Document:

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                                                PALM AND HANDSPRING CONFIDENTIAL

                                                                    EXHIBIT 10.7
                                                CONFIDENTIAL TREATMENT REQUESTED

                           SOFTWARE LICENSE AGREEMENT

              This Software License Agreement is entered into by and between:
Palm, Inc. ("Palm"), a Delaware corporation with a place of business at 5470
Great America Parkway, Santa Clara, CA 95052; Palm Ireland Investment, a company
organized and existing under the laws of The Republic of Ireland with a place of
business at 25-28 North Wall Quay, International Financial Services Centre,
Dublin 1, Ireland (referred to individually as "Palm Ireland" or collectively
with Palm, Inc. as "Palm"); Handspring, Inc. ("Licensee"), a Delaware
corporation with a place of business at 189 Bernardo Avenue, Mountain View,
California 94043; and Handspring International Sarl, a company organized under
the laws of Switzerland with a place of business at Geneva Tour Casai, 18 Avenue
Louis-Casai, Geneva 1209, Switzerland (referred to individually as "Handspring
International" or collectively with Handspring, Inc., as "Licensee"). The
effective date of this Agreement shall be April 10, 2001 ("Effective Date").

                                    RECITALS

       A. Palm or its suppliers are the owners of software and other technology
related to the Palm OS platform.

       B. Licensee is a developer, manufacturer and marketer of handheld
computing products.

       C. Licensee desires to obtain a license to certain Palm software and
technology, as more particularly described in Exhibit A (Palm Deliverables), in
order to develop, manufacture and market handheld computing products
incorporating, and compatible with, such Palm software and technology. 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 "API" means a set of programming language constructs for developing
software and hardware that access specific functions and services provided by
the Palm Software.

       1.2 "Competitor" means (i) any entity or entities that develops and
licenses to third parties operating system software for a handheld or mobile
computing device, and (ii) Research in Motion, Inc. ("RIM").

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       1.3 "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 a Receiving Party or a Disclosing Party
shall also include all present and future subsidiary and parent companies of
such party, subject to the restrictions contained in this Agreement.

       1.4 "Desktop Product" means a Licensee Product that contains or is
bundled with the Palm Desktop Applications, in whole or in part, and no other
Palm Software which is combined with Licensee's added value and used solely with
a Device Product.

       1.5 "Device Product" means a Licensee Product that contains the Palm
Software (other than a Desktop Product), in whole or in part, and which is
combined with Licensee's added value.

       1.6 "Licensee Product" means a Device Product or a Desktop Product
developed by Licensee, or for Licensee by a third party.

       1.7 "Licensee Software" means any software developed or acquired by
Licensee, or for Licensee by a third party, for the Licensee Products.

       1.8 "Net Revenue" means monies received or receivable by Licensee in
connection with the sale, permitted licensing, distribution or other
exploitation of the Licensee Products, but shall exclude taxes, returns,
rebates, and separately stated shipping and handling costs or maintenance,
support, and engineering fees.

       1.9 "New Version" means a new release of the Palm Software for which the
number to the left of the decimal point is increased. For example, Palm Software
version 5.0 would be a New Version following Palm Software version 4.x.

       1.10 "Other Licensee" means any entity other than Licensee that licenses
all or substantially all of the Palm Software from Palm for the purpose of
developing and selling handheld computing products incorporating the Palm
Software, including without limitation the division of Palm that currently
develops, manufactures and markets handheld computing products.

       1.11 "Palm Compatibility Trademarks" means the Palm compatibility
trademarks listed in Exhibit H (Palm Trademarks).

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* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

       1.12 "Palm Device Applications" means the applications files described in
Exhibit A (Palm Deliverables).

       1.13 "Palm Device Applications SDK" means Palm's commercially available
software development kit for applications for the Palm OS platform as described
in Exhibit A (Palm Deliverables).

       1.14 "Palm Desktop Applications" means the Palm desktop software
described in Exhibit A (Palm Deliverables).

       1.15 "Palm Development Environment" means [*]

       1.16 "Palm End-User Documentation" means the end-user documentation
related to the Palm Software as described in Exhibit A (Palm Deliverables).

       1.17 "Palm Installation CD Files" means [*]

       1.18 "Palm Materials" means (a) the Palm End-User Documentation, Palm
Technical Documentation, and any Palm end user materials provided hereunder, (b)
all current and future foreign language versions thereof, to the extent that
Palm has the right to license such versions to its Other Licensees and if such
versions are made commercially available by Palm to its Other Licensees, and (c)
revisions and/or upgrades to any of the foregoing if such revisions and/or
upgrades are made commercially available by Palm to its Other Licensees.

       1.19 "Palm OS" means the Palm operating system software described in
Exhibit A (Palm Deliverables), which may be updated by Palm from time to time.
All Palm OS software shall be provided in object code form only, except as may
be agreed by the parties in writing or as otherwise set forth in this Agreement.

       1.20 "Palm Software" means the Palm software described in Exhibit A (Palm
Deliverables) and any Updates, Upgrades or New Versions thereof. All Palm
Software shall be provided in object code form only, except as may be agreed by
the parties in writing or as otherwise set forth in this Agreement. Palm
Software includes the English language versions thereof and all current and
future foreign language versions thereof to the extent that Palm has the right
to license such versions to its Other Licensees and if such versions are made
commercially available by Palm to its Other Licensees.

       1.21 "Palm Source Code" means certain source code for certain Palm
Software which Palm, at its sole option, may elect to provide to Licensee from
time to time.

       1.22 "Palm Source Code Documentation" means certain technical
documentation relating to Palm Source Code which Palm, at its sole option, may
elect to provide to Licensee from time to time.

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* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

       1.23 "Palm Technical Documentation" means the technical documentation,
repair manuals, service manual, engineering schematics, and other materials
relating to the Palm Software as described in Exhibit A (Palm Deliverables).

       1.24 "Palm Trademarks" means the Palm Compatibility Trademarks and the
Other Palm Trademarks listed on Exhibit H (Palm Trademarks).

       1.25 [*]

       1.26 [*]

       1.27 [*]

       1.28 "Update" means a new release of the Palm Software which, for reason
of additional functionality, the number to the right of the first decimal point
is increased. For example, Palm Software 4.1 would be an Update to Palm Software
4.0.

       1.29 "Upgrade" means a bug fix, workaround, or patch to correct any
reproducible error in the Palm Software for which the number to the right of the
second decimal point is increased. For example, Palm Software 4.0.1 would be an
Upgrade to Palm Software 4.0.

2.     LICENSES

       2.1. Development, Manufacturing, Testing and Support License.

              (a) Scope of License. Subject to the terms and conditions of this
Agreement, Palm hereby grants to Licensee a personal, limited, non-exclusive,
non-transferable (except as provided in Section 16.9), fully-paid license to use
and reproduce the following solely to develop, manufacture, test and support the
Licensee Products: (i) the Palm Development Environment in object code form
(except as may be agreed by the parties in writing or as otherwise set forth in
this Agreement), (ii) the Palm Software in object code form (except as may be
agreed by the parties in writing or as otherwise set forth in this Agreement),
(iii) Palm Device Applications SDK in object code form (except as may be agreed
by the parties in writing or as otherwise set forth in this Agreement), (iv) the
Palm Installation CD Files (except as may be agreed by the parties in writing or
as otherwise set forth in this Agreement), and (iv) the Palm Materials. Such
license shall include the right to use any Palm intellectual property rights
associated with or related to use of the Palm Development Environment, Palm
Device Applications SDK, Palm Software and/or Palm Materials, solely in
connection with the development, manufacturing, testing or support of such items
solely contained in or bundled with, as provided in Section 2.2(a) (Scope of
License), the Licensee Products.

              (b) Derivative Works. [*]

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under Section 6.2(b) (OS Enhancements; Implementation by Licensee), solely for
use within or bundled with Licensee Products, as provided in Section 2.2(a)
(Scope of License).

       2.2 Distribution License.

              (a) Scope of License. Subject to the terms and conditions of this
Agreement, Palm hereby grants to Licensee a personal, limited, non-exclusive,
non-transferable, worldwide, royalty-bearing license to use, reproduce, and
distribute (directly or through third parties): (i) the Palm Software (except as
provided in 2.2(a)(ii)), in object code form only, solely when contained in the
Licensee Products; (ii) the Palm Desktop Applications and Palm Installation CD
Files, in object code form only, solely when bundled with Licensee Products; and
(iii) the Palm End-User Documentation, solely when bundled with Licensee
Products; and (iv) any Upgrades, Updates and New Versions, in object code form
only, on a stand-alone basis to be used solely with Licensee Products. Licensee
certifies, except for the distribution of New Versions, Upgrades and Updates on
a stand-alone basis, that it will distribute the Palm Software only as
incorporated into or bundled with Licensee Products as provided in this Section.
Such license shall include the right to use any Palm intellectual property
rights associated with or related to use of the Palm Software, the Palm
Installation CD Files and/or the Palm End User Documentation, solely in
connection with the distribution of such items contained in or bundled with
Licensee Products, as provided in this Section above. Such license shall also
include the right to grant end user sublicenses subject to the provisions of
Section 9.4 below.

              (b) Limitations. Licensee acknowledges and agrees that at such
time it elects to distribute any Upgrade, Update or New Version pursuant to
Section 2.2(a) (Scope of License), whether contained in or bundled with a
Licensee Product or on a stand-alone basis, Licensee shall distribute the
complete Palm OS and HotSync Manager & Conduits as described in Exhibit A (Palm
Deliverables), together with any other components required to satisfy
Compatibility Certification pursuant to Section 2.3 (Compatibility and Trademark
License), in their entirety and may not distribute only a subset of same.

       2.3 Compatibility and Trademark License

              (a) Compatibility Testing. Prior to the release of each of the
Licensee Products and for each Update or New Version (but excluding an Upgrade)
of the Palm Software that Licensee may embed into or bundle with such products,
as permitted by Section 2.2(a)(Scope of License), Licensee shall submit the
Licensee Products for compatibility testing in accordance with this Section 2.3.
Licensee shall submit the Licensee Product to Palm no less than thirty (30)
calendar days prior to the date Licensee desires to submit the Licensee Product
to the Approved Testing Lab (as defined below) for compatibility testing so that
Palm can prepare the test case suite. Licensee shall then submit the Licensee
Product at its expense to any of Palm's approved independent compatibility
testing labs ("Approved Testing Lab") for compatibility testing in

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accordance with the test criteria attached hereto as Exhibit B (the "Test
Criteria"). If the Approved Testing Lab rejects the Licensee Products because it
does not conform in all material respects with the Test Criteria as determined
by Palm, 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 Products 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 if major new functionality is added to the Palm Software. Palm
shall use its reasonable discretion in determining new Test Criteria for such
Palm Software with such new functionality and will apply such new Test Criteria
to all Other Licensees.

              (b) Compatibility Certification Requirement. Licensee agrees that
it shall not release or distribute any Licensee Products for use with the Palm
Software which have not received compatibility certification pursuant to
subsection (a) above from an Approved Testing Lab in accordance with the Test
Criteria ("Compatibility Certification"). Each version of a Licensee Product
shall be required to pass the Test Criteria only once, regardless of Palm's
subsequent modifications to the Palm Software. However, in order to obtain
Compatibility Certification for a New Version or Update of the Palm Software to
which new Test Criteria, as described in Section 2.3(a), would apply, Licensee
must submit Licensee Products for compatibility testing against such new Test
Criteria in accordance with Section 2.3(a). Licensee may indicate Compatibility
Certification for Licensee Products only with respect to the version(s) of the
Test Criteria which the Licensee Products have passed.

After a Licensee Product has received Compatibility Certification, Licensee may,
at its option and its sole cost and expense, conduct the compatibility testing
of any subsequent language version of such Licensee Product ("Localized
Version") provided that all of the following conditions are met:

                     (i) The Localized Version is for any language supported by
Palm, excluding any double byte languages.

                     (ii) The Localized Version does not require a different
input method than utilized in the version of the Licensee Product that
originally received Compatibility Certification.

                     (iii) The Localized Version does not contain any
incremental operating system software which was not contained in the Licensee
Product or other software which might affect the functionality of the Palm
Software.

                     (iv) Either (1) none of the Approved Testing Labs could
commit to completing the Compatibility Certification within thirty (30) calendar
days from receipt of such Localized Version, or (2) an Approved Testing Lab did
commit to such a deadline but the compatibility testing was not completed within
such time. Notwithstanding the foregoing, if the Approved Testing Lab issued a
Statement of Errors within the thirty (30) period, then the Approved Testing Lab
shall be afforded an

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additional period of time beyond the original thirty (30) days if reasonably
required for such errors to be fixed by Licensee and retested by the Approved
Testing Lab, taking into consideration the Approved Testing Lab's timeliness in
issuing the Statement of Errors, the nature of such errors, and Licensee's
timeliness in correcting such errors.

                     (v) Licensee shall conduct the compatibility testing
strictly in accordance with the Test Criteria and shall use the compatibility
test suite provided by Palm for the primary version of the Licensee Product
which received Compatibility Certification.

                     (vi) At least five (5) business days prior to the date
Licensee first releases such Localized Version, Licensee will deliver to Palm a
copy of the compatibility test results, together with a written statement by the
employee of Licensee responsible for such testing certifying that the Localized
Version satisfied the Test Criteria in all material respects and qualifies for
Compatibility Certification pursuant to the terms hereof.

                     (vii) Palm may at any time audit the compatibility test
results and/or Licensee's compatibility testing procedure to verify Licensee's
compliance with the terms of this Section 2.3(b).

Licensee acknowledges and agrees that if Licensee releases a Licensee Product
which has not first satisfied the Compatibility Certification hereunder in all
material respects as provided in this Section, above ("Noncompatible Licensee
Product"), Licensee shall cease any further distribution or sale of such
Noncompatible Licensee Product. Licensee must resubmit such Noncompatible
Licensee Product to Palm for Compatibility Certification pursuant to the
provisions of this Section 2.3 and Exhibit B and receive such Compatibility
Certification before any further distribution or sale of such Noncompatible
Licensee Product. Failure to comply with the foregoing provisions shall be
deemed a material breach for purposes of Section 15.4 (Right to Terminate).

