Document:

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                                                                   EXHIBIT 10.3

                           [GENERAL MAGIC LETTERHEAD]

August 28, 2001

CONFIDENTIAL

Mr. Mark Phillips
5780 Cannes Place
San Jose, CA  95138

Dear Mark:

We are very pleased to extend an offer to you to join the General Magic team as
Vice President, Product Development, reporting to Kathie Layton. This letter
sets out the terms of your employment with General Magic.

1.  Base Salary:

    You will be paid a base salary of $9,615.38 every two weeks ($250,000
    annualized), less applicable withholding.

2.  Incentive Cash Compensation:

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

3.  Stock Options:

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

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Mark Phillips
August 28, 2001
Page 2 of 3

    plans and will be governed by and subject to the terms and conditions of the
    Company's standard form of non-plan stock option agreement. Board meetings
    typically occur once each quarter, and the fair market value of the
    Company's stock may change based on the Company's financing activities,
    technical and business success, and other factors.

4.  Benefits:

    A booklet describing our benefit plans is included in this package. You and
    your family are eligible for health insurance benefits beginning on your
    start date with General Magic. Please refer to that booklet regarding the
    specifics of the plans.

5.  Change of Control:

    In addition, in the event you are terminated following a change of control,
    you will be entitled to benefits at the executive management level under the
    company's Change of Control Plan, and subject to its terms. A copy of the
    plan will be provided to you at your request.

6.  "At Will" employment:

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

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

The terms and conditions of this offer letter and the proprietary agreement
referenced above supersede any prior written or oral communications with you
concerning your employment at General Magic. The provisions of this agreement
regarding "at will" employment may only be modified by a document signed by you
and the President of

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Mark Phillips
August 28, 2001
Page 3 of 3

General Magic. Please indicate your acceptance of these terms and conditions by
signing and dating the enclosed original of this letter and returning it to me.
Please retain the duplicate for your records.

Your acceptance of our offer represents a unique opportunity for us both to grow
and succeed. As we discussed, we are all very excited about your joining us. We
believe you will blend well and provide significant value both strategically and
tactically to our team in executing to our vision and expect this to be a
mutually rewarding experience. We want to thank you in advance for your faith in
us, and for the commitment you have made to our common vision. We look forward
to working with you.

Welcome to General Magic!

GENERAL MAGIC, INC.

/s/ K.M. Layton
-------------------------
Kathie Layton
President and CEO

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

/s/ M. Phillips
-------------------------
Mark Phillips

Start date:  September 5, 2001<PAGE>
                                                                   EXHIBIT 10.1

                                     FORM OF

                            INDEMNIFICATION AGREEMENT

        This Indemnification Agreement ("Agreement") is made as of ___________,
by and between Netro Corporation, a Delaware corporation (the "Company"), and
__________ ("Indemnitee").

        WHEREAS, the Company and Indemnitee recognize the difficulty in
obtaining directors' and officers' liability insurance, the cost of such
insurance and the limited scope of coverage of such insurance;

        WHEREAS, the Company and Indemnitee further recognize the substantial
increase in corporate litigation in general, subjecting officers and directors
to expensive litigation risks at the same time as the availability and coverage
of liability insurance has been severely limited;

        WHEREAS, Indemnitee does not regard the current protection available as
adequate under the present circumstances, and Indemnitee and other officers and
directors of the Company may not be willing to continue to serve as officers and
directors without additional protection; and

        WHEREAS, the Company desires to attract and retain the services of
highly qualified individuals, such as Indemnitee, to serve as officers and
directors of the Company and to indemnify its officers and directors so as to
provide them with the maximum protection permitted by law.

        NOW, THEREFORE, the Company and Indemnitee hereby agree as follows:

        1. Indemnification.

           (a) Third Party Actions. The Company shall indemnify and hold
harmless Indemnitee if Indemnitee was or is a party or is threatened to be made
a party to, or is involved in any threatened, pending, or completed action, suit
or proceeding, whether civil, criminal, administrative or investigative (other
than an action by or in the right of the Company) by reason of the fact that
Indemnitee is or was a director or officer of the Company, or is or was serving
at the request of the Company as a director or officer of another corporation,
partnership, joint venture trust or other enterprise, against expenses
(including attorneys' fees), judgments, fines and amounts paid in settlement (if
such settlement is approved in advance by the Company) actually and reasonably
incurred by Indemnitee in connection with such action, suit or proceeding if
Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to
be in or not opposed to the best interests of the Company, and with respect to
any criminal action or proceeding, had no reasonable cause to believe
Indemnitee's conduct was unlawful. The termination of any action, suit or
proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not, in itself, create a presumption that
Indemnitee did not act in good faith and in a manner which Indemnitee reasonably
believed to be in or not opposed to the best interest of the Company, and, with
respect to any criminal action or proceeding, had reasonable cause to believe
that Indemnitee's conduct was unlawful.

