Document:

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                                                                   EXHIBIT 10.10

                                SUPPLY AGREEMENT

        This Supply Agreement ("Agreement") is being entered into and is
effective as of March 31, 2000 (the "Effective Date"), by and between NOVATEL
WIRELESS, INC., a Delaware corporation ("Novatel Wireless" or "Seller"), having
its principal place of business at 9360 Towne Centre Drive, San Diego,
California 92121 and Hewlett-Packard Company, a Delaware corporation
("Hewlett-Packard" or "Buyer"), having its principal place of business at 3000
Hanover Street, Palo Alto, California 94304.

        WHEREAS, Seller is engaged in, among other things, the development and
manufacture of wireless modem cradles ("Modems");

        WHEREAS, Buyer desires to purchase certain quantities of Modems from
Seller, and Seller is willing to supply such quantities of Modems to Buyer,
subject to the terms and conditions of this Agreement;

        NOW, THEREFORE, in consideration of the premises and the mutual promises
and covenants set forth below, the parties agree as follows:

1.      SALE AND PURCHASE OF PRODUCTS.

        1.1 Sale and Purchase. Buyer shall purchase from Seller, and Seller
shall supply to Buyer *** Modems in accord with the specifications set forth in
Annex B (the "Product Specifications").

        1.2 Price and Payments.

            1.2.1 Buyer shall make payments due to Seller for Modems either
directly to Seller or to such bank as Seller may designate in writing. Order
payment terms are Net 30 Days.

            1.2.2 Buyer shall pay in accordance with the terms set forth in
Annex D ("Purchase Price and Volume Commitments") per unit for each Modem.

        1.3 Modems. The price per unit as set forth above includes the finished
product modem, installation and configuration software on CD ROM, AC adapter,
display packaging and user documentation.

        1.4 Shipment and Forecast. Buyer shall order and Seller shall deliver to
Buyer the Modems set forth in Section 1.1 in accord with the delivery schedule
attached set forth in Annex C ("Forecast and Delivery Schedules").

        1.5 Delivery. Seller shall deliver the Modems sold to Buyer in accord
with the delivery schedule set forth in Annex C. The Modems shall be shipped
f.o.b. shipping point from the Seller's manufacturing site.

        1.6 Warranties. Acceptance of a Modem shall not relieve Seller from its
obligations thereunder with respect to warranties under Section 6 below.

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

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        1.7 Title; Risk of Loss. Title to and risk of loss in Modems covered by
this Agreement shall pass to Buyer at such time Seller ships the Modems.

        1.8 Taxes. The prices of all Modems hereunder include all taxes, duties
and excise which are directly imposed on the Modems. Notwithstanding the
foregoing, Buyer shall bear the responsibility for any taxes or duties imposed
on Modems in any other country or state of destination, including without
limitation, taxes imposed on the sale by Buyer of a product that includes Seller
products.

        1.9 Preferred Supplier Status. For the term of this Agreement, Seller
shall have the right of first refusal as a supplier with respect to any wireless
data modem project initiated by the Hewlett-Packard Wireless and Internet
Services Division.

2.      TRADEMARKS.

        2.1 Seller's Trademarks.

            2.1.1 Buyer shall not use the trademark "Novatel" or "Novatel
Wireless" or any other trademark owned by Seller or any mark confusingly similar
thereto without the prior written consent of Seller in each instance.
Notwithstanding the foregoing, Buyer shall be entitled to use the trademark
"Novatel" or "Novatel Wireless" or any other trademark owned by Seller in
association with the Modems, but such use shall be in strict accord with the
latest (most recent) version of Seller's Trademark Style Guide as provided by
Seller to Buyer.

            2.1.2 Buyer shall not use the Seller's trademark or any other
trademark owned by Seller or any mark confusingly similar thereto without the
prior written consent of Seller in each instance.

            2.1.3 Buyer acknowledges Seller's sole ownership and exclusive
right, title and interest in and to the use of each of its trademarks, and that
any use of any of the trademarks of Seller will inure solely to the benefit of
Seller. Buyer shall not acquire any right to or under any of Seller's
trademarks. Nothing contained herein shall in any way limit Seller's rights
under its patents or licensing agreements or grant Buyer any rights under such
patents or licensing agreements.

            2.1.4 License to the Documentation. Solely for purposes as required
in accordance with this Agreement, Seller hereby grants to Buyer, under Seller"s
intellectual property rights, a non-exclusive, worldwide license to use,
reproduce and display the appropriate Documentation for the Modems.

        2.2 Buyer's Trademarks.

            2.2.1 Trademarks. Neither party is granted any ownership in or
            license to the trademarks, marks or trade names (collectively,
            "Marks") of the other party. Seller's use of Buyer's Marks shall be
            in accordance with the latest (most recent) Buyer's Trademark
            guidelines as provided by Buyer to Seller.

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            2.2.2 Seller shall not use the Buyer's trademark or any other
            trademark owned by Buyer or any mark confusingly similar thereto
            without the prior written consent of Buyer in each instance.

            2.2.3 Seller acknowledges Buyer's sole ownership and exclusive
            right, title and interest in and to the use of each of its
            trademarks, and that any use of any of the trademarks of Buyer will
            inure solely to the benefit of Buyer. Seller shall not acquire any
            right to or under any of Buyer's trademarks. Nothing contained
            herein shall in any way limit Buyer's rights under its patents or
            licensing agreements or grant Seller any rights under such patents
            or licensing agreements.

        2.3 Co-Branding. Buyer and Seller agree that the Modems manufactured and
sold under this Agreement shall be co-branded with the trademarks of both Buyer
and Seller. Buyer and Seller agree to reasonably cooperate with one another in
developing an appropriate co-branding strategy.

3.      KNOW-HOW AND SUPPORT.

        Seller shall provide Level II and Level III Technical Support (as set
forth in Annex A ("Technical Support")), and training to Buyer's designated
service technicians to enable Buyer to provide Level I Support and engineering
support at Buyer's facilities to enable Buyer to support the Modems, including
the details of modem functionality and design required for detection and
correction of bugs or failures. The parties hereto acknowledge and agree that
Seller shall not provide direct end-user support to any end-user on its own
behalf or on behalf of Buyer (Level I Technical Support). Seller will provide
technical support during the term of this Agreement in accordance with the terms
of this Agreement, except that Seller shall not be obligated to provide support
for any change in Seller's specifications of the Modems as set forth in Annex B
(the "Product Specifications") requested by the Buyer to the extent that this
change proposed by Buyer is not incorporated into the standard Modems sold by
Seller.

4.      REPRESENTATION, WARRANTY and indemnification.

        4.1 Seller represents and warrants that no additional Federal Trade
Commission certification or CDPD carrier certification or other governmental
certification is required for the Modems. If either certification becomes
necessary for the sale of the Modems, Seller shall immediately stop delivery of
the Modems. Seller shall make the necessary changes to certify the Modems and
all previously delivered Modems shall be retrofitted to meet the certified
configuration.

        4.2 Seller also represents and warrants that it is entitled to enter
into this Supply Agreement and that Seller's performance according to the terms
of this Supply Agreement shall not violate any other agreement to which Seller
is a party. Seller shall, at its sole cost and expense, indemnify, defend and
hold Buyer harmless from and against any claims, demands, liability or suit,
including costs and expenses, for or by reason of any actual or alleged breach
of this warranty in this Section 4.2.

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        4.3 General Indemnity. Seller agrees to indemnify and hold Buyer
harmless of and from any and all loss, cost, claim, liability, suit, judgment or
expense, including reasonable attorneys' fees, arising out of any breach of the
above described warranties.

        4.4 No Infringement. Seller warrants that the computer software provided
by Seller with the Modems to Buyer (the "Program"), and accompanying
Documentation, referred to in this Agreement do not violate or infringe any
patent, copyright, trademark, trade secret or other proprietary right of any
third party and that Seller is not aware of any facts upon which such a claim
for infringement could be based.

        4.5 Infringement Indemnity.

            (a) Seller will defend any claim, suit, or proceeding brought
against Buyer or its customers insofar as it is based on a claim that the
Program or Documentation, or any part thereof, furnished by Seller under this
Agreement constitutes an infringement of any third party's patent, copyright,
trademark, trade name, other proprietary right, or unauthorized trade secret
use; provided that Seller is notified promptly in writing of such claim, and
given authority, information and assistance (at Seller's expense) to handle the
claim or the defense of any suit or proceeding. Seller agrees to pay damages and
costs awarded therein against Buyer and its customers but only to the extent
such damages and costs are directly attributable to infringement caused by the
Program or Documentation which is provided by Buyer to Seller. Notwithstanding
the foregoing, Seller's total liability under this Section shall not exceed the
total amounts actually paid by Buyer to Seller under this Supply Agreement.

            (b) In case any Program or Documentation or any part thereof in such
suit is held to constitute an infringement and its use is enjoined, Seller
shall, at its own expense and at its option (i) procure for Buyer and its
customers the right to continue use, or (ii) if applicable, replace the same
with a noninfringing program and documentation of substantially equivalent
function and performance, or (iii) modify them so they become noninfringing
without detracting substantially from function or performance.

            (c) Notwithstanding the foregoing, Seller shall have no
responsibility for claims arising from (i) unauthorized modifications of the
Program made by Buyer or its customers if such claim would not have arisen but
for such modifications, or (ii) unauthorized combination or use of the Program
with products not contemplated herein if such claim would not have arisen but
for such combination or use.

5.      TERM; TERMINATION; RIGHTS AND OBLIGATIONS UPON TERMINATION.

        5.1 Except as otherwise provided for herein, the term of this Agreement
shall be for the period set forth on Annex D, unless terminated earlier by
either party pursuant to the provisions of this Section 5 or extended by mutual
written agreement of the parties.

        5.2 Notwithstanding the foregoing, the following provisions shall
continue in effect after termination of this Agreement in accordance with their
terms:

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            (a) All payment provisions to the extent unpaid at the time of
termination shall be paid in accordance with the terms of this Agreement.

            (b) All warranties specified in the Agreement.

            (c) Sections 2.1 and 2.2 (Trademarks).

            (d) Section 5.6 (Commitment Termination Event).

            (e) Sections 9.1 and 9.2 (Confidentiality and Advertising).

            (f) Section 9.3 (Confidential Information).

            (g) Section 9.8 (Applicable Law).

