Document:

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                                                                     EXHIBIT 4.6

                         FORM OF NOVATEL WIRELESS, INC.

                              AMENDED AND RESTATED
                           CERTIFICATE OF DESIGNATION
                      SERIES A CONVERTIBLE PREFERRED STOCK
                         PURSUANT TO SECTION 151 OF THE
                GENERAL CORPORATION LAW OF THE STATE OF DELAWARE

         NOVATEL WIRELESS, INC., a corporation organized and existing under the
General Corporation Law of the State of Delaware (hereinafter called the
"Corporation"), DOES HEREBY CERTIFY THAT, pursuant to Section 151 of the General
Corporation Law of the State of Delaware (the "DGCL"), the following resolution
was duly adopted and approved by a committee of the Board of Directors of the
Corporation, duly designated pursuant to Section 141(c)(2) of the DGCL, at a
meeting duly called and held on March [____], 2003:

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                             NOVATEL WIRELESS, INC.

                      SERIES A CONVERTIBLE PREFERRED STOCK

         RESOLVED, that pursuant to the authority vested in the Board of
Directors of the Corporation by Article IV of the Corporation's Amended and
Restated Certificate of Incorporation, a series of Preferred Stock of the
Corporation be, and it hereby is, created out of the authorized but unissued
shares of the capital stock of the Corporation, such series to be designated
Series A Preferred Stock (the "Series A Preferred Stock"), to consist of 3,700
shares, par value $.001 per share, of which the preferences and relative and
other rights, and the qualifications, limitations or restrictions thereof, shall
be (in addition to those set forth in the Corporation's Amended and Restated
Certificate of Incorporation) as follows:

         SECTION 1. DIVIDENDS. The holders of Series A Preferred Stock shall be
entitled to receive, from funds legally available therefor, a cumulative
dividend at the rate per annum of 6.5% of the purchase price paid per share of
Series A Preferred Stock held by such holder, payable, subject to any applicable
contractual restrictions, upon any liquidation, dissolution or winding up of the
affairs of the Corporation, as described in Section 2, upon any redemption
described in Section 5, or otherwise quarterly in arrears when and as declared
by the Board of Directors each January 1, April 1, July 1 and October 1 of the
applicable year. Notwithstanding the foregoing, no dividends shall be declared,
or paid to the holders of the Series A Preferred Stock (other than in-kind in
connection with the conversion of the Series A Preferred Stock pursuant to
Section 3 hereof) or any series of preferred stock having dividend rights pari
passu with those of the Series A Preferred Stock, unless the holders of Series B
Preferred Stock and any other series of preferred stock created after the date
hereof having preferential dividend and liquidation rights vis-a-vis the Series
A Preferred Stock (such Series B Preferred Stock and any other series of
Preferred Stock with such preferential rights, the "Senior Preferred Stock")
shall have been paid in full all of the dividends to which they are entitled. No
dividends shall be declared, or paid to the holders of common stock, par value
$.001 per share, of the Corporation (the "Common Stock"), unless the holders of
Series A Preferred Stock and any other series of preferred stock having dividend
and liquidation rights pari passu with those of the Series A Preferred Stock
("Pari Passu Preferred Stock") have been paid in full all of the dividends to
which they are entitled. The Series A Preferred Stock shall also participate in
any dividend or distribution, other than a liquidating distribution, declared or
paid on the Common Stock, pro rata, on the basis of the number of shares of
Common Stock (as determined on an as-converted basis for the Series A Preferred
Stock) into which such Series A Preferred Stock is then convertible.

         Subject to this Section 1, dividends may be declared and paid on Common
Stock from funds lawfully available therefor as and when determined by the Board
of Directors of the Corporation.

         SECTION 2. LIQUIDATION RIGHTS.

         (a)      In the event of any liquidation, dissolution or winding up of
the affairs of the Corporation, whether voluntary or involuntary, the holders of
each share of Series A Preferred Stock shall be entitled to be paid out of the
assets of the Corporation available for distribution to

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holders of the Corporation's capital stock of all classes, after satisfaction of
all preferential liquidation rights of the Senior Preferred Stock, and subject
to the rights of any Pari Passu Preferred Stock, an amount equal to $1,000 per
share of Series A Preferred Stock (the "Liquidation Preference"), plus all
dividends accrued but unpaid thereon, to and including the date full payment
shall be tendered to the holders of the Series A Preferred Stock with respect to
such liquidation, dissolution or winding up. Neither the consolidation or merger
of the Corporation into or with another corporation or corporations, nor the
sale, lease, transfer or conveyance of all or substantially all of the assets of
the Corporation to another corporation or any other entity shall be deemed to be
a liquidation, dissolution or winding up of the affairs of the Corporation
within the meaning of this Section 2(a).

         After payment in full of the Liquidation Preference to which the
holders of the Series A Preferred Stock are entitled, such holders will not be
entitled to any further participation in the distribution of assets of the
Corporation.

         Upon conversion of shares of Series A Preferred Stock into shares of
Common Stock pursuant to Section 3, the holders of such Common Stock shall not
be entitled to any preferential payment or distribution in case of any
liquidation, dissolution or winding up, but shall share ratably in any
distribution of the assets of the Corporation among the holders of Common Stock.

         (b)      Distributions Other than Cash. Whenever the distributions
provided for in this Section 2 shall be payable in property other than cash, the
value of such distributions shall be the fair market value of such property as
determined in good faith by the Board of Directors of the Corporation.

         (c)      Notice. Written notice of any proposed liquidation,
dissolution or winding up of the affairs of the Corporation, stating a payment
date, the amount of the Liquidation Preference and the place where such
Liquidation Preference shall be payable, shall be delivered to the holders of
Series A Preferred Stock not less than 45 days prior to the proposed date of
such proposed liquidation, dissolution or winding up.

         SECTION 3. CONVERSION. The holders of Series A Preferred Stock shall
have conversion rights as follows (the "Conversion Rights"):

         (a)      Optional Conversion: Series A Conversion Price. Subject to
Section 3(b), each share of Series A Preferred Stock shall be convertible,
without the payment of any additional consideration by the holder thereof and at
the option of the holder thereof, at any time after the date such share was
issued, at the office of the Corporation or any transfer agent for the Series A
Preferred Stock, into such number of fully paid and nonassessable shares of
Common Stock as is determined by dividing the Liquidation Preference plus an
amount equal to all accrued and unpaid dividends by the Series A Conversion
Price, determined as hereinafter provided, in effect at the time of conversion.
From and after the date of filing of this Amended and Restated Certificate of
Designation ("Filing Date"), the conversion price at which shares of Common
Stock shall be deliverable upon conversion of Series A Preferred Stock without
the payment of any additional consideration by the holder thereof (the "Series A
Conversion Price") shall initially be $11.55 per share of Common Stock. Such
Series A Conversion Price shall be subject

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to further adjustment, in order to adjust the number of shares of Common Stock
into which the Series A Preferred Stock is convertible, as hereinafter provided.

         (b)      Mechanics of Optional Conversion. Before any holder of Series
A Preferred Stock shall be entitled to convert the same into shares of Common
Stock, the holder shall surrender the certificate or certificates therefor at
the office of the Corporation or of any transfer agent for Series A Preferred
Stock, shall give written notice to the Corporation at such office that the
holder elects to convert the same and shall state therein the holder's name or
the name or, subject to any legal or contractual restrictions on transfer
thereof, names of the holder's nominees in which the holder wishes the
certificate or certificates for shares of Common Stock to be issued and shall
pay any transfer or similar tax, if required. The date on which the holder
satisfies all these requirements is the "Conversion Date". On the Conversion
Date, all rights with respect to the Series A Preferred Stock so converted shall
terminate, except for any of the rights of the holder thereof, upon surrender of
the holder's certificate or certificates therefor, to receive certificates for
the number of shares of Common Stock into which such Series A Preferred Stock
has been converted. If so required by the Corporation, certificates surrendered
for conversion shall be endorsed or accompanied by written instrument or
instruments of transfer, in form satisfactory to the Corporation, duly executed
by the registered holder or by the holder's attorney duly authorized in writing.
No fractional share of Common Stock shall be issued upon the conversion of
Series A Preferred Stock. In lieu of any fractional share to which the holder
would otherwise be entitled, the Corporation shall pay cash equal to such
fraction multiplied by the applicable Series A Conversion Price then in effect.
Within five business days after the Conversion Date, the Corporation shall issue
and deliver to such holder of Series A Preferred Stock, or, subject to any legal
or contractual restrictions on transfer thereof, to the holder's nominee or
nominees, a certificate or certificates for the number of shares of Common Stock
to which the holder shall be entitled as aforesaid. The person or persons
entitled to receive the shares of Common Stock issuable upon conversion shall be
treated for all purposes as the record holder or holders of such shares of
Common Stock on the Conversion Date. Notwithstanding anything to the contrary
contained in Sections 3(a) and 3(b), the holder of any shares of Series A
Preferred Stock which are selected for redemption by the Corporation in
accordance with Section 5 shall not be entitled to convert such shares into
Common Stock unless the Conversion Date with respect to such shares is at least
two business days prior to the Redemption Date (as defined below).