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           (b) Actions by or in the Right of the Company. The Company shall
indemnify and hold harmless Indemnitee if Indemnitee was or is a party or is
threatened to be made a party to, or is involved in any threatened, pending or
completed action or suit by or in the right of the Company to procure a judgment
in its favor by reason of the fact that Indemnitee is or was a director or
officer of the Company, or is or was serving at the request of the Company as a
director or officer of another corporation, partnership, joint venture, trust or
other enterprise against expenses (including attorneys' fees) and amounts paid
in settlement (if such settlement is approved in advance by the Company)
actually and reasonably incurred by Indemnitee in connection with the defense or
settlement of such action or suit if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, except that, if applicable law so provides, no
indemnification shall be made in respect of any claim, issue or matter as to
which Indemnitee shall have been adjudged to be liable to the Company unless and
only to the extent that the Delaware Court of Chancery or the court in which
such action or suit was brought shall determine upon application that, despite
the adjudication of liability but in view of all the circumstances of the case,
Indemnitee is fairly and reasonably entitled to indemnity for such expenses
which the Delaware Court of Chancery or such other court shall deem proper.
Notwithstanding any other provision of this Agreement, Indemnitee shall not be
indemnified hereunder for any expenses or amounts paid in settlement with
respect to any action to recover short-swing profits under Section 16(b) of the
Securities Exchange Act of 1934, as amended.

           (c) Mandatory Payment of Expenses. To the extent that Indemnitee has
been successful on the merits or otherwise in defense of any action, suit or
proceeding referred to in Subsections (a) and (b) of this Section 1 or in
defense of any claim, issue or matter therein, Indemnitee shall be indemnified
against expenses (including attorneys' fees) actually and reasonably incurred by
Indemnitee in connection therewith.

           (d) Determination of Conduct. Any indemnification under Subsections
(a) and (b) of this Section 1 shall be made by the Company unless otherwise
required by a court of competent jurisdiction.The Company shall pay all
reasonable fees and expenses incident to the procedures of this Subsection (d),
and the Indemnitee shall be presumed to be entitled to indemnification hereunder
pending the resolution of any such claim.

        2. Expenses; Indemnification Procedure.

           (a) Advancement of Expenses. Expenses incurred in defending a civil
or criminal action, suit or proceeding by Indemnitee, if Indemnitee is
determined to be entitled to indemnification pursuant to Subsection (a) or (b)
of Section 1, shall be paid by the Company in advance of the final disposition
of such action, suit or proceeding upon receipt of an undertaking by or on
behalf of Indemnitee to repay such amount if it shall ultimately be determined
that Indemnitee is not entitled to be indemnified by the Company as authorized
by this Agreement (the "Undertaking"); provided, however, that the Company shall
not be required to advance expenses to Indemnitee in connection with any
proceeding (or part thereof) initiated by Indemnitee unless the proceeding was
authorized in advance by the board of directors of the Company. Any advances the
Company is obligated to make hereunder, subject to the foregoing provisos, shall
be paid by the Company to Indemnitee within twenty (20) days following receipt
of the Undertaking.

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Indemnitee shall be entitled to receive interim payments of expenses pursuant to
this Subsection (a) unless and until such defense may be finally adjudicated by
court order or judgment from which no further right of appeal exists.

           (b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a
condition precedent to his or her right to be indemnified under this Agreement,
give the Company notice in writing as soon as practicable of any claim made
against Indemnitee for which indemnification will or could be sought under this
Agreement. Notice to the Company shall be directed to the Chief Executive
Officer of the Company at the address shown on the signature page of this
Agreement (or such other address as the Company shall designate in writing to
Indemnitee). In addition, Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee's
power.

           (c) Procedure. Any indemnification and advances determined proper in
accordance with Subsection (d) of Section 1 shall be made no later than
forty-five (45) days after such determination. If a claim under this Agreement,
under any statute, or under any provision of the Company's Certificate of
Incorporation or Bylaws providing for indemnification, is not paid in full by
the Company within forty-five (45) days after such determination, Indemnitee
may, but need not, at any time thereafter bring an action against the Company to
recover the unpaid amount of the claim and, subject to Section 13 of this
Agreement, Indemnitee shall also be entitled to be paid for the expenses
(including attorneys' fees) of bringing such action. It shall be a defense to
any such action (other than an action brought to enforce a claim for expenses
incurred in connection with any action, suit or proceeding in advance of its
final disposition) that Indemnitee has not met the standards of conduct which
make it permissible under applicable law for the Company to indemnify Indemnitee
for the amount claimed.

           (d) Notice to Insurers. If, at the time of the receipt of a notice of
a claim pursuant to Section 2(b) hereof, the Company has director and officer
liability insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all reasonable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such proceeding in accordance
with the terms of such policies.

