Document:

Prepared by MERRILL CORPORATION www.edgaradvantage.com

   EXHIBIT 10.19  

	[*] =	 	information redacted pursuant to a confidential treatment request. Such omitted information has been filed separately with the Securities and Exchange Commission.

FIRST AMENDMENT

TO

SUPPLY AGREEMENT  

    This First Amendment to Supply Agreement (this "Amendment") is entered into and is
effective as of the 1st day of December, 2000 ("Amendment Date"), by and between Palm Inc., a Delaware corporation, with offices at 5470 Great America Parkway, Santa Clara, California 95052,
("Buyer"), and Manufacturers' Services Salt Lake City Operations, Inc., a Delaware corporation, with offices at 5742 West Harold Gatty Drive,
Salt Lake City, Utah, 84116 ("Seller"). 

RECITALS:  

    WHEREAS, Buyer and Seller have previously entered into that certain Supply Agreement dated and effective November 27, 1999 (the
"Original Agreement"); and 

    WHEREAS, Buyer and Seller are also parties to a Letter of Understanding dated July 6, 2000 (the
"LOU"); and 

    WHEREAS, the parties desire to modify the terms of the Original Agreement as set forth herein; and 

    NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
hereby agree as follows: 

1.  Confirmation and Acknowledgment. The Agreement is ratified and confirmed in accordance with its terms. Buyer represents and warrants
that Buyer succeeded to all or substantially all of the business and assets of Palm Computing Inc., a California corporation ("Palm Computing") on or prior to February 11, 2000. Seller
acknowledges that the Agreement was assigned effective as of February 11, 2000, by Palm Computing to Buyer, pursuant to Section 29 of the Agreement. 

2.  Definitions. Except as otherwise set forth herein, the capitalized terms used herein shall have the meaning set forth in the Original
Agreement. The following terms shall have the meaning set forth herein: 

    (a) The
term "Agreement" as used in this Amendment #1 and in the Original Agreement shall mean the Original Agreement as amended hereby. 

3.  Payment Terms. Notwithstanding anything to the contrary in Section 21 (or otherwise) in the Original Agreement, the parties
hereby agree to the following: 

    (a) From
January 22, 2001 until the date that Palm implements wire transfer capabilities, which is presently expected to be on or about March 6, 2001,
Buyer shall make payment to Seller by check, [*] from the date of receipt of invoice or the date of delivery of Product, whichever is later. From and after the date that Palm
implements wire transfer capabilities, Buyer shall make payment to Seller by wire transfer, [*] from the receipt of invoice or the date of delivery of Product, whichever is
later. Buyer agrees that the date of delivery of Product shall be deemed to be the date of actual delivery or, if earlier, after a reasonable transit time for deliveries of Product has elapsed, and
that such reasonable transit time shall not exceed three (3) business days unless it can be shown that any transit time in excess of three (3) business days is due to causes outside of
Buyer's reasonable control. All payments shall be made without any discount whatsoever. Seller shall submit the invoices to the address indicated by Buyer. 

1

 

    (b) Subject to (i) Seller's right to withhold payments (in an amount reasonably related to the amount under dispute) in the case of good faith disputes with
component suppliers and (ii) Seller's right to a five (5) business day period to cure any failure to make a payment after receipt of notice thereof, which notice specifies in reasonable
detail information reasonably necessary for Seller to verify such failure, from a component supplier or from Buyer, Seller shall make payment to all component suppliers who supply components required
to assemble Buyer's product no later than the terms agreed upon between Seller or Buyer, as the case may be, on the one hand, and each component supplier, on the other hand;  provided, however, Buyer
shall not agree to payment terms requiring Seller to pay any component supplier that are less favorable to Seller than net
thirty (30) days from the date of receipt of the component supplier's invoice or the date of receipt of the components (including appropriate reasonable transit times based on location of
supplier and method of transit for determining deemed date of receipt), whichever is later. 

4.  Price Terms. Notwithstanding anything to the contrary in Exhibit A (or otherwise) in the Original Agreement, the parties
hereby agree to the modified Price terms set forth in Exhibit A-1 hereto. Such modified price terms shall be effective with respect to units received by Buyer on or after
December 1, 2000 and shall remain in effect until November 27, 2001. 

