Document:

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                         CONFIDENTIAL TREATMENT REQUEST

* Portions denoted with an asterisk have been omitted and filed separately with
  the Securities and Exchange Commission pursuant to a request for confidential
  treatment.

                                                                   EXHIBIT 10.20

                                VENDOR AGREEMENT

Between:

Best Buy Co., Inc.                NETGEAR, INC.                         "Vendor"

7075 Flying Cloud Drive       and 4500 Great America Parkway

Eden Prairie, MN 55344            Santa Clara, CA 95054

         1.       License to Sell Products. Subject to the terms of this
Agreement, Vendor grants Best Buy Co., Inc., and its affiliates and subsidiaries
("Best Buy"), a non-exclusive, non-transferable license to distribute the
products described in Exhibit A, as may be amended from time to time by mutual
agreement (the "Products"), to end users and commercial buyers/licensees in the
United States, Canada and other territories as agreed from time to time, solely
through its present and future retail stores, Internet Websites, distribution
centers and mail order distribution centers. Best Buy may obtain Products by
placing orders under this Agreement that are accepted by Vendor. Vendor shall be
deemed to have accepted a purchase order from Best Buy unless Vendor sends Best
Buy a written rejection within 2 business days of its receipt thereof. Vendor
will acknowledge its receipt of a purchase order by sending Best Buy an EDI997
(Functional Acknowledgement). Each order placed with Vendor for Products shall
be governed by this Agreement, regardless of any additional or conflicting term
in Best Buy's order. Orders must be for minimum lot sizes (case carton
quantities) and must conform to the ordering guidelines as described in Vendor's
Retailer Manual that is in effect on the Effective Date of this Agreement
(attached and incorporated into this Agreement as Exhibit D) and as amended from
time to time.[*].

         2.       Pricing and Taxes.

                  -        Prices: Subject to the terms of this Agreement,
                           Vendor will sell the Products set forth on Exhibit A
                           to Best Buy at the prices set forth therein; as may
                           be changed from time to time. Vendor guarantees
                           competitive pricing with that offered by Vendor to
                           other like retailers for the same quantity purchased;
                           provided that prices must be compared taking into
                           account all of the terms and conditions of the
                           transaction at the time it was offered by Vendor.

                  -        Taxes: Vendor's prices do not include sales, use,
                           excise, or other taxes, however designated (except
                           taxes based on Vendor's net income). The amount of
                           any valid present or future sales, use, excise, or
                           other tax which is attributable to Best Buy shall be
                           paid by Best Buy; or in lieu thereof. Best Buy shall
                           provide Vendor with a tax exemption certificate
                           acceptable to the taxing authorities.

         3.       Payment. Vendor shall electronically submit an invoice to Best
Buy within 2 business days of the day Product is shipped. Invoice credit terms
will be as set forth in the Vendor Program Agreement, as described herein, which
may be updated from time to time by the parties' mutual agreement. The
designated credit term shall commence on the date Best Buy receives Product at
the FOB point agreed upon by the parties in Section 4 hereof. No additional
charges of any type beyond the price of the Products shall be added to an
invoice without Best Buy's express written consent other than those taxes
described in Section 2 of this Agreement. Vendor may withhold shipment of
Products if Best Buy is delinquent in making undisputed payments under this
Agreement. All transactions must be valued and paid in U.S. currency. Best Buy
may offset from Vendor's invoice any indebtedness of Vendor, if: (a) the
indebtedness is related to the performance of this Agreement; and (b) Best Buy
submits either prior to or along with its payment from which the offset is made
- sufficient documentation justifying the offset under the terms of this
Agreement.

         Vendor's Invoices should be via EDI, as set forth in Section 10. Best
Buy Purchasing LLC is a controlled subsidiary of Best Buy Co., Inc. Best Buy
Purchasing LLC will pay Vendor invoices in accordance with this Section 3 and
shall initially assume title to all Products (subject to Vendor's security
interest, described above). Best Buy Purchasing LLC will resell and transfer
title to such Products to Best Buy Co., Inc.'s other affiliates and subsidiaries
to

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distribute the Products through the sales channels provided in Section 1. Best
Buy Co., Inc. guarantees the performance required of Best Buy Purchasing LLC
under this Agreement.

         4.       Shipping.

                  -        Select Shipping Terms: One of the following ground
                           shipment terms shall be agreed upon at the time this
                           Agreement is executed by checking the applicable box.
                           No other ground shipment terms other than the two
                           options described below may be used.

         [*]      FOB Origin, Freight Collect and Allowed. Best Buy shall be
                  responsible for carrier selection, routing instructions and
                  pick-up appointments at Vendor's domestic origin facility. In
                  addition, Best Buy is responsible for carrier freight
                  payments, submitting freight claims for loss and damage,
                  scheduling appointments at destination, and tracking and
                  tracing freight in transit. Title and risk of loss passes to
                  Best Buy Purchasing LLC upon delivery to Best Buy at Vendor's
                  domestic origin shipping dock. Vendor agrees to have Products
                  in ship-ready condition on the ship date specified in the
                  applicable purchase order and provide forty-eight (48) hour
                  notice of pick-up request to Best Buy for truckload shipments
                  and twenty-four (24) hour notice of pick-up request to Best
                  Buy for less-than-truckload shipments. Vendor will pay a
                  freight allowance to Best Buy pursuant to the attached
                  Collaborative Transportation Agreement, as amended from time
                  to time by the parties.

         [*]      FOB Destination, Freight Prepaid by Vendor. Vendor shall be
                  responsible for carrier selection, routing instructions and
                  freight payment. Title and risk of loss passes to Best Buy
                  Purchasing LLC upon delivery to Best Buy at the destination
                  specified by Best Buy, which may include but is not limited to
                  its stores, distribution centers, and third-party fulfillment
                  providers. Vendor is encouraged to utilize Best Buy's
                  preferred carriers to improve on-time performance, minimize
                  transit times and reduce the need for expedited shipments.

                  -        Existing Vendor Conversion to FOB Origin, Freight
                           Collect and Allowed Terms: In the event Vendor
                           currently ships Product to Best Buy FOB Destination,
                           Freight Prepaid by Vendor, Vendor may be converted to
                           the preferred FOB Origin, Freight Collect and Allowed
                           terms as described above, via its Collaborative
                           Transportation Management Program ("CTM"). Under CTM,
                           Best Buy will receive a negotiated freight allowance
                           from the vendor in exchange for assuming the expenses
                           associated with inbound carrier freight previously
                           born by Vendor. Freight allowance to be paid to Best
                           Buy with respect to FOB Origin, Freight Collect and
                           Allowed terms will be agreed between the parties in
                           writing and attached hereto as the Freight Allowance
                           Agreement. For example, the negotiated freight
                           allowance can reflect a flat percentage of invoice
                           value (ad valorem), or dollars and/or cents per
                           pound, or dollars and/or cents per box or as actual
                           freight expense incurred.

                  -        Expedited Shipments: Terms for expedited shipments
                           will be FOB Origin, Freight Collect. The parties will
                           determine responsibility for expedited shipment
                           expenses on a case by case basis depending upon which
                           party caused the need for the expedited shipment; In
                           the event current shipping terms are FOB Origin,
                           Freight Collect and Allowed, and the parties
                           determine that the need for an expedited shipment was
                           not the fault of Vendor, Vendor shall still be
                           responsible for reimbursing Best Buy for the agreed
                           Freight Allowance expense.

                  -        Shipping and Routing Guide: Vendor shall follow the
                           terms and conditions stated in Best Buy's Shipping
                           and Routing Guide, attached hereto as Exhibit B.

                  -        Other Charges: Any and all charges related to special
                           requests of Vendor to carrier, including loading
                           assistance, detention, or any other instructions,
                           prior to title passage, are the responsibility of the
                           Vendor.

                                      -2-

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                  -        Direct Import Agreement: Terms for directly imported
                           Products will be set forth in a Direct Import
                           Agreement, which may be attached hereto.

                  -        Bill of Lading: Vendor shall use the standard Bill of
                           Lading form, attached hereto as Exhibit C.

         5.       Shipping Performance Management.

                  -        Right Time: Vendor agrees to deliver Product on a
                           timely basis to Best Buy at the FOB point in
                           accordance with the prearranged delivery and/or
                           pick-up dates the parties agree upon from time to
                           time. For FOB Origin, Freight Collect terms, Product
                           must be ready for delivery to Best Buy on the pick-up
                           date agreed upon by the parties. For FOB Destination,
                           Freight Prepaid terms, Product must be delivered to
                           Best Buy within two days of the delivery date
                           committed to by Vendor. In the event Vendor is in
                           breach of this "Right Time" shipping commitment, Best
                           Buy may issue a charge-back to Vendor (subject to the
                           limitations set forth in this Section 5) in each
                           instance of breach, for 1 % of the total cost of the
                           particular Stock Keeping Unit ("SKU") subject to the
                           breach, as identified on the corresponding PO for
                           each day early or late, as the case may be, up to a
                           maximum of 5%. Such amount shall be considered
                           liquidated damages, as it is reasonable in light of
                           Best Buy's anticipated loss for Vendor's
                           non-conformance.

