Document:

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                                                                   EXHIBIT 10.11

        TECHNOLOGY LICENSE, MANUFACTURING AND PURCHASE AGREEMENT

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

        WHEREAS, Metricom has developed a Network; and

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

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

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

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

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

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

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

PART I: DEFINITIONS

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

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

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

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

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

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

               1.5 "FCC" means the Federal Communications Commission.

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

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

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

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

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

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

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

               1.13 "NETWORK" means Metricom's Ricochet network.

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

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

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

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

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

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

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

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

PART II: TECHNOLOGY LICENSE, DEVELOPMENT AND MANUFACTURING

        2. LICENSE GRANTS.

               2.1 METRICOM LICENSE GRANT.

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

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

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

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

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

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

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

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

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

        3. DEVELOPMENT AND MANUFACTURING.

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

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

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

               3.4 NRE COSTS.  ***

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

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

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

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

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

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

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

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

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

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

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

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

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

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

        4. OWNERSHIP AND INTELLECTUAL PROPERTY.

               4.1 OWNERSHIP.

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

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

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

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

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

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

        5. TRADEMARKS.

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

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

               6.1 ***

               6.2 ***

               6.3 ***

                      (a) ***

                      (b) ***

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

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

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               6.4 INSPECTION OF ROYALTY RECORDS.

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

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

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

               6.5 OBLIGATION TO PAY. ***

PART III: SUPPLY TO AND PURCHASE OF MODEMS BY METRICOM

        7. MODEM PURCHASES.

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

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

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

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

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

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

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

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

               7.4 PURCHASE ORDERS.

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

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

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

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

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

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

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

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

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

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

        8. MODEM SUPPORT.

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

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

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               8.3 METRICOM SUPPORT OBLIGATIONS.

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

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

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

               8.4 NOVATEL SUPPORT OBLIGATIONS.

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

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

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

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

        9. PRICE AND PAYMENT.

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

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

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

                                      -11-
<PAGE>   12
               9.3 PAYMENT.

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

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

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

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

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

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

        10. INCENTIVES AND PENALTIES.

               10.1 ***

               10.2 ***

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

PART IV: GENERAL

        12. CONFIDENTIALITY.

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

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

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

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

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

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

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

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

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

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

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

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

        13. TERM AND TERMINATION.

               13.1 TERM. This Agreement will commence as of the Effective Date
and, unless sooner terminated as provided hereunder, ***. The term may be
extended only upon the mutual written agreement of the parties.

               13.2 TERMINATION FOR CAUSE.

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

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

               13.3 EFFECT OF TERMINATION.

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

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

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

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

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

        14. REPRESENTATIONS AND WARRANTIES.

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

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

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

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

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

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

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

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

        15. INDEMNIFICATION.

               15.1 INFRINGEMENT INDEMNITY.

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

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

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

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

        16. LIMITATION OF LIABILITY.

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

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

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

        18. MISCELLANEOUS PROVISIONS.

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

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

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

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

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

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

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

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

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

                             if to Novatel, addressed to:

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

                                      -18-
<PAGE>   19

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

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

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

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

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

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

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

METRICOM, INC.                           NOVATEL WIRELESS, INC.

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

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

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

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

                                      -20-
<PAGE>   21
                                    EXHIBIT A

                    NOVATEL KNOW-HOW, PATENTS AND TECHNOLOGY

                                      NONE

<PAGE>   22
                                    EXHIBIT B

                                     PATENTS

METRICOM PATENTS

***

***

***

***

***

***

***

***

***

***

***

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

<PAGE>   23
                                    EXHIBIT C

                             NETWORK SPECIFICATIONS

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

<PAGE>   24
                                    EXHIBIT D

                             METRICOM SPECIFICATIONS

      GUARANTEED VOLUME MODEMS PERFORMANCE AND USAGE SPECIFICATION

1.      SUMMARY OF FEATURES

***

2.      PRODUCT REQUIREMENTS

        The high level requirements for this product are listed below.

***

        2.2.   PHYSICAL CHARACTERISTICS

***

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

<PAGE>   25
               The antenna shall protrude no further than 1" from the side of
               the attached computer and have an extended length of no more than
               6".

        2.3.   EXTERNAL MATERIAL

               ***

        2.4.   COLOR

               ***

        2.5.   BRAND IDENTIFICATION

               ***

        2.6.   STRUCTURAL INTEGRITY

               ***

        2.7.   MOUNTING AND ATTACHMENT TO OTHER DEVICES

               ***

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

<PAGE>   26
        2.8.   ANTENNA ATTRIBUTES

               ***

        2.9.   COMMUNICATION I/O PORT

               ***

        2.10.  IN-BOX MATERIAL

               ***

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

<PAGE>   27
3.      USABILITY

        3.1.   INSTALLATION

               ***

        3.2.   USER INTERFACE

               ***

4.      FUNCTIONALITY

        4.1.   OPERATING LIFE/POWER REQUIREMENTS

               ***

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

<PAGE>   28
               ***

        4.2    COMPATIBILITY

               ***

        4.3.   SOFTWARE/FIRMWARE

               ***

5.      ACCESSORIES

        ***

6.      COMPATIBILITY

        ***

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

<PAGE>   29
        6.2.   OPERATING SYSTEMS

               ***

        6.3    USER APPLICATIONS

               ***

*Certain information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>   30
                                    EXHIBIT E

                     INITIAL FORECAST AND DELIVERY SCHEDULE

<TABLE>
<S>                            <C>
        ***                    ***

        ***                    ***

        ***                    ***

        ***                    ***

        ***                    ***

        ***                    ***

        ***                    ***

        ***                    ***

        ***                    ***

        ***                    ***

        ***                    ***

        ***                    ***

        ***                    ***
</TABLE>

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

***

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

<PAGE>   31
                                    EXHIBIT F

                                      PRICE

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

<TABLE>
<S>                                 <C>
         ***                        ***

         ***                        ***

         ***                        ***

         ***                        ***
</TABLE>

***

***
***
***
***

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

<PAGE>   32
                                    EXHIBIT G

                                   TRADEMARKS

                                   Metricom(R)

