Document:

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                                                                   EXHIBIT 4.25

                               GENERAL MAGIC, INC.

                       NONSTATUTORY STOCK OPTION AGREEMENT

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

        The Company hereby grants to the Optionee an option (the "OPTION") to
purchase 100,000 shares of Stock, as adjusted from time to time pursuant to
Section 8, upon the following terms and conditions:

        1. DEFINITIONS AND CONSTRUCTION.

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

               (a) "DATE OF OPTION GRANT" means April 27, 2001.

               (b) "EXERCISE PRICE" means $1.03 per share of Stock, as adjusted
from time to time pursuant to Section 8.

               (c) "VESTING COMMENCEMENT DATE" means April 27, 2001.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

        2. TAX STATUS OF OPTION.

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

        3. ADMINISTRATION.

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

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        4. VESTING AND EXERCISE OF THE OPTION.

           4.1 VESTING SCHEDULE. One-fourth (1/4th) of the Option shares shall
vest one (1) year after the Vesting Commencement Date, and one-forty-eighth
(1/48th) of the Option shares shall vest each month thereafter until fully
vested; provided in each case that Optionee is continuously employed by the
Company from the Date of the Option Grant through the vesting date.

           4.2 RIGHT TO EXERCISE. Except as otherwise provided herein, the
Option shall first become exercisable on and after one (1) year following the
Vesting Commencement Date. The Option shall continue to be exercisable
thereafter and until the termination of the Option (as provided in Section 6) in
an amount not to exceed the number of Option shares which have vested according
to the vesting schedule set forth in Section 4.1 above less the number of shares
previously acquired upon exercise of the Option. In no event shall the Option be
exercisable for more shares than the number of Option shares granted under this
Option Agreement.

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

           4.4 PAYMENT OF EXERCISE PRICE.

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

               (b) LIMITATIONS ON FORMS OF CONSIDERATION.

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

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

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

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

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

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

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

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

        5. NONTRANSFERABILITY OF THE OPTION.

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

        6. TERMINATION OF THE OPTION.

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

        7. EFFECT OF TERMINATION OF SERVICE.

           7.1 OPTION EXERCISABILITY.

               (a) DISABILITY. If the Optionee's Service with the Participating
Company Group is terminated because of the Disability of the Optionee, the
Option, to the extent unexercised and exercisable on the date on which the
Optionee's Service terminated, may be exercised by the Optionee (or the
Optionee's guardian or legal representative) at any time prior to the expiration
of twelve (12) months after the date on which the Optionee's Service terminated,
but in any event no later than the Option Expiration Date.

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

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

               (c) OTHER TERMINATION OF SERVICE. If the Optionee's Service with
the Participating Company Group terminates for any reason, except Disability or
death, the Option, to the extent unexercised and exercisable by the Optionee on
the date on which the Optionee's Service terminated, may be exercised by the
Optionee within three (3) months after the date on which the Optionee's Service
terminated, but in any event no later than the Option Expiration Date.

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

           7.3 EXTENSION IF OPTIONEE SUBJECT TO SECTION 16(B). Notwithstanding
the foregoing, if a sale within the applicable time periods set forth in Section
7.1 of shares of Stock acquired upon the exercise of the Option would subject
the Optionee to suit under Section 16(b) of the Exchange Act, the Option shall
remain exercisable until the earliest to occur of (i) the tenth (10th) day
following the date on which a sale of such shares by the Optionee would no
longer be subject to such suit, (ii) the one hundred and ninetieth (190th) day
after the Optionee's termination of Service, or (iii) the Option Expiration
Date.

        8. ADJUSTMENTS UPON CHANGES IN STOCK.

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

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

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

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whether in the form of securities, cash or otherwise (individually, a "Corporate
Transaction"), then any surviving corporation or acquiring corporation shall
assume or continue any Option shares outstanding hereunder or shall substitute
similar options (including an option to acquire the same consideration paid to
the shareholders in the Corporate Transaction for those outstanding hereunder).
In the event any surviving corporation or acquiring corporation refuses to
assume or continue such Option shares or to substitute similar options for those
outstanding hereunder and provided there is no interruption or termination of
Optionee's Service, then the vesting of the Option (and, if applicable, the time
during which the Option may be exercised) shall be accelerated in full, and the
Option shall terminate if not exercised at or prior to the Corporate
Transaction. If there is an interruption in Optionee's Service or Optionee's
Service terminates prior to a Corporate Transaction, the Option shall terminate
if not exercised at or prior to the Corporate Transaction.

