Document:

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                                                                    Exhibit 10.7

                                                               PALM CONFIDENTIAL

                           SOFTWARE LICENSE AGREEMENT

        This Software License Agreement is entered into by and between Palm
Computing, Inc. ("Palm"), a California corporation with a place of business at
5400 Bayfront Plaza, Santa Clara, CA 95052-8145, and OmniSky Corporation
("Licensee"), a Delaware corporation with a place of business at 299 California
Avenue, Palo Alto, CA 94306. The effective date of this Agreement shall be the
date last executed below ("Effective Date"), provided that this Agreement shall
not be effective in the absence of any and all required governmental approvals.

                                    RECITALS

        A. Palm or its suppliers are the owners of software and other technology
related to the Palm Computing platform and the Palm.net server technology
(defined below as the "Elaine Software").

        B. Licensee is a wireless internet service provider.

        C. Licensee desires to obtain a license to certain Palm software and
technology in order to develop and market wireless Internet access using
handheld devices and to distribute certain Palm software to users of Palm
handheld devices in connection with providing such Internet access. Palm is
willing to grant Licensee such a license upon the terms and conditions set forth
below.

                                    AGREEMENT

        NOW, THEREFORE, the parties agree as follows:

1       DEFINITIONS

        1.1 "Confidential Information" means that information of either party
("Disclosing Party") which is disclosed to the other party ("Receiving Party")
pursuant to this Agreement, in written form and marked "Confidential,"
"Proprietary" or similar designation, or if disclosed orally, the Disclosing
Party shall indicate that such information is confidential at the time of
disclosure and send a written summary of such information to the Receiving Party
within thirty (30) days of disclosure and mark such summary "Confidential,"
"Proprietary" or similar designation. Confidential Information shall include,
but not be limited to, trade secrets, know-how, inventions, techniques,
processes, algorithms, software programs, schematics, designs, contracts,
customer lists, financial information, product plans, sales and marketing plans
and business information. References to Palm as a Receiving Party or a
Disclosing Party shall also include all of Palm's present and future subsidiary
and parent companies, subject to the restrictions contained in this Agreement.

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        1.2 "Documentation" means the Elaine Documentation and all other
documentation for the Palm Software described in Exhibit A or otherwise
delivered to Licensee hereunder.

        1.3 "Elaine Documentation" means the operator manual for the Elaine
Software described in Exhibit A.

        1.4 "Elaine Software" shall mean the computer software programs
specified in Exhibit A (Palm Software), including all Updates provided by Palm
to Licensee pursuant to Section 6.2.

        1.5 "Licensee Client Software" means the client software developed by
Licensee which supports the client functionality of web clipping.

        1.6 "Licensee Services" means providing access to information,
transactions and e-services available or hosted on the Internet and corporate
intranets, including but not limited to web clipping services.

        1.7 "Licensee Software" means any software developed, acquired, or
licensed by Licensee, or for Licensee by a third party, which is used by
Licensee in connection with the Elaine Software or the Licensee Services, other
than Palm Software.

        1.8 "Palm OS" means the Palm client operating system software files and
build tools described in Exhibit A (Palm Software), including (a) all Updates
provided by Palm to Licensee pursuant to Section 6.1, (b) the Palm Device
Applications, (c) the Palm Device Applications SDK, and (d) the Palm OS Software
Development Kit.

        1.9 "Palm Device Applications" means the applications files described in
Exhibit A.

        1.10 "Palm Device Applications SDK" means Palm's commercially available
software development kit for applications for the Palm Computing platform as
described in Exhibit A.

        1.11 "Palm OS Software Development Kit" means Palm's commercially
available software development kit for the Palm OS as described in Exhibit A.

        1.12 "Palm Source Code" means the source code modules of the Palm OS
described on Exhibit A hereto and all other source code of the Palm Software
delivered to Licensee pursuant to Section 3 and Section 6.6.

        1.13 "Palm Software" means the Elaine Software and the Palm OS.

        1.14 "Update" means (a) a bug fix, workaround, or patch to correct any
reproducible error in the Palm Software, (b) a new release of the Elaine
Software, (c) a new release of the Web Clipping Software, or (d) a general
release of any of the Palm

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Software in each case as generally released and made available by Palm to
licensees of the Palm Software.

     1.15  "web clipping" means making Internet content available through use of
software having functionality similar to the modules referred to as "web
clipping source code files" on Exhibit A.

     1.16  "Web Clipping Software" means the web clipping application included
as part of the Palm OS and any separate Web Clipping Application delivered to
Licensee pursuant to Section 6.2.

2.   LICENSES

     2.1   Palm OS

        (a)   Subject to the terms and conditions of this Agreement Palm hereby
grants to Licensee a personal, irrevocable (except pursuant to Section 15.4),
limited, non-exclusive, non-transferable (except as set forth in Section 16.9)
fully-paid (subject to Section 4), worldwide license to use, reproduce and
distribute the Palm OS, as modified by Licensee pursuant to the terms hereof, in
object code form, solely for use with Palm products and, when technically
feasible, third party products utilizing the Palm OS.

        (b)   Subject to the terms and conditions of this Agreement, Palm hereby
grants to Licensee a personal, irrevocable (except pursuant to Section 15.4),
limited, non-exclusive, non-transferable (except as set forth in Section 16.9),
fully-paid (subject to Section 4) worldwide license to (i) modify, use and
reproduce the Palm Source Code for the sole purpose of development of Licensee
Client Software and (ii) compile the Palm Source Code into object code for
distribution pursuant to Section 2.1(a).

           (c)   Except as otherwise expressly set forth in this Section 2.1 and
Section 2.6, no rights to modify, distribute or sublicense the Palm OS are
granted.

        2.2   Elaine Software Documentation. Subject to the terms and conditions
of this Agreement, Palm hereby grants to Licensee a personal, perpetual,
irrevocable (except pursuant to Section 15.4), limited, non-exclusive,
non-transferable (except as provided in Section 16.9), fully-paid (subject to
Section 4) worldwide license (a) to use the Elaine Software, in object code form
only, for the sole purpose of providing the Licensee Services, (b) to make
sufficient copies of the Elaine Software, in object code only, as necessary for
such use, and (c) to use the Documentation and reproduce the Documentation for
Licensee's internal use.

     2.3   Compatibility.

           (a)   Compatibility test criteria and procedures ("Test Criteria")
for ensuring the interoperability of standard Palm tools and APIs with the
Licensee Client

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Software are attached as Exhibit B (Test Criteria) to this Agreement. Subject to
Section 2.3(c), prior to Licensee's distribution of any Licensee Client
Software, Licensee shall submit such Licensee Client Software at its expense to
any of Palm's approved independent compatibility testing labs ("Approved Testing
Lab") for compatibility testing in accordance with the Test Criteria. If the
Approved Testing Lab determines that the Licensee Client Software does not
successfully meet the Test Criteria, then such testing lab will provide Licensee
and Palm a detailed written statement of the reasons for such rejection
("Statement of Errors"). Upon receipt of the Statement of Errors, Licensee shall
use reasonable efforts to modify the Licensee Client Software to conform to the
Test Criteria. The parties acknowledge that the contents of the Test Criteria
may need to be changed from time to time. Palm shall use its reasonable
discretion in determining new Test Criteria for Palm tools and APIs and will
apply such new Test Criteria to Licensee, Palm's internal customers and to
Palm's other licensees of the Palm OS, if any.

               (b) Compatibility Certification Requirement. Subject to Section
2.3(c), Licensee agrees that it shall not release or distribute any version of
the Licensee Client Software which has not received compatibility certification
from an Approved Testing Lab in accordance with the Test Criteria. Each version
of the Licensee Client Software developed by Licensee shall be required to pass
the Test Criteria only once, regardless of Palm's subsequent modifications to
the Test Criteria. However, in order to obtain compatibility certification for
Licensee Client Software with new Test Criteria as described in Section 2.3(a),
Licensee may submit any Licensee Client Software for compatibility testing
against such new Test Criteria in accordance with Section 2.3(a). Licensee may
indicate compatibility certification for Licensee Client Software only with
respect to the version(s) of the Test Criteria which such Licensee Client
Software has passed.

               (c) Beta Period. Notwithstanding the foregoing, during the Beta
Period Licensee shall not be required to comply with the provisions of Section
2.3(a) or 2.3(b) and shall be entitled to release and distribute up to 5,000
copies of the Licensee Client Software during such period without obtaining
compatibility certification. For the purposes of this Section 2.3, "Beta Period"
means the period beginning as of the Effective Date and ending on the earlier of
March 15, 2000 or the date on which Licensee makes its services and Licensee
Client Software generally available in a non-beta format.

        2.4 Trademark License. Subject to Section 2.3 and the other terms and
conditions of this Agreement, Palm hereby grants to Licensee a personal,
limited, non-exclusive, non-transferable, fully-paid license to use, subject to
the guidelines set forth in Palm's Trademark Policy Guidelines attached hereto
as Exhibit C, the trademarks and stylistic marks as may be provided by Palm to
Licensee (collectively, the "Palm Trademarks") in connection with the marketing
and sale of Licensee Services. Licensee shall use such trademarks in conjunction
with the distribution, promotion, and marketing of any Licensee Services as
provided in Section 8.3, consistent with the guidelines set forth in Exhibit C.
Palm shall have the right to receive free samples of all advertising and
promotional materials and related Licensee documentation on which such
trademarks are used to ensure that Palm's quality standards are maintained. The
foregoing license shall be limited to use of the Palm Trademarks for the
purposes of Section 8.3. Nothing in this

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Agreement grants Licensee ownership or any rights in or to use the Palm
Trademarks, except in accordance with this license. The rights granted to
Licensee in this license will terminate upon any termination or expiration of
this Agreement. Upon such termination or expiration, Licensee will no longer
make any use of any Palm Trademarks. Palm will have the exclusive right to own,
use, hold, apply for registration for, and register the Palm Trademarks during
the term of, and after the expiration or termination of, this Agreement in any
country worldwide; Licensee will neither take nor authorize any activity
inconsistent with such exclusive right.

        2.5 Copies. Licensee shall not copy the Palm Software or the
Documentation except as permitted by this Agreement. Licensee shall maintain
accurate and up-to-date records of (a) the number and location of all copies of
the Elaine Software and inform Palm in writing of such location(s), and (b) the
number of copies of the Palm OS distributed by Licensee. All copies of the Palm
Software and Documentation will be subject to all terms and conditions of this
Agreement.

        2.6 No Right to Distribute, Sublicense or Use Contract Manufacturers.
Except as otherwise permitted herein, Licensee shall have no right to, and shall
not, distribute any copy or portion of the Palm Software or the Documentation,
or sublicense any of its rights under this Agreement, to OEMs, consultants,
contractors, or any other third parties. Except as otherwise permitted herein,
Licensee shall have no right to, and shall not, use third parties to
manufacture, develop, test or support the Palm Software without Palm's prior
written approval, which shall not be unreasonably withheld. Notwithstanding the
foregoing, Licensee shall be entitled to cause Aether Technologies, LLC
("Aether") to reproduce, modify, develop, test and support the Palm Software for
the benefit of OmniSky in accordance with the terms hereof and subject to all
restrictions contained herein which are applicable to Licensee and the Palm
Software, provided that Aether first enters into an agreement with Palm for the
protection of Palm's rights in the Palm Software. If Aether for any reason
ceases to perform such services for Licensee or Licensee or any of its approved
sublicensees desires to retain a different or additional party to perform such
services, then Licensee may propose to Palm one or more alternative contractors
to perform such services on behalf of Licensee and Palm will not unreasonably
withhold approval of any such substitute contractor, provided that such
contractor first enters into an agreement with Palm for the reasonable
protection of Palm's rights in the Palm Software.

        2.7 No Reverse Engineering. Except as provided in Section 2.1, Licensee
shall not reverse engineer, reverse compile or disassemble the Palm Software, or
otherwise attempt to derive the source code to the Palm Software.

        2.8 Inspection Rights. Palm shall have the right, upon reasonable
advance notice, to inspect Licensee's books, records and facilities with respect
to the reproduction of the Palm Software and the Documentation hereunder and the
provision of the Licensee Services in order to verify that such activities are
within the scope of this Agreement, that there are appropriate security
procedures to protect Palm's Confidential Information, and that Licensee is in
compliance with its other obligations under this Agreement.

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        2.9 No Other Licenses. Except as specifically set forth in this
Agreement, no other licenses are granted by Palm to Licensee.

3       DELIVERY

        Palm will deliver to Licensee, as soon as practicable, (a) a complete
and current set of the Elaine Software and the object code of the Palm OS, and
(b) the Palm Source Code listed on Exhibit A hereto; provided, however, that in
no event will Palm be required to deliver any such items to Licensee before
Licensee has obtained any and all necessary governmental approvals for this
Agreement. If Licensee desires to obtain access to Palm OS source code which is
not described in Exhibit A, then Licensee shall notify Palm and the parties
shall discuss in good faith whether Licensee requires such access to perform the
Licensee Services or to modify the Palm OS to integrate web clipping
functionality in or with Licensee Client Software. If the parties determine that
Licensee requires such access, Palm will provide the relevant source code to
Licensee. Palm will not unreasonably deny Licensee such access and any
additional source code provided hereunder shall be deemed "Palm Source Code" for
all purposes hereunder.

4       ROYALTIES, FEES AND REPORTS

        4.1 Maintenance and Support Fees. Licensee shall pay to Palm fees as
specified in Exhibit D (Maintenance and Support Fees) for maintenance, support,
and Updates made available by Palm to Licensee pursuant to Sections 6.1 and 7.
Such fees shall be due and payable by Licensee to Palm in advance for each
quarter during the term of this Agreement, regardless of whether Licensee
collects payments for the Licensee Client Software or related maintenance and
support from Licensee's customers.

