Document:

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                                                                   EXHIBIT 10.17

                 SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE

        This Settlement Agreement and Mutual General Release ("AGREEMENT") is
made and entered into on January 12, 2002 by and between Novatel Wireless, Inc.
("NOVATEL WIRELESS") and Sanmina-SCI Corporation and Sanmina Canada ULC
(collectively "SANMINA" and, together with Novatel Wireless, the "PARTIES"). The
exhibits to this Agreement are hereby expressly incorporated into and made a
part of this Agreement.

                                       I.

                                    RECITALS

        A. WHEREAS, on or about July 18, 2001, Sanmina Corporation (now known as
Sanmina-SCI Corporation) and Sanmina Canada ULC filed suit against Novatel
Wireless in Superior Court of the State of California, County of San Diego, Case
No. GIC770894, ("SAN DIEGO LITIGATION"), and that suit was voluntarily dismissed
without prejudice by plaintiffs on October 29, 2001, and Novatel Wireless has
filed a Memorandum of Costs, which Sanmina has moved to strike.

        B. WHEREAS, on or about October 18, 2001, Sanmina Corporation filed suit
against Novatel Wireless in Superior Court of the State of California, County of
Santa Clara, Case No. CV802384 ("SANTA CLARA LITIGATION").

        C. WHEREAS, Sanmina and Novatel Wireless intend by this Agreement to end
any and all disputes and litigation arising from the claims contained in the San
Diego Litigation and the Santa Clara Litigation, including any offsets asserted
(or which could have been asserted) by Novatel Wireless therein.

                                       II.

                       AGREEMENT OF SETTLEMENT AND RELEASE

                NOW, THEREFORE, in consideration of the foregoing recitals, and
the mutual promises and agreements contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, it is agreed as follows:

        A. Novatel Wireless' Obligations

                (1)     Deliveries to Escrow.

                        (a)     On the date hereof, the Parties shall deliver a
                                fully executed copy of this Agreement to escrow
                                pursuant to the terms and provisions of the
                                Escrow Agreement, attached hereto as EXHIBIT F
                                (the "ESCROW AGREEMENT").

                        (b)     Within one business day after this Agreement is
                                deposited into escrow, Novatel Wireless shall
                                deposit into escrow by wire transfer

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                                the total sum of Two Million Three Hundred
                                Thousand Dollars ($2,300,000) (the "INITIAL
                                PAYMENT").

                        (c)     On the date this Agreement is deposited into
                                escrow , Novatel Wireless shall notify the
                                transfer agent to issue to Sanmina five million
                                (5,000,000) shares of Novatel Wireless' common
                                stock, $0.001 par value per share (the "SHARES")
                                and shall cause to be delivered to escrow, upon
                                receipt from the transfer agent, a duly executed
                                stock certificate evidencing the Shares which
                                certificate shall be registered in the name of
                                Sanmina (or otherwise as indicated to Novatel
                                Wireless by Sanmina in writing). The Parties
                                shall comply with the terms and conditions set
                                forth on EXHIBIT A hereto in connection with the
                                Shares.

                        (d)     As soon as reasonably practical, the Parties
                                shall cause the Security Agreement and
                                subordination agreement (each as defined or
                                further described in paragraph A(8) hereof) to
                                be deposited into escrow.

                (2) Pursuant to the terms of the Escrow Agreement, in the event
the Security Agreement and the subordination agreement have not been deposited
into escrow on or prior to January 28, 2002, the escrow agent shall return all
deliverables to the Party who deposited such deliverable and this Agreement
shall be automatically terminated and of no further force or effect.

                (3) At the sole option of Sanmina, which option shall be
exercisable at any time during the ten (10) business day period immediately
following the latter of date of this Agreement or the date the Shares and the
Initial Payment are released from escrow to Sanmina pursuant to the terms of the
Escrow Agreement (the "ESCROW CLOSING DATE"), Novatel Wireless shall repurchase
from Sanmina up to two million (2,000,000) of the Shares at a price of Eighty
Cents ($0.80) per share (such option, the "PUT OPTION"). In the event Sanmina
elects to exercise the Put Option, Sanmina shall deliver to Novatel Wireless
written notice of such election within the time frame specified herein and shall
at that time surrender the applicable Novatel Wireless stock certificate, duly
endorsed or accompanied by a written instrument of transfer. The date on which
Sanmina satisfies these requirements shall be called the "EXERCISE DATE." On the
Exercise Date, all rights with respect to those Shares in respect of which
Sanmina is then exercising the Put Option shall terminate. Within three (3)
business days following the Exercise Date, Novatel Wireless shall wire to
Sanmina an amount equal to the number of shares so indicated on such exercise
notice, multiplied by $0.80, and shall cause Novatel Wireless' transfer agent to
issue and deliver to Sanmina a stock certificate evidencing the balance of the
Shares then held of record by Sanmina.

                (4) Subject to the terms and conditions of this Agreement,
Novatel Wireless shall purchase and accept from Sanmina, and Sanmina shall sell
to Novatel Wireless and deliver to Novatel Wireless or its designee, in the
aggregate over the 21-month period beginning January 1, 2002 (the "INVENTORY
PERIOD") inventory from the list set forth in Exhibit B (the

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"INVENTORY") in the aggregate having a value of at least Ten Million Dollars
($10,000,000) (the "INVENTORY PURCHASE COMMITMENT"). The Inventory Purchase
Commitment may be met either through Novatel Wireless' purchase of Inventory
directly from Sanmina or by Novatel Wireless' purchasing finished goods from
Sanmina (subject to the mutual agreement of the parties); provided, however,
that, to the extent the Inventory Purchase Commitment is met through the
purchase of finished goods, the Inventory Purchase Commitment shall only be
reduced by the Agreed Value of any Inventory, listed on Exhibit B, used to
manufacture such finished goods and only to the extent any payment (including
any partial payment) is received by Sanmina in connection with such finished
goods. Each item of the Inventory will be valued according to the value set
forth in EXHIBIT B (the "AGREED VALUE" or, in the event of finished goods, the
"PURCHASE ORDER VALUE"). The purchases will be made according to the following
schedule, which schedule is an express term of the Inventory Purchase
Commitment:

                (a)     At least One Million Dollars ($1,000,000) in Inventory
                        on or before March 31, 2002.

                (b)     Subject to the provisions contained in paragraph 4(g),
                        at least Three Hundred Thirty Three Thousand Three
                        Hundred Thirty Three Dollars ($333,333) in Inventory on
                        or before the last Friday of each month thereafter
                        during 2002, provided that Novatel Wireless has not
                        earlier satisfied the Inventory Purchase Commitment,
                        giving effect to any reductions then pending pursuant to
                        paragraph 4(e) below.

                (c)     Commencing on January 1, 2003, subject to the provisions
                        contained in paragraph 4(g), at least Six Hundred Sixty
                        Six Thousand Six Hundred Sixty Six Dollars ($666,666) in
                        Inventory per month on or before the last Friday of each
                        month through June 30, 2003, provided that Novatel
                        Wireless has not earlier satisfied the Inventory
                        Purchase Commitment, giving effect to any reductions
                        then pending pursuant to paragraph 4(e) below.

                (d)     The remainder of the Inventory Purchase Commitment, as
                        adjusted pursuant to paragraph 4(e) below, on the
                        ninety-first day following the transfer of the last
                        $666,666 (the "TRANSFER") made pursuant to paragraph
                        4(c) (the "ADDITIONAL INVENTORY PURCHASE DATE"),
                        provided, however, that if Novatel Wireless is not in
                        default in connection with its obligations under the
                        Inventory Purchase Commitment, then Novatel Wireless'
                        obligation to make such payment shall be waived. For
                        purposes of this paragraph, the date of the Transfer
                        will be deemed to be the last date the Transfer would be
                        deemed to be made under 11 U.S.C. Section 547.

                (e)     Notwithstanding anything in this Agreement to the
                        contrary, so long as Novatel Wireless is not in default
                        with respect to the Inventory Purchase Commitment, then
                        on the 91st day following each payment of the Inventory
                        (the "PAYMENT DATE"), or of manufactured parts
                        containing components, set forth on the list set forth
                        on EXHIBIT B, the aggregate Inventory Purchase
                        Commitment shall be reduced by an amount equal to

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                        25% of the Agreed Value of the Inventory so purchased.
                        For purposes of this paragraph, the Payment Date will be
                        deemed to be the last date the payment would be deemed
                        to be made under 11 U.S.C. Section 547.

                (f)     Process to order Inventory. At any time during a
                        particular month, Novatel Wireless shall advise Sanmina
                        in writing (each, a "PURCHASE ORDER") of the particular
                        Inventory (from the list set forth in Exhibit B) which
                        it desires to purchase during such month and the date
                        upon which it desires shipment to be made by Sanmina.
                        Sanmina will ship the Inventory pursuant to the Purchase
                        Order on the later to occur of (i) 10 days after its
                        receipt of payment from Novatel Wireless for the
                        Inventory or (ii) the requested shipment date; provided,
                        however, that immaterial delays in the shipment of
                        Inventory shall not excuse Novatel Wireless from the
                        Inventory Purchase Commitment. In the event shipment is
                        delayed for reasons outside of Sanmina's complete
                        control (e.g., shipping delays, labor strikes) (an
                        "UNAVOIDABLE DELAY"), Novatel Wireless' obligation to
                        make future monthly payments according to the Inventory
                        Purchase Commitment shall be suspended until such time
                        as the Novatel Wireless receives the delayed shipment
                        (the "SUSPENDED PAYMENTS"). Following Novatel Wireless'
                        receipt of such delayed shipment, all Suspended Payments
                        shall be due and payable to Sanmina on the immediately
                        following scheduled payment date of the Inventory
                        Purchase Commitment. Sanmina shall ship the Inventory in
                        respect of such Suspended Payments in accordance with
                        the provisions of paragraph 4 above. Upon Sanmina's
                        receipt of payment, the Inventory Purchase Commitment
                        shall be reduced dollar for dollar by the amount of the
                        payment. In the event Sanmina for any reason (other than
                        an Unavoidable Delay) fails to deliver more than 15% of
                        the requested Inventory on such Purchase Order,
                        including, without limitation, Sanmina's failure to have
                        such requested Inventory in stock, any payment made by
                        Novatel Wireless for such inventory not in stock (the
                        "UNAVAILABLE INVENTORY") will be returned to Novatel
                        Wireless and the outstanding amount of the Inventory
                        Purchase Commitment shall be reduced by an amount equal
                        to the Agreed Value of the Unavailable Inventory.

                (g)     Acquisition of Inventory in excess of amounts specified
                        in 4(a) through (c). Novatel Wireless shall have the
                        right to acquire Inventory on a monthly basis in an
                        aggregate amount greater than the amount specified in
                        paragraphs 4(a) through 4(c) above. In the event Novatel
                        Wireless orders such greater quantities of Inventory
                        (from the list set forth in Exhibit B), the Inventory
                        Purchase Commitment and the amount of the payment
                        otherwise due and payable to Sanmina for the month
                        immediately following such purchase shall be reduced in
                        direct order by the amount of the payment for such
                        Inventory.

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                (h)     Failure to submit Purchase Order. Novatel Wireless'
                        failure to advise Sanmina of the particular Inventory it
                        wishes Sanmina to ship during a particular month shall
                        not excuse Novatel Wireless from making the required
                        payment as specified in paragraphs 4(a) through 4(c)
                        above. In such event, the Inventory Purchase Commitment
                        shall be reduced by the amount of the payment received
                        by Sanmina and Novatel Wireless shall have the right to
                        order and receive Inventory (the "DELAYED INVENTORY")
                        valued at the amount of such payment within 10 days
                        following the date it notifies Sanmina of its order. The
                        Inventory Purchase Commitment shall not be further
                        reduced upon shipment of such Delayed Inventory.

