Document:

Exhibit 10.4

                               FIRST AMENDMENT TO
                       PLAN AND AGREEMENT OF DISTRIBUTION

        This first amendment TO THE Plan and Agreement of Distribution (this
"Amendment") is made as of the 27th day of December, 2001 by and between Thermo
Electron Corporation, a Delaware corporation ("Thermo Electron"), and Kadant
Inc., a Delaware corporation ("Kadant"). Capitalized terms used herein without
definition shall have the same meanings ascribed to such terms in the
Distribution Agreement (as defined below).

                                    RECITALS

        WHEREAS, Thermo Electron and Kadant are parties to that certain Plan and
Agreement of Distribution dated as of August 3, 2001 (the "Distribution
Agreement");

        WHEREAS, the parties hereto desire to amend the Distribution Agreement
as herein provided:

        NOW THEREFORE, in consideration of the covenants and agreements
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

        1.     That Section 9.6(a) of the Distribution Agreement is amended and
restated in its entirety to read as follows:

        9.6    Financial Covenants.

               (a)    Kadant will not, for so long as the guarantee by Thermo
Electron of obligations under the Kadant Debentures is outstanding:

               (i)    permit Net Debt divided by Net Capital to be greater than
                      40% measured at the end of each fiscal quarter commencing
                      on September 29, 2001; or

               (ii)   permit the quotient obtained by dividing (x) the sum of
                      EBITA and Interest Income by (y) Interest Expense to be
                      less than 4.0, measured at the end of each fiscal quarter
                      commencing on September 29, 2001 on an annualized basis
                      using the quarter then ended and the previous three
                      quarters.

               Notwithstanding the foregoing, in the event that the percentage
calculated in paragraph (i) of this Section 9.6 is less than or equal to 20% for
any measurement date, the required quotient specified in paragraph (ii) of this
Section 9.6 shall be lowered from 4.0 to 3.0 (measured at the end of each fiscal
quarter on an annualized basis using the quarter then ended and the previous
three quarters) for such period.

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        2.     This Amendment and the rights and obligations of the parties
hereunder shall be construed in accordance with and governed by the laws of the
State of Delaware.

        3.     This Amendment may be executed in counterparts, each of which
shall be considered an original, but all of which together shall constitute one
and the same agreement.

        4.     At all times on and after the date hereof, all references in the
Distribution Agreement and each of the Ancillary Agreements to the Distribution
Agreement shall be deemed to be references to such Distribution Agreement after
giving effect to this Amendment.

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        IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the date first set forth above.

                                   THERMO ELECTRON CORPORATION

                                   By:  /s/Kenneth J. Apicerno
                                        ----------------------------------------
                                        Name:   Kenneth J. Apicerno
                                        Title:  Treasurer

                                   KADANT INC.

                                   By:  /s/Thomas M. O'Brien
                                        ----------------------------------------
                                        Name:   Thomas M. O'Brien
                                        Title:  Executive Vice President and CFO<PAGE>
                                                                    EXHIBIT 10.1

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

                     SOFTWARE LICENSE AND SERVICES AGREEMENT

This SOFTWARE LICENSE AND SERVICES AGREEMENT (this "AGREEMENT") is entered into
as of March 15, 2002 (the "EFFECTIVE DATE"), by and between General Electric
Company ("GEC"), with offices at 3135 Easton Turnpike, EIG, Fairfield,
Connecticut 06431, on behalf of itself, the GEC Affiliates and the GEC
Businesses as hereinafter defined (collectively "GE"), and General Magic, Inc.
("GMI"), with its principal office at 420 North Mary Avenue, Sunnyvale,
California 94085.

1.   Definitions

     1.1  "API" means an implementation of the method prescribed for the
          magicTalk Enterprise Platform by which a programmer writing an
          application program can make requests of the magicTalk Enterprise
          Platform.

     1.2  "COMPONENT" means a reusable program building block that can be
          combined with other Components in the same or other computers in a
          distributed network to form an application.

     1.3  "CONFIDENTIAL INFORMATION" means any and all technical and
          non-technical information disclosed by one party ("Disclosing Party")
          to the other ("Receiving Party") during the term of this Agreement and
          related to the business of the Disclosing Party including but not
          limited to either parties past, present or future research,
          development, business activities and programs. Confidential
          Information shall also include (1) any unannounced product(s) or
          service(s) of either party; and (2) the terms, conditions and subject
          matter of this Agreement and any related contract documents.
          Confidential Information will not be deemed to include information
          that is (i) publicly available or becomes so in the future without
          restriction, other than as a breach of this Agreement, (ii) rightfully
          received by the Receiving Party from a third party free of any
          confidentiality obligation to the Disclosing Party, (iii) already in
          the Receiving Party's possession and lawfully received from sources
          other than the Disclosing Party, (iv) approved in writing by the
          Disclosing Party for release or disclosure without restriction by the
          Receiving Party or (v) independently developed by the Receiving Party
          without use of or reference to any Confidential Information of the
          Disclosing Party.

     1.4  "DOCUMENTATION" means the user guides and manuals for installation and
          Use of the Software.

     1.5  "GEC AFFILIATES" means those entities, including subsidiaries and
          joint ventures, which are controlled by, or under common ownership and
          control with GEC where GEC owns at least a 33% equity interest in such
          entity (or, for countries where majority ownership is restricted to
          33% or less, the maximum equity ownership permitted by local law).

     1.6  "GE APPLICATION" means a [**] voice application, and all modifications
          and enhancements thereto developed by or on behalf of GE, including
          APIs developed by GE, as well as the [**] which may be delivered by
          GMI to GE pursuant to a Statement of Work under this Agreement and,
          more specifically, under the Statement of Work dated March 15, 2002;
          provided, however, that GE Application shall not mean or include the
          GMI Software. GE shall own all right, title

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     THE OMITTED PORTIONS.

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          and interest in and to the GE Application, and all modifications,
          improvements and derivatives thereof, including all intellectual
          rights therein.

     1.7  "GEC BUSINESS" means an individual operating business or division of
          GEC, which at the time of this Agreement include: Aircraft Engines,
          Appliances, Aviation Services, Capital Services, Capital Corporate,
          Commercial Equipment Financing, Commercial Finance, Employers
          Reinsurance Corporation (ERC), Financial Assurance, GE Equity, GE
          Information Services "GEIS", GE Global eXchange Services "GXS", Global
          Consumer Finance, Industrial Systems, Lighting, Medical Systems,
          Mortgage Insurance Corporation, NBC, Plastics, Power Systems, Real
          Estate, Structured Finance Group, Supply, Transportation Systems,
          Vendor Financial Services and GE Corporate (which includes GE
          Corporate Research & Development, and all other Corporate and support
          components which components provide, among other things, international
          trade support, market development, licensing and investments for
          various GE businesses).

     1.8  "GMI SOFTWARE" means the software including all Components thereof, in
          the form commercially marketed and distributed by GMI, whether Object
          Code or Interpreted Code or both, together with the media and Updates
          therefor. GMI, its licensors and suppliers, shall own all right, title
          and interest in and to the GMI Software and associated Documentation,
          and to all modifications, improvements and derivatives thereof,
          including all intellectual property rights therein.

     1.9  "INTERPRETED CODE" means a human-readable software program that can be
          executed by a computer without compilation, such as a program written
          in the VoiceXML programming language.

     1.10 "KEY" means a numeric or alpha-numeric code that is necessary to gain
          access to and operate the Software in accordance with a license
          granted under this Agreement. GE shall receive the Key to the Software
          on the Effective Date of the Agreement. In the event that the Key
          shall be changed during the term of this Agreement, GMI shall give GE
          sixty (60) days notice of such change.

     1.11 "OBJECT CODE" means the fully compiled version of a software program
          that can be executed by a computer without further compilation.

     1.12 "ORDER FORM" means the document in hard copy or electronic form by
          which GE orders Software licenses and services, and which is accepted
          and agreed to by GMI. Each Order Form shall be substantially in the
          form attached hereto as Schedule A (Order Form) and shall reference
          the Effective Date of this Agreement.

     1.13 "PROFESSIONAL SERVICES" has the meaning given in Section 5.1
          (Professional Services) of this Agreement.

     1.14 "SERVICES" means the Professional Services and the Support Services.

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     1.15 "SITE" means those locations in which the [**] Application is
          developed, modified, maintained and/or deployed by or on behalf of GE
          and in which GE is entitled to Use the Software in accordance with a
          license granted under this Agreement.

     1.16 "SOFTWARE" means the GMI Software and the Third Party Software
          designated on the Order Form.

     1.17 "SOURCE CODE" means the human-readable version of a software program
          that requires compilation or other manipulation before it can be
          executed by a computer.

     1.18 "[**] APPLICATION" means that certain application known as the [**]
          Application as it exists as of the date hereof and as it may be
          extended, modified or enhanced hereafter via which employees,
          contractors, customers, and suppliers of GE can obtain certain
          information regarding GE products, services and business.

     1.19 "SUPPORT SERVICES" has the meaning given in Section 5.2 (Support
          Services) of this Agreement.

     1.20 "THIRD PARTY SOFTWARE" means certain third party software specifically
          identified on an Order Form that GMI has the right to sublicense and
          deliver to GE, together with the media and Updates therefor.

     1.21 "UPDATE" means a successor version of the Software that is made
          generally available to GMI's licensees that are current in the payment
          of Support Services for such Software. [**]

     1.22 "USE" means the installation, utilization and reproduction of the
          Software by or on behalf of GE solely for business purposes of GE's
          [**] Application and not for remarketing, resale, redistribution or
          sublicensing to or use on behalf of others. For the purposes of this
          Agreement GE employees, contractors, suppliers, and customers
          (collectively "Users") may Use the Software in conjunction with GE's
          business, worldwide, whether from or off GE premises.

2.   Grant of License

     2.1  Grant. Subject to the terms and conditions of this Agreement and of
          the applicable Order Form, GMI grants to GE a perpetual (except as
          provided in Section 10.2 (Termination) below), worldwide,
          non-exclusive, non-transferable (except as permitted under this
          Section 2. and Section 11.1 (Non-assignment/Binding Agreement) below),
          and non-sublicensable license:

          (a)  to Use the Software at the Site for the purposes and subject to
               the terms, conditions and limitations specified on the applicable
               Order Form;

          (b)  to use the Documentation in support of GE's Use of the Software
               pursuant to this Agreement;

          (c)  to make those copies of the Documentation and Software reasonably
               necessary to support GE's Use of the Software pursuant to this
               Agreement; and

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          (d)  to make those copies of the Software reasonably necessary for
               backup, disaster recovery, and archival purposes.

     2.2  Relocation.

          (a)  GE may relocate Software from the computer systems or networks on
               which the Software was initially installed in the event of
               inoperability of the original computer or network, for purposes
               of disaster recovery testing or as part of any GE program to
               consolidate computer or network operations, provided the Software
               remains subject to this Agreement, any quantity and use limits or
               conditions set forth in an Order Form are maintained, and GMI is
               notified within a reasonable period of time of the new location
               of the Software.

          (b)  GE may relocate Software without restriction to another GEC
               Business and/or GEC Affiliate owned or operated facility, or to
               the facilities of a third party, provided the Software remains
               subject to this Agreement, any quantity and use limits or
               conditions set forth in an Order Form are maintained, and GMI is
               notified within a reasonable period of time of the new location
               of the Software.