        9. RIGHTS AS A SHAREHOLDER, EMPLOYEE OR CONSULTANT.

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

        10. LEGENDS.

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

        11. MISCELLANEOUS PROVISIONS.

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

            11.2 TERMINATION OR AMENDMENT. The Board may terminate or amend the
Option at any time; provided, however, that except as provided in Section 8.3 in
connection with a Corporate Transaction, no such termination or amendment may
adversely affect the Option or any unexercised portion hereof without the
consent of the Optionee unless such termination or

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amendment is necessary to comply with any applicable law or government
regulation. No amendment or addition to this Option Agreement shall be effective
unless in writing.

           11.3 INTEGRATED AGREEMENT. This Option Agreement constitutes the
entire understanding and agreement of the Optionee and the Participating Company
Group with respect to the subject matter contained herein and supersedes any
prior agreements, understandings, restrictions, representations, or warranties
among the Optionee and the Participating Company Group with respect to such
subject matter other than those set forth or provided for herein. To the extent
contemplated herein, the provisions of this Option Agreement shall survive any
exercise of the Option and shall remain in full force and effect.

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

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

                                         GENERAL MAGIC, INC.

                                         By: /s/ Mary E. Doyle
                                            -----------------------------------
                                         Title: General Counsel
                                               --------------------------------
                                         Address:
                                                 ------------------------------

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

                                         OPTIONEE

Date: 8-04-2001                          /s/ Pericles Haleftiras, Jr.
     ----------------------              --------------------------------------
                                         Pericles Haleftiras, Jr.

                                         Optionee Address:

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

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

                                       10<PAGE>   1
                                                                    EXHIBIT 4.36

                               GENERAL MAGIC, INC.
                       NONSTATUTORY STOCK OPTION AGREEMENT

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

        The Company hereby grants to the Optionee an option (the "OPTION") to
purchase 100,000 shares of Stock, as adjusted from time to time pursuant to
Section 8, upon the following terms and conditions:

        1.  DEFINITIONS AND CONSTRUCTION.

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

                (a) "DATE OF OPTION GRANT" means April 27, 2001.

                (b) "EXERCISE PRICE" means $1.03 per share of Stock, as adjusted
from time to time pursuant to Section 8.

                (c) "VESTING COMMENCEMENT DATE" means April 27, 2001.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    2. TAX STATUS OF OPTION.

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

    3. ADMINISTRATION.

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

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    4. VESTING AND EXERCISE OF THE OPTION.

        4.1 VESTING SCHEDULE. One-fourth (1/4th) of the Option shares shall vest
six (6) months after the Vesting Commencement Date, and 1/4th of the Option
shares shall vest each six months thereafter until fully vested; provided in
each case that Optionee is continuously employed by the Company from the Date of
the Option Grant through the vesting date.

        4.2 RIGHT TO EXERCISE. Except as otherwise provided herein, the Option
shall first become exercisable on and after six (6) months following the Vesting
Commencement Date. The Option shall continue to be exercisable thereafter and
until the termination of the Option (as provided in Section 6) in an amount not
to exceed the number of Option shares which have vested according to the vesting
schedule set forth in Section 4.1 above less the number of shares previously
acquired upon exercise of the Option. In no event shall the Option be
exercisable for more shares than the number of Option shares granted under this
Option Agreement.

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

        4.4 PAYMENT OF EXERCISE PRICE.

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

            (b) LIMITATIONS ON FORMS OF CONSIDERATION.

                (i) TENDER OF STOCK. Notwithstanding the foregoing, the Option
may not be exercised by tender to the Company, or attestation to the ownership,
of shares of Stock to the extent such tender or attestation would constitute a
violation of the provisions of any law, regulation or agreement restricting the
redemption of the Company's stock. The Option

                                       4
<PAGE>   5

may not be exercised by tender to the Company, or attestation to the ownership,
of shares of Stock unless such shares either have been owned by the Optionee for
more than six (6) months or were not acquired, directly or indirectly, from the
Company.

