Document:

PROMISSORY NOTE

$131,800.00                                                        July 27, 2001

     FOR VALUE  RECEIVED,  in the  manner,  on the dates and in the  amounts  so
herein stipulated, the undersigned,  Tanisys Technology, Inc., ("Borrower"),  at
12201 Technology  Boulevard,  Suite 125, Austin, Texas 78727, PROMISED TO PAY TO
THE ORDER OF CHUCK COMISO, individually ("Lender"), at Austin, Texas, the sum of
One Hundred Thirty-one  Thousand Eight Hundred and 00/100 Dollars  ($131,800.00)
in lawful money of the United States of America,  which shall be legal tender in
payment of all debts and dues, public and private,  at the time of payment,  and
to pay  interest  on the unpaid  principal  amount  from the date  hereof  until
maturity at a fixed rate  ("Stated  Rate") equal to Ten Percent (10%) per annum,
not to exceed the maximum non-usurious interest rate permitted by applicable law
from time to time in effect, as such law may be interpreted,  amended,  revised,
supplemented or enacted (the "Maximum  Rate"),  provided that if at any time the
Stated Rate exceeds the Maximum Rate,  then interest  hereon shall accrue at the
Maximum  Rate.  In the event the  Maximum  Rate  applicable  to this Note should
subsequently  be changed,  then interest  hereon shall accrue at a rate equal to
the  applicable  Maximum Rate until the aggregate  amount of interest so accrued
equals the aggregate  amount of interest  which would have accrued at the Stated
Rate without  regard to any usury  limit,  at which time  interest  hereon shall
again accrue at the Stated Rate.  The principal  amount of this Note and accrued
interest are payable as follows:

     The earlier of August 6, 2001 or upon the closing of the private  placement
of Borrower's Preferred Stock.

     If not sooner paid, the entire outstanding  principal balance of this Note,
together with all accrued but unpaid interest shall be due and payable on August
6, 2001.

     In the event of  default  in the  making of any  payment  herein  provided,
either of  principal  or  interest,  or in the event this Note is declared  due,
interest shall accrue at the Maximum Rate.

     Borrower hereby agrees to pay all expenses incurred,  including  reasonable
attorneys'  fees, all of which shall become a part of the principal  hereof,  if
this Note is placed in the hands of an attorney for  collection  or if collected
by suit or through any probate, bankruptcy or any other legal proceedings.

     Interest  charges will be calculated on amounts  advanced  hereunder on the
actual  number of days these amounts are  outstanding  on the basis of a 360-day
year, except for calculations of the Maximum Rate, which will be on the basis of
a 365-day or 366-day year, as is applicable.  It is the intention of the parties
hereto to comply with all applicable usury laws; accordingly,  it is agreed that
notwithstanding  any  provisions  to the contrary in this Note, or in any of the
documents  securing  payment  hereof  or  otherwise  relating  hereto,  no  such
provision  shall  require  the payment or permit the  collection  of interest in
excess of the  Maximum  Rate.  If any  excess of  interest  in such  respect  is
provided for, or shall be  adjudicated to be so provided for, in this Note or in
any of the documents securing payment hereof or otherwise relating hereto,  then
in such

<PAGE>

event (1) the provisions of this paragraph shall govern and control; (2) neither
Borrower,  endorsers  or  guarantors,  nor their heirs,  legal  representatives,
successors or assigns,  nor any other party liable for the payment hereof, shall
be  obligated  to pay the amount of such  interest  to the extent  that it is in
excess of the Maximum  Rate;  (3) any such excess which may have been  collected
shall be either  applied as a credit  against the then unpaid  principal  amount
hereof or  refunded to  Borrower;  and (4) the  provisions  of this Note and any
documents securing payment of this Note shall be automatically  reformed so that
the effective  rate of interest  shall be reduced to the Maximum  Rate.  For the
purpose of determining  the Maximum Rate, all interest  payments with respect to
this Note shall be amortized,  prorated and spread  throughout  the full term of
the Note so that the  effective  rate of  interest  on  account  of this Note is
uniform throughout the term hereof.

     The laws of the State of Texas shall govern the provisions of this Note.

     Borrower  acknowledges  that the  principal sum of this Note is composed of
$95,000 in back salary, $6,800 in Federal tax penalties, and $30,000 advanced on
behalf of the  Borrower  to pay down its  obligations  to the law firms of Smith
Underwood and Perkins and Howard, Rice, Nemorovski, Canady, Falk & Rabkin.