     2.3  Proprietary Rights. This Agreement transfers to GE neither title nor
          any proprietary or intellectual property rights to the Software or the
          Documentation, or to any modifications, improvements or derivatives
          thereof, or any copyright, patent or trademark embodied therein or
          used in connection therewith, except for the rights expressly granted
          under this Agreement.

     2.4  Proprietary Notices. GE agrees that, as a condition of its rights
          under this Agreement, it will not delete, alter or obscure any
          proprietary rights notices (including but not limited to copyright and
          trademark notices) of GMI, its licensors or suppliers that appear on
          or within each copy of the Software and the Documentation delivered by
          GMI to GE, and that it will reproduce all such notices on any copies
          of the Software and Documentation permitted under this Agreement.

     2.5  Delivery. GMI shall deliver to GE within five (5) business days after
          the date of receipt of a fully executed Order Form copies of the
          Software suitable for installation and duplication on Software
          compatible computers of GE, which copies will sent to the designated
          "Ship To" address and consist of (i) two (2) copies of the Software
          designated on the Order Form together with any appropriate Keys, (ii)
          two (2) copies of the associated Documentation, and (iii) FTP or
          digital downloadable media files of the then current Software and
          Documentation. Software shall be deemed accepted by GE upon successful
          installation.

3.   License Restrictions

     GE agrees that it will not itself, or through any agent or other third
party:

          (a)  install, use or reproduce the Software or the Documentation other
               than in accordance with this Agreement and the applicable Order
               Form;

          (b)  modify, adapt, port, translate, localize or create derivative
               works of the Software or Documentation, except as specifically
               permitted in this Agreement;

          (c)  decompile, disassemble, reverse engineer, or attempt, directly or
               indirectly, to identify, reconstruct, derive or discover the
               Source Code for all or any part of the Software (other than that
               which is Interpreted Code);

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          (d)  sell, lease, loan, rent, transfer, license or sublicense the
               Software or the Documentation except as permitted by this
               Agreement;

          (e)  use the Software to provide processing services to third parties,
               whether through timesharing, rental or sharing arrangements, or
               otherwise use the Software on a "service bureau" basis;

          (f)  use any speech or data files, specifically prompts and grammars,
               distributed with GMI Software except in connection with such
               software, or use any speech or data files, specifically prompts
               and grammars, distributed with Third Party Software except in
               connection with such software;

          (g)  provide, disclose, divulge the Software or Documentation or make
               it available to, or permit use of it by, any third party except
               as permitted by this Agreement;

          (h)  disclose directly or indirectly the results of any benchmark or
               other performance test run on the Software to any third party
               without GMI's prior written consent; or

          (i)  knowingly take any action that would cause all or any part of the
               Software to be placed in the public domain.

     At GMI's written request, not more frequently than once annually, GE shall
     furnish GMI with a signed certification verifying that the Software and
     associated Documentation is being used in accordance with the provisions of
     this Agreement and applicable Order Forms. In addition, upon ten (10) day's
     written notice and no more often than once annually, GMI may, at its
     expense, audit GE's use of the Software and Documentation. Any such audit
     shall be conducted during regular business hours at GE's facilities and
     shall not unreasonably interfere with GE's business activities. If an audit
     reveals that GE has underpaid or overpaid fees to GMI, then GE shall be
     invoiced for such underpaid fees or receive a credit or refund in GMI's
     sole discretion for such overpaid fees which such fees shall be determined
     in accordance with this Agreement.

4.   Payment Provisions

     4.1  Amount. The fee for the Software licenses granted and for the Support
          Services provided under the initial Order Form shall be at the rates
          specified on the initial Order Form (Schedule A-1). All amounts will
          be expressed, and shall be paid for, in U.S. dollars.

     4.2  Additional Orders. GE Corporate may place additional orders for
          Software and/or Support Services under this Agreement by submitting a
          Schedule A-xx for the order and paying the required "Fee(s)" as
          reflected in Schedule B. The Schedule A-xx shall specifically state
          that the order is placed under this Agreement and shall be construed
          accordingly.

     4.3  Invoicing and Payment. Payment for the Software licenses granted and
          for the Support Services provided during the Term of this Agreement
          shall be due and payable net sixty (60) days from the date of receipt
          of a correct invoice by GE. GMI shall invoice GE for the Software upon
          successful installation of the Software provided that GE may withhold
          payment in the event that GE does not accept GMI Deliverables in
          accordance with the Professional Services Exhibit A.

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     4.4  Support Services Fees. GMI shall invoice GE for GMI's Support Services
          as described in Schedule C in the amount of the support fee listed on
          Schedule B, including all applicable discounts. The charge for Support
          Services shall be invoiced sixty (60) days prior to the expiration of
          the Warranty Period, and thereafter annually sixty (60) days prior to
          the anniversary of such expiration. Payment of the invoice shall
          evidence that GE has elected maintenance for that year.

     4.5  No Offset. Fees and expenses due from GE under this Agreement may not
          be withheld or offset by GE against any amount owed to GE by GMI.

     4.6  Taxes. GE shall pay all sales, use and excise taxes, and any other
          assessments in the nature of taxes based on license fees for the
          Software or its use or on the charges for any Services performed
          hereunder, exclusive of business privilege, property, or license taxes
          levied on GMI which are not required by law to be collected from GE,
          and taxes based on GMI's net income. GE represents that it is on a
          "self-pay" basis with all applicable U.S. taxing authorities and will,
          at GMI's request, supply GMI with evidence thereof. Therefore, GMI
          will issue any invoice pursuant to this Agreement without any taxes.
          GMI and GE shall cooperate with each other in minimizing any
          applicable tax and in obtaining any exemption from or reduced rate of
          tax available under any applicable law or tax treaty.

5.   Services

     5.1  Professional Services. GMI will provide and perform professional
          services for GE pursuant to the terms and conditions of Exhibit A
          ("Professional Services") to this Agreement ("Professional Services").

     5.2  Support Services. Upon payment annually in advance in the amount set
          forth on Schedule B, GMI will provide Support Services during the term
          of this Agreement pursuant to the terms and conditions set forth in
          Schedule C ("GMI Support Services"). GE at its option shall be
          entitled to, but not obligated to, enroll in Support Services. Updates
          shall be included under Support Services. GE may elect to receive
          Support Services for a period of [**] after the expiration or
          termination of this Agreement in accordance with the fees set forth on
          Schedule B and the GMI Support Services set forth on Schedule C under
          this Agreement.

6.   Proprietary Rights Indemnification

     GMI represents and warrants that it is the sole owner of the Software and
     the GMI Deliverables, or has procured the Software and GMI Deliverables
     under valid licenses from the owners thereof, and GMI further represents
     and warrants that it has full power and authority to grant the rights
     herein granted without the consent of any other person. GMI shall defend,
     indemnify and hold GE harmless from and against any claim, suit, or other
     proceeding brought against GE based on an allegation that the GMI Software
     or the GMI Deliverables, or any elements thereof, when used in accordance
     with this Agreement, violates or infringes any patent, copyright, trade
     mark, or trade secret right arising under the law of [**], or that the
     Third Party Software or any elements thereof, when used in accordance with
     this Agreement, violates or infringes any patent, copyright, trade mark, or
     trade secret right arising under the law of [**], provided that GMI is
     notified promptly in writing of such allegation, suit, or proceeding, is
     given sole control of the defense thereof and all related settlement

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     negotiations, and is given full and complete authority, information and
     assistance (at GMI's expense) for the defense of same. GMI shall pay
     without limitation all damages and costs finally awarded against GE in, or
     incurred by GE in a settlement of, any such suit or proceeding, but GMI
     shall not be responsible for any compromise made by GE or its agents
     without GMI's consent. If such Software or the GMI Deliverables or any
     element thereof is held by a court of competent jurisdiction to be
     infringing, and its use is enjoined, GMI shall, at its own expense without
     limitation, either promptly procure the right for continued use of such
     software by GE, or, if the performance thereof will not thereby be
     materially adversely affected, promptly replace or modify such software so
     that it becomes non-infringing. If neither of the actions specified for GMI
     in the preceding sentence is commercially feasible, then as a last resort,
     GMI shall [**].

     GMI has no liability under this Section 6 for any claim to the extent it
     arises out of or is related to (i) any use of the Software other than in
     accordance with this Agreement and the Documentation [**]; (ii) a
     modification of the Software by or on behalf of GE where, but for such
     modification, there would be no infringement and such modification was not
     reasonably contemplated by the parties; (iii) a combination of the Software
     with any third party software or hardware if but for such combination
     there would be no infringement and such combination was not reasonably
     contemplated by the parties; or (iv) the use of a version of Software
     other than the then current version if infringement would have been
     avoided with the use of the then current version, [**].

     The rights granted to GE under this Section 6 shall be GE's sole and
     exclusive remedy for any alleged infringement of any patent, copyright,
     trade secret or other proprietary rights. Where the alleged infringement of
     any such right is asserted by GE to be an infringement of a GE right, the
     parties agree that the indemnity obligation under this Section 6 shall not
     apply.

7.   Warranties

     7.1  Media Warranty. GMI warrants that for a period of [**] from the date
          of successful installation of the Software by GE that the media used
          to deliver the Software to GE shall be free from defects in
          manufacture and material under normal use. Should the media fail to be
          free of defects in manufacture or material under normal use, GMI as
          its entire liability and GE's sole and exclusive remedy shall replace
          the defective media at no charge, including shipping, provided GE
          notifies GMI of the defect during the [**] warranty period. This
          warranty does not apply to damage resulting from abuse, misuse or
          negligence.

    7.2  Software Warranty. GMI warrants that, for a period of [**] from the
         date of the first successful installation of the Software, the Software
         will perform substantially as described in the Documentation. If the
         Software fails to perform substantially in such a manner, GE's sole and
         exclusive remedy, and GMI's entire liability, shall be either
         correction or replacement of the Software at no charge or a full refund
         of all license fees paid by GE for the right to use the Software,
         provided that GE notifies GMI of the defect during the [**] warranty
         period. GE will deliver all copies of defective Software with
         associated Documentation to GMI to receive replacements or a refund of
         fees. This warranty will apply only if (a) the Software has been
         properly installed (if not installed by GMI) and used in accordance
         with this Agreement and the Documentation; and (b) no modification,
         alteration or addition has been made that were not reasonably
         contemplated by the parties. Additionally, GMI warrants that for [**]
         from the date

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          of delivery of any Third Party Software hereunder, that such Software
          will fully and completely interoperate with the GMI Software.

