Document:

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

                                                                   EXHIBIT 10.13

                       MASTER PRODUCT PURCHASING, TESTING
                        AND ORDER FULFILLMENT AGREEMENT

Effective Date: November 23, 1999                                   Term: 1 year
                                                 (with possible renewal periods)

This Master Product Purchasing, Testing and Order Fulfillment Agreement
("Agreement") is entered into between Netgear, Inc., a Delaware corporation
("Netgear"), and Celestica Asia, Inc., a Delaware corporation, on behalf of
itself and its subsidiaries and Affiliates ("Celestica") and is made as of the
Effective Date for the Term. Subject to the terms and conditions set forth in
this Agreement, the parties have caused this Agreement to be executed by their
duly authorized representatives on the date(s) shown below. The parties may
execute this Agreement in two (2) or more counterparts (no one of which need
contain the signatures of all parties), each of which will be an original and
all of which together will constitute one and the same instrument.

NETGEAR, INC.                                CELESTICA ASIA, INC.

Signature /s/ PATRICK LO                     Signature /s/ ROBERT BEHLMAN
         --------------------------                   --------------------------
Printed   PATRICK LO                         Printed   ROBERT BEHLMAN
         --------------------------                   --------------------------
Title     V.P.                               Title     PRESIDENT, CELESTICA ASIA
         --------------------------                   --------------------------
Date      11-23-99                           Date      11-16-99
         --------------------------                   --------------------------

4401 Great America Parkway                   2222 Qume Drive
P.O. Box 51815                               San Jose, Ca. 95131
Santa Clara, CA 95052
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* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

In consideration of their mutual representations, promises and obligations,
Netgear and Celestica agree as follows:

1.      SCOPE OF THE AGREEMENT

This Agreement sets forth the terms and conditions pursuant to which Celestica
shall provide Netgear full turnkey production and fulfillment services (the
"Services") as listed below in a timely, competent and cost effective manner at
several different locations around the world, all as more fully described in the
Statement of Work attached hereto as Exhibit 1:

        -   planning and purchasing management

        -   inventory management

        -   product testing and inspection

        -   product fulfillment and logistics

        -   returns processing

        -   supplier performance management

        -   quality program and management

This Agreement contains those terms that shall pertain to all of Celestica's
locations. Celestica will initially conduct the majority of the Services in
Kowloon, Hong Kong and San Jose, California. The parties may agree in the future
if necessary to enter into subordinate agreements which contain specific terms
unique to a site ("Site Agreement"), such as a list of products configured at
the site, support teams, and the specific reporting requirements relevant to the
site. Each such Site Agreement is hereby incorporated by reference into this
Agreement. The terms of this Agreement shall take precedence over those of the
Site Agreement unless specifically provided otherwise in the Site Agreement; the
terms of the Site Agreement shall take precedence over the terms of any Build
Plan, acknowledgment, invoice or other document.

2.      DEFINITIONS

        The following words and expressions shall have the meanings set forth
below:

        "Affiliate" means, with respect to a party hereto, a corporation that
directly or indirectly controls, is controlled by, or is under common control
with, that party.

        "Build Plan" means the build plan provided by Netgear to Celestica for
each model of Product substantially in the form set forth as Exhibit 4 hereto,
which specifies the quantity of Product to be purchased and the part number.

        "Celestica's Systems" means all software and systems used by Celestica
in the performance of this Agreement, excluding any software or systems provided
to Celestica by Netgear.

        "Confidential Information" means a party's proprietary, confidential or
trade secret information.

        "Customer" means a customer purchasing Netgear Products.

        "Materials" shall mean any components and other materials comprising or
comprised in Products.

        "Netgear Inventory Location" means the physical location (identified by
Celestica) where Products will be staged prior to shipment to Customers.

        "Netgear Proprietary Information" means any information, technology,
processes, or other proprietary property, including copyrights, trade secrets,
know-how, mask work rights, moral rights patents and/or patent applications in
any form or medium, developed or acquired by Netgear or its licensors from the
Production Effort.
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* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

        "Order" shall mean any order for Products placed by a Customer in
accordance with the temps of this Agreement.

        "Prices" shall mean the prices for Products and/or Services and/or
non-recurring expenditure (including without limitation, tooling and fixtures
and other agreed items) agreed between the parties from time to time.

        "Products" shall mean the items listed in Exhibit 2 and described in the
relevant Specification.

        "Specification" means Product technical information and related services
and shall at minimum consist of the bill of materials, test procedures, quality
goals, assembly documentation, circuit board art work, Gerber files, assembly
and fabrication drawings, schematics, other design documents, business plan, and
Services, as specified. The Specification for each Product shall be provided by
Netgear and shall be timely reviewed by Celestica and agreed to by both parties.

3.      PRODUCTION EFFORT, MATERIALS PROCUREMENT, INSPECTION AND TEST OF THE
        PRODUCTS, AND PRODUCT CHANGES

3.1.    PRODUCTION EFFORT

Celestica shall be responsible for the procurement, test and inspection of the
Products (collectively, the "Production Effort") and shall ensure that each
Product conforms to the Specification applicable to such Product at the time of
manufacture. Celestica shall perform the Production Effort in accordance with
this Agreement.

3.2.    PRODUCT PURCHASING

Celestica is solely responsible for performing purchasing services which shall
include: placing and expediting purchase orders with OEMs and other suppliers,
accepting shipments, managing quality issues, achieving cycle time reductions,
measuring and communicating supplier performance, canceling and rescheduling
product shipments in support of schedule changes, and other supplier management
services that the Parties agree are relevant and appropriate. Netgear hereby
authorizes Celestica to purchase Products and Netgear specified integrated
circuits (I.C.'s) as necessary to fulfill Netgear forecasts.

Any OEM or other source of supply shall be jointly qualified and managed by
Celestica, subject to Netgear's prior written approval and consistent with the
quality requirements set forth in the relevant Product Specification. Netgear's
approval shall normally be provided within fourteen (14) days and, in any event,
shall not be unreasonably withheld or delayed. The Parties acknowledge that in
some instances only the component of a specified supplier may be used in a
Product.

Netgear or a designated third parry may perform inspections ("Source
Inspection") of business systems and processes of a supplier or subcontractor
facility whenever Netgear decides it is necessary. The Source Inspection shall
be conducted during normal business hours and with prior notice to Celestica and
may require participation by Celestica.

3.3.    SCOPE OF TEST AND INSPECTION

Celestica shall manage the execution of the test and inspection process for each
Product, which includes testing Products, test capacity planning, and performing
preventative maintenance on the test equipment. Celestica warrants that it will
perform each and every test and inspection in conformance to the process and for
the quantities identified in the relevant Specification. All Products delivered
to Netgear and/or its Customers shall have passed all applicable tests and
inspection in such Specification.
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* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

At the commencement of production of any Product, Netgear will qualify each
piece of test equipment and each test process for such Product. No such
equipment or process shall be changed or modified without the prior written
consent of Netgear.

Netgear shall provide certain Functional Test ("FT") equipment and test set ups,
including test scripts, loop back connectors, and cables.

Celestica will develop inspection capacity plans with every new Forecast (as
defined below). Celestica shall consider upside volume percentage, preventative
maintenance time, new product additions and holding of appropriate spare parts
as part of its inspection capacity plan.

3.4.    TEST EQUIPMENT MAINTENANCE COSTS

Celestica agrees to be responsible for and to pay for all costs of maintaining
all inspection equipment and related materials and shall perform preventative
maintenance, which shall include, without limitation, repair and replacement of
worn loopback connectors, cables, and backplanes or any other failing components
due to normal wear. Notwithstanding the above, Netgear shall pay to upgrade or
replace test equipment or fixtures which are rendered outdated because of
Product design changes or changes in test requirements.

3.5.    TEST RECORDS FOR PRODUCTS

Celestica shall maintain adequate authenticated inspection and test documents
for Products and shall make such documents available to Netgear upon request for
a period of one year after the delivery of the last Product purchased, unless
otherwise directed by Netgear.

3.6.    CHANGES TO A PRODUCT

Either party may propose in writing a change to the design, manufacture, or test
procedure of any Product. The other party shall respond in writing within five
business days to any such proposal. Where necessary and appropriate, Netgear
shall initiate either an engineering change order ("ECO") or a temporary change
to the Specification ("Deviation"). Celestica shall develop a list of the
process steps, an estimate of the time necessary to complete the change, the
hourly rate to complete the work, any excess or obsolete Materials (list and
cost), and the increase or decrease, if any, in the price of the Products
affected. Upon receipt of Celestica's response, Netgear shall determine if it
wants to go forward with the change. If Netgear does want the change, the
parties shall negotiate any open issues and set the implementation date.

If either Netgear or Celestica identifies a change that must be implemented on a
Product for reasons of safety ("Safety Change"), the parties shall cooperate so
as to effect such Safety Change as soon as possible after discovery. Once such a
Safety Change is discovered, no affected Products shall be manufactured or
shipped until such Safety Change has been implemented. The parties shall
cooperate in the implementation of such Safety Change on any Products shipped
prior to discovery of the hazard. If a Safety Change is required due to
Celestica's manufacturing process, then Celestica shall pay all costs associated
with such change, otherwise, Netgear shall pay the costs associated with the
Safety Change.

4.      BUSINESS MANAGEMENT PROCEDURES

4.1.    METHODOLOGY

The parties intend to plan for and make corporate-wide business decisions as
described in this Section 4, "Business Management Procedures". To manage the
technical and business changes, Netgear and Celestica shall:
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* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

(a) Assign, and in most cases dedicate, business management teams whose goal is
to provide consistent and efficient responses to program requirements.

(b) Conduct quarterly business reviews for each business management team.

(c) Create a process to communicate about and resolve issues promptly and to
drive continuous improvement of the day-to-day operation.

(d) Comply with reporting requirements as outlined in this Agreement.

(e) Meet annually at the executive level to exchange business strategies with
the specific purpose of working to ensure that each party's business goals can
be met.

4.2.    PRODUCT QUALITY GOAL

Celestica agrees to adopt the quality assurance procedures and perform the
quality control tests (collectively the "QA Procedures") described in Exhibit 1
("Statement of Work"). The QA Procedures may be amended by mutual agreement of
the parties from time to time, to ensure that all Products conform to the
Specifications.

4.3.    QUARTERLY REVIEWS

Celestica and Netgear shall, in conjunction with each other, conduct quarterly
operations reviews of the business processes and procedures of both Celestica
and Netgear with the intent to improve overall supply chain performance. The
review shall include, at a minimum, performance measurements of quality,
delivery, customer satisfaction, costs, capacity, innovations and Price
reductions for Products. Line capacity, test capacity, and staff allocation, and
the plan to meet future requirements in these areas, shall be reviewed.

The quarterly reviews shall be held in person at a Netgear's facility and
Celestica agrees to comply at its own cost.

4.4.    TARGET COST REDUCTION

Celestica agrees to participate in periodic cost reviews with the intent to
reduce the costs of the Services provided hereunder to an amount at or below the
cost identified by Netgear. Such reviews shall be held in person at a Netgear's
facility and Celestica agrees to comply at its own cost.

4.5.    LOCATION OF CELESTICA'S OPERATIONS

Celestica shall initially perform the Services for all Products from its
facility in Kowloon, Hong Kong. Celestica shall transfer Products for North and
South American Order Fulfillment to its San Jose, California facility. Products
for all other Orders will be fulfilled from Celestica's Kowloon, Hong Kong
facility or such other facilities as the parties may agree upon from time to
time. Any deviation from this policy must be authorized by Netgear in writing.

4.6.    RESOURCES AND PRODUCTION SUPPORT

Throughout the life cycle of each Product, Celestica shall provide production
capacity, yield information, corporate resources, necessary administrative
processes, and adequate, qualified, timely staffing for each Product's
introduction and the Production Effort in accordance with the terms of this
Agreement. Celestica shall provide separate functional resources in support of
new Products and mature Products.
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* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

5.      BUILD PLANS

The parties acknowledge that they will continue to develop new procedures to
increase schedule flexibility, reduce lead times, and improve forecasting. The
parties shall incorporate such terms as an amendment to this Agreement or to the
Site Agreements, if any, upon completion. Until such time, the parties shall
manage the delivery of Products under the provisions of this Article 5.

5.1.    THE BUILD PLAN

Netgear shall issue to Celestica on a monthly basis a Build Plan for each model
of Product covering a minimum of two months in advance of the desired ship date.
Since current OEM supplier lead times are 60 days, each Build Plan issued by
Netgear will be authorization for Celestica to issue purchase orders to OEM
suppliers to cover the 60 day manufacturing lead time for products. The quantity
of Products and the scheduled delivery dates for the Products purchased by
Celestica will satisfy Netgear's projected requirements for the products as
contained in the Build Plan. The Build Plan may be issued in writing, by mail or
facsimile, or by electronic means as the parties may from time to time agree.
Netgear shall have no obligation to purchase any Products from Celestica if the
products were purchased in excess of the 60 day manufacturing lead time except
as specified on such Build Plans placed in accordance with the terms of this
Agreement. Celestica will notify Netgear of acceptance of a Build Plan within
two business days of receipt of the Build Plan.

