Document:

<PAGE>   1

                                                                   EXHIBIT 10.14

                         TRANSITION SERVICES AGREEMENT

       THIS TRANSITION SERVICES AGREEMENT ("Agreement") entered into with effect
as of the ______ day of March, 2000 (the "Effective Date").

       BY AND BETWEEN:

              NORTEL NETWORKS NA INC., a Delaware corporation and a wholly-owned
              subsidiary of Nortel Networks Inc. ("NNI"), with offices located
              at 4401 Great America Parkway, Santa Clara, CA 95052 on behalf of
              itself and its Affiliates (hereinafter referred to as "NNNAI"),

       AND:

              NETGEAR, INC., a corporation organized and existing under the laws
              of Delaware, with offices located at 4401 Great America Parkway,
              Santa Clara, CA 95052 (hereinafter referred to as "NETGEAR").

                                    RECITALS:

       WHEREAS, prior to the Effective Date, NETGEAR was a wholly-owned
subsidiary of NNNAI; and

       WHEREAS, until the Effective Date, NNNAI, together with its parent
companies NNC and NNI (collectively, "Nortel Networks"), have provided
administrative, financial, management and other services to NETGEAR; and

       WHEREAS, from and after the Effective Date, NETGEAR desires Nortel
Networks to continue to provide management, consulting and financial services to
NETGEAR and Nortel Networks is willing to provide such services to NETGEAR on
the terms and subject to the conditions set forth herein;

       NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

                                    SECTION 1
                               TRANSITION SERVICES

       1.1 DEFINITIONS

       Unless otherwise defined herein, capitalized terms used herein have the
meanings ascribed to such terms in the Purchase Agreement.

       "Affiliate" means any person or entity directly or indirectly
controlling, controlled by or under direct or indirect common control with,
another person or entity.

                                       1
<PAGE>   2

       "Services" means (i) the services described on Schedule 1.1 attached
hereto, (ii) such other services as may be agreed to in writing from time to
time by NETGEAR and Nortel Networks, as evidenced by an amendment to Schedule
1.1 attached hereto pursuant to Section 8.11 (Amendment) hereof; and (iii) the
Services, with such modifications as are required to reflect changes in Nortel
Networks' procedures, policies and services as described in Section 1.6(c)
(Policies and Procedures) hereof, whether or not evidenced by an amendment.
NETGEAR may unilaterally elect to terminate some or all of the Services, by
delivering written notice to Nortel Networks of its desire to terminate, not
less than thirty (30) days prior to the effective date of such termination.

       1.2 PARTIES

       For the convenience of the parties hereto, and/or for more favorable tax
treatment or any other reason, the parties agree that the delivery and
acceptance, respectively, of Services under this Agreement may be made directly
by the parties hereto, and/or indirectly through an Affiliate of such party. In
any instance where a particular Service hereunder is to be either delivered or
accepted by an Affiliate instead of a party hereto, a blanket work order with
respect to such Service substantially in the form of Exhibit A hereto (an
"Order"), shall be executed by NETGEAR (or Affiliate of NETGEAR, as applicable)
and accepted by Nortel Networks (or an Affiliate of Nortel Networks, as
applicable). The entities that issue and accept any such Order shall, upon such
issuance and acceptance, become parties to this Agreement as of such date, as
fully and completely as if they had executed this Agreement on the date hereof.
Such Order shall create contractual rights and obligations under this Agreement
solely between the entity that issues such Order and the entity that accepts it.
Additionally, in the case of Nortel Networks, certain Services may be provided
by a third-party provider with whom Nortel Networks or a Nortel Networks
Affiliate has contracted for such Service. In such instances, Nortel Networks or
the Nortel Networks Affiliate who has contracted with such third-party provider
shall be the party to this Agreement that is deemed to be providing such Service
through its third-party subcontractor.

       1.3 AGREEMENT TO PROVIDE SERVICES

       Subject to the terms and conditions hereof, during the Term (as
hereinafter defined), NETGEAR hereby engages Nortel Networks, and Nortel
Networks hereby accepts such engagement, to provide Services to NETGEAR, either
directly or through an Affiliate as provided in Section 1.2 (Parties). NETGEAR
acknowledges and agrees that access to and use of the Services is provided
solely for the use of NETGEAR (or its Subsidiaries or Affiliates pursuant to an
Order) during the Term of the Agreement. NETGEAR shall not allow access to or
use of Services by any third party without the prior written consent of Nortel
Networks, which consent may be granted or withheld in Nortel Networks' sole
discretion. NETGEAR shall use its best efforts to become independent of Nortel
Networks with respect to each of the Services as soon as commercially
practicable.

                                       2
<PAGE>   3

       1.4 TERMINATION TEAM

       Nortel Networks and NETGEAR shall each appoint an employee to be
responsible for planning the process through which NETGEAR will become
independent of Nortel Networks with respect to each of the Services by no later
than the end of the Term (or such earlier date as may be specified on Schedule
1.1), through NETGEAR providing the service for itself or directly engaging
third parties to provide such services. These individuals (the "Termination
Team") shall meet no less frequently than monthly.

       1.5 PERIODIC REVIEW

       NETGEAR and Nortel Networks agree to jointly review the status of the
Termination Team's efforts, the Services and fees listed on Schedule 1.1 on a
regular basis, but in no event less frequently than quarterly. If such review
indicates that amendments are necessary, as a result of changes in scope,
volume, frequency or nature of the Services requested or otherwise, and such
proposed amendments are agreeable to both parties, such amendments shall be
implemented pursuant to Section 9.11 (Amendments) hereof.

       1.6 LIMITATIONS

       Nortel Networks and/or NETGEAR agree as follows, as applicable, and
NETGEAR hereby acknowledges the following limitations with respect to Nortel
Networks' provision of the Services:

              1.6.1 MANNER OF PERFORMANCE

              Nortel Networks agrees that it will endeavor to perform the
              Services hereunder with the same degree of care, skill and
              diligence with which it performs similar services for itself,
              consistent with past practices, including, without limitation,
              with respect to the type, quality and timeliness of such services,
              subject to variation in the provision of such Services that may be
              inherent in the plan of Services requested by NETGEAR hereunder
              (including without limitation, where a service related to any
              Service to be provided hereunder is provided by NETGEAR for itself
              or by a third party, or differences in quality and timeliness, if
              any, that may be caused by a Firewall (as defined herein.) Other
              than the foregoing, Nortel Networks makes no representations or
              warranties hereunder with respect to any Service, including
              without limitation any warranty of noninfringement.

              1.6.2 AVAILABILITY OF SERVICES

              If Nortel Networks shall cease to provide a particular Service for
              itself, Nortel Networks may cease to provide such similar
              Service(s) to NETGEAR, effective as of the later of (i) the time
              that Nortel Networks ceases to provide such Service for itself, or
              (ii) following thirty (30) days' notice to NETGEAR. NETGEAR
              acknowledges that the demand for Services may exceed Nortel
              Networks' available capacity to provide such Services, making it
              necessary for Nortel

                                       3
<PAGE>   4

              Networks to prioritize requests for Services or take other steps
              to manage efficiently the provision of such Services. The
              management of the Services shall be left to the reasonable
              judgment of Nortel Networks, provided, however, that, in
              prioritizing requests for services, Nortel Networks shall, in the
              ordinary course, consider the needs of NETGEAR to be no less
              important than its own needs or the needs of its Affiliates.

              1.6.3 POLICIES OR PROCEDURES

              The Services will be provided by Nortel Networks in accordance
              with Nortel Networks' policies and procedures. NETGEAR agrees to
              abide by such policies and procedures, which may change from time
              to time. Nortel Networks reserves the right to make corresponding
              changes to the Services provided hereunder. Any such change shall
              be evidenced as soon as practicable by an amendment to Schedule
              1.1 pursuant to Section 9.11 (Amendments) hereof, to the extent an
              amendment is deemed necessary by Nortel Networks or NETGEAR. When
              changes permitted under this Section 1.6.3 are made to the
              Services, such Services, as changed, shall immediately be subject
              to the provisions of this Agreement and deemed to be "Services"
              for all purposes hereunder, whether or not such changes are ever
              evidenced by an amendment to this Agreement and/or its Schedules.

              1.6.4 NEW AGREEMENTS; AMENDMENTS TO EXISTING AGREEMENTS

              NORTEL Networks' obligation to provide Services under this
              Agreement shall not be deemed to require Nortel Networks to enter
              into any new agreements or amendments to existing agreements
              (including without limitation supply, leasing or licensing
              agreements), or make any additional purchases, solely to provide
              Services to NETGEAR. However, if Nortel Networks or a Nortel
              Networks Affiliate elects to enter into any such new agreement or
              an amendment to an existing agreement specifically to provide
              Services to NETGEAR, the costs of such agreement or amendment that
              are allocable to the provision of Services to NETGEAR will be
              charged to NETGEAR.

              1.6.5 TECHNOLOGY AND IMPROVEMENTS

                     (i)    Nortel Networks Technology.

                     Except as may be provided in the Intellectual Property
                     License Agreement between Nortel Networks and NETGEAR dated
                     as of March _, 2000, any Nortel Networks processes,
                     techniques, hardware, software, copyrights, patents,
                     practices or other technical or proprietary matter related
                     to, arising from, or used in connection with, the
                     performance of the Services ("Technology"), and any
                     improvement, modification or new development in the
                     Technology ("Improvement"), shall be the sole and exclusive
                     property of Nortel

                                       4
<PAGE>   5

                     Networks. To the extent necessary to give effect to the
                     foregoing, upon Nortel Networks' request, NETGEAR shall
                     promptly, and cause its employees, agents and contractors
                     to promptly: (a) disclose all information and provide
                     copies of all documents relating to such Improvement to
                     Nortel Networks; (b) assign all right, title and interest
                     in any such Improvement to Nortel Networks; and (c) execute
                     such documents and do such other acts as Nortel Networks
                     may reasonably request.

                     (ii)   Third Party Technology.

                     NETGEAR acknowledges that the provision of Services may
                     require that NETGEAR have access to software licensed by
                     Nortel Networks or a Nortel Networks Affiliate from a third
                     party. Accordingly, Nortel Networks, to the extent of its
                     legal right so to do, if any, hereby grants to NETGEAR a
                     sublicense under rights Nortel Networks or a Nortel
                     Networks Affiliate may have, if any, in such third party
                     software, but only to the extent necessary to effect the
                     provision of Services hereunder. Nothing herein shall
                     require Nortel Networks or a Nortel Networks Affiliate to
                     acquire additional rights to sublicense such rights from
                     any third party. NETGEAR shall indemnify and hold harmless
                     Nortel Networks and its Affiliates from any and all claims
                     and liabilities (including legal fees and expenses) arising
                     out of NETGEAR'S use of such third party software.

       1.7 INSURANCE

       Services related to insurance shall be provided for the types of
insurance specified on Schedule 1.7, but only so long as Nortel Networks
continues to own in excess of fifty percent (50%) of the equity of NETGEAR on a
fully-diluted basis. After such time, NETGEAR shall be responsible for obtaining
its own insurance. This Section 1.7 constitutes notice to NETGEAR from Nortel
Networks with respect to these matters, and NETGEAR shall mark its records
accordingly and be responsible for obtaining replacement insurance policies at
the proper time.

                                    SECTION 2

                    TERM OF AGREEMENT; DEFAULT; TERMINATION

       2.1 TERM AND TERMINATION

       The term ("Term") of this Agreement shall commence on the date hereof and
continue until termination. The Agreement shall terminate upon the earliest to
occur of the following: (a) mutual agreement of the parties; (b) six months from
the Effective Date; (c) the occurrence and continuation of a Default by one
party, and the delivery by the non-defaulting party to the defaulting party of a
written demand for termination; (d) Nortel Networks' termination of this
Agreement pursuant to Section 2.2 hereof; (e) NETGEAR'S written notification of
its desire for

                                       5
<PAGE>   6

termination of all of the Services, pursuant to the provisions of Section 1.1
hereof; or (f) the cancellation or termination of all of the Services as
provided in Section 5.2 (Remedies);

       2.2 TERMINATION BY NORTEL NETWORKS

       In addition to the grounds for termination set forth in Section 2.1 (Term
and Termination) hereof, this Agreement may be terminated by Nortel Networks in
its sole discretion in the event of (i) the sale of all or substantially all of
the assets or capital stock of NETGEAR to any of the entities set forth on
Schedule 2.2, (ii) a merger with any of the entities set forth on Schedule 2.2
in which NETGEAR is not the surviving corporation, or (iii) an assignment by
NETGEAR, without the prior written consent of Nortel Networks, of NETGEAR'S
rights under this Agreement to an affiliate or subsidiary in which any of the
entities set forth on Schedule 2.2 is, directly or indirectly, a 5% or greater
shareholder. NETGEAR shall promptly notify Nortel Networks of any such sale,
merger or intended assignment, and if Nortel Networks elects to terminate this
Agreement, it shall so notify NETGEAR and such termination shall be effective
upon NETGEAR'S receipt of such notice.

       2.3 EFFECT OF TERMINATION

       Upon termination of this Agreement by either Party:

              (a) NETGEAR shall pay all undisputed amounts or charges owed to
              Nortel Networks as provided in this Agreement, provided that
              NETGEAR shall have the right to set-off any amounts or charges
              owed to Nortel Networks against any amounts owing to NETGEAR by
              Nortel Networks pursuant to this Agreement. In the event that the
              aggregate amount owing by Nortel Networks to NETGEAR is less than
              the aggregate amount owing by NETGEAR to Nortel Networks, NETGEAR
              shall pay the net amount in full within forty-five (45) days of
              termination.

              (b) Nortel Networks shall complete all partially completed
              Services and shall then cease to provide Services hereunder.
              Provided NETGEAR has made all payments required pursuant to
              paragraph (a) above, Nortel Networks shall deliver to the
              locations designated by NETGEAR within three (3) weeks of the date
              of termination, all deliverables, if any, with respect to such
              Services, in exchange for payment by NETGEAR of all amounts due
              with respect to such Services.

              (c) NETGEAR shall return all Nortel Networks Confidential
              Information (as defined in Section 7.1 (Confidential Information),
              and property furnished by Nortel Networks to NETGEAR hereunder to
              the locations designated by Nortel Networks, and under Nortel
              Networks' supervision, destroy or erase all copies of such Nortel
              Networks Confidential Information in the possession of NETGEAR or
              any Affiliate thereof or any of their respective employees,
              consultants, agents, representatives, contractors or
              subcontractors, including copies on paper or other hard copy and
              copies on computer or other storage media.

                                       6
<PAGE>   7

       2.4 DEFAULT

              (a) Either party shall be deemed to be in default (such defaults,
              together with the defaults described in Section 2.4(b), each a
              "Default") hereunder upon the occurrence of any one or more of the
              following events with respect to it:

                     (i) Failure to perform or fulfill any obligation or
                     condition of this Agreement to be performed or fulfilled by
                     such party, if such failure continues for thirty (30) days
                     (or such longer period of time as is agreed by the parties
                     to be reasonably necessary to allow such party to so
                     perform or observe such obligation) after written notice
                     thereof is given by the other party; or

                     (ii) The making of any general assignment or arrangement
                     for the benefit of creditors, the filing of a voluntary or
                     involuntary petition in bankruptcy by or against such party
                     under any bankruptcy or insolvency law or similar
                     proceeding, the appointment of a trustee or receiver or the
                     commencement of a similar proceeding to take possession of,
                     or the attachment or other judicial seizure of,
                     substantially all of such party's assets, or the taking by
                     such party of any action in furtherance of the foregoing.