                  -        Right Quantity: Vendor agrees to deliver the right
                           quantity of Product to Best Buy in accordance with an
                           accepted PO. However, Best Buy shall consider a
                           PO-SKU-Line quantity variance of up to 3% or 5 units,
                           whichever is more, a conforming delivery. In the
                           event that Vendor delivers a non-conforming quantity,
                           Best Buy may issue a charge-back to Vendor (subject
                           to the limitations set forth in this Section 5) for
                           an amount equal to the quantity non-conformance
                           percentage multiplied by the total cost of the
                           particular SKU subject to the non-conformity, as
                           identified on the corresponding PO; not to exceed a
                           maximum of 5%. Such amount shall be considered
                           liquidated damages, as it is reasonable in light of
                           Best Buy's anticipated loss for Vendor's non-
                           conformance.

                  -        Program Implementation: Vendor agrees to comply with
                           Best Buy's implementation schedule for the Shipping
                           Performance Management Program, as described above
                           (Right Time; Right Quantity), Upon notice to Vendor
                           of the commencement of the Program, Best Buy will
                           provide information concerning Vendor's shipping
                           performance to Vendor for a period of not less than 8
                           consecutive weeks and not more man 12 consecutive
                           weeks ("Implementation Period"). Vendor will not be
                           subject to charges for shipping non-conformance
                           during or before the Implementation Period. Following
                           the Implementation Period, Vendor will be subject to
                           the charges for shipping non-conformance as specified
                           in this Section 5. Best Buy will identify and report
                           incidents of Vendor's non-conforming shipments and
                           make available information concerning each incident
                           for 4 weeks so Vendor may investigate and assess the
                           validity of each incident of shipping non-conformance
                           reported by Best Buy.

                  -        Achieving Shipping Performance Standards: If Vendor
                           maintains shipping conformance for Right Time and
                           Right Quantity at a rate of 80% or better for a
                           period of 13 consecutive weeks based upon the total
                           PO-SKU-Lines ordered by Best Buy, Best Buy will
                           suppress future charges for non-conformance, provided
                           that Vendor continues to maintain weekly shipping
                           performance at or above 80% conformance. In the event
                           unforeseen circumstances prevent Vendor from
                           maintaining this 80% threshold, Vendor will be
                           permitted to perform below 80% for 2 weeks of a
                           rolling 6-week period without reinstatement of
                           charges for non-conformance. If Vendor first
                           qualifies for suppression of charges but then later
                           fails to maintain the 80% threshold performance
                           standard or its limited exception for unforeseen
                           circumstances, Vendor must reestablish shipping
                           standards of 80% or greater for 13 consecutive weeks
                           before non-conformance charges will again be
                           suppressed.

                                       -3-

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         6.       Price Protection; Notice of Price Increases.

                  -        Price Protection: Best Buy may apply to receive price
                           protection credit upon the effective date of a price
                           decrease as to the Products in Best Buy's on-hand
                           inventory, which shall include Product wherever
                           located (e.g., inventory located in stores,
                           warehouses, return canters and Product in transit
                           between these locations or from Vendor to Best Buy).
                           Best Buy will determine its on-hand inventory as of
                           the effective date of price protection and will
                           submit a cost adjustment claim to Vendor for payment.
                           Price protection adjustments to in-transit Product
                           shall be reflected on the purchase orders prior to
                           them being received into Best Buy distribution
                           centers. Best Buy's right to receive price protection
                           credit under this Section 6 is subject to and shall
                           be made in accordance with the terms of Vendor's
                           then-current Retailer Manual. Subject to Best Buy's
                           right to conduct post-audit reconciliation, the
                           Retailer Manual shall require at a minimum that Best
                           Buy submit documentation to Vendor showing inventory
                           eligible to receive price protection credit within
                           [*] after the effective date of the price decrease.

                  -        Notice of Price Increases: Vendor will give Best Buy
                           [*] prior written notice of the effective date of any
                           increases to the cost of Product to Best Buy. Price
                           increases are based on the purchase order
                           acknowledgement date, not the shipment or purchase
                           order date.

         7.       Returns. Best Buy shall have the right to return at [*] any
Products (i) that infringe upon any patent, trademark, trade secret, copyright,
right of privacy or publicity, or any other tangible or intangible proprietary
or intellectual property right; (ii) that are not manufactured, packaged, or
labeled in accordance with applicable laws, ordinances, rules, and regulations;
(iii) that are shipped in error or in non-conformance with Best Buy's purchase
order; or (iv) that are damaged or defective, or where use of such Products has
caused injury to person or property.

For the purposes of this Agreement, the term "defective," when referring to the
Products means+

         -        Product that has defects covered by the warranty specified in
                  the documentation that accompanies the Product when shipped;
                  or

         -        Product that has been returned by a customer in accordance
                  with Best Buy's return policy after the customer has opened
                  the Product (i.e. the wrapping, seal, or box has been opened),
                  but in no event more than one year after the last applicable
                  model receipt by Best Buy from Vendor, regardless of whether
                  the Product is otherwise defective.

         Before returning any Product, whether for warranty or non-warranty
action (including exchanges under Section 10 of this Agreement), Best Buy must
obtain a return authorization ("RA") number from Vendor. Vendor agrees to
provide a RA number, where appropriate and in accordance with this Agreement,
[*] of request. Vendor also agrees to allow delivery of return product as of the
day the RA number is issued to Best Buy, subject to the following:

         (i)      Vendor need not accept shipments of return Products that
                  Vendor receives more than [*] after its issuance of a RA
                  number;

         (ii)     Best Buy shall prepay shipping charges for all defective
                  Product returns (in connection with the return shipment for
                  warranty items, Best Buy may issue a charge-back to Vendor for
                  reimbursement of Best Buy's reasonable shipping charges);

         (iii)    If an appointment is required for Best Buy's return delivery,
                  Vendor agrees to provide an appointment within 3 days of the
                  carrier's expected time of arrival; and

         (iv)     Vendor need not accept any Product that is returned other than
                  in accordance with the terms of this Agreement.

                                       -4-

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         Any and all changes to Vendor contact personnel must be communicated as
soon as commercially practicable to the following address:

                     Best Buy Co., Inc.
                     Returns Department
                     7275 Flying Cloud Drive
                     Eden Prairie, MN 55344

         Within 90 days alter Vendor's receipt of a Product returned to Vendor
in accordance with the terms of this Agreement, Vendor shall either:

         (a)      issue and send to Best Buy a credit memo in the amount of Best
                  Buy's net purchase price for the returned Product (such credit
                  memo shall reference either Best Buy's RGM number or the RA
                  number); or

         (b)      if Vendor receives Product from Best Buy that Vendor believes
                  is non-returnable, Vendor shall contact Best Buy and promptly
                  ship such Product back to Best Buy's originating Product
                  returns location (in this case, the shipment cartons must
                  reference the original return shipment's RA or RTV number).

         8.       Debit Balances. If Vendor has a "Debit Balance" (defined as
any balance due and owing from Vendor to Best Buy), the amount owed may be
deducted by Best Buy from the next payment to Vendor. If there is no outstanding
balance due to Vendor, then Vendor shall pay the debit balance to Best Buy in
full, [*] notification from Best Buy. If the amount owed is disputed, Vendor and
Best Buy agree to use commercially reasonable to reconcile the account and, in
any event, Vendor shall remit payment of the undisputed amount to Best Buy [*]
of notification. Payment shall be made in the form of check or wire; payment via
a credit memo is not acceptable.

         9.       Discontinued Product. A "Discontinued Product" means any
Product that Vendor has stopped manufacturing or any Product that undergoes a
material change in appearance or packaging. Vendor will use commercially
reasonable efforts to provide Best Buy with at least [*] advance written notice
of the occurrence of a Discontinued Product, or as soon as possible in the event
that the discontinuance is caused by actions taken by a component part supplier
of Vendor. Upon notice of such Discontinued Product, Best Buy may, without
penalty or liability, cancel any outstanding purchase orders pertaining to the
Discontinued Product. With respect to Best Buy's existing inventory of
Discontinued Product, Vendor and Best Buy shall negotiate in good faith to
determine the proper disposition of such inventory.