              (c) Trademark License. Subject to subsections (a) and (b) above
and the other terms and conditions of this Agreement, Palm hereby grants to
Licensee a personal, limited, non-exclusive, non-transferable, fully-paid
license to use, subject to the guidelines set forth in Palm's Trademark Policy
Guidelines attached hereto as Exhibit C, the Palm compatibility trademarks
listed in Exhibit H ("Palm Compatibility Trademarks") in connection with the
marketing and sale of Licensee Products which contain or are bundled with the
Palm Software, pursuant to Section 2.2(a) (Scope of License), and that have
received Compatibility Certification, provided that Palm, upon its request,
shall have the right to receive free samples of all advertising and promotional
materials and reasonable numbers of sample production units of the Licensee
Products and related Licensee documentation on which such trademarks are used to
ensure that Palm's quality standards are maintained. Palm shall have the right
to change the Palm Compatibility Trademarks upon written notice to Licensee,
provided that Licensee (i) may continue to use the old Compatibility Trademarks
on any Licensee Products for which the tooling existed on the date of such
notice and in any related materials with

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respect to such Licensee Products until such products and materials are
exhausted, and (ii) shall use the new Compatibility Trademarks on any Licensee
Products for which the tooling is created or retooled, and on newly created or
revised related materials with respect to such Licensee Products, after the date
of such notice for purposes of compliance with this Section and Section 8.3
(Branding). Licensee shall use the Palm Compatibility Trademarks in conjunction
with the distribution, promotion, and marketing of any and all Licensee Products
that have received Compatibility Certification, consistent with the guidelines
set forth in Exhibit C. The foregoing license shall be limited to use of the
Palm Compatibility Trademarks for the purposes of Section 8.3 (Branding).
Further, the foregoing license to the mark "Palm OS" shall be strictly limited
to the applicable version number of the Palm OS designated by Palm and Licensee
shall have no license to use a New Version name/number in connection with the
distribution, promotion or marketing of any Licensee Product or related material
(including, without limitation, on the Licensee Product or in any advertising,
promotional or packaging materials) until such time as the Licensee Product has
received Compatibility Certification for such New Version. Nothing in this
Agreement grants Licensee ownership or any rights in or to use the Palm
Trademarks, except in accordance with this license. Subject to Section
15.4(b)(ii) (Effect of Termination), the rights granted to Licensee in this
license will terminate upon any termination or expiration of this Agreement and
Licensee will no longer make any use of any Palm Compatibility Trademarks.

              (d) Trademark Ownership. Licensee acknowledges that Palm owns
exclusive rights in the Palm Trademarks. Licensee will not use PALM as part of
any of its product, service, domain or company names and will not take nor
authorize any action inconsistent with Palm's exclusive trademark rights during
the term of this Agreement or thereafter. Nothing in this Agreement grants
Licensee ownership or any rights in or to use the Palm Trademarks, except in
accordance with this license. 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 not use any of the Palm Trademarks to directly
or indirectly promote or distribute handheld computing products not designed for
the Palm Software. Unless otherwise instructed by Palm, Licensee will use a
legend on its website and, where commercially feasible, on all printed materials
and products bearing the Palm Trademarks similar to the following: "[Licensee
name] uses the [Palm Trademark used] under express license from Palm, Inc."

              (e) Quality Maintenance. Licensee agrees that the overall quality
of the Licensee Products and all related advertising, promotional and other
related uses of the Palm Trademarks shall conform to or exceed industry
standards. Licensee agrees to cooperate with Palm in facilitating Palm's quality
control. Palm, upon its request, shall have the right to receive free samples of
all advertising and promotional materials and reasonable numbers of sample
production units of the Licensee Products and related Licensee documentation on
which such trademarks are used to ensure that Palm's quality standards are
maintained. Licensee shall comply with all requests from Palm to correct

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* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

any quality deficiencies in such materials and its website in no more than 30
days from time of request.

       2.4 Right to Sublicense or Use Contract Manufacturers.

              (a) [*]

                     (i) [*] which will contain provisions that protect Palm's
proprietary rights to no less of an extent than such rights are protected by
Sections 2.3 (Compatibility and Trademark License), 2.5 (No Reverse
Engineering), 2.6 (Inspection Rights), 8.3 (Branding), 9 (Proprietary Rights),
12 (Confidentiality), and 14 (Export Regulations) of this Agreement. In the
event of any failure by any [*] to comply with the foregoing terms of its [*],
Licensee shall use its reasonable efforts to enforce and protect Palm's
intellectual property rights against such [*], provided that Palm reserves the
right to enforce and protect its intellectual property rights directly against
such [*] with the cooperation of Licensee.

                     (ii) [*]

                     (iii) [*]

                     (iv) No later than [*], Licensee shall notify Palm in
writing [*]

                     (v) Licensee shall pay Palm the Royalty set forth in
Section 4 (Royalties, Fees and Reports) and Exhibit D (Royalties and Fees) [*]

              (b) Manufacturing Sublicensing Terms. Subject to the requirements
of Sections 2.5 (No Reverse Engineering) and 12 (Confidentiality), Licensee
shall have the right to sublicense its rights under Section 2.1 (Development,
Manufacturing, Testing and Support License) to consultants and contractors
solely for the purpose of developing, manufacturing, testing, and supporting
Licensee Products for Licensee. Licensee shall inform Palm at the parties'
regular technical update meetings or otherwise of the identity of any third
party manufacturer of Licensee Products located outside of the United States and
Palm shall inform Licensee to Palm's knowledge of any potential security risks
with respect to such manufacturer.

              (c) Limitations. Except as specified in this Section 2.4, Licensee
shall not have the right to sublicense any of its rights under this Agreement
[*]

       2.5 No Reverse Engineering. Licensee shall not reverse engineer, reverse
compile or disassemble any Palm Software, or otherwise attempt to derive the
source code to any Palm Software. The foregoing shall not apply to such
activities if unavoidable when conducted solely in the ordinary course of
technical support of Licensee Products such as may occur through the use of
debugging tools.

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* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

       2.6 Inspection Rights. Palm shall have the right, upon reasonable advance
notice, to inspect Licensee's records and facilities with respect to the
manufacture of the Licensee Products hereunder and to receive sample units
thereof in order to verify that such manufacturing is within the scope of this
Agreement, that there are appropriate security procedures to protect Palm's
Confidential Information, that Licensee is in compliance with Section 2.5 (No
Reverse Engineering), and that Licensee is in compliance with its other
obligations under this Agreement. Licensee shall have similar rights with
respect to any contract manufacturers permitted by Palm under Section 2.4(b).

       2.7 No Other Licenses. The licenses granted under this Agreement are
specifically set forth herein, and no licenses are granted by Palm to Licensee
by implication or estoppel.

       2.8 Limitations on Scope of Agreements. The rights granted to Licensee
under this Agreement do not, and will not, include:

              (a) [*]

              (b) [*]

       2.9 Source Code License. Upon Licensee's request, Palm may at Palm's sole
option, from time to time, provide Licensee certain portions of the Palm Source
Code and Palm Source Code Documentation subject to the provisions of this
Section 2.9.

              (a) Right to Examine. Subject to the terms and conditions of this
Agreement, Palm hereby grants to Licensee a limited, non-exclusive,
non-transferable, fully-paid license to examine the Palm Source Code and Palm
Source Code Documentation, for the sole purpose of assisting Licensee in
developing Licensee Products within the scope of this Agreement and to reproduce
no more than three (3) copies of such Palm Source Code and Palm Source Code
Documentation.

              (b) Right to Modify. Subject to the terms and conditions of this
Agreement, Palm hereby grants to Licensee a limited, non-exclusive,
non-transferable, fully-paid license to (i) modify those certain portions of the
Palm Source Code identified on Exhibit I, with respect to Modifiable Source Code
agreed to prior to the Effective Date, or on an Attachment to be added hereto
with respect to Modifiable Source Code agreed to after the Effective Date
(collectively, the "Modifiable Source Code"), but only for the limited purpose
and such other terms set forth on Exhibit I or the Attachment applicable to such
Modifiable Source Code, and (ii) use, reproduce and distribute any such
modifications ("Licensee Modifications") in object code form only to the same
extent that Licensee is permitted to do so with respect to Palm Software
pursuant to Section 2.2 and Section 2.4, above. For each set of Modifiable
Source Code agreed to after the Effective Date, the parties shall execute
separate sequentially numbered Attachments (e.g., Attachment No. 1, Attachment
No. 2, etc.) to this Agreement. Licensee shall have no right to (a) sublicense
the rights granted in subsection 2.9(b)(i) above to any third party, (b) modify
any Palm Source Code other than the Modifiable

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* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

Source Code, or (c) modify the Modifiable Source Code for any purpose other than
as expressly set forth in Exhibit I or the applicable Attachment, or (d)
sublicense any Licensee Modification to a third party except as permitted in
Section 2.9(b)(ii) or otherwise expressly permitted in [*] or on an Attachment.
The licenses granted under this Section 2.9(b) are specifically set forth
herein, and no licenses are granted by Palm to Licensee by implication or
estoppel to the Modifiable Source Code.

              (c) Limitations of License. Licensee shall have no right to (i)
sublicense any of its rights granted under this Sections 2.9 to any third party,
(ii) incorporate any Palm Source Code or Palm Source Code Documentation in any
technology or products of Licensee or of any third party (except as expressly
permitted under Section 2.9(b) above), (iii) disclose any Palm Source Code or
Palm Source Code Documentation to any third party, (iv) use or reproduce any
Palm Source Code or Palm Source Code Documentation other than as permitted by
subsections 2.9(a) and (b) above, or (v) modify or distribute any Palm Source
Code or Palm Source Code Documentation in any manner, except as set forth in
Section 2.9(b). The licenses granted under this Section 2.9 are specifically set
forth herein, and no licenses are granted by Palm to Licensee by implication or
estoppel to the Palm Source Code or Palm Source Code Documentation.

              (d) Inspection Rights. Palm shall have the right, upon reasonable
advance notice, to inspect Licensee's records and facilities with respect to the
use of the Palm Source Code and Palm Source Code Documentation in order to
verify that such use is within the scope of this Agreement, and that there are
appropriate security procedures in place to protect the Palm Source Code and
Palm Source Code Documentation (including, without limitation, the procedures
set forth in Section 2.9(e), below).

              (e) Confidentiality. Palm Source Code and Palm Source Code
Documentation shall be deemed additional Confidential Information of Palm for
purposes of this Agreement. Except as permitted in this Agreement, Licensee
shall not use, make, have made, distribute or disclose any copies of the Palm
Source Code or Palm Source Code Documentation, in whole or in part, or the
information contained therein without the prior written authorization of Palm.
Upon termination or expiration of this Agreement, Licensee will deliver such
Palm Source Code and Palm Source Code Documentation, and any materials
containing the information therein, to Palm. Licensee shall inform its employees
having access to Palm Source Code and Palm Source Code Documentation of
Licensee's limitations, duties and obligations regarding nondisclosure and
limited copying thereof and shall obtain or have obtained their written
agreement to comply with such limitations, duties and obligations. Licensee
shall notify Palm in writing of the identities of any employees having access to
such Palm Source Code and Palm Source Code Documentation and shall maintain
accurate and complete records of the same, together with copies of each such
employee's written agreement to comply with the terms hereunder; such persons
shall be the only persons entitled to access to the Palm Source Code and Palm
Source Code Documentation. Upon reasonable notice, Palm may audit such records.
In the event that Palm, from time to time, provides Licensee with a copy of one
or more CD's which contain all, or substantially all or a significant

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portion of the Palm Software in source code form, including any Updates or New
Versions thereof ("Palm Software CD"), Licensee agrees to the following
additional obligations with respect to the Palm Software CD notwithstanding any
other provisions of this Agreement: (i) Licensee shall only be entitled to use
two (2) copies of the Palm Software CD, (ii) Licensee shall not make any
additional copies of the Palm Software CD, (iii) Licensee shall only use the
Palm Software CD on two (2) PC's at any one time, (iv) each copy of the Palm
Software CD shall be kept in a locked room or file cabinet when not in use, and
(v) use of the Palm Software shall be password protected.

              (f) Palm's Right to Modify/Replace Source Code. Licensee agrees
that any access to any Palm Source Code will not limit or restrict Palm's right
to modify or replace such Palm Source Code in future versions of the Palm
Software.

              (g) Termination of Source Code License. Except as expressly
provided in this subsection 2.9 (g), all rights and obligations under this
Section 2.9, shall terminate and be of no further force or effect if there is a
material change in the ownership or control of Licensee such that more than
twenty percent (20%) or more of the voting equity stock of Licensee is owned
and/or controlled (directly or indirectly) by one or more Competitor. In the
event of such termination, Licensee shall promptly (i) cease all examination
and/or modification of the Palm Source Code, (ii) return all Palm Source Code,
including, but not limited to, all copies thereof, to Palm, and (iii) destroy
all copies thereof, in whole and in part, residing within any computers in
Licensee's control. Notwithstanding the foregoing, in the event of such
termination, in no event shall such termination affect Licensee's rights to
reproduce and distribute in object code form Licensee Modifications existing as
of the effective date of such termination pursuant to Section 2.9(b)(ii).

              (h) No Other Licenses. The licenses granted under this Section 2.9
are specifically set forth herein, and no licenses are granted by Palm to
Licensee by implication or estoppel to the Palm Source Code or Palm Source Code
Documentation.

              (i) Survival. Licensee's obligations under this Section 2.9 with
respect to any Palm Source Code and Palm Source Code Documentation shall survive
in perpetuity.

       2.10 Desktop Site License. Subject to the terms and conditions of this
Agreement, Palm hereby grants to Licensee a limited, non-exclusive,
non-transferable (except as provided in Section 16.9), worldwide, royalty-free
license to distribute solely for use with Device Products, the Palm Desktop
Applications; provided that Licensee does not charge for copies of the Palm
Desktop Applications. Licensee agrees that each copy of the Palm Desktop
Application will be accompanied by Licensee's standard end user software license
agreement as provided in Section 9.4, below. In addition, Licensee shall have
the right to sublicense to enterprise end users the right to use and reproduce
the Palm Desktop Applications for their internal use pursuant to a signed,
written agreement with such enterprise end users, with no right to further
sublicense; provided that the terms of such agreement shall be at least as
protective of the Palm Desktop Applications as (i)

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<PAGE>   13

the terms and conditions Licensee uses for its own software products, (ii) the
minimum terms and conditions set forth in Exhibit F-2, and (iii) the terms and
conditions governing this Agreement. Licensee agrees to enforce the terms and
conditions applicable to the Palm Desktop Applications contained in such
agreements.

3.     DELIVERY

       The parties acknowledge and agree that Palm has delivered to Licensee a
complete and current set of the deliverables specified in Exhibit A.

4.     ROYALTIES, FEES, AND REPORTS

       4.1 Royalties. Licensee shall pay to Palm the applicable royalties
specified in Exhibit D ("Royalties") for each (i) Licensee Product sold or
distributed by Licensee containing all or any portion of, or bundled with, the
Palm Software, pursuant to Section 2.2(a) (Scope of License) and (ii) any Update
or New Version sold or distributed by Licensee on a stand-alone basis. Such
royalties shall be due and payable to Palm regardless of whether Licensee
collects payments for the Licensee Products from Licensee's customers. In any
event, Licensee is required to pay at least the minimum amount of Royalties per
quarter specified in Exhibit D ("Minimum Quarterly Payment"). If Licensee fails
to pay a Minimum Quarterly Payment when due Palm may elect to terminate this
Agreement pursuant to the provisions of Section 15.3 (Right to Terminate) and
Licensee will remain obligated to pay any Minimum Quarterly Payment past due on
the date of termination. Each Minimum Quarterly Payment will be deemed a
non-refundable payment by Licensee of Royalties due under this Agreement for the
applicable quarter.