         (c)      Adjustments to the Conversion Price.

                  (i)      Special Definition. For purposes of this Section
3(c), the following definition shall apply:

                           (1)      "Additional Shares of Common Stock" shall
mean all shares of Common Stock issued by the Corporation after the Filing Date
by reason of stock dividends, distributions payable in common stock, stock
splits, reverse stock splits, recapitalizations, reclassifications, combinations
or exchanges of shares, separations, reorganizations, liquidations or other
similar event, other than:

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

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                                    (b)      any securities issued or issuable
as a result of an adjustment of the Series A Conversion Price made pursuant to
this Section 3(c);

                                    (c)      any shares of capital stock of the
Corporation, not to exceed one-half of one percent of the total issued and
outstanding capital stock of the Corporation on an "as converted to Common
Stock" basis, the issuance of which is approved by vote of a majority of the
Board of Directors of the Corporation, including the affirmative vote of a
majority of the directors designated for election by the holders of the Series A
Preferred Stock; and

                                    (d)      not more than ten shares of capital
stock of the Corporation on an "as converted to Common Stock" basis, the
issuance of which resulted from mathematical or other error or inadvertence,
provided that the transaction in which such shares were issued was approved at
the time by vote of a majority of the Board of Directors of the Corporation,
including the affirmative vote of a majority of the directors designated for
election by the holders of the Series A Preferred Stock.

                  (ii)     Adjustment of the Series A Conversion Price for
Dividends, Distributions, Subdivisions, Combinations or Consolidations of Common
Stock.

                           (1)      Stock Dividends, Distributions or
Subdivisions. In the event the Corporation shall be deemed to have issued
Additional Shares of Common Stock in a stock dividend, stock distribution or
subdivision, the Series A Conversion Price and the number of shares of Common
Stock issuable upon conversion of each share of Series A Preferred Stock in
effect immediately prior to such deemed issuance shall, concurrently with the
effectiveness of such deemed issuance, be proportionately decreased or
increased, as appropriate.

                           (2)      Combinations or Consolidations. In the event
the outstanding shares of Common Stock shall be combined, consolidated or
otherwise changed, by recapitalizations, reclassifications, stock splits,
reverse stock splits, exchanges of shares, separations, reorganizations,
liquidations or otherwise, the Series A Conversion Price and the number of
shares of Common Stock issuable upon conversion of each share of Series A
Preferred Stock in effect immediately prior to any such combination,
consolidation or other event shall, concurrently with the effectiveness of such
event, be proportionately decreased or increased, as appropriate.

         (d)      Adjustments for Certain Dividends and Distributions. In the
event that at any time or from time to time after the Filing Date, the
Corporation shall make or issue, or fix a record date for the determination of
holders of Common Stock entitled to receive, a dividend or other distribution
payable in securities of the Corporation other than shares of Common Stock, then
and in each such event provision shall be made so that the holders of Series A
Preferred Stock shall receive upon conversion thereof, in addition to the number
of shares of Common Stock receivable thereupon, the amount of securities of the
Corporation that they would have received had their Series A Preferred Stock
been converted into Common Stock on the date of such event and had they
thereafter, during the period from the date of such event to and including the
actual conversion date, retained such securities receivable by them as aforesaid
during such period, giving application during such period to all adjustments
called for herein.

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         (e)      Adjustment for Reclassification, Exchange or Substitution. In
the event that at any time or from time to time after the Filing Date, the
Common Stock issuable upon the conversion of Series A Preferred Stock shall be
changed into the same or a different number of shares of any class or classes of
stock, whether by capital reorganization, reclassification, or otherwise (other
than a subdivision or combination of shares or stock dividend provided for in
Section 3(c)(ii) above, or a merger, consolidation, or sale of assets provided
for in Section 3(f) below) then and in each such event the holder of any share
or shares of Series A Preferred Stock shall have the right thereafter to convert
such shares into the kind and amount of shares of stock and other securities and
property receivable upon such reorganization, reclassification, or other change,
by the holder of a number of shares of Series A Preferred Stock might have been
converted immediately prior to such reorganization, reclassification, or change,
all subject to further adjustment as provided herein.

         (f)      Adjustment for Merger, Consolidation or Sale of Assets. In the
event that at any time or from time to time after the Filing Date, the
Corporation shall sell all or substantially all of its assets or merge or
consolidate with or into another entity, each share of Series A Preferred Stock
shall thereafter be convertible into the kind and amount of shares of stock or
other securities or property to which a holder of the number of shares of Common
Stock of the Corporation deliverable upon conversion of Series A Preferred Stock
would have been entitled to receive upon such consolidation, merger or sale;
and, in such case, appropriate adjustment (as determined in good faith by the
Board of Directors) shall be made in the application of the provisions set forth
in this Section 3 with respect to the rights and interest thereafter of the
holders of Series A Preferred Stock, to the end that the provisions set forth in
this Section 3 (including provisions with respect to changes in and other
adjustments of the Series A Conversion Price) shall thereafter be applicable, as
nearly as reasonably may be, in relation to any shares of stock or other
property thereafter deliverable upon the conversion of the Series A Preferred
Stock.

         (g)      No Impairment. The Corporation shall not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, including, without limitation, voluntary bankruptcy
proceedings, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Corporation but shall at all
times in good faith assist in the carrying out of all the provisions of this
Section 3 and in the taking of all such actions as may be necessary or
appropriate in order to protect the conversion rights of the holders of the
Series A Preferred Stock under this Section 3 against impairment.

         (h)      Certificate as to Adjustment. Upon the occurrence of each
adjustment or readjustment of the Series A Conversion Price pursuant to this
Section 3, the Corporation at its expense shall promptly compute such adjustment
or readjustment in accordance with the terms hereof and furnish to each affected
holder of Series A Preferred Stock a certificate setting forth such adjustment
or readjustment and showing in detail the facts upon which such adjustment is
based; provided, however, that the Corporation shall not be required to provide
each holder with such a certificate more than one time per calendar quarter. The
Corporation shall, upon the written request at any time of any affected holder
of Series A Preferred Stock, furnish or cause to be furnished to such holder a
like certificate setting forth (i) such adjustments and readjustments, (ii) the
Series A Conversion Price in effect at the time, and (iii) the number of shares
of Common

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Stock and the amount, if any, of other property which at the time would be
received upon the conversion of each share of Series A Preferred Stock.

         (i)      Notices of Record Date. In the event of any taking by the
Corporation of a record date of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any
dividend (other than a cash dividend which is the same as cash dividends paid in
previous quarters) or other distribution, the Corporation shall deliver to each
holder of Series A Preferred Stock at least twenty days prior to such record
date a notice specifying the date on which any such record is to be taken for
the purpose of such dividend or distribution.

         (j)      Common Stock Reserve. The Corporation shall reserve and keep
available out of its authorized but unissued Common Stock such number of shares
of Common Stock as shall from time to time be sufficient to effect conversion of
the Series A Preferred Stock.

         (k)      Certain Taxes. The Corporation shall pay any issue or transfer
taxes payable in connection with the conversion of Series A Preferred Stock,
provided, however, that the Corporation shall not be required to pay any tax
which may be payable in respect of any transfer to a name other than that of the
holder of the Series A Preferred Stock.