         10.      Electronic Data Interchange; Web-Based Electronic Commerce. As
a condition to entering into this Agreement, the parties agree to exchange
certain documents electronically via (i) traditional Electronic Data Interchange
("EDI"); or (ii) Web-Based Electronic Commerce ("EC"). In particular, the
parties shall exchange the following documents via either EDI or EC:

         Required:

         -        Purchase Order ("PO"): EDI850. Vendor must be compliant with
                  EDI or EC within 2 months of its receipt of the first PO from
                  Best Buy (Vendor will not accept verbal purchase orders unless
                  confirmed by an EDI850).

         -        Electronic Invoices: EDI810. Vendor must be compliant on EDI
                  or EC within 3 months of its receipt of the first PO from Best
                  Buy.

         -        Purchase Order Changes: EDI860. Vendor must be compliant on
                  EDI or EC within 2 months of its receipt of the first PO from
                  Best Buy.

         -        Advance Ship Notice ("ASN"): EDI856. including UCC128 barcode
                  direct to store orders. Vendor must be ready to test for ASN
                  compliance on EDI or EC within 6 months of its receipt of the
                  first PO from Best Buy, or upon Best Buy's request thereafter
                  based upon Best Buy's priority schedule.

         -        Functional Acknowledgement: EDI997. Vendor shall send EDI997
                  so that it is received within 2 business days of Best Buy's
                  PO.

                                       -5-

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         Optional:

         Along with the required documents identified above, Vendor must use
reasonable efforts to explore the possibilities of implementing the following
documents:

         -        Product Activity: EDI852 (sales and inventory information,
                  delivered weekly to Vendor by Best Buy).

         -        Store Text Message: EDI864 (store addresses).

         -        Other EDI documents as they become available.

         Additional Requirements:

         -        Prior to its acceptance of a Best Buy PO, Vendor must ensure
                  all Products will be marked with a valid UPC number, as well
                  as ensuring that such Products are setup in the Best Buy
                  system.

         -        At Best Buy's request, Vendor must re-send all electronic
                  documents using a new EDI ISA control number. Vendor must
                  ensure duplicate transmissions are not fed into Vendor's
                  database. Best Buy will not accept duplicate shipments and
                  will return such shipments at Vendor's expense (including any
                  carrying and handling costs).

         -        Traditional EDI must be set up directly with the Vendor, not
                  through a third-party service or sales representative.

         11.      Product Exchanges; Vendor Program Agreement. As part of Best
Buy's promotion of the Products, Best Buy shall perform the "Retailer's
Responsibilities" described in Vendor's Retailer Manual, subject to an in
accordance with those particular terms of Vendor's Retailer Manual. In order to
facilitate Best Buy's management of its inventory of Products, Best Buy may
exercise the "Product Exchange Privileges" described in Vendor's Retailer
Manual, subject to an in accordance with those particular terms of Vendor's
Retailer Manual.

         Best Buy and Vendor may agree upon additional business terms from time
to time concerning matters such as payment terms. Market Development Funds
("MDF") payment, stock rotation, volume rebates, new store allowances, etc. If
agreed upon, such terms shall be contained in the attached Vendor Program
Agreement, as amended form time to time by the parties.

         12.      Service. Best Buy is committed to meeting our customer's high
expectations concerning post-sale service and warranty repairs. Accordingly,
Vendor shall perform technical support described in the "Netgear's
Responsibilities" section of Vendor's Retailer Manual, subject to and in
accordance with the terms of the Retailer Manual. A comprehensive Product
Service Agreement between the parties may also be necessary to ensure customer
satisfaction. Unless otherwise determined by Best Buy, the attached Product
Service Agreement, if attached, controls the servicing and warranty repairs of
the Products and must be signed simultaneously with or prior to the signing of
this Agreement.

                  13.      Proprietary Rights. Vendor grants Best Buy a license
to use, exhibit, reproduce, publish, publicly perform the Vendor trade names,
trademarks and service marks set forth in the attached Vendor's Retailer Manual
(the "Vendor Trademarks"), only as described in the attached Vendor's Retailer
Manual, and only to promote, advertise and sell the Products. Further, Vendor
may provide to Best Buy, without limitation, Product specifications, images, and
other textual, graphical and/ or multimedia content regarding the Products for
use in preparing advertising and promotional material ("Vendor Content"). Vendor
hereby grants Best Buy a license to use, exhibit, excerpt, reformat, modify,
reproduce, publish, publicly perform and transmit via the Internet and otherwise
use such Vendor Content for the purpose of advertising and promoting the
Products. Upon termination of this Agreement, Best Buy may continue to advertise
and promote the Products, using the Vendor' Trademarks and Vendor Content until
inventory depletion. Best Buy acknowledges that Vendor is the exclusive owner of
the Vendor Trademarks and that this Agreement does not grant Best Buy any right,
title or interest in or to the Vendor Trademarks. Further, all use of the Vendor
Trademarks by Best Buy inures solely and exclusively to Vendor's benefit. This
Agreement does not grant Vendor any right or license to use Best Buy's trade
names, trademarks or service marks, promotional material, copy, graphics,
themes, strategies, inventions, program, and files without first obtaining Best
Buy's express written approval.

                                       -6-

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         14.      Software. Best Buy may procure for and distribute licenses to
use Vendor software ("Software") and accompanying documentation by placing
orders under this Agreement. The terms of the licenses for such Software to
which end-users are subject are included as a "shrink-wrap" license agreement
with the Software and in its accompanying documentation when shipped by Vendor
(the "License Agreement").

         15.      Confidentiality. The terms and conditions (but not the
existence) of this Agreement, the Software and its documentation, and any
information marked as confidential or, regardless of form
(written/electronic/oral) or marking, is of the nature that a reasonable person
would understand its owner would not want it disclosed to the public will be
considered to be Confidential Information. Further, Confidential Information
shall also include (i) matters of a technical nature such as trade secret
processes or devices, know-how, data, formulas, inventions (whether or not
patentable or copyrighted), specifications and characteristics of products or
services planned or being developed, and research subjects, methods and results,
(ii) matters of a business nature such as information about costs, profits,
pricing, policies, markets, sales, suppliers, customers, product plans, and
marketing concepts, plans or strategies, (iii) matters relating to project
initiatives and designs, (iv) matters of a human resources nature such as
employment policies and practices, personnel, including individual names,
addresses, and telephone numbers; compensation and employee benefits, (v) other
information of a similar nature not generally disclosed to the public. Each
party agrees not to disclose Confidential Information except to employees on a
third party subject to a similar confidentiality agreement, which have a need to
know to perform their responsibilities. Each party agrees to take at least the
same precautions to protect Confidential Information as such party would utilize
to ensure the protection, confidentiality and security of its own confidential
information. Each Party, at its own expense, will properly use security
procedures which are reasonably sufficient to ensure that all transmissions of
documents are authorized and to protect its business records and data from
improper access.

         Upon the expiration or earlier termination of this Agreement, a party
may, in writing, request either the prompt return or destruction, and a written
certification of such destruction, of any Confidential Information provided to
the other party.

         Notwithstanding the foregoing, each Party may disclose the terms and
conditions of this Agreement: (i) as required by any court or other governmental
body; (ii) as otherwise required by law; (iii) to legal counsel of the parties;
(iv) in connection with the requirements of a public offering or securities
filing; (v) in confidence, to accountants, banks, and financing sources and
their advisors; (vi) in confidence, in connection with the enforcement of this
Agreement or rights under this Agreement; or (vii) in confidence, in connection
with a merger or acquisition or proposed merger or acquisition, or the like.

         16.      Vendor Obligations

         Vendor shall provide to Best Buy, at no charge, adequate copies of any
necessary training and Product information brochures, and will assist with the
training of Best Buy personnel on Best Buy's premises as reasonably necessary so
that Best Buy's sales and service personnel will be adequately knowledgeable
with respect to the Products, Vendor must deliver Product samples on a timely
basis to Best Buy and provide Best Buy with detailed and accurate information
concerning product specifications and end-user warranties for all Products.
Vendor shall use best efforts to begin to include security source tagging
technology inside Product packaging.

         Vendor shall notify Best Buy within ten (10) days: (a) regarding the
existence and nature of Vendor's knowledge of any material non-compliance with
applicable laws (or any reasonable possibility thereof) to the extent the
non-compliance relates to the Products that Vendor provides to Best Buy under
this Agreement, or (b) if Vendor receives notice of a claim from a consumer
(which, individually or in the aggregate, may reasonably be expected to result
in material liability to Vendor and/or Best Buy) that a Product is defective or
does not comply with all applicable laws.