              (b) NETGEAR shall be deemed to be in default hereunder if it fails
              to make any payment when due hereunder, if such failure continues
              for thirty (30) days after such payment was due, unless such
              payment is being actively contested in good faith by NETGEAR.

       2.5 SURVIVAL

       Notwithstanding any termination of this Agreement, (i) the terms of
Sections 1.6.5 (Technology & Improvements), Section 4 (Fees, Expenses and
Invoices), Section 5 (Exculpation and Indemnity), Section 9.2 (Governing Law)
and Section 7.4 (Irreparable Harm; Remedies) and this Section 2.5 shall survive
any such termination; and (ii) any outstanding payment obligations of NETGEAR to
Nortel Networks, and all provisions of this Agreement relating to payment of
amounts due, shall survive any such termination, until all such sums are paid in
full.

                                    SECTION 3
                                     RECORDS

       Nortel Networks shall keep and maintain books and records related
directly to the performance of the Services, at a summary level, consistent with
its customary accounting and business practices. Upon NETGEAR'S written request
and at NETGEAR'S expense, Nortel Networks shall keep and maintain books and
records at a greater level of detail. At NETGEAR'S request, Nortel Networks
shall provide NETGEAR with access to such records for the purpose of copying
and/or auditing them, during normal business hours at Nortel Networks' offices.
Upon termination of this Agreement and payment of all amounts due hereunder,
Nortel

                                       7
<PAGE>   8

Networks shall, at NETGEAR'S request, transfer to NETGEAR historical data of
NETGEAR relating to the Services, so long as NETGEAR has paid all amounts due
hereunder.

                                    SECTION 4
                           FEES, EXPENSES AND INVOICES

       4.1 FEES

       In consideration for its performance of the Services, NETGEAR shall pay
to Nortel Networks (or, if applicable and so requested by Nortel Networks, the
Nortel Networks Affiliate or third party that performed the Service), the fees
set forth in Schedule 1.1.

       4.2 EXPENSES

       Except for those expenses which are otherwise covered by the fees set
forth in Schedule 1.1, NETGEAR shall reimburse Nortel Networks (or, if
applicable and so requested by Nortel Networks, the Nortel Networks Affiliate or
third party that paid such expense) for (i) reasonable out-of-pocket expenses
incurred by and paid by such Service provider, including but not limited to
travel and lodging expenses incurred pursuant to NETGEAR'S request, (ii) amounts
expended with respect to claims and litigation pertaining to the Services
(including settlement costs and reasonable expenses associated therewith, such
as attorneys' fees and expenses and court costs), (iii) the expenses
attributable to constructing, on behalf of Nortel Networks and/or NETGEAR, a
Firewall pursuant to Section 7.3 hereof, and (iv) any other fees or expenses
that NETGEAR has agreed to pay pursuant to this Agreement.

       4.3 INVOICES

       Nortel Networks shall submit or cause to be submitted to NETGEAR invoices
for the fees and expenses due pursuant to this Agreement approximately thirty
(30) days after such fees and expenses have been incurred. Each invoice shall:
(i) identify the applicable Services to which the invoice relates, (ii) provide
summary details of the fees payable for each such Service and (iii) specify the
total amount payable, to whom such amounts are payable, and certain taxes as
specified in Section 4.5. All invoices for amounts payable hereunder shall be
due and payable thirty (30) days from the date of the applicable invoice.

       4.4 DISPUTED INVOICES

       In the event that NETGEAR disputes the amount of any invoice or portion
thereof, NETGEAR shall pay the undisputed portion of such invoice and shall send
to Nortel Networks along with such payment a written notice of such dispute.
Within ten (10) business days of Nortel Networks' receipt of such notice, and
for a period of ten (10) business days (or such longer period as shall be
agreeable to the parties), Norte] Networks shall make available to NETGEAR or
its designee, during normal business hours at a location designated by Nortel
Networks, all documentation in the possession of Nortel Networks or a Nortel
Networks Affiliate reasonably necessary to enable NETGEAR to review the invoice,
the data on which it was based and the methods by which amounts due were
computed or determined. If, upon completion of such review, Nortel Networks and
NETGEAR are not in agreement as to the amount of the

                                       8
<PAGE>   9

invoice, the dispute shall be referred to a nationally-recognized firm of
certified public accountants agreed to by the parties, for a final binding
decision as to the correct amount. Such amount shall be paid by NETGEAR to
Norte] Networks within five (5) business days of notification to NETGEAR of such
amount.

       4.5 TAXES

       The fees for the Services set forth in Schedule 1.1 hereof are exclusive
of taxes. NETGEAR shall withhold the amount of any tax required to be withheld
from payments made to any provider of Services pursuant to this Agreement. To
assist in obtaining any tax credits for the amounts withheld from payments made
by NETGEAR hereunder, NETGEAR shall promptly furnish to such service provider
such evidence as may be required by the applicable taxing authorities to
establish that any such tax has been paid. NETGEAR shall pay to any provider of
Services hereunder the amount of any applicable sales, use or service tax,
value-added taxes, goods and services taxes or any other similar taxes that such
service provider may be required to collect because of its performance under or
in connection with this Agreement (except for any franchise tax, withholding tax
(as described above or any tax imposed on such service provider's net income).
Nortel Networks shall identify any such tax as a separate line item on each
invoice (unless taxes are required under the law of the relevant jurisdiction to
be included in the price).

                                    SECTION 5
                     EXCULPATION; INDEMNIFICATION; REMEDIES

       5.1 Except as set forth in Section 1.6.1 (Manner of Performance), NETGEAR
acknowledges that Nortel Networks has made, and makes, no representations or
warranties of any nature, directly or indirectly, express or implied, regarding
the Services. Without limiting the generality of the foregoing, there are no
warranties of merchantability or fitness for a particular purpose, express or
implied, given by Nortel Networks, and no warranties with respect to software
owned or licensed by Nortel Networks. NETGEAR specifically waives all rights to
make any claim against Nortel Networks for breach of any other warranty of any
kind whatsoever in connection with the Services.

              NETGEAR AGREES THAT NORTEL NETWORKS SHALL NOT BE LIABLE TO NETGEAR
              FOR ANY INDIRECT, SPECIAL, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL
              LOSSES OR DAMAGES, INCLUDING WITHOUT LIMITATION, LOSS OF DATA,
              LOSS OF REVENUE, LOSS OF CUSTOMERS OR CLIENTS, LOSS OF GOODWILL OR
              LOSS OF PROFITS, DAMAGE TO OR LOSS OF USE OF ANY PROPERTY, ANY
              INTERRUPTION OR LOSS OF SERVICE, OR ANY LOSS OF BUSINESS,
              HOWSOEVER CAUSED, OR ARISING IN ANY MANNER FROM THIS AGREEMENT AND
              THE PERFORMANCE OR NONPERFORMANCE OF OBLIGATIONS HEREUNDER.

                                       9
<PAGE>   10

       5.2 NETGEAR'S Remedies

       Regardless of the nature of any claim or the form of any action that may
be brought against Nortel Networks by NETGEAR as a result of or arising out of
actions, errors or omissions of Nortel Networks in failing to provide the
Services in the manner described in Section 1.6.1 (Manner of Performance)
("Defective Service"), NETGEAR'S sole remedy in such instance shall be (i) to
demand that Nortel Networks provide the Service in the manner described in
Section 1.6.1, whereupon Nortel Networks shall in good faith attempt to provide
the Services in such manner, or, (ii) if such Service cannot, for any reason
except force majeure as described in Section 9.10 hereof, be provided in such
manner, Nortel Networks' reimbursement to NETGEAR for any payment made by
NETGEAR for Defective Service, or, if such Defective Service has not yet been
paid for by NETGEAR, the cancellation of any obligation of NETGEAR to pay the
fees for such Defective Service and any expenses related thereto (at which time,
the obligation of Nortel Networks to provide such Service shall be cancelled).
If any Service is unsatisfactory to NETGEAR, though provided by Norte] Networks
in the manner described in Section 1.6.1, NETGEAR'S sole remedy shall be
termination of such Service after payment of all amounts due hereunder. Except
as set forth in this Section 5.2, Nortel Networks shall have no other liability
whatsoever with respect to the performance of the Services hereunder or
otherwise in connection with this Agreement.

       5.3 THIRD PARTY INDEMNITY

       This Agreement is for the sole and exclusive benefit of the parties, and
it shall not be deemed to be for the direct or indirect benefit of any other
person or entity, including without limitation either party's customers,
suppliers or employees. NETGEAR shall indemnify and hold harmless Nortel
Networks, and its Affiliates and each of their respective officers, directors,
employees, managers, partners and agents, against and from any liability, loss,
damage, cost and expense (including attorneys' fees and costs of litigation)
(collectively, "Losses") arising out of or in connection with any claim or
action that any person or entity (other than NETGEAR) may make or file against
Nortel Networks or its officers, directors, employees, managers, partners or
agents in connection with this Agreement or the Services, regardless of the
standard of negligence or culpability alleged,

                                    SECTION 6
                             INDEPENDENT CONTRACTOR

       In performing the Services hereunder, Nortel Networks shall operate as
and have the status of an independent contractor, subject only to the general
direction of NETGEAR regarding the Services to be rendered, as opposed to the
method of performance of such Services. No party's employees shall be considered
employees or agents of the other party, nor shall the employees of any party be
eligible or entitled to any benefits, perquisites or privileges given or
extended to any of the other party's employees. Nothing contained in this
Agreement shall be deemed or construed to create a joint venture or partnership
between the parties. No party shall have any power to control the activities
and/or operations of the other party. No party shall have any power or authority
to bind or commit any other party. NETGEAR shall indemnify and hold Nortel
Networks or any Nortel Networks Affiliate free and harmless from all losses,
damages,

                                       10
<PAGE>   11

liabilities and costs (including, without limitation, legal fees and
disbursements) and amounts agreed upon in settlement or awarded in connection
with any claim, suit or proceeding relating to the foregoing.

                                    SECTION 7
                           CONFIDENTIALITY AND ACCESS

       7.1 CONFIDENTIAL INFORMATION

       NETGEAR acknowledges that the procedures, operations, processes, computer
programs and facilities used by Nortel Networks or its Affiliates in performing
the Services are proprietary to Nortel Networks (and/or its Affiliates and/or
third party suppliers), have been established and maintained at great expense,
are protected as confidential information and trade secrets, are of great value
to Nortel Networks and provide Nortel Networks with a substantial competitive
advantage in its business. Any information of either party to this Agreement
provided to or accessible by the other party in connection herewith, regardless
of form, including, but not limited to all data, processes, technical drawings,
designs and concepts; software programs, routines, formulae and concepts,
production plans, designs, layouts and schedules; marketing analyses, plans,
customer data and surveys; all matters relating to either party's finances and
personnel and any other information ("Confidential Information") shall be
received and held in strict confidence, used only for purposes related to this
Agreement and shall not otherwise be disclosed by the other party, its agents,
employees, contractors or subcontractors, without the prior written consent of
the other party. "Confidential Information" as defined herein does not include
any information (i) lawfully received from another source free of restriction
and without breach of this Agreement, (ii) that becomes generally available to
the public without breach of this Agreement, (iii) known to the receiving party
at the time of disclosure free from any confidentiality obligations, or (iv)
independently developed by the receiving party without resort to such
confidential or proprietary information. All Confidential Information in
tangible form shall be returned to the disclosing party upon its request. Upon
either party's written request, the other party shall cause each of its agents,
employees, contractors or subcontractors who will have access to the
Confidential Information to sign a written agreement setting forth his or her
individual confidentiality obligations, substantially in the form of Exhibit B,
which Exhibit B is attached hereto and incorporated herein by reference. All
Confidential Information shall be owned and remain the sole and exclusive
property of the disclosing party, and all rights to Confidential Information
shall be held in trust by the other party. Each party shall take reasonable
precautions to prevent the unauthorized disclosure to outside parties of such
information, except as may be necessary by reason of legal or regulatory
requirements beyond the reasonable control of the recipient party.

       7.2 ACCESS

       NETGEAR agrees that it shall, without charge, provide Nortel Networks (or
any Nortel Networks Affiliate or third party service provider) with such access
to NETGEAR'S premises and/or personnel, and such assistance as may reasonably be
required for Nortel Networks to perform its obligations under this Agreement. If
NETGEAR has access (either on-site or remotely) to any of Nortel Networks'
computer systems in relation to the Services, NETGEAR

                                       11
<PAGE>   12

shall limit such access solely to the use of such systems for purposes of the
Services and shall not access or attempt to access any of Nortel Networks'
computer systems, files, software or services other than those required for the
Services, or those that are publicly available (e.g. public websites). NETGEAR
shall limit such access to those of its employees, agents or contractors with a
bona fide need to have such access in connection with the Services, and shall
follow all of Nortel Networks' security rules and procedures for restricting
access to its computer systems. All user identification numbers and passwords
disclosed to NETGEAR and any information obtained by NETGEAR as a result of
NETGEAR'S access to and use of Nortel Networks' computer systems shall be deemed
to be, and treated as, Nortel Networks' confidential information hereunder.
Nortel Networks and NETGEAR shall cooperate in the investigation of any apparent
unauthorized access to any Nortel Networks computer system. These provisions
concerning computer access shall apply equally to any access and use by NETGEAR
of Nortel Networks' electronic mail system, Nortel Networks' electronic switched
network, either directly or via a direct inward service access (DISA) feature,
or any other property, equipment or service of Nortel Networks, and any third
party software not proprietary to Nortel Networks but that may be accessible by
NETGEAR in connection with this Agreement.

       7.3 FIREWALL PROTECTION

       Notwithstanding anything to the contrary in Section 7.2 (Access) hereof,
prior to Nortel Networks' performance of certain Services, action must be taken
to insulate one party's and/or its Affiliates' operations, assets, proprietary
information, software or data from that of the other party and/or its Affiliates
(such insulation being referred to hereinafter as a "Firewall"). Nortel Networks
shall give notice to NETGEAR indicating what aspects of each party's business
need to be isolated, the nature of the activities necessary to accomplish such
isolation and the expected time and cost involved. Unless NETGEAR advises Nortel
Networks in writing, within seven (7) business days from its receipt of Nortel
Networks' notice, that NETGEAR no longer desires the Service that gave rise to
the need for a Firewall, Nortel Networks shall have the right to undertake the
work involved to construct a Firewall, at NETGEAR'S expense.

       7.4 IRREPARABLE HARM: REMEDIES

       Each party acknowledges and agrees that any violation or threatened
violation by such party of any of the terms set forth in Section 1.6.5(i)
(Nortel Networks Technology) and Section 7 hereof would cause irreparable injury
to the other party, that the remedies at law for any violation or threatened
violation thereof would be inadequate, and that such other party will, in
addition to and not in limitation of any rights or remedies available at law or
in equity, be entitled to temporary and permanent injunctive relief and specific
performance without the necessity of proving actual damages.