     Each surety,  guarantor  and  endorser  agrees that this Note and the liens
securing its payment may be renewed and the time of payment  extended  from time
to time, without notice and without releasing any of the foregoing.

     Borrower and any and all  endorsers and  guarantors of this Note  severally
waive presentment for payment, notice of nonpayment,  protest, demand, notice of
protest,  notice of intent to accelerate,  notice of acceleration  and dishonor,
diligence  in  enforcement  and  indulgences  of every kind and without  further
notice  hereby  agree  to  renewals,   extensions,   exchanges  or  releases  of
collateral,  taking of additional  collateral,  indulgences or partial payments,
either before or after maturity.

     Borrower  may prepay this Note,  in whole or in part,  at any time prior to
maturity without penalty, and interest shall cease on any amount prepaid.

                                            TANISYS TECHNOLOGY, INC.

                                            By: /s/ Terry W. Reynolds, VP
                                                -------------------------------
                                                Title: Vice President and CFO
                                                -------------------------------

                                       2EXHIBIT 10.32

                               GEOWORKS CORPORATION
                                 1994 STOCK PLAN

                        RESTRICTED STOCK BONUS AGREEMENT

       This  Agreement  is made and  entered  into as of June  27th,  2001  (the
"Effective Date") by and between Geoworks  Corporation,  a Delaware  corporation
(the "Company"),  and the Recipient named below (the  "Recipient").  Capitalized
terms not defined below have the meaning  ascribed to them in the Company's 1994
Stock Plan (the "Plan").

Recipient:

Social Security Number:

Address:

Total Number of Shares:                              (a)______________________or
       (with cash withholding election)              (b)________________________

Purchase Price Per Share:                            $1.50

Total Purchase Price:                                (a)______________________or
       (with cash withholding election)              (b)$_______________________

     1. Grant of Shares.

        1.1 Grant of Shares.  On the Effective Date and subject to the terms and
conditions of this  Agreement and the Plan,  Recipient  hereby  accepts from the
Company, and the Company hereby grants to Recipient,  the total number of shares
set forth above (the  "Shares")  of the  Company's  Common Stock at the purchase
price per share as set forth above (the "Purchase  Price Per Share") for a total
purchase  price as set  forth  above  (the  "Purchase  Price").  As used in this
Agreement, the term "Shares" refers to the Shares purchased under this Agreement
and includes all securities  received (a) in replacement of the Shares, (b) as a
result of stock  dividends or stock splits in respect of the Shares,  and (c) in
replacement  of the  Shares in a  merger,  recapitalization,  reorganization  or
similar corporate transaction.

<PAGE>

        1.2 Cash Withholding  Election.  By making the cash withholding election
above,  Recipient  elects to receive a portion of  Recipient's  grant under this
Agreement  in cash,  rather than in Shares,  to be applied for state and federal
income tax withholding purposes by the Company. This portion is an approximation
only and there may be additional  income tax due from Recipient  generally or in
connection with making a Section 83(b) election under the Internal Revenue Code.
Recipient  acknowledges  Recipient's  responsibility to satisfy such obligations
and  understands  that the Company is not  responsible  for them. By making this
election,  Recipient  waives any right to receive  those  Shares that  Recipient
otherwise  would have received  pursuant to this grant if Recipient has not made
such  election.  In any  event,  the  Company is not liable for any taxes due in
connection  with the grant or the  disposition of the shares other than to apply
the cash portion referred to above for tax withholding purposes.

     2. Delivery.

        2.1 Deliveries by Recipient.  Recipient  hereby  delivers to the Company
this executed Agreement.

        2.2  Deliveries by the Company.  Within thirty days after receipt of the
executed  Agreement,  the Company will issue a duly executed  stock  certificate
evidencing the Shares in the name of Recipient. [See my comment below in Section
7.]

     3. Recipient Acknowledgement. Recipient has received a copy of the Plan and
this  Agreement,  has  read  and  understands  the  terms  of the  Plan and this
Agreement,  and  agrees  to be bound by their  terms and  conditions.  Recipient
acknowledges  that there may be adverse tax consequences  upon receipt,  vesting
and disposition of the Shares, and that Recipient should consult a tax adviser.