         17.      Representations and Warranties. Vendor represents and warrants
                  to Best Buy that:

                  -        Vendor has the authority to enter into this Agreement
                           and that the persons signing this Agreement on behalf
                           of Vendor are authorized to sign.

                                       -7-

<PAGE>

                  -        The Products shall conform with Vendor's applicable
                           standard end-user Product warranty during the
                           specified warranty period.

                  -        It will comply with all applicable laws and
                           regulations in performing its obligations under this
                           Agreement, including but not limited to laws and
                           regulations pertaining to product design,
                           manufacture, packaging and labeling and, if
                           applicable, importation, the Foreign Corrupt
                           Practices Act, and laws and treaties designed to
                           protect human rights.

         Best Buy acknowledges that Vendor's end-user warranties do no apply to
any Product that has been: (i) altered, except by Vendor or in accordance with
its instructions, or (ii) used in conjunction with another vendor's product if
such use results in the defect, or (iii) damaged by improper environment, abuse,
misuse, accident or negligence. Replacement parts furnished under this warranty
may be refurbished or contain refurbished components.

         THE FOREGOING VENDOR WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES
EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY LIMITATION WARRANTY OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE. ANY PRODUCT THAT IS IDENTIFIED IN THE PRICE
LIST AS AN "AS IS" PRODUCT, IS FURNISHED "AS IS" WITH NO WARRANTIES OF ANY KIND.

         Best Buy represents and warrants to Vendor that:

         -        Best Buy has the authority to enter into this Agreement, and
                  that the persons signing this Agreement on behalf of Best Buy
                  are authorized to sign.

         -        Best Buy agrees to exert commercially reasonable efforts to
                  promote and sell the Products consistent with Best Buy's
                  sales, marketing and merchandising plans, as may be amended
                  from time to time in Best Buy's sole and reasonable
                  discretion.

         -        It will comply with all applicable laws and regulations in
                  performing its obligations under this Agreement.

         18.      Liability Limitations. EXCEPT FOR LIABLITY ARISING FROM AN
INDEMNIFICATION OBLIGATION, BREACH OF CONFIDENTIALITY, GROSS NEGLIGENCE, OR
WILLFUL MISCONDUCT, IN NO EVENT WILL EITHER PARTY BE LIABLE FOR SPECIAL,
INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING ANY SUCH DAMAGES
RESULTING FROM INACCURATE OR LOST DATA OR LOSS OF USE OR PROFITS ARISING OUT OF
OR IN CONNECTION WITH THIS AGREEMENT, THE FURNISHING OF SERVICES, OR THE USE OR
PERFORMANCE OF PRODUCTS, EVEN IF INFORMED OF SUCH DAMAGES.

         19.      Term and Termination.

                  Term: This Agreement will commence upon the effective date,
which shall be the date when it has been fully executed by authorized
representatives of both parties, and shall continue until it is terminated
according to its terms.

                  Termination: Either party may terminate this Agreement at any
time without cause upon 90 days written notice to the other party. In the event
of a material breach of this Agreement, this Agreement may be terminated
immediately by the non-breaching party, provided that notice describing the
breach has been provided to the breaching party and the breaching party has
failed to cure such breach within 30 days of receipt of notice.

                  20.      Indemnification. Vendor will indemnify, defend, and
hold Best Buy harmless from and against any and all third-party claims, actions,
liabilities, losses, costs and expenses ("Claims") arising from or in connection
with this Agreement or the Products provided under this Agreement, if and to the
extent the Claim is based on an allegation that: (i) a Product infringes a
United States, Canadian or European Union-based patent or any copyright,
trademark, trade secret or other valid intellectual property right; or (ii) a
negligent act or omission of Vendor, including but not limited to Claims based
upon bodily injury, death, or destruction of physical property (other than the
Products); or (iii) the Products, or use thereof, caused personal injury, death
or real or personal property damage.

                                       -8-

<PAGE>

         Further, Vendor agrees to fully indemnify, defend and hold Best Buy
harmless against any reasonable Claims, losses, costs and expenses resulting
from a voluntary or government initiated product recall.

         For infringement Claims, Vendor may, at its option and expense, procure
the right for the end user to continue using the Product, replace or modify the
Product so that it becomes non-infringing (if practical in the reasonable
opinion of both parties), or accept a return of the Product and refund an amount
equal to the price paid by Best Buy for the infringing Product.

         Each party agrees to indemnify, defend and hold the other harmless from
and against any and all Claims arising from or in connection with its own
failure to comply with all applicable laws, rules and regulations while
performing its obligations under this Agreement.

         Vendor's indemnity obligations do no apply to any Claims to the extent
arising from: (i) Best Buy's alterations to Products, (ii) Best Buy's use of
Products in conjunction with another vendor's product, (iii) damage to Products
by Best Buy's improper environment, abuse, misuse, accident or negligence; or
(iv) any of the foregoing acts or omissions, whether or not committed by Best
Buy, if Best Buy directed or encouraged the acts or omissions, and such directed
or encouraged acts or omissions are not in accordance with the Product's
instructions.

         Each party's indemnity obligations are conditioned on the other giving
the indemnifying party prompt written notice of any Claims, tendering the
defense of all Claims to the indemnifying party, reasonably assisting the
indemnifying party in that defense (the indemnifying party to pay the other's
reasonable out-of-pocket expenses), and to granting the indemnifying party the
right to control settlement and resolution. The indemnifying party has no
obligation to pay any costs of liability, settlement and defense, including
attorney fees and costs, agreed to by the other party without the indemnifying
party's consent, provided that the indemnifying party is fulfilling its
indemnity obligations.

21.      Insurance. Vendor agrees to procure and maintain Comprehensive General
Liability Insurance with limits not less than [*]. Best Buy shall be added to
such coverage as an additional insured with respect only to the operations of
Vendor. Vendor shall provide a Certificate of Insurance evidencing such
insurance and providing that Vendor's insurers shall provide Best Buy with 30
days advance written notice of cancellation of such policies.

22.       Assignment. This Agreement may not be assigned by either party without
first obtaining the other party's express written consent, which consent shall
not be unreasonably withheld; provided, however, that either party may assign
this Agreement, without obtaining the other's express written consent, to (i) a
successor corporation resulting from a merger, consolidation, or non-bankruptcy
consolidation or to a purchaser of all or substantially all of the assigning
party's assets or a majority, or controlling interest in the assigning party's
voting stock, provided that the purchaser's net worth at the time of purchase is
equal to or greater than that of the assigning party; and (ii) a present or
future subsidiary or affiliate. Any attempted assignment in violation of this
Agreement shall be null and void.

If Vendor assigns payments to an assignee/factor, Vendor understands and agrees
that Vendor and the assignee/factor will be required to sign Best Buy's standard
acknowledgement form to assure Best Buy that assignee/factor understands the
rights being assigned

23.      Audit Rights. Each party shall have the right to audit the other party
         to assure compliance with the obligations (including the proper
         issuance or taking of charge backs, credit memos and deductions) under
         this Agreement. Audits under this Section 23 shall only be conducted:
         (a) upon reasonable prior written notice to the audited party; (b) at
         reasonable times; (c) during regular business hours; (d) at the
         auditing party's expense (except as set forth below); (e) no more than
         once per calendar year; and (f) no more than once with respect to
         particular records. All information obtained by the auditing party in
         the course of an audit shall be considered Confidential Information of
         the audited party. If the audit reveals that a party is not performing
         in material compliance with its payment obligations under this
         Agreement, then, in addition to any other legal and equitable rights
         and remedies available, the party not in compliance shall reimburse the
         other for the reasonable costs of the audit.

                                       -9-

<PAGE>

24.      Claims and Charge-backs.

                  -        Claims: Neither party hereto may raise a claim of any
                           nature relative to this Agreement more than 2 years
                           after the date of any such cause of action accrued.

                  -        Charge-backs and Credits: [*]. Vendor agrees to use
                           Best Buy's Dispute Control Document, available at
                           www.extendingthereach.com. to communicate any such
                           denials. If no denial is sent to Best Buy within 90
                           days, Best Buy will assume the charge-backs or credit
                           requests were accepted by the Vendor, and Vendor
                           hereby agrees not to contest such deductions or
                           credit requests.