         (l)      Closing of Books. The Corporation shall at no time close its
transfer books against the transfer of any Series A Preferred Stock or of any
shares of Common Stock issued or issuable upon the conversion of any shares of
Series A Preferred Stock in any manner which interferes with the timely
conversion or permitted transfer of such Series A Preferred Stock or Common
Stock.

         SECTION 4. VOTING RIGHTS.

         (a)      Except as otherwise provided herein or as required by law, the
holders of the Series A Preferred Stock shall be entitled to notice of any
meeting of stockholders and shall vote upon any matter submitted to the
stockholders for a vote as a single class together with the holders of the
Common Stock, Series B Preferred Stock and any other series of preferred stock
entitled to vote generally on matters presented to the stockholders for a vote.
Holders of Series A Preferred Stock shall have that number of votes per share as
is equal to the number of whole shares of Common Stock into which each such
share of Series A Preferred Stock held by such holder could be converted on the
date for determination of stockholders entitled to vote at the meeting or on the
date of any written consent.

         (b)      Notwithstanding any other provision of this Section 4, in the
event that it is determined by Nasdaq (after full process, including any appeal
process available to the Corporation) that the voting provisions set forth in
this Section 4 violate or conflict with Nasdaq Marketplace Rule 4351, the number
of votes to which each share of Series A Preferred Stock is entitled shall be
reduced to the extent required to comply with such rule.

         (c)      Except as required by law, (i) the holders of the Series A
Preferred Stock shall not be entitled to vote as a separate class upon any
matter submitted to the stockholders for a vote, and (ii) the holders of the
Series A Preferred Stock shall have no right to vote with respect to the

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creation or issuance of a series of preferred stock having rights, preferences
and priviliges pari passu with, or senior to those of the Series A Preferred
Stock.

         SECTION 5. REDEMPTION.

         (a)      Redemption at Option of the Holder.

                  (i)      On or at any time following a Change of Control (as
defined below), each holder of Series A Preferred Stock may elect to have the
Corporation redeem from it, to the extent the Corporation has funds legally
available for such purpose, and subject to Section 5(a)(iii), any or all shares
of Series A Preferred Stock held by such holder; provided, however, if a Change
of Control occurs as a result of the acquisition by a holder of Series A
Preferred Stock or such holder's "affiliates" (as such term is defined in Rule
405 under the Securities Act of 1933, as amended) of beneficial ownership of
securities of the Corporation representing more than 50% of the voting power of
the Corporation (whether such acquisition is made by such holder or such
holder's affiliates, individually or as a member of a "group" (as described in
Rule 13d-5(b)(1) promulgated under the Securities Exchange Act of 1934)), such
holder shall not be entitled, as a result of such Change of Control, to require
the Corporation to redeem its Series A Preferred Stock pursuant to this Section
5(a). Such election may be made only by delivering to the Corporation (x) a
written notice signed by such holder specifying the number of shares of Series A
Preferred Stock so to be redeemed, and (y) certificates for the shares of the
Series A Preferred Stock so to be redeemed, together with stock powers therefor
duty executed by such holder in blank (such written election, certificates and
stock powers being referred to collectively as "Redemption Notice").

                  (ii)     The Corporation shall redeem from holders of Series A
Preferred Stock from whom the Corporation received a Redemption Notice, within
30 days of its receipt of such Redemption Notice, all the shares of the Series A
Preferred Stock as to which Redemption Notices have been given, to the extent
the Corporation has funds legally available for such purpose, and subject to
Section 5(a)(iii), by paying to the respective holders the amount equal to (x)
the number of shares of Series A Preferred Stock submitted for redemption
multiplied by (y)(i) the Liquidation Preference, plus (ii) all accrued but
unpaid dividends thereon to and including the date of such redemption, whether
or not declared.

                  (iii)    Notwithstanding anything to the contrary in this
Section 5, (x) in no event shall the Corporation redeem any share of Series A
Preferred Stock pursuant to Section 5(a) unless and until (x) a number of shares
of Series B Preferred Stock equal to or greater than 80% of the sum of the total
number of shares of Series B Preferred Stock (1) issued upon conversion of the
Tranche I Notes (as defined in that certain Securities Purchase Agreement, dated
as of March [_], 2003, by and between the Corporation and certain purchasers
("Securities Purchase Agreement")), and (2) issued and, as of the date of such
Change of Control, issuable under the Sanmina Notes (as defined in the
Securities Purchase Agreement), and (3) without duplication, any other shares of
Series B Preferred Stock issued in connection with the Third Closing (as defined
in the Securities Purchase Agreement) and any other shares of Series B Preferred
Stock issued on the Series B Original Issue Date (as defined in the Certificate
of Designation of Series B Convertible Preferred Stock (the "Series B
Certificate")), have been either (1) redeemed, (2) submitted for redemption
pursuant to a redemption notice under Section

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5 of the Series B Certificate and/or (3) converted into Common Stock pursuant to
Section 3 of the Series B Certificate, and (y) the Corporation has actually
redeemed all shares of Series B Preferred Stock as to which a redemption notice
has been submitted to the Corporation. In addition, notwithstanding anything to
the contrary in this Section 5, any redemption of the Series A Preferred Stock
pursuant to this Section 5(a) shall be subject to the redemption rights of any
Pari Passu Preferred Stock. In addition, if the funds of the Corporation legally
available for redemption of shares of Series A Preferred Stock are insufficient
to redeem the total number of shares of Series A Preferred Stock submitted for
redemption pursuant to Redemption Notices, those funds which are legally
available will be used to redeem (subject to the rights of any Pari Passu
Preferred Stock) the maximum possible number of whole shares ratably among the
holders of such shares who have submitted Redemption Notices as of such date of
determination. Any shares of Series A Preferred Stock not redeemed as described
in this Section 5(a)(iii) shall remain outstanding and, notwithstanding anything
herein to the contrary, shall remain entitled to all rights and preferences
otherwise provided herein.

         (b)      Redemption at the Option of the Corporation.

                  (i)      The Corporation may redeem at any time, in whole or
in part, the Series A Preferred Stock at a redemption price per share equal to
the Liquidation Preference plus all accrued and unpaid dividends through the
Redemption Date (the "Redemption Price"); provided, however, in no event shall
the Corporation redeem any shares of Series A Preferred Stock while any shares
of Senior Preferred Stock are outstanding. Any redemption effected pursuant to
this Section (5)(b)(i) shall be made on a pro rata basis among the holders of
the Series A Preferred Stock in proportion to the number of shares of Series A
Preferred Stock then held by them.

                  (ii)     The Corporation shall provide written notice (the
"Corporation Notice") by first class mail postage prepaid, to each holder of
record (determined at the close of business on the business day next preceding
the day on which the Corporation Notice is given) of the Series A Preferred
Stock to be redeemed, at the address last shown on the records of this
Corporation for such holder, notifying such holder of the redemption to be
effected, specifying the number of shares to be redeemed from such holder,
specifying the date of redemption (the "Redemption Date"), the Redemption Price,
the place at which payment may be obtained and calling upon such holder to
surrender to the Corporation, in the manner and at the place designated, his,
her or its certificate or certificates representing the shares to be redeemed;
provided that the Redemption Date shall be not less than 10 days from the date
of the Corporation Notice. Except as provided in Section (5)(b)(iii), on or
after the Redemption Date, each holder of Series A Preferred Stock to be
redeemed shall surrender to the Corporation the certificate or certificates
representing such shares, in the manner and at the place designated in the
Corporation Notice, and thereupon the Redemption Price of such shares shall be
payable to the order of the person whose name appears on such certificate or
certificates as the owner thereof and each surrendered certificate shall be
cancelled. In the event less than all the shares represented by any such
certificate are redeemed, a new certificate shall be issued representing the
unredeemed shares.