        4.2 Certicom Royalty Pass-Through.

               (a) Licensee acknowledges that Palm has informed Licensee that
the Palm Software contains encryption software licensed to Palm by Certicom,
Corp. ("Certicom Software"). Licensee further acknowledges that the Certicom
Software is subject to export compliance restrictions imposed by the United
States and other governments, and that Palm owes certain royalties to Certicom
for the Palm Software. The parties agree that (i) Licensee shall reimburse to
Palm fifty cents ($0.50) for each copy of the Licensee Client Software made by
or on behalf of Licensee if such copy includes the Web-Clipping Software, and
(ii) one dollar ($1.00) for each copy of the Elaine Software made by or on
behalf of Licensee. Such reimbursement shall be due and payable to Palm
regardless of whether Licensee derives any revenue from such copies of the Palm
Software.

               (b) The provisions of Section 4.2(a) shall cease to apply to
copies of the Licensee Client Software and/or the Elaine Software if Licensee
enters into an agreement with Certicom Corp. for the payment of royalties for
the Licensee Client Software and/or the Elaine Software, respectively. Upon
entering into any such

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agreement, Licensee shall provide to Palm reasonable proof of the existence of
such agreement and the licenses granted by Palm to Licensee in this Agreement
with respect to the Certicom Software shall be of no further force or effect.

        4.3 Reports. Licensee shall keep adequate records to verify all reports
and payments to be made to Palm pursuant to this Agreement for a period of five
(5) years following the date of such reports and payments. Palm shall have the
right to select an independent certified public accountant mutually agreeable to
the parties to inspect no more frequently than semiannually the records of
Licensee on reasonable notice and during regular business hours to verify the
reports and payments required hereunder. If such inspection should disclose any
underreporting, Licensee shall pay Palm such amount within thirty (30) days of
the conclusion of such inspection. The entire cost of such inspection shall be
borne by Palm; provided, however, that if Licensee is determined by such
inspection to have underpaid royalties by five percent (5%) or more, then the
cost of such audit shall be borne by Licensee.

5       PAYMENT TERMS

        5.1 Payment. Payment of the amounts set forth in Section 4.2 shall
accrue upon the making of any copy of the relevant software. Payments shall be
payable in United States Dollars within thirty (30) days after the end of each
calendar quarter for all payments which accrue during such quarter. Each payment
shall be accompanied by a statement of all copies of the Licensee Client
Software containing Web-Clipping Software, and the Elaine Software made during
the relevant period signed by an authorized representative of Licensee. Payments
and statements shall be sent to Palm or its designee at the address set forth at
the beginning of this Agreement or such other address as Palm may designate in
writing.

        5.2 Taxes.

               (a) In addition to any other payments due under this Agreement,
Licensee agrees to pay, indemnify, and hold Palm harmless from any sales, use,
excise, import or export, value added or similar tax or duty, any other tax not
based on Palm's net income, and any governmental permit and license fees,
customs fees and similar fees levied upon delivery of the deliverables and/or
services hereunder which Palm may incur in respect of this Agreement.

               (b) If applicable law requires Licensee to withhold any income
taxes levied on payments to be made pursuant to this Agreement ("Withholding
Tax"), Licensee shall be entitled to deduct such Withholding Tax from the
payments due to Palm hereunder. Licensee shall promptly effect payment of the
Withholding Tax to the appropriate tax authorities and shall transmit to Palm
within ten (10) business days of such payment official tax receipts or other
evidence issued by the appropriate tax authorities sufficient to enable Palm to
support a claim for income tax credits in the United States. Licensee further
agrees to assist Palm, upon request, if Palm contests, by appropriate legal or
administrative proceedings, the validity or amount of the

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Withholding Tax. In the event Palm does not receive official tax receipts or
such other evidence within thirty (30) days of payment, Palm shall have the
right to invoice Licensee for such Withholding Tax.

6       UPDATE RESPONSIBILITIES

        6.1 Updates and Additions to Palm OS. Provided that Licensee has paid
Palm the maintenance and support fees due under Section 4.1, during the term of
this Agreement Palm shall deliver to Licensee: (a) all Updates to the Palm OS as
soon as reasonably possible after completion of such Updates, but not later than
thirty (30) business days after Palm's general releases thereof, and (b) all
updates to the Documentation (other than Elaine Documentation) as soon as
reasonably possible after completion of such updates. Upon delivery of such
Updates to Licensee, the licenses granted to Licensee pursuant to Section 2
above shall be deemed to include such Updates. Notwithstanding the foregoing but
subject to Section 6.2, Palm's obligation to provide Updates of the Palm OS to
Licensee shall terminate upon delivery to Licensee of the Web Clipping
Application and the last Palm OS Update required for use with the Web Clipping
Application.

        6.2 Updates and Additions to Web Clipping Software. Provided that
Licensee has paid Palm the maintenance and support fees due under Section 4.1,
during the term of this Agreement Palm shall deliver to Licensee any Web
Clipping Application and any Updates thereto as soon as reasonably possible
after completion, but not later than thirty (30) business days after Palm's
general releases thereof or Palm's release thereof to any other licensee. Upon
delivery of such Updates to Licensee, the licenses granted to Licensee pursuant
to Section 2 above shall be deemed to include such Updates. Any Web Clipping
Application delivered to Licensee hereunder shall be deemed part of the Palm OS
under this Agreement, and upon any such delivery the licenses granted to
Licensee pursuant to Section 2.1 above shall be deemed to include such Web
Clipping Application. For the purposes of this Agreement, "Web Clipping
Application" means a web clipping software application developed by Palm during
the term hereof that (i) is not embedded in the Palm OS, (ii) is not developed
on a custom or exclusive basis for any third party, and (iii) contains
functionality similar to the functionality of the Web Clipping Software included
in the Palm OS as of the Effective Date.

        6.3 Updates and Additions to Elaine Software. During the term of this
Agreement, Palm shall deliver to Licensee (a) all Updates to the Elaine Software
as soon as reasonably possible after completion of such Updates, but not later
than thirty (30) business days after Palm's release thereof to any other
licensee of the Elaine Software, provided that Palm shall not be required to
provide to Licensee any Update to the Elaine Software prepared for any such
licensee on a custom basis, and (b) all updates to the Elaine Documentation as
soon as reasonably possible after completion of such updates. Upon delivery of
such Updates to Licensee, the licenses granted to Licensee pursuant to Section 2
above shall be deemed to include such Updates.

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        6.4 Enhancements and Additional Components. Licensee acknowledges that
during the term of this Agreement, in addition to delivering to Licensee the Web
Clipping Application and the Updates referred to above, Palm expects to release
enhancements and additional components for the Palm Software for which Palm may
elect to require that licensees pay separate consideration and enter into
separate agreements or amendments in order to have any rights to such modules or
components. Notwithstanding the foregoing, nothing herein shall obligate Palm to
make such enhancements or additional components available to Licensee.

        6.5 Elaine Software Enhancement Requests. In the event that Licensee
requests in writing that Palm add new features or functionality to the Elaine
Software or the Palm OS requiring enhancements to the Elaine Software or Palm
OS, Palm will consider such request in good faith and will respond to Licensee
in writing within thirty (30) days of its receipt of such request (or within
such longer time period as may be reasonably agreed by the parties) with whether
Palm intends to implement such request and, if so, with a proposed schedule for
implementation and the cost to be charged to Licensee, which shall be the
standard rate charged by Palm for such services. In the event the parties agree
on the terms for the development of such enhancements ("Approved Enhancements"),
Palm will use its reasonable commercial efforts to implement such enhancements
within the proposed schedule, whereupon such Approved Enhancements will be
deemed additional Elaine Software or Palm OS, as applicable, for all purposes of
this Agreement. Upon delivery to Licensee, the licenses granted to Licensee
pursuant to Section 2 above shall be deemed to include such Approved
Enhancements. Licensee shall execute all assignments and other documents as may
be requested by Palm to evidence and perfect Palm's ownership of the Approved
Enhancements and the intellectual property rights therein.

        6.6 Future Palm Source Code. Simultaneously with its delivery of any
Updates of the Palm OS to Licensee (including any Web Clipping Software or
Updates thereto pursuant to Section 6.2), Palm will deliver to Licensee the
source code for such Update that corresponds to the equivalent functionality of
the Palm Source Code previously provided to Licensee hereunder, which shall be
deemed part of the Palm Source Code for all purposes hereunder. Simultaneously
with its delivery of any Web Clipping Application or Updates thereto to Licensee
pursuant to Section 6.2, Palm will deliver to Licensee the source code for the
Web Clipping Application or the Update, as appropriate, which shall be deemed
part of the Palm Source Code for all purposes hereunder.

7       SUPPORT

        Palm shall provide Licensee with the following maintenance and support
during the term of this Agreement in accordance with the Palm Support terms set
forth in Exhibit E (Palm Support Services):

        7.1 Development Support. Palm will provide Licensee with a reasonable
level of support by telephone, e-mail, fax or, if requested by Licensee, in
person at Palm's

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Santa Clara, California site, during Palm's normal business hours (8:00 a.m. -
5:00 p.m. California time, excluding holidays) in connection with Licensee's use
and permitted distribution and modification of the Palm Software, including the
use of reasonable commercial efforts: (i) to answer Licensee's questions
regarding the proper utilization and optimization of the Palm Software; and (ii)
to provide solutions, workarounds and/or patches to correct any reproducible
error in the Palm Software. Licensee shall designate two qualified individuals
to act as primary technical liaisons for communications with Palm's technical
support staff. Palm shall designate two qualified individuals to act as primary
and secondary technical liaisons for communications with Licensee's technical
support staff.

        7.2 Customer Support Training. During the term of this Agreement, Palm
shall, at its expense, provide Licensee with one (1) course per version of the
Palm Software of basic and advanced training as it relates to customer support
for up to six (6) Licensee employees or outsourced customer care representatives
engaged in the technical support of the Palm Software and/or the Licensee Client
Software. Palm shall further provide to Licensee, at Palm's expense, similar
training for modifications or other revisions to the Palm Software, as it
relates to customer support. Training will be conducted at Palm's facilities in
Santa Clara, California or another mutually agreeable facility. Each training
course shall commence on a mutually agreed upon date. Such training shall cover
in detail, the installation, configuration, operation, trouble-shooting,
adjustment, test and maintenance of the Palm Software, as it relates to customer
support. Palm shall provide copies of the student training guides, and all other
necessary materials to each trainee and to Licensee. All other training
requested by Licensee and provided by Palm shall be billed at Palm's standard
rates.

        7.3 Customer Support. Licensee shall be solely responsible for First
Level Support and Second Level Support of the Palm Software. The parties agree
to work together to develop and facilitate the call handling processes to
provide seamless customer support and technical service to resellers and end
users of the Palm Software. In addition, Palm will provide Licensee with Third
Level Support for the Palm Software during the term of this Agreement. The
definitions of First, Second and Third Level Support shall be as set forth in
Section 7.4 below. During the term of this Agreement, Palm shall permit Licensee
to create hyperlinks to the Palm Web site and to display certain Palm end user
materials on Licensee's Web site for customer support purposes, subject to
Palm's prior approval of each proposed use. During the term of this Agreement,
Licensee shall permit Palm to create hyperlinks to the Licensee Web site and to
display certain Licensee end user materials on Palm's Web site for customer
support purposes, subject to Licensee's prior approval of each proposed use.

        7.4 Technical Support.

               (a) Technical Support Levels. For the purposes of Section 7.3
above, "Level" means a certain class of service provided for the Palm Software.
Definitions are as follows:

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                      (i) "First Level Support" means first call support on all
customer calls: technical support staff answers technical inquiries regarding
Palm Software, performs configuration support, if applicable, and provides broad
troubleshooting expertise.

                      (ii) "Second Level Support" means specialist level
technical support: technical support/escalation staff performs problem isolation
and replication, and implements a solution for a problem that is not the result
of a Palm Software program error. In the case of a Palm Software program error,
the technical staff is able to identify the source of the error, create a
reproducible test case, and document the details of the error for escalation to
Palm.

                      (iii) "Third Level Support" means backup technical support
to two representatives of Licensee's Second Level Support team (the "Authorized
Callers"). Palm will identify to Licensee its technical support personnel for
the Palm Software (the "Designated Support Personnel"). The Authorized Callers
and Designated Support Personnel will be the primary contacts between Palm's and
Licensee's technical support and/or escalation centers. Licensee will provide a
list of Authorized Callers including names, addresses, phone numbers, and
Internet e-mail address. Palm will provide a similar list of Designated Support
Personnel. These lists will be reviewed quarterly and updated as required.

               (b) Support Timing. Palm shall make Third Level Support available
via telephone, FAX or E-Mail solely to Licensee's Authorized Callers during
Palm's normal business hours (8:00 a.m. - 5:00 p.m. California time, excluding
holidays). Palm shall use reasonable commercial efforts to answer support
questions within the timeframes specified in Exhibit E (Palm Support Services).
So long as Palm is using reasonable commercial efforts to answer such questions,
Palm's inability to resolve or answer any such question shall not be deemed a
material breach of the Agreement.

               (c) Direct Customer Support. Palm will not be obligated to
provide direct support of any kind to Licensee's customers or end users pursuant
to this Agreement. Licensee will provide sufficient information and/or training
regarding the Licensee Client Software to Palm's Designated Support Personnel to
enable Palm to properly assist Licensee in resolving problems.

        7.5 Additional Support. Except as provided in Sections 6 and 7, (i) Palm
shall not be obligated to provide any maintenance, support or other services
with respect to the Palm Software; and (ii) any other maintenance, support or
other services which may be provided by Palm with respect to the Palm Software
shall only be provided to Licensee upon mutually agreeable terms, including such
fees as may be mutually agreeable.

8.      MARKETING AND PUBLICITY

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        8.1 Marketing. The parties agree to work together to identify areas
where joint marketing efforts would benefit both parties, and upon mutual
agreement shall implement such efforts.

        8.2 Publicity. Neither party shall disclose the terms of this Agreement
to any third party, other than its financial or legal advisors, or make any
announcements regarding the nature of the relationship between the parties
without the prior approval of the other party, except that a party may disclose
the terms of this Agreement where required by law, provided that such party uses
reasonable effort to obtain confidential treatment or similar protection to the
fullest extent available to avoid public disclosure of the terms of this
Agreement. A party required by law to make disclosure of the terms of this
Agreement will promptly notify the other party and permit the other party to
review and participate in the application process seeking confidential
treatment. The parties intend to issue a mutually agreeable press release
regarding the subject matter of this Agreement promptly following its execution.

