Document:

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                                                                   EXHIBIT 10.10

                                SUPPLY AGREEMENT

        This Supply Agreement ("Agreement") is effective as of July 15, 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 aggregate of 100,000 Modems pursuant to the schedule
of payment and delivery in Annex A, for an aggregate purchase price equal to
$22,770,000, 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 price per
unit equal to $218.50 for the Minstrel III and $230.00 for the Minstrel V.
Pricing is based on 100,000 units to be purchased during the term of this
Agreement. The price per unit as set forth above includes the 0.6-Watt CDPD
radio modem, cradle, battery pack, power supply, CD-ROM, user documentation and
Buyer specified retail packaging. During the term of this Agreement, unless
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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
[***]% Minstrel V and [***]% Minstrel III (the "Mix"). Buyer may change the Mix
(i) by [***]% upon 30-days' advance written notice to Seller; (ii) by [***]%
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 [***]% 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 [***]% 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
aggregate amount of $3,780,000 (the "Advance") to Seller in cash, against future
payments to be made by Seller on deliveries made after October 1, 1999 under
this Agreement, for the specific purpose of facilitating the procurement of
components as follows:

<TABLE>
<CAPTION>
          DATE OF BUYER'S ADVANCE            AMOUNT OF BUYER'S ADVANCE
<S>                                         <C>
              August 3, 1999                       $2,520,000
                                            ([***] units at $[***] per unit)

             October 15, 1999                      $1,260,000
                                            ([***] units at $[***] per unit)
</TABLE>

All deliveries of Modems made after October 1, 1999 pursuant to this Agreement
shall be invoiced at the actual prices provided in Section 1.2 above minus
$[***] per Modem until the Advance is fully recovered by Buyer.

        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 1% for any Product Specifications, then every modem
shall be tested prior to acceptance by Buyer. Seller shall provide Buyer notice
of

[***] Confidential treatment has been requested for the bracketed portions. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

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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 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 [***] Minstrel V
units in accordance with this Agreement to the Novatel Distribution Facility.

[***] Confidential treatment has been requested for the bracketed portions. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

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        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 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 one (1) year, thereafter, Buyer shall have the first
option of available allocation to purchase the Modems. The first 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 at no greater price than Seller would
offer to any other similar buyer for the same Modem on similar volume and other
terms.

        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 4% during Buyer field trial then Seller shall
immediately stop delivery of Modems to the Novatel

[***] Confidential treatment has been requested for the bracketed portions. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

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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.

                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. In addition to such other amounts as may be due
hereunder, Buyer shall pay Seller a fee equal to $8.00 for each Modem unit
activated. 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.

                2.2.1 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.

                2.2.2 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

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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 parents or licensing
agreements nor grant Buyer any rights under such patents or licensing
agreements.

        2.3 Buyer's Trademarks.

                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

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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.

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 13.1 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.

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        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;

                (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 LIBOR plus 2%;

                (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.

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        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 cash an amount equal to twenty percent (20%) of the aggregate
amount which otherwise would have been owed to Seller under this Agreement had
the Commitment Termination Event not occurred and Seller fully performed its
obligations under this Agreement less any pre-payment made for undelivered
Modems in accordance with Section 1.2. "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 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 8.1 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;

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                        (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 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 $5 per Modem per year.
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.

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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 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

                                       11
<PAGE>   12

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.

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.

                                       12
<PAGE>   13

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

                (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-

                                       13
<PAGE>   14

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 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

                                       14
<PAGE>   15

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.

        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/ Bruce A. Gray
                                               ---------------------------------
                                            Name: Bruce A. Gray
                                            Title: Vice President, Marketing
                                                   and Sales

                                            BUYER: OPENSKY CORPORATION

                                            By: /s/ Michael D. Dolbec
                                               ---------------------------------
                                               Name: MICHAEL D. DOLBEC
                                               Title: SR VP BUSINESS DEVELOPMENT