                  (iii)    From and after the Redemption Date, unless there
shall have been a default in payment of the Redemption Price, all rights of the
holders of shares of Series A

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Preferred Stock designated for redemption in the Corporation Notice as holders
of Series A Preferred Stock (except the right to receive the Redemption Price
without interest upon surrender of their certificate or certificates) shall
cease with respect to such shares, and such shares shall not thereafter be
transferred on the books of the Corporation or be deemed to be outstanding for
any purpose whatsoever. If the funds of the Corporation legally available for
redemption of shares of Series A Preferred Stock on any Redemption Date are
insufficient to redeem the total number of shares of Series A Preferred Stock to
be redeemed on such date, those funds which are legally available will be used
to redeem the maximum possible number of such shares ratably among the holders
of such shares to be redeemed based upon their holdings of Series A Preferred
Stock. The shares of Series A Preferred Stock not redeemed shall remain
outstanding and entitled to all the rights and preferences provided herein. At
any time thereafter when additional funds of the Corporation are legally
available for the redemption of shares of Series A Preferred Stock, such funds
will immediately be used to redeem the balance of the shares which the
Corporation has become obliged to redeem on any Redemption Date but which it has
not redeemed.

                  (iv)     "Change of Control" shall mean: (i) the acquisition
by any person or "group" (as described in Rule 13d-5(b)(1) promulgated under the
Securities Exchange Act of 1934), of beneficial ownership of securities of the
Corporation representing more than 50% of the voting power of the Corporation;
or (ii) a merger or consolidation of the Corporation or a sale of all or
substantially all of the assets of the Corporation in one or a series of related
transactions, unless following such transaction or series of transactions, the
holders of the Corporation's securities prior to the first such transaction
continue to hold at least a majority of the voting power of the surviving entity
or acquirer of such assets. Notwithstanding anything to the contrary herein, in
no event shall the transactions consummated pursuant to the Securities Purchase
Agreement (including without limitation, the issuance of secured convertible
notes, the issuance of warrants and the issuance of Series B Preferred Stock and
the subsequent exercise of warrants or conversion of convertible notes or Series
B Preferred Stock) constitute a "Change of Control" for purposes of this Section
5.

         SECTION 6. NOTICES. All notices, requests, consents, demands and other
communications required or permitted under this Amended and Restated Series A
Preferred Stock Certificate of Designation shall be in writing and shall be
deemed to have been duly given, made and received (a) when delivered against
receipt, (b) upon transmitter's confirmation of the receipt of a facsimile
transmission, which shall be followed by an original sent otherwise in
accordance with this Section 6, (c) upon confirmed delivery by a standard
overnight carrier, or (d) if to a U.S. resident, upon expiration of three
business days after the day when deposited in the U.S. mail, first class postage
prepaid, addressed to the Corporation at its principal executive office, or at
such other address of which the Corporation may notify the holders of Series A
Preferred Stock from time to time, or if to a holder of Series A Preferred Stock
or Common Stock, to such holder's address as shown by the records of the
Corporation.

         SECTION 7. STATUS OF REACQUIRED SHARES. Shares of Series A Preferred
Stock which have been issued and converted, redeemed or reacquired in any manner
shall (upon compliance with any applicable provisions of the laws of the State
of Delaware) have the status of authorized and unissued Preferred Stock
undesignated as to series and may be redesignated and reissued.

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                                                                     EXHIBIT 4.7

                                    FORM OF
                           CERTIFICATE OF DESIGNATION
                      SERIES B CONVERTIBLE PREFERRED STOCK
                                       OF
                             NOVATEL WIRELESS, INC.

         It is hereby certified that:

         1.       The name of the corporation is Novatel Wireless, Inc. (the
                  "Corporation").

         2.       The Corporation was formed under the laws of the State of
                  Delaware on April 26, 1996.

         IN WITNESS WHEREOF, the undersigned has executed this Certificate of
Designation this 12th day of March, 2003.

                                                /s/ Peter V. Leparulo___________
                                                Peter Leparulo
                                                Chief Executive Officer

<PAGE>

                             NOVATEL WIRELESS, INC.

                      SERIES B CONVERTIBLE PREFERRED STOCK

         RESOLVED, that pursuant to the authority vested in the Board of
Directors of the Corporation by Article IV of the Corporation's Amended and
Restated Certificate of Incorporation, a series of Preferred Stock of the
Corporation be, and it hereby is, created out of the authorized but unissued
shares of the capital stock of the Corporation, such series to be designated
Series B Preferred Stock (the "Series B Preferred Stock"), to consist of 10,000
shares, par value $.001 per share, of which the preferences and relative and
other rights, and the qualifications, limitations or restrictions thereof, shall
be (in addition to those set forth in the Corporation's Amended and Restated
Certificate of Incorporation) as follows:

         SECTION 1.        DIVIDENDS. The holders of Series B Preferred Stock
shall be entitled to receive, from funds legally available therefor, a
cumulative dividend at the rate per annum of 8% of $1,000 per share of Series B
Preferred Stock (such per share figure, which shall be adjusted to reflect
appropriately any stock splits, combinations of the Series B Preferred Stock,
and similar transactions, the "Initial Purchase Price") held by such holder,
payable, subject to any applicable contractual restrictions, upon any
liquidation, dissolution or winding up of the affairs of the Corporation, as
described in Section 2, upon any redemption described in Section 5, or otherwise
quarterly in arrears when and as declared by the Board of Directors each January
1, April 1, July 1 and October 1 of the applicable year. No dividends shall be
declared, or paid to the holders of common stock, par value $.001 per share, of
the Corporation (the "Common Stock"), to the holders of the Series A Preferred
Stock, par value $0.001 per share, of the Corporation ("Series A Preferred
Stock") or any holders of any series of Preferred Stock having dividend and
liquidation rights junior to the Series B Preferred Stock (such Series A
Preferred Stock and any such other series of junior Preferred Stock, "Junior
Preferred Stock") (except for in-kind distributions in connection with the
conversion of such Junior Preferred Stock into Common Stock), unless the holders
of Series B Preferred Stock have been paid in full all of the dividends to which
they are entitled. The Series B Preferred Stock shall also participate in any
dividend or distribution, other than a liquidating distribution, declared or
paid on the Common Stock, pro rata, on the basis of the number of shares of
Common Stock (as determined on an as-converted basis for the Series B Preferred
Stock) into which such Series B Preferred Stock is then convertible.

         Subject to this Section 1, dividends may be declared and paid on Common
Stock from funds lawfully available therefor as and when determined by the Board
of Directors of the Corporation.

         SECTION  2.       LIQUIDATION RIGHTS.

         (a)      In the event of any liquidation, dissolution or winding up of
the affairs of the Corporation, whether voluntary or involuntary, the holders of
each share of Series B Preferred Stock shall be entitled preferentially to be
paid first out of the assets of the Corporation available for distribution to
holders of the Corporation's capital stock of all classes an amount per share of
Series B Preferred Stock equal to 150% times the sum of the Initial Purchase
Price, plus all dividends accrued but unpaid thereon (the "Liquidation

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Preference"), to and including the date full payment shall be tendered to the
holders of the Series B Preferred Stock with respect to such liquidation,
dissolution or winding up. Neither the consolidation or merger of the
Corporation into or with another corporation or corporations, nor the sale,
lease, transfer or conveyance of all or substantially all of the assets of the
Corporation to another corporation or any other entity shall be deemed to be a
liquidation, dissolution or winding up of the affairs of the Corporation within
the meaning of this Section 2(a).

         After payment in full of the Liquidation Preference to which the
holders of the Series B Preferred Stock are entitled, distributions will be made
to the holders of the Junior Preferred Stock until their respective liquidation
preference has been paid in full.

         After payment in full of the liquidation preference to which the
holders of the Junior Preferred Stock are entitled, distributions will be made
to the holders of the Series B Preferred Stock, any series of Junior Preferred
Stock which participates with the Common Stock upon liquidation and the Common
Stock, in proportion to the number of shares of Common Stock (including shares
of Common Stock issuable upon conversion of the Series B Preferred Stock and, as
applicable, any such shares of Junior Preferred Stock) held by each such holder.

         Upon conversion of shares of Series B Preferred Stock into shares of
Common Stock pursuant to Section 3, the holders of such Common Stock shall not
be entitled to any preferential payment or distribution in case of any
liquidation, dissolution or winding up, but shall share ratably in any
distribution of the assets of the Corporation among the holders of Common Stock.