        8.3 Branding. In accordance with Section 2.4, at Palm's request Licensee
will use the Palm Trademarks as contained in the phrase "powered by Palm" or
"containing Palm web clipping technology," or as contained in a similar
trademark or phrase designated by Palm and required by Palm to be used by other
similarly situated Palm licensees, on all documentation for the Licensee
Services and all advertising, promotional and other collateral printed materials
for the Licensee Services. Licensee shall cease all use of the Palm Trademarks
within a reasonable period after Palm's written request.

9       PROPRIETARY RIGHTS

        9.1 Title. Licensee acknowledges that the Palm Software and the
Documentation are the valuable trade secrets of Palm. Palm shall be the sole and
exclusive owner of the Palm Software and the Documentation. Subject always to
Palm's ownership of the Palm Software, as between Licensee and Palm, Licensee
shall be the sole and exclusive owner of the Licensee Software.

        9.2 Proprietary Rights Notices. Licensee agrees that it will not remove,
alter or otherwise obscure any proprietary rights notices appearing in the Palm
Software or the Documentation, and will reproduce such notices on all copies of
the Palm Software and the Documentation made by Licensee.

        9.3 U.S. Government Restricted Rights Legend. All Palm technical data
and computer software is commercial in nature and developed solely at private
expense. Software is delivered as Commercial Computer Software as defined in
DFARS 252.227-7014 (June 1995) or as a commercial item as defined in FAR
2.101(a) and as such is provided with only such rights as are provided in Palm's
standard commercial license for such software. Technical data is provided with
limited rights only as provided in DFARS 252.227-7015 (Nov. 1995) or FAR
52.227-14 (June 1987), whichever is applicable. Licensee agrees not to remove or
deface any portion of any legend on any software or documentation delivered to
it under this Agreement.

                                                                              12

<PAGE>   13

        9.4 End User Licensing. Licensee will distribute the Palm OS subject to
the terms set forth in Exhibit F.

        9.5 Licensee Modifications. Notwithstanding the provisions of Section
9.1 or any other provision herein to the contrary, Licensee shall be the sole
and exclusive owner of all modifications of the Palm Source Code made by or on
behalf of Licensee hereunder (collectively, "Modifications"). Licensee agrees to
provide Palm, upon Palm's request, copies of all Modifications. Licensee hereby
grants to Palm a worldwide, nonexclusive, fully paid, royalty free, irrevocable
(except pursuant to Section 15.4) license to use, reproduce, modify, display and
distribute the Modifications in source code and/or executable form, including
the right to sublicense such rights through single or multiple tiers of
distribution. When providing Modifications to Palm, Licensee shall identify to
Palm in writing all third party software or other intellectual property in such
Modifications which Licensee has licensed and for which Palm needs to seek its
own license ("Third Party Software"), including a description of the Third Party
Software, the licensor and the price paid by Licensee to obtain such license.
Licensee shall not be required to disclose the price to Palm if Licensee is
restricted from doing so in its license with such licensor. Subject to receiving
such written identification at such time, Palm acknowledges and agrees that its
ability to use such Modifications may be subject to acquiring licenses for such
Third Party Software from third parties, that it shall be solely responsible for
obtaining all such licenses, and that Licensee shall not be obligated to provide
or procure such licenses. Except with respect to the Third Party Software which
Licensee has identified pursuant to this Section 9.5, the foregoing sentence is
not intended to limit Licensee's obligations pursuant to Section 11.3.

10      WARRANTY

        10.1 Palm Warranty. Palm warrants that for a period of ninety (90) days
after receipt by Licensee of the Palm Software (the "Warranty Period") the media
on which Palm delivers the Palm Software to Licensee shall be free of defects in
material and workmanship. As Licensee's sole and exclusive remedy for any breach
of such warranty, Palm shall replace any such defective media promptly following
receipt of written notice from Licensee of such defects during the Warranty
Period. EXCEPT FOR THE LIMITED WARRANTIES SET FORTH IN THIS SECTION 10, PALM
MAKES NO WARRANTIES, TERMS OR CONDITIONS, EXPRESS, IMPLIED OR STATUTORY, AS TO
THE PALM SOFTWARE, WHICH IS PROVIDED "AS IS", OR THE DOCUMENTATION. IN
PARTICULAR, ANY AND ALL WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, AND SATISFACTORY QUALITY WITH RESPECT TO THE PALM SOFTWARE ARE
EXPRESSLY EXCLUDED.

        10.2 Year 2000 Warranty.

               (a) Palm warrants to Licensee that the Palm Software will
continue performing properly with regard to date-data on and after January 1,
2000, provided that

                                                                              13

<PAGE>   14

all other products used by Licensee in connection or combination with the Palm
Software accurately exchange date-data with the Palm Software. Palm makes no
certification regarding the performance of any other Palm products with regard
to date-data.

               (b) If it appears that any Palm Software does not perform
properly with regard to date-data on and after January 1, 2000, and Licensee
notifies Palm thereof before April 1, 2000, Palm shall, at its option and
expense and as Licensee's sole and exclusive remedy for breach of the warranty
made in subsection (a) above, provide Licensee with a software Update which
would effect the proper performance of the Palm Software or deliver to Licensee
equivalent software to replace the Palm Software. Any such software Update or
equivalent software will be warranted pursuant to subsection (a) above for
ninety (90) days or until April 1, 2000, whichever is later.

11      INDEMNIFICATION

        11.1 By Palm. Palm shall, at its own expense, defend and indemnify
Licensee for damages and reasonable costs incurred in any suit, claim or
proceeding brought against Licensee alleging that the Palm Software,
Documentation, or Palm Trademarks licensed pursuant to this Agreement infringe
any patents, copyrights, trademarks, trade secrets, proprietary information or
other third party intellectual property rights in any of the following
countries: United States, Japan, or any member country of the European Union,
provided that Palm is promptly notified, rendered reasonable assistance by
Licensee as required, and permitted to direct the defense or settlement
negotiations. Palm shall have no liability for any infringement arising from:
(a) the integration or combination of the Palm Software, Documentation or Palm
Trademarks together with other software, materials or products not integrated or
combined by Palm, if the infringement would have been avoided in the absence of
such integration or combination; (b) the use of other than a current unaltered
release of the software available from Palm, if the infringement would have been
avoided by the use of the then-current release, and if Palm has provided such
current release to Licensee; or (c) modifications to the Palm Software or
Documentation requested by Licensee or made by anyone other than Palm or at
Palm's direction.

        11.2 Remedies. Should the use of any Palm Software, the Documentation or
Palm Trademarks be enjoined, or in the event Palm reasonably believes that any
Palm Software, Documentation, or Palm Trademarks may be subject to an
infringement claim, Palm may, at its option, either: (i) substitute
substantially functionally equivalent non-infringing Palm Software or
Documentation, as the case may be; (ii) modify the infringing item so that it no
longer infringes but remains substantially functionally equivalent; (iii) obtain
for Licensee, at Palm's expense, the right to continue use of such item; or (iv)
if none of the foregoing is feasible, Palm may terminate this Agreement, in
whole or in part. Notwithstanding the foregoing, Licensee acknowledges that Palm
may undertake to obtain licenses from third parties relating to the Palm
Software, and in such event the royalty obligation for the Licensee Products
arising from such licenses shall be passed through to, and paid at the direction
of Palm by, Licensee; provided, however, that the per-unit royalty obligation
payable by Licensee shall not exceed the per-unit or

                                                                              14

<PAGE>   15
percentage royalty obligation (whichever is less) payable by Palm for products
similar to the Licensee Products, and shall not in any event exceed ($2.00) per
unit. SECTIONS 11.1 AND 11.2 STATE LICENSEE'S SOLE AND EXCLUSIVE REMEDY WITH
RESPECT TO CLAIMS OF INFRINGEMENT OF PROPRIETARY RIGHTS OF ANY KIND, AND ALL
WARRANTIES OF NON-INFRINGEMENT, EXPRESS OR IMPLIED, ARE SPECIFICALLY DISCLAIMED
AND EXCLUDED.

        11.3 By Licensee. Licensee shall, at its own expense, defend and
indemnify Palm for damages and reasonable costs incurred in any suit, claim or
proceeding brought against Palm, its subsidiaries or 3Com Corporation alleging
that any Modification infringes any patents, copyrights or trademarks
trademarks, trade secrets, proprietary information or other third party
intellectual property rights in any of the following countries: United States,
Japan, or any member country of the European Union, provided that Licensee is
promptly notified, rendered reasonable assistance by Palm as required, and
permitted to direct the defense or settlement negotiations. Licensee shall have
no liability for any infringement arising from (a) the integration or
combination of the Modifications together with other any software, materials or
products if the infringement would have been avoided in the absence of such
integration or combination; or (b) the use of other than the most current
unaltered version of any Modification provided to Palm, if the infringement
would have been avoided by the use of the then-current version; or (c)
modifications to any Modification made by any third party other than Licensee or
at Licensee's direction.

        11.4 Remedies. Should the use of any Modifications be enjoined, or in
the event Licensee reasonably believes that any Modifications may be subject to
an infringement claim, Licensee may, at its option, either: (i) substitute
substantially functionally equivalent non-infringing Modifications; (ii) modify
the infringing Modification so that it no longer infringes but remains
substantially functionally equivalent; (iii) obtain for Palm, at Licensee's
expense, the right to continue use of such item; or (iv) if none of the
foregoing is feasible, Licensee may terminate the license granted in Section
9.5. SECTIONS 11.3 AND 11.4 STATE PALM'S SOLE AND EXCLUSIVE REMEDY WITH RESPECT
TO CLAIMS OF INFRINGEMENT OF PROPRIETARY RIGHTS OF ANY KIND, AND ALL WARRANTIES
OF NON-INFRINGEMENT, EXPRESS OR IMPLIED, ARE SPECIFICALLY DISCLAIMED AND
EXCLUDED.

        11.5 Other Indemnity by Licensee. Except for any matter for which Palm
is liable pursuant to Section 11.1 or 11.2, Licensee shall indemnify and defend
Palm against all claims, suits, losses, expenses and liabilities (including
Palm's reasonable attorneys' fees) for bodily injury, personal injury, death and
tangible property damage made against Palm or its subsidiaries as a result of
the use by Licensee of the Palm Software or the negligence, intentional wrongful
acts or omissions, or misrepresentations of Licensee or any person for whose
actions Licensee is legally liable. Licensee shall be solely responsible for any
claims, warranties or representations made by Licensee or its employees or
agents which differ from the warranty provided by Palm hereunder.

                                                                              15

<PAGE>   16

12      CONFIDENTIALITY

        12.1 Confidential Information. Each party acknowledges that in the
course of the performance of this Agreement, it may obtain the Confidential
Information of the other party. Except as permitted in Section 2.6, the
Receiving Party (as defined in Section 1.1 (Confidential Information)) shall, at
all times, both during the term of this Agreement and thereafter for a period of
five (5) years keep in confidence and trust all of the Disclosing Party's (as
defined in Section 1.1 (Confidential Information)) Confidential Information
received by it (except for any source code, which shall be kept in confidence
and trust in perpetuity except as provided in Section 2.6). The Receiving Party
shall not use the Confidential Information of the Disclosing Party other than as
expressly permitted under the terms of this Agreement. The Receiving Party shall
take reasonable steps to prevent unauthorized disclosure or use of the
Disclosing Party's Confidential Information and to prevent it from falling into
the public domain or into the possession of unauthorized persons. The Receiving
Party shall not disclose Confidential Information of the Disclosing Party to any
person or entity other than its officers, employees, contractors, and
consultants who need access to such Confidential Information in order to effect
the intent of this Agreement and who have entered into confidentiality
agreements which protect the Confidential Information of the Disclosing Party
sufficient to enable the Receiving Party to comply with this Section 12.1
(Confidential Information). The Receiving Party shall immediately give notice to
the Disclosing Party of any unauthorized use or disclosure of Disclosing Party's
Confidential Information. The Receiving Party agrees to assist the Disclosing
Party to remedy such unauthorized use or disclosure of its Confidential
Information.

        12.2 Exceptions to Confidential Information. The obligations set forth
in Section 12.1 (Confidential Information) shall not apply to the extent that
Confidential Information includes information which is: (a) now or hereafter,
through no unauthorized act or failure to act on the Receiving Party's part, in
the public domain; (b) known to the Receiving Party without an obligation of
confidentiality at the time the Receiving Party receives the same from the
Disclosing Party, as evidenced by written records: (c) hereafter furnished to
the Receiving Party by a third party as a matter of right and without
restriction on disclosure; (d) furnished to others by the Disclosing Party
without use of the Disclosing Party's Confidential Information. Nothing in this
Agreement shall prevent the Receiving Party from disclosing Confidential
Information to the extent the Receiving Party is legally compelled to do so by
any governmental investigative or judicial agency pursuant to proceedings over
which such agency has jurisdiction; provided, however, that prior to any such
disclosure, the Receiving Party shall: (i) assert the confidential nature of the
Confidential Information to the agency; (ii) immediately notify the Disclosing
Party in writing of the agency's order or request to disclose: and (iii)
cooperate fully with the Disclosing Party in protecting against any such
disclosure and/or obtaining a protective order narrowing the scope of the
compelled disclosure and protecting its confidentiality.

                                                                              16

<PAGE>   17

        12.3 Other Palm Software Source Code Restrictions Licensee shall inform
its employees having access to Palm Software source code of Licensee's
limitations, duties and obligations regarding nondisclosure and copying of such
source code and shall obtain or have obtained their written agreement to comply
with such limitations, duties and obligations. Licensee shall maintain records
of its employees having access to such source code, and upon reasonable notice
Palm may audit such records.

13      LIMITATION OF LIABILITY

        13.1 EXCEPT FOR LICENSEE'S EXCEEDING THE SCOPE OF THE LICENSES IN
SECTION 2 (LICENSES) OR ANY LIABILITY OF EITHER PARTY ARISING UNDER SECTION 12
(CONFIDENTIALITY), NEITHER PARTY SHALL HAVE ANY LIABILITY FOR INCIDENTIAL,
CONSEQUENTIAL, INDIRECT, SPECIAL OR PUNITIVE DAMAGES OR LIABILITIES OF ANY KIND
OR FOR LOSS OF REVENUE, LOSS OF BUSINESS, OR OTHER FINANCIAL LOSS ARISING OUT OF
OR IN CONNECTION WITH THIS AGREEMENT, REGARDLESS OF THE FORM OF THE ACTION,
WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT PRODUCT LIABILITY OR
OTHERWISE, EVEN IF ANY REPRESENTATIVE OF A PARTY HERETO HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES.