Each Build Plan issued shall be governed by the terms of this Agreement as
modified by the applicable Site Agreement (if any) to the extent of any conflict
between the terms. The parties hereby expressly object to any additional or
different terms contained in any Build Plan or acknowledgment other than as
authorized by this Agreement and agree that such additional or different terms
shall be of no effect.

Celestica agrees to accept a Build Plan for each model of Product and to sustain
the ability to procure and inspect Products and fulfill Orders for each model of
Product for a minimum of one year. After one year, if Celestica desires to not
maintain its ability to perform these services for a particular model of
Product, Celestica will provide Netgear with written notification 180 days prior
to the date Build Plans will no longer be accepted. Upon Netgear's request,
Celestica shall ship to Netgear all documentation about the procurement,
inspection and test of the Product. Documentation shall include any bills of
material generated by Celestica, process instructions, test procedures and all
other relevant documents.

5.2.    FORECASTS OF PRODUCT REQUIREMENTS

Netgear shall deliver to Celestica with its initial Build Plan for any model of
a Product, a non-binding, rolling, forecast covering a period of four months
beyond the Build Plan ("Forecast") which Celestica will use to communicate
forecasted requirements to OEMs and product suppliers. Each Forecast shall be a
good faith estimate of the anticipated requirements for the Products) listed for
the periods indicated.

5.3.    RESCHEDULE OR CHANGES TO BUILD PLAN

Netgear may make changes to the scheduled shipment of products in the Build
Plan. Mix changes are acceptable but must be mutually agreed upon within 30
calendar days. If such a change represents an acceleration or increase,
Celestica shall make all reasonable commercial efforts to meet the request,
subject to material and capacity availability.

Based on the requested change, Celestica shall provide an "excess and on order"
inventory report on the third day after change to Build Plan. If Netgear reduces
or reschedules a requirement in the Build Plan prior to the scheduled delivery
date, Celestica shall take all commercially reasonable steps to anticipate and
identify all potential liability of Netgear for Materials or Products on order
and minimize charges to Netgear which result from the change to the Build Plan.
Provided that, and to the extent that Celestica complies with its obligations in
the preceding sentence, and provided further that the aggregate out-of-pocket
costs incurred by Celestica do not exceed the total purchase price of the
Products impacted by the change, Netgear agrees to pay the out-of-pocket costs
incurred by Celestica for cancellation of Materials or Products, and for
proprietary materials which could not be returned or used in other
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* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

products and at other sites of Celestica and for any Materials on order which
could not be canceled. Notwithstanding the foregoing, Celestica agrees that
Netgear may reduce or reschedule any product forecast beyond the Build Plan
without cost or liability to Netgear.

5.4.    EXCESS INVENTORY CARRYING COSTS

If Netgear cancels or reschedules the Build Plan and as a result Celestica has
excess material inventory ("Excess Inventory") that is not fully consumed [*]
Netgear agrees to either purchase the Excess Inventory, [*] calculated in U.S.
dollars at the annual rate of the United States prime lending rate plus [*]%.
Excess Inventory shall be calculated as the result of [*]. Netgear is obligated
to purchase inventory [*].

6.      PRICES

6.1     PRICES FOR PRODUCTS

The price for each Product shall be as set forth on the price list attached
hereto as Exhibit 3 (the "Price List"). Celestica and Netgear agree that the
price generally includes all Materials cost and Celestica's service fee.
Celestica's service fee generally includes all overheads, allocations and two
months inventory carrying costs with the exception of supplier inbound freight,
customer outbound freight (Japanese customers), Celestica interplant freight,
and duties. Celestica agrees to provide a breakdown of actual cost for each
Product in final form on or before Monday of week ten in each quarter to meet
Netgear's standards setting calendar requirements.

6.2     PRODUCT PRICE CHANGES

The prices of a Product may change over the term of this Agreement but only by
written agreement of the parties. If the parties agree to change the price of a
Product, the new price and the effective date shall be set forth in the new or
amended Price List within five days of the agreement to change. In its sole
discretion, Netgear may buy down Celestica's existing inventory and work in
process ("WIP") and any open Orders by issuing a purchase order equal to the
difference between the existing standard price and the new lower price. Product
prices are to be reviewed on a quarterly basis by both parties. Differences
between the price paid by Netgear and the price paid by Celestica to the OEM
suppliers will be charged to or reimbursed to Netgear on a quarterly basis.
Additionally, the Celestica service fee will be reviewed and adjusted as agreed
to by both parties on a quarterly basis.

6.3.    CURRENCY EXCHANGE RATE

All prices shall be in US$

                            CONFIDENTIAL INFORMATION
                                     Page 7
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* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

6.4.    COMPONENT SALES AND COMPONENT PROCUREMENT FEE.

Netgear negotiates costs directly with manufacturers of semiconductor
components. These component costs are frequently less than the costs for the
same component if purchased by an OEM supplier from the same manufacturer.
Celestica will purchase components based upon receipt of a monthly Build Plan
from Netgear, which will contain quantity requirements covering the lead time of
each component part. Celestica will sell these component parts to the OEM
suppliers authorized by Netgear. The component parts will be sold to the OEM
suppliers at a price authorized by Netgear. Any and all profit or loss on the
sale of these component parts will be remitted to Netgear. Celestica's component
procurement fee will be [*]% of the component cost paid by Celestica on their
purchase order with the component manufacturer. Payment of the component
procurement fee is made net [*] days from the date of shipment of the components
to the authorized OEM supplier. Celestica will provide notification of component
shipments to OEM suppliers and to Netgear on the date of shipment.

6.5.    MANAGEMENT OF COMPONENT PRICE REDUCTIONS

Not applicable

7.      ORDER FULFILLMENT AND PAYMENT

7.1.    ORDER FULFILLMENT AND RETURNS

Netgear's call centers in the U.S. will handle all of Netgear's Order processing
functions. Celestica will be responsible for fulfilling all Orders including the
preparation of all shipping documents and coordination with a common carrier.
Immediately prior to preparation of a Customer invoice, Celestica will conduct a
ship transaction between the Celestica system and the Netgear system (the
"SunSystem") and generate an invoice to Netgear for the same product.

7.2.    PAYMENT

Payment shall be made based upon a purchase order receipt transaction performed
in Netgear's SunSystem to transfer products into a Netgear Inventory Location.
Payment shall be made net 30 days [*] from Celestica, provided, however, that
payment shall not constitute acceptance of nonconforming products. All amounts
shall be calculated in US Dollars.

Netgear shall invoice Celestica upon return of products to Celestica and receipt
into Celestica's Systems. All amounts properly due shall be paid within 30 days
[*] from Netgear. Payment shall not constitute acceptance of nonconforming
products. All amounts shall be calculated in US Dollars. Netgear may, with the
approval of Celestica, choose to issue a debit memo against existing accounts
payable with Celestica rather than issuing an invoice for accounts receivable.

7.3.    SHIPMENT SUCCESS REQUIREMENTS

Netgear requires that all shipments be made on the scheduled shipment day or up
to three days before the scheduled shipment day: Celestica shall make every
shipment on time; however, if Celestica fails to deliver Product on time due to
reasons which are within its reasonable control, Celestica shall pay to Netgear
the amount of the difference between normal shipping expense and expedited
shipping expense. If delays are not attributable to Celestica as set forth
above, then Netgear shall pay the difference between normal shipping expense and
expedited shipping expense.

                            CONFIDENTIAL INFORMATION
                                     Page 8
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* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

7.4.    TAXES AND DUTIES

Netgear will pay as a separate item on an invoice any tax lawfully imposed on
the sale of the Products or on the provision of Services to Netgear or will
provide Celestica with a certificate of exemption acceptable to the appropriate
taxing authority. Celestica agrees to provide reasonable assistance without
charge in any proceeding for the refund or abatement of any such taxes Netgear
is required to pay. Without limiting the generality of the foregoing, Netgear
shall have no obligation to pay taxes based upon Celestica's net income.

7.5.    TITLE AND RISK OF LOSS AND SHIPMENT

Title to the Products will pass to Netgear upon delivery to the Netgear
Inventory Location. Prior to title passing, Celestica shall bear risk of all
loss, damage or theft. Shipping instructions shall be specified in the Build
Plan and Netgear will designate default shipping instructions. Celestica will
provide proof of shipment upon request and will provide reasonable assistance to
Celestica at no charge in any claim it may make against a carrier or insurer for
misdelivery, loss or damage to Products.

8.      INVENTORY MANAGEMENT

Products will be received into the Netgear Inventory Location using purchase
order receipts on Netgear's SunSystem. Title will pass, and Netgear will take
financial ownership, and will be invoiced, only for Products received into the
Netgear Inventory Location on SunSystem purchase orders.

Products returned from Netgear Customers will be initially received into the
Netgear Inventory Location using the Sales Order Return transaction in
SunSystem. Celestica will have the responsibility to inspect, test, repackage or
return Products to suppliers based upon disposition of the return.

Sixty days of carrying costs associated with all Netgear Products held by
Celestica are included in the standard pricing contained in Section 6.1. All
financial obligations associated with product purchases or returns between
Celestica and its suppliers are the sole responsibility of Celestica.

9.      TERM AND TERMINATION

9.1     TERM

This Agreement will commence on the Effective Date and continue for a period of
one year. Unless terminated earlier pursuant to the terms of this Agreement,
this Agreement will automatically renew for successive one-year periods upon
expiration of the term of this Agreement.

9.2     TERMINATION

A party shall be in default under this Agreement if it:

(a)  ceases conducting business in the normal course, makes a general assignment
     for the benefit of creditors, suffers or permits the appointment of a
     receiver for its business or assets, or becomes subject to any proceeding
     under any statute of any governing authority relating to insolvency or the
     protection of rights of creditors; or

(b)  fails to perform any material obligation required to be performed by it
     under this Agreement for a period of 30 days after receipt of written
     notice by the other party of such failure.

                            CONFIDENTIAL INFORMATION
                                     Page 9
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* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
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  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

New Celestica AgmtV25

In such event, the non-defaulting party shall have the right to terminate this
Agreement immediately by giving written notice to the other.

9.3.    EFFECT OF EXPIRATION OR TERMINATION

Upon expiration or any termination of this Agreement by either party:

(a) Netgear shall pay all undisputed amounts or charges owed to Celestica as
provided in this Agreement, provided that Netgear shall have the right to
set-off any such amounts or charges owed to Celestica against any amounts owing
to Netgear by Celestica pursuant to this Agreement. If the aggregate amount
owing by Netgear to Celestica is less than the aggregate amounts owing by
Celestica to Netgear, Celestica shall pay such net amount owing to Netgear
promptly and in full within forty-five days of the date which is the earliest of
expiration or termination, as the case may be.

(b) Celestica shall complete all partially completed Products and deliver such
Products as provided above in accordance with the terms of this Agreement which
would have otherwise applied to such Production Effort or Services, as
applicable. Provided Netgear has made all payments required pursuant to
paragraph (a) above, Celestica shall deliver within three (3) weeks of the later
of the date of expiration or termination or such payment, if required, to
Netgear all finished and partially-finished Products and Materials relating
thereto in exchange for payment by Netgear of the full cost for Products, direct
cost for work-in-process and Material, to the locations designated by Netgear.

(c) The provisions of this Agreement relating to Confidential and Proprietary
Information (Section 10), Intellectual Property Rights (Section 11) except the
license granted to Celestica in Section 11.3, Warranties (Section 12),
Indemnification (Section 13) and Section 14.12, shall remain in effect beyond
any expiration or termination.

(d) Celestica shall return all Netgear Proprietary Information, and under
Netgear's supervision, destroy or erase all copies of such Netgear Proprietary
Information in the possession of Celestica or any of its Affiliates or their
respective employees, consultants, agents or representatives, including copies
on paper or other hard copy and copies on computer or other storage media.

9.4.    DUTY TO FULFILL

Notwithstanding any termination or expiration of this Agreement, Celestica
agrees to procure, inspect and fulfill all Orders placed prior to the date of
expiration or termination in accordance with the terms of this Agreement if such
Orders have not previously been cancelled.

