Document:

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                                                                   EXHIBIT 10.43

          AGREEMENT FOR IMPLEMENTATION OF LICENSOR SOFTWARE MATERIALS

     THIS AGREEMENT, entered into this 1st day of June, 1999 by and between Palm
Computing Inc. ("Palm"), a subsidiary of 3Com Corporation ("3Com") duly
organized and existing under the laws of the State of California, having a place
of business at 5400 Bayfront Plaza Santa Clara, California 95052 (Palm and 3Com
are hereinafter collectively referred to as "Reseller") and AvantGo, Inc.
                                             --------
(hereinafter referred to as "Licensor"), having its principal place of business
                             --------
at 1700 South Amphlett Boulevard, Suite 300, San Mateo CA 94402.

The parties agree as follows:

ARTICLE 1 - DEFINITIONS
-----------------------

1.1   Licensor shall mean AvantGo, Inc.
      --------

1.2   Software shall mean the Client Software and documentation available from
      --------
      Licensor as described in Exhibit I attached hereto. Software shall include
      any Updates Licensor makes available to Reseller under this Agreement.
      Exhibit I shall be modified from time to time, as mutually agreed upon by
      the parties.

1.3   Reseller Product(s) shall mean Reseller's products based on the Palm
      -------------------
      Computing platform (or any future version thereof, whether or not marketed
      under such name) which are manufactured and sold by Reseller and
      Reseller's wholly owned subsidiaries.

1.4   Use shall mean copying or linking any portion of the Software into
      ---
      Reseller's Product and/or incorporating such software into Reseller's
      Product for processing of the machine instructions or statements contained
      in such software.

1.5   License Commencement Date of this Agreement shall mean the latter of the
      -------------------------
      date on which both of the parties have executed this Agreement and the
      date on which Licensor receives funding from Reseller pursuant to that
      certain Stock Purchase Agreement by and between the parties dated June ,
      1999.

1.6   Territory shall mean all countries.
      ---------

1.7   Intellectual Property Rights shall mean any trade secrets, patents,
      ----------------------------
      copyrights, trademarks, know-how, mask work rights, moral rights and
      similar rights of any type under the laws of any governmental authority,
      domestic or foreign, including all applications and registrations relating
      to any of the foregoing.

1.9   Client Software shall mean the AvantGo Client software product (in object
      ---------------
      code format only) further described in Exhibit I.

1.10  End Users shall mean any third party which obtains Software hereunder
      ---------
      solely for such third party's personal or internal business use, and not
      for further distribution or sale.

1.11  Distributors shall mean Reseller's distributors and third party
      ------------
      intermediaries through which Reseller will have the right to distribute
      the Software.

1.12  End User License shall mean an end user license which contains the End
      ----------------
      User restrictions set forth in Exhibit III or the Licensor end user
      license agreement accompanying the Software, as applicable.

1.14  Updates shall mean new versions of the Software that contain bug fixes,
      -------
      error corrections and minor enhancements, but do not contain major
      enhancements or significant new functionality.

1.15  Reproduction Locations means the locations where Reseller will make copies
      ----------------------
      of the Software. Reseller will use the same degree of care it uses for its
      own software products in selecting Reproduction Locations for the
      Software.

      All references in this Agreement to the "purchase" or "sale" of software
                                               --------      ----
      shall mean the acquiring or granting, respectively, of a license to use
      such software, and to exercise any other rights pertaining to such
      software which are expressly set forth herein.

ARTICLE 2 - LICENSE GRANT
-------------------------

2.1   License Grant. Subject to the terms and conditions of this Agreement,
      -------------
      Licensor hereby grants to Reseller and Reseller hereby accepts a
      worldwide, nonexclusive, [******] license (the "License"), without rights
      to sublicense except on a [******] and as set forth in Articles 8.1(c) and
      8.1(d), to (a) use and

****** Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

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     reproduce the Software from the Software Masters (as defined in Article
     4.1) at the Reproduction Location(s), (b) incorporate or distribute the
     Software in or for use in connection with Reseller Products, and (c) offer
     to license or otherwise distribute on a [******] (directly to End Users or
     through Distributors) the Software in connection with Reseller Products;
     provided, however, that for each Reseller Product with a distinct model
     number, Reseller shall either install the Client Software on all Reseller's
     Products with that particular model number, or none of Reseller's Products
     with that particular model number.

2.2  No Other Rights Granted. Apart from the License rights enumerated in this
     -----------------------
     Agreement, the License does not include a grant to Reseller of any right to
     engage in any activity not expressly stated herein, nor any ownership
     right, title, or interest, nor any security interest or other interest, in
     any Intellectual Property Rights relating to the Software. Except as
     expressly permitted pursuant to this Agreement, Reseller agrees that
     Reseller and its employees and contractors shall not, directly or
     indirectly, (a) sell, lease, rent, time-share, assign, sublicense or
     otherwise transfer, (b) disclose, divulge or otherwise make available to
     any third party, (c) use except as authorized by this Agreement, (d)
     decompile, disassemble or otherwise analyze for reverse engineering
     purposes, or (e) modify or change the Software in any manner.

2.3  Branding. At any time the Reseller refers to the Software, Reseller shall
     --------
     use the logos or trademarks of Licensor in conjunction with all marketing
     and distribution of Software. Reseller shall not remove or modify the logos
     or trademarks of Licensor contained in the Software that appear when the
     Software is used. All uses of Licensor's logos and trademarks shall be
     subject to Licensor's then-current trademark usage guidelines, a copy of
     which is attached as Exhibit IV. Licensor shall notify Reseller in writing
     of all changes to such guidelines, and Reseller may continue to distribute
     Reseller Products that were manufactured or in the process of being
     manufactured prior to receipt of such guidelines.

2.4  Confidential Information. Information that is transmitted by one party to
     ------------------------
     the other hereunder and, if in written form, is marked "confidential" or
     with a similar legend by the disclosing party before being furnished to the
     other, or if disclosed orally or visually is identified as such prior to
     disclosure and summarized, in writing, by the disclosing party to the
     receiving party within thirty (30) days shall be deemed to be Confidential
     Information of the disclosing party for purposes of this Agreement. Except
     as expressly permitted pursuant to this Agreement, each of the parties
     expressly undertakes to retain in confidence and not to disclose to any
     third party any such Confidential Information received from the other party
     hereunder;, provided however that Reseller may disclose Licensor
     Confidential Information to 3Com Corporation, wholly-owned subsidiaries of
     3Com Corporation and the employees and contractors of Reseller, 3Com
     Corporation and such subsidiaries on a need-to-know basis provided such
     recipients have entered into agreements sufficient to enable Reseller to
     comply with this Section 2.4. Each of the parties further agrees to make no
     use of such Confidential Information except as contemplated by this
     Agreement. The obligations of confidentiality and restricted use set forth
     in this Section 2.4 shall survive the expiration or any earlier termination
     of this Agreement for a period of five (5) years.