        13.2 EXCEPT FOR LIABILITY ARISING UNDER SECTION 11.1 AND 12.1, AND ANY
LIABILITY FOR EXCEEDING THE SCOPE OF THE LICENSE IN SECTION 9.5, PALM'S TOTAL
LIABILITY ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE LIMITED TO THE
AGGREGATE AMOUNTS PAID BY LICENSEE TO PALM HEREUNDER.

14      COMPLIANCE WITH LAW

        14.1 Laws Generally. Licensee agrees to comply with all applicable laws,
rules, and regulations in connection with its activities under this Agreement.

        14.2 Export Regulations. Neither party shall export, directly or
indirectly, any technical data or software acquired under this Agreement or the
direct product of any such technical data or software to any country for which
the United States Government or any agency thereof, at the time of export,
requires an export license or other government approval, without first obtaining
such license or approval. With respect to any export transactions under this
Agreement, both parties will cooperate in any reasonable manner to effect
compliance with all applicable export regulations.

15      TERM AND TERMINATION

        15.1 Term. This Agreement shall be effective from the Effective Date for
a period of five (5) years, unless earlier terminated in accordance with its
terms. Thereafter, this Agreement will automatically renew on its anniversary
dates for successive one (1)

                                                                              17

<PAGE>   18

year terms unless either party provides written notice to the other at least six
(6) months prior to any such anniversary.

        15.2 Termination Due to Bankruptcy, etc. In the event a party: (i)
becomes insolvent: (ii) voluntarily files or has filed against it a petition
under applicable bankruptcy or insolvency laws which such party fails to have
released within thirty (30) days after filing; (iii) proposes any dissolution,
composition or financial reorganization with creditors or if a receiver,
trustee, custodian or similar agent is appointed or takes possession with
respect to all or substantially all property or business of such party; or (iv)
such party makes a general assignment for the benefit of creditors, the other
party may terminate this Agreement by giving a termination notice, which
termination shall become effective ten (10) days after mailing.

        15.3 Right to Terminate. Either party shall have the right to terminate
this Agreement if the other party is in material breach of any term or condition
of this Agreement and fails to remedy such breach within thirty (30) days after
receipt of written notice of such breach given by the non-breaching party;
provided, however, that a breach of the obligations set forth in Section 12
(Confidentiality) shall be grounds for immediate termination of this Agreement
by the non-breaching party.

        15.4 Effect of Termination. Upon the termination or expiration of this
Agreement: (i) the licenses and other provisions of this Agreement shall be
terminated, provided that neither the licenses granted in Section 2.2(a) or
2.2(c) nor the license granted in Section 9.5 shall terminate upon any
expiration or termination of this Agreement unless such termination results from
(A) a breach of the license granted in Section 2.2 or 9.5, respectively, or (B)
a breach of Section 12 which breach directly relates to the Elaine Software or a
Modification, respectively, or (C) termination pursuant to Sections 11.2 or
11.4, respectively or pursuant to Section 15.2 or Section 15.3; (ii) Licensee's
obligation to pay all sums due hereunder shall be accelerated and all such sums
shall be due and payable within forty-five (45) days of the end of the calendar
quarter in which the date of termination or expiration occurred; and (iii) the
Receiving Party shall, within fifteen (15) days of receipt of a written request
by the Disclosing Party to do so, return to the Disclosing Party or destroy all
full or partial copies, in whatever media, of any and all confidential materials
in the Receiving Party's possession which had been furnished to the Receiving
Party by the Disclosing Party pursuant to this Agreement, and the Receiving
Party shall warrant in writing to the Disclosing Party within thirty (30) days
after termination or expiration that all such materials have been returned to
the Disclosing Party or destroyed. Notwithstanding the foregoing, Licensee's
right to reproduce the Elaine Software pursuant to Section 2.2(b) shall
terminate upon any termination or expiration of this Agreement.

        15.5 Survival. Neither the termination or expiration of this Agreement
shall relieve either party from its obligations to pay the other any sums
accrued hereunder. The parties agree that their respective rights, obligations
and duties under Sections 4 (Royalties and Fees), 5 (Taxes), 8.2 (Publicity),
8.3 (Branding), 9 (Proprietary Rights), 10 (Warranty), 11 (Indemnification), 12
(Confidentiality), 13 (Limitation of Liability), 14

                                                                              18

<PAGE>   19

(Compliance with Law), 15 (Term and Termination) and 16 (Miscellaneous), as well
as any rights, obligations and duties which by their nature extend beyond the
termination or expiration of this Agreement shall survive any termination or
expiration. In addition, all licenses of Palm Software granted by Licensee
hereunder to end users shall survive any termination or expiration of this
Agreement.

        15.6 No Damages For Termination or Expiration. PALM SHALL NOT BE LIABLE
TO LICENSEE FOR DAMAGES OF ANY KIND, INCLUDING INCIDENTAL OR CONSEQUENTIAL
DAMAGES, ON ACCOUNT OF THE TERMINATION OR EXPIRATION OF THIS AGREEMENT IN
ACCORDANCE WITH ITS TERMS. LICENSEE WAIVES ANY RIGHT IT MAY HAVE TO RECEIVE ANY
COMPENSATION OR REPARATIONS ON TERMINATION OR EXPIRATION OF THIS AGREEMENT UNDER
THE LAW OF ANY TERRITORY OR OTHERWISE. Palm will not be liable to Licensee on
account of termination or expiration of this Agreement for reimbursement or
damages for the loss of goodwill, prospective profits or anticipated income, or
on account of any expenditures, investments, leases or commitments made by
Licensee or for any other reason whatsoever based upon or growing out of such
termination or expiration. Licensee acknowledges that: (i) Licensee has no
expectation and has received no assurances that any investment by Licensee in
the promotion of Licensee Services will be recovered or recouped or that
Licensee will obtain any anticipated amount of profits by virtue of this
Agreement; and (ii) Licensee will not have or acquire by virtue of this
Agreement or otherwise any vested, proprietary or other right in the Palm
Trademarks or in "goodwill" thereunder.

16      MISCELLANEOUS

        16.1 Notices. Any notice provided for or permitted under this Agreement
will be treated as having been given when (a) delivered personally, (b) sent by
confirmed telex or fax, (c) sent by commercial overnight courier with written
verification of receipt, or (d) mailed postage prepaid by certified or
registered mail, return receipt requested, to the party to be notified, at the
address set forth below, or at such other place of which the other party has
been notified in accordance with the provisions of this Section 16.1 (Notices).

        If to Palm:                 Palm Computing, Inc.
                                    5400 Bayfront Plaza
                                    Santa Clara, CA 95052
                                    Attention: Vice President Strategic
                                              Alliances and Platform Development
                                    Fax: (408) 326-9791

        with copies to:             Palm Computing, Inc.
                                    5400 Bayfront Plaza
                                    Santa Clara, CA 95052
                                    Attention: General Counsel
                                    Fax: (408) 326-6434

                                                                              19

<PAGE>   20

        If to Licensee:             OmniSky Corporation
                                    299 California Avenue
                                    Palo Alto, CA 94306
                                    Attention: Mike Dolbec
                                    Fax: _________________

Such notice will be treated as having been received upon the earlier of actual
receipt or five (5) days after posting.

        16.2 Amendment; Waiver. This Agreement may be amended or supplemented
only by a writing that is signed by duly authorized representatives of both
parties. No term or provision hereof will be considered waived by either party,
and no breach excused by either party, unless such waiver or consent is in
writing signed on behalf of the party against whom the waiver is asserted. No
consent by either party to, or waiver of, a breach by either party, whether
express or implied, will constitute a consent to, waiver of, or excuse of any
other, different, or subsequent breach by either party.

        16.3 Severability. If any provision of this Agreement is held invalid or
unenforceable for any reason, the remainder of the provision shall be amended to
achieve as closely as possible the economic effect of the original term and all
other provision shall continue in full force and effect.

        16.4 Governing Law and Language. This Agreement shall be governed by and
construed under the laws of the United States and the State of California as
applied to agreements entered into and to be performed entirely within
California between California residents. The parties agree that the United
Nations Convention on Contracts for the International Sale of Goods is
specifically excluded from application to this Agreement. The English-language
version of this Agreement controls when interpreting this Agreement.

        16.5 Choice of Forum. The parties hereby submit to the jurisdiction of,
and waive any venue objections against, the United States District Court for the
Northern District of California, San Jose Branch and the Superior and Municipal
Courts of the State of California, Santa Clara County, in any litigation arising
out of the Agreement.

        16.6 Injunctive Relief. The copying, disclosure, or use of the Palm
Software or the Documentation in a manner inconsistent with any provision of
this Agreement will cause irreparable injury to Palm for which Palm will not
have an adequate remedy at law. Palm shall be entitled to equitable relief in
court, including but not limited to temporary restraining orders, preliminary
injunctions and permanent injunctions.

        16.7 Attorneys' Fees. In any action to enforce this Agreement, the
prevailing party shall be awarded all court costs and reasonable attorneys' fees
incurred, including such costs and attorneys' fees incurred in enforcing and
collecting any judgment.

                                                                              20

<PAGE>   21

        16.8 Force Majeure. Except for the payment of money, neither party will
be liable for any failure or delay in performance under this Agreement due to
fire, explosion, earthquake, storm, flood or other weather, unavailability of
necessary utilities or raw materials, war, insurrection, not, act of God or the
public enemy, law, act, order, proclamation, decree, regulation, ordinance, or
instructions of Government or other public authorities, or judgment or decree of
a court of competent jurisdiction (not arising out of breach by such party of
this Agreement) or any other event beyond the reasonable control of the party
whose performance is to be excused.

        16.9 Assignment. Palm may assign this Agreement without restriction,
provided the assignee agrees in writing to be bound by the terms of this
Agreement. Licensee may not assign any rights or duties under this Agreement or
assign this Agreement in its entirety, whether by operation of law or otherwise,
without the prior written consent of Palm and any attempt to do so without such
consent will be void; provided, however, that Licensee shall have the right to
assign this Agreement, or any of its rights or obligations hereunder, to any
successor in interest to all or substantially all of Licensee's business or
assets related to this Agreement. This Agreement will bind and inure to the
benefit of the parties and their respective successors and permitted assigns.

        16.10 Relationship of the Parties. The parties to this Agreement are
independent contractors. There is no relationship of agency, partnership, joint
venture, employment, or franchise between the parties. Neither party has the
authority to bind the other or to incur any obligation on its behalf.

        16.11 Allocation of Risk. The sections on limitation of liability,
warranties and disclaimer of warranties allocate the risks in the Agreement
between the parties. This allocation is an essential element of the basis of the
bargain between the parties.

        16.12 Construction of Agreement. This Agreement has been negotiated by
the respective parties hereto and their attorneys and the language hereof shall
not be construed for or against any party. The titles and headings herein are
for reference purposes only and shall not in any manner limit the construction
of this Agreement, which shall be considered as a whole.

        16.13 Counterparts. This Agreement may be executed in two counterparts,
each of which shall be deemed an original, but both of which together shall
constitute one and the same instrument. If this Agreement is executed in
counterparts, no signatory hereto shall be bound until both the parties named
below have duly executed or caused to be duly executed a counterpart of this
Agreement.

        16.14 Entire Agreement. This Agreement, including all Exhibits to this
Agreement, constitutes the entire agreement between the parties relating to this
subject matter and supersedes all prior or simultaneous representations,
discussions, negotiations, and agreements, whether written or oral.

                                                                              21

<PAGE>   22

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the dates set forth below effective as of the Effective Date.

PALM COMPUTING, INC.,                      OMNISKY CORPORATION

By: /s/ MARK BERCOW                        By: /s/ MICHAEL D. DOLBEC

Name: MARK BERCOW                          Name: MICHAEL D. DOLBEC

Title: Vice President                      Title: CFO, SVP BUSINESS DEVELOPMENT

Date: 1/5/00                               Date: 1/6/00

List of Exhibits
----------------

A       Palm Software
B       Test Criteria
C       Palm Trademark Policy Guidelines
D       Maintenance and Support Fees
E       Palm Support Services
F       Minimum License Terms

                                                                              22

<PAGE>   23

                                    EXHIBIT A

                                  PALM SOFTWARE

Palm OS Object Code
-------------------

1.      Palm VII Rom (for use with Poser)

2.      Elaine executable (build 51) and build 66

3.      Shark ROM (Palm OS 3.3 for Palm III w/ web clipping)

4.      SharkEZROM (Palm OS 3.3 for Palm V, Palm Vx, or Palm IIIx w/ web
        clipping)

Palm OS Source Code
-------------------

5.      Web Clipping Source Code Files (all of which are source code modules of
        the Palm OS):
               NetMgr.h,INetMgr.h,

        Wireless Panel src includes (all of which are source code modules of the
               Palm OS):
               Wireless.mcp
               ResourceControl.c
               ResourceControl.h
               Wireless.r
               WirelessPanel.c
               WirelessPanel.h
               WirelessRsc.c
               Wireless.rsrc
               Wireless_res.h

        Loopback plugin includes:
               SampleNetIF.c
               NetInterface.h

        Sample Extension includes:
               SampleExtension.c

Palm Computing Platform Compatibility test cases
------------------------------------------------

Palm Desktop Software
---------------------

1.      Palm Desktop 3.1

                                                                              23

<PAGE>   24

Documentation
-------------

1.      Operator manual for Elaine

2.      PalmOS NetLib for Mobitex document

Palm Development Environment
----------------------------

1.      ROM Build SDK (EZ and non-EZ) includes following components:
          system and application prcs
          BigROM
          PalmDebugger
          MakeCard cmd and MakeCard application
          Readme (ROM build instructions)

2.      Security Key Generation Tools

3.      Palm OS Development SDK plus necessary Palm OS 3.3 headers

                                                                              24

<PAGE>   25

                                   EXHIBIT B

                                 TEST CRITERIA

                                [to be attached]

                                                                              25

<PAGE>   26

                                   EXHIBIT C

                        PALM TRADEMARK POLICY GUIDELINES

                                [to be attached]

                                                                              26

<PAGE>   27

                                    EXHIBIT D

                          MAINTENANCE AND SUPPORT FEES

Year one: $125,000. Payment due in full upon Licensee's completion of its second
round of financing, but not later than May 31, 2000. Payment will apply to
support provided from date of agreement through May 31, 2000.