       4.2 Maintenance and Support Fees. Licensee shall pay to Palm fees as
specified in Exhibit D (Royalties and Fees) for maintenance, support, Updates,
Upgrades and New Versions 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 of Licensee's fiscal quarters during the term of this
Agreement, regardless of whether Licensee collects payments for the Licensee
Products or their maintenance and support from Licensee's customers. In no event
will such fees entitle Licensee to receive any assistance in integrating any
Palm Software with any Licensee Products, any custom development work for
Licensee or any Licensee Products, or any modifications to any Palm Software
beyond those covered by Section 7.1.

       4.3 Audit Rights. Licensee shall keep adequate records to verify all
reports and payments to be made to Palm pursuant to this Agreement for a period
of four (4) 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

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<PAGE>   14

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

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.

       4.4 Forecasts No later than forty-five (45) days after the beginning of
each of Licensee's fiscal quarters during the term of this Agreement, Licensee
shall provide Palm with a rolling four (4) quarter forecast (including the
current quarter) of Royalties payable to Palm, broken down by geographical
regions separated by (i) an aggregate of forecasted Royalties for the continents
of North and South America and Japan, and (ii) an aggregate of forecasted
Royalties for all other regions. Licensee shall use its commercially reasonable
efforts to make such forecasts accurate to the best of its knowledge at the time
the forecast is made.

5.     PAYMENT TERMS

       5.1 Payment. Royalties shall accrue upon shipment to a customer of
Licensee Products by Licensee and shall be payable in United States Dollars [*]
after the commencement date of each of Licensee's fiscal [*] for the immediately
preceding fiscal quarter. Licensee will make payments to Palm according to the
following terms:

              (a) Each Royalty payment shall be accompanied by a statement
signed by an authorized representative of Licensee setting forth in sufficient
detail the basis upon which the royalties were calculated during the relevant
period for which the Royalties are due. The Royalty calculations will be broken
down as follows: (1) the Maintenance and Support Fees, (2) the number of units
of Licensee Product shipped broken down by version of the Palm OS and (3)
Royalties broken down by geographical regions separated by (i) aggregate
Royalties for the continents of North and South America (except for the United
States) and Japan, (ii) aggregate royalties for the United States, and (iii)
aggregate royalties for all other regions.

              (b) All Royalties generated by Licensee in the continents of North
and South America and in Japan shall be paid by Licensee to Palm, Inc. at the
address set forth at the beginning of this Agreement or such other address as
Palm may designate in writing; all Royalties generated by Licensee outside the
continents of North and South America and Japan shall be paid by Licensee to
Palm Ireland in accordance with Palm's instructions. All Maintenance and Support
Fees shall be paid by Licensee to Palm, Inc. in accordance with this Section.

       5.2 Royalty-Free Units of Licensee Products. Licensee shall have the
right to manufacture and distribute Licensee Products, provided that it does not
receive any revenue therefrom, [*]

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<PAGE>   15

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

       5.3 [*]

Such option will be Licensee's sole and exclusive remedy for Palm's breach of
this Section 5.3.

[*]

       5.4 Taxes.

              (a) In addition to any other payments due under this Agreement,
Licensee agrees to 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 (i) give Palm prior written notice and give Palm the
opportunity to contest such tax under applicable law, (ii) take advantage of the
reduced Withholding Tax provided for by the applicable tax treaty then in force,
and (iii) and shall be entitled to deduct any Withholding Tax that was withheld
by Licensee 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 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, and Licensee shall promptly pay, such
Withholding Tax, unless Licensee promptly produces official tax receipts
evidence of other payment to Palm.

6.     UPDATE, UPGRADES, NEW VERSIONS, AND ADDITIONAL COMPONENTS

       6.1 Updates, Upgrades and New Versions. Provided that Licensee has paid
Palm the maintenance and support fees due under Section 4.2, during the term of
this Agreement Palm shall deliver to Licensee within a commercially reasonable
period of time and substantially in parallel with Palm's delivery to all Other
Licensees all Updates, Upgrades and New Versions and all revisions or upgrades
to the Palm Development Environment, the Palm Materials, the Palm Device
Applications SDK or the Palm Installation CD Files. In no event will Palm
deliver to Licensee:

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              (a) an Update, Upgrade or New Version to the Palm Software more
than thirty (30) days following both Palm's beta release and production release
of the same.

              (b) a revision or upgrade to the Palm Development Environment, the
Palm Device Applications SDK, the Palm Materials, or the Palm Installation CD
Files more than thirty (30) days following both Palm's beta release and
production release of the same.

Upon delivery of the foregoing items to Licensee, the licenses granted to
Licensee pursuant to Section 2 above shall be deemed to include such items.
Licensee acknowledges that during the term of this Agreement, in addition to
delivering to Licensee the Updates, Upgrades and New Versions, Palm expects to
release additional components and separate modules not described in Section 6.2
(c) (Palm Source Code Enhancements) 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.

       6.2 OS Enhancements.

              (a) Approved OS Enhancements. In the event that Licensee requests
in writing that Palm add new functionality to the Palm OS requiring enhancements
to the Palm Source Code, 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. In the event Palm approves such request
under a proposed schedule reasonably acceptable to Licensee ("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 Palm Software 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.

              (b) Implementation by Licensee. To the extent that Palm rejects
Licensee's request for Palm OS enhancements, or if Palm's proposed schedule is
not reasonably acceptable to License, then Licensee may notify Palm in writing
that Licensee wishes to implement such enhancements itself, whereupon the
parties will negotiate in good faith the terms under which Licensee may develop
the enhancements, including: (i) which Palm Source Code and tools Licensee will
require; (ii) the limitations that will be placed on Licensee's (and any
contractors') use of such Palm Source Code and tools; (iii) the parties
respective intellectual property rights in such enhancements; (iv) Palm's
responsibility, if any, for support and maintenance of such enhancement; and (v)
Licensee's responsibility for any costs and expenses that Palm may incur in
connection with such implementation, support, and maintenance.

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* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

              (c) Palm Source Code Enhancements. Licensee shall have the right
to receive upon its request, any material modification to the Palm Source Code
made by Palm which is not otherwise incorporated into the Palm Software or a New
Version, Upgrade or Update thereof ("Other Palm Modification"), provided that
the modification was not made by or for Palm on behalf of a third party. Upon
delivery to Licensee, such Other Palm Modifications shall be deemed Palm
Software for purposes of the licenses under Section 2, provided, however, that
Licensee acknowledges that such Other Palm Modifications may not be tested or
productized by Palm and that such Other Palm Modifications will be provided
strictly on an "as is" basis and that the provisions of Sections 7 (Support), 10
(Warranty) and 11.1 (Indemnity) shall not apply to such Other Palm
Modifications.

       6.3 APIs. The parties acknowledge and agree that the purpose of this
Section 6.3 is to promote and encourage standardized APIs for the Palm Software
in order to (i) assist the developer community by reducing the time, effort and
cost involved in developing applications compatible with products incorporating
the Palm Software, (ii) provide a rich suite of interoperable applications to
the end user community, and (iii) provide data compatibility between products
incorporating the Palm Software. In addition to the procedure set forth below,
the parties agree to hold regular technical and executive meetings to discuss
the future direction of the Palm Software at dates and times to be agreed upon
by the parties.

[*]

                     (iv) Confidentiality. All notices, meetings and other
communications required under this Section 6.3 shall be confidential and any
information disclosed shall be governed by the provisions of Section 12
(Confidentiality).

       6.4 New Versions.

                     (i) License Response to Requirements Document. Licensee
shall provide Palm with written notice within thirty (30) calendar days of
Licensee's receipt of Palm's product requirements document for such New Version,
setting forth in reasonably sufficient detail Licensee's initial reaction to the
proposed New Version. If in such notice, or at a later date, Licensee informs
Palm that it does not plan to use the New Version, the parties will promptly
meet and discuss the New Version and Licensee's rationale for not wanting to use
it with Licensee Products.

                     (ii) Licensee Use of a New Version. Unless Licensee has a
material and commercially reasonable justification for not using a New Version,
Licensee agrees to use such New Version for (i) each Licensee Product where
development of that product commenced after Licensee's receipt of the beta
release of the New Version from Palm (the "Release Date"), and (ii) for each
Licensee Product where development of that product commenced before the Release
Date from Palm if Licensee upgrades the ROM on the Licensee Product for any
purpose other than a bug fix, work around, or patch to correct any reproducible
error after the Release Date.

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7.     SUPPORT

Palm shall provide Licensee with the following 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 Santa Clara, California site, during Palm's normal business
hours (8:00 a.m. -- 5:00 p.m. California time, Monday through Friday, excluding
holidays) in connection with Licensee's use of the Palm Software to develop and
support the Licensee Products, 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 up to 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. Licensee shall be solely responsible for First
Level Support and Second Level Support of the Licensee Products. 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 Licensee Product. In addition, Palm will provide Licensee with
Third Level Support during the term of this Agreement. The definitions of First,
Second and Third Level Support shall be as set forth in Section 7.3 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.

       7.3 Technical Support.

              (a) Technical Support Levels. For the purposes of Section 7.2
above, "Level" means a certain class of service provided for the Licensee
Products. Definitions are as follows:

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

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                     (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, address, phone numbers, and Internet
e-mail address. Palm will provide a similar list of Designated Support
Personnel. These lists will be reviewed periodically 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, Monday
through Friday, 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 answer 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 Products to Palm's Designated Support Personnel to enable
Palm to properly assist Licensee in resolving problems.

       7.4 Termination of Support for Old Version of Palm Software. Palm's
support obligations hereunder shall terminate within eighteen (18) consecutive
months after the release of a New Version, Upgrade and Update with respect to
the prior version of the Palm Software. For example (i) upon the release of Palm
Software 4.0, Palm will cease supporting Palm Software 3.5 within eighteen
months, and (ii) upon the release of Palm Software 4.1, Palm will cease
supporting Palm Software 4.0 within eighteen months.

       7.5 Exclusions. Palm shall have no obligation to provide Licensee with
any support or maintenance of any kind at any time with respect to (i) the Palm
Source Code or Palm Source Code Documentation, (ii) the integration of any Palm
Software with any Licensee Products beyond those covered by Section 7.1, (iii)
any custom development work for Licensee or any Licensee Products or (iv) any
modifications to any Palm Software.

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* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

       7.6 Failure to Provide New Versions, Updates or Development Support. If
Palm commits a material breach of Section 6.1(a), 6.1(b) or Section 7.1
("Material Support Breach"), and fails to cure such Material Support Breach [*]
after receipt of written notice of such breach from Licensee ("Cure Period"),
[*].

8.     MARKETING AND PUBLICITY

       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.

       8.3 Branding. In accordance with Section 2.3(c), Licensee will use the
Palm Compatibility Trademarks in conjunction with the distribution of the
Licensee Products during the term of this Agreement. Licensee shall use the Palm
Compatibility Trademarks on all Licensee Products, splash screens associated
with the Licensee Products, packaging for the Licensee Products, documentation
for the Licensee Products and all advertising, promotional and other collateral
printed materials for the Licensee Products.

       8.4 Developer Support. Licensee shall participate in developer programs
as set forth in Exhibit G (Developer Programs) attached hereto. In order to
enable Palm to support Licensee's registered developers in their development
activities on the Palm OS platform, Licensee will cooperate with Palm in order
to register such developers with Palm as well.

9.     PROPRIETARY RIGHTS

       9.1 Title. Licensee acknowledges that the Palm Software and Palm
Materials are the valuable trade secrets of Palm. Palm shall be the sole and
exclusive owner of the Palm Software and Palm Materials. Subject always to
Palm's ownership of the Palm Software, Licensee shall be the sole and exclusive
owner of the Licensee Products and Licensee Software. Applications for the
Licensee Products shall belong solely and

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<PAGE>   21

exclusively to the party that developed such applications. Licensee acknowledges
that Palm is the sole owner of all trademark rights in the Palm Trademarks
specified in Exhibit H (Palm Trademarks). Licensee agrees to do nothing
inconsistent with such ownership. All use of the Palm Trademarks by Licensee
shall inure to the benefit of, and be on behalf of, Palm.

       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 and Palm Materials. Further, Licensee agrees that it will cause to
appear on the container or label for each unit of the Licensee Products
manufactured hereunder appropriate patent and copyright notices and proprietary
data legends as contained in the Palm Software delivered by Palm or as otherwise
reasonably required by Palm.

       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 will: (a) identify and
license the software developed by Licensee hereunder in all proposals and
agreements with the United States Government or any contractor therefor; and (b)
legend or mark such software provided pursuant to any agreement with the United
States Government or any contractor therefor in a form sufficient to obtain for
Palm and its suppliers the protection intended by this Section 9.3 (U.S.
Government Restricted Rights Legend). Licensee agrees not to remove or deface
any portion of any legend on any software or documentation delivered to it under
this Agreement.

       9.4 End-User Licensing. Licensee agrees that each copy of the software
distributed by Licensee hereunder will be accompanied by a copy of Licensee's
standard end user software license; provided, however, that the terms of such
license will be drafted so as to apply to the Palm Software and shall be at
least as protective of the Palm Software as: (i) the terms and conditions
Licensee uses for its own software products; (ii) the minimum terms and
conditions set forth in Exhibit F-1 (Minimum Terms and Conditions of End User
License); and (iii) the terms and conditions governing this Agreement. Licensee
agrees to include in such terms and conditions for use outside of the United
States any country-specific provisions needed to comply with the foregoing, and
agrees to enforce the terms and conditions applicable to the Palm Software
contained in such license.

       9.5 Palm Source Code. Licensee acknowledges that Palm Source Code and
Palm Source Code Documentation are valuable trade secrets and Confidential
Information of Palm. Palm shall be the sole and exclusive owner of the Palm
Source Code and Palm Source Code Documentation. Licensee agrees that it will not
remove, alter or otherwise obscure any proprietary rights notices appearing in
the Palm Source Code or Palm Source Code Documentation. The parties respective
intellectual property

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* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

rights in and to Licensee Modifications shall be as set forth in Exhibit I or an
Attachment to this Agreement, pursuant to Section 2.9(b); [*]. In either event,
upon thirty (30) days written notice from Palm, Licensee shall provide to Palm,
in both source code and object code formats, any Licensee Modifications that
Palm requests.

10.    WARRANTY

       10.1 Palm Warranty. Palm warrants that for a period of ninety (90) days
after receipt by Licensee of the Palm Software, Palm Device Applications SDK
(except for any third-party developer tools), Palm Development Environment
(except for any third-party developer tools), Palm Installation CD Files and
Palm Materials (the "Warranty Period") the media on which Palm delivers the Palm
Software, Palm Device Applications SDK (except for any third-party developer
tools), Palm Development Environment (except for any third-party developer
tools), Palm Installation CD Files and Palm Materials to Licensee shall be free
of defects in material and workmanship and the Palm Software will perform
substantially in accordance with the Palm End-User documentation. As Licensee's
sole and exclusive remedy for any breach of such warranty, Palm shall replace
any such defective media and/or undertake to correct such performance problems
in accordance with Sections 6.1 and 7 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 ANY MATTER WHATSOEVER. IN
PARTICULAR, ANY AND ALL WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, ACCURACY, SATISFACTORY QUALITY, NON-INFRINGMENT, COURSE OF DEALING OR
COURSE OF PERFORMANCE ARE EXPRESSLY EXCLUDED.