     7.3  Code Integrity Warranty. GMI warrants and represents that the GMI
          Software, other than the Key software, does not and will not contain
          any program routine, device, code or instructions (including any code
          or instructions provided by third parties) or other undisclosed
          feature, including, without limitation, a time bomb, virus, software
          lock, drop-dead device, malicious logic, worm, trojan horse, bug,
          error, defect or trap door (including year 2000), that is capable of
          accessing, modifying, deleting, damaging, disabling, deactivating,
          interfering with, or otherwise harming the GMI Software, any
          computers, networks, data or other electronically stored information,
          or computer programs or systems (collectively, "Disabling
          Procedures"). Such representation and warranty applies regardless of
          whether such Disabling Procedures are authorized by GMI to be included
          in the GMI Software. If GMI incorporates into the GMI Software
          programs or routines supplied by other vendors, licensors or
          contractors (other than the Key software), GMI shall obtain comparable
          warranties from such providers or GMI shall take appropriate action to
          ensure that such programs or routines are free of Disabling
          Procedures. Notwithstanding any other limitations in this Agreement,
          GMI agrees to notify GE immediately upon discovery of any Disabling
          Procedures that are or may be included in the GMI Software, and, if
          Disabling Procedures are discovered or reasonably suspected to be
          present in the GMI Software, GMI, as its entire liability and GE's
          sole and exclusive remedy for the breach of the warranty in this
          Section 7.3, agrees to take action immediately, at its own expense, to
          identify and eradicate (or to equip GE to identify and eradicate) such
          Disabling Procedures and carry out any recovery necessary to remedy
          any impact of such Disabling Procedures.

     7.4  Documentation Warranty. Any Documentation associated with the GMI
          Software will be in form and substance at least equal to comparable
          materials generally in use in the industry. If at any time such
          original Documentation is revised or supplemented by additional
          Documentation, thereupon GMI shall deliver to GE copies of such
          revised or additional Documentation at no charge in quantity
          equivalent to the quantity of such original Documentation then in GE's
          possession. GE's sole and exclusive remedy for breach of this
          warranty, and GMI's entire liability, shall be the correction or
          replacement of the defective Documentation.

     7.5  [**]

     7.6  [**]

     7.7  [**]

     7.8  [**]

     7.9  [**]

     7.10 Service Personnel. GMI warrants and represents that each of its
          employees, subcontractors or agents assigned to perform work under any
          Support Services agreement, shall have the proper skill, training and
          background so as to be able to perform in a competent, professional
          and workmanlike manner and that all work will be so performed and in
          accordance with generally

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          accepted industry professional standards. GE's sole and exclusive
          remedy for breach of this warranty, and GMI's entire liability, shall
          be the re-performance at no cost of the services, provided the claim
          is made within [**] of the service date.

     7.11 Third Party Pass-Through. GMI hereby assigns to GE any and all
          manufacturers' or suppliers' warranties, guarantees, representations,
          services agreements and indemnities, if any, with respect to any third
          party hardware and software delivered by GMI hereunder to the extent
          assignable by GMI. To the extent such warranties, guarantees,
          representations, services agreements and indemnities are not
          assignable by GMI, GMI agrees that GE may assert or enforce any right
          that GMI may have to enforce such warranties, guarantees,
          representations, service agreements and indemnities, or if such can
          only be enforced by GMI and in its own name, upon GE's request and at
          GE's sole expense, GMI shall take all reasonable action requested by
          GE to enforce such warranties, guarantees, representations, service
          agreements and indemnities.

     7.12 Warranty Disclaimer. THE WARRANTIES IN THE FIRST SENTENCE OF SECTION 6
          (PROPRIETARY RIGHTS INDEMNIFICATION), IN SECTION 7 (WARRANTIES) AND IN
          SECTION 4 (WARRANTIES) OF EXHIBIT A (PROFESSIONAL SERVICES) ARE THE
          SOLE AND EXCLUSIVE WARRANTIES TO GE UNDER THIS AGREEMENT, AND IN LIEU
          OF ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,
          INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
          PARTICULAR PURPOSE OR USE, TITLE AND NONINFRINGEMENT. GMI'S LICENSORS
          AND SUPPLIERS MAKE NO REPRESENTATIONS OR WARRANTIES, EXPRESS,
          STATUTORY OR IMPLIED, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
          AGREEMENT. GMI DOES NOT WARRANT THAT THE SOFTWARE WILL OPERATE IN
          COMBINATIONS OTHER THAN AS SPECIFIED IN THE DOCUMENTATION OR THAT THE
          OPERATION OF THE SOFTWARE WILL BE UNINTERRUPTED OR ERROR-FREE.
          PRE-PRODUCTION RELEASES OF SOFTWARE ARE DISTRIBUTED "AS IS", HOWEVER,
          IF GE IS TO RECEIVE A PRE-PRODUCTION RELEASE OF SOFTWARE IT SHALL BE
          NOTIFIED IN ADVANCE AS TO THE STATUS OF THE SOFTWARE. NEITHER THE
          SOFTWARE NOR THE GMI DELIVERABLES ARE INTENDED FOR USE DIRECTLY IN ANY
          NUCLEAR, AVIATION, MASS TRANSIT, MEDICAL, OR OTHER INHERENTLY
          DANGEROUS APPLICATION. GMI EXPRESSLY DISCLAIMS ANY EXPRESS OR IMPLIED
          WARRANTY OF FITNESS FOR SUCH USE. GE REPRESENTS AND WARRANTS THAT IT
          SHALL NOT DIRECTLY OR INDIRECTLY USE THE SOFTWARE OR THE GMI
          DELIVERABLES TO DEVELOP, TEST OR DEPLOY ANY APPLICATIONS FOR SUCH
          PURPOSES.

8.   Limitation of Liability

     EXCEPT FOR GE'S OBLIGATIONS UNDER SECTION 3 (LICENSE RESTRICTIONS), GMI'S
     OBLIGATIONS UNDER SECTION 6 (PROPRIETARY RIGHTS INDEMNIFICATION) AND EACH
     PARTY'S OBLIGATIONS UNDER SECTION 9.1 (CONFIDENTIAL INFORMATION), NEITHER
     PARTY SHALL BE LIABLE TO THE OTHER FOR COSTS OF PROCUREMENT OF SUBSTITUTE
     PRODUCTS OR SERVICES, LOST PROFITS, LOSS OF USE, LOSS OF DATA OR ANY OTHER
     SPECIAL, EXEMPLARY, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY
     KIND INCURRED IN CONNECTION WITH OR ARISING OUT OF OR RELATING TO

--------

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

                                      -9-
<PAGE>

     THIS AGREEMENT, THE SOFTWARE, THE GMI DELIVERABLES, THE DOCUMENTATION, THE
     SERVICES, OR THE FURNISHING, PERFORMANCE OR USE OF THE SOFTWARE, GMI
     DELIVERABLES, DOCUMENTATION OR SERVICES PROVIDED HEREUNDER, WHETHER ALLEGED
     AS A BREACH OF CONTRACT OR TORTIOUS CONDUCT, EVEN IF THE PARTY HAS BEEN
     NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. EXCEPT FOR GE'S OBLIGATIONS
     UNDER SECTION 3 (LICENSE RESTRICTIONS), GMI'S OBLIGATIONS UNDER SECTION 6
     (PROPRIETARY RIGHTS INDEMNIFICATION) AND EACH PARTY'S OBLIGATIONS UNDER
     SECTION 9.1 (CONFIDENTIAL INFORMATION), AS TO WHICH THERE SHALL BE NO
     LIMITATION OF LIABILITY, NEITHER PARTY'S LIABILITY TO THE OTHER UNDER THIS
     AGREEMENT SHALL EXCEED [**] THE AGGREGATE FEES ACTUALLY PAID TO GMI BY GE
     UNDER THIS AGREEMENT.

9.   Confidential Information and Publicity

     9.1  Confidential Information. All Confidential Information furnished under
          this Agreement by the party disclosing such Confidential Information
          (the "Disclosing Party") to the party receiving the Confidential
          Information (the "Receiving Party") shall remain the property of the
          Disclosing Party and/or its licensors and suppliers. The Disclosing
          Party's Confidential Information may be disclosed to Receiving Party
          visually, orally, in machine-readable form, or in writing (including
          graphic material). When disclosed in machine-readable form or writing,
          the Confidential Information shall be labeled "Confidential" or
          otherwise appropriately as to indicate its confidential nature. When
          disclosed visually or orally, the Confidential Information shall be
          identified as Confidential Information at the time of initial
          disclosure. Regardless of whether so marked or identified, however,
          any information that the Receiving Party knew or should have known was
          considered confidential or proprietary by the Disclosing Party,
          including without limitation information learned by the Receiving
          Party upon visual inspection of the Disclosing Party's property, will
          be considered Confidential Information of the Disclosing Party for the
          purposes of this Agreement.

          GMI and GE agree that each party shall receive the Confidential
          Information of the other party subject to the following conditions:

          (a)  Confidential Information shall be held and protected by Receiving
               Party in strict confidence and used by Receiving Party and its
               personnel and affiliates only in conjunction with the performance
               of this Agreement. The Receiving Party shall not disclose the
               Confidential Information of the Disclosing Party to anyone except
               its own officers, employees, agents and contractors who have a
               need to know such information for purposes of exercising the
               Receiving Party's rights or performing its obligations hereunder,
               and such officers, employees, agents and contractors shall make
               no further disclosure of Confidential information without the
               express written authorization of the Disclosing Party.

          (b)  Each party warrants and represents that each of its officers,
               employees, agents and contractors working on GE-GMI projects are
               aware of (or will, within 10 days of the Effective Date of this
               Agreement be made aware of) the terms of this non-disclosure
               agreement so that they may sufficiently protect the considerable
               interests of the other party in maintaining the confidentiality
               of its Confidential Information.

          (c)  The Receiving Party shall not copy the Disclosing Party's
               Confidential Information (except for the limited purpose of
               making secondary copies for officers and employees on

                                      -10-
<PAGE>

               a need-to-know basis) and shall return to Disclosing Party any or
               all portions of the Disclosing Party's Confidential Information
               at any time upon request by the Disclosing Party including, but
               not limited to all documents or other media containing the
               Disclosing Party's Confidential Information. If any intermediate
               work products or working papers containing the Disclosing Party's
               Confidential Information shall have been generated, they shall be
               delivered to the Disclosing Party's contract administrator or
               technical coordinator or, when appropriate, disposed of as they
               so direct.

          (d)  Each party's obligations hereunder with respect to any item of
               Confidential Information of the other shall continue during the
               term of this Agreement and for 3 years after the expiration or
               termination of this Agreement, except that each party's
               obligations hereunder with respect to trade secrets of the other
               shall extend to such time as the relevant information ceases to
               qualify as a trade secret under applicable law.

          (e)  THE RECEIVING PARTY ACQUIRES NO INTELLECTUAL PROPERTY RIGHTS FROM
               THE DISCLOSING PARTY UNDER THIS SECTION 9.1, except for the
               restricted right to use Disclosing Party's Confidential
               Information for the express, limited purposes described above.

          (f)  The Receiving Party shall be responsible in all cases for the
               enforcement of all confidentiality and non-disclosure provisions
               contained herein as they pertain to the Disclosing Party's
               Confidential Information, and shall bear all liability for any
               violations of these provisions by its subsidiaries, affiliates,
               joint venturers, consultants, agents, third party contractors and
               related persons or entities that are controlled by or under
               common ownership and control of the Receiving Party.

          (g)  The parties acknowledge that they do not desire to receive any
               Confidential Information that is not reasonably necessary or
               appropriate to the performance of this Agreement.

     9.2  Publicity. As a material obligation of this Agreement, neither party
          shall use the name, logo, trademark, nor any reference either direct
          or indirect of the other in publicity releases, advertising, case
          studies or references without the prior written consent of the other.
          GMI understands that GE does not contemplate providing any such
          consent and is under no obligation, express or implied, to provide any
          such consent. In the event that consent should be granted for a
          particular communication, neither party shall be under any further
          obligation to provide consent to any future request. Both parties to
          this Agreement agree not to disclose the existence or any terms of
          this Agreement to any third party without the prior written approval
          of the other, except that the parties may disclose this Agreement (i)
          to an assignee pursuant to Section 11.1 (Non-assignment/Binding
          Agreement) hereof; or (ii) as may be required by law or legal process.