     The Confidential Information of a party shall not include and the foregoing
     obligation shall not apply to data or information which is: (a) now or
     hereafter, through no unauthorized act or failure to act on the receiving
     party's part, in the public domain; (b) known to the receiving party
     without an obligation of confidentiality at the time the receiving party
     receives the same from the disclosing party, as evidenced by written
     records; (c) hereafter furnished to the receiving party by a third party
     lawfully and without restriction on disclosure; (d) furnished to others by
     the disclosing party without restriction on disclosure; or (e)
     independently developed by the receiving party without use of the
     disclosing party's Confidential Information. Nothing in this Agreement
     shall prevent the receiving party from disclosing Confidential Information
     to the extent the receiving party is legally compelled to do so by any
     governmental investigative or judicial agency pursuant to proceedings over
     which such agency has jurisdiction; provided, however, that prior to any
     such disclosure, the receiving party shall (i) assert the confidential
     nature of the Confidential Information to the agency; (ii) immediately
     notify the disclosing party in writing of the agency's order or request to
     disclose the disclosing party's Confidential Information; and (iii)
     cooperate fully with the disclosing party in protecting against any such
     disclosure and/or obtaining a protective order narrowing the scope of the
     compelled disclosure and protecting its confidentiality.

2.5  Marking Copies of the Software. Licensor represents that the Software is
     ------------------------------
     copyrighted and published by Licensor and that any markings or notices
     thereon are

****** Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

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     proper and authorized. With reference to copies it makes of the Software,
     Reseller agrees not to remove any proper and authorized Licensor copyright
     notice or other proprietary legend of Licensor appearing in the Software
     that is not inconsistent with this Agreement.

2.6  Ownership of Software. The Software delivered hereunder and any copies made
     ---------------------
     by Reseller, in whole or in part, and all of Licensor's intellectual
     property rights in such Software shall remain the sole property of
     Licensor.

ARTICLE 3 - TERM OF LICENSE
---------------------------

3.1  Term of License. The License shall be in effect for a period of [******]
     ---------------
     from and including the License Commencement Date, and (subject to the
     provisions of Article 3.2 concerning extensions) shall expire automatically
     at the end of the License Term.

3.2  Evergreen Extensions of License Term. The License Term shall be
     ------------------------------------
     automatically extended absent notice of non-extension as prodded in this
     Article for successive one-year intervals (each interval sometimes referred
     to herein as a "License Term Extension").

     3.2.1  Notice. Either party may decline to extend the License Term for any
            ------
            reason or no reason by providing the other party with no less than
            ninety (90) days prior written notice of non-extension.

ARTICLE 4 - DELIVERY
--------------------

4.1  Delivery of Software. Unless the Software has already been provided for
     --------------------
     evaluation, within sixty (60) days following the execution hereof by
     Reseller, and pursuant to the license granted in Article 2.1, the Licensor
     will deliver to Reseller one (1) set of golden masters ("Software Masters")
                                                              ----------------
     for the Software. The date on which delivery is deemed complete is referred
     to herein as the "Date of Delivery" and shall be the later of the actual
                       ----------------
     date the Software is shipped to Reseller by Licensor or the License
     Commencement Date.

4.2  Acceptance by Reseller. Absence written notice of non-acceptance by
     ----------------------
     Reseller, acceptance of the Software by Reseller shall be deemed to have
     occurred on the thirty first (31st) day after delivery. To be acceptable to
     Reseller, the Software (including Updates) shall pass the Palm Computing
     platform compatibility platinum testing requirements as previously agreed
     by the parties.

ARTICLE 5 - LICENSEE FEES AND ROYALTY PAYMENTS
----------------------------------------------

5.1  Fee Schedule. [******]
     ------------

ARTICLE 6 - REPORTS AND PAYMENTS
--------------------------------

6.1  Quarterly Statements. Within sixty (60) days after the end of each 3Com
     --------------------
     fiscal quarter (3Com's fiscal year ends on the last Friday of May),
     commencing with the quarter during which this Agreement first becomes
     effective, Reseller shall furnish to Licensor a written statement signed by
     an authorized representative of Reseller (the "Quarterly Statement")
                                                    -------------------
     identifying the number of copies of Software distributed by Reseller and
     Distributors during such quarter; provided however that Licensor
     acknowledges that all data for the applicable quarter may not be available
     to Reseller from Distributors and such data may be reported as part of the
     subsequent Quarterly Statement. [******]

ARTICLE 7 - DUTIES OF LICENSOR
------------------------------

7.1  Technical Support. The parties agree to work together to devise a seamless
     -----------------
     mechanism for the handoff of Software support requests from End Users that
     is mutually acceptable to the parties. Licensor shall have responsibility
     for providing support to End Users in accordance with the applicable
     Licensor End User License Agreement between Licensor and the End User.

7.2  Professional Services. Licensor shall use commercially reasonable efforts
     ---------------------
     to provide consulting and training services for Licensor's then-current
     standard consulting and training fees.

ARTICLE 8 - UNDERTAKINGS OF RESELLER
------------------------------------

8.1  Reseller agrees to

     (a) [******]
****** Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

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          [******]

     (b)  provide one primary and one secondary engineering point of contact
          which shall be the exclusive point of contact with Licensor with
          respect to all support Licensor provides to Reseller hereunder.

     (c)  if Reseller distributes the Software through Distributors, use
          reasonable efforts (including entering into written agreements with
          Distributors with whom Reseller has a direct relationship) to ensure
          that the Distributors (i) acknowledge, adhere to, and do not perform
          any act inconsistent with the terms and conditions of this Agreement,
          (ii) do not reverse engineer, modify, or reproduce the Software, and
          (iii) cease distribution of the Software in accordance with this
          Agreement upon termination of this Agreement or of Reseller's rights
          hereunder.

     (d)  if the Software is embedded into a hardware device, include a copy of
          an End User License, with minimum terms and conditions substantially
          as specified in Exhibit m attached hereto, with each copy of the
          Software distributed to an End User hereunder and if the Software is
          not embedded into a hardware device, Reseller agrees not to remove the
          Licensor end user license agreement that is embedded in the Software
          (each, an "End User License"). Licensor agrees that the End User
          License embedded in the Software shall be substantially similar to
          Licensor's standard end user license agreement for Licensor's client
          software.

     (e)  pay all import and export licenses and permits, customs charges and
          duty fees, if any, and shall take all other actions, if any, required
          to accomplish the export and import of the Software purchased or
          reproduced by Reseller. Upon request, Licensor will provide 3Com in
          writing with the appropriate export classification number and general
          license provisions pursuant to which the Software is exported from
          time to time.

     (f)  participate in joint marketing activities with Licensor as mutually
          agreed by the parties. Issue a mutually agreeable press release
          announcing Reseller's appointment as a reseller of the Software within
          thirty (30) days following the execution of this Agreement.

     (g)  if Licensor provides an Update to the Software, to use, reproduce and
          distribute such updated Software instead of any prior version of the
          Software within a reasonable timeframe, which, in no case, shall be
          later than the next release of each applicable Reseller product
          released ninety (90) days or more after delivery by Licensor to
          Reseller of such Update and provided that Reseller may continue to
          reproduce and distribute old Software that was manufactured or in the
          process of being manufactured prior to receipt of such updated
          Software.

     (h)  if Reseller distributes the Software from a Reseller web site, to
          include a link (incorporating the AvantGo logo) to Licensor's web site
          from the web page from which the software is distributed.

     (i)  cooperate with Licensor as mutually agreed in promoting Licensor's
          technology to Palm OS OEM licensees of Reseller, including (if
          applicable) including the Software in Reseller's standard materials
          provided as part of such licenses.