        5.3 Buyer's Right to Terminate. Buyer shall have the right, by providing
Seller with thirty (30) days' prior written notice, to terminate this Agreement
upon the occurrence of any of the following events, any one of which shall be
considered a "Seller Default":

            (a) Seller discontinues the Modems;

            (b) Seller is adjudged bankrupt;

            (c) Seller files a voluntary petition in bankruptcy or liquidation
or for the appointment of a receiver;

            (d) Filing of an involuntary petition to have Seller declared
bankrupt, or subject to receivership, provided that such petition is not vacated
or set aside within ninety (90) days from the date of filing;

            (e) The execution by Seller of any assignment for the benefit of
creditors; or

            (f) Seller breaches any material provision of this Agreement and
fails to cure such material breach within thirty (30) days from receipt of
written notice describing the breach.

            (g) Seller, after receiving written notice from Buyer, fails to make
product deliveries as provided in this Agreement, unless such failure is cured
within thirty (30) days of Seller receiving such written notice from Buyer.

        5.4 Seller's Right to Terminate. Seller shall have the right, by
providing Buyer with thirty (30) days' prior written notice, to terminate this
Agreement upon the occurrence of any of the following events, any one of which
shall be considered a "Buyer Default":

            (a) Buyer fails to make payments as provided in this Agreement,
unless such failure is cured within thirty (30) days from receipt of written
demand for such payment. Any late payments shall bear interest at the annual
rate of ***;

            (b) Buyer is adjudged bankrupt;

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

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            (c) Buyer files a voluntary petition in bankruptcy or liquidation or
for the appointment of a receiver;

            (d) Filing of an involuntary petition to have Buyer declared
bankrupt, or subject to receivership, provided that such petition is not vacated
or set aside within ninety (90) days from the date of filing;

            (e) The execution by Buyer of any assignment for the benefit of
creditors; or

            (f) Buyer breaches any material provision of this Agreement and
fails to cure such material breach within thirty (30) days from receipt of
written notice describing the breach.

        5.5 Remedy Upon Default. In the event that this Agreement is terminated
pursuant to Section 5.3 or 5.4 above, both parties shall have the right to
exercise any and all rights surviving such termination pursuant to Section 5.2.

        5.6 Commitment Termination Event. In the event of a Commitment
Termination Event, Buyer shall, as soon as practicable and in no event later
than five (5) days after the occurrence of such Commitment Termination Event,
pay Seller, ***. Seller agrees to use commercially reasonable efforts to dispose
of or otherwise use excess finished product in an effort to reduce any residual
amount owed to Seller. "Commitment Termination Event" means (i) the failure by
Buyer to purchase Modems in the amounts set forth in Section 1.1 ("Sale and
Purchase") hereof pursuant to the schedule of payment and delivery set forth in
the Delivery Schedule (Annex C); (ii) termination of this Agreement by Buyer for
any reason whatsoever other than pursuant to an uncured material breach by
Seller; (iii) any uncured material breach by Buyer of any representation,
covenant or agreement on the part of Buyer set forth in this Agreement, and
subsequent termination of this Agreement by Seller for such breach. ***

6.      PRODUCT WARRANTY.

        6.1 Product Warranty. The following Sections 6.l through 6.6 refer only
to Product Warranty.

            (a) Seller warrants that all Modems, including components thereof,
to be delivered hereunder, will conform substantially to the Product
Specifications and be free from defects in material and workmanship. The
foregoing warranty is given provided Buyer gives written notice of any defect,
deficiency or non-conformance of any Modem, or parts thereof, within: (i) ***
from the purchase date by the end-user/consumer (the "Warranty Period"). Seller
shall, at no cost to Buyer, and within the "Turn-Around Time" as defined in
Section 6.2(a) below, repair or furnish replacements for all such defective,
deficient or non-conforming items or parts thereof; provided, however, the
Modems have been maintained in accordance with Seller's specifications and have
not been modified by any party other than Seller except as expressly permitted
by Seller in writing.

            (b) The foregoing warranties do not extend to:

                (i) defects, errors or nonconformities in a Modem due to
accident, abuse, misuse or negligent use of such Modem or use in other than a
normal and customary

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

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manner, environmental conditions not conforming to Seller's specifications, or
failure to follow prescribed operating maintenance procedures;

                (ii) defects, errors or nonconformities in the Modem due to
modifications, alterations, additions or changes in the Modem not made or
authorized to be made by Seller in writing;

                (iii) normal wear and tear; or

                (iv) damage caused by force of nature or act of any third party.

        6.2 Turn-Around Time.

            (a) "Turn-Around Time" for the purposes of this Section 6 means ***
from the date on which such defective item, or defective or non-conforming part
thereof, is furnished to Seller, for repair or replacement until the date on
which such replaced or repaired item is returned to Buyer.

            (b) Seller shall bear air shipment costs of the deficient, repaired
or replaced item as well as the risk or loss or damage to the item or its
replacement throughout the period between the shipment of the defective item and
the receipt of the repaired or replaced item. Repaired or replaced items shall
be subject to the warranty provided on the original finished product only (the
time during which Seller repairs or replaces the item shall not be considered as
part of the Warranty Period), in accordance with this Section 6. Notwithstanding
the foregoing, Buyer shall bear all expenses if no fault on the part of Seller
was found in the items returned for repair or replacement.

        6.3 Inspection; Acceptance. This warranty shall survive inspection,
acceptance or payments by Buyer and is provided for the sole and exclusive
benefit of Buyer and shall not extend to any third party, including without
limitation, any reseller or end-user.

        6.4 Exclusive Remedy. The warranty granted in this Section 6 sets forth
Buyer's sole and exclusive remedy and Seller's sole and exclusive liability for
any claim of warranty for any product delivered by Seller.

        6.5 No Authority. Buyer acknowledges that it is not authorized to make
any warranty or representation on behalf of Seller or its suppliers regarding
the Modems, whether express or implied, other than the warranty terms set forth
in this Section 6.

        6.6 Year 2000 Compliance. Novatel Wireless hereby warrants that the
Software included as part of the overall product is Year 2000 Compliant; "Year
2000 Compliant" shall be defined as having the capability to (i) correctly
process date field dependent logic to accurately process and utilize any date
prior to and any date after December 31, 1999; and (ii) store and represent
dates in a manner which enables the user to easily identify or use the century
portion of any date fields without any special processing.

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

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        6.7 No Other Warranty. THE WARRANTY MADE UNDER THIS SECTION 6 IS
EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING,
WITHOUT LIMITATION, ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE.

7.      LIMITATION OF LIABILITY.

        SELLER SHALL NOT BE LIABLE FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL,
INDIRECT OR PUNITIVE DAMAGES (INCLUDING LOST REVENUES OR PROFITS) OF ANY KIND
DUE TO ANY CAUSE, REGARDLESS OF WHETHER SELLER HAS BEEN ADVISED OR IS AWARE OF
THE POSSIBILITY OF SUCH DAMAGES.

8.      FORCE MAJEURE.

        8.1 Events of Force Majeure. Neither party shall be liable for a default
or delay in the performance under this Agreement if and to the extent such
default or delay is caused, directly or indirectly, by (i) fire, flood, natural
disturbances or other acts of God; (ii) any outbreak or escalation of
hostilities, war, civil commotion, riot or insurrection; (iii) any act or
omission of the other party or any governmental authority or (iv) any other
similar causes beyond the control of such party that arise without the fault or
negligence of such party. Any delay resulting from such events shall be referred
to herein as a "Force Majeure," shall not constitute a default by such party
under this Agreement and shall entitle the delayed party to a corresponding
extension of its delayed obligation. The party whose performance will be delayed
by such events will use its best efforts to notify the other party within three
(3) days after delayed party becomes aware of such event, as well as the
cessation thereof.

        8.2 Subcontractor's Default. Any delays in performance by Seller's
subcontractors or suppliers shall be deemed excusable delays with respect to
Seller only if (i) such subcontractor's non-performance is caused by Force
Majeure and (ii) Seller could not have obtained the supplies or services of such
subcontractor from other sources in sufficient time and on customary terms to
prevent interruption of Seller's performance of this Agreement.

        8.3 Termination.

            (a) If Force Majeure results in a delay to make any scheduled
delivery under this Agreement by more than sixty (60) days, Buyer may terminate
this Agreement in whole or in part and such termination shall not be deemed a
breach of this Agreement.

            (b) If Buyer does not terminate within such sixty (60) day period,
and the Force Majeure prevails for further forty-five (45) days, Buyer may
terminate this Agreement, but it shall have no right to claim damages from
Seller for breach of the Agreement. The foregoing expresses Buyer's sole remedy
and Seller's sole liability for such termination resulting from Force Majeure.

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9.      MISCELLANEOUS.

        9.1 Confidentiality of Agreement; Permitted Disclosures. Throughout the
term of this Agreement, each party agrees that the terms of this Agreement shall
be kept confidential. No disclosure of the identity of Buyer's customers or
end-users or other information concerning this Agreement shall be released by
Seller without the prior written consent of Buyer except in Seller's or Buyer's
communication with its respective shareholders, investors or potential
investors.

        9.2 Required Disclosures; Advertising. Notwithstanding Section 9.1
above:

            (a) Each party may divulge information hereunder as is reasonably
required for the performance of the Agreement or as is required by law; and

            (b) Each party shall have the right to list the other party as a
customer or supplier (as the case may be) in its advertising material.

        9.3 Confidential Information.

            (a) In performance of this Agreement, it may be necessary or
desirable for either party to disclose to the other certain business and/or
technical information which the disclosing party regards as proprietary and
confidential (the "Confidential Information"). Any Confidential Information
disclosed shall be reduced to writing and provided to the other party within
twenty (20) days after it was first disclosed. The disclosing party shall make
commercially reasonable efforts to mark all tangible embodiments of Confidential
Information with an appropriate confidentiality legend. Each of the parties
hereto agree that it shall (i) not make use of or disclose the Confidential
Information for any purpose whatsoever at any time, other than for the purposes
of this Agreement and (ii) limit access to the Confidential Information of the
other party to its employees and contractors who shall be advised of and agree
to be subject to the terms of this Section 9.3.

            (b) Nothing herein shall be construed as granting to either party,
by implication, estoppel or otherwise, any right, title or interest in, or any
license under, any patent or Confidential Information.

            (c) Items shall not be considered Confidential Information if such
information was (i) available to the public other than by a breach of an
agreement with the disclosing party; (ii) rightfully received from a third party
not in breach of any obligation of confidentiality; (iii) independently
developed by one party without access to the Confidential Information of the
other; (iv) known to the recipient at the time of disclosure; or (v) produced in
compliance with applicable law or a court order, provided that other party is
given reasonable notice of such law or order and an opportunity to attempt to
preclude or limit such production.