Year two (beginning June 1, 2000): $100,000. Payments of $25,000 per quarter in
advance.

Each subsequent year: $75,000. Payments of $18,750 per quarter in advance.

                                                                              27

<PAGE>   28

                                    EXHIBIT E

                              PALM SUPPORT SERVICES

1.      Definitions.

"Severity One" Support is defined as support required to address a fatal program
error in the Palm Software which has a critical business impact and precludes
significant useful work from being done or, significantly precludes developer
and/or end-user operations.

"Severity Two" Support is defined as support required to address a program error
in the Palm Software which has a significant business impact where important
features are unavailable with no acceptable workaround and development
operations are seriously impaired.

"Severity Three" Support is defined as support required to address a program
error in the Palm Software with some business impact, such as important features
unavailable but a workaround is available or less significant features are
unavailable with no reasonable workaround.

2.     Support Response Times. The parties shall promptly agree in good
faith to share any information and/or documentation which may be required to
permit Palm to identify and resolve any development support requests. The
support response period begins after Palm (a) has enough information to profile
the reported error and (b) can recreate the reported error or has access to a
facility where the error can be recreated ("Start Date"). Palm agrees to use
commercially reasonable efforts to recreate the reported error and respond based
on the following timetable:

        "Severity One" Support. Palm shall use reasonable commercial efforts to
resolve or reduce the severity via workaround and/or patch within two (2)
business days of the Start Date, or if unable to resolve such problem within
such timeframe, Palm shall provide its action plan within such timeframe and
provide regular status updates. A final resolution shall be identified in the
action plan. Palm and Licensee problem managers shall review incident after two
(2) business days and every two (2) business days thereafter until the error has
been resolved.

        "Severity Two" Support. Palm shall use reasonable commercial efforts to
resolve or reduce the severity via workaround and/or patch within two (2)
business days of the Start Date, or if unable to resolve such problem within
such timeframe, Palm shall provide its action plan within such timeframe and
provide regular status updates. A final resolution problem managers shall review
incident after five (5) business days. A final engineering resolution shall be
identified in the action plan.

        "Severity Three" Support. Palm shall use reasonable commercial efforts
to acknowledge the error within ten (10) business days of receipt of notice.
Palm shall

                                                                              28

<PAGE>   29

provide a final engineering resolution within three (3) months or next scheduled
release, whichever is sooner.

        So long as Palm is using reasonable commercial efforts to recreate
reported errors and resolve or reduce Severity One and Severity Two problems in
accordance with the action plan provided, Palm's inability to resolve such
problems within the timeframes stated herein or the action plan shall not be
deemed a material breach of Section 7.1 or any other provision of the Agreement.
The prescribed support response times above may be extended as mutually agreed,
such agreement not to be unreasonably withheld, e.g., if resolution of the
problem requires timely hardware certification or test, or if resolution
represents significant risk to the essential functions. Any support requests
that are attributable to any matters other than errors in the unmodified Palm
Software provided by Palm to Licensee hereunder are subject to billing at Palm's
standard time and materials rates.

        3. Support Evaluation. The parties will attempt in good faith to
promptly resolve any controversy or claim relating to performance of the
technical support assistance provided by Palm under this Agreement. Each party
may request the other party to involve appropriate senior executives of such
other party who shall have the authority to resolve the matter.

                                                                              29

<PAGE>   30

                                    EXHIBIT F

                              MINIMUM LICENSE TERMS

                                                                              30<PAGE>   1
                                                                    Exhibit 10.8

                             AT&T WIRELESS SERVICES

                         VALUE ADDED RESELLER AGREEMENT

        AT&T Wireless Services National Accounts, Inc., as agent for certain of
its wireless telecommunications operating Affiliates, ("AT&T"), and the
Customer, as more specifically designated below, hereby agree that Customer's
acquisition of services from AT&T for resale and other permitted uses will be
pursuant to the terms and conditions as provided in this Agreement.

A.      CUSTOMER:

NAME OF CUSTOMER: OpenSky

ADDRESS OF CUSTOMER: 299 California Ave, Palo Alto, CA, 94301

TELEPHONE NUMBER: 650 473-9700

FAX NUMBER: 650 323-6785

PRINCIPAL CONTACT PERSONS: Barak Berkowitz, President, Patrick McVeigh, Chairman
and CEO

B.      DESCRIPTION OF AGREEMENT.

Customer would like to receive cellular digital packet data communications
service ("Service") from AT&T for Customer's distribution of certain value-added
communications services to its End Users. AT&T wishes to provide Service to
Customer based upon the value-added communications services provided by Customer
to its End Users in accordance with the terms and conditions of this Agreement.

C.      EFFECTIVE DATE.

The Effective Date of this Agreement is the date of Commercial Launch, as
defined below.

D.      TERM.

This Agreement commences on the Effective Date and remains in effect for one
year after the date of Commercial Launch, automatically renewing for successive
one-year renewal terms, unless terminated as described in the "Additional Terms
and Conditions" portion of this Agreement.

E.      EXHIBITS AND SCHEDULES

                                       -1-

<PAGE>   2

               EXHIBIT A-APPLICATION

               EXHIBIT B-SERVICE AREA

               EXHIBIT C-SERVICE PLAN

               EXHIBIT D-END USER DISCLOSURES

All Exhibits and Schedules are attached hereto and incorporated into this
Agreement by this reference.

F.      ADDITIONAL TERMS AND CONDITIONS

        In consideration of the mutual promises contained in this Agreement, the
parties, and their successors and permitted assigns hereby agree as follows:

SECTION 1. DEFINITIONS

        1.1 AFFILIATE means, with respect to any entity, any other entity that
directly Controls, is Controlled by or is under common Control with the first
entity.

        1.2 APPLICATION means the combination of the Service and Customer's
value-added communications services provided to its End Users. The Application
is more specifically described in Exhibit A hereto.

        1.3 COMMERCIAL LAUNCH means the date agreed to by AT&T and Customer as
the date that the Application will be available for a beta test of up to 5000
End Users.

        1.4 CONTROL (and all conjugations thereof) means, with respect to any
entity, the direct or indirect possession of the power to direct the management
and policies of such entity.

        1.5 CUSTOMER EQUIPMENT means all equipment (other than equipment
comprising portions of AT&T's CDPD network) necessary to enable Customer or its
End Users to receive the Service including but not limited to Customer's network
facilities, and Customer's and End User's Wireless Data Units.

        1.6 END USER means an individual or entity obtaining access to Service
from Customer.

        1.7 EVENTS OF DEFAULT means the following:

               (i) the execution of any assignment for the benefit of creditors
or the filing for relief by either party under any applicable bankruptcy,
reorganization, moratorium, or similar debtor relief laws;

                                       -2-

<PAGE>   3

               (ii) the appointment of a receiver for Customer or AT&T or for
substantially all of their respective assets or properties;

               (iii) the failure of either party to pay any sum owed to the
other hereunder at the time such amount comes due;

               (iv) the failure of either party to perform or observe any other
term, condition, or covenant to be performed by it under this Agreement;

               (v) the commission of any major felonies by or the filing of
criminal indictment by government authorities against a party, its proprietors,
partners, officers, directors or shareholders (to the extent such individuals
control in the aggregate or individual 20% or more of the voting rights or
equity interests of such party);

               (vi) the furnishing, within a 12-month period, by Customer to
AT&T of two or more checks that are not paid when presented due to insufficient
funds;

               (vii) an unauthorized assignment of this Agreement; and

               (viii) failure by Customer to meet the eligibility requirements
and all terms and conditions of each Service Plan selected by Customer.

Upon the occurrence of any of these Events of Default, a party shall be deemed
to be in default of this Agreement, unless such Event of Default is cured within
any applicable cure period identified in Section 10.2.

        1.8 NUMBER means, for each End User, the AT&T network equipment
identifier ("NEI") or mobile identification number ("MIN") assigned to Customer
for that End User to obtain access to Service.

        1.9 SERVICE means the CDPD and associated support services provided to
Customer by AT&T as set forth in this Agreement.

        1.10 SERVICE AREA means that area in which Service is made available to
Customer by AT&T. The current Service Area is set forth in Exhibit B, which
Exhibit B may be amended by AT&T from time to time. The Service Area consists of
AT&T Markets and Non-AT&T Markets as identified in Exhibit B.

        1.11 SERVICE PLAN means the rates and other terms and conditions under
which Customer purchases Service from AT&T. The current Service Plan(s) are set
forth in Exhibit C, which Exhibit C may be amended by AT&T from time to time as
provided in Section 5.1.

        1.12 SUBSCRIBER means any person or entity purchasing Service from AT&T,
including Customer.

        1.13 SUBSCRIPTION FRAUD means using or assisting another to use any
fraudulent scheme, false representation, or false credit device, or other
fraudulent means or devices in connection with Service; including, but not
limited to, the fraudulent production of information regarding a person's
identity or the use of unauthorized credit.

                                       -3-

<PAGE>   4

        1.14 UNAUTHORIZED ACCESS means any unauthorized use of Service through
the modification of the electronic serial number ("ESN") originally installed by
the manufacturer in a Wireless Data Unit which shall include the practices
generally referred to as "counterfeiting," "cloning fraud," or "tumbling fraud".

        1.15 WIRELESS DATA UNIT means the equipment used to originate or receive
wireless data transmissions, including but not limited to personal digital
assistants and wireless modems.

SECTION 2. THE SERVICE

        2.1 PROVISION

               2.1.1 AT&T shall provide and Customer agrees to purchase Service
as provided in this Agreement. Customer acknowledges that Service is provided by
AT&T directly and through agreements with other carriers; and that AT&T cannot
control the quality of the services when provided through an agreement with
another carrier. AT&T shall use commercially reasonable efforts to provide the
Service in a manner using the reasonable care and skill of a competent
telecommunications services provider.

               2.1.2 Service provided pursuant to this Agreement will be
provided only upon the request of Customer's authorized representatives and not
by End Users, and only in connection with the Application.

               2.1.3 Customer is not authorized under this Agreement to use the
Service independent of the Application or in conjunction with any other value
added communications services unless Exhibit A is amended to include such other
value added communications services.

        2.2 SUPPORT SERVICES. AT&T will provide to Customer, and not directly to
End Users, network monitoring, technical assistance and trouble-shooting support
of the Service as described in AT&T's Support Procedures provided to Customer by
AT&T from time to time. Customer will cooperate with AT&T in any troubleshooting
of the Service and Customer Equipment required to maintain the efficient
operation of the Service.

        2.3 NUMBERS. Customer may order Numbers by complying with AT&T's
procedures for ordering Numbers. Additional Numbers will be issued to Customer
provided Customer is not in default hereof, and subject to any requirements for
a security deposit. AT&T may periodically be required for system or other
reasons to change any of Customer's Numbers. AT&T will, whenever possible, give
Customer prior written notice of such change. AT&T will use its best efforts to
minimize such changes.

        2.4 USE

               2.4.1 Customer shall use and resell the Service for lawful
business purposes and only in connection with the Application.

                                       -4-

<PAGE>   5

               2.4.2 AT&T is obligated only to Customer, with which it is in
privity of contract, and not to End Users, with whom AT&T is not in privity. End
Users are not to be deemed third-party beneficiaries of this Agreement.

               2.4.3 Customer is solely responsible for all risks and expenses
incurred with its provision of the Service and the provision of the Application
to End Users. Except as provided in Section 20.3, Customer will pay AT&T for all
charges for Service used by Customer or its End Users or third parties using a
Number assigned to Customer. In connection with such activities, Customer will
act in all respects for its own account and will be responsible for such things
as credit verification, deposits, billing, collection, and bad debt.

               2.4.4 Customer will disclose to End Users the provisions set
forth in Exhibit D in substantially the form set forth therein.

               2.4.5 Customer is responsible for all End User support regarding
all aspects of End Users' use of the Service (whether arising in connection with
hardware, software or Service), including but not limited to issues relating to
modems, protocol stacks, software configuration and setup, usability issues,
Service activation, Service coverage, billing, and any and all other aspects of
technical services and customer care. This includes, but is not limited to,
Customer taking the End Users' calls and using reasonable commercial efforts to
remedy any Customer or End User-identified problem without AT&T's participation.
Customer will report a problem to AT&T only upon reasonable verification that
the problem is due to reasons other than misuse, malfunction or the failure of
the Customer Equipment to meet the technical standards for compatibility with
the Service, or failure of the End User to understand how to use the Service.

        2.5 CONTINUING RIGHT. AT&T will have the continuing right to market and
sell the Service and any other communications services to any third parties,
including but not limited to current, future and potential End Users, and to
communicate with such third parties, including but not limited to with respect
to Customer's performance hereunder.

        2.6 PROCEDURES. Customer will comply with AT&T's policies and procedures
for obtaining Numbers, for configuring and programming Customer Equipment, and
for activating or deactivating Service with respect to any End User. AT&T may
from time to time modify these policies and procedures by giving Customer
written notice of such modification.

        2.7 SERVICE AREA. The Service is available only to properly configured
Wireless Data Units within the Service Area and is subject to (i) transmission
limitations caused by atmospheric, topographical or other conditions affecting
transmission; (ii) equipment modifications, repairs and other similar activities
necessary for the proper or improved operation of the Service; (iii) equipment
failures beyond AT&T's reasonable control; and (iv) Customer Equipment
limitations.

        2.8 INTERRUPTIONS. The Service may be temporarily refused, limited,
interrupted or curtailed due to governmental regulations or orders, system
capacity limitations or equipment maintenance, repair, modifications, upgrades
or relocation. AT&T will notify Customer of scheduled network outages, and will
attempt to notify Customer of unscheduled network outages that are expected to
last more than four (4) hours and that may affect the Service.