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       10.2 Licensee Product Warranty. Licensee shall be solely responsible for
customer warranties of any and all products manufactured by Licensee pursuant to
this Agreement.

       10.3 Source Code Warranty Disclaimer. PALM MAKES NO WARRANTIES, EXPRESS,
IMPLIED OR STATUTORY, WHATSOEVER, AS TO THE PALM SOURCE CODE OR PALM SOURCE CODE
DOCUMENTATION. IN PARTICULAR, ANY AND ALL WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, ACCURACY, SATISFACTORY QUALITY, NON-INFRINGMENT,
COURSE OF DEALING OR COURSE OF PERFORMANCE ARE EXPRESSLY EXCLUDED.

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, Palm
Materials, Palm Development Environment (except for any third-party development
tools), Palm Installation CD Files, Palm Device Application SDK (except for any
third-party development tools), or Palm Trademarks licensed pursuant to this
Agreement infringe (i) any patents in the U.S., Canada, Japan or European
community, (ii) any copyrights worldwide, or (iii) any trademarks in any
countries in which Palm markets products in connection with the Palm Trademarks,
or misappropriate any trade secrets, 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, Palm Materials, Palm Development Environment, Palm Installation CD
Files, Palm Device Application SDK, 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) the Other Palm Modifications or modifications to the Palm
Software, Palm Materials, Palm Development Environment, Palm Device Application
SDK or Palm Installation CD Files requested by Licensee, including, but not
limited to, the Licensee Modifications.

       11.2 Remedies. In the event Palm reasonably believes that the use or
distribution of any Palm Software, Palm Materials, Palm Development Environment,
Palm Installation CD Files, Palm Device Application SDK, or Palm Trademarks is
likely to be enjoined, Palm may, at its option, either: (i) substitute
functionally equivalent non-infringing Palm Software, Palm Materials, Palm
Development Environment, Palm Installation CD Files, or Palm Device Application
SDKs, as the case may be; (ii) modify the infringing item so that it no longer
infringes but remains 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 take back such infringing item or items and

Page 23
<PAGE>   24

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

terminate only that portion of the license associated with respect to such item
or items, subject to a mutually satisfactory equitable reduction in the Royalty
and fees payable under this Agreement. Should the use or distribution of any
Palm Software, Palm Materials, Palm Development Environment, Palm Installation
CD Files, Palm Device Application SDK, or Palm Trademarks be enjoined, Palm
shall, at its option, either: (i) substitute functionally equivalent
non-infringing Palm Software, Palm Materials, Palm Development Environment, Palm
Installation CD Files, or Palm Device Application SDK as the case may be; (ii)
modify the infringing item so that it no longer infringes but remains
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 take back such infringing item or items and terminate only that portion of
the license associated with respect to such item or items, subject to a mutually
satisfactory equitable reduction in the Royalty and fees payable under this
Agreement. Notwithstanding the foregoing, Licensee acknowledges that Palm may
undertake to obtain patent licenses from third parties relating to the Palm
Software, Palm Development Environment, Palm Installation CD Files, and/or Palm
Device Application SDK and in such event the royalty obligation for the Licensee
Products arising from such patent 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
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 or its subsidiaries alleging that the Licensee
Products, Licensee Software and/or related materials infringe (i) any patents in
the U.S., Canada, Japan or the European Community, (ii) any copyrights
worldwide, or (iii) any trademarks in any countries in which Licensee markets
products in connection with the Palm Trademarks, or misappropriates any trade
secrets, 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 Licensee Products or
Licensee Software together with other software, materials or products not
integrated or combined by Licensee, if the infringement would have been avoided
in the absence of such integration or combination, or (b) use or distribution of
Palm Software or Palm Materials. SECTION 11.2 AND 11.3 STATES 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.

       11.4 Other Indemnity. Each party shall indemnify and defend the other
against all claims, suits, losses, expenses and liabilities (including
reasonable attorneys' fees) for

Page 24
<PAGE>   25

bodily injury, personal injury, death and tangible property damage as a result
of the negligence, intentional wrongful acts or omissions, or misrepresentations
of the indemnifying party or any person for whose actions it is legally liable,
provided that the indemnifying party is promptly notified, rendered reasonable
assistance by the indemnified party as required, and permitted to direct the
defense or settlement negotiations.

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. 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). 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. 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 restriction on disclosure; or (e) independently developed by the
Receiving 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)

Page 25
<PAGE>   26

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.

       12.3 Other Terms. Palm shall designate individuals ("Designated
Recipients") to receive and manage Licensee's confidential information. Upon
receipt of written notice from Palm indicating such Designated Recipients,
Licensee shall restrict its disclosure of confidential information to such
Designated Recipients. Palm may change or add any Designated Recipients upon
fifteen (15) days prior written notice to Licensee. The Designated Recipients
shall disseminate Licensee's confidential information only to employees and
contractors of Palm on a need to know basis for purposes of implementing the
intent of this Agreement. If an engineer performing services for Palm is given
access to any of Licensee's confidential information and such engineer also
performs services for any Other Licensee, then such engineer shall be required
to sign a separate written non-disclosure agreement prohibiting such engineer
from using any of Licensee's confidential information for any purpose other than
effecting the intent of this Agreement.

13.    LIMITATION OF LIABILITY

       EXCEPT FOR LIABILITY FOR BREACH OF SECTION 12 (CONFIDENTIALITY), AND
EXCEPT AS SPECIFICALLY PROVIDED IN SECTION 11 (INDEMNIFICATION): (A) NEITHER
PARTY SHALL HAVE ANY LIABILITY FOR INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL
OR PUNITIVE DAMAGES 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 AND EVEN
IF ANY LIMITED REMEDY SPECIFIED IN THIS AGREEMENT IS DEEMED TO HAVE FAILED OF
ITS ESSENTIAL PURPOSE; AND (B) IN NO EVENT SHALL PALM'S TOTAL LIABILITY UNDER
THIS AGREEMENT EXCEED THE AMOUNTS PAID BY LICENSEE TO PALM UNDER THIS AGREEMENT.

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

Page 26
<PAGE>   27

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 eight (8) years ("Initial Term"), unless earlier terminated in
accordance with its terms. This Agreement may be renewed solely by the mutual
written agreement of the parties, which shall specify the applicable Royalties
and any other additional terms as agreed by the parties at that time.

       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.

Page 27
<PAGE>   28

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

       15.4 Effect of Termination.

              (a) Upon the termination or expiration of this Agreement: (i) the
licenses and other provisions of this Agreement shall be terminated; (ii)
Licensee's obligation to pay all sums past or currently due hereunder on the
date of such termination or expiration 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, upon any
expiration or termination (other than for Licensee's breach), Licensee may elect
to retain the licenses specified in Section 2 for two (2) years following such
expiration or termination for the versions of the Palm Software, Palm Device
Applications SDK, Palm Development Environment and Palm Installation CD Files
and the Palm Materials that have been delivered to Licensee prior to such
expiration or termination, on the following terms: (a) the Royalty for Device
Products shall be [*]; (b) Palm's obligations under Sections 6 and 7, and
Licensee's obligations under Section 4.2, will [*]; and (c) the remaining
provisions of this Agreement will remain in effect with regard to the Licensee
Products for such two-year period.

              (b) Notwithstanding the provisions of subsection (a) above: (i)
during the ninety (90) days following the expiration of this Agreement, Palm
will continue to provide Licensee with Third Level Support in accordance with
Section 7.2; and (ii) Licensee will continue to have the right to distribute any
Licensee Products that have been manufactured prior to the date of such
expiration until such products are exhausted

       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 2.3(d) (Trademark Ownership), 2.9(i) (Survival), 4.1
(Royalties), 4.3 (Audit Rights), 5.3 (Taxes), 8.2 (Publicity), 9 (Proprietary
Rights), 10 (Warranty), 11 (Indemnification), 12 (Confidentiality), 13
(Limitation of Liability), 14 (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 of this Agreement and remain in effect for
a period of five (5) years thereafter or the period specified in this Agreement,
if longer.

Page 28
<PAGE>   29

       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 Products 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 facsimile, (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, Inc. or           Palm, Inc.
       Palm Ireland:                 5470 Great America Parkway
                                     Santa Clara, CA 95052
                                     Attention: Senior Director of Worldwide
                                            Licensing and Business Development
                                     Fax: (408) 326-9791

       with copies to:               Palm, Inc.
                                     5470 Great America Parkway
                                     Santa Clara, CA 95052
                                     Attention: General Counsel
                                     Fax: (408) 326-9003

Page 29
<PAGE>   30

       If to Handspring, Inc. or     Handspring, Inc.
       Handspring International:     189 Bernardo Avenue
                                     Mountain View, California 94043
                                     Attention: Chief Executive Officer
                                     Fax: (650) 230-5095

       with copies to:               General Counsel
                                     (at the same address above)
                                     Fax: (650) 230-5347

                                     VP, Engineering
                                     (at the same address above)
                                     Fax: (650) 230-5125

Such notice will be treated as having been received upon the earlier of actual
receipt or five (5) days after post marking in the event such notice is provided
by mail as described above.

       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; provided, however, that the foregoing shall not be deemed
or construed to restrict, in any manner, a parties ability to submit patent
matters to the U.S. International Trade Commission for resolution.

Page 30
<PAGE>   31

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

       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, riot, 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, except upon written notice to Palm to a purchaser of
substantially all of the stock or assets of Licensee ("Purchaser") who: (i)
agrees in writing to be bound by the terms of this Agreement; (ii) is not a
Competitor; and (iii) uses the Palm Software under this Agreement solely in
Licensee Products of Licensee or its successor operations within such purchaser.
Upon an assignment of this Agreement by Licensee to a Purchaser, (i) the
provisions of Section 2.1(b)(ii) (Derivative Works; OS Enhancements), 2.9(b)
(Right to Modify), Section 5.3 (Most Favored Licensee), Section 7.6 (Failure to
Provide New Versions, Updates or Support), 6.2 (OS Enhancements) and the last
sentence of Section 15.4(a) (Effect of Termination) shall immediately terminate
and be null and void, unless otherwise agreed by Palm in writing, and (ii) the
term of this Agreement will expire on the first to occur of the end of the
Initial Term or four (4) years after the date of the assignment. 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,

Page 31
<PAGE>   32

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, including,
without limitation, that certain Software License Agreement entered into by the
parties on September 24, 1998, as amended, which is hereby terminated in its
entirety and superceded by this Agreement.

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

PALM, INC.                              HANDSPRING, INC.

By: /s/ ALAN KESSLER                    By: /s/ DONNA DUBINSKY
   -------------------------------         -------------------------------------

Name: Alan Kessler                      Name: Donna Dubinsky
     -----------------------------           -----------------------------------

Title: GM Platform Solutions            Title: Chief Executive Officer
      ----------------------------            ----------------------------------

PALM IRELAND INVESTMENT                 HANDSPRING INTERNATIONAL SARL

By: /s/ STEPHEN YU                      By: /s/ BERN WHITNEY
   -------------------------------         -------------------------------------

Name: Stephen Yu                        Name: Bern Whitney
     -----------------------------           -----------------------------------

Title: Director                         Title: Director
      ----------------------------            ----------------------------------

Page 32
<PAGE>   33

List of Exhibits

A     Palm Software
B     Test Criteria
C     Palm Trademark Policy Guidelines
D     Royalties and Fees
E     Palm Support Services
F-1   Minimum Terms and Conditions of End User License
F-2   Desktop Site License; Minimum Terms and Conditions of End User License
G     Developer Programs
H     Palm Trademarks
I     Modifiable Source Code

Page 33
<PAGE>   34

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

                                    EXHIBIT A

                                PALM DELIVERABLES

1.0    PALM SOFTWARE

Palm Software is that software that the Licensee can redistribute as part of
Licensee Products pursuant to Section 2.2(a) (Scope of License). It is delivered
to Licensee on the Palm OS Development Kit CD and includes the following items
listed below as more fully described in Sections 1.1 through 1.6 of this Exhibit
A below:

[*]

2.0    PALM DEVICE APPLICATIONS SDK

[*]

3.0    PALM DEVELOPMENT ENVIRONMENT

[*]

4.0    PALM END USER DOCUMENTATION

[*]

5.0    PALM INSTALLATION CD FILES

[*]

6.0    PALM TECHNICAL DOCUMENTATION

[*]

Page 34
<PAGE>   35

                                    EXHIBIT B

                                  TEST CRITERIA

                             Palm Powered(TM) Logo
                              Compatibility Program

Page 35
<PAGE>   36
Palm Computing(R) Platform

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

                                Table of Contents

<TABLE>
<S>                                                                      <C>
Welcome...................................................................3
Frequently Used Terms.....................................................3
[*]
Licensee Questionnaire....................................................4
[*]
</TABLE>

                               Palm Confidential

<PAGE>   37
Palm Computing(R) Platform

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

Welcome

Welcome to the Palm Powered(TM) Logo Compatibility Program (the "Program")
designed by Palm, Inc. The testing under the Program will be executed by one of
the independent test labs certified by Palm ("Test Labs"). All Program specifics
including process, test design and Program design have been approved and are
enforced by Palm, Inc.

The purpose of this document is to provide Palm licensees ("Licensees") with
detailed information about the compatibility certification process.
Comprehensive test plans for baseline features are available and a customized
test plan will be created for each Licensee's device or handheld by the Test
Lab. Upon successful completion of all parts of the Program, Licensees will
receive the right to use the Palm Powered(TM) logo from Palm with respect to a
particular device.

Palm looks forward to contributing to its Licensees' success and working with
each Licensee as part of the Program.

Frequently Used Terms

[*]

                               Palm Confidential
<PAGE>   38
Palm Computing(R) Platform
Licensee Questionnaire
Contact Information (completion is required)

Company Name
             -------------------------------------------------------------------
Address
       -------------------------------------------------------------------------
City, State, Zip
                ----------------------------------------------------------------
Main Phone #
             -------------------------------------------------------------------
Fax #
       -------------------------------------------------------------------------

Email Address
             -------------------------------------------------------------------

Company Website URL
                      ----------------------------------------------------------

Contact Person for Test Results
                               -------------------------------------------------

Title and Direct Phone or extension #
                                      ------------------------------------------

Contact Person for Test/Product Questions
                                          --------------------------------------

Direct Phone # and email
                        --------------------------------------------------------

Device Name
             -------------------------------------------------------------------

Version
        ------------------------------------------------------------------------

Device Category and type
                         -------------------------------------------------------

Product Description
                     -----------------------------------------------------------

Has the product been pre-tested?          YES         NO

How is the product currently being tested? Please provide detailed testing
information as necessary.

