Document:

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                                                                     EXHIBIT 4.4

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 (THE "ACT") OR STATE SECURITIES LAWS AND NO TRANSFER
OF SUCH SECURITIES MAY BE MADE EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT AND THE RULES AND REGULATIONS THEREUNDER AND OF ALL
APPLICABLE STATE SECURITIES OR "BLUE SKY" LAWS, OR (B) PURSUANT TO AN EXEMPTION
THEREFROM UNDER SAID ACT AND ALL APPLICABLE STATE SECURITIES OR "BLUE SKY" LAWS
WITH RESPECT TO WHICH THE COMPANY MAY, UPON REQUEST, REQUIRE A SATISFACTORY
OPINION OF COUNSEL FOR THE HOLDER THAT SUCH TRANSFER IS EXEMPT FROM THE
REQUIREMENTS OF THE ACT.

                       FORM OF WARRANT TO PURCHASE STOCK

Corporation:                 Novatel Wireless, Inc.

Number of Shares:            [_______] (subject to increase as provided below)

Class of Stock:              Common Stock, par value $0.001 per share

Initial Exercise Price:      $0.70 (subject to adjustment as provided below)

Issue Date:                  [March 12, 2003][or][INSERT ISSUE DATE FOR WARRANTS
                             ISSUED AFTER FIRST CLOSING]

Expiration Date:             [September 12, 2008][or][INSERT ISSUE DATE PLUS 5.5
                             YEARS FOR WARRANTS ISSUED AFTER FIRST CLOSING]

         THIS WARRANT CERTIFIES THAT, for the agreed upon value of $1.00 and for
other good and valuable consideration, [________________] ("Holder"), is
entitled to purchase the number of fully paid and nonassessable shares of Common
Stock (the "Shares") of the corporation (the "Company") at the initial exercise
price per Share (the "Warrant Price") all as set forth above and as adjusted
pursuant to ARTICLE 2 of this Warrant, subject to the provisions and upon the
terms and conditions set forth in this Warrant.

ARTICLE 1.        EXERCISE.

         1.1      Method of Exercise. Commencing [SEPTEMBER 12, 2003][OR][INSERT
                  ISSUE DATE PLUS 6 MONTHS FOR WARRANTS ISSUED AFTER FIRST
                  CLOSING], Holder may exercise this Warrant in whole or in part
                  from time to time by delivering a duly executed Notice of
                  Exercise in substantially the form attached as Appendix 1 to
                  the principal office of the Company. Unless Holder is
                  exercising the conversion right set forth in

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                  Section 1.2, Holder shall also deliver to the Company a check
                  for the aggregate Warrant Price for the Shares being
                  purchased.

         1.2      Conversion Right. In lieu of exercising this Warrant as
                  specified in Section 1.1, Holder may from time to time convert
                  this Warrant, in whole or in part, into a number of Shares
                  determined by dividing (a) the aggregate fair market value of
                  the Shares or other securities otherwise issuable upon
                  exercise of this Warrant or portion thereof minus the
                  aggregate Warrant Price of such Shares by (b) the fair market
                  value of one Share; provided, however, the Holder shall not be
                  entitled to exercise this Warrant pursuant to this Section 1.2
                  prior to the first anniversary of the Issue Date of this
                  Warrant. The fair market value of the Shares shall be
                  determined pursuant to Section 1.2.1.

                  1.2.1    Fair Market Value. If the Shares are traded in a
                           public market, the fair market value of the Shares
                           shall be the closing price of the Shares (or the
                           closing price of the Company's stock into which the
                           Shares are convertible) reported for the business day
                           immediately before Holder delivers its Notice of
                           Exercise to the Company. If the Shares are not traded
                           in a public market, the Board of Directors of the
                           Company shall initially determine fair market value
                           in its reasonable good faith judgment. The Company
                           shall provide the Holder with written notice (within
                           10 days after delivery of the Notice of Exercise) of
                           its fair market value determination. If the Holder
                           objects to the determination within 10 days after
                           delivery by the Company of its fair market value
                           determination, the Holder may either (i) rescind its
                           Notice of Exercise in which case no exercise shall be
                           deemed to have occurred, or (ii) request that the
                           fair market value be determined pursuant to the
                           Appraisal Procedure (as defined below), which
                           determination shall be binding on the Holder and the
                           Company.

         1.3      Delivery of Certificate and New Warrant. Promptly after Holder
                  exercises or converts this Warrant, the Company shall deliver
                  to Holder certificates for the Shares acquired and, if this
                  Warrant has not been fully exercised or converted and has not
                  expired, a new Warrant representing the Shares not so
                  acquired.

         1.4      Replacement of Warrants. On receipt of evidence reasonably
                  satisfactory to the Company of the loss, theft, destruction or
                  mutilation of this Warrant and, in the case of loss, theft or
                  destruction, on delivery of an indemnity agreement reasonably
                  satisfactory in form and amount to the Company or, in the case
                  of mutilation, or surrender and cancellation of this Warrant,
                  the Company shall execute and deliver, in lieu of this
                  Warrant, a new warrant of like tenor.

         1.5      Assumption on Sale, Merger, or Consolidation of the Company.

                  1.5.1    "Acquisition". For the purpose of this Warrant,
                           "Acquisition" means any sale, license, or other
                           disposition of all or substantially all of the

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                           assets of the Company, or any reorganization,
                           consolidation, or merger of the Company in which the
                           Company shall not be the continuing or surviving
                           entity of such consolidation or merger.

                  1.5.2    Assumption of Warrant. Upon the closing of any
                           Acquisition, the successor entity shall assume the
                           obligations of this Warrant, and this Warrant shall
                           be exercisable for the same securities, cash, and
                           property as would be payable for the Shares issuable
                           upon exercise of the unexercised portion of this
                           Warrant as if such Shares were outstanding on the
                           record date for the Acquisition and subsequent
                           closing.

ARTICLE 2.        ADJUSTMENTS TO THE WARRANT PRICE AND NUMBER OF SHARES.

         2.1      Definitions. As used in this ARTICLE 2, the following terms
                  have the following respective meanings:

                  2.1.1    "Additional Shares of Common Stock" shall mean all
                           shares of Common Stock issued by the Company
                           (including those deemed issued pursuant to Section
                           2.3) after March 12, 2003 for any reason, including
                           without limitation as a result of sales of Common
                           Stock or Options, the issuance of Options, stock
                           dividends, distributions payable in common stock,
                           stock splits, reverse stock splits,
                           recapitalizations, reclassifications, combinations or
                           exchanges of shares, separations, reorganizations,
                           liquidations or other similar event, other than:

                           (i)      securities issued or issuable as a dividend
                                    or distribution on the Series B Preferred
                                    Stock;

                           (ii)     not more than ten (10) shares of capital
                                    stock of the Company on an "as converted to
                                    common stock" basis, the issuance of which
                                    resulted from mathematical or other error or
                                    inadvertence, provided that the transaction
                                    in which such shares were issued was
                                    approved at the time by vote of a majority
                                    of the Board of Directors of the Company;

                           (iii)    the first 500,000 shares of Common Stock
                                    issued or issuable pursuant to Employee
                                    Equity Issuances after March 12, 2003 (it
                                    being understood that the first such 500,000
                                    shares shall not be subject to Section
                                    2.2.2, and any subsequent Employee Equity
                                    Issuances shall be subject to Section 2.2.2;
                                    provided, further, such 500,000 share figure
                                    shall be appropriately adjusted to reflect
                                    transactions described in Sections 2.4 and
                                    2.5);

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                           (iv)     securities issued or issuable as a dividend
                                    or distribution on the Series A Preferred
                                    Stock upon the conversion of the Series A
                                    Preferred Stock to Common Stock; and

                           (v)      any securities issued or issuable as a
                                    result of an adjustment of the Warrant Price
                                    made pursuant to Section 2.2.