         (b)      DISTRIBUTIONS OTHER THAN CASH. Whenever the distributions
provided for in this Section 2 shall be payable in property other than cash, the
value of such distributions shall be determined as follows: If the assets
distributed are securities traded in a public market, the fair market value of
such assets shall be the closing price of such securities reported for the
business day immediately before such assets are distributed. If such assets are
not traded in a public market, the Board of Directors of the Corporation shall
initially determine fair market value in its reasonable good faith judgment. At
the time of any such distribution, the Corporation shall provide the holders of
the Series B Preferred Stock with written notice (within 10 days after the date
of such distribution) of its fair market value determination. If the holders of
a majority of the outstanding shares of Series B Preferred Stock ("Majority
Holders") deliver written notice, within 30 days following the delivery of the
Corporation's written notice, objecting to such determination, the fair market
value of the assets distributed shall be determined pursuant to the Appraisal
Procedure (as described in Section 3(c)(iii)(6) below), which determination
shall be binding on the holders of the Series B Preferred Stock and the
Corporation.

         (c)      NOTICE. Written notice of any proposed liquidation,
dissolution or winding up of the affairs of the Corporation, stating a payment
date, the amount of the Liquidation Preference and the place where such
Liquidation Preference shall be payable, shall be delivered to the holders of
Series B Preferred Stock not less than 45 days prior to the proposed date of
such proposed liquidation, dissolution or winding up.

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         SECTION  3.       CONVERSION. The holders of Series B Preferred Stock
shall have conversion rights as follows (the "Conversion Rights"):

         (a)      OPTIONAL CONVERSION: SERIES B CONVERSION PRICE. Subject to
Section 3(b), each share of Series B Preferred Stock shall be convertible,
without the payment of any additional consideration by the holder thereof and at
the option of the holder thereof, at any time after the date such share was
issued, at the office of the Corporation or any transfer agent for the Series B
Preferred Stock, into such number of fully paid and nonassessable shares of
Common Stock as is determined by dividing (i) the Initial Purchase Price plus an
amount equal to all accrued and unpaid dividends by (ii) the Series B Conversion
Price, determined as hereinafter provided, in effect at the time of conversion.
The conversion price at which shares of Common Stock shall be deliverable upon
conversion of Series B Preferred Stock without the payment of any additional
consideration by the holder thereof (the "Series B Conversion Price") shall
initially be $0.70 per share of Common Stock. Such initial Series B Conversion
Price shall be subject to further adjustment, in order to adjust the number of
shares of Common Stock into which the Series B Preferred Stock is convertible,
as hereinafter provided.

         (b)      MECHANICS OF OPTIONAL CONVERSION. Before any holder of Series
B Preferred Stock shall be entitled to convert the same into shares of Common
Stock, the holder shall surrender the certificate or certificates therefor at
the office of the Corporation or of any transfer agent for Series B Preferred
Stock, shall give written notice to the Corporation at such office that the
holder elects to convert the same and shall state therein the holder's name or
the name or, subject to any legal or contractual restrictions on transfer
thereof, names of the holder's nominees in which the holder wishes the
certificate or certificates for shares of Common Stock to be issued and shall
pay any transfer or similar tax, if required. The date on which the holder
satisfies all these requirements is the "Conversion Date". On the Conversion
Date, all rights with respect to the Series B Preferred Stock so converted shall
terminate, except for any of the rights of the holder thereof, upon surrender of
the holder's certificate or certificates therefor, to receive certificates for
the number of shares of Common Stock into which such Series B Preferred Stock
has been converted. If so required by the Corporation, certificates surrendered
for conversion shall be endorsed or accompanied by written instrument or
instruments of transfer, in form satisfactory to the Corporation, duly executed
by the registered holder or by the holder's attorney duly authorized in writing.
No fractional share of Common Stock shall be issued upon the conversion of
Series B Preferred Stock. In lieu of any fractional share to which the holder
would otherwise be entitled, the Corporation shall pay cash equal to such
fraction multiplied by the applicable Series B Conversion Price then in effect.
Within five business days after the Conversion Date, the Corporation shall issue
and deliver to such holder of Series B Preferred Stock, or, subject to any legal
or contractual restrictions on transfer thereof, to the holder's nominee or
nominees, a certificate or certificates for the number of shares of Common Stock
to which the holder shall be entitled as aforesaid. The person or persons
entitled to receive the shares of Common Stock issuable upon conversion shall be
treated for all purposes as the record holder or holders of such shares of
Common Stock on the Conversion Date.

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         (c)      ADJUSTMENTS TO THE CONVERSION PRICE.

                  (i)      SPECIAL PROVISIONS. For purposes of this Section
3(c), the following definitions shall apply:

                           (1)      "Additional Shares of Common Stock" shall
mean all shares of Common Stock issued by the Corporation (including those
deemed to be issued pursuant to Section 3(c)(iii)(7)) after the first date on
which a share of Series B Preferred Stock was issued (the "Series B Original
Issue Date") for any reason, including without limitation as a result of sales
of Common Stock or rights to acquire Common Stock, the issuance of Options,
stock dividends, distributions payable in common stock, stock splits, reverse
stock splits, recapitalizations, reclassifications, combinations or exchanges of
shares, separations, reorganizations, liquidations or other similar event, other
than:

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

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

                                    (c)      the first 500,000 shares of Common
Stock issued or issuable pursuant to Employee Equity Issuances after the Series
B Original Issue Date (it being understood that the first such 500,000 shares
shall not be subject to Section 3(c)(iii)(2), and any subsequent Employee Equity
Issuances shall be subject to Section 3(c)(iii)(2); provided, further, such
500,000 share figure shall be appropriately adjusted to reflect transactions
described in Section 3(c)(ii) and Sections 3(d), 3(e) and 3(f));

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

                                    (e)      any securities issued or issuable
as a result of an adjustment of the Series B Conversion Price made pursuant to
this Section 3(c).

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

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

                           (4)      "Option" means any right, option, or warrant
to subscribe for, purchase, or otherwise acquire Common Stock or Convertible
Securities.

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                  (ii)     ADJUSTMENT OF THE SERIES B CONVERSION PRICE FOR
DIVIDENDS, DISTRIBUTIONS, SUBDIVISIONS, COMBINATIONS OR CONSOLIDATIONS OF COMMON
STOCK.

                           (1)      Stock Dividends, Distributions or
Subdivisions. In the event the Corporation shall be deemed to have issued
Additional Shares of Common Stock in a stock dividend, stock distribution or
subdivision, the Series B Conversion Price and the number of shares of Common
Stock issuable upon conversion of each share of Series B Preferred Stock in
effect immediately prior to such deemed issuance shall, concurrently with the
effectiveness of such deemed issuance, be proportionately decreased or
increased, as appropriate.

                           (2)      Combinations or Consolidations. In the event
the outstanding shares of Common Stock shall be combined, consolidated or
otherwise changed, by recapitalizations, reclassifications, stock splits,
reverse stock splits, exchanges of shares, separations, reorganizations,
liquidations or otherwise, the Series B Conversion Price and the number of
shares of Common Stock issuable upon conversion of each share of Series B
Preferred Stock in effect immediately prior to any such combination,
consolidation or other event shall, concurrently with the effectiveness of such
event, be proportionately decreased or increased, as appropriate.

                  (iii)    ADJUSTMENT OF SERIES B PRICE CONVERSION PRICE FOR
DILUTIVE ISSUANCES.

                           (1)      Dilutive Issuances (other than due to
Employee Equity Issuances). If the Corporation shall issue, after the Series B
Original Issue Date, any Additional Shares of Common Stock (other than issuances
pursuant to transactions described in Section 3(c)(ii) but expressly excluding
any new issuances concurrent with such transactions) without consideration or
for a consideration per share less than the Series B Conversion Price in effect
immediately prior to the issuance of such Additional Shares of Common Stock, the
Series B Conversion Price in effect immediately prior to each such issuance
shall forthwith be adjusted to be equal to the amount of consideration per share
received in connection with such issuance. Notwithstanding the foregoing, the
provisions of this Section 3(c)(iii)(1) shall not apply to Additional Shares of
Common Stock issued through an Employee Equity Issuance.