                                       16

<PAGE>   17
                                    ANNEX A

                        SCHEDULE OF PAYMENT AND DELIVERY

<TABLE>
<S>                           <C>            <C>            <C>            <C>            <C>
-----------------------------------------------------------------------------------------------------
Delivery Schedule             Nov. 1-15,     Nov. 16-30,    Dec. 1-15,     Dec. 16-31,    Jan. 1-15,
                                 1999           1999           1999           1999           2000
-----------------------------------------------------------------------------------------------------
Minstrel III                     1000           1000           1500           1500           2000
-----------------------------------------------------------------------------------------------------
Minstrel V                       4000           4000           6000           6000           8000
-----------------------------------------------------------------------------------------------------
Total Units                      5000           5000           7500           7500          10000
-----------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------
Payment Schedule**              Oct. 1,        Oct. 15,       Nov. 1,        Nov. 15,       Dec. 1,
                                 1999            1999          1999            1999          1999
-----------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------
Delivery Schedule             Jan. 16-31,    Feb. 1-15,     Feb. 16-29,    Mar. 1-15,     Mar. 16-31,
                                 1999           2000           2000           2000           2000
-----------------------------------------------------------------------------------------------------
Minstrel III                     2000           2500           2500           3000           3000
-----------------------------------------------------------------------------------------------------
Minstrel V                       8000          10000          10000          12000          12000
-----------------------------------------------------------------------------------------------------
Total Units                     10000          12500          12500          15000          15000
-----------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------
Payment Schedule**             Dec. 15,        Jan. 1,       Jan. 15,       Feb. 15,        Mar. 1,
                                 1999          2000            2000           2000           2000
-----------------------------------------------------------------------------------------------------
</TABLE>

** 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.

<PAGE>   18

                                     ANNEX B

                                ACCESSORY PRICING
<TABLE>
<CAPTION>
                                   OPENSKY COST**           MSRP
                                   --------------          ------
        <S>                        <C>                     <C>
        BATTERY PACK                  $[***]               $[***]

        AC ADAPTOR                    $[***]               $[***]

        CAR ADAPTOR                   $[***]               $[***]

        STYLUS 3 PACK                 $[***]               $[***]
</TABLE>

** The prices offered to OpenSky Corporation with respect to accessories, are
based on volume commitments of [***] units per accessory. Pricing will be
negotiated if higher volumes are committed.

[***] Confidential treatment has been requested for the bracketed portions. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.
<PAGE>   19

                                     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 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

<PAGE>   21

        accordance with Section 1.8 below. Subject to Section 8 below, all
        Modems delivered to Buyer shall be non-returnable."

        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/ Bruce A. Gray
                                            ------------------------------------
                                            By: Bruce A. Gray
                                            Its: Vice President, Sales & Mkt.

                                            OPENSKY CORPORATION

                                            /s/ Patrick McVeigh
                                            ------------------------------------
                                            By: Patrick McVeigh
                                            Its: CEO<PAGE>   1
                                                                   EXHIBIT 10.13

                                SUPPLY AGREEMENT

This Supply Agreement ("Agreement") is entered by and between TELLUS TECHNOLOGY
INCORPORATED ("Tellus"), having its principal place of business at 40990
Encyclopedia Circle, Fremont, California 94538-2470, United States of America,
and OMNISKY, INC. ("OmniSky"), having its principal offices at 1001 Elwell
Court, Palo Alto, CA 94303, United States of America. Tellus and OmniSky
collectively may be referred to herein as the "Parties".

This Agreement consists of the Terms & Conditions below and any Appendices as
may be attached.

RECITALS

WHEREAS Tellus is developing a CDPD [***] for use with the [***] designated the
Tellus V230C and hereinafter referred to as the "Product";

WHEREAS OmniSky wishes to have manufactured and supplied the Product developed
by Tellus with the assistance of OmniSky; and

WHEREAS OmniSky wishes to have manufactured and supply such Product to OmniSky.

AGREEMENT

In consideration of the above recitals, Tellus and OmniSky hereby agree that
upon signing of this Agreement, Tellus will supply the Product to OmniSky
according to the following terms and conditions:

ARTICLE 1. PRICING
--------------------------------------------------------------------------------

(a)    The Product shall be priced at $[***] per unit and shall be delivered
       prior to [***].

(b)    Prices are quoted FCA/FOB Tellus Dock, Fremont, CA. Price includes the
       Module, [***] of [***], rechargeable battery and a power cord. Additional
       memory is available and shall be priced at the time an order is placed.

ARTICLE 2. PRODUCT SUPPLY, PRODUCT ACCEPTANCE AND TERMINATION
--------------------------------------------------------------------------------

(a)    Tellus shall manufacture, or cause to have manufactured, the Product to
       the preliminary specifications included in Appendix 1 hereto which may be
       amended from time to time. The specifications will be finalized after
       delivery to Tellus of a Product acceptance letter by OmniSky.