                                       12
<PAGE>   13

                                    SECTION 8
                               REAL ESTATE LICENSE

       8.1 GRANT OF LICENSE

       Nortel Networks, as the owner or lessor of real property at various
locations more specifically described in Schedule 8.1 attached hereto
(collectively referred to as "Premises" and individually as "Premises" with a
corresponding identification number as set forth in Schedule 8.1), hereby grants
to the NETGEAR a license (the "Real Property License(s)") to use certain
portions of each Premises (each, a "Licensed Area") for the purpose of
conducting NETGEAR'S business pursuant to this Agreement, for the Term and the
facility fees set forth on Schedule 1.1. During the Term, NETGEAR'S employees,
contractors and agents shall have twenty-four hour access to each respective
Licensed Area (through the Premises and such other access ways as are made
available to Nortel Networks) and such other parts of the Premises as the
parties may agree in writing. NETGEAR shall use and occupy the Licensed Areas
pursuant to the reasonable rules and regulations established by Nortel Networks
for each related Premises, and, if Nortel Networks is a lessee of such Premises,
only as permitted under the related lease. Nortel Networks retains the right to
relocate NETGEAR, at Norte] Networks' expense, to any space in a given Premises
at any time, so long as such space contains at least the same number of square
feet as the original Licensed Area. NETGEAR may not assign any Real Property
License or further license all or any part of any Licensed Area.

       8.2 FACILITY-RELATED SERVICES

       So long as the NETGEAR is occupying any Licensed Area pursuant to this
Section 8, NETGEAR shall receive or be entitled to use certain facility-related
services that are available at the related Premises to Nortel Networks' other
contractors or venders occupying such Premises, but excluding any health or
exercise-related facilities. Nortel Networks shall have no obligation to provide
any services not provided to its other contractors or vendors occupying the
Premises.

       8.3 TERMINATION OF REAL PROPERTY LICENSE

       Notwithstanding anything in Section 2.1, or in any Schedule and Exhibit
attached hereto or elsewhere in this Agreement, Nortel Networks may terminate
any or all Real Property Licenses at any time (a) if Nortel Networks is a lessee
of such Premises and the related lease expires or is otherwise terminated, or
(b) if Nortel Networks has provided the NETGEAR with written notice that NETGEAR
has violated the rules and regulations established by Nortel Networks or any
third party lessor for any Premises or if the NETGEAR is otherwise in violation
of a related lease, and such breach or violation is not cured within ten (10)
Business Days of NETGEAR'S receipt of such notice; or (c) upon thirty (30) days
written notice by Nortel Networks to the NETGEAR.

       8.4 CONDITION OF LICENSED AREAS; ALTERATIONS AND IMPROVEMENTS

       The NETGEAR hereby accepts each Premises and Licensed Area in an "as is"
condition. Nortel Networks shall have no obligation to make any alteration or
improvement to any Licensed

                                       13
<PAGE>   14

Area for NETGEAR'S use or occupancy thereof. The NETGEAR shall not make any
alterations or additions to any Premises or Licensed Area without the written
consent of Nortel Networks.

       8.5 FIXTURES AND EQUIPMENT

       The NETGEAR shall have the right to furnish each Licensed Area with such
furniture, equipment and other assets ("Furnishings") as it sees fit, except
that NETGEAR shall not install any trade fixtures without Nortel Networks' prior
written consent, and Nortel Networks shall have no obligation to install any
trade fixtures for or on behalf of NETGEAR. All Furnishings to be brought onto
the Licensed Areas by NETGEAR are set forth on Schedule 8.5 hereto. All
Furnishings shall remain at all times the property of NETGEAR, except that any
Furnishings remaining in any Licensed Area after the surrender thereof by
NETGEAR, shall be deemed abandoned and shall become the property of Nortel
Networks without payment therefor.

       8.6 HOLDING OVER

       NETGEAR shall have no right to occupy any Licensed Area after the end of
the respective License Term. If NETGEAR remains in possession of any Licensed
Area after any License Term, NETGEAR shall be responsible for all damages and
costs incurred by Nortel Networks as a result of such unauthorized occupancy. In
addition, NETGEAR shall pay to Nortel Networks a holdover fee in an amount equal
to 150% of the License Fee during the period of its unauthorized occupancy.
Nothing in the preceding sentence shall be construed to grant NETGEAR any right
to occupy any Licensed Area after its respective License Term.

                                    SECTION 9
                                 MISCELLANEOUS

       9.1 NOTICE

       Notices and all other communication provided for herein shall be in
writing and shall be deemed to have been given to a party at the earlier of (i)
when personally delivered or (ii) 72 hours after having been deposited into the
custody of the local postal service, sent by first class certified mail, postage
prepaid, or (iii) one day after deposit with a national overnight courier
service, or (iv) upon receipt of a confirmation of facsimile transmission; in
each case addressed as follows:

          If to NETGEAR:                NETGEAR, Inc.
                                        4401 Great America Parkway
                                        MS: SCI-06
                                        Santa Clara, CA 95052
                                        Attention: Patrick Lo

          If to Nortel Networks:        Nortel Networks NA Inc.
                                        4401 Great America Parkway
                                        MS: SC2-05
                                        Attention: Law Department

                                       14
<PAGE>   15

or to such other address as any party hereto may have furnished to the other
party hereto in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt.

       9.2 GOVERNING LAW

       This Agreement shall be subject to and governed by the laws of the State
of California, without regard to its conflicts of law principles.

       9.3 BINDING EFFECT

       This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns, subject to the
limitations on assignment in Section 9.9 (Assignability) hereof.

       9.4 COUNTERPARTS

       This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same agreement.

       9.5 ENTIRE AGREEMENT

       This Agreement constitutes the entire agreement between the parties and
contains all of the agreements between the parties with respect to the subject
matter hereof. All Schedules attached hereto are incorporated herein by
reference. This Agreement supersedes any and all other agreements, either oral
or written, between the parties hereto with respect to the subject matter
hereof. No amendment or modification of this Agreement shall be valid unless the
same shall be in writing and signed by the parties hereto.

       9.6 WAIVERS

       No waiver of any provision of this Agreement shall be implied, and no
waiver shall be valid unless it is in writing and signed by the person or party
to be charged. No waiver of any breach of any of the terms, provisions or
conditions of this Agreement shall be construed as or held to be a waiver of any
other breach, or a waiver of, acquiescence in, or consent to, any further or
succeeding breach hereof.

       9.7 SEVERABILITY

       If any portion or portions of this Agreement shall be, for any reason,
invalid or unenforceable, the remaining portion or portions shall nevertheless
be valid, enforceable and carried into effect, unless to do so would clearly
violate the present legal and valid intention of the parties hereto.

                                       15
<PAGE>   16

       9.8 HEADINGS

       The headings in this Agreement are inserted for convenience only and are
not to be considered in the interpretation or construction of the provisions
hereof.

       9.9 ASSIGNABILITY

       This Agreement may not be transferred by NETGEAR, by assignment, merger
or otherwise, without the prior written consent of Nortel Networks, and any such
purported transfer shall be void. Notwithstanding the foregoing, either party
may, upon written notice to the other party, transfer its rights under this
Agreement to any Affiliate, in which case such party shall remain jointly or
severally liable with any such Affiliate for the fulfillment of all the terms
and conditions hereof. Neither party shall transfer its rights or obligations
under this Agreement to any Affiliate unless and until any and all required
government approvals respecting such transfer have been received by Nortel
Networks and NETGEAR.

       9.10 FORCE MAJEURE

       Nortel Networks shall be excused for failure to provide any Service to
the extent that such failure is directly or indirectly caused by acts of God,
national emergency, labor dispute, software, equipment or electrical
malfunction, transportation delays, telecommunication failures, or any other
event or circumstance beyond the reasonable control of Nortel Networks, but only
until the cessation of such event or circumstance. In the event that Nortel
Networks' performance hereunder is affected by such an event or circumstance,
Nortel Networks shall promptly notify NETGEAR of same, giving reasonably full
particulars thereof and, insofar as known, the probable extent to which it will
be unable to perform, or will be delayed in performing, its obligations
hereunder, and Nortel Networks shall use reasonable efforts to remove such force
majeure.

       9.11 AMENDMENT

       No modification or amendment of this Agreement will be binding upon
either Party unless in a writing expressly referencing this Agreement and duly
executed by each Party.

                                       16
<PAGE>   17

       IN WITNESS WHEREOF, the parties have executed this Transition Services
Agreement as of the date first above written.

                                        NETGEAR, INC.

                                        By: /s/ PATRICK LO
                                           -------------------------------------
                                           Name: PATRICK LO
                                           Title: CEO

                                        NORTEL NETWORKS NA INC.

                                        By. /s/ RICK TALLMAN
                                           -------------------------------------
                                           Name: RICK TALLMAN
                                           Title: Assistant Secretary

                                       17
<PAGE>   18

                                  SCHEDULE 1.1

                        SERVICES TO BE PROVIDED AND FEES

DESCRIPTION OF SERVICES

PART I -- Services Subject to Customary Billing. The billing methodology shall
be based on Nortel Networks' internal apportionment formulas.

- Finance services customarily provided to like business units of Nortel
  Networks.

- Accounting services customarily provided to like business units of Nortel
  Networks (e.g., accounts receivable, accounts payable, general ledger, fixed
  assets and related services).

- Information system services

- Global telecommunications and network services

PART II -- Services Subject to Pass Through Billing. The billing methodology
shall be based on the actual cost of Nortel Networks' occupancy of a given
facility including lease charges, utilities charges, real and personal property
taxes relating to the premises as described and detailed in Schedule 8.1.

<PAGE>   19

                                  SCHEDULE 1.7

                                    INSURANCE

<PAGE>   20

                                  SCHEDULE 2.2

           - Cisco Systems, Inc.
           - Lucent Technologies, Inc.
           - 3Com.
           - Siemens.
           - Newbridge.
           - Cabletron.
           - Ericsson.
           - Nokia.
           - Motorola.
<PAGE>   21
<TABLE>
                                                            SCHEDULE 8.1
                                                            REAL ESTATE

             [This schedule should include places with few employees, to be licensed for a term of less than 6 months.]

<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                LICENSED AREA                     APPX NO. OF
                              NORTEL ENTITY   NETGEAR ENTITY    DESCRIPTION    LEASED OR OWNED   NN BUSINESS   LICENSE    LICENSE
     PREMISES                      NAME            NAME        (APPROX. S/F)      BY NORTEL?      EE'S THERE    TERM        FEE
------------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>               <C>              <C>             <C>               <C>           <C>       <C>
1. CALIFORNIA               Nortel Networks
SANTA CLARA                 NA Inc.                               10,992            Leased           22        3 Months  $108,491.00
4401 Great American Pky.
------------------------------------------------------------------------------------------------------------------------------------
2. AUSTRALIA                Nortel Networks
SIDNEY                      Australia Tech-                          362               ?              2        3 Months  $6,690.00
Level 5, 118 Walker Street  nology Limited
------------------------------------------------------------------------------------------------------------------------------------
3. FRANCE                   Nortel Networks
LES ULIS CEDEX              France S.A.                              300            Leased            1        3 Months  $3,332.00
21 Ave. Due Quebec
------------------------------------------------------------------------------------------------------------------------------------
4. GERMANY                    Nortel Networks
MUNICH                        Deutschland GmbH                       396.8          Leased            2        3 Months  $3,207.00
Wamslerstrasse 9
------------------------------------------------------------------------------------------------------------------------------------
5. JAPAN                      Nortel Networks
TOKYO                         Japan                                  654.6          Leased            3        3 Months  $25,066.00
Gate City Ohsaki, East
Tower, 9th Floor
1-11-2 Ohsaki,
Shinagawa-ku,
Tokyo 141-8411
Japan
------------------------------------------------------------------------------------------------------------------------------------
6. KOREA                      Nortel Networks
SEOUL                         Korea Technology                       403            Leased            1        3 Months  $4,139.00
16F, Haesung Bldg 2           Limited
942-10, Daechi-3-dong
------------------------------------------------------------------------------------------------------------------------------------
7. SWEDEN                     Nortel Networks
STOCKHOLM                     Nordic AB                              430.6          Leased            1        3 Months  $3,387.00
Eriksgatan 115A
P.O. Box 6701
------------------------------------------------------------------------------------------------------------------------------------
8. UNITED KINGDOM             Nortel Networks
MAIDENHEAD                    Properties Limited                     300               ?              1        3 Months  $4,625.00
9300 Trans Canada Hwy
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   22
                                  SCHEDULE 8.5

                              NETGEAR FURNISHINGS

<TABLE>
<CAPTION>
DEPT  ASSET #   NT ASSET #           DESCRIPTION 1              SERIAL #           DESCRIPTION 2           LEASE/PURCH     CAP/EXP
----  -------   ----------           -------------              --------           -------------           -----------     -------
<S>   <C>       <C>          <C>                                <C>            <C>                         <C>             <C>
                              Smart Bit 2000                    8373            Test Equipment              Purchased
                              Smart Bit 2000                    8364            Test Equipment              Purchased
                              Smart Bit 1000                    3239            Test Equipment              Purchased
                              Pentium PC                                        ND508/520 Test Station
                              486PC                                             ZyXel Test Station
                              Pentium 100MHz PC                                 FA410 Test Station
                              Pentium PC                                        FA510 Test Station
                              Pentium PC                                        FA510 Test Station
                              Pentium PC                                        PS Series Test Station
                              Pentium PC                                        EA101 Test Station
                              Pentium PC                                        EA101 Test Station
                              Pentium PC                                        FA310 Test Station
181                           HP LaserJet 5Si MX - C3167A      USJK209705       Printer                     Purchased
181                           HP LaserJet 5Si MX - C3167A      USJK210598       Printer                     Purchased
                              HP LaserJet 5Si MX - C3167A                       Printer                     Purchased
507            1039178        NEC 6230                         7Z001220         Laptop                                     registar
507            1036924        BOXLIGHT 4000 ULTRA LIGHT DLP    217520288        Projector                   Purchased      registar
507            1037029        NEC 6230MX                       81072112         Laptop                      Purchased      registar
507            1036449        WINBOOK XL P233                  RBL256R54227S42  Laptop                      Purchased      registar
507            1030735        MAC POWERBOOK 3400C/200                           Laptop                      Purchased      registar
507            1037180        WINBOOK XL P233                  RBL256R3507L07   Laptop                      Purchased      registar
507            1042318        WinBook XL P266                  RCN456W1138507   Laptop                      Purchased      registar
507            1045570        IBM THINKPAD 600E                78-BXY04         Laptop                      Purchased      registar
507            1036220        WINBOOK XL P233 LAPTOP           SB1256R1457107   Laptop                      Purchased      registar
507                           Dell Latitude Cpi336             H9949476         Laptop
507                           Dell 19" Monitor                 2221DA67VE89     Monitor
507            expensed       HP 600 Office Jet                                 Printer                     Purchased      exp
507            1038329        WinBook XL                       RCM256R4068Z40   Laptop                      Purchased      registar
507                           Dell Latitude Cpi336             H9950697         Laptop
507                           Dell 19" Monitor                                  Monitor
507            expensed       HP 600 Office Jet                                 Printer                     Purchased      expensed
507            1041487        Toshiba 320CT                    5801442          Laptop                      Purchased
507            expensed       HP 600 Office Jet                                 Printer                     Purchased      expensed
507            1046181        Toshiba Portege 7010CT           19361415A        Laptop                      Purchased
507                           HP 570 Office Jet                                 Printer                     Purchased      expensed
507                           WinBook XL 266                   RBL256R3517L18   Laptop                      Purchased
507            expensed       HP 590 Office Jet                                 Printer                     Purchased      expensed
</TABLE>

