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&lt;p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;9. Commitments and
Contingencies&lt;/b&gt;&lt;/font&gt;&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;
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&lt;p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;i&gt;Legal
Matters&lt;/i&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The Company is, from time
to time, party to various legal proceedings arising in the ordinary
course of business. For example, the Company is currently named as
a defendant or co-defendant in a number of patent infringement
lawsuits in the U.S. and is indirectly participating in other U.S.
patent infringement actions pursuant to its contractual
indemnification obligations to certain customers. Based on
evaluation of these matters and discussions with Company&amp;#x2019;s
intellectual property litigation counsel, the Company believes that
potential liabilities arising from or sums paid in settlement of
these existing matters would not have a material adverse effect on
its consolidated results of operations or financial
condition.&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;On September&amp;#xA0;15, 2008
and September&amp;#xA0;18, 2008, two putative securities class action
lawsuits were filed in the United States District Court for the
Southern District of California on behalf of persons who allegedly
purchased our stock between February&amp;#xA0;5, 2007 and
August&amp;#xA0;19, 2008. On December&amp;#xA0;11, 2008, these lawsuits
were consolidated into a single action entitled &lt;i&gt;Backe v. Novatel
Wireless, Inc., et al.&lt;/i&gt;, Case No.&amp;#xA0;08-CV-01689-H (RBB)
(Consolidated with Case No.&amp;#xA0;08-CV-01714-H (RBB)) (U.S.D.C.,
S.D. Cal.). In May 2010, the district court re-captioned the case
&lt;i&gt;In re Novatel Wireless Securities Litigation&lt;/i&gt;. The plaintiffs
filed the consolidated complaint on behalf of persons who allegedly
purchased our stock between February&amp;#xA0;27, 2007 and
November&amp;#xA0;10, 2008. The consolidated complaint names the
Company and certain of our current and former officers as
defendants. The consolidated complaint alleges generally that we
issued materially false and misleading statements during the
relevant time period regarding the strength of our products and
market share, our financial results and our internal controls. The
plaintiffs are seeking an unspecified amount of damages and costs.
The court has denied defendants&amp;#x2019; motions to dismiss. In May
2010, the court entered an order granting the plaintiffs&amp;#x2019;
motion for class certification and certified a class of purchasers
of our common stock between February&amp;#xA0;27, 2007 and
September&amp;#xA0;15, 2008. On February&amp;#xA0;14, 2011, following
extensive discovery, we filed a motion for summary judgment on all
of plaintiffs&amp;#x2019; claims. A trial date had been set for
May&amp;#xA0;10, 2011. On March&amp;#xA0;15, 2011, the case was reassigned
to a new district judge, the Honorable Anthony J. Battaglia.
Following the reassignment, the court vacated the trial date
pending the court&amp;#x2019;s consideration of dispositive motions.
Oral argument on the motion for summary judgment was heard by the
court on June&amp;#xA0;17, 2011. On November&amp;#xA0;23, 2011, the court
issued an order granting in part and denying in part the motion for
summary judgment. On July&amp;#xA0;9, 2012, the court vacated the final
pretrial conference date. On December&amp;#xA0;14, 2012, the court
issued an order denying defendants&amp;#x2019; motion to exclude the
testimony of plaintiffs&amp;#x2019; loss causation expert. The court set
a pretrial conference for March&amp;#xA0;8, 2013 and a trial date of
June&amp;#xA0;3, 2013. On February&amp;#xA0;7, 2013, the court reconsidered
its December&amp;#xA0;14, 2012 order and granted defendants&amp;#x2019;
motion to exclude plaintiffs&amp;#x2019; expert on loss causation. The
court, however, gave plaintiffs the opportunity to provide a new
report from the expert seeking to cure the deficiencies in the
expert&amp;#x2019;s testimony. The court provided a schedule for the
cure process and ordered plaintiffs to bear the burden of
defendants&amp;#x2019; expenses incurred in this process. The plaintiffs
moved for reconsideration of the court&amp;#x2019;s February&amp;#xA0;7,
2013 order. On March&amp;#xA0;6, 2013, the court denied the
plaintiffs&amp;#x2019; motion for reconsideration with respect to the
plaintiffs&amp;#x2019; expert report, but granted the motion with
respect to shifting the costs of the defendants&amp;#x2019; expenses.
The parties have briefed the court on this issue. On July 30, 2013,
the court issued an amended scheduling order setting the pretrial
conference for November 21, 2013 and a trial date of
January&amp;#xA0;6, 2014. The Company intends to defend this litigation
vigorously. At this time, there can be no assurance as to the
ultimate outcome of this litigation. We have not recorded any
significant accruals for contingent liabilities associated with
this matter based on our belief that a liability, while possible,
is not probable. Further, any possible range of loss cannot be
estimated at this time.&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;On September&amp;#xA0;24, 2010,
NovAtel, Inc., a Canadian company (&amp;#x201C;NovAtel Canada&amp;#x201D;)
filed a trademark infringement lawsuit entitled &lt;i&gt;NovAtel, Inc. v.
Novatel Wireless Technologies, Ltd., et al&lt;/i&gt;, Action
No.&amp;#xA0;1001-14265 in the Court of Queens Bench of Alberta Canada,
Judicial District of Calgary. The Statement of Claim alleges that
Novatel Wireless Technologies, Ltd., Novatel Wireless Solutions,
Inc. and Novatel Wireless, Inc., or collectively, the Company, are
infringing NovAtel Canada&amp;#x2019;s purported rights in the
&amp;#x201C;Novatel&amp;#x201D; trademark in breach of a settlement agreement
between NovAtel Canada and the Company. The parties resolved all
claims alleged in this matter without any payment by the Company.
The matter was dismissed on March&amp;#xA0;12, 2013.&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;i&gt;Indemnification&lt;/i&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;In the normal course of
business, the Company periodically enters into agreements that
require the Company to indemnify and defend its customers for,
among other things, claims alleging that the Company&amp;#x2019;s
products infringe third-party patents or other intellectual
property rights. The Company&amp;#x2019;s maximum exposure under these
indemnification provisions cannot be estimated but the Company does
not believe that there are any matters individually or collectively
that would have a material adverse effect on its financial
condition, results of operation or cash flows.&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The Company recorded
approximately $756,000 during the three and six months ended
June&amp;#xA0;30, 2013 related to settlements on legal
matters.&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
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