                (i)     Within sixty (60) days after the execution of this
                        Agreement, Novatel Wireless shall use its best efforts
                        to advise Sanmina in writing of Two Million Five Hundred
                        Thousand Dollars ($2,500,000) worth of Inventory for
                        which it does not anticipate needing in the future. This
                        Inventory shall be deleted from EXHIBIT B, and Sanmina
                        shall have the right to sell this Inventory and keep the
                        proceeds.

                (5) In the event that Novatel Wireless fails timely to make
payments to Sanmina pursuant to the Inventory Purchase Commitment, and such
failure continues for a period of five business days following written notice,
given pursuant to Section 8(a) of the Security Agreement, from Sanmina to
Novatel Wireless of such failure, then Sanmina shall have the right to
accelerate the entire outstanding Inventory Purchase Commitment, giving effect
to any reductions then pending pursuant to paragraph 4 above, and declare such
amount then due and payable. If Sanmina accelerates the Inventory Purchase
Commitment, then upon payment by Novatel Wireless in full of the accelerated
amounts, Sanmina shall deliver to Novatel Wireless Inventory, in accordance with
the provisions of paragraph 4, with an Agreed Value equal to the amount due and
payable.

                (6) Novatel Wireless shall have no right to offset any amount
owing pursuant to Inventory Purchase Commitment with any other amounts that
Sanmina may owe to Novatel Wireless, but the Inventory shall be subject to the
repair and warranty provisions attached hereto as EXHIBIT C.

                (7) In the event that purchase obligations remain outstanding
under the Inventory Purchase Commitment and Sanmina and Novatel Wireless
mutually agree in writing that they desire that Sanmina manufacture finished
goods for Novatel Wireless, then (i) the Parties shall execute such other
mutually agreeable documents or writings necessary to give effect to that
determination consistent with this Agreement, and (ii) Novatel Wireless shall
pay to Sanmina in advance an amount equal to twenty-five percent (25%) of the
cost of the build with the balance of such cost to be paid within thirty (30)
days after the later of Novatel Wireless' actual receipt of such finished goods
from Sanmina or the applicable invoice from Sanmina; provided that, the
applicable invoice shall not be delivered to Novatel Wireless unless Sanmina is
able to ship the finished goods within ten days of delivery of the invoice. In
addition, if Sanmina needs to procure materials from one or more third parties
in order to complete a given build on behalf of Novatel Wireless, Novatel
Wireless shall purchase such required materials

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directly from such third parties and arrange for these materials to be shipped
to Sanmina, or otherwise shall prepay for all such third party required
material. Upon receipt of any such payments by Sanmina for finished goods
(either as an advance or upon completion of the finished goods), the Inventory
Purchase Commitment shall be reduced, to the extent that any Inventory listed on
Exhibit B is used to manufacture such finished goods, by the Agreed Value of
such Inventory attributable to the payment received.

                (8) Novatel Wireless and Sanmina hereby agree that each
respectively shall make good faith efforts to cooperate on future builds.
Following the Inventory Period, Novatel Wireless shall continue to use Sanmina
to build Novatel Wireless' CDPD products to the extent the terms and conditions
for such builds are mutually acceptable to Sanmina and to Novatel Wireless.
During the Inventory Period, Sanmina shall have the opportunity to bid on any
and all of Novatel Wireless' new contract manufacturing business.

                (9) Novatel Wireless shall grant to Sanmina a security interest
(the "SECURITY INTEREST"), in the form attached hereto as EXHIBIT D, in all
right, title and interest of Novatel Wireless in and to the property described
in Attachment 1 thereto, subject to Sanmina entering into a subordination
agreement reasonably acceptable to Sanmina and Novatel Wireless.

                (10) Novatel Wireless will withdraw the Memorandum of Costs
filed in the San Diego Litigation, and hereby releases any claim that is has for
the payment of costs incurred by it in the San Diego Litigation or the Santa
Clara Litigation.

        B. Sanmina's Obligations

                (1) Within ten (10) business days after the later of (i) the
Escrow Closing Date or (ii) the identification of the specific materials to be
shipped hereunder, Sanmina shall deliver to Novatel Wireless, materials in
Sanmina's inventory, to be selected by mutual agreement of Sanmina and Novatel
Wireless, which have the aggregate value of One Million Dollars ($1,000,000)
("CLOSING INVENTORY"). The Closing Inventory shall not count toward the
fulfillment of the Inventory Purchase Commitment. The value of the materials
will be determined by Agreed Value set forth in EXHIBIT B.

                (2) Within two business days after the Escrow Closing Date,
Sanmina shall deliver to Novatel Wireless an executed dismissal with prejudice
of the Santa Clara Litigation, and counsel for Sanmina shall immediately inform
the Court in the Santa Clara Litigation that Sanmina withdraws its Application
For Right To Attach Order and Order For Issuance of Writ of Attachment.

                (3) Promptly following the Escrow Closing Date, Sanmina shall
issue to Novatel Wireless a Return Material Authorization number with respect to
those allegedly defective goods identified on EXHIBIT E hereto (the "RMA
GOODS"). In the event Sanmina determines that a portion of the RMA Goods fail to
comply with Sanmina's standard warranty, thereafter, Sanmina shall at no
additional charge to Novatel Wireless use its best commercial efforts to repair
and deliver such repaired goods to Novatel Wireless within ninety (90) days of
this Agreement. In the event Sanmina is unable to repair the RMA Goods under
warranty (after

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using its best commercial efforts to do so), it shall advise Novatel Wireless,
and Sanmina shall have no further obligations to Novatel Wireless with respect
to the RMA Goods. In the event that Sanmina, acting reasonably, determines that
all or a portion of the RMA Goods comply with Sanmina's warranty (e.g., they are
not defective or are not manufactured by Sanmina), then the costs of any
inspection, testing, and transportation of such non-defective (or non-Sanmina
manufactured) RMA Goods to and from Sanmina's facilities shall be borne by
Novatel Wireless, and Sanmina shall have no further obligations to Novatel
Wireless with respect to such non-defective (or non-Sanmina manufactured) RMA
Goods.

        C. Mutual General Release

                (1) Except with the limitation set forth below in Section
II.C.2, Novatel Wireless on the one hand, and Sanmina on the other hand, on
behalf of themselves, or anyone or any entity that can claim by or through them,
hereby release and forever discharge each other, including their divisions,
affiliates, parents, subsidiaries, predecessors and successor corporations, and
past and present directors, officers, shareholders, agents, servants, employees,
representatives, assigns, heirs, successors in interest, predecessors in
interest, administrators, attorneys, insurers, and lenders, from any and all
claims, demands, and causes of action, obligations, damages and liabilities
whether known or unknown in any way connected with any transactions, affairs or
occurrences between the Parties to date, of every nature, kind and description,
in law, equity or otherwise, which have arisen, occurred or existed at any time
prior to the signing of this Agreement, including but not limited to those which
are in any way connected with or incidental to the allegations presented in, or
which could have been presented in, the San Diego Litigation or the Santa Clara
Litigation.

                Novatel Wireless and Sanmina acknowledge and agree that they
have been informed of the provisions of California Civil Code Section 1542, and
do hereby expressly waive and relinquish all rights and benefits that they have
or may have had under that statute, which reads as follows:

                A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
                DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
                EXECUTION OF THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
                MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

                Novatel Wireless and Sanmina acknowledge the significance and
consequences of such specific waiver of Section 1542, and hereby assume full
responsibility for any damages or losses it may incur as a result of the
execution of this Agreement.

                (2) Sanmina's release as provided for in Section C(1) above
shall automatically, and without the need for further action on the part of
either Party become effective if and when the following conditions (the "RELEASE
CONDITIONS") are satisfied: (a) ninety-one (91) calendar days pass following the
date of the filing of a UCC-1 financing statement (the "FINANCING STATEMENT")
with the Secretary of State of the State of Delaware covering the Collateral as
described on Attachment 1 to the Security Agreement (the "FILING DATE"); and (b)

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no bankruptcy, receivership, assignment for the benefit of creditors, or similar
case, matter or proceeding is commenced by or against or with respect to Novatel
Wireless or any affiliate (as defined in 11 U.S.C. Section 101(2)) which might
reasonably be substantially consolidated with Novatel Wireless, prior to
ninety-one (91) calendar days following the Filing Date. Sanmina shall use
reasonable commercial efforts to file the Financing Statement in a timely
manner; provided that, in the event Sanmina does not file the Financing
Statement in a timely manner Novatel Wireless shall be entitled to file the
Financing Statement. If the two conditions are not satisfied, the Release will
never become effective and will be a nullity. While the Release Conditions are
conditions to the effectiveness of the release, they are not conditions to the
other terms of this Agreement.

        D. Representation and Warranties of Novatel Wireless

                (1) Authorization. All corporate action on the part of Novatel
Wireless, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement, the performance of all
obligations of Novatel Wireless hereunder and the authorization, issuance and
delivery of the Shares has been taken, and the Agreement, when executed and
delivered by Novatel Wireless, shall constitute a valid and legally binding
obligation of Novatel Wireless, enforceable against Novatel Wireless in
accordance with its terms except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and other laws of
general application affecting enforcement of creditors' rights generally and as
limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies.

                (2) Valid Issuance of Shares. The Shares, when issued, sold and
delivered in accordance with the terms hereof for the consideration expressed
herein, will be duly and validly issued, fully paid and nonassessable and free
of restrictions on transfer other than restrictions on transfer under applicable
state and federal securities laws. Based in part upon the representations of
Sanmina in this Agreement and subject to the provisions below, the Shares will
be issued in compliance with all applicable federal and state securities laws.

                (3) Governmental Consents. No consent, approval, order or
authorization of, or registration, qualification, designation, declaration or
filing with, any federal or state authority on the part of Novatel Wireless is
required in connection with the consummation of the transactions contemplated by
this Agreement, except for filings pursuant to Section 25102 of the California
Corporate Securities Law of 1968, as amended, and the rules thereunder, other
applicable state securities laws and Regulation D promulgated pursuant to the
Securities Act of 1933, as amended (the "SECURITIES ACT").

        E. Representation and Warranties of Sanmina

                In connection with the issuance of the Shares pursuant to
Section B(2) hereof, Sanmina hereby makes the following representations and
warranties to Novatel Wireless:

                (1) Reliance Upon Sanmina's Representations. Sanmina understands
that the Shares are not currently registered under the Securities Act on the
ground that the issuance of Shares hereunder is exempt from registration under
the Securities Act pursuant to Section 4(2)

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thereof, and that Novatel Wireless' reliance on such exemption is based on
Sanmina's representations set forth herein.

                (2) Purchase Entirely for Own Account. Subject to Sanmina's
rights under Section (A)(3) hereof and Exhibit A, Sanmina is acquiring the
Shares for its own account, not as a nominee or agent, and not with a view to
the resale or distribution of any part thereof, and that it has no present
intention of selling, granting any participation in, or otherwise distributing
the same, except pursuant to an effective registration statement under the Act
or an available exemption from the registration requirements of the Act. By
executing the Agreement, Sanmina further represents that (except as provided in
Section (A)(3) herein) it does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participation to such
person or to any third person, with respect to any of the Shares.

                (3) Receipt of Information. Sanmina has relied upon independent
investigations made by it or its representatives and is fully familiar with the
business, results of operations, financial condition, prospects and other
affairs of Novatel Wireless and realizes that the Shares are a speculative
investment involving a high degree of risk for which there is no assurance of
any return. Sanmina believes it has received all the information it considers
necessary or appropriate for deciding whether to acquire the Shares. Sanmina
acknowledges that in connection with the Agreement, neither Novatel Wireless nor
anyone acting on its behalf or any other person has made, and Sanmina is not
relying upon any representations, statements or projections concerning Novatel
Wireless, its present or projected results of operations, financial condition,
prospects, present or future plans, products and services, or the value of the
Shares or Novatel Wireless' business or any other matter in relation to Novatel
Wireless' business or affairs. Sanmina has had an opportunity to discuss Novatel
Wireless' business management and financial affairs with its management, to
review Novatel Wireless' facilities, and to obtain such additional information
concerning its investment in the Shares in order for it to evaluate the merits
and risks of its investment.