     3.  24. Avoidance of Conflict of Interest; Code of Conduct Standards.
Vendor agrees to respect and abide by Best Buy's conflict of interest and code
of conduct policies, which may be amended from time to time and which will be
made available to Vendor upon request. Vendor agrees to contact Best Buy's Open
Line (1-800-520-1132) for information concerning Best Buy's policies and to
discuss any ethical or conduct concerns that they may have as a result of their
contact with Best Buy personnel. Vendor understands and acknowledges that Best
Buy's conflict of interest and code of conduct policies address Vendor-paid
travel, gifts and gratuities, offering and accepting bribes, family members and
close personal relationships involving employees of both parties, personal
investments in the other party, Vendor-sponsored charitable and other events,
Vendor product samples, Vendor promotional copies, direct personal purchases
from Vendors by Best Buy employees, and awards, incentives and other spiffs from
vendors. Vendor agrees to avoid conflict of interest situations with Best Buy,
to deal in arms length negotiations with Best Buy, and to contact Best Buy's
Open Line to address Vendor's concerns. Best Buy similarly agrees to abide by
Vendor's policies concerning this subject matter

     4.  25. Force Majeure. Neither party shall be in breach of this Agreement
solely due to causes beyond the control and without the fault or negligence of
such party. Such causes may include, but are not restricted to, acts of God or
of a public enemy, acts of the government in either its sovereign or contractual
capacity, fires, floods, epidemics, quarantine restrictions, strikes, freight
embargoes, power failure, or failure of the U.S. postal system, but in every
case the failure to perform must be beyond the control and without fault or
negligence of the party failing to perform.

     5.  26. Notices. All notices, requests, demands and other communications
which are required or may be given under this Agreement shall be in writing and
shall be deemed to have been duly given if hand-delivered or mailed by either
registered or certified mail, return receipt requested, or by nationally
recognized overnight courier service, receipt confirmed. In the case of notices
via first-class mail or courier service, notices shall be deemed effective upon
the date of receipt or upon the date returned for non-delivery. Notices shall be
addressed to the parties as set forth below, unless either party notifies the
other of a change of address, in which case the latest noticed address shall be
used:

Notices to Vendor:                         Notices to Best Buy:

NETGEAR, INC.                              Best Buy Co., Inc.
Attn:                                      Attn: Sr. VP, Merchandising
Copy To: General Counsel, Legal Dept.      Copy To: General Counsel, Legal
4500 Great America Parkway                 Department
Santa Clara, CA 95054                      7075 Flying Cloud Drive
                                           Eden Prairie, MN 55344

     6.  27. General.

                  Relationship of the Parties: The relationship between the
parties shall be that of independent contractor. Nothing herein shall be
construed as creating or consulting the relationship of employer/employee,
franchisor/franchisee, principal/agent, partnership, or joint venture between
the parties. Neither party may bind the other, incur any obligation on the
others behalf, or represent itself as the other's agent in any way that might
result in confusion as to the fact that the parties are separate and distinct
entities.

                                      -10-

<PAGE>

                  (a) Governing Law. This Agreement shall be governed by and
interpreted under the laws of the State of Minnesota.

                  Enforceability: If any provision of this Agreement is held to
be unenforceable by a court of competent jurisdiction, such provision shall be
more narrowly and equitably construed so that it becomes legal and enforceable,
and the entire Agreement shall not fall on account thereof and the balance of
the Agreement shall continue in full force and effect.

                  No Waiver: Any of the provisions of this Agreement may be
waived by the party entitled to the benefit thereof. Neither party will be
deemed, by any act or omission, to have waived any of its right or remedies
hereunder unless such waiver is in writing and signed by the waiving party, and
then only to the extent specifically set forth in such writing. A waiver with
reference to one event will not be construed as continuing or as a bar to or
waiver of any other right or remedy, or as to a subsequent event.

                  Counterparts and Electronics Signature: This Agreement may be
executed in one or more counterparts, each of which shall be deemed an original
but all of which together will constitute one and the same instrument. This
Agreement may be executed by facsimile or other "electronic signature" (as
defined in the Electronic Signatures in Global and National Commerce Act of
2000) in a manner agreed upon by the parties hereto.

                  Entire Agreement; Amendments: This Agreement, including the
exhibits attached hereto, contains the entire Agreement between the parties with
respect to the subject matter hereof, supersedes all prior agreements,
negotiations and oral understandings, if any, and may not be amended,
supplemented, or modified in any way, except by an amendment in writing and
signed by authorized officers of the parties hereto. No amendment shall be
affected by the acknowledgement or acceptance of a purchase order, invoice, or
other forms stipulating different terms. This Agreement shall inure to the
benefit of and be binding upon each of the parties and their permitted
successors, assigns, heirs, executors, administrators, trustees and legal
representatives.

                  Headings: Headings used in this Agreement are for the purposes
of convenience only and shall not affect the legal interpretation of this
Agreement.

                  Draftsmanship. Each of the parties hereto has been represented
by its own counsel. In the event of a dispute, no provision of this Agreement
shall be construed in favor of one party and against the other by reason of the
draftsmanship of this Agreement.

                  Survival: The expiration or termination of this Agreement
shall not terminate vested rights of either party from any liabilities or
obligations incurred under this Agreement prior to and which by their nature are
intended to survive expiration or termination, including but not limited to
provisions relating to confidentiality, indemnification, and proprietary rights.

                                      -11-

<PAGE>

THE PARTIES HAVE MADE THIS AGREEMENT EFFECTIVE AS OF THE DATE LAST SIGNED BELOW:

BEST BUY CO., INC.                        VENDOR : NETGEAR, INC.

Authorized Officer: /s/ Michael London    Authorized Officer: /s/ [ILLEGIBLE]
                    -------------------                       ------------------
                       (Signature)                                  (Signature)

Name:       Michael London                Name: PATRICK LO
      ------------------------                  ------------------------
           (Please Print)                           (Please Print)

Title:  [ILLEGIBLE]                       Title:  CEO
       -----------------------

Date:   9-24-01                           Date: 9/20/01
      ------------------------

BEST BUY PURCHASING LLC.

Authorized Officer: /s/ Michael London
                   --------------------
                      (Signature)

Name:  Michael London
      --------------------
        (Please Print)

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

Date: 9-24-01

<PAGE>

                                    EXHIBITS

The following Exhibits are hereby incorporated into and made part of this
Agreement:

<TABLE>
<S>                     <C>
Exhibit A               Products and Pricing
Exhibit B               Shipping and Routing Guide
Exhibit C               Standard Bill of Lading
Exhibit D               Vendor's Retailer Manual
</TABLE>

<PAGE>

         ADDENDUMS (CHECK IF APPLICABLE AND ATTACH)

         If checked below, the following Addendum(s) are hereby incorporated
         into and made a part of this Agreement:

[x]      Marketing Program Agreement     [ ]     Solution Plus Rebate Agreement

[x]      Product Services Agreement      [ ]     Direct Import Agreement

[ ]      Freight Allowance Agreement     [ ]     Configure to Order Agreement

<PAGE>
                         CONFIDENTIAL TREATMENT REQUEST

* Portions denoted with an asterisk have been omitted and filed separately with
  the Securities and Exchange Commission pursuant to a request for confidential
  treatment.

                                    EXHIBIT A

                              PRODUCTS AND PRICING

[NETGEAR(TM) LOGO]

[*]
<PAGE>

[*]

                                      -2-

<PAGE>

[*]
                                      -3-

<PAGE>

[*]

                                      -4-

<PAGE>

[*]

                                      -5-

<PAGE>

[*]

                                      -6-

<PAGE>

[*]

                                      -7-

<PAGE>

[*]

                                      -8-

<PAGE>

                                    EXHIBIT B

                           SHIPPING AND ROUTING GUIDE

<PAGE>

                                    EXHIBIT C

                             STANDARD BILL OF LADING

<PAGE>
                                                  CONFIDENTIAL TREATMENT REQUEST

* Portions denoted with an asterisk have been omitted and filed separately with
  the Securities and Exchange Commission pursuant to a request for confidential
  treatment.

                                    EXHIBIT D

                                     NETGEAR
                                 RETAILER MANUAL

Congratulations on becoming an authorized NETGEAR Retail Outlet Retailer.

As a NETGEAR Retailer, you are eligible to place orders directly with NETGEAR
and take advantage of a number of programs designed to allow you to succeed in
your sale of our products. The following material describes the procedures,
programs, requirements for participation and each of our respective obligations
under the NETGEAR Retailer program.

As NETGEAR grows we anticipate that these procedures and programs will also grow
and change. As changes are made or new programs are added, we will send you
updates to this manual.

ORDERING NETGEAR PRODUCTS

         Orders for NETGEAR products should be transmitted via EDI pursuant to
Section 10 of the Vendor Agreement.