                                   Ricochet(R)

                              Metricom design logo

                              Ricochet design logo

<PAGE>   33
                                    EXHIBIT H

                         METRICOM CORPORATE STYLE GUIDE

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

<PAGE>   34
                                    EXHIBIT I

           TECHNICAL SUPPORT LEVEL DEFINITIONS AND ESCALATION PROCESS

I. DEFINITIONS

        LEVEL I TECHNICAL SUPPORT:

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

        LEVEL II TECHNICAL SUPPORT:

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

        LEVEL III TECHNICAL SUPPORT:

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

II. ESCALATION PROCESS:

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

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

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

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

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

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

<PAGE>   35

III Support.<PAGE>   1
                                                                   EXHIBIT 10.12

                                SUPPLY AGREEMENT

        This Supply Agreement ("Agreement") is being entered into and is
effective as of August 12, 1999 (the "Effective Date"), by and between NOVATEL
WIRELESS, INC., a Delaware corporation ("Novatel" or "Seller"), having its
principal place of business at 9360 Towne Centre Drive, San Diego, California
and OPENSKY CORPORATION, a Delaware corporation ("OpenSky" or "Buyer"), having
its principal place of business at 471 Emerson Street, Suite 200, Palo Alto,
California.

        WHEREAS, Seller is engaged in, among other things, the development and
manufacture of the Minstrel III(TM) wireless modem cradle ("Minstrel III") and
the Minstrel V(TM) wireless modem cradle ("Minstrel V"), for the Palm III and
Palm V connected organizers, respectively (the Minstrel III and the Minstrel V
are referred to herein collectively as the "Modems");

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

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

1.      SALE AND PURCHASE OF PRODUCTS.

        1.1 Sale and Purchase. Buyer shall purchase from Seller, and Seller
shall supply to Buyer, an *** Modems pursuant to the schedule of payment and
delivery in Annex A, for an ***, subject to any adjustments to the Mix (as
described in Section 1.3) made in accordance with Section 1.3 hereof.

        1.2 Payments. Buyer shall make payments due to Seller for Deliverable
Items either directly to Seller or to such bank as Seller may designate in
writing. Payments for Modems shall be due and payable in full, in cash, by Buyer
thirty (30) days prior to each scheduled delivery of Modems into Seller's
Distribution Facility in San Diego, California (the "Novatel Distribution
Facility"). Each delivery of specification compliant Modems in accordance with
Annex D for which a pre-payment by Buyer has been received may not be canceled.
Payments for Deliverable Items (other than Modems), shall be due and payable in
full, in cash, by Buyer within thirty (30) days following the date of shipment
to end-users on behalf of Buyer. For purposes of this Agreement, "Deliverable
Items" shall mean any item, or parts thereof, that Seller is obligated to
provide under this Agreement including but not limited to Modems, documentation,
know-how and information. Payment for shipping and configuration and activation
shall be due and payable in full, in cash, as set forth in Sections 1.8 and 2.1,
respectively.

        1.3 Prices and Mix. The Modems shall be supplied to Buyer at a *** for
the Minstrel III and *** for the Minstrel V. Pricing is based on ***. During the
term of this Agreement, unless changed in accordance with this Section 1.3, the
number of each type of Modem to be purchased in each delivery and in the
aggregate under this Agreement shall be 80%

*Certain information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>   2
Minstrel V and 20% Minstrel III (the "Mix"). Buyer may change the Mix (i) by 10%
upon 30-days' advance written notice to Seller; (ii) by 30% upon 60-days'
advance written notice to Seller or (iii) in its entirety upon 90-days' advance
written notice to Seller. Buyer may change the delivery schedule set forth on
Annex A as to the total monthly quantity of Modems shipped upon sixty (60) days
prior written notice to Seller; provided, however, that (i) any increase in the
monthly quantity of Modems shall not exceed 20% of the monthly quantity of
Modems set forth on Annex A for the relevant month; (ii) any decrease in the
monthly quantity of Modems shall not exceed 30% of the monthly quantity of
Modems set forth on Annex A for the relevant month and (iii) the total quantity
of Modems purchased under this Agreement shall remain unchanged. If Buyer
reduces the monthly quantity of Modems during the Exclusivity Period pursuant to
the previous sentence, then notwithstanding anything to the contrary in this
Agreement, the exclusivity provided for in Section 1.9 shall not apply with
respect to the number of Modems by which such monthly quantity of Modems was so
reduced.

        1.4 Advance. The parties hereto acknowledge and agree that in order to
ensure the prompt availability of the Modems of the initial scheduled delivery
hereunder as provided in Annex A, Seller must make an initial commitment to its
suppliers of components. On the dates set forth below, Buyer shall advance an
***:

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***

        1.5 Accessories. During the Shipping Period (as defined in Section 1.8
below), Seller shall hold for Buyer 1,000 Minstrel III batteries in reserve
inventory and shall make available accessories for the Modems at such prices
listed in Annex B.

        1.6 Acceptance Criteria. The Modems shall be run through an acceptance
test prior to delivery. The acceptance test will be based on an agreed to
statistical sampling of the Modems and will demonstrate that the Modems meet all
of the Product Specifications outlined in Annex D. If there is a statistical
failure rate of greater than *** for any Product Specifications, then every
modem shall be tested prior to acceptance by Buyer. Seller shall provide Buyer
notice of when acceptance test will be performed. Buyer shall have the right to
witness each such test. Upon completion of the acceptance test, Seller shall
provide Buyer with the results of such test and Buyer shall indicate acceptance
by signing the acceptance test documentation.