     4.  Restrictions  on  Transfers.   Except  as  otherwise  approved  by  the
Committee,  Recipient  shall  not  transfer,  assign,  grant a lien or  security
interest in, pledge,  hypothecate,  encumber or otherwise  dispose of any of the
Shares which are Unvested  Shares as defined in Section 6. Any such  transfer by
Recipient in violation of this Section shall be void and of no force and effect,
and shall result in the immediate  forfeiture of all Unvested Shares.  After the
Shares have become Vested Shares, Recipient will not assign, encumber or dispose
of any interest in the Shares except in compliance  with the  provisions of this
Agreement, the Plan and applicable securities laws.

     5. Market  Standoff  Agreement.  Recipient  agrees in  connection  with any
registration of the Company's  securities  that, upon the request of the Company
or the  underwriters  managing any registered  public  offering of the Company's
securities,  Recipient will not sell or otherwise  dispose of any Shares without
the prior written consent of the Company or such managing  underwriters,  as the
case may be, for a period of time (not to exceed 180 days)  after the  effective
date of  such registration  requested by such  managing underwriters and subject

<PAGE>

to all restrictions as the Company or the managing  underwriters may specify for
employee-shareholders generally.

     6. Vesting of Shares.

        6.1 Unvested and Vested Shares. On the Effective Date, all of the Shares
will be "Unvested  Shares".  For each thirty-day  period following the Effective
Date  that  Recipient  continuously  provides  services  to the  Company  or any
Affiliate,  then 4.2% (four and  two/tenths  percent)  of the Shares will become
"Vested Shares",  so that after  twenty-four such thirty-day  periods all Shares
would become Vested Shares. Despite the foregoing,  in the event of a "Change In
Control"  prior to the  Termination  Date,  all of the Shares will become Vested
Shares.  A "Change in Control" is: the  occurrence of (i) any  consolidation  or
merger of the  Company  with or into any other  corporation  or other  entity or
person (whether or not the Company is the surviving  corporation),  or any other
corporate  reorganization  or transaction or series of related  transactions  in
which in excess of 50% of the Company's  voting power is  transferred  through a
merger,  consolidation,  tender offer or similar transaction; or (ii) any person
(as  defined  in  Section  13(d) of the  Securities  Exchange  Act of  1934,  as
amended), together with its affiliates and associates (as such terms are defined
in Rule 405 under the Securities Act of 1933, as amended),  beneficially owns or
is deemed to beneficially own (as described in Rule 13d-3 under the Exchange Act
without regard to the 60-day exercise  period) in excess of 50% of the Company's
voting power;  (iii) there is a replacement of more than one-half of the members
of the Company's Board of Directors  which is not approved by those  individuals
who are members of the Company's Board of Directors on the date thereof; (iv) in
one or a series of related  transactions  there is a sale or  transfer of all or
substantially all of the assets of the Company to a third party, determined on a
consolidated  basis,  or (v) the Company  enters into an  agreement  to effect a
transaction  described in (i), (ii),  (iii) or (iv) above. No Shares will become
Vested Shares after the Termination Date (as defined in Section 6.2 hereof). The
number  of  Shares  that  are  Vested   Shares  or   Unvested   Shares  will  be
proportionally  adjusted to reflect any stock  dividend,  stock  split,  reverse
stock split or  recapitalization  of the Common  Stock of the Company  occurring
after the Effective Date.

        6.2 Forfeiture of Unvested Shares.  If Recipient's  Continuous Status as
an Employee,  Consultant or Outside  Director is terminated or  interrupted  (as
defined in the Plan) for any reason, or no reason,  including without limitation
Recipient's  death,  disability (as defined in Section  22(e)(3) of the Internal
Revenue  Code),  voluntary  resignation  or  termination  by the Company with or
without cause (individually and collectively -- "Terminated"), then all Unvested
Shares shall be automatically forfeited, without notice, on the Termination Date
and  without  any  further  action  of any kind by the  Company.  In case of any
dispute as to whether  Recipient is  Terminated,  the Committee  shall have sole
discretion to determine  whether Recipient has been Terminated and the effective
date of such  Termination  (the  "Termination  Date").  Unvested Shares that are
forfeited  shall be immediately  transferred to the Company  without any payment
from the Company,  and the Company  shall have full right to cancel any evidence
of  Recipient's  ownership  of such  forfeited  Shares  automatically  upon such
forfeiture.  Following such  forfeiture,  Recipient shall have no further rights
with  respect  to such  forfeited  Shares.  Vested  Shares  are not  subject  to
cancellation.

