AMENDMENT NO. 1 TO OPTION AGREEMENTS

Exhibit 10.42

AMENDMENT NO. 1 TO OPTION AGREEMENTS

December 16, 2008

This Amendment No. 1 to Option Agreements (this “Amendment”) is hereby entered into by and between Palm, Inc. (the “Company”) and Andrew J. Brown (“Mr. Brown”).

WHEREAS , Mr. Brown has been granted options by the Company as set forth on Schedule A attached hereto (the “Options”); and

WHEREAS , it is contemplated that Mr. Brown’s employment with the Company will terminate on or about February 27, 2009.

NOW, THEREFORE , the parties hereto agree as follows:

1. Exercisability of Options . Upon the termination of Mr. Brown’s employment with the Company, the Options, to the extent vested as of the date of Mr. Brown’s termination of employment with the Company (including any options that vest pursuant to the terms of Mr. Brown’s Severance Agreement with the