10.     CONFIDENTIAL AND PROPRIETARY INFORMATION

10.1    PROTECTION OF INFORMATION

During the term of this Agreement, the parties anticipate that each shall
disclose to the other in connection with this Agreement certain of its
Confidential Information. The recipient shall protect the disclosed Confidential
Information by using the same degree of care to prevent the unauthorized use,
dissemination, or publication of the Confidential Information as the recipient
uses to protect its own confidential information of alike nature, but no less
than a reasonable degree of care. Recipient's duty to protect the Confidential
Information disclosed under this Agreement shall expire three years from the
expiration or termination of this Agreement, except that source code shall be
protected hereunder indefinitely. Except as permitted by this Agreement, the
recipient shall disclose no part of such Confidential Information to anyone
except to those of its employees or contractors who have (i) a need to know the
same to accomplish the purposes of this Agreement, (ii) signed an Agreement
under which they shall keep confidential such Confidential Information (iii)
before receiving access to the Confidential Information, acknowledged its
confidential, proprietary and trade secret nature, (iv) agreed to use such
Confidential Information only for the purposes of performing recipient's
obligations under this Agreement. The terms of this Agreement may also be
disclosed to directors, officers, employees, attorneys, accountants,
contractors, banks or actual or potential

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

New Celestica AgmtV25

financing sources of recipient, but only if and to the extent such persons need
to know the information for the performance of their duties and are subject to
confidentiality agreements or fiduciary duties of confidentiality to recipient
and agree to use such information only for such duties.

This Agreement imposes no restriction upon the recipient with respect to
disclosure or use of information: (a) that was in the recipient's possession
before receipt from the discloses; (b) that is or becomes (prior to such
disclosure or use) a matter of public knowledge through no fault of the
recipient; (c) that is received by the recipient from a third party without a
duty of confidentiality; (d) that is disclosed by the discloser to a third party
without a duty of confidentiality on the third party; (e) is independently
developed by the recipient; (e) to the extent disclosed in accordance with the
order or requirement of a court, administrative agency, or other governmental
body (provided, however, that the receiver shall provide prompt notice thereof
to enable the discloser to seek a protective order or otherwise prevent such
disclosure); or (f) that is disclosed by the recipient with the discloser's
prior written approval; or (g) as required by the federal securities law and
rules and regulations thereunder:

10.2    PUBLICITY

All press releases and printed material using the name, logo or other
identifying characteristics of a party shall be subject to prior approval of the
other party.

10.3    PROTECTION OF CELESTICA INFORMATION

Each party agrees that the price of components negotiated by it and provided to
the other party shall be deemed to be Confidential Information of that party.
Each party agrees not to discuss the origins of such information with any third
party. Each party agrees not to use such information to solicit a discount from
the disclosing supplier, from any of the supplier's competitors or from any
other supplier for use by the recipient other than for the purposes of
performing its obligations under this Agreement. Each party acknowledges that
unauthorized disclosure of such information may irreparably damage the
discloser's relationship with its suppliers and that any benefit accruing to the
recipient shall belong to Netgear and/or the disclosing party.

10.4    INJUNCTIVE RELIEF

Each party acknowledges that damage from improper disclosure of Confidential
Information is irreparable and that it would be extremely impracticable to
measure the resulting damages. Accordingly, in addition to any other rights and
remedies that a party may have, the injured party is entitled to equitable
review, including preliminary and permanent injunction, and the other party
expressly waives the defense that a remedy in damages will be adequate.

10.5    RETURN OF CONFIDENTIAL INFORMATION

If this Agreement is terminated, and upon request of the discloser, the
recipient shall promptly return all Confidential Information received from the
discloser, together with all copies, or if requested by the discloser, certify
that all such Confidential Information has been destroyed.

11.     INTELLECTUAL PROPERTY RIGHTS OF THE PARTIES

11.1    RESERVATION OF PROPRIETARY RIGHTS

Netgear reserves all proprietary rights in the Products and in all associated
original works, documentation, computer programs, discoveries, inventions,
patents, know-how, techniques, designs, engineering details and other data
developed by Netgear or Celestica, either singly or jointly, as a result of work
performed under this Agreement. Celestica agrees to reproduce any appropriate
copyright notice for Netgear on all Products manufactured under this Agreement.
Netgear further reserves all right, title and interest in prototype layouts,
post-layout simulation results, post-layout specifications, test tapes and test
fixtures developed or produced pursuant to this Agreement. The foregoing
reservations shall not, however, apply to proprietary rights, original works,
computer programs,

                                                                         Page 11

<PAGE>   12
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

New Celestica AgmtV25

discoveries, inventions, patents, know-how, techniques, designs, engineering
details and other data developed solely by Celestica as a result of work
performed under this Agreement that (i) does not relate to (x) the Products or
the Specification, or (y) to Netgear actual or demonstrably anticipated research
or development, (ii) does not result from work performed by Celestica solely for
Netgear, or (iii) relates generally to manufacturing methods and processes. In
each such case, the foregoing shall be the sole property of Celestica.

11.2    LICENSE TO MANUFACTURE

Netgear hereby grants to Celestica a non-exclusive license to use the
Specifications, including all software programs contained therein and all
related proprietary data and know-how necessary to perform the Services pursuant
to this Agreement. This license is non-transferable, may be used only in
connection with the performance of the Services for Netgear under this
Agreement, and shall expire on the date on which Celestica's obligations to
perform the Services terminates under this Agreement.

11.3.   TOOLING: OWNERSHIP AND LICENSE

Netgear acknowledges that Celestica shall retain title to the internal tooling
developed by Celestica in connection with this Agreement, and Celestica
acknowledges that Netgear shall have the right to use such tooling in the event
of a material default by Celestica as defined elsewhere in this Agreement only
in order to fulfill Celestica's obligations hereunder prior to such default.
Celestica agrees that each Product created is for Netgear's exclusive use and
further agrees that Celestica has no right to sell or otherwise transfer any
interest in a Product to any party unless Netgear has provided permission in
writing prior to any such sale or transfer.

11.4.   CAPITAL ASSETS

In order to perform the Production Effort as stipulated in Article 3, Celestica
may have to use certain capital equipment specified by Netgear. If Celestica can
use the equipment for current or future applications other than for Netgear
assemblies, this equipment shall be the property of Celestica and shall be
funded as such. If the capital equipment cannot be used by other non-Netgear
applications, such equipment shall be solely the properly of Netgear and shall
have Netgear asset tags affixed to the equipment. Such property shall be funded
by Netgear. Maintenance of all equipment shall be per Article 3 above.

Celestica shall maintain inventory of all capital assets, regardless of
ownership, and shall provide inventory records to Netgear on demand. Inventory
records should include, but not be limited to, date of acquisition, description
of asset, serial number, and location.

12.     WARRANTIES

12.1.   FREE FROM DEFECTS

Celestica warrants that except for refurbished products, the Products shall be
new and unused at the time of delivery to the Netgear Inventory Location.

12.2.   TITLE, INFRINGEMENT

Celestica warrants that: (a) it has and shall pass to Netgear good title to the
Products free and clear of all liens and encumbrances; (b) no claim or action is
pending or threatened against Celestica or, to Celestica's knowledge, against
any licensor or supplier of Celestica that would adversely affect the ability of
Celestica to procure and deliver the Products or the right of Netgear or any
Customer of Netgear to use the Products for their intended use, and (c) it has
all rights and powers necessary to perform its obligations under this Agreement.

                                                                         Page 12
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  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

New Celestica AgmtV25

12.3.   SERVICES

Celestica warrants that all Services performed under this Agreement will be
performed in a competent, professional manner and in accordance with the
Statement of Work and the applicable Specifications under this Agreement.

12.4.   REMEDIES FOR PRODUCTS UNDER WARRANTY

Not applicable.

12.5.   LATENT DEFECTS

Not applicable.

12.6.   YEAR 2000 WARRANTY

Subject to the provisions of this Section below, Celestica further covenants and
represents that Celestica Systems shall (a) process date and time related data
without causing any processing interruptions, abnormal terminations, or changes
in performance characteristics, and (b) shall process and manipulate all date
and time related functions correctly. Without limiting the generality of the
foregoing, the Celestica Systems shall:

(a) Correctly handle date and time related data before, during and after January
1, 2000, including accepting date and time input, providing date and time
output, and performing ongoing operations on dates and times and portions of
dates and times including calculating, comparing and sequencing of dates and
times (in both forward and backward operations spanning century boundaries);

(b) Correctly handle leap year calculations, including, identification of leap
years, interval calculations (in both forward and backward operations spanning
century boundaries), day-in-year calculations, day-of-the-week calculations, and
week-of-the-year calculations);

(c) Correctly handle all two digit date and time related input in a manner that
resolves ambiguity as to century in a disclosed, defined and predetermined
manner; and

(d) Correctly store, retrieve and provide output of all date and time data in a
manner that is unambiguous as to century.

Celestica shall promptly correct any failure of the Celestica Systems to conform
to the above warranty.

12.7.   LIMITATIONS

THIS CLAUSE 12.7 SETS OUT THE SUPPLIER'S SOLE OBLIGATION AND LIABILITY, AND
NETGEAR'S EXCLUSIVE REMEDIES, FOR CLAIMS BASED ON DEFECTS IN OR FAILURE OF ANY
PRODUCT OR SERVICE OR THE SUBJECT MATTER OF ANY SERVICE AND REPLACES ALL OTHER
WARRANTIES AND CONDITIONS, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE PROVIDED ALWAYS THAT THE SUPPLIER DOES NOT EXCLUDE OR LIMIT ITS
LIABILITY FOR DEATH OR PERSONAL INJURY RESULTING FROM ITS NEGLIGENCE NOR
LIABILITY FOR BREACH OF ANY TERM IMPLIED BY STATUTE TO THE EXTENT THAT SUCH
LIABILITIES CANNOT BY LAW BE LIMITED OR EXCLUDED.

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

New Celestica AgmtV25

13.     INDEMNIFICATION

13.1.   INDEMNIFICATION BY NETGEAR

Netgear will, at its expense and at Celestica's request, defend any claim or
action brought against Celestica by a third party (i) to the extent that it is
based on a claim that any Specification provided under this Agreement infringes
or violates any patent, copyright, trademark, trade secret or other proprietary
right of the third party or (ii) to the extent caused by any grossly negligent
act or omission or willful misconduct of Netgear; and Netgear will indemnify and
hold Celestica harmless from and against any costs and liability reasonably
incurred by Celestica that are attributable to that claim, subject to compliance
with the notice provisions below.

Netgear shall have no liability if the alleged infringement is the result of
Celestica's modification or alteration of the Specification; or Netgear's
compliance with Celestica's specifications, designs, or processes; or if
Celestica had actual notice that use of such Specification or its incorporation
into a product would cause such infringement; provided, however, that if
Celestica has such actual notice and promptly informs Netgear of such actual
notice, Celestica shall not be liable for failure to deliver Products hereunder,
but only to the extent that such failure is a result of such actual notice.

13.2.   INDEMNIFICATION BY CELESTICA

Celestica will, at its expense and at Netgear's request, defend any claim or
action brought against Netgear by a third party to the extent caused by any
negligent act or omission or willful misconduct of Celestica or its Affiliates;
and Celestica will indemnify and hold Netgear harmless from and against any
costs and liability reasonably incurred by Netgear that are attributable to that
claim, subject to compliance with the notice provisions below.

13.3.   PROCEDURE FOR INDEMNIFICATION

If any claim or action shall be brought or asserted against an indemnified party
as provided above (the "Indemnified Party") in respect of which indemnity may be
sought from an indemnifying party under such Sections (the "Indemnifying Party")
the Indemnified Party shall promptly notify the Indemnifying Party who shall
assume the defense thereof and the payment of all expenses; except that any
delay or failure to so notify the Indemnifying Party shall only relieve the
Indemnifying Party of its obligations hereunder to the extent, if at all, that
it is prejudiced by reason of such delay or failure. The Indemnified Party shall
have the right to employ separate counsel in any such claim or action and
participate in the defense thereof, but the fee and expenses of such counsel
shall be at the expense of the Indemnified Party, unless (i) the employment
thereof shall have been specifically directed and required by the Indemnifying
Party or (ii) the Indemnifying Party shall have elected not to assume the
defense and employ counsel. Without the consent of the Indemnified Party, the
Indemnifying Party shall have no right to settle or compromise on any
non-monetary matter.

13.4.   LIMITATION OF LIABILITY

TO THE MAXIMUM EXTENT PERMITTED BY LAW, UNDER NO CIRCUMSTANCES AND UNDER NO
LEGAL THEORY, TORT, CONTRACT, OR OTHERWISE, SHALL NETGEAR BE LIABLE TO SUPPLIER
OR ANY OTHER PERSON FOR ANY INDIRECT (INCLUDING BUT NOT LIMITED TO LOST
PROFITS), SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, EVEN IF NETGEAR SHALL
HAVE BEEN INFORMED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY
OTHER PERSON.

