Exhibit 10.10

                                                                                      EXHIBIT
    10.10
     

    HSBC

     

     

     

    August
      1,
      2006

    


    NovAtel
      Inc.

    1120-
      68th
      Avenue
      NE

    Calgary,
      AB T2E 8S5

    


    Attention:
      Werner Gartner, EVP and CFO

    


    Dear
      Sir:

    


    We
      refer
      to the facility letter dated September 24, 2001 and amended by letters June
      17,
      2002, September 16, 2003, February 13, 2004, August 4, 2004 and September 26,
      2005, from HSBC Bank Canada (the “Bank”) to NovAtel Inc. (the “Borrower”),
      collectively called the Facility Letter. The Bank has now completed a review
      of
      the Loans as set out in the Facility Letter. Based on the information,
      representations and documents you have provided to the Bank, the Bank has agreed
      to renew the Loans on the terms and conditions set out in the Facility Letter
      subject to the following modifications:

    


    
      	1)  	
              The
                Foreign Exchange Loan limit has been increased from CAD3,000,000
                to
                CAD3,500,000.

            


    

    


    Each
      of
      the terms and conditions of the Facility Letter, as amended by this extension
      letter, shall remain in full force and effect, and are hereby affirmed by the
      undersigned. In particular, the Loans shall continue to be repayable on demand
      by the Bank, at any time.

    


    The
      Loans
      shall continue to be subject to periodic review to be conducted by the Bank
      in
      the Bank’s sole discretion, and the Bank shall be under no obligation to conduct
      any such review or to provide a renewal letter or extension letter or other
      notification of such review if such review is conducted.

    


    Kindly
      acknowledge receipt and acceptance of this letter by dating and returning to
      the
      Bank not later than August 31, 2006, the enclosed copy of this letter executed
      by the parties indicated below, failing which this offer will automatically
      expire and shall be of no further force or effect.

    


    Yours
      truly,

    


    HSBC
      BANK
      CANADA

    


    
      	
              /s/
                Cam Kolbuch

               

              Cam
                Kolbuch

              Account
                Manager

              Commercial
                Banking

            	 	
              /s/
                Jeff Govett

               

              Jeff
                Govett

              Assistant
                Vice President

              Commercial
                Banking

            


    

     

    
      HSBC
        BANK CANADA

      407
        - 8th Avenue S.W. Calgary, Alberta T2P
        1E5

      Tel:
        (403) 261-8910     
Fax: (403) 693-8556




    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    


    


    


    The
      undersigned hereby acknowledges and agrees to the terms and conditions of this
      Facility Letter this 28th
      day of
      August, 2006

    


    THE
      BORROWER:

    NovAtel
      Inc.

    


    


    Per:
      /s/
      Werner Gartner

    


    


    Per:
      /s/Jonathan
      W. Ladd