                                       1
<PAGE>   23

<TABLE>
<CAPTION>
DEPT   ASSET#   NT ASSET #          DESCRIPTION 1                SERIAL #        DESCRIPTION 2    LEASE/PURCH    CAP/EXP
----   ------   ----------          -------------                --------        -------------    -----------    -------
<S>    <C>      <C>           <C>                             <C>                <C>              <C>            <C>
52M              1049320      SONY PGC 505TR                                     Laptop            Purchased     registar
52M              1048391      IBM THINKPAD 600E               78WKL07            Laptop            Purchased     registar
507    00089     1048321      DELL LATITUDE 366               WP8Q8              Laptop            Purchased     registar
181              1031784      TOSHIBA 800CT                                      Laptop            Purchased     registar
181    00084     1032037      NEC 6050                        77001286           Laptop            Purchased     registar
181              1046902      NEC VERSA SX + doc + mon +      93120359           Laptop            Purchased     registar
                              key + ms
181    00085     1047732      DELL LATITUDE 300               WF18Q              Laptop            Purchased     registar
181    00082     1039505      TOSHIBA 750CDM                  48653258A          Laptop            Purchased     registar
181              1040578      HIQ PENTIUM II 233 MHZ                             PC Tower          Purchased     registar
181              1041013      SUN ULTRA 10                                                         Purchased     registar
181              1047085      DELL LATITUDE                   WCD7C              Laptop            Purchased     registar
                              300 + doc + mon + key + ms
181              1046530      IBM THINKPAD 560                                   Laptop            Purchased     registar
181              1037116      SUN ULTRA 2                     809FC40D                             Purchased     registar
181              1046075      NEC VERSA SX + doc + mon +      8Z120468           Laptop            Purchased     registar
                              key + ms
181    00083     1049311      CANON LC9000 FAX                UYG41256           FAX               Purchased     registar
181                           NEC 6200                                           Laptop
341              expensed     SONY NOTEBOOK PII                                  Laptop            Purchased     expensed
341              1038319      MERGE 2000 AF FLASH                                                  Purchased     registar
341              1048757      NETCOM GIGABIT ETHERNET SX SMA                                       Purchased     registar
341    00079     1047702      NETCOM SMARTBITS 2000           9844A              Test Equipt       Purchased     registar
341              1038849      NETCOM SMARTBITS 2000           8364               Test Equipt       Purchased     registar
341              1044008      IBM THINKPAD 600                1S264551U78GY232   Laptop            Purchased     registar
341              1043874      NETCOM GIGABIT SMARTCARD                                             Purchased     registar
341              1046345      NETCOM SMARTCARDS                                                    Purchased     registar
341    00046     1045290      ISO/LINK PENTIUM II SYSTEM      17582                                Purchased     registar
341              1044516      IBM THINKPAD 600                1S264551U78HC753   Laptop            Purchased     registar
341              1042601      NETCOM ETHERNET SMARTCARDS                                           Purchased     registar
341              1042137      IBM THINKPAD 600                1S264551U78AV521   Laptop            Purchased     registar
341              1041775      NETCOM SMARTBITS 2000           8373               Test Equipt       Purchased     registar
341    00086     1039409      NEC 5080                        83042671           Laptop            Purchased     registar
341    00047     1042320      SHARP MEBIUS                    80004865           Laptop            Purchased     registar
341    00048     1042319      SHARP MEBIUS                    80001835           Laptop            Purchased     registar
341    00080     1022213      NETCOM SMARTBITS 10             5116                                 Purchased     registar
341              1022211      NETCOM ET-1000                  1577                                 Purchased     registar
341              1021587      INTEL PENTIUM P90                                  PC Tower          Purchased     registar
341              1026574      ISDN NETWORK SIMULATOR                                               Purchased     registar
341              1024387      INTEL PENTIUM P166                                                   Purchased     registar
341    00049     1023461      TOSHIBA T2130CT                 12530403           Laptop            Purchased     registar
341              1021579      INTEL PENTIUM P90                                                    Purchased     registar
341              1021577      INTEL PENTIUM P90                                                    Purchased     registar
341              1019767      COMPAQ PRESARIO CDS 9548                                             Purchased     registar
341              1021585      INTEL PENTIUM P90                                                    Purchased     registar
341              1021583      INTEL PENTIUM P90                                                    Purchased     registar
</TABLE>

                                        2
<PAGE>   24
<TABLE>
<CAPTION>
DEPT    ASSET #  NT ASSET #          DESCRIPTION 1            SERIAL #          DESCRIPTION 2     LEASE/PURCH     CAP/EXP
----    -------  ----------          -------------            --------          -------------     -----------     -------
<S>     <C>      <C>         <C>                            <C>               <C>               <C>             <C>
341              1021581     INTEL PENTIUM P90                                                   Purchased      registar

341              1033296     SUPERCOM NETBOX                                                     Purchased      registar

341     00054    1036999     NEC 6230MX                        81072120          Laptop          Purchased      registar

341     00045    1049043     GATEWAY INTEL 400MHZ E1200        14909816          Desktop         Purchased      registar

341              1049071     NETCOM SX SMARTCARD                                                 Purchased      registar

341              1026673     COMPAQ ARMADA 4120T                                 Laptop          Purchased      registar

341              1025117     ISDN NETWORK SIMULATOR                                              Purchased      registar

181              1007745     RICOH FAX 3100L                                                     Purchased      registar

181              1009327     TEKTRONIX 2467B                   B053956                           Purchased      registar
                             OSCILLOSCOPE

341              1048993     TEKTRONIX TDS 3054                                                  Purchased      registar
                             OSCILLOSCOPE

341              1034282     NETCOM SMARTBITS 20                 3236          Test Equipt       Purchased      registar

341              1032496     NETCOM SMARTBITS 20                 3239          Test Equipt       Purchased      registar

341              1036192     ISDN 2000AFP FLASH                                                  Purchased      registar

341              1029207     NETCOM 100BASE-X FAST                                               Purchased      registar
                             SMARTCARD

341              1029393     LAN CABLE TESTER AND CABLE                                          Purchased      registar

341              1049526     TEKTRONIX PROBE P6246                                               Purchased      registar

341              1029774     HP DIGITIZING OSCILLOSCOPE     3327A00467&495                       Purchased      registar

181     00001                SONY NOTEBOOK PII                                   Laptop          Purchased      registar

341     00002                ML-7710 10/100 Base TX Multily                     Smartcard        Purchased      registar
                             Smartcard

341     00003                ML-7710 10/100 Base TX Multily                     Smartcard        Purchased      registar
                             Smartcard

341     00004                ML-7710 10/100 Base TX Multily                     Smartcard        Purchased      registar
                             Smartcard

341     00005                ML-7710 10/100 Base TX Multily                     Smartcard        Purchased      registar
                             Smartcard

341     00006                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00007                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00008                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00009                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00010                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00011                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00012                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00013                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00014                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00015                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00016                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00017                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00018                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00019                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar
                             Smartcard

341     00020                SX-7410B 10/100 Base TX Ethernet                   Smartcard        Purchased      registar

</TABLE>

                                       3
<PAGE>   25

<TABLE>
<CAPTION>
DEPT   ASSET #   NT ASSET #            DESCRIPTION 1              SERIAL #        DESCRIPTION 2    LEASE/PURCH    CAP/EXP
----   -------   ----------            -------------              --------        -------------    -----------    -------
<S>    <C>      <C>           <C>                              <C>               <C>              <C>            <C>
                              Smartcard
341    00021                  SX-7410B 10/100 Base TX Ethernet                   Smartcard         Purchased     registar
                              Smartcard
341    00022                  SX-7410B 10/100 Base TX Ethernet                   Smartcard         Purchased     registar
                              Smartcard
341    00023                  SX-7410B 10/100 Base TX Ethernet                   Smartcard         Purchased     registar
                              Smartcard
341    00024                  SX-7410B 10/100 Base TX Ethernet                   Smartcard         Purchased     registar
                              Smartcard
341    00025                  SX-7410B 10/100 Base TX Ethernet                   Smartcard         Purchased     registar
                              Smartcard
341    00026                  GX-1420A Gigabit Ethernet Copper                   Smartcard         Purchased     registar
                              Smartcard
341    00027                  GX-1420A Gigabit Ethernet Copper                   Smartcard         Purchased     registar
                              Smartcard
341    00028                  GX-1420A Gigabit Ethernet Copper                   Smartcard         Purchased     registar
                              Smartcard
341    00029                  GX-1420A Gigabit Ethernet Copper                   Smartcard         Purchased     registar
                              Smartcard
507    00030                  Compucare SYS Missouri IX                          PC Tower          Purchased     registar
507    00031                  Compucare SYS Missouri IX                          PC Tower          Purchased     registar
507    00032                  Compucare SYS Missouri IX                          PC Tower          Purchased     registar
341    00033                  20 Chl Hybrid Recorder DR130-                                        Purchased     registar
                              12-22-1D/C2
507    00034                  600 MHZ PIII System w/CD                           PC Tower          Purchased     registar
507    00035                  600 MHZ PIII System w/DVD                          PC Tower          Purchased     registar
507    00036                  600 MHZ PIII System w/DVD                          PC Tower          Purchased     registar
507    00037                  500 MHZ PIII System w/CD                           PC Tower          Purchased     registar
507    00038                  500 MHZ PIII System w/CD                           PC Tower          Purchased     registar
507    00039                  400 MHZ                                            Laptop            Purchased     registar
341    00040                  Meridian Snap Server 32G w/Raid                                      Purchased     registar
52M    00041                  Netis Technology                                                     Purchased     registar
181    00042                  Computer Market Research                           Software          Purchased     registar
52M    00043                  Precision Consulting                               Software          Purchased     registar
52M    00044                  TCN                                                Software          Purchased     registar
AU507                         Toshiba Tecra 8000               Y8014324          Laptop            Purchased     registar
AU507                         Toshiba Tecra 730XCDT            5712835           Laptop            Purchased     registar
AU507                         Nokia 6110                                         Mobile Phone      Purchased     exp
AU507                         Nokia 6110                                         Mobile Phone      Purchased     exp
FF507                         Model GH688                                        GSM Phone         Purchased     exp
FF507            338310       Compaq Armada 3500                                 Laptop            Purchased     registar
GE507            old          Toshiba Portege 660CDT           2716083           Laptop            Purchased
GE507            old          Toshiba DeskStation V+           4717462           Docking Station   Purchased
GE507            old          NET Monitor 17                   7501490TA         Monitor           Purchased
GE507            New          Toshiba Tecra 8000CDT            998D024846        Laptop            Purchased     registar
GE507            New          Dell Latitude Xpi                WK7HZ F0333-4     Laptop            Purchased     registar
GE507            New          Dell 17" Monitor                                   Monitor           Purchased     registar
</TABLE>

                                       4
<PAGE>   26
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
 DEPT     ASSET #    NT ASSET #           DESCRIPTION 1           SERIAL #         DESCRIPTION 2      LEASE/PURCH     CAP/EXP
-------------------------------------------------------------------------------------------------------------------------------
<S>       <C>       <C>              <C>                        <C>               <C>                 <C>            <C>
GE507                                Dell Doc                                     Docking Station      Purchased     registar
-------------------------------------------------------------------------------------------------------------------------------
JP507                                IBM ThinkPad560E           97-ATIBK          Laptop
-------------------------------------------------------------------------------------------------------------------------------
JP507                                Sony VAIO 505SX            28987600-         Laptop               Purchased     registar
                                                                 1110937
-------------------------------------------------------------------------------------------------------------------------------
JP507                                Nanao FlexScan 54T         B2175115-         Monitor              Purchased     registar
                                                                  JAPAN
-------------------------------------------------------------------------------------------------------------------------------
JP507                                Sony VAIO 505SX            28987600-         Laptop               Purchased     registar
                                                                 1117992
-------------------------------------------------------------------------------------------------------------------------------
JP507                                Dell XPSR350               T03JS             PC                   Purchased
-------------------------------------------------------------------------------------------------------------------------------
JP507                                Nanao FlexScan 54T         55399097_JAW      Monitor              Purchased
-------------------------------------------------------------------------------------------------------------------------------
JP507                                Dell GXA6233L/EM           19648625          PC
-------------------------------------------------------------------------------------------------------------------------------
JP507                                ViewSonic VPA150           EK91010861        Monitor
-------------------------------------------------------------------------------------------------------------------------------
KO507                                Dell Latitude Xpi          S42XL             PC                   Purchased     registar
-------------------------------------------------------------------------------------------------------------------------------
SE507                                IBM ThinkPad600            55206WP           Laptop               Purchased     registar
-------------------------------------------------------------------------------------------------------------------------------
SE507                                Philips 107MB              HD009847001023    Monitor              Purchased     registar
-------------------------------------------------------------------------------------------------------------------------------
GB507               325789/00731     Compaq Notebook PC         8749BB730191      Laptop               Purchased     registar
-------------------------------------------------------------------------------------------------------------------------------
GB507               A039750          Compaq Docking Station     6747BCL10710      Docking Station      Purchased     registar
-------------------------------------------------------------------------------------------------------------------------------
GB507               00732            Philips 107B Color Monitor TY109737020362    Monitor              Purchased     registar
-------------------------------------------------------------------------------------------------------------------------------
GB507                                Nokia 2110 Mobile Phone    490138            Mobile Phone         Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341                                 Tester #13                 N/A               PC Tower             Built         exp
-------------------------------------------------------------------------------------------------------------------------------
 341                                 Dual 400 server            N/A               PC Tower             Built         exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00053                     Dell Dimension XPSH266     9KOSV             PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00050                     H1Q 233MHZ                 9803025           PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00051                     H1Q 150MHZ                 9709233           PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00052                     GLI 90MHZ                  88112912          PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00055                     H1Q 150MHZ                 9705014           PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341                                 Tester #9                  N/A               PC Tower             Built         exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00056                     H1Q 150 MHZ                9705013           PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00057                     H1Q 90MHZ                  9409387           PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00058                     H1Q 150MHZ                 9705016           PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00059                     H1Q 150MHZ                 9709230           PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00060                     H1Q 150MHZ                 9709038           PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00061                     T/Link 90MHZ               MLP 069703740     PC Tower- mini       Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00062                     Power Spec PIII            7.2201E+12        PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00063                     Pentium III                P96A8400249       PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00064                     GLI 90MHZ                  88112910          PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00065                     GLI 90MHZ                  88112909          PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00066                     GLI 60MHZ                  88222232          PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00067                     GLI                        88104075          PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341                                 Tester "Rob"               N/A               PC Tower             Built         exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00068                     H1Q 150MHZ                 9709231           PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00069                     GLI 90MHZ                  88222228          PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00070                     HP VECTRA 510              US63554336        Desk Top             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341       00071                     HP Pavilion Pentium 266    5002-3651         PC Tower             Purchased     exp
-------------------------------------------------------------------------------------------------------------------------------
 341                                 Tester #18 350MHZ          N/A               PC Tower             Built         exp
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       5
<PAGE>   27