     (j)  promote to purchasers of the [******] products with which the Software
          is bundled the availability of the Software on the Desktop CD (or
          equivalent), such promotion to be within the packaging for such
          [******] products.

ARTICLE 9 - RIGHTS TO TERMINATE AGREEMENT
-----------------------------------------

9.1  Termination In Case of Breach. In case of a material breach of this
     -----------------------------
     Agreement by either party, the non-breaching party shall have the right,
     without limitation of any other right it may have on account of such
     failure, to terminate this Agreement by giving the breaching party at least
     thirty (30) days written notice of its intention, specifying the cause for
     default; provided, however, that if, in the non-breaching party's
     reasonable discretion, the breaching party remedies such failure during
     such thirty (30) day period, then this Agreement shall not be terminated on
     the date specified in such notice.

9.2  Obligations Upon Termination. Articles 1, 2.4, 2.6, 9.2, 12.3, 12.4, 13,
     ----------------------------
     14, 15, and all payment obligations incurred prior to termination, shall
     survive the termination of this Agreement. Upon termination the

****** Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

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      license granted herein shall be automatically canceled. provided, however,
      (a) except for termination due to Reseller's material uncured breach,
      Reseller may complete the manufacturing of work-in-progress containing the
      Software and distribute such Software and copies of Software existing
      prior to such termination, (b) Distributors may continue to use, reproduce
      and distribute the Software in accordance with the terms of the agreement
      between Reseller and Distributor and (c) customers of Reseller who have
      already received Reseller Product(s) which incorporate Software shall be
      permitted to continue to use the Software perpetually, subject to the
      terms and conditions of the End User License.

ARTICLE 10 - UPDATES
--------------------

10.1  Updates. During the term of this Agreement, Licensor shall make periodic
      -------
      software updates available to Reseller in accordance with this Agreement.

[******]

ARTICLE 12 - LIMITED WARRANTIES
-------------------------------

12.1  Limited Warranty. Licensor warrants to Reseller that the Software will
      ----------------
      operate substantially in accordance with the description in Exhibit I for
      a period of ninety (90) days after the Date of Delivery. Licensor further
      warrants that the Software (a) will record, store, process and display and
      receive calendar dates falling on or after January 1, 2000, in the same
      manner, and with the same functionality as such Software records, stores,
      processes, displays and receives calendar dates falling on or before
      December 31, 1999; (b) shall include without limitation date data century
      recognition, calculations that accommodate same century and multicentury
      formulas and date values, and date data interface values that reflect the
      century and (c) be capable of correctly processing, providing and/or
      receiving data and date related data within and between the twentieth and
      twenty-first centuries. No portion of the Software shall knowingly
      contain, at the time of delivery, any "back door", "time bomb", "Trojan
      horse", "worm", "drop dead device" or other computer software routines
      designed to (i) permit unauthorized access to, or use of, the Software or
      computer systems on which the Software is loaded, (ii) disable, damage or
      erase Software or data or (iii) perform any other similar actions that
      would preclude full use of the Software by Reseller or its sublicensees.

12.2  Obligation of Licensor for Defective Software. The sole obligation of
      ---------------------------------------------
      Licensor for defective Software shall be: (a) for Licensor to correct or
      replace the Software; or (b) if Licensor fails to correct or replace the
      Software within a commercially reasonable time period after Licensor's
      receipt of Reseller's written report of the defect (not to exceed sixty
      (60) days after such receipt), then Reseller, in its discretion, may
      terminate this Agreement without further obligation provided that such
      termination shall be Reseller's sole remedy for Licensor's failure to cure
      such defective Software.

12.3  Warranty Exclusions. The above warranty shall not apply to any copy of
      -------------------
      Software (i) which has been modified or altered, except by Licensor, (ii)
      which has been used other than in accordance with the most current
      operating instructions supplied by Licensor, or (iii) which has been
      subjected to unusual physical or electrical stress, misuse, abuse,
      negligence or accident. EXCEPT FOR EXPRESS WARRANTIES STATED ABOVE,
      LICENSOR DISCLAIMS ALL WARRANTIES ON SOFTWARE FURNISHED HEREUNDER
      INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
      PARTICULAR USE.

12.4  Intellectual Property. Licensor represents to Reseller that, as of the
      ---------------------
      License Commencement Date, (a) Licensor is not aware of any actual or
      threatened claims or litigation that the Software infringes any
      Intellectual Property Rights of any third party and (b) Licensor does not
      believe that the Software infringes any Intellectual Property Rights of
      any third party.

ARTICLE 13 LICENSOR'S - INFRINGEMENT DEFENSE OBLIGATION
-------------------------------------------------------

13.1  Licensor's Obligation. Licensor shall indemnify, defend and hold Reseller
      ---------------------
      harmless from and against any claim, suit or proceeding brought against
      Reseller in so far as it is based on a claim that the Software delivered
      hereunder constitutes an infringement of any United States, Canadian.
      European Commission or Japanese Intellectual Property Rights (an
      "Infringement Claim"), so long as Licensor is notified promptly in writing
       ------------------
      by Reseller as to any such action and is given full authority, information
      and reasonable assistance (at Licensor's expense) for the defense and
      settlement thereof (each a

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with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

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      "Qualifying Claim"). In addition to Licensor's obligation to defend,
      Licensor shall pay all damages and costs (including reasonable attorney's
      fees). Licensor shall not be responsible for any compromise made without
      its consent. Should the use or distribution of the Software by Reseller or
      its customers be enjoined, or in the event Licensor wishes to minimize its
      potential liability hereunder, Licensor may at Licensor's sole option and
      expense (i) obtain a license for Reseller, to continue the use and
      distribution of the infringing Software licensed hereunder, or (ii)
      replace or modify the infringing Software so as to be substantially
      functionally equivalent to the infringing Software but non-infringing;
      provided, however that if Licensor is unable to achieve (i) or (ii) above
      after exercising reasonable efforts for a period not less than one hundred
      eighty (180) days and Reseller has elected to cease distributing the
      Software, Licensor may terminate this Agreement. If it reasonably appears
      that the liability of Licensor under this paragraph may exceed or has
      exceeded the cumulative liability limit specified in Section 14.1, then
      Licensor shall relinquish the sole control of the defense and/or
      settlement with respect to the actual or alleged infringement covered by
      this paragraph and Reseller shall have the right to obtain sole control,
      except that Licensor may retain some partial control as reasonably agreed
      by the parties. Subject always to the cumulative liability limit specified
      in Section 14.1, Licensor shall continue to have the obligation to
      promptly pay the costs and expenses of the defense of an indemnified claim
      hereunder, including but not limited to reasonable attorneys' fees and all
      other related costs and expenses reasonably incurred by Reseller
      in assuming and maintaining the defense. In such event, Reseller shall not
      have the right to effect a settlement on the part of Licensor, without the
      prior written consent of Licensor. The parties hereby agree that the
      specified cumulative limits on Licensor's liability under Section 14.1
      shall not apply to a failure of Licensor to relinquish control as
      described in this paragraph.

13.2  Infringement Claims. Notwithstanding anything else herein, Reseller may
      -------------------
      terminate this Agreement without further obligation in the event that a
      Qualifying Claim has not been settled, adjudicated or otherwise resolved
      to Reseller's sole satisfaction within one hundred eighty (180) days of
      Licensor's receipt of written notice of such claim from Reseller.

