Document:

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                                                                    EXHIBIT 10.4

               AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

        This AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this "Amended
Registration Rights Agreement") is entered into as of June 15, 1999 by and among
the following parties:

1. Novatel Wireless, Inc., a Delaware corporation (the "Corporation");

2. Golden Gate Development and Investment Limited Partnership, Advent Israel
Limited Partnership, Advent Partners Limited Partnership, each a Delaware
limited partnership, and Advent Israel (Bermuda) Limited Partnership, a Bermuda
limited partnership (collectively, the "Advent Investors");

3. Ventures West Investments Limited, a Canada corporation ("Ventures West"),
Bank of Montreal Capital Corporation, a specialized financing corporation
incorporated under the laws of Canada ("BMO-CC"), Sam Znaimer and Robin Louis
(collectively, "Ventures West Investors");

4. Working Ventures Canadian Fund, Inc., a Canadian corporation ("Working
Ventures");

5. GSM Capital Limited Partnership, a Delaware limited partnership ("GSM");

6. Harcol Limited Partnership ("Harcol");

7. Ventures West Investors, Working Ventures, GSM, BT Investment Partners, Inc.
("BT Partners") and certain other holders of the Corporation's Series B
Convertible Preferred Stock, par value $.001 per shares ("Series B Stock")
(each, individually, a "Series B Investor", and collectively, the "Series B
Investors"); and

8. any additional investors ("Additional Investors") who comply with the
provisions of Section 16 hereof (each of the Additional Investors and each of
the investors as named under paragraphs 2 through 7 above, an "Investor" and
collectively, the "Investors").

        WHEREAS, the Corporation has entered into a certain Registration Rights
Agreement, dated as of August 21, 1996, as amended by that certain Amendment No.
1, dated as of December 23, 1997, as further amended by that certain Amendment
Agreement, dated as of April 24, 1998 and by that certain Second Amendment
Agreement, dated as of August 31, 1998, entered into by and among the
Corporation and other parties listed therein (the "Original Registration Rights
Agreement"); and

        WHEREAS, pursuant to that certain Series A Convertible Preferred Stock
Purchase Agreement, dated as of August 21, 1996 by and among the Corporation and
Advent Investors, GSM, Harcol, the Venture West Investors and such other
investors named in the Schedule of Investors thereto (collectively, the "Initial
Investors") (the "Stock Purchase Agreement"), the Corporation issued and sold to
the Initial Investors certain shares of the Corporation's Series A Convertible
Preferred Stock, par value $.001 per share ("Series A Stock"); and

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        WHEREAS, as of August 21, 1996, Working Ventures purchased certain
shares of Series A Preferred Stock of Novatel Wireless Technologies Ltd., an
Alberta corporation and a subsidiary of the Corporation ("NWT") (the "NWT Series
A Shares") which shares are convertible into Series A Stock pursuant to the
Share Purchase Agreement dated as of the date hereof between NWT and Working
Ventures (the "NWT Share Purchase Agreement"); and

        WHEREAS, pursuant to that certain Series B Preferred Stock and Warrant
Purchase Agreement, dated as of December 23, 1997, as amended by that certain
Amended and Restated Series B Convertible Preferred Stock and Warrant Purchase
Agreement, dated as of April 24, 1998 and that certain Second Amendment
Agreement, dated as of September 1, 1998 (the "Series B Stock Purchase
Agreement"), the Corporation issued and sold to Venture West Investors, Working
Ventures, GSM, BT Partners and certain other investors listed in Schedule of
Investors thereto, certain shares of the Corporation's Series B Convertible
Preferred Stock, par value $.001 per share ("Series B Stock") and certain
warrants to purchase certain shares of Common Stock (as defined below) (the
"Initial Warrants"); and

        WHEREAS, as of December 23, 1997, Working Ventures purchased certain
shares of the Series B Preferred Stock of NWT (the "NWT Series B Shares"), which
shares are convertible into shares of the Series B Stock and certain warrants to
purchase certain shares of the NWT's exchangeable common stock ("NWT
Exchangeable Common Shares"), which shares are exchangeable for shares of Common
Stock, pursuant to the Series B Stock Purchase Agreement and the Novatel
Wireless Technologies Ltd. Share and Warrant Purchase Agreement (the "NWT Series
B Share Purchase Agreement"); and

        WHEREAS, the Corporation proposes to issue and sell to certain persons
listed on the Schedule of Investors set forth in Exhibit A attached hereto (the
"Schedule of Investors") (each, individually, an "Investor" and, collectively,
the "Investors") a certain number of "Units" (defined as follows) in exchange
for an aggregate investment of up $3,120,000, each Unit consisting of (a) a
Convertible Subordinated Debenture issued by the Corporation ("Debenture") which
may under certain circumstances convert into shares of Series A Preferred Stock
in accordance with the terms and conditions set forth in that certain Unit
Purchase Agreement, dated as of the date hereof by and among the Corporation and
the Investors (the "Unit Purchase Agreement") and (b) a Common Stock Purchase
Warrant ("Warrant") to purchase a certain number of shares of Common Stock at a
price of $2.00, in accordance with the terms and conditions of the Unit Purchase
Agreement; and

        WHEREAS, concurrently with the closing of the Unit Purchase Agreement
and pursuant to the terms and conditions therein and in that certain Unit
Purchase Agreement, dated as of the date hereof by and between NWT and Working
Ventures (the "NWT Unit Purchase Agreement"), Working Ventures will purchase a
certain number of "NWT Units" (defined as follows), each NWT Unit consisting of
(a) a Convertible Subordinated Debenture issued by NWT (the "NWT Debenture"),
which NWT Debenture may under certain circumstances convert into shares of
equity securities of NWT in accordance with the terms and conditions set forth
in the NWT Unit Purchase Agreement and (b) a NWT Common Stock Purchase Warrant
(the "NWT Warrant") to purchase a number of shares of the NWT Exchangeable
Common Stock; and

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        WHEREAS, it is a condition to closing pursuant to the Unit Purchase
Agreement and the NWT Unit Purchase Agreement that that the the parties hereto
enter into this Amended and Restated Registration Rights Agreement.

        NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties
hereto do hereby agree that the Original Registration Rights Agreement is hereby
amended and restated in its entirety, and hereafter shall contain the following
terms and conditions:

        The Corporation hereby grants to each party hereto the registration
rights set forth in this Amended and Restated Registration Rights Agreement with
respect to the Registrable Securities (as hereinafter defined) owned by such
party.

        1. Definitions. As used in this Amended Registration Rights Agreement:

               (a) "Act" shall mean the Securities Act of 1933, as amended, or
any similar federal statute, and the rules and regulations of the Securities and
Exchange Commission (the "SEC") thereunder, all as the same shall be in effect
at the time;

               (b) "Additional Shares" shall mean the shares of Preferred Stock
issued and sold to the Initial Investors, other than the Advent Investors, GSM,
Harcol and the Venture West Investors, pursuant to the Stock Purchase Agreement;

               (c) "Common Stock" shall mean the Corporation's Common Stock, par
value $.001 per share;

               (d) "Follow-on Shares" shall mean the shares of Preferred Stock
issued and sold to investors pursuant to Section 2.3 of the Stock Purchase
Agreement;

               (e) "Form S-3" shall mean such form under the Act as in effect on
the date hereof or any successor registration form under the Act subsequently
adopted by the SEC which permits inclusion or incorporation of substantial
information by reference to other documents fried by the Corporation with the
SEC;

               (f) "Holder" shall mean any person owning or having the fight to
acquire Registrable Securities or any assignee thereof in accordance with
Section 13 hereof;

               (g) "NWT Conversion Shares" shall mean, as of any given date, the
number of shares of Common Stock into which the NWT Shares are convertible as of
such date, or if as of such date the NWT Shares have been converted into
Preferred Stock, the number of shares of Common Stock into which such shares of
Preferred Stock are convertible as of such date.

               (h) "Preferred Stock" shall mean those shares of the
Corporation's (i) Series A Convertible Preferred Stock, par value $.001 per
share, issued to the Initial Investors pursuant to the Stock Purchase Agreement;
issued to the Investors upon the conversion of the Debentures or the pursuant to
that certain Unit Purchase Agreement, dated as of the date hereof; or issued
upon conversion of the NWT Shares and (ii) Series B Convertible Preferred Stock
issued and sold pursuant to that certain Amended and Restated Series B
Convertible Preferred Stock and

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Warrant Purchase Agreement, dated as of April 24, 1998, by and among the
Corporation and the investors named in the Schedule of Investors thereto
("Series B Stock Purchase Agreement"), including without limitation those shares
issued to BT Investment Partners, pursuant to the Series B Stock Purchase
Agreement, as amended by that certain Second Amendment Agreement, dated as of
August 31, 1998, by and among the parties hereto, or issued upon the conversion
of any preferred shares of NWT sold pursuant to the NWT Series B Stock Purchase
Agreement reference therein (the "Series B NWT Shares").

               (i) "Register," "registered," and "registration" shall refer to a
registration effected by preparing and filing a registration statement or
similar document in compliance with the Act, and the declaration or ordering of
effectiveness of such registration statement or document.

               (j) "Registrable Securities" shall mean (1) the Common Stock
issuable or issued upon conversion of the Preferred Stock, (2) the NWT
Conversion Shares and shares of Common Stock issuable upon conversion of the
Series B NWT Shares (the "Series B NWT Conversion Shares") upon issuance
thereof, (3) the Common Stock issuable or issued upon exercise of warrants to
purchase Common Stock granted in accordance with the Series B Stock Purchase
Agreement or the Unit Purchase Agreement and (4) any Common Stock of the
Corporation issued as (or issuable upon the conversion or exercise of any
warrant, right or other security which is issued as) a dividend or other
distribution with respect to, or in exchange for or in replacement of, such
Preferred Stock, NWT Conversion Shares and Series B NWT Conversion Shares (after
issuance thereof), shares of NWT's exchangeable common stock issued upon
exercise of warrants to purchase such exchangeable shares (after issuance
thereof), or such Common Stock, excluding in all cases, however, any Registrable
Securities sold by a person in a transaction in which his rights under this
Amended Registration Rights Agreement are not assigned and shares sold by a
person pursuant to a registration statement filed pursuant to the Act or Rule
144 adopted thereunder.

               (k) The number of shares of "Registrable Securities then
outstanding" shall be determined by the number of shares of Common Stock then
outstanding which are, and the number of shares of Common Stock issuable
pursuant to then exercisable securities which are, Registrable Securities.

        2. Demand Registration.

               (a) If the Corporation shall receive at any time after the
earlier of (i) the date two years from the date hereof, or (ii) 180 days after
the effective date of the first registration statement for a public offering of
securities of the Corporation ("IPO") (other than a registration statement
relating either to the sale of securities to employees of the Corporation
pursuant to a stock option, stock purchase or similar plan or a SEC Rule 145
transaction), and prior to five years after the effective date of such IPO, a
written request (a "Registration Request") from the Holders of a majority of the
Registrable Securities then outstanding that the Corporation file a registration
statement under the Act covering the registration of all or a portion of the
Registrable Securities, then the Corporation shall within 10 days of the receipt
thereof, give written notice of such request to all Holders and shall, subject
to the limitations in Section 3, effect as soon as practicable (and in any event
use its best efforts to file the registration statement within 60 days

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of the receipt of such request) the registration under the Act of all
Registrable Securities which the Holders request to be registered within 20 days
of the mailing of such notice by the Corporation.