TO THE MAXIMUM EXTENT PERMITTED BY LAW, UNDER NO CIRCUMSTANCES AND UNDER NO
LEGAL THEORY, TORT, CONTRACT, OR OTHERWISE, SHALL SUPPLIER BE LIABLE TO NETGEAR
OR

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

New Celestica AgmtV25

ANY OTHER PERSON FOR ANY INDIRECT (INCLUDING BUT NOT LIMITED TO LOST PROFITS),
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, EVEN IF SUPPLIER SHALL HAVE BEEN
INFORMED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY OTHER
PERSON.

14.     GENERAL PROVISIONS

14.1.   ACCESS TO FACILITIES

Netgear shall have the right to review and audit Celestica's facilities,
operations, purchase orders, agreements, and procedures at any reasonable time
with reasonable notice for purposes of determining compliance with the
requirements of this Agreement. From time to time Netgear's Customers will
request the right to review Celestica's facilities and operations for the
purpose of qualification. Celestica agrees to permit such Customer surveys with
five to ten working days notice, provided Celestica does not consider such
Customer of Netgear to be a competitor of Celestica or one of Celestica's
customers.

14.2.   FORCE MAJEURE

"Force Majeure" shall include all acts or events beyond the control of a party,
including but not limited to acts of God, government restrictions, continuing
domestic or international problems such as wars or insurrections, strikes,
fires, floods, work stoppages, and embargoes, which prevent totally or partially
the fulfillment of the obligations of either party.

A party affected by an event of Force Majeure shall be released without any
liability on its part from the performance of its obligations (other than an
obligation to pay money) under this Agreement and the applicable Site Agreement,
if any, but only to the extent and only for the period that its performance of
such obligations is prevented by circumstances of Force Majeure and provided
that such party shall have given prompt notice to the other party. Such notice
shall include a description of the nature of the event of Force Majeure, its
cause, and its possible consequences. The party claiming circumstances of Force
Majeure shall promptly notify the other party of the conclusion of the event.
The period of Force Majeure shall be deemed to commence on the date that the
event of Force Majeure first occurs. Regardless of the excuse of Force Majeure,
if either party is not able to perform within ninety (90) days after such event,
the other party may terminate the Agreement. Termination of this Agreement shall
not affect the obligations of either party which exist as of the date of
termination.

During the period that the performance by one of the parties of its obligations
under this Agreement or a Site Agreement has been suspended by an event of Force
Majeure, the other party may likewise suspend the performance of all or part of
its obligations under this Agreement.

14.3.   COUNTRY OF ORIGIN

In the event that Netgear requires information concerning component origin due
to government contract requirements or other U.S. reporting requirements,
Netgear will provide Celestica with a written outline of the specific
information requirements, which Products such requirements apply to, and the
reason or legal basis for the requirement. Upon receipt of such information,
Celestica will use commercially reasonable efforts to support Netgear's
requirements.

14.4.   NOTICES

All notices shall be sent by certified mail, postage prepaid, by personal
delivery, courier service, or by facsimile or other form of recorded
communication to the parties at their respective addresses set forth below. Any
notices given

                                       15

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

New Celestica AgmtV25

shall be deemed to have been received as follows: if sent by facsimile or other
form of recorded communication, when transmitted; if sent by certified mail, on
the date of delivery as shown on the return receipt; and if by courier service,
on the date delivered. Either party may change its notice address by written
notice to the other.

If to Celestica:                               If to Netgear:

Celestica Asia, Inc.North America Inc.         Netgear, Inc.
2222 Qume Drive                                4401 Great America Parkway
San Jose, Ca. 95131                            Santa Clara, CA 95052-8185
                                               Attention: Director of Operations

Attention: VP of Materials
With a copy to CFO at the same address

14.5.   EXPORTS AND CUSTOMS

Each party agrees that it will not knowingly (i) export or re-export, directly
or indirectly, any technical data (as defined by the U.S. Export Administration
Regulations), including software received from the other under this Agreement or
(ii) export or re-export, directly or indirectly, any direct product of such
technical data, including software, to any destination to which such export or
re-export is restricted or prohibited by U.S. or applicable non-U.S. law without
obtaining prior authorization from the U.S. Department of Commerce and/or other
competent government authorities to the extent required by those laws. This
clause shall survive termination or cancellation of this Agreement.

Celestica shall certify quarterly to Netgear the correct country of origin of
each Product determined in accordance with the rules of origin set out in the
applicable laws and treaties. Celestica shall notify Netgear at least sixty (60)
days in advance of any change in the origin of a Product. Celestica shall
maintain supporting documentation sufficient to meet the requirements of any
audit of the origin information by Netgear or by any governmental entity.

Celestica shall obtain from each of its suppliers the appropriate certificate of
origin of Materials and shall provide to Netgear, on the last day of each
calendar quarter, a report identifying which suppliers of Materials have, and
which suppliers have not, certified the country of origin for all Materials
supplied by it to Celestica for manufacture of the Products.

All Products must be marked with their country of origin. The degree of
permanence of the origin marking on the Product shall be sufficient to ensure
that, in any reasonably foreseeable circumstance, the marking shall remain on
the Product throughout its expected life. Both the Product's immediate packaging
and the outermost containers shall also be marked to indicate the country of
origin. Celestica shall be solely responsible for all fines, penalties, costs
and seizures resulting from inadequate marking, packaging of labeling.

Unless otherwise set forth in this Agreement, Celestica shall take all
administrative actions required to produce customs invoices and country of
origin documents for all shipments crossing international borders which comply
with all laws, treaties and regulations of both the exporting country and the
importing country. If a Product includes Materials having different countries of
origin, the different countries of origin must be identified on the customs
invoices, along with the related quantities/serial numbers of such Materials.
Celestica shall be solely responsible for all fines, penalties and costs
resulting from a customs invoice not being so compliant.

Celestica shall perform all administrative actions required to determine the
eligibility of each Product for preferential treatment under the rules of any
applicable trade treaties/agreements and, if eligible, provide the necessary
documentation and obtain such preferential treatment. Celestica shall use it's
best efforts to minimize any penalties and costs resulting from any such
documents subsequently determined to be invalid, shall maintain all
documentation to support the eligibility and shall respond in a timely manner to
verification questionnaires or reviews.

                                       16
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* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

14.6.   AMENDMENT, MODIFICATION OR WAIVER

The provisions of this Agreement may be amended or waived only by an instrument
in writing signed by the authorized representatives of each party, except as
otherwise expressly provided in this Agreement.

14.7.   DISASTER RECOVERY PLAN

Celestica agrees to develop and maintain a disaster recovery plan to be put into
effect in the event that it becomes unable to fulfill Orders for any reason for
a period of more than 15 calendar days. The disaster recovery plan shall be
submitted by Celestica to Netgear for review within 15 days of the Effective
Date of this Agreement, and shall be reviewed yearly thereafter. Celestica
agrees that the disaster recovery plan must enable Celestica to continue to
fulfill Orders in accordance with the time schedules required under this
Agreement.

14.8.   MANUFACTURING PROCESS INSTRUCTIONS

In the event of a disaster or material default by Celestica under this
Agreement, at no cost and within three business days, Celestica shall make
available to Netgear all process instructions such that Netgear may, at its
discretion, have the Products produced by third parties.

14.9.   INDEPENDENT CONTRACTOR

This Agreement shall not constitute Celestica the agent or legal representative
of Netgear for any purpose and Celestica shall not hold itself out as an agent
of Netgear other than as expressly provided in this Agreement. This Agreement
creates no relationship of joint venturers, partners, associates, employment or
principal and agent between the parties, and both parties are acting as
independent contractors. Neither party shall have the right to exercise any
control or direction over the operations, activities, employees or agents of the
other party in connection with this Agreement. Celestica is not granted any
right or authority to, and shall not attempt to, assume or create any obligation
or responsibility for or on behalf of Netgear: Celestica shall not have any
authority to bind Netgear to any contract, whether of employment or otherwise,
and Celestica shall bear all of its own expenses for its operations, including,
without limitation, the compensation of its employees and sales people and the
maintenance of its offices, service, warehouse and transportation facilities.
Celestica shall be solely responsible for its own employees and sales people and
for their omissions, acts and the things done by them. Netgear expressly
disclaims any liability for any commitments on behalf of Netgear made by
Celestica.

14.10.  CELESTICA RESPONSIBLE FOR ITS SUBCONTRACTORS

The acknowledgment by Netgear of any subcontractor of Celestica shall in no way
be construed to relieve Celestica of any of its duties, responsibilities and
obligations to Netgear under this Agreement.

14.11.  NO ASSIGNMENT

Neither this Agreement nor any right or obligation under it shall be assigned or
delegated by Celestica or by Netgear, voluntarily or by operation of law,
without the prior written consent of the other party, which consent may not be
unreasonably withheld. Any attempted assignment shall be deemed voidable. An
attempted assignment shall be deemed to occur in the event of a sale or transfer
of substantially all of the assets of, or a majority interest in, the voting
shares to, or the merger or consolidation with or into, any other entity .

                            CONFIDENTIAL INFORMATION
                                    Page 17
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  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

14.12.  APPLICABLE LAW

All issues and questions concerning the construction, validity, enforcement,
interpretation and performance of this Agreement, the rights and obligations
arising hereunder and any purchase made hereunder shall be governed by the laws
of the State of California and the federal laws of the United States applicable
therein, without reference to the UNCITRAL Conventions on Contracts for the
International Sale of Goods and without giving effect to any choice of law or
conflict of law, rules or provisions (whether of California or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than California. The parties hereto submit to and consent to the
nonexclusive jurisdiction of the courts located in the State of California.

14.13.  RIGHTS CUMULATIVE

Except as otherwise expressly provided in this Agreement or in any Site
Agreement, all rights and remedies conferred by this Agreement, by any other
instrument, or by law are cumulative and may be exercised singularly or
concurrently.

14.14.  SEVERABILITY

If any one or more of the provisions of this Agreement for any reason shall be
held to be invalid, illegal, or unenforceable in any respect by any law or
regulation of any government or by any court, such provision shall not affect
any other provision, and this Agreement shall be construed as if such invalid,
illegal or unenforceable provision had never existed, except in those instances
where removal or elimination of such provision would result in a failure of
consideration under this Agreement.

14.15.  ENTIRE AGREEMENT

This Agreement and each Site Agreement, including all Exhibits, constitutes the
entire Agreement between the parties pertaining to the subject matter of this
Agreement. This Agreement supersedes all prior agreements and understandings
between the parties, written or oral, with respect to such subject matter. No
representations or statements of any kind made by any representative of Netgear
which are not stated in this Agreement shall be binding on Netgear. No course of
dealing or course of performance shall be relevant to explain or supplement any
term expressed in this contract.

                            CONFIDENTIAL INFORMATION
                                    Page 18

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

New Celestica AgmtV25

<PAGE>   20
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------

                          EXHIBIT 1: STATEMENT OF WORK

The following Statement of Work (SOW) is for the Netgear Operations. Netgear
enters into this contract with Celestica with the understanding that Celestica
will commit the proper mixture of resources and display the attributes of
continuous improvement, initiative, innovation, accountability, responsibility,
and integrity in support of Netgear business goals. All functions described in
this statement of work will be performed at a level of good manufacturing
practices with the goal of being "best in class". All functions performed by
Celestica will be subject to Audit by Celestica's own Quality System and
internal corrective action procedures. There are nine (9) KEY AREAS OF THIS SOW.
Each Key Area contains detailed information about Netgear's requirements. The
Key Areas are:

o    Business Management Procedures & Reporting

o    Information Systems Integration

o    Planning and Purchasing Management

o    Inventory Management

o    Product Testing and Inspection

o    Product Fulfillment and Logistics

o    Returns Processing

o    Supplier Performance Management

o    Supplier Product Quality Program and Management

KEY AREAS IN DETAIL:

BUSINESS MANAGEMENT PROCEDURES & REPORTING - We intend to mutually plan for and
make corporate-wide business decisions. To manage the technical and business
changes, Netgear and Celestica shall:

o    Provide dedicated Program Management personnel whose goal is to provide
     consistent and efficient responses to program requirements.

o    Possess a strong support organization which can be drawn upon in support of
     Netgear business needs on a worldwide basis.

o    Provide Netgear Functional Organizational Chart.

o    Provide Job Descriptions, Roles and Responsibilities for all Netgear
     Program personnel.

o    Conduct quarterly business reviews for each business management team.

o    Create a process to communicate about and resolve issues promptly and to
     drive continuous improvement of the day-to-day operations.

o    Provide general reporting which supports Netgear's Operations Goals:

-    Warranty Return Rate @ < .5% CY98, <.2% CY99

        -   Product return activity reports

        -   Returned product test yield reports

        -   Defects per Million on returned product

        -   Pareto of Defects on returned product Warranty and non-warranty
            receipts activity

-    Incoming Inspection Test DOA Units @ < 1% CY1999, < .5 % CY2000

        -   Incoming Defects per Million by Product

        -   Incoming Defects per Million by Supplier

        -   Pareto of Defects by Product by Supplier

-    Purchase order receipt reports by supplier by product

        -   On time receipts by supplier by product

        -   Product lead-time reports.