(b)    In the event that OmniSky does not issue a Product acceptance letter
       after testing or arranging to have tested an engineering prototype of the
       Product against the Engineering Prototype Product Acceptance Test
       provided for in Appendix 2 hereto on or prior to July

[***] Confidential treatment has been requested for the bracketed portions. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

                                       1

<PAGE>   2
31, 2000 or such other date as the parties shall mutually agree, then this
Agreement shall immediately terminate.

ARTICLE 3  PURCHASE ORDERS, SHIPMENT, DELIVERY AND ACCEPTANCE
-------------------------------------------------------------------------------

     (a)  OmniSky shall place a purchase order for 25,000 units of Product
          within 3 days of signing this Agreement. Orders for the first 10,000
          units of Product are non-cancelable except as provided for in Article
          2(b). The remaining 15,000 units of Product may not be canceled within
          sixty (60) days prior to Tellus' committed delivery date. The
          anticipated delivery dates for the first 10,000 units of Product are
          prior to [***] and for the remaining 15,000 units of product are prior
          to [***].  Definitive delivery schedules will be determined after
          delivery of the Product acceptance letter by OmniSky.

     (b)  The purchase order shall contain the following information.

          i.   OmniSky's purchase order number;
          ii.  The quantity of Product ordered;
          iii. The unit and price applicable thereto;
          iv.  The destination address(es) for shipping the Product;
          v.   Delivery schedule and shipping instructions.

     (c)  Deliveries are not permitted to be rescheduled less than sixty (60)
          days prior to a Tellus' committed shipment date and are not permitted
          to be rescheduled in quantities greater than 20% of any scheduled
          delivery. Orders may not be rescheduled for delivery more than sixty
          (60) days beyond the original delivery date, and may not be
          rescheduled more than once.

     (d)  In the event OmniSky cancels the purchase of any units of product more
          than 60 days prior to the committed delivery date, OmniSky shall be
          liable for penalties as follows:  between 60 and 120 days, 50% of the
          purchase order dollar value of the units of product cancelled; and 120
          days or greater, 30% of the purchase order dollar value for the units
          of product cancelled.

     (e)  All Product purchased under this Agreement shall be shipped from
          Tellus' Dock in Fremont, CA and shall be shipped to the destination(s)
          specified by OmniSky on OmniSky's account, so as to be received,
          allowing for normal transit times, in accordance with the delivery
          schedule specified on the corresponding Purchase Order.

     (f)  OmniSky shall have five (5) business days after delivery to accept or
          reject any delivery. A shipment will be deemed "Accepted" when less
          than 2% of the units of Product fail the Delivery Acceptance Test that
          shall be mutually agreed to by the Parties in conjunction with the
          finalization of the Product Specifications. A shipment shall be deemed
          "Rejected" when 2% or more of the units of Product fail the Delivery
          Acceptance Test. In that event, Tellus shall take the necessary
          actions, at Tellus's sole expense and discretion, to remedy the
          identified problems and re-submit the shipment for acceptance testing.

[***] Confidential treatment has been requested for the bracketed portions. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

                                       2

<PAGE>   3
ARTICLE 4.     PAYMENTS
--------------------------------------------------------------------------------

     (a)  Payment for all Product purchased shall be as follows:

          i.   Payment for the first 10,000 units must be made by OmniSky
               immediately upon OmniSky's delivery of a Product acceptance
               letter to Tellus.

          ii.  Payment for the remaining 15,000 units shall be Net 30 days
               except otherwise described in this Agreement.

     (b)  Invoices issued to OmniSky by Tellus shall be in writing and shall
          contain the following information: OmniSky's purchase order number; a
          description of the Product shipped, including serial numbers; the
          quantity of Product shipped; and the unit and extended price
          applicable thereto.

     (c)  Any payments due hereunder are to be made in U.S. dollars. For any
          payment made more than ten (10) days after the due date, a late charge
          shall be imposed at an interest rate equal to the lesser of one and
          one half percent (1.5%) per month. The late charge will accrue from
          the due date of such payment until the date of actual payment.

     (d)  All payments shall be net of all taxes, governmental withholding or
          other offsets.

     (e)  Payments shall be made by write transfer to such bank in the United
          States as Tellus may designate in writing.

