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 [***]" means the [***] modules of the Palm OS described on
Exhibit A hereto and all other [***] 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

[***] 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.

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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) [***], worldwide license to use, reproduce and distribute the Palm OS,
[***] 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), [***] worldwide license to (i) [***], use and reproduce the [***] for the
sole purpose of development of Licensee Client Software and (ii) compile the
[***] 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), [***] 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

[***] 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.

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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, [***] 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

[***] 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.

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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 [***] 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
[***] first enters into an agreement with Palm for the protection of Palm's
rights in the Palm Software. If [***] 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.

[***] 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.

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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 [***] 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 [***] 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 [***]

               (a) Licensee acknowledges that Palm has informed Licensee that
the Palm Software [***] Licensee further acknowledges that the [***] is subject
to [***] imposed by the United States and other governments, and that [***] The
parties agree that [***] Such [***] shall be due and payable to Palm regardless
of whether Licensee derives any revenue from [***]

               (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 [***] for the payment of royalties for
the Licensee Client Software and/or the Elaine Software, respectively. Upon
entering into any such

[***] 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.

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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 [***] 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

[***] 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.

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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
[***] for such Update that corresponds to the equivalent functionality of the
[***] previously provided to Licensee hereunder, which shall be deemed part of
the [***] 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 [***] for the Web Clipping Application or the
Update, as appropriate, which shall be deemed part of the [***] 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

[***] 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.

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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 [***].
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.

[***] 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.

                                                                              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

[***]

[***] 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>   24

[***]

[***] 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.

                                                                              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

[***]

[***] 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.

                                                                              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 10.13

                                SUPPLY AGREEMENT

This Supply Agreement ("Agreement") is entered by and between TELLUS TECHNOLOGY
INCORPORATED ("Tellus"), having its principal place of business at 40990
Encyclopedia Circle, Fremont, California 94538-2470, United States of America,
and OMNISKY, INC. ("OmniSky"), having its principal offices at 1001 Elwell
Court, Palo Alto, CA 94303, United States of America. Tellus and OmniSky
collectively may be referred to herein as the "Parties".

This Agreement consists of the Terms & Conditions below and any Appendices as
may be attached.

RECITALS

WHEREAS Tellus is developing a CDPD [***] for use with the [***] designated the
Tellus V230C and hereinafter referred to as the "Product";

WHEREAS OmniSky wishes to have manufactured and supplied the Product developed
by Tellus with the assistance of OmniSky; and

WHEREAS OmniSky wishes to have manufactured and supply such Product to OmniSky.

AGREEMENT

In consideration of the above recitals, Tellus and OmniSky hereby agree that
upon signing of this Agreement, Tellus will supply the Product to OmniSky
according to the following terms and conditions:

ARTICLE 1. PRICING
--------------------------------------------------------------------------------

(a)    The Product shall be priced at $[***] per unit and shall be delivered
       prior to [***].

(b)    Prices are quoted FCA/FOB Tellus Dock, Fremont, CA. Price includes the
       Module, [***] of [***], rechargeable battery and a power cord. Additional
       memory is available and shall be priced at the time an order is placed.

ARTICLE 2. PRODUCT SUPPLY, PRODUCT ACCEPTANCE AND TERMINATION
--------------------------------------------------------------------------------

(a)    Tellus shall manufacture, or cause to have manufactured, the Product to
       the preliminary specifications included in Appendix 1 hereto which may be
       amended from time to time. The specifications will be finalized after
       delivery to Tellus of a Product acceptance letter by OmniSky.

(b)    In the event that OmniSky does not issue a Product acceptance letter
       after testing or arranging to have tested an engineering prototype of the
       Product against the Engineering Prototype Product Acceptance Test
       provided for in Appendix 2 hereto on or prior to July

[***] 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.

                                       1

<PAGE>   2
31, 2000 or such other date as the parties shall mutually agree, then this
Agreement shall immediately terminate.