               (b) If the Holders initiating the registration request hereunder
("Initiating Holders") intend to distribute the Registrable Securities covered
by their request by means of an underwriting, they shall so advise the
Corporation as a part of their request made pursuant to this Section 2 and the
Corporation shall include such information in the written notice referred to in
subsection 2(a). The underwriter will be selected by a majority in interest of
the Initiating Holders, shall be of recognized national standing and shall be
reasonably acceptable to the Corporation. In such event, the fight of any Holder
to include his Registrable Securities in such registration shall be conditioned
upon such Holder's participation in such underwriting and the inclusion of such
Holder's Registrable Securities in the underwriting (unless otherwise mutually
agreed by a majority in interest of the Initiating Holders and such Holder) to
the extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall (together with the Corporation as provided in
subsection 5(e)) enter into an underwriting agreement in usual and customary
form with the underwriter or underwriters selected for such underwriting.

        3. Limitations on Demand Registration. Notwithstanding any provision of
Section

               (a) If the underwriter advises the Initiating Holders in writing
that marketing factors require a limitation of the number of shares to be
underwritten, then the Initiating Holders shall so advise all Holders of
Registrable Securities which would otherwise be underwritten pursuant hereto,
and the number of shares of Registrable Securities that may be included in the
underwriting shall be allocated among all Holders thereof, including the
Initiating Holders, in proportion (as nearly as practicable) to the amount of
Registrable Securities of the Corporation owned by each Holder.

               (b) If the Corporation shall furnish to Holders requesting a
registration statement pursuant to Section 2, a certificate signed by Steven
Sherman, as an authorized officer of the Corporation, or his replacement,
stating that in the good faith judgment of the Board of Directors of the
Corporation, it would be seriously detrimental to the Corporation and its
stockholders for such registration statement to be fried at the time requested,
and it is therefore necessary to defer the filing of such registration
statement, the Corporation shall have the fight to defer notifying all Holders
of its receipt of a Registration Request, as otherwise required under Section
2(a), for a period of not more than 90 days after receipt of the request of the
Initiating Holders in which case the Corporation shall thereafter use its best
efforts to file the registration statement within 150 days after its receipt of
the Registration Request; provided, however, that the Corporation may not
utilize this fight more than once in any 12-month period.

               (c) The Corporation shall not be obligated to file a registration
statement to effect any registration, qualification or compliance pursuant to
Section 2 during the period starting with the date 60 days prior to the
Corporation's bona fide estimated date of filing (as certified to the Holders by
the Corporation promptly after their Registration Request) of, and ending on the
date 180 days immediately following the effective date of, any registration
statement pertaining to securities of the Corporation, including any securities
registered pursuant

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to Section. 2 (other than a registration of securities in a Rule 145 transaction
or with respect to a stock or option plan or other employee benefit plan),
provided that the Corporation is actively employing its best efforts, during
such period, to cause such registration statement to become effective.

        4. Corporation Registration. If at any time the Corporation proposes to
register (including for this purpose a registration effected by the Corporation
for stockholders other than the Holders) any of its stock or other equity
securities under the Act in connection with the public offering of such
securities solely for cash (other than a registration relating solely to the
sale of securities to participants in a Corporation stock or option plan or
other employee benefit plan, a registration relating solely to a Rule 145
transaction on a form inapplicable to the sale of Registrable Securities, or a
registration on any form which does not include substantially the same
information as would be required to be included in a registration statement
covering the sale of the Registrable Securities), the Corporation shall, at such
time, promptly give each Holder written notice of such registration. Upon the
written request of each Holder given within 20 days after mailing of such notice
by the Corporation, the Corporation shall, subject to the provisions of Section
8, cause to be registered under the Act all of the Registrable Securities that
each such Holder has requested to be registered. Notwithstanding the foregoing,
should the Corporation, prior to the sale of any shares pursuant to a
registration statement described above in this Section 4, decide to deregister
or not proceed with such offering, the Corporation shall have no further
obligation to the Holders with respect to such offering or registration except
to promptly notify them of its decision.

        5. Obligations of the Corporation. Whenever required under this Amended
Registration Rights Agreement to effect the registration of any Registrable
Securities, the Corporation shall, as expeditiously as reasonably possible:

               (a) Prepare and file with the SEC a registration statement with
respect to such Registrable Securities and use its best efforts to muse such
registration statement to become effective, and upon the request of the Holders
of a majority of the Registrable Securities registered thereunder, keep such
registration statement effective for up to 90 days.

               (b) Prepare and file with the SEC such amendments and supplements
to such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Act with respect to the disposition of all securities covered by such
registration statement.

               (c) Furnish to the Holders such numbers of copies of a
prospectus, including a preliminary prospectus, in conformity with the
requirements of the Act, and such other documents as they may reasonably request
in order to facilitate the disposition of Registrable Securities owned by them.

               (d) Use its best efforts to register and qualify the securities
covered by such registration statement under such other securities or Blue Sky
laws of such jurisdictions as shall be reasonably requested by the Holders,
provided that the Corporation shall not be required in connection therewith or
as a condition thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions.

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               (e) In the event of any underwritten public offering, enter into
and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering. Each Holder
participating in such underwriting shall also enter into and perform its
obligations under such an agreement.

               (f) Notify each Holder of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is
required to be delivered under the Act of the happening of any event as a result
of which the prospectus included in such registration statement, as then in
effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing.

               (g) Use its best efforts to furnish, at the request of any Holder
requesting registration of Registrable Securities pursuant to Section 2 of this
Amended Registration Rights Agreement, on the date that such Registrable
Securities are delivered to the underwriters for sale in connection with a
registration pursuant to this Amended Registration Rights Agreement, if such
securities are being sold through underwriters, or, if such securities are not
being sold through underwriters, on the date that the registration statement
with respect to such securities becomes effective, (i) an opinion, dated such
date, of the counsel representing the Corporation for the purposes of such
registration, in form and substance as is customarily given to underwriters in
an underwritten public offering, addressed to the underwriters, if any, and to
the Holders requesting registration of Registrable Securities and (ii) a letter
dated such date, from the independent certified public accountants of the
Corporation, in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering,
addressed to the underwriters, if any, and to the Holders requesting
registration of Registrable Securities.

        6. Furnish Information. It shall be a condition precedent to the
obligations of the Corporation to take any action pursuant to this Amended
Registration Rights Agreement with respect to the Registrable Securities of any
selling Holder that such Holder shall furnish to the Corporation such
information regarding itself, the Registrable Securities held by it, and the
intended method of disposition of such securities as shall be required to effect
the registration of such Holder's Registrable Securities.

        7. Expenses of Registration. The Corporation shall bear and pay all
expenses incurred in connection with any registration, filing or qualification
of Registrable Securities with respect to the registrations pursuant to Section
2 or Section 4 for each Holder (which fight may be assigned as provided in
Section 13), including, without limitation, all registration, filing, and
qualification fees, printers' and accounting fees relating or apportionable
thereto and the fees and disbursements of one counsel for the selling Holders,
but excluding underwriting discounts and commissions relating to Registrable
Securities.

        8. Underwriting Requirements.

               (a) In connection with any offering involving an underwriting of
shares of the Corporation, the Corporation shall not be required under Section 4
to include any of the Holders' securities in such underwriting unless they
accept the terms of the underwriting as agreed upon

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between the Corporation and the underwriters selected by it, and then only in
such quantity, which may be none, as will not, in the good faith opinion of the
underwriters, materially jeopardize the success of the offering by the
Corporation. If the total amount of securities, including Registrable
Securities, requested by stockholders to be included in such offering exceeds
the amount of securities sold other than by the Corporation that the
underwriters reasonably believe compatible with the success of the offering,
then the Corporation shall be required to include in the offering only that
number, which may be none, of such securities, including Registrable Securities,
which the underwriters believe will not materially jeopardize the success of the
offering (the securities so included to be apportioned pro rata among the
selling Holders according to the total amount of securities entitled to be
included therein owned by each selling Holder or in such other proportions as
shall mutually be agreed to by such selling Holders).

               (b) With respect to any underwriting of shares to be registered
under Section 2, or an underwriting of shares to be registered under Section 12
if the Holders of a majority of the then outstanding Registrable Securities have
requested registration thereunder, such Holders shall have the fight to
designate the managing underwriter or underwriters, who shall be of recognized
national standing and shall be reasonably acceptable to the Corporation, which
acceptance shall not be unreasonably withheld or delayed. In all other
circumstances under such Sections and in connection with registrations under
Section 4, the Corporation shall have the fight to designate the managing
underwriter or underwriters, who shall be of recognized national standing.

        9. Delay of Registration. No Holder shall have any fight to obtain or
seek an injunction restraining or otherwise delaying any such registration as
the result of any controversy that might arise with respect to the
interpretation or implementation of this Amended Registration Rights Agreement.

        10. Indemnification. In the event any Registrable Securities are
included in a registration statement under this Amended Registration Rights
Agreement:

               (a) To the extent permitted by law, the Corporation will
indemnify and hold harmless each Holder, any underwriter (as defined in the Act)
for such Holder and each person, if any, who controls such Holder or underwriter
within the meaning of the Act or the Securities Exchange Act of 1934, as amended
(the "1934 Act"), against any losses, claims, damages, or liabilities (joint or
several) to which they may become subject under the Act, the 1934 Act or other
federal or state law, insofar as such losses, claims, damages, or liabilities
(or actions in respect thereof) arise out of or are based upon any of the
following statements, omissions or violations (collectively a "Violation"): (i)
any untrue statement or alleged untrue statement of a material fact contained in
such registration statement, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, (ii) the
omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein not misleading, or
(iii) any violation or alleged violation by the Corporation of the Act, the 1934
Act, any state securities law or any rule or regulation promulgated under the
Act, the 1934 Act or any state securities law; and Corporation will pay, as
incurred, to each such Holder, underwriter or controlling person, any legal or
other expense reasonably incurred by them in connection with investigating or
defending any such loss, claim,

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damage, liability, or action; provided, however, that the indemnity agreement
contained in this subsection 10(a) shall not apply to amounts paid in settlement
of any such loss, claim, damage, liability, or action if such settlement is
effected without the consent of the Corporation, which consent shall not be
unreasonably withheld, nor shall the Corporation be liable in any such case for
any such loss, claim, damage, liability, or action to the extent that' it arises
out of or is based upon a violation which occurs in reliance upon and in
conformity with written information furnished expressly for use in connection
with such registration by any such Holder, underwriter or controlling person;
and provided further, that reimbursement by the Corporation of attorneys' fees
incurred by Holders or such controlling persons in investigating or defending
any such loss; claim, damage, liability or action, shall be limited to fees of
one counsel representing such Holders and controlling persons jointly.

               (b) To the extent permitted by law, each selling Holder will
indemnify and hold harmless the Corporation, each of its directors, each of its
officers who has signed the registration statement, each person, if any, who
controls the Corporation within the meaning of the Act, any underwriter, any
other Holder selling securities in such registration statement and any
controlling person of any such underwriter or other Holder, against any losses,
claims, damages, or liabilities (joint or several) to which any of the foregoing
persons may become subject, under the Act, the 1934 Act or other federal or
state law, insofar as such losses, claims, damages, or liabilities (or actions
in respect thereto) arise out of or are based upon any Violation, in each case
to the extent (and only to the extent) that such Violation occurs in reliance
upon and in conformity with written information furnished by such Holder
expressly for use in connection with such registration; and each such Holder
will pay, as incurred, any legal or other expense reasonably incurred by any
person intended to be indemnified pursuant to this subsection 10(b), in
connection with investigating or defending any such loss, claim, damage,
liability, or action; provided, however, that the indemnity agreement contained
in this subsection 10(b) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Holder, which consent shall not be unreasonably
withheld, and provided further that no Holder shall have any liability under
this Section 10(b) in excess of the net pros actually received by such Holder in
the relevant public offering.

