARTICLE VIII

                    INDEMNIFICATION OF DIRECTORS AND OFFICERS

              Section 8.1. Right to Indemnification. Each person who was or is
made a party or is threatened to be made a party to or is involved in any
action, suit or proceeding, whether civil, criminal, administrative or
investigative ("proceeding"), by reason of the fact that he or she or a person
of whom he or she is the legal representative, is or was a director, officer or
employee of the Corporation or is or was serving at the request of the
Corporation as a director, officer or employee of another corporation, or of a
partnership, joint venture, trust or other enterprise, including service with
respect to employee benefit plans, whether the basis of such proceeding is
alleged action in an official capacity as a director, officer or employee or in
any other capacity while serving as a director, officer or employee, shall be
indemnified and held harmless by the Corporation to the fullest extent
authorized by Delaware Law, as the same exists or may hereafter be amended (but,
in the case of any such amendment, only to the extent that such amendment
permits the Corporation to provide broader indemnification rights than said Law
permitted the Corporation to provide prior to such amendment) against all
expenses, liability and loss (including attorneys' fees, judgments, fines, ERISA
excise taxes or penalties, amounts paid or to be paid in settlement and amounts
expended in seeking indemnification granted to such person under applicable law,
this bylaw or any agreement with the Corporation) reasonably incurred or
suffered by such person in connection therewith and such indemnification shall
continue as to a person who has ceased to be a director, officer or

                                       14
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employee and shall inure to the benefit of his or her heirs, executors and
administrators; provided, however, that, except as provided in Section 8.2 of
this Article VIII, the Corporation shall indemnify any such person seeking
indemnity in connection with an action, suit or proceeding (or part thereof)
initiated by such person only if (a) such indemnification is expressly required
to be made by law, (b) the action, suit or proceeding (or part thereof) was
authorized by the Board of Directors of the Corporation, (c) such
indemnification is provided by the Corporation, in its sole discretion, pursuant
to the powers vested in the Corporation under the Delaware General Corporation
Law, or (d) the action, suit or proceeding (or part thereof) is brought to
establish or enforce a right to indemnification under an indemnity agreement or
any other statute or law or otherwise as required under Section 145 of the
Delaware General Corporation Law. Such right shall be a contract right and shall
include the right to be paid by the Corporation expenses incurred in defending
any such proceeding in advance of its final disposition; provided, however,
that, unless the Delaware General Corporation Law then so prohibits, the payment
of such expenses incurred by a director or officer of the Corporation in his or
her capacity as a director or officer (and not in any other capacity in which
service was or is tendered by such person while a director or officer,
including, without limitation, service to an employee benefit plan) in advance
of the final disposition of such proceeding, shall be made only upon delivery to
the Corporation of an undertaking, by or on behalf of such director or officer,
to repay all amounts so advanced if it should be determined ultimately that such
director or officer is not entitled to be indemnified under this Section or
otherwise.

              Section 8.2. Right of Claimant to Bring Suit. If a claim under
Section 8.1 of this Article VIII is not paid in full by the Corporation within
ninety (90) days after a written claim has been received by the Corporation, the
claimant may at any time thereafter bring suit against the Corporation to
recover the unpaid amount of the claim and, if such suit is not frivolous or
brought in bad faith, the claimant shall be entitled to be paid also the expense
of prosecuting such claim. The burden of proving such claim shall be on the
claimant. It shall be a defense to any such action (other than an action brought
to enforce a claim for expenses incurred in defending any proceeding in advance
of its final disposition where the required undertaking, if any, has been
tendered to this Corporation) that the claimant has not met the standards of
conduct which make it permissible under the Delaware General Corporation Law for
the Corporation to indemnify the claimant for the amount claimed. Neither the
failure of the Corporation (including its Board of Directors, independent legal
counsel, or its stockholders) to have made a determination prior to the
commencement of such action that indemnification of the claimant is proper in
the circumstances because he or she has met the applicable standard of conduct
set forth in the Delaware General Corporation Law, nor an actual determination
by the Corporation (including its Board of Directors, independent legal counsel,
or its stockholders) that the claimant has not met such applicable standard of
conduct, shall be a defense to the action or

                                       15
<PAGE>   19

create a presumption that claimant has not met the applicable standard of
conduct.

              Section 8.3. Non-Exclusivity of Rights. The rights conferred on
any person in Sections 8.1 and 8.2 of this Article VIII shall not be exclusive
of any other right which such persons may have or hereafter acquire under any
statute, provision of the Certificate of Incorporation, bylaw, agreement, vote
of stockholders or disinterested directors or otherwise.

              Section 8.4. Indemnification Contracts. The Board of Directors is
authorized to enter into a contract with any director, officer, employee or
agent of the Corporation, or any person serving at the request of the
Corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, including employee
benefit plans, providing for indemnification rights equivalent to or, if the
Board of Directors so determines, greater than, those provided for in this
Article VIII.

              Section 8.5. Insurance. The Corporation shall maintain insurance
to the extent reasonably available, at its expense, to protect itself and any
such director, officer, employee or agent of the Corporation or another
corporation, partnership, joint venture, trust or other enterprise against any
such expense, liability or loss, whether or not the Corporation would have the
power to indemnify such person against such expense, liability or loss under the
Delaware General Corporation Law.

              Section 8.6. Effect of Amendment. Any amendment, repeal or
modification of any provision of this Article VIII by the stockholders and the
directors of the Corporation shall not adversely affect any right or protection
of a director or officer of the Corporation existing at the time of such
amendment, repeal or modification.

                                   ARTICLE IX

                                   AMENDMENTS

              Section 9.1. Amendment of Bylaws. Subject to Section C, subsection
6(b) of Article FOURTH of the Certificate of Incorporation and Article II,
Section 2.6 hereof, the Board of Directors is expressly empowered to adopt,
amend or repeal Bylaws of the Corporation. Subject to Section C, subsection 6(b)
of Article FOURTH of the Certificate of Incorporation and Article II, Section
2.6 hereof, any adoption, amendment or repeal of Bylaws of the Corporation by
the Board of Directors shall require the approval of a majority of the total
number of authorized directors (whether or not there exist any vacancies in
previously authorized directorships at the time any resolution providing for
adoption, amendment or repeal is presented to the Board). The stockholders shall
also have power to adopt, amend or repeal the Bylaws of the Corporation. Any
adoption, amendment or repeal of Bylaws of the Corporation by the stockholders
shall require,

                                       16
<PAGE>   20

in addition to any vote of the holders of any class or series of stock of the
Corporation required by law or by this Certificate of Incorporation, the
affirmative vote of the holders of at least sixty-six and two-thirds percent
(66-2/3%) of the voting power of all of the then outstanding shares of the
capital stock of the Corporation entitled to vote generally in the election of
directors, voting together as a single class.

                                       17
<PAGE>   21

       Secretary's Certificate of Adoption of Amended and Restated Bylaws

              I hereby certify that I am the duly elected and acting Secretary
of General Magic, Inc., a Delaware corporation (the "Corporation"), and that the
foregoing Amended and Restated Bylaws, comprising seventeen (17) pages,
constitute the Amended and Restated Bylaws of the Corporation as duly adopted on
July 20, 2001, by the Board of Directors of the Corporation.

              IN WITNESS WHEREOF, I have hereunto subscribed my name on August
3, 2001.

                                        /s/ Mary E. Doyle
                                        ----------------------------------------
                                        Mary E. Doyle, Secretary

                                       18

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