                (4) Investment Experience. Sanmina has such knowledge and
experience in financial and business matters and such experience in evaluating
and investing in securities of companies such as Novatel Wireless as to be
capable of evaluating the merits and risks of the investment in the Shares.
Sanmina has the financial ability to bear the economic risk of its investment in
the Shares being acquired under the Agreement, has adequate means for providing
for its current needs and contingencies and has no need for liquidity with
respect to its investment in the Shares.

                (5) Accredited Investor. Sanmina represents and warrants that it
is an "accredited investor" as that term is defined in Rule 501(a) of Regulation
D under the Securities Act.

                (6) Restricted Securities. Sanmina understands and acknowledges
that the Shares may not be sold, transferred or otherwise disposed of without
registration under the Securities Act or an exemption therefrom, and that in the
absence of an effective registration statement covering the Shares or an
available exemption from registration under the Securities Act, the Shares must
be held indefinitely (subject to Sanmina's rights under Section (A)(3)

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hereof). In particular, Sanmina has been advised or is aware of the provisions
of Rule 144 promulgated under the Securities Act which permit limited resale of
securities purchased in a private placement subject to the satisfaction of
certain conditions, including, among other things, the availability of certain
current public information about Novatel Wireless and compliance with applicable
requirements regarding the holding period and the amount of securities to be
sold and the manner of sale. Sanmina understands that only Novatel Wireless can
take action to register the Shares.

                (7) Restrictive Legend. Sanmina understands that (a) any
registrar or transfer agents for the Shares will not be required to accept for
registration of transfer any Shares except upon presentation of evidence
satisfactory to Novatel Wireless that the restrictions on transfer under the Act
have been satisfied and (b) any Shares in the form of definitive physical
certificates will bear a legend substantially in the form set forth below:

                THE SECURITIES EVIDENCED HEREBY WERE ORIGINALLY
                ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
                UNDER SECTION 5 OF THE UNITED STATES SECURITIES
                ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
                AND APPLICABLE STATE SECURITIES LAWS, AND THE
                SECURITIES EVIDENCED HEREBY MAY NOT BE OFFERED,
                SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
                SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
                THEREFROM. THE HOLDER OF THE SECURITIES
                EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE
                CORPORATION THAT (A) SUCH SECURITIES MAY NOT BE
                RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT
                (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF
                RULE 144 UNDER THE SECURITIES ACT, OR IN
                ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
                REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
                (AND BASED UPON AN OPINION OF COUNSEL IF THE
                CORPORATION SO REQUESTS), (2) TO THE CORPORATION
                OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION
                STATEMENT UNDER THE SECURITIES ACT, IN EACH
                CASE, IN ACCORDANCE WITH THE APPLICABLE
                SECURITIES LAWS OF ANY STATE OF THE UNITED
                STATES OR ANY OTHER APPLICABLE JURISDICTION AND
                (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER
                IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE
                SECURITY EVIDENCED HEREBY OF THE RESALE
                RESTRICTIONS SET FORTH IN (A) ABOVE. THE
                SECURITIES ARE ALSO SUBJECT TO RESTRICTIONS ON
                TRANSFER AS SET FORTH IN THE SUBSCRIPTION AND
                SECURITIES

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                PURCHASE AGREEMENT BETWEEN THE COMPANY AND THE
                HOLDER PURSUANT TO WHICH THE SECURITIES WERE ISSUED.

        F. Binding Effects and Parties Bound

                This Agreement and all covenants and releases set forth in this
Agreement shall be binding upon and shall inure to the benefit of the respective
parties, their legal successors, heirs, assigns, partners, representatives,
agents, attorneys, officers, directors, owners, shareholders, employees,
affiliated corporations and business entities.

        G. Governing Law, Jurisdiction and Venue

                This Agreement shall be construed in accordance with, and be
deemed governed by, the laws of the State of California without regard to
principles of conflict of laws. The parties acknowledge and agree that the state
courts of Santa Clara County, California and the federal courts located in the
Northern District of the State of California shall have exclusive jurisdiction
and venue to adjudicate any and all disputes arising out of or in connection
with this Agreement. The parties consent to the exercise by such courts of
personal jurisdiction over them and each party waives any objection it might
otherwise have to venue, personal jurisdiction, inconvenience of forum, and any
similar or related doctrine.

        H. Right to Consult With Attorneys; Terms Understood

                The parties acknowledge that each has read this Agreement; that
each fully understands its rights, privileges and duties under this Agreement;
and that each enters into this Agreement freely and voluntarily. Each party
further acknowledges that each has had the opportunity to consult with any
attorney of its choice to explain the terms of this Agreement and the
consequences of signing it.

        I. Entire Agreement

                The undersigned each acknowledge and represent that no promise
or representation not contained in this Agreement, or in any exhibit, has been
made to them, and that this Agreement, together with any exhibits, contains the
entire understanding and agreement between the parties and it contains all terms
and conditions pertaining to the compromise and settlement of the disputes
referenced in the Agreement. The undersigned further acknowledge that the terms
of this Agreement are contractual and not merely a recital, and that this
Agreement is fully integrated.

        J. Severability

                In the event that any provision or obligation under this
Agreement shall be invalid, illegal, or unenforceable, the provision or
obligation will be severed from the Agreement, and the rest of the Agreement
shall remain valid, legal and enforceable.

                                 Page 11 of 23
<PAGE>

        K. No Presumption Against Drafting Party

                This Agreement and the provisions contained in this Agreement
shall not be construed or interpreted for or against any party because that
party drafted or caused the party's legal representative to draft any of the
provisions.

        L. Costs and Fees

                The parties to this Agreement will not seek to recover from any
other party to this Agreement their costs and expenses that were incurred in
connection with the San Diego Litigation and the Santa Clara Litigation. If any
legal action is commenced to interpret, enforce, or recover damages for the
breach of any term of this Agreement, including the releases contained herein,
the prevailing party shall be entitled to recover reasonable attorney fees
incurred in connection with that action, in addition to costs of suit.

        M. Amendments

                This Agreement cannot be modified or amended in any way, except
in writing, signed by the party to be charged.

        N. Additional Documents

                The parties agree to execute any and all additional documents
reasonably necessary to complete and document this Agreement.

        O. Counterparts

                This Agreement may be executed in counterparts, all of which,
when taken together, shall constitute one agreement, with the same force and
effect as if all signatures had been entered on one document.

        P. Confidentiality

                The Parties further agree that as part of the inducement for the
consideration given for this Agreement, neither will disclose or authorize
anyone else to disclose the existence of this Agreement or any of its terms to
any other person without prior written approval of the other Party, which
approval shall not be unreasonably refused, conditioned or delayed, except that
the Parties may disclose the existence of this Agreement and the material terms
therein (i) if required by law; (ii) if a press release or a form filed with the
Securities and Exchange Commission, or (iii) to such Parties attorneys,
advisors, agents, representatives, employees, underwriters, insurers, investment
bankers, etc; provided, however, that, prior to disclosing the Agreement or the
terms therein under Sections (i) or (ii), the disclosing Party shall obtain the
prior written approval of the other Party, which approval shall not be
unreasonably refused, conditioned or delayed. If either Party discloses the
existence of this Agreement or any of its terms to any of the aforementioned
persons, such Party shall inform them of this confidentiality provision and
instruct them not to disclose the existence of this Agreement or any of its
terms to anyone else. Any disclosure of the existence of this Agreement or any
of its terms by anyone (except as permitted hereunder) shall be considered a
violation of this confidentiality provision.

                                 Page 12 of 23
<PAGE>

If either Party is served with a subpoena, which seeks documents or information
relating to this matter, including but not limited to this Agreement, such Party
will notify each other before producing any documents pursuant to said subpoena.

                IN WITNESS WHEREOF, duly authorized representatives of the
Parties have executed this Agreement on the dates indicated below.

Dated: January 12, 2002                 By: /s/ Melvin L. Flowers
                                           -------------------------------------
                                           Melvin L. Flowers
                                           Senior Vice President, Finance and
                                           Chief Financial Officer
                                           Novatel Wireless, Inc.

Dated: January 12, 2002                 By: /s/ Steven H. Jackman
                                           -------------------------------------
                                           Steven H. Jackman
                                           Title: Vice President & Corporate
                                           Counsel
                                           Sanmina-SCI Corporation

Dated: January 12, 2002                 By: /s/ Steven H. Jackman
                                           -------------------------------------
                                           Name: Steven H. Jackman
                                           Title:
                                           Sanmina Canada ULC

APPROVED AS TO FORM:

Dated: January 12, 2002                 LATHAM & WATKINS

                                        By:/s/ Julia E. Parry
                                           -------------------------------------
                                           Name: Julia E. Parry
                                           Attorneys for Novatel Wireless, Inc.

Dated:  January 12, 2002                WILSON, SONSINI, GOODRICH & ROSATI

                                        By: /s/ Andrew J. Hirsch
                                           -------------------------------------
                                           Name: Andrew J. Hirsch, Member
                                           Attorneys for Sanmina-SCI Corporation
                                           and Sanmina Canada ULC

                                 Page 13 of 23
<PAGE>

Attachments:

EXHIBIT A
Registration of Shares

EXHIBIT B
Sanmina's Agreed Value

EXHIBIT C
Warranty

EXHIBIT D
Form of Security Agreement

EXHIBIT E
List of RMA Goods

                                 Page 14 of 23

<PAGE>

EXHIBIT A

REGISTRATION OF SHARES

        1.1 Novatel Wireless shall:

                (a) subject to receipt of necessary information from Sanmina,
                prepare and file with the Securities and Exchange Commission
                (the "SEC") no later than twenty (20) calendar days after the
                date of this Agreement, a registration statement on Form S-3
                (the "REGISTRATION STATEMENT") to enable the sale of the Shares
                by Sanmina from time to time through the automated quotation
                system of The Nasdaq Stock Market or in privately-negotiated
                transactions;

                (b) use all commercially reasonable efforts, subject to receipt
                of necessary information from Sanmina, to cause the Registration
                Statement to become effective as soon as practicable, but in no
                event later than one hundred eighty (180) calendar days after
                the Registration Statement is filed by the Novatel Wireless;

                (c) use all commercially reasonable efforts to prepare and file
                with the SEC such amendments and supplements to the Registration
                Statement and the Prospectus used in connection therewith as may
                be necessary to keep the Registration Statement current and
                effective for a period not exceeding the earliest of (i) the
                first anniversary of the date of this Agreement, (ii) the date
                on which Sanmina may sell all the Shares then held by Sanmina
                without restriction by the volume limitations of Rule 144(e) of
                the Securities Act or (iii) such time as all the Shares issued
                to Sanmina hereunder have been sold by Sanmina;

                (d) furnish to Sanmina with respect to the Shares registered
                under the Registration Statement such number of copies of the
                Registration Statement, prospectuses (including supplemental
                prospectuses) and preliminary versions of the prospectus filed
                with the SEC in conformity with the requirements of the
                Securities Act and such other documents as Sanmina may
                reasonably request, in order to facilitate the public sale or
                other disposition of all or any of the Shares by Sanmina,
                provided, however, that unless waived by Novatel Wireless in
                writing, the obligation of Novatel Wireless to deliver copies of
                prospectuses or preliminary prospectuses to Sanmina shall be
                subject to the receipt by Novatel Wireless of reasonable
                assurances from Sanmina that Sanmina will comply with the
                applicable provisions of the Securities Act and of such other
                securities or blue sky laws as may be applicable in connection
                with any use of such prospectuses or preliminary prospectuses;

                (e) file documents required of Novatel Wireless for normal blue
                sky clearance in states reasonably specified in writing by
                Sanmina prior to the effectiveness of the Registration
                Statement, provided, however, that Novatel

                                 Page 15 of 23
<PAGE>

        Wireless shall not be required to qualify to do business or consent to
        service of process in any jurisdiction in which it is not now so
        qualified or has not so consented;

                (f) bear all expenses (other than underwriting discounts and
                commissions, if any) in connection with the procedures in
                paragraph (a) through (e) of this Section and the registration
                of the Shares pursuant to the Registration Statement; and

                (g) advise Sanmina, promptly after it shall receive notice or
                obtain knowledge of the issuance of any stop order by the SEC
                delaying or suspending the effectiveness of the Registration
                Statement or of the initiation of any proceeding for that
                purpose; and it will promptly use its commercially reasonable
                efforts to prevent the issuance of any stop order or to obtain
                its withdrawal at the earliest possible moment if such stop
                order should be issued.