<PAGE>

        6.3 Right of Termination Unaffected.  Nothing in this Agreement shall be
construed to limit or  otherwise  affect in any manner  whatsoever  the right or
power of the Company (or any Parent,  Subsidiary or Affiliate of the Company) to
terminate Recipient's  employment or other relationship with the Company (or any
Parent, Subsidiary or Affiliate of the Company) at any time for any reason or no
reason, with or without cause.

     7. Rights as  Stockholder.  Subject  to the terms and  conditions  of this
Agreement, Recipient will have all of the rights of a stockholder of the Company
with respect to the Shares from and after the date that  Recipient  receives the
share  certificate  until such time as  Recipient  disposes of the Shares or the
shares are forfeited pursuant to Section 6. Upon forfeiture, Recipient will have
no  further  rights as a holder of the  Unvested  Shares,  will have no right to
receive payment for the forfeited  Shares and will promptly  surrender the stock
certificate(s)  evidencing  the forfeited  Shares to the Company.  However,  the
forfeiture of Unvested  Shares pursuant to Section 6 hereof shall not invalidate
any votes given by Recipient with respect to such Shares prior to forfeiture.

     8. Restrictive Legends and Stop-Transfer Orders.

        8.1  Legends.  Recipient  understands  and agrees that the Company  will
place the legend set forth below or similar legends on any stock  certificate(s)
evidencing  the Shares,  together with any other legends that may be required by
state or federal securities laws, the Company's  Certificate of Incorporation or
Bylaws,  any other agreement  between Recipient and the Company or any agreement
between Recipient and any third party:

     THE  SHARES   REPRESENTED  BY  THIS  CERTIFICATE  ARE  SUBJECT  TO  CERTAIN
     RESTRICTIONS  ON TRANSFER,  INCLUDING THE POSSIBLITY OF FORFEITURE,  AS SET
     FORTH IN A RESTRICTED STOCK BONUS AGREEMENT DATED JUNE 27, 2001 BETWEEN THE
     ISSUER  AND THE  ORIGINAL  HOLDER OF THESE  SHARES,  A COPY OF WHICH MAY BE
     OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.

        8.2  Stop-Transfer  Instructions.   Recipient  agrees  that,  to  ensure
compliance  with the  restrictions  imposed by this  Agreement,  the Company may
issue  appropriate  "stop-transfer"  instructions to its transfer agent, if any,
and if the  Company  transfers  its  own  securities,  it may  make  appropriate
notations to the same effect in its own records.

        8.3  Refusal  to  Transfer.  The  Company  will not be  required  (i) to
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the  provisions of this  Agreement or (ii) to treat as owner
of such Shares, or to accord the right to vote or pay dividends to any Recipient
or other transferee to whom such Shares have been so transferred.

<PAGE>

     9. Tax  Consequences.  Recipient  understands  that  Section  83(b) of the
Internal Revenue Code taxes as ordinary income the difference between the amount
paid for the Shares and the fair  market  value of the Shares as of the date any
restrictions on the Shares lapse. In this context,  "restriction" means the risk
of forfeiture  pursuant to Section 6 of this  Agreement.  Recipient  understands
that Recipient may elect to be taxed at the time the Shares are granted,  rather
than when and as the Shares vest (and the risk of forfeiture  lapses), by filing
an election under Section 83(b) (an "83(b) election") of the Code within 30 days
from the grant date. Recipient understands that failure to file such an election
in a timely  manner  may  result in  adverse  tax  consequences  for  Recipient.
Recipient  further  acknowledges  that an additional  copy of this election form
should be filed with his or her federal  income tax return for the calendar year
in which  the date of this  Agreement  falls.  Recipient  acknowledges  that the
foregoing and the discussion of Section 83(b)  attached  hereto as Exhibit A are
only a summary of the  effect of United  States  federal  income  taxation  with
respect to the grant of Shares  hereunder,  and do not  purport to be  complete.
Recipient further  acknowledges that the Company has directed  Recipient to seek
independent  advice regarding the applicable  provisions of the Code, the income
tax laws of any  municipality,  state or foreign  country in which Recipient may
reside,  the tax  consequences of Recipient's  death and the decision whether or
not to file an 83(b) Election in connection with the acquisition of the Shares.