        1.7 Delivery and Title. The Modems sold to Buyer shall be delivered to
the Novatel Distribution Facility in accordance to the delivery schedule set
forth in Annex A. Title and risk of loss in the Modems shall transfer to Buyer
at such time as Seller ships the Modems to

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

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<PAGE>   3
an end-user on behalf of Buyer or to a third party distributor on behalf of
Buyer. Seller shall warehouse the inventory on behalf of Buyer and ship to
end-users the Modems on behalf of Buyer from the Novatel Distribution Facility
in accordance with Section 1.8 below. Subject to Section 8 below, all Modems
shipped to Buyer or to the end-users on behalf of Buyer shall be non-returnable.

        1.8    Shipping.

               1.8.1 From the period beginning November 1, 1999 and ending March
1, 2000 (the "Shipping Period") Seller shall make shipments FOB Destination of
the Modems to end-users on behalf of Buyer. In each case, Buyer shall provide to
Seller in writing, by electronic transmission or any other mode of communication
as set forth in Section 13.11, such information as is necessary to complete the
requested shipment, including without limitation, the address or location of
shipment, the number and type of Modem to be shipped and the type of shipment to
be utilized pursuant to Section 1.8.2 below. Seller shall arrange for the
requested shipment FOB Destination within a 24-hour period from receipt by
Seller of Buyer's shipment request pursuant to this Section 1.8.1.

               1.8.2 During the Shipment Period, Seller shall arrange, in
coordination with Buyer, for the air carrier insurance and freight from the
Novatel Distribution Facility to end-users on behalf of Buyer, and the CIF cost
shall be borne by Buyer directly. Seller shall provide three (3) shipment
options to Buyer: (i) overnight delivery; (ii) 2-day delivery or (iii) ground
delivery; and for which Buyer shall pay Seller, in cash, fees for shipment of
the Modems pursuant to this Section 1.8.2. As additional shipping options and
volume discounts become available, the fees for shipment paid by Buyer to Seller
may be agreed upon on a case by case basis by Buyer and Seller. Seller shall
deliver monthly invoices to Buyer for the costs and fees in connection with the
shipment of the Modems made to end-users on behalf of Buyer. In addition to such
other amounts as may be due hereunder, Buyer shall pay Seller in full, in cash,
for Seller's costs and fees for such shipments within thirty (30) days following
the date of delivery of such invoice to Buyer pursuant to this Section 1.8.2.

        1.9 Exclusivity. The Minstrel V shall be made available for sale and
purchase exclusively to Buyer for the Exclusivity Period. The "Exclusivity
Period" means the four-month period commencing as of the later of (i) such date
Seller has delivered *** Minstrel V units in accordance with this Agreement on
account of Buyer to the Novatel Distribution Facility or (ii) November 30, 1999.
In the event that Seller's delivery of field trial Minstrel V Modems is not made
prior to September 30, 1999 or Seller retrofits Modems pursuant to Section 1.17
or Section 5 hereof, then (i) the initial delivery of Modems into the Novatel
Distribution Facility shall be due on December 31, 1999; (ii) each subsequent
delivery date on Annex A shall be adjusted accordingly; and (iii) the
Exclusivity Period will begin on such date Seller has delivered 18,000 Minsrel V
units in accordance with this Agreement to the Novatel Distribution Facility.

        1.10 Warranties. Acceptance of a Modem shall not relieve Seller from its
obligations thereunder with respect to warranties under Section 8 below.

        1.11 Title; Risk of Loss. Title to Deliverable Items covered by this
Agreement shall pass to Buyer and risk of loss of or damage to Deliverable Items
shall be assumed by

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<PAGE>   4
Buyer, at such time Seller ships the Deliverable Items to an end-user on behalf
of Buyer or to a third party distributor on behalf of Buyer.

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

        1.13 Adverse Results; Government Action. Each party agrees to promptly
notify the other party of any adverse or unexpected results or any actual or
potential government action relevant to a Modem of which it becomes aware.

        1.14 Invoices; Errors. Invoices shall be submitted by Seller in
duplicate (original and one copy) for each delivery of Deliverable Items (other
than Modems) and will enclose as an integral part thereof documentary proof of
delivery of such Deliverable Items, according to commercially accepted standards
for exports.

        1.15 Additional Supply. Beginning after completion of delivery of ***
Modems and for a period of ***. The *** option of available allocation granted
to Buyer under this Section 1.15 shall be on such terms and conditions and at
such price as mutually agreed upon between the parties hereto or as then in
effect pursuant to future Modem supply agreements entered into between Buyer and
Seller but ***.

        1.16 Schedule. If Seller fails to deliver the Modems to the Novatel
Distribution Facility as scheduled in Annex A and Buyer waives the delay, Annex
A shall be adjusted by changing the dates in Annex A by an equivalent number of
days. For example, a thirty (30) day delay in delivery will cause a thirty (30)
day delay in every subsequent delivery requirement pursuant to Annex A. If
Seller is only able to deliver a portion of the Modems as scheduled, then the
remaining portion shall be delivered fifteen (15) days after the final delivery
pursuant to Annex A. Any prepayment in accordance with Section 1.2 for
undelivered Modems shall be applied to the prepayment for the next scheduled
delivery of Modems. In the event the Modems are not delivered for field trial by
September 30, 1999 pursuant to Section 1.17 below then the delivery schedule on
Annex A will be adjusted so that the initial delivery shall be due on December
31, 1999 and each subsequent delivery on Annex A shall be adjusted accordingly.

        1.17 Field Trials. Seller will deliver Modems for Buyer to conduct field
trials on or prior to September 30, 1999. If the Modems have mechanical or
electrical failures in excess of *** during Buyer field trial then Seller shall
immediately stop delivery of Modems to the Novatel Distribution Facility. Seller
shall make the necessary changes to rectify the identified failures and all
previously delivered Modems shall be retrofitted to meet the specification
configuration.