                           (2)      Dilutive Issuances due to Employee Equity
Issuances. If the Corporation shall issue, after the Series B Original Issue
Date, any Additional Shares of Common Stock through an Employee Equity Issuance
without consideration or for a consideration per share less than the Series B
Conversion Price in effect immediately prior to the issuance of such Additional
Shares of Common Stock, the Series B Conversion Price in effect immediately
prior to each such issuance shall forthwith be adjusted to be equal to a price
determined by multiplying the Series B Conversion Price then in effect by a
fraction (which shall in no event be greater than one), the numerator of which
shall be the number of shares of Common Stock outstanding immediately prior to
such issuance plus the number of shares of Common Stock that the aggregate
consideration received by the Corporation for such issuance would purchase at
the Series B Conversion Price; and the denominator of which shall be the number
of shares of Common Stock outstanding immediately prior to such issuance plus
the number of shares of such Additional Shares of Common Stock. For

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purposes of the foregoing computation, the number of shares of Common Stock
outstanding shall be deemed to include all shares of Common Stock actually
outstanding and all shares of Common Stock deemed to be outstanding as a result
of the application of the rules set forth in subsection (c)(iii)(7).

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

                           (4)      In the case of the issuance of Additional
Shares of Common Stock for a consideration in whole or in part other than cash,
the consideration other than cash shall initially be deemed to be the fair value
thereof as determined in good faith by the Board of Directors. The Corporation
shall provide the holders of the Series B Preferred Stock with written notice of
its fair market value determination pursuant to this Section 3(c)(iii)(4) within
30 days following such issuance of the Additional Shares of Common Stock. If the
Majority Holders deliver to the Corporation, within 30 days following delivery
of the Corporation's written notice, written notice of their objection to such
determination, the fair market value shall be determined pursuant to the
Appraisal Procedure set forth in Section 3(c)(iii)(6), which determination shall
be binding on the holders of the Series B Preferred Stock and the Corporation.

                           (5)      The consideration for Additional Shares of
Common Stock issued together with other property of the Corporation for
consideration that covers both shall be determined in good faith by the Board of
Directors. The Corporation shall provide the holders of the Series B Preferred
Stock with written notice of its fair market value determination pursuant to
this Section 3(c)(iii)(5) within 30 days following such issuance of the
Additional Shares of Common Stock. If the Majority Holders deliver to the
Corporation, within 30 days following delivery of the Corporation's written
notice, written notice of their objection to such determination, the fair market
value shall be determined pursuant to the Appraisal Procedure set forth in
Section 3(c)(iii)(6), which determination shall be binding on the holders of the
Series B Preferred Stock and the Corporation.

                           (6)      Appraisal Procedure. In the event of a
challenge to the fair market value determinations of the Board of Directors
pursuant to Section 2(b) or the amount of consideration determined pursuant to
Section 3(c)(iii)(4) or Section 3(c)(iii)(5), the Corporation and the Majority
Holders shall attempt to select an investment banking firm to resolve such
dispute. In the event that the Corporation and the Majority Holders are unable
to agree upon an investment banking firm, within 30 days following the delivery
of the Holder's (or Majority Holders') written objection ("Objection Date"), the
Corporation and the Majority Holders, within 45 days following the Objection
Date, shall each select an investment banking firm with a national reputation
and the two firms so selected shall agree upon a third investment banking firm,
which shall resolve such dispute. The findings of the investment banking firm so
selected shall be binding on the Corporation and the Majority Holders. The fees
and costs of the investment banking firm selected shall be borne one-half by the
Corporation and one-half by the Majority Holders challenging the valuation.

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                           (7)      In the case of the issuance of Options or
Convertible Securities, the following provisions shall apply for all purposes of
this Section 3(c)(iii):

                                    (a)      The aggregate maximum number of
shares of Common Stock deliverable upon exercise (assuming the satisfaction of
any conditions to exercisability, including without limitation, the passage of
time, but without taking into account potential antidilution adjustments) of
such Options (and, in the case of Options to acquire Convertible Securities, the
maximum number of shares of Common Stock issuable upon conversion or exchange of
such Convertible Securities) shall be deemed to have been issued at the time
such Options were issued and for a consideration equal to the consideration
(determined in the manner provided in subsections (c)(iii)(3), (c)(iii)(4) and
(c)(iii)(5)), if any, received by the Corporation upon the issuance of such
Options plus the minimum exercise price provided in such Options (without taking
into account potential antidilution adjustments) for the Common Stock covered
thereby (plus, in the case of Options to acquire Convertible Securities, the
minimum additional consideration, if any, deliverable upon conversion or
exchange of such Convertible Securities).

                                    (b)      The aggregate maximum number of
shares of Common Stock deliverable upon conversion of or in exchange (assuming
the satisfaction of any conditions to convertibility or exchangeability,
including, without limitation, the passage of time, but without taking into
account potential antidilution adjustments) for such Convertible Securities
shall be deemed to have been issued at the time such Convertible Securities were
issued and for a consideration equal to the consideration, if any, received by
the Corporation for any such Convertible Securities (excluding any cash received
on account of accrued interest or accrued dividends), plus the minimum
additional consideration, if any, to be received by the Corporation (without
taking into account potential antidilution adjustments) upon the conversion or
exchange of such Convertible Securities (the consideration in each case to be
determined in the manner provided in subsections (c)(iii)(3), (c)(iii)(4) and
(c)(iii)(5)).

                                    (c)      If, following the issuance of
Options or Convertible Securities and the determination of the impact of such
issuance pursuant to subsection (c)(iii)(7)(a) or (c)(iii)(7)(b) above, there is
any change in the number of shares of Common Stock deliverable or in the
consideration payable to this Corporation upon exercise of such Options or upon
conversion of or in exchange for such Convertible Securities, including, but not
limited to, a change resulting from the antidilution provisions thereof, the
Series B Conversion Price, to the extent in any way affected by or computed
using such Options or Convertible Securities, shall be recomputed to reflect
such change, but no further adjustment shall be made for the actual issuance of
Common Stock or any payment of such consideration upon the exercise of any such
Options or the conversion or exchange of such Convertible Securities.

                                    (d)      The number of shares of Common
Stock deemed issued and the consideration deemed paid therefor pursuant to
subsections (c)(iii)(7)(a) and (c)(iii)(7)(b) shall be appropriately adjusted to
reflect any change of the type described in subsection (c)(iii)(7)(c).

                                      - 7 -

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                                    (e)      For purposes of Section 3,
securities (including Options or Convertible Securities) shall be deemed to be
issued on the earliest to occur of the grant, issuance, or sale of, or the
fixing of a record date with respect to the distribution or issuance of, such
securities.

         (d)      ADJUSTMENTS FOR CERTAIN DIVIDENDS AND DISTRIBUTIONS. In the
event that at any time or from time to time after the Series B Original Issue
Date, the Corporation shall make or issue, or fix a record date for the
determination of holders of Common Stock entitled to receive, a dividend or
other distribution payable in securities of the Corporation other than shares of
Common Stock, then and in each such event provision shall be made so that the
holders of Series B Preferred Stock shall receive upon conversion thereof, in
addition to the number of shares of Common Stock receivable thereupon, the
amount of securities of the Corporation that they would have received had their
Series B Preferred Stock been converted into Common Stock on the date of such
event and had they thereafter, during the period from the date of such event to
and including the actual conversion date, retained such securities receivable by
them as aforesaid during such period, giving application during such period to
all adjustments called for herein.

         (e)      ADJUSTMENT FOR RECLASSIFICATION, EXCHANGE OR SUBSTITUTION. In
the event that at any time or from time to time after the Series B Original
Issue Date, the Common Stock issuable upon the conversion of Series B Preferred
Stock shall be changed into the same or a different number of shares of any
class or classes of stock, whether by capital reorganization, reclassification,
or otherwise (other than a subdivision or combination of shares or stock
dividend provided for in Section 3(c)(ii) above, or a merger, consolidation, or
sale of assets provided for in Section 3(f) below) then and in each such event
the holder of any share or shares of Series B Preferred Stock shall have the
right thereafter to convert such shares into the kind and amount of shares of
stock and other securities and property receivable upon such reorganization,
reclassification, or other change, by the holder of a number of shares of Series
B Preferred Stock might have been converted immediately prior to such
reorganization, reclassification, or change, all subject to further adjustment
as provided herein.