5.  Purchase Commitment Terms. Notwithstanding anything to the contrary in Section 3, 4 or 10 (or otherwise) in the Original
Agreement, and subject to Section 4J regarding long lead-time Materials and the other terms and conditions of the Original Agreement, the parties hereby agree to the following: 

    (a) Buyer
shall have no further minimum purchase commitments whatsoever under the Agreement and Seller shall have no further obligation whatsoever to meet, or to make
production capacity available to meet, Buyer's production requirements under the Agreement; provided that, subject to Section 6 below, in the event that Buyer provides to Seller a forecast or a
Purchase Order containing a commitment by the Buyer to purchase a certain amount of Product within the immediately following ninety (90) Day period and requests that Seller confirm that it can
make production capacity available to meet such commitment amount, then Seller shall promptly respond to Buyer's request for confirmation and, subject to prior capacity commitments by Seller to third
parties that are consistent with reserving capacity for Buyer equal to at least 115% of the Seller's capacity utilization on behalf of Buyer during the prior 90 days, make the requested
capacity available to meet Buyer's commitment amount. 

6.  Termination for Convenience. The parties hereby agree to the following: 

    (a) The
first sentence of Section 26 of the Agreement is hereby deleted and replaced in its entirety with: 

"Either
Party may terminate this Agreement or any Purchase Order without cause by giving at least [*] days written notice to the other Party. Subject to the remainder of this
Section 26, the immediately preceding sentence shall not affect either Party's obligations under this Agreement prior to the effective date of termination pursuant to the immediately preceding
sentence." 

7.  Confirmation of Agreement Terms. Except as expressly set forth herein, the terms and conditions of the Original Agreement shall
remain in full force and effect. In the event of any conflict between the terms and conditions of this Amendment #1 and the Original Agreement, the terms and conditions set forth in this Amendment #1
shall control with respect to the subject matter hereof. 

8.  Counterparts. This Amendment #1 may be executed in counterparts, each of which shall constitute an original and all of which, when
taken together, shall constitute one instrument. 

2

 

    IN WITNESS WHEREOF, the parties hereto have executed this Amendment #1 on the date first set forth above. 

	PALM, INC.	 	MANUFACTURERS' SERVICES SALT LAKE CITY OPERATIONS, INC.
	

By:	
 	

/s/ DINESH RAGHAVAN   
	
 	

By:	
 	

/s/ ROBERT E. DONAHUE   

	

Name:	
 	

Dinesh Raghavan
	
 	

Name:	
 	

Robert E. Donahue

	

Title:	
 	

VP—Global Supply Chain Operations
	
 	

Title:	
 	

President

Manufacturer's
Services Limited does hereby unconditionally and irrevocably agree to guaranty the performance of, and all obligations, duties, and liabilities of Seller under the Original Agreement as
amended by this Amendment #1 in accordance with the terms of guaranty set forth in the Original Agreement. 

	MANUFACTURERS' SERVICES LIMITED	 	 	 	 
	

By:	
 	

/s/ ROBERT E. DONAHUE   
	
 	

 	
 	

 
	

Name:	
 	

Robert E. Donahue
	
 	

 	
 	

 
	

Title:	
 	

President
	
 	

 	
 	

 

3

 
EXHIBIT A-1

PRICE CHANGES  

	1.	 	Volume [*]:	 	Buyer hereby [*] set forth in Exhibit A of the Original Agreement applicable to units received by Buyer on or after [*].
	

2.	
 	

Quarterly [*]:	
 	

Buyer hereby [*] set forth in Exhibit A of the Original Agreement applicable to units received by Buyer on or after [*].
	

3.	
 	

[*]:	
 	

Buyer hereby [*] from all [*] for the [*] terms applicable to units received by Buyer between [*] and [*] set forth in the LOU.
	

4.	
 	

Price Increase on Palm IIIC:	
 	

Buyer hereby agrees to a price increase on Palm IIIC Product units in the amount of [*] ($[*]) per unit.

The
above price actions result in the following revised pricing table: 

	 
	 	 
	 	Monthly Build Volumes

	Product Family
	 	Description
	 	[*]
	 	[*]
	 	[*]
	 	[*]

	Palm V	 	Per Unit Transformation Price—Viewer Bulk Packaged	 	$	[*]	 	$	[*]	 	$	[*]	 	$	[*]
	Palm V	 	Per Unit Transformation Price—Commercial Packaged (Packed Out)	 	$	[*]	 	$	[*]	 	$	[*]	 	$	[*]
	

	Tornado	 	Per Unit Transformation Price—Viewer Bulk Packaged	 	$	[*]	 	$	[*]	 	$	[*]	 	$	[*]
	