13.3  Liability Exclusion. Licensor shall have no liability to Reseller under
      -------------------
      this paragraph to the extent any Infringement Claim is based upon the (i)
      use of Software delivered hereunder in connection or in combination with
      equipment, devices or software not delivered by Licensor, or (ii) use of
      Software delivered hereunder in a manner not consistent with the
      description of the Software set forth in Exhibit I, or (iii) modification
      by Reseller of Software delivered; provided that such Infringement Claim
      would not have arisen but for such combination, use or modification.
      Licensor shall further have no liability to Reseller for any Infringement
      Claim based on Reseller's use or transfer of the Software delivered
      hereunder after Licensor's notice that Reseller shall cease use or
      transfer of such Software due to such claim. EXCEPT AS STATED ABOVE,
      LICENSOR DISCLAIMS ALL WARRANTIES AND INDEMNITIES, EXPRESS, IMPLIED, OR
      STATUTORY, FOR INFRINGEMENT OF THIRD PARTY RIGHTS.

ARTICLE 14 - LIMITATION OF LIABILITY
------------------------------------

14.1  THE CUMULATIVE LIABILITY, IF ANY, OF LICENSOR FOR DIRECT DAMAGES WHETHER
      ARISING FROM LICENSOR'S BREACH OF THE AGREEMENT, BREACH OF WARRANTY,
      INFRINGEMENT, NEGLIGENCE, STRICT LIABILITY OF OTHER TORT, OR OTHERWISE
      WITH RESPECT TO THE SOFTWARE OR ANY SERVICES, IS LIMITED TO AN AMOUNT NOT
      TO EXCEED $[******]. THE FOREGOING SENTENCE IS NOT INTENDED TO LIMIT
      EITHER PARTY'S OBLIGATIONS PURSUANT TO ARTICLE [******] WHICH SHALL BE
      LIMITED TO $[******] CUMULATIVE LIABILITY FOR EACH PARTY HERETO. IN NO
      EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ITS SUPPLIERS OR
      CUSTOMERS FOR ANY INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES, INCLUDING
      WITHOUT LIMITATION, LOST REVENUES OR PROFITS.

ARTICLE 15 - MISCELLANEOUS
--------------------------

15.1  Entire Agreement. This Agreement constitutes the entire Agreement and
      ----------------
      understanding between the parties as to the subject matter hereof, and
      supersedes and replaces all prior or contemporaneous Agreements, written
      or oral, as to such subject matter. This Agreement may be changed only in
      writing stating that it is an amendment or modification to this Agreement,
      and signed by an authorized representative of each of the parties hereto.

****** Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

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15.2   Relationship of Parties. This Agreement does not constitute a
       -----------------------
       partnership, joint venture or agency between the patties thereto, nor
       shall either of the parties hold itself out as such contrary to the terms
       hereof by advertising or otherwise, nor shall either of the parties
       become bound or become liable because of any representation, action or
       omission of the other.

15.3   Operating Systems. Reseller hereby acknowledges its understanding that
       -----------------
       the Software is intended to be used with computer equipment manufactured
       by other parties and manufacturer provided operating systems, and that
       such computer equipment and operating systems software are not provided
       under this agreement. Reseller is solely responsible for acquiring and
       maintaining such equipment and software, the utilization rights of such
       software, and for the overall effectiveness and efficiency of the
       operating environment in which Software is to function. Licensor does not
       make any representation, warranty, or understanding concerning the
       suitability, availability or performance of any computer or operating
       system software for use with the Software provided hereunder.

15.4   Severability. Should any part or provision of this Agreement be held
       ------------
       unenforceable or in conflict with the law of any jurisdiction, the
       validity of the remaining parts or provisions shall not be affected by
       such holding, provided the intent of the parties can be given effect
       except for immaterial matters.

15.5   Waiver. Any waiver of a default or condition held by either party shall
       ------
       not be deemed a continuing waiver of such default or condition or a
       waiver of any other default or condition.

15.6   Assignment. Neither party may assign any of its rights, obligations or
       ----------
       privileges Coy operation of law or otherwise) hereunder without the prior
       written consent of the other party, which shall not be unreasonably
       withheld; provided, that either party shall have the right to assign its
       rights, obligations and privileges hereunder to a merger partner,
       successor in business or acquiror of all or substantially all of that
       party's business or assets without obtaining any consent to such
       assignment from the other party; and further provided that Reseller may
       assign this Agreement to 3Com Corporation or any wholly-owned subsidiary
       of 3Com Corporation without obtaining any consent from Licensor. In the
       event that Reseller determines, in its discretion, that any assignment by
       Licensor pursuant to this paragraph is to a competitor of Reseller,
       Reseller may terminate this Agreement upon thirty (30) days' written
       notice to Licensor; provided however that such notice shall be delivered
       to Licensor within forty-five (45) days following the later of (i) the
       effective date of such assignment or (ii) notice to Reseller of such
       assignment.

15.7   Captions. The heading of articles, sections and other subdivisions hereof
       --------
       are inserted only for the purpose of convenient reference and it is
       recognized that they may not adequately or accurately describe the
       contents of the paragraph that they head Such headings shall not be
       deemed to govern, limit, modify or in any other manner affect the scope,
       meaning or intent of the provisions of this agreement, or any part or
       portion thereof, nor shall they otherwise be given any legal effect.

15.8   Applicable Law. This Agreement shall be governed by, performed under and
       --------------
       construed in accordance with the laws of the State of California, without
       giving effect to the conflict of law principles thereof.

15.9   Jurisdiction. The parties hereby consent to the exclusive jurisdiction
       ------------
       and venue of the state and federal courts of Santa Clara County,
       California.

15.10  Notices. All notices permitted or required under this Agreement shall be
       -------
       in writing and shall be delivered in person or mailed by first class,
       registered or certified mail, postage prepaid, to the address of the
       party specified in this Agreement or such other address as either party
       may specify in writing, with copies of notices to Reseller also sent to
       the attention of the 3Com Corporation General Counsel at the same
       Reseller Address. Such notice shall be deemed to have been given upon
       receipt.

15.11  U.S. Government Restricted Rights. If this Software is being licensed by
       ---------------------------------
       the U.S. Government, the Software and related documentation is commercial
       computer software and documentation developed exclusively at private
       expense, and (a) if acquired by or on behalf of a civilian agency, shall
       be subject to the terms of this computer software license as specified in
       48 C.F.R 12.212 of the Federal Acquisition Regulations and its
       successors; and (b) if acquired by or on behalf of units of the
       Department of Defense ("DOD") shall be subject to the terms of this
       commercial computer software license as specified in 48 C.F.R 227.7202-2,
       DOD FAR Supplement and its successors.

15.12  Delays. Licensor is not responsible for failure to fulfill its
       ------
       obligations under this Agreement due to causes beyond its reasonable
       control.

                                    Page 7
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
as of the date below.