         (f)      ADJUSTMENT FOR MERGER, CONSOLIDATION OR SALE OF ASSETS. In the
event that at any time or from time to time after the Series B Original Issue
Date, the Corporation shall sell all or substantially all of its assets or merge
or consolidate with or into another entity, each share of Series B Preferred
Stock shall thereafter be convertible into the kind and amount of shares of
stock or other securities or property to which a holder of the number of shares
of Common Stock of the Corporation deliverable upon conversion of Series B
Preferred Stock would have been entitled to receive upon such consolidation,
merger or sale; and, in such case, appropriate adjustment (as determined in good
faith by the Board of Directors) shall be made in the application of the
provisions set forth in this Section 3 with respect to the rights and interest
thereafter of the holders of Series B Preferred Stock, to the end that the
provisions set forth in this Section 3 (including provisions with respect to
changes in and other adjustments of the Series B Conversion Price) shall
thereafter be applicable, as nearly as reasonably may be, in relation to any
shares of stock or other property thereafter deliverable upon the conversion of
the Series B Preferred Stock.

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<PAGE>

         (g)      NO IMPAIRMENT. The Corporation shall not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, including, without limitation, voluntary bankruptcy
proceedings, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Corporation but shall at all
times in good faith assist in the carrying out of all the provisions of this
Section 3 and in the taking of all such actions as may be necessary or
appropriate in order to protect the conversion rights of the holders of the
Series B Preferred Stock under this Section 3 against impairment.

         (h)      CERTIFICATE AS TO ADJUSTMENT. Upon the occurrence of each
adjustment or readjustment of the Series B Conversion Price pursuant to this
Section 3, the Corporation at its expense shall promptly compute such adjustment
or readjustment in accordance with the terms hereof and furnish to each affected
holder of Series B Preferred Stock a certificate setting forth such adjustment
or readjustment and showing in detail the facts upon which such adjustment is
based; provided, however, that the Corporation shall not be required to provide
each holder with such a certificate more than one time per calendar quarter. The
Corporation shall, upon the written request at any time of any affected holder
of Series B Preferred Stock, furnish or cause to be furnished to such holder a
like certificate setting forth (i) such adjustments and readjustments, (ii) the
Series B Conversion Price in effect at the time, and (iii) the number of shares
of Common Stock and the amount, if any, of other property which at the time
would be received upon the conversion of each share of Series B Preferred Stock.

         (i)      NOTICES OF RECORD DATE. In the event of any taking by the
Corporation of a record date of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any
dividend (other than a cash dividend which is the same as cash dividends paid in
previous quarters) or other distribution, the Corporation shall deliver to each
holder of Series B Preferred Stock at least twenty days prior to such record
date a notice specifying the date on which any such record is to be taken for
the purpose of such dividend or distribution.

         (j)      COMMON STOCK RESERVE. The Corporation shall reserve and keep
available out of its authorized but unissued Common Stock such number of shares
of Common Stock as shall from time to time be sufficient to effect conversion of
the Series B Preferred Stock.

         (k)      CERTAIN TAXES. The Corporation shall pay any issue or transfer
taxes payable in connection with the conversion of Series B Preferred Stock,
provided, however, that the Corporation shall not be required to pay any tax
which may be payable in respect of any transfer to a name other than that of the
holder of the Series B Preferred Stock.

         (l)      CLOSING OF BOOKS. The Corporation shall at no time close its
transfer books against the transfer of any Series B Preferred Stock or of any
shares of Common Stock issued or issuable upon the conversion of any shares of
Series B Preferred Stock in any manner which interferes with the timely
conversion or permitted transfer of such Series B Preferred Stock or Common
Stock.

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         SECTION 4.        VOTING RIGHTS.

         (a)      Except as otherwise provided herein or as required by law, the
holders of the Series B Preferred Stock shall be entitled to notice of any
meeting of stockholders and shall vote together with the holders of the Series A
Preferred Stock and Common Stock as a single class upon any matter submitted to
the stockholders for a vote. Holders of Series B Preferred Stock shall have that
number of votes per share as is equal to the number of whole shares of Common
Stock into which each such share of Series B Preferred Stock held by such holder
could be converted on the date for determination of stockholders entitled to
vote at the meeting or on the date of any written consent.

         (b)      Notwithstanding any other provision of this Section 4, in the
event that it is determined by Nasdaq (after full process, including any appeal
process available to the Corporation) that the voting provisions set forth in
this Section 4 violate or conflict with Nasdaq Marketplace Rule 4351, the number
of votes to which each share of Series B Preferred Stock is entitled shall be
reduced to the extent required to comply with such rule.

         SECTION 5.        REDEMPTION.

         (a)      REDEMPTION AT OPTION OF THE HOLDER.

                  (i)      On or at any time following the earliest of:

                           (A)      a Change of Control (as defined below); and

                           (B)      the seventh anniversary of the Series B
                                    Original Issue Date.

then each holder of Series B Preferred Stock may elect to have the Corporation
redeem from it, to the extent the Corporation has funds legally available for
such purpose, and subject to Section 5(a)(iii), any or all shares of Series B
Preferred Stock held by such holder; provided, however, that if a Change of
Control occurs as a result of the acquisition by a holder of Series B Preferred
Stock or such holder's "affiliates" (as such term is defined in Rule 405 under
the Securities Act of 1933, as amended) of beneficial ownership of securities of
the Corporation representing more than 50% of the voting power of the
Corporation (whether such acquisition is made by such holder or such holder's
affiliates, individually or as a member of a "group" (as described in Rule
13d-5(b)(1) promulgated under the Securities Exchange Act of 1934)), such holder
shall not be entitled, as a result of such Change of Control, to require the
Corporation to redeem its or its affiliates Series B Preferred Stock pursuant to
this Section 5(a). Such election may be made only by delivering to the
Corporation (x) a written notice signed by such holder specifying the number of
shares of Series B Preferred Stock so to be redeemed, and (y) certificates for
the shares of the Series B Preferred Stock so to be redeemed, together with
stock powers therefor duty executed by such holder in blank (such written
election, certificates and stock powers being referred to collectively as
"Redemption Notice").

                  (ii)     The Corporation shall redeem from holders of Series B
Preferred Stock from whom the Corporation received a Redemption Notice, within
30 days of its receipt of such Redemption Notice, all the shares of the Series B
Preferred Stock as to which Redemption Notices have been given, to the extent
the Corporation has funds legally

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<PAGE>

available for such purpose, and subject to Section 5(a)(iii), by paying to the
respective holders the amount equal to (x) the number of shares of Series B
Preferred Stock submitted for redemption multiplied by (y)(i) the Liquidation
Preference, plus (ii) all accrued but unpaid dividends thereon to and including
the date of such redemption, whether or not declared.

                  (iii)    If the funds of the Corporation legally available for
redemption of shares of Series B Preferred Stock are insufficient to redeem the
total number of shares of Series B Preferred Stock submitted for redemption
pursuant to Redemption Notices, those funds which are legally available will be
used to redeem the maximum possible number of whole shares ratably among the
holders of such shares who have submitted Redemption Notices as of such date of
determination. The shares of Series B Preferred Stock not redeemed shall remain
outstanding and, notwithstanding anything herein to the contrary, shall remain
entitled to all rights and preferences otherwise provided herein.

         (b)      REDEMPTION AT THE OPTION OF THE CORPORATION.