        9.4 Severability. If any provision of this Agreement shall be held
illegal or unenforceable, that provision shall be limited or eliminated to the
minimum extent necessary so that this Agreement shall otherwise remain in full
force and effect and enforceable.

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        9.5 Assignment. Neither Seller nor Buyer may assign this Agreement in
whole or in part, or any rights hereunder without the prior written consent of
the other, except to (i) a wholly-owned subsidiary of such party, (ii) a
successor in interest of all or substantially all of such party's assets or
business or (iii) a bank trust company or other financial institution for money
due or to become due under this Agreement. In the event of any assignment, the
assigning party shall promptly supply the other party with two (2) copies of
such assignment and, in the instance of an assignment pursuant to this Section
9.5, shall indicate on each invoice to whom payment is to be made. In the event
of any assignment pursuant to this Section 9.5, the assigning party also shall
provide a written guarantee by such party of the obligations assigned to such
party's subsidiary.

        9.6 Relations of the Parties. Nothing in this Agreement shall be
construed as creating relationship of principal and agent or of employer and
employee between the parties. Furthermore, nothing in this Agreement is intended
to constitute, create, give effect to or otherwise contemplate a joint venture,
partnership or formal business entity of any kind. The rights and obligations of
the parties with respect to this Agreement shall not be construed as providing
for sharing of profits or losses arising out of the effort of either of the
parties. The parties shall not incur any liability on behalf of the other.

        9.7 Waiver. No waiver by either Seller or Buyer of any breach of this
Agreement shall be held to be a waiver of any other subsequent breach. No waiver
or time extension given by either Seller or Buyer shall have effect unless made
expressly and in writing.

        9.8 Applicable Law. This Agreement and all matters regarding the
interpretation and/or enforcement hereof shall be governed exclusively by the
law of the State of California without reference to its choice of law rules.

        9.9 Entire Agreement. This Agreement constitutes the entire agreement
between the parties, supersedes and cancels any previous understandings or
agreements between all the parties relating to the provisions hereof, and
expresses the complete and final understanding of the parties in respect
thereto. This Agreement may not be changed, modified, amended or supplemented
except by a written instrument signed by the parties.

        9.10 Notices. Any notice contemplated by or made pursuant to this
Agreement shall be in writing and shall be deemed delivered on the date of
delivery if delivered personally or by commercial overnight courier with
tracking capabilities or by fax, or five (5) days after mailing if placed in the
mail, postage prepaid, registered or certified mail, return receipt requested,
addressed to Buyer or Seller (as the case may be) as follows:

                    Seller:     Novatel Wireless, Inc.
                                9360 Towne Centre Drive
                                Suite 110
                                San Diego, CA  92121
                                Attn:  Bruce Gray, Vice President of Sales
                                and Marketing

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                     Buyer:      Hewlett-Packard Company
                                 3000 Hanover Street
                                 Palo Alto, CA 94304
                                 Attn:  General Counsel

or such other address as each party may designate for itself by notice given in
accordance with this Section 9.10.

        9.11 Headings. The headings in this Agreement are for convenience only
and shall not be regarded in the interpretation hereof.

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement to
be effective as of the Effective Date written above.

                           SELLER: NOVATEL WIRELESS, INC.

                           By:       /s/ BRUCE GRAY
                              ------------------------------------------------
                               Name: Bruce Gray
                               Title: Vice President of Sales and Marketing

                           BUYER:  HEWLETT-PACKARD COMPANY

                           By:       /s/
                              -------------------------------------------------
                               Name:
                               Title:

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ANNEX A; TECHNICAL SUPPORT

Technical Support for the H.P. Jornada 540 series modem cradle Product delivered
to Hewlett Packard customers will be managed via a three-tier Technical Support
infrastructure and process as follows:

LEVEL ONE TECHNICAL SUPPORT

        Level one Technical Support will be provided by Hewlett Packard to their
        direct and indirect customers. Level one support is defined as calls*
        originating from Hewlett Packard customers, resellers or distributors
        regarding H.P. Jornada 540 series modem cradle products including but
        not limited to pre and post sale inquiries concerning the basic
        operation of the hardware and software, functionality, interoperability
        and capabilities of those products and services.

        For calls regarding the H.P. Jornada 540 series modem cradle products,
        Hewlett Packard will make every attempt to answer customer questions and
        resolve issues using available tools, documentation, test equipment and
        other materials used to support the H.P. Jornada 540 series modem cradle
        products (see training section below). If the customer question/issue
        regarding the H.P. Jornada 540 series modem cradle product cannot be
        resolved by Hewlett Packard support personnel to the customers'
        satisfaction, the issue will be forwarded to Seller level two Technical
        Support for further investigation and resolution.

        *Calls include phone calls, e-mail, web-based inquiries, faxes and
        letters.

LEVEL TWO TECHNICAL SUPPORT

    Level two Technical Support will be provided by Seller support staff
    directly to Hewlett Packard level one support personnel to assist in the
    resolution of open customer issues that have not been resolved to Hewlett
    Packard customers satisfaction during a level one support call. Hewlett
    Packard will have direct access to designated support staff within the
    Seller support organization for this purpose. A direct line of communication
    between the two organizations will be established and Seller support
    technicians will be available during normal Hewlett Packard Technical
    Support operation hours to assist in resolution of customer problems. Seller
    support engineering will work directly with Hewlett Packard support staff to
    resolve issues and answer questions, this may require Hewlett Packard
    support staff to gather additional information and provide system
    information or test results back to Seller

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    support staff to aid in the definition and resolution of the problem It will
    be Hewlett Packard support staff's responsibility to communicate directly
    with the end-user customer. Problems that are not resolved WITHIN 72 HOURS
    or problems that are flagged as sensitive/mission critical will be escalated
    to level three Technical Support for final resolution.

LEVEL THREE TECHNICAL SUPPORT (ESCALATION)

    Level three Technical Support will be provided by Seller support and system
    engineering staff to resolve issues that cannot be satisfactorily resolved
    by level one and level two support personnel. Level three support will
    handle all Hewlett Packard product escalations issues including unresolved
    support calls and will work directly with Seller engineering staff to
    resolve those issues.

TECHNICAL SUPPORT TRAINING

    Technical Support training and documentation for the H.P. Jornada 540 series
    modem cradle will be provided to Hewlett Packard level one support staff by
    Seller. Hewlett Packard support staff will receive training on the general
    use, functionality, operation and compatibility of the Seller H.P. Jornada
    540 series modem cradle products. In addition all support related
    documentation, training materials, notes, FAQ's, and web based support
    materials will be made available to Hewlett Packard for their use in
    supporting these products.

<PAGE>   14

ANNEX B; PRODUCT SPECIFICATIONS

HARDWARE AND SOFTWARE DESCRIPTIONS

***

PRODUCT FEATURES DESCRIPTION

***

FEATURE SET DETAILS

***

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

<PAGE>   15

***

***

***

***

***

***

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

<PAGE>   16

***

***

***

***

***

***

***

***

***

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

<PAGE>   17

***

***

***

HARDWARE SPECIFICATIONS

        ***

HARDWARE SPECIFICATION DETAILS

***

***

*Certain information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>   18

***

***

***

***

***

*Certain information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>   19

3.  INDUSTRIAL DESIGN

***

Overview:

        ***

Features:

        ***

*Certain information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>   20

Specifications:

***

CDPD PC CARD
Product Description

Overview:
        This is a Type II PC Card based on the CDPD specifications and designed
        to work with a Windows laptop or handheld PC. It is wireless modem based
        on digital packet technology and allows high-speed data communication on
        a world recognized wireless standard.

Features:

        -  Operation in all CDPD environments.

        -  capable of power output at .6 watts

        -  size is compatible with Type II PC Card (PCMCIA)

        -  CDPD technology allows for over the air download of data at 19.2Kbps
           nominally

        -  Over the Air programming is available for user feature implementation

        -  Application Software available for setup, configuration, operation
           and status monitoring of the PC Card

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

<PAGE>   21

***

Specifications:

***

*Certain information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>   22

ANNEX C; FORECAST AND DELIVERY SCHEDULES

PRODUCT MANUFACTURING AND FORECASTING: Hewlett Packard will need to submit a ***
forecast to Novatel Wireless. The forecast for the *** of shipments shall be
given *** days in advance of the scheduled production date and will be
considered fixed. After the forecast for first *** of shipments is submitted to
Novatel Wireless, forecast changes may be made as follows for the remaining
months:

               ***

NOTE: Hewlett Packard can reserve the right to provide forecasting for the
consumption of the entire volume commitment (product mix and quantity) by
providing a minimum of *** advance notice.

DEVELOPMENT AND DELIVERY SCHEDULE: The schedule below indicates the total
development time (time-to-market) for all versions of the cradle starting from
the date the agreement is signed to the date when volume quantities are shipped
to Hewlett Packard's designated point of distribution. Development of all
devices will begin once an agreement between the two parties is signed.

The schedule is detailed as follows (Time listed in months ARO):

                                            CDPD                 ***

               ***

FORECAST BEGINNING WITH FIRST MONTH'S AVAILABILITY:

               ***

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

<PAGE>   23

               ***

Novatel Wireless, during the term of this Agreement, for all H.P. Jornada series
540 modem cradles that are shipped through Novatel Wireless channels, will
bundle collateral marketing and advertising materials and any other related
collaterals, electronic or otherwise which are supplied by Hewlett-Packard or
Hewlett-Packard partners.

For each H.P. Jornada series 540 modem cradle shipped by Novatel Wireless to
Hewlett-Packard pursuant to this Agreement, Novatel Wireless will provide
Hewlett-Packard on a monthly basis with all EID Numbers for such modem cradles.

*Certain information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>   24

ANNEX D; PRODUCT PRICING AND VOLUME COMMITMENTS

VOLUME COMMITMENT: *** units between H.P. Jornada 540 series modem cradle and PC
Card form factors using either CDPD or *** technologies.

TERM: One year beginning from the first revenue *** H.P. Jornada 540 series
modem cradle Cradle modem shipment to Hewlett Packard from Novatel Wireless.

DISTRIBUTION: ***

UNIT PRICING: Unit pricing for the H.P. Jornada 540 series modem cradle cradle
is as follows:

Quantity:             ***

***                   ***

CDPD                  ***

Unit Pricing for the Type II PCMCIA cards is as follows:

***                   ***

CDPD                  ***

DEVELOPMENT FEE:

Hewlett-Packard agrees to provide a product development fee of *** to Novatel
Wireless. One payment of *** shall be made by Hewlett-Packard to Novatel
Wireless upon execution of this Agreement and a second payment of *** shall be
made one week prior to the first manufacturing run for the products.