	Tornado	 	Per Unit Transformation Price—Commercial Packaged (Packed Out)	 	$	[*]	 	$	[*]	 	$	[*]	 	$	[*]
	Emerald City	 	Per Unit Transformation Price—Viewer Bulk Packaged	 	$	[*]	 	$	[*]	 	$	[*]	 	$	[*]
	Emerald City	 	Per Unit Transformation Price—Commercial Packaged (Packed Out)	 	$	[*]	 	$	[*]	 	$	[*]	 	$	[*]
	Palm IIIc	 	Per Unit Transformation Price—Viewer Bulk Packaged	 	$	[*]	 	$	[*]	 	$	[*]	 	$	[*]
	Palm IIIc	 	Per Unit Transformation Price—Commercial Packaged (Packed Out)	 	$	[*]	 	$	[*]	 	$	[*]	 	$	[*]

From
the initiation of production in MSL for Emerald City until June 30th, 2001 the pricing will be increased $[*] per unit and then will revert to the
pricing table above after June 30th, 2001 

The
components of the incremental cost associated with the commercial packaged (Packed Out) $[*] include labor, overhead and plant contribution margin and any other
miscellaneous costs associated with the packout of products. 

The
price changes set forth in this Exhibit A-1 shall be effective with respect to units received by Buyer on or after December 1, 2000 and shall continue in effect for all
units received by Buyer on or before November 27, 2001. In the event of any significant changes in the Bill of Materials or manufacturing process, the parties agree to revisit the foregoing
pricing terms; [*] for any price change [*]. 

4<PAGE>

Exhibit 4.4: Certificate of Designation of Series B Preferred Stock

                           CERTIFICATE OF DESIGNATION

                                       OF

                       VOICE MOBILITY INTERNATIONAL, INC.

             Providing for the Powers, Designations, Preferences and
           Relative, Participating, Optional and Other Special Rights,
           and the Qualifications, Limitations or Restrictions Thereof
               of Series B Non-Voting Convertible Preferred Stock

         The undersigned, Tom O'Flaherty and James Hewett, hereby certify that:

         ONE: They are the duly elected and acting President and Treasurer,
respectively, of Voice Mobility International, Inc. (the "Corporation").

         TWO: The Board of Directors of the Corporation, pursuant to the
provisions of its Articles of Incorporation, duly adopted the following
resolutions:

         RESOLVED, that there is hereby established a series of the
         Corporation's preferred stock, par value $.001 per share, to be
         designated "Series B Non-Voting Convertible Preferred Stock" and to the
         extent that the powers, designation, preferences and relative,
         participating, optional and other special rights, and the
         qualifications, limitations and restrictions thereof, of such series,
         are not fixed by the amended Articles of Incorporation of the
         Corporation, they are hereby fixed as set forth in Exhibit 1 below.

         THREE. The number of Series B Non-Voting Convertible Preferred Stock
authorized shall be 666,667 shares and there are no shares of Series B
Non-Voting Convertible Preferred Stock currently outstanding.

         IN WITNESS WHEREOF, the undersigned have executed this certificate as
of the 27th day of December, 2000.

                                             ----------------------------------
                                             Tom O'Flaherty, President

                                             ----------------------------------
                                             James Hewett, Assistant Secretary

                                       65
<PAGE>

                                    EXHIBIT 1

                      Powers, Designations, Preferences and
           Relative, Participating, Optional and Other Special Rights,
           and the Qualifications, Limitations or Restrictions Thereof
               of Series B Non-Voting Convertible Preferred Stock

     1.   DESIGNATION AND AMOUNT. 666,667 shares of preferred stock, $.001 par
value per share, is hereby constituted as a series of the preferred stock of the
Corporation which shall be designated "Series B Non-Voting Convertible Preferred
Stock" (the "Series B Preferred"), the preferences and relative, optional and
other special rights of which and the qualifications, limitations or
restrictions of which are set forth herein.

     2.   DIVIDENDS. The holders of the Series B Preferred shall be entitled to
receive dividends out of funds legally available therefor, prior and in
preference to any declaration or payment of any dividend (payable other than in
Common Stock or other securities and rights convertible into or entitling the
holder thereof to receive, directly or indirectly, additional shares of Common
Stock of the Corporation) on the Common Stock of the Corporation, at the rate of
$13.00 per share of Series B Preferred per annum, due payable with respect to
each share of Series B Preferred, on the last day of each month following the
issuance of such share of the Series B Preferred. Such dividends shall not be
cumulative. Such dividends shall accrue to holders of the Series B Preferred
until paid by the Corporation. No dividends or other distributions shall be made
with respect to the Common Stock, other than dividends payable solely in Common
Stock, unless at the same time an equivalent dividend with respect to the Series
B Preferred has been paid or set apart for payment.