-    Shipping Errors @ < 1% CY1999, < .5 % CY2000

                            CONFIDENTIAL INFORMATION

                                     Page 1
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  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------

-    Value of shipments at standard cost reports.

-    Shipment activity reports.

-    On Time Shipment @ 98% (Actual Ship Date Vs Scheduled Ship Date).

-    Order Fulfillment Lead-time @ 95% 5 Days ARO (After Receipt of Order).

-    Inventory Variance @ $500 per $Million.

-    Inventory Turns @ 12.

        -   Separate Turns calculations for IC inventory and Product
            inventories.

        -   On hand Inventory by item by location.

        -   Inventory aging reports by item to track slow moving and excess
            inventory.

BUSINESS MANAGEMENT PROCEDURES & REPORTING (CONTINUED)

o    Provide additional reporting required determining root cause for management
     action in support of Operations Goals. This additional reporting may
     include activity levels, cost per activity, productivity, cycletime,
     process quality, accuracy, or any other measurement determined to be a key
     measurement by Netgear management.

o    Reports will require information sorted by customer, supplier, product,
     inventory location, or activity, as applicable.

o    Produce reports which enable Supplier to benchmark performance to Good
     Manufacturing Practice (GMP), Best -in-Class, and World-Class Manufacturing
     (WCM).

o    Prepare and participate in Quarterly performance review.

o    Produce both hard and soft (electronic) files of reports.

INFORMATION SYSTEMS INTEGRATION - Netgear will provide the database platform for
the control of Sales and Inventory. This database will be installed at Netgear,
with access provided to the supplier at the supplier's location(s). The supplier
will be required to:

o    Maintain the data integrity of all transactions associated with the
     receipt, storage, transfer, issue, and shipment of materials and products.

o    The supplier will work with Netgear to ensure proper separation of duties,
     password access over system functionality, etc. in order to comply with
     proper internal controls and financial audit requirements.

o    The supplier will provide on-going systems support for the Netgear database
     as required.

                            CONFIDENTIAL INFORMATION

                                     Page 2

<PAGE>   22
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------

PLANNING AND PURCHASING, MANAGEMENT - Planning and Purchasing Management is
defined as the management of all controlled activities associated with the
requirements planning and purchase of Netgear material and product. Requirements
are:

o    Maintain inventory levels per Netgear forecasts by use of material
     requirements planning (MRP) and order action (purchase orders) while
     achieving 12 inventory turns.

o    Issue Purchase Orders to Netgear suppliers within 5 business days of
     receipt of Build Plan.

o    Product or item due dates on purchase orders issued will reflect the actual
     requested and confirmed delivery date for the product or item ordered on
     the purchase order.

o    Provide purchase order history reports detailing purchase order number,
     purchase order date, product, supplier name, due date, quantity ordered,
     unit price, and extended value.

o    Provide hard copy of all purchase orders issued to Netgear suppliers to
     Netgear within 10 business days of issue to Netgear suppliers. If at any
     time a change order is issued to an existing purchase order, a hard copy of
     the changed purchase order will be provided to Netgear within 10 business
     days of issue to Netgear suppliers.

o    Provide open purchase order reports to Netgear on a weekly basis. The
     content of the open purchase order report will contain the purchase order
     number, purchase order date, product, supplier name, due date, quantity
     ordered, unit price, and extended value.

o    Provide purchase order receipts report to Netgear on a weekly basis. The
     content of the purchase order receipts report will contain the product
     ordered, supplier name, purchase order number, issue date of purchase
     order, due date, date received, receipt quantity, unit price, and extended
     value of quantity received.

o    Engage in daily communications with suppliers if necessary to manage on
     time delivery of products or items ordered. Expedite or reschedule orders
     as required to satisfy fluctuations in demand for Netgear products and to
     achieve inventory plans.

o    Measure on time delivery performance of suppliers.

o    Measure actual lead-time performance of suppliers.

o    On a daily basis, provide accurate reporting of product availability
     against product demand (available-to-promise report) to include the
     following information:

-    Total quantity on hand by product by location.

-    Total quantity of booked orders by product by location.

-    Total quantity of products "drop-shipped" (in-transit to a location but not
     received against an open purchase order) by product by destination
     location.

-    Total quantity of products in inventory but in-transit between locations
     (received off purchase orders into inventory and shipped from one location
     to another) by product by destination location.

-    Net product available versus total demand (total on hand versus total
     ordered) by product by location.

-    A "remarks" section for each product or item where information concerning
     delivery schedules and any relevant actions being taken to satisfy product
     demand are noted.

o    Report on a daily basis the status of all inbound materials in-transit to
     inventory locations. Report will detail product, quantity shipped, supplier
     invoice number, forwarding information, and estimated arrival date at
     destination.

o    Schedule production of bundled products or conversion of products from one
     version to another version on a daily basis to satisfy product demand.

o    Provide activity reports on a monthly basis to Netgear for use in monthly
     forecast creation and master product planning purposes.

                            CONFIDENTIAL INFORMATION

                                     Page 3

<PAGE>   23
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------

INVENTORY MANAGEMENT - Inventory Management is defined as the management of all
controlled activities associated with the receipt, storage, security, transfer,
accuracy, and shipment of Netgear material and product. The requirements for
Inventory Management apply to materials and products controlled by Celestica in
Celestica's SAP Inventory System and Netgear's SunSystem Inventory System.
Requirements are:

o    First - In, First - Out (FIFO) process control.

o    Lot tracking process for material purge / stop shipment requirements.

o    Bar-Code / Auto - Identification processes.

o    Bin storage and ESD (Electro-Static Discharge) protection for handling and
     storage of LC.'s.

o    Assume financial responsibility for loss of product or materials owned by
     Netgear in Netgear's SunSystems inventory locations due to shrinkage,
     pilferage, transaction error, physical inventory adjustment, or any damage
     to Netgear product caused by Celestica personnel.

o    Perform all inventory transactions in both Celestica's SAP and Netgear's
     SunSystems databases.

o    Develop procedures to control and ensure that inventory transactions on
     Celestica's SAP and Netgear's SunSystem are performed in the proper
     sequence for inventory reconciliation between the two systems.

o    Establish procedures to ensure inventory transactions performed by
     Celestica personnel in both Celestica's SAP and Netgear's SunSystems
     reflect actual material or product movements. Ensure source documents are
     used to perform inventory transactions. Examples of such source
     documentation are inventory transfer documents, inventory issue documents,
     inventory receipt documents, material travelers, inventory receipt
     documents, inventory shipment documents, delivery receipts, cargo receipts,
     bills of lading, etc., in support of inventory transactions performed on
     either SAP or SunSystems databases. Maintain records of all source
     documents used for inventory transactions in a manner that facilitates
     internal or external audit requirements.

o    Provide support from qualified personnel to audit compliance to financial
     period end for proper revenue recognition.

o    Maintain inventory accuracy through management of cycle-count program,
     including ABC count criteria and count frequency.

o    Perform Physical Inventories as directed for both SAP and SunSystems.
     Provide proper oversight and audit of physical inventories to comply with
     reporting requirements from internal or external auditors.

o    Inventory accuracy to be maintained at $500 per $Million.

o    Perform incoming quality control (IQC) on all products.

o    Establish and maintain controlled inventory locations to segregate
     materials and products by condition, type, status, or other attributes as
     agreed. Examples are:

-    By condition: Maintain separate inventory locations for goods returned from
     customers, whether returned as unsold products (stock rotations) or
     defective product (warranty returns) until product is dispositioned.

-    By Type: Raw materials such as integrated circuits, power supplies,
     packaging material, etc. should be maintained in separate inventory
     locations from completed products (finished goods).

-    By status: Establish and maintain separate inventory locations for
     materials and products undergoing incoming inspection.

o    On a weekly basis, provide to Netgear inventory reports detailing quantity
     on hand by product, unit cost, extended value, by location. Reports may
     also detail inventory aging to identify slow moving or excess inventory for
     disposition.

o    On a monthly basis, provide inventory reports to Netgear to support monthly
     forecast creation, master product planning, and standard cost setting
     processes.

                            CONFIDENTIAL INFORMATION

                                     Page 4
<PAGE>   24
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------

PRODUCT TESTING AND INSPECTION - Celestica shall manage the testing and
inspection of all products received from Netgear suppliers. Product testing will
be performed in conformance to Netgear specification. Product inspection will be
performed to standards and practices as contained in Celestica's quality control
procedures. Requirements are:

o    Perform required tests on all products received in conformance to Netgear
     approved process and specification.

o    Perform preventative maintenance on all test equipment as required.

o    Ensure test equipment calibration between Celestica equipment and supplier
     equipment per specification.

o    Ensure correct revisions of all test programs are used in the test process
     for all products.

o    Manage the formal release process through Celestica document control
     procedures for the release or change to test equipment and test programs.

o    Initiate required actions with suppliers when test equipment or test
     results indicate nonconformance to specification.

o    Maintain adequate authenticated documents on preventative maintenance and
     calibration of all test equipment.

o    Celestica shall not place into service and test equipment or program until
     written approval of the test equipment or program has been received from
     Netgear.

o    Maintain and submit to Netgear on a monthly basis the list of all test
     equipment, detailing Netgear owned or Celestica owned, with adequate
     description of equipment.

o    For all Netgear owned equipment, Celestica will ensure such equipment is
     properly identified per Netgear fixed asset requirements.

o    Celestica shall maintain adequate authenticated inspection procedures
     covering but not limited to the following processes:

-    Documented inspection procedures

-    Sampling plans

-    Use of defect codes

-    Workmanship standards

-    Cosmetic standards

-    International standards

-    First article approvals

-    Ship-to-Stock program

-    Training and certification of inspection personnel

o    Provide product functional test and inspection yields and pareto of defects
     report to Netgear on a monthly basis.

o    Maintain adequate authenticated inspection and test documents.

                            CONFIDENTIAL INFORMATION

                                     Page 5
<PAGE>   25
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------

PRODUCT FULFILLMENT AND LOGISTICS - Fulfillment is defined as the process of
assembling, picking, packaging, inspecting, and shipping Netgear products to
Netgear customers. Logistics is defined as the management of inbound and
outbound transportation, customs, material classifications in compliance with
international import and export regulations, and compliance to export controls.
Requirements are:

o    Ship the same day on Netgear customer orders received by Noon.

o    Order consolidation process (multiple orders, same destination)

o    Provide partial shipments of orders, as needed.

o    Pick, pack, and ship orders to Netgear customers in less than case pack
     quantities if required.

o    Ensure all shipments are audited for accuracy prior to delivery to
     transportation providers. Shipment audits must be performed by authorized
     Quality Control personnel.

o    Follow customer routing for all outbound customer shipments. Ship using
     customer's shipping account numbers.

o    Manage carrier dispatching, airline flight or ocean booking activity.

o    Handle international customs documentation, including the preparation of
     Shipper's Letter of Instructions, Cargo Receipts, Bills of Lading,
     Commercial Invoices, Certificates of Origin, etc. as required by the
     customs agencies of the origin and destination countries.

o    Handle all documentation as required for shipments tendered on Letter of
     Credit, Sight Draft, etc.

o    In support of resolution of delivery disputes between Netgear and Netgear
     customers, investigate disputed claims and provide proof of delivery
     documentation or other information to Netgear as required to resolve such
     disputes.

o    Provide documentation to Netgear in support of all shipments on a daily
     basis. Maintain shipment activity logs and all source documentation
     required by internal or external auditors in compliance with proper revenue
     recognition requirements.

o    Prepare and submit to Netgear Shipment accuracy reports on a monthly basis.

o    Prepare and submit to Netgear On Time Shipment reports on a monthly basis.

o    Prepare and submit to Netgear Order Fulfillment Lead-time reports on a
     monthly basis.

o    Traffic and Customs expertise for cost control, import and export
     compliance (record retention, ECCN, H.T.S.U.S. classification, etc.)

o    Manage mode selection (Airfreight or Seafreight) and enforce Netgear
     routing instructions.

o    Demonstrate proper control of all negotiable documents required for inbound
     customs clearance.

o    Negotiate freight costs with transportation providers as required.

o    Perform Landed Cost Analysis for use in determining accurate product unit
     price adjustments in support of changes in terms of sale with Suppliers.