ARTICLE 3  PURCHASE ORDERS, SHIPMENT, DELIVERY AND ACCEPTANCE
-------------------------------------------------------------------------------

     (a)  OmniSky shall place a purchase order for 25,000 units of Product
          within 3 days of signing this Agreement. Orders for the first 10,000
          units of Product are non-cancelable except as provided for in Article
          2(b). The remaining 15,000 units of Product may not be canceled within
          sixty (60) days prior to Tellus' committed delivery date. The
          anticipated delivery dates for the first 10,000 units of Product are
          prior to [***] and for the remaining 15,000 units of product are prior
          to [***].  Definitive delivery schedules will be determined after
          delivery of the Product acceptance letter by OmniSky.

     (b)  The purchase order shall contain the following information.

          i.   OmniSky's purchase order number;
          ii.  The quantity of Product ordered;
          iii. The unit and price applicable thereto;
          iv.  The destination address(es) for shipping the Product;
          v.   Delivery schedule and shipping instructions.

     (c)  Deliveries are not permitted to be rescheduled less than sixty (60)
          days prior to a Tellus' committed shipment date and are not permitted
          to be rescheduled in quantities greater than 20% of any scheduled
          delivery. Orders may not be rescheduled for delivery more than sixty
          (60) days beyond the original delivery date, and may not be
          rescheduled more than once.

     (d)  In the event OmniSky cancels the purchase of any units of product more
          than 60 days prior to the committed delivery date, OmniSky shall be
          liable for penalties as follows:  between 60 and 120 days, 50% of the
          purchase order dollar value of the units of product cancelled; and 120
          days or greater, 30% of the purchase order dollar value for the units
          of product cancelled.

     (e)  All Product purchased under this Agreement shall be shipped from
          Tellus' Dock in Fremont, CA and shall be shipped to the destination(s)
          specified by OmniSky on OmniSky's account, so as to be received,
          allowing for normal transit times, in accordance with the delivery
          schedule specified on the corresponding Purchase Order.

     (f)  OmniSky shall have five (5) business days after delivery to accept or
          reject any delivery. A shipment will be deemed "Accepted" when less
          than 2% of the units of Product fail the Delivery Acceptance Test that
          shall be mutually agreed to by the Parties in conjunction with the
          finalization of the Product Specifications. A shipment shall be deemed
          "Rejected" when 2% or more of the units of Product fail the Delivery
          Acceptance Test. In that event, Tellus shall take the necessary
          actions, at Tellus's sole expense and discretion, to remedy the
          identified problems and re-submit the shipment for acceptance testing.

[***] 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.

                                       2

<PAGE>   3
ARTICLE 4.     PAYMENTS
--------------------------------------------------------------------------------

     (a)  Payment for all Product purchased shall be as follows:

          i.   Payment for the first 10,000 units must be made by OmniSky
               immediately upon OmniSky's delivery of a Product acceptance
               letter to Tellus.

          ii.  Payment for the remaining 15,000 units shall be Net 30 days
               except otherwise described in this Agreement.

     (b)  Invoices issued to OmniSky by Tellus shall be in writing and shall
          contain the following information: OmniSky's purchase order number; a
          description of the Product shipped, including serial numbers; the
          quantity of Product shipped; and the unit and extended price
          applicable thereto.

     (c)  Any payments due hereunder are to be made in U.S. dollars. For any
          payment made more than ten (10) days after the due date, a late charge
          shall be imposed at an interest rate equal to the lesser of one and
          one half percent (1.5%) per month. The late charge will accrue from
          the due date of such payment until the date of actual payment.

     (d)  All payments shall be net of all taxes, governmental withholding or
          other offsets.

     (e)  Payments shall be made by write transfer to such bank in the United
          States as Tellus may designate in writing.