               (c) Promptly after receipt by an indemnified party under this
Section 10 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 10, deliver to
the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the fight to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party
(together with all other indemnified parties that may be represented without
conflict by one counsel) shall have the fight to retain its own counsel, with
the fees and expenses to be paid by the indemnifying party, if representation of
such indemnified party by the counsel retained by the indemnifying party would
be inappropriate due to actual or potential differing interests between such
indemnified party and any other party represented by such counsel in such
prying. The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action, to the extent materially
prejudicial to the indemnifying party's ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnified party under
this Section 10, but the omission so to deliver written

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notice to the indemnifying party will not relieve it of any liability that it
may have to any indemnified party otherwise than under this Section 10; and

               (d) The obligations of the Corporation and Holders under this
Section 10 shall survive the completion of any offering of Registrable
Securities in a registration statement under this Amended Registration Rights
Agreement.

        11. Reports Under Securities Exchange Act of 1934. With a view of making
available to the Holders the benefits of Rule 144 and Rule 144A promulgated
under the Act and any other rule or regulation of the SEC that may at any time
permit a Holder to sell securities of the Corporation to the public without
registration or pursuant to a registration on Form S-3, the Corporation agrees
to use its best efforts to:

               (a) make and keep public information available, as those terms
are understood and defined in SEC Rule 144, at all times after 90 days after the
effective date of the first registration statement filed by the Corporation for
the offering of its equity securities to the general public;

               (b) take all such action, including, without limitation, the
furnishing of all such information as a Holder or a proposed transferee may
reasonably request, to enable such Holder to sell securities of the Corporation
pursuant to SEC Rule 144A;

               (c) take all such action, including the voluntary registration of
its Common Stock under Section 12 of the 1934 Act, as is necessary to enable the
Holders to utilize Form S-3 for the sale of their Registrable Securities, such
action to be taken as soon as practicable after the end of the first fiscal year
in which a registration statement on Form S-1 or other applicable form is filed
by the Corporation for the offering of its securities to the general public is
declared effective;

               (d) file with the SEC in a timely manner all reports and other
documents required of the Corporation under the Act and the 1934 Act; and

               (e) furnish to any Holder, so long as the Holder owns any
Registrable Securities, forthwith upon request (i) a written statement by the
Corporation that it has complied with the reporting requirements of SEC Rule 144
(at any time after 90 days after the effective date of the first registration
statement filed by the Corporation), the Act and the 1934 Act (at any time after
it has become subject to such reporting requirements), or that it qualified as a
registrant whose securities may be resold pursuant to Form S-3 (at any time
after it so qualifies), (ii) a copy of the most recent annual or quarterly
report of the Corporation and such other reports and documents so filed by the
Corporation, and (iii) such other information as may be reasonably requested in
availing any Holder of any rule or regulation of the SEC which permits the
selling of any such securities without registration or pursuant to such form.

        12. Form S-3 Registration. In case the Corporation shall receive from
any Holder or Holders a written request or requests that the Corporation effect
a registration on Form S-3 and any related qualification or compliance with
respect to all or a part of the Registrable Securities owned by such Holder or
Holders, the Corporation will:

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               (a) promptly give written notice of the proposed registration,
and any related qualification or compliance, to all other Holders; and

               (b) as soon as practicable, effect such registration and all such
qualifications and compliances as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of such Holders or
Holders' Registrable Securities as are specified in such request, together with
all or such portion of the Registrable Securities of any other Holder or Holders
joining in such request as are specified in a written request given within 20
days after receipt of such written notice from the Corporation; provided,
however, that the Corporation shall not be obligated to effect any registration,
qualification or compliance, pursuant to this Section 12: (1) if Form S-3 is not
available for such offering by the Holders; (2) if the Holders, together with
the holders of any other securities of the Corporation entitled to inclusion in
such registration, propose to sell Registrable Securities and such other
securities (if any) at an aggregate price to the public (net of any
underwriters' discounts or commissions) of less than $500,000; (3) if the
Corporation shall furnish to the Holders a certificate signed by Steven Sherman
as an authorized officer of the Corporation, or his replacement, stating that in
the good faith judgment of the Board of Directors of the Corporation, it would
be seriously detrimental to the Corporation and its stockholders for such Form
S-3 Registration to be effected at such time, in which event the Corporation
shall have the fight to defer the filing of the Form S-3 registration statement
for a period of not more than 90 days after receipt of the request of the Holder
or Holders under this Section 12; provided, however, that the Corporation shall
not utilize this fight more than once in any 12 month period; (4) if the
Corporation has, within the 12 month period preceding the date of such request,
already effected two registrations on Form S-3 for the Holders pursuant to this
Section 12; or (5) in any particular jurisdiction in which the Corporation would
be required to qualify to do business or to execute a general consent to service
of pros in effecting such registration, qualification or compliance.

               (c) Subject to the foregoing, the Corporation shall file a
registration statement covering the Registrable Securities and other securities
so requested to be registered as soon as practicable after receipt of the
request or requests of the Holders. All expenses incurred in connection with a
registration requested pursuant to Section 12, including (without limitation)
all registration, filing, qualification, printer's and accounting fees and the
reasonable fees and disbursements of counsel for the selling Holder or Holders
and counsel for the Corporation, shall be borne by the Corporation.

               (d) The restriction on registrations pursuant to Section 2
provided for in subsection 2(d) shall apply equally to a registration under this
Section 12.

               (e) The Corporation is obligated to effect only two (2)
registrations pursuant to this Section 12.

        13. Assignment of Registration Rights. The rights to cause the
Corporation to register Registrable Securities pursuant to this Amended
Registration Rights Agreement may be assigned by a Holder to a legally and
contractually permitted transferee or assignee provided the Corporation is,
within a reasonable time after such transfer, furnished with written notice of
the name and address of such transferee or assignee and the securities with
respect to which such registration fights are being assigned; and provided,
further, that such assignment shall be

<PAGE>   12

effective only if immediately following such transfer the further disposition of
such securities by the transferee or assignee is restricted under the Act.

        14. Limitations on Subsequent Registration Rights. From and after the
date of this Amended Registration Rights Agreement, but subject to the
provisions of Section 16, the Corporation shall not, without the prior written
consent of the Holders of a majority of the outstanding Registrable Securities
and securities convertible into or exercisable for Registrable Securities, enter
into any agreement with any holder or prospective holder of any securities of
the Corporation which would allow such holder or prospective holder (a) to
include such securities in any registration filed under Section 2 hereof, unless
under the terms of such agreement, such holder or prospective holder may include
such securities in any such registration only to the extent that the inclusion
of his securities will not reduce the amount of the Registrable Securities of
the Holders which is included or (b) to make a demand registration which could
result in such registration statement being declared effective prior to the
earlier of either of the dates set forth in subsection 2(a) or within 180 days
of the effective date of any registration effected pursuant to Section 2. The
limitation on subsequent registration rights contained in this Section 14 shall
not apply to the Additional Shares, the Follow-On Shares or the NWT Conversion
Shares.

        15. "Market Stand-Off" Agreement. Each Investor hereby agrees that,
during the period of duration (not to exceed 180 days) specified by the
Corporation and an underwriter of Common Stock or other securities of the
Corporation, following the effective date of a registration statement of the
Corporation filed under the Act, it shall not, to the extent requested by the
Corporation and such underwriter, sell or otherwise transfer or dispose of
(other than to donees who agree to be similarly bound) any Common Stock held by
it at any time during such period except Common Stock included in such
registration; provided, however, that:

               (a) such agreement shall be applicable only to registration
statements of the Corporation which cover Common Stock (or other securities) to
be sold on its behalf to the public in a bona fide firm commitment underwritten
offering and, after the first registration statement under the Act, shall be
applicable only to Investors holding securities representing one percent or more
of the equity or voting power of the Corporation; and

               (b) all other persons with registration rights (whether or not
pursuant to this Amended Registration Rights Agreement) and, except in the case
of the first registration statement filed under the Act, without the incentive
of the grant of additional participation or other special rights, all holders of
one percent or more of the equity or voting power of the Corporation, enter into
similar agreements.

        In order to enforce the foregoing covenant, the Corporation may impose
stop-transfer instructions with respect to the Registrable Securities of each
Investor (and the shares or securities of every other person subject to the
foregoing restriction) until the end of such period. Notwithstanding anything
else herein (i) no transferee, assignee or successor of a Investor shall be
bound by this Section 15 if such transferee, assignee or successor has not been
transferred registration rights hereunder and (ii) the obligations of Investors
under this Section 15 shall expire upon expiration of the fights of the Holders
under Sections 2 and 4.

<PAGE>   13

        16. Accession. Any Additional Investors and any purchasers of Follow-on
Shares shall automatically become an Investor hereunder by delivering to the
Corporation a written instrument in the form of Exhibit A hereto, by which such
Additional Investor or purchaser of Follow-on Shares shall thereby agree to be
bound by the obligations imposed under this Amended Registration Rights
Agreement, whereupon such Additional Investor or purchaser of Follow-on Shares
shall automatically become a party to this Amended Registration Rights Agreement
and shall thereupon be deemed an "Investor" for all purposes of this Amended
Registration Rights Agreement.

        17. Governing Law. This Amended Registration Rights Agreement shall be
governed by and construed under the laws of the State of Delaware without regard
to its principles governing conflicts of laws.

        18. Entire Agreement; Amendment.

               (a) This Amended Registration Rights Agreement constitutes the
full and entire understanding and agreement between the parties with respect to
the subject matter hereof. Any provisions of this Amended Registration Rights
Agreement may be amended, and the observance thereof may be waived (either
generally or in a particular instance and either retroactively or prospectively)
only by written consent of the Corporation and the holders of at least a
majority of the Registrable Securities and securities convertible into or
exercisable for Registrable Securities and then outstanding. Any amendment or
waiver effected in accordance with this paragraph shall be binding upon each
holder of any Registrable Securities then outstanding, each future holder of all
such securities, and the Corporation.

        19. Notices. All notices, requests, consents, demands and other
communications required or permitted under this Amended Registration Rights
Agreement shall be in writing and shall be deemed to have been duly given, made
and received (a) when delivered against receipt, (b) upon transmitter's
confirmation of the receipt of a facsimile transmission, which shall be followed
by an original sent otherwise in accordance with this Section 19, (c) upon
confirmed delivery by a standard overnight carrier, or (d) if to a U.S.
resident, upon expiration of three business days after the day when deposited in
the U.S. mail, first class postage prepaid, addressed in accordance with Section
20 of the Stock Purchase Agreement.

        20. Counterparts. This Amended Registration Rights Agreement may be
executed in any number of counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument. Any such counterpart may contain one or more signature pages.

        21. Severability. In the event that any provision of this Amended
Registration Rights Agreement becomes or is declared by a court of competent
jurisdiction to be illegal, unenforceable or void, this Amended Registration
Rights Agreement shall continue in full force and effect without said provision.

        22. Captions. The captions and headings to Sections of this Amended
Registration Rights Agreement have been inserted for identification and
reference purposes only and shall not

<PAGE>   14

be used to construe the meaning or the interpretation of this Amended
Registration Rights Agreement.

                            [SIGNATURE PAGES FOLLOW]

<PAGE>   15

        IN WITNESS WHEREOF, this Amended Registration Rights Agreement has been
duly executed under seal as of the date first written above.

                                        NOVATEL WIRELESS, INC.