ARTICLE 5   WARRANTY AND PRODUCT LIABILITY
--------------------------------------------------------------------------------

     (a)  Tellus warrants that all Product will conform to the Specifications
          and be free from defects in material or workmanship for fourteen (14)
          months from the date of shipment to OmniSky. Claims for Product not
          complying with this warranty shall be submitted by OmniSky no later
          than fifteen (15) months from the date of delivery of the
          non-complying Product. Tellus' obligations, and OmniSky's sole remedy,
          under this warranty shall be for Tellus, at its option and expense, to
          promptly repair or replace non-complying Product, or pay OmniSky its
          costs of remedying such non-compliance. The shipment of non-complying
          Product by OmniSky to Tellus shall be at the expense of OmniSky, and
          the return shipment of repaired or replacement Product by Tellus to
          OmniSky under this Article 5(a) shall be at the expense of Tellus.
          Nevertheless, if the damage or malfunction is caused by the improper
          handling or operation of the end users or OmniSky, or is caused by any
          rework or material changes that have been performed by any other
          parties rather than Tellus or Tellus designees, then Tellus shall not
          be liable.

     (b)  No Defect Found (NDF) is herein defined as for those Product in any
          event that have been provided by Tellus to OmniSky and then been
          claimed by OmniSky or any end users as non-complying Product and
          returned to Tellus thereafter for repair or replacement but of

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     which Tellus finds no defect. All the repair and replacement for NDF
     Product, including without limitation all relevant costs of transportation
     and documentation and all related engineering work and materials, shall be
     the responsibility of Tellus for the first 0.25% of aggregate shipments and
     shall be the responsibility of OmniSky for all NDF Product above 0.25% of
     aggregate shipments. In the event that OmniSky and Tellus, after testing
     all such NDF Product, disagree on such designation, then the Parties shall
     mutually agree on an independent third party to test all such disputed
     units and such independent third party's test results shall be accepted
     without challenge by the Parties.

(c)  During the term of this Agreement, Tellus shall maintain in force product
     liability insurance on the Product.

(d)  EXCEPT AS EXPRESSLY SET FORTH IN THIS ARTICLE 5, TELLUS MAKES NO
     WARRANTIES, EXPRESS OR IMPLIED, AND SPECIFICALLY DISCLAIMS ANY WARRANTIES
     OF MERCHANTABILITY, NONINFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE.

ARTICLE 6 ENGINEERING CHANGES; OUT OF WARRANT REPAIR
--------------------------------------------------------------------------------
(a)  Tellus agrees to repair any out-of-warranty Product that OmniSky may elect
     to have repaired by Tellus and which Tellus deems repairable for a period
     of at least one (1) year following the termination of this Agreement. The
     cost to OmniSky for such repair by Tellus shall be negotiated at the time
     of order placement but will not exceed the original price for the Product
     plus actual material cost required for the repair.

(b)  Any upgrades or engineering changes after the delivery of Product to
     OmniSky are the responsibility of OmniSky. Should these upgrades,
     engineering changes or rework be performed by Tellus upon the request of
     OmniSky, OmniSky shall bear the cost of transportation, documentation and
     all related engineering work and material necessary in accordance with
     Tellus' regular time and materials rates.

ARTICLE 7 INDEMNITIES
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(a)  INDEMNIFICATION BY TELLUS. Tellus shall defend, indemnify and hold harmless
     OmniSky and its officers, directors, employees, shareholders, customers,
     agents, successors and assigns from and against any and all loss, damage,
     settlement, costs or expense (including legal expenses), as incurred,
     resulting from, or arising out of (i) any breach of this Agreement by
     Tellus; and (ii) any claim, suit or proceeding brought against OmniSky
     which alleges that the Tellus Intellectual Property Rights and/or Tellus
     Know-How infringe upon, misappropriates or violates any patents,
     copyrights, trademarks or trade secret rights or other proprietary rights
     of persons, firms or entities who are not parties to this Agreement where
     such unlawful activity is completely independent of the Product. As a
     condition to such defense, OmniSky will provide Tellus with prompt written
     notice of the claim and permit Tellus to control the defense, settlement,
     adjustment or compromise of any such claim. OmniSky may employ counsel at
     its own expense to assist it with respect

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     to any such claim; provided, however, that if such counsel is necessary
     because of a conflict of interest of either Tellus or its counsel or
     because Tellus does not assume control, Tellus will bear the expense of
     such counsel. OmniSky shall have no authority to settle any claim on behalf
     of Tellus.