                  2.1.2    "Convertible Securities" means any evidences of
                           indebtedness, shares of stock, or other securities
                           directly or indirectly convertible into or
                           exchangeable for common stock or the value of which
                           is otherwise derived from or based upon the value of
                           the Common Stock.

                  2.1.3    "Employee Equity Issuances" means the issuance of
                           shares of Common Stock or Options to officers,
                           directors or employees of, or consultants to, the
                           Company pursuant to stock option or stock purchase
                           plans or agreements on terms approved by the Board of
                           Directors.

                  2.1.4    "Option" means any right, option, or warrant to
                           subscribe for, purchase, or otherwise acquire common
                           stock or Convertible Securities.

         2.2      Adjustments for Dilutive Issuances.

                  2.2.1    Issuances Other than Employee Equity Issuances. If
                           the Company shall issue, after March 12, 2003, any
                           Additional Shares of Common Stock (other than
                           issuances pursuant to transactions described in
                           Section 2.4 and Section 2.5 but expressly excluding
                           any new issuances concurrent with such transactions)
                           without consideration or for a consideration per
                           share less than the Warrant Price in effect
                           immediately prior to the issuance of such Additional
                           Shares of Common Stock, the Warrant Price in effect
                           immediately prior to each such issuance shall
                           forthwith be adjusted to be equal to the amount of
                           consideration per share received in connection with
                           such issuance, as determined pursuant to Section 2.6.
                           Notwithstanding the foregoing, the provisions of this
                           Section 2.2.1 shall not apply to Additional Shares of
                           Common Stock issued through an Employee Equity
                           Issuance.

                  2.2.2    Dilutive Issuances due to Employee Equity Issuances.
                           If the Company shall issue, after March 12, 2003, any
                           Additional Shares of Common Stock through an Employee
                           Equity Issuance without consideration or for a
                           consideration per share less than the Warrant Price
                           in effect immediately prior to the issuance of such
                           Additional Shares of Common Stock, the Warrant Price
                           in effect immediately prior to each such issuance
                           shall forthwith be adjusted to be equal to a price
                           determined by multiplying the Warrant Price then in
                           effect by a fraction (which shall in no event be
                           greater than one), the numerator

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                           of which shall be the number of shares of Common
                           Stock outstanding immediately prior to such issuance
                           plus the number of shares of Common Stock that the
                           aggregate consideration received by the Company for
                           such issuance would purchase at the Warrant Price;
                           and the denominator of which shall be the number of
                           shares of Common Stock outstanding immediately prior
                           to such issuance plus the number of shares of such
                           Additional Shares of Common Stock. For purposes of
                           the foregoing computation, the number of shares of
                           Common Stock outstanding shall be deemed to include
                           all shares of Common Stock actually outstanding and
                           all shares of Common Stock deemed to be outstanding
                           as a result of the application of the rules set forth
                           in Section 2.3.

         2.3      Deemed Issuance of Additional Shares of Common Stock. In the
                  case of the issuance of Options or Convertible Securities, the
                  following provisions shall apply for all purposes of this
                  ARTICLE 2:

                  2.3.1    The aggregate maximum number of shares of Common
                           Stock deliverable upon exercise (assuming the
                           satisfaction of any conditions to exercisability,
                           including without limitation, the passage of time,
                           but without taking into account potential
                           antidilution adjustments) of such Options (and, in
                           the case of Options to acquire Convertible
                           Securities, the maximum number of shares of Common
                           Stock issuable upon conversion or exchange of such
                           Convertible Securities) shall be deemed to have been
                           issued at the time such Options were issued and for a
                           consideration equal to the consideration (determined
                           in the manner provided in Section 2.6), if any,
                           received by the Company upon the issuance of such
                           Options plus the minimum exercise price provided in
                           such Options (without taking into account potential
                           antidilution adjustments) for the Common Stock
                           covered thereby (plus, in the case of Options to
                           acquire Convertible Securities, the minimum
                           additional consideration, if any, deliverable upon
                           conversion or exchange of such Convertible
                           Securities).

                  2.3.2    The aggregate maximum number of shares of Common
                           Stock deliverable upon conversion of or in exchange
                           (assuming the satisfaction of any conditions to
                           convertibility or exchangeability, including, without
                           limitation, the passage of time, but without taking
                           into account potential antidilution adjustments) for
                           such Convertible Securities or upon the exercise of
                           Options to purchase Convertible Securities and
                           subsequent conversion or exchange thereof shall be
                           deemed to have been issued at the time such
                           Convertible Securities were issued or such Options
                           were issued and for a consideration equal to the
                           consideration, if any, received by the Company for
                           any such Convertible Securities and related Options
                           (excluding any cash received on account of accrued
                           interest or accrued dividends), plus the minimum
                           additional consideration, if any, to be received by
                           the Company (without taking into account potential
                           antidilution

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                           adjustments) upon the conversion or exchange of such
                           Convertible Securities or the exercise of any related
                           Options (the consideration in each case to be
                           determined in the manner provided in Section 2.6).

                  2.3.3    If, following the issuance of Options or Convertible
                           Securities and the determination of the impact of
                           such issuance pursuant to Section 2.3.1 or 2.3.2
                           above, there is any change in the maximum number of
                           shares of Common Stock deliverable or in the minimum
                           consideration payable to the Company upon exercise of
                           such Options or upon conversion of or in exchange for
                           such Convertible Securities, including, but not
                           limited to, a change resulting from the antidilution
                           provisions thereof, the Warrant Price shall be
                           recomputed to reflect such change, but no further
                           adjustment shall be made for the actual issuance of
                           Common Stock or any payment of such consideration
                           upon the exercise of any such Options or the
                           conversion or exchange of such Convertible
                           Securities.

                  2.3.4    The number of shares of Common Stock deemed issued
                           and the consideration deemed paid therefor pursuant
                           to sections 2.3.1 and 2.3.2 shall be appropriately
                           adjusted to reflect any change of the type described
                           in subsection 2.3.3. No readjustment of the Warrant
                           Price pursuant to a change described in the preceding
                           sentence shall increase the Warrant Price more than
                           the amount of any decrease made in respect of the
                           corresponding issue of Options or Convertible
                           Securities.

                  2.3.5    For purposes of this ARTICLE 2, Securities (including
                           Options or Convertible Securities) shall be deemed to
                           be issued on the earliest to occur of the grant,
                           issuance, or sale of, or the fixing of a record date
                           with respect to the distribution or issuance of, such
                           securities.

         2.4      Stock Dividends, Splits, Etc. If the Company declares or pays
                  a dividend on its Common Stock payable in Common Stock, or
                  other securities, subdivides the outstanding Common Stock into
                  a greater amount of Common Stock, then upon exercise of this
                  Warrant, for each Share acquired, Holder shall receive,
                  without cost to Holder, the total number and kind of
                  securities to which Holder would have been entitled had Holder
                  owned the Shares of record as of the date the dividend or
                  subdivision occurred. If the outstanding shares are combined
                  or consolidated, by reclassification or otherwise, into a
                  lesser number of shares, the Warrant Price shall be
                  proportionately increased.

         2.5      Reclassification, Exchange, Combinations or Substitution. Upon
                  any reclassification, exchange, substitution, or other event
                  that results in a change of the number and/or class of the
                  securities issuable upon exercise or conversion of this
                  Warrant, Holder shall be entitled to receive, upon exercise or
                  conversion of this Warrant, the number and kind of securities
                  and property that Holder would have received for the Shares if
                  this Warrant had been exercised immediately before such
                  reclassification, exchange, substitution, or

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                  other event. The Company or its successor shall promptly issue
                  to Holder a new Warrant for such new securities or other
                  property. The new Warrant shall provide for adjustments which
                  shall be as nearly equivalent as may be practicable to the
                  adjustments provided for in this ARTICLE 2 including, without
                  limitation, adjustments to the Warrant Price and to the number
                  of securities or property issuable upon exercise of the new
                  Warrant. The provisions of this Section 2.5 shall similarly
                  apply to successive reclassifications, exchanges,
                  substitutions, or other events.