ARTICLE 5   WARRANTY AND PRODUCT LIABILITY
--------------------------------------------------------------------------------

     (a)  Tellus warrants that all Product will conform to the Specifications
          and be free from defects in material or workmanship for fourteen (14)
          months from the date of shipment to OmniSky. Claims for Product not
          complying with this warranty shall be submitted by OmniSky no later
          than fifteen (15) months from the date of delivery of the
          non-complying Product. Tellus' obligations, and OmniSky's sole remedy,
          under this warranty shall be for Tellus, at its option and expense, to
          promptly repair or replace non-complying Product, or pay OmniSky its
          costs of remedying such non-compliance. The shipment of non-complying
          Product by OmniSky to Tellus shall be at the expense of OmniSky, and
          the return shipment of repaired or replacement Product by Tellus to
          OmniSky under this Article 5(a) shall be at the expense of Tellus.
          Nevertheless, if the damage or malfunction is caused by the improper
          handling or operation of the end users or OmniSky, or is caused by any
          rework or material changes that have been performed by any other
          parties rather than Tellus or Tellus designees, then Tellus shall not
          be liable.

     (b)  No Defect Found (NDF) is herein defined as for those Product in any
          event that have been provided by Tellus to OmniSky and then been
          claimed by OmniSky or any end users as non-complying Product and
          returned to Tellus thereafter for repair or replacement but of

                                       3
<PAGE>   4
     which Tellus finds no defect. All the repair and replacement for NDF
     Product, including without limitation all relevant costs of transportation
     and documentation and all related engineering work and materials, shall be
     the responsibility of Tellus for the first 0.25% of aggregate shipments and
     shall be the responsibility of OmniSky for all NDF Product above 0.25% of
     aggregate shipments. In the event that OmniSky and Tellus, after testing
     all such NDF Product, disagree on such designation, then the Parties shall
     mutually agree on an independent third party to test all such disputed
     units and such independent third party's test results shall be accepted
     without challenge by the Parties.

(c)  During the term of this Agreement, Tellus shall maintain in force product
     liability insurance on the Product.

(d)  EXCEPT AS EXPRESSLY SET FORTH IN THIS ARTICLE 5, TELLUS MAKES NO
     WARRANTIES, EXPRESS OR IMPLIED, AND SPECIFICALLY DISCLAIMS ANY WARRANTIES
     OF MERCHANTABILITY, NONINFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE.

ARTICLE 6 ENGINEERING CHANGES; OUT OF WARRANT REPAIR
--------------------------------------------------------------------------------
(a)  Tellus agrees to repair any out-of-warranty Product that OmniSky may elect
     to have repaired by Tellus and which Tellus deems repairable for a period
     of at least one (1) year following the termination of this Agreement. The
     cost to OmniSky for such repair by Tellus shall be negotiated at the time
     of order placement but will not exceed the original price for the Product
     plus actual material cost required for the repair.

(b)  Any upgrades or engineering changes after the delivery of Product to
     OmniSky are the responsibility of OmniSky. Should these upgrades,
     engineering changes or rework be performed by Tellus upon the request of
     OmniSky, OmniSky shall bear the cost of transportation, documentation and
     all related engineering work and material necessary in accordance with
     Tellus' regular time and materials rates.

ARTICLE 7 INDEMNITIES
--------------------------------------------------------------------------------
(a)  INDEMNIFICATION BY TELLUS. Tellus shall defend, indemnify and hold harmless
     OmniSky and its officers, directors, employees, shareholders, customers,
     agents, successors and assigns from and against any and all loss, damage,
     settlement, costs or expense (including legal expenses), as incurred,
     resulting from, or arising out of (i) any breach of this Agreement by
     Tellus; and (ii) any claim, suit or proceeding brought against OmniSky
     which alleges that the Tellus Intellectual Property Rights and/or Tellus
     Know-How infringe upon, misappropriates or violates any patents,
     copyrights, trademarks or trade secret rights or other proprietary rights
     of persons, firms or entities who are not parties to this Agreement where
     such unlawful activity is completely independent of the Product. As a
     condition to such defense, OmniSky will provide Tellus with prompt written
     notice of the claim and permit Tellus to control the defense, settlement,
     adjustment or compromise of any such claim. OmniSky may employ counsel at
     its own expense to assist it with respect

                                       4
<PAGE>   5
     to any such claim; provided, however, that if such counsel is necessary
     because of a conflict of interest of either Tellus or its counsel or
     because Tellus does not assume control, Tellus will bear the expense of
     such counsel. OmniSky shall have no authority to settle any claim on behalf
     of Tellus.