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.<PAGE>   1
                                                                   EXHIBIT 10.11

        TECHNOLOGY LICENSE, MANUFACTURING AND PURCHASE AGREEMENT

        THIS TECHNOLOGY LICENSE, MANUFACTURING AND PURCHASE AGREEMENT, (the
"Agreement") is entered Into as of the 13th day of October, 1999, (the
"Effective Date") by and between METRICOM, INC., a Delaware corporation, with
its principal offices at 980 University Avenue, Los Gatos, California 95030-2375
("Metricom") and NOVATEL WIRELESS, INC., a Delaware corporation, with its
principal offices at 9360 Towne Centre, Suite 110, San Diego, CA 92121
("Novatel").

        WHEREAS, Metricom has developed a Network; and

        WHEREAS, the parties desire to enter into an agreement regarding
Metricom's Network whereby Novatel will develop Network interoperable and
compatible Modem as a product; and

        WHEREAS, Novatel wishes to obtain from Metricom a technology license to
use Metricom's technology and incorporate the Licensed Technology into a Modem;
and

        WHEREAS, Metricom is prepared to grant such a license upon the
terms and conditions of this Agreement; and

        WHEREAS, the parties now desire to enter into an agreement whereby
Novatel will manufacture the Modem; and

        WHEREAS, Novatel wishes to supply such Modem to the general marketplace,
Metricom's Designee(s) or Metricom; and

        WHEREAS, Metricom wishes Novatel to supply Modems built to the
Specifications to Metricom's Designee(s) or Metricom.

        NOW THEREFORE, in consideration of the foregoing and the covenants and
premises contained in this Agreement, the parties agree as follows:

PART I: DEFINITIONS

        1. DEFINITIONS. As used herein, capitalized terms will have the meanings
set forth below.

               1.1 "ACCEPTANCE CERTIFICATE" means a document issued by Metricom
confirming that a Modem shipment meets all applicable Specifications.

               1.2 "CONFIDENTIAL INFORMATION" means any confidential or
proprietary information, including without limitation any source code, software
tools, designs, schematics, plans or any other information relating to any
research project, work in process, future development, scientific, engineering,
manufacturing, marketing or business plan or financial or personnel matter
relating to either party, its present or future products, sales, customers,
employees, investors or business, identified by the disclosing party as
Confidential Information, whether in oral, written, graphic or electronic form.
If disclosed in oral form, such Confidential

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
<PAGE>   2
Information must be reduced to writing and marked as Confidential Information
within 30 days following disclosure.

               1.3 "DESIGNEE" means a Metricom partner approved, in writing, by
Metricom.

               1.4 "EFFECTIVE DATE" means the date first mentioned above.

               1.5 "FCC" means the Federal Communications Commission.

               1.6 "LICENSED TECHNOLOGY" means the Metricom Know-how, Metricom
Patents, Metricom Technology, Metricom Improvements and the Specifications.

               1.7 "METRICOM KNOW-HOW" means techniques, inventions, practices,
methods, knowledge, skill, experience, test data and cost, sales and
manufacturing data relating to the manufacture of the Modem which Metricom
discloses to Novatel under this Agreement, including without limitation any
technology developed by either party on behalf of Metricom.

               1.8 "METRICOM PATENTS" means the existing patents and patent
applications listed on Exhibit B hereto and such patents obtained and patent
applications filed by Metricom relating to the patents listed on Exhibit B, and
improvements thereto, including without limitation, all foreign counterparts,
all substitutions, extensions, reissues, renewals, divisions, continuations and
continuations in part relating to such Metricom Patents and their foreign
counterparts.

               1.9 "METRICOM SOFTWARE" means certain software developed by
Metricom and embedded in the Modem, and such additional or modified software
features and functions that Metricom may specify from time to time pursuant to
this Agreement.

               1.10 "METRICOM SPECIFICATIONS" means the performance, usage and
form factor specifications written by Metricom to which the Guaranteed Volume of
Modems will conform. Such Metricom Specifications shall be attached as Exhibit D
hereto upon completion of development of such Metricom Specifications, which
shall not be later than thirty (30) days from the execution of this Agreement.

               1.11 "METRICOM TECHNOLOGY" means (a) the inventions, discoveries
and processes covered under the Metricom Patents and (b) the Metricom Know-how.

               1.12 "MODEM" means a portable 900 MHz-enabled data device
interoperable and compatible with Metricom's Ricochet2 data network to be custom
developed and manufactured by Novatel.

               1.13 "NETWORK" means Metricom's Ricochet network.

               1.14 "NETWORK SPECIFICATIONS" means the software, firmware and
hardware performance and usage specifications for the Network as written by
Metricom with which the Modem must be interoperable and compatible. Such Network
Specifications shall be attached as Exhibit C hereto within thirty (30) days
from the execution of this Agreement.

                                      -2-
<PAGE>   3
               1.15 "NOVATEL KNOW-HOW" means techniques, inventions, practices,
methods, knowledge, skill, experience, test data and cost, sales and
manufacturing data relating to those parts that may be specified for inclusion
in the Modem as set forth in Exhibit A.

               1.16 "NOVATEL PATENTS" means the existing patents and patent
applications listed on Exhibit B hereto and such patents obtained and patent
applications filed by Novatel relating to the patents listed on Exhibit A, and
improvements thereto, including without limitation, all foreign counterparts,
all substitutions, extensions, reissues, renewals, divisions, continuations and
continuations in part relating to such Novatel Patents and their foreign
counterparts.

               1.17 "NOVATEL TECHNOLOGY" means the inventions, discoveries and
processes relating to those parts that may be specified for inclusion in the
Modem as set forth in Exhibit A.

               1.18 "NRE COSTS" means foundry, non-recurring engineering and
development costs associated with this Agreement.

               1.19 "SPECIFICATIONS" means the Network Specifications and the
Metricom Specifications.

               1.20 "ROYALTIES" means those royalties payable by Novatel to
Metricom pursuant to this Agreement.

               1.21 "THIRD PARTY SOFTWARE" means any software that belongs to a
third party which is used in the Network and is licensed to Metricom for such
use.

PART II: TECHNOLOGY LICENSE, DEVELOPMENT AND MANUFACTURING

        2. LICENSE GRANTS.

               2.1 METRICOM LICENSE GRANT.

                      (a) TECHNOLOGY LICENSE. Subject to the terms and
conditions of this Agreement, Metricom hereby grants to Novatel during the term
of this Agreement a nonexclusive, non-transferable, royalty bearing license,
without right to sublicense, under the Licensed Technology, to develop,
manufacture, market and sell the Modem for use with the Network.

                      (b) METRICOM SOFTWARE LICENSE. During the term of this
Agreement and subject to the terms and conditions of this Agreement, Metricom
grants to Novatel a nonexclusive, non-transferable license, without right to
sublicense, to reproduce and embed the Metricom Software in object code form
only in the Modem. Except as expressly stated in this Agreement, no rights to
prepare derivative works, perform, display or distribute the Metricom Software
are granted hereunder.

                      (c) SOURCE CODE. Should Novatel require it and subject to
the terms and conditions of this Agreement, Metricom may disclose to Novatel the
source code for the Metricom Software for purposes of enabling Novatel to port
the Metricom Software to the

                                      -3-
<PAGE>   4
Modem. Any disclosure of source code, and all notes made by Novatel pertaining
thereto, shall be treated as Metricom's Confidential Information pursuant to the
terms of this Agreement.

                             (i) Novatel shall not make any changes to the
source code other than those changes necessary to run the Metricom Software on
hardware platforms other than as originally developed. Novatel shall provide
Metricom with an electronic copy (ASCII text) of the updated source code in the
event it makes any changes.

                             (ii) Except as needed to port the Metricom
Software as set forth in this Agreement. No copyright rights to reproduce,
prepare derivative works, perform, display or distribute the Metricom Software
in source code format are granted to Novatel hereunder.

                      (d) RESTRICTIONS ON USE. Novatel shall not, and shall not
permit any person within its control, to use the Licensed Technology and the
Metricom Software or any of Metricom's Confidential Information for any other
purpose than as expressly set forth in this Agreement.

               2.2 NOVATEL LICENSE GRANT. Subject to the terms and conditions of
this Agreement, Novatel hereby grants Metricom a non-exclusive, non-
transferable, royalty-free, perpetual and irrevocable right, with right of
sublicense through multiple tiers of distribution, under the Novatel Patents,
the Novatel Technology, the Novatel Know-how and the Novatel Improvements, to
offer to sell, sell and use the Modems.

               2.3 THIRD PARTY SOFTWARE. Should the Metricom Software contain
Third Party Software, Metricom shall, at Novatel's request, assist Novatel in
obtaining the rights to use such Third Party Software. The parties acknowledge
and agree that it is Novatel's obligation to license such Third Party Software.

        3. DEVELOPMENT AND MANUFACTURING.

               3.1 DEVELOPMENT. Upon execution of this Agreement, Novatel shall
begin development of the Modem in accordance with the Network Specifications and
the terms of this Agreement, and for the Guaranteed Volume, also in accordance
with the Metricom Specifications. Prior to manufacturing, Novatel shall provide
a reasonable quantity of a prototype Modem along with an electronic copy (ASCII
text) of the software source code including release notes to Metricom for
acceptance testing. Novatel shall not commence manufacturing prior to Metricom's
written acceptance of the prototype Modem.

               3.2 MANUFACTURING. Novatel shall custom-manufacture, assemble,
test, label, package (includes plastic or other material housing including
retail packaging with approved use of Ricochet brand) and deliver the Modem in
accordance with the Network Specifications and the terms of this Agreement, and,
for the Guaranteed Volume, also in accordance with the Metricom Specifications.

               3.3 MARKET AND USE. For the consideration described in this
Agreement, the parties acknowledge and agree that Novatel shall sell the Modems
only for use on the Network.

               3.4 NRE COSTS.  ***

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

                                      -4-
<PAGE>   5
               3.5 REGULATORY AGENCY APPROVAL. Novatel shall be responsible for
obtaining any regulatory agency approval, including, but not limited to, FCC
approval, for the Modem. Metricom shall, at Novatel's request and expense,
assist Novatel in obtaining FCC approval.

               3.6 MODIFICATIONS REQUESTED BY METRICOM. During the term hereof,
changes to Metricom's Know-how, government regulations (including FCC Part 15
regulations), or other masons may require changes to the Network Specifications
and/or the Metricom Specifications and therefore the Modem.