          AVANTGO, INC.          RESELLER:

BY:       /s/ Felix Lin          BY:     /s/ Mark Bercow
          -------------                  ---------------------------------------

NAME:     Felix Lin              NAME:   Mark Bercow
          -------------                  ---------------------------------------

TITLE     CEO                    TITLE:  Vice President, Strategic Alliances and
          -------------                  ---------------------------------------
                                          Platform Development
                                         -----------------------

DATE:     6/2/99                 DATE:   Jun 1, 1999
          -------------                  ---------------------------------------

                                    Page 8<PAGE>

                                                                   EXHIBIT 10.44

                     MARKETING AND DISTRIBUTION AGREEMENT

     THIS AGREEMENT, entered into this ____ day of May, 1999 (the "Effective
Date") by and between Microsoft Corporation, a corporation duly organized and
existing under the laws of the State of Washington, having a place of business
at 1 Microsoft Way, Redmond, Washington 98052 (hereinafter referred to as
"Microsoft") and AvantGo, Inc. (hereinafter referred to as "AvantGo"), having
----------                                                  -------
its principal place of business at 1700 South Amphlett Boulevard, Suite 300, San
Mateo CA 94402.

ARTICLE 1 - DEFINITIONS
-----------------------

1.1  AvantGo shall mean AvantGo, Inc.
     -------

1.2  AvantGo Windows CE Client shall mean the AvantGo software application (in
     ------- ------- -- ------
     object code format only) more fully described on Exhibit I, attached hereto
     and related documentation provided by AvantGo hereunder.

1.3  AvantGo Client Modules shall mean the AvantGo software modules (in object
     ------- ------
     code format only) and related documentation more fully described on Exhibit
     I.

1.4  End User shall mean an end user of a Windows CE Device.
     ---

1.5  Errors shall mean defects in the Software, which prevent it from performing
     ------
     in accordance with the specifications described on Exhibit I.

1.6  Intellectual Property Rights shall mean any trade secrets, patents,
     ----------------------------
     copyrights, trademarks, know-how, mask work rights, moral rights and
     similar rights of any type under the laws of any governmental authority,
     domestic or foreign, including all applications and registrations relating
     to any of the foregoing.

1.7  AvantGo New Versions shall mean all updates, upgrades and successor
     --------------------
     versions of the AvantGo Windows CE Client and the AvantGo Client Modules
     released by AvantGo during the term of this Agreement, provided, however,
     that AvantGo New Versions shall not include enhancements to the Software or
     optional offerings made in vertical markets to enterprise customers.

1.8  OEM shall mean an original equipment manufacturer of a Windows CE Device.
     ---

1.9  Software shall collectively mean the AvantGo Windows CE Client and the
     --------
     AvantGo Client Modules. Software shall also include any AvantGo New
     Versions.

1.10  Windows CE shall mean the Microsoft products described in Exhibit I,
      ----------
     including all upgrades, updates, and successor versions thereto.

1.11  Windows CE Device shall mean a computing device incorporating Windows CE.
      -----------------

1.12  Minimum Functionality shall have the meaning provided in Section 4.8.
      ---------------------

ARTICLE 2 - LICENSE GRANT
-------------------------

2.1  License Grant to AvantGo Client Modules. AvantGo hereby grants to Microsoft
     ----------------------------------------
     and Microsoft hereby accepts a [******] nonexclusive, worldwide, [******]
     license (i) to make, use, and reproduce the AvantGo Client Modules in
     object code form in connection with Windows CE; (ii) to reproduce,
     distribute and have reproduced and/or distributed, license (directly or
     indirectly), rent or lease copies of, the AvantGo Client Modules in object
     code form, provided such AvantGo Client Modules provide Minimum
     Functionality and solely as such AvantGo Client Modules are included with,
     and shall have their functionality accessed through, Windows CE; and (iii)
     to sublicense the rights in the foregoing parts (i) and (ii) to third
     parties subject to the restrictions set forth in Section 2.2 herein,
     [******]. The foregoing license grants include a license under any current
     and future patents owned or licensable by AvantGo to the extent necessary
     to exercise any license right granted herein and to combine the AvantGo
     Client Modules with any hardware and software in conjunction with Windows
     CE Devices.

****** Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

                                     Page 1
<PAGE>

2.2  License Restrictions. Microsoft shall license, or cause to be licensed, the
     ---------------------
     Software under terms that are as protective as Microsoft licenses its own
     software.

2.3  License to AvantGo Windows CE Client. AvantGo further grants to Microsoft
     -------------------------------------
     and Microsoft hereby accepts a nonexclusive, worldwide, [******] license
     (i) to make, use, and reproduce the AvantGo Windows CE Client in object
     code form for all existing and future versions of Windows CE, other than
     versions of Windows CE that contain AvantGo Windows CE Client Modules and
     such AvantGo Windows CE Client Modules support the AvantGo service; and
     (ii) to reproduce, distribute and have reproduced and/or distributed copies
     of the AvantGo Windows CE Client in object code form, pursuant to an end
     user license agreement of AvantGo, for all existing and future versions of
     Windows CE other than versions of Windows CE that contain AvantGo Windows
     CE Client Modules and only if such AvantGo Windows CE Client Modules
     support the AvantGo service. The foregoing license grants include a license
     under any current and future patents owned or licensable by AvantGo to the
     extent necessary to exercise any license right granted herein; and to
     combine the AvantGo Windows CE Client with any hardware and software in
     conjunction with Windows CE Devices.

2.4  No Other Rights Granted. Except as expressly licensed under this Agreement,
     ------------------------
     AvantGo and its licensors shall retain all right, title and interest in and
     to the Software and all Intellectual Property Rights therein. Microsoft
     shall not, directly or indirectly, (a) sell, assign, or otherwise transfer,
     (b) use except as authorized by this Agreement, (c) decompile, disassemble
     or otherwise analyze for reverse engineering purposes, or (d) modify or
     change the Software in any manner.

2.5  No Obligation. In no event shall the license grants in Sections 2.1 and 2.3
     --------------
     of this Agreement be construed as an obligation on Microsoft's part to
     distribute the Software. Except as provided in Article 7, nothing in this
     Agreement will be construed as restricting Microsoft's ability to acquire,
     license, develop, manufacture or distribute for itself, or have others
     acquire, license, develop, manufacture or distribute for Microsoft, similar
     technology performing the same or similar functions as the Software, or to
     market and distribute such similar technology in addition to, or in lieu
     of, the Software. Except as provided in Article 7, nothing in this
     Agreement will be construed as restricting AvantGo's ability to license,
     develop, manufacture or distribute, directly or indirectly, similar
     technology performing the same or similar functions as Windows CE or
     Windows CE Devices, or to license to others the rights to market and
     distribute the Software.

2.6  Marking Copies of the Software. AvantGo represents that the Software is
     -------------------------------
     copyrighted and published by AvantGo and that any markings or notices
     thereon are proper and authorized. Provided such markings and notices are
     not inconsistent with this Agreement, Microsoft agrees to reproduce such
     copyright, trademark or patent notices to the extent that they appear on
     the Software as delivered to Microsoft.

2.7  Import and Export Fees. Microsoft shall pay all import and export licenses
     -----------------------
     and permits, customs charges and duty fees, if any, and shall take all
     other actions, if any, required to accomplish the export and import of the
     Software distributed by or on behalf of Microsoft.

ARTICLE 3 -DELIVERY, SUPPORT AND MAINTENANCE
--------------------------------------------

3.1  Delivery of AvantGo Client. AvantGo shall deliver the AvantGo Windows CE
     ---------------------------
     Client to Microsoft within sixty (60) days of the Effective Date. Microsoft
     shall evaluate the AvantGo Windows CE Client and shall submit a written
     acceptance or rejection to AvantGo within thirty (30) business days after
     Microsoft's receipt of the AvantGo Windows CE Client. If Microsoft
     identifies Errors in the AvantGo Windows CE Client prior to acceptance,
     then AvantGo shall use commercially reasonable efforts to correct such
     Errors within thirty (30) days following receipt of notice thereof.
     Acceptance shall be in writing, and Microsoft shall not unreasonably
     withhold its acceptance.