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

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

Will the device be localized for international sale? If so, for which languages?

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

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

                               Palm Confidential
<PAGE>   39
Palm Computing(R) Platform

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

[*]

<TABLE>
<CAPTION>
                                                            Not            Included/      * Brief description
[*]                                         Included        Included       Modified       of modification
-------------------------------------------------------------------------------------------------------------
<S>                                         <C>             <C>            <C>            <C>
[*]
-------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

-------------------------------------------------------------------------------------------------------------
</TABLE>

                               Palm Confidential

<PAGE>   40
Palm Computing(R) Platform

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

[*]

<TABLE>
<CAPTION>
                                                            Not            Included/      * Brief description
[*]                                         Included        Included       Modified       of modification
-------------------------------------------------------------------------------------------------------------
<S>                                         <C>             <C>            <C>            <C>
[*]
-------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

-------------------------------------------------------------------------------------------------------------
</TABLE>

[*]

                               Palm Confidential
<PAGE>   41
Palm Computing(R) Platform

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

[*]

<TABLE>
<CAPTION>
[*]                      BRIEF DESCRIPTION OF FEATURE AND/OR FUNCTION                    RISK ASSESSMENT
------------------------------------------------------------------------------------------------------------
<S>                      <C>                                                      <C>      <C>      <C>
                                                                                  [ ] Low  [ ] Med  [ ] High
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</TABLE>

                               Palm Confidential
<PAGE>   42
Palm Computing(R) Platform

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

[*]

Palm, Inc.
5470 Great America PKWY
Santa Clara, C.A. 95052

www.palm.com
or
www.palmos.com

PCPLCP 0399 (part Eer?)

Copyright 2000 Palm, Inc or its subsidiaries. All rights reserved. Palm OS,
Graffiti, Hotsync, PalmPoint, PalmModem, Palm OS, and Palm Connect, are
registered trademarks, and Palm, PalmGlove, iMessenger, Palm Powered, the Palm
logo and the Palm Powered logo are trademarks of Palm, Inc. or its subsidiaries.
Other product and brand names may be trademarks or registered trademarks of
their respective owners. Printed in the U.S.A.

                               Palm Confidential
<PAGE>   43

                                    EXHIBIT C

                            PALM TRADEMARK GUIDELINES

                    PALM, INC. EXTERNAL TRADEMARK GUIDELINES

The Palm Brand Identity is a valuable asset to Palm, Inc. and delivers a unique
promise to its customers: solutions that are simple, elegant, and truly useful.
Everyone - including Palm licensees, employees, vendors, distributors,
consultants, partners, and developers - must be responsible for using Palm
trademarks, logos, and trade dress correctly everywhere, all the time,
internally and externally.

These guidelines will help you use Palm trademarks correctly and consistently,
thus increasing the value of these important assets to the entire Palm economy.
Please read them in their entirety.

THE TOP THREE TRADEMARK RULES

1.       ALWAYS USE PALM TRADEMARKS AS ADJECTIVES FOLLOWED BY APPROPRIATE NOUNS.
         Do not hyphenate trademarks with other words or use them as verbs or
         nouns. The appropriate nouns for the various Palm trademarks are listed
         at the end of this document.

         -  DON'T: Use your Palm(TM) to organize all your data.

         -  DON'T: HotSync(R) your handheld to backup your data.

         -  DO: Use your Palm(TM) handheld to organize all your data.

         -  DO: Perform a HotSync(R) operation to backup your data.

2.       ALWAYS USE THE CORRECT SPELLING AND FORMAT OF TRADEMARKS AND LOGOS WITH
         THE CORRECT TRADEMARK NOTICE SYMBOLS IN SUPERSCRIPT OR SUBSCRIPT. Check
         http://www.palm.com/about/trademark.html for the correct format of Palm
         trademarks. Check the mark owner's website for third party marks.

         -  DON'T: Use the Hotsync(R) function to back up data.

         -  DO: Use the HotSync(R) function to back up data.

         -  DO: Graffiti(R) handwriting recognition software is built into all
            Palm(TM) handhelds.

3.       ALWAYS USE TRADEMARKS, LOGOS, AND TRADE DRESS ONLY IN THE CORRECT
         CONTEXTS. Some brand elements are intended for use only with certain
         products or by particular parties (e.g., Palm only, or Palm and its
         partners).

         -  DON'T: Use the Palm corporate logo or trade dress for licensee
            products.

         -  DO: Use the Palm Powered logo on Palm OS licensee and OEM products.

         -  DO: Use the Palm Powered Compatible Solution logo on
            compatibility-tested

         -  software.

         -  DO: Use the Designed for Palm Handhelds logo on approved
            hardware/accessories.

DEVELOPER NAMES

Third parties should not include "Palm" as part of their company, product,
service, and domain or institution names. Palm will not partner with or promote
companies that do so. Rather than use names like "PalmChess" or "PalmDatacenter"
to show a relation to Palm or its products, third parties should use one of
these approved taglines:

      - "for Palm OS(R)"                 - "for Palm(TM) handhelds"
      - "for Palm OS(R) handhelds"       - "for Palm Powered(TM) handhelds"

After passing compatibility testing and signing the appropriate agreements,
third parties may also use the Palm Powered Compatible Solution logo on software
and the Designed for Palm Handhelds logo on hardware and accessories.

Third-party websites should not use "Palm" as part of their top-level domain
names. After signing a no-fee license agreement, they can use "PalmOS" as part
of their top-level domain names. They can also use "Palm" or "PalmOS" as
internal parts of URLs without permission as long as such use is not likely to
suggest sponsorship by, or affiliation with, Palm.

      -  DON'T: www.PalmCentral.com

      -  DO: www.PalmOSCentral.com (only under royalty-free license from Palm)

      -  DO: www.adobe.com/products/acrobat/ReaderforPalmOS

NOTICE SYMBOLS

To put the world on notice that Palm claims exclusive rights in its trademarks,
please use the notice symbol (R) to indicate registered trademarks and (TM) to
indicate unregistered trademarks. Wherever possible, trademark notice symbols
should be superscripted after word marks and subscripted after logos. If
superscript or subscript is not available or may not be transmitted correctly
(e.g., in email), use parentheses: (TM) and (R). Notice symbols should ALWAYS
appear with Palm logos. Generally, notice symbols should appear with Palm word
marks in their first AND most prominent occurrence in a document. If a
particular page is likely to be separated from the whole, such as a chart or
presentation slide, mark the first and most prominent occurrence in EVERY PAGE.

NON-TRADEMARK USES

Trademark notice symbols are used with words only when they function as
trademarks to identify a product or service offered for sale, not when the words
are used as company names or in other ways. For example:

        -       "QUICKLY ENTER TEXT USING THE PALM(TM) PORTABLE KEYBOARD." Use a
                TM symbol because the portable keyboard is a product offered for
                sale.

        -       "PALM EMPLOYEES SHOULD WEAR PALM BLUE TO TRADE SHOWS." Do not
                use a TM symbol because "employees" and "Blue" are not products
                offered for sale.

        -       "PALM IS THE LEADING MANUFACTURER OF HANDHELD COMPUTERS." Do not
                use a TM symbol because "Palm" is used as a company name.

TRADEMARK ATTRIBUTION BLOCKS

In order to protect Palm, Inc.'s valuable intellectual property rights, all
publicly distributed communications mentioning Palm trademarks should include an
attribution block. Communications containing most or all of the Palm trademarks
should follow the LONG-FORM FORMAT:

      Palm OS, Palm Computing, HandFAX, HandSTAMP, HandWEB, Graffiti, HotSync,
      iMessenger, MultiMail, Palm.Net, PalmPak, PalmConnect, PalmGlove,
      PalmModem, PalmPoint, PalmPrint, and PalmSource are registered trademarks
      of Palm, Inc. Palm, the Palm logo, MyPalm, PalmGear, PalmPix, PalmPower,
      AnyDay, EventClub, HandMAIL, the HotSync logo, PalmGlove, Palm Powered,
      the Palm trade dress, Smartcode, Simply Palm, WeSync and Wireless Refresh
      are trademarks of Palm, Inc.

Of course, the attribution block may be shortened by removing any trademarks
that are not referenced in a particular communication. For example, an
advertisement containing references to HotSync technology, the Palm OS Platform,
a photo of a Palm m100 handheld and featuring the Palm Powered logo should
contain an attribution block following the SHORT-FORM FORMAT:

      HotSync and Palm OS are registered trademarks of Palm, Inc. Palm, the Palm
      logo and Palm Powered and the Palm Powered logo are trademarks of Palm,
      Inc.

Again, this format should be revised to include ONLY the trademarks actually
used in a particular document.

A frequently UPDATED COPY of the Palm trademark attribution block can be found
at:

       http://www.palm.com/about/trademark.html

PALM TRADE DRESS

Palm's trade dress is the visual vocabulary of the Palm brand and includes the
look and feel of packaging and web properties, the distinctive blue, silver and
black color combinations, typography, locator ring and orbit, product designs,
and handheld icons (Address Book, Memo, Home, Find, HotSync, etc.). Palm rarely
allows third parties to use its trade dress, and then only under restrictive
cobranding contracts.

PALM LOGOS

Palm logos should be reproduced exactly as specified in the Palm Brand Identity
Guidelines booklet or CD. The Palm corporate logo should be used only by Palm,
Inc. and its authorized agents, resellers, and distributors to promote Palm and
Palm products. Palm logos should never be inserted into text, headlines, or body
copy. In some instances, Palm, Inc. will allow third parties that sign a linking
agreement to use a small version of the Palm logo as a hyperlink to the Palm.com
website.

TRADEMARK GUIDELINES

These EXTERNAL TRADEMARK GUIDELINES are for distribution to all third parties,
including Palm licensees, partners, resellers. When these guidelines are
revised, the UPDATED VERSION will be posted at:

      http://www.palm.com/about/trademark.html

Palm employees may download copies of Palm's INTERNAL TRADEMARK GUIDELINES from
the legal section of Palm's intranet.

For materials distributed only in a SPECIFIC COUNTRY, copies of GUIDELINES, to
report VIOLATIONS of these guidelines or for questions regarding Palm
trademarks, please contact:

     JASON FIRTH                           VELINDA GALVIN
     Senior Trademark Counsel              IP Paralegal
     408-878-2751                or        408-878-2748
     trademarks@corp.palm.com              trademarks@corp.palm.com

ADDITIONAL TRADEMARK RULES

NEVER USE TRADEMARKS AS POSSESSIVES.
      -  DON'T: Compare iMessenger's(TM) features.

      -  DO: Compare features of the iMessenger(TM) application.

NEVER PLURALIZE TRADEMARKS.
      -  DON'T: Palms(TM) feature backlit screens.

      -  DO: Palm(TM) handhelds feature backlit screens.

NEVER HYPHENATE TRADEMARKS.
      -  DON'T: HotSync(R)-enabled handhelds can synchronize remotely.

      -  DO: HotSync(R) technology enables remote synchronization.

NEVER EMPHASIZE THE DESCRIPTIVE ASPECTS OF TRADEMARKS.
      -  DON'T: The Palm(TM) Vx handheld easily fits in your palm.

      -  DON'T: We put information in the palm of your hand.

      -  DO: The Palm(TM) Vx handheld easily fits in a shirt pocket.

      -  DO: We put information at your fingertips.

TRADEMARK AND NOUN LIST

Below is a list of Palm trademarks along with the nouns with which the marks are
commonly used. All nouns should appear in lowercase except where accepted
capitalization rules dictate otherwise (headings, titles, etc.). The nouns may
be pluralized when necessary. The (TM) and (R) symbols reflect the trademark
registration status in the U.S. Trademark Office.

ANYDAY(TM)
 - services

GRAFFITI(R)
 - alphabet
 - character
 - command stroke
 - handwriting recognition software
 - power writing software
 - writing area

HOTSYNC(R)
 - button
 - cable
 - cradle
 - icon
 - manager
 - operation
 - server
 - technology

IMESSENGER(R)
 - application
 - message

MULTIMAIL(R)
 - software
 - professional email software

MYPALM(TM)
 - web clipping application
 - services

PALM(TM)
 - accessory
 - handheld
 - handheld computer
 - products
 - software

PALMCONNECT(R)
 - Serial Kit
 - USB Kit

PALMGLOVE(TM)
 - Case

PALMMODEM(R)
 - AC adapter
 - connectivity kit
 - accessory

PALM.NET(R)
 - account
 - service

PALMPAK(R)
 - expansion card

PALM OS(R)
 - platform
 - software
 - handheld

PALMPOINT(R)
 - dual action stylus

PALM POWERED(TM)
 - handheld
 - handheld computer
 - mobile phone
 - smart phone
 - solution

PALMSOURCE(R)
 - conference

Page 36
<PAGE>   44
                                   EXHIBIT C

                           PALM TRADEMARK GUIDELINES

[PALM POWERED LOGO]

                                        Hardware Logo
                                        Placement
                                        Guidelines

Palm, Inc.
5470 Great America Parkway
Santa Clara CA 95052
408.326.9000
www.palm.com

(C) 2000 Palm, Inc. All rights reserved. Palm OS                     [PALM LOGO]
is a registered trademark, and Palm, Palm
Powered, the Palm logo, and the Palm Powered
logo are trademarks of Palm, Inc. or its
subsidiaries.

<PAGE>   45
[PALM LOGO]

Introduction

PALM POWERED(TM) BRAND IDENTITY

The Palm OS(R) platform, the foundation for a whole range of handheld devices
from Palm, Inc. and its licensees, as well as for thousands of applications from
software developers, is the fastest growing handheld computing platform in
history. As a licensee of the Palm OS, you are contributing immensely to its
success.

To help you and your products be successful and to protect the investment in our
own trademark and branding efforts, we are supplying you with these logo
guidelines to ensure the protection and maintenance of the Palm Powered(TM)
brand identity.

The Palm Powered logo lets customers know that a product or technology is
designed for, and runs on the Palm OS platform. These guidelines will explain
how the Palm Powered logos are to be used.

Please take a moment to review these materials and contact Joyce Morrell,
joyce_morrell@palm.com, or Dawn Andersen, dawn_andersen@palm.com, with any
questions you may have regarding your company's proposed use of trademarks and
other marketing elements.

Palm Powered(TM) Logo Usage on Hardware

WHO CAN USE IT

The Palm Powered(TM) logo is to be used exclusively by the official licensees
of the Palm OS(R), and by Palm's OEM partners. Corporations wishing to use
this mark must have a licensing or OEM agreement with Palm, Inc. Terms may vary.

2

<PAGE>   46
[PALM LOGO]

LOGO USAGE ENVIRONMENT CONSTRAINTS

The Palm Powered(TM) logo can only co-exist with the brand or logo of the
company manufacturing the product, or with the individual name or brand of this
product, and the company providing wireless service. It cannot co-exist with
other operating system names.

