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                                                                   EXHIBIT 10.04

CONFIDENTIAL TREATMENT REQUESTED UNDER 17 C.F.R., SECTIONS 200.80(b)(4), 200.83
and 230.406

                           [GENERAL MAGIC LETTERHEAD]

April 16, 2001

CONFIDENTIAL

Mark D. Strumwasser
8033 Paseo Arrayan
Carlsbad, CA  92009

Dear Mark:

We are very pleased to extend an offer to you to join the General Magic team as
Vice President, Sales, reporting to Kathie Layton. This letter sets out the
terms of your employment with General Magic. You will be paid a base salary of
$7,692.31 every two weeks ($200,000 annualized), less applicable withholding.
You will also receive our standard benefit package as described in the Benefits
Summary included in this package.

As Vice President, Market Development, you will have the opportunity to earn a
performance bonus in accordance with General Magic's Performance Bonus Plan, as
such plan may be modified over time. This Plan is based upon your achievement of
certain performance-based objectives as agreed to by you and your manager, as
well as the achievement of certain fiscal Company objectives. Bonus payments, if
any, shall be made in accordance with General Magic's Performance Bonus Plan and
its normal payroll procedures and will be paid quarterly. Your annual target
bonus is set at $50,000. We will guarantee your bonus for 2001 and will pay it
over the remaining three quarters.

Your annual commission compensation at target will be $100,000. This is based on
an anticipated target of $[**] million in revenue from new business, excluding
the revenue from Onstar.

Subject to the approval of General Magic's Board of Directors ("the Board"), you
will be granted an option to purchase 250,000 shares of the Company's Common
Stock at an exercise price equal to the fair market value of that stock on your
option grant date. One half of these options (125,000) will vest over a period
of four years at the rate of 1/4 at the end of twelve months of employment, and
1/48th each month thereafter. The other half (125,000) will vest over a two year
period, vesting 1/4 every six months. These options will be granted to you
outside the Company's stock option plans and will be governed by and subject to
the terms and conditions of the Company's standard form of nonplan stock option
agreement. Board meetings typically

[**] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

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occur once each quarter, and the fair market value of the Company's stock may
change based on the Company's financing activities, technical and business
success, and other factors.

In addition, at the start of your employment, we will enter a Change of Control
agreement with you substantially in the form attached hereto. If General Magic,
in its sole discretion, terminates your employment within six months of your
date of employment for any reason (other than for just cause or upon your death,
disability or voluntary resignation), you will receive continuation of your base
salary, less any applicable state and federal payroll taxes, for a period of
three months from the date of your termination, in accordance with the company's
payroll procedures then in effect.

            For purposes of this Agreement, a termination "for cause" occurs if
      you are terminated for any of the following reasons: (i) theft,
      dishonesty, misconduct or falsification of any employment or Company
      records; (ii) improper disclosure of the Company's confidential or
      proprietary information; (iii) any action by you which has a material
      detrimental effect on the Company's reputation or business; (iv) your
      failure or inability to perform any assigned duties after written notice
      from the Company to you of, and a reasonable opportunity to cure, such
      failure or inability; or (v) your conviction (including any plea of guilty
      or no contest) for any criminal act that impairs your ability to perform
      your duties under this Agreement.

As a condition of your employment, you will be required to sign General Magic's
standard Employee Proprietary Information Agreement, without modification, on
your first day of work. In addition, you will also be required to provide
evidence of your identity and eligibility for employment in the United States.
It is imperative that you bring appropriate documentation with you on your first
day of employment; you cannot be put on General Magic's payroll without it. The
required documentation is described within this package.

General Magic's employment relationship with all employees is an "at-will"
arrangement where the employment relationship is voluntary, for no specified
term, and based on mutual consent. As such, your employment may be terminated by
you or General Magic at any time, with or without cause or advance notice.

This offer is valid until end of day Monday, April 16, 2001. The terms and
conditions of this offer letter and the proprietary agreement referenced above
supersede any prior written or oral communications with you concerning your
employment at General Magic. The provisions of this agreement regarding "at
will" employment may only be modified by a document signed by you and the
President of General Magic. Please indicate your acceptance of these terms and
conditions by signing and dating the enclosed original of this letter and
returning it to me. Please retain the duplicate for your records.