(b)  Tellus shall have no obligation under subsection (a)(ii) above to the
     extent any claim of infringement or misappropriation results from: (i) use
     of the Product in combination with any other Product, end item, or
     subassembly if the infringement would not have occurred but for such
     combination; (ii) use or incorporation in the Product of any design,
     technique or specification furnished by OmniSky, if the infringement would
     not have occurred but for such incorporation or use; or (iii) any claim
     based on OmniSky's use of the Product as shipped after Tellus has informed
     the OmniSky of modifications or changes in the Product required to avoid
     such claims and offered to implement those modifications or changes, if
     such claim would have been avoided by implementation of Tellus'
     suggestions. Tellus shall not be liable hereunder for enhanced or punitive
     damages which could have been avoided or reduced by actions within the
     control of OmniSky.

(c)  THE FOREGOING PROVISIONS OF THIS ARTICLE 7(a) and 7(b) STATE THE ENTIRE
     LIABILITY AND OBLIGATIONS OF TELLUS AND THE EXCLUSIVE REMEDY OF OMNISKY AND
     ITS CUSTOMERS, WITH RESPECT TO ANY VIOLATION OR INFRINGEMENT OF PROPRIETARY
     RIGHTS, INCLUDING BUT NOT LIMITED TO ANY PATENT, COPYRIGHT, TRADEMARK, BY
     THE PRODUCT OR ANY PART THEREOF. TELLUS'S OBLIGATIONS UNDER THIS ARTICLE 7
     ARE SUBJECT TO THE LIMITATIONS SET FORTH IN ARTICLE 8.

(d)  INDEMNIFICATION BY OMNISKY. Omnisky shall defend, indemnify and hold
     harmless Tellus and its officers, directors, employees, shareholders,
     customers, agents, successors and assigns from and against any and all
     loss, damage, settlement, costs or expense (including legal expenses), as
     incurred, resulting from, or arising out of (i) any breach of this
     Agreement by OmniSky; and (ii) any claim, suit or proceeding brought
     against Tellus which alleges that the OmniSky Intellectual Property Rights
     and/or OmniSky Know-How infringe upon, misappropriates or violates any
     patents, copyrights, trademarks or trade secret rights or other proprietary
     rights of persons, firms or entities who are not parties to this Agreement
     where such unlawful activity is completely independent of the Product. As a
     condition to such defense and indemnification, Tellus will provide OmniSky
     with prompt written notice of the claim and permit OmniSky to control the
     defense, settlement, adjustment or compromise of any such claim. Tellus may
     employ counsel at its own expense to assist it with respect to any such
     claim; provided, however, that if such counsel is necessary because of a
     conflict of interest of either OmniSky or its counsel or because OmniSky
     does not assume control, OmniSky will bear the expense of such counsel.
     Tellus shall have no authority to settle any claim on behalf of OmniSky.

(e)  THE FOREGOING PROVISIONS OF THIS ARTICLE 7(d) and 7(e) STATE THE ENTIRE
     LIABILITY AND OBLIGATIONS OF OMNISKY AND THE EXCLUSIVE REMEDY OF TELLUS AND
     ITS CUSTOMERS, WITH RESPECT TO ANY VIOLATION OR INFRINGEMENT OF PROPRIETARY
     RIGHTS, INCLUDING BUT NOT LIMITED TO ANY PATENT, COPYRIGHT, TRADEMARK, BY
     THE PRODUCT

                                       5
<PAGE>   6
     OR ANY PART THEREOF. OMNISKY'S OBLIGATIONS UNDER THIS ARTICLE 7 ARE
     SUBJECT TO THE LIMITATIONS SET FORTH IN ARTICLE 8.