Palm Powered logos should be reproduced exactly as specified in this document.
The Palm Powered logo should only be used by authorized agents to promote the
Palm OS(R) software within devices. The Palm Powered logo should never be
inserted into text, headlines, or body copy.

REMEMBER:

1. You may only use the logo as a symbol that your product operates on the Palm
OS. You may not imply that Palm in any way endorses your product.

2. Use of this logo must be associated with a specific product, not a company or
company brand. Use of the logo implies the product meets minimum compatibility
standards. The use of this logo does not imply product endorsement by Palm, nor
does it imply quality standards for products based on the Palm OS.

3. You may not alter the logo in any way.

WHERE TO USE THE PALM POWERED(TM) LOGO

USE THE LOGO ON THE FRONT AND/OR BACK OF THE HARDWARE DEVICE ITSELF.

The Palm Powered(TM) logo is to be used on all hardware devices based on the
Palm OS(R) platform. The recommended placement is on the front and/or back of
the hardware device, to help customers recognize that the device operates on the
Palm OS platform.

     [PICTURE OF FRONT OF PALM]              [PICTURE OF BACK OF PALM]
          FRONT OF DEVICE                         BACK OF DEVICE

             FRONT OF                                 BACK OF
              DEVICE                                  DEVICE
     [PICTURE OF FRONT OF DEVICE]           [PICTURE OF BACK OF PALM]

4
<PAGE>   47
[PALM LOGO]

LOGO USE ON HARDWARE DEVICES

PALM POWERED(TM) LOGO

The Palm Powered logo has been designed to convey a strong and direct message in
an elegant and compact shape, easy to fit and to render on the limited space of
hardware devices. It is meant to indicate that the product which bears the logo
will provide its owner with the unique user experience associated with the Palm
OS(R) platform.

[PALM POWERED LOGO]   RESTRICTED LOGO

                      PalmPWR__RSTR.eps
                      Limited-use logo. For use on hardware
                      devices only.

[PALM POWERED LOGO]   RESTRICTED LOGO REVERSED

                      PalmPWR__RSTRREV.eps
                      Limited-use logo. Use when printing on
                      a colored device. For use on hardware
                      devices only.

BACKGROUNDS

On colored devices [e.g., where color might show through the logo], use the Palm
Powered(TM) restricted logo reversed only.

     [PICTURE OF FRONT OF PALM]              [PICTURE OF BACK OF PALM]
          FRONT OF DEVICE                         BACK OF DEVICE

             FRONT OF                                 BACK OF
              DEVICE                                  DEVICE
     [PICTURE OF FRONT OF DEVICE]           [PICTURE OF BACK OF PALM]

All electronic files are Adobe Illustrator(+) 7.0 EPS format.

6
<PAGE>   48
[PALM LOGO]

CLEAR SPACE AND SIZING

CLEAR SPACE IN RELATION TO OTHER LOGOS

The Palm Powered(TM) logo must stand alone and should be located in either the
top left, center column, or bottom right of any given layout. Use the height of
the "l" to measure the minimum clear space distance around the logo to ensure
that the logo appears in a clear visual field. No other object such as type,
photography, borders, or edges, etc. may appear in the empty space.

[LAYOUT]    [PALM POWERED LOGO]     [LAYOUT]    [PALM POWERED LOGO]

[LAYOUT]    [PALM POWERED LOGO]

SIZING

The Palm Powered(TM) logo should not be scaled below .25 x .625 inches (.635 x
1.587 cm). The Palm Powered logo can be scaled up to any size that doesn't break
the clear space rule.

When scaling the Palm Powered logo, the outer stroke weight should remain .25
points.

[PALM POWERED LOGO]    .25 inches
                       .635 cm

 .625 inches
1.587 cm

BACKGROUNDS

On colored devices [e.g., where color might show through the logo], use the Palm
Powered(TM) restricted logo reversed only.

[PALM POWERED LOGO]

8
<PAGE>   49
[PALM LOGO]

LOGO USAGE DON'TS

Don't combine the logo with any other feature including, but not limited to,
other logos, words, graphics, photos, slogans, headlines, numbers, design
features, or symbols.

                            [PALM POWERED LOGO] group

                 DON'T combine the logo with any other feature.

                         [HORIZONTAL PALM POWERED LOGO]

                 DON'T alter horizontal orientation of the logo.

[PALM POWERED LOGO]                          [PALM POWERED LOGO]
DON'T leave off word mark [(TM)].            DON'T alter stroke weight.

[PALM POWERED LOGO]                          [PALM POWERED LOGO]
DON'T scale logo disproportionately.         DON'T use when printing on a
                                             colored device.

10
<PAGE>   50
[PALM POWERED LOGO]                     Marketing
                                        Communications
                                        Guidelines

Palm, Inc.

5470 Great America Parkway
Santa Clara CA 95052
408.326.9000
www.palm.com

(C) 2000 Palm, Inc. All rights reserved. Palm OS             [PALM POWERED LOGO]
is a registered trademark, and Palm, Palm
Powered, the Palm logo, and the Palm Powered
logo are trademarks of Palm, Inc. or its
subsidiaries.

<PAGE>   51
                                                             [PALM POWERED LOGO]

CONTENTS

<TABLE>
<S>                                      <C>
Introduction                              1

Palm Powered(TM) Logo Usage               2

Logo Usage Environment Constraints        3

Logos: Where and How to Use Them          6

Clear Space and Sizing                    8

Logo Usage Don'ts                        10
</TABLE>

INTRODUCTION

PALM POWERED(TM)
BRAND IDENTITY

The Palm OS(R) platform -- the foundation for a whole range of handheld devices
from Palm, Inc. and its licensees, as well as for thousands of applications from
software developers -- is the fastest growing handheld computing platform in
history. As a licensee of the Palm OS, you are contributing immensely to its
success.

To help you and your products be successful and to protect the investment in our
own trademark and branding efforts, we are supplying you with these guidelines
to ensure the protection and maintenance of the Palm Powered(TM) brand identity.

The Palm Powered logo lets customers know that a product or technology is
designed for, and runs on the Palm OS platform. These guidelines will explain
how the Palm Powered logos are to be used.

Please take a moment to review these materials and contact Joyce Morrell,
joyce_morrell@palm.com, or Dawn Andersen, dawn_andersen@palm.com, with any
questions you may have regarding your company's proposed use of trademarks and
other marketing elements.

                                                                               1
<PAGE>   52
[PALM LOGO]

PALM POWERED(TM) LOGO USAGE

WHO CAN USE IT

The Palm Powered(TM) logo is to be used exclusively by the official licensees
of the Palm OS(R) platform, and by Palm's OEM partners. Corporations wishing
to use this mark must have a licensing or OEM agreement with Palm, Inc. Terms
may vary.

LOGO USAGE ENVIRONMENT CONSTRAINTS

The Palm Powered(TM) logo can only co-exist with the brand of the company
manufacturing the product, or with the individual name or brand of this product,
and the company providing wireless service. It cannot co-exist with other
operating system names.

The Palm Powered logo should be reproduced exactly as specified in this
document. The Palm Powered logo should only be used by authorized agents to
promote the Palm OS(R) software within devices. The Palm Powered logo should
never be inserted into text, headlines, or body copy.

REMEMBER:

1. You may only use the logo as a symbol that your product operates on the Palm
OS. You may not imply that Palm in any way endorses your product.

2. Use of this logo must be associated with a specific product, not a company or
company brand, and implies the product meets minimum compatibility standards.
The use of this logo does not imply product endorsement by Palm, nor does it
imply quality standards for products based on the Palm OS.

3. You may not alter the logo in anyway.

<PAGE>   53
[PALM LOGO]

LOGOS: WHERE & HOW TO USE THEM

WHERE TO USE THE
PALM POWERED(R) LOGO

-  PACKAGING AND MERCHANDISING LOGO PLACEMENT

The Palm Powered(TM) logo is to be used on at least one side of the packaging
of hardware devices based on the Palm OS(R). The recommended placement is on
the main side of the packaging, to help customers recognize that the device
operates on the Palm OS platform. For the same reasons, we recommend placement
of the Palm Powered logo on merchandising materials promoting hardware devices
operating on the Palm OS platform. The Palm Powered logo should also be used on
documentation and in manuals.

                             Packaging
                             Side View            [PICTURE OF PACKAGE WITH LOGO]

Packaging
Front View

[PICTURE OF PACKAGE WITH LOGO]

- ADVERTISING USAGE

The Palm Powered(TM) logo is to be used as an ingredient branding feature.

- WEBSITE USAGE

When promoting a Palm Powered device on the web, we recommend the use of the
Palm Powered logo, along with the product brand or name.

- REFERENCING PALM (THE COMPANY, PRODUCTS AND OS(R)) IN YOUR COPY

Please use the preferred formal pairing of trademark and descriptive noun:

When referring to Palm, Inc. branded products:

- use "Palm(TM) handhelds"

When referring to Licensee/OEM handheld products using the Palm OS:

- use "Palm Powered(TM) handhelds"

When referring to Licensee/OEM non-handheld products using the Palm OS(R)
[e.g., phone - wireless or mobile]:

- use "Palm Powered(TM) devices"

FOR MINIMUM SIZE REQUIREMENTS PLEASE REFER TO LOGO SIZING ON PAGE 8.

4
<PAGE>   54
[PALM LOGO]

LOGOS: WHERE AND HOW TO USE THEM

PALM POWERED(TM) LOGO

The Palm Powered(TM) logo has been designed to convey a strong and direct
message. Its elegant and compact shape is easy to fit and to render on the
limited space of hardware devices and in printed materials. It is aimed at
indicating that the product which bears it will provide its owner with the
unique user experience associated with the Palm OS(R) platform.

[PALM POWERED LOGO]     2-COLOR LOGO*
                        PalmPWR__2C.eps
                        Use whenever possible [e.g., printed materials,
                        collateral, point of purchase materials, advertising
                        presentation, web site].

[PALM POWERED LOGO]     CMYK LOGO
                        PalmPWR_CMYK.eps
                        Logo to use when spot colors are not available for
                        printing [e.g., magazine advertisement, same as
                        2-color].

[PALM POWERED LOGO]     RGB LOGO
                        PalmPWR__RGB.eps
                        Logo to use for onscreen viewing [e.g., PowerPoint
                        presentation, web site].

[PALM POWERED LOGO]     B/W LOGO
                        PalmPWR__BW.eps

                        Logo to use when no colors are available for printing
                        [e.g., newspaper advertisement].

ALL ELECTRONIC FILES ARE ADOBE ILLUSTRATOR(R) 7.0 EPS FORMAT.

* Please note that the Palm 2-Color Logo appears B&W onscreen but will print
color separations correctly if black is set to overprint.

6
<PAGE>   55

[PALM LOGO]

LOGO SIZING

SIZING

When using the Palm Powered(TM) logo on a standard page size 8 1/2" x 11" or A4,
printed materials, advertisements, collateral, and packaging, the minimum size
of the logo should be no smaller than .4375 x 1.062 inches (1.1 x 2.7 cm). The
Palm Powered logo can be scaled up to any size that does not break the clear
space rule.

[PALM POWERED LOGO]    .4375 inches
                       1.1 cm
1.062 inches
2.7 cm

In all other instances e.g., hardware, presentations, and web site, the Palm
Powered logo should not be scaled below .25 x .625 inches (.635 x 1.587 cm).

[PALM POWERED LOGO]    .25 inches
                       .635 cm
 .625 inches
1.587 cm

When scaling the Palm Powered logo, the outer stroke weight should remain .25
points.

LOGO CLEAR SPACE

[LAYOUT]                        CLEAR SPACE IN RELATION TO
                                OTHER LOGOS

                                The Palm Powered(TM) logo must stand alone and
                                should be located in either the top left, center
                                column, or bottom right of any given layout. Use
                                the height of the "l" to measure the minimum
                                clear space distance around the logo. This is to
                                ensure that the logo appears in a clear visual
                                field. No other object such as type,
                                photography, borders, or edges, may appear in
[LAYOUT]                        the empty space.

[LAYOUT]

8
<PAGE>   56
[PALM LOGO]

LOGO USAGE DON'TS

You may not combine the logo with any other feature including, but not limited
to, other logos, words, graphics, photos, slogans, headlines, numbers, design
features, or symbols.

                              [PALM POWERED LOGO]

DON'T scale logo disproportionately.

                              [PALM POWERED LOGO]

DON'T leave off word mark [(TM)].

                              [PALM POWERED LOGO]

DON'T alter stroke weight.

                              [PALM POWERED LOGO]

DON'T alter horizontal orientation of the logo.

                              [PALM POWERED LOGO]

DON'T add a dropshadow or alter logo.

                              [PALM POWERED LOGO]

DON'T use logo as pattern, or use slanted.

                              [PALM POWERED LOGO]

DON'T change opacity of logo or print on a colored background.

10
<PAGE>   57

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

                                    EXHIBIT D

                               ROYALTIES AND FEES

[*]

Page 37
<PAGE>   58

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 five (5)
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. Palm and Licensee 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

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<PAGE>   59

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 6.1 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.

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<PAGE>   60

                                   EXHIBIT F-1

                MINIMUM TERMS AND CONDITIONS OF END USER LICENSE

       1. _________________ ("Licensor") grants the end user ("End User") a
nonexclusive license to use the software accompanying the Licensor Product
("Software"). With respect to the Licensor Product Desktop Applications, End
User may reproduce and provide one (1) copy of such Software for each personal
computer or Licensor Product on which such Software is used as permitted
hereunder. With respect to the Licensor Product Platform Software, End User may
use such Software only on one (1) Licensor Product. End User may assign its
right under the End User License Agreement to an assignee of all of End User's
rights and interest to the Software only if End User transfers all copies of the
Software subject to the End User License Agreement to such assignee and such
assignee agrees in writing to be bound by all the terms and conditions of the
End User License Agreement.

       2. End User agrees not to reverse engineer, decompile or disassemble the
Software. End User will not copy the Software except as necessary to use it in
accordance with this End User License Agreement. End User agrees that any such
copies of the Software shall contain the same proprietary notices which appear
on and in the original copy of the Software.

       3. Except as stated above, the End User License Agreement does not grant
End User any rights (whether by license, ownership or otherwise) in or to
intellectual property with respect to the Software.

       4. End User will not export or re-export the Software without all
appropriate United States and other foreign government licenses.

       5. Title to and ownership of the Software and any copy thereof shall
remain with Licensor and its suppliers.

       6. If the Software is licensed for a proposal or agreement with the
United States Government or any contractor therefor, the Software must be
legended, marked and licensed as described in Section 9.3 of the Agreement.

       7. Palm is a specified third party beneficiary of the end user license.

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<PAGE>   61

                                   EXHIBIT F-2

     DESKTOP SITE LICENSE; MINIMUM TERMS AND CONDITIONS OF END USER LICENSE

       1.     Subject to the terms of this agreement, [Licensee] grants [end
              user] a non-exclusive, royalty-free, non-assignable and
              non-transferable license to reproduce and install the Desktop
              Software in executable form on personal computers owned or leased
              by [end user] for [end user]'s internal use.