                            CONFIDENTIAL INFORMATION

                                     Page 6
<PAGE>   26
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------

RETURNS PROCESSING - Returns processing is defined as the management of the
receipt, verification, inspection, testing, disposition, re-packaging, and
reporting of product returns from Netgear customers. Netgear issues two basic
types of authorizations to it's customers: Warranty return authorizations for
defective products and Stock Rotation returns for unsold slow moving products
from customer inventory. Celestica will maintain proper separation of warranty
and stock rotation products throughout the following functions:

o    Physically receive shipments of returned products from Netgear customers.

o    Verify returned products are received in good physical condition, noting
     any and all shipping damage on commercial documents (cargo receipts, bills
     of lading, delivery receipts, etc.) prior to signing delivery documents.

o    Upon acceptance, verify valid return material authorization (RMA) exists
     for returned products.

o    Report any unauthorized returns to Netgear on date of receipt.

o    Verify returned goods received match product and quantity authorized on
     Netgear return material authorization.

o    Verify

o    Report any discrepancy between product and quantity received and product
     and quantity authorized on date of receipt.

o    Complete Netgear Returned Material Receipt Report (RMRR) and fax to Netgear
     on date of receipt.

o    Prepare and submit to Netgear a daily return material receipts report,
     detailing the customer name, RMA number, product and quantity, and value on
     the date of receipt. If no receipt activity occurs on any given day, the
     return receipts report will still be sent, noting "No Receipts".

o    In support of resolution of delivery disputes on returned products between
     Netgear and Netgear customers, investigate disputed claims and provide
     proof of delivery documentation or other information to Netgear as required
     to resolve such disputes.

o    Perform incoming inspection on all returned products per agreed processes.

o    Perform functional test on all warranty defective product returns.

o    Provide returned product functional test and inspection yields and pareto
     of defects report to Netgear on a monthly basis.

o    Maintain separate inventory locations for product receipt, work in process
     test, inspection or test failure products, inspection or test accepted
     products, and refurbished products per agreed process.

o    Establish procedures to ensure inventory transactions performed within or
     between established returned product inventory locations by Celestica
     personnel in Netgear's SunSystems reflect actual material or product
     movements. Ensure source documents are used to perform inventory
     transactions. Examples of such source documentation are inventory transfer
     documents, inventory issue documents, inventory receipt documents, material
     travelers, inventory receipt documents, inventory shipment documents,
     delivery receipts, cargo receipts, bills of lading, etc., in support of
     inventory transactions performed on Netgear's SunSystems database. Maintain
     records of all source documents used for inventory transactions in a manner
     that facilitates internal or external audit requirements.

o    Arrange for timely disposition and return to original manufacturer all
     inspection or test failure products which are still under manufacturer's
     warranty.

o    Refurbish products per agreed process as directed by Netgear.

                            CONFIDENTIAL INFORMATION

                                     Page 7
<PAGE>   27
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------

SUPPLIER PERFORMANCE MANAGEMENT-- Celestica will provide dedicated management
personnel to Netgear in support of the Supplier Performance Management
requirements below.

LOGISTICS

o    Ensure Suppliers provide Advice of Shipment notifications on date of
     shipment to Celestica and Netgear personnel for all supplier shipments of
     product and materials.

o    Measure and report monthly on number of shipments advised Vs. number of
     shipments.

o    Ensure Suppliers provide forwarding information and adequately authentic
     documentation that will meet import/export customs requirements, ensure
     smooth customs clearances, and assure proper accounts payable aging.

o    Measure and report monthly on number of conforming shipments Vs. number of
     shipments.

o    Resolve any issues with Suppliers that delay or could potentially delay the
     receipt of Netgear products into Celestica's Distribution Centers.

o    Monitor and report on each Supplier's ability to manage shipment scheduling
     to meet expected levels of service and transit times. Initiate corrective
     actions as required with suppliers to ensure predictable levels of service
     for all transportation modes.

o    Ensure Suppliers conform to good practice in consolidating shipments to
     minimize cost.

DELIVERY

o    Engage in daily communications with suppliers if necessary to manage on
     time delivery of products or items ordered. Expedite or reschedule orders
     as required to satisfy fluctuations in demand for Netgear products and to
     achieve inventory plans.

o    Measure and report monthly the on time delivery performance of suppliers.

o    Measure and report monthly the actual lead-time performance of suppliers.

o    Measure and report monthly the accuracy of Suppliers commitments (Actual
     Vs. Advised)

o    Report monthly purchase order receipts by supplier by product.

QUALITY

o    Measure and report monthly Incoming Defects per Million by Product

o    Measure and report monthly Incoming Defects per Million by Supplier

o    Measure and report monthly Pareto of Defects by Product by Supplier

o    Measure and report monthly Supplier Corrective Actions issued.

o    Measure and report monthly Supplier Corrective Action Aging Report

o    Measure and report monthly Supplier Ship-to-Stock Status by product.

o    Measure and report monthly Cost of Quality by Supplier.

                            CONFIDENTIAL INFORMATION

                                     Page 8
<PAGE>   28
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------

SUPPLIER PRODUCT QUALITY PROGRAM AND MANAGEMENT - Celestica agrees to adopt the
product quality assurance requirements, perform quality control tests, and
provide the quality control functions described below. Celestica will provide
dedicated Quality management personnel to Netgear in support of the quality
assurance program requirements. When deemed appropriate and by mutual consent,
additional resources can be drawn upon from Celestica's Corporate Quality
Organization in support of Netgear business needs on a worldwide basis.
Celestica's Product Quality Management Program will use adequately authenticated
methods to mange Product Quality Assurance, Document Control, and Supplier
Quality Engineering efforts. Celestica's Product Quality Management Program will
encompass, but not be limited to, the attributes of the Product Quality Program
Requirements as follows.

PRODUCT QUALITY ASSURANCE

O    QUALITY PLANNING

-    Internal Procedure

-    Workmanship Standards

-    Customer Requirements

-    International Standards

-    First Article Approval

-    Process Release

-    New Product Introduction / Process Verification Test Approval

-    Quality Stamp/Lot Label Control

-    Quality Training Program

o    CUSTOMER QUALITY IMPROVEMENT

-    Customer Interface

-    Closed Loop Corrective Action (CLCA) Feedback: Problem Discovery / Root
     Cause Investigation / Determine Corrective Action / Implement Corrective
     Action / Verify Effectiveness of Corrective Action / Closure Requirements /
     Management Reporting

-    Material Review Board

-    Statistical Process Control

-    Cost of Quality Metrics and Reporting

-    Material Traceability

o    AUDIT AND DATA ANALYSIS

-    ISO System Audit

-    Process Audit

-    Product Audit

-    Material Audit

-    ESD Audit

-    Data Analysis and Reporting

DOCUMENT CONTROL

o    Document Center

o    Document Transfer procedures

o    Specification Library

o    ECO Management

o    Quality Manual

                            CONFIDENTIAL INFORMATION

                                     Page 9
<PAGE>   29
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

STATEMENT OF WORK BETWEEN CELESTICA AND NETGEAR, INC.
--------------------------------------------------------------------------------

SUPPLIER QUALITY ENGINEERING

o    Supplier Engineering - Supplier Survey

-    Supplier Qualification / Disqualification

-    Supplier Audits

-    New Product Readiness

-    Component Approval

-    Approved Vendor List (AVL) Management

-    AVL Change Approval

-    Supplier Rating

-    Supplier Performance Management and Reporting

-    Supplier Closed Loop Corrective Action Process

-    Suppler Certification Process and Criteria

o    INCOMING QUALITY CONTROL

-    Inspection Procedures

-    Qualified Personnel

-    First Article Approval

-    Tooling Approval: Conditional, first shots, texturing.

-    Functional Test Process

-    Test Equipment and Test Programs Qualification, Calibration, Preventative
     Maintenance

-    Equipment Lock-Out Controls

-    Mechanical, Cosmetic, and Workmanship Standards

-    Source Inspections

-    Statistical AQL Sampling Plans

-    Use of Defect Codes

-    Ship-to-Stock Qualification, Measurement, and Reporting

o    SUPPLIER PERFORMANCE REPORTING

-    Incoming Defects per Million (DPM) by product, by supplier

-    Pareto of Defects

-    On Time Delivery

-    Supplier Corrective Action Status Report: Quantity of Corrective Actions
     issued, status of open actions, age of corrective actions, duration until
     closure.

-    Cost of Quality by Supplier.

-    Warranty return rate by supplier, by product.

-    Returned product Defects per Million by Supplier, by product.

-    Returned product Dead On Arrival (DOA) rate, by supplier, by product.

-    Returned product pareto of defects by supplier, by product.

                            CONFIDENTIAL INFORMATION

                                     Page 10
<PAGE>   30

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

                          EXHIBIT 2: LIST OF PRODUCTS

<TABLE>
<CAPTION>
PRODUCT                       PRODUCT DESCRIPTION
-------                       -------------------
<S>                           <C>
DB104AU                       DUAL SPEED STARTER KIT
DB104CC                       DUAL SPEED STARTER KIT
DB104FR                       DUAL SPEED STARTER KIT
DBI04GE                       DUAL SPEED STARTER KIT
DBI04GR                       DUAL SPEED STARTER KIT
DBI04JP                       DUAL SPEED STARTER KIT
DBI04NA                       DUAL SPEED STARTER KIT
DB104UK                       DUAL SPEED STARTER KIT
DS104AU                       4 PORT DUAL SPEED 10/100 HUB
DS104FR                       4 PORT DUAL SPEED 10/100 HUB
DS104GE                       4 PORT DUAL SPEED 10/100 HUB
DS104GR                       4 PORT DUAL SPEED 10/100 HUB
DS104JP                       4 PORT DUAL SPEED 10/100 HUB
DS104NA                       4 PORT DUAL SPEED 10/100 HUB
DS104UK                       4 PORT DUAL SPEED 10/100 HUB
DS106AU                       6 PORT SLIM DUAL SPEED HUB
DS106FR                       6 PORT SLIM DUAL SPEED HUB
DS106GE                       6 PORT SLIM DUAL SPEED HUB
DS106GR                       6 PORT SLIM DUAL SPEED HUB
DS106JP                       6 PORT SLIM DUAL SPEED HUB
DS106NA                       6 PORT SLIM DUAL SPEED HUB
DS106UK                       6 PORT SLIM DUAL SPEED HUB
DS108AU                       8 PT SLIM 10/100 HUB AU MOQ 12
DS108FR                       8PT SLIM 10/100 HUB EU MOQ 12
DS108GE                       8PT SLIM 10/100 HUB EU MOQ 12
DS108GR                       8PT SLIM 10/100 HUB EU MOQ 12
DS108JP                       8PT SLIM 10/100 HUB JP MOQ 12
DS108NA                       8PT SLIM 10/100 HUB NA MOQ 12
DS108UK                       8 PT SLIM 10/100 HUB UK MOQ 12
DS116AU                       16 PORT SLIM DUAL SPEED HUB
DS116FR                       16 PORT SLIM DUAL SPEED HUB
DS116GE                       16 PORT SLIM DUAL SPEED HUB
DS116GR                       16 PORT SLIM DUAL SPEED HUB
DS116JP                       16 PORT SLIM DUAL SPEED HUB
DS116NA                       16 PORT SLIM DUAL SPEED HUB
DS116UK                       16 PORT SLIM DUAL SPEED HUB
DS309AU                       9PT DUAL SPEED HUB W/UPLINK
DS309FR                       9PT DUAL SPEED HUB W/UPLINK
DS309GE                       9PT DUAL SPEED HUB W/UPLINK
DS309GR                       9PT DUAL SPEED HUB W/UPLINK
DS309JP                       9PT DUAL SPEED HUB W/UPLINK
DS309NA                       9PT DUAL SPEED HUB W/UPLINK
DS309UK                       9PT DUAL SPEED HUB W/UPLINK
DS508AU                       8 PT D-SPD STACK HUB MOQ 6
DS508GE                       8PT D-SPD STACK HUB MOQ 6
DS508JP                       8PT D-SPD STACK HUB MOQ 6
DS508NA                       8PT D-SPD STACK HUB MOQ 6
DS508UK                       8 PT D-SPD STACK HUB MOQ 6
DS516AU                       16 PT D-SPD STACK HUB MOQ 6
DS516GE                       16 PT D-SPD STACK HUB MOQ 6
DS516JP                       16 PT D-SPD STACK HUB MOQ 6
DS516NA                       16 PT D-SPD STACK HUB MOQ 6
DS516UK                       16 PT D-SPD STACK HUB MOQ 6
DS524AU                       24 PT D-SPD STACK HUB MOQ 6
DS524GE                       24 PT D-SPD STACK HUB MOQ 6
DS524JP                       24 PT D-SPD STACK HUB MOQ 6
DS524NA                       24 PT D-SPD STACK HUB MOQ 6
DS524UK                       24 PT D-SPD STACK HUB MOQ 6
EA101C                        USB ETHERNET ADAPTER
EA20110                       10-PK 10MBPS ISA CARD MOQ 1
EA20150                       50-PACK 10MBPS ISA CARD
EA201C                        10 MBPS ISA CARD MOQ 40
EA201CFR                      10 MBPS ISA CARD MOQ 40
EA201CGR                      10 MBPS ISA CARD MOQ 40
EB104AU                       NETWORK STARTER KIT ISA
EB104FR                       NETWORK STARTER KIT ISA
EB104GE                       NETWORK STARTER KIT ISA
</TABLE>