(b)  Tellus shall have no obligation under subsection (a)(ii) above to the
     extent any claim of infringement or misappropriation results from: (i) use
     of the Product in combination with any other Product, end item, or
     subassembly if the infringement would not have occurred but for such
     combination; (ii) use or incorporation in the Product of any design,
     technique or specification furnished by OmniSky, if the infringement would
     not have occurred but for such incorporation or use; or (iii) any claim
     based on OmniSky's use of the Product as shipped after Tellus has informed
     the OmniSky of modifications or changes in the Product required to avoid
     such claims and offered to implement those modifications or changes, if
     such claim would have been avoided by implementation of Tellus'
     suggestions. Tellus shall not be liable hereunder for enhanced or punitive
     damages which could have been avoided or reduced by actions within the
     control of OmniSky.

(c)  THE FOREGOING PROVISIONS OF THIS ARTICLE 7(a) and 7(b) STATE THE ENTIRE
     LIABILITY AND OBLIGATIONS OF TELLUS AND THE EXCLUSIVE REMEDY OF OMNISKY AND
     ITS CUSTOMERS, WITH RESPECT TO ANY VIOLATION OR INFRINGEMENT OF PROPRIETARY
     RIGHTS, INCLUDING BUT NOT LIMITED TO ANY PATENT, COPYRIGHT, TRADEMARK, BY
     THE PRODUCT OR ANY PART THEREOF. TELLUS'S OBLIGATIONS UNDER THIS ARTICLE 7
     ARE SUBJECT TO THE LIMITATIONS SET FORTH IN ARTICLE 8.

(d)  INDEMNIFICATION BY OMNISKY. Omnisky shall defend, indemnify and hold
     harmless Tellus and its officers, directors, employees, shareholders,
     customers, agents, successors and assigns from and against any and all
     loss, damage, settlement, costs or expense (including legal expenses), as
     incurred, resulting from, or arising out of (i) any breach of this
     Agreement by OmniSky; and (ii) any claim, suit or proceeding brought
     against Tellus which alleges that the OmniSky Intellectual Property Rights
     and/or OmniSky Know-How infringe upon, misappropriates or violates any
     patents, copyrights, trademarks or trade secret rights or other proprietary
     rights of persons, firms or entities who are not parties to this Agreement
     where such unlawful activity is completely independent of the Product. As a
     condition to such defense and indemnification, Tellus will provide OmniSky
     with prompt written notice of the claim and permit OmniSky to control the
     defense, settlement, adjustment or compromise of any such claim. Tellus may
     employ counsel at its own expense to assist it with respect to any such
     claim; provided, however, that if such counsel is necessary because of a
     conflict of interest of either OmniSky or its counsel or because OmniSky
     does not assume control, OmniSky will bear the expense of such counsel.
     Tellus shall have no authority to settle any claim on behalf of OmniSky.

(e)  THE FOREGOING PROVISIONS OF THIS ARTICLE 7(d) and 7(e) STATE THE ENTIRE
     LIABILITY AND OBLIGATIONS OF OMNISKY AND THE EXCLUSIVE REMEDY OF TELLUS AND
     ITS CUSTOMERS, WITH RESPECT TO ANY VIOLATION OR INFRINGEMENT OF PROPRIETARY
     RIGHTS, INCLUDING BUT NOT LIMITED TO ANY PATENT, COPYRIGHT, TRADEMARK, BY
     THE PRODUCT

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     OR ANY PART THEREOF. OMNISKY'S OBLIGATIONS UNDER THIS ARTICLE 7 ARE
     SUBJECT TO THE LIMITATIONS SET FORTH IN ARTICLE 8.

ARTICLE 8 LIMITATION OF LIABILITY AND EXCLUSION OF CERTAIN DAMAGES

(a)  IN NO EVENT SHALL TELLUS BE LIABLE FOR ANY INDIRECT, SPECIAL OR
     CONSEQUENTIAL DAMAGES OF ANY NATURE OR KIND WHATSOEVER, INCLUDING BUT NOT
     LIMITED TO, LOSS OF PROFITS, LOSS OF BUSINESS, OR COST OF PROCUREMENT OF
     SUBSTITUTE GOODS OR SERVICES, ARISING OUT OF OR RELATING TO THIS AGREEMENT
     OR THE PROVISION OF PRODUCT HEREUNDER, OR OMNISKY'S USE OR DISTRIBUTION
     THEREOF.