                  (i)      On or at any time following the seventh anniversary
of the Series B Issue Date, the Corporation may redeem, in whole or in part, the
Series B Preferred Stock at a redemption price per share equal to the
Liquidation Preference as of the Redemption Date (the "Redemption Price");
provided, that the Corporation may not exercise such right of redemption unless:
(i) the Registration Statement (as defined below) is effective, (ii) the average
of the closing prices of the Common Stock as reported by The Nasdaq Stock Market
over the twenty consecutive trading-day period ending not more than five
business days prior to the date of the Corporation Notice (as defined below) is
greater than or equal to the product of (x) the Series B Conversion Price in
effect on the last day of such twenty consecutive trading-day period and (y)
2.50, and (iii) during the period beginning on the date of the Corporation
Notice (as defined below) and ending on the Redemption Date (as defined below)
(1) the Corporation shall not have received any request from the SEC or any
other federal or state governmental authority for amendments or supplements to
the Registration Statement or related prospectus or for additional information;
(2) no stop order suspending the effectiveness of the Registration Statement or
the initiation of any proceedings for that purpose shall have been issued by the
SEC or any other federal or state governmental authority; (3) the Corporation
shall not have received any notification with respect to the suspension of the
qualification or exemption from qualification of the Common Stock for sale in
any jurisdiction or the initiation of any proceeding for such purpose; and (4)
there shall not have occurred any event or circumstance which would necessitate
the making of any changes in the Registration Statement or related prospectus,
or any document incorporated or deemed to be incorporated therein by reference,
so that, in the case of the Registration Statement, it will not contain any
untrue statement of a material fact or any omission to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and that in the case of the related prospectus, it will not contain
any untrue statement of a material fact or any omission to state a material fact
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading. Any
redemption effected pursuant to this Section (5)(b)(i) shall be made on a pro
rata basis among the holders of the Series B Preferred Stock in proportion to
the number of shares of Series B Preferred Stock then held by them.

                                     - 11 -

<PAGE>

                  (ii)     The Corporation shall provide written notice (the
"Corporation Notice") by first class mail postage prepaid, to each holder of
record (determined at the close of business on the business day next preceding
the day on which the Corporation Notice is given) of the Series B Preferred
Stock to be redeemed, at the address last shown on the records of this
Corporation for such holder, notifying such holder of the redemption to be
effected, specifying the number of shares to be redeemed from such holder,
specifying the date of redemption (the "Redemption Date"), the Redemption Price,
the place at which payment may be obtained and calling upon such holder to
surrender to the Corporation, in the manner and at the place designated, his,
her or its certificate or certificates representing the shares to be redeemed;
provided that the Redemption Date shall be not less than 10 days from the date
of the Corporation Notice. Except as provided in Section (5)(b)(iii), on or
after the Redemption Date, each holder of Series B Preferred Stock to be
redeemed shall surrender to the Corporation the certificate or certificates
representing such shares, in the manner and at the place designated in the
Corporation Notice, and thereupon the Redemption Price of such shares shall be
payable to the order of the person whose name appears on such certificate or
certificates as the owner thereof and each surrendered certificate shall be
cancelled. In the event less than all the shares represented by any such
certificate are redeemed, a new certificate shall be issued representing the
unredeemed shares.

                  (iii)    From and after the Redemption Date, unless there
shall have been a default in payment of the Redemption Price, all rights of the
holders of shares of Series B Preferred Stock designated for redemption in the
Corporation Notice as holders of Series B Preferred Stock (except the right to
receive the Redemption Price without interest upon surrender of their
certificate or certificates) shall cease with respect to such shares, and such
shares shall not thereafter be transferred on the books of the Corporation or be
deemed to be outstanding for any purpose whatsoever. If the funds of the
Corporation legally available for redemption of shares of Series B Preferred
Stock on any Redemption Date are insufficient to redeem the total number of
shares of Series B Preferred Stock to be redeemed on such date, those funds
which are legally available will be used to redeem the maximum possible number
of such shares ratably among the holders of such shares to be redeemed based
upon their holdings of Series B Preferred Stock. The shares of Series B
Preferred Stock not redeemed shall remain outstanding and entitled to all the
rights and preferences provided herein. At any time thereafter when additional
funds of the Corporation are legally available for the redemption of shares of
Series B Preferred Stock, such funds will immediately be used to redeem the
balance of the shares which the Corporation has become obliged to redeem on any
Redemption Date but which it has not redeemed.

         (c)      DEFINITIONS.

                  (i)      "Change of Control" shall mean: (i) the acquisition
by any person or "group" (as described in Rule 13d-5(b)(1) promulgated under the
Securities Exchange Act of 1934), of beneficial ownership of securities of the
Corporation representing more than 50% of the voting power of the Corporation;
or (ii) a merger or consolidation of the Corporation or a sale of all or
substantially all of the assets of the Corporation in one or a series of related
transactions, unless following such transaction or series of transactions, the
holders of the Corporation's securities prior to the first such transaction
continue to hold at least a majority of the voting power of the surviving entity
or acquirer of such assets.

                                     - 12 -

<PAGE>

                  (ii)     "Registration Effective Date" shall mean the first
date on which the Registration Statement has been declared effective.

                  (iii)    "Registration Statement" shall mean the Corporation's
registration statement under the Securities Act of 1933, as amended, covering
the registration of (a) the shares of Common Stock issuable upon conversion of
the Series B Preferred Stock and (b) the shares of Common Stock issuable upon
exercise of the Warrants (as defined).

                  (iv)     "Warrants" shall mean, collectively, those Common
Stock Purchase Warrants to purchase shares of Common Stock to be issued pursuant
to the Securities Purchase Agreement by and among the Corporation and the other
parties thereto.

         (d)      NO REDEMPTION OF JUNIOR PREFERRED STOCK. So long as any shares
of Series B Preferred Stock are outstanding, the Corporation shall not redeem
any shares of Junior Preferred Stock or any other shares of Preferred Stock that
have liquidation or dividend rights that are subordinate to those of the Series
B Preferred Stock; provided, however, the foregoing shall not prohibit the
Corporation from redeeming shares of Series A Preferred Stock pursuant to
Section 5(a) of the Certificate of Designation of Series A Convertible Preferred
Stock as in effect on the Series B Original Issue Date (the "Series A
Certificate") if (x) a number of shares of Series B Preferred Stock equal to or
greater than 80% of the sum of the total number of shares of Series B Preferred
Stock (1) issued upon conversion of the Tranche I Notes (as defined in that
certain Securities Purchase Agreement, dated as of March 12, 2003, by and
between the Corporation and certain purchasers ("Securities Purchase
Agreement")), and (2) issued and, as of the date of such Change of Control,
issuable under the Sanmina Notes (as defined in the Securities Purchase
Agreement), and (3) without duplication, any other shares of Series B Preferred
Stock issued in connection with the Third Closing (as defined in the Securities
Purchase Agreement) and any other shares of Series B Preferred Stock issued on
the Series B Original Issue Date, have been either (1) redeemed, (2) submitted
for redemption pursuant to a redemption notice under Section 5 of this
Certificate of Designation and/or (3) converted into Common Stock pursuant to
Section 3 of this Certificate of Designation, and (y) the Corporation has
actually redeemed all shares of Series B Preferred Stock as to which a
redemption notice has been submitted to the Corporation.

         SECTION 6.        NOTICES. All notices, requests, consents, demands and
other communications required or permitted under this Series B Preferred Stock
Certificate of Designation shall be in writing and shall be deemed to have been
duly given, made and received (a) when delivered against receipt, (b) upon
transmitter's confirmation of the receipt of a facsimile transmission, which
shall be followed by an original sent otherwise in accordance with this Section
6, (c) upon confirmed delivery by a standard overnight carrier, or (d) if to a
U.S. resident, upon expiration of three business days after the day when
deposited in the U.S. mail, first class postage prepaid, addressed to the
Corporation at its principal executive office, or at such other address of which
the Corporation may notify the holders of Series B Preferred Stock from time to
time, or if to a holder of Series B Preferred Stock or Common Stock, to such
holder's address as shown by the records of the Corporation.

                                     - 13 -

<PAGE>

         SECTION 7.        STATUS OF REACQUIRED SHARES. Shares of Series B
Preferred Stock which have been issued and converted, redeemed or reacquired in
any manner shall (upon compliance with any applicable provisions of the laws of
the State of Delaware) have the status of authorized and unissued Preferred
Stock undesignated as to Series and may be redesignated and reissued.

         SECTION 8.        ISSUANCE OF ADDITIONAL SHARES OF SERIES B. Except as
required under the Securities Purchase Agreement, the Company may not issue
shares of the Series B Preferred Stock without the consent of a majority of the
shares of Series B Preferred Stock then outstanding.

                                     - 14 -

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