         2.6      Computation of Consideration. The consideration received by
                  the Company for the issuance of any Additional Common Shares
                  shall be computed as follows:

                  2.6.1    In the case of the issuance of Additional Shares of
                           Common Stock for cash, the consideration shall be
                           deemed to be the amount of cash paid therefore after
                           deducting any reasonable discounts, commissions or
                           other expenses allowed, paid or incurred by this
                           Company for any underwriting or otherwise in
                           connection with the issuance and sale thereof.

                  2.6.2    In the case of the issuance of Additional Shares of
                           Common Stock for a consideration in whole or in part
                           other than cash, the consideration other than cash
                           shall be deemed to be the fair value thereof as
                           determined in good faith by the Board of Directors.
                           The Company shall provide the Holder with written
                           notice of its fair market value determination
                           pursuant to this Section 2.6.2 within 30 days
                           following such issuance. If the holders of a majority
                           of the outstanding warrants issued pursuant to the
                           Purchase Agreement ("Majority Holders") deliver to
                           the Company, within 30 days following delivery of the
                           Company's written notice, written notice of their
                           objection to such determination the fair market value
                           shall be determined pursuant to the Appraisal
                           Procedure, which determination shall be binding on
                           the Holder and the company.

                  2.6.3    The consideration for Additional Shares of Common
                           Stock issued together with other property of the
                           Company for consideration that covers both shall be
                           determined in good faith by the Board of Directors.
                           The Company shall provide the Holder with written
                           notice of its determination of the consideration
                           provided in connection with an issuance covered by
                           Section 2.6.3 within 30 days following such issuance.
                           If the Majority Holders deliver to the Company,
                           within 30 days following delivery of the Company's
                           written notice, objection to such determination, the
                           consideration provided shall be determined pursuant
                           to the Appraisal Procedure, which determination shall
                           be binding on the Holder and the Company.

         2.7      No Impairment. The Company shall not, by amendment of its
                  Certificate of Incorporation or through a reorganization,
                  transfer of assets, consolidation,

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                  merger, dissolution, issue, or sale of securities or any other
                  voluntary action, avoid or seek to avoid the observance or
                  performance of any of the terms to be observed or performed
                  under this Warrant by the Company, but shall at all times in
                  good faith assist in carrying out of all the provisions of
                  this ARTICLE 2 and in taking all such action as may be
                  necessary or appropriate to protect Holder's rights under this
                  Article against impairment.

         2.8      Fractional Shares. No fractional Shares shall be issuable upon
                  exercise or conversion of the Warrant and the number of Shares
                  to be issued shall be rounded down to the nearest whole Share.
                  If a fractional share interest arises upon any exercise or
                  conversion of the Warrant, the Company shall eliminate such
                  fractional share interest by paying Holder the amount computed
                  by multiplying the fractional interest by the fair market
                  value of a full Share.

         2.9      Certificate as to Adjustments. Upon the occurrence of each
                  adjustment or readjustment of the Warrant Price pursuant to
                  this ARTICLE 2, the Company at its expense shall promptly
                  compute such adjustment or readjustment in accordance with the
                  terms hereof and furnish to the Holder a certificate setting
                  forth such adjustment or readjustment and showing in detail
                  the facts upon which such adjustment is based; provided,
                  however, that the Company shall not be required to provide
                  each holder with such a certificate more than one time per
                  calendar quarter. The Company shall, upon the written request
                  at any time of the Holder, furnish or cause to be furnished to
                  the Holder a like certificate setting forth (i) such
                  adjustments and readjustments, (ii) the Warrant Price in
                  effect at the time, and (iii) the number of shares of Common
                  Stock and the amount, if any, of other property which at the
                  time would be received upon exercise of the Warrant.

         2.10     Appraisal Procedure. In the event of a challenge to the fair
                  market value determinations of the board of directors pursuant
                  to Section 1.2.1 or 2.6.2, or the amount of consideration
                  determined pursuant to Section 2.6.3, the Company and the
                  Holder (or in case of Sections 2.6.2 and 2.6.3, the Majority
                  Holders) shall attempt to select an investment banking firm to
                  resolve such dispute. In the event that the Company and the
                  Holder (or Majority Holders) are unable to agree upon an
                  investment banking firm, within 30 days following the delivery
                  of the Holder's (or Majority Holder's) written objections
                  ("Objection Date"), the Company and the Holder (or Majority
                  Holders), within 45 days following the Objection Date, shall
                  each select an investment banking firm with a national
                  reputation and the two firms so selected shall agree upon a
                  third investment banking firm, which shall resolve such
                  dispute. The findings of the investment banking firm so
                  selected shall be binding on the Company and the Holder (or
                  Majority Holders, as the case may be). The fees and costs of
                  the investment banking firm selected shall be borne one-half
                  by the Company and one-half by the Holder (or Majority
                  Holders, as the case may be).

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ARTICLE 3.        REPRESENTATIONS AND COVENANTS OF THE COMPANY.

         3.1      Representations and Warranties. The Company represents and
                  warrants to the Holder that all Shares which may be issued
                  upon the exercise of the purchase right represented by this
                  Warrant, shall, upon issuance, be duly authorized, validly
                  issued, fully paid and nonassessable, and free of any liens
                  and encumbrances except for restrictions on transfer provided
                  for herein or under applicable federal and state securities
                  laws.

         3.2      Notice of Certain Events. If the Company proposes at any time
                  (a) to declare any dividend or distribution upon its common
                  stock, whether in cash, property, stock, or other securities
                  and whether or not a regular cash dividend; (b) to offer for
                  subscription pro rata to the holders of any class or series of
                  its stock any additional shares of stock of any class or
                  series or other rights; (c) to effect any reclassification or
                  recapitalization of common stock; (d) to merge or consolidate
                  with or into any other corporation, or sell, lease, license,
                  or convey all or substantially all of its assets, or to
                  liquidate, dissolve or wind up; or (e) offer holders of
                  registration rights the opportunity to participate in an
                  underwritten public offering of the company's securities for
                  cash, then, in connection with each such event, the Company
                  shall give Holder (1) at least 10 days prior written notice of
                  the date on which a record will be taken for such dividend,
                  distribution, or subscription rights (and specifying the date
                  on which the holders of common stock will be entitled thereto)
                  or for determining rights to vote, if any, in respect of the
                  matters referred to in (a), (b), (c) and (d) above; (2) in the
                  case of the matters referred to in (c) and (d) above at least
                  10 days prior written notice of the date when the same will
                  take place (and specifying the date on which the holders of
                  common stock will be entitled to exchange their common stock
                  for securities or other property deliverable upon the
                  occurrence of such event); and (3) in the case of the matter
                  referred to in (e) above, the same notice as is given to the
                  holders of such registration rights.

         3.3      Registration Under Securities Act of 1933, as amended. The
                  Company agrees that the Shares or, if the Shares are
                  convertible into common stock of the Company, such common
                  stock, shall be subject to the registration rights set forth
                  in the Registration Rights Agreement between the Company, the
                  Holder and certain other parties dated as of March 12, 2003,
                  as amended.

ARTICLE 4.        MISCELLANEOUS.

         4.1      Voting Rights. This Warrant shall not entitle the registered
                  holder to any voting rights or other rights as a stockholder
                  of the Company but upon presentation of this Warrant with the
                  Notice of Exercise duly executed and, if exercised pursuant to
                  Section 1.1, the tender of payment of the Warrant Price at the
                  office of the Company pursuant to the provisions of this
                  Warrant, the registered holder shall forthwith be deemed a
                  stockholder of the Company in respect of the Shares so
                  subscribed for.