10.  Term and Termination

     10.1 Term. The license(s) granted under this Agreement will remain in force
          perpetually unless terminated as provided below. This Agreement shall
          become effective on the date specified on the first page hereof and
          shall remain in force for a minimum period of three (3) years and
          shall remain in effect thereafter until terminated by either party
          upon ninety (90) days' prior written notice to the other party or
          until this Agreement is otherwise terminated as provided herein.

                                      -11-
<PAGE>

     10.2 Termination for Cause. Either party may terminate this Agreement and
          in the event GMI is the non-breaching party, GMI may in addition
          terminate any or all licenses granted hereunder upon the occurrence of
          any of the following events of default:

          (a)  If the other party fails to perform or discharge any of its
               material obligations hereunder, and fails to correct such failure
               within a thirty (30) day cure period following written notice
               from the non-breaching party specifying such failure. For
               purposes of this paragraph, GE's obligation to make payment of
               any amount due to GMI under this Agreement shall be deemed a
               material obligation.

          (b)  If the other party shall have become insolvent or bankrupt,
               admitted in writing its inability to pay its debts as they mature
               or taken any action for the purpose of entering into winding-up,
               dissolution, bankruptcy, reorganization or similar proceedings
               analogous in purpose or effect thereto, or any such action shall
               have been instituted against it and such party shall have acceded
               thereto or such action shall not have been dismissed or stayed
               within sixty (60) days of the institution thereof, or any order
               shall have been made by any competent court or any resolution
               shall have been passed for the appointment of a liquidator or
               trustee in bankruptcy or such party shall have appointed or
               suffered to be appointed any receiver or trustee of the whole or
               any material part of its assets or business or shall have entered
               into any composition with its general creditors. In any such
               event the other party (i.e., the first party specified in this
               Section 10.2(b)) may terminate this Agreement at any time after
               such event by giving notice or may suspend or cancel deliveries
               during the continuation of any such event.

     10.3 Termination for Convenience. GE may terminate this Agreement for
          convenience at any time; termination shall not, however, relieve GE of
          the obligations specified in Sections 10.4 and 10.5 below nor shall
          GE's right to Use the Software be terminated.

     10.4 Effect of Termination. Termination of this Agreement or any license
          shall not prevent either party from pursuing other remedies available
          to it, including injunctive relieve, nor shall such termination
          relieve GE's obligation to pay all fees that have accrued or are
          otherwise owed by GE under this Agreement. Expiration or termination
          of this Agreement or any license granted hereunder for any reason
          other than a material breach by GE shall not abridge or diminish in
          any way the rights of GE to use the Software previously licensed or to
          receive Support Services as provided in this Agreement, and such use
          of the Software shall continue in perpetuity, subject to the terms and
          provisions of this Agreement and the applicable Order Form.
          Continuation of optional Support Services for such Software is subject
          to the applicable terms and provisions of Schedules B and C of this
          Agreement. The party's rights and obligations under Sections 1
          (Definitions), 2.3 (Proprietary Rights), 2.4 (Proprietary Notices), 3
          (License Restrictions), 4 (Payment Provisions), 8 (Limitations of
          Liability), 9.1 (Confidential Information), 10 (Term and Termination)
          and 11 (General) shall survive any termination or expiration of this
          Agreement for any reason.

     10.5 Discontinuation of Use. Within thirty (30) days after the date of
          termination of any license granted hereunder because of a material
          breach by GE, GE shall cease use, and shall return or destroy the
          applicable Software, and all copies thereof, all related Documentation
          and all copies thereof and shall furnish GMI with written
          certification verifying that it has done so. GE shall not be entitled
          to refund of all or any portion of the applicable license fee in such
          circumstances.

                                      -12-
<PAGE>

11.  General

     11.1 Non-assignment/Binding Agreement. Neither this Agreement nor any
          rights or obligations of either party under this Agreement may be
          assigned in whole or in part without the prior written consent of the
          other party. Notwithstanding the foregoing, GEC may, without GMI's
          written consent, assign this Agreement in whole or in part to any GEC
          Affiliate or in connection with a merger, combination or sale of all
          or substantially all of its assets. In addition, GMI may, without
          GEC's written consent, assign this Agreement in connection with a
          merger, combination or sale of all or substantially all of its assets.
          Any attempted assignment in violation of this Section 11.1 will be
          void and of no force or effect. Subject to the foregoing, this
          Agreement will bind and inure to the benefit of the parties and their
          respective successors and permitted assigns.

     11.2 Notices. Any notice required or permitted under the terms of this
          Agreement or required by law must be in writing and must be (a)
          delivered in person, (b) sent by first class registered mail, or (c)
          sent by major commercial overnight air courier, in each case properly
          posted to the other party at the address set forth below. Either party
          may change such address by notice to the other party given in
          accordance with this Section 11.2. Notices will be considered to have
          been given at the time of actual delivery in person (or when delivery
          is refused), five (5) business days after deposit in the mail as set
          forth above, or one (1) day after delivery to an overnight air courier
          service, as applicable.

     11.3 Force Majeure. Neither party will incur any liability to the other
          party on account of any loss or damage resulting from any delay or
          failure to perform all or any part of this Agreement if such delay or
          failure is caused, in whole or in part, by events, occurrences, or
          causes beyond its control. Such events, occurrences, or causes will
          include, without limitation, acts of God, strikes, lockouts, riots,
          acts of war, acts of terrorism, earthquakes, fire and explosions, but
          the inability to meet financial obligations is expressly excluded.

     11.4 Waiver. Any waiver of the provisions of this Agreement or of a party's
          rights or remedies under this Agreement must be in writing to be
          effective. Failure, neglect or delay by a party to enforce the
          provisions of this Agreement or its rights or remedies at any time,
          will not be deemed to be a waiver of such party's rights under this
          Agreement and will not in any way affect the validity of the whole or
          any part of this Agreement or prejudice such party's right to take
          subsequent action.

     11.5 Severability. If any term, condition, or provision of this Agreement
          is found by a court of competent jurisdiction to be invalid, unlawful
          or unenforceable to any extent, the parties shall endeavor in good
          faith to replace such provision with a provision that will preserve,
          as far as possible, the purposes intended by the parties under the
          provision held invalid, unlawful or unenforceable. If the parties fail
          to agree on such an amendment, the invalid term, condition or
          provision shall be changed or interpreted so as best to accomplish the
          objectives of such provision within the limits of applicable law, and
          the balance of the Agreement will continue to be valid and enforceable
          to the fullest extent permitted by law.

     11.6 Entire Agreement. This Agreement and the Order Forms (Schedule A,
          Schedule A-xx, etc.) issued hereunder constitute the entire agreement
          of the parties, and supersede all previous and contemporaneous
          communications, representations, understandings and agreements,
          whether oral or written, between the parties, with respect to the
          subject matter of this Agreement. This Agreement may not be modified
          or amended except by a writing signed by authorized

                                      -13-
<PAGE>

           representatives of both parties; no other act, document, usage or
           custom shall be deemed to amend or modify this Agreement.

     11.7  Relationship of Parties. In making and performing this Agreement, the
           parties act and shall act as independent contractors. Nothing
           contained in this Agreement shall be construed or implied to create
           the relationship of partner, or of employer and employees, between
           the parties. At no time shall either party make commitments for or in
           the name of the other party.

     11.8  Standard Terms of GE. No terms, provisions or conditions of any
           purchase order, acknowledgment or other business form that GE may use
           in connection with the licensing of the Software and associated
           Documentation or with securing Services hereunder will have any
           effect on the rights, duties or obligations of the parties under, or
           otherwise modify, this Agreement and the Order Forms issued
           hereunder, regardless of any failure of GMI to object to such terms,
           provisions or conditions.

     11.9  Export of Software; Government Use. GE agrees to comply fully with
           all relevant export laws and regulations of the United States
           ("Export Laws") to assure that neither the Software nor the
           Documentation, nor any direct product thereof are (1) exported,
           directly or indirectly, in violation of Export Laws; or (2) are
           intended to be used for any purposes prohibited by the Export Laws,
           including, without limitation, nuclear, chemical, or biological
           weapons proliferation. The Software and Documentation are "commercial
           items" as that terms is defined in 48 C.F.R. 2.101, consisting of
           "commercial computer software" and "commercial computer software
           documentation" as such terms are used in 48 C.F.R. 12.212 and
           227.7202. Consistent with 48 C.F.R. 12.212 and 48 C.F.R. 227.7202-1
           through 227.7202-4, and all U.S. Government customers acquire rights
           to use the Software and Documentation only as commercial items and
           with only those rights as are granted to all other GE customers
           pursuant to the terms and conditions of this Agreement. Unpublished
           rights are reserved under the copyright laws of the United States. In
           addition, during the term of this Agreement, GMI will, as a material
           obligation of this Agreement, disclose the levels of encryption
           technology contained within the Software sufficient for GE to comply
           with all applicable export and import law and regulations.
           Furthermore, GMI will notify GE, ninety (90) days in advance of any
           change in the level of encryption technology.

     11.10 Counterparts. This Agreement may be executed in counterparts, each of
           which so executed will be deemed to be an original and which together
           will constitute one and the same agreement. To expedite order
           processing, GE agrees that GMI may treat faxed counterparts of this
           Agreement (including executed counterparts) as originals;
           nevertheless, either party may require the other to exchange original
           signed documents.

     11.11 Applicable law; Jurisdiction. This Agreement will be interpreted and
           construed in accordance with the laws of the State of New York and
           the United States of America, without regard to conflict of law
           principles that would require application of the laws of a different
           state. The United Nations Covenant on Contracts for the Sale of Goods
           does not apply to this Agreement. All disputes arising out of this
           Agreement shall be subject to the jurisdiction and venue of the state
           and federal courts of New York and of Santa Clara County, California,
           and the parties consent to the personal jurisdiction of these courts.

     11.12 Dispute Resolution. Before either party initiates any legal action
           against the other arising from this Agreement (other than to seek
           injunctive or other equitable relief), the matter in controversy will
           first be referred to the chief information officers or other
           appropriate officers

                                      -14-
<PAGE>

           of the parties. Such officers shall take all reasonable steps to
           attempt to resolve the matter within four (4) weeks of the date of
           referral.

     11.13 Attorneys' Fees. The prevailing party in any judicial action brought
           to enforce or interpret this Agreement or for relief for its breach
           will be entitled to recover its costs and its reasonable attorneys'
           fees incurred to prosecute or defend such action.

     11.14 Remedies. In the event of any actual or threatened breach of the
           provisions of Section 3 (License Restrictions) or 9.1 (Confidential
           Information), or the licenses granted in Section 2 (Grant of
           License), the parties agree that the non-breaching party will have no
           adequate remedy at law and shall be entitled to immediate injunctive
           and other equitable relief, without bond and without the necessity of
           showing actual money damages.

     11.15 Interpretation. Section and Schedule headings are for ease of
           reference only and do not form part of this Agreement

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

GENERAL ELECTRIC COMPANY                GENERAL MAGIC, INC.