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Your acceptance of our offer represents a unique opportunity for us both to grow
and succeed. We want to thank you in advance for your faith in us, and for the
commitment you have made to our common vision. We look forward to working with
you.

Welcome to General Magic!

GENERAL MAGIC, INC.

/s/ KATHIE LAYTON
-----------------------
Kathie Layton
President and CEO

I agree to and accept employment with General Magic, Inc. on the terms and
conditions set forth in this letter.

/s/ MARK D. STRUMWASSER 4/16/01
-----------------------
Mark D. Strumwasser

Start date:  April 30, 2001 (or sooner)<PAGE>   1

                                                                    EXHIBIT 10.5

                           [GENERAL MAGIC LETTERHEAD]

      April 16, 2001

      CONFIDENTIAL

      Pericles Haleftiras, Jr.
      5225 Setting Sun Way
      San Diego, CA  92121

      Dear Pat:

      We are very pleased to extend an offer to you to join the General Magic
      team as Chief Technology Officer, reporting to Kathie Layton. This letter
      sets out the terms of your employment with General Magic. You will be paid
      a base salary of $8,884.62 every two weeks ($231,000 annualized), less
      applicable withholding. You will also receive our standard benefit package
      as described in the Benefits Summary included in this package.

      As Chief Technology Officer, you will have the opportunity to earn a
      performance bonus in accordance with General Magic's Performance Bonus
      Plan, as such plan may be modified over time. This Plan is based upon your
      achievement of certain performance-based objectives as agreed to by you
      and your manager, as well as the achievement of certain fiscal Company
      objectives. Bonus payments, if any, shall be made in accordance with
      General Magic's Performance Bonus Plan and its normal payroll procedures
      and will be paid quarterly. Your annual target bonus is set at 60 percent
      of your annual base pay.

      Subject to the approval of General Magic's Board of Directors ("the
      Board"), you will be granted an option to purchase 200,000 shares of the
      Company's Common Stock at an exercise price equal to the fair market value
      of that stock on your option grant date. One half of these options
      (100,000) will vest over a period of four years at the rate of 1/4 at the
      end of twelve months of employment, and 1/48th each month thereafter. The
      other half (100,000) will vest over a two year period, vesting 1/4 every
      six months. These options will be granted to you outside the Company's
      stock option plans and will be governed by and subject to the terms and
      conditions of the Company's standard form of nonplan stock option
      agreement. Board meetings typically occur once each quarter, and the fair
      market value of the Company's stock may change based on the Company's
      financing activities, technical and business success, and other factors.

      As a condition of your employment, you will be required to sign General
      Magic's standard Employee Proprietary Information Agreement, without
      modification, on your first day of work. In addition, you will also be
      required to provide evidence of your identity and eligibility for
      employment in the United States. It is imperative that you bring
      appropriate documentation with you on your first day of employment; you
      cannot be put on General Magic's payroll without it. The required
      documentation is described within this package.

      General Magic's employment relationship with all employees is an "at-will"
      arrangement where the employment relationship is voluntary, for no
      specified term, and based on mutual consent. As such, your employment may
      be terminated by you or General Magic at any time, with or without cause
      or advance notice.

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      This offer is contingent upon the satisfactory completion of your
      reference checks This offer is valid until end of day Friday, April 20,
      2001. The terms and conditions of this offer letter and the proprietary
      agreement referenced above supersede any prior written or oral
      communications with you concerning your employment at General Magic. The
      provisions of this agreement regarding "at will" employment may only be
      modified by a document signed by you and the President of General Magic.
      Please indicate your acceptance of these terms and conditions by signing
      and dating the enclosed original of this letter and returning it to me.
      Please retain the duplicate for your records.

      Your acceptance of our offer represents a unique opportunity for us both
      to grow and succeed. We want to thank you in advance for your faith in us,
      and for the commitment you have made to our common vision. We look forward
      to working with you.

      Welcome to General Magic!

      GENERAL MAGIC, INC.

      /s/ KATHIE LAYTON
      ---------------------
      Kathie Layton
      President and CEO

      I agree to and accept employment with General Magic, Inc. on the terms and
      conditions set forth in this letter.

      /s/ PERICLES HALEFTIRAS, Jr.     4/13/01
      ----------------------------
      Pericles Haleftiras, Jr.

      Start Date:_________________

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