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                       ADVENT PARTNERS LIMITED PARTNERSHIP

                                         By:  Advent International Corporation,
                                              General Partner

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                       ADVENT ISRAEL LIMITED PARTNERSHIP

                                         By:  Advent International Limited
                                              Partnership,
                                              General Partner

                                         By:  Advent International Corporation,
                                              General Partner

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

<PAGE>   16

                                        ADVENT ISRAEL (BERMUDA) LIMITED
                                        PARTNERSHIP

                                          By:  Advent International Limited
                                               Partnership,
                                               General Partner

                                          By:  Advent International Corporation,
                                               General Partner

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                        DIGITAL MEDIA & COMMUNICATIONS, LIMITED
                                        PARTNERSHIP

                                          By:  Advent International Limited
                                               Partnership,
                                               General Partner

                                          By:  Advent International Corporation,
                                               General Partner

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

<PAGE>   17

                                        GOLDEN GATE DEVELOPMENT AND INVESTMENT
                                        LIMITED PARTNERSHIP

                                          By:  Advent International Limited
                                               Partnership,
                                               General Partner

                                          By:  Advent International Corporation,
                                               General Partner

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                        AMBROSE TAM

                                        ----------------------------------------
                                        Ambrose Tam

                                        BT INVESTMENT PARTNERS, INC.

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                        CARL BILDNER

                                        ----------------------------------------
                                        Carl Bildner

<PAGE>   18

                                        DAVID S. OROS

                                        ----------------------------------------
                                        David S. Oros

                                        DEE ANDERSON

                                        Dee Anderson

                                        DIGICOM CELLULAR INTERNATIONAL CO., LTD

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                        ECOLOGY MANAGEMENT CORPORATION

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                        ELLIOT J. TUCKEL

                                        ----------------------------------------
                                        Elliot J. Tuckel

<PAGE>   19

                                        GSM CAPITAL LIMITED PARTNERSHIP

                                          By:  Telcom Management Limited
                                               Partnership,
                                               General Partner

                                          By:  Telcom Investments Inc.,
                                               General Partner

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                        HARCOL LIMITED PARTNERSHIP

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                        JOAN LEVINSON

                                        ----------------------------------------
                                        Joan Levinson

                                        JONG TAE CHOI

                                        ----------------------------------------
                                        Jong Tae Choi

                                        KATHRYN E. COOPERMAN

                                        ----------------------------------------
                                        Kathryn E. Cooperman

<PAGE>   20

                                        NADEAU TRAIL, INC.

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                        P.S. CAPITAL L.L.C.

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                        STEVEN SHERMAN

                                        ----------------------------------------
                                        Steven Sherman

                                        THOMAS BEAL

                                        ----------------------------------------
                                        Thomas Beal

                                        VENTURES WEST MANAGEMENT, INC.

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

<PAGE>   21

                                        BANK OF MONTREAL CAPITAL CORPORATION

                                          By: Ventures West Management TIP Inc.,
                                              Manager

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                        ROBIN LOUIS

                                        ----------------------------------------
                                        Robin Louis

                                        SAM ZNAIMER

                                        ----------------------------------------
                                        Sam Znaimer

                                        WONG'S SHERMAN PARTNERS

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

<PAGE>   22

                                        WORKING VENTURES CANADIAN FUND INC.

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                        ROBERT COREY

                                        ----------------------------------------
                                        Robert Corey

                                        ROGER HARTMAN

                                        ----------------------------------------
                                        Roger Hartman

                                        ROLLING PROFIT HOLDINGS, LTD

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                        SHERMAN CAPITAL PARTNERS, L.L.C.

                                        ----------------------------------------
                                        By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

<PAGE>   23

                                    EXHIBIT A

                              SCHEDULE OF INVESTORS<PAGE>   1
                                                                    EXHIBIT 10.5

================================================================================

                            [NOVATEL WIRELESS LOGO]

                              AMENDED AND RESTATED

                           INVESTORS' RIGHTS AGREEMENT

                              ---------------------

                                  JUNE 30, 2000

                              ---------------------

================================================================================

<PAGE>   2

                             NOVATEL WIRELESS, INC.

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

        This Amended and Restated Investors' Rights Agreement (this "Agreement")
is entered into as of June 30, 2000 by and among Novatel Wireless, Inc., a
Delaware Corporation (the "Corporation") and the persons identified on Exhibit A
attached hereto (the "Investors").

                                    RECITALS

        WHEREAS, certain of the Investors hold shares of the Corporation's
Series C Preferred Stock, par value $0.001 per share (the "Series C Preferred
Stock") and possess registration rights and information rights pursuant to the
Series C Preferred Stock Investors' Rights Agreement dated as of December 31,
1999 by and between the Corporation and such Investors (the "1999 Agreement");
and

        WHEREAS, the undersigned Investors who hold Series C Preferred Stock
desire to terminate the 1999 Agreement and to accept the rights created pursuant
hereto in lieu of the rights granted to them under the 1999 Agreement;

        WHEREAS, certain Investors and the Corporation are parties to the Series
D Convertible Preferred Stock and Warrant Purchase Agreement dated as of June
30, 2000 by and among the Corporation and such Investors (the "Series D
Agreement"); and

        WHEREAS, as a condition to the execution and delivery of the Series D
Agreement, the Corporation, each Investor and holders of at least a majority of
the Registrable Securities (as defined in the 1999 Agreement) and securities
convertible into or exercisable for Registrable Securities then outstanding,
must amend and restate the 1999 Agreement to include the Series D Investors;

        NOW, THEREFORE, in consideration of the mutual agreements, covenants and
conditions contained herein, the Investors who are parties to the 1999 Agreement
hereby agree that the 1999 Agreement shall be superseded and replaced in its
entirety by this Agreement, and the parties hereto further agree as follows:

                                   ARTICLE 1

                  RESTRICTIONS ON TRANSFER; REGISTRATION RIGHTS

        1.1 Definitions. As used in this Agreement:

               (a) "Closing" shall mean the date of the initial sale of shares
of the Corporation's Series D Preferred Stock pursuant to the Series D
Agreement.

               (b) "Common Stock" shall mean the Corporation's Common Stock, par
value $0.001 per share.

                                       1
<PAGE>   3

               (c) "Exchange Act" means the Securities Exchange Act of 1934, as
amended, or any similar successor federal statute and the rules and regulations
thereunder, all as the same shall be in effect from time to time.

               (d) "Form S-3" means such form under the Securities Act as in
effect on the date hereof or any successor registration form under the
Securities Act subsequently adopted by the SEC which permits inclusion or
incorporation of substantial information by reference to other documents filed
by the Corporation with the SEC.

               (e) "Holder" means any Investor who holds Registrable Securities
and any holder of Registrable Securities to whom the registration rights
conferred by this Agreement have been validly transferred in compliance with
Sections 1.2 and 1.12 hereof.

               (f) "Initiating Holders" means any Holder or Holders who holds or
hold in the aggregate not less than 30% of the outstanding Registrable
Securities.

               (g) "Investors" means persons who purchased shares of Series D
Preferred Stock pursuant to the Series D Agreement or who possessed registration
rights pursuant to the 1999 Agreement immediately prior to its termination
hereunder.

               (h) "Other Stockholders" means persons other than the Holders
who, by virtue of agreements with the Corporation, are entitled to include their
securities in certain registrations hereunder.

               (i) The terms "register," "registered," and "registration" refer
to a registration effected by preparing and filing a registration statement or
similar document in compliance with the Securities Act, and the declaration or
ordering of effectiveness of such registration statement or document.

               (j) "Registrable Securities" means (1) the Common Stock issuable
or issued upon conversion of the Series C Preferred Stock, conversion of the
Series D Preferred Stock or exercise of the Warrants, and (2) any Common Stock
of the Corporation issued as (or issuable upon the conversion or exercise of any
warrant, right or other security which is issued as) a dividend or other
distribution with respect to, or in exchange for or in replacement of the shares
referenced in (1) above, excluding in all cases, however, any Registrable
Securities which have been sold to the public either pursuant to a registration
statement filed pursuant to the Securities Act or Rule 144 adopted thereunder,
or which have been sold in a private transaction in which the transferor's
rights under this Agreement are not assigned.

               (k) The number of shares of "Registrable Securities then
outstanding" shall be determined by the number of shares of Common Stock then
outstanding which are, and the number of shares of Common Stock issuable
pursuant to then convertible or exercisable securities which are, Registrable
Securities.

               (l) "Restricted Securities" means any Registrable Securities
required to bear the legend set forth in Section 1.2 hereof.

                                       2
<PAGE>   4

               (m) "Rule 144" means Rule 144 as promulgated by the SEC under the
Securities Act, as such Rule may be amended from time to time, or any similar
successor rule that may be promulgated by the SEC.

               (n) "Rule 145" means Rule 145 as promulgated by the SEC under the
Securities Act, as such Rule may be amended from time to time, or any similar
successor rule that may be promulgated by the SEC.

               (o) "SEC" means the Securities and Exchange Commission or any
other federal agency at the time administering the Securities Act.

               (p) "Securities Act" means the Securities Act of 1933, as
amended, or any similar federal statute, and the rules and regulations of the
Securities and Exchange Commission thereunder, all as the same shall be in
effect at the time.

               (q) "Series C Agreement" means the Series C Convertible Preferred
Stock and Warrant Purchase Agreement dated December 31, 1999 between the
Corporation and certain of the Investors.

               (r) "Series D Preferred Stock" means the shares of the
Corporation's Series D Convertible Preferred Stock, par value $0.001 per share.

               (s) "Warrants" means the 5-year warrants to purchase Common Stock
at an exercise price of $10.00 per share, granted pursuant to the Series C
Agreement and the 5-year warrants to purchase Common Stock at an exercise price
of $17.25 per share, granted pursuant to the Series D Agreement.

        1.2 Restrictions on Transfer.

               (a) Each Holder agrees not to make any disposition of all or any
portion of the Registrable Securities unless and until the transferee has agreed
in writing for the benefit of the Corporation to be bound by this Section 1.2
(unless such disposition of Registrable Securities is to the general public),
provided and to the extent such Section is then applicable, and:

                      (i) there is then in effect a registration statement under
        the Securities Act covering such proposed disposition and such
        disposition is made in accordance with such registration statement; or

                      (ii) unless such disposition of Registrable Securities is
        to the general public, (A) such Holder shall have notified the
        Corporation of the proposed disposition and shall have furnished the
        Corporation with a detailed statement of the circumstances surrounding
        the proposed disposition, and (B) if reasonably requested by the
        Corporation, such Holder shall have furnished the Corporation with an
        opinion of counsel, reasonably satisfactory to the Corporation, that
        such disposition will not require registration of such shares under the
        Securities Act, provided that the requirements of this Section
        1.2(a)(ii) shall not apply to a disposition made in compliance with Rule
        144A under the Securities Act if, before or contemporaneously with such
        disposition, the Holder supplies the Corporation with a written
        certificate describing the disposition and certifying that it is

                                       3
<PAGE>   5

        made in compliance with Rule 144A under the Securities Act and with the
        transferee's written agreement to be bound by Section 1.2 hereof.

                      (iii) Notwithstanding the provisions of paragraphs (i) and
        (ii) above, no such registration statement or opinion of counsel shall
        be necessary for a transfer by a Holder which is (A) a partnership to
        its partners or retired partners in accordance with their partnership
        interests, (B) a corporation to its shareholders in accordance with
        their interests in the corporation, (C) a limited liability company to
        its members or former members in accordance with their interest in the
        limited liability company, (D) to the Holder's family member or trust
        for the benefit of an individual Holder, or (E) to the Holder's
        affiliates, provided in each of the above cases, that the transferee
        will be subject to the terms of this Section 1.2 to the same extent as
        if such transferee were an original Holder hereunder.

               (b) Each certificate representing Registrable Securities shall
(unless otherwise permitted by the provisions of this Agreement) be stamped or
otherwise imprinted with a legend substantially similar to the following (in
addition to any legend required under applicable state securities laws):

                   THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
                   UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT
                   BE SOLD OR TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED
                   UNLESS AND UNTIL REGISTERED UNDER SUCH ACT OR UNLESS THE
                   CORPORATION HAS RECEIVED AN OPINION OF COUNSEL OR OTHER
                   EVIDENCE, SATISFACTORY TO THE CORPORATION AND ITS COUNSEL,
                   THAT SUCH REGISTRATION IS NOT REQUIRED.