By: ____________________________        By: ____________________________

________________________________        ________________________________
(print name and title)                  (print name and title)

                                      -15-
<PAGE>

                                  SCHEDULE A-1
                               INITIAL ORDER FORM

<TABLE>
<S>                                                  <C>
----------------------------------------------------------------------------------------------------
                                        CUSTOMER INFORMATION
----------------------------------------------------------------------------------------------------
Sold and Billed To: General Electric, [**]           Ship To:*
----------------------------------------------------------------------------------------------------
Address: [**]                                        Address:
----------------------------------------------------------------------------------------------------
City:  Fairfield                    State: CN        City:                               State:
----------------------------------------------------------------------------------------------------
Country:  USA                    Zip Code: [**]      Country:                         Zip Code:
----------------------------------------------------------------------------------------------------
Contact: [**]                                        Contact:
----------------------------------------------------------------------------------------------------
Phone: [**]                                          Phone:
----------------------------------------------------------------------------------------------------
Fax: [**]                                            Fax:
----------------------------------------------------------------------------------------------------
Email: [**]                                          Email:
----------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------
                                                     * If different from Billing Address
----------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
MAGICTALK(R) VOICE                SEATS       CHANNELS          SITE(S)         LICENSE FEE
GATEWAY 1.6 LICENSES*
----------------------------------------------------------------------------------------------
<S>                               <C>         <C>               <C>             <C>
  Development                      5                             [**]                [**]
----------------------------------------------------------------------------------------------
  Staging                                      1-T1              [**]                [**]
----------------------------------------------------------------------------------------------
  Deployment                                   1-T1              [**]                [**]
----------------------------------------------------------------------------------------------

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

----------------------------------------------------------------------------------------------
TOTAL LICENSE FEES:                                                                   [**]
----------------------------------------------------------------------------------------------
</TABLE>

* INCLUDED WITH ENTERPRISE PLATFORM DEPLOYMENT LICENSE

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
<S>                            <C>     <C>            <C>       <C>           <C>
MAGICTALK(R) ENTERPRISE        SEATS   CONNECTIONS    CPUS      SITE(S)       LICENSE FEE
PLATFORM 1.0 LICENSES
*INCLUDED WITH ENTERPRISE
----------------------------------------------------------------------------------------------
  Development                   5                                [**]               [**]
----------------------------------------------------------------------------------------------
  Staging                                  1                     [**]               [**]
----------------------------------------------------------------------------------------------
  Deployment                                           1         [**]               [**]
----------------------------------------------------------------------------------------------

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

----------------------------------------------------------------------------------------------
TOTAL LICENSE FEES:                                                                 [**]
----------------------------------------------------------------------------------------------
</TABLE>

* INCLUDED WITH ENTERPRISE PLATFORM DEPLOYMENT LICENSE

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
<S>                <C>                  <C>        <C>             <C>         <C>
THIRD PARTY        LICENSES/SUPPORT     PORTS      DESCRIPTION     SITE(S)     LICENSE FEE
SOFTWARE &
HARDWARE
----------------------------------------------------------------------------------------------
[**]               Development                                      [**]          [**]
----------------------------------------------------------------------------------------------
                   Staging                                          [**]          [**]
----------------------------------------------------------------------------------------------
                   Deployment           1 T1                        [**]          [**]
----------------------------------------------------------------------------------------------
                   Support                                                        [**]
----------------------------------------------------------------------------------------------
[**]               Development                                      [**]          [**]
----------------------------------------------------------------------------------------------
                   Staging                                          [**]          [**]
----------------------------------------------------------------------------------------------
</TABLE>

--------

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

                                      -16-
<PAGE>

<TABLE>
<S>                <C>                  <C>        <C>             <C>         <C>
                   Deployment           1 T1                        [**]          [**]
----------------------------------------------------------------------------------------------
                   Support                                                        [**]
----------------------------------------------------------------------------------------------
[**]                                                                [**]          [**]
----------------------------------------------------------------------------------------------
2 - Servers                                                         [**]          [**]
----------------------------------------------------------------------------------------------
TOTAL LICENSE                                                                     [**]
FEES:
----------------------------------------------------------------------------------------------
</TABLE>

* INCLUDED WITH ENTERPRISE PLATFORM DEPLOYMENT LICENSE

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
        GMI SERVICES                 ANNUAL PERIOD      FURTHER DESCRIPTION    SERVICE FEES
----------------------------------------------------------------------------------------------
<S>                              <C>                    <C>                    <C>
Support Services                 [**] per year of the                              [**]
                                 net software license
                                 fee

----------------------------------------------------------------------------------------------
Application Development                                 [**] VUI per SOW           [**]
                                                        dated March 15, 2002
----------------------------------------------------------------------------------------------
TOTAL SERVICE FEES:                                                                [**]
----------------------------------------------------------------------------------------------
</TABLE>

* INCLUDED WITH ENTERPRISE PLATFORM DEPLOYMENT LICENSE

<TABLE>
<S>                                                                                <C>
                                                 ---------------------------------------------
                                                 Subtotal                               [**]
                                                 ---------------------------------------------
                                                 State Sales Tax                      Company
                                                                                     Self-Pay
                                                 ---------------------------------------------
                                                                   GRAND TOTAL          [**]
                                                 ---------------------------------------------
</TABLE>

ADDITIONAL DEFINITIONS. Capitalized terms used but not defined in this Order
Form shall have the meaning given them in the main body of the Agreement. For
purposes of the Agreement and this Order Form the following additional terms
have the meanings indicated below:

     "CHANNELS" means the number of T-1 lines over which telephone connections
     may be made with the Software and for which GMI has provided Keys in
     accordance with the Agreement.

     "CONNECTIONS" means the number of number of telephone connections that may
     be simultaneously maintained with the Software and for which GMI has
     provided Keys in accordance with the Agreement.

     "CPUS" means the number of single microprocessors on which the Software may
     be operated and for which GMI has provided Keys in accordance with the
     Agreement.

     "DEVELOPMENT LICENSE" means Use of the Software by the Seats designated on
     the Order Form for the purpose of designing, developing and testing GE
     Applications.

     "DEPLOYMENT LICENSE" means Use of the Software through the Channels or
     Ports, or on the CPUs, as applicable, designated on the Order Form for the
     purpose of testing for deployment and deploying the [**] Voice
     Applications.

     "PORTS" means, with respect to the [**], the number of telephone channels
     or telephone lines enabled to use the OSR Software to support a single
     conversation, as hereinafter defined. A "conversation" commences when a
     telephone caller is first connected to a computer system which processes
     the caller's spoken words for speech recognition purposes through use of
     OSR Software ("Computer System") and continues until the first of the
     following to occur: (a) the caller's telephone (or equivalent device)
     completely terminates the speech recognition portion of the connection

--------

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

                                      -17-
<PAGE>

     between the telephone (or equivalent device) and the network or networks
     which connect it to the Computer System; (b) the telephone caller's
     connection is transferred to a human being; or (c) although the caller may
     remain connected to the Computer System, the Computer System will not
     further process the caller's spoken words for speech recognition purposes
     prior to termination of the call as defined in (a) above.

     "PORTS" means, with respect to the [**] software, the maximum number of
     telephone channels or telephone lines simultaneously enabled to play the
     output of the Speechify software at a single time.

     "SEATS" means the number of employees and individual independent
     contractors of GE who may concurrently Use the Software.

     "STAGING LICENSE" means Use of the Software over the Channels or Ports, or
     on the CPUs, as applicable, designated on the Order Form, for the purpose
     of testing for deployment the [**] Voice Applications.

FURTHER LICENSE RESTRICTIONS. Each license granted pursuant to this Order Form
shall be subject to the limitations set forth in this Order Form. In no event
shall GE's Use of the Software exceed the number of Channels, Connections, CPUs,
Ports or Seats designated above, unless GE has placed and GMI has accepted an
order for such additional Channels, Connections, CPUs, Ports or Seats, all in
accordance with the Agreement.

This order is placed subject to the terms and conditions of the Software License
Agreement by and between GMI and GE with the Effective Date of March 15, 2002.

GENERAL ELECTRIC COMPANY                ACCEPTED BY GENERAL MAGIC, INC.:

Signature: _____________________        Signature: _________________________

Name: __________________________        Name: ______________________________

Title: _________________________        Title: _____________________________

Date: __________________________        Date: ______________________________

--------

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

                                      -18-
<PAGE>

                                  SCHEDULE A-XX
                                   ORDER FORM

<TABLE>
<S>                     <C>               <C>                     <C>
----------------------------------------------------------------------------------------------
                                     CUSTOMER INFORMATION
----------------------------------------------------------------------------------------------
Sold and Billed To:                       Ship To: *
----------------------------------------------------------------------------------------------
Address:                                  Address:
----------------------------------------------------------------------------------------------
City:                      State:         City:                      State:
----------------------------------------------------------------------------------------------
Country:                Zip Code:         Country:                Zip Code:
----------------------------------------------------------------------------------------------
Contact:                                  Contact:
----------------------------------------------------------------------------------------------
Phone:                                    Phone:
----------------------------------------------------------------------------------------------
Fax:                                      Fax:
----------------------------------------------------------------------------------------------
Email:                                    Email:
----------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------
                                          * If different from Billing Address
----------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
MAGICTALK(R) VOICE               SEATS        CHANNELS          SITE(S)          LICENSE FEE
GATEWAY 1.6 LICENSES
----------------------------------------------------------------------------------------------
<S>                              <C>          <C>               <C>              <C>
  Development                                                    [**]
----------------------------------------------------------------------------------------------
  Staging                                                        [**]
----------------------------------------------------------------------------------------------
  Deployment                                                     [**]
----------------------------------------------------------------------------------------------

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

----------------------------------------------------------------------------------------------
TOTAL LICENSE FEES:
----------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
MAGICTALK(R) ENTERPRISE       SEATS    CONNECTIONS    CPUS       SITE(S)        LICENSE FEE
PLATFORM 1.0 LICENSES
----------------------------------------------------------------------------------------------
<S>                           <C>      <C>            <C>        <C>            <C>
  Development                                                     [**]
----------------------------------------------------------------------------------------------
  Staging                                                         [**]
----------------------------------------------------------------------------------------------
  Deployment                                                      [**]
----------------------------------------------------------------------------------------------

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

----------------------------------------------------------------------------------------------
TOTAL LICENSE FEES:
----------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
THIRD PARTY        LICENSES/SUPPORT     PORTS      DESCRIPTION     SITE(S)     LICENSE FEE
SOFTWARE
----------------------------------------------------------------------------------------------
<S>                <C>                  <C>        <C>             <C>         <C>
[**]               Development                                      [**]
----------------------------------------------------------------------------------------------
                   Staging                                          [**]
----------------------------------------------------------------------------------------------
                   Deployment                                       [**]
----------------------------------------------------------------------------------------------
                   Support
----------------------------------------------------------------------------------------------
[**]               Development                                      [**]
----------------------------------------------------------------------------------------------
                   Staging                                          [**]
----------------------------------------------------------------------------------------------
</TABLE>
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     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

                                      -19-
<PAGE>

<TABLE>
<S>                <C>                  <C>        <C>             <C>         <C>
----------------------------------------------------------------------------------------------
                   Deployment                                       [**]
----------------------------------------------------------------------------------------------
                   Support
----------------------------------------------------------------------------------------------
TOTAL LICENSE FEES:
----------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
        GMI SERVICES              ANNUAL PERIOD          FURTHER DESCRIPTION    SERVICE FEES
----------------------------------------------------------------------------------------------
<S>                          <C>                         <C>                    <C>
Support Services             [**] per year of the net
                             software license fee

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

----------------------------------------------------------------------------------------------
Training
----------------------------------------------------------------------------------------------
TOTAL SERVICE FEES:
----------------------------------------------------------------------------------------------

                                           ---------------------------------------------------
                                           Subtotal
                                           ---------------------------------------------------
                                           State Sales Tax                            Company
                                                                                     Self-Pay
                                           ---------------------------------------------------
                                                                   GRAND TOTAL
                                           ---------------------------------------------------
</TABLE>

ADDITIONAL DEFINITIONS. Capitalized terms used but not defined in this Order
Form shall have the meaning given them in the main body of the Agreement. For
purposes of the Agreement and this Order Form the following additional terms
have the meanings indicated below:

     "CHANNELS" means the number of T-1 lines over which telephone connections
     may be made with the Software and for which GMI has provided Keys in
     accordance with the Agreement.