ARTICLE 8 LIMITATION OF LIABILITY AND EXCLUSION OF CERTAIN DAMAGES

(a)  IN NO EVENT SHALL TELLUS BE LIABLE FOR ANY INDIRECT, SPECIAL OR
     CONSEQUENTIAL DAMAGES OF ANY NATURE OR KIND WHATSOEVER, INCLUDING BUT NOT
     LIMITED TO, LOSS OF PROFITS, LOSS OF BUSINESS, OR COST OF PROCUREMENT OF
     SUBSTITUTE GOODS OR SERVICES, ARISING OUT OF OR RELATING TO THIS AGREEMENT
     OR THE PROVISION OF PRODUCT HEREUNDER, OR OMNISKY'S USE OR DISTRIBUTION
     THEREOF.

(b)  TELLUS' LIABILITY FOR DAMAGES HEREUNDER, INCLUDING ANY PAYMENTS MADE OR
     EXPENSES INCURRED, IF ANY SHALL NOT EXCEED IN THE AGGREGATE THE AMOUNTS
     PAID BY OMNISKY TO TELLUS HEREUNDER.

(c)  IN NO EVENT SHALL OMNISKY BE LIABLE FOR ANY INDIRECT, SPECIAL OR
     CONSEQUENTIAL DAMAGES OF ANY NATURE OR KIND WHATSOEVER, INCLUDING BUT NOT
     LIMITED TO, LOSS OF PROFITS, OR LOSS OF BUSINESS ARISING OUT OF OR RELATING
     TO THIS AGREEMENT.

ARTICLE 9 CONFIDENTIAL RELATIONSHIP

(a)  Tellus and OmniSky (on behalf of themselves and their respective officers,
     employees and agents) shall use all reasonable efforts to keep confidential
     all Confidential Information acquired from the other Party, whether prior
     to or during the term of this Agreement, except as disclosure or use of
     such information is expressly permitted by this Agreement or by a writing
     signed by the Parties hereto. The term "Confidential Information" shall
     include all licensed technology, the terms and conditions of this
     Agreement, and any other information, technical data, know-how or show-how
     relating to the Product and maintained in confidence by a Party and
     disclosed to the other Party hereunder. All such Confidential Information
     shall be designated in writing by the disclosing Party as "confidential" or
     "proprietary" or, if disclosed orally, shall be designated as Confidential
     Information in writing forwarded to the receiving Party by the disclosing
     Party within thirty (30) days of the date of oral disclosure.
     Notwithstanding the foregoing, Confidential Information does not include
     any such information, technical data or know-how which:

     (i)   is or becomes part of the public domain without violation of this
           Agreement:

     (ii)  is known and on record at a receiving party prior to disclosure by
           the disclosing party;

     (iii) is lawfully received from a third party without restriction; or

     (iv)  is developed by a receiving party completely independently and
           without use of the disclosing party's Confidential Information.

                                       6
<PAGE>   7
     Each Party agrees to maintain all written materials and comments relating
     to or containing Confidential Information obtained from the other Party
     (including all schematics sketches, drawings, reports and notes, and all
     copies and reproductions thereof) in confidence and to designate in writing
     the secret and confidential nature thereof and to use all necessary efforts
     to prevent the unauthorized use or reproduction thereof, including
     restriction of the disclosure to its employees of only such Confidential
     Information as is necessary to such employee's responsibilities in
     performing the acts required or contemplated by this Agreement.
     Notwithstanding the foregoing, with the prior written consent of the other
     Party either Party may disclose the existence of a vendor-customer
     relationship between the Parties, provided that such disclosing Party does
     not reveal the terms of this Agreement.

(b)  Each Party acknowledges that in the event it breaches any of the provisions
     of this Article 9, the other Party may be irreparably harmed and may not
     have an adequate remedy at law. In the event of any breach or threatened
     breach of this Article 9, each Party shall be entitled to injunctive relief
     to enforce its rights hereunder, without being required to post any bond or
     other property.

(c)  The obligations of the Parties under this Article 9 shall survive the term
     and termination of this Agreement for a period of five (5) years and shall
     remain in full force and effect regardless of the cause of any termination.

ARTICLE 10.    ADDITIONAL CLAUSES

(a)  Interpretation. This Agreement shall be governed and construed in
     accordance with the laws of the State of California in the United States of
     America, including the California Commercial Code.

(b)  Export Law. Both parties will comply with all import and export laws of the
     United States of America.