                      (a) Metricom shall, from time to time, provide Metricom
Software updates to Novatel. Novatel shall incorporate such changes into the
Modem software and make it available to Level I Technical Support providers
within (i) fourteen (14) days of receipt of such update for critical changes;
and (ii) thirty (30) days of receipt of such update for non-critical changes.
Novatel's changes shall be subject to acceptance testing by Metricom.

                      (b) In the event Metricom requests an engineering change
to a Guaranteed Volume Modem, Novatel shall notify Metricom in writing of any
impact on the cost and/or scheduled delivery of such Modem within ten (10)
business days of the receipt of Metricom's written change request. This should
include, but not be limited to, a costed bill of materials, scheduled delivery,
and any additional NRE.

                      (c) Upon receipt by Metricom of such estimate, the parties
shall agree in writing to which such engineering changes shall be made as well
as adjustments, if any, in pricing and delivery schedules and the parties shall
agree in writing upon any such engineering changes prior to their
implementation.

               3.7 MODIFICATIONS BY NOVATEL. Novatel may make changes to the
Modem without Metricom's prior written consent; provided, however, that (i) the
Modem shall continue to meet the specifications of the Network, and the terms of
this Agreement and, for the Guaranteed Volume, also meet the Metricom
Specifications; (ii) Metricom receives an electronic copy (ASCII text) of the
modified source code and any related release notes and documentation and
approves such modifications prior to release to end-users; and (iii) is subject
to acceptance testing by Metricom. Novatel may make changes in design,
components or materials that may have the effect of reducing the cost of
production of the Modem or increase reliability or improve performance or expand
procurement options.

               3.8 UPDATE MECHANISM. Novatel shall provide a mechanism by which
an end-user can update the software in their Modem and shall make it available
to Level I Technical Support providers at the same time it makes the Modem
software, including any updates, available.

               3.9 FUTURE DEVELOPMENTS. The parties envision that Novatel may
develop, custom manufacture, and deliver to the marketplace, Metricom's
Designee(s) or Metricom future generations of the Modems and/or replacement
products, subject to satisfactory performance under this Agreement and future
technical and market conditions.

               3.10 UNIT IDENTIFICATION AND SERIAL NUMBERS. Metricom shall
supply Novatel within a range of individual unit identification and serial
numbers to be applied to units of the

                                      -5-
<PAGE>   6
Modem. Novatel shall incorporate in all Modems and any accompanying
documentation therefor one of the individual Metricom-assigned unit
identification and serial numbers for each such Modem. Such unit identification
and serial number shall be clearly marked and visible externally on each Modem
and encoded in the Metricom Software embedded in each Modem. Novatel shall
provide Metricom with the unit identification and serial number of each Modem it
sells, leases or otherwise puts into use at the time of shipment.

               3.11 DEVELOPMENT SCHEDULE. Total time between execution of this
Agreement and when the first shipment of the Guaranteed Volume shall be made is
*** for development with the first delivery suitable for distribution to
end-users to occur *** after receipt of both Metricom's and the FCC's approval.

               3.12 TESTING. Novatel shall test all Modem deliveries prior to
shipment to confirm conformance with the Network Specifications and the terms of
the Agreement, and additionally, for the Guaranteed Volume, the Metricom
Specifications. Prior to implementation of such testing, Novatel shall submit to
Metricom, and Metricom shall have final approval of, the interoperability and
compatibility test plans. Upon request, Novatel shall provide test data to
Metricom.

               3.13 SUPPORT. Except as provided for in Section 8 of this
Agreement, Novatel shall provide for Levels I, II and III Technical Support as
set forth in Exhibit I attached hereto for Modems which it sells, leases or
otherwise puts into use.

        4. OWNERSHIP AND INTELLECTUAL PROPERTY.

               4.1 OWNERSHIP.

                      (a) Novatel acknowledges and agrees that Metricom
is and shall remain the sole owner of the Metricom Technology, the Metricom
Patents, the Metricom Know-how, the Specifications and the Metricom Software and
any improvements to the Metricom Patents, the Metricom Know-how, the Metricom
Technology, Specifications and Metricom Software (the "Metricom Improvements")
and that Novatel has no rights in or to the Metricom Technology, the Metricom
Patents, the Metricom Know-how, the Specifications or the Metricom Software and
any Metricom Improvements other than the license rights specifically granted
herein.

                      (b) Metricom acknowledges and agrees that Novatel
is and shall remain the sole owner of the Novatel Technology, Novatel Patents
and Novatel Know-how and any improvements to the Novatel Technology, Novatel
Patents and Novatel Know-how (the "Novatel Improvements") and that Metricom has
no rights in or to the Novatel Technology, Novatel Patents and Novatel Know-how
and any Novatel Improvements other than the license rights specifically granted
herein.

               4.2 FUTURE INVENTIONS AND JOINT INVENTIONS. Each party
acknowledges and agrees that any and all discoveries, know-how, inventions,
methods, ideas and the like ("Inventions") made or discovered pursuant to this
Agreement solely by its employees, agents or subcontractors shall be owned
solely by such party and that any and all Inventions made jointly by employees,
agents or subcontractors of each shall be jointly owned (the "Joint
Inventions"),

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

                                      -6-
<PAGE>   7
all as determined in accordance with U.S. laws of inventorship. Notwithstanding
the foregoing, the parties agree that any Inventions made by employees, agents
or subcontractors of either party that result in Metricom Improvements shall be
owned solely by Metricom and licensed to Novatel pursuant to this Agreement.
Novatel shall assign any rights it may obtain in or to such Metricom
Improvements and any patents it obtains for such Metricom Improvements to
Metricom when such Metricom Improvements are first fixed in a tangible medium or
reduced to practice, as applicable. Joint Inventions shall be treated as
Confidential Information of each party.

               4.3 PROPRIETARY RIGHTS NOTICES. Each unit of the Modem and any
accompanying documentation shall include all copyright and proprietary legends
provided to Novatel by Metricom.

        5. TRADEMARKS.

               5.1 Metricom hereby grants Novatel the right to use, and requires
Novatel to place on the Modems and on the packaging for Modems during the term
of this Agreement, the Metricom trademarks and trade names set forth in Exhibit
G hereto (the "Marks") solely to affix the Marks to the Modems in accordance
with the Metricom Corporate Style Guide attached hereto as Exhibit H, the
Network Specifications, and, for the Guaranteed Volume, the Metricom
Specifications or other Metricom requirements. Metricom may alter or replace
such Marks or may revise its policies and guidelines related thereto in its sole
discretion upon ninety (90) day's prior written notice to Novatel. Novatel
hereby admits and recognizes Metricom's exclusive worldwide ownership of such
Marks and the renown of Metricom's Marks. Novatel agrees not to take any action
inconsistent with such ownership and further agrees to take any action, at
Metricom's reasonable expense, including without limitation the conduct of legal
proceedings, which Metricom deems necessary to establish and preserve Metricom's
rights in and to its Marks. Reproductions of Metricom's Mark's, logos, symbols,
etc., shall be true reproductions and done photographically.

        6. ROYALTY. Novatel shall pay Metricom *** on all Modems manufactured
and sold, leased or otherwise put into use by Novatel. ***

               6.1 ***

               6.2 ***

               6.3 ***

                      (a) ***

                      (b) ***

                      (c) ALL PAYMENTS DUE BY NOVATEL SHALL BE MADE TO METRICOM
WITHOUT ANY DEDUCTIONS FOR TAXES, DUTIES, FEES OR CHARGES OF ANY KIND.

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

                                      -7-
<PAGE>   8
               6.4 INSPECTION OF ROYALTY RECORDS.

                      (a) Novatel shall maintain appropriate books of
account and record, in accordance with generally accepted U.S. accounting
principles, which shall include inventory records, and shall make accurate
entries concerning all transactions relevant to this Agreement (the "Records").

                      (b) Metricom shall have the right during the term
and for six (6) years thereafter (or in the event of a dispute during the Term
or within five years thereafter involving in any way the Records, until the
dispute is resolved, whichever is later), on reasonable notice to Novatel to
inspect, examine, take extracts and make copies from Novatel's Records to the
extent necessary to verify the ROYALTY and payments made under this Agreement.

                      (c) If, upon inspection of the Records of
Novatel, Metricom discovers that it did not receive the correct AMOUNT OF
ROYALTIES PAYABLE UNDER THIS AGREEMENT, Metricom shall notify Novatel of such
discovery. In the event Novatel disagrees with such discovery, the parties
shall, acting reasonably and in good faith, work together to resolve such
dispute. Within ten (10) days of receipt of Metricom's notice or, in the case of
dispute within ten (10) days of resolution of such dispute, Novatel shall pay to
Metricom the difference between what was paid and what should have been paid. If
the difference exceeds *** of the amount found by Metricom, then Novatel shall
bear Metricom's reasonable costs in connection with such Inspection, including
all reasonable legal and auditors' fees.

               6.5 OBLIGATION TO PAY. ***

PART III: SUPPLY TO AND PURCHASE OF MODEMS BY METRICOM

        7. MODEM PURCHASES.

               7.1 GUARANTEED VOLUME. Metricom agrees to purchase at least ***
Modems (the "Guaranteed Volume") during the Term of this Agreement. The
Guaranteed Volume may be purchased by either Metricom or its Designee(s). The
Guaranteed Volume shall conform to the Specifications.

               7.2 PILOT TEST. Upon completion of Modem development and
Metricom's written acceptance of a prototype Modem that conforms to the
Specifications, approximately *** from execution of this Agreement, Novatel
shall manufacture and deliver *** Modems, which shall be deducted from
Metricom's initial delivery, to Metricom for use in conducting end-user testing
and soliciting feedback relative to the Modem ("Pilot Test").

                      (a) Metricom shall perform one (1) week of testing at its
facilities to ensure interoperability and compatibility with the Network.

                      (b) Thereafter, Metricom shall identify and supply
qualified end-users with Modems to conduct Pilot Testing for a period of thirty
(30) days.

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

                                      -8-
<PAGE>   9
                      (c) If any necessary changes may be handled in the
firmware or installation software then manufacturing of the Modems may continue
provided that patches for the necessary changes can be effected as part of the
manufacturing process.

               7.3 FORECAST. Metricom shall submit a one-year forecast to
Novatel, attached hereto as Exhibit E. The forecast for the first three months
of shipments shall be given to Novatel at least sixty (60) days in advance of
the scheduled delivery date and shall be considered fixed at sixty (60) days
prior to the delivery date. Thereafter, changes to the forecast for the
remaining months may be made in writing as set forth below, provided, however,
that Metricom shall have the right to forecast for the entire volume guaranteed
within the first six months of shipment by providing seven (7) months advance
notice.