     "CONNECTIONS" means the number of number of telephone connections that may
     be simultaneously maintained with the Software and for which GMI has
     provided Keys in accordance with the Agreement.

     "CPUS" means the number of single microprocessors on which the Software may
     be operated and for which GMI has provided Keys in accordance with the
     Agreement.

     "DEVELOPMENT LICENSE" means Use of the Software by the Seats designated on
     the Order Form for the purpose of designing, developing and testing GE
     Applications.

     "DEPLOYMENT LICENSE" means Use of the Software through the Channels or
     Ports, or on the CPUs, as applicable, designated on the Order Form for the
     purpose of testing for deployment and deploying the [**] Voice
     Applications.

     "PORTS" means, with respect to the [**], the number of telephone channels
     or telephone lines enabled to use the OSR Software to support a single
     conversation, as hereinafter defined. A "conversation" commences when a
     telephone caller is first connected to a computer system which processes
     the caller's spoken words for speech recognition purposes through use of
     OSR Software ("Computer System") and continues until the first of the
     following to occur: (a) the caller's telephone (or equivalent device)
     completely terminates the speech recognition portion of the connection
     between the telephone (or equivalent device) and the network or networks
     which connect it to the Computer System; (b) the telephone caller's
     connection is transferred to a human being; or (c) although the caller may
     remain connected to the Computer System, the Computer System will not

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     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

                                      -20-
<PAGE>

     further process the caller's spoken words for speech recognition purposes
     prior to termination of the call as defined in (a) above.

     "PORTS" means, with respect to the [**] software, the maximum number of
     telephone channels or telephone lines simultaneously enabled to play the
     output of the Speechify software at a single time.

     "SEATS" means the number of employees and individual independent
     contractors of GE who may concurrently Use the Software.

     "STAGING LICENSE" means Use of the Software over the Channels or Ports, or
     on the CPUs, as applicable, designated on the Order Form, for the purpose
     of testing for deployment the [**] Voice Applications.

FURTHER LICENSE RESTRICTIONS. Each license granted pursuant to this Order Form
shall be subject to the limitations set forth in this Order Form. In no event
shall GE's Use of the Software exceed the number of Channels, Connections, CPUs,
Ports or Seats designated above, unless GE has placed and GMI has accepted an
order for such additional Channels, Connections, CPUs, Ports or Seats, all in
accordance with the Agreement.

This order is placed subject to the terms and conditions of the Software License
Agreement by and between GMI and GE with the Effective Date of
_________________________, 2002.

GENERAL ELECTRIC COMPANY                ACCEPTED BY GENERAL MAGIC, INC.:

Signature: _____________________        Signature: _________________________

Name: __________________________        Name: ______________________________

Title: _________________________        Title: _____________________________

Date: __________________________        Date: ______________________________

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     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

                                      -21-
<PAGE>

                                   SCHEDULE B
                                      FEES

<TABLE>
------------------------------------------------------------------------------------------------
magicTalk(R) Deployment         Unit              List Price   [**]             Net [**]
License                                                        Discount*        License
                                                                                Fee
                                                                                Discounted
                                                                                Price*
------------------------------------------------------------------------------------------------
<S>                             <C>               <C>          <C>              <C>
Voice Gateway 1.6 (Includes 5   One T1            $[**]        $[**]            $[**]
development seat licenses and
1 channel staging license)
------------------------------------------------------------------------------------------------
Enterprise Platform 1.0         One CPU           $[**]        $[**]            $[**]
(Includes 5 development seat
licenses and 1 staging
connection license)
------------------------------------------------------------------------------------------------
Enterprise Platform 1.0         One CPU           $[**]        $[**]            $[**]
Personalization (Includes one
staging license)
------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
------------------------------------------------------------------------------------------------
Third Party Software            Unit              List Price   [**]             Net [**]
Deployment License**                                           Discount*        License
                                                                                Fee
                                                                                Discounted
                                                                                Price*
------------------------------------------------------------------------------------------------
<S>                             <C>               <C>          <C>              <C>
[**]                            One T1            $[**]        $[**]            $[**]
(Includes development &
staging)
------------------------------------------------------------------------------------------------
[**]                            One T1            $[**]        $[**]            $[**]
(Includes development &
staging)
------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
-------------------------------------------------------------------------------
General Magic Services          [**]              Price
-------------------------------------------------------------------------------
<S>                             <C>               <C>
Standard Support Services       [**] of the net   Software License Fee
-------------------------------------------------------------------------------
Training                        $[**] per day     plus travel expenses
-------------------------------------------------------------------------------
Professional Services           $[**] per day     per person
-------------------------------------------------------------------------------
</TABLE>

*[**]DISCOUNT

General Magic agrees to apply a discount rate of [**] on the magicTalk Voice
Gateway and Enterprise Platform deployment licenses in exchange for [**]
participation in the General Magic Early Adopter Program (EAP).

** THIRD PARTY SOFTWARE DEPLOYMENT LICENSE

Not required to be purchased through General Magic.

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     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

                                      -22-
<PAGE>

                                   SCHEDULE C

                                SUPPORT SERVICES

For so long as GE is current in the payment of all applicable Maintenance and
Support fees, GMI will provide to GE Support Services for the licensed Software
as follows:

1.   Telephone and email Support. GMI will provide telephone and electronic
support services to GE's Designated Support Contacts from 8 a.m. to 5 p.m.
Pacific Time, Monday through Friday, excluding regularly scheduled GMI holidays
("Support Hours"). Telephone and electronic support will consist of the
following:

a.   GMI will provide support regarding clarification of functions and features
of the licensed Software, guidance in the installation, operation and
performance of the licensed Software, and clarification of the Documentation of
the licensed Software; and

b.   Assistance in diagnosing and resolving suspected Errors in the licensed
Software. An "Error" means a reproducible defect or deficiency in the licensed
Software that causes the licensed Software not to operate substantially in
accordance with the Documentation and that, despite GE's commercially reasonable
efforts, cannot be resolved by reference to the Documentation, to GMI's
technical support information database or to other materials made available by
GMI to GE for such purposes.

c.   GMI will provide one dedicated GMI resource to be an Expert on the relevant
[**] Application community.

2.   Resolution of Errors. Based on the information provided by a Designated
Support Contact and GMI's independent verification of the Error, GMI will
classify all reported and verified Errors in accordance with the severity level
resolution table below. Unless otherwise specified by the Designated Support
Contact or GMI's support engineer, Errors initially will be classified as
Severity 3. GMI will use commercially reasonable efforts to acknowledge the
report of a Severity 1 Error within [**], of a Severity 2 Error within [**], and
a Severity 3 or Severity 4 Error within [**]. GMI will use commercially
reasonable efforts to provide a correction of the Licensed Software or
Documentation to resolve the Error ("Resolution") in accordance with the
response times assigned to each severity level in the table below. Resolution
may include: (a) a determination that the Error is not reproducible; (b) a
determination that the Error is an enhancement request; (c) guidance on the
installation, function and operation of the licensed Software; (d) the creation
of a workaround for an Error in the licensed Software; or (e) the creation of
modifications to the licensed Software that enable the temporary or permanent
correction of an Error in the Software. GMI will have no liability to GE if,
despite its commercially reasonable efforts, GMI is unable for any reason to
provide a Resolution within the targeted response time or at all. Both after
hours support and complex trouble-shooting (where a defect has been isolated to
software or hardware not supplied by GMI) are available at GMI's standard hourly
rates.

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     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

                                      -23-
<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
SEVERITY LEVEL      DESCRIPTION                           TARGETED RESOLUTION TIME*
---------------------------------------------------------------------------------------------
<S>                 <C>                                   <C>
Severity 1          An Error that causes complete         Within [**] after acknowledging
                    loss of service on a production       receipt of the Error report.
                    system. Work on the system cannot
                    reasonably continue, is mission
                    critical to the business and the
                    situation is an emergency.
---------------------------------------------------------------------------------------------
Severity 2          An Error, other than a Severity 1     Within [**] after acknowledging
                    Error, that causes a significant      receipt of the Error report.
                    loss of service on a production
                    system. No acceptable workaround
                    is available; however, operation
                    of the system can continue in a
                    restricted fashion.
---------------------------------------------------------------------------------------------
Severity 3          An Error, other than a Severity 1     Within [**] after acknowledging
                    or 2 Error, that reduces              receipt of the Error report.
                    performance of the Software but
                    does not significantly impair
                    operation of a production system.
---------------------------------------------------------------------------------------------
Severity 4          An Error that causes no loss of       In the next major release of the
                    service, and is minor or cosmetic     Software (in the licensor's discretion).
                    in nature, including requests
                    for enhancement of the Software.
---------------------------------------------------------------------------------------------
</TABLE>

* The Targeted Resolution Time does not include the time taken by the Company or
the End User to gather information, transaction data and reproducible test cases
necessary to determine the nature of the Error and to isolate any defects to the
Software.

3.   Place of Performance. The Support Services provided by GMI hereunder shall
be performed remotely from GMI's facilities in Sunnyvale, California. Upon GE's
request, and subject to availability, GMI may elect to furnish qualified
personnel for on-site assistance to GE to resolve Errors in the licensed
Software. In such event, GE shall pay GMI at the time and materials rates as set
forth on Schedule B for the time of required personnel and reimburse GMI for
reasonable travel and living expenses of such personnel incurred in rendering
the requested assistance.

4.   Service Limitations. GMI will have no responsibilities or obligations under
this Agreement with respect to any Errors not attributable to GMI, including but
not limited to those resulting from or related to any of the following causes:
(a) installation (other than by GMI) or use of the licensed Software other than
in accordance with the Documentation and this Agreement; (b) any alteration of,
modification of or addition to, or attempted alteration of, modification of or
addition to the licensed Software undertaken by other than GMI or its authorized
representatives except if reasonably contemplated by the parties; (c) accident,
neglect, failure or fluctuation of electric power, air conditioning or humidity
control, or unusual physical, electrical or electromagnetic stress; (d)
combination, merger or use of the licensed Software with any hardware, software
or telecommunication interfaces not supplied or identified as compatible by GMI,
or not meeting or maintained in accordance with the Documentation except if
reasonably contemplated by the parties; (e) changes to the operating system or
environment in which the licensed Software is deployed which adversely affect
performance of the licensed Software except if reasonably contemplated by the
parties; (f) failure to implement within three (3) months all Updates and Error
corrections issued by GMI except if reasonably contemplated by the parties; or
(g) use of any release of the licensed Software other than the current release
or the one immediately preceding it except if reasonably contemplated by the
parties.