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         4.2      No Change Necessary. The form of this Warrant need not be
                  changed because of any adjustment in the Warrant Price or in
                  the number of Shares issuable upon its exercise. A Warrant
                  issued after any adjustment on any partial exercise or upon
                  replacement may continue to express the same Warrant Price and
                  the same number of Shares (appropriately reduced in the case
                  of partial exercise) as are stated on this Warrant as
                  initially issued, and that Warrant Price and that number of
                  shares shall be considered to have been so changed as of the
                  close of business on the date of adjustment.

         4.3      Term. This Warrant is exercisable in whole or in part at any
                  time and from time to time beginning six months after the date
                  hereof, through and including the Expiration Date.

         4.4      Legends. This Warrant and the Shares (and the securities
                  issuable, directly or indirectly, upon conversion of the
                  Shares, if any) shall be imprinted with a legend in
                  substantially the following form:

         THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933 (THE "ACT") OR STATE SECURITIES LAWS
         AND NO TRANSFER OF SUCH SECURITIES MAY BE MADE EXCEPT (A) PURSUANT TO
         AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND THE RULES AND
         REGULATIONS THEREUNDER AND OF ALL APPLICABLE STATE SECURITIES OR "BLUE
         SKY" LAWS, OR (B) PURSUANT TO AN EXEMPTION THEREFROM UNDER SAID ACT AND
         ALL APPLICABLE STATE SECURITIES OR "BLUE SKY" LAWS WITH RESPECT TO
         WHICH THE COMPANY MAY, UPON REQUEST, REQUIRE A SATISFACTORY OPINION OF
         COUNSEL FOR THE HOLDER THAT SUCH TRANSFER IS EXEMPT FROM THE
         REQUIREMENTS OF THE ACT.

         4.5      Compliance with Securities Laws on Transfer. This Warrant and
                  the Shares issuable upon exercise of this Warrant (and the
                  securities issuable, directly or indirectly, upon conversion
                  of the Shares, if any) may not be transferred or assigned in
                  whole or in part without compliance with applicable federal
                  and state securities laws by the transferor and the transferee
                  (including, without limitation, the delivery of investment
                  representation letters and legal opinions reasonably
                  satisfactory to the Company, as reasonably requested by the
                  Company). The Company shall not require Holder to provide an
                  opinion of counsel if the transfer is to an affiliate of
                  Holder or if there is no material question as to the
                  availability of current information as referenced in Rule
                  144(c), Holder represents that it has complied with Rule
                  144(d) and (e) in reasonable detail, the selling broker
                  represents that it has complied with Rule 144(f), and the
                  Company is provided with a copy of Holder's notice of proposed
                  sale.

         4.6      Transfer Procedure. Subject to the provisions of Section 4.5,
                  Holder may transfer all or part of this Warrant or the Shares
                  issuable upon exercise of this

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                  Warrant (or the securities issuable, directly or indirectly,
                  upon conversion of the Shares, if any) to any affiliate of
                  Holder at any time without prior notice to Company; provided,
                  however, if Holder transfers this Warrant, Holder will give
                  the Company notice of the portion of the Warrant being
                  transferred with the name, address and taxpayer identification
                  number of the transferee and surrendering this Warrant to the
                  Company for reissuance to the transferee(s) (and Holder if
                  applicable).

         4.7      Notices. All notices and other communications from the Company
                  to the Holder, or vice versa, shall be deemed delivered and
                  effective when given personally or mailed by first-class
                  registered or certified mail, postage prepaid, at such address
                  as may have been furnished to the Company or the Holder, as
                  the case may be, in writing by the Company or such holder from
                  time to time. Notices shall be addressed as follows:

                  If to Holder, to the address set forth on the signature page
                  hereto.

                           With a copy to:

                           Irell & Manella LLP
                           1800 Avenue of the Stars, Suite 900
                           Los Angeles, CA  90067
                           Attn: Alvin G. Segel, Esq.

                  If to Company:

                           Novatel Wireless, Inc.
                           9360 Towne Centre Drive, Suite 110
                           San Diego, California
                           Attn: Peter Leparulo, Chief Executive Officer

                           With a copy to:

                           Latham & Watkins LLP
                           633 West Fifth Street, Suite 4000
                           Los Angeles, CA  90071
                           Attn: J. Scott Hodgkins, Esq.

         4.8      Waiver. This Warrant and any term hereof may be amended,
                  changed, waived, discharged or terminated only by an
                  instrument in writing signed by the Company and the Majority
                  Holders.

         4.9      Remedies. The Company stipulates that the remedies at law of
                  the Holder in the event of any default or threatened default
                  by the Company in the performance of or compliance with any of
                  the terms of this Warrant are not and will not be adequate,
                  and that such terms may be specifically enforced by

                                     - 11 -

<PAGE>

                  a decree for the specific performance of any agreement
                  contained herein or by an injunction against a violation of
                  any of the terms hereof or otherwise.

         4.10     Taxes. The Company shall pay any issue or transfer taxes
                  payable in connection with the exercise of the Warrant,
                  provided, however, that the Company shall not be required to
                  pay any tax which may be payable in respect of any transfer to
                  a name other than that of the Holder.

         4.11     Attorney's Fees. In the event of any legal or equitable action
                  between the parties concerning the terms and provisions of
                  this Warrant, the party prevailing in such legal or equitable
                  action shall be entitled to collect from the other party all
                  costs incurred in such dispute, including reasonable
                  attorneys' fees.

         4.12     Automatic Conversion upon Expiration. In the event that, upon
                  the Expiration Date, the fair market value of one Share (or
                  other security issuable upon the exercise hereof) as
                  determined in accordance with Section 1.2.1 above is greater
                  than the Exercise Price in effect on such date, then this
                  Warrant shall automatically be deemed on and as of such date
                  to be converted pursuant to Section 1.2 above as to all Shares
                  (or such other securities) for which it shall not previously
                  have been exercised or converted, and the Company shall
                  deliver a certificate representing the Shares (or such other
                  securities) issued upon such conversion to the Holder.

         4.13     Governing Law. This Warrant shall be governed by and construed
                  in accordance with the laws of the State of California,
                  without giving effect to its principles regarding conflicts of
                  law.

                                   "COMPANY"

                                   Novatel Wireless, Inc.

                                   By: /s/ Peter V. Leparulo
                                       Name: Peter V. Leparulo
                                       Title: Chief Executive Officer

                                   By: /s/ Melvin L. Flowers
                                       Name: Melvin L. Flowers
                                       Title: Sr. V.P. Finance, and CFO

                                     - 12 -

<PAGE>

                                            HOLDER'S ADDRESS

                                            [_______________________________]
                                            [_______________________________]
                                            [_______________________________]
                                            [_______________________________]

                                     - 13 -

<PAGE>

NOTICE OF EXERCISE

         To: Novatel Wireless, Inc.

         (1)      The undersigned hereby (A) elects to purchase ________ shares
of common stock of Novatel Wireless, Inc., pursuant to the provisions of Section
1.1 of the attached Warrant, and tenders herewith payment of the purchase price
for such shares in full, or (B) elects to exercise this Warrant with respect to
______ shares of common stock issuable upon exercise of the Warrant, pursuant to
the provisions of Section 1.2 of the attached Warrant.

         (2)      Please issue a certificate or certificates representing said
shares of common stock in the name of the undersigned or in such other name as
is specified below:

                                          ______________________________________
                                          (Name)

                                          ______________________________________
                                          (Name)

         (3)      Please issue a new Warrant for the unexercised portion of the
attached Warrant in the name of the undersigned or in such other name as is
specified below:

                                          ______________________________________
                                          (Name)

_______________________________           ______________________________________
(Date)                                    (Signature)
                                          Address of Holder:

                                     - 14 -<PAGE>
                                                                     EXHIBIT 4.5

                           FORM OF SECURITY AGREEMENT

         THIS SECURITY AGREEMENT (this "AGREEMENT"), dated as of March 12, 2003,
is entered into by and between Novatel Wireless, Inc., a Delaware corporation
(the "GRANTOR"), and PS Capital LLC, as collateral agent and representative (in
such capacity, the "AGENT") for the holders ("NOTE HOLDERS") of the Secured
Convertible Subordinated Notes dated as of the date hereof (as amended and in
effect from time to time, the "SECURED NOTES"), issued by the Grantor to the
Note Holders. The Note Holders and the Agent, including their respective
successors and permitted assigns, are collectively referred to herein as the
"SECURED PARTIES."