(b)  TELLUS' LIABILITY FOR DAMAGES HEREUNDER, INCLUDING ANY PAYMENTS MADE OR
     EXPENSES INCURRED, IF ANY SHALL NOT EXCEED IN THE AGGREGATE THE AMOUNTS
     PAID BY OMNISKY TO TELLUS HEREUNDER.

(c)  IN NO EVENT SHALL OMNISKY BE LIABLE FOR ANY INDIRECT, SPECIAL OR
     CONSEQUENTIAL DAMAGES OF ANY NATURE OR KIND WHATSOEVER, INCLUDING BUT NOT
     LIMITED TO, LOSS OF PROFITS, OR LOSS OF BUSINESS ARISING OUT OF OR RELATING
     TO THIS AGREEMENT.

ARTICLE 9 CONFIDENTIAL RELATIONSHIP

(a)  Tellus and OmniSky (on behalf of themselves and their respective officers,
     employees and agents) shall use all reasonable efforts to keep confidential
     all Confidential Information acquired from the other Party, whether prior
     to or during the term of this Agreement, except as disclosure or use of
     such information is expressly permitted by this Agreement or by a writing
     signed by the Parties hereto. The term "Confidential Information" shall
     include all licensed technology, the terms and conditions of this
     Agreement, and any other information, technical data, know-how or show-how
     relating to the Product and maintained in confidence by a Party and
     disclosed to the other Party hereunder. All such Confidential Information
     shall be designated in writing by the disclosing Party as "confidential" or
     "proprietary" or, if disclosed orally, shall be designated as Confidential
     Information in writing forwarded to the receiving Party by the disclosing
     Party within thirty (30) days of the date of oral disclosure.
     Notwithstanding the foregoing, Confidential Information does not include
     any such information, technical data or know-how which:

     (i)   is or becomes part of the public domain without violation of this
           Agreement:

     (ii)  is known and on record at a receiving party prior to disclosure by
           the disclosing party;

     (iii) is lawfully received from a third party without restriction; or

     (iv)  is developed by a receiving party completely independently and
           without use of the disclosing party's Confidential Information.

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     Each Party agrees to maintain all written materials and comments relating
     to or containing Confidential Information obtained from the other Party
     (including all schematics sketches, drawings, reports and notes, and all
     copies and reproductions thereof) in confidence and to designate in writing
     the secret and confidential nature thereof and to use all necessary efforts
     to prevent the unauthorized use or reproduction thereof, including
     restriction of the disclosure to its employees of only such Confidential
     Information as is necessary to such employee's responsibilities in
     performing the acts required or contemplated by this Agreement.
     Notwithstanding the foregoing, with the prior written consent of the other
     Party either Party may disclose the existence of a vendor-customer
     relationship between the Parties, provided that such disclosing Party does
     not reveal the terms of this Agreement.

(b)  Each Party acknowledges that in the event it breaches any of the provisions
     of this Article 9, the other Party may be irreparably harmed and may not
     have an adequate remedy at law. In the event of any breach or threatened
     breach of this Article 9, each Party shall be entitled to injunctive relief
     to enforce its rights hereunder, without being required to post any bond or
     other property.

(c)  The obligations of the Parties under this Article 9 shall survive the term
     and termination of this Agreement for a period of five (5) years and shall
     remain in full force and effect regardless of the cause of any termination.

ARTICLE 10.    ADDITIONAL CLAUSES

(a)  Interpretation. This Agreement shall be governed and construed in
     accordance with the laws of the State of California in the United States of
     America, including the California Commercial Code.

(b)  Export Law. Both parties will comply with all import and export laws of the
     United States of America.

(c)  Order of Precedence. Any export agreement entered into with the U.S.
     Government with respect to the subject matter hereof will have precedence
     over the terms and condition of this Agreement.

(d)  Entire Agreement. Except as provided in Article 10(c), this Agreement
     constitutes the entire Agreement between the Parties and supersedes any
     prior written or oral agreement or understanding with respect to the
     subject matter hereof.

(e)  Assignment. Neither party shall assign this Agreement, or any rights
     hereunder, to any third party, including an affiliated company or any
     successor who acquires substantially all of its assets and business,
     without the prior written consent of the other party, which in the case of
     an affiliated company in which OmniSky has at least a 20% equity interest
     or a successor shall only be withheld in the situation where the other
     party is reasonably construed to have a conflicting business relationship
     with such third party.