     3.   LIQUIDATION, DISSOLUTION OR WINDING UP. In the event of any
liquidation, dissolution or winding up of the Corporation, the holders of the
Series B Preferred shall not be entitled to any portion of any distribution.

     4.   CONVERSION. The holders of the Series B Preferred shall have
conversion rights as follows:

          (a)  RIGHT TO CONVERT. Subject to Section 4(b) below, each share of
Series B Preferred shall be convertible, at the option of the holder thereof, at
any time after the date of issuance of such share, at the office of the
Corporation or any transfer agent for the Series B Preferred, into such number
of fully paid and nonassessable shares of Common Stock as is determined by
dividing $3.00 by the Series B Conversion Price, determined as hereinafter
provided, in effect at the time of conversion (the "Series B Conversion Rate").
The "Series B Conversion Price" shall initially be $1.50 per share of Common
Stock and shall be subject to further adjustment as hereinafter provided.

          (b)  AUTOMATIC CONVERSION. Each share of Series B Preferred shall
automatically be converted into shares of Common Stock at the then effective
Series B Conversion Rate upon the earlier of either (i) June 30, 2001, or (ii)
the written consent of the holders of a majority of the then outstanding shares
of Series B Preferred, voting together as a single class.

          (c)  MECHANICS OF CONVERSION. No fractional shares of Common Stock
shall be issued upon conversion of the Series B Preferred; the number of shares
of Common Stock issuable upon conversion of the Series B Preferred shall be
rounded down to the nearest whole number of shares of Common Stock. Before any
holder of the Series B Preferred shall be entitled to convert the same into full
shares of Common Stock and to receive certificates therefor, such holder shall
surrender the certificate or certificates therefor, duly endorsed, at the office
of the Corporation or of any transfer agent for the Series B Preferred, and
shall give written notice to the Corporation at such office that such holder
elects to convert the same; PROVIDED, HOWEVER, that in the event of a conversion
pursuant to Section 4(b), the outstanding shares of the Series B Preferred shall
be converted automatically without any further action by the holders of such
shares and whether or not the certificates representing such shares are
surrendered to the Corporation or its transfer agent; and PROVIDED, FURTHER,
that the Corporation shall not be obligated to issue certificates evidencing the
shares of Common Stock issuable upon such conversion unless the certificates
evidencing such shares of the Series B Preferred are either delivered to the
Corporation or its transfer agent as provided above,

                                       66
<PAGE>

or the holder notifies the Corporation or its transfer agent that such
certificates have been lost, stolen or destroyed and executes an agreement
satisfactory to the Corporation to indemnify it for losses incurred as a result
of the loss of such certificates. The Corporation shall, as soon as practicable
after such delivery, or such agreement and indemnification in the case of a lost
certificate, issue and deliver at such office to such holder of the Series B
Preferred, a certificate or certificates for the number of shares of Common
Stock to which such holder shall be entitled as aforesaid. Such conversion shall
be deemed to have been made immediately prior to the close of business on the
date of such surrender of the shares of the Series B Preferred to be converted,
or, in the case of automatic conversion, on the date of closing of the offering
or the effective date of such written consent, as the case may be, and the
person or persons entitled to receive the shares of Common Stock issuable upon
such conversion shall be treated for all purposes as the record holder or
holders of such shares of Common Stock on such date.

          (d)  ADJUSTMENTS TO CONVERSION PRICE.

               (i)  ADJUSTMENTS FOR SUBDIVISIONS OR COMBINATIONS OF OR STOCK
DIVIDENDS ON COMMON STOCK. In the event the outstanding shares of Common Stock
shall be subdivided (by stock split or otherwise), into a greater number of
shares of Common Stock, or the Corporation at any time or from time to time
after the original issue date of the Series B shall declare or pay any dividend
on the Common Stock payable in Common Stock, the Series B Conversion Rate then
in effect shall, concurrently with the effectiveness of such subdivision or
stock dividend, be proportionately increased based on the ratio of (A) the
number of shares of Common Stock outstanding immediately after such subdivision
or stock dividend to (B) the number of shares of Common Stock outstanding
immediately prior to such subdivision or stock dividend. In the event the
outstanding shares of Common Stock shall be combined or consolidated, by
reclassification or otherwise, into a lesser number of shares of Common Stock,
the Series B Conversion Rate then in effect shall, concurrently with the
effectiveness of such combination or consolidation, be proportionately decreased
on the same basis.