                                    RECITALS

         WHEREAS, the Grantor and the Note Holders have entered into a
Securities Purchase Agreement (the "PURCHASE AGREEMENT"), pursuant to which,
among other things, the Note Holders have agreed to lend to the Grantor the
aggregate principal sum of $1,200,000 (the "LOAN"), which Loan will be evidenced
by the Secured Notes;

         WHEREAS, in order to induce the Note Holders to make the Loan, the
Grantor has agreed to grant security interests in favor of the Agent, as
collateral agent and representative for the pro rata benefit of the Note
Holders, as more fully set forth herein;

         WHEREAS, it is a condition precedent to the Note Holders entering into
the Purchase Agreement and making the Loan that the Grantor executes and
delivers this Security Agreement; and

         WHEREAS, the Grantor previously granted security interests in favor of
two existing and senior secured parties;

                           NOW, THEREFORE, in consideration of the premises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

                                    AGREEMENT

         Section 1.        Definitions. Capitalized terms not otherwise defined
herein shall have the meanings set forth in the Purchase Agreement, or, if not
defined therein, shall have the meanings set forth in the Secured Notes. All
terms defined in the Uniform Commercial Code as from time to time enacted and in
effect in the State of California (the "UCC") and used herein without other
definitions shall have the same definitions herein as specified from time to
time therein. In addition, the following terms shall have the respective
meanings set forth below:

                           "OBLIGATIONS" means all indebtedness, obligations and
liabilities of the Grantor to the Secured Parties, in its capacity as such,
under the Secured Notes and this Agreement, including without limitation
principal, interest (whether accruing prior to or after the commencement of any
proceeding under bankruptcy, insolvency, receivership or similar laws), and all
fees, costs and expenses payable in respect thereof (including reasonable legal,
investment banking, accounting, and other professional fees and expenses

<PAGE>

and court costs) existing on the date of this Agreement or arising thereafter,
whether direct or indirect, joint or several, absolute or contingent, matured or
unmatured, liquidated or unliquidated, arising by contract, operation of law or
otherwise, arising or incurred under this Agreement or the Secured Notes or in
respect of the Loan or any other extensions of credit made under the Secured
Notes or other instruments at any time evidencing any thereof or otherwise made
by the Secured Parties.

                           "PERMITTED LIENS" means (a) liens to secure taxes,
assessments and other government charges in respect of obligations not overdue
or being contested in good faith through appropriate procedures or liens to
secure claims for labor, material or supplies in respect of obligations not
overdue or being contested in good faith through appropriate procedures; (b)
deposits or pledges made in connection with, or to secure payment of, workmen's
compensation, unemployment insurance, old age pensions or other social security
obligations; (c) liens in respect of judgments or awards that otherwise do not
create an Event of Default; (d) liens of carriers, warehousemen, mechanics and
materialmen, and other like liens, in existence less than 60 days from the date
of creation thereof in respect of obligations not overdue or being contested in
good faith through appropriate procedures; (e) encumbrances on real estate
consisting of easements, rights of way, zoning restrictions, restrictions on the
use of real property and defects and irregularities in the title thereto,
landlord's or lessor's liens under leases to which the Grantor is a party; (f)
liens in favor of the Secured Parties; (g) purchase money security interests in
specific items of equipment; (h) liens granted pursuant to the Silicon Valley
Bank Agreement, so long as the aggregate principal amount of the obligations
outstanding with respect to such liens does not exceed the "Credit Limit" as
defined in the Silicon Valley Bank Agreement (as such definition is formulated
as of the date hereof); (i) liens granted pursuant to the Sanmina Agreements
(but only prior to the issuance of the Sanmina Notes); (j) liens granted
pursuant to the Sanmina Notes and related security agreement; and (k) liens
incurred in connection with the extension, renewal or refinancing of the
indebtedness secured by the lien described in clause (h) of this section,
subject to the principal limit set forth in such clause.

         "PERSON" means any individual, corporation, partnership, limited
partnership, limited liability partnership, limited liability company, trust,
association, organization, or other entity.

         "RIGHTS OF THE SENIOR SECURED LENDERS" shall mean (i) the rights of
Silicon Valley Bank pursuant to the Silicon Valley Bank Agreement (subject to
the provisions of the Subordination Agreement of even date herewith among
Silicon Valley Bank, the Grantor and the Secured Parties), and (ii) prior to the
Sanmina Closing (as defined in the Purchase Agreement), the rights of
Sanmina-SCI Corporation and Sanmina Canada ULC pursuant to the Sanmina
Agreements. After the issuance of the Sanmina Notes, Silicon Valley Bank shall
be the sole lender with a security interest that is senior to the security
interest granted in this Agreement, and the security interest granted hereunder
shall be pari-passu with that security interest granted pursuant to the security
agreement entered into by the Grantor in connection with the Sanmina Notes.

         "SILICON VALLEY BANK AGREEMENT" shall mean that certain Loan and
Security Agreement, dated as of November 29, 2001, between the Company and
Silicon Valley Bank, Commercial Finance Division (as amended, provided that any
such amendment shall

                                      - 2 -

<PAGE>

not provide for aggregate obligations in excess of the limit provided in clause
(h) of the "Permitted Liens" definition above).

         "SANMINA AGREEMENTS" shall mean (i) that certain Settlement Agreement
and Mutual General Release, dated as of January 12, 2002, between the Company
and Sanmina-SCI Corporation and Sanmina Canada ULC; and (ii) that certain
Security Agreement, dated as of January 12, 2002, between the Company and
Sanmina-SCI Corporation, in each case as in effect on the date hereof.

         Section 2.        Grant of Security Interest.

                           (a)      The Grantor hereby grants to the Agent, as
collateral agent and representative for the pro rata benefit of the Note
Holders, to secure the timely payment and performance in full of all of the
Obligations, a continuing security interest in and so pledges and assigns to the
Agent (as collateral agent and representative for the pro rata benefit of the
Note Holders) the following properties, assets and rights of the Grantor,
wherever located, whether now owned or hereafter acquired or arising, and all
proceeds, products, rents, offspring and profits thereof, accessions thereto,
and supporting obligations relating thereto (all of the same being hereinafter
called the "COLLATERAL"):

                           All personal and fixture property of every kind and
nature including, without limitation, all furniture, fixtures, equipment, raw
materials, inventory, goods, vehicles, accounts, contract rights, payment
intangibles, rights to the payment of money, insurance refund claims,
health-care-insurance receivables and all other insurance claims and proceeds,
tort claims, proceeds of fraudulent transfer, preference, or similar claims,
pension fund overfunded amounts, chattel paper, documents, instruments, letters
of credit, letter-of-credit rights, investment accounts, securities, security
entitlements, securities accounts, securities contracts, commodities contracts,
commodities accounts, financial assets, investment property, and all general
intangibles, tax refund claims, recoveries for preference and fraudulent
conveyance actions, license fees, patents, patent applications, trademarks,
trademark applications, trade names, trade styles, trade dress, logos, other
source of business identifiers, associated product lines, rights to use,
advertise, market and sell all inventions disclosed or claimed in any of the
foregoing, copyrights, copyright applications, mask-works, rights to sue and
recover for past infringement of patents, trademarks, copyrights and mask-works,
renewals, reissues and extensions of all of the foregoing, computer programs,
software, engineering drawings, service marks, customer lists, goodwill, and all
licenses, permits, agreements of any kind or nature pursuant to which the
Grantor possesses, uses or has authority to possess or use property (whether
tangible or intangible) of others or others possess, use or have authority to
possess or use property (whether tangible or intangible) of the Grantor, and all
recorded data of any kind or nature, regardless of the medium of recording
including, without limitation, all software, writings, plans, specifications and
schematics, and all proceeds, products, rents and profits, of all of the
foregoing, however evidenced; provided, however, that Collateral shall not
include, and the Company shall not be deemed to have granted a security interest
in, (i) any of the Company's rights or interests in any license, contract or
agreement to which the Company is a party or any of its rights or interests
thereunder to the extent, but only to the extent, that such a grant would, under
the terms of a prohibition on assignment (which is otherwise valid and
enforceable) contained in such license, contract or agreement or otherwise; and
(ii) any real property.