           (e) Selection of Counsel. In the event the Company shall be obligated
under Section 2(a) hereof to pay the expenses of any proceeding against
Indemnitee, the Company, if appropriate, shall be entitled to assume the defense
of such proceeding, with counsel approved by Indemnitee, upon the delivery to
Indemnitee of written notice of its election so to do. After delivery of such
notice, approval of such counsel by Indemnitee and the retention of such counsel
by the Company, the Company will not be liable to Indemnitee under this
Agreement for any fees of any other counsel subsequently incurred by Indemnitee
with respect to the same proceeding, provided that (i) Indemnitee shall have the
right to employ his or her counsel in any such proceeding at Indemnitee's
expense; and (ii) if (A) the employment of counsel by Indemnitee has been
previously authorized by the Company, (B) Indemnitee shall have reasonably
concluded that there may be a conflict of interest between the Company and
Indemnitee in the conduct of any such defense, or (C) the Company shall not, in
fact, have employed counsel to assume the defense

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of such proceeding, then the fees and expenses of Indemnitee's counsel shall be
at the expense of the Company.

        3. Additional Indemnification Rights; Nonexclusivity.

           (a) Scope. Notwithstanding any other provision of this Agreement, the
Company hereby agrees to indemnify the Indemnitee to the fullest extent
permitted by law, notwithstanding that such indemnification is not specifically
authorized by the other provisions of this Agreement, the Company's Certificate
of Incorporation, the Company's Bylaws or by statute. In the event of any change
in any applicable law, statute or rule which narrows the right of a Delaware
corporation to indemnify a member of its board of directors or an officer, such
changes, to the extent not otherwise required by such law, statute or rule to be
applied to this Agreement shall have no effect on this Agreement or the parties'
rights and obligations hereunder.

           (b) Nonexclusivity. The indemnification provided by this Agreement
shall not be deemed exclusive of any rights to which Indemnitee may be entitled
under the Company's Certificate of Incorporation, its Bylaws, any agreement, any
vote of shareholders or disinterested directors, the Delaware General
Corporation Law, or otherwise, both as to action in Indemnitee's official
capacity and as to action in another capacity while holding such office. The
indemnification provided under this Agreement shall continue as to Indemnitee
for any action taken or not taken while serving in an indemnified capacity even
though he or she may have ceased to serve in such capacity at the time of any
action, suit or other covered proceeding.

        4. Partial Indemnification. If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of the expenses, judgments, fines or penalties actually or reasonably
incurred by him or her in the investigation, defense, appeal or settlement of
any civil or criminal action, suit or proceeding, but not, however, for the
total amount thereof, the Company shall nevertheless indemnify Indemnitee for
the portion of such expenses, judgments, fines or penalties to which Indemnitee
is entitled.

        5. Mutual Acknowledgment. Both the Company and Indemnitee acknowledge
that in certain instances, Federal law or applicable public policy may prohibit
the Company from indemnifying its directors and officers under this Agreement or
otherwise. Indemnitee understands and acknowledges that the Company has
undertaken or may be required in the future to undertake with the Securities and
Exchange Commission to submit the question of indemnification to a court in
certain circumstances for a determination of the Company's right under public
policy to indemnify Indemnitee.

        6. Officer and Director Liability Insurance. The Company may, from time
to time, make the good faith determination whether or not it is practicable for
the Company to obtain and maintain a policy or policies of insurance with
reputable insurance companies providing the officers and directors of the
Company with coverage for losses from wrongful acts, or to ensure the Company's
performance of its indemnification obligations under this Agreement. Among other
considerations, the Company will weigh the costs of obtaining such insurance
coverage against the protection afforded by such coverage. In all policies of
director and officer liability insurance, Indemnitee shall be named as an
insured in such a manner as to provide Indemnitee the same

<PAGE>

rights and benefits as are accorded to the most favorably insured of the
Company's directors, if Indemnitee is a director; or of the Company's officers,
if Indemnitee is not a director of the Company, but is an officer; or of the
Company's key employees, if Indemnitee is not an officer or director, but is a
key employee. Notwithstanding the foregoing, the Company shall have no
obligation to obtain or maintain such insurance if the Company determines in
good faith that such insurance is not reasonably available, if the premium costs
for such insurance are disproportionate to the amount of coverage provided, if
the coverage provided by such insurance is limited by exclusions so as to
provide an insufficient benefit, or if Indemnitee is covered by similar
insurance maintained by a subsidiary or parent of the Company. However, the
Company's decision whether or not to adopt and maintain such insurance shall not
affect in any way its obligations to indemnify Indemnitee under this Agreement
or otherwise.