                                  Page 1 of 5
<PAGE>   31
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 2: LIST OF PRODUCTS

<TABLE>
<CAPTION>
PRODUCT                       PRODUCT DESCRIPTION
-------                       -------------------
<S>                           <C>
EB104NA                       NETWORK STARTER KIT ISA
EB104UK                       NETWORK STARTER KIT ISA
EN104AU                       4 PT 10BASE-T HUB AU MOQ 10
EN104GE                       4 PT 10BASE-T HUB EU MOQ 10
EN104JP                       4 PT 10BASE-T HUB JP MOQ 10
EN104NA                       4 PT 10BASE-T HUB NA MOQ 10
EN104TPAU                     4 PT 10BASE-T HUB AU MOQ 10
EN104TPGE                     4 PT 10BASE-T HUB EU MOQ 10
EN104TPGR                     4 PT 10BASE-T HUB GERMAN
EN104TPJP                     4 PT 10BASE-T HUB JP MOQ 10
EN104TPNA                     4 PT 10BASE-T HUB NA MOQ 10
EN104TPUK                     4 PT 108ASE-T HUB UK MOQ 10
EN104UK                       4 PT 10BASE-T HUB UK MOQ 10
EN106TPAU                     6 PT 10BASE-T HUB AU MOQ 12
EN106TPGE                     6 PT 10BASE-T HUB EU MOQ 12
EN106TPJP                     6 PT 10BASE-T HUB JP MOQ 12
EN106TPNA                     6 PT 10BASE-T HUB NA MOQ 12
EN106TPUK                     6 PT 108ASE-T HUB UK MOQ 12
EN108AU                       8PT 10B-T HUB AUI BNC MOQ 10
EN108GE                       8PT 10B-T HUB AUI BNC MOQ 10
EN108JP                       8PT 10B-T HUB AUI BNC MOQ 10
EN108NA                       8PT 10B-T HUB NA MOQ 10
EN108TPAU                     8 PT 10BASE-T HUB AU MOQ 10
EN108TPGE                     8 PT 10BASE-T HUB EU MOQ 10
EN108TPJP                     8 PT 10BASE-T HUB JP MOQ 10
EN108TPNA                     8 PT 10BASE-T HUB NA MOQ 10
EN108TPUK                     8 PT 10BASE-T HUB UK MOQ 10
EN108UK                       8 PT 10BASE-T HUB UK MOQ 10
EN116AU                       16PT 10BASE-T HUB AU MOQ 10
EN116GE                       16PT 10BASE-T HUB EU MOQ 10
EN116JP                       16 PT 10BASE-T HUB JP MOQ 10
EN116NA                       16PT 10BASE-T HUB NA MOQ 10
EN116UK                       16 PT 10BASE-T HUB UK MOQ 10
EN308AU                       8PT 10BASE-T HUB AUS MOQ 10
EN308GE                       8 PT 10BASE-T HUB EU MOQ 10
EN308JP                       8 PT 10BASE-T HUB JP MOQ 10
EN308NA                       8PT 10BASE-T HUB NA MOQ 10
EN308TCAU                     8PT 10BASE-T HUB
EN308TCFR                     8PT 10BASE-T HUB
EN308TCGE                     8PT 10BASE-T HUB
EN308TCGR                     8PT 10BASE-T HUB
EN308TCJP                     8PT 10BASE-T HUB
EN308TCNA                     8PT 10BASE-T HUB
EN308TCUK                     8PT 10BASE-T HUB
EN308UK                       8 PT 10BASE-T HUB UK MOQ 10
EN516AU                       16 PT 10BASE-T HUB AU MOQ 5
EN516GE                       16 PT 10BASE-T HUB EU MOQ 5
EN516JP                       16 PT 10BASE-T HUB JP MOQ 5
EN516NA                       16 PT 10BASE-T HUB NA MOQ 5
EN516UK                       16 PT 10BASE-T HUB UK MOQ 5
EN524AU                       24 PT 10BASE-T HUB AU MOQ 6
EN524GE                       24PT 10BASE-T HUB EU MOQ 6
EN524JP                       24 PT 10BASE-T HUB JP MOQ 6
EN524NA                       24 PT 10BASE-T HUB NA MOQ 6
EN524UK                       24 PT 10BASE-T HUB UK MOQ 6
FA31010                       10-PK 10/100 PCI ADPTR MOQ 1
FA31050                       50-PK 10/100 PCI ADPTR MOQ 1
FA310CFR                      10/100 PCI ADPTR&CBL-FRENCH
FA310CGR                      10/100 PCI ADPTR&CBL-GERMAN
FA310JP                       10/100 PCI ADAPTER MOQ 40
FA310TX                       10/100 PCI ADAPTER MOQ 40
FA310TXC                      10/100 PCI ADPTR&CBL MOQ 40
FA310TXGR                     10/100 PCI ADAPTER GERMAN
FA410C                        10/100 PCMCIA CARD MOQ 40
FA410CFR                      10/100 PCMCIA CARD MOQ 40
FA410CJP                      10/100 PCMCIA CARD MOQ 40
FA510C                        10/100 CARDBUS ADAPTER
</TABLE>

                                  Page 2 of 5

<PAGE>   32
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 2: LIST OF PRODUCTS

<TABLE>
<CAPTION>
PRODUCT                       PRODUCT DESCRIPTION
-------                       -------------------
<S>                           <C>
FB104AU                       4 PORT FE-NET STARTER KIT AU
FB104FR                       4 PT FE STARTER KIT FRENCH
FB104GE                       4 PORT FE-NET STARTER KIT GE
FB104NA                       4 PORT FE-NET STARTER KIT NA
FB104NA-6                     SIX PACK FE-NET STARTER KIT
FB104UK                       4 PORT FE-NET STARTER KIT UK
FB108AU                       8 PORT FE-NET STARTER KIT AU
FB108GE                       8 PORT FE-NET STARTER KIT GE
FB108NA                       8 PORT FE-NET STARTER KIT NA
FB108UK                       8 PORT FE-NET STARTER KIT UK
FE104AU                       4 PT FAST E-NET HUB AU MOQ 8
FE104GE                       4 PT FAST E-NET HUB EU MOQ 8
FE104JP                       4 PT FAST E-NET HUB JP MOQ 8
FE104NA                       4 PT FAST E-NET HUB NA MOQ 8
FE104UK                       4 PT FAST E-NET HUB UK MOQ 8
FE108AU                       8 PT FAST E-NET HUB AU MOQ 8
FE108GE                       8 PT FAST E-NET HUB EU MOQ 8
FE108JP                       8 PT FAST E-NET HUB JP MOQ 8
FE108NA                       8 PT FAST E-NET HUB NA MOQ 8
FE108UK                       8 PT FAST E-NET HUB UK MOQ 8
FE116AU                       16 PT 100BASE-TX FE HUB
FE116GE                       16 PT 100BASE-TX FE HUB
FE116JP                       16 PT 100BASE-TX FE HUB
FE116NA                       16 PT 100BASE-TX FE HUB
FE116UK                       16 PT 100BASE-TX FE HUB
FE508AU                       8PT FE STACK HUB AU MOQ 5
FE508DIS                      DISPLAY MODEL FE508
FE508GE                       8PT FE STACK HUB EU MOQ 5
FE508JP                       8PT FE STACK HUB JP MOQ 5
FE508NA                       8PT FE STACK HUB NA MOQ 5
FE508UK                       8PT FE STACK HUB UK MOQ 5
FE516AU                       16PT FE STACK HUB AU MOQ 5
FE516DIS                      DISPLAY MODEL FE516
FE516GE                       16PT FE STACK HUB EU MOQ 5
FE516JP                       16PT FE STACK HUB JP MOQ 5
FE516NA                       16PT FE STACK HUB NA MOQ 5
FE516UK                       16PT FE STACK HUB UK MOQ 5
FS102AU                       2 PT FAST E-NET SW AU MOQ 10
FS102GE                       2 PT FAST E-NET SW EU MOQ 10
FS102JP                       2 PT FAST E-NET SW JP MOQ 10
FS102NA                       2 PT FAST E-NET SW NA MOQ 10
FS102UK                       2 PT FAST E-NET SW UK MOQ 10
FS104AU                       4 PT FAST E-NET SW AU MOQ 10
FS104GE                       4 PT FAST E-NET SW EU MOQ 10
FS104JP                       4 PT FAST E-NET SW JP MOQ 10
FS104NA                       4 PT FAST E-NET SW NA MOQ 10
FS104UK                       4 PT FAST E-NET SW UK MOQ 10
FS105AU                       5 PT FAST E-NET SWITCH AU
FS105GE                       5 PT FAST E-NET SWITCH GE
FS105JP                       5 PT FAST E-NET SWITCH JP
FS105NA                       5 PT FAST E-NET SWITCH NA
FS105UK                       5 PT FAST E-NET SWITCH UK
FS108AU                       8 PORT 10/100 SWITCH,EXT PWR
FS108GE                       8 PORT 10/100 SWITCH,EXT PWR
FS108JP                       8 PORT 10/100 SWITCH,EXT PWR
FS108NA                       8 PORT 10/100 SWITCH,EXT PWR
FS108UK                       8 PORT 10/100 SWITCH,EXT PWR
FS308AU                       8 PORT 10/100 SWITCH,INT PWR
FS308GE                       8 PORT 10/100 SWITCH,INT PWR
FS308JP                       8 PORT 10/100 SWITCH,INT PWR
FS308NA                       8 PORT 10/100 SWITCH,INT PWR
FS308UK                       8 PORT 10/100 SWITCH,INT PWR
FS508AU                       8 PT FAST E-NET SWH AU MOQ 5
FS508GE                       8 PT FAST E-NET SW EU MOQ 5
FS508JP                       8 PT FAST E-NET SW JP MOQ 5
FS508NA                       8 PT FAST E-NET SW NA MOQ 5
FS508UK                       8 PT FAST E-NET SW UK MOQ 5
</TABLE>

                                  Page 3 of 5

<PAGE>   33
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 2: LIST OF PRODUCTS

<TABLE>
<CAPTION>
PRODUCT                       PRODUCT DESCRIPTION
-------                       -------------------
<S>                           <C>
FS509AU                       9 PORT SWITCH W/GBIT UPLINK
FS509GE                       9 PORT SWITCH W/GBIT UPLINK
FS509JP                       9 PORT SWITCH W/GBIT UPLINK
FS509NA                       9 PORT SWITCH W/GBIT UPLINK
FS509UK                       9 PORT SWITCH W/GBIT UPLINK
FS516AU                       16 PT FAST E-NET SW AU MOQ 6
FS516GE                       16 PT FAST E-NET SW EU MOQ 6
FS516JP                       16 PT FAST E-NET SW JP MOQ 6
FS516NA                       16 PT FAST E-NET SW NA MOQ 6
FS516UK                       16 PT FAST ENET SW UK MOQ 6
FS518AU                       18PT FAST E-NET SW NA MOQ 5
FS518GE                       18PT FAST E-NET SW NA MOQ 5
FS518JP                       18PT FAST E-NET SW NA MOQ 5
FS518NA                       18PT FAST E-NET SW NA MOQ 5
FS518UK                       18PT FAST E-NET SW NA MOQ 5
FS524AU                       24 PT FAST E-NET SW AU MOQ 6
FS524GE                       24 PT FAST E-NET SW AU MOQ 6
FS524JP                       24 PT FAST E-NET SW AU MOQ 6
FS524NA                       24 PT FAST E-NET SW AU MOQ 6
FS524UK                       24 PT FAST E-NET SW AU MOQ 6
FS562AU                       8 PORT FIBER SWITCH
FS562GE                       8 PORT FIBER SWITCH
FS562JP                       8 PORT FIBER SWITCH
FS562NA                       8 PORT FIBER SWITCH
FS562UK                       8 PORT FIBER SWITCH
FS566AU                       12 PORT FIBER SWITCH
FS566GE                       12 PORT FIBER SWITCH
FS566JP                       12 PORT FIBER SWITCH
FS566NA                       12 PORT FIBER SWITCH
FS566UK                       12 PORT FIBER SWITCH
GA620                         1GBPS PCI FIBER CARD
GA620JP                       1GBPS PCI FIBER CARD
GS504AU                       GIGABIT FIBERSWT 4PT
GS504GE                       GIGABIT FIBERSWT 4PT
GS504JP                       GIGABIT FIBERSWT 4PT
GS504NA                       GIGABIT FIBERSWT 4PT
GS504UK                       GIGABIT FIBERSWT 4PT
LCP100                        CABLE MODEM
ND508AU                       NETWORK DISK DRIVE 8GB
ND508GE                       NETWORK DISK DRIVE 8GB
ND508NA                       NETWORK DISK DRIVE SGB
ND508UK                       NETWORK DISK DRIVE 8GB
ND520AU                       NETWORK DISK DRIVE 20GB
ND520GE                       NETWORK DISK DRIVE 20GB
ND520NA                       NETWORK DISK DRIVE 20GB
ND520UK                       NETWORK DISK DRIVE 20GB
PA101                         10M USB PHONELINE ADAPTER
PA301                         10M PCI PHONELINE ADAPTER
PE102NA                       PHONELINE ETHERNET BRIDGE
PR356NA                       56K ANALOG PHONELINE ROUTER
PS104AU                       PRINT SERVER WITH 4 PT HUB
PS104GE                       PRINT SERVER WITH 4 PT HUB
PS104JP                       PRINT SERVER WITH 4 PT HUB
PS104NA                       PRINT SERVER WITH 4 PT HUB
PS104UK                       PRINT SERVER WITH 4 PT HUB
PS105AU                       PRINT SERVER WITH 5 PT HUB
PS105FR                       PRINT SERVER WITH 5 PT HUB
PS105GE                       PRINT SERVER WITH 5 PT HUB
PS105GR                       PRINT SERVER WITH 5 PT HUB
PS105JP                       PRINT SERVER WITH 5 PT HUB
PS105NA                       PRINT SERVER WITH 5 PT HUB
PS105UK                       PRINT SERVER WITH 5 PT HUB
PS110AU                       10/100 MBPS PRINT SERVER
PS110FR                       10/100 MBPS PRINT SERVER
PS110GE                       10/100 MBPS PRINT SERVER
PS110GR                       10/100 MBPS PRINT SERVER
PS110JP                       10/100 MBPS PRINT SERVER