               (c) The Corporation shall be obligated to reissue promptly
unlegended certificates at the request of any Holder thereof if the Holder shall
have obtained an opinion of counsel at such Holder's expense (which counsel may
be counsel to the Corporation) reasonably acceptable to the Corporation to the
effect that the securities proposed to be disposed of may lawfully be so
disposed of without registration, qualification or legend. If such disposition
is to the general public (either through a registration or pursuant to Rule 144
under the Securities Act), then the Corporation shall obtain an opinion of
counsel at the corporation's expense, (provided the Corporation is provided with
the supporting documentation and information deemed necessary by such counsel),
to the effect that the legend may be removed and shall deliver such opinion to
the transfer agent for the common stock.

               (d) Any legend endorsed on an instrument pursuant to applicable
state securities laws and the stop-transfer instructions with respect to such
securities shall be removed upon receipt by the Corporation of an order of the
appropriate blue sky authority authorizing such removal.

                                       4
<PAGE>   6

        1.3 Demand Registration.

               (a) Request for Registration. If the Corporation shall receive
from Initiating Holders at any time or times not earlier than the earlier of (i)
two years after the date of the 1999 Agreement (in the case of Initiating
Holders who are Holders of Series C Preferred Stock) and two years after the
date of this Agreement (in the case of Initiating Holders who are Holders of
Series D Preferred Stock), or (ii) one year after the effective date of the
first registration statement filed by the Corporation covering an underwritten
public offering of securities of the Corporation to the general public ("IPO")
(other than a registration statement relating either to the sale of securities
to employees of the Corporation pursuant to a stock option, stock purchase or
similar plan or a SEC Rule 145 transaction), a written request (a "Registration
Request") that the Corporation file a registration statement under the
Securities Act covering all or a portion of the Registrable Securities the
aggregate proceeds of which exceed $7,500,000, then the Corporation shall (i)
within 10 days of the receipt thereof, give written notice of such request to
all other Holders, and (ii) subject to the limitations in Section 1.3(b), as
soon as practicable use its best efforts to effect such registration under the
Securities Act of all Registrable Securities which the Holders specify in a
written request received by the Corporation within 10 days of the mailing or
delivery of such notice by the Corporation.

               (b) Limitations on Registration. Notwithstanding any provision of
this Agreement, the Corporation shall not be obligated to effect, or to take any
action to effect, any such registration pursuant to this Section 1.3:

                      (i) In any particular jurisdiction in which the
        Corporation would be required to execute a general consent to service of
        process in effecting such registration, qualification or compliance,
        unless the Corporation is already subject to service in such
        jurisdiction and except as may be required by the Securities Act;

                      (ii) After the Corporation has initiated two (2) such
        registrations pursuant to Section 1.3 (counting for these purposes only
        registrations which have been declared or ordered effective);

                      (iii) If the Corporation shall furnish to Holders
        requesting a registration statement pursuant to this Agreement, a
        certificate signed by the President of the Corporation stating that in
        the good faith judgment of the Board of Directors of the Corporation, it
        would be seriously detrimental to the Corporation and its stockholders
        for such registration statement to be filed at the time requested, and
        it is therefore necessary to defer the filing of such registration
        statement, the Corporation shall have the right to defer such filing and
        notice, as otherwise required under this Agreement, for a period of not
        more than 180 days after receipt of the request of the Initiating
        Holders; provided, however, that the Corporation may not utilize this
        right more than once in any 12 month period; or

                      (iv) During the period starting with the date 60 days
        prior to the Corporation's good faith estimated date of filing of, and
        ending on the date 180 days immediately following the effective date of,
        any registration statement pertaining to securities of the Corporation,
        including any securities registered pursuant to Section 1.3

                                       5
<PAGE>   7

        (other than a registration of securities in a Rule 145 transaction or
        with respect to a stock or option plan or other employee benefit plan),
        provided that the Corporation is actively employing in good faith all
        reasonable efforts during such period to cause such registration
        statement to become effective and provided that the Holders of
        Registrable Securities were entitled to request inclusion of their
        Registrable Securities to the extent they are otherwise entitled to
        pursuant to the terms of this Agreement;

                      (v) If the Initiating Holders propose to dispose of shares
        of Registrable Securities which may be immediately registered on Form
        S-3 pursuant to a request made under Section 1.5 hereof;

                      (vi) If the Initiating Holders do not request that such
        offering be firmly underwritten by underwriters selected by the
        Initiating Holders (subject to the consent of the Corporation, which
        consent shall not be unreasonably withheld);

                      (vii) If the Corporation and the Initiating Holders are
        unable to obtain the commitment of the underwriter described in clause
        (vi) above to firmly underwrite the offer.

               The registration statement filed pursuant to the request of the
Initiating Holders may, subject to the provisions of Sections 1.3(d) and 1.13
hereof, include other securities of the Corporation, with respect to which
registration rights have been granted, and may include securities of the
Corporation sold for the account of the Corporation.

               (c) Underwriting. The right of any Holder to registration
pursuant to Section 1.3 shall be conditioned upon such Holder's participation in
such underwriting and the inclusion of such Holder's Registrable Securities in
the underwriting (unless otherwise mutually agreed by a majority in interest of
the Initiating Holders and such Holder with respect to such participation and
inclusion) to the extent provided herein. A Holder may elect to include in such
underwriting all or a part of the Registrable Securities such Holder holds.

               (d) Procedures. If the Corporation shall request inclusion in any
registration pursuant to Section 1.3 of securities being sold for its own
account, or if other persons shall request inclusion in any registration
pursuant to Section 1.3, the Initiating Holders shall, on behalf of all Holders,
offer to include such securities in the underwriting and may condition such
offer on their acceptance of the further applicable conditions of this Article 1
(including Section 1.11). The Corporation shall (together with all Holders and
other persons proposing to distribute their securities through such
underwriting) enter into an underwriting agreement in customary form with the
representative of the underwriter or underwriters selected for such underwriting
by a majority in interest of the Initiating Holders, which underwriters are
reasonably acceptable to the Corporation. Notwithstanding any other provision of
this Agreement, if the representative of the underwriters advises the Initiating
Holders in writing that marketing factors require a limitation on the number of
shares to be underwritten, the number of shares to be included in the
underwriting or registration shall be allocated, first, to the holders of
Registrable Securities pro rata on the basis of the number of Registrable
Securities that would be sold by such Holders, and second, as set forth in
Section 1.13 hereof. If a person who has requested inclusion in such
registration as provided above does not agree to the terms of any such
underwriting, such person

                                       6
<PAGE>   8

shall be excluded therefrom by written notice from the Corporation, the
underwriter or the Initiating Holders. The securities so excluded shall also be
withdrawn from registration. If shares are so withdrawn from registration and if
the number of shares to be included in such registration was previously reduced
as a result of marketing factors pursuant to this Section 1.3 or otherwise, then
the Corporation shall offer to all holders who have retained rights to include
securities in the registration the right to include additional securities in the
registration in an aggregate amount equal to the number of shares so withdrawn,
with such shares to be allocated among such Holders requesting additional
inclusion in accordance with this Section 1.3.

        1.4 Corporation Registration.

               (a) If at any time after the effective date of the first
registration statement filed by the Corporation covering an underwritten public
offering of securities of the Corporation to the general public, the Corporation
determines to register (including for this purpose a registration effected by
the Corporation for stockholders other than the Holders) any of its stock or
other equity securities under the Securities Act in connection with the public
offering of such securities (other than a registration relating solely to
employee benefit plans, or a registration relating to a corporate reorganization
or other transaction on Form S-4, or a registration on any form which does not
permit secondary sales or does not include substantially the same information as
would be required to be included in a registration statement covering the sale
of the Registrable Securities), the Corporation shall (i) promptly give each
Holder written notice of such registration and (ii) use its best efforts to
include in such registration, subject to the provisions of Section 1.4(b) below,
and in any underwriting involved therein, all the Registrable Securities
specified in a written request or requests made by any Holder and received by
the Corporation within ten (10) days after the written notice from the
Corporation described in clause (i) above is mailed or delivered by the
Corporation. Notwithstanding the foregoing, should the Corporation, prior to the
sale of any shares pursuant to a registration statement described above in this
Section 1.4, decide to deregister or not proceed with such offering, the
Corporation shall have no further obligation to the Holders with respect to such
offering or registration except to promptly notify them of its decision.

               (b) Underwriting. If the registration of which the Corporation
gives notice is for a registered public offering involving an underwriting, the
Corporation shall so advise the Holders as part of the written notice given
pursuant to Section 1.4(a). In such event, the right of any Holder to
registration pursuant to this Section 1.4 shall be conditioned upon such
Holder's participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting shall
(together with the Corporation and the other holders of securities of the
Company with registration rights to participate therein distributing their
securities through such underwriting) enter into an underwriting agreement in
customary form with the representative of the underwriter or underwriters
selected by the Corporation.

               Notwithstanding any other provision of this Section 1.4, if the
representative of the underwriters advises the Corporation in writing that
marketing factors require a limitation on the number of shares to be
underwritten, the representative may, subject to the limitations set forth
below, exclude all Registrable Securities from, or limit the number of
Registrable Securities to be included in, the registration and underwriting. The
Corporation shall so advise

                                       7
<PAGE>   9

all holders of securities requesting registration, and the number of shares of
securities that are entitled to be included in the registration and underwriting
shall be allocated as set forth in Section 1.13. If any person does not agree to
the terms of any such underwriting, such person shall be excluded therefrom by
written notice from the Corporation or the underwriter. Any Registrable
Securities or other securities excluded or withdrawn from such underwriting
shall be withdrawn from such registration.

               If shares are so withdrawn from the registration and if the
number of shares of Registrable Securities to be included in such registration
was previously reduced as a result of marketing factors, the Corporation shall
then offer to all persons who have retained the right to include securities in
the registration the right to include additional securities in the registration
in an aggregate amount equal to the number of shares so withdrawn, with such
shares to be allocated among the persons requesting additional inclusion in
accordance with Section 1.13 hereof.

        1.5 Form S-3 Registration. If, after the Corporation has qualified for
registration on Form S-3 or any comparable or successor form after its IPO, the
Corporation shall receive from any Holder or Holders a written request or
requests that the Corporation effect a registration on Form S-3 and any related
qualification or compliance with respect to all or a part of the Registrable
Securities owned by such Holder or Holders (such request shall be in writing and
shall state the number of shares of Registrable Securities to be disposed of and
the intended methods of disposition by such Holder or Holders), the Corporation
will:

               (a) promptly give written notice of the proposed registration,
and any related qualification or compliance, to all other Holders; and

               (b) as soon as practicable, use its best efforts to effect such
registration and all such qualifications and compliances as may be so requested
and as would permit or facilitate the sale and distribution of all or such
portion of such Holder's or Holders' Registrable Securities as are specified in
such request, together with all or such portion of the Registrable Securities of
any other Holder or Holders joining in such request as are specified in a
written request given within 10 days after receipt of such written notice from
the Corporation; provided, however, that the Corporation shall not be obligated
to effect any registration, qualification or compliance (i) if Form S-3 is not
available for such offering by the Holders; (ii) if the Holders, together with
the holders of any other securities of the Corporation entitled to inclusion in
such registration, propose to sell Registrable Securities and such other
securities (if any) at an aggregate price to the public of less than $1,000,000;
(iii) if the Corporation shall furnish to the Holders a certificate signed by
the President of the Corporation stating that in the good faith judgment of the
Board of Directors of the Corporation, it would be seriously detrimental to the
Corporation and its stockholders for such Form S-3 registration to be effected
at such time, in which event the Corporation shall have the right to defer the
filing of the Form S-3 registration statement for a period of not more than 180
days after receipt of the request of the Holder or Holders under this Section
1.5; provided, however, that the Corporation shall not utilize this right more
than once in any 12 month period; (iv) in the circumstances described in clauses
(i) and (iv) of Section 1.3(b) hereof; or (v) if the Corporation has, within the
12-month period preceding the date of such request, already effected one such
registration on Form S-3 in such period.