                                       -5-

<PAGE>   6

        2.9 LIMITATIONS ON USE. Customer and its End Users will comply with any
limitations on use of Service contained in the Service Plan. AT&T reserves the
right to audit use of Service to determine conformance with any limitation on
use. In the event AT&T determines in its sole discretion that usage does not
conform to such limitation on use, AT&T may terminate this Agreement.

SECTION 3. INTERCONNECTION

        Customer will be required to obtain and pay for any interconnection
services required to connect Customers or End Users' facilities to AT&T's
network. Customer will follow AT&T policies and procedures for such connections.

SECTION 4. CUSTOMER EQUIPMENT

        Customer will be responsible for the acquisition, programming,
installation, maintenance and repair of all Customer Equipment. Customer will
ensure that all Customer Equipment is technically and operationally compatible
with the Service and meets all applicable federal and state laws, rules and
regulations. Customer may not associate a Number with more than one Wireless
Data Unit.

SECTION 5. RATES

        5.1 AT&T is willing to offer the Service Plan to Customer based upon,
among other things, the commitments given by Customer under this Agreement and
Customer's ability and commitment to provide the value-added communication
services as described in Exhibit A.

        5.2 Customer will pay AT&T for Service provided to Customer and its End
Users in accordance with the applicable Service Plan.

        5.3 SPECIAL OFFERS. Unless the Service Plan provides otherwise, Customer
will not be entitled to participate in any promotions or have access to rewards,
free usage, special Subscriber offerings, equipment, warranty and insurance
packages, and other features provided to other Subscribers.

SECTION 6. EXCLUSIVITY

        6.1 ADVERTISING. For a period from the Effective Date to five months
after Commercial Launch, Customer shall not advertise or promote the
Application, either directly or indirectly, in a way which associates the
Application in any manner with competitors of AT&T other than to the extent
necessary to explain coverage in areas not served by AT&T.

        6.2 ACTIVATIONS. With respect to all End Users obtained by Customer
within an AT&T Market, Customer will assign such End Users a Number provided by
AT&T.

SECTION 7. CUSTOMER'S IDENTIFICATION OF AT&T SERVICE

        7.1 IDENTIFICATION AS VALUE ADDED RESELLER. Customer will identify
itself in marketing and collateral describing the Service according to the
graphic standards and guidelines as published by

                                       -6-

<PAGE>   7

AT&T from time to time. AT&T may modify these graphic standards and guidelines
from time to time upon written notice to Customer.

        7.2 AT&T APPROVAL. All uses of any AT&T Marks (as defined in Section 19
below) by Customer must be approved in advance by AT&T Customer will be
responsible to ensure that all advertising and promotional activities conducted
by Customer will comply with all applicable laws, whether or not such
advertising was reviewed or approved by AT&T.

        7.3 QUARTERLY MEETINGS. The parties will meet once each calendar quarter
to review Customer's planned use of AT&T Marks during the next calendar quarter
and to coordinate the parties' use of AT&T Marks. Customer will be responsible
for scheduling these meetings.

        7.4 OBLIGATIONS UPON TERMINATION. Customer will immediately upon
termination of this Agreement either destroy all material referencing AT&T or
containing AT&T Marks, or will remove all references to AT&T or AT&T Marks
contained in such material.

SECTION 8. MARKETING FUNDS

        8.1 AMOUNT OF FUNDS. AT&T will make available to Customer up to
$10,000,000 in marketing funds to finance certain marketing activities approved
in advance by AT&T.

               8.1.1 After the Application has been tested and accepted by AT&T,
AT&T will make the first $5,000,000 available to Customer to be used for
activities which advertise or promote the launch of the Application.

               8.1.2 AT&T will make the second $5,000,000 available to Customer
after Customer has obtained 5,000 End Users on AT&T's Numbers. These funds will
be used for activities that advertise or promote the Application.

        8.2 USE OF FUNDS. The marketing funds made available by AT&T will be
used for activities that have been approved by AT&T and which include a
prominent display of AT&T's Marks (as defined in Section 19 below). These funds
may not be used by Customer to subsidize the price of any Wireless Data Units
for End Users. These funds must be directed to potential End Users within AT&T
Markets, provided that internet and national (as agreed by AT&T) marketing
efforts shall be deemed to be directed to potential End Users within AT&T
Markets.

               8.2.1 CUSTOMER FUNDS. During the term of this Agreement and at
the times that AT&T contributes marketing funds, Customer will contribute an
equal amount of funds for similar marketing activities; provided that funds
contributed by Customer may be used to subsidize the price of Wireless Data
Units for End Users.

        8.3 ACCESS TO FUNDS. To access the marketing funds described in this
section, Customer must submit a request for the funds, together with a
description of the activities to be funded and a budget of the costs of the
activities. AT&T will use reasonable efforts to respond to each such request

                                       -7-

<PAGE>   8

within 10 days of receipt. Upon approval of the activities and the budget by
AT&T, Customer may have access to the amount approved, which shall be provided
by AT&T promptly after such approval. Customer may begin submitting requests for
funds at any time after the Effective Date.

        8.4 REPORTS. Customer will provide a quarterly report of the activities
funded by the marketing funds, including a report of money actually spent on the
activities.

        8.5 AUDIT. From time to time, AT&T may request an audit as to Customer's
use of marketing funds. Upon reasonable notice from AT&T, Customer shall make
available to AT&T or AT&T's representative books and records sufficient to
verify the amount of Customer's expenditures, the items or services purchased by
the funds, and the publication, broadcast or occurrence of the activities so
funded.

        8.6 TERMINATION AND REPAYMENT OF FUNDS. In the event that the Agreement
is terminated for any reason prior to the end of its term, AT&T will not be
responsible for the payment of any marketing funds described in this Section for
any activities which have not been approved as of the termination date. Further,
in the event that this Agreement is terminated for any reason prior to the end
of its term, any marketing funds for which expenditures have not been approved
by AT&T shall revert to AT&T.

SECTION 9. INVOICES, PAYMENTS, TAXES AND SECURITY DEPOSITS

        9.1 INVOICES. AT&T will provide Customer written invoices on a monthly
basis. Customer shall pay all charges associated with Service.

        9.2 PAYMENT. Customer will pay each invoice within thirty (30) days
following the invoice date. Any payment not received within such time will
accrue interest at the lesser of one and one-half percent (1.5%) per month or
the maximum lawful rate. Additional fees will be assessed for any check returned
for insufficient funds. Customer is responsible for payment of and shall pay all
charges for Service furnished under this Agreement.

        9.3 BILLING ADJUSTMENTS. In the event of a total Service outage
("outage") within the portion of the Service Area associated with any Number
which is not caused by the Customer or its End User, and which lasts for a
period of twenty-four (24) hours or more, a credit allowance will be made at
Customer's request in the form of a pro rata adjustment of the fixed charges
billed by AT&T to Customer with respect to such Number. Periods of discontinuous
outage, where the outage is separated by over 2 hours of service may not be
accumulated in determining if an outage has continued for at least twenty-four
(24) hours. In order to receive such credit, Customer must submit a written
request to AT&T, stating the date and location of the outage, the Numbers
affected, and such other information as AT&T may reasonably require. Such notice
must be received by AT&T within ten (10) business days following the last date
of the period of outage. Except as provided herein, AT&T shall incur no
liability for outages.

        9.4. DISPUTED CHARGES.

               9.4.1 PROCEDURE TO DISPUTE CHARGES. Customer shall timely pay any
undisputed charges. As a prerequisite to disputing any charges, Customer must
(i) notify AT&T in writing within

                                       -8-

<PAGE>   9

five (5) business days of the due date of a bill that Customer disputes certain
charges, (ii) advise AT&T of the basis of its dispute, and (iii) provide AT&T
with such documentation as it may have to support its position. Within thirty
(30) business days thereafter, AT&T shall provide Customer with a written
response supported by documentation. If AT&T's response indicates a continuing
dispute, within ten (10) business days thereafter, Customer and AT&T shall meet
in a good faith effort to resolve the billing dispute. Any dispute not resolved
within thirty days of AT&T's response may be submitted by either party to
arbitration.

        9.4.2 LOSS OF WIRELESS DATA UNIT. In the event Customer's or an End
User's Wireless Data Unit is lost, stolen, or otherwise absent from Customer's
or the End User's possession or control, Customer shall nevertheless be liable
for all charges attributable to the Number assigned to such Wireless Data Unit
until it notifies AT&T during business hours of such loss, theft, or
unauthorized absence, in which case, Customer's liability therefor shall
terminate at the earlier of (i) deactivation of the Number by AT&T, or (ii) the
end of one (1) business hour after such notification is received by AT&TAT&T
shall use reasonable efforts, taking into account all circumstances which shall
include other operational demands placed upon its employees, to deactivate
Service to the Number affected as soon as practicable.

        9.5 TAXES. Customer will pay all applicable federal, state and local
sales, use, public utilities, gross receipts or other taxes, fees, or recoveries
imposed on AT&T as a result of this Agreement (collectively, "Taxes") (other
than taxes imposed on the net income of AT&T). Customer will submit certificates
of resale for federal excise tax and as required for the states in which it will
resell Service. Customer is responsible for collecting from its End Users and
paying all Taxes associated with its provision of Service and the Application.
Customer will reimburse AT&T for any such Taxes paid by AT&T on Customer's
behalf.

        9.6 SECURITY DEPOSITS. In the event that Customer is more than thirty
(30) days late on any three consecutive payments, AT&T may require Customer to
provide it with a cash deposit or other security reasonably acceptable to AT&T
based upon AT&T's assessment of Customer's creditworthiness.

SECTION 10. TERMINATION

        10.1 TERMINATION AT END OF TERM. Either party may terminate this
Agreement by providing the other party with written notice of termination at
least ninety (90) days prior to the end of the then current term.

        10.2 TERMINATION UPON DEFAULT. Upon an Event of Default which the
defaulting party fails to cure within thirty (30) days following its receipt of
written notice from the non-defaulting party the non-defaulting party, in
addition to any other remedies it may have at law or in equity (including the
right to recover or resolve any actual or potential damages to or claims against
a party during any notice period), may terminate this Agreement without further
notice after expiration of any additional time to cure the default as provided
in the notice to the defaulting party.

                                       -9-

<PAGE>   10

        10.3 TERMINATION FOR GOVERNMENTAL REASONS. AT&T may terminate this
Agreement immediately and without penalty upon written notice to Customer if the
Federal Communications Commission, any other regulatory agency, legislative
body, or court promulgates any rule, regulation, judgment or order that
prohibits or substantially impedes (in effect or application) AT&T from
fulfilling its obligations hereunder. AT&T will notify Customer promptly
following AT&T's determination that an event permitting termination under this
Section has occurred.

        10.4 SURVIVAL. Any and all provisions of this Agreement that may
reasonably be interpreted or construed as surviving termination or which may be
necessary or convenient for a party to effectively enforce the terms of this
Agreement will survive the termination of this Agreement.

        10.5 PAYMENT UPON TERMINATION. Upon termination of this Agreement for
any reason, all amounts owing to AT&T hereunder will become due and payable and
AT&T reserves the right to offset or deduct any amounts due from Customer
against security deposits or other funds due to Customer.

SECTION 11. FORCE MAJEURE

        Neither party will be liable for any loss, damage, cost, delay or
failure to perform resulting from causes beyond its reasonable control
including, but not limited to, acts of God, fires, floods, earthquakes, strikes,
insurrections, governmental orders, riots, lightning or storms, or delays of
suppliers or subcontractors for the same causes.

SECTION 12. INDEMNIFICATION AND INSURANCE

        12.1 INDEMNITY. Customer and AT&T each hereby agree to defend,
indemnify, and hold harmless each other and each other's Affiliates, and their
former, current, and future officers, directors, employees, agents, successors,
and assigns, from and against any claims, costs, and expenses, including
punitive damages, court costs, and reasonable attorneys' and expert witness'
fees before and at trial and on appeal (collectively, "Claims"), arising from a
breach of this agreement by or any conduct in connection with this Agreement by
the indemnifying party (including such party's Affiliates, and their officers,
directors, employees, agents, and contractors). Customer further agrees to
defend, indemnify, and hold harmless AT&T, its Affiliates, and their former,
current, and future officers, directors, employees, agents, successors, and
assigns, from and against any Claims of End Users. Notwithstanding the
foregoing, the obligations of both Customer and AT&T to defend, indemnify, and
hold harmless shall not apply to the extent such claims result from the other
party's negligence or willful misconduct.

        Within ten days after being notified of any Claims to which these
indemnification obligations may apply, the party receiving such notice shall
notify the party from whom the indemnification is sought (the "Indemnifying
Party"), and shall give reasonable opportunity to the Indemnifying Party to
defend the claim at its own expense and with counsel of its own selection;
provided, however, that the party seeking indemnification shall at all times
have the right to participate fully, at its own expense, in the defense of and
to approve any settlement of the Claims.

        If the Indemnifying Party, within 30 days after notice, shall fail to
accept defense of the Claims, then the party seeking indemnification shall have
the right, but not the obligation, to undertake the defense of, and to
compromise or settle (exercising reasonable business judgment), the Claims on

                                      -10-

<PAGE>   11

behalf, for the account, and at the risk of the Indemnifying Party. If the
Claims cannot by their nature be defended solely by one party, the other party
shall make available all information and assistance that may reasonably be
requested, regardless of any obligations to indemnify hereunder.

        12.2 INSURANCE.

        Customer shall keep in full force and effect a policy of public
liability, personal injury, property damage, and contractual liability insurance
with respect to the business operated by Customer, which insurance shall cover
each occurrence in an amount not less than $1,000,000 and shall cover property
damage in an amount not less than $500,000.00. Such policy or policies shall
name AT&T as an additional insured and shall be procured from an insurance
carrier reasonably acceptable to AT&T. Upon request, Customer shall furnish AT&T
with a certificate evidencing such insurance. Such insurance shall provide that
the insurer will not cancel, materially alter, or allow such insurance to expire
without first giving AT&T thirty (30) days prior written notice.