<TABLE>
<CAPTION>
       NUMBER OF DAYS                PERCENT OF CHANGE TO
   ADVANCE WRITTEN NOTICE             FORECASTED VOLUME
   ----------------------            --------------------
<S>                                  <C>
             ***                             ***
             ***                             ***
             ***                             ***
             ***                             ***
</TABLE>

               7.4 PURCHASE ORDERS.

                      (a) Metricom or its Designee(s) agrees to provide Novatel
with binding purchase orders. All purchase orders are binding, and cannot be
cancelled or rescheduled except as set forth In the Agreement. Purchase orders
shall set forth the quantity of Modems ordered, the destination of delivery and
the delivery date required.

                      (b) Should a Metricom Designee(s) place the purchase
order, Novatel shall ship and bill directly to the Metricom Designee(s). During
the term of this Agreement, unless mutually agreed to by Novatel, Metricom and
the Metricom Designee(s), the terms and conditions of this Agreement shall
govern all Metricom Designee(s) purchase orders. Metricom shall inform its
Designee(s) of the terms of this Agreement.

                      (c) Any terms or conditions in any purchase order, sales
acknowledgment or receipt that is different from, inconsistent with or
additional to the terms and conditions of this Agreement that are not expressly
accepted by the other party in writing are void, of no effect, and am hereby
rejected by the parties.

               7.5 DELIVERY. Novatel shall deliver the Guaranteed Volume of
Modems to Metricom or it's Designee(s), in accordance with the Specifications,
the applicable purchase order and the delivery schedule set forth in Exhibit E,
as may be modified from time to time in accordance with this Agreement, to the
location specified in the applicable purchase order provided, however, that:

                                      -9-
<PAGE>   10
                      (a) no deliveries shall occur until Metricom has approved
in writing the Modem's compliance with the Specifications and issued an initial
Acceptance Certificate; and

                      (b) all future deliveries shall also be subject to
acceptance testing by Metricom or its Designee(s) as set forth in this
Agreement.

Title and risk of loss shall pass to Metricom upon Metricom's acceptance of the
Modem shipments. Time is of the essence for all deliveries. Novatel will provide
Metricom or its Designee(s) documentation on all known errors or unresolved
product issues at the time of delivery.

               7.6 ACCEPTANCE TEST PROCEDURES. Novatel shall inspect and test
all Guaranteed Volume Modem deliveries prior to shipment to confirm conformance
with the Specifications. Following receipt of delivery of a Modem shipment,
Metricom or its Designee(s), as specified in the applicable purchase order, may
inspect such shipment for conformance with the Specifications.

                      (a) Upon determination that a shipment does meet
Specifications, Metricom will issue an Acceptance Certificate for such shipment.
Such Acceptance Certificate does not imply acceptance of any other shipment nor
waive the warranty provisions under this Agreement or any other remedy that
Metricom may have for a defective shipment.

                      (b) In the event that a shipment is rejected for failure
to meet Specifications, Metricom or its Designee(s) shall return the shipment at
Novatels expense and provide Novatel with written notification of the shipment's
nonconformity. Novatel shall undertake to repair or replace the shipment or any
nonconforming portion thereof at no charge to Metricom. or its Designee(s) and
resubmit the shipment to Metricom or its Designee(s) within five (5) days of
receipt of the rejected shipment.

        8. MODEM SUPPORT.

               8.1 TECHNICAL SUPPORT TRAINING AND DOCUMENTATION. Novatel shall
provide training and documentation for the Modem to service technicians and
engineering support at Metricom and its Designee(s) which shall be sufficient to
allow Metricom or its Designee(s) to provide Level I Technical Support with
reasonable product knowledge and troubleshooting skills. Training shall include,
but not be limited to, general use, support, troubleshooting, functionality,
operation, interoperability and compatibility of the Modem that is developed and
purchased under this Agreement. In addition, all support related documentation,
troubleshooting tools and materials, test equipment, training materials, notes,
frequently asked questions ("FAQ's"), and web based support materials shall be
made available to Metricom or its Designee(s) for their use in supporting the
Modem. In the event any product changes result in new functionality or change in
operation and compatibility, Novatel shall provide additional training to
Metricom and its Designee(s).

               8.2 SUPPORT LEVELS. Level I, Level II and Level III Technical
Support shall be defined in Exhibit I of this Agreement.

                                      -10-
<PAGE>   11
               8.3 METRICOM SUPPORT OBLIGATIONS.

                      (a) Metricom or its Designee(s) shall, in a diligent
manner consistent with industry practices, provide Level I Technical Support to
their direct end-user(s) for Modems which Metricom or its Designees have
purchased under the terms of this Agreement.

                      (b) If Metricom or its Designee is unable to resolve the
question or issues to Customer's satisfaction, Metricom or its Designee shall
forward the request to Novatel Level II Technical Support for further
investigation and resolution.

                      (c) Upon approval from Novatel, Metricom or its
Designee(s) may refer a Customer directly to Novatel for Level II and Level III
Technical Support.

               8.4 NOVATEL SUPPORT OBLIGATIONS.

                      (a) Novatel support and engineering staff shall provide
Level II and Level III Technical Support directly to Metricom or its Designee(s)
by telephone via a toll free number twenty-four (24) hours a day, seven (7) days
a week for Moderns which Metricom or its Designees have purchased under the
terms of this Agreement. Upon approval from Novatel, Metricom or its Designee(s)
may refer a Customer directly to Novatel for Level II and Level III Technical
Support.

                      (b) Level II Technical Support issues that remain
unresolved longer than *** after notification of the problem or issues flagged
as sensitive or mission critical, shall be escalated to Level III Technical
Support for final resolution.

                      (c) Novatel shall provide written explanation to Metricom
or its Designee of the problem, known symptoms, possible causes, and expected
time for resolution for any Level III Support issue that remains unresolved
longer than *** after escalation to Level III Support.

                      (d) Novatel shall provide Metricom or its Designee(s)
documentation on all known errors or unresolved product issues (i) at the time
of delivery; and (ii) as discovered by Novatel's Level III Support staff after
the initial launch of the Modem.

        9. PRICE AND PAYMENT.

               9.1 PRICE. Metricom shall pay Novatel *** set forth in Exhibit F
attached hereto.

               9.2 DELIVERY. Novatel shall deliver all Modems to Metricom or any
other location Metricom or its Designee(s) shall designate FOB Buyer's Dock.
Novatel shall prepay the freight charges and bill such freight charges to
Metricom for reimbursement by Metricom. Title and risk of loss shall pass to
Metricom upon Metricom's or its Designee(s)'s acceptance of the Modem shipments
as evidenced by an Acceptance Certificate. Metricom or its Designee(s) shall
assume all freight charges which result from expedited shipment dates requested
by Metricom or its Designee(s). The parties acknowledge and agree that time is
of the essence for all deliveries.

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

                                      -11-
<PAGE>   12
               9.3 PAYMENT.

                      (a) All payments for Modems purchased by Metricom under
this Agreement shall be due and payable thirty (30) clays following receipt of
valid invoice.

                      (b) Should Metricom issue the purchase order, invoices
shall accompany applicable Modem shipments or, if the Modem shipments are to be
made to a location other than Metricom's Los Gatos facilities, then such invoice
shall be sent to the Los Gatos facility at the same time the shipment is made to
the alternate destination.

                      (c) Should a Metricom Designee(s) issue the purchase
order, invoices shall accompany the applicable Modem shipment or, if the Modem
shipments are made to a location other than the billing address, then
such-invoice shall be sent to the Metricom Designee(s)'s billing address at the
same time the shipment is made to the alternate destination.

                      (d) The parties acknowledge and agree that Metricom shall
have no obligation, financial or otherwise, for purchase orders made by a
Metricom Designee(s).

               9.4 TAX. Novatel shall separately state on the invoices delivered
to Metricom all taxes applicable to sale of the Modems to Metricom, excluding
any taxes based on the net income of Novatel. Metricom shall pay Novatel any
such properly invoiced and applicable amounts and Novatel shall pay the relevant
taxing authorities any such amounts when due. Novatel hereby indemnifies and
holds Metricom harmless from and against any and all liabilities, penalties, and
amounts due regarding any taxes or fees due to the applicable government not
properly or timely invoiced or paid by Novatel which was the responsibility of
Novatel.

               9.5 FREIGHT. Novatel shall separately stale on the invoices
delivered to Metricom all applicable freight charges, at cost. Metricom shall
pay Novatel any such properly invoiced and applicable amounts.

        10. INCENTIVES AND PENALTIES.

               10.1 ***

               10.2 ***

        11. FUTURE RELATIONSHIPS. In the event Novatel enters into a separate
purchase agreement with other parties, Novatel agrees that (i) ***

PART IV: GENERAL

        12. CONFIDENTIALITY.

               12.1 CONFIDENTIALITY. Each party hereto will maintain in
confidence all Confidential Information disclosed by the other party hereto.
Neither party will use, disclose or grant use of such Confidential Information
except as expressly authorized by this Agreement. To the extent that disclosure
is authorized by this Agreement, the disclosing party will obtain

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

                                      -12-
<PAGE>   13
prior agreement from its employees, agents or consultants to whom disclosure is
to be made to hold in confidence and not make use of such information for any
purpose other than those permitted by this Agreement. Each party will use at
least the same standard of care as it uses to protect its own most confidential
information to ensure that such employees, agents or consultants do not disclose
or make any unauthorized use of such Confidential Information. Each party will
promptly notify the other upon discovery of any unauthorized use or disclosure
of the Confidential Information. Notwithstanding any other provision in this
Agreement to the contrary, the obligations set forth in this section shall
survive any termination or expiration of this Agreement for a period of ten
years thereafter.

               12.2 EXCEPTIONS. The obligations of confidentiality contained in
this section will not apply to the extent that it can be established by the
receiving party by competent proof that such Confidential Information:

                      (a) was already known to the receiving party, other than
under an obligation of confidentiality, at the time of disclosure by the other
party;

                      (b) was generally available to the public or otherwise
part of the public domain at the time of its disclosure to the other party;

                      (c) became generally available to the public or otherwise
part of the public domain after its disclosure and other than through any act or
omission of the receiving party in broach of this Agreement;

                      (d) was disclosed to the receiving party, other than under
an obligation of confidentiality, by a third party which had no obligation to
the other party not to disclose such Information to others.