2.      CONFIGURATION AND ACTIVATION; TRADEMARKS.

        2.1 Configuration and Activation.

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

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<PAGE>   5
               2.1.1 Seller shall configure and activate each Modem on behalf of
Buyer. Buyer shall provide shipping, configuration and activation instructions
in writing, by electronic transmission or any other mode of communication as set
forth in Section 13.11, to Seller for each Modem to be shipped on behalf of
Buyer. *** Seller shall deliver a monthly invoices to Buyer stating the
aggregate activation fees due and payable in connection with the activation of
the units. Buyer shall pay such fee in full, in cash, within thirty (30) days
following the delivery date of such invoice to Buyer.

               2.1.2 The parties agree that all Modem units shipped to end-users
on behalf of Buyer shall be activated by Seller in accordance with this Section
2 and in consideration of the fee set forth in Section 2.1.1 hereof. In
activating the Modems, Seller shall undertake the following steps:

                        -       Unpack Minstrel Cradle

                        -       Plug into AC power source

                        -       Attach pre-configured Palm test unit

                        -       Run "Modem Manager" software

                        -       Program Modem parameters and confirm
                                registration

                        -       Send Test Packet

                        -       Repackage Minstrel in retain box, including
                                activation/IP documentation

               2.1.3 Each Modem shall be shipped to an end-user on behalf of
Buyer with a joint branding configuration consisting of the word "Novatel
Wireless" on the back of the Modem and such name as may be designated by Buyer
in writing, by electronic transmission or any other mode of communication as set
forth in Section 13.11 on the front of the Modem. Such branding configuration
shall extend to the Modem, user documentation and retail packaging. All Modems
will be packaged according to standards of trade generally applicable to similar
products shipped on a global basis.

        2.2 Seller's Trademarks. Buyer shall not use the trademark "Novatel" or
"Novatel Wireless" or any other trademark owned or used by Seller or any mark
confusingly similar thereto without the prior written consent of Seller in each.

               2.2.1 Buyer acknowledges Seller's sole ownership and exclusive
right, title and interest in and to the use of each of its trademarks, and that
any use of any of the trademarks of Seller will inure solely to the benefit of
Seller. Buyer shall not at any time, either during the term hereof or at any
time thereafter, directly contest, or aid others in contesting, or do anything
which might impair the validity of, any or all of Seller's trademarks or the
exclusive ownership thereof by Seller. Buyer shall not acquire any right to or
under any of Seller's trademarks. If any such rights should become vested in
Buyer by operation of law or otherwise, Buyer agrees it will immediately assign
any and all such rights to Seller. Nothing contained herein in any way limit
Seller's rights under its patents or licensing agreements nor grant Buyer any
rights under such patents or licensing agreements.

        2.3 Buyer's Trademarks.

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

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<PAGE>   6
               2.3.1 Seller shall use the trademarks of Buyer only on or in
connection with the terms of Section 2.1 hereof and shall not use any marks
confusingly similar to Buyer's trademarks on any other goods.

               2.3.2 Seller acknowledges Buyer's sole ownership and exclusive
right, title and interest in and to the use of each of its trademarks, and that
any use of any of the trademarks of Buyer will inure solely to the benefit of
Buyer. Seller shall not at any time, either during the term hereof or at any
time thereafter, directly contest, or aid others in contesting, or do anything
which might impair the validity of, any or all of Buyer's trademarks or the
exclusive ownership thereof by Buyer. Seller shall not acquire any right to or
under any of Buyer's trademarks. If any such rights should become vested in
Seller by operation of law or otherwise, Seller agrees it will immediately
assign any and all such rights to Buyer. Nothing contained herein in any way
limit Buyer's rights under its patents or licensing agreements nor grant Seller
any rights under such patents or licensing agreements.

3.      KNOW-HOW AND SUPPORT.

        Seller shall provide Level II and Level III Technical Support (as
described in Annex C), and training to Buyer's designated service technicians to
enable Buyer to provide Level I Support and engineering support at Buyer's
facilities to enable Buyer to support the Modems, including the details of modem
functionality and design required for detection and correction of bugs or
failures . The parties hereto acknowledge and agree that Seller shall not
provide direct end-user support to any end-user on its own behalf or on behalf
of Buyer (Level I Technical Support). Seller will provide technical support
during the term of this Agreement in accordance with the terms of this Agreement
for so long as Buyer does not request any change in Seller's specifications of
the Modems as set forth in Annex D (the "Product Specifications").

4.      AUDIT.

        During the term of this Agreement, Seller shall maintain separate,
complete and accurate accounting records, in a form in accordance with generally
accepted accounting principles, to substantiate Seller's invoices hereunder.
Buyer, or any other person designated by it, reserves the right during the term
of this Agreement to audit and review, with reasonable notice to Seller,
Seller's books and records pertaining to such invoices to substantiate the
invoices delivered in connection with this Agreement. Seller shall preserve such
books and records for this purpose for a period of seven (7) years from the
receipt of last payment from Buyer. Buyer shall have the right to visit the
Novatel Distribution Facility to take a physical inventory of Modems that have
been delivered in accordance with Section 1.7.

5.      REPRESENTATION AND WARRANTY.

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

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<PAGE>   7
6.      INSURANCE.

        Seller shall maintain sufficient general liability insurance for the
Novatel Distribution Facility to cover the Modems stored at the site.

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

        7.1 Except as otherwise provided for herein, the term of this Agreement
shall be for the period commencing on the Effective Date and ending on April 1,
2000, unless terminated earlier by either party pursuant to the provisions of
this Section 7 or extended by mutual written agreement of the parties.

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

                      (a) All payment provisions, and any payment due at the
time of termination shall be paid in accordance with the terms of this
Agreement.

                      (b) All warranties specified in the Agreement.

                      (c) All Patent Indemnity obligations.

                      (d) Section 1.14 (Additional Supply).

                      (e) Sections 2.2 and 2.3 (Trademarks).

                      (f) Section 7.6 (Commitment Termination Event).

                      (g) Section 11.3 (Spare Parts).