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(f)  Waiver. The waiver of a breach or default hereunder shall not constitute
     the waiver of any subsequent breach or default.

(g)  Invalidity of Provisions. Should any provision of this agreement be
     invalid, such invalidity will not affect the validity of the remaining
     provisions.

(h)  Legal Fees. The prevailing Party in any legal action brought by one Party
     against the other shall be entitled, in addition to any other rights and
     remedies it may have, to reimbursement for its reasonable expenses incurred
     thereby, including actual court costs and reasonable attorneys' fees.

(i)  Notices. All notices or other communications required or permitted
     hereunder shall be in English and shall be deemed communicated on the date
     received at the address set forth below, or at such other address as to
     which such party shall give written notice hereunder. In the absence of
     specific notification, acceptance of any notice shall be deemed to have
     occurred ten (10) days after being communicated.

     TELLUS TECHNOLOGY INC.           OMNISKY SYSTEMS INC.
     Attention: Sales Manager         Attention: Jorge Pont, Product Manager
     40990 Encyclopedia Circle        101 Elwell Court
     Fremont, CA 94538-2470, USA      Palo Alto, CA 94306
     Phone # +1 (510) 498 8500        Phone # +1-(650) 962-4308
     Fax #   +1 (510) 498 8540        Fax #   +1-(650) 962-4500

(j)  Agency. Nothing contained in this Agreement is intended or shall be
     construed so as to constitute the Parties as partners, joint ventures or
     agents of each other.

(k)  Arbitration. All disputes arising out of or in connection with this
     Agreement shall be finally settled by binding arbitration conducted under
     the then existing Commercial Arbitration Rules of the American Arbitration
     Association by a single arbitrator appointed in accordance with such Rules.
     The place of the arbitration shall be San Francisco, California, USA and
     the arbitration proceedings shall be conducted in the English language.
     Judgment upon awards or orders for enforcement may be entered by all courts
     to which an award is presented and execution may be had in accordance with
     the law of execution generally applied in the countries where enforcement
     is sought.

(l)  Survival. The provisions of Articles 5, 6, 7, 8, 9 and the relevant
     provisions of this Article 10, together with any OmniSky payment
     obligations, shall survive the termination of this Agreement.

(m)  Force Majeure. Nonperformance (except for the need to make payments) by
     either Party shall be excused to the extent that performance is rendered
     impossible by strike, fire, flood, earthquake, governmental acts or orders
     or restrictions, failure of suppliers, or any other reason where failure to
     perform is beyond the control of and not caused by the negligence of the
     non-performing Party.

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
and through their duly authorized representatives on the dates specified below.

TELLUS TECHNOLOGY INC.                       OMNISKY, INC.

/s/ GREGORY S. ELLIS                         /s/ BARAK BERKOWITZ
----------------------------                 ----------------------------
Signature                                    Signature

Gregory S. Ellis                             Barak Berkowitz
----------------------------                 ----------------------------
Name (Print)                                 Name (Print)

VP, Bus Dev                                  President
----------------------------                 ----------------------------
Title (Print)                                Title (Print)

11 May 00
----------------------------                 ----------------------------
Date                                         Date

                                       10

<PAGE>   11
                                   APPENDIX 1

                           PRELIMINARY SPECIFICATIONS

1.    SYSTEM

CDPD Device containing RF and Firmware compliant with CDPD 1.1 specifications
and a physical interface compatible with [***] specification.

2.    HARDWARE

ENCLOSURE

Plastic Material TBD

Color/Texture TBD

Logos: Embossed OS logo on front and back of unit

Maximum Dimensions in mm are:

54.5mm wide
73.20 tall (from the connector to the antenna boss)
27.5mm thick

POWER SOURCE

The V230 will run primarily from its own internal rechargeable LI battery, for 1
day of use under normal conditions. Normal conditions are defined as power on
for 12 hours with 90% sleep mode, 7% receiving, and 3% transmitting. A secondary
power source will be a travel charger that plugs into the serial port at the
bottom of the [***]. A third power source is expected to be the optional
recharging/docking cradle that will be available from [***].

MEMORY

The device will contain [***] as its standard configuration (Must accommodate 2,
4 or 8 MB package). A [***] configuration will be available at the time of
ordering. Flash contains software drivers, configuration tool, and customer
supplied software if any.