(c)  Order of Precedence. Any export agreement entered into with the U.S.
     Government with respect to the subject matter hereof will have precedence
     over the terms and condition of this Agreement.

(d)  Entire Agreement. Except as provided in Article 10(c), this Agreement
     constitutes the entire Agreement between the Parties and supersedes any
     prior written or oral agreement or understanding with respect to the
     subject matter hereof.

(e)  Assignment. Neither party shall assign this Agreement, or any rights
     hereunder, to any third party, including an affiliated company or any
     successor who acquires substantially all of its assets and business,
     without the prior written consent of the other party, which in the case of
     an affiliated company in which OmniSky has at least a 20% equity interest
     or a successor shall only be withheld in the situation where the other
     party is reasonably construed to have a conflicting business relationship
     with such third party.

                                       7
<PAGE>   8
(f)  Waiver. The waiver of a breach or default hereunder shall not constitute
     the waiver of any subsequent breach or default.

(g)  Invalidity of Provisions. Should any provision of this agreement be
     invalid, such invalidity will not affect the validity of the remaining
     provisions.

(h)  Legal Fees. The prevailing Party in any legal action brought by one Party
     against the other shall be entitled, in addition to any other rights and
     remedies it may have, to reimbursement for its reasonable expenses incurred
     thereby, including actual court costs and reasonable attorneys' fees.

(i)  Notices. All notices or other communications required or permitted
     hereunder shall be in English and shall be deemed communicated on the date
     received at the address set forth below, or at such other address as to
     which such party shall give written notice hereunder. In the absence of
     specific notification, acceptance of any notice shall be deemed to have
     occurred ten (10) days after being communicated.

     TELLUS TECHNOLOGY INC.           OMNISKY SYSTEMS INC.
     Attention: Sales Manager         Attention: Jorge Pont, Product Manager
     40990 Encyclopedia Circle        101 Elwell Court
     Fremont, CA 94538-2470, USA      Palo Alto, CA 94306
     Phone # +1 (510) 498 8500        Phone # +1-(650) 962-4308
     Fax #   +1 (510) 498 8540        Fax #   +1-(650) 962-4500

(j)  Agency. Nothing contained in this Agreement is intended or shall be
     construed so as to constitute the Parties as partners, joint ventures or
     agents of each other.

(k)  Arbitration. All disputes arising out of or in connection with this
     Agreement shall be finally settled by binding arbitration conducted under
     the then existing Commercial Arbitration Rules of the American Arbitration
     Association by a single arbitrator appointed in accordance with such Rules.
     The place of the arbitration shall be San Francisco, California, USA and
     the arbitration proceedings shall be conducted in the English language.
     Judgment upon awards or orders for enforcement may be entered by all courts
     to which an award is presented and execution may be had in accordance with
     the law of execution generally applied in the countries where enforcement
     is sought.

(l)  Survival. The provisions of Articles 5, 6, 7, 8, 9 and the relevant
     provisions of this Article 10, together with any OmniSky payment
     obligations, shall survive the termination of this Agreement.

(m)  Force Majeure. Nonperformance (except for the need to make payments) by
     either Party shall be excused to the extent that performance is rendered
     impossible by strike, fire, flood, earthquake, governmental acts or orders
     or restrictions, failure of suppliers, or any other reason where failure to
     perform is beyond the control of and not caused by the negligence of the
     non-performing Party.

                                       8
<PAGE>   9

                                       9
<PAGE>   10
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
and through their duly authorized representatives on the dates specified below.

TELLUS TECHNOLOGY INC.                       OMNISKY, INC.

/s/ GREGORY S. ELLIS                         /s/ BARAK BERKOWITZ
----------------------------                 ----------------------------
Signature                                    Signature

Gregory S. Ellis                             Barak Berkowitz
----------------------------                 ----------------------------
Name (Print)                                 Name (Print)

VP, Bus Dev                                  President
----------------------------                 ----------------------------
Title (Print)                                Title (Print)

11 May 00
----------------------------                 ----------------------------
Date                                         Date

                                       10

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