                      (h) Sections 13.l and 13.2 (Confidentiality and
Advertising).

                      (i) Section 13.3 (Confidential Information).

                      (j) Section 13.8 (Applicable Law), which shall govern any
dispute between the parties under the Agreement that may subsequently arise.

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

                      (a) Seller discontinues the Modems;

                      (b) Seller is adjudged bankrupt;

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

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<PAGE>   8
                      (d) Filing of an involuntary petition to have Seller
declared bankrupt, or subject to receivership, provided that such petition is
not vacated or set aside within ninety (90) days from the date of filing;

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

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

        7.4 Seller's Right to Terminate. Seller shall have the right, by
providing Buyer with written notice, to immediately terminate this Agreement
upon the occurrence of any of the following events, any one of which shall be
considered a "Buyer Default:"

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

                      (b) Buyer is adjudged bankrupt;

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

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

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

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

        7.5 Remedy Upon Seller Default. In the event that this Agreement is
terminated pursuant to Section 7.3 above, Buyer shall have the right to exercise
any and all rights surviving such termination pursuant to Section 7.2.

        7.6 Commitment Termination Event. In the event of a Commitment
Termination Event, Buyer shall, as soon as practicable and in no event later
than five (5) days after the occurrence of such Commitment Termination Event,
pay Seller, in ***. "Commitment Termination Event" means (i) the failure by
Buyer to purchase Modems in the amounts set forth in Section 1.1 ("Sale and
Purchase") hereof pursuant to the schedule of payment and delivery set forth in
Annex A (giving effect to any adjustments made in accordance with Section 1.3
hereof); (ii) termination of this Agreement by Buyer for any reason whatsoever
other than pursuant to a breach by Seller of the provisions of Section 8.1
hereof (Product Warranty) or failure by Seller to make the scheduled deliveries
in accordance with Section 1.7 hereof; (iii) any breach by Buyer

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

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<PAGE>   9
of any representation, covenant or agreement on the part of Buyer set forth in
this Agreement or (iv) Buyer's use of another CDPD modem vendor for the Palm III
and Palm V during the term of this Agreement.

8.      PRODUCT WARRANTY.

        8.1 Product Warranty. The following Sections 8.l through 8.6 refer only
to Product Warranty.

                      (a) Seller warrants (i) that all Modems, including
components thereof, to be delivered hereunder, will conform to the Product
Specifications, be free from defects in material and workmanship and (ii) that
the "Modem Manager" software installed pursuant to Section 2.1 hereof shall be
free from errors which materially affect performance. The foregoing warranty is
given provided Buyer gives written notice of any defect, deficiency or
non-conformance of any Modem, or parts thereof, within: (i) twelve (12) months
from the shipment date to the end-user, or (ii) fifteen (15) months from the
date the Modems are delivered to Buyer at the Novatel Distribution Facility (the
"Warranty Period"). Seller shall, at no cost to Buyer, and within the
"Turn-Around Time" as defined in Section 8.2(a) below, repair or furnish
replacements for all such defective, deficient or non-conforming items or parts
thereof; provided, however, the Modems have been maintained in accordance with
Seller's specifications and have not been modified by any party other than
Seller except as expressly permitted by Seller in writing.

                      (b) The foregoing warranties do not extend to:

                             (i) defects, errors or nonconformities in a Modem
due to accident, abuse, misuse or negligent use of such Modem or use in other
than a normal and customary manner, environmental conditions not conforming to
Seller's specifications, or failure to follow prescribed operating maintenance
procedures;

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

                             (iii) normal wear and tear; or

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

        8.2 Turn-Around Time.

                      (a) "Turn-Around Time" for the purposes of this Section 8
means fifteen (15) days from the date on which such defective item, or defective
or non-conforming part thereof, is furnished to Seller, for repair or
replacement until the date on which such replaced or repaired item is returned
to Buyer.

                      (b) Seller shall bear air shipment costs of the deficient,
repaired or replaced item as well as the risk or loss or damage to the item or
its replacement throughout the period between the shipment of the defective item
and the receipt of the repaired or replaced

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<PAGE>   10
item. Repaired or replaced items shall be subject to the warranty provided on
the original Modem only (the time during which Seller repairs or replaces the
item shall not be considered as part of the Warranty Period), in accordance with
this Section 8. Notwithstanding the foregoing, Buyer shall bear all expenses if
no fault on the part of Seller was found in the items returned for repair or
replacement.

        8.3 Extended Warranty. In the event Buyer elects to offer an extended
warranty, Buyer may, up to one (1) year after an order is received from an
end-user, extend the Warranty Period at a cost of ***. Discounts in the cost of
such extension of warranty may be negotiated between Seller and Buyer, based on
the number of the Modems on which Buyer elects to extend the Warranty Period.

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

        8.5 Exclusive Remedy. The warranty granted in this Section 8 sets forth
Buyer's sole and exclusive remedy and Seller's sole and exclusive liability for
any claim of warranty for any product delivered by Seller.

        8.6 No Authority. Buyer acknowledges that it is not authorized to make
any warranty or representation on behalf of Seller or its suppliers regarding
the Modems, whether express or implied, other than the warranty terms set forth
in this Section 8.

        8.7 No Other Warranty. THE WARRANTY MADE UNDER THIS SECTION 8 IS
EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING,
WITHOUT LIMITATION, ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE.

9.      PATENT INDEMNITY.

        9.1 Patent Indemnity. Seller shall, at its sole cost and expense,
indemnify, defend and hold Buyer harmless from and against any claims, demands,
liability or suit, including costs and expenses, for or by reason of any actual
or alleged infringement of any third party patent, trademark or copyright
resulting from the design, development, manufacture, use, sale or disposal of
any Modem or Deliverable Items furnished hereunder. Buyer shall promptly notify
Seller in writing of any such infringement claim after Buyer becomes aware of
such claim, and shall provide Seller with such assistance and cooperation as
Seller may reasonably request from time to time in connection with the defense
thereof. In the event Buyer determines that Seller is unable or unwilling to
defend the claim, Buyer may assume control of the defense of any infringement
claim; provided that under such circumstances Buyer shall bear all costs of such
defense (but not of any consequent judgment or liability). If any settlement
requires an affirmative obligation of, results in any ongoing liability to, or
prejudices or detrimentally impacts in any way, Buyer, then such settlement
shall require Buyer's written consent.