         Please include the following information in your electronic purchase
order:

                  (a)      Retailer's Purchase Order number;

                  (b)      Product number and description for each item ordered;

                  (c)      Desired quantities;

                  (d)      Purchase price for each Product ordered;

                  (e)      Requested ship date(s);

                  (f)      Order expiration date (the date upon which your order
         will automatically expire if shipment against the order has not begun);

                  (g)      Preferred shipping method (if your Agreement with
         NETGEAR requires payment of shipping charges) agreement with NETGEAR;
         and

                  (h)      and Exact "Bill to" and "Ship to" address.

         Orders submitted without this information may not be accepted or may be
delayed in processing.

INVENTORY PRICE PROTECTION

         Protecting your inventory investment is key to your success in
promoting NETGEAR products. We recognize this and are pleased to offer you
limited inventory price protection in the event of a reduction in the list price
of NETGEAR products.

         In the event of a List Price decrease on any of the NETGEAR Products,
you may apply for a credit on those units of Product which were shipped by
NETGEAR to you and which remain unsold in your inventory [*].

         The amount of the credit on any unit shall be equal to [*].

         In order to receive a credit, but subject to Best Buy's right to
conduct post-audit reconciliation a) you must submit to NETGEAR within [*] of
the effective date of the list price decrease, a report of inventory eligible
for the price credit. Upon verification by NETGEAR of the eligible units and
credit amounts, NETGEAR will issue a credit to your account.

<PAGE>

         PRODUCT EXCHANGE PRIVILEGES

         In order to allow you to manage your inventory of NETGEAR products, you
may return previously purchased NETGEAR products for replacement by an equal or
greater value of different NETGEAR products, under the following conditions:

                  1)       Products may be returned [*] per year, but no more
frequently than once per calendar quarter.

                  2)       The total value of the returned NETGEAR products may
not exceed [*] of the net shipments invoiced by NETGEAR for all products, less
any credits granted, during the immediately preceding [*] period.

                  3)       The replacement NETGEAR products ordered must not be
identical to the returned products.

                  4)       The returned Products are either on the then current
NETGEAR Price List or were removed from the Price List no more than [*] prior to
the effective date of the then current Price List.

                  5)       The returned products must be in their original
shipping containers and may not have been altered, damaged or used.

         You will be issued an invoice for the replacement Products at prices in
effect at the time of return, and credited for the value of the returned
products at the prices actually paid by you less any prior credits.

         RETAILER'S RESPONSIBILITIES

         Active participation by you in the promotion of our products is
essential to both your and our success. As such, as part of being authorized as
a NETGEAR Retailer, we require that, at the minimum, you provide the following
services to your reseller customers:

         1.       Promotion and sale.

                  As a NETGEAR Retailer, you are required to make commercially
reasonable efforts to market, promote, sell, support, and otherwise create and
increase demand for the products by end-users through means that you normally
employ to promote the products of other manufacturers, subject to your marketing
plans and strategies that you determine in your sole and reasonable discretion.

         2.       Technical Support.

                  As an authorized NETGEAR Retailer, you are the primary point
of contact for your customers in all support situations.

         3.       Training.

                  Success as a NETGEAR Retailer requires that you adequately and
thoroughly train on an on-going basis, a sufficient staff of qualified sales,
marketing, technical and support personnel familiar with the applications,
features, benefits, operation and configuration of the Products. This will allow
you to effectively promote and support the products and to assure the
satisfaction of your resellers and the end-users.

         4.       Records and Reports.

                  Prior to requesting inventory price protection or stock
rotation privileges, you must submit a report to NETGEAR listing all current
inventory of NETGEAR Products.

                                       -2-

<PAGE>

         NETGEAR'S RESPONSIBILITIES

         A.       Technical Support.

                  NETGEAR will provide technical support to you in order to
assist you in resolving reseller and end user technical problems. This support
will be provided by NETGEAR from any of its technical support facilities.

                                       -3-

<PAGE>

                                 TRADEMARK USAGE

                                   GUIDELINES

         OVERVIEW

         NETGEAR offers a highly visible product line. Trademarks, Service Marks
and other similar indicators of product origin (collectively "Trademarks") of
NETGEAR are owned by NETGEAR, Inc. As a result, NETGEAR has registered or
applied to register product names (including NETGEAR) and other descriptive
features with the United States Patent and Trademark Office and appropriate
agencies in important markets worldwide to protect its claim to specific names
and other trademarks and service marks. Trademarks and service marks are vital
elements that enable a company to identify its products and distinguish them
from others on the market. Trademarks give a company legal "ownership" of a
given name, slogan or title and allows the company to collect damages from
others who may infringe on the right or misrepresent the company through
improper use of the name.

         MARKING

         Wherever one of NETGEARs' registered trademarks is used, the "(R)"
label must be attached to the mark the first time it is used in the text body
particular piece. Wherever one of NETGEARs' unregistered trademarks is used, the
"TM" label must be attached to the mark the first time it is used in the text
body of that piece. In addition, the mark must be properly designated as a
registered trademark or a trademark NETGEAR, Inc. in the accompanying credit
line.

         HOW TO USE NETGEARS' TRADEMARKS

1.   IDENTIFICATION MUST OCCUR AT LEAST ONCE IN EACH DOCUMENT OR OTHER PRINTED
     PIECE.

     The trademark designation must appear on the first appropriate reference;
     once used, it is not required throughout the rest of the document.

2.   TRADEMARKED NAMES MUST APPEAR AS PROPER ADJECTIVES, FOLLOWED BY A GENERIC
     PRODUCT NAME.

     For example: CORRECT: "Use the NETGEAR(TM) family of networking products."

                  INCORRECT: "NETGEAR(TM) is the answer to your networking
                  needs."

3.   A TRADEMARK IS NEVER POSSESSIVE.

     For example: CORRECT: "NETGEAR(TM) networking products."

                  INCORRECT: "NETGEAR's(TM) networking products."

4.   A TRADEMARK IS ALWAYS SINGULAR.

     For example: CORRECT: "The NETGEAR(TM) hub resides...."

                  INCORRECT: "NETGEARs(TM) are installed...."

         THE NETGEAR LOGO

                                       -4-

<PAGE>

         The following have been selected for the color options for the NETGEAR
logo:

                  -        PMS-2745 in the Pantone Matching System

                  -        Black or gray screened

                  -        White type on black (reverse type)

                                    TRADEMARK LISTS

         Subject to the provisions of your Agreement and this manual, you are
authorized to use the following Trademarks in the advertising and sale of
NETGEAR Products:

NETGEAR(TM)

                                       -5-<PAGE>
                                                  CONFIDENTIAL TREATMENT REQUEST

* Portions denoted with an asterisk have been omitted and filed separately with
  the Securities and Exchange Commission pursuant to a request for confidential
  treatment.

                                                                   Exhibit 10.21

                                    ADDENDUM
                            PRODUCT SERVICE AGREEMENT
                                  RETURNS ONLY

THIS PRODUCT SERVICE (RETURNS ONLY) ADDENDUM ("Service Agreement") is effective
as of September 21, 2001 ("Effective Date"), and is attached to and incorporated
in the Vendor Agreement between Best Buy Co., Inc., its affiliates and
subsidiaries ("Best Buy") and NETGEAR, INC. ("Vendor"), dated September 20, 2001

1.       To the end of Section 7 ("Returns") of the Vendor Agreement, the
         following paragraph shall be added:

                  WARRANTY RETURNS. Vendor's end-user warranty statement
                  accompanies the product when sold. Vendor appoints Best Buy as
                  an "Authorized Return Center" for the return of those Products
                  under warranty. Best Buy will (1) receive the in-warranty
                  Product from the customer, (2) provide a new Product
                  ("Replacement Product") to the customer, and (3) send the
                  customer's defective Product to Vendor after receiving
                  Vendor's RA. The appointment of Best Buy as an Authorized
                  Return Center include all present and future Best Buy
                  locations which Best Buy designates to accept the Product
                  returns. The appointment of Best Buy as an Authorized Return
                  Center is on a non-exclusive basis; Vendor may appoint other
                  parties as Authorized Return Centers. If this Agreement is
                  terminated or expires, this Section 7 will continue in full
                  force and effect for the amount of time and to the extent
                  necessary for Best Buy to distribute the remaining Products in
                  accordance with Section 17, plus the applicable time period of
                  the warranty for each such Product, plus the time period
                  specified or allowed under this Agreement for Best Buy to
                  return defective Product and be reimbursed for shipping and
                  Replacement Products.

2.       Best Buy's Products Returns Department is the appropriate point of
contact for questions and inquiries related to this Service Agreement.