     Recipient  agrees that  Recipient  will  execute and deliver to the Company
with this  executed  Agreement a copy of the  Acknowledgement  and  Statement of
Decision  Regarding 83(b) Election (the  "Acknowledgement"),  attached hereto as
Exhibit B. Recipient  further agrees that Recipient will execute and submit with
the acknowledgement a copy of the 83(b) Election,  attached hereto Exhibit C, if
Recipient has indicated in the  Acknowledgement his or her decision to make such
election.

RECIPIENT  HEREBY  ASSUMES ALL  RESPONSIBILITY  FOR FILING AN 83(B) ELECTION AND
PAYING ANY TAXES RESULTING FROM SUCH ELECTION  (EXCEPT TO THE EXTENT OF THE CASH
WITHHOLDING  ELECTION  MADE BY  RECIPIENT)  OR FROM  FAILURE  TO FILE THE  83(B)
ELECTION AND PAYING TAXES RESULTING FROM THE LAPSE OF THE TRANSFER  RESTRICTIONS
ON THE UNVESTED SHARES.

     10. Compliance with Laws and Regulations.  The issuance and transfer of the
Shares will be subject to and  conditioned  upon  compliance  by the Company and
Recipient with all applicable  state and federal laws and  regulations  and with
all applicable  requirements of any stock exchange or automated quotation system
on which the Company's  Common Stock may be listed or quoted at the time of such
issuance or transfer.

     11. Successors and Assigns.  The Company may assign any of its rights under
this Agreement. This Agreement shall be binding upon and inure to the benefit of
the  successors  and  assigns of the  Company.  Subject to the  restrictions  on
transfer herein set forth, this

<PAGE>

Agreement  will be binding upon  Recipient  and  Recipient's  heirs,  executors,
administrators, legal representatives, successors and assigns.

     12.  Governing Law;  Severability.  This Agreement shall be governed by and
construed in  accordance  with the internal  laws of the State of  California as
such laws are applied to agreements  between  California  residents entered into
and to be performed  entirely  within  California,  excluding  that body of laws
pertaining to conflict of laws. If any provision of this Agreement is determined
by a court of law to be illegal or  unenforceable,  then such  provision will be
enforced to the maximum  extent  possible and the other  provisions  will remain
fully effective and enforceable.

     13.  Notices.  Any notice  required to be given or delivered to the Company
shall be in writing and addressed to the  Corporate  Secretary of the Company at
its principal corporate offices. Any notice required to be given or delivered to
Recipient  shall  be in  writing  and  addressed  to  Recipient  at the  address
indicated  above or to such other  address as Recipient may designate in writing
from time to time to the Company.  All notices shall be deemed effectively given
upon personal  delivery,  three (3) days after deposit in the United States mail
by certified or registered mail (return receipt requested), one (1) business day
after its deposit with any return receipt express courier (prepaid),  or one (1)
business day after transmission by fax or telecopier.

     14.  Further  Instruments.  The  parties  agree  to  execute  such  further
instruments  and to take such further  action as may be reasonably  necessary to
carry out the purposes and intent of this Agreement.

     15. Headings.  The captions and headings of this Agreement are included for
ease of reference  only and will be disregarded  in  interpreting  or construing
this Agreement. All references herein to Sections will refer to Sections of this
Agreement.

     16. Entire  Agreement.  The Plan and this Agreement,  together with all its
Exhibits,  constitute the entire agreement and understanding of the parties with
respect  to the  subject  matter  of this  Agreement,  and  supersede  all prior
understandings  and  agreements,  whether  oral or written,  between the parties
hereto with respect to the specific  subject matter hereof.  No  modification or
amendment to this Agreement  shall be effective  unless in writing signed by the
parties to this  Agreement.  The  failure by either  party to enforce any rights
under this  Agreement  shall not be  construed as a waiver of any rights of such
party.

     17.  Severability.  If one or more provisions of this Agreement are held to
be  unenforceable  under  applicable  law, the parties  agree to negotiate  such
provision in good faith.  In the event that the parties  cannot reach a mutually
agreeable  and  enforceable  replacement  for  such  provision  then,  (i)  such
provision  shall be  excluded  from this  Agreement;  (ii) the  balance  of this
Agreement  shall be  interpreted as if such provision were so included and (iii)
the balance of this Agreement shall be enforceable in accordance with its terms.

<PAGE>

     18.   Counterparts.   This  Agreement  may  be  executed  in  two  or  more
counterparts,  each of  which  shall  be  deemed  an  original  and all of which
together shall constitute one instrument.