SECTION 13. NO WARRANTIES

        AT&T SUPPLIES A SERVICE, AND NOT GOODS. AT&T MAKES NO WARRANTIES,
EXPRESS OR IMPLIED, WITH RESPECT TO THE SERVICE OR THE PERFORMANCE OF ANY
OBLIGATIONS HEREUNDER INCLUDING, WITHOUT LIMITATION, WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. ALL SUCH WARRANTIES ARE
EXPRESSLY EXCLUDED. AT&T IS NOT THE MANUFACTURER OF ANY CUSTOMER EQUIPMENT AND
MAKES NO WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT THERETO. TO THE EXTENT
AT&T PROVIDES ACCESS TO INFORMATION PROVIDED BY OTHER SOURCES, AT&T ACCEPTS NO
LIABILITY FOR AND MAKES NO WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE
CONTENT THEREOF. CUSTOMER HAS NOT RELIED ON AND WILL NOT CLAIM THAT IT IS
ENTITLED TO THE BENEFITS OF ANY REPRESENTATIONS, PROMISES, DESCRIPTION OF
SERVICES OR OTHER STATEMENT NOT SPECIFICALLY SET FORTH IN THIS AGREEMENT.

SECTION 14. LIMITATION OF LIABILITY

        14.1 NO CONSEQUENTIAL DAMAGES. NEITHER PARTY WILL BE LIABLE TO THE OTHER
(OR ITS END USERS, CUSTOMERS OR ANY THIRD PARTY) FOR ANY INDIRECT, INCIDENTAL OR
CONSEQUENTIAL DAMAGES ARISING OUT OF SUCH PARTY'S FAILURE TO PERFORM UNDER THIS
AGREEMENT. NOTHING IN THIS SECTION 14.1 WILL LIMIT A PARTY'S OBLIGATION TO FULLY
INDEMNIFY THE OTHER UNDER SECTION 12 FOR ACTIONS BROUGHT BY THE INDEMNIFYING
PARTY'S CUSTOMERS, END USERS OR BY ANY THIRD-PARTY, EVEN IF SUCH ACTIONS INCLUDE
CLAIMS FOR INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES.

        14.2 LIMITATION OF ACTIONS. EXCEPT FOR ACTIONS ARISING IN CONNECTION
WITH SECTION 12, NEITHER PARTY MAY BRING A LEGAL ACTION WITH RESPECT TO THIS
AGREEMENT MORE THAN TWENTY-FOUR (24) MONTHS AFTER THE CAUSE OF ACTION ACCRUES.

                                      -11-

<PAGE>   12

        14.3 LIABILITY CAP. EXCEPT FOR LIABILITIES ARISING UNDER SECTION 12, THE
AGGREGATE LIABILITY OF AT&T FOR CLAIMS RELATING TO THIS AGREEMENT, WHETHER FOR
BREACH OR IN TORT, WITH RESPECT TO CUSTOMER, END USERS, OR OTHER USERS OF
SERVICE OR FACILITIES, WILL NOT EXCEED THE AMOUNT PAID BY CUSTOMER TO AT&T IN
THE TWO MONTH PERIOD PRECEDING THE DATE THE CLAIM AROSE.

        14.4 PARTY. FOR THE PURPOSES OF THIS SECTION 14, "PARTY" MEANS THE
PARTY, ITS SUBSIDIARIES AND AFFILIATES AND THEIR RESPECTIVE OWNERS DIRECTORS,
OFFICERS, EMPLOYEES, AGENTS, REPRESENTATIVES, SUBCONTRACTORS AND SUPPLIERS.

        14.5 SECURITY. ALTHOUGH THE LAW GENERALLY PROHIBITS THIRD PARTIES FROM
MONITORING CELLULAR TRANSMISSIONS, AT&T CANNOT GUARANTY THE SECURITY OF DATA
TRANSMISSIONS. AT&T SHALL NOT BE LIABLE FOR ANY LACK OF SECURITY RELATING IN ANY
WAY TO USE OF THE SERVICE OR CUSTOMERS OR ITS END USERS DATA TRANSMISSIONS.
CUSTOMER AGREES THAT AT&T SHALL NOT BE LIABLE FOR DISCLOSURES AS A RESULT OF USE
OF THE SERVICE.

SECTION 15. CONFIDENTIALITY

        15.1 CONFIDENTIAL INFORMATION. During the term of this Agreement either
party may (but shall not be obligated to) disclose to the other information
which is considered proprietary or confidential by the disclosing party. Without
the disclosing party's specific prior written consent, disclosure shall not be
made to a third party (including but not limited to End Users) of any
information which is designated confidential or proprietary and which is
supplied by one party to the other party; and which information is not otherwise
generally available to the public or is not already known to the other party;
provided, however, either party may disclose such information in compliance with
court processes or similar agency requirements if the other party has been given
ten days prior written notice of the proposed disclosure or as much notice as is
reasonably possible if the situation does not permit such ten (10) day notice.
The parties agree that equitable relief is available for any breach or
threatened breach of this Section 15.

        15.2 ADDITIONAL PROTECTION OF CONFIDENTIAL INFORMATION. In the
performance of this Agreement, AT&T's Affiliates, officers, directors, agents
and employees may come into possession of information about Customer's End
Users, including but not limited to Numbers and usage or other forms of
identification of End Users. Neither AT&T nor any person or entity obtaining
such information by or through AT&T may use any such information except as
required to provide Service to Customer under this Agreement. However, any
information independently developed by AT&T which includes End User data may be
used by AT&T at its sole discretion. Such information shall be treated as
Customer proprietary information pursuant to Section 15.1 above.

SECTION 16. NOTICES

        All notices, consents, approvals and other communications required or
permitted to be given or made hereunder (a "notice") will be in writing and will
be delivered (i) personally (if to a corporation, to an officer; if to a
partnership, to a partner; if to a limited liability company, to a member or
manager); (ii) by private overnight courier; (iii) by facsimile transmission; or
(iv) by registered or

                                      -12-

<PAGE>   13

certified mail, sent to the recipient's address or facsimile telephone number
and attention of the individual as set forth following the signature lines
hereto, or to the registered agent of the recipient in the recipient's state of
incorporation or formation, or such other address or facsimile telephone number
or individual as may be specified by notice. All notices will be deemed to have
been given on (i) the date of receipt if delivered personally or by private
overnight courier; (ii) the date of transmission with confirmation of successful
transmission by the sender's equipment if transmitted by facsimile transmission;
or (iii) the third day following posting if transmitted by registered or
certified mail. Any notice received after 5:00 p.m. local time in the city and
state where delivered shall be deemed to have been made on the next business
day.

SECTION 17. ASSIGNMENT

        Except as provided in this Section, neither party may assign or transfer
this Agreement, or its rights or obligations hereunder, without the prior
written consent of the other party. Either party may assign this Agreement,
without the other's consent, to (i) any Affiliate of the assignor, or (ii) any
person or entity that acquires the assignor or substantially all of the
assignor's business through any merger, consolidation or stock or asset
purchase; provided that the assignee agrees in writing to be bound by the
provisions of this Agreement. In addition, AT&T may assign certain of its rights
and obligations under this Agreement without Customer's consent.

SECTION 18. NO AGENCY

        AT&T and Customer are independent contracting parties. This Agreement
does not create any partnership, joint venture or agency relationship between
the parties.

SECTION 19. MARKS

        19.1 Customer recognizes the right, title and interest of AT&T and its
respective Affiliates in and to all service marks, trademarks and trade names
used by any of them in connection with the Service (the "Marks"). Customer
agrees not to engage in any activities or commit any acts, directly or
indirectly, which may contest, dispute, or otherwise impair such right, title,
and interest of AT&T and its respective Affiliates therein. Customer will not
gain any property rights to the Marks by virtue of this Agreement and will not
use any Marks without AT&T's prior written consent.

        19.2 AT&T recognizes the right, title and interest of Customer and its
respective Affiliates in and to all service marks, trademarks and trade names
used by any of them in connection with the Service (the "Customer Marks"). AT&T
agrees not to engage in any activities or commit any acts, directly or
indirectly, which may contest, dispute, or otherwise impair such right, title,
and interest of Customer and its respective Affiliates therein. AT&T will not
gain any rights to the Customer Marks by virtue of this Agreement and will not
use any Customer Marks without Customer's prior written consent.

        19.3 Neither party will engage in any activity that may be harmful to
the other party's goodwill or may reflect unfavorably on its marks. This
prohibition includes, without limitation, the commission of any unfair trade
practice, the publication of any false, misleading or deceptive advertising, or
the commission of any fraud or misrepresentation.

                                      -13-

<PAGE>   14

        19.4 All advertising and promotional activities conducted by Customer
will be completely factual and ethical, and Customer shall be solely responsible
for the content thereof, whether or not reviewed by Company.

SECTION 20. ABUSE; INTERFERENCE

        20.1 ABUSE OR FRAUDULENT USE. Service to a Number may be restricted
according to procedures set forth in this Section 20 if there is abuse or
fraudulent use thereof. Abuse and fraudulent use of Service include, but are not
limited to:

               (i) Attempting or assisting another to access, alter, or
interfere with the communications of and/or information about another wireless
customer;

               (ii) Tampering with or making an unauthorized connection with any
AT&T facilities;

               (iii) Subscription Fraud;

               (iv) Using Service in such a manner so as to interfere
unreasonably with the use of Service by one or more other wireless customers or
End Users or to interfere unreasonably with AT&T's ability to provide Service;

               (v) Using Service to convey information which is obscene,
salacious, prurient, or unlawful; and

               (vi) Unauthorized Access.

        Customer agrees to make good faith efforts to minimize abuse or
fraudulent use as described above, to promptly report to AT&T any such abuse or
fraudulent use of which Customer becomes aware, and to cooperate in any
investigation or prosecution initiated by AT&T.

        20.2 CANCELLATION OF SERVICE TO END USER. AT&T may require Customer to
cancel the right to market or use Service by any of its agents or End Users
abusing or fraudulently marketing or using Service. However, if Customer has
requested advance notice of cancellation as provided in AT&T's procedures, AT&T
will not cancel Service until receipt of Customer's notice. For so long as AT&T
acts in good faith under this Section, Customer shall indemnify and hold AT&T
harmless as set forth in Section 12.1 against any Claims arising therefrom.

        20.3 LIABILITY FOR ABUSE OR FRAUDULENT USAGE. Customer shall be liable
for charges or other costs or damages resulting from abuse or fraudulent use as
described below.

               20.3.1 Customer shall have full liability for charges, costs or
damages resulting from Subscriber fraud, or from Customer or any of Customer's
employees, agents or End Users, either negligently or intentionally facilitating
the abuse or fraudulent use which shall include, without limitation, any failure
to give prompt notice of suspected abuse or fraudulent use based on information
available to Customer.

               20.3.2 If at any time AT&T or Customer reasonably suspects that
any Number(s) may be, has been, or is being used to abuse or fraudulently obtain
use of Service, and AT&T is permitted to terminate Service to that Number(s)
immediately upon AT&T's discovery and without prior notice to Customer, Customer
shall have no liability for abuse or fraudulent use charges, costs or damages
incurred after AT&T's discovery, provided Customer has not asked for notice
pursuant to Section

                                      -14-

<PAGE>   15

20.3.3 AT&T shall use reasonable efforts to provide prompt subsequent notice of
termination of Service to Customer during business hours.

               20.3.3 Customer may notify AT&T in writing that it elects to
receive advance notice of the cessation of Service to Numbers as the result of
suspicions of abuse or fraudulent use. In such case, commencing at the time AT&T
determines, or Customer claims it suspects, that a Number may be, has been, or
is being used for abuse or fraudulent use, Customer shall bear full liability
for any further usage of the Number until one (1) hour after the Customer
notifies AT&T of its request to terminate Service with respect to such Number.

               20.3.4 In the event Customer determines that charges, costs or
damages on an invoice are the result of Unauthorized Access which was not
previously discovered by the parties, Customer shall not be liable for such
Unauthorized Access if Customer provides AT&T with clear and convincing evidence
of the Unauthorized Access, such as: (i) call detail information for the End
User's account; and (ii) a statement by Customer that it has thoroughly
investigated the alleged Unauthorized Access and that it will cooperate
reasonably in obtaining affidavits or other required documentation required for
any prosecution of the person fraudulently using the Service. AT&T may require
affidavits prior to issuing any credits if Customer does not comply with this
Section. Such investigation by Customer should include contacting or attempting
to contact a sufficient number of recipients of calls at issue of each End User
so as to establish a reasonable basis for inferring that the remainder of such
calls were the result of unauthorized access.

SECTION 21. ARBITRATION; JURISDICTION; GOVERNING LAW

        21.1 STATE LAW. The validity, construction, and performance of this
agreement shall be governed by and interpreted in accordance with the laws of
the state of Washington.

        21.2 COURT PROCEEDINGS/VENUE. The parties hereby consent to the sole and
exclusive jurisdiction and venue of the state and federal courts located in King
County, Washington.

        21.3 ATTORNEY'S FEES. In the event an action is commenced by either
party to enforce the terms of this Agreement, the substantially prevailing party
in such action shall be entitled to its reasonable costs and attorneys' and
expert witness' fees incurred therein through appeal. For purposes of this
Section, the efforts of in-house attorneys and their staff shall be valued at
rates prevailing in the market for private practitioners.

SECTION 22. GENERAL

        22.1 WAIVER. The waiver of any provision or default of this Agreement
will not constitute a waiver of any other provision or default. If any provision
of this Agreement is deemed to be unenforceable, the remaining provisions will
remain in full force and effect.

        22.2 SEVERABILITY. Should any part of this Agreement for any reason be
declared invalid by court order or by any regulatory agency, such order shall
not affect the validity of any remaining portion; and the remaining portion of
the Agreement shall continue in full force and effect unless such order
materially alters the nature of the obligations of either party hereto. In such
event, this Agreement shall immediately terminate.

        22.3 ENTIRE AGREEMENT. This Agreement, together with its attached
Exhibits, sets forth the entire agreement between the parties concerning the
subject matter hereof. Any amendment or

                                      -15-

<PAGE>   16

modification to this Agreement will be effective only if made in writing and
signed by both parties. Provided, however, this Agreement shall be deemed
automatically amended to the extent inconsistent with any federal, state or
local law, regulation, court order or tariff required to be filed by AT&T.