          (e)  CERTIFICATE AS TO ADJUSTMENTS. Upon the occurrence of each
adjustment or readjustment of the Conversion Price or Conversion Rate of the
Series B Preferred pursuant to this Section 4, the Corporation at its expense
shall promptly compute such adjustment or readjustment in accordance with the
terms hereof and furnish to each holder of Series B Preferred a certificate
setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The Corporation shall, upon
the written request at any time of any holder of Series B Preferred, furnish or
cause to be furnished to such holder a like certificate setting forth (i) such
adjustments and readjustments, (ii) the respective Conversion Price and the
Conversion Rate at the time in effect and (iii) the number of shares of Common
Stock and the amount, if any, of other property which at the time would be
received upon the conversion of the Series B Preferred.

          (f)  RESERVATION OF STOCK ISSUABLE UPON CONVERSION. The Corporation
shall at all times reserve and keep available out of its authorized but unissued
shares of Common Stock solely for the purpose of effecting the conversion of the
shares of the Series B Preferred such number of its shares of Common Stock as
shall from time to time be sufficient to effect the conversion of all
outstanding shares of the Series B Preferred; and if at any time the number of
authorized but unissued shares of Common Stock shall not be sufficient to effect
the conversion of all then outstanding shares of the Series B Preferred, in
addition to such other remedies as shall be available to the holder of such
Series B Preferred, the Corporation will take such corporate action as may, in
the opinion of counsel, be necessary to increase its authorized but unissued
shares of Common Stock to such number of shares as shall be sufficient for such
purposes.

     4.   RIGHT OF REDEMPTION. Unless otherwise agreed by the holders of Series
B Preferred, the Corporation shall not have the right to call or redeem at any
time all or any shares of Series B Preferred.

     5.   VOTING RIGHTS. Except as otherwise provided herein or by applicable
law, holders of the Series B Preferred shall not be entitled to any voting
rights and powers, and shall not be entitled to vote with respect to any matters
upon which holders of Common Stock have the right to vote; provided however,
that so long as shares of Series B Preferred shall be outstanding, holders of
the Series B Preferred shall be entitled to notice of any shareholders' meeting
in accordance with the Bylaws of the Corporation.

                                       67
<PAGE>

     6.   REACQUIRED SHARES. If any shares of Series B Preferred should be
purchased, retracted or otherwise acquired by the Corporation in any manner
whatsoever, then such shares of Series B Preferred shall be retired and canceled
promptly after acquisition thereof. Such shares upon cancellation, and upon the
taking of any action required by applicable law, shall become authorized but
unissued preferred shares and may be reissued as part of a new series of
preferred stock to be created by resolution or resolutions of the Board of
Directors of the Corporation, subject to the conditions and restrictions on
issuance set forth herein.

DEAN HELLER                                                     FILED #C21497-97
Secretary of State
                                                                  JAN 09 2001
                                       CERTIFICATE OF
101 North Carson Street, Suite 3         CORRECTION           IN THE OFFICE OF
Carson City,.Nevada 89701-4786     (PURSUANT TO NRS 78.0295       DEAN HELLER
(775) 684 5708                           AND 80.007)          SECRETARY OF STATE

                                 Certificate of
                                   Correction
                          (Pursuant to NRS 78.0295 and
                                     80.007)
                             - Remit in Duplicate -

1.   The name of the corporation for which correction is being made:

     Voice Mobility International, Inc.

2.   Description of the original document for which correction is being made:

     Certificate of Designation of Series B Non-Voting Convertible Preferred
     Stock

3.   Filing date of the original document:  12/29/00

4.   Description of the incorrect statement and the REASON it is incorrect or
     the manner in which the execution or other formal authentication was
     defective:*

     The dividend rate in Section 2 of Exhibit 1 entitled "Dividends" reads
     $13.00 per share of Series B Preferred per annum". This is incorrect as a
     result of a typographical error.

5.   Correction of the incorrect statement or defective execution or
     authentication:

     The dividend rate in Section 2 of Exhibit 1 entitled "Dividends" should
     correctly read, "$0.195 per share of Series B Preferred per annum." Except
     as provided herein, no other corrections are necessary.

6.   Signature:

    J. Hewett                      Assistant Secretary         January 9, 2001
------------------------------     -------------------         ---------------
SIGNATURE OF CORPORATE OFFICER     TITLE OF OFFICER            DATE

                                       68
<PAGE>

* A REASON for the incorrect statement, execution or other authentication must
be provided.

-

IMPORTANT: Failure to include any of the above information and remit the proper
fees may cause this filing to be rejected.

                                       69

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