                                       8
<PAGE>   10

               (c) If a request complying with the requirements of Section
1.5(a) hereof is delivered to the Corporation, the provisions of Section
1.3(b)(i), (iii) and (iv) hereof shall apply to such registration. If the
registration is for an underwritten offering, the provisions of Section 1.3(c)
and (d) hereof shall apply to such registration.

               (d) Notwithstanding Section 1.7 of this Agreement, the
Corporation shall be required to pay the Registration Expenses in connection
with only two (2) registrations pursuant to this Section 1.5 and the Holders
shall pay the Registration Expenses in connection with any additional
registrations pursuant to this Section 1.5.

        1.6 Obligations of the Corporation. Whenever required under this
Agreement to effect the registration of any Registrable Securities, the
Corporation shall promptly use its best efforts to:

               (a) Prepare and file with the SEC a registration statement with
respect to such Registrable Securities and use its best efforts to cause such
registration statement to become effective, and upon the request of the Holders
of a majority of the Registrable Securities registered thereunder, keep such
registration statement effective for up to 120 days or until the Holder or
Holders have completed the distribution described in the registration relating
thereto, whichever first occurs; provided however, that (i) such 120-day period
shall be extended for a period of time equal to the period the Holder refrains
from selling any securities included in such registration at the request of an
underwriter of Common Stock (or other securities) of the Corporation; and (ii)
in the case of any registration of Registrable Securities on Form S-3 which are
intended to be offered on a continuous or delayed basis, such 120-day period
shall be extended, if necessary, to keep the registration statement effective
until all such Registrable Securities are sold, however, in no event longer than
one year from the effective date of the registration statement and provided that
Rule 145, or any successor rule under the Securities Act, permits an offering on
a continuous or delayed basis, and provided further that applicable rules of the
Securities Act governing the obligation to file a post-effective amendment
permit, in lieu of filing a post-effective amendment that (I) included any
prospectus required by Section 10(a)(3) of the Securities Act or (II) reflects
facts or events representing a material or fundamental change in the information
set forth in the registration statement, the incorporation by reference of
information required to be included in (I) and (II) above to be contained in
periodic reports filed pursuant to Section 13 or 15(d) of the Exchange Act in
the registration statement.

               (b) Prepare and file with the SEC such amendments and supplements
to such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement.

               (c) Furnish to the Holders such number of prospectuses, including
a preliminary prospectus, in conformity with the requirements of the Securities
Act, and such other documents, records and information as they may reasonably
request in order to facilitate the disposition of Registrable Securities held by
them.

                                       9
<PAGE>   11

               (d) Register and qualify the securities covered by such
registration statement under such other securities or Blue Sky laws of such
jurisdictions as shall be reasonably requested by the Holders, provided that the
Corporation shall not be required in connection therewith or as a condition
thereto to qualify to do business or to file a general consent to service of
process in any such states or jurisdictions.

               (e) In the event of any underwritten public offering, enter into
and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering. Each Holder
participating in such underwriting shall also enter into and perform its
obligations under such an agreement.

               (f) Notify each Holder of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then
existing.

               (g) Cause such Registrable Securities registered pursuant hereto
to be listed on each securities exchange on which similar securities issued by
the Corporation are then listed.

               (h) Provide a transfer agent and registrar for all Registrable
Securities not later than the effective date of such registration.

               (i) Permit any Holder of Registrable Securities which, in its
reasonable judgment, might be deemed to be an underwriter or a controlling
person of the Corporation, to participate in the preparation of such
registration statement or comparable statement.

               (j) Otherwise use its best efforts to comply with all applicable
rules and regulations of the SEC, and make available to its security holders, as
soon as reasonably practicable, an earnings statement covering the period of at
least twelve months, but not more than eighteen months, beginning with the first
month after the effective date of the Registration Statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act.

               (k) Obtain a cold comfort letter from the Corporation's
independent public accountants in customary form and covering such matters of
the type customarily covered by cold comfort letters with respect to the
financial statements and certain financial information contained in the
registration statement as the holders of a majority of the Registrable
Securities being sold reasonably request (provided that such Registrable
Securities constitute at least 10% of the securities covered by such
registration statement).

        In the event of the issuance by the SEC of any stop order suspending the
effectiveness of a registration statement, any order preventing or suspending
the use of any preliminary prospectus, or of the suspension of the qualification
of securities for offering or sale in any jurisdiction, the Corporation will
make reasonable efforts to obtain the withdrawal of such order or suspension.

                                       10
<PAGE>   12

        1.7 Expenses of Registration. The Corporation shall bear and pay all
expenses incurred in effecting any registration, filing or qualification of
Registrable Securities with respect to both registrations pursuant to Sections
1.3, all of the registrations pursuant to Section 1.4, and two (2) registrations
pursuant to Section 1.5, which expenses shall include all registration, filing,
and qualification fees, printers' and accounting fees relating thereto and the
reasonable fees and disbursements of one counsel (in the case of registrations
pursuant to Section 1.3) for the selling Holders ("Registration Expenses").
Notwithstanding the foregoing, all underwriting discounts, selling commissions
and stock transfer taxes relating to the registration of Registrable Securities
and fees and disbursements of counsel for any Holder (other than the reasonable
fees and disbursements of one counsel included in the foregoing sentence) shall
be borne by the Holders of such securities pro rata on the basis of the number
of shares of securities so registered on their behalf, as shall any other
expenses in connection with the registration required to be borne by the Holders
of such securities.

        1.8 Indemnification.

               (a) To the extent permitted by law, the Corporation will
indemnify and hold harmless each Holder, any underwriter (as defined in the
Securities Act) for such Holder and each person, if any, who controls such
Holder or underwriter within the meaning of the Securities Act or the Exchange
Act, with respect to which registration, qualification has been effected
pursuant to this Agreement, against any losses, claims, damages, or liabilities
(joint or several) to which they may become subject under the Securities Act,
the Exchange Act or other federal or state law, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or are
based upon any of the following statements, omissions or violations
(collectively a "Violation"): (i) any untrue statement or alleged untrue
statement of a material fact contained in such registration statement, including
any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or alleged
violation by the Corporation of the Securities Act or any rule or regulation
thereunder applicable to the Corporation and relating to action or inaction
required of the Corporation in connection with any such registration,
qualification or compliance; and the Corporation will reimburse each such
Holder, underwriter or controlling person, for any legal and other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability, or action; provided, however, that the
indemnity agreement contained in this Section 1.8(a) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability, or action if such
settlement is effected without the consent of the Corporation, which consent
shall not be unreasonably withheld, nor shall the Corporation be liable in any
such case for any such loss, claim, damage, liability, or action to the extent
that it arises out of or is based upon a Violation based upon written
information furnished specifically for use in connection with such registration
by any such Holder, underwriter or controlling person; and provided further,
that reimbursement by the Corporation of attorneys' fees incurred by Holders or
such controlling persons in investigating or defending any such loss, claim,
damage, liability or action, shall be limited to fees of one counsel
representing such Holders and controlling persons jointly.

               (b) To the extent permitted by law, each Holder will indemnify
and hold harmless the Corporation, each of its directors, each of its officers
who has signed the

                                       11
<PAGE>   13

registration statement, each person, if any, who controls the Corporation within
the meaning of the Securities Act, each underwriter of the Corporation's
securities covered by such a registration statement, any other Holder selling
securities in such registration statement and any controlling person of any such
underwriter or other Holder, against any losses, claims, damages, or liabilities
(joint or several) to which any of the foregoing persons may become subject,
under the Securities Act, the Exchange Act or other federal or state law,
insofar as such losses, claims, damages, or liabilities (or actions in respect
thereto) arise out of or are based upon any Violation, in each case to the
extent (and only to the extent) that such Violation occurs in reliance upon and
in conformity with written information furnished by such Holder expressly for
use in connection with such registration; and each such Holder will reimburse
the Corporation and each such person for any legal and other expenses reasonably
incurred in connection with investigating or defending any such loss, claim,
damage, liability, or action; provided, however, that the indemnity agreement
contained in this Section 1.8(b) shall not apply to amounts paid in settlement
of any such loss, claim, damage, liability or action if such settlement is
effected without the consent of the Holder, which consent shall not be
unreasonably withheld, and provided further that no Holder shall have any
liability under this Section 1.8(b) in excess of the gross proceeds received by
such Holder in the relevant offering.

               (c) Each party entitled to indemnification under this Section 1.8
(the "Indemnified Party") shall give written notice to the party required to
provide indemnification (the "Indemnifying Party") promptly after receipt by
such Indemnified Party of the commencement of any claim for which indemnity may
be sought, and the Indemnifying Party shall have the right to participate in,
and, to the extent the Indemnifying Party so desires, jointly with any other
Indemnifying Party similarly notified, to assume the defense thereof with
counsel mutually satisfactory to the parties; provided, however, that an
Indemnified Party (together with all other Indemnified Parties that may be
represented without conflict by one counsel) shall have the right to retain its
own counsel, with the fees and expenses to be paid by the Indemnifying Party, if
representation of such Indemnified Party by the counsel retained by the
Indemnifying Party would be inappropriate due to actual or potential differing
interests between such Indemnified Party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
Indemnifying Party, as provided herein, to the extent materially prejudicial to
the Indemnifying Party's ability to defend such action, shall relieve such
Indemnifying Party of any liability to the Indemnified Party under this Section
1.8, but the omission so to deliver written notice to the Indemnifying Party
will not relieve it of any liability that it may have to any Indemnified Party
otherwise than under this Section 1.8.

               (d) If the indemnification provided for in this Section 1.8 is
held by a court of competent jurisdiction to be unavailable to an Indemnified
Party with respect to any loss, claim, damage or liability, or expense referred
to therein, then the Indemnified Party, in lieu of indemnifying such Indemnified
Party hereunder, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such loss, claim, damage, liability or expense
in such proportion as is appropriate to reflect the relative fault of the
Indemnifying Party on the one hand and of the Indemnified Party on the other in
connection with the statements or omissions that resulted in such loss, claim,
damage, liability or expense as well as any other relevant equitable
considerations. The relative fault of the Indemnifying Party and of the
Indemnified Party shall be determined by reference to, among other things,
whether the Violation or alleged Violation relates to information supplied by
the Indemnifying Party or by the Indemnified Party and the

                                       12
<PAGE>   14

parties' relative intent, knowledge, access to information, and the opportunity
to correct or prevent such Violation.

               (e) Notwithstanding the foregoing, to the extent that the
provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with the underwritten public offering are
in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control.

        1.9 Furnish Information. It shall be a condition precedent to the
obligations of the Corporation to take any action pursuant to this Agreement
with respect to the Registrable Securities of any selling Holder that such
Holder shall furnish to the Corporation such information regarding itself, the
Registrable Securities held by it, and the intended method of distribution of
such securities as the Corporation may reasonably request and as shall be
reasonably required in connection with any registration, qualification or
compliance referred to in this Agreement.