<TABLE>
<CAPTION>
DEPT   ASSET #   NT ASSET #          DESCRIPTION 1              SERIAL #         DESCRIPTION 2    LEASE/PURCH    CAP/EXP
----   -------   ----------          -------------              --------         -------------    -----------    -------
<S>    <C>       <C>          <C>                             <C>                <C>              <C>            <C>
341    00072                  GLI                             88101540           PC Tower          Purchased     exp
341    00073                  GLI                             88222231           PC Tower          Purchased     exp
341    00074                  HIQ 150MHZ PIII                 9709037            PC Tower          Purchased     exp
341    00075                  GLI                             88112911           PC Tower          Purchased     exp
341    00076                  ISO/LINK CELERION               17826              PC Tower          Purchased     exp
341    00077                  HIQ PENTIUM                     9804016            PC Tower          Purchased     exp
341    00078                  HIQ DUAL PENTIUM                9803179            PC Tower          Purchased     exp
341    00081                  SMARTBITS 2000                  9252                                 Purchased     exp
341    00087                  TOSHIBA - Satellite 2065CDS     69812276A          Laptop            Purchased     exp
341    00088                  DELL Dimension                  F134F              PC Tower          Purchased     exp
341                           AMD 300                         N/A                PC Tower          Built         exp
341    00090                  Scanner                         SG8AF231QS         Scanner           Purchased     exp
341    00091                  T/Link 60MHZ                    069703749          PC Tower          Purchased     exp
</TABLE>

                                       6
<PAGE>   28

                                    EXHIBIT A

                                   WORK ORDER

<PAGE>   29

                                   EXHIBIT B

               CONFIDENTIALITY AND INTELLECTUAL PROPERTY AGREEMENT

       I, the undersigned, acknowledge that NETGEAR, Inc. ("NETGEAR"), has a
contractual relationship with Nortel Networks Corporation or an affiliate of
Nortel Networks Corporation (each, a "Nortel Networks Company") related to the
performance of certain "Services", as a result of which in the course of my work
as an employee, agent, contractor or subcontractor of NETGEAR, or as an employee
of such agent, contractor or subcontractor of NETGEAR, I may be given access to
information of a Nortel Networks Company.

       In consideration of (i) a Nortel Networks Company permitting NETGEAR to
disclose to me, (ii) a Nortel Networks Company's direct disclosure to me, and/or
(iii) access by me to information of a Nortel Networks Company in the course of
performing Services, and in consideration of the compensation paid to me by
NETGEAR or by an agent, contractor or subcontractor of NETGEAR for performance
of Services, I agree as follows:

       1. I shall receive and maintain all information disclosed to or accessed
by me (whether orally or in written or other tangible form or otherwise)
relating to a Nortel Networks Company and all work product produced by me in
strictest confidence.

       2. I shall not provide copies of any written or other tangible materials
disclosed to, produced by or accessed by me to any parties to other than
authorized employees of NETGEAR or the Nortel Networks Company.

       3. I shall return to the Nortel Networks Company any materials provided
by the Nortel Networks Company upon request therefor.

       4. Any materials produced by me in connection with Services ("Work
Product") shall be the sole property of the Nortel Networks Company, and I
hereby assign whatever right, title and interest I may have or claim to such
Work Product property and all rights therein, including, but not limited to, any
patent, copyright, right to create derivative works, trademarks, trade secret,
mask works, or other intellectual property rights, to the Nortel Networks
Company, and hereby authorize any Nortel Networks Company and/or any person or
entity obtaining rights directly or indirectly from such Nortel Networks Company
(to the extent of such rights) to make any desired changes to the Work Product
or any part thereof, to combine or use the Work Product with any other goods,
products, materials, services or software in any manner desired, and to withhold
my identity as an author in connection with any distribution or use of the Work
Product in any manner thereof, either alone or in combination with other goods,
products, materials, services or software.

       5. I shall not make use of any information disclosed to, produced by or
accessed by me for any purpose other than to perform Services.

<PAGE>   30

       6. The obligations hereunder are personal to me and shall continue in
effect after the completion of Services, regardless of whether or not I remain
associated in any manner, either directly or indirectly with NETGEAR, its
agents, contractors and/or subcontractors.

       7. I acknowledge that damages may not be an adequate remedy for a breach
of this agreement by me and, consequently, that an injunction and/or other
appropriate equitable relief may be obtained to remedy a breach or threatened
breach hereof.

                                        Signature:
                                                  ------------------------------

                                        Name:
                                             -----------------------------------

                                        Title:
                                              ----------------------------------

                                        Date:
                                             -----------------------------------<PAGE>   1

                                                                   EXHIBIT 10.16

                    INTELLECTUAL PROPERTY LICENSE AGREEMENT

                                    BETWEEN

                          NORTEL NETWORKS CORPORATION

                                      AND

                                 NETGEAR, INC.

<PAGE>   2

                               TABLE OF CONTENTS

SCHEDULE A -      LICENSED SOFTWARE

SCHEDULE B -      LICENSED TECHNICAL INFORMATION

SCHEDULE C -      LICENSED TRADEMARKS

SCHEDULE D -      THIRD PARTY SOFTWARE

                                      -i-
<PAGE>   3

                    INTELLECTUAL PROPERTY LICENSE AGREEMENT

This AGREEMENT (the "Agreement") entered into with effect as of the 10th day of
March, 2000 (the "Effective Date") by and between NORTEL NETWORKS CORPORATION,
a corporation organized and existing under the laws of Canada, having its
executive offices at 8200 Dixie Road, Brampton, Ontario, Canada L6T 5P6
(hereinafter referred to as "NORTEL"), on its own behalf and on behalf of its
Subsidiaries, and NETGEAR, INC., a corporation organized and existing under the
laws of Delaware, with offices located at 4401 Great America Parkway, Santa
Clara, CA 95052 (hereinafter referred to as "NETGEAR").

WHEREAS, NORTEL's Subsidiary Nortel Networks NA Inc. ("NNNAI") and NETGEAR have
entered into a contribution agreement dated as of the date hereof (the
"Contribution Agreement") for the transfer by NNNAI to NETGEAR of certain
assets related to the NETGEAR Business; and

WHEREAS, NETGEAR desires to obtain a license under certain Intellectual
Property Rights belonging to NORTEL and its Subsidiaries and NORTEL is willing
to grant such rights and licenses, subject to the terms and conditions
hereinafter set forth;

NOW THEREFORE, in consideration of the mutual promises hereinafter set forth,
the Parties agree as follows:

                                   ARTICLE 1

                                  DEFINITIONS

      1.1 Capitalized terms used herein not otherwise defined have the meaning
ascribed to them in the Contribution Agreement. As used in this Agreement and
the Schedules attached hereto:

            (a)   "Administrative Services" shall mean any financial, human
      resources or administrative processes or services, including any computer
      software and documentation used in connection therewith, supplied to or
      on behalf of the NETGEAR Business by any department, division, or
      Affiliate of a NORTEL Company external to the NETGEAR Business, or by any
      third person;

            (b)   "Affiliate" means, as to a specified individual or entity,
      any individual or entity that directly or indirectly, through one or more
      intermediaries, controls, is controlled by or is under common control
      with such specified individual or entity. For the purposes of this
      definition, "control" means the power to direct the management and
      policies of another, whether through the ownership of voting securities,
      by contract or otherwise; and the terms "controlling" and "controlled"
      have meanings correlative to the foregoing;

            (c)   "Confidential Information" shall mean any business,
      marketing, technical, scientific or other information which, at the time
      of disclosure, is designated as confidential (or like designation), is
      disclosed in circumstances of confidence, or would be understood by the
      recipient, exercising reasonable business judgment, to be confidential.
      Confidential Information includes, without limitation, the terms and

                                       1
<PAGE>   4
conditions of this Agreement and information included in or related to the
Licensed Intellectual Property;

          (d)  "Distributor" shall mean a third party that NETGEAR has
sublicensed or otherwise authorized to market NETGEAR Products to End Users;

          (e)  "End User" shall mean a third party that buys, leases,
sublicenses or otherwise receives NETGEAR Products from NETGEAR, a Distributor
or Sublicensee primarily for its own use and not for resale;

          (f)  "Excluded Intellectual Property" means Intellectual Property
Rights embodied in or used in the design, development, manufacture, provision,
use or sale of Administrative Services or External Components;

          (g)  "External Components" means materials, components, assemblies or
parts which are incorporated in NETGEAR Products in the course of manufacturing
or assembly operations and which were not manufactured by NETGEAR prior to
closing;

          (h)  "Improvement" shall mean any improvement, enhancement,
modification, change, derivative work or extension made at any time;

          (i)  "Intellectual Property Rights" means all patent rights,
copyrights, mask work rights, confidential information rights, trademark, trade
name, distinguishing guise, trade dress, trade secret or know-how rights, all
rights of whatsoever nature in computer software and data, and any other
intangible rights or privileges of a nature similar to any of the foregoing, in
every case in any part of the world and whether or not registered. Intellectual
Property Rights shall also include all rights in any applications and granted
registrations for any of the foregoing rights;

          (j)  "Licensed Intellectual Property" shall mean:

                    (i)       the Licensed Patents;

                    (ii)      the Licensed Software;

                    (iii)     the Licensed Technical Information; and

                    (iv)      the Licensed Trademarks;

          (k)  "Licensed Patents" shall mean those Patents which are owned by
NORTEL or any one its direct or indirect wholly owned subsidiaries, and which
are being used in the NETGEAR Business as of the Effective Date, but excluding
those that are Excluded Intellectual Property;

          (l)  "Licensed Software" shall mean the software and related
documentation, and any copyright thereon, owned by NORTEL or any one of its
direct or indirect wholly owned subsidiaries and used in the NETGEAR Business
as of the Effective Date, but excluding that which constitutes Excluded
Intellectual Property, but including, without limitation, that software listed
in Schedule A;

          (m)  "Licensed Technical Information" shall mean the drawings,
schematics, specifications and designs related to NETGEAR Products and all
trade secrets embodied in any know-how, manufacturing specifications,
processing procedures or research and development information owned by NORTEL
or any one of its direct or

                                       2
<PAGE>   5
     indirect wholly owned subsidiaries and used in the NETGEAR Business as of
     the Effective Date, but excluding that which constitutes Excluded
     Intellectual Property, but including, without limitation, the technical
     information listed in Schedule B;

          (n)  "Licensed Trademarks" shall mean the trademarks listed in
     Schedule C;

          (o)  "NORTEL Company" or "NORTEL Companies" means NORTEL and any of
     its Subsidiaries;

          (p)  NETGEAR Business means the business related to (i) designing,
     researching, manufacturing and developing NETGEAR Products by NETGEAR on or
     after the date hereof, or by NORTEL, its Subsidiary Nortel Networks Inc.
     ("NNI"), NNNAI or NETGEAR before the date hereof; and (ii) marketing,
     distributing and licensing NETGEAR Products by NETGEAR after the date
     hereof or by NORTEL, NNI, NNNAI or NETGEAR before the date hereof;

          (q)  "Party" shall mean either NORTEL or NETGEAR;

          (r)  "Patents" shall mean patents, patent applications, continuations,
     continuations in part, divisionals, reissues or reexaminations;

          (s)  "Sublicensee" shall mean a third party manufacturer under
     sublicense from NETGEAR having, subject to the limitations set out herein,
     the right to make, use, copy, modify and sell NETGEAR Products and to
     provide engineering, installation, maintenance, repair and other services
     relating to such NETGEAR Products;

          (t)  "Subsidiary" shall mean a company in which a Party hereto
     effectively owns or controls, and continues to own or control, directly or
     indirectly, more than fifty percent (50%) of the voting stock or ownership
     interest therein; and

          (u)  "Third Party Software" shall mean software which is licensed by a
     NORTEL Company from a third party and which is used in the NETGEAR Business
     as of the Effective Date, including, without limitation, that software
     listed in Schedule D.

                                   ARTICLE 2

                     GRANT OF RIGHTS UNDER LICENSED PATENTS

     2.1 Subject to the terms and conditions of this Agreement, NORTEL hereby
grants to NETGEAR a non-exclusive, royalty-free, perpetual, worldwide license
under the Licensed Patents, to make, use, lease, sell, offer to sell and import
NETGEAR Products and to provide design, development, engineering, installation,
maintenance, repair and other services relating to such NETGEAR Products. Such
license shall also include the right to have NETGEAR Products made by another
manufacturer for the use, lease or sale by NETGEAR.

     2.2 The Patent license granted herein to NETGEAR shall include the right
to grant sublicenses to third parties within the scope of the license granted
in section 2.1.

     2.3 The Patent license granted herein to NETGEAR shall commence on the
Effective Date, or when letters patent are issued or granted if subsequent
thereto, and, provided this Agreement is not terminated pursuant to the
provisions of this Agreement, shall continue for the

                                       3

<PAGE>   6
shortest of the entire term of the respective Patents under which it is
granted, the period during which such Patents are in force, or the duration of
this Agreement.

                                   ARTICLE 3

              GRANT OF RIGHTS UNDER LICENSED TECHNICAL INFORMATION

     3.1  Subject to the terms and conditions of this Agreement, NORTEL hereby
grants to NETGEAR a non-exclusive, royalty-free, perpetual, worldwide license
under the Licensed Technical Information for the purpose of designing,
developing, using, manufacturing, and distributing NETGEAR Products and for the
provision of engineering, installation, maintenance, repair and other services
relating to such NETGEAR Products. The aforesaid rights shall include:

               (a)  the right to communicate relevant procurement
     specifications related to the Licensed Technical Information to suppliers
     in all countries of the world as reasonably necessary for, and solely for,
     the procurement by NETGEAR of materials, parts, components and assemblies
     for use in the manufacture and/or installation of the NETGEAR Products;

               (b)  the right to communicate to End Users purchasing the NETGEAR
     Products such portions of the Licensed Technical Information as are
     reasonably necessary for such End Users to operate and maintain the NETGEAR
     Products;

               (c)  the right to communicate to Distributors such portions of
     the Licensed Technical Information as are reasonably necessary for such
     Distributors to distribute NETGEAR Products;

               (d)  the right to grant sublicenses to third parties under the
     technical information license granted herein within the scope of such
     license; and

               (e)  the right to communicate to Sub-licensees such portions of
     the Licensed Technical Information as are reasonably necessary for such
     Sub-licensees to develop, manufacture and distribute NETGEAR Products;

provided, however, that all recipients of the Licensed Technical Information
shall be advised by NETGEAR, in writing prior to such communication, that
proprietary information is being communicated and that such information is to
be kept confidential and not used except as permitted hereunder, and provided
further, that such recipients undertake, in writing, prior to disclosure, to
respect such confidentiality.