                With a view to making available to Sanmina the benefits of Rule
144 (or its successor rule) and any other rule or regulation of the SEC that may
at any time permit Sanmina to sell Shares to the public without registration,
Novatel Wireless covenants and agrees to: (i) make and keep public information
available, as those terms are understood and defined in Rule 144, until the
earlier of (A) such date as all of Sanmina's Shares may be resold pursuant to
Rule 144(e) or any other rule of similar effect or (B) such date as all of
Sanmina's Shares shall have been resold; and (ii) file with the SEC in a timely
manner all reports and other documents required of Novatel Wireless under the
Securities Act and under the Securities Exchange Act of 1934, as amended (the
"EXCHANGE ACT").

        It shall be a condition precedent to the obligations of Novatel Wireless
to take any action pursuant to this Section that Sanmina shall furnish Novatel
Wireless such information regarding itself, the Shares to be sold by Sanmina,
and the intended method of disposition of such securities as shall be required
to effect the registration of the Shares.

        Novatel Wireless understands that Sanmina disclaims being an
underwriter, but Sanmina being deemed an underwriter by the SEC shall not
relieve Novatel Wireless of any obligations it has hereunder.

        1.2 TRANSFER OF SHARES AFTER REGISTRATION; SUSPENSION.

                (a) Sanmina agrees that it will not effect any Disposition of
                the Shares that would constitute a sale within the meaning of
                the Securities Act, other than transactions exempt from the
                registration requirements of the Securities Act, except as
                contemplated in the Registration Statement referred to in this
                Section and as described below, and that it will promptly notify
                the Novatel Wireless of any changes in the information set forth
                in the Registration Statement regarding Sanmina or its plan of
                distribution.

                (b) Except in the event that paragraph (c) below applies, the
                Novatel Wireless shall: (i) if deemed necessary by Novatel
                Wireless, prepare and file from time to time with the SEC a
                post-effective amendment to the Registration

                                 Page 16 of 23
<PAGE>

                Statement or a supplement to the related prospectus or a
                supplement or amendment to any document incorporated therein by
                reference or file any other required document so that such
                Registration Statement will not contain an untrue statement of a
                material fact or omit to state a material fact required to be
                stated therein or necessary to make the statements therein not
                misleading, and so that, as thereafter delivered to purchasers
                of the Shares being sold thereunder, such prospectus will not
                contain an untrue statement of a material fact or omit to state
                a material fact required to be stated therein or necessary to
                make the statements therein, in light of the circumstances under
                which they were made, not misleading; (ii) provide Sanmina
                copies of any documents filed pursuant to this Section; and
                (iii) upon request, inform Sanmina that Novatel Wireless has
                complied with its obligations in this Section (or that, if
                Novatel Wireless has filed a post-effective amendment to the
                Registration Statement which has not yet been declared
                effective, Novatel Wireless will notify the Sanmina to that
                effect, will use its reasonable efforts to secure the
                effectiveness of such post-effective amendment as promptly as
                possible and will promptly notify Sanmina pursuant to this
                Section when the amendment has become effective).

                (c) In the event: (i) of any request by the SEC or any other
                federal or state governmental authority during the period of
                effectiveness of the Registration Statement for amendments or
                supplements to a Registration Statement or related prospectus or
                for additional information; (ii) of the issuance by the SEC or
                any other federal or state governmental authority of any stop
                order suspending the effectiveness of a Registration Statement
                or the initiation of any proceedings for that purpose; (iii) of
                the receipt by Novatel Wireless of any notification with respect
                to the suspension of the qualification or exemption from
                qualification of any of the Shares for sale in any jurisdiction
                or the initiation of any proceeding for such purpose; or (iv) of
                any event or circumstance which necessitates the making of any
                changes in the Registration Statement or prospectus, or any
                document incorporated or deemed to be incorporated therein by
                reference, so that, in the case of the Registration Statement,
                it will not contain any untrue statement of a material fact or
                any omission to state a material fact required to be stated
                therein or necessary to make the statements therein not
                misleading, and that in the case of the prospectus, it will not
                contain any untrue statement of a material fact or any omission
                to state a material fact required to be stated therein or
                necessary to make the statements therein, in the light of the
                circumstances under which they were made, not misleading; then
                Novatel Wireless shall promptly deliver a certificate in writing
                to Sanmina (the "SUSPENSION NOTICE") to the effect of the
                foregoing and, upon receipt of such Suspension Notice, Sanmina
                will refrain from selling any Shares pursuant to the
                Registration Statement (a "SUSPENSION") until Sanmina's receipt
                of copies of a supplemented or amended prospectus prepared and
                filed by Novatel Wireless, or until it is advised in writing by
                Novatel Wireless that the current prospectus may be used, and
                has received copies of any additional or supplemental filings
                that are incorporated or deemed incorporated by reference in any
                such prospectus. Notwithstanding the foregoing, Novatel Wireless
                may not deliver more than two Suspension Notices in any twelve
                month period, and each Suspension Notice may not suspend
                Sanmina's ability to sell Shares

                                 Page 17 of 23
<PAGE>

                pursuant to the Registration Statement for a period of more than
                60 calendar days. The aggregate duration of any periods during
                which Suspension Notices are in effect shall be added to the
                amount of time for which Novatel is required to maintain the
                effectiveness of the Registration Statement pursuant to Section
                1.1(c) of EXHIBIT A.

                (d) Provided that a Suspension is not then in effect Sanmina may
                sell the Shares under the Registration Statement, provided that
                it arranges for delivery of a current prospectus to the
                transferee of such Shares. Upon receipt of a request therefor,
                Novatel Wireless will provide an adequate number of current
                prospectuses to Sanmina and to any other parties requiring such
                prospectuses.

                (e) In the event of a sale of the Shares by Sanmina, unless such
                requirement is waived by Novatel Wireless in writing, Sanmina
                must also deliver to Novatel Wireless' transfer agent, with a
                copy to Novatel Wireless, a certificate of subsequent sale so
                that the Shares may be properly transferred.

        1.3 TERMINATION OF CONDITIONS AND OBLIGATIONS. The conditions precedent
        imposed upon the transferability of the Shares shall cease and terminate
        as to any particular number of the Shares when such Shares shall have
        been effectively registered under the Securities Act and sold or
        otherwise disposed of in accordance with the intended method of
        disposition set forth in the Registration Statement covering such Shares
        or at such time as an opinion of counsel satisfactory to Novatel
        Wireless shall have been rendered to the effect that such conditions are
        not necessary in order to comply with the Securities Act.

                                 Page 18 of 23
<PAGE>

EXHIBIT B

SANMINA'S AGREED VALUE

(TO BE MUTUALLY AGREED UPON, BASED UPON PRIOR LISTS DELIVERED PURSUANT TO THE
SANTA CLARA LITIGATION AND SAN DIEGO LITIGATION)

                             Intentionally Omitted.

                                 Page 19 of 23
<PAGE>

EXHIBIT C

WARRANTY

Sanmina expressly warrants that each product manufactured by Sanmina and
delivered to Novatel Wireless after the date of this Agreement (excluding
components purchased from third-party vendors ("VENDOR COMPONENTS")) shall be
free from any defects in workmanship for a period of one (1) year from the date
of manufacture of such product. For the purpose of this Section, "workmanship"
shall mean manufacture in accordance with the most current version of IPC-A-600
or IPC-A-610, or Novatel Wireless' workmanship standards set forth in the
Specifications. Warranties on any Vendor Components are limited to the
warranties provided by the respective component manufacturers or vendors, but
Sanmina shall use reasonable commercial efforts to enforce the manufacturers'
warranties on Novatel Wireless's behalf. To the extent such warranties are
transferable, Sanmina shall pass on to Novatel Wireless any unexpired assignable
warranties for any such Vendor Components to Customer until the expiration of
such warranties up to a maximum of one (1) year from the date of manufacture of
the products by Sanmina, whichever period is shorter. As Novatel Wireless' sole
remedy under this warranty, Sanmina will at no charge to Novatel Wireless,
rework, repair, and retest any product returned to Sanmina and found to contain
such defects in workmanship caused by Sanmina. This warranty does not include
Products that have defects or failures resulting from (a) Novatel Wireless'
design of Products including, but not limited to, design functionality failures,
specification inadequacies, failures relating to the functioning of Products in
the manner for the intended purpose or in the specific Novatel Wireless's
environment; (b) accident, disaster, neglect, abuse, misuse, improper handling,
testing, storage or installation including improper handling in accordance with
static sensitive electronic device handling requirements; or (c) alterations,
modifications or repairs by Novatel Wireless or third parties. Novatel Wireless
bears all design responsibility for the Product. Sanmina does not assume any
liability for expendable items such as lamps and fuses. Sanmina reserves the
right to inspect the products and verify that they are manufactured by Sanmina
and are defective and, in the event that Sanmina, acting reasonably, determines
that they are not manufactured by Sanmina or defective, then the costs of any
inspection, testing, and transportation of products to and from Sanmina's
facilities shall be borne by Novatel Wireless. Sanmina's total liability under
this warranty shall be limited to the price of the product supplied under the
Agreement. The warranty hereunder is also limited to items, parts and defects
that are within the capability of existing test equipment and Sanmina's programs
and processes. The performance of any repair or replacement by Sanmina does not
extend the warranty period for any products beyond the period applicable to the
product as originally delivered thereto. Novatel Wireless acknowledges that its
Inventory Purchase Commitment is absolute, and waives any rights it may have
against Sanmina for components purchased by Sanmina from third party vendors
which are no longer within the manufacturers' warranty.

EXCEPT FOR THE EXPRESS WARRANTIES HEREIN, SANMINA EXPRESSLY DISCLAIMS AND MAKES
NO WARRANTIES, GUARANTEES OR REPRESENTATIONS OF ANY KIND WHATSOEVER WITH RESPECT
TO THE CONDITION OF THE PRODUCTS OR ANY PARTS OR COMPONENTS THEREOF, EITHER
EXPRESS OR IMPLIED, ARISING BY LAW, IN CONTRACT, TORT, EQUITY OR OTHERWISE,
INCLUDING BUT NOT LIMITED TO ANY OBLIGATION OR LIABILITY OF SANMINA

                                 Page 20 of 23
<PAGE>

WITH RESPECT TO ANY WARRANTY AS TO FITNESS FOR USE, CONDITION, SERVICEABILITY,
SUITABILITY, VALUE, DESIGN, OPERATION OR MERCHANTIBILITY, AS THE CASE MAY BE,
ANY IMPLIED WARRANTY ARISING BY STATUTE OR COURSE OF PERFORMANCE, COURSE OF
DEALING OR USAGE OF TRADE.

IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INDIRECT,
CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGES, OR ANY DAMAGES WHATSOEVER
RESULTING FROM LOSS OF USE, DATA OR PROFITS, EVEN IF SUCH OTHER PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; IN NO EVENT SHALL SANMINA'S
LIABILITY UNDER THIS AGREEMENT (WHETHER ASSERTED AS A TORT CLAIM OR CONTRACT
CLAIM) EXCEED THE AMOUNTS PAID TO SANMINA FOR FINISHED PRODUCT HEREUNDER. IN NO
EVENT WILL SANMINA BE LIABLE FOR COSTS OF PROCUREMENT OF SUBSTITUTE GOODS BY
CUSTOMER. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL
PURPOSE OF ANY LIMITED REMEDY.