3.       The paragraph entitled "Survival" within Section 27 of the Vendor
Agreement shall be deleted and replaced in its entirety with the following
paragraph:

                  SURVIVAL: The expiration or termination of this Agreement
                  shall not terminate vested rights of either party from any
                  liabilities or obligations incurred under this Agreement prior
                  to and which by their nature are intended to survive
                  expiration or termination, including but not limited to
                  provisions relating to confidentiality, indemnification,
                  returns, shipping, and proprietary rights. Vendor understands
                  and agrees that certain provisions of this Agreement must
                  survive in order that Best Buy, as an Authorized Return
                  Center, may satisfy the customer's warranty requests, even
                  after the completion of this Agreement.

4.       All other terms and conditions of the Vendor Agreement, not
specifically amended, changed or modified by this Service Agreement shall remain
in full force and effect. All capitalized terms not otherwise defined herein
shall have the meaning ascribed to them in the Vendor Agreement.

In witness whereof, the parties have executed this Service Agreement.

BEST BUY CO., INC.                           VENDOR: NETGEAR, INC.

Authorized Officer: Michael London           Authorized Officer:   [ILLEGIBLE]
                    ---------------                              ---------------
                      (Signature)                                  (Signature)

Name:  Michael London                        Name:    PATRICK LO
      -----------------                            -----------------
        (Please Print)                               (Please Print)

Title: [ILLEGIBLE]                           Title: CEO

BEST BUY PURCHASING LLC

Authorized Officer:  /s/ Michael London
                    --------------------
                         (Signature)

Name:   Michael London
      -----------------
        (Please Print)

Title: [ILLEGIBLE]
<PAGE>
                                                  CONFIDENTIAL TREATMENT REQUEST

* Portions denoted with an asterisk have been omitted and filed separately with
  the Securities and Exchange Commission pursuant to a request for confidential
  treatment.

                                    ADDENDUM
                              CONSIGNMENT AGREEMENT

Effective Date:   January 1, 2002________________________

THIS CONSIGNMENT AGREEMENT ("Agreement") is attached to and incorporated in the
Vendor Agreement between Best Buy Co., Inc., its affiliates and subsidiaries
("Consignee") and NETGEAR, Inc., having its principle place of business at 4500
Great America Parkway, Santa Clara, CA 95054________________ ("Consignor"),
which became effective on ______________. This Agreement is intended to set
forth the terms and conditions applicable only to the provision of consigned
goods from Consignor to Consignee. Such consigned goods are described on Exhibit
A hereto, as may be amended from time to time by agreement by the parties.

All terms in the Vendor Agreement shall remain in full force and effect with
respect to non-consigned goods. With respect to consigned goods, the following
terms shall supplement the terms of the Vendor Agreement in the event of
conflict the terms of this Agreement will control with respect to consigned
goods.

1.       RESERVATION OF RIGHTS AND TITLE. Title to all consignment goods is
reserved in Consignor until sale of the goods by the undersigned Consignee to
Consignee's customers. Consignee agrees to cooperate with Consignor in effecting
the protections afforded consignment sellers under Sections 9-103(d),
9-109(a)(4) and 9-319 of the Uniform Commercial Code as adopted and in effect in
the state of Minnesota, to the extent provided herein. Consignee agrees to
execute UCC-1 financing statements as modified in the form attached as Exhibit
B; provided, however, that Consignor shall be responsible for preparation of
such financing statements for Consignee's review and signature, and for the
filing of such financing statements and payment of all applicable filing and
preparation costs. No security interest shall be granted in the proceeds from
the sale of the consignment goods.

2.       SALE OF CONSIGNMENT GOODS. Consignee has sole discretion to determine
the retail price of the consignment products and the right to determine the
amount and frequency of any price reductions. For each sale of a unit of
consignment product, regardless of the retail sale price, Consignee shall pay
Consignor the "Agreed Cost" for such product, as set forth in Exhibit A, minus
the allowances, deductions and vendor chargebacks agreed between the parties as
described elsewhere in this Agreement. Consignment product sold and returned by
a customer in accordance with Consignee's return policy shall not be counted as
a "sale" for purposes of calculating payments to Consignor. Product that is
defective (which includes but is not limited to product that is returned without
the box, with an opened box, or with a damaged box) shall be the responsibility
of Consignor, and may be returned to Consignor unless otherwise mutually agreed.
Any amounts remaining from the sale after payment to Consignor as set forth
herein shall be retained by Consignee. Consignee shall exert commercially
reasonable efforts to sell the consignment products consistent with Consignee's
sales, marketing and merchandising plans which may be amended from time to time.

3.       REMITTING PAYMENT FOR SALE OF GOODS; INVOICING; ALLOWANCES; AUDIT
RIGHTS. All transactions (e.g., purchase orders and invoices) shall be conducted
via Electronic Data Interchange (EDI). At the time of shipment of the
consignment goods to Consignee. Consignor agrees to provide Consignee with
initial involves which show quantity and stock-keeping unit (SKU), but which
reflect a "0" total amount. Upon receipt of such goods. Consignee will match
receipts against the "0" invoices and resolve discrepancies (e.g., shortages)
with Consignor each month to assure that the parties agree as to the correct
beginning inventories of consignment goods, at which time any necessary
corrections to the "0" invoices will be made. If Consignor falls to submit "0"
invoices to Consignee to confirm the quantities of goods shipped, Consignee may
in its discretion; (1) make payment to Consignor based upon quantities of goods
as determined by Consignee's inventory records, which will result in a delay in
Consignee's payment to Consignor, or (2) delay its payment to Consignor until
Consignor produces the necessary "0" invoices or other documentation to confirm
quantities of goods shipped.

Consignee shall provide net point of sales data to Consignor via EDI on a weekly
basis (i.e., net of customer returns) at no charge. Subject to the Consignor's
obligation to provide accurate "0" invoices to Consignee on a timely basis,
payment to Consignor will be made [*]. Payment will be based on final estimated
monthly sales, which may not equal the sum of weekly sales transmissions to
Consignor due to sales system corrections posted within two business days after
fiscal month and Consignee may also deduct from payments and agreed-upon
allowances that are not reflected on the invoices. Those agreed
allowances/deductions are set forth below:

ADVERTISING ALLOWANCE: AS PER MARKETING AGREEMENT

DEFECTIVE ALLOWANCE: NONE

PLACEMENT/END CAP ALLOWANCE: NONE

SHRINK ALLOWANCE: NONE

VOLUME REBATE: NONE

[OTHER]:

                                                                          Page 1

<PAGE>
Consignor may audit Consignee's books and records pertaining solely to the
subject matter of this Agreement no more than once per year, provided that
Consignee shall be given reasonable written notice, and further provided that
the audit shall take place at Consignee's facilities during normal business
hours. Costs of the audit shall be borne by Consignor, provided that if a [*] or
more discrepancy or shortfall is found. Consignee will reimburse the reasonable
and documented costs of such audit.

4.       TAXES. Consignee will be responsible for the collection and remittance
of the appropriate sales tax to the proper taxing authorities and will provide
state resale tax certificates to Consignor. Consignee shall report the
consignment inventory to the proper taxing authorities, as consignment property
within Consignee's possession that is owned by Consignor. Consignee shall pay
directly all necessary and valid property taxes pertaining to the consignment
inventory in Consignee's possession, which amount shall be reimbursed by
Consignor to Consignee via vendor charge-back or other appropriate method. The
personal property tax calculation will be based on the consignment inventory as
listed on Consignee's general ledger. Each party shall be responsible for
reporting its own Income derived from this Agreement and for payment of its own
income taxes.

5.       DELIVERY AND PRODUCT MIX. The goods to be sold on consignment and the
Agreed Cost per unit are described in Exhibit A annexed hereto. The quantities
and delivery dates shall be mutually agreed to by Consignor and Consignee.

6.       SHIPMENTS. Standard delivery for inbound shipments to Consignee shall
be F.O.B. Destination: Freight Prepaid by Consignor to Consignee's Distribution
Centers and Consignee's Retail Stores. Consignor will ship and pay for all
orders via standard ground shipment in addition, Consignor shall be responsible
for making shipping arrangements, scheduling, tracking, proof of delivery,
trading, insurance for loss or damage while goods are in transit and filing
freight claims for loss and/or damage. If expedited shipment becomes necessary,
in the reasonable opinion of both parties, due to the fault or delay of
Consignor, then Consignor shall pay the costs of such expedited shipments to
either Consignee's distribution centers or via drop ships to Consignee's stores,
as requested by Consignee. If expedited shipment become necessary, in the
reasonable opinion of both parties, due to the fault or delay of Consignee, then
Consignor agrees to ship product, freight collect, to either Consignee's
distribution centers, or stores via drop ship, as requested by Consignee;
Consignee shall then charge back Consignor the difference between the standard
ground shipping costs and the expedited shipping costs. The carrier (not
Consignor) shall invoice Consignee in this latter freight collect situation.
Consignor agrees not to include freight charges on any invoices under any
circumstances.