        9.2 Right to Substitute. Should Buyer be prevented as a result of such
claims, actions or suits regarding infringement, from utilizing the Modems or
Deliverable Items in

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

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<PAGE>   11
question, or if Seller believes such a claim is likely, then Seller shall, at
Seller's expense, either substitute an equivalent non-infringing item, or modify
the item so that same no longer infringes but remains equivalent, or obtain (at
its own expense) for Buyer the right to continue use of the item in accordance
with the terms of this Agreement.

        9.3 Procedure. Seller's obligation to indemnify will be subject to the
following terms and conditions:

                      (a) The obligation will arise only if Seller receives
prompt written notice of the infringement claim.

                      (b) The obligation will not cover any claim that the
Modems infringe any third party's rights only as used in combination with any
software or hardware not supplied by Seller, if that claim could have been
avoided by the use of the Modems in combination with equivalent other available
software or hardware.

10.     LIMITATION OF LIABILITY.

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

11.     POST WARRANTY OBLIGATIONS.

        11.1 Support. Seller agrees that for the term of this Agreement, plus
the Warranty Period, it will retain a staff of technical personnel in connection
with the design, manufacture and trouble-shooting of the Modems and Deliverable
Items supplied under this Agreement. This staff will be available to render
technical assistance to Buyer upon Buyer's reasonable request regarding the
Modems or a Deliverable Item and will provide such assistance as may be
reasonably required to support systems integration, system debug, basic
parameter changes in the Modems, modification of the Modems, upgrades in the
Modems, and customer and production support in accordance with the provisions of
Section 6.

        11.2 Repair. During the term of this Agreement, in the event that Buyer
requires repair of the Modems, or any part thereof, after the date of completion
of Seller's warranty obligations under this Agreement, Seller will perform such
repairs on terms at and prices in accordance with its standard support and
maintenance fees, or at a fair and reasonable prices if standard fees have not
been set.

        11.3 Spare Parts. Seller undertakes, for a period of five years after
the completion Seller's warranty obligations under this Agreement, to supply
Buyer with spare parts for the Modems and the Deliverable Items as Buyer may
reasonably request from time to time, at prices that are fair and reasonable,
considering prevailing market prices at the time said items are ordered.

                                       11
<PAGE>   12
12.     FORCE MAJEURE.

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

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

        12.3   Termination.

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

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

13.     MISCELLANEOUS.

        13.1 Confidentiality of Agreement; Permitted Disclosures. Throughout the
term of this Agreement, each party agrees that the terms of this Agreement shall
be kept confidential. No disclosure of the identity of Buyer's customers or
end-users or other information concerning this Agreement shall be released by
Seller without the prior written consent of Buyer except (i) in Seller's or
Buyer's communication with its respective shareholders, investors or potential
investors, and (ii) as to such advertising or other marketing in which Seller
may engage in the ordinary course of business.

        13.2 Required Disclosures; Advertising. Notwithstanding Section 13.1
above:

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

                                       12
<PAGE>   13
                      (b) Each party shall have the right to list the other
party as a customer or supplier (as the case may be) in its advertising
material.

        13.3 Confidential Information.

                      (a) In performance of this Agreement, it may be necessary
or desirable for either party to disclose to the other certain business and/or
technical information which the disclosing party regards as proprietary and
confidential (the "Confidential Information"). Any Confidential Information
disclosed shall be reduced to writing and provided to the other party within
twenty (20) days after it was first disclosed. Each of the parties hereto agree
that it shall (i) not make use of or disclose the Confidential Information for
any purpose whatsoever at any time, other than for the purposes of this
Agreement and (ii) limit access to the Confidential Information of the other
party to its employees who shall be advised of and agree to be subject to the
terms of this Section 13.3.

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

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

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

        13.5 Assignment. Neither Seller nor Buyer may assign this Agreement in
whole or in part, or any rights hereunder without the prior written consent of
the other, except to (i) a wholly-owned subsidiary of such party, (ii) a
successor in interest of all or substantially all of such party's assets or
business or (iii) a bank trust company or other financial institution for money
due or to become due under this Agreement. In the event of any assignment, the
assigning party shall promptly supply the other party with two (2) copies of
such assignment and, in the instance of an assignment pursuant to this Section
13.5, shall indicate on each invoice to whom payment is to be made. In the event
of any assignment pursuant to this Section 13.5, the assigning party also shall
provide a written guarantee by such party of the obligations assigned to such
party's subsidiary.

        13.6 Relations of the Parties. Nothing in this Agreement shall be
construed as creating relationship of principal and agent or of employer and
employee between the parties. Furthermore, nothing in this Agreement is intended
to constitute, create, give effect to or otherwise contemplate a joint venture,
partnership or formal business entity of any kind. The rights and obligations of
the parties with respect to this Agreement shall not be construed as

                                       13
<PAGE>   14
providing for sharing of profits or losses arising out of the effort of either
of the parties. The parties shall not incur any liability on behalf of the
other.