               12.3 AUTHORIZED DISCLOSURE. Each party may disclose the
Confidential Information to the extent such disclosure is reasonably necessary
in filing or prosecuting patent applications, prosecuting or defending
litigation or complying with applicable governmental regulations, provided that
if such party is required to make any such disclosure of the Confidential
Information it will to the extent practicable give reasonable advance notice to
the other party of such disclosure requirement and, except to the extent
inappropriate in the case of patent applications, will use its best efforts to
secure confidential treatment of such information required to be disclosed. The
parties acknowledge that the sale of the Modem may necessarily disclose
Confidential Information of the parties and the parties agree to use
commercially reasonable efforts to limit such disclosure. In furtherance
thereof, Novatel agrees to provide Metricom a copy of all documentation.

               12.4 OWNERSHIP OF CONFIDENTIAL INFORMATION. All Confidential
Information of a party shall remain the exclusive property of such party, and no
right, title or interest in such information shall be conveyed to the other
party by release of such information to it. Each party receiving such
information agrees to return or destroy all such information upon the written
request of the other party, or upon the reasonable determination by the other
party that the receiving Party no longer has a need for such information. Each
party agrees to notify the other party if it becomes aware of any use of the
information that is not authorized by this Agreement.

                                      -13-
<PAGE>   14
               12.5 INJUNCTIVE RELIEF. Each party acknowledges that, in the
event of a breach of this Section by such party or any of its officers,
directors, agents and/or employees, the other party will suffer irreparable
damages that cannot be fully remedied by monetary damages. Each party therefore
agrees that the other party shall be entitled to seek injunctive relief against
any such breach in any court of competent jurisdiction. The rights of each party
under this Section shall not in any way be construed to limit or restrict its
rights to seek or obtain other damages or relief available under this Agreement
or applicable law.

               12.6 INDEPENDENT DEVELOPMENT. The terms of this Section shall not
be construed to limit a party's right to independently develop or acquire
products which are similar in functionality to those of the other party so long
as such development or acquisition is made without the use of the Confidential
Information of the other Party. Both parties acknowledge that each of them may
currently or in the future be developing information internally, or receiving
information from other parties, that is similar to the Confidential Information
of the other. Nothing in this Agreement will be construed as a representation or
agreement that the receiving party will not develop or have developed for its
products, concepts, systems or techniques that are similar to or compete with
the products, concepts, systems or techniques contemplated by or embodied in the
Confidential Information provided that the receiving party does not violate any
of its obligations under this Agreement.

        13. TERM AND TERMINATION.

               13.1 TERM. This Agreement will commence as of the Effective Date
and, unless sooner terminated as provided hereunder, will terminate two (2)
years from the Effective Date. The term may be extended only upon the mutual
written agreement of the parties.

               13.2 TERMINATION FOR CAUSE.

                      (a) The Agreement and the Metricom licenses granted herein
will terminate prior to the end of the term at the option of the non-breaching
party upon thirty (30) days written notice if the other party breaches or
defaults on any material obligation under this Agreement and fails to cure such
breach or default during such thirty (30) day period. In the event such breach
cannot reasonably be cured within such thirty (30) day period, the breaching
party shall be required to (i) commence curing such breach or default during
such thirty (30) day period and diligently pursue such cure until the breach or
default has been cured; and (ii) and provide written notice to the non-breaching
party of the time required to cure such breach or default.

                      (b) Metricom shall have the right to terminate this
Agreement upon written notice to Novatel in the event Novatel does not agree to
the Specifications for the Guaranteed Volume within sixty (60) days from the
execution of this Agreement. Upon such termination, Metricom will reimburse
Novatel for any expenses related to the development of the Modems incurred prior
to the termination date, ***.

               13.3 EFFECT OF TERMINATION.

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

                                      -14-
<PAGE>   15
                      (a) RESTOCKING FEE. If termination occurs as a result of
Metricom's material breach of the Agreement or upon Metricom's request without
cause, end such termination occurs prior to Metricom's receipt and acceptance of
*** that comply with this Agreement, then Metricom shall pay Novatel, ***.
Without limiting the foregoing, Metricom shall still be responsible for paying
any amounts due under any outstanding purchase orders where Novatel has
delivered and Metricom has accepted such deliveries.

                      (b) DUTIES OF THE PARTIES UPON TERMINATION. Upon any
termination or expiration of this Agreement, Novatel agrees to do the following:
(1) refrain thereafter from representing itself as a distributor or manufacturer
of the Modem; and (2) return to Metricom all tangible items in its possession or
under its control evidencing the Licensed Technology and Confidential
Information of Metricom, including all copies of the Metricom Software, the
source code, modified or otherwise, and any related documentation. Upon any
termination or expiration of this Agreement, Metricom agrees to return to
Novatel all tangible items in its possession or under its control evidencing
Confidential Information of Novatel.

                      (c) LICENSE TERMINATION. Upon any termination or
expiration of this Agreement, all licenses granted by Metricom under this
Agreement shall be terminated. Upon any termination or expiration of this
Agreement, all licenses, except those for Modems delivered to Metricom or its
Designee(s), granted by Novatel under this Agreement shall be terminated.

                      (d) SURVIVAL. Except as set forth in the applicable
section, Sections 1, 2, 3.3, 4, 5, 6.4, 6.5, 7, 12, 14, 15, 16 and 18 shall
survive any termination of this Agreement.

        14. REPRESENTATIONS AND WARRANTIES.

               14.1 REPRESENTATIONS AND WARRANTIES. Each party hereby represents
and warrants:

                      (a) CORPORATE POWER. Such party is duly organized and
validly existing under the laws of the state or county of its incorporation and
has full corporate power and authority to enter into this Agreement and to carry
out the provisions hereof.

                      (b) DUE AUTHORIZATION. Such party is duly authorized to
execute and deliver this Agreement and to perform its obligations hereunder,

                      (c) BINDING AGREEMENT. This Agreement is a legal and valid
obligation binding upon it and enforceable in accordance with Its terms. The
execution, delivery and performance of this Agreement by such party does not
conflict with any agreement, instrument or understanding, oral or written, to
which it is a party or by which it may be bound, nor violate any law or
regulation of any court, governmental body or administrative or other agency
having jurisdiction over it.

               14.2 WARRANTY. Novatel represents and warrants that for a period
of twelve (12) months from the Metricom's or its Designee(s)'s acceptance of a
shipment as evidenced by the Acceptance Certificate, all Modems delivered under
this Agreement shall be free of defects in materials or workmanship and shall
conform with the applicable Specifications. In the event

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

                                      -15-
<PAGE>   16
of a breach of this Warranty, Novatel shall repair or replace the defective
Modem(s) at no additional charge to Metricom or its Designee(s).

               14.3 DISCLAIMER OF WARRANTIES. EXCEPT AS EXPRESSLY PROVIDED
HEREIN, METRICOM HEREBY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND
OR NATURE, WHETHER EXPRESS OR IMPLIED, RELATING TO THE METRICOM TECHNOLOGY, THE
METRICOM SOFTWARE OR THE METRICOM PATENTS, INCLUDING WITHOUT LIMITATION ANY
WARRANTIES OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE. Without limiting the generality of the foregoing, Metricom
expressly does not warrant (i) the patentability of any of the Inventions, or
(ii) the accuracy, safety, or usefulness for any purpose, of the Licensed
Technology or the Modem. Except as set forth in Section 15, Metricom assumes no
liability in respect of any infringement of any patent or other right of third
parties due to any activities of Novatel under this Agreement.

        15. INDEMNIFICATION.

               15.1 INFRINGEMENT INDEMNITY.

                      (a) METRICOM INDEMNITY. Metricom shall indemnify and hold
Novatel harmless and will defend Novatel against any actions based on a claim
that the Technology, Metricom Know-How and Metricom Patents relied upon by
Novatel or the Metricom Software, in the absence of any modifications and not in
combination with any other technology, infringes any patent, copyright or other
proprietary rights of any third party, or misappropriates any trade secret of
any third party.

                      (b) NOVATEL INDEMNITY. Novatel shall indemnify and hold
Metricom harmless from and will defend against any action brought against
Metricom to the extent that it is based on a claim that the manufacture, use or
sale of the Modem infringes any patent, copyright or other proprietary rights of
any third party or misappropriates any trade secret of any third party, but not
to the extent such action is based on the incorporation or use of the
Technology. Metricom Know-How, Metricom Patents relied upon by Novatel or the
Metricom Software in such Modem.

                      (c) INDEMNIFICATION PROCEDURES. An indemnifying party
hereunder shall be liable for any costs and damages to third parties incurred by
the other party which are attributable to any such claims, provided that such
other party (i) notifies the indemnifying party promptly in writing of the
claim, (ii) permits the indemnifying party to defend, compromise or settle the
claim, and (iii) provides all available information, assistance and authority to
enable the indemnifying party to defend, compromise or settle such claim. Any
indemnifying party hereunder shall diligently pursue any defense required to be
rendered hereunder, shall keep the indemnified party informed of all significant
developments in any action defended by the indemnified party, and shall allow
the indemnified party reasonable opportunity to comment upon any settlement
proposed to be entered into by the indemnifying party on behalf of the
indemnified party.

                                      -16-
<PAGE>   17
               15.2 GENERAL INDEMNIFICATION. Both parties agree to indemnify and
save harmless the other party, its subsidiaries, other affiliates, and the
officers, directors, employees, successors and assigns of any of them, from all
costs, damages and expenses including costs of settlement, reasonable attorney's
fees and court costs that arise out of or result from injuries or death to
persons or damage to property, including theft, caused by or on account of
negligence or willful misconduct by the indemnifying party or person furnished
by the indemnifying party.

        16. LIMITATION OF LIABILITY.

               16.1 WAIVER OF CONSEQUENTIAL DAMAGES. IN NO EVENT WILL EITHER
PARTY BE LIABLE TO THE OTHER FOR ANY LOST PROFITS, LOST SAVINGS, OR ANY OTHER
INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES, EVEN IF SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, ARISING OUT OF OR IN CONNECTION WITH
THE GRANTING OR USE OF THE LICENSES HEREUNDER.

               16.2 LIMITATION OF LIABILITY. EXCEPT AS SET FORTH IN THIS
AGREEMENT OR IN THE CASE OF A KNOWING OR WILLFUL VIOLATION OF A PARTY'S OR ANY
THIRD PARTY'S INTELLECTUAL PROPERTY RIGHTS BY EITHER PARTY, NEITHER PARTY'S
TOTAL LIABILITY TO THE OTHER HEREUNDER SHALL EXCEED THE NET AMOUNT PAID BY
METRICOM TO NOVATEL UNDER THIS AGREEMENT.