                                 Page 21 of 23
<PAGE>

EXHIBIT D

FORM OF SECURITY AGREEMENT

                             Intentionally Omitted

                                 Page 22 of 23
<PAGE>

EXHIBIT E

LIST OF RMA GOODS

<TABLE>
Date of Request:                                                        12/18/2001
----------------                                                        ----------
<S>                                                                     <C>
NOVATEL WIRELESS CONTACT INFORMATION                                    MANUFACTURER INFORMATION
  Name: Maurice Clarke                                                  COMPANY: SANMINA
  Position: Quality Assurance                                           CONTACT: TRINA GLASSCO
  Address: 9369 Towne Center Drive, Suite 110                           2300 Highway 79 Street, PO Box 1800
  City: San Diego                                          CA   92121   Guntersville
  Country: USA                                                          USA
  Phone: M. Clarke, (858) 812-0633 or Greg Adolph, (858) 812-3480       (256) 582-9350
  Fax: (858) 812-3416                                                   (256) 582-9329
  E-Mail: mclarke@novatelwireless.com
  NOVATEL WIRELESS RMA#      N/A
</TABLE>

<TABLE>
<CAPTION>
                                                     MRB  RETURNS TO SANMINA

    PART ID             PART DESC                                     QTY                REJECT COMMENTS
    -------             ---------                                     ----              ----------------
<S>                    <C>                                            <C>
    1016446            CDPD MODEM MODULE NRM-6812SM                   47   connector pins to short; wrong firmware version; no
                                                                           communication; bent connector pins.
   01016711            BULK CRADLES MINSTREL III                      396  no communication; excessive gap; PRI doesn't match
                                                                           modem; missing screw; stain
   01016810            BULK CRADLES OMNISKY MINSTREL V                25   no communication; antenna cracked
   01016815            BULK CRADLES ASSEMBLED OMNISKY MIN V           367  no communication; hot sync; gap; stain; bad
                                                                           logo; connector loose; rattle
    1016683            CDPD MODEM                                     761  no communication
 01016815-101          BULK CRADLE, OMNISKY (MIN V CONEXANT)          400  no communication

   01016820            BULK CRADLES NOVATEL MINSTREL V                372  no communication; hot sync; burned; missing
                                                                           screws; cracked; loose connector; bad antenna
 01016820-100          BULK CRADLE AETHER REWORK FUJITSU              31   no communication
 01016820-102          BULK CRADLES NOVATEL MIN V (CONEXANT)          10   no communication
 01016820-104          BULK CRADLE AETHER REWORK CONEXANT             18   no communication
    1017138            ASSY, MERLIN W/PLATINUM ANTENNA                11   antenna
   01016955            ASSY, BULK MERLIN                              1    Firmware error

 01016955-101          ASSY, BULK MERLIN (NO BRANDING)                14   no communication; programming error; not recognized
                                                                           as a merlin; damaged connector
 01016955-102          ASSY, BULK MERLIN NO BRANDING NO ANT           5    low RSSI; missing antenna
    1016981            CDPD MODEM MODULE                              579  EMG FALL-OUT

649496 00155 1         CDPD MODEM ASSEMBLY EXPEDITE                   70   gap; cracked board,; no communication; loose
                                                                           screw; warp; missing label.
649496 00317 3         EXPEDITE OEM - CONEXANT                        136  gap, missing label; hollow; cracked board; loose
                                                                           screw; loose connector; burned frame; Scratch
</TABLE>

<TABLE>
<CAPTION>
                                               RMA RETURNS TO SANMINA

<S>                    <C>                                             <C>
  01016446             CDPD MODEM MODULE NRM-6812SM                    271   no communication; no registration

  01016711             BULK CRADLES MINSTREL III                       152   Thumb traction pad; 14 Shell crack; 11 Gap; 4 Top
                                                                             Clip; 2 Battery connector pin; 1 Connector; 3
                                                                             Antenna; 11 Will not connect to the network; 7 No
                                                                             communication; 1 Wont hold charge; 2 Modem battery
                                                                             doesn't work; 1 Poor reception; 1 No power; 1 Low
                                                                             signal; 1 Modem discharges; 1 No battery; 49 (220) no
                                                                             communication; 15(999) no registration

  01016715             BULK CRADLES MINSTREL V REV 1                   1     no communication

  01016815             BULK CRADLES ASSEMBLED OMNISKY MIN V            37    no communication; no power connector; no
                                                                             registration; modem card damage; RSSI low; antenna
                                                                             broken

01016815-101           BULK CRADLE, OMNISKY (MIN V CONEXANT)           411   no communication; no registration; power jack; door
                                                                             latch; hotsync; antenna; bad logo; cracked,

  01016820             BULK CRADLES NOVATEL MINSTREL V                 124   no communication
01016820-100           BULK CRADLE AETHER REWORK FUJITSU               1     no communication
01016820-102           BULK CRADLES NOVATEL MIN V (CONEXANT)           75    no communication
01016820-104           BULK CRADLE AETHER REWORK CONEXANT              2     no communication
  01016955             ASSY,BULK MERLIN                                41    no communication
  01016683             CDPD MODEM MODULE                               1,433 EMG FALL-OUT
  01016981             CDPD MODEM MODULE                               1,722 EMG FALL-OUT
</TABLE>

                                 Page 23 of 23<PAGE>

                                                                   Exhibit 10.18

                               SECURITY AGREEMENT

        This Security Agreement (as amended, modified or otherwise supplemented
from time to time, this "SECURITY AGREEMENT"), dated as of January 12, 2002, is
executed by Novatel Wireless, Inc. a Delaware corporation (together with its
successors and assigns, "DEBTOR"), in favor of Sanmina-SCI Corporation, as
secured party (together with its successors and assigns, "SECURED PARTY").

                                    RECITALS

        A. Debtor and Secured Party have entered into a Settlement Agreement,
dated January 12, 2002, pursuant to which, Debtor has agreed, among other
things, to purchase inventory from Secured Party (as amended, modified or
supplemented from time to time, the "SETTLEMENT Agreement").

        B. In order to induce Secured Party to enter into the Settlement
Agreement, Debtor has agreed to enter into this Security Agreement and to grant
Secured Party the security interest in the Collateral described below.

                                    AGREEMENT

        NOW, THEREFORE, in consideration of the above recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Debtor hereby agrees with Secured Party as follows:

        1. Definitions and Interpretation. When used in this Security Agreement,
the following terms have the following respective meanings:

               "COLLATERAL" has the meaning given to that term in Section 2
hereof.

               "COVERED OBLIGATIONS" means all obligations of Debtor set forth
in Section II.A.3 and Section II.A.4 of the Settlement Agreement.

               "EVENT OF DEFAULT" means the occurrence of any of the following
events:

               (a) Debtor fails to pay within 5 business days of the date when
due any payment required under the terms of the Covered Obligations; or

               (b) Debtor fails to observe or perform any covenant, obligation,
condition or agreement contained in any Covered Obligation or in this Security
Agreement (except as specified in clause (a) above) and such failure continues
for a period of 15 days after notice from Security Party; provided that if such
failure cannot reasonably cured during such 15-day period and Debtor is
diligently pursuing such cure, such 15-day period shall be extended for a
reasonable time to accomplish such cure, but not to exceed 90 days; or

               (c) Any representation or warranty in this Security Agreement is
false, misleading, incorrect or incomplete in any material respect when made or
furnished; or

               (d) Debtor shall (i) apply for or consent to the appointment of a
receiver, trustee, liquidator or custodian of itself or of all or a substantial
part of its property; (ii) fail to pay its debts generally as they

<PAGE>

mature or admit in writing its inability to do the same; (iii) make a general
assignment for the benefit of its or any of its creditors; (iv) be dissolved or
liquidated; (v) become insolvent (as such term may be defined or interpreted
under any applicable statute); (vi) commence a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to
itself or its debts under any bankruptcy, insolvency or similar law now or
hereafter in effect or consent to any such relief or to the appointment of or
taking possession of its property by any official in an involuntary case or
other proceeding commenced against it; or (vii) take any action for the purpose
of effecting any of the foregoing; or

               (e) Proceedings for the appointment of a receiver, trustee,
liquidator or custodian of Debtor or any of its Subsidiaries or of all or a
substantial part of the property thereof, or an involuntary case or other
proceedings seeking liquidation, reorganization or other relief with respect to
Debtor or any of its Subsidiaries or the debts thereof under any bankruptcy,
insolvency or other similar law now or hereafter in effect shall be commenced or
an order for relief entered or such proceeding shall not be dismissed or
discharged within 30 days of commencement; or

               (f) either Section III.A.3 or Section III.A.4 of the Settlement
Agreement or this Security Agreement or any material term hereof shall cease to
be, or be asserted by Debtor not to be, a legal, valid and binding obligation of
Debtor enforceable in accordance with its terms or if the Liens of Secured Party
in any of the assets of Debtor shall cease to be or shall not be valid,
perfected Liens or Debtor shall assert that such Liens are not valid, perfected
Liens; or

               (g) A final judgment or order for the payment of money in excess
of $5,000,000 (exclusive of amounts covered by insurance issued by an insurer
not an affiliate of Debtor) shall be rendered against Debtor or any of its
Subsidiaries and the same shall remain undischarged for a period of 30 days
during which execution shall not be effectively stayed, or any judgment, writ,
assessment, warrant of attachment, or execution or similar process shall be
issued or levied against a substantial part of the property of Debtor or any of
its Subsidiaries and such judgment, writ or similar process shall not be
released, stayed, vacated or otherwise dismissed for a period of 30 days after
issue or levy.

               "INDEBTEDNESS" means (a) all obligations for borrowed money; (b)
all obligations evidenced by bonds, debentures, notes or similar instruments,
(c) all obligations to pay the deferred purchase price of property or services
(other than accounts payable incurred in the ordinary course of business); (d)
all obligations with respect to capital leases; (e) all obligations created or
arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person; (f) all reimbursement and other
payment obligations, contingent or otherwise, in respect of letters of credit;
and (g) all guaranty obligations with respect to the types of Indebtedness
listed in the foregoing clauses (a) through (f).

               "LIEN" means, with respect to any property, any security
interest, mortgage, pledge, lien, claim, charge or other encumbrance in, of, or
on such property or the income therefrom, including, without limitation, the
interest of a vendor or lessor under a conditional sale agreement, capital lease
or other title retention agreement, or any agreement to provide any of the
foregoing, and the filing of any financing statement or similar instrument under
the UCC or comparable law of any jurisdiction.

               "MATERIAL ADVERSE EFFECT" means a material adverse effect on (a)
the business, assets, operations, prospects or financial or other condition of
Debtor; (b) the ability of Debtor to pay or perform the Obligations in
accordance with the terms of the Covered Obligations or this Security Agreement
and to avoid an Event of Default, or an event which, with the giving of notice
or the passage of time or both, would constitute an Event of Default; or (c) the
rights and remedies of Secured Party under the Covered Obligations, this
Security Agreement or any related document, instrument or agreement (except for
the Settlement Agreement).

                                      -2-
<PAGE>

               "OBLIGATIONS" means all loans, advances, debts, liabilities and
obligations, howsoever arising, owed by Debtor to the Secured Party of every
kind and description (whether or not evidenced by any note or instrument and
whether or not for the payment of money), now existing or hereafter arising
under or pursuant to the terms of the Covered Obligations or this Security
Agreement, including, all interest, fees, charges, expenses, attorneys' fees and
costs and accountants' fees and costs chargeable to and payable by Debtor
thereunder, in each case, whether direct or indirect, absolute or contingent,
due or to become due, and whether or not arising after the commencement of a
proceeding under Title 11 of the United States Code (11 U.S.C. Section 101 et
seq.), as amended from time to time (including post-petition interest) and
whether or not allowed or allowable as a claim in any such proceeding; provided
that the aggregate amount of the Obligations secured hereby shall not exceed, on
any date, $4,000,000. The portion of the Obligations which are secured shall be
(a) first, the total of that portion of the Obligations paid by Debtor to
Secured Party within 91 days prior to the filing of any bankruptcy,
receivership, assignment for the benefit of creditors, or similar case, matter
or proceeding against or with respect to Debtor, any affiliate of Debtor or any
of their assets (the "BANKRUPTCY DATE"), if any, (b) second, any unpaid
Obligations existing on the Bankruptcy Date, if any, and (c) third, any
remaining Obligations.