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

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

        13.9 Arbitration. Any dispute arising out of or in connection with this
Agreement, including any question regarding its breach, validity or termination,
or the transactions contemplated hereby, including any dispute based in whole or
in part on tort or other non-contractual principles of law, shall be fully and
finally resolved and settled by arbitration under the Rules of the American
Arbitration Association for Commercial Disputes (the "Rules") (as modified by
this Section 13.9). The number of arbitrators shall be one (1) if all parties to
the dispute agree on the arbitrator. If there is a disagreement on selection of
a sole arbitrator, the number of arbitrators then shall be three (3), with the
arbitrators to be appointed in accordance with the Rules from a panel of
arbitrators in San Diego, California. The place of arbitration shall be San
Diego, California or such other place as the parties to the dispute shall
mutually agree upon in writing. The arbitration proceedings shall state the
reasons for the award. Judgment upon the award rendered by the arbitrator or
arbitrators may be entered in any court having jurisdiction thereof, and shall
be binding on the parties hereto. The costs of arbitration, including reasonable
legal fees and costs, shall be borne by either or both of the parties in
whatever proportion as the arbitrator or arbitrators may award. This Section
13.9 shall not apply to actions seeking enforcement of this Agreement to
arbitrate or to enforce Section 2.2 ("Seller's Trademarks"), Section 2.3
("Buyer's Trademarks"), Section 13.1 ("Confidentiality") or Section 13.3
("Confidential Information") hereof or with respect to any request for
provisional or interim relief brought prior to the appointment of an arbitrator.

        The dispute resolution proceedings contemplated by this provision shall
be as confidential and private as permitted by law. To that end, the parties
shall not disclose the existence, content or results of any claims hereunder or
proceedings conducted in accordance with this provision, and materials submitted
in connection with such proceedings shall not be admissible in any other
proceeding; provided, however, that this confidentiality provision shall not
prevent a petition to vacate or enforce an arbitration award, and shall not bar
disclosures required by law. The parties hereto agree that any decision or award
resulting from proceedings in accordance with this dispute resolution provision
shall have no preclusive effect in any other matter involving third parties.

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

                                       14
<PAGE>   15
        13.11 Notices. Any notice contemplated by or made pursuant to this
Agreement shall be in writing and shall be deemed delivered on the date of
delivery if delivered personally or by commercial overnight courier with
tracking capabilities or by fax, or five (5) days after mailing if placed in the
mail, postage prepaid, registered or certified mail, return receipt requested,
addressed to Buyer or Seller (as the case may be) as follows:

                    Seller:                       Novatel Wireless, Inc.
                                                  9360 Towne Centre Drive
                                                  Suite 110
                                                  San Diego, CA  92121
                                                  Attn:  Chief Executive Officer
                                                  Fax: (858) 784-0626

                     Buyer:                       OpenSky Corporation
                                                  471 Emerson Street, Suite 200
                                                  Palo Alto, CA  94301
                                                  Attn:  Chief Executive Officer
                                                  Fax:  (650) 561-9968

or such other address as each party may designate for itself by notice given in
accordance with this Section 13.11.

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

                            [Signature Page Follows]

                                       15
<PAGE>   16

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

                                    SELLER: NOVATEL WIRELESS, INC.

                                    By:  /s/
                                       -----------------------------------------
                                       Name:  Bruce Gray
                                       Title: Vice President -- Sales/Marketing

                                    BUYER: OPENSKY CORPORATION

                                    By:  /s/
                                       -----------------------------------------
                                       Name:  Michael Dolbec
                                       Title:  Vice President --
                                               Business Development

<PAGE>   17
                                     Annex A

                        SCHEDULE OF PAYMENT AND DELIVERY

                                       ***

** Buyer shall pre-pay in full for any forecasted bi-monthly quantity 30 days
prior to delivery into the Novatel Distribution Center in San Diego California
subject to Sections 1.2 and 1.4 of this Agreement.

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

                                ACCESSORY PRICING

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***

                                     ANNEX C

                                TECHNICAL SUPPORT

Technical Support for the Minstrel III and Minstrel V products delivered to
OpenSky customers will be managed via a three-tier Technical Support
infrastructure and process as follows:

LEVEL I TECHNICAL SUPPORT

        Level I Technical Support will be provided by OpenSky to their direct
        and indirect customers. Level I Support is defined as calls* originating
        from OpenSky customers, resellers or distributors regarding Palm
        Products, OpenSky Service, Wireless Service Providers, Minstrel III or
        Minstrel V products including but not limited to pre and post sale
        inquiries concerning the basic operation of the hardware and software,
        functionality, interoperability and capabilities of those products and
        services.

        For calls regarding the Minstrel III and Minstrel V products, OpenSky
        will make every attempt to answer customer questions and resolve issues
        using available tools, documentation, test equipment and other materials
        used to support the Minstrel III and Minstrel V products (see training
        section below). If the customer question/issue regarding the Minstrel
        III or Minstrel V product cannot be resolved by OpenSky support
        personnel to the customers' satisfaction, the issue will be forwarded to
        Novatel Wireless Level II Technical Support for further investigation
        and resolution.

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

LEVEL II TECHNICAL SUPPORT

        Level II Technical Support will be provided by Novatel Wireless support
        staff directly to OpenSky Level I Support personnel to assist in the
        resolution of open customer issues that have not been resolved to the
        satisfaction of OpenSky customers during a Level I Support call. OpenSky
        will have direct access to designated support staff within the Novatel
        Wireless support organization for this purpose. A direct line of
        communication between the two organizations will be established and
        Novatel Wireless support technicians will be available during normal
        OpenSky technical support operation hours to assist in

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

<PAGE>   19
        resolution of customer problems. Novatel Wireless support engineering
        will work directly with OpenSky support staff to resolve issues and
        answer questions, this may require OpenSky support staff to gather
        additional information and provide system information or test results
        back to Novatel support staff to aid in the definition and resolution of
        the problem. It will be OpenSky support staff's responsibility to
        communicate directly with the end-user customer. Problems that are not
        resolved within three business days or problems that are flagged as
        sensitive/mission critical will be escalated to Level III Technical
        Support for final resolution.

LEVEL III TECHNICAL SUPPORT (ESCALATION)

        Level III Technical Support will be provided by the Novatel Wireless
        support and system engineering staff to resolve issues that cannot be
        satisfactorily resolved by Level I and Level II Support personnel. Level
        III Technical Support will handle all OpenSky product escalations issues
        including unresolved support calls and will work directly with Novatel
        Wireless engineering staff to resolve those issues.