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

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

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

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

                                       5
<PAGE>   6

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

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

        5. NONTRANSFERABILITY OF THE OPTION.

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

        6. TERMINATION OF THE OPTION.

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

        7. EFFECT OF TERMINATION OF SERVICE.

            7.1 OPTION EXERCISABILITY.

                (a) DISABILITY. If the Optionee's Service with the Participating
Company Group is terminated because of the Disability of the Optionee, the
Option, to the extent unexercised and exercisable on the date on which the
Optionee's Service terminated, may be exercised by the Optionee (or the
Optionee's guardian or legal representative) at any time prior to the expiration
of twelve (12) months after the date on which the Optionee's Service terminated,
but in any event no later than the Option Expiration Date.

                (b) DEATH. If the Optionee's Service with the Participating
Company Group is terminated because of the death of the Optionee, the Option, to
the extent unexercised and exercisable on the date on which the Optionee's
Service terminated, may be exercised by the Optionee's legal representative or
other person who acquired the right to exercise the Option by reason of the
Optionee's death at any time prior to the expiration of eighteen (18) months
after

                                       6
<PAGE>   7

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

                (c) OTHER TERMINATION OF SERVICE. If the Optionee's Service with
the Participating Company Group terminates for any reason, except Disability or
death, the Option, to the extent unexercised and exercisable by the Optionee on
the date on which the Optionee's Service terminated, may be exercised by the
Optionee within three (3) months after the date on which the Optionee's Service
terminated, but in any event no later than the Option Expiration Date.

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

            7.3 EXTENSION IF OPTIONEE SUBJECT TO SECTION 16(b). Notwithstanding
the foregoing, if a sale within the applicable time periods set forth in Section
7.1 of shares of Stock acquired upon the exercise of the Option would subject
the Optionee to suit under Section 16(b) of the Exchange Act, the Option shall
remain exercisable until the earliest to occur of (i) the tenth (10th) day
following the date on which a sale of such shares by the Optionee would no
longer be subject to such suit, (ii) the one hundred and ninetieth (190th) day
after the Optionee's termination of Service, or (iii) the Option Expiration
Date.

        8. ADJUSTMENTS UPON CHANGES IN STOCK.

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

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

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

                                       7
<PAGE>   8

then any surviving corporation or acquiring corporation shall assume or continue
any Option shares outstanding hereunder or shall substitute similar options
(including an option to acquire the same consideration paid to the shareholders
in the Corporate Transaction for those outstanding hereunder). In the event any
surviving corporation or acquiring corporation refuses to assume or continue
such Option shares or to substitute similar options for those outstanding
hereunder and provided there is no interruption or termination of Optionee's
Service, then the vesting of the Option (and, if applicable, the time during
which the Option may be exercised) shall be accelerated in full, and the Option
shall terminate if not exercised at or prior to the Corporate Transaction. If
there is an interruption in Optionee's Service or Optionee's Service terminates
prior to a Corporate Transaction, the Option shall terminate if not exercised at
or prior to the Corporate Transaction.

        9. RIGHTS AS A SHAREHOLDER, EMPLOYEE OR CONSULTANT.

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

        10. LEGENDS.

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

        11. MISCELLANEOUS PROVISIONS.

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

            11.2 TERMINATION OR AMENDMENT. The Board may terminate or amend the
Option at any time; provided, however, that except as provided in Section 8.3 in
connection with a Corporate Transaction, no such termination or amendment may
adversely affect the Option or any unexercised portion hereof without the
consent of the Optionee unless such termination or

                                       8
<PAGE>   9

amendment is necessary to comply with any applicable law or government
regulation. No amendment or addition to this Option Agreement shall be effective
unless in writing.

            11.3 INTEGRATED AGREEMENT. This Option Agreement constitutes the
entire understanding and agreement of the Optionee and the Participating Company
Group with respect to the subject matter contained herein and supersedes any
prior agreements, understandings, restrictions, representations, or warranties
among the Optionee and the Participating Company Group with respect to such
subject matter other than those set forth or provided for herein. To the extent
contemplated herein, the provisions of this Option Agreement shall survive any
exercise of the Option and shall remain in full force and effect.

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

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

                                        GENERAL MAGIC, INC.

                                        By: /s/ MARY E. DOYLE
                                           __________________________________

                                        Title: General Counsel
                                              _______________________________

                                        Address:_____________________________
                                                _____________________________

                                       9
<PAGE>   10

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

                                    OPTIONEE

Date: 8-04-2001                     /s/ Pericles Haleftiras, Jr.
     ------------------------       --------------------------------------------
                                    Pericles Haleftiras, Jr.

                                    Optionee Address:

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

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

                                       10

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