               "PERMITTED LIENS" means (a) Liens for taxes not yet delinquent or
Liens for taxes being contested in good faith and by appropriate proceedings for
which adequate reserves have been established; (b) Liens in respect of property
or assets imposed by law which were incurred in the ordinary course of business,
such as carriers', warehousemen's, materialmen's and mechanics' Liens and other
similar Liens arising in the ordinary course of business which are not
delinquent or remain payable without penalty or which are being contested in
good faith and by appropriate proceedings; (c) Liens incurred or deposits made
in the ordinary course of business in connection with workers' compensation,
unemployment insurance and other types of social security, and mechanic's Liens,
carrier's Liens and other Liens to secure the performance of tenders, statutory
obligations, contract bids, government contracts, performance and return of
money bonds and other similar obligations, incurred in the ordinary course of
business, whether pursuant to statutory requirements, common law or consensual
arrangements, (d) Liens in favor of Secured Party,(e) Liens in favor of Silicon
Valley Bank or in favor of any Refinancing Senior Lender, (f) purchase money
security interests in specific items of equipment, (g) leases of specific items
of equipment, (h) Liens incurred in connection with the extension, renewal, or
refinancing of indebtedness secured by liens of the type described in clauses
(e), (f), and (g) above; and (i) Liens permitted pursuant to the Senior Lender
Documents.

               "PERSON" means an individual, a partnership, a corporation, a
business trust, a joint stock company, a limited liability company, an
unincorporated association or other entity and any domestic or foreign national,
state or local government, any political subdivision thereof, and any
department, agency, authority or bureau of any of the foregoing.

               "REFINANCING SENIOR LENDER" means bank or commercial finance
company, or syndicate of lenders which make loans in the ordinary course of
business and for which a bank or commercial finance company serves as agent,
that refinances all or any portion of the obligations of the Debtor to Silicon
Valley Bank and any to any other Refinancing Senior Lender.

               "SENIOR LENDER" means Silicon Valley Bank and any Refinancing
Senior Lender.

               "SENIOR LENDER DOCUMENTS" means any agreements, instruments, and
documents evidencing, securing, guaranteeing or otherwise relating to the
obligations of Debtor to any Senior Lender.

               "SUBSIDIARY" means (i) any corporation of which more than 50% of
the issued and outstanding equity securities having ordinary voting power to
elect a majority of the board of directors of such corporation is at the time
directly or indirectly owned or controlled by Debtor; (ii) any partnership,
joint

                                      -3-
<PAGE>

venture or other association of which more than 50% of the equity interest
having the power to vote, direct or control the management of such partnership,
joint venture or other association is at the time directly or indirectly owned
or controlled by Debtor; or (iii) any other entity included in the financial
statements of Debtor on a consolidated basis.

               "TRANSACTION DOCUMENTS" means the Settlement Agreement and this
Security Agreement.

               "UCC" means the Uniform Commercial Code as in effect in the State
of California from time to time.

All capitalized terms not otherwise defined herein shall have the respective
meanings given in the Settlement Agreement. Terms defined in the UCC and not
otherwise defined herein shall have the respective meanings set forth in the
UCC.

        2. Grant of Security Interest. As security for the Obligations, Debtor
hereby pledges to Secured Party and grants to Secured Party a security interest
in all right, title and interests of Debtor in and to the property described in
Attachment 1 hereto, whether now existing or hereafter from time to time
acquired (collectively, the "COLLATERAL").

        3. Representations and Warranties. Debtor represents and warrants to
Secured Party that:

               (a) Due Incorporation, Qualification, etc. Debtor (i) is a
corporation duly organized, validly existing and in good standing under the laws
of its state of incorporation; (ii) has the power and authority to own, lease
and operate its properties and carry on its business as now conducted; and (iii)
is duly qualified, licensed to do business and in good standing as a foreign
corporation in each jurisdiction where the failure to be so qualified or
licensed could reasonably be expected to have a Material Adverse Effect.

               (b) Authority. The execution and delivery by Debtor of each
Transaction Document and the performance by Debtor of the Covered Obligations
and this Security Agreement and the consummation of the transactions
contemplated by this Security Agreement (i) are within the power of Debtor and
(ii) have been duly authorized by all necessary actions on the part of Debtor.

               (c) Enforceability. Each Transaction Document has been duly
executed and delivered by Debtor and each of the Covered Obligations and this
Security Agreement constitutes a legal, valid and binding obligation of Debtor,
enforceable against Debtor in accordance with its terms, except as limited by
bankruptcy, insolvency or other laws of general application relating to or
affecting the enforcement of creditors' rights generally and general principles
of equity.

               (d) Non-Contravention. The execution and delivery by Debtor of
the Transaction Documents and the performance and consummation of the Covered
Obligations and the transactions contemplated by this Security Agreement do not
and will not (i) violate the Certificate of Incorporation or Bylaws of the
Debtor or violate in any material respect any judgment, order, writ, decree,
statute, rule or regulation applicable to Debtor; (ii) violate any provision of,
or result in the breach or the acceleration of, or entitle any other Person to
accelerate (whether after the giving of notice or lapse of time or both), any
material mortgage, indenture, agreement, instrument or contract to which Debtor
is a party or by which it is bound; or (iii) result in the creation or
imposition of any Lien upon any property, asset or revenue of Debtor (other than
any Lien arising under this Security Agreement) or the suspension, revocation,
impairment, forfeiture, or nonrenewal of any material permit, license,
authorization or approval applicable to Debtor, its business or operations, or
any of its assets or properties.

                                      -4-
<PAGE>

               (e) Approvals. No consent, approval, order or authorization of,
or registration, declaration or filing with, any governmental authority or other
Person (including, without limitation, the shareholders of any Person) is
required in connection with the execution and delivery of the Transaction
Documents by Debtor and the performance of the Covered Obligations and this
Security Agreement and the consummation of the transactions contemplated by the
Security Agreement, except for filings required to perfect security interest
granted pursuant to this Security Agreement.

               (f) No Violation or Default. Debtor is not in violation of or in
default with respect to (i) its Certificate of Incorporation or Bylaws or any
judgment, order, writ, decree, statute, rule or regulation applicable to Debtor;
(ii) any mortgage, indenture, agreement, instrument or contract to which Debtor
is a party or by which it is bound (nor is there any waiver in effect which, if
not in effect, would result in such a violation or default), where, in each
case, such violation or default, individually, or together with all such
violations or defaults, could reasonably be expected to have a Material Adverse
Effect.

               (g) Litigation. No actions (including, without limitation,
derivative actions), suits, proceedings or investigations are pending or, to the
knowledge of Debtor, threatened against Debtor at law or in equity in any court
or before any other governmental authority which (i) could reasonably be
expected (alone or in the aggregate) to have a Material Adverse Effect or (ii)
seek to enjoin, either directly or indirectly, the execution or delivery by
Debtor of the Transaction Documents or the performance by Debtor of the Covered
Obligations or this Security Agreement or the transactions contemplated by this
Security Agreement.

               (h) Collateral. (i) Debtor is the owner of the Collateral (or, in
the case of after-acquired Collateral, at the time Debtor acquires rights in the
Collateral, will be the owner thereof) free and clear of all Liens other than
Permitted Liens; (ii) upon the filing of UCC-1 financing statements in the
appropriate filing offices, Secured Party has (or in the case of after-acquired
Collateral, at the time Debtor acquires rights therein, will have) a perfected
security interest in the Collateral to the extent that a security interest in
the Collateral can be perfected by such filing, except for Permitted Liens;
(iii) all inventory has been (or, in the case of hereafter produced inventory,
will be) produced in compliance with applicable laws, including the Fair Labor
Standards Act; (iv) the accounts receivable and payment intangibles are genuine
and enforceable against the parties obligated to pay the same; (v) the originals
of all documents evidencing all accounts receivable and payment intangibles of
Debtor and the only original books of account and records of Debtor relating
thereto are, and will continue to be, kept at the chief executive office of
Debtor set forth on Schedule B or at such other locations as Debtor may
establish in accordance with Section 4(d), and (f) all information set forth in
Schedules A and B hereto is true and correct.

        4. Covenants Relating to Collateral. Debtor hereby agrees (a) to perform
all acts that may be necessary to maintain, preserve, protect and perfect the
Collateral, the Lien granted to Secured Party therein and the perfection and
priority of such Lien, except for Permitted Liens; (b) not to use or permit any
Collateral to be used (i) in violation in any material respect of any applicable
law, rule or regulation, or (ii) in violation of any policy of insurance
covering the Collateral; (c) to pay promptly when due all taxes and other
governmental charges, all Liens and all other charges now or hereafter imposed
upon or affecting any Collateral; provided that Debtor may contest taxes in good
faith and by appropriate proceedings; (d) without 30 days' written notice to
Secured Party, (i) not to change Debtor's name or place of business (or, if
Debtor has more than one place of business, its chief executive office), or the
office in which Debtor's records relating to accounts receivable and payment
intangibles are kept, (ii) not to change Debtor's state of incorporation, (iii)
not to keep Collateral consisting of chattel paper at any location other than
its chief executive office set forth in item 1 of Schedule B hereto, and (iv)
not to keep Collateral consisting of equipment or inventory at any location
other than the locations set forth in item 6 of Schedule B hereto, (f) to
procure, execute and deliver from time to time any endorsements, assignments,
financing statements and other writings reasonably deemed necessary or
appropriate by Secured Party to perfect, maintain and protect its

                                      -5-
<PAGE>

Lien hereunder and the priority thereof and, subject to the provisions of the
security agreement with any Senior Lender, to deliver promptly to Secured Party
all originals of Collateral consisting of instruments; (g) to appear in and
defend any action or proceeding which may affect its title to or Secured Party's
interest in the Collateral; (h) to keep separate, accurate and complete records
of the Collateral and to provide Secured Party with such records and such other
reports and information relating to the Collateral as Secured Party may
reasonably request from time to time; (i) not sell, encumber, lease, rent, or
otherwise dispose of or transfer all or substantially all of the Collateral and
to keep the Collateral free of all Liens other than Permitted Liens; (j) to
comply with all material requirements of law relating to the production,
possession, operation, maintenance and control of the Collateral (including the
Fair Labor Standards Act); (k) to permit Secured Party and its representatives
the right, at any time during normal business hours, upon reasonable prior
notice, to visit and inspect the properties of Debtor and its corporate,
financial and operating records, and make abstracts therefrom, and to discuss
Debtor's affairs, finances and accounts with its directors, officers and
independent public accountants; and (l) not to maintain any deposit account at a
bank with respect to which Secured Party has not entered into a control
agreement sufficient to perfect its security interest in such deposit account;
provided, however, that at any time when the Inventory Purchase Commitment is
equal to or less than $4,500,000, Debtor may maintain deposit accounts at any
bank so long as it has used its commercially reasonable efforts to obtain a
control agreement from such bank sufficient to perfect Secured Party's security
interest in any such deposit account. Secured Party agrees that it will not
exercise its rights under any control agreement unless an Event of Default has
occurred and is continuing.