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     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

                                      -24-
<PAGE>

5.   Responsibilities of GE. GMI's provision of Support Services is subject to
the following:

a.   GE must select at least one and not more than five IT Users as Designated
Support Contacts, who shall be identified below. In order to avoid interruptions
in Support Services, GE must notify GMI whenever the duties of a Designated
Support Contact are transferred to another User.

b.   GE will properly train its Dedicated Support Contact(s) and all other of
its personnel responsible for rendering support services to end users in the
installation, operation, maintenance and support of the licensed Software.

c.   In the event that GE is impacted by an Error and requires resolution, GE
will report such Error to GMI.

d.   GE will provide GMI reasonable access to the Dedicated Support Contact(s)
and such of GE's personnel and equipment as may be necessary to verify, analyze
and resolve any unresolved Error reported by GE. This access must include the
ability to dial in to the equipment on which the licensed Software is operating
and to obtain the same access to the equipment as those of GE's employees having
the highest privilege or clearance level. GMI will inform GE of the
specifications of the modem equipment and associated software needed, and GE
will be responsible for the costs and use of said equipment at GE's site.

e.   GE will supply first level support to end users, and will not refer any end
user directly to GMI for support services.

f.   GE will utilize any tools provided by GMI to report, track and resolve
Errors. These tools may include an e-mail account and an online Error tracking
database accessible through the GMI website.

6.   Updates. For so long as GE is entitled to Support Services, GMI will
furnish to GE copies of all Updates (as defined in the Agreement) and related
Documentation, free of charge (other than shipping fees), when and as available.

7.   Additional GMI Support Services. GE shall have access to GMI technical
support databases regarding installation, function and operation of the licensed
Software, as well as its Error tracking database, as such databases are made
commercially available.

GMI Technical Support Contact:

Phone No.  [**]

Email:  [**]

GE Designated Support Contacts:

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     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

                                      -25-
<PAGE>

Name: __________________________                 _______________________

Address: _______________________        Phone No.: _____________________

         _______________________        Fax No.: _______________________

Phone No.: _____________________        Email: _________________________

Fax No.: _______________________
                                        Name: __________________________
Email: _________________________
                                        Address: _______________________

Name: __________________________                 _______________________

Address: _______________________        Phone No.: _____________________

         _______________________        Fax No.: _______________________

Phone No.: _____________________        Email: _________________________

Fax No.: _______________________
                                        Name: __________________________
Email: _________________________
                                        Address: _______________________

Name: __________________________                 _______________________

Address: _______________________        Phone No.: _____________________

                                        Fax No.: _______________________

                                        Email: _________________________

                                      -26-
<PAGE>

                                    EXHIBIT A

                              PROFESSIONAL SERVICES

This Exhibit A (Professional Services) provides the terms and conditions for the
provision of certain services by GMI to GE related to GE's required
customizations to enable Use of the Software for the [**] Application as
provided in the Software License and Services Agreement (the "Agreement") to
which this Exhibit is attached.

Effect of Exhibit A (Professional Services). This Exhibit is an additional part
of and is incorporated into the Agreement as its Exhibit A. This Exhibit does
not change or supersede any term of the Agreement and applies only to the
software described in the Statement of Work, as defined below. All capitalized
terms not otherwise defined herein will have the meanings provided in the
Agreement and/or other schedules or exhibits attached thereto.

1)   DEFINITIONS

     a)   "ACCEPTANCE DATE" has the meaning provided in Section 2 (d) below.

     b)   "GE DELIVERABLES" means the items listed in the SOW to be delivered by
          GE to GMI for use in the development of the GMI Deliverables.

     c)   "GMI DELIVERABLES" shall mean the deliverable items specifically
          identified in a SOW for delivery by GMI to GE.

     d)   "STATEMENT OF WORK" or "SOW" shall mean any mutually agreed upon form
          executed by both parties specifying the Professional Services to be
          rendered in accordance therewith, GE Deliverables, GMI Deliverables,
          applicable fees (including whether such fees shall be on a time &
          materials ("T&M"), or on a fixed price ("FP") basis), scope of work,
          and appropriate project timelines, as well as any project-specific
          requirements, including an appropriate acceptance procedure. Each SOW
          shall be governed by the terms of the Agreement, including this
          Exhibit A (Professional Services), and shall reference the Effective
          Date of the Agreement.

     e)   "THIRD PARTY TECHNOLOGY" shall mean any commercial off-the-shelf
          software and other intellectual property whether or not such property
          is fixed in a tangible medium (for example, a standard authoring
          program or platform) specifically identified in the SOW or utilized in
          the course of the SOW by GMI, and owned by a company or individual
          other than GMI or GE.

2)   PROFESSIONAL SERVICES

     a)   GE will deliver any GE Deliverables (including any GE Property as
          further described in Section 7 (a)) required under a SOW in accordance
          with the schedule set forth in the SOW.

     b)   GMI will deliver the GMI Deliverables (including any GMI Property as
          further described in Section 7 (b)) required under a SOW in accordance
          therewith.

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     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

                                      -27-
<PAGE>

     c)   The parties agree that any delay by one party in performing the tasks
          that are identified as its responsibility in the SOW and that are
          prerequisite for the performance of a task by the other party will
          extend the schedule for the other party's completion of that task on a
          day-for-day basis (or longer if the nature of the delay causes more
          than a day-for-day slip in the schedule).

     d)   GE shall have [**] from the date on which GMI delivers each GMI
          Deliverable to GE (the "Correction Period"), to determine that each
          such GMI Deliverable substantially conforms to the SOW. Within the
          Correction Period, GE will provide GMI with written acceptance of the
          GMI Deliverable or a statement of errors to be corrected ("Errors").
          Such Errors shall be limited to the failure of the GMI Deliverable to
          substantially conform to the SOW. The GMI Deliverable will be deemed
          to have been accepted by GE if GMI does not receive written acceptance
          of the deliverable or a statement of Errors during the Correction
          Period or, if the GMI Deliverable is a software program, if GE deploys
          the software in a commercial or production environment during such
          period. Upon receipt of any statement of Errors, GMI shall use
          commercially reasonable efforts to correct any reproducible Errors and
          redeliver the GMI Deliverable to GE. GE shall, within [**] of
          redelivery of the deliverable (the "Subsequent Correction Period"),
          provide GMI with written acceptance of the revised deliverable or,
          should the revised deliverable fail to substantially conform to the
          SOW, provide GMI with a written statement of additional Errors. The
          revised deliverable will be deemed to have been accepted by GE if GMI
          does not receive a written acceptance of the revised deliverable or a
          statement of additional Errors within the Subsequent Correction Period
          or, if the GMI Deliverable is a software program, if GE deploys the
          software in a commercial or production environment during such period.
          The acceptance procedures set forth herein shall continue until such
          time as GE accepts, or is deemed to have accepted, the GMI
          Deliverable. The date of written acceptance or of deemed acceptance of
          the deliverable under the foregoing acceptance procedures will be
          referred to as the "Acceptance Date."

     e)   Each party will appoint a Project Manager to supervise the development
          and implementation work to be undertaken pursuant to each SOW. The
          initial Project Managers will be identified in the SOW. Each party may
          replace its Project Manager upon notice to the other party. It will be
          the responsibility of the Project Managers to ensure orderly conduct
          of the development and implementation work and to attempt in good
          faith to resolve any disputes between the parties regarding such work.

3)   RESOURCE AND RESOURCE CHANGES

     a)   GE, prior to the commencement of any SOW, may request from GMI resumes
          and/or skill sets or other relevant information (via telephone
          interview, teleconferences, etc.).

     b)   GE, in its reasonable discretion, may request that GMI remove a
          particular consultant who is providing Professional Services under
          this Agreement if GE reasonably believes that such consultant is not
          providing Professional Services as warranted and GMI, after notice,
          has been unable to resolve performance issues relative to such
          consultant. GMI shall pay the costs of familiarizing the replacement
          consultant with the project and take such other appropriate steps to
          ensure that GE does not incur additional project costs or missed
          project deadlines in accordance with a SOW. GE may request to
          interview and approve any replacement consultant prior to such
          consultant's commencement of Professional Services for GE. GE's
          approval shall not be unreasonably withheld.

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     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

                                      -28-
<PAGE>

     c)   A party desiring to make a change (the "REQUESTOR") to the executed
          SOW must submit a written change request to the other party (the
          "REQUESTEE"). The Requestee will use reasonable efforts to notify the
          Requestor of its acceptance or rejection of the change request within
          five (5) business days. If the change request is accepted by the
          Requestee, GMI will determine within ten (10) business days of
          acceptance whether implementing the suggested change would result in a
          delay in schedule or increase in costs and will advise GE in writing
          within such period of the effect of the suggested change on schedule
          and costs. If GE accepts the effects on schedule and costs within ten
          (10) business days thereafter, the Statement of Work will be modified
          as necessary to reflect the change and its effects ("Change Order").
          If either party rejects a change request submitted by the other party,
          or if GE does not accept the effects on schedule and costs, this
          Agreement will remain in effect with no change to the SOW.

4)   WARRANTIES

     a)   GMI warrants that its Professional Services under this Exhibit A and
          the applicable SOW will be performed by qualified individuals in a
          professional and workmanlike manner conforming to generally accepted
          industry standards and practices, and that the GMI Deliverables will
          substantially conform to any specific specifications set forth in the
          applicable SOW for those deliverables. This warranty will apply only
          if (a) no modification, alteration or addition has been made to the
          GMI Deliverables by persons other than GMI or GMI's authorized
          representatives that were not reasonably contemplated by the parties.

     b)   In order to make a valid breach of warranty claim under this Section
          4.0 and to receive warranty remedies, GE shall report a deficiency in
          the Professional Services and/or GMI Deliverables to GMI in writing
          within [**] of performance of T&M Professional Services or, in the
          case of fixed price Professional Services, within [**] of acceptance
          of the Deliverables. However, where GE could not have known of such
          deficiency within [**] of performance by GMI, GE will have a [**]
          warranty period from the date of actual knowledge of the deficiency,
          provided that in no event shall a valid warranty claim be made more
          than [**] from the date of delivery or acceptance, as applicable, of
          the GMI Deliverables. For any breach of the above warranties, GE's
          exclusive remedy, and GMI's entire liability, shall be the timely
          re-performance of the Professional Services. If GMI is unable to
          re-perform the Professional Services as warranted, GE shall be
          entitled to recover the fees paid to GMI under the applicable SOW for
          the deficient Professional Services.

5)   INSURANCE

     During the performance of Professional Services under this Agreement, GMI
     shall provide and maintain minimum insurance coverage as follows:

          (a)  Worker's Compensation and employees liability, per statutory
               requirements;

          (b)  Comprehensive General Liability insurance including contractual
               liability coverage with the following limits in equivalent units
               of the local currency:

          Bodily Injury and Property Damage:    Each Occurrence      $[**] USD
                                                Aggregate            $[**] USD

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     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

                                      -29-
<PAGE>

          Excess Coverage:                      Each Occurrence      $[**] USD
                                                Aggregate            $[**] USD

     UPON GE'S REQUEST, GMI SHALL PROVIDE GE WITH A CERTIFICATE OF INSURANCE
     COMPLETED BY ITS INSURANCE CARRIER CERTIFYING THAT MINIMUM INSURANCE
     COVERAGES AS REQUIRED ABOVE ARE IN EFFECT.