BUTTONS & CONTROLS

There will be a on off switch in the form of a button on the top of the unit
that powers the unit up or down when depressed for several seconds. Actual
duration to be depressed TBD. The power button will have a second function, to
be controlled by software, that when depressed will launch a particular
application.

[***] Confidential treatment has been requested for the bracketed portions. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.
<PAGE>   12

LEDS

There will be 4 LEDs on the V230 indicating the follwing:

o    Network Connectivity

o    Transmitting

o    Battery

o    Message Waiting

BATTERY

The battery will be a single cell prismatic LI battery with a minimum capacity
of 900 mAh. The battery will have a built in safety will attach to the PCB with
a connector. Units will be built with a 1000-1200 mAh battery that have
dimensions in mm of 48 x 33 x 8.5.

It is anticipated that within 6 months, a transition can be made to a 800 mAh
battery that will have a thickness of 6mm.

I/O CONNECTORS

The V230C interface to the [***] is a standard PCMCIA connector without the
actual PCMCIA interface.

ANTENNA

The V230 has a fixed 1/4 wave antenna (non detachable) that extends beyond the
module footprint both to allow separation from the [***] and provide for good
reception. This can be stowed while attached without substantially increasing
the size of the device. The antenna must have 2 axis of motion so that it can
point up while held in the hand or while on a table top.

The gain of the antenna is at least 0 dBi and no more than 4.7 dBi. The concept
of an integrated patch antenna on a chip is attractive but needs
experimentation before it can be released for commercial sale.

The antenna should also be rugged and durable, difficult to break and robust in
a medium shock environment and tolerant of being bent.

POWER CONSUMPTION

5V DC

o    Sleep Mode - Less than 20mA

o    Receive-only Mode - 230mA

o    Transmit Mode - per specification

AGENCY MARKINGS

The V230 will meets all applicable FCC and Industry Canada emissions and health
regulations and will be so marked on the underside label.

[***] Confidential treatment has been requested for the bracketed portions. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.
<PAGE>   13

3.   TELLUS SOFTWARE

All software to operate and drive the V230 is contained on the V230 module
itself. When the module is plugged in to the [***], the [***] detects the
module, loads the application on the [***] and then cleanly and safely removes
the application from the [***] as the module is deinstalled. The following
software must include the following:

DRIVER

Palm OS Compatible

CONFIGURATION TOOL

The elements of the configuration will be determined. At a minimum, there
should be 10 screens showing the following:

-    Window 1 - Basic Indicators

     -    RSSI

     -    Fuel Gage

     -    Service Provider

     -    RF Channel Number

     -    User defined parameters

-    Window 2 - Setup

     -    Network Selection

     -    Device Configuration

     -    Modem Configuration

-    Window 3 - Preferences

     -    Service Provider

     -    Password

-    Window 4 - Configuration

     -    NEI

     -    Primary DNS

     -    Secondary DNS

     -    Sleep Control

     -    Power Management Controls

     -    Network Provider

     -    SPNI

     -    Channel Hotlist

[***] Confidential treatment has been requested for the bracketed portions. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.
<PAGE>   14
                                   APPENDIX 2

                 ENGINEERING PROTOTYPE PRODUCT ACCEPTANCE TEST

The acceptance of the Engineering Prototype Product will be based on a LIMITED
Part 409 test.

Part 409 is part of the CDPD 1.1 Specification as published by the CDPD Forum
dated January 19, 1995 that "details definitions, methods of measurement and
minimum performance requirements" of CDPD mobile end stations ("M-ES") such as
the Tellus V230C.

Passing this test assures that the Product will obtain service in any CDPD
system that meets the compatibility requirements of the Standard.
Compatibility is understood to mean "any mobile station is able to establish
communications in any CDPD system in which it is authorized. Conversely, all
CDPD mobile data base stations are able to establish communications with any
M-ES."

The parameters to be tested include:

     Adjacent and Alternate Channel Selectivity
     RSSI
     RX BLER
     RX Sensitivity
     TX Power Level

Demonstrated compliance on the above parameters with Part 409 of the CDPD 1.1
Specification shall be considered as "acceptable".

In addition, Tellus will demonstrate the Engineering Prototype Product both
seated in the [***] and attached by an extended cable to the [***]. This
demonstration will consist of FTP or E-mail transmission/reception of files in
two sizes: 10k and 100k.

[***] Confidential treatment has been requested for the bracketed portions. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

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