                                   ARTICLE 4

                    GRANT OF RIGHTS UNDER LICENSED SOFTWARE

     4.1  Subject to the terms and conditions of this Agreement, NORTEL hereby
grants to NETGEAR a non-exclusive, royalty-free, perpetual, worldwide license
to use, copy, modify, sublicense and distribute the Licensed Software solely
for the purpose of designing, developing, using, manufacturing, sublicensing
and distributing NETGEAR Products, and to provide

                                       4
<PAGE>   7
engineering, installation, maintenance, repair and other services relating to
such NETGEAR Products. The aforesaid rights shall include:

               (a)  the right to communicate relevant procurement specifications
     related to the Licensed Software to suppliers in all countries of the world
     as reasonably necessary for, and solely for, the procurement by NETGEAR of
     materials, parts, components and assemblies for use in the manufacture
     and/or installation of the NETGEAR Products;

               (b)  the right to communicate to End Users purchasing the NETGEAR
     Products, such portions of the Licensed Software as are reasonably
     necessary for such End Users to operate and maintain the NETGEAR Products;

               (c)  the right to communicate to Distributors such portions of
     the Licensed Software as are reasonably necessary for such Distributors to
     distribute NETGEAR Products;

               (d)  the right to grant sublicenses under the software license
     granted herein to NETGEAR within the scope of such license; and

               (e)  the right to communicate to Sub-licensees such portions of
     the Licensed Software as are reasonably necessary for such Sub-licensees to
     develop, manufacture and distribute NETGEAR Products.

     4.2 The software license granted herein shall be subject to the following
conditions:

               (a)  recipients of the Licensed Software other than End Users
     shall be advised by NETGEAR, in writing prior to such communication, that
     proprietary information is being communicated and that such information is
     to be kept confidential and not used except as permitted hereunder, and
     provided further, that such recipients undertake, in writing, prior to
     disclosure, to respect such confidentiality; and

               (b)  the right to sublicense software to End Users shall be
     subject to the prior or concurrent execution of a written sublicense
     agreement between NETGEAR, or its Sub-licensee, and each End User whereby
     the End User (i) acquires no right, title or interest in or to such
     software other than the right to use it for the operation and maintenance
     of such devices, products or applications bought or leased from NETGEAR;
     and (ii) shall hold such software in confidence for NORTEL and NETGEAR and
     shall not, at any time, without the prior written consent of NORTEL and
     NETGEAR, transfer such software to any person other than employees of End
     User with a need to know.

                                   ARTICLE 5

                               GRANTBACK LICENSE

     5.1 NETGEAR hereby grants to NORTEL Companies an unrestricted,
irrevocable, non-exclusive, worldwide, fully paid-up license under the
Transferred Intellectual Property other than the Transferred Trademarks to
make, have made, use, lease, offer to sell, sell, and import all products other
than the NETGEAR Products and to copy, modify and sublicense and distribute
relevant material for such purposes. Such license shall include the right to
sublicense such rights to purchasers and users of such products but not to
otherwise sublicense such rights.

                                       5
<PAGE>   8
        5.2 NETGEAR hereby grants to NORTEL Companies an unrestricted,
irrevocable, non-exclusive, worldwide, fully paid-up license under all
Improvements which are invented, created, developed or otherwise acquired by
NETGEAR during the period that NETGEAR is a Subsidiary of NORTEL and which
relate to the Transferred Intellectual Property other than the Transferred
Trademarks to make, have made, use, lease, offer to sell, sell, and import all
products other than the NETGEAR Products and to copy, modify and sublicense and
distribute relevant material for such purposes. Such license shall include the
right to sublicense such rights to purchasers and users of such products but not
to otherwise sublicense such rights.

                                   ARTICLE 6

               IMPROVEMENTS TO THE LICENSED INTELLECTUAL PROPERTY

        6.1 During the period that NETGEAR is a subsidiary or NORTEL, if NETGEAR
invents, creates, develops or otherwise acquires any Improvement relating to the
Licensed Intellectual Property, NETGEAR shall promptly notify NORTEL in writing
giving details of such Improvement and will provide NORTEL, free of charge other
than the reasonable cost of providing copies thereof, any explanations that
NORTEL may reasonably require concerning the Improvement including, without
limitation, access to copies of information, data, technology, designs,
drawings, prototypes, models, computer materials and software describing or
embodying the Improvements, provided such action does not adversely affect
NETGEAR's ability to obtain patent protection.

        6.2 NETGEAR, to the extent of its legal right so to do, and subject to
the terms and conditions of this Agreement, shall grant to NORTEL Companies and
their Affiliates a royalty free, non-exclusive, unrestricted, perpetual,
worldwide license (with a right to grant sublicenses thereunder) under all
Intellectual Property Rights in any Improvements which are invented, created,
developed or otherwise acquired by NETGEAR during the period that NETGEAR is a
Subsidiary of NORTEL and which relate to the Licensed Intellectual Property to
make, have made, use, lease, offer to sell, sell, and import products and to
copy, modify and sublicense and distribute relevant material for such purposes.

        6.3 If the Improvement relating to the Licensed Intellectual Property
involves patentable subject matter, then:

                (a)     if NETGEAR files for, or acquires, any patent thereon in
        any country, NETGEAR shall grant to NORTEL Companies a non-exclusive,
        royalty free, unrestricted, full term license (with a right to grant
        sublicenses thereunder) under any such patents to make, have made, use,
        lease and sell, offer for sale and import; and

                (b)     if NETGEAR intends to file patent application(s) only in
        certain countries, NETGEAR shall, within such time as will enable a
        NORTEL Company to make timely patent applications in other countries,
        provide NORTEL, at its request, with all signatures and documents
        necessary for filing applications for and obtaining such patents in such
        other countries, provided a NORTEL Company shall file such patent
        applications at its own expense (but with such assistance as NETGEAR may
        properly give) and NETGEAR shall be granted, if it so requests, a
        non-exclusive, free, unrestricted, full term license (with the right to
        grant sublicenses) under such patents.

                                       6
<PAGE>   9
      6.4 In the event NETGEAR transfers or assigns to a NORTEL Company or its
designee all or part of its interest in any Improvement pursuant to section
6.03(b), the licenses granted to NETGEAR relating to the Licensed Intellectual
Property pursuant to this Agreement shall extend to any patent rights in such
Improvement.

                                   ARTICLE 7

                  PROVISION OF LICENSED INTELLECTUAL PROPERTY

      7.1 During a period of six (6) months ("Technology Disclosure Period")
commencing on the Effective Date, NORTEL shall, subject to the terms and
conditions of this Agreement, provide to NETGEAR the Licensed Intellectual
Property. The Licensed Intellectual Property shall be in the form being used by
the NETGEAR Business as of the Effective Date.

      7.2 NETGEAR shall be responsible, during the Technology Disclosure Period,
for ensuring it receives all the Licensed Intellectual Property it requires to
fully enjoy the rights licensed to it under this Agreement. Both Parties shall
cooperate fully to ensure this result.

      7.3 Any Licensed Intellectual Property that is reduced to a tangible form
and that is provided by NORTEL to NETGEAR, shall be deemed to have been
transferred to NETGEAR upon receipt of such tangible form by either a
representative of NETGEAR or a representative of a common carrier designated by
NETGEAR. Licensed Intellectual Property that is delivered by NORTEL using
photonic and/or electronic communications networks, shall be deemed to have been
transferred to NETGEAR when such technology is transmitted by NORTEL to NETGEAR.

      7.4 NORTEL shall not be obligated to create, register, or a make an
application for any new intellectual property for NETGEAR under this Agreement.

      7.5 NETGEAR shall not acquire any access rights under this Agreement
relating to any network, database, application, computer and/or system operated
by NORTEL and/or its Affiliates.

                                   ARTICLE 8

                 GRANT OF RIGHTS UNDER THE LICENSED TRADEMARKS

      8.1 NORTEL hereby grants to NETGEAR a personal, royalty-free,
non-transferable, nonassignable, indivisible, non-exclusive, worldwide-right to
use the Licensed Trademarks solely in association with NETGEAR Products, or its
related packaging or marketing materials, that were produced, manufactured or
otherwise in existence prior to the Effective Date. The Licensed Trademarks
shall not be used in such a manner that could reasonably jeopardize the validity
of the Licensed Trademarks or to damage or detract from NORTEL's goodwill or
interest in the Licensed Trademarks. Without limiting the generality of the
foregoing, NETGEAR shall not use the Licensed Trademarks in association with
NETGEAR Products, or any business activity where NORTEL believes, in its sole
discretion, such association could be detrimental to NORTEL's reputation.
Nothing in this Agreement shall prevent NETGEAR or any of its Affiliates from
using the word "Network" or any word similar thereto, alone or in connection

                                       7
<PAGE>   10
with one or more other words or designs, as a trademark, service mark, trade
name or otherwise, provided that use of such word when it is included as part of
the Licensed Trademarks shall be in accordance with the provisions of this
Article 8.

      8.2 Nothing contained herein shall authorize or grant any rights with
respect to use of the Licensed Trademarks in association with any other products
or services sold by NETGEAR in any country or territory.

      8.3 NORTEL further grants to NETGEAR the perpetual right to represent
publicly that it was once owned by NORTEL and was a Subsidiary thereof, but
nothing in this section 8.3 shall expand or extend the rights granted to NETGEAR
under the Licensed Trademarks as otherwise provided for in this Article 8.

      8.4 NETGEAR shall comply with NORTEL's instructions as to the form and
manner in which the Licensed Trademarks will be used pursuant hereto and shall
ensure that all such use is in accordance with applicable legal requirements of
any country in which the Licensed Trademarks are used. NETGEAR shall submit to
NORTEL for prior approval, in the manner in which NORTEL shall direct, all
advertising and other material on which the Licensed Trademarks appear and any
such advertising or other material shall be deemed to have been approved five
(5) business days following receipt by NORTEL unless NETGEAR is notified to the
contrary prior to the expiration of such five (5) day period. NORTEL shall also
have the right to monitor and inspect NETGEAR Products used or sold by NETGEAR
at reasonable times for the purpose of enabling NORTEL to ensure such compliance
exists. Notwithstanding the foregoing, NETGEAR shall have no obligation to
submit to NORTEL for prior approval, and may use, any such packaging,
advertisement or other material which is substantially similar to any packaging,
advertisement or other material previously approved or deemed approved under
this Section 8.4.

      8.5 NETGEAR acknowledges that all rights, title, and interest of the
Licensed Trademarks and all goodwill associated therewith are, and shall remain,
the sole property of NORTEL and no rights are conferred upon NETGEAR with
respect to the Licensed Trademarks except as specifically set forth herein. All
use of the Licensed Trademarks by NETGEAR pursuant to this Agreement shall enure
to the benefit of NORTEL.

      8.6 NETGEAR acknowledges that NORTEL has not registered the Licensed
Trademarks in all countries in which NETGEAR Products may be used or sold by
NETGEAR. NETGEAR shall take all reasonable precautions to protect the Licensed
Trademarks from infringement and advise NORTEL of any infringement or apparent
infringement as soon as it becomes known to NETGEAR.

      8.7 NETGEAR shall have the right to use the Licensed Trademarks, as herein
provided, from the Effective Date of this Agreement and continuing for a period
of one (1) year thereafter (the "Trademark Expiration Date"). Unless terminated
earlier as provided herein, the licenses granted under this Article 8 shall
terminate automatically, without notice, on the Trademark Expiration Date.

      8.8 NORTEL shall be entitled to terminate the rights herein granted to
NETGEAR under the Licensed Trademarks at any time effective upon written notice
to NETGEAR if, in NORTEL's reasonable determination, such termination is
necessary in order to protect the Licensed Trademarks.

                                       8
<PAGE>   11
      8.9 Upon termination or expiration of this Agreement and/or upon the
termination of the licenses granted under this Article 8, NETGEAR shall
forthwith discontinue the exercise of the license rights granted hereunder, and
all rights conferred upon NETGEAR hereunder to the Licensed Trademarks shall
revert to NORTEL. Thereafter, within thirty (30) days of receipt of written
request from NORTEL, NETGEAR shall deliver up to NORTEL, or at NORTEL's option
provide a certificate of destruction of all materials bearing the Licensed
Trademarks.

      8.10 Except as provided in Section 8.1, in any advertising, sales
promotion materials, press releases or any other publicity matters NETGEAR shall
not use the names "Nortel Networks", "Bay Networks", "Northern Telecom", "BNR",
"Bell Northern Research", "Nortel Networks Technology" or the name of any NORTEL
Company, or any variation thereof or language from which the connection of said
names may be applied without the prior written consent of a duly authorized
representative of NORTEL's Corporate Branding Department, which may be withheld
at NORTEL's sole discretion.

                                    ARTICLE 9

                          THIRD PARTY SOFTWARE LICENSE

      9.1 NORTEL and NETGEAR acknowledge that the NETGEAR Business may include
the use of Third Party Software. Accordingly, NORTEL, to the extent of its legal
right so to do, hereby grants to NETGEAR a sublicense to all rights NORTEL and
its Subsidiaries have in Third Party Software. Nothing herein shall (i) require
NORTEL to acquire additional rights to sublicense such rights from a third
party, (ii) perform any other actions to enable NETGEAR to obtain rights under
any such sublicense, (iii) pay any money to permit NETGEAR to obtain rights
under any such sublicense, (iv) amount to a representation that NORTEL has any
such sublicensing rights, or (v) require NORTEL to sublicense any Third Party
Software which is being used by any NORTEL Company outside of the NETGEAR
Business if the granting of such a sublicense would restrict such NORTEL Company
from continuing to use such Third Party Software.

      9.2 The rights granted under this Article 9 are subject to NETGEAR
agreeing to, and NETGEAR hereby agrees to:

               (a) observe all the applicable terms and conditions of NORTEL's
agreement with the supplier of each item of such Third Party Software
(hereinafter "the Supplier");

               (b) make reports and remittances to NORTEL in respect of
NETGEAR's use and sublicensing of such Third Party Software in a timely manner
so as to permit NORTEL to satisfy its obligations with respect to reports and
remittances to such Suppliers. NETGEAR's remittances in this regard shall
include all amounts owed by NORTEL to the Suppliers in respect of NETGEAR's use
of such Third Party Software, plus NORTEL's reasonable charges for copying,
transmitting, configuring or otherwise making available to NETGEAR such Third
Party Software, and indemnify and hold harmless NORTEL and its Subsidiaries from
any and all claims and liabilities (including reasonable legal fees and
expenses) arising out of NETGEAR's

                                       9
<PAGE>   12
use of such Third Party Software.

                                   ARTICLE 10

                            CONFIDENTIAL INFORMATION

      10.1 For the term of this Agreement and for a period of ten (10) years
thereafter, any Confidential Information of one Party (hereinafter "Disclosing
Party") received by the other Party (hereinafter "Receiving Party") under this
Agreement, shall be used, disclosed, or copied, only for the purposes of, and
only in accordance with, the provisions of this Agreement. The Receiving Party
shall use the same degree of care as it uses to protect its own Confidential
Information of a similar nature, but no less than reasonable care, to prevent
the unauthorized use, disclosure or publication of the Confidential Information.
Without limiting the generality of the foregoing, the Receiving Party shall only
disclose Confidential Information to its employees, contractors, end users and
third party sub-licensees who need to obtain access thereto consistent with such
Party's rights under this Agreement. The Receiving Party shall not make or have
made any copies of Confidential Information except those copies that are
necessary for the purposes of this Agreement; and the Receiving Party shall
affix to any copies it makes of the Confidential Information, all proprietary
notices or legends affixed to the Confidential Information as they appear on the
copies of the Confidential Information originally received from Disclosing
Party.