        5. Authorized Action by Secured Party. Debtor hereby irrevocably
appoints Secured Party as its attorney-in-fact (which appointment is coupled
with an interest) and agrees that Secured Party may perform (but Secured Party
shall not be obligated to and shall incur no liability to Debtor or any third
party for failure so to do) any act which Debtor is obligated by this Security
Agreement to perform but does not perform, and to exercise such rights and
powers as Debtor might exercise with respect to the Collateral, including the
right to (a) collect by legal proceedings or otherwise and endorse, receive and
receipt for all dividends, interest, payments, proceeds and other sums and
property now or hereafter payable on or on account of the Collateral; (b) enter
into any extension, reorganization, deposit, merger, consolidation or other
agreement pertaining to, or deposit, surrender, accept, hold or apply other
property in exchange for the Collateral; (c) make any compromise or settlement,
and take any action it deems advisable, with respect to the Collateral; (d)
insure, process and preserve the Collateral; (e) pay any indebtedness of Debtor
relating to the Collateral; and (f) execute UCC financing statements and other
documents, instruments and agreements required hereunder; provided, however,
that Secured Party shall not exercise any such powers granted pursuant to
subsections (a) through (e) prior to the occurrence of an Event of Default and
shall only exercise such powers during the continuance of an Event of Default.
Debtor agrees to reimburse Secured Party promptly upon demand for any reasonable
costs and expenses, including reasonable attorneys' fees, Secured Party may
incur while acting as Debtor's attorney-in-fact hereunder, all of which costs
and expenses are included in the Obligations. It is further agreed and
understood between the parties hereto that such care as Secured Party gives to
the safekeeping of its own property of like kind shall constitute reasonable
care of the Collateral when in Secured Party's possession; provided, however,
that Secured Party shall not be required to make any presentment, demand or
protest, or give any notice and need not take any action to preserve any rights
against any prior party or any other person in connection with the Obligations
or with respect to the Collateral.

        6. Litigation and Other Proceedings

               (a) Debtor shall have the right and obligation to commence and
diligently prosecute such suits, proceedings or other actions for infringement
or other damage, or reexamination or reissue proceedings, or opposition or
cancellation proceedings as are reasonable to protect any of the patents,
trademarks, copyrights, mask works or trade secrets. If an Event of Default has
occurred and is continuing, no such suit, proceeding or other actions shall be
settled or voluntarily dismissed, nor shall any party be released or

                                      -6-
<PAGE>

excused of any claims of or liability for infringement, without the prior
written consent of Secured Party, which consent shall not be unreasonably
withheld, delayed or conditioned.

               (b) Upon the occurrence and during the continuance of an Event of
Default, Secured Party shall have the right but not the obligation to bring suit
or institute proceedings in the name of Debtor or Secured Party to enforce any
rights in the Collateral, including any license thereunder, in which event
Debtor shall at the request of Secured Party do any and all lawful acts and
execute any and all documents reasonably required by Secured Party in aid of
such enforcement. If Secured Party elects not to bring suit to enforce any right
under the Collateral, including any license thereunder, Debtor agrees to use all
reasonable measures, whether by suit, proceeding or other action, to cause to
cease any infringement of any material right under the Collateral by any Person
and for that purpose agrees to diligently maintain any action, suit or
proceeding against any Person so infringing necessary to prevent such
infringement.

        7. Default and Remedies.

               (a) Default. Debtor shall be deemed in default under this
Security Agreement upon the occurrence and during the continuance of an Event of
Default.

               (b) Remedies. Upon the occurrence and during the continuance of
any such Event of Default, Secured Party shall have the rights of a secured
creditor under the UCC, all rights granted by this Security Agreement and by
law, including the right to: (a) require Debtor to assemble the Collateral and
make it available to Secured Party at a place to be reasonably designated by
Secured Party; and (b) prior to the disposition of the Collateral, store,
process, repair or recondition it or otherwise prepare it for disposition in any
manner and to the extent Secured Party deems appropriate and in connection with
such preparation and disposition, without charge, use any trademark, trade name,
copyright, patent or technical process used by Debtor. Debtor hereby agrees that
ten (10) days' notice of any intended sale or disposition of any Collateral is
reasonable. In furtherance of Secured Party's rights hereunder, Debtor hereby
grants to Secured Party an irrevocable, non-exclusive license (exercisable
without royalty or other payment by Secured Party, but only in connection with
the exercise of remedies hereunder) to use, license or sublicense any patent,
trademark, trade name, copyright or other intellectual property in which Debtor
now or hereafter has any right, title or interest together with the right of
access to all media in which any of the foregoing may be recorded or stored.

        8. Miscellaneous.

               (a) Notices. Except as otherwise provided herein, all notices,
requests, demands, consents, instructions or other communications to or upon
Debtor or Secured Party under this Security Agreement shall be by telecopy or in
writing and telecopied, mailed or delivered to each party at telecopier number
or its address set forth below (or to such other telecopy number or address as
the recipient of any notice shall have notified the other in writing). All such
notices and communications shall be effective (a) when sent by Federal Express
or other overnight service of recognized standing, on the business day following
the deposit with such service; (b) when mailed, by registered or certified mail,
first class postage prepaid and addressed as aforesaid through the United States
Postal Service, upon receipt; (c) when delivered by hand, upon delivery; and (d)
when telecopied, upon confirmation of receipt.

                                      -7-
<PAGE>

        Secured Party:       Sanmina-SCI Corporation
                             2700 North First Street
                             San Jose, CA  95134
                             Telephone: (408) 964-3600
                             Facsimile: (408) 964-3636
                             Attention:  General Counsel

        Debtor:              Novatel Wireless, Inc.
                             9360 Towne Centre Drive
                             San Diego, CA  92121
                             Telephone:     (858) 812-3415
                             Facsimile:     (858) 812-3414
                             Attention:     Melvin Flowers

               (b) Nonwaiver. No failure or delay on Secured Party's part in
exercising any right hereunder shall operate as a waiver thereof or of any other
right nor shall any single or partial exercise of any such right preclude any
other further exercise thereof or of any other right.

               (c) Amendments and Waivers. This Security Agreement may not be
amended or modified, nor may any of its terms be waived, except by written
instruments signed by Debtor and Secured Party. Each waiver or consent under any
provision hereof shall be effective only in the specific instances for the
purpose for which given.

               (d) Assignments. This Security Agreement shall be binding upon
and inure to the benefit of Secured Party and Debtor and their respective
successors and assigns; provided, however, that Debtor may not sell, assign (by
operation of law or otherwise) or delegate rights and obligations hereunder
without the prior written consent of Secured Party, which consent shall not be
unreasonably withheld, delayed or conditioned; provided that Debtor may merge
with any Person so long as either (i) Debtor is the surviving Person or (ii) the
surviving Person has assumed all obligations under the Covered Obligations and
this Security Agreement.

               (e) Cumulative Rights, etc. The rights, powers and remedies of
Secured Party under this Security Agreement shall be in addition to all rights,
powers and remedies given to Secured Party by virtue of any applicable law, rule
or regulation of any governmental authority, the Transaction Documents or any
other agreement, all of which rights, powers, and remedies shall be cumulative
and may be exercised successively or concurrently without impairing Secured
Party's rights hereunder. Debtor waives any right to require Secured Party to
proceed against any Person or to exhaust any Collateral or to pursue any remedy
in Secured Party's power.

               (f) Payments Free of Taxes, Etc. Debtor shall pay upon demand any
stamp or other taxes, levies or charges of any jurisdiction with respect to the
execution, delivery, registration, performance and enforcement of this Security
Agreement. Upon request by Secured Party, Debtor shall furnish evidence
reasonably satisfactory to Secured Party that all requisite authorizations and
approvals by, and notices to and filings with, governmental authorities and
regulatory bodies have been obtained and made and that all requisite taxes,
levies and charges have been paid.

               (g) Partial Invalidity. If at any time any provision of this
Security Agreement is or becomes illegal, invalid or unenforceable in any
respect under the law or any jurisdiction, neither the legality, validity or
enforceability of the remaining provisions of this Security Agreement nor the
legality, validity or

                                      -8-
<PAGE>
enforceability of such provision under the law of any other jurisdiction shall
in any way be affected or impaired thereby.

               (h) Expenses. If an Event of Default has occurred and is
continuing, Debtor shall pay on demand all reasonable fees and expenses,
including reasonable attorneys' fees and expenses, incurred by Secured Party in
connection with custody, preservation or sale of, or other realization on, any
of the Collateral or the enforcement or attempt to enforce any of the
Obligations which is not performed as and when required by this Security
Agreement.

               (i) Headings. Headings in this Security Agreement are for
convenience of reference only and are not part of the substance hereof or
thereof.

               (j) Plural Terms. All terms defined in this Security Agreement in
the singular form shall have comparable meanings when used in the plural form
and vice versa.

               (k) Construction. This Security Agreement is the result of
negotiations among, and has been reviewed by, Debtor, Secured Party and their
respective counsel. Accordingly, this Security Agreement shall be deemed to be
the product of all parties hereto, and no ambiguity shall be construed in favor
of or against Debtor or Secured Party.

               (l) Entire Agreement. This Security Agreement, the Settlement
Agreement and the other documents executed in connection with the Settlement
Agreement, taken together, constitute and contain the entire agreement of Debtor
and Secured Party and supersede any and all prior agreements, negotiations,
correspondence, understandings and communications among the parties, whether
written or oral, respecting the subject matter hereof.

               (m) Other Interpretive Provisions. References in this Security
Agreement to any document, instrument or agreement (a) includes all exhibits,
schedules and other attachments thereto, (b) includes all documents, instruments
or agreements issued or executed in replacement thereof, and (c) means such
document, instrument or agreement, or replacement or predecessor thereto, as
amended, modified and supplemented from time to time and in effect at any given
time. The words "hereof," "herein" and "hereunder" and words of similar import
when used in this Security Agreement refer to this Security Agreement as a whole
and not to any particular provision of this Security Agreement. The words
"include" and "including" and words of similar import when used in this Security
Agreement shall not be construed to be limiting or exclusive.

               (n) Governing Law. This Security Agreement shall be governed by
and construed in accordance with the laws of the State of California without
reference to conflicts of law rules (except to the extent governed by the UCC).

               (o) Termination. This Security Agreement and all obligations of
Debtor hereunder and all security interests granted hereby shall be released and
terminated when all Covered Obligations have been indefeasibly satisfied in
full. Upon such release and termination of all Covered Obligations and the
security interest hereunder, all rights in and to the Collateral granted or
pledged by Debtor hereunder shall automatically revert to Debtor, and Secured
Party shall return any pledged Collateral in its possession to Debtor, or to the
Person or Persons legally entitled thereto, and shall endorse, execute, deliver,
record and file all instruments and documents, and do all other acts and things,
reasonably required for the return of the Collateral to Debtor, or to the Person
or Persons legally entitled thereto (and Debtor is authorized to do the same to
the extent permitted by law) and to evidence or document the release of the
interests of Secured Party arising under this Security Agreement, all as
reasonably requested by, and at the sole expense of, Debtor.

                                      -9-
<PAGE>

        Debtor and Security Party have caused this Security Agreement to be
executed as of the day and year first above written.

                                                 Novatel Wireless, Inc.