        7. Severability. Nothing in this Agreement is intended to require or
shall be construed as requiring the Company to do or fail to do any act in
violation of applicable law. The Company's inability, pursuant to court order,
to perform its obligations under this Agreement shall not constitute a breach of
this Agreement. The provisions of this Agreement shall be severable as provided
in this Section 7. If this Agreement or any portion hereof shall be invalidated
on any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee to the full extent permitted by any applicable
portion of this Agreement that shall not have been invalidated, and the balance
of this Agreement not so invalidated shall be enforceable in accordance with its
terms.

        8. Exceptions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement:

           (a) Claims Initiated by Indemnitee. To indemnify or advance expenses
to Indemnitee with respect to proceedings or claims initiated or brought
voluntarily by Indemnitee and not by way of defense, except with respect to
proceedings brought to establish or enforce a right to indemnification under
this Agreement or any other statute or law, but such indemnification or
advancement of expenses may be provided by the Company in specific cases if the
Board of Directors has approved the initiation or bringing of such suit.

           (b) Lack of Good Faith. To indemnify Indemnitee for any expenses
incurred by the Indemnitee with respect to any proceeding instituted by
Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction determines that each of the material assertions made by the
Indemnitee in such proceeding was not made in good faith or was frivolous.

           (c) Insured Claims. To indemnify Indemnitee for expenses or
liabilities of any type whatsoever (including, but not limited to, judgments,
fines, ERISA excise taxes or penalties, and amounts paid in settlement) which
have been paid directly to Indemnitee by an insurance carrier under a policy of
officers' and directors' liability insurance maintained by the Company.

           (d) Claims Under Section 16(b). To indemnify Indemnitee for expenses
and the payment of profits arising from the purchase and sale by Indemnitee of
securities in violation of Section 16(b) of the Securities Exchange Act of 1934,
as amended, or any similar successor statute.

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        9. Construction of Certain Phrases. For purposes of this Agreement,
references to the "Company" shall include any constituent corporation (including
any constituent of a constituent) absorbed in a consolidation or merger which,
if its separate existence had continued, would have had power and authority to
indemnify its directors, officers, and employees or agents, so that if
Indemnitee is or was a director, officer, employee or agent of such constituent
corporation, or is or was serving at the request of such constituent corporation
as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, Indemnitee shall stand in the same
position under the provisions of this Agreement with respect to the resulting or
surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

        10. Effectiveness.This Agreement shall be deemed to be effective as of
the commencement date of Indemnitee's employment as an Officer or Director of
the Company.

        11. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall constitute an original.

        12. Successors and Assigns. This Agreement shall be binding upon the
Company and its successors and assigns, and shall inure to the benefit of
Indemnitee and Indemnitee's estate, heirs, legal representatives and assigns.

        13. Attorneys Fees. In the event that any action is instituted by
Indemnitee under this Agreement to enforce or interpret any of the terms hereof,
Indemnitee shall be entitled to be paid all court costs and expenses, including
reasonable attorneys, fees, incurred by Indemnitee with respect to such action,
unless as a part of such action, the court of competent jurisdiction determines
that each of the material assertions made by Indemnitee as a basis for such
action were not made in good faith or were frivolous. In the event of an action
instituted by or in the name of the Company under this Agreement or to enforce
or interpret any of the terms of this Agreement, Indemnitee shall be entitled to
be paid all court costs and expenses, including attorneys' fees, incurred by
Indemnitee in defense of such action (including with respect to Indemnitee's
counterclaims and cross-claims made in such action), unless as a part of such
action the court determines that each of Indemnitee's material defenses to such
action were made in bad faith or were frivolous.

        14. Notice. All notices, requests, demands and other communications
under this Agreement shall be in writing and shall be deemed duly given (i) if
delivered by hand and receipted for by the party addressee, on the date of such
receipt, or (ii) if mailed by domestic certified or registered mail with postage
prepaid, on the third business day after the date postmarked. Addresses for
notice to either party are as shown on the signature page of this Agreement, or
as subsequently modified by written notice.

        15. Consent to Jurisdiction. The Company and Indemnitee each hereby
irrevocably consent to the jurisdiction of the courts of the State of California
for all purposes in connection with any action or proceeding which arises out of
or relates to this Agreement and agree that any action instituted under this
Agreement shall be brought only in the state courts of the State of California.

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        16. Choice of Law. This Agreement shall be governed by and its
provisions construed in accordance with the laws of the State of Delaware.

        17. Modification. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof. All prior
negotiations, agreements and understandings between the parties with respect
thereto are superseded hereby. This Agreement may not be modified or amended
except by an instrument in writing signed by or on behalf of the parties hereto.

                            [SIGNATURE PAGE FOLLOWS]

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

                                     NETRO CORPORATION

                                     By:
                                        -----------------------------------

                                     Title:
                                           --------------------------------

AGREED TO AND ACCEPTED:

INDEMNITEE

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<<Indemnitee>>

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(address)

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