                                     - 3 -

<PAGE>

         Section 3.        Title to Collateral, etc. The Grantor is the owner of
the Collateral free from any adverse lien, security interest or other
encumbrance, except for the security interest created by this Agreement and
other Permitted Liens. The Grantor has full power and authority to grant the
security interests granted pursuant to Section 2 hereof and to execute, deliver
and perform its obligations in accordance with the terms of this Agreement,
without the consent or approval of any other Person, other than any consent or
approval that has been obtained. None of the Collateral constitutes, or is the
proceeds of, "farm products" as defined in Section 9102(34) or "consumer goods"
as defined in Section 9102(23), of the UCC.

         Section 4.        Continuous Perfection. The Grantor's principal place
of business and jurisdiction of organization are as indicated on Schedule 1
hereto. Until all Obligations have been paid and performed and this Agreement
has been terminated, the Grantor will not change the same, or the name,
identity, corporate structure or jurisdiction of organization of the Grantor in
any manner, without providing at least thirty (30) days' prior written notice to
the Agent.

         Section 5.        No Liens. Except for the security interest herein
granted and other Permitted Liens, the Grantor shall be the owner of the
Collateral free from any lien, security interest or other encumbrance, and the
Grantor shall defend the same against all claims and demands of all Persons at
any time claiming the same or any interests therein adverse to the Secured
Parties. The Grantor shall not pledge, mortgage or create, or suffer to exist a
security interest in the Collateral in favor of any Person other than the Agent
(as collateral agent and for the pro rata benefit of the Secured Parties),
except for Permitted Liens.

         Section 6.        No Transfers. The Grantor will not sell or offer to
sell or otherwise transfer the Collateral or any interest therein except for (a)
licenses of general intangibles in the ordinary course of business and (b) sales
or other dispositions in the ordinary course of business.

         Section 7.        Maintenance of Collateral; Compliance with Law. The
Grantor will keep the Collateral in good order and repair (subject to ordinary
wear and tear) and will not use the same in violation of law or any policy of
insurance thereon. The Agent, or its designee, may inspect the Collateral at any
reasonable time and upon reasonable notice, wherever located. The Grantor will
pay promptly when due, or contest in good faith via appropriate procedures, all
taxes, assessments, governmental charges and levies upon the Collateral or
incurred in connection with the use or operation of such Collateral or incurred
in connection with this Agreement.

         Section 8.        Collateral Protection Expenses; Preservation of
Collateral.

                           (a)      In its discretion, but subject to Rights of
the Senior Secured Lenders, the Agent may discharge taxes and other encumbrances
at any time levied or placed on any of the Collateral, make repairs thereto and
pay any necessary filing fees. The Grantor agrees to reimburse the Agent on
demand for any and all expenditures so made. The Agent shall have no obligation
to the Grantor to make any such expenditures, nor shall the making thereof
relieve the Grantor of any default.

                                     - 4 -

<PAGE>

                           (b)      Anything herein to the contrary
notwithstanding, the Grantor shall remain liable under each contract or
agreement comprised in the Collateral to be observed or performed by the Grantor
thereunder. Neither the Agent nor any Secured Party shall have any obligation or
liability under any such contract or agreement by reason of or arising out of
this Agreement or the receipt by the Agent or any Secured Party of any payment
relating to any of the Collateral, nor shall the Agent or any Secured Party be
obligated in any manner to perform any of the obligations of the Grantor under
or pursuant to any such contract or agreement, to make inquiry as to the nature
or sufficiency of any payment received by the Agent or any Secured Party in
respect of the Collateral or as to the sufficiency of any performance by any
party under any such contract or agreement, to present or file any claim, to
take any action to enforce any performance or to collect the payment of any
amounts that may have been assigned to the Agent or to which the Agent may be
entitled at any time or times. The Agent's sole duty with respect to the
custody, safe keeping and physical preservation of the Collateral in its
possession, under Section 9207 and, with respect to Collateral under the Agent's
control, Section 9208, of the UCC or otherwise, shall be to deal with such
Collateral in the same manner as the Agent deals with similar property for its
own account.

         Section 9.        Securities and Deposits. Subject to the Rights of the
Senior Secured Lenders, the Agent may at any time, at its option, transfer to
itself or any nominee any securities constituting Collateral, receive any income
thereon and hold such income as additional Collateral or apply it on the
Obligations. Whether or not Obligations are due the Agent may (subject to the
Rights of the Senior Secured Lenders) demand, sue for, collect, or make any
settlement or compromise it deems desirable with respect to the Collateral.
Regardless of the adequacy of the Collateral or any other security for the
Obligations, any deposits or other sums at any time credited by or due from any
Secured Party to the Grantor may at any time be applied or set off against any
of the Obligations.

         Section 10.       Notification to Account Debtors and Other Obligors.
Subject to the Rights of the Senior Secured Lenders, the Grantor shall, at any
time upon the request of the Agent, notify account debtors on accounts, chattel
paper and general intangibles of the Grantor and obligors on instruments or
other collateral for which the Grantor is an obligee of the security interest of
the Agent in any account, chattel paper, general intangible or instrument and
that payment thereof is to be made directly to the Agent or the Secured Parties
or to any financial institution designated by the Agent as the Agent's agent
therefor, and the Agent may itself, without notice to or demand upon the
Grantor, so notify account debtors and obligors. After the making of such a
request or the giving of any such notification, the Grantor shall hold any
proceeds of collection of accounts, chattel paper, general intangibles and
instruments received by the Grantor as trustee for the Agent and the Secured
Parties without commingling the same with other funds of the Grantor and shall
turn the same over to the Agent in the identical form received, together with
any necessary endorsements or assignments. Subject to the Rights of the Senior
Secured Lenders, the Grantor shall apply the proceeds of collection of accounts,
chattel paper, general intangibles, and instruments received by the Agent to the
Obligations, such proceeds to be immediately entered after final payment in cash
or solvent credits of the items giving rise to them.

         Section 11.       Further Assurances. The Grantor, at its own expense,
shall promptly do, make, execute and deliver all such additional and further
acts, things, deeds, assurances and instruments as the Agent may reasonably
request more completely to vest in and assure to

                                     - 5 -

<PAGE>

the Agent its rights hereunder or in any of the Collateral (on behalf of, and
for the pro rata benefit of, the Secured Parties), including, without
limitation, (a) executing (if necessary), delivering and, where appropriate,
filing financing statements and continuation statements under the UCC and
documents having comparable functions under other applicable law; (b) obtaining
governmental and other third party consents and approvals, including without
limitation any consent of any licensor, lessor or other applicable party; (c)
obtaining waivers from mortgagees and landlords; (d) subject to the Rights of
the Senior Secured Lenders, taking all actions required by the UCC, including
obtaining any necessary agreements from securities intermediaries, depository
banks, or, as applicable, letter of credit issuers, to establish and maintain
the Agent's control over all investment property, deposit accounts, chattel
paper, and letter of credit rights; (e) obtaining insurance endorsements,
including (subject to the Rights of the Senior Secured Lenders) loss payee and
additional insured endorsements, as applicable; and (f) promptly notifying the
Agent of any commercial tort claim arising after the date hereof. The Grantor
authorizes the Agent from time to time to file such financing statements or
other documents as the Agent may deem appropriate to perfect the security
interest granted hereunder, or to ensure the continuing perfection, priority and
enforceability thereof. The Grantor acknowledges that any such financing
statements may describe the Collateral as "all assets" of the Grantor or contain
any other description of similar import. Subject to the Rights of the Senior
Secured Lenders, if any amount greater than $50,000, in the aggregate, payable
under or in connection with any of the Collateral shall be or become evidenced
by any promissory note or other instrument, such note or instrument shall be
immediately pledged and delivered to the Agent, duly endorsed in a manner
satisfactory to the Agent.