3.2  Delivery of AvantGo Client Modules. In the event AvantGo delivers AvantGo
     -----------------------------------
     Client Modules to Microsoft, Microsoft shall evaluate the AvantGo Client
     Modules and shall submit a written acceptance or rejection to AvantGo
     within thirty (30) business days after Microsoft's receipt of the AvantGo
     Client Modules. If Microsoft identifies

****** Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

                                     Page 2
<PAGE>

     Errors in the AvantGo Client Modules prior to acceptance, then AvantGo
     shall use commercially reasonable efforts to correct such Errors within
     thirty (30) days following receipt of notice thereof. Acceptance shall be
     in writing, and Microsoft shall not unreasonably withhold its acceptance.

3.3  Support and Maintenance. Microsoft shall designate one person to act as the
     ------------------------
     exclusive engineering point of contact with AvantGo with respect to all
     support AvantGo provides to Microsoft hereunder. Microsoft may replace such
     engineering contact with another contact with written notice to AvantGo.
     AvantGo will (i) provide reasonable telephone consultation and advice to
     such designated contact regarding technical support of the Software between
     the hours of 8:00 a.m. and 5:00 p.m., Pacific Standard Time, Monday through
     Friday, excluding Federal holidays; (ii) for a period of twelve (12) months
     following each new release of the Software, support such new release and
     the prior release of the Software only; provided that in no event will
     AvantGo support versions of the Software other than the two (2) most
     current versions of the Software; and (iii) make all AvantGo New Versions
     available to Microsoft upon release by AvantGo. AvantGo shall have no
     obligation under this Agreement to provide support to End Users or OEMs.

ARTICLE 4 - UNDERTAKINGS OF THE PARTIES
---------------------------------------

4.1  Promotion to OEMs. Microsoft and AvantGo agree to use reasonable efforts to
     ------------------
     promote the AvantGo Windows CE Client to OEMs and to encourage OEMs to
     install the AvantGo Windows CE Client on the OEM's Windows CE Device(s).
     AvantGo agrees to attend joint meetings with OEMs as reasonably requested
     by Microsoft to encourage such OEMs to include the AvantGo Windows CE
     Client pre-installed on the OEM's Windows CE Device(s) in the event
     Microsoft requests AvantGo to attend such meetings. Microsoft will consider
     in good faith AvantGo's reasonable requests for joint meetings with OEMs
     specified by AvantGo and, in Microsoft's sole judgment, endeavor to set up
     such joint meetings.

4.2  Promotion to Content Providers. AvantGo agrees to use reasonable efforts to
     -------------------------------
     promote support for Windows CE and Windows CE Devices with content
     providers. AvantGo will encourage content providers to either (i) not
     indicate a specific operating system; or (ii) reflect, in neutral terms,
     that the content operates on a Windows CE Device and such other devices as
     may be applicable.

4.3  Windows CE Client Support. AvantGo and Microsoft agree to meet at least
     --------------------------
     sixty (60) days prior to the release of a new version (other than a bug fix
     or similar patch made to correct a particular customer problem) of the
     AvantGo software to discuss and agree upon three specific Windows CE
     devices that AvantGo will support for such new version. In addition to the
     three Windows CE devices the parties will mutually agree upon, Microsoft
     shall have the right to indicate one Windows CE device, in its sole
     discretion, that AvantGo will support (collectively, the "Supported
     Devices"). AvantGo will use reasonable best efforts to distribute and
     commercially release new versions (other than a bug fix or similar patch
     made to correct a particular customer problem) of the AvantGo Windows CE
     Client software for the Supported Devices simultaneously, or prior to, the
     distribution and commercial release of client software that supports other
     operating system products that run devices which compete with the
     identified Supported Devices subject to and taking into consideration the
     following: (i) reasonable assistance and prompt technical support from
     Microsoft with regard to technical issues that AvantGo could not reasonably
     resolve without Microsoft's assistance (including, without limitation,
     access to engineering assistance and provision of bug fixes or patches);
     and (ii) reasonable assistance and prompt technical support from the
     applicable OEM with regard to technical issues that AvantGo could not
     reasonably resolve without such OEM's assistance (including, without
     limitation, access to engineering assistance and provision of bug fixes or
     patches). Nothing herein shall limit AvantGo's ability to provide customer
     specific patches immediately upon their availability.

4.4  User Registration System. During the term of this Agreement, AvantGo agrees
     -------------------------
     to host and maintain a web-based user registration facility ("User
     Registration System") to record and deliver user registration information
     to Microsoft. The user registration information shall consist of
     information regarding End Users who wish to register that they are owners
     of a Windows CE Device. AvantGo may, as part of the registration process,
     allow such

                                     Page 3
<PAGE>

     End User to simultaneously register for or subscribe to services offered by
     AvantGo. AvantGo shall prepare, a quarterly report (the "Report") for
     Microsoft that includes the following information: (i) End User data for
     all End User registrations made during the applicable month in the form
     identical to AvantGo's standard registration application subject to
     AvantGo's published privacy policy, provided such End User has authorized
     the use of such information; (ii) a demographic and usage pattern summary
     profiling End Users to the extent that AvantGo creates such summaries; and
     (iii) the total and monthly number of number of Windows CE registrations
     completed through the User Registration System. In consideration of
     AvantGo's hosting and collection of such data and provision of the monthly
     Report, Microsoft shall pay [******] for each Acknowledged New
     Registration. An "Acknowledged New Registration" shall not include any End
     User of Windows CE already known to Microsoft and shall be identified by
     Microsoft by comparing the registrations listed in the Report with
     registrations of Windows CE End Users collected independently by, or on
     behalf of, Microsoft. Within thirty (30) days of receipt of each Report,
     Microsoft shall report to AvantGo the number of Acknowledged New
     Registrations. AvantGo shall invoice Microsoft quarterly for the number of
     Acknowledged New Registrations. Microsoft shall pay AvantGo within thirty
     (30) days from receipt of such invoice. Demographic and usage pattern
     summary information regarding the Windows CE End Users shall not be shared
     with developers of operating system platforms except as aggregated with
     data for other operating systems platforms.

4.5  Web Sites. Microsoft shall create a hypertext link to AvantGo.com
     ----------
     incorporating an AvantGo logo identified and described on Exhibit II, on
     the portion of the Microsoft web site dedicated to Windows CE. AvantGo
     shall provide equal presence for Windows CE and other operating system
     products on AvantGo.com. Microsoft's use of the AvantGo logo shall comply
     with the trademark guidelines attached on Exhibit II.

4.6  PreRelease Programs. Each party shall allow the other party to participate
     --------------------
     in relevant prerelease programs for prerelease software.

4.7  Press Releases. Microsoft and AvantGo agree to announce the strategic
     ---------------
     relationship contained in this Agreement in a mutually agreeable press
     release within ninety (90) days of the signing of this Agreement. The
     parties agree that neither party shall make any announcement concerning the
     execution or content of this Agreement without the other parties' express
     written consent. However, either of the parties may at any time make
     announcements which are required by applicable law, regulatory bodies, or
     stock exchange or stock association rules, so long as the party so required
     to make the announcement, promptly upon learning of such requirement,
     notifies the other party of such requirement and discusses with the other
     party in good faith the exact wording of any such announcement.