       10.2 The Receiving Party shall not be bound by any obligation restricting
the disclosure and use of Confidential Information set forth in this Agreement
to the extent that:

               (a) such disclosure or use

                      (i) is necessary to enable NETGEAR to provide
           specifications to suppliers for the procurement of materials, parts,
           components and assemblies for use in the manufacture, use or sale of
           NETGEAR Products, or

                      (ii) is necessary to enable end users purchasing,
           sublicensing or otherwise acquiring NETGEAR Products to operate and
           maintain such NETGEAR Products; or

              (b) such Confidential Information

                      (i) was lawfully in the public domain prior to its
           disclosure, or becomes publicly available other than through a breach
           of this Agreement,

                      (ii) was disclosed to the Receiving Party by a third party
           provided such third party, or any other party from whom such third
           party receives such information, is not in breach of any
           confidentiality obligation in respect of such information,

                      (iii) is disclosed when such disclosure is required
           pursuant to legal, judicial, or administrative proceedings, or
           otherwise required by law, subject to the Receiving Party using
           reasonable efforts to provide prior notice to the Disclosing Party to
           allow it to seek protective or other court orders, or

                                       10
<PAGE>   13
                      (iv) is disclosed, pursuant to a standard confidentiality
           agreement, to a potential purchaser, in connection with a possible
           acquisition of NETGEAR or substantially all of its assets, through an
           asset transaction, merger, stock transaction or otherwise.

      10.3 Within twenty (20) business days of the Disclosing Party's request,
the Receiving Party shall return to the Disclosing Party all Confidential
Information and all copies thereof (or such copies or portion of the
Confidential Information as the Disclosing Party specifies), or, if so directed
by the Disclosing Party, shall immediately destroy such Confidential Information
and all copies thereof (or such copies or portion of the Confidential
Information as the Disclosing Party specifies) and shall certify such
destruction to the Disclosing Party. Each Party shall notify the other Party
immediately upon learning of any unauthorized disclosure of the other Party's
Confidential Information.

                                   ARTICLE 11

                 INFRINGEMENT OF LICENSED INTELLECTUAL PROPERTY

      11.1 NETGEAR shall promptly give notice in writing to NORTEL of any
actual, suspected or threatened infringement by third parties of any Licensed
Intellectual Property.

      11.2 NORTEL has the right to exercise sole control over legal proceedings
relating to any actual, suspected or threatened infringement by third parties of
any Licensed Intellectual Property. If NORTEL exercises this right, NETGEAR
shall cooperate with NORTEL, at NORTEL's expense, in all matters relating to
such proceedings and provide NORTEL with all support that NORTEL is reasonably
necessary in order to pursue any action relating to such actual, suspected or
threatened infringement.

      11.3 If NORTEL does not exercise its rights pursuant to section 11.2, the
Parties agree to enter into good faith negotiations with regard to the
assignment of the subject Licensed Intellectual Property from NORTEL to NETGEAR
for fair value and including from NETGEAR an unrestricted grantback license
under any such assigned Licensed Intellectual Property to NORTEL and its
Subsidiaries.

                                   ARTICLE 12

                                   LIABILITY

      12.1 Nothing contained in this Agreement shall be construed as:

               (a) requiring the filing of any patent or trademark application,
      the securing of any patent or trademark, or the maintaining of any patent
      or trademark in force;

               (b) a representation or warranty of any kind by NORTEL as to
      merchantability, fitness for a particular purpose, validity or scope of
      the Licensed Intellectual Property or any Improvements relating thereto,
      or whether or not the use of the Licensed Intellectual Property or any
      Improvements relating thereto will infringe any patent or other rights of
      any other person;

                                       11
<PAGE>   14
               (c) an agreement to bring or prosecute actions or suits against
      third parties for infringement;

               (d) an obligation to furnish any assistance or any manufacturing
      or technical information not constituting Licensed Intellectual Property;

               (e) except as provided herein, conferring any right to use, in
      advertising, publicity or otherwise, any name, trade name or trademark, or
      any contraction, abbreviation or simulation thereof;

               (f) conferring by implication, estoppel or otherwise upon either
      Party any license or other right under any patent or other intellectual
      property right, except the licenses and rights expressly granted herein;
      or

               (g) an obligation on the part of one Party to indemnify the other
      Party for any reason.

       12.2 EXCEPT AS EXPRESSLY PROVIDED FOR IN THE CONTRIBUTION AGREEMENT, IN
NO EVENT SHALL ANY NORTEL COMPANY OR NETGEAR (INCLUDING THEIR SUBSIDIARIES,
AFFILIATES, SHAREHOLDERS, OFFICERS, CONTRACTORS, DIRECTORS, EMPLOYEES AND
AGENTS) BE LIABLE FOR ANY INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES OF ANY
KIND, INCLUDING WITHOUT LIMITATION, DAMAGES ARISING FROM LOST BUSINESS, LOST
SAVINGS, LOST DATA, AND LOST PROFITS, REGARDLESS OF THE CAUSE AND WHETHER
ARISING IN CONTRACT (INCLUDING FUNDAMENTAL BREACH), TORT (INCLUDING NEGLIGENCE),
OR OTHERWISE, EVEN IF THE BREACHING PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES.

                                   ARTICLE 13

                                     NOTICES

       13.1 Any and all notices or other information to be given by one of the
Parties to the other shall be deemed sufficiently given when forwarded by
prepaid registered or certified first class air mail or by facsimile
transmission, overnight courier or hand delivery to the other Party at the
following address:

      If to NETGEAR:

              4403 Great America Parkway
              Santa Clara, CA 95052
              Attention: Patrick Lo

      If to NORTEL:

                                       12
<PAGE>   15
               Nortel Networks Corporation
               8200 Dixie Road, Suite 100
               Brampton, Ontario, Canada L6T 5P6
               Facsimile: (905) 863-8431
               Attention: Vice President, Intellectual Property Law

      with a copy, which does not constitute notice, to:

               Nortel Networks Corporation
               8200 Dixie Road, Suite 100
               Brampton, Ontario, Canada L6T 5P6
               Facsimile: (905) 863-8261
               Attention: Vice-President, Mergers & Acquisitions

and such notices shall be deemed to have been received ten (10) business days
after mailing if sent by mail, and the following business day if sent by
facsimile transmission, overnight courier or delivered by hand.

      13.2 The aforementioned address of either Party may be changed to any time
by giving twenty (20) days prior notice to the other Party in accordance with
the foregoing.

      13.3 In the event of a generally-prevailing labor dispute or other
situation which will delay or impede the giving of notice by any such means, in
either the country of origin or of destination, the notice shall be given by
such specified mode as will be most reliable and expeditious and least affected
by such dispute or situation.

                                   ARTICLE 14

                              TERM AND TERMINATION

      14.1 This Agreement shall become effective on the Effective Date indicated
above and shall continue in effect unless terminated as set out in this
Agreement.

      14.2 In the event of any material breach of this Agreement, the
non-breaching Party may terminate this Agreement by giving sixty (60) days prior
written notice to the other Party. This Agreement shall not, however, terminate
under this section 14.2 if:

               (a) the other Party has cured the breach prior to the expiration
      of such sixty (60) day period; or

               (b) such breach cannot be cured within such sixty (60) day
      period, the other Party has initiated actions to cure such breach within
      such sixty (60) day period, and the other Party thereafter cures such
      breach as soon as reasonably practicable.

      14.3 In the event NETGEAR:

                                       13
<PAGE>   16
                (a)     admits in writing its inability to pay its debts
        generally as they become due;

                (b)      commits an act of bankruptcy;

                (c)     is the subject of a petition or assignment in bankruptcy
        under applicable bankruptcy laws or other similar laws, that is not
        discharged in thirty (30) days;

                (d)     files a notice of intention to make a proposal or
        otherwise seeks a reorganization under applicable bankruptcy laws or any
        other similar law or statute of any relevant jurisdiction;

                (e)     makes an assignment for the benefit of its creditors;

                (f)      consents to the appointment of a receiver or
        receiver-manager of itself or of the whole or any substantial part of
        its property; or

                (g)     enters into an arrangement with or for the general
        benefit of its creditors,

NORTEL may terminate this Agreement immediately upon notice.

        14.4    Upon termination of this Agreement:

                (a)     all licenses granted to NETGEAR under this Agreement
        shall terminate with the exception of:

                        (i)     any rights NETGEAR necessarily requires to sell,
                lease, sublicense or use any NETGEAR Products whose manufacture
                was initiated before the termination date, and

                        (ii)    any rights NETGEAR needs in order to continue to
                maintain such NETGEAR Products whose manufacture was initiated
                by NETGEAR prior to the termination date;

                (b)     NETGEAR shall, at NORTEL's option, destroy, or return
        all copies of the parts of Licensed Intellectual Property including all
        Confidential Information relating to the subject matter of Licensed
        Intellectual Property.

        14.5    termination of this Agreement shall not entitle NETGEAR to
reimbursement of any amount previously paid to NORTEL.

        14.6    Notwithstanding any termination hereunder, the provisions of
Article 1 -- Definitions, Article 5 -- Grant Back License, Article 6 --
Improvements to Licensed Intellectual Property, Article 12 -- Liability, this
Article 14 -- Term and Termination and Article 16 -- General, shall survive
this Agreement. For greater certainty, upon termination, any inconsistency
between the terms and conditions of this Article 14, and the terms and
conditions of any other Article of this Agreement, shall be resolved by deeming
the terms and conditions of this Article 14 determinative.

                                       14
<PAGE>   17
                                   ARTICLE 15

                              ASSIGNMENT OF RIGHTS

     15.1  NETGEAR shall not assign or transfer this Agreement or any of the
rights or obligations granted hereunder except in conjunction with the
subsequent sale of all or substantially all of the NETGEAR Business to the
assignee of the NETGEAR Business provided that:

               (a)  NETGEAR shall provide prior written notice to NORTEL of any
     such assignment;

               (b)  such assignee shall agree in writing to assume all
     obligations of NETGEAR hereunder and to comply with the terms of this
     Agreement; and

               (c)  all rights of NETGEAR and any of its Subsidiaries hereunder
     shall terminate on the effective date of any such assignment.

     15.2  NORTEL shall have the right to delegate or assign this Agreement to
any of its Subsidiaries without the consent of NETGEAR; provided that NORTEL
has also assigned the Intellectual Property Rights underlying this Agreement
to such Subsidiaries.

                                   ARTICLE 16

                                    GENERAL

     16.1  No agency, partnership, joint venture or employment relationship is
or shall be created by virtue of this Agreement.

     16.2  A Party shall not be liable, wholly or in part, for non-performance
or a delay in performance of its obligations under this Agreement, if such
delay is due to force majeure or contingencies or causes beyond the reasonable
control of such Party, including but not limited to, flood, wind, hurricane,
tornado, earthquake, explosion, or other similar catastrophe, hostilities,
restraint or rulers or people, civil commotion, act of terrorism, strike, labor
dispute, blockage or embargo or any act of nature, fires, accident, epidemic or
quarantine restrictions.

     16.3  The Schedules hereto, as may be modified in accordance with the term
and conditions herein, form part of this Agreement. This Agreement may only be
modified by an instrument in writing mutually agreed upon and executed by each
Party's duly authorized representatives.

     16.4  NETGEAR acknowledges that NETGEAR Products and Licensed Intellectual
Property may be subject to US export control laws, including the US Export
Administration Act and its associated regulations, and may be subject to export
or import regulations in other countries. NETGEAR agrees to comply strictly
with all such regulations and acknowledges that it has the responsibility to
obtain such licenses to export; re-export or import NETGEAR Products or
Licensed Intellectual Property as may be required after delivery to NETGEAR.

     16.5  The Parties agree that the UN Convention on Contracts for the
International Sale of Goods (Vienna, 1980) shall not apply to this Agreement
nor to any dispute arising out of this Agreement.

                                       15
<PAGE>   18
      16.6  All rights and licenses granted under or pursuant to this Agreement
by NORTEL to NETGEAR are, for all purposes of section 365(n) of Title 11 of the
United States Code ("Title 11"), licenses of rights to "intellectual property"
as defined in Title 11. NORTEL agrees that NETGEAR, as licensee of such licenses
and rights under this Agreement, shall retain and may fully exercise all of its
rights and elections under Title 11. To the extent permissible under the
relevant agreements, NETGEAR shall succeed to NORTEL as licensee with respect to
any third party software NETGEAR has sublicensed from NORTEL if NORTEL rejects
the license in a bankruptcy proceeding.

      16.7  In the event that any provision of this Agreement is found to be
invalid, voidable or unenforceable, the Parties agree that such invalidity,
voidability or unenforceability shall affect neither the validity of this
Agreement nor the remaining portions thereof, and that the provision in
question shall be deemed to be replaced with a valid and enforceable provision
most closely reflecting the intent and purpose of the original provision.

      16.8  This Agreement constitutes the entire agreement between the Parties
and supersedes all other agreements between the Parties concerning the subject
matter herein.

      [The remainder of this page is blank.]

<PAGE>   19
      16.9 This Agreement shall be governed by and construed in accordance with
the laws of the State of California (without reference to the conflicts of law
provisions thereof) and the federal laws of the United States of America
applicable therein.

      IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
Effective Date.

NORTEL NETWORKS CORPORATION            NETGEAR, INC.

/s/ [SIGNATURE ILLEGIBLE]
-----------------------------          -----------------------------------------
Authorized Signature                   Authorized Signature

-----------------------------          -----------------------------------------
Name                                   Name

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

/s/ [SIGNATURE ILLEGIBLE]
-----------------------------
Authorized Signature

-----------------------------
Name

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

                                       17
<PAGE>   20
      16.9 This Agreement shall be governed by and construed in accordance with
the laws of the State of California (without reference to the conflicts of law
provisions thereof) and the federal laws of the United States of America
applicable therein.

      IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
Effective Date.

NORTEL NETWORKS CORPORATION            NETGEAR, INC.

                                       /s/ PATRICK LO
-----------------------------          -----------------------------------------
Authorized Signature                   Authorized Signature

                                       Patrick Lo
-----------------------------          -----------------------------------------
Name                                   Name

                                       CEO
-----------------------------          -----------------------------------------
Title                                  Title

-----------------------------
Authorized Signature

-----------------------------
Name

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

                                       17
<PAGE>   21
                         SCHEDULE A - LICENSED SOFTWARE

To the extent that it is not already owned by NETGEAR, all software owned by a
NORTEL Company and used in the NETGEAR Business as of the Effective Date and
incorporated in the following products:

RT210/211 ISDN ROUTER - This product is a customization of an ISDN router
originally from CLAM router from the Scorpion division of Xylogics/Wellfleet.
Routing and user configuration software for this product was developed by
Scorpion personnel for NETGEAR use. The RT210/211 is currently discontinued by
NETGEAR but is still in use by customers and a copy of this code is on the
NETGEAR support website.