        17. INSPECTION AND AUDIT. Metricom shall be entitled, at its sole
expense, upon reasonable request and during normal business hours to witness
testing and manufacturing of the Modem at Novatel's facilities and to audit
Novatel's conformance with the Specification conformance test procedures upon
reasonable written notice. Such notice to exceed 72 hours and inspections not to
exceed five business days. Metricom personnel, in conducting such inspections
for audits, shall be bound by the confidentiality provisions set forth herein.

        18. MISCELLANEOUS PROVISIONS.

               18.1 RELATIONSHIP OF THE PARTIES. Neither party is, nor will be
deemed to be, an agent or legal representative of the other party for any
purpose. Neither party will be entitled to enter into any contracts in the name
of or on behalf of the other party, and neither party will be entitled to pledge
the credit of the other party in any way or hold itself out as having authority
to do so. No party will incur any debts or make any commitments for the other,
except to the extent, if at all, specifically provided herein.

               18.2 ASSIGNMENT. Except as otherwise provided herein, neither
this Agreement nor any interest hereunder will be assignable in part or in whole
by either party without the prior written consent of the other; provided,
however, that Metricom may assign this Agreement to its Designee(s). This
Agreement will be binding upon the successors and permitted assigns of the
parties and the name of a party appearing herein will be deemed to include the
names of such party's successor's and permitted assigns to the extent necessary
to carry out the intent of this Agreement. Any assignment which is not in
accordance with this Section will be void.

                                      -17-
<PAGE>   18
               18.3 the disclosing party will obtain prior agreement from its
employees, agents or consultants to whom disclosure is to be made to hold in
confidence and not make use of such information for

               18.4 FORCE MAJEURE. Neither party will be liable to the other for
loss or damages or will have any right to terminate this Agreement for any
default or delay attributable to any fire, floods, earthquake, embargo, war, act
of war (whether declared or not), insurrections, riots, civil commotions,
strikes, lockouts or other labor disturbances, acts of God or act, omission or
delay in acting by any governmental authority other than those regulatory
agencies from whom approval or certification must be obtained or the other
party, if the party affected gives prompt notice of any such cause to the other
party. The party giving such notice will thereupon be excused from such of its
obligations hereunder as it is thereby disabled from performing for so long as
it is so disabled and for 30 days thereafter; provided, however, that such
affected party commences and continues to take reasonable and diligent actions
to cure such cause.

               18.5 GOVERNING LAW AND VENUE. This Agreement is made in
accordance with and shall be governed and construed in accordance with the laws
of the State of California, without regard to conflicts of laws rules. All
disputes arising hereunder not resolved amicably by discussions between the
appropriate representatives of the parties shall be adjudicated in the state and
federal courts having jurisdiction over disputes arising in Santa Clara County,
California, and Novatel hereby consents to the jurisdiction of such courts. The
official language of this Agreement is English.

               18.6 COMPLIANCE WITH LAWS AND REGULATIONS. Each party agrees that
it will comply with all federal, state and local laws and regulations in force
as of the Effective Date.

               18.7 EXPORT CONTROL. The parties acknowledge that the manufacture
and sale of the Modem is subject to the export control laws of the United States
of America, including the U.S. Bureau of Export Administration regulations, as
amended, and hereby agree to obey any and all such laws. The parties agree not
to take any actions that would cause either party to violate the U.S. Foreign
Corrupt Practices Act of 1977, as amended.

               18.8 NOTICES. All notices and other communications hereunder will
be in writing and will be deemed given if delivered personally or by facsimile
transmission (receipt verified), telexed or sent by express courier service, to
the parties at the following addresses (or at such other address for a party as
will be specified by like notice; provided, that notices of a change or address
will be effective only upon receipt thereof): If to Metricom, addressed to:

                             Metricom, Inc.
                             980 University Avenue
                             Los Gatos, CA 95030

                             if to Novatel, addressed to:

                             Novatel Wireless, Inc.
                             9380 Towne Centre
                             Suite 110
                             San Diego, CA 92121

                                      -18-
<PAGE>   19

               18.9 AMENDMENT. No amendment, modification or supplement of any
provision of the Agreement will be valid or effective unless made in writing and
signed by a duly authorized officer of each party.

               18.10 WAIVER. No provision of the Agreement unless such provision
otherwise provides will be waived by any act, omission or knowledge of a party
or its agents or employees except by an instrument in writing expressly waiving
such provision and signed by a duly authorized officer of the waiving party.

               18.11 SEVERABILITY. Whenever possible, each provision of the
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of the Agreement is held to be prohibited
by or invalid under applicable law, such provision will be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of the Agreement.

               18.12 HEADINGS. The section headings appearing in this Agreement
are inserted only as a matter of convenience and in no way define, limit,
construe or describe the scope or intent of any such section nor in any way
affect this Agreement.

               18.13 PARTIES ADVISED BY COUNSEL. This Agreement has been
negotiated between unrelated parties who are sophisticated and knowledgeable in
the matters contained in this Agreement and who have acted in their own self
interest. In addition, each party has been represented by legal counsel. The
provisions of this Agreement shall be interpreted in a reasonable manner to
effect the purpose of the parties, and this Agreement shall not be interpreted
or construed against any party to this Agreement because that party or any
attorney or representative for that party drafted this Agreement or participated
in the drafting of this Agreement.

               18.14 ENTIRE ASSIGNMENT OF THE PARTIES. The Agreement and the
Development Agreement will constitute and contain the complete, final and
exclusive understanding and agreement of the parties and cancels and supersedes
any and all prior negotiations, correspondence, understandings and agreements,
whether oral or written, between the parties respecting the subject matter
thereof.

                                      -19-
<PAGE>   20
        IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement, including the Exhibits attached hereto and incorporated herein by
reference, as of the Effective Date.

METRICOM, INC.                           NOVATEL WIRELESS, INC.

/s/                                      /s/
-----------------------------------      ---------------------------------------
Signature                                Signature

-----------------------------------      ---------------------------------------
Printed Name                             Printed Name

-----------------------------------      ---------------------------------------
Title                                    Title

-----------------------------------      ---------------------------------------
Date                                     Date

                                      -20-
<PAGE>   21
                                    EXHIBIT A

                    NOVATEL KNOW-HOW, PATENTS AND TECHNOLOGY

                                      NONE

<PAGE>   22
                                    EXHIBIT B

                                     PATENTS

METRICOM PATENTS

***

***

***

***

***

***

***

***

***

***

***

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

<PAGE>   23
                                    EXHIBIT C

                             NETWORK SPECIFICATIONS

To be provided within thirty (30) days from the execution of this Agreement.

<PAGE>   24
                                    EXHIBIT D

                             METRICOM SPECIFICATIONS

      GUARANTEED VOLUME MODEMS PERFORMANCE AND USAGE SPECIFICATION

1.      SUMMARY OF FEATURES

***

2.      PRODUCT REQUIREMENTS

        The high level requirements for this product are listed below.

***

        2.2.   PHYSICAL CHARACTERISTICS

***

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               The antenna shall protrude no further than 1" from the side of
               the attached computer and have an extended length of no more than
               6".

        2.3.   EXTERNAL MATERIAL

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        2.4.   COLOR

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        2.5.   BRAND IDENTIFICATION

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        2.6.   STRUCTURAL INTEGRITY

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        2.7.   MOUNTING AND ATTACHMENT TO OTHER DEVICES

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        2.8.   ANTENNA ATTRIBUTES

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        2.9.   COMMUNICATION I/O PORT

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        2.10.  IN-BOX MATERIAL

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3.      USABILITY

        3.1.   INSTALLATION

               ***

        3.2.   USER INTERFACE

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4.      FUNCTIONALITY

        4.1.   OPERATING LIFE/POWER REQUIREMENTS

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               ***

        4.2    COMPATIBILITY

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        4.3.   SOFTWARE/FIRMWARE

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5.      ACCESSORIES

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6.      COMPATIBILITY

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        6.2.   OPERATING SYSTEMS

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        6.3    USER APPLICATIONS

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                                    EXHIBIT E

                     INITIAL FORECAST AND DELIVERY SCHEDULE

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Changes may be made to the Forecast and Delivery Schedule in accordance with
Section 7.3 of this Agreement.

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                                    EXHIBIT F

                                      PRICE

The parties acknowledge and agree that the prices of the initial design Modems
shall be as follows:

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                                    EXHIBIT G

                                   TRADEMARKS

                                   Metricom(R)

                                   Ricochet(R)

                              Metricom design logo

                              Ricochet design logo

<PAGE>   33
                                    EXHIBIT H

                         METRICOM CORPORATE STYLE GUIDE

To be provided within thirty (30) days from execution of the Agreement.

<PAGE>   34
                                    EXHIBIT I

           TECHNICAL SUPPORT LEVEL DEFINITIONS AND ESCALATION PROCESS

I. DEFINITIONS

        LEVEL I TECHNICAL SUPPORT:

        Level I Technical Support receives Customer calls and answers routine
        inquires and frequently asked questions related to the basic operation
        of the hardware and software, functionality, interoperability and
        capabilities of the Modem using available tools, documentation, test
        equipment and other materials provided by Novatel.

        LEVEL II TECHNICAL SUPPORT:

        Level II Technical Support shall be provided by Novatel support and
        engineering staff and includes, but is not limited to, providing
        assistance in resolving any outstanding Level I Support issues and
        questions. Level II Technical Support shall be provided directly to
        Level I Technical support personnel and Level I Technical Support
        personnel shall have direct access to designated support staff within
        the Novatel support organization for this purpose.

        LEVEL III TECHNICAL SUPPORT:

        Level III Technical Support shall be provided by Novatel support and
        engineering staff and includes, but is not limited to, resolution of any
        issues that cannot or have not been satisfactorily resolved by Level I
        and Level II Support personnel and any problems with the engineering or
        manufacturing of the Modem.

II. ESCALATION PROCESS:

        Support issues related to the engineering or manufacturing of the Modem
        shall immediately be escalated to Level III Technical Support

        Level I Technical Support issues that are not resolved to Customer's
        satisfaction will be forwarded to Level II Technical Support for further
        investigation and resolution.

        Level I Technical Support may refer a Customer directly to Novatel for
        Level II and Level III Technical Support upon approval from Novatel.

        Level II Technical Support issues that remain unresolved after *** from
        the initial notification by Level I Technical Support of the problem, or
        problems that are flagged as sensitive or mission critical, shall be
        escalated to Level III Technical Support for final resolution.

        Novatel shall provide prompt written explanation to Metricom or its
        Designee of the problem, known symptoms, possible causes, and expected
        time of resolution for any Level III Support issue that remains
        unresolved longer than *** after escalation to Level

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<PAGE>   35

III Support.

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