       2.     [End user] agrees that the Desktop Software may be used only in
              connection with [Licensee's] Palm OS handheld products (the
              "Products") and may not be distributed outside [end user]. [End
              user] shall notify the users of such personal computers that the
              Desktop Software may be used only in connection with the Products
              and may not be distributed outside [end user].

       3.     [End user] agrees that it shall keep records of the number of
              copies of the Desktop Software it installs and the number of
              Products purchased by [end user]. Upon request by [Licensee], [end
              user] shall promptly report in writing to [Licensee] the number of
              copies of the Desktop Software installed by [end user].

       4.     Except as explicitly otherwise set forth in this agreement, the
              use of the Desktop Software shall be governed by the [Licensee]
              End User Software License Agreement accompanying the Products.
              Except as provided above, this agreement does not grant [end user]
              any rights to patents, copyrights, trade secrets, trademarks, or
              any other rights in respect to the Desktop Software.

Page 41
<PAGE>   62

                                    EXHIBIT G

                               DEVELOPER PROGRAMS

DEVELOPMENT TECHNICAL SERVICES
Palm will provide the following services:

              -      Maintain Palm's publicly supported APIs for the Palm OS
                     platform (the "Palm Public APIs"), including both handheld
                     and desktop APIs that are part of Palm OS Software.

              -      Provide Licensee developer technical support personnel with
                     appropriate technical information and related materials for
                     the core Palm OS platform. Such technical information and
                     materials will include frequently asked questions (FAQs),
                     sample code, software development kits (SDKs), API
                     documentation, mechanical and electrical specifications and
                     white papers.

              -      At Licensee's request, provide an appropriate level and
                     amount of introductory training on the Palm Public APIs to
                     Licensee's developer technical support personnel.

              -      At Licensee's request, use commercially reasonable efforts
                     to assist Licensee in recreating developer problems
                     relating to the core Palm OS platform and/or the Palm
                     Public APIs, including where required providing Licensee
                     with Palm products.

              -      Provide a process for escalation of questions from Licensee
                     (including questions from developers that are first
                     addressed to Licensee) that are related to the Palm Public
                     APIs.

Licensee will:

              -      Provide Palm's developer technical support personnel with
                     appropriate technical information and related materials for
                     Licensee Software. Such technical information and materials
                     will include FAQs, sample code, SDKs, API documentation,
                     mechanical and electrical specifications and white papers.

              -      At Palm's request, provide an appropriate level and amount
                     of introductory training on the Licensee Public APIs to
                     Palm's developer technical support personnel.

              -      At Palm's request, use commercially reasonable efforts to
                     assist Palm in recreating developer problems relating to
                     the Licensee Software and/or Licensee's publicly supported
                     APIs (the "Licensee Public APIs), including where required
                     providing Palm with Licensee Products.

              -      Provide a process for escalation of questions from Palm
                     (including questions from developers that are first
                     addressed to Palm) that are related to the Licensee Public
                     APIs.

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<PAGE>   63

DEVELOPMENT DOCUMENTATION
Palm will:

              -      Create, maintain and provide appropriate developer
                     documentation for the Palm Public APIs.

              -      Provide style guidelines for developer documentation to
                     Licensee.

Licensee will:

              -      Create, maintain and provide appropriate developer
                     documentation for the Licensee Public APIs.

DEVELOPMENT TOOLS
Palm will:

              -      Provide via the Palm OS Development Zone Website (the "Palm
                     Support Site") URL links to Licensee SDKs.

Licensee will:

              -      Integrate the Licensee Public APIs into the CodeWarrior/GNU
                     Palm OS development platform environment. If Palm adopts a
                     new Palm OS development platform environment, Licensee also
                     will adopt the same if feasible.

              -      Provide via the developer support area on Licensee's
                     website ("Licensee Support Site") URL links to Palm's SDKs.

DEVELOPMENT PROGRAMS
Palm will:

              -      Provide via the Palm Support Site URL links to Licensee
                     developer programs.

              -      Provide access to Palm OS platform communication vehicles,
                     such as the monthly electronic developer newsletter.

Licensee will:

              -      Provide via the Licensee Support Site URL links to Palm
                     developer programs.

              -      Provide access to Licensee Software communication vehicles,
                     such as the monthly electronic developer newsletter.

DEVELOPMENT TRAINING
Palm will:

              -      Consider, in its sole discretion, adding training modules
                     for the Licensee Public APIs to the "Palm OS Programming"
                     development training courseware. Such training courseware
                     will be subject to Licensee's written approval, and will be
                     made available to Licensee for its own use without charge.

Page 43
<PAGE>   64
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

If Palm elects to develop training modules for the Licensee Public APIs,
Licensee will:

              -      Provide a reasonable level of assistance to the Palm course
                     developers creating such training module. Such assistance
                     will include where required providing the Palm course
                     developers with an appropriate number of Licensee Products
                     and appropriate documentation, as well as reviewing the
                     training materials for technical accuracy.

DEVELOPMENT CONFERENCES
Palm will:

              -      As long as Licensee is distributing a Licensee Product, be
                     a sponsor of at least Licensee's most prominent annual
                     developer conference. Where appropriate, such sponsorship
                     will include: providing units and engineers for labs,
                     appropriate business and/or marketing personnel, and
                     technical, marketing, and business content. [*]

              -      Offer Licensee the opportunity to participate in Palm's
                     most prominent developer conference at the highest level.

Licensee will:

              -      As long as Licensee is distributing a Licensee Product, be
                     a sponsor of at least Palm's most prominent annual Palm
                     Software platform developer conference. Where appropriate,
                     such sponsorship will include: providing units and
                     engineers for labs, appropriate business and/or marketing
                     personnel, and technical, marketing, and business content.
                     [*]

              -      Offer Palm the opportunity to participate in Licensee's
                     most prominent developer conference at the highest level.

Page 44
<PAGE>   65

                                    EXHIBIT H

                                 PALM TRADEMARKS

I.     PALM COMPATIBILITY TRADEMARKS

Palm Powered(TM)
Palm Powered logo(TM)
Palm Powered Compatible Solution logo(TM) [for use with software only]
Palm OS(R)

II.    OTHER PALM TRADEMARKS

Graffiti(R)
HotSync(R)
IMessenger(R)
Palm(TM)
Palm Computing(R)
PalmConnect(R)
PalmPoint(R)
PalmModem(R)
PalmGlove(R)
PalmPix(TM)
Palm.net(R)

Page 45
<PAGE>   66

* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.

                                    EXHIBIT I

                             MODIFIABLE SOURCE CODE

NO. 1

[*]

NO. 2

[*]

NO. 3

[*]

NO. 4

[*]

NO. 5

[*]

NO. 6

[*]

NO. 7

[*]

NO. 8

[*]

NO. 9

[*]

Page 46<PAGE>   1

Exhibit 10.21

                           PRINCETON VIDEO IMAGE, INC.

                         AMENDED 1993 STOCK OPTION PLAN

         1. Purposes of the Plan. The purposes of this Stock Option Plan are to
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees and Consultants of
the Company and its Subsidiaries and to promote the success of the Company's
business. Options granted under the Plan may be Incentive Stock Options (as
defined under Section 422 of the Code) or Non-Statutory Stock Options, as
determined by the Administrator at the time of grant of an option and subject to
the applicable provisions of Section 422 of the Code, as amended, and the
regulations promulgated thereunder.

         2. Certain Definitions. As used herein, the following definitions shall
apply:

                  (a) "Administrator" means the Board or any of its Committees
appointed pursuant to Section 4 of the Plan.

                  (b) "Board" means the Board of Directors of the Company.

                  (c) "Code" means the Internal Revenue Code of 1986, as
amended.

                  (d) "Committee" means the Committee appointed by the Board in
accordance with paragraph (a) of Section 4 of the Plan.

                  (e) "Common Stock" means the Common Stock of the Company.

                  (f) "Company" means Princeton Video Image, Inc., a New Jersey
corporation.

                  (g) "Consultant" means any person, including an advisor, who
is engaged by the Company or any Parent or Subsidiary to render services and is
compensated for such services, and any director of the Company whether
compensated for such services or not provided that if and in the event the
Company registers any class of any equity security pursuant to the Exchange Act,
the term Consultant shall thereafter not include directors who are not
compensated for their services or are paid only a director's fee by the Company.

                  (h) "Continuous Status as an Employee" means the absence of
any interruption or termination of the employment relationship by the Company or
any

                                     - 1 -
<PAGE>   2
Subsidiary. Continuous Status as an Employee shall not be considered interrupted
in the case of: (i) sick leave; (ii) military leave; (iii) any other leave of
absence approved by the Board, provided that such leave is for a period of not
more than ninety (90) days, unless reemployment upon the expiration of such
leave is guaranteed by contract or statute, or unless provided otherwise
pursuant to Company policy adopted from time to time; or (iv) in the case of
transfers between locations of the Company or between the Company, its
Subsidiaries or its successor.

                  (i) "Date of Grant" means the date on which an Option is
granted under this Plan pursuant to Section 13 of the Plan.

                  (j) "Employee" means any person, including officers and
directors, employed by the Company or any Parent or Subsidiary of the Company.
The payment of a director's fee by the Company shall not be sufficient to
constitute "employment" by the Company.

                  (k) "Exchange Act" means the Securities Exchange Act of 1934,
as amended.

                  (l) "Fair Market Value" means, as of any date, the value of
Common Stock determined as follows:

                           (i) If the Common Stock is listed on any established
stock exchange or a national market system including without limitation the
National Market System of the National Association of Securities Dealers, Inc.
Automated Quotation ("NASDAQ") System, its Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such system or exchange for the last market trading day
prior to such date as reported in the Wall Street Journal or such other source
as the Administrator deems reliable or;

                           (ii) If the Common Stock is quoted on the NASDAQ
System (but not on the National Market System thereof) or regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean between the high and low asked prices for the
Common Stock for the last market trading day prior to such date or;

                           (iii) In the absence of an established market for the
Common Stock, the Fair Market Value thereof shall be determined in good faith by
the Administrator.

                  (m) "Incentive Stock Option" means an Option intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code.

                  (n) "Non-Statutory Stock Option" means an Option not intended
to qualify as an Incentive Stock Option.

                                     - 2 -
<PAGE>   3
                  (o) "Option" means a stock option granted pursuant to the
Plan.

                  (p) "Option Agreement" shall mean the agreement which must be
entered into between the Optionee and the Company upon the grant of an Option by
the Company to the Optionee pursuant to Section 17 of the Plan.

                  (q) "Optioned Stock" means the Common Stock subject to an
Option.

                  (r) "Optionee" means a person who receives an Option.

                  (s) "Parent" means a "parent corporation", whether now or
hereafter existing, as defined in Section 424(e) of the Code.

                  (t) "Plan" means this 1993 Stock Option Plan.

                  (u) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 12 of the Plan.

                  (v) "Subsidiary" means a "subsidiary corporation", whether now
or hereafter existing, as defined in Section 424(f) of the Code.

         3. Stock Subject to the Plan. Subject to the provisions of Section 12
of the Plan, the maximum aggregate number of shares which may be optioned and
sold under the Plan is 5,160,000 shares of Common Stock. The shares may be
authorized, but unissued, or reacquired Common Stock.

                  If an Option should expire or become unexercisable for any
reason without having been exercised in full, the unpurchased Shares which were
subject thereto shall, unless the Plan shall have been terminated, become
available for future grant under the Plan.

         4. Administration of the Plan.

                  (a) Procedure.

                           (i) Administration With Respect to Directors and
Officers. With respect to grants of Options to Employees or Consultants who are
also officers or directors of the Company, the Plan shall be administered by (A)
the Board or (B) a Committee designated by the Board to administer the Plan,
which Committee shall be constituted in such a manner (A) as to permit
transactions under the Plan to qualify for the exemption from Section 16(b) of
the Exchange Act pursuant to Rule 16b-3 promulgated thereunder ("Rule 16b-3")
and (B) to satisfy the legal requirements relating to the administration of
incentive stock option plans, of New Jersey corporate and

                                     - 3 -
<PAGE>   4
securities laws and of the Code (the "Applicable Laws"). Once appointed, such
Committee shall continue to serve in its designated capacity until otherwise
directed by the Board. From time to time the Board may increase the size of the
Committee and appoint additional members thereof, remove members (with or
without cause) and appoint new members in substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and thereafter directly
administer the Plan, all to the extent permitted by the Applicable Laws and Rule
16b-3.

                           (ii) Multiple Administrative Bodies. If permitted by
Rule 16b-3, the Plan may be administered by different bodies with respect to
directors, non-director officers and Employees and Consultants who are neither
directors nor officers.

                           (iii) Administration With Respect to Consultants and
Other Employees. With respect to grants of Options to Employees or Consultants
who are neither directors nor officers of the Company, the Plan shall be
administered by (A) the Board or (B) a Committee designated by the Board, which
Committee shall be constituted in such a manner as to satisfy the Applicable
Laws. Once appointed, such Committee shall continue to serve in its designated
capacity until otherwise directed by the Board. From time to time the Board may
increase the size of the Committee and appoint additional members thereof,
remove members (with or without cause) and appoint new members in substitution
therefor, fill vacancies, however caused, and remove all members of the
Committee and thereafter directly administer the Plan, all to the extent
permitted by the Applicable Laws.

                           (iv) Formula Awards to Directors.

                                    (A) On July 1 of each year during the term
of this Plan, each person who is then serving as a director of the Company shall
be granted a Non-Statutory Stock Option to purchase 10,000 Shares. Each such
Option shall vest and become exercisable in equal increments of 1/12 of the
Shares on the first day of each month thereafter, provided that the holder is
then serving as a director of the Company

                                    (B) Commencing July 1, 2001, on the date of
a director's first election or appointment to the Board, such director shall be
granted a Non-Statutory Stock Option to purchase a number of Shares equal to the
product of (i) 10,000 and (ii) a fraction the numerator of which is the number
of calendar months between the date of such election or appointment and the
following July 1 (with a fractional portion of a calendar month being treated as
a calendar month if it contains 15 days or more) and the denominator of which is
12. Each such Option shall vest and become exercisable on the first day of each
month thereafter, provided that the holder is then serving as a director of the
Company, in increments equal to the quotient obtained by dividing the number of
Shares of Optioned Stock by the number of calendar months described in the
preceding sentence.

                                     - 4 -
<PAGE>   5
                                    (C) A director who is first elected or
appointed to the Board after July 1, 2000, but before July 1, 2001 shall be
granted on July 1, 2001, a Non-Statutory Stock Option to purchase a number of
Shares equal to the product of (i) 10,000 and (ii) a fraction the numerator of
which is the number of calendar months between the date of such election or
appointment and the following July 1 (with a fractional portion of a calendar
month being treated as a calendar month if it contains 15 days or more) and the
denominator of which is 12. Each such Option shall vest and become exercisable
in full on July 1, 2001, provided that the holder is then serving as a director
of the Company.