     19.  Nature  of  Payments.  Any and all  grants  or  deliveries  of  Shares
hereunder shall constitute special incentive payments to Recipient and shall not
be taken into  account in  computing  the  amount of salary or  compensation  of
Recipient for the purpose of determining any retirement, death or other benefits
under (a) any retirement,  bonus,  life insurance or other employee benefit plan
of the Company,  or (b) any agreement  between the Company on the one hand,  and
the  Recipient  on the  other  hand,  except  as such  plan or  agreement  shall
otherwise expressly provide.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in
duplicate by its duly authorized  representative and Recipient has executed this
Agreement in duplicate as of the Effective Date.

RECIPIENT ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO SECTION
6 HEREOF IS EARNED ONLY BY CONTINUING  SERVICE AS AN EMPLOYEE AT THE WILL OF THE
COMPANY.  RECIPIENT  FURTHER  ACKNOWLEDGES  AND  AGREES  THAT  NOTHING  IN  THIS
AGREEMENT  SHALL CONFER UPON RECIPIENT ANY RIGHT WITH RESPECT TO CONTINUATION OF
EMPLOYMENT WITH THE COMPANY,  NOR SHALL IT INTERFERE IN ANY WAY WITH RECIPIENT'S
RIGHT OR THE COMPANY'S RIGHT TO TERMINATE RECIPIENT'S EMPLOYMENT RELATIONSHIP AT
ANY TIME, WITH OR WITHOUT CAUSE.

GEOWORKS CORPORATION                         RECIPIENT

By:
    --------------------------------         -----------------------------------
                                             (Signature)

------------------------------------         -----------------------------------
(Please print name)                          (Please print name)

------------------------------------
(Please print title)

<PAGE>

                                    Exhibit A

            Election Under Section 83(b) of the Internal Revenue Code

The  undersigned  Taxpayer  hereby  elects,  pursuant  to  Section  83(b) of the
Internal  Revenue  Code, to include in gross income for the  Taxpayer's  current
taxable year the amount of any  compensation  taxable to taxpayer in  connection
with taxpayer's receipt of the property described below.

1.   TAXPAYER'S NAME:

     SOCIAL SECURITY NUMBER:

     TAXPAYER'S ADDRESS:

2.   The  property  with  respect to which the  election is made is described as
     follows:______ shares of Common Stock of Geoworks Corporation, a California
     corporation   (the  "Company"),   which  is  Taxpayer's   employer  or  the
     corporation for whom the Taxpayer performs services.

3.   The date on which the shares  were  transferred  was June 27, 2001 and this
     election is made for calendar year 2001.

4.   The  shares  are  subject  to the  following  restrictions:  the shares are
     subject to forfeiture at the time of Taxpayer's  termination  of employment
     or services.

5.   The fair market value of the shares (without  regard to restrictions  other
     than  restrictions  which by their  terms will  never  lapse) was $1.50 per
     share at the time of transfer.

6.   The amount, if any, paid for such shares was $0 per share.

7.   The Taxpayer has submitted a copy of this statement to the Company.

THIS ELECTION MUST BE FILED WITH THE INTERNAL  REVENUE SERVICE  ("IRS"),  AT THE
OFFICE WHERE THE TAXPAYER FILES ANNUAL INCOME TAX RETURNS,  WITHIN 30 DAYS AFTER
THE DATE OF TRANSFER OF THE PROPERTY, AND MUST ALSO BE FILED WITH THE TAXPAYER'S
INCOME TAX RETURNS FOR THE CALENDAR YEAR. THE ELECTION IS IRREVOCABLE.

Dated:                            , 2001
       ---------------------------          ------------------------------------
                                            Taxpayer's Signature

<PAGE>

{Form of transmittal letter for most recipients}

July 13, 2001

REGISTERED MAIL NO. ____________________
RETURN RECEIPT REQUESTED

Internal Revenue Service

     Re: Section 83(b) Election

Dear Sir/Madam:

     Enclosed  please find the original and one copy of a Section 83(b) Election
which we are filing on behalf of the taxpayers identified on the forms.

     Please  acknowledge  your receipt of this filing by signing or stamping and
dating the copy of each Election Form and returning it to us. A  self-addressed,
stamped envelope is provided for your convenience.