        1.10 Reports Under Securities Exchange Act of 1934. With a view of
making available to the Holders the benefits of Rule 144 and Rule 144A
promulgated under the Securities Act and any other rule or regulation of the SEC
that may at any time permit a Holder to sell securities of the Corporation to
the public without registration or pursuant to a registration on Form S-3, the
Corporation agrees to use its best efforts to:

               (a) Make and keep public information available, as those terms
are understood and defined in Rule 144 under the Securities Act, at all times
from and after 90 days after the effective date of the first registration
statement under the Securities Act filed by the Corporation for the offering of
its equity securities to the general public,

               (b) File with the SEC in a timely manner all reports and other
documents required of the Corporation under the Securities Act and the Exchange
Act at any time it has become subject to such reporting requirements; and

               (c) Furnish to any Holder, so long as the Holder owns any
Registrable Securities, forthwith upon written request (i) a written statement
by the Corporation that it has complied with the reporting requirements of Rule
144 (at any time after 90 days after the effective date of the first
registration statement filed by the Corporation for an offering of its
securities to the general public), the Securities Act and the Exchange Act (at
any time after it has become subject to such reporting requirements), or that it
qualified as a registrant whose securities may be resold pursuant to Form S-3
(at any time after it so qualifies), (ii) a copy of the most recent annual or
quarterly report of the Corporation and such other reports and documents so
filed by the Corporation, and (iii) such other information as may be reasonably
requested in availing any Holder of any rule or regulation of the SEC which
permits the selling of any such securities without registration.

        1.11 "Market Stand-Off" Agreement. Each Holder hereby agrees that,
during the period (not to exceed 180 days in the case of an IPO and 90 days in
all other cases) specified by the Corporation and an underwriter of Common Stock
or other securities of the Corporation, following the effective date of a
registration statement of the Corporation filed under the

                                       13
<PAGE>   15

Securities Act, it shall not, to the extent requested by the Corporation and
such underwriter, sell or otherwise transfer or dispose of (other than to
transferees who agree to be similarly bound) any Common Stock held by it at any
time during such period except Common Stock included in such registration,
including Common Stock acquired by such Holder in the public offering registered
on such Registration Statement; provided however, that:

               (a) such agreement shall be applicable only to registration
statements of the Corporation which cover Common Stock (or other securities) to
be sold on its behalf to the public in a bona fide firm commitment underwritten
offering; and

               (b) all officers and directors of the Corporation, all other
persons with registration rights (whether or not pursuant to this Agreement) and
all holders of one percent (1%) or more of the equity or voting power of the
Corporation, enter into similar agreements.

        In order to enforce the foregoing covenant, the Corporation may impose
stop-transfer instructions with respect to the Registrable Securities of each
Investor (and the shares or securities of every other person subject to the
foregoing restriction) until the end of such 180-day period.

        1.12 Transfer or Assignment of Registration Rights. The rights to cause
the Corporation to register securities granted to a Holder by the Corporation
under this Agreement may be transferred or assigned by a Holder only to a
transferee or assignee, who together with its affiliates hold not less than five
percent (5%) of Registrable Securities (as presently constituted and subject to
subsequent adjustments for stock splits, stock dividends, reverse stock splits,
and the like), provided that the Corporation is given written notice at the time
of or within a reasonable time after such transfer or assignment, stating the
name and address of the transferee or assignee and identifying the securities
with respect to which such registration rights are being transferred or
assigned, and provided further, that the transferee or assignee of such rights
assumes the obligations of such Holder under this Agreement.

        1.13 Allocation of Registration Opportunities. Subject to Section 1.3,
in any circumstance in which all of the Registrable Securities and other shares
of Common Stock of the Corporation (including shares of Common Stock issued or
issuable upon conversion of any currently issued or unissued series of Preferred
Stock of the Corporation) with registration rights (the "Other Shares")
requested to be included in a registration on behalf of the Holders or other
selling stockholders cannot be so included as a result of limitations of the
aggregate number of shares of Registrable Securities and Other Shares that may
be so included, the number of shares of Registrable Securities and Other Shares
that may be so included shall be allocated among the Holders and other selling
stockholders requesting inclusion of shares pro rata on the basis of the number
of shares of Registrable Securities and Other Shares that would be held by such
Holders and other selling stockholders, assuming conversion; provided however,
that such allocation shall not operate to reduce the aggregate number of
Registrable Securities and Other Shares to be included in such registration if
any Holder or other selling stockholder does not request inclusion of the
maximum number of shares of Registrable Securities and Other Shares allocated to
him pursuant to the above-described procedure, in which case the remaining
portion of his allocation shall be reallocated among those requesting Holders
and other selling stockholders whose allocations did not satisfy their requests
pro rata on the basis of the number of shares of

                                       14
<PAGE>   16

Registrable Securities and Other Shares which would be held by such Holders and
other selling stockholders, assuming conversion, and this procedure shall be
repeated until all of the shares of Registrable Securities and Other Shares
which may be included in the registration on behalf of the Holders and other
selling stockholders have been so allocated. The Corporation shall not limit the
number of Registrable Securities to be included in a registration pursuant to
this Agreement in order to include shares held by stockholders with no
registration rights.

        1.14 Delay of Registration. No Holder shall have any right to take any
action to restrain, enjoin or otherwise delay any registration as a result of
any controversy that might arise with respect to the interpretation or
implementation of this Agreement.

        1.15 Termination of Registration Rights.

               (a) Except as set forth in subparagraph (b) below, the right of
any Holder to request registration or inclusion in any registration pursuant to
this Agreement shall terminate on the closing of the first Corporation-initiated
registered public offering of Common Stock of the Corporation, if all shares of
Registrable Securities held or entitled to be held upon conversion by such
Holder may immediately be sold under Rule 144 during any 90-day period, or the
earlier of (i) such date after the closing of the first Corporation-initiated
registered public offering of Common Stock of the Corporation as all shares of
Registrable Securities held or entitled to be held upon conversion by such
Holder may immediately be sold under Rule 144 during any 90-day period and (ii)
3 years after the closing of the first Corporation-initiated registered public
offering.

               (b) The provisions of subparagraph (a) above shall not apply to
any Holder (together with its affiliates) who owns more than five percent (5%)
of the Corporation's outstanding stock until such time as such Holder (together
with its affiliates) owns less than five percent (5%) of the outstanding stock
of the Corporation.

               (c) Limitations on Subsequent Registration Rights. From and after
the date of this Agreement, the Corporation shall not, without the prior written
consent of a majority in interest of the Holders, enter into any agreement with
any holder of any securities of the Corporation giving such holder any
registration rights on terms more favorable than the registration rights granted
to the Holders hereunder.

                                   ARTICLE 2

                          COVENANTS OF THE CORPORATION

        Until the Corporation becomes subject to the reporting requirements of
the Exchange Act, so long as any Holder owns any Registrable Security, the
Corporation agrees as follows:

        2.1 Basic Financial Information. The Corporation will furnish the
following to (a) each Holder of Series C Preferred Stock, so long as such Holder
(together with its affiliates) owns at least 370,000 shares of Series C
Preferred Stock of the Corporation, or such number of shares of Common Stock of
the Corporation issued upon conversion of 370,000 shares of Series C Preferred
Stock of the Corporation, or any combination thereof (as presently constituted
and subject to subsequent adjustment for stock splits, stock dividends, reverse
stock splits,

                                       15
<PAGE>   17

recapitalizations and the like) who so requests in writing and (b) each Holder
of Series D Preferred Stock, so long as such Holder (together with its
affiliates) who owns at least five percent (5%) of the shares of Series D
Preferred Stock of the Corporation, or such number of shares of Common Stock of
the Corporation issued upon conversion of five percent (5%) of the shares of
Series D Preferred Stock of the Corporation, or any combination thereof (as
presently constituted and subject to subsequent adjustment for stock splits,
stock dividends, reverse stock splits, recapitalizations and the like) who so
requests in writing:

               (a) As soon as practicable after the end of each fiscal year of
the Corporation, and in any event within ninety (90) days thereafter, an audited
consolidated balance sheet of the Corporation and its subsidiaries, if any, as
at the end of such fiscal year, and an audited consolidated statements of income
and cash flows of the Corporation and its subsidiaries, if any, for such year,
prepared in accordance with generally accepted accounting principles
consistently applied and setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail and certified by
independent public accountants selected by the Corporation;

               (b) As soon as practicable at the end of the first, second, and
third quarterly accounting periods in each fiscal year of the Corporation, and
in any event within forty five (45) days thereafter, an unaudited consolidated
balance sheet of the Corporation and its subsidiaries, if any, as of the end of
each such quarterly period, and unaudited consolidated statements of income and
cash flows of the Corporation and its subsidiaries, if any, for such period and
for the current fiscal year to date, prepared in accordance with generally
accepted accounting principles consistently applied and setting forth in
comparative form the figures for the corresponding periods of the previous year,
subject to changes resulting from normal year-end adjustments, all in reasonable
detail, except that such financial statements need not contain the notes
required by generally accepted accounting principles; and

               (c) Annually (and in any event no later than five (5) days before
adoption by the Board of Directors of the Corporation), the annual budget and
operating plan of the Corporation for each fiscal year.

        2.2 Additional Information. As soon as practicable after the end of each
month and in any event within thirty (30) days thereafter, the Corporation will
deliver to each director of the Corporation designated by the Holders of Series
C Preferred Stock and the Holders of Series D Preferred Stock, a consolidated
balance sheet of the Corporation and its subsidiaries, if any, as at the end of
such month and consolidated statements of income and cash flows of the
Corporation and its subsidiaries, for each month and for the current fiscal year
of the Corporation to date, all subject to normal year-end audits adjustments,
prepared in accordance with generally accepted accounting principles
consistently applied, together with a comparison of such statements to the
corresponding periods of the prior fiscal year and to the Corporation's
operating plan then in effect and approved by its Board of Directors.

        2.3 Limitations. Anything in Article 2 of this Agreement to the contrary
notwithstanding, no Holder by reason of this Agreement shall have access to any
trade secrets or classified information of the Corporation. Each Holder hereby
agrees to hold in confidence and trust and not to misuse or disclose any
confidential information provided pursuant to this

                                       16
<PAGE>   18

Article 2. The Corporation shall not be required to comply with Article 2 of
this Agreement in respect of any Holder whom the Corporation reasonably
determines to be a competitor or an officer, employee, director or greater than
five percent (5%) stockholder of a competitor.

                                   ARTICLE 3

                                  MISCELLANEOUS

        3.1 Governing Law. This Agreement shall be governed by and construed
under the laws of the State of Delaware without regard to its principles
governing conflicts of laws.

        3.2 Successors and Assigns. Except as otherwise expressly provided
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors and assigns of the parties hereto.

        3.3 Entire Agreement; Amendment. This Agreement (including the Exhibits
hereto) constitutes the full and entire understanding and agreement between the
parties with respect to the subject matter hereof. Any provisions of this
Agreement may be amended, and the observance thereof may be waived (either
generally or in a particular instance and either retroactively or prospectively)
only by written consent of the Corporation and the holders of at least a
majority of the Registrable Securities and securities convertible into or
exercisable for Registrable Securities and then outstanding. Any amendment or
waiver effected in accordance with this paragraph shall be binding upon each
holder of any Registrable Securities then outstanding, each future holder of all
such securities, and the Corporation.

        3.4 Notices. All notices, requests, consents, demands and other
communications required or permitted under this Agreement shall be in writing
and shall be deemed to have been duly given, made and received (a) when
delivered against receipt, (b) upon transmitter's confirmation of the receipt of
a facsimile transmission, which shall be followed by an original sent otherwise
in accordance with this Section 3.4, (c) upon confirmed delivery by a standard
overnight carrier, or (d) if to a U.S. resident, upon expiration of three
business days after the day when deposited in the U.S. mail, first class postage
prepaid, addressed in accordance with Section 16 of the Series C Stock Purchase
Agreement and the Series D Stock Purchase Agreement.

        3.5 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Any such counterpart may
contain one or more signature pages.

        3.6 Rights; Severability. Unless otherwise expressly provided herein, a
Holder's rights hereunder are several rights, not rights jointly held with any
of the other Holders. In the event that any provision of this Agreement becomes
or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement shall continue in full force and effect without said
provision.