6)   TERMINATION

     a)   GE may terminate the Professional Services being rendered by GMI
          pursuant to a SOW if GMI has failed to perform a material obligation
          set forth herein or in the SOW in question, provided that GE has given
          GMI written notice upon the occurrence of any such failure, which
          notice shall specify each such failure, and provided further that GMI
          has not cured any such failure within thirty (30) days of written
          notice thereof.

     b)   GMI may terminate a SOW if GE has failed to perform a material
          obligation set forth herein or in the SOW in question and if GE has
          not cured the breach within thirty (30) days' following written notice
          from GMI specifying the breach. For purposes hereof, GE's obligation
          to make payment to GMI in accordance with the SOW shall be deemed a
          material obligation.

     c)   Consent to extend the cure period shall not be unreasonably withheld
          by either party, so long as the breaching party has commenced cure
          during the thirty-day notice period and pursues cure of the breach in
          good faith.

     d)   Except as otherwise provided herein, termination of Professional
          Services under any SOW shall not limit either party from pursuing any
          other remedies available to it, including injunctive relief, nor shall
          termination relieve GE of its obligation to pay GMI all charges that
          have accrued prior to such termination. Any provisions of this Exhibit
          A (Professional Services) which by their terms contemplate survival
          will survive any termination of the Agreement or any SOW issued
          hereunder (other than the provisions of Section 4 (Warranties) which
          shall not survive termination of Professional Services by GE under any
          given SOW or of the Agreement). After termination and upon GE's
          request, GMI shall return to GE all GE Deliverables, GE Confidential
          Information, and all other GE data, records, or other materials
          provided to GMI in connection with the work contemplated by the
          terminated SOW.

7)   RIGHTS TO DELIVERABLES

a)   GE PROPERTY. GE may provide to GMI for incorporation into or use in
     developing of the GMI Deliverables, GE Property owned or licensed by GE.
     "GE Property" shall mean all GE intellectual property prepared by GE, or
     for GE by a third party and which is identified in the applicable SOW and
     provided to GMI by GE for use hereunder. GE retains all ownership rights in
     and to GE Property at all times.

b)   GMI PROPERTY. GMI may incorporate into GMI Deliverables, and/or provide to
     GE for use with GMI Deliverables, GMI Property owned or licensed by GMI.
     "GMI Property" shall mean all preexisting GMI intellectual property (except
     the GMI Software) which is provided to GE by GMI for use in or with GMI
     Deliverables hereunder. GMI hereby grants to GE a nonexclusive, worldwide,
     royalty-free right and license to use, execute, reproduce, display, perform
     modify and create

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     derivative works of the GMI Property, solely and exclusively for GE
     internal use with and as part of GMI Deliverables. GMI retains all
     ownership rights in and to GMI Property at all times.

c)   NEWLY-DEVELOPED MATERIALS. Each party's rights in and to material prepared
     by GMI for GE during the term of and in the performance of Professional
     Services under SOW(s) issued hereunder shall be as follows:

     TYPE I MATERIALS - Type I Materials developed, authored or prepared for GE,
     including but not limited to all documents, documentation, designs,
     computer programs, computer systems, data compilations, and other tangible
     and intangible materials by GMI, shall be considered works made for hire,
     are the sole and exclusive property of GE, and shall include all newly
     developed materials including, but not limited to, the GMI Deliverables
     (but excluding GMI Software, GMI Property, Type II Materials, Inventions of
     GMI, and Third Party Software as these terms are defined herein). In the
     event that the GMI Deliverables, Type 1 Materials and any other newly
     developed materials do not fall within the specifically enumerated works
     that constitute works made for hire under the United States Copyright laws,
     GMI hereby agrees to assign and, upon its authorship or creation, expressly
     assigns all copyrights, proprietary rights, trade secrets and other right,
     title and interest in and to such GMI Deliverables, Type 1 Materials and
     other newly-developed materials to GE. GMI agrees that such assignment
     shall be automatic under this Agreement.

     GMI further agrees to render all required assistance to protect GE's
     aforementioned rights. Classification of a Type I Material shall be
     mutually determined prior to the commencement of any Professional Services
     by GMI, and shall be specifically set forth in a SOW. GMI may decline to
     enter into any SOW for a GMI Deliverable which GE desires to claim as a
     Type I Material. Upon creation of any such Type I Materials, GMI
     automatically assigns and agrees to assign without further consideration,
     the copyright and all other rights, except rights to Inventions and/or
     patents as more specifically addressed in Section 7.d. below, in and to all
     such Type I Materials. It is anticipated that Type I Materials shall be
     those specific items that express or embody GE Property or GE's proprietary
     processes, techniques and/or information.

     Upon written agreement by GE, at GE's sole and exclusive discretion, and
     for such consideration as GE and GMI may agree to in writing, GMI may
     request, on a per SOW basis, to acquire the nonexclusive right to use and
     distribute certain Type I Materials.

     Notwithstanding the foregoing, GE acknowledges that its ownership of Type I
     Materials will not preclude GMI from utilizing in other projects any
     general ideas, concepts, techniques, or generic tools or software
     components learned by GMI in connection with the performance of
     Professional Services for GE, provided that the foregoing are not specific
     and unique to GE.

     TYPE II MATERIALS - Notwithstanding, GMI retains title, including ownership
     of copyright, to materials: i) identified in a SOW as Type II Materials,
     and/or ii) any GMI high-level macro language or CASE generated subroutines,
     scripts, objects (such as EJB components) and other tools, utilities or
     components which are not specific and unique to GE (excluding any GE
     Confidential Information). GE's license to Type II Materials is as set
     forth in under the terms and conditions of the Agreement.

8)   FEES FOR PROFESSIONAL SERVICES

     Professional Services will be provided either on a T&M basis at rates and
     applicable discounts in accordance with Schedule B during the term thereof,
     or on a FP basis, at the fixed price stated in the applicable SOW, where
     the bid for such fixed price shall incorporate rates and applicable
     discounts in accordance with Schedule B during the term thereof.

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     If a dollar limit is stated in the applicable SOW for T&M Professional
     Services, the limit shall be deemed an estimate for GE's budgeting and
     Licensor's resource scheduling purposes; after the limit is expended,
     Licensor will continue to provide the Professional Services on a T&M basis,
     if a SOW for continuation of the Professional Services is signed by the
     parties. Payment will be subject to Sections 4.4 (No Offset) and 4.5
     (Taxes) of the Agreement.

9)   INVOICING AND PAYMENT

     GMI shall invoice GE monthly, unless otherwise expressly specified in the
     applicable SOW. Charges shall be payable within [**] of receipt of a
     correct invoice. GE shall issue a purchase order, or alternative document
     acceptable to GMI, on or before commencement of Professional Services under
     the applicable SOW. All amounts will be expressed, and shall be paid for,
     in U.S. dollars.

10)  INCIDENTAL EXPENSES

     Upon prior written agreement of the parties, appropriate travel,
     administrative, and out-of-pocket expenses incurred by GMI in connection
     with the Professional Services performed shall be invoiced by, and
     reimbursed by GE to, GMI. GMI acknowledges that, when approved by GE, any
     such incidental expenses shall be incurred by GMI in accordance with GE's
     general policies for such expenses.

11)  LICENSE FEES FOR THIRD PARTY TECHNOLOGY

     In each SOW, GE shall set forth all GE standard software and hardware
     platforms that may be relevant to the preparation and/or deployment of the
     GMI Deliverables, including all Third Party Technology licenses relating
     thereto. GMI shall work with GE to ensure that, whenever possible, such
     standard software and platforms will be utilized. Notwithstanding the
     foregoing, GMI may also utilize other Third Party Technology in GMI
     Deliverables provided that the following requirements are met:

          (a)  THIRD PARTY TECHNOLOGY FOR WHICH THE ANTICIPATED INITIAL LICENSE
               FEES WILL BE TEN THOUSAND DOLLARS ($10,000) OR MORE IN THE
               AGGREGATE FOR A PARTICULAR SOW:

               -    GE, upon notification by GMI, shall verify to the extent
                    commercially practicable, that GE has an existing license to
                    such Third Party Technology, or that GE will acquire such
                    license, in each case that permits use by GMI as
                    contemplated by the SOW.

               -    If GE does not already have an existing license to such
                    Third Party Technology, or does not intend to acquire such
                    license itself, then GMI shall acquire such license and the
                    terms of the license and any maintenance, support, and/or
                    royalty provisions thereto shall be first approved in
                    writing by GE prior to any execution of the license by GMI
                    on GE's behalf. GMI shall have no responsibility or
                    liability for such fees; or,

          (b)  THIRD PARTY TECHNOLOGY FOR WHICH THE LICENSE, MAINTENANCE,
               SUPPORT, AND/OR ROYALTY FEES ARE LESS THAN TEN THOUSAND DOLLARS
               ($10,000) IN THE AGGREGATE FOR A PARTICULAR SOW:

               -    GE shall be responsible for Third Party Technology license,
                    maintenance, support, and/or royalty fees which are less
                    than ten thousand dollars ($10,000) in the aggregate only
                    when GMI has acquired such Third Party Technology
                    specifically for GE, or where GMI

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                    will incur incremental cost (e.g. license fees, royalties,
                    etc.) as a result of utilizing such Third Party Technology
                    under a SOW.

12)  COMPLIANCE WITH GE'S POLICIES

     a)   SAFETY POLICIES. GMI agrees to use reasonable efforts to cause any
          consultant who provides Professional Services under this Agreement to
          comply when on GE's premises with GE's reasonable standard safety
          policies that GE communicates to such consultant, to the extent that
          such policies are applicable to the site where such consultant is
          providing Professional Services.

     e)   DRUG ABUSE POLICIES. GMI will advise any consultant who is physically
          on a GE Site and who provides Professional Services under this
          Agreement of GE's policy, exclusively when providing Professional
          Services where drug screening is mandatory pursuant to governmental
          regulations, to require an initial drug screen prior to the
          commencement of the assignment and, further, to require a drug screen
          at any time during the assignment either (i) if GE believes in good
          faith that the consultant is under the influence of an illegal
          substance, or (ii) as a consequence of an accident caused by or
          involving the consultant on GE's premises during the performance of
          this Agreement and likely to have been related to the consultant's use
          of an illegal substance. Any drug screens shall be performed by GE (or
          a company hired by GE) at GE's expense.

     b)   THE SPIRIT & THE LETTER. GMI agrees to use reasonable efforts to cause
          any consultant who provides Professional Services under this Agreement
          to comply with GE's Policy Handbook, Integrity: The Spirit & The
          Letter of Our Commitment and agrees to comply with its Policies 20.2,
          Equal Employment Opportunity; 20.4, Ethical Business Practices; 20.5,
          Complying with the Antitrust Laws; and 30.5, Avoiding Conflicts of
          Interest.

12)  NONEXCLUSIVITY

     This Agreement is nonexclusive. GE may contract with other entities to
     perform services, and nothing herein precludes GMI from developing,
     marketing, and distributing any voice-solution technology.

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