                                    (D) Options granted pursuant to this Section
4(a)(iv) shall have a per share exercise price equal to the Fair Market Value
per share on the Date of Grant and shall, expire ten years from the Date of
Grant or on such earlier date as is provided in Section 7 hereof. Once an Option
granted pursuant to this Section, or any portion thereof, has become
exercisable, it shall remain exercisable regardless of whether or not the
director holding the Option later ceases to be a director of the Company.

                  (b) Powers of the Administrator. Subject to the provisions of
the Plan and in the case of a Committee, the specific duties delegated by the
Board to such Committee, the Administrator shall have the authority, in its
discretion:

                           (i) to determine the Fair Market Value of the Common
Stock, in accordance with Section 2(l) of the Plan;

                           (ii) to select the Consultants and Employees to whom
Options may from time to time be granted hereunder;

                           (iii) to determine whether and to what extent Options
are granted hereunder;

                           (iv) to determine the number of shares of Common
Stock to be covered by each such Option granted hereunder;

                           (v) to approve forms of agreement for use under the
Plan;

                           (vi) to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any Option granted hereunder
(including, but not limited to, the share price and any restriction or
limitation or waiver of forfeiture restrictions regarding any Option and/or the
shares of Common Stock relating thereto, based in each case on such factors as
the Administrator shall determine, in its sole discretion);

                           (vii) to determine whether and under what
circumstances an Option may be settled in cash under subsection 9(f) instead of
Common Stock;

                                     - 5 -
<PAGE>   6
                           (viii) to determine whether, to what extent and under
what circumstances Common Stock and other amounts payable with respect to an
Option under this Plan shall be deferred either automatically or at the election
of the participant (including providing for and determining the amount, if any,
of any deemed earnings on any deferred amount during any deferral period); and

                           (ix) to reduce the exercise price of any Option to
the then current Fair Market Value if the Fair Market Value of the Common Stock
covered by such Option shall have declined since the date the Option was
granted.

                  (c) Effect of Committee's Decision. All decisions,
determinations and interpretations of the Administrator shall be final and
binding on all Optionees and any other holders of any Options.

         5. Eligibility.

                  (a) Non-Statutory Stock Options may be granted to Employees
and Consultants and directors and officers who are not Employees or Consultants.
Incentive Stock Options may be granted only to Employees. An Employee or
Consultant who has been granted an Option may, if he is otherwise eligible, be
granted an additional Option or Options.

                  (b) Each Option shall be designated in the Option Agreement as
either an Incentive Stock Option or a Non-Statutory Stock Option. However,
notwithstanding such designations, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Options designated as Incentive Stock
Options are exercisable for the first time by any optionee during any calendar
year (under all plans of the Company or any Parent or Subsidiary) exceeds
$100,000, such excess Options shall be treated as Non-Statutory Stock Options.

                  (c) For purposes of Section 5(b), Incentive Stock Options
shall be taken into account in the order in which they were granted, and the
Fair Market Value of the Shares shall be determined as of the time the Option
with respect to such Shares is granted.

                  (d) The Plan shall not confer upon any Optionee any right with
respect to continuation of employment or consulting relationship with the
Company, nor shall it interfere in any way with his right or the Company's right
to terminate his employment or consulting relationship at any time, with or
without cause.

         6. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board or its approval by the shareholders of the
Company as described in Section 18 of the Plan. It shall continue in effect for
a term of ten (10) years unless sooner terminated under Section 14 of the Plan.

                                     - 6 -
<PAGE>   7
         7. Term of Option. The term of each Option shall be the term stated in
the Option Agreement; provided, however, that in the case of an Incentive Stock
Option, the term shall be no more than ten (10) years from the date of grant
thereof or such shorter term as may be provided in the Option Agreement.
However, in the case of an Option granted to an Optionee who, at the time the
Option is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary,
the term of the Option shall be five (5) years from the date of grant thereof or
such shorter term as may be provided in the Option Agreement.

         8. Option Exercise Price and Consideration.

                  (a) The per share exercise price for the Shares to be issued
pursuant to exercise of an Option shall be such price as is determined by the
Board, but shall be subject to the following: In the case of an Incentive Stock
Option (i) granted to an Employee who, at the time of the grant of such
Incentive Stock Option, owns stock representing more than ten percent (10%) of
the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of grant; (ii) granted to any Employee, not
described in Section 8(a)(i), the per Share exercise price shall be no less than
100% of the Fair Market Value per Share on the date of grant.

                  (b) The consideration to be paid for the Shares to be issued
upon exercise of an Option, including the method of payment, shall be determined
by the Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant) and may consist entirely of (1) cash, (2)
check, (3) promissory note, (4) other Shares which (x) in the case of Shares
acquired upon exercise of an Option either have been owned by the Optionee for
more than six months on the date of surrender or were not acquired, directly or
indirectly, from the Company, and (y) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised, (5) authorization to the Company to retain from the
total number of Shares as to which the Option is exercised that number of Shares
having a Fair Market Value on the date of exercise equal to the exercise price
for the total number of Shares as to which the Option is exercised, (6) delivery
of a properly executed exercise notice together with irrevocable instructions to
a broker to promptly deliver to the Company the amount of sale or loan proceeds
required to pay the exercise price, (7) delivery of an irrevocable subscription
agreement for the Shares which irrevocably obligates the option holder to take
and pay for the Shares not more than twelve months after the date of delivery of
the subscription agreement, (8) any combination of the foregoing methods of
payment, or (9) such other consideration and method of payment for the issuance
of Shares to the extent permitted under Applicable Laws. In making its
determination as to the type of consideration to accept, the Board shall
consider if acceptance of such consideration may be reasonably expected to
benefit the Company.

         9. Exercise of Option.

                                     - 7 -
<PAGE>   8
                  (a) Procedure for Exercise; Rights as a Shareholder. Any
Option granted hereunder shall be exercisable at such times and under such
conditions as determined by the Board and set forth in the Option Agreement,
including performance criteria with respect to the Company and/or the Optionee,
and as shall be permissible under the terms of the Plan. An Option may not be
exercised for a fraction of a Share.

                           An Option shall be deemed to be exercised when
written notice of such exercise has been given to the Company in accordance with
the terms of the Option by the person entitled to exercise the Option and full
payment for the Shares with respect to which the Option is exercised has been
received by the Company. Full payment may, as authorized by the Board, consist
of any consideration and method of payment allowable under Section 8(b) of the
Plan. Until the issuance (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such stock certificate promptly upon exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued.

                             Exercise of an Option in any manner shall result in
a decrease in the number of Shares which thereafter may be available, both for
purposes of the Plan and for sale under the Option, by the number of Shares as
to which the Option is exercised.

                  (b) Termination of Employment. In the event of termination of
an Optionee's consulting relationship or Continuous Status as an Employee with
the Company (as the case may be), such Optionee may, but only within ninety (90)
days (or such other period of time as is determined by the Board, with such
determination in the case of an Incentive Stock Option being made at the time of
grant of the Option and not exceeding ninety (90) days) after the date of such
termination (but in no event later than the expiration date of the term of such
Option as set forth in the Option Agreement), exercise his Option to the extent
that Optionee was entitled to exercise it at the date of such termination. To
the extent that Optionee was not entitled to exercise the Option at the date of
such termination, or if Optionee does not exercise such Option to the extent so
entitled within the time specified herein, the Option shall terminate.

                  (c) Disability of Optionee. Notwithstanding the provisions of
Section 9(b) above, in the event of termination of an Optionee's consulting
relationship or Continuous Status as an Employee as a result of his total and
permanent disability (as defined in Section 22(e)(3) of the Code), Optionee may,
but only within twelve (12) months from the date of such termination (but in no
event later than the expiration date of the term of such Option as set forth in
the Option Agreement), exercise the Option to the extent otherwise entitled to
exercise it at the date of such termination. To the extent that Optionee was not
entitled to exercise the Option at the date of termination, or if Optionee

                                     - 8 -
<PAGE>   9
does not exercise such Option to the extent so entitled within the time
specified herein, the Option shall terminate.

                  (d) Death of Optionee. In the event of the death of an
Optionee, the Option may be exercised, at any time within twelve (12) months
following the date of death (but in no event later than the expiration date of
the term of such Option as set forth in the Option Agreement), by the Optionee's
estate or by a person who acquired the right to exercise the Option by bequest
or inheritance, but only to the extent the Optionee was entitled to exercise the
Option at the date of death. To the extent that Optionee was not entitled to
exercise the Option at the date of termination, or if Optionee does not exercise
such Option to the extent so entitled within the time specified herein, the
Option shall terminate.

                  (e) Rule 16b-3. Options granted to persons subject to Section
16(b) of the Exchange Act must comply with Rule 16b-3 and shall contain such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions. Shares acquired pursuant to exercise of an Option by any
person who is subject to Section 16(b) of the Exchange Act may not be sold or
otherwise disposed of for a period of six (6) months following the Date of
Grant.

                  (f) Buyout Provisions. The Administrator may at any time offer
to buy out for a payment in cash or Shares an Option previously granted, based
on such terms and conditions as the Administrator shall establish and
communicate to the Optionee at the time that such offer is made.

         10. Non-Transferability of Options. The Option may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution and may be exercised,
during the lifetime of the Optionee, only by the Optionee.

         11. Stock Withholding to Satisfy Withholding Tax Obligations. At the
discretion of the Administrator, Optionees may satisfy withholding obligations
as provided in this paragraph. When an Optionee incurs tax liability in
connection with an Option, which tax liability is subject to tax withholding
under applicable tax laws, and the Optionee is obligated to pay the Company an
amount required to be withheld under applicable tax laws, the Optionee may
satisfy the withholding tax obligation by electing to have the Company withhold
from the Shares to be issued upon exercise of the Option, if any, that number of
Shares having a Fair Market Value equal to the amount required to be withheld.
The Fair Market Value of the Shares to be withheld shall be determined on the
date that the amount of tax to be withheld is to be determined (the "Tax Date").

         All elections by an Optionee to have Shares withheld for this purpose
shall be made in writing in a form acceptable to the Administrator and shall be
subject to the following restrictions:

                                     - 9 -
<PAGE>   10
                  (a) the election must be made on or prior to the applicable
Tax Date;

                  (b) once made, the election shall be irrevocable as to the
particular Shares of the Option as to which the election is made;

                  (c) all elections shall be subject to the consent or
disapproval of the Administrator; and

                  (d) if the Optionee is subject to Rule 16b-3, the election
must comply with the applicable provisions of Rule 16b-3 and shall be subject to
such additional conditions or restrictions as may be required thereunder to
qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

         In the event the election to have Shares withheld is made by an
Optionee and the Tax Date is deferred under Section 83 of the Code because no
election is filed under Section 83(b) of the Code, the Optionee shall receive
the full number of Shares with respect to which the Option is exercised but such
Optionee shall be unconditionally obligated to tender back to the Company the
proper number of Shares on the Tax Date.

         12. Adjustments Upon Changes in Capitalization or Merger. Subject to
any required action by the shareholders of the Company, the number of shares of
Common Stock covered by each outstanding Option, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options have yet been granted or which have been returned to the Plan
upon cancellation or expiration of an Option, as well as the price per share of
Common Stock covered by each such outstanding Option, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option.

         In the event of the proposed dissolution or liquidation of the Company,
the Board shall notify the Optionee at least fifteen (15) days prior to such
proposed action. To the extent it has not been previously exercised, the Option
will terminate immediately prior to the consummation of such proposed action. In
the event of a merger of the Company with or into another corporation, the
Option shall be assumed or an equivalent option shall be substituted by such
successor corporation or a Parent or Subsidiary of such

                                     - 10 -
<PAGE>   11
successor corporation. In the event that such successor corporation does not
agree to assume the Option or to substitute an equivalent option, the Board
shall, in lieu of such assumption or substitution, provide for the Optionee to
have the right to exercise the Option as to all of the Optioned Stock, including
Shares as to which the Option would not otherwise be exercisable. If the Board
makes an Option fully exercisable in lieu of assumption or substitution in the
event of a merger, the Board shall notify the Optionee that the Option shall be
fully exercisable for a period of fifteen (15) days from the date of such
notice, and the Option will terminate upon the expiration of such period. For
the purposes of this paragraph, the Option shall be considered assumed if,
following the merger, the Option or right confers the right to purchase, for
each Share of stock subject to the Option immediately prior to the merger, the
consideration (whether stock, cash, or other securities or property) received in
the merger by holders of Common Stock for each Share held on the effective date
of the transaction (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received in the merger
was not solely common stock of the successor corporation or its Parent, the
Board may, with the consent of the successor corporation and the participant,
provide for the consideration to be received upon the exercise of the Option,
for each Share of stock subject to the Option, to be solely common stock of the
successor corporation or its Parent equal in Fair Market Value to the per share
consideration received by holders of Common Stock in the merger or sale of
assets.

         13. Time of Granting Options. The date of grant of an Option shall, for
all purposes, be the date on which the Administrator makes the determination
granting such Option, or such other date as is determined by the Board. Notice
of the determination shall be given to each person to whom an Option is so
granted within a reasonable time after the date of such grant.

         14. Amendment and Termination of the Plan.

                  (a) Amendment and Termination. The Board may at any time
amend, alter, suspend or discontinue the Plan, but no amendment, alteration,
suspension or discontinuation shall be made which would impair the rights of any
Optionee under any grant theretofore made, without Optionee's consent. In
addition, to the extent necessary and desirable to comply with Rule 16b-3 under
the Exchange Act or with Section 422 of the Code (or any other applicable law or
regulation, including the requirements of the NASD or an established stock
exchange), the Company shall obtain shareholder approval of any Plan amendment
in such a manner and to such a degree as required.

                  (b) Effect of Amendment or Termination. Any such amendment or
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee and
the Board, which agreement must be in writing and signed by the Optionee and the
Company.

                                     - 11 -
<PAGE>   12
         15. Conditions Upon Issuance of Shares. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the Shares may
then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance. As a condition to the exercise of an
Option, the Company may require the person exercising such Option to represent
and warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is
required by any of the aforementioned relevant provisions of law.

         16. Reservation of Shares. The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

                  The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company's
counsel to be necessary to the lawful issuance and sale of any Shares hereunder,
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.

         17. Agreements. Options shall be evidenced by written agreements in
such form as the Board shall approve from time to time.

         18. Shareholder Approval. Continuance of the Plan shall be subject to
approval by the shareholders of the Company within twelve (12) months before or
after the date the Plan is adopted. Such shareholder approval shall be obtained
in the degree and manner required under applicable state and federal law.

         19. Information to Optionees. The Company shall provide to each
Optionee, during the period for which such Optionee has one or more Options
outstanding, copies of all annual reports and other information which are
provided to all shareholders of the Company. The Company shall not be required
to provide such information if the issuance of Options under the Plan is limited
to key employees whose duties in connection with the Company assure their access
to equivalent information.

                                    * * * * *

As amended through March 30, 2001

                                     - 12 -

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