                                                 By:  /s/ Melvin L. Flowers
                                                    ---------------------------
                                                 Name: Melvin L. Flowers
                                                 Title: Senior Vice President
                                                        and Chief Financial
                                                        Officer

AGREED:

Sanmina-SCI Corporation,
as Secured Party

By:  /s/ Steven H. Jackman
    -----------------------------------
Name: Steven H. Jackman
Title: Vice President-Corporate Counsel

                                      -10-
<PAGE>

                                  ATTACHMENT 1

                              TO SECURITY AGREEMENT

        All right, title, interest, claims and demands of Debtor in and to the
following property:

               (i) All goods and equipment now owned or hereafter acquired,
including, without limitation, all laboratory equipment, computer equipment,
office equipment, machinery, fixtures, vehicles, and any interest in any of the
foregoing, and all attachments, accessories, accessions, replacements,
substitutions, additions, and improvements to any of the foregoing, wherever
located;

               (ii) All inventory now owned or hereafter acquired, including,
without limitation, all merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products including such
inventory as is temporarily out of Debtor's custody or possession or in transit
and including any returns upon any accounts or other proceeds, including
insurance proceeds, resulting from the sale or disposition of any of the
foregoing and any documents of title representing any of the above, and Debtor's
books relating to any of the foregoing;

               (iii) All contract rights, general intangibles, health care
insurance receivables, payment intangibles and commercial tort claims, now owned
or hereafter acquired, including, without limitation, all patents, patent rights
(and applications and registrations therefor), trademarks and service marks (and
applications and registrations therefor), inventions, copyrights, mask works
(and applications and registrations therefor), trade names, trade styles,
software and computer programs, trade secrets, methods, processes, know how,
drawings, specifications, descriptions, and all memoranda, notes, and records
with respect to any research and development, goodwill, license agreements,
franchise agreements, blueprints, drawings, purchase orders, customer lists,
route lists, infringements, claims, computer programs, computer disks, computer
tapes, literature, reports, catalogs, design rights, income tax refunds,
payments of insurance and rights to payment of any kind and whether in tangible
or intangible form or contained on magnetic media readable by machine together
with all such magnetic media;

               (iv) All now existing and hereafter arising accounts, contract
rights, royalties, license rights and all other forms of obligations owing to
Debtor arising out of the sale or lease of goods, the licensing of technology or
the rendering of services by Debtor (subject, in each case, to the contractual
rights of third parties to require funds received by Debtor to be expended in a
particular manner), whether or not earned by performance, and any and all credit
insurance, guaranties, and other security therefor, as well as all merchandise
returned to or reclaimed by Debtor and Debtor's books relating to any of the
foregoing;

               (v) All documents, cash, deposit accounts, letters of credit,
letter of credit rights, supporting obligations, certificates of deposit,
instruments, chattel paper, electronic chattel paper, tangible chattel paper and
investment property, including, without limitation, all securities, whether
certificated or uncertificated, security entitlements, securities accounts,
commodity contracts and commodity accounts, and all financial assets held in any
securities account or otherwise, wherever located, now owned or hereafter
acquired and Debtor's books relating to the foregoing; and

               (vi) Any and all claims, rights and interests in any of the above
and all substitutions for, additions and accessions to and proceeds thereof,
including, without limitation, insurance, condemnation, requisition or similar
payments and the proceeds thereof.

<PAGE>

                                   SCHEDULE A
                              TO SECURITY AGREEMENT

                                   COPYRIGHTS

<TABLE>
<CAPTION>
   Description                     Registration Date                Registration No.
   -----------                     -----------------                ----------------
<S>                                <C>                              <C>
None.
</TABLE>

                                     PATENTS

<TABLE>
<CAPTION>
       Title                        Date Issued                      Patent No.
       -----                        -----------                      ----------
<S>                                 <C>                              <C>
Multi-position PC card antenna      September 18, 2001               6,292,148
assembly

Duplexing antenna for portable      May 9, 2000                      6,061,024
radio transceiver

Pulse width modulation pulse        July 1, 1997                     5,644,311
shaper

Wireline interface for cellular     June 11, 1996                    5,526,403
telephone

Automatic level control circuit     August 1, 1995                   5,438,683
for dual mode analog/digital
cellular telephone

System for securing mobile          August 9, 1994                   5,337,345
telephones from unauthorized
transmission

Noise-reduction system              July 27, 1993                    5,231,407

Radio telephone using received      July 7, 1992                     5,129,098
signal strength in controlling
transmission power

Bus for a cellular telephone        April 28, 1992                   5,109,402

Power detector utilizing bias       August 27, 1991                  5,043,672
voltage divider for precision
control of an amplifier

RF power-control circuit            March 26, 1991                   5,003,270

RF power-control circuit            August 28, 1990                  4,952,886

Controlled output amplifier and     July 26, 1988                    4,760,347
power detector thereof
</TABLE>

<PAGE>

                               PATENT APPLICATIONS

<TABLE>
<CAPTION>
          Title                     Application Date                 Application No.
          -----                     -----------------                ---------------
<S>                                 <C>                              <C>
Method and Apparatus for            10/11/00                         09/976,703
Auto-Sleep of RF Wireless Modem

Method and Apparatus for            8/23/00; 8/23/01                 09/938,357
Distributed Data Transfer over
Multiple Independent Wireless
Networks

Distributed Architecture Wireless   8/11/00; 8/13/01                 09/925,566
RF Modem

Over the Air Wireless Data Modem    8/22/00; 8/22/01                 09/935,376
Programming

Method and Apparatus for a          8/11/00; 8/8/01                  09/925,565
Software Configurable Wireless
Modem Adaptable For Multiple
Modes of Operation

Method and Apparatus for A          8/11/00; 8/13/01                 09/929,252
Frequency Agile, Variable
Bandwith Radio Transceiver

Method and Apparatus for            8/23/00; 8/23/01                 09/935,484
Transmitter Noise Cancellation in
an RF Communications System

Systems and Methods for             3/5/01; 5/21/01                  60/273,760
Multi-Platform Wireless Modem

System and Methods for a Wireless   3/5/01; 5/21/01                  60/273,760
Modem Interface

Method and Apparatus for            9/16/01; 9/17/01                 60/322,535
Pass-through Charging of PDA by
Attachable Modem

Systems and Methods for A           2/21/01                          09/790,428
Wireless Modem Assembly

Systems and Methods for             5/18/01                          09/858,672
Intelligent Inter-System Handoff

Multi-Mode Cradle Adapter for PDA   5/21/01

Object Oriented Software            5/21/01                          09/961,508
Architecture for Software
Reconfigurable Wireless Modem
</TABLE>

<PAGE>

<TABLE>
<S>                                 <C>                              <C>
Systems and Methods for a Dialer    3/16/01                          60/276,800
Function

Systems and Methods for Using a     6/8/01                           09/877,886
Wireless Modem Card

Systems and Methods for An Energy   8/3/01                           09/925,238
Storage Based Power Supply Circuit

Method and Apparatus for Sharing    9/17/01                          60/322,535
an External Power Supply Between
a PDA and RF Wireless Modem

RF Wireless Modem - Minstrel 540    11/21/00                         29/133,103

Systems and Methods for Removable   2/21/01                          60/270,558
Attachment of an RF Wireless Modem

Dialer Application Display Screen   3/15/01                          29/138,653
for a Portable Computing Device

Wireless Modem Sleeve               3/19/01                          29/138,814

RF Wireless Modem - Minstrel S      11/21/00                         29/133,108

Method and Apparatus for Low        10/11/00                         60/239,776
Power Operation of RF Wireless
Modem

Method and Apparatus for a          9/11/00                          60/231,675
Universal Switched Capacitor
Radio Frequency Receive Filter

Method and Apparatus for            8/24/00                          60/227,723
Triggering a Mode Change in a
Software Radio

Icon for a Portable Computing       3/15/01                          29/138,656
Device Screen

Icon for a Portable Computing       3/15/01                          29/138,655
Device Screen

Icon for a Portable Computing       3/15/01                          29/138,659
Device Screen

Systems and Methods for             9/21/01                          09/961,459
Multi-Mode Wireless Communication

Wireless Modem                      2/23/01                          29/137,616

Display Screen for a Portable       3/15/01                          29/138,654
Computing Device
</TABLE>

<PAGE>

<TABLE>
<S>                                 <C>                              <C>
Adaptive Modem Architecture for     8/11/00                          60/224,727
Multiple Wireless Standards

Systems and Methods for a Dialer    3/16/01                          60/276,800
Function
</TABLE>

                                   TRADEMARKS

<TABLE>
<CAPTION>
        Mark                        Registration Date                Registration No.
        ----                        -----------------                ----------------
<S>                                 <C>                              <C>

NWIDIRECT                           March 2, 2001                    76219167

NWIDIRECT.COM                       March 6, 2001                    76220816

Expedite                            March 30, 2001                   76236619

Novatel Wireless                    February 8, 2001                 76208493

Lancer                              April 3, 2000                    76016964

Merlin                              July 1, 1999                     75742650
</TABLE>

                             TRADEMARK APPLICATIONS

<TABLE>
<CAPTION>
        Mark                        Application Date                  Application No.
        ----                        ----------------                  ---------------
<S>                                 <C>                              <C>

None.
</TABLE>

                                   MASK WORKS

<TABLE>
<CAPTION>
    Description                     Registration Date                Registration No.
    -----------                     -----------------                ----------------
<S>                                 <C>                              <C>

None.
</TABLE>

<PAGE>

                                   SCHEDULE B
                              TO SECURITY AGREEMENT

                                 DEBTOR PROFILE

        1. NAME. The legal name of Debtor is and the address of its chief
executive office is: Novatel Wireless, Inc., 9360 Towne Centre Drive, San Diego,
CA 92121.

        2. ORGANIZATIONAL IDENTIFICATION NUMBER; FEDERAL EMPLOYER IDENTIFICATION
NUMBER. The Debtor's organizational identification number in its state of
incorporation is 2614230 and Debtor's federal employer identification number is
86-0824673.

        3. STATE OF INCORPORATION; PRIOR NAMES. Debtor was incorporated on April
26, 1996 in the state of Delaware. Since its incorporation Debtor has had the
following legal names (other than its current legal name):

                                            Date Debtor's Name
        Prior Name                          Was Changed From Such Name
        ----------                          --------------------------

        None.

        4. Debtor does business under the following trade names:

<TABLE>
<CAPTION>
        Trade Name        Is This Name Registered?     Registration No.     Registration Date
        ----------        ------------------------     ----------------     -----------------
        <S>               <C>                          <C>                  <C>
        Novatel Wireless            Yes                   76208493          February 8, 2001
</TABLE>

        5. PLACE OF BUSINESS. Debtor has the following places of business:

<TABLE>
<CAPTION>
        Address                                           Owner of Location
        -------                                           -----------------
<S>                                                       <C>
        9360 Towne Centre Drive, Suite 110                SICOR, Inc.
        San Diego, CA  92121                              19 Hughes
                                                          Irvine, CA  92618

        6715 8th Street, N.E.                             Sun Life Insurance Company of Canada
        Calgary, AB T2E 7H7                               140 4th Avenue
                                                          Calgary AB T2P 3N3
</TABLE>

        6. ASSETS IN POSSESSION OF THIRD PARTIES. The following are names and
addresses of all persons or entities other than Debtor, such as lessees,
consignees, warehousemen or purchasers of chattel paper, which have possession
or are intended to have possession of any of the Collateral consisting of
instruments, chattel paper, inventory or equipment:

        Name          Mailing Address              County               State
        ----          ---------------              ------               -----

<PAGE>

        A portion of Debtor's inventory, in the ordinary course of business, if
often held at third party contract manufacturers. Currently, Solectron is a
bailee for certain of our inventory, Silicon Valley Bank has a lien on the
inventory held by Solectron as further described in paragraph 8 below.

        7. QUALIFICATION TO DO BUSINESS. Debtor is qualified to do business in
the following states:

        o       California

        o       Arizona

        8. EXISTING SECURITY INTERESTS. Debtor's assets are subject to the
following security interest of Persons other than the Secured Party:

        Assets                              Name of Secured Party
        ------                              ---------------------

        All assets                          Silicon Valley Bank

        Agilient Technologies filed a UCC-1 securing approximately $350,000 in
software lease payments. The payments are secured by a purchase money security
interest in software evidenced by lease no. 90067081 entered into on October 30,
2000 and lease no. 72000333 entered into on April 27, 2000.

        9. SUBSIDIARIES. Debtor has the following subsidiaries (list
jurisdiction of incorporation):

        Novatel Wireless Solutions, Inc., a Delaware corporation

        Novatel Wireless Technologies Ltd., incorporated in Alberta, Canada.

        10. SECURITIES; INSTRUMENTS. The following is a complete list of all
stocks, bonds, debentures, notes and other securities and investment property
owned by Debtor (provide name of issuer, whether certificated or uncertificated,
certificate no. (if applicable), number of shares):

        None, except for subsidiaries listed in Number 9 above.

        11. BANK ACCOUNTS; SECURITIES ACCOUNTS: The following is a complete list
of all bank accounts and securities accounts maintained by Debtor (provide name
and address of depository bank (or brokerage firm), type of account and account
number):

        See Schedule B-1 attached hereto.

<PAGE>
                                                                    SCHEDULE B-1

                             NOVATEL WIRELESS, INC.

                            SUMMARY OF CASH ACCOUNTS

                             Intentionally Omitted.

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