                                                Very truly yours,

                                                Timothy Toppin, CFO

Enclosures

cc:  all recipients

<PAGE>

                                    EXHIBIT B

                       Brief Explanation of Section 83(b)

     As you know, the Agreement provides that the shares you are receiving under
the Agreement  will be subject to  cancellation,  if your  employment or service
with the Company  terminates for certain reasons within a stated period of time.
This  "vesting"   restriction  should  be  considered  a  "substantial  risk  of
forfeiture"  within the meaning of Section 83 of the  Internal  Revenue  Code of
1986, as amended ("IRC").

     As a result of this  restriction  on your  shares,  you would  normally  be
taxed, when the restriction lapses on each portion of the shares (i.e. when they
"vest"), on an amount equal to the excess of the fair market value of the shares
that vest free of the restriction (with such fair market value being measured as
of the date the  restriction  lapses) over the amount you paid for those shares.
This could result in an  unexpected  (and  possibly  substantial)  tax to you in
future  years.  If the shares  appreciate  in value between now and the time the
restriction  lapses,  you would be required to include the  appreciation in your
federal and California,  if applicable,  taxable gross income. This amount would
be taxable at the full  ordinary  rates as  compensation,  when the  restriction
lapses -- even if you continue to hold the shares.

     However,  under IRC  Section  83(b) you may elect  instead to be taxed this
year on the excess,  if any, of the fair market value of the shares  (determined
without  regard to the  restrictions  mentioned  above) on the date you buy them
over the  amount  you paid for the  shares.  If you file such an  election,  any
subsequent  appreciation (or decline) in the value of the shares would, provided
you hold the shares for at least twelve  months,  be taxed as long-term  capital
gain (or loss) when you eventually dispose of the shares.

     IF YOU MAKE AN 83(B)  ELECTION  WITH RESPECT TO THE SHARES,  SUCH  ELECTION
WILL BE  IRREVOCABLE.  IF ALL OR A PORTION OF THE SHARES LATER BECOME SUBJECT TO
FORFEITURE, YOU WILL NEVERTHELESS BE TAXED BASED ON THE ENTIRE AMOUNT COVERED BY
THE 83(B) ELECTION.

     You must file the election with the Internal  Revenue  Service (at the same
office  with  which  you file your  annual  tax  return)  within 30 days of your
purchase of the shares.  TIMELY FILING OF THE ELECTION  FORM IS VERY  IMPORTANT!
You must also file a copy of the election with your tax return for this year and
deliver a copy of the election to the  Company.  You should keep the fourth copy
for your records.

<PAGE>

                                    EXHIBIT C

                 ACKNOWLEDGMENT REGARDING SECTION 83(b) ELECTION

     The  undersigned  has  entered a  Restricted  Stock  Bonus  Agreement  with
Geoworks Corporation, a Delaware corporation (the "Company"),  pursuant to which
the undersigned was granted shares of Common Stock of the Company  (the"Shares")
pursuant to the Company's  1994 Stock Plan. In connection  with the grant of the
Shares, the undersigned hereby represents as follows:

     1. The undersigned has carefully  reviewed the Agreement  pursuant to which
the undersigned is granted the Shares.

     2. The undersigned either [check and complete as applicable]:

          (a)  [_]  has   consulted,   and  has  been  fully   advised  by,  the
               undersigned's  own  tax  advisor,  _____________________________,
               whose business address is  _____________________________________,
               regarding the federal,  state and local tax consequences of being
               granted the Shares,  and particularly  regarding the advisability
               of making  elections  pursuant to Section  83(b) of the  Internal
               Revenue Code of 1986, as amended (the "Code") and pursuant to the
               corresponding provisions, if any, of applicable state law; or

          (b)  [_] has knowingly chosen not to consult such a tax advisor.

     3. The undersigned hereby states that the undersigned has decided [check as
applicable]:

          (a)  [_] to make an election  pursuant  to Section  83(b) of the Code,
               and is submitting to the Company, together with the undersigned's
               executed  Agreement,  an executed form entitled  "Election  Under
               Section 83(b) of the Internal Revenue Code of 1986"; or

          (b)  [_] not to make an  election  pursuant  to  Section  83(b) of the
               Code.

     4. Neither the Company nor any subsidiary or  representative of the Company
has made any warranty or  representation  to the undersigned with respect to the
tax  consequences of the  undersigned's  grant of the Shares or of the making or
failure  to make an  election  pursuant  to  Section  83(b)  of the  Code or the
corresponding provisions, if any, of applicable state law.

Date:
     ---------------------------------

Recipient:
          ----------------------------

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