         Section  12.      Power of Attorney.

                           (a)      Subject to the Rights of the Senior Secured
Lenders, the Grantor hereby irrevocably constitutes and appoints the Agent and
any officer or agent thereof, with full power of substitution, as its true and
lawful attorneys-in-fact with full irrevocable power and authority in the place
and stead of the Grantor or in the Agent's own name, for the purpose of carrying
out the terms of this Agreement, to take any and all appropriate action and to
execute any and all documents and instruments that may be necessary or desirable
to accomplish the purposes of this Agreement and, without limiting the
generality of the foregoing, hereby gives said attorneys the power and right, on
behalf of the Grantor, without notice to or assent by the Grantor, to do the
following:

                                    (i)      upon the occurrence and during the
continuance of an Event of Default, generally to sell, transfer, pledge, make
any agreement with respect to or otherwise deal with any of the Collateral in
such manner as is consistent with the UCC and as fully and completely as though
the Agent were the absolute owner thereof for all purposes, and to do at the
Grantor's expense, at any time, or from time to time, all acts and things that
the Agent deems necessary to protect, preserve or realize upon the Collateral
and the Agent's security interest therein, in order to effect the intent of this
Agreement, all as fully and effectively as the Grantor might do, including,
without limitation, (A) the filing and prosecuting of registration and transfer
applications with the appropriate federal or local agencies or authorities with
respect to trademarks, copyrights and patentable inventions and processes, (B)
upon written notice to the Grantor and any other secured lenders, the exercise
of voting rights with respect to voting securities, which rights may be
exercised, if the Agent so elects,

                                     - 6 -

<PAGE>

with a view to causing the liquidation in a commercially reasonable manner of
assets of the issuer of any such securities and (C) the execution, delivery and
recording, in connection with any sale or other disposition of any Collateral,
the endorsements, assignments or other instruments of conveyance or transfer
with respect to such Collateral; and

                                    (ii)     to file such financing statements,
including amendments, assignments, continuation statements and initial financing
statements in lieu of continuation statements, with respect hereto, with or
without the Grantor's signature, or a photocopy of this Agreement in
substitution for a financing statement, in tangible form, electronically or by
any other available means, at such times and with such filing offices as the
Agent may deem appropriate and to execute in the Grantor's name any financing
statements and continuation statements which may for any reason require the
Grantor's signature. Any such financing statements may describe the Collateral
as described herein, may indicate that the Agent has a security interest in all
assets or all personal property of the Grantor, or may otherwise appropriately
describe the Collateral.

                           (b)      To the extent permitted by law, the Grantor
hereby ratifies all that said attorneys shall lawfully do or cause to be done by
virtue hereof. This power of attorney is a power coupled with an interest and
shall be irrevocable.

                           (c)      The powers conferred on the Agent hereunder
are solely to protect the interests of the Agent (and the Secured Parties) in
the Collateral and shall not impose any duty upon the Agent to exercise any such
powers. The Agent shall be accountable only for the amounts that it actually
receives as a result of the exercise of such powers and neither it nor any of
its officers, directors, employees or agents shall be responsible to the Grantor
for any act or failure to act, except for the Agent's own gross negligence or
willful misconduct.

         Section 13.       Remedies. Subject to the Rights of the Senior Secured
Lenders, if an Event of Default shall have occurred and be continuing, the Agent
may, without notice or demand to the Grantor, declare this Agreement to be in
default, and the Agent shall thereafter have in any jurisdiction in which
enforcement hereof is sought, in addition to all other rights and remedies, the
rights and remedies of a secured party under the UCC, including, without
limitation, the right to take possession of the Collateral for the pro rata
benefit of the Secured Parties, and for that purpose the Agent may, so far as
the Grantor can give authority therefor, enter upon any premises on which the
Collateral may be situated and remove the same therefrom. Subject to the Rights
of the Senior Secured Lenders, the Agent may in its discretion require the
Grantor to assemble all or any part of the Collateral at such location or
locations within the state(s) of the Grantor's principal office(s) or at such
other locations as the Agent may designate. Subject to the Rights of the Senior
Secured Lenders, unless the Collateral is perishable or threatens to decline
speedily in value or is of a type customarily sold on a recognized market, the
Agent shall give to the Grantor at least ten (10) business days' prior written
notice of the time and place of any public sale of Collateral or of the time
after which any private sale or any other intended disposition is to be made.
The Grantor waives any and all rights that it may have to judicial hearing in
advance of the enforcement of any of the Agent's and the Secured Parties' rights
hereunder, including, without limitation, its right following an Event of
Default to take immediate possession of the Collateral and exercise its rights
with respect thereto.

                                     - 7 -

<PAGE>

         Section 14.       Waivers; Amendment.

                           (a)      The Grantor waives (to the extent permitted
by applicable law) demand, notice, protest, notice of acceptance of this
Agreement, notice of Loan made, credit extended, Collateral received or
delivered or other action taken in reliance hereon and all other demands and
notices of any description. With respect to both the Obligations and the
Collateral, the Grantor assents to any extension or postponement of the time of
payment or any other indulgence, to any substitution, exchange or release of
Collateral, to the addition or release of any party or Person primarily or
secondarily liable, to the acceptance of partial payment thereon and the
settlement, compromising or adjusting of any thereof, all in such manner and at
such time or times as the Agent may deem advisable. Neither the Secured Parties
nor the Agent shall have any duty as to the collection or protection of the
Collateral or any income thereon, nor as to the preservation of rights against
prior parties, nor as to the preservation of any rights pertaining thereto
beyond the safe custody thereof.

                           (b)      No amendment of any provision of this
Agreement shall in any event be effective unless the same shall be in writing
and signed by both parties hereto. The Agent shall not be deemed to have waived
any of its or the Secured Parties' rights upon or under the Obligations or the
Collateral unless such waiver shall be in writing and signed by the Agent. No
delay or omission on the part of the Agent in exercising any right shall operate
as a waiver of such right or any other right. A waiver on any one occasion shall
not be construed as a bar to or waiver of any right on any future occasion. All
rights and remedies of the Agent and the Secured Parties with respect to the
Obligations or the Collateral, whether evidenced hereby or by any other
instrument or papers, shall be cumulative and may be exercised singularly,
alternatively, successively or concurrently at such time or at such times as the
Agent deems expedient.

         Section 15.       Marshalling. The Agent shall not be required to
marshal any present or future collateral security (including but not limited to
this Agreement and the Collateral) for, or other assurances of payment of, the
Obligations or any of them or to resort to such collateral security or other
assurances of payment in any particular order, and all of the rights of the
Agent and the Secured Parties hereunder in respect of such collateral security
and other assurances of payment shall be cumulative and in addition to all other
rights, however existing or arising. To the extent that it lawfully may, the
Grantor hereby agrees that it will not invoke any law relating to the
marshalling of collateral that might cause delay in or impede the enforcement of
the Agent's or the Secured Parties' rights under this Agreement or under any
other instrument creating or evidencing any of the Obligations or under which
any of the Obligations is outstanding or by which any of the Obligations is
secured or payment thereof is otherwise assured, and, to the extent that it
lawfully may, the Grantor hereby irrevocably waives the benefits of all such
laws.