7.       RETURN OF GOODS. Consignee has 100% return rights with respect to the
consignment product, whether in cases of defectives, obsoletes, slow-moving
goods, upon termination, or otherwise. Except as otherwise expressly set forth
in this Agreement, Consignee agrees to arrange and pay for return shipments.
Notwithstanding the foregoing, the undersigned Consignee reserves the right to
return, at Consignor's expense, any goods for which a claim is made that
alleges that the goods (1) Infringe any alleged patent, design, tradename,
trademark, copyright, right of privacy, or any other tangible or intangible
property rights, or (2) are not manufactured, packaged and labeled in accordance
with best industry standards and/or all applicable laws, ordinances, rules and
regulations by governmental departments, bodies and agencies governing and/or
restricting the receipt and sale of goods by the undersigned Consignee, or (3)
have caused injury to person or property. In addition, Consignor agrees to pay
the cost of return shipments of substantially defective product. In all cases,
Consignor agrees to provide a return authorization ("RA") within 48 hours of
request.

8.       FURTHER OBLIGATIONS OF CONSIGNEE. Consignee shall make an annual
payment to Consignor at the most recent Agreed Cost per unit for any loss or
damage to the consignment goods while such goods are in the care, custody, and
control of Consignee. Notwithstanding the foregoing, Consignee agrees to use
commercially reasonable efforts to protect and preserve the consignment goods of
Consignor which are in the care, custody or control of Consignee, wherever
located. Consignee further agrees to maintain all-risk property insurance in an
amount adequate to fully insure all consignment goods of Consignor which are in
the care, custody or control of Consignee, wherever located, in an amount not
less than 35 Million, and will name Consignor as a loss payee on such policy
where Consignor's interest appears.

9.       FURTHER OBLIGATIONS OF CONSIGNOR.

         a.       Consignor represents and warrants that (i) Consignor has full
title to the consignment goods, free and clear of all liens, charges and other
encumbrances, and (ii) all merchandise delivered hereunder will have been
manufactured, packaged, and labeled in accordance with best industry standards
and all applicable laws, ordinances, rules, and regulations by governmental
departments, bodies, and agencies governing and/or restricting the purchase,
acceptance, resale, distribution or promotion of such consignment products by
Consignee.

         b.       Consignor agrees to defend Consignee against and shall
indemnify Consignee and hold Consignee harmless from all losses, costs and
expenses arising from any and all claims, suits and demands by any third party
relating to (1) the copyright, trademark, patent, trade secret, intellectual
property, performance or broadcast rights, property or contract rights
respecting all consignment products for sale, distribution and/or promotional
purposes, including the advertising and merchandising of same, and (2) the use
by Consignee's customers of the consignment products (e.g., product liability
claims). Consignee agrees to provide Consignor prompt notice of any such third
party claims against Consignee and to tender the defense Consignor. Consignor
shall bear all attorneys fees and costs in defending such claims; provided,
however, that Consignee may participate in the defense at its own expense.

         c.       Any use or Insertion by Consignor in the consignment products
of artwork, copyrighted materials, trademarks or any other intellectual property
created or owned by Consignee must be expressly approved by Consignee. Such
artwork, copyrighted materials, trademarks or other intellectual property shall
remain the exclusive property of Consignee. Its affiliates, subsidiaries or
assigns. Use of the materials by Consignor for any other purpose is expressly
prohibited.

10.      CONSIGNOR-CONSIGNEE RELATIONSHIP. The parties do not intend to form a
partnership or joint venture, principal-agent, employer-employee, or any other
relationship other than that of consignor-consignee, and, where appropriate,
licensor-licensee. It is fully understood that each party will exercise full
power and authority, except for as specifically provided otherwise in writing
and signed by both parties, to select the means, method and manner of performing
all obligations required under this Agreement. Except as provided herein,
neither party

                                                                          Page 2

<PAGE>

will have any right or authority and will not attempt to enter into any contract
or commitment, or incur any debt or liability of any nature in the name of or on
behalf of the other party.

11.      TERM; TERMINATION. The term of this Agreement shall commence on the
Effective Date, and shall continue for one year, subject to automatic annual
renewal unless terminated by either party upon advance written notice to the
other. Termination shall not effect the parties respective outstanding
obligations.

Upon termination, the parties will wind up their consignment relationship by
conducting an account reconciliation to reach a final settlement. In the event
Consignee's records reflect a debit balance with Consignor (defined as any
amount owned by Consignor to Consignee), Consignee may (i) hold the goods as
collateral until Consignor makes payment to Consignee; or (ii) if Consignee
elects to purchase the remaining consignment inventory, deduct the debit balance
amount from the amount payable to Consignor. Notwithstanding the foregoing, upon
termination of this Agreement, Consignee may, at its option, (i) purchase the
remaining consignment inventory (and negotiate in good faith for obtaining price
protection), or (ii) return all or some of the product to Consignor at
Consignee's expense.

12.      ASSIGNMENT. Neither party may assign this Agreement without first
obtaining the written consent of the other party. Provided, however, that a
party may assign this Agreement, without the consent of the other party, to (a)
a purchaser of all or substantially all of the assigning party's assets or a
majority or controlling interest in the assigning party's voting stock, provided
that the purchaser's net worth at the time of purchase is equal to or greater
than that of the assigning party, and further provided that the purchaser is not
a competitor of the other party to this Agreement; or (b) to a present or future
subsidiary or affiliate of the assigning party.

13.      GOVERNING LAW. This Agreement shall be governed and controlled in all
respects by the laws of the State of Minnesota, excluding its conflict of law
rules. Consignor consents and submits to the exclusive jurisdiction of the state
and federal district courts located in Minneapolis, Minnesota.

14.      ENTIRE AGREEMENT. This consignment agreement, and the accompanying
exhibits, contains all the terms and conditions with respect to the consignment
of the goods named herein. No modification of these terms and conditions shall
be of any forces unless such modification is reduced to writing and signed by
the undersigned Consignor and Consignee. However, the parties may from time to
time amend the description of products and Agreed Cost terms contained on
Exhibit A, without necessarily reducing the same to a writing signed by both
parties.

CONSIGNOR: NETGEAR. Inc.

By: /s/ Jonathan Mather
    ----------------------------------

Name: Jonathan Mather

Title: CFO

Date: 3/7/2002

CONSIGNEE: BEST BUY CO., INC., AND Its affiliates and subsidiaries

By: /s/ BRIAN CHARCHENKO
    ----------------------------------

Name: BRIAN CHARCHENKO

Title: Buyer

Date: 3/4/02

                                                                          Page 3

<PAGE>
                                                  CONFIDENTIAL TREATMENT REQUEST

* Portions denoted with an asterisk have been omitted and filed separately with
  the Securities and Exchange Commission pursuant to a request for confidential
  treatment.

CONSIGNMENT AGREEMENT DATE January 1, 2002, between Best Buy Co., Inc., its
affiliates and subsidiaries ("Consignee") and Netgear, Inc. ("Consigner").

                                    EXHIBIT A
                            To Consignment Agreement
                             Revised August 27, 2002

Description of Consignment Products

MA 101 - Wireless USB Adaptor

MA 401 - Wireless PC Card

MR314 - Wireless Router w/4 - Port Switch

FVS318 - Firewall Router w/8 - Port

CONSIGNOR: Netgear, Inc.                 CONSIGNEE: BEST BUY CO., INC
                                             And its affiliates and subsidiaries

By: /s/Jonathan Mather                   By: [ILLEGIBLE]
    ----------------------------             ---------------------------------

Name: Jonathan Mather                    Name: [ILLEGIBLE]

Title: Chief Financial Officer           Title: Business Team Manager

Date: August 27, 2002                    Date: 9/12/02

<PAGE>
                                                  CONFIDENTIAL TREATMENT REQUEST

*    Portions denoted with an asterisk have been omitted and filed separately
     with the Securities and Exchange Commission pursuant to a request for
     confidential treatment.

                       EXHIBIT A TO CONSIGNMENT AGREEMENT

<TABLE>
<CAPTION>
DESCRIPTION OF CONSIGNMENT PRODUCTS                            AGREED COST
----------------------------------------------------------------------------
<S>                                                          <C>
MA101 - Wireless USB Adapter                                 $   [ * ] /Unit

MA401 - Wireless PC Card                                     $   [ * ] /Unit

MR314 - Wireless Router w/4 - Port Switch                    $   [ * ] /Unit
----------------------------------------------------------------------------
</TABLE>

                                                                          Page 4

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