TECHNICAL SUPPORT TRAINING

        Technical Support training and documentation for the Minstrel III and
        Minstrel V will be provided to OpenSky Level I Support staff by Novatel
        Wireless. OpenSky support staff will receive training on the general
        use, functionality, operation and compatibility of the Minstrel III and
        Minstrel V products. In addition, all support related documentation,
        training materials, notes, FAQ's, and web based support materials will
        be made available to OpenSky for their use in supporting these products.

<PAGE>   20
                       FIRST AMENDMENT TO SUPPLY AGREEMENT

        This First Amendment to Supply Agreement (this "Amendment") is made as
of October ___, 1999 by and among Novatel Wireless, Inc., a Delaware corporation
("Novatel") and OpenSky Corporation, a Delaware corporation ("OpenSky").

        WHEREAS, Novatel and OpenSky entered into that certain Supply Agreement,
dated and effective as of August 12, 1999 (the "Supply Agreement"); and

        WHEREAS, pursuant to Section 13.10 of the Supply Agreement, Novatel and
OpenSky desire to amend certain terms and provisions of the Supply Agreement;

        NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the parties hereto agree as follows (all capitalized
terms not otherwise defined herein shall have the meanings therefor set forth in
the Supply Agreement):

        1. Pursuant to Section 1.3, OpenSky hereby changes the Mix and delivery
schedule in accordance with Exhibit A hereto.

2.      Section 1.2 is amended in its entirety to read as follows:

                             "1.2 Payments. Buyer shall make payments due to
        Seller for Deliverable Items either directly to Seller or to such bank
        as Seller may designate in writing. Payments for Modems shall be due and
        payable in full, in cash, by Buyer thirty (30) days prior to each
        scheduled delivery of Modems into Seller's Distribution Facility in San
        Diego, California (the "Novatel Distribution Facility") with respect to
        any delivery scheduled in Annex A to be made on or before December 31,
        1999. Payments for Modems shall be due and payable in full, in cash, by
        Buyer within thirty (30) days following the date of each scheduled
        delivery of Modems into the Novatel Distribution Facility with respect
        to any delivery scheduled in Annex A to be made on or after January 1,
        2000. Each delivery of specification compliant Modems in accordance with
        Annex D for which a pre-payment by Buyer has been received may not be
        canceled. Payments for Deliverable Items (other than Modems), shall be
        due and payable in full, in cash, by Buyer within thirty (30) days
        following the date of shipment to end-users on behalf of Buyer. For
        purposes of this Agreement, "Deliverable Items" shall mean any item, or
        parts thereof, that Seller is obligated to provide under this Agreement
        including but not limited to Modems, documentation, know-how and
        information. Payment for shipping and configuration and activation shall
        be due and payable in full, in cash, as set forth in Sections 1.8 and
        2.1, respectively."

        3. Section 1.7 is amended in its entirety to read as follows:

                             "1.7 Delivery and Title. The Modems sold to Buyer
        shall be delivered to the Novatel Distribution Facility in accordance to
        the delivery schedule set forth in Annex A. Title and risk of loss in
        the Modems shall transfer to Buyer FOB Manufacturer, as determined by
        Seller. Seller shall warehouse the inventory on behalf of Buyer and ship
        to end-users the Modems on behalf of Buyer from the Novatel Distribution
        Facility in accordance with Section 1.8 below. Subject to Section 8
        below, all Modems delivered to Buyer shall be non-returnable."

<PAGE>   21
        4. Section 1.8.1 is amended by deleting the date "March 1, 2000" in the
first sentence and replacing it with the date "May 1, 2000", so that the
Shipping Period ends on May 1, 2000.

        5. Section 7.1 is amended by deleting the date "April 1, 2000" in the
first sentence and replacing it with the date "May 1, 2000", so that the term of
the Supply Agreement ends on May 1, 2000.

        6. In all other respects, the Supply Agreement, as herein amended, shall
remain in full force and effect, including Section 1.3 of the Supply Agreement
without giving effect to this Amendment. Subject to the foregoing, to the extent
that any provisions of the Supply Agreement and any provisions of this Amendment
are in conflict, the provisions of this Amendment shall govern. In the event any
one or more of the provisions contained in this Amendment or any instrument
entered into in connection herewith is for any reason held to be invalid or
unenforceable in any respect, that event shall not affect any other provision of
this Amendment or such other instrument.

        7. This Amendment shall be governed by, and construed and enforced in
accordance with, the substantive laws of the State of California, without regard
to its principles of conflicts of laws.

        8. This Amendment shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns, legal
representatives and heirs.

        9. This Amendment may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which take together shall
constitute one and the same instrument.

<PAGE>   22
        IN WITNESS WHEREOF, this Amendment has been duly executed as of the date
first written above.

                                       NOVATEL WIRELESS, INC.
                                       /s/
                                       --------------------------------
                                       By:
                                          -----------------------------
                                       Its:
                                           ----------------------------

                                       OPENSKY CORPORATION

                                       /s/
                                       --------------------------------
                                       By:
                                          -----------------------------
                                       Its:
                                           ----------------------------

<PAGE>   23
                                    EXHIBIT A

                        SCHEDULE OF PAYMENT AND DELIVERY

                                       ***

               ** Buyer shall pre-pay in full for any forecasted bi-monthly
quantity 30 days prior to delivery into the Novatel Distribution Facility in
Calgary, Canada with respect to any shipments scheduled for delivery on or
before December 31, 1999 in accordance with Sections 1.2 and 1.4 of this
Agreement.

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

                             PRODUCT SPECIFICATIONS

DESCRIPTION

***

DIMENSIONS

***

MODEM FEATURES

***

BUILT-IN FEATURES

***

POWER SUPPLY

***

TEMPERATURES

***

POWER REQUIREMENTS

***

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

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