         Section 16.       Proceeds of Dispositions; Expenses. The Grantor shall
pay to the Agent and the Secured Parties on demand any and all reasonable
expenses, including expenses of its counsel, accountants and of any experts,
agents or other professional advisors, incurred or paid by the Agent or the
Secured Parties in protecting, preserving or enforcing the Agent's or the
Secured Parties' rights under or in respect of any of the Obligations or any of
the Collateral. After deducting all of said expenses, the residue of any
proceeds of collection or sale of the Obligations or Collateral shall, to the
extent actually received in cash, be applied

                                     - 8 -

<PAGE>

to the payment of the Obligations in such order or preference as the Agent may
determine, proper allowance being made for any Obligations not then due. Upon
the final payment and satisfaction in full of all of the Obligations and after
making any payments required by Sections 9608 and 9615 of the UCC, any excess
shall be returned to the Grantor. In the event that the proceeds of dispositions
of all Collateral are not sufficient to pay the Obligations in full, the Grantor
shall remain liable for any deficiency.

         Section 17.       Overdue Amounts. Until paid, all amounts due and
payable by the Grantor hereunder shall be a debt secured by the Collateral and
shall bear, whether before or after judgment, interest at the rate of interest
for overdue principal set forth in the Secured Note.

         Section 18.       Continuing Security Interest; Termination. This
Agreement shall create a continuing security interest in all of the Collateral
and the security interest shall survive until, and this Agreement shall remain
in full force and effect and terminate only upon, the payment and performance in
full of all Obligations (including payment in full in cash in immediately
available funds in the case of Obligations consisting of payment obligations).

         Section 19.       Reinstatement. This Agreement shall remain in full
force and effect and continue to be effective should any petition be filed by or
against Company for liquidation or reorganization, should Company become
insolvent or make an assignment for the benefit of any creditor or creditors, or
should a receiver or trustee be appointed for all or any significant part of
Company's assets, and shall continue to be effective or be reinstated, as the
case may be, if at any time payment and performance of the Obligations, or any
part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or
must otherwise be restored or returned by any obligee of the Obligations,
whether as a "voidable preference," "fraudulent transfer," or otherwise, all as
though such payment or performance had not been made. In the event that any
payment, or any part thereof, is rescinded, reduced, restored or returned, the
Obligations shall be reinstated and deemed reduced only by such amount paid and
not so rescinded, reduced, restored or returned.

         Section 20.       Governing Law. THIS AGREEMENT SHALL FOR ALL PURPOSES
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL SUBSTANTIVE LAWS
OF THE STATE OF CALIFORNIA (EXCEPT TO THE EXTENT THAT THE UNIFORM COMMERCIAL
CODE OF ANOTHER STATE WOULD GOVERN MATTERS PERTAINING TO COLLATERAL PURSUANT TO
THE CHOICE OF LAW RULES SET FORTH IN THE APPLICABLE UNIFORM COMMERCIAL CODE).
The parties hereto (a) agree that any legal suit, action or proceeding arising
out of or relating to this Agreement will be instituted exclusively in the
courts of the State of California sitting in the County of Los Angeles, or any
Federal court in such State, (b) waive any objection which such party may have
now or hereafter based upon forum non conveniens or to the venue of any such
suit, action or proceeding, and (c) irrevocably consent to the jurisdiction of
the State Courts located in said State in any such suit, action or proceeding.
Each such party further agrees to accept and acknowledge service of any and all
process which may be served in any such suit, action or proceeding in said
courts in said State, and agrees that service of process upon such party, mailed
by certified mail to such party's address specified in Section 22, will be
deemed in every respect effective service of process upon such party, in any
suit, action or proceeding.

                                     - 9 -

<PAGE>

         Section 21.       Waiver of Jury Trial. EACH PARTY HERETO WAIVES THEIR
RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY
DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER
OR THE PERFORMANCE OF ANY SUCH RIGHTS OR OBLIGATIONS. Except as prohibited by
law, each party waives any right that it may have to claim or recover in any
litigation referred to in the preceding sentence any special, exemplary,
punitive or consequential damages or any damages other than, or in addition to,
actual damages. The Grantor (a) certifies that neither the Agent y nor any
representative, agent or attorney of the Agent has represented, expressly or
otherwise, that the Agent would not, in the event of litigation, seek to enforce
the foregoing waivers and (b) acknowledges that, in making the Loan evidenced by
the Secured Note, the Secured Parties and the Agent are relying upon, among
other things, the waivers and certifications contained in this Section 21.

         Section 22.       Miscellaneous.

                           (a)      The headings of each section of this
Agreement are for convenience only and shall not define or limit the provisions
thereof.

                           (b)      This Agreement and all rights and
obligations hereunder shall be binding upon the Grantor and its respective
successors and assigns, and shall inure to the benefit of the Agent, the Secured
Parties, and their successors and assigns.

                           (c)      If any term of this Agreement shall be held
to be invalid, illegal or unenforceable, the validity of all other terms hereof
shall in no way be affected thereby, and this Agreement shall be construed and
be enforceable as if such invalid, illegal or unenforceable term had not been
included herein.

                           (d)      This Agreement and the Exhibits and
Schedules, taken together with the Secured Note and the Purchase Agreement and
the other documents contemplated therein and herein represents the final
agreement between the parties hereto with respect to the matters set forth
herein and may supersede any prior oral or written, or any contemporaneous oral
agreements or understandings of the parties hereto.

                           (e)      Notices, demands, consents or other
communications given or made in connection with this Note shall be in writing
and shall be sent via facsimile or mailed by first-class registered or certified
airmail, or nationally recognized overnight express courier postage prepaid, and
deemed given when so mailed to the following addresses:

                                    if to Grantor, to:

                                           Novatel Wireless, Inc.
                                           9360 Towne Centre Drive, Suite 110
                                           San Diego, CA  92121
                                           Attention: Peter Leparulo, Chief
                                                      Executive Officer
                                           Facsimile: (858) 812-3414

                                    with a copy so mailed to:

                                     - 10 -

<PAGE>

                                           Latham & Watkins LLP
                                           633 West Fifth Street, Suite 4000
                                           Los Angeles, CA 90071-2007
                                           Attention: J. Scott Hodgkins, Esq.
                                           Facsimile:  (213) 891-8763

                                    if to Agent to:

                                           PS Capital LLC
                                           800 Fifth Avenue, Suite 19a
                                           New York, NY  10002
                                           Attention: Stan Blau
                                           Facsimile: (212) 988-5333

                                    with a copy so mailed to:

                                           Irell & Manella LLP
                                           1800 Avenue of the Stars, Suite 900
                                           Los Angeles, CA  90067
                                           Attention: Alvin G. Segel, Esq.
                                           Facsimile: (310) 203-7199

                           (f)      This Agreement may be executed in two or
more counterparts and/or by facsimile, each of which shall constitute an
original but all of which when taken together shall constitute but one contract.
The Grantor acknowledges receipt of a copy of this Agreement.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                     - 11 -

<PAGE>

                     [Signature Page to Security Agreement]

         IN WITNESS WHEREOF, intending to be legally bound, the undersigned
Grantor has caused this Agreement to be duly executed as of the date first above
written.

                                          GRANTOR

                                          Novatel Wireless, Inc.,
                                          a Delaware corporation

                                          By:  /s/ Peter V. Leparulo
                                               Name:  Peter V. Leparulo
                                               Title: Chief Executive Officer

Accepted:

AGENT

PS Capital LLC

/s/Stanley M. Blau
-------------------------------------
By:  Stanley M. Blau
Its: Managing Director

<PAGE>

                                   SCHEDULE 1

     GRANTOR'S PRINCIPAL PLACE OF BUSINESS AND JURISDICTION OF ORGANIZATION

Jurisdiction of Organization:      Delaware
Principal Place of Business:       California

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