4.8  Future Enabling of AvantGo Windows CE Client Functionality and Windows CE.
     --------------------------------------------------------------------------
     Microsoft intends to enable the inclusion of AvantGo Windows CE Client
     functionality and allow or cause such functionality to be accessed by the
     Microsoft software technology known as Pocket Internet Explorer ("PIE").
     The parties agree that AvantGo and Microsoft shall cooperate in
     facilitating such inclusion. The parties will work together to identify
     necessary AvantGo Client Modules, reasonable delivery dates and the
     required minimal functionality for the AvantGo Client Modules as included
     with, and which functionality is accessed through, Windows CE ("Minimum
     Functionality"). AvantGo shall provide Microsoft with a list of
     functionality that AvantGo Client Modules should contain to enable PIE to
     access AvantGo.com service and Microsoft shall provide AvantGo with
     information regarding PIE interfaces that Microsoft deems necessary for
     AvantGo to complete the development of any necessary AvantGo Client
     Modules. The parties shall agree in writing to such Minimum Functionality
     prior to any delivery of AvantGo Client Modules to Microsoft. The AvantGo
     Client Modules shall be deemed to meet the Minimum Functionality
     restriction in Section 2.1, if the reason the AvantGo Client Modules do not
     meet Minimum Functionality is not directly attributable to Microsoft,
     including, but not limited to, changes made by AvantGo which render the
     AvantGo Client Modules incompatible with the AvantGo service. Any
     confidential information and all Intellectual Property Rights existing as
     of the Effective Date shall remain the property of the

****** Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

                                     Page 4
<PAGE>

     party owning such information or Intellectual Property Rights. Any
     Intellectual Property Rights developed on or after the Effective Date by
     either party independently pursuant to this Agreement shall be owned by the
     party originating such technology subject to Article 7 hereof and any
     ownership in underlying works or technology.

4.9  Other Areas of Potential Marketing Cooperation. The companies agree to
     -----------------------------------------------
     conduct quarterly marketing meetings on mutually agreeable dates,
     alternating locations between Redmond, Washington and San Mateo,
     California. The parties agree to use reasonable efforts to develop a
     marketing plan covering methods by which the parties will jointly promote
     Windows CE products and AvantGo solutions. Joint promotion may include one
     or more of the activities listed on Exhibit III.

4.10 Other Areas of Potential Cooperation. The parties agree that for a period
     -------------------------------------
     of ninety (90) days following execution of this Agreement, Microsoft and
     AvantGo will evaluate opportunities and, if the parties reach mutual
     agreement regarding an appropriate relationship, negotiate in good faith
     the terms and conditions of such a relationship. Examples of such
     opportunities include the following:

     [******]

     Except for the obligation to evaluate the above areas of cooperation,
     nothing in this Section 4.10 shall be construed, either expressly, by
     implication, estoppel or otherwise as giving rise to any legal obligation
     of either party.

ARTICLE 5 - TERM AND TERMINATION
--------------------------------

5.1  Term. This Agreement will have a term of [******] years and shall
     -----
     automatically renew for additional one year periods unless either party
     notifies the other of its intent not to renew at least thirty (30) days
     prior to the Agreement's scheduled expiration.

5.2  Termination By Either Party For Cause. Either party may suspend performance
     --------------------------------------
     and/or terminate this Agreement immediately upon written notice at any time
     if:

     5.2.1  The other party is in material breach of any material warranty,
            term, condition or covenant of this Agreement, other than those
            contained in Article 7, and fails to cure that breach within thirty
            (30) days after written notice thereof; or

     5.2.2  The other party is in material breach of Article 7.

5.3  Obligations Upon Termination. Articles 1, 2.1 (only to the extent the
     -----------------------------
     grant under Article 2.1 is irrevocable pursuant to Article 6 hereof), 2.2,
     2.6,

****** Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

                                     Page 5
<PAGE>

     2.7, 7, 8, 9 and 10 and all payment obligations incurred prior to
     termination, shall survive the expiration or termination, of this
     Agreement.

5.4  Effect of Expiration or Termination on Microsoft's License to AvantGo
     ---------------------------------------------------------------------
     Windows CE Client. In the event of expiration or termination of this
     ------------------
     Agreement: (i) any licenses granted by Microsoft or its sublicensees to the
     AvantGo Windows CE Client and AvantGo Client Modules shall continue in full
     force and effect; and (ii) Microsoft shall cease making or reproducing the
     AvantGo Windows CE Client (and, in the event that Article 2.1 is terminated
     hereunder, the AvantGo Client Modules), but shall have the right to
     continue to license, sell or otherwise dispose of copies of the AvantGo
     Windows CE Client and, as applicable, AvantGo Client Modules, which are in
     Microsoft's or its sublicensees' inventory on the date of such termination
     or expiration.

ARTICLE 6 - EFFECT OF INCLUSION OF THE AVANTGO CLIENT MODULES WITH WINDOWS CE
-----------------------------------------------------------------------------
AND/OR DISTRIBUTION OF THE WINDOWS CE CLIENT
--------------------------------------------

6.1  Notwithstanding anything else herein, at such time as Microsoft includes
     the AvantGo Client Modules as licensed hereunder in at least one product
     release of either Windows CE Services or a Windows CE OEM Adaptation Kit,
     the license granted under Section 2.1 above shall be deemed to be
     irrevocable.

6.2  Notwithstanding anything else herein, at such time as the earlier of the
     following (i) Microsoft includes the AvantGo Client Modules as licensed
     hereunder in at least one product release of Windows CE Services or Windows
     CE OEM Adaptation Kit; (ii) Microsoft distributes (directly or indirectly)
     the AvantGo Windows CE Client with a promotion in conjunction with a
     Fortune 1000 company, or such other promotion mutually agreeable by the
     parties; or (iii) Microsoft develops and includes in Windows CE a client
     not utilizing or including the Software that is compatible with the
     Avantgo.com service and the Avantgo.com service is the default service
     accessed by such client: then AvantGo shall ensure that during the term of
     this Agreement, AvantGo or an agent or licensee of AvantGo approved by
     Microsoft in writing, shall run the client-server business that is capable
     of supporting the Software used in connection with Windows CE, and of
     providing content to End Users.

ARTICLE 7 - CONFIDENTIALITY
---------------------------

The terms and conditions of this Agreement and information provided pursuant to
this Agreement shall be subject to the terms and conditions of the Non-
Disclosure Agreement dated April 20, 1999 between Microsoft and AvantGo ("NDA").
Notwithstanding the foregoing, the parties hereby acknowledge and agree that
neither party shall be required to make any disclosure of source code or other
proprietary information unless and until a non-disclosure agreement satisfactory
to such disclosing party has been executed by the parties.