        3.7 Further Assurances. Each party agrees to execute and deliver to the
other parties hereto such other documents, and to take such further action, as
the other parties hereto may reasonably request in order to carry out the
purpose of this Agreement.

                                       17
<PAGE>   19

        3.8 Information Confidential. Each Holder acknowledges that the
information received by them pursuant hereto may be confidential and for its use
only, and it will not use such information in violation of the Exchange Act or
reproduce, disclose or disseminate such information to any other person (other
than its employees or agents having a need to know the contents of such
information, and its attorneys), except in connection with the exercise of
rights under this Agreement, unless the Corporation has made such information
available to the public generally or such Holder is required to disclose such
information by a governmental body.

        3.9 Captions. The captions and headings to Sections of this Agreement
have been inserted for identification and reference purposes only and shall not
be used to construe the meaning or the interpretation of this Agreement.

                                       18
<PAGE>   20

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement
effective as of the day and year first above written.

                                          THE CORPORATION:

                                          NOVATEL WIRELESS, INC.

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          THE INVESTORS:

                                          CORNERSTONE EQUITY INVESTORS IV, LP

                                          By:  Cornerstone Equity Investors, LLC
                                               General Partner

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          CAPITAL RESEARCH AND MANAGEMENT
                                          COMPANY on behalf of The New Economy
                                          Fund

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

<PAGE>   21

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          GMN INVESTORS II, L.P.

                                          By:   GMN Investors LLC
                                                General Partner

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          THE MANUFACTURERS LIFE INSURANCE
                                          COMPANY (U.S.A.)

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          RANDOLPH STREET PARTNERS 1998 DIF, LLC

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          RANDOLPH STREET PARTNERS III
                                          (THIRD VENTURE)

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

<PAGE>   22

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          GARY KUCK

                                          ______________________________________
                                          Gary Kuck
                                          Date of Execution:______________

                                          SAMUEL MAY

                                          ______________________________________
                                          Samuel May
                                          Date of Execution:______________

                                          MICHAEL MITGANG

                                          ______________________________________
                                          Michael Mitgang
                                          Date of Execution:______________

                                          JEFFREY CHENG

                                          ______________________________________
                                          Jeffrey Cheng
                                          Date of Execution:______________

                                          THEODORE J. CHRISTIANSON

                                          ______________________________________
                                          Theodore J. Christianson
                                          Date of Execution:______________

<PAGE>   23

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          TAD W. PIPER

                                          ______________________________________
                                          Tad W. Piper
                                          Date of Execution:______________

                                          VENTURES WEST INVESTMENTS LIMITED

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          BANK OF MONTREAL CAPITAL CORPORATION

                                          By:  Ventures West Management TIP,
                                               Inc., Manager

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          GOLDEN GATE DEVELOPMENT & INVESTMENT
                                          LIMITED PARTNERSHIP

                                          By:  Advent International Limited
                                               Partnership, General Partner

                                          By:  Advent International Corporation,
                                               General Partner

                                          ______________________________________
                                          By:  Greg Smitherman
                                          Its:__________________________________
                                          Date of Execution:______________

<PAGE>   24

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          ADVENT ISRAEL LIMITED PARTNERSHIP

                                          By:  Advent International Limited
                                               Partnership, General Partner

                                          By:  Advent International Corporation,
                                               General Partner

                                          ______________________________________
                                          By:  Greg Smitherman
                                          Its:__________________________________
                                          Date of Execution:______________

                                          ADVENT PARTNERS LIMITED PARTNERSHIP

                                          By:  Advent International Corporation,
                                               General Partner

                                          ______________________________________
                                          By: Greg Smitherman
                                          Its:__________________________________
                                          Date of Execution:______________

                                          DIGITAL MEDIA & COMMUNICATIONS LIMITED
                                          PARTNERSHIP

                                          By:  Advent International Limited
                                               Partnership, General Partner

                                          By:  Advent International Corporation,
                                               General Partner

                                          ______________________________________
                                          By:  Greg Smitherman
                                          Its:__________________________________
                                          Date of Execution:______________

<PAGE>   25

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          GSM CAPITAL LIMITED PARTNERSHIP

                                          By:   Telcom Management Limited
                                                Partnership, General Partner

                                          By:   Telcom Investments Inc.,
                                                General Partner

                                          ______________________________________
                                          By:  Bernice E. Bradin
                                          Its:__________________________________
                                          Date of Execution:______________

                                          ARGC, LLC

                                          ______________________________________
                                          By:  Bernice E. Bradin
                                          Its:__________________________________
                                          Date of Execution:______________

                                          THOMAS BEAL

                                          ______________________________________
                                          Thomas Beal
                                          Date of Execution:______________

                                          CARL BILDNER

                                          ______________________________________
                                          Carl Bildner
                                          Date of Execution:______________

                                          JONG TAE CHOI

                                          ______________________________________
                                          Jong Tae Choi
                                          Date of Execution:______________

<PAGE>   26

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          KATHRYN COOPERMAN

                                          ______________________________________
                                          Kathryn Cooperman
                                          Date of Execution:______________

                                          ROBERT COREY

                                          ______________________________________
                                          Robert Corey
                                          Date of Execution:______________

                                          MARCO POLO INDUSTRIES CO., LTD

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          ECOLOGY MANAGEMENT

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          ROGER HARTMAN

                                          ______________________________________
                                          Roger Hartman
                                          Date of Execution:______________

<PAGE>   27

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          JOAN LEVINSON

                                          ______________________________________
                                          Joan Levinson
                                          Date of Execution:____________

                                          NADEAU TRAIL, INC.

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          DAVID OROS

                                          ______________________________________
                                          David Oros
                                          Date of Execution:_____________

                                          P.S. CAPITAL LLC

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          ELLIOT TUCKEL

                                          ______________________________________
                                          Elliot Tuckel
                                          Date of Execution:______________

<PAGE>   28

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          WORKING VENTURES CANADIAN FUND, INC.

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          ROBIN LOUIS

                                          ______________________________________
                                          Robin Louis
                                          Date of Execution:______________

                                          SAM ZNAIMER

                                          ______________________________________
                                          Sam Znaimer
                                          Date of Execution:_____________

                                          AETHER CAPITAL LLC

                                          By:  Aether Systems, Inc.
                                               Its Sole Member

                                          By:___________________________________
                                          Name:
                                          Title:
                                          Date of Execution:_____________

<PAGE>   29

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          CORNERSTONE EQUITY INVESTORS IV, LP

                                          By:  Cornerstone Equity Investors, LLC
                                               General Partner

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          GSM CAPITAL LIMITED PARTNERSHIP

                                          By:   Telcom Management Limited
                                                Partnership, General Partner

                                          By:   Telcom Investments Inc.,
                                                General Partner

                                          ______________________________________
                                          By:  Bernice E. Bradin
                                          Its:
                                          Date of Execution:______________

                                          ARGC III, LLC

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          WORKING VENTURES CANADIAN FUND

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

<PAGE>   30

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          VENTURES WEST INVESTMENTS LIMITED

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          BANK OF MONTREAL CAPITAL CORPORATION

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          SAM ZNAIMER

                                          ______________________________________
                                          By: Sam Znaimer
                                          Its:
                                          Date of Execution:_______________

                                          ROBIN LOUIS

                                          ______________________________________
                                          By: Robin Louis
                                          Its:
                                          Date of Execution:_______________

                                          RANDOLPH STREET PARTNERS 1998 DIF, LLC

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

<PAGE>   31

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          RANDOLPH STREET PARTNERS III (Third
                                          Venture Tranche B)

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________
                                          Date of Execution:______________

                                          MICHAEL MITGANG

                                          ______________________________________
                                          Michael Mitgang
                                          Date of Execution:_______________

                                          CALEP EQUITIES LLC

                                          ______________________________________
                                          By: Angelo Leparulo
                                          Its: Manager
                                          Date of Execution:_______________

<PAGE>   32

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          IRONSIDE VENTURE PARTNERS II LLC

                                          By: __________________________________

                                          Name: ________________________________
                                               (Print)

                                          Title: _______________________________
                                                (If applicable)

<PAGE>   33

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          GMN INVESTORS II, L.P.

                                          By:  GMN Investors LLC,
                                               its general partner

                                          By: __________________________________

                                          Name: ________________________________
                                               (Print)

                                          Title: _______________________________
                                                (If applicable)

<PAGE>   34

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          GARY KUCK

                                          ______________________________________
                                          Gary Kuck

<PAGE>   35

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          SAMUEL MAY

                                          ______________________________________
                                          Samuel May

<PAGE>   36

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          JEFFREY CHENG

                                          ______________________________________
                                          Jeffrey Cheng

<PAGE>   37

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          ORRICK, HERRINGTON & SUTCLIFFE LLP

                                          ______________________________________
                                          By:  Peter V. Leparulo
                                          Its:   Authorized Signatory

<PAGE>   38

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          PETER V. LEPARULO

                                          ______________________________________
                                          Peter V. Leparulo

<PAGE>   39

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          UMB BANK, n.a. as TRUSTEE of the
                                          ORRICK, HERRINGTON & SUTCLIFFE LLP
                                          DEFINED CONTRIBUTION PLAN FBO BLASE
                                          DILLINGHAM

                                          ______________________________________
                                          By:___________________________________
                                          Its:__________________________________

<PAGE>   40

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                          KEITH BIANCAMANO

                                          ______________________________________
                                          Keith Biancamano

<PAGE>   41

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

                                    EXHIBIT A

                                    Investors

SERIES C INVESTORS
    Cornerstone Equity Investors IV, LP
    Capital Research and Management Company on behalf of the New Economy Fund
    GMN Investors II, L.P.
    The Manufactures Life Insurance Company (U.S.A.)
    Randolph Street Partners 1998 DIF, LLC
    Randolph Street Partners III (Third Venture)
    Kuck, Gary L.
    May, Samuel
    Mitgang, Michael
    Cheng, Jeffrey
    Christianson, Theodore J.
    Piper, Tad W.
    Ventures West Investments Ltd.
    Bank of Montreal Capital Corp.
    Golden Gate Development & Investment Limited Partnership
    Advent Israel Limited Partnership
    Advent Partners Limited Partnership
    Digital Media & Communications Limited Partnership
    GSM Capital Limited Partnership
    ARGC, LLC
    Beal, Thomas
    Bildner, Carl
    Choi, Jong Tae
    Cooperman, Kathryn
    Corey, Robert
    Marco Polo Industries Co., Ltd.
    Ecology Management
    Hartman, Roger
    Levinson, Joan
    Nadeau Trail, Inc.
    Oros, David
    P.S. Capital LLC
    Tuckel, Elliot
    Working Ventures Canadian Fund
    Robin Louis
    Sam Znaimer

<PAGE>   42

                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
                 SERIES D CONVERTIBLE PREFERRED STOCK FINANCING

SERIES D INVESTORS
    Aether Capital LLC
    Cornerstone Equity Investors IV, LP
    GSM Capital Limited Partnership
    ARGC III, LLC
    Working Ventures Canadian Fund
    Ventures West Investments Ltd.
    Bank of Montreal Capital Corp.
    Sam Znaimer
    Robin Louis
    Randolph Street Partners 1998 DIF, LLC
    Randolph Street Partners III (Third Venture Tranche B)
    Mitgang, Michael
    Calep Equities LLC
    Ironside Venture Partners II LLC
    GMN Investors II, L.P.
    Gary Kuck
    Samuel May
    Jeffrey Cheng
    Orrick, Herrington & Sutcliffe LLP
    Peter V. Leparulo
    UMB Bank, n.a. as Trustee of the Orrick, Herrington & Sutcliffe LLP Defined
       Contribution Plan FBO Blase Dillingham
    Keith Biancamano

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