FS516 FAST ETHERNET SWITCH - uses the NET IC 100 series Chipset, which was
originally from the Net IC subsidiary of Bay Networks. The FS516 switch uses
firmware developed by the Nortel subsidiary to program the ICs when the switch
is powered on. This product has been redesigned using newer circuitry, but these
products have been shipped and are currently in use by the customer. NETGEAR
also may be using this software in the refurbishing process.

LCP100 CABLE MODEM - currently selling in the Boston area, uses
software/firmware originally from LANCity and now Arris, customized for NETGEAR
use.

FS562 AND FS566 FAST ETHERNET SWITCHES - based on the NetIC 100 chipsets using
the software developed by NetIC division of Bay Networks.

                                       18
<PAGE>   22
SCHEDULE B - LICENSED TECHNICAL INFORMATION

      1. Licensed Technical Information includes all information owned by a
NORTEL Company and used in the NETGEAR Business as of the Effective Date and
incorporated in the following general practices, procedures and documentation
standards:

      a) Engineering Information

            - NORTEL Companies Practices (NTPs),

            -  general specifications,

            -  schematic drawings,

            -  functional descriptions,

            -  application engineering support systems,

            -  design documents,

            -  feature documents,

            -  engineering manuals,

            -  safety and environmental testing and documentation requirements,

            -  telecom and cable system homologation practices,

            -  Ethernet IEEE Standards details, and

      b) Manufacturing information:

            -  assembly drawings,

            -  stock lists,

            -  part drawings,

            -  procurement information and specifications,

            -  component information,

            -  inspection information,

            -  design change control procedures,

            -  specifications for finishes, and

            -  quality assurance procedures.

      2. To the extent that it is not already owned by NETGEAR, all information
owned by a NORTEL Company which is incorporated in electrical hardware and
mechanical designs and manufacturing information used in the NETGEAR Business as
of the Effective Date in connection with or in the adaptation or development of:

            a) RT210//211 ISDN Router.

            b) LCP 100.

      3. To the extent that it is not already owned by NETGEAR, all information
owned by a NORTEL Company which is incorporated in the 10/100Mbps Switching
integrated circuit (IC) used in the NETGEAR Business as of the Effective Date in
connection with or in the adaptation or development of:

                                       19
<PAGE>   23
            a) FS516 Fast Ethernet Switch.

            b) FS562 Fast Ethernet Switch.

            c) FS566 Fast Ethemet Switch.

                                       20
<PAGE>   24
                        SCHEDULE C - LICENSED TRADEMARKS

Bay Networks

Bay Networks Logo

Nortel Networks

Nortel Networks Logo

                                       21
<PAGE>   25
                       SCHEDULE D - THIRD PARTY SOFTWARE

     Third Party Software includes all software which is licensed by a NORTEL
Company from a third party and which is used in the NETGEAR Business as of the
Effective Date, including, without limitation, that Third Party Software
incorporated in the following products:

<TABLE>
<CAPTION>
XM128 - ISDN DIGITAL MODEM PRODUCT
-------------------------------------------------------------------------------------------------------
Vendor                   Product                      Notes
-------------------------------------------------------------------------------------------------------
<S>                      <C>                          <C>
Adobe                    Acrobat Reader 3.0           Distribution Version
Adtran                   Algorithm                    Algorithm to determine SPID and Switch types in
                                                      North America. Includes license for Adtran Expert
                                                      ISDN logo.
Microsoft                Internet Explorer 3.0        Part of IEDK (Internet Explorer Developers Kit)
ZyXEL                    Windows 95/98/NT
                         drivers
-------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
PA301 - 10M PCI PHONE LINE ADAPTER PRODUCT
-------------------------------------------------------------------------------------------------------
Vendor                   Product                     Notes
-------------------------------------------------------------------------------------------------------
<S>                      <C>                         <C>
Boadcom                  Windows 95/98/NT            Includes license for Broadcom logo.
                         drivers
Regula Systems           Internet Sharing software   Based on Fatpipe software.
                                                     Includes license for Fatpipe logo.
Regula Systems           Network Service auto        Modifications to Microsoft MSDN
                         installer
Microsoft                MSDN CD                     Redistributable freeware from MSDN CD
-------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
PA101 - 10M USB PHONE LINE ADAPTER PRODUCT
-------------------------------------------------------------------------------------------------------
Vendor                   Product                     Notes
-------------------------------------------------------------------------------------------------------
<S>                      <C>                         <C>
Broadcom                 Windows 95/98/NT            Includes license for Broadcom logo.
                         Embedded drivers (ported
                         from Windows PCI
                         drivers)
Regula Systems           Internet Sharing software   Based on Fatpipe software.
                                                     Includes license for Fatpipe logo.
Regula Systems           Network Services auto       Modifications to Microsoft MSDN
                         installer
Microsoft                MSDN CD                     Redistributable freeware from MSDN CD
-------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
PE102 - PHONE LINE ETHERNET BRIDGE PRODUCT
-------------------------------------------------------------------------------------------------------
Vendor                   Product                     Notes
-------------------------------------------------------------------------------------------------------
<S>                      <C>                         <C>
Broadcom                 Windows 95/98/NT            Includes license for Broadcom logo.
                         drivers (same as PA101)
KLSI/AOX                 KLSI Embedded drivers       Ethernet drivers for KSLI microchip.
-------------------------------------------------------------------------------------------------------
</TABLE>

                                       22

<PAGE>   26

                                       23

<PAGE>   27
<TABLE>
<CAPTION>
PR356 - 56K ANALOG PHONE LINE ROUTER PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                     Notes
--------------------------------------------------------------------------------
<S>             <C>                         <C>
Broadcom        Windows 95/98/NT            Includes license for Broadcom logo.
                drivers (same as PA101)
KSLI/AOX        KSLI Embedded drivers       Ethernet drivers for KSLI microchip.
Ramp Networks   Ramp Router Firmware        Modification of their existing 2001
                                            firmware.
--------------------------------------------------------------------------------

RT210/211 - ISDN ROUTER PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                     Notes
--------------------------------------------------------------------------------
Xylogics        Hardware and Routing        Product discontinued, but software
                software                    on NETGEAR website for support
                                            reasons
--------------------------------------------------------------------------------

RT328 ISDN ROUTER, RH348 ROUTER HUB, RT 338 ISDN 10/100 ROUTER, RM 356 56K
MODEM/ROUTER W/4PT HUB, AND RT311 ETHERNET ROUTER PRODUCTS
--------------------------------------------------------------------------------
Vendor          Product                     Notes
--------------------------------------------------------------------------------
ZyXEL           Hardware and Routing
                software
ZyXEL           GUI for the RT338 and
                RT311 products.
--------------------------------------------------------------------------------

ND508/520 NETWORK DISK DRIVE PRODUCTS
--------------------------------------------------------------------------------
Vendor          Product                     Notes
--------------------------------------------------------------------------------
Realm           Hardware and Routing
Information     software
Technologies
Apache          Apache Web
Microsoft       1. 40comupd.exe-
                   upgrades, comctl32.dll
                2. W95ws2setup.exe-
                   upgrade to winsock
                   DLLs
--------------------------------------------------------------------------------

PS110/104/105 PRINT SERVER PRODUCTS
--------------------------------------------------------------------------------
Vendor          Product                     Notes
--------------------------------------------------------------------------------
Sercomm         Hardware and print
                serving software
InstallShield   Installation Program        Public software, one time fee paid
                                            by Sercomm
--------------------------------------------------------------------------------

FA310 - 10/100 MBPS PCI ETHERNET ADAPTER PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                     Notes
--------------------------------------------------------------------------------
Lite-On         Windows                     Windows 2000 is just now being
Communications  95/98/NT/Novell 3.x, 4.x,   submitted to Microsoft for
                5.x, SCO Unix, NDIS 2       inclusion on CD.
                and packet drivers
--------------------------------------------------------------------------------
</TABLE>

                                       24
<PAGE>   28

<TABLE>
<CAPTION>
FA311/312 - 10/100MBPS PCI ETHERNET ADAPTER PRODUCTS
--------------------------------------------------------------------------------------------
Vendor              Product                            Notes
--------------------------------------------------------------------------------------------
<S>                 <C>                                <C>
National            Windows                            Note on Microsoft CD
Semiconductor       95/98/2000/NT/Novell
                    4.x, 5.x and SCO Unix
                    and Linux drivers

Lite-on             Drivers for using the
Communications      National Chipset
--------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
FA410 - 10/100MBPS PCMCIA ETHERNET ADAPTER PRODUCTS
--------------------------------------------------------------------------------------------
Vendor              Product                            Notes
--------------------------------------------------------------------------------------------
<S>                 <C>                                <C>
D-Link              Windows                            Uses Abocom IC, manufactured by Cameo
                    95/98/2000/NT/Novell
                    Client and NDIS 2
--------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
FA510 - 10/100MBPS CARDBUS ETHERNET ADAPTER PRODUCTS
--------------------------------------------------------------------------------------------
Vendor              Product                            Notes
--------------------------------------------------------------------------------------------
<S>                 <C>                                <C>
Ambicom             Windows                            Manufactured by Ambicom
                    95/98/2000/NT/Novell
                    Client and NDIS 2
--------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
GA620 - GIGABIT ETHERNET FIBER PCI ADAPTER PRODUCT
--------------------------------------------------------------------------------------------
Vendor              Product                            Notes
--------------------------------------------------------------------------------------------
<S>                 <C>                                <C>
Alteon              Windows
Websystems          98/2000/NT/Novell server
                    4.x, 5.x drivers
---------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
FA101 - USB 10MB ETHERNET ADAPTER PRODUCT
--------------------------------------------------------------------------------------------
Vendor              Product                            Notes
--------------------------------------------------------------------------------------------
<S>                 <C>                                <C>
KLSI/AOX            Windows 98/2000drivers             Ethernet drivers for KSLI microcchip.
---------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
FA201 - ISA 10MB ETHERNET ADAPTER PRODUCT
--------------------------------------------------------------------------------------------
Vendor              Product                            Notes
--------------------------------------------------------------------------------------------
<S>                 <C>                                <C>
D-Link              Windows
                    95/98/2000/NT/Novell
                    client, 3.x, 4.x, 5.x and
                    NDIS2 and SCO Unix
                    drivers
--------------------------------------------------------------------------------------------
</TABLE>

                                       25

<PAGE>   29
PRODUCTS UNDER DEVELOPMENT
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GA620T - GIGABIT ETHERNET 1000BASE-T TWISTED PAIR PCI ADAPTER PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                      Notes
--------------------------------------------------------------------------------
<S>             <C>                          <C>
Alteon          Windows 98/NT drivers        Product under development.
Websystems
--------------------------------------------------------------------------------

WAXXX - PCI TO WIRELESS 11MB ADAPTER PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                      Notes
--------------------------------------------------------------------------------
Sharewave       Windows 95/98/NT             Product under development.
                drivers
--------------------------------------------------------------------------------

WBXXX - WIRELESS 11MB TO ETHERNET BRIDGE PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                      Notes
--------------------------------------------------------------------------------
Sharewave       Windows 95/98/NT             Product under development.
                drivers
--------------------------------------------------------------------------------

WAXXX - PCMCIA TO WIRELESS 11MB ADAPTER PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                      Notes
--------------------------------------------------------------------------------
Sharewave       Windows 95/98/NT             Product under development.
                drivers
--------------------------------------------------------------------------------

RD381 - ADSL (G.LITE) INTEGRATED DSL ROUTER AND FULL RATE ADSL ROUTER PRODUCTS
--------------------------------------------------------------------------------
Vendor          Product                      Notes
--------------------------------------------------------------------------------
ZyXEL           Hardware and Routing         Product under development.
                software
ZyXEL           GUI for the products.
--------------------------------------------------------------------------------

RT3XX - FIREWALL ROUTER PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                      Notes
--------------------------------------------------------------------------------
ZyXEL           Hardware and Routing         Product under development.
                software
ZyXEL           GUI for the products.
--------------------------------------------------------------------------------

NDXXX - AUDIO/VIDEO JUKEBOX PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                      Notes
--------------------------------------------------------------------------------
TBD             Video and audio serving      Product under development.
                software
--------------------------------------------------------------------------------
</TABLE>

                                       26

<PAGE>   30

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
PS1XX3 PORT AND 1 PORT PRINT SERVER PRODUCT
--------------------------------------------------------------------------------
Vendor            Product                  Notes
--------------------------------------------------------------------------------
Sercomm           Hardware and Routing     Product under development
                  software
--------------------------------------------------------------------------------

     Additional third party software is currently used by NETGEAR employes for
the following tasks:

SOFTWARE DEVELOPMENT
RedHat 5.2 and 6.0 (Linux) which includes the following:
     g++C/C+ compiler
     Perl.
     Telnet, FTP.
     Apache Web Server.
Microsoft Visual C/C++ Professional.

HARDWARE DEVELOPMENT
ORCAD

FIRMWARE DEVELOPMENT
Microsoft Visual C++
Premia Coderight Professional Edition
Clear Case

THE FOLLOWING SOFTWARE IS USED BY NETGEAR IN THE PC DESKTOP ENVIRONMENT:

VENDOR         APPLICATION
ADOBE          ACROBAT READER
FRAME          FRAMEMAKER
TECHNOLOGY
MCAFEE         VIRUSSCAN FOR WIN95
MICROSOFT      EXCEL
MICROSOFT      EXCEL 97
MICROSOFT      FRONTPAGE
MICROSOFT      INTERNET EXPLORER
MICROSOFT      INTERNET EXPLORER
MICROSOFT      MS-DOS
MICROSOFT      OUTLOOK 97

                                       27
<PAGE>   31
<TABLE>
<S>               <C>
MICROSOFT         POWERPOINT 97
MICROSOFT         PROJECT 98
MICROSOFT         SCHEDULE +
MICROSOFT         TEAM MEMBER
MICROSOFT         VISUAL BASIC
MICROSOFT         VISUAL C++
MICROSOFT         WINDOWS 95
MICROSOFT         WINDOWS NT
MICROSOFT         WORD 97
NICO MAK          WINZIP
PETER NORTON      NORTON COMMANDER
COMPUTING
VISIO CORP.       VISIO PROF. V5.0
</TABLE>

USED IN OPERATIONS SUPPORT:
Netcom Smartbit Applications

SOFTWARE APPLICATIONS
<TABLE>
<S>                     <C>
Email                   Outlook
                        Eudora
Office Suite            Microsoft Office
                        Word
                        Excel
                        PowerPoint
OS                      Windows 95
Anti-virus              Norton Antivirus
Archive / Compression   WINZIP
Browser                 Netscape
                        Microsoft IE
Reporting               Impromptu
Web Publishing          TeamSite
                        Frontpage
Graphics editing        PhotoShop
Project Management      Microsoft Project
Tech Publications       Framemaker
                        Adobe Illustrator
Enterprise              SunSystems (Systems Union)
                        Oracle
                        Unix/Solaris
Reporting               Impromptu
                        Vision
</TABLE>

                                       28

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]