ARTICLE 8 - WARRANTIES AND INDEMNITY
------------------------------------

8.1  AvantGo warrants; (i) that AvantGo has not granted and will not grant any
     rights in the Software to any third party which grant is inconsistent with
     the rights granted to Microsoft in this Agreement; (ii) that to the best of
     AvantGo's knowledge, the Software does not infringe any patent; (iii) that
     the Software does not infringe any trade secret, copyright or other
     proprietary right held by a third party, provided that Microsoft agrees
     that AvantGo shall not be responsible for any settlement made by Microsoft
     which would require an admission of AvantGo's breach of subsections (ii)
     and (iii) without AvantGo's written permission, whose permission shall not
     be unreasonably withheld. EXCEPT FOR THE EXPRESS WARRANTIES STATED ABOVE,
     AVANTGO DISCLAIMS ALL WARRANTIES ON SOFTWARE AND SERVICES FURNISHED
     HEREUNDER INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY, NON-
     INFRINGEMENT AND FITNESS FOR A PARTICULAR USE.

8.2  AvantGo shall, at its expense and Microsoft's request, defend any claim or
     action brought against Microsoft, and Microsoft's subsidiaries, affiliates,
     directors, officers, employees, agents and independent contractors, to the
     extent such action is based upon a claim that the Software infringes or
     violates any patent, copyright, trade secret or other proprietary right of
     a third party; and AvantGo shall indemnify and hold Microsoft harmless from
     and against any costs, damages, and fees reasonably incurred by Microsoft,
     including but not

                                     Page 6
<PAGE>

     limited to fees of attorneys and other professionals, that are attributable
     to such claim; provided that: (i) Microsoft gives AvantGo reasonably prompt
     notice in writing of any such claim or action and permits AvantGo, to
     answer and defend the claim or action; (ii) Microsoft provides AvantGo
     information, assistance and authority, at AvantGo's expense, to assist
     AvantGo in defending the claim or action; and (iii) AvantGo shall not be
     responsible for any settlement made by Microsoft without AvantGo's written
     permission, which permission shall not be unreasonably withheld. AvantGo
     shall have no indemnity liability under this Section to the extent that the
     claim or lawsuit is based upon Microsoft's modification of the Software.

8.3  Microsoft agrees that the indemnification under Article 8.2 shall not apply
     and moreover, shall be extended to AvantGo and its subsidiaries,
     affiliates, directors, officers, employees, agents and independent
     contractors, by Microsoft for any claim or action that is based upon the
     (i) use of Software in connection or in combination with any hardware or
     software other than Windows CE Devices and hardware and software used in
     conjunction with Windows CE Devices, or (ii) use of Software delivered
     hereunder in a manner for which the same were not designed, or (iii)
     modification of the Software by or on behalf of Microsoft; to the extent
     any such use or modification is the cause or basis of the claim or suit.

ARTICLE 9 - LIMITATION OF LIABILITY
-----------------------------------

EXCEPT WITH RESPECT TO SECTION 7, NEITHER PARTY SHALL BE LIABLE TO THE OTHER
PARTY FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES,
EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. [******]
NEITHER PARTY'S TOTAL LIABILITY UNDER THIS AGREEMENT SHALL EXCEED [******]
UNITED STATES DOLLARS (US$[******]). FOR ALL OTHER OBLIGATIONS ARISING HEREUNDER
OR RELATING TO THE SUBJECT MATTER HEREOF.

ARTICLE 10 - MISCELLANEOUS
--------------------------

10.1 Notices. All notices, authorizations, and requests sent to either party in
     --------
     connection with this Agreement shall be deemed given on the day they are
     delivered in person or sent by air express courier, charges prepaid, and
     addressed as follows (or to such other address as the party to receive the
     notice or request so designates by written notice to the other).

     If to AvantGo:

     AvantGo, Inc.
     1700 South Amphlett Boulevard, Suite 300
     San Mateo, CA 94402

     ATTN:_____________________

     With a copy to: Roger Ross, Perkins Coie LLP
     Facsimile: [******]

     If to Microsoft:

     Microsoft Corporation
     One Microsoft Way
     Redmond, WA 98052-6399

     Facsimile: [******]

     ATTN: Vice President, Productivity Appliances Division

     With a copy to: Law & Corporate Affairs
     Facsimile: [******]

10.2 Relationship of Parties. Neither this Agreement, nor any terms and
     ------------------------
     conditions contained herein, shall be construed as creating a partnership,
     joint venture or agency relationship or as granting a franchise. Neither
     party shall hold itself out as such contrary to the terms hereof by
     advertising or otherwise, nor shall either of the parties become bound or
     become liable because of any representation, action or omission of the
     other.

****** Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

                                     Page 7
<PAGE>

10.3  Severability. If any provision of this Agreement be held by a court of
      ------------
      competent jurisdiction to be illegal, invalid or unenforceable, the
      provisions shall be interpreted to the maximum extent as necessary to
      carry out the intent of the parties and any remaining provisions, as
      applicable, shall remain in full force and effect.

10.4  Waiver. Any waiver of a default or condition held by either party shall
      -------
      not be deemed a continuing waiver of such default or condition or a waiver
      of any other default or condition.

10.5  Assignment Neither party may assign any of its rights, obligations or
      ----------
      privileges (by operation of law or otherwise) hereunder without the
      consent of the other party, which shall not be unreasonably withheld.

10.6  Captions. The heading of articles, sections and other subdivisions hereof
      ---------
      are inserted only for the purpose of convenient reference and it is
      recognized that they may not adequately or accurately describe the
      contents of the paragraph that they head. Such headings shall not be
      deemed to govern, limit, modify or in any other manner affect the scope,
      meaning or intent of the provisions of this agreement, or any part or
      portion thereof, nor shall they otherwise be given any legal effect.

10.7  Applicable Law. This Agreement shall be governed by, performed under and
      ---------------
      construed in accordance with the laws of the State of New York, without
      giving effect to the Conflict of law principles thereof.

10.8  Jurisdiction and Process. The parties hereby consent to the exclusive
      -------------------------
      jurisdiction and venue of the state and federal courts of New York, New
      York. Process may be served on any party by U.S. Mail, postage prepaid,
      certified or registered, return receipt requested, or by such other method
      as is authorized by law.

10.9  Attorneys' Fees. If Microsoft or AvantGo employs attorneys to enforce any
      ----------------
      rights arising out of or relating to this Agreement, the prevailing party
      shall be entitled to recover reasonable attorneys' fees and costs,
      including expert witness fees.

10.10 Entire Agreement. This Agreement does not constitute an offer by either
      -----------------
      party and it shall not be effective until signed by all parties. This
      Agreement, and the NDA referenced in Article 7, constitute the entire
      Agreement and understanding between the parties as to the subject matter
      hereof, and supersedes and replaces all prior or contemporaneous
      Agreements, written or oral, as to such subject matter. This Agreement may
      be changed only in writing stating that it is an amendment or modification
      to this Agreement, and signed by an authorized representative of each of
      the parties hereto.

                                     Page 8
<PAGE>

IN WITNESS WHEREOF, the parties have entered into this Agreement as of the
Effective Date.

AVANTGO, INC.                               MICROSOFT CORPORATION

   /s/Felix Lin                                 /s/ XXX
----------------------------------        --------------------------------
By (Sign)                                 By (Sign)
   Felix Lin                                    Harel Kodes^
----------------------------------        --------------------------------
Name (Print)                              Name (Print)
   CEO                                          Vice President
----------------------------------        --------------------------------
Title                                     Title
   5/28/99                                      June 2, 1999
----------------------------------        --------------------------------
Date                                      Date

                                     Page 9

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