        22.4 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall constitute an original agreement, but all of
which together shall constitute one and the same instrument.

        22.5 COMPLIANCE WITH LAWS. AT&T and Customer shall at all times comply
in all material respects with all laws, rules and regulations applicable to the
performance of this Agreement. In the event that the Service is or becomes
subject to any Federal, state, or local regulation or tariff, then those
provisions shall be deemed amended immediately as may be required under such
regulation or tariff.

        22.6 AMENDMENTS. This Agreement may be amended only by a written
instrument executed by both parties.

        22.7 PREPARATION OF AGREEMENT. This Agreement shall not be construed
more strongly against any party regardless of who is responsible for its
preparation or drafting.

SECTION 23. INDEPENDENT INVESTIGATION

        AT&T and Customer acknowledge they have read this Agreement and
understand and accept the terms, conditions, and covenants contained herein.
Customer acknowledges and understands that AT&T may at any time also be engaged
directly or indirectly through other resellers and through dealers or outlets of
any kind, in soliciting potential Subscribers for the Service or other services
or products. Customer acknowledges that it understands that it will not obtain
any exclusive rights under this Agreement, either with respect to a ---
territory or otherwise Customer also acknowledges and understands that AT&T may
sell the Service to others who may resell it. Customer has independently
investigated the business of providing wireless data service and the
profitability (if any) and risks thereof and is not relying on any
representation, guarantee, or statement of AT&T other than as set forth in this
Agreement.

        Customer also acknowledges that AT&T does not represent: (i) the amount
of profits, net or gross, that Customer can expect from its operations under
this Agreement or that Customer will derive income from the sale of AT&T's
services under this Agreement; (ii) that AT&T will refund any payments made by
Customer to AT&T under this Agreement except as otherwise provided herein;(iii)
AT&T will provide a sales or marketing program that will enable Customer to
derive income under this agreement.

        Customer further acknowledges that, except as specifically set forth in
this Agreement, AT&T does not make any representations regarding: (i) the
quantity or quality of service to be sold by Customer; (ii) the provision by
AT&T to Customer of training and management assistance; (iii) the size (other
than the geographic area), choice, potential, or demographic nature of the area
in which AT&T's service is available or the number of other dealers or reselling
customers that are or may in the future operate in that area; (iv) the
termination, transfer, or renewal provisions of this Agreement other than as set
forth in the Agreement; or (v) the sponsorship or participation of a primary
marketer of trademark products or services in Customer's operations under this
Agreement other than as may be set forth in this Agreement.

                                      -16-

<PAGE>   17

        AT&T acknowledges that Customer may at any time solicit potential
customers for wireless data service provided by Customer directly or indirectly
through business relationships with entities competing with AT&T.

CUSTOMER: OmniSky Corp              AT&T WIRELESS SERVICES NATIONAL ACCOUNTS,
                                    INC., AS AGENT FOR CERTAIN OF ITS AFFILIATES

By /s/ Signature Illegible          By /s/ Signature Illegible
Its:                                Its: SR. VP

                                      -17-

<PAGE>   18

                                    EXHIBIT A

                                   APPLICATION

Customer will offer end-users CDPD service on handheld devices in order to
access the internet and to provide certain internet-based content and
applications. Through integration and customization Customer will offer the user
a simple integrated solution from a single source that provides hardware,
service and support.

                                      -18-

<PAGE>   19

                                    EXHIBIT B

                                  SERVICE AREA

Customer can receive Service in the following MSAs:

ARIZONA:              Phoenix*, Tucson*

CALIFORNIA:           Fresno, Sacramento, San Diego*, San Francisco*, San Jose*,
                      Bakersfield*

COLORADO:             Denver

CONNECTICUT:          Bridgeport*, Hartford*, New Haven*, New London/Norwich*

DELAWARE:             Wilmington*, Dover*

FLORIDA:              Orlando, Tampa/St. Petersburg, West Palm Beach/Boca Raton

                      Miami/Ft. Lauderdale, Lakeland/Winter Haven*

ILLINOIS:             Chicago*

INDIANA:              Gary*, Indianapolis*

KENTUCKY:             Louisville*

MARYLAND:             Baltimore*, Frederick*

MASSACHUSETTS:        Boston*, Worcester*

MICHIGAN:             Detroit*

MINNESOTA:            Minneapolis/St. Paul

MISSOURI:             St. Louis*

NEVADA:               Las Vegas, Reno

NEW HAMPSHIRE:        Manchester*

NEW JERSEY:           Atlantic City*, Trenton*, Long Branch*, New Brunswick*,
                      Ocean City*, Vineland

NEW MEXICO:           Albuquerque*, Las Cruces*

NEW YORK:             New York

NORTH CAROLINA:       Charlotte*, Raleigh*

OHIO:                 Cincinnati*, Columbus*, Dayton*, Cleveland*, Akron*,
                      Canton*

<PAGE>   20

OKLAHOMA:             Oklahoma City, Tulsa

OREGON:               Portland

                                      -19-

<PAGE>   21

PENNSYLVANIA:         Pittsburgh, Allentown*, Philadelphia*

SOUTH CAROLINA:       Columbia*, Greenville*

TENNESSEE:            Memphis*, Nashville*

TEXAS:                Austin, Dallas/Ft. Worth, San Antonio, El Paso*, Houston*,
                      Galveston*

UTAH:                 Salt Lake City

VIRGINIA:             Newport News*, Richmond*, Norfolk*

WASHINGTON:           Seattle/Everett, Tacoma

WASHINGTON D.C.*

*Non-AT&T Markets.

                                      -20-

<PAGE>   22

                                    EXHIBIT C

                                  SERVICE PLAN

                                  DEFINITIONS:

AT&T MARKETS: Markets where AT&T provides Service directly, as indicated on
Exhibit B.

NON AT&T MARKETS: Markets where Service is available through AT&T's intercarrier
agreements, as indicated on Exhibit B.

                                  SERVICE PLAN:

MONTHLY ACCESS FEE:

Customer will pay a Monthly Access Fee for each Number activated on AT&T's
Service. This fee is pro-rated on a daily basis for periods of less than one
month in which a Number is active. The amount of the fee varies based upon the
number of End Users active on AT&T's Service as of the end of the month. At all
levels, the first 1000 kilobytes of Service ("Included Kilobytes") in any month
are included. Unused monthly Included Kilobytes cannot be carried over to any
subsequent month. Included Kilobytes are calculated on an aggregate basis across
all End Users active on AT&T's Service as of the end of the month.

<TABLE>
<CAPTION>
        Number of Active End Users                    Monthly Fee Per End User
        --------------------------                    ------------------------
<S>                                                   <C>
             0 - 10,000                                          $26.50
             10,001 - 30,000                                     $26.50
             30,001 - 50,000                                     $22.00
             50,001 - 100,000                                    $17.50
             100,001 +                                           $14.00
</TABLE>

USAGE CHARGES:

Usage charges are assessed on a per kilobyte basis after the first 1000 in any
month and varies based upon the number of End Users active on AT&T's Service as
of the end of the month.

                                      -21-

<PAGE>   23

<TABLE>
<CAPTION>
        Number of Active End Users                  Usage Charge per Kilobyte
        --------------------------                  -------------------------
<S>                                                 <C>
                   0 - 10,000                       AT&T Markets:     $.03
                                                    Non-AT&T Markets: $.05

               10,001-30,000                        AT&T Markets:     $.03
                                                    Non-AT&T Markets: $.05

              30,001 - 50,000                       AT&T Markets:     $.025
                                                    Non-AT&T Markets: $.05

              50,001 - 100,000                      AT&T Markets:     $.02
                                                    Non-AT&T Markets: $.05

              100,001 +                             AT&T Markets:     $.015
                                                    Non-AT&T Markets: $.05
</TABLE>

CHARGE CAP:

During the period from November 15th 1999 to April 30th 2000 the total aggregate
of usage charges and access fees shall not exceed $50 per User per month for
the first 5000 Users. E.g.: If there are 3,000 subscribers signed up in a given
month charges for that month excluding assignment fees, shall not exceed
$150,000. Additional Users beyond the first 5000 will be charged as stated in
the table above.

Customer will provide AT&T with 75 accounts, at no charge, to be used for
employee and demonstration purposes. AT&T will provide the IP addresses and
Wireless Data Units to be used with these accounts.

ASSIGNMENT FEE: A one-time fee will be charged for every new Number at the time
activated by Customer. This fee varies based upon the number of End Users active
on AT&T's Service as of the end of the month.

<TABLE>
<CAPTION>
        Number of Active End Users                        Assignment Fee
        --------------------------                        --------------
<S>                                                       <C>
                    0 - 10,000                                 $5.00
               10,001 - 30,000                                 $5.00
               30,001 - 50,000                                 $3.00
               50,001 - 100,000                                $2.50
               100,001 +                                       $0.00
</TABLE>

CANCELLATION FEE: No cancellation fee will be assessed upon deactivation of
Numbers.

BILLING GUIDELINES:

                                      -22-

<PAGE>   24

        1.      General. AT&T will bill Customer on a monthly basis for Service
                furnished under this Agreement, including regular monthly
                Service charges and usage charges for all data transmissions
                processed through the Number. Usage charges include charges on a
                per kilobyte basis for transmissions that are sent or received
                by Wireless Data Units programmed with a Number assigned to
                Customer. Usage charges may also include charges for additional
                services offered by AT&T which Customer may subscribe to at
                rates determined by AT&T from time to time.

        2.      Access Charges. Access charges are billed monthly in arrears.
                Usage charges are billed monthly in arrears. If AT&T agrees to
                provide Service features to Customer, AT&T reserves the right to
                charge a reasonable fee for adding or deleting Service features.

        3.      Measurement. The measurement of a transmission is in kilobytes.

        4.      Discounts. All volume and off peak discounts will be applied to
                Customer's Account for the current billing cycle.

        5.      Additional Charges: State surcharges may be charged to Customer
                in addition to the charges under all Rate Plans.

        6.      Loss of Registration. Registration may be "lost" (i.e.,
                involuntarily disconnected) for a variety of reasons, including
                atmospheric conditions, topography, weak batteries, system over
                capacity, movement outside a service area, and gaps in coverage
                within a service area. Loss of registration may result in
                retransmissions and additional usage charges.

MINIMUM NUMBER REQUIREMENTS: Customer shall maintain, within nine months of the
date of this Agreement, a minimum of [***] active Numbers.

FAILURE TO MEET MINIMUM NUMBER REQUIREMENTS: In the event Customer fails to
achieve the minimum Number requirements at any time after the dates set forth in
this Exhibit C, Customer shall pay to AT&T in addition to all other amounts due
the difference between Customer's actual Numbers and the required minimum
Numbers times $[***] for each month in which Customer fails to achieve such
minimum. Continued failure to meet Minimum Number Requirements shall give rise
to AT&T's right to terminate under Section 10.2

[***] Confidential treatment has been requested for the bracketed portions. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

                                      -23-

<PAGE>   25

                                    EXHIBIT D

                              END USER DISCLOSURES

1. [END USER] EXPRESSLY UNDERSTANDS AND AGREES THAT IT HAS NO CONTRACTUAL
RELATIONSHIP WHATSOEVER WITH THE UNDERLYING WIRELESS SERVICE CARRIER AND THAT
[END USER] IS NOT A THIRD PARTY BENEFICIARY OF ANY AGREEMENT BETWEEN [CUSTOMER]
AND UNDERLYING CARRIER. IN ADDITION, [END USER] EXPRESSLY UNDERSTANDS AND AGREES
THAT THE UNDERLYING CARRIER SHALL HAVE NO LEGAL, EQUITABLE, OR OTHER LIABILITY
OF ANY KIND TO [END USER]. IN ANY EVENT, REGARDLESS OF THE FORM OF THE ACTION,
WHETHER FOR BREACH OF CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY IN TORT
OR OTHERWISE, [END USER's] EXCLUSIVE REMEDY AND THE TOTAL LIABILITY OF THE
UNDERLYING CARRIER ARISING IN ANY WAY IN CONNECTION WITH THIS AGREEMENT, FOR ANY
CAUSE WHATSOEVER, INCLUDING BUT NOT LIMITED TO ANY FAILURE OR DISRUPTION OF
SERVICE PROVIDED HEREUNDER, IS LIMITED TO PAYMENT OF DAMAGES IN AN AMOUNT NOT TO
EXCEED THE AMOUNT PAID BY [CUSTOMER] TO [THE UNDERLYING CARRIER] FOR THE
SERVICES DURING THE TWO MONTH PERIOD PRECEDING THE DATE THE CLAIM AROSE.

2. [END USER] SHALL INDEMNIFY AND HOLD HARMLESS THE UNDERLYING WIRELESS SERVICE
CARRIER SUPPLYING SERVICES TO [CUSTOMER] AND ITS OFFICERS, EMPLOYEES, AND AGENTS
AGAINST ANY AN ALL CLAIMS, INCLUDING WITHOUT LIMITATION CLAIMS FOR LIBEL,
SLANDER, OR ANY PROPERTY DAMAGE, PERSONAL INJURY OR DEATH, ARISING IN ANY WAY
DIRECTLY OR INDIRECTLY IN CONNECTION WITH THIS AGREEMENT OR THE USE, FAILURE TO
USE, OR INABILITY TO USE THE NUMBER EXCEPT WHERE THE CLAIMS RESULT FROM THE
UNDERLYING CARRIER'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. THIS INDEMNITY
SHALL SURVIVE THE TERMINATION OF THE AGREEMENT.

3. [END USER] HAS NO PROPERTY RIGHT IN ANY NUMBER ASSIGNED TO IT, AND
UNDERSTANDS THAT ANY SUCH NUMBER CAN BE CHANGED FROM TIME TO TIME.

4. [END USER] UNDERSTANDS THAT [CUSTOMER] AND THE UNDERLYING CARRIER CANNOT
GUARANTY THE SECURITY OF DATA TRANSMISSIONS, AND WILL NOT BE LIABLE FOR ANY LACK
OF SECURITY RELATING TO THE USE OF THE SERVICES OR THE TRANSMISSION OF DATA.

                                      -24-

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