</TABLE>

                                  Page 4 of 5

<PAGE>   34
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 2: LIST OF PRODUCTS

<TABLE>
<CAPTION>
PRODUCT                       PRODUCT DESCRIPTION
-------                       -------------------
<S>                           <C>
PS111NA                       10/100 MBPS PRINT SERVER
PS111UK                       10/100 MBPS PRINT SERVER
RH340NA                       ROUTER HUB
RH348GE                       ROUTER HUB
RH348JP                       ROUTER HUB
RH348NA                       ROUTER HUB
RH348UK                       ROUTER HUB
RM356AU                       56K MODEM/ROUTER W/4PT HUB
RM356GE                       56K MODEM/ROUTER W/4PT HUB
RM356JP                       56K MODEM/ROUTER W/4PT HUB
RM356NA                       56K MODEM/ROUTER W/4PT HUB
RM356UK                       56K MODEM/ROUTER W/4PT HUB
RT210AU                       ISDN ROUTER AU MOQ 1
RT210GE                       ISDN ROUTER EUROPE MOQ 1
RT210JP                       ISDN ROUTER JP MOQ 1
RT210UK                       ISDN ROUTER UK MOQ 1
RT311NA                       ETHERNET ROUTER NA
RT328AU                       ISDN ROUTER AU MOQ 5
RT328GE                       ISDN ROUTER EUROPE MOQ 5
RT328KO                       ISDN ROUTER KOREA MOQ 5
RT328NA                       ISDN ROUTER NA MOQ 5
RT328UK                       ISDN ROUTER UK MOQ 5
RT338NA                       ISDN 10/100 ROUTER NA
SB104                         PARTIAL SB104 W/HUB ONLY
SB104AU                       NTWRK STARTER KIT AU MOQ 5
SB104FR                       NTWRK STARTER KIT FRENCH
SBI04GE                       NTWRK STARTER KIT EU MOQ 5
SB104GR                       NTWRK STARTER KIT GERMAN
SB104NA                       NTWRK STARTER KIT NA MOQ 5
SB104NAR                      PARTIAL SB104 W/2 NIC CARDS
SB104UK                       NTWRK STARTER KIT UK MOQ 5
SW108AU                       8PT 10B-T E-NET SW AU MOQ 10
SW108GE                       8PT 10B-T E-NET SW EU MOQ 10
SW108JP                       8PT 10B-T E-NET SW JP MOQ 10
SW108NA                       8PT 10B-T E-NET SW NA MOQ 10
SW108UK                       8PT 10B-T E-NET SW UK MOQ 10
SW502AU                       2PT 10/100 E-NET SW AU MOQ 5
SW502GE                       2PT 10/100 E-NET SW EU MOQ 5
SW502JP                       2PT 10/100 E-NET SW JP MOQ 5
SW502NA                       2PT 10/100 E-NET SW NA MOQ 5
SW502NAD                      DEMO 2PT 10/100 E-NET SW NA
SW502UK                       2PT 10/100 E-NET SW UK MOQ 5
SW507AU                       7PT 10/100 E-NET SW AU MOQ 5
SW507GE                       7PT 10/100 E-NET SW EU MOQ 5
SW507JP                       7PT 10/100 E-NET SW JP MOQ 5
SW507NA                       7PT 10/100 E-NET SW NA MOQ 5
SW507NAD                      DEMO 7PT 10/100MBPS ENET SW
SW507UK                       7PT 10/100 E-NET SW UK MOQ 5
SW510AU                       10PT 10/100 E-NET SW AU MOQ 5
SW510GE                       10PT 10/100 E-NET SW EU MOQ 5
SW510JP                       10PT 10/100 E-NET SW JP MOQ 5

SW510NA                       10PT 10/100 E-NET SW NA MOQ 5
SW510NAD                      DEMO 10PT 10/100 E-NET SW
SW510UK                       10PT 10/100 E-NET SW UK MOQ 5
SW518AU                       18PT 10/100 E-NET SW AU MOQ 5
SW518GE                       18PT 10/100 E-NET SW EU MOQ 5
SW518JP                       18JP 10/100 E-NET SW JP MOQ 5
SW518NA                       18PT 10/100 E-NET SW NA MOQ 5
SW518UK                       18PT 10/100 E-NET SW UK MOQ 5
XM128GE                       ISDN DIGITAL MODEM EU MOQ 5
XM128JP                       ISDN DIGITAL MODEM AUSTRALIA
XM128KO                       ISDN DIGITAL MODEM KO MOQ 5
XM128NA                       ISDN DIGITAL MODEM NA MOQ 5
XM128SE                       ISDN DIGITAL MODEM SE MOQ 5
XM128UK                       ISDN DIGITAL MODEM UK MOQ 5
</TABLE>

                                  Page 5 of 5
<PAGE>   35
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.
                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                  Page 1 of 13

<PAGE>   36
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.
                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                  Page 2 of 13
<PAGE>   37
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                  Page 3 of 13
<PAGE>   38
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                  Page 4 of 13

<PAGE>   39
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                  Page 5 of 13

<PAGE>   40
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                  Page 6 of 13
<PAGE>   41
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                  Page 7 of 13
<PAGE>   42
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                  Page 8 of 13
<PAGE>   43
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                  Page 9 of 13
<PAGE>   44
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                 Page 10 of 13

<PAGE>   45

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

                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                 Page 11 of 13
<PAGE>   46

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

                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                 Page 12 of 13
<PAGE>   47
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                          EXHIBIT 3 PRODUCT PRICE LIST

                                      [*]

                                  Page 13 Of 13
<PAGE>   48
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                         EXHIBIT 4: BUILD PLAN EXAMPLE

<TABLE>
<CAPTION>
PRODUCT    MFR                     Cost     ASP        Sep      Oct        Nov       Dec       Jan       Feb       Mar       Apr
<S>       <C>       <C>            <C>      <C>     <C>       <C>       <C>       <C>       <C>       <C>       <C>       <C>
DB104                    ASP $                      156000    135200    135200    135200    135200    135200    135200    135200
DB104                    INV $     103      104     396005    261871    127737    117419    107101    107101    107101    107101
---------------------------------------------------------------------------------------------------------------------------------
DB104NA   DELTA        Beg Inv                        8278      3838      2538      1238      1138      1038      1038      1038
DB104NA   DELTA     Build Plan                       -2940         0         0      1200      1200      1300      1300      1300
DB104NA   DELTA         Demand                        1500      1300      1300      1300      1300      1300      1300      1300
DB104NA   DELTA        End Inv                        3838      2538      1238      1138      1038      1038      1038      1038
---------------------------------------------------------------------------------------------------------------------------------

DS104                    ASP $                      328500    328500    328500    328500    328500    328500    328500    328500
DS104                    INV $      70       73     784055    470405    156755    331005    331005    331005    331005    331005
---------------------------------------------------------------------------------------------------------------------------------
DS104NA   DELTA        Beg Inv                           9     11249      6749      2249      4749      4749      4749      4749
DS104NA   DELTA     Build Plan                       15740         0         0      7000      4500      4500      4500      4500
DS104NA   DELTA         Demand                        4500      4500      4500      4500      4500      4500      4500      4500
DS104NA   DELTA        End Inv                       11249      6749      2249      4749      4749      4749      4749      4749
---------------------------------------------------------------------------------------------------------------------------------

DS106                    ASP $                       93600     83200     83200     93600     93600     93600     93600     93600
DS106                    INV $      74      104     -46865     12271     71407     78799     86191     93583    100975    108367
---------------------------------------------------------------------------------------------------------------------------------
DS106NA   DELTA        Beg Inv                         105      -634       166       966      1066      1166      1266      1366
DS106NA   DELTA     Build Plan                         161      1600      1600      1000      1000      1000      1000      1000
DS106NA   DELTA         Demand                         900       800       800       900       900       900       900       900
DS106NA   DELTA        End Inv                        -634       166       966      1066      1166      1266      1366      1466
---------------------------------------------------------------------------------------------------------------------------------

DS108                    ASP $                      665000    665000    665000    598500    598500    598500    598500    598500
DS108                    INV $     101      133      -8651   -310421    192529    444004    444004    444004    444004    444004
---------------------------------------------------------------------------------------------------------------------------------
DS108NA   DELTA        Beg Inv                         279       -86     -3086      1914      4414      4414      4414      4414
DS108NA   DELTA     Build Plan                        4635      2000     10000      7000      4500      4500      4500      4500
DS108NA   DELTA         Demand                        5000      5000      5000      4500      4500      4500      4500      4500
DS108NA   DELTA        End Inv                         -86     -3086      1914      4414      4414      4414      4414      4414
---------------------------------------------------------------------------------------------------------------------------------

DS116                    ASP $                           0         0         0         0         0         0         0         0
DS116                    INV $     128        0     231228    179844    115614    115614    115614    115614    115614    115614
---------------------------------------------------------------------------------------------------------------------------------
DS116NA   DELTA        Beg Inv                         330      1800      1400       900       900       900       900       900
DS116NA   DELTA     Build Plan                        2270         0         0       500       500       500       500       500
DS116NA   DELTA         Demand                         800       400       500       500       500       500       500       500
DS116NA   DELTA        End Inv                        1800      1400       900       900       900       900       900       900
---------------------------------------------------------------------------------------------------------------------------------

DS309                    ASP $                       55500     64750     64750     74000     74000     74000     83250     83250
DS309                    INV $     122      185      69173     57016     75252     69173     63095     57016     44859     32702
---------------------------------------------------------------------------------------------------------------------------------
DS309NA   LITE-ON      Beg Inv                         869       569       469       619       569       519       469       369
DS309NA   LITE-ON   Build Plan                           0       250       500       350       350       350       350       350
DS309NA   LITE-ON       Demand                         300       350       350       400       400       400       450       450
DS309NA   LITE-ON      End Inv                         569       469       619       569       519       469       369       269
---------------------------------------------------------------------------------------------------------------------------------

DS508                    ASP $                       80150     91600     91600     91600     80150     80150     80150     68700
DS508                    INV $     161      229     -43868    -76006    -76006     52546     60580     60580     60580     60580
---------------------------------------------------------------------------------------------------------------------------------
DS508NA   DELTA        Beg Inv                           6      -273      -473      -473       327       377       377       377
DS508NA   DELTA     Build Plan                          71       200       400      1200       400       350       350       300
DS508NA   DELTA         Demand                         350       400       400       400       350       350       350       300
DS508NA   DELTA        End Inv                        -273      -473      -473       327       377       377       377       377
---------------------------------------------------------------------------------------------------------------------------------

DS516                    ASP $                      310500    310500    310500    310500    310500    310500    310500    310500
DS516                    INV $     223      345     377561    288461    310736    221636    221636    221636    221636    221636
---------------------------------------------------------------------------------------------------------------------------------
DS516NA   DELTA        Beg Inv                         929      1695      1295      1395       995       995       995       995
DS516NA   DELTA     Build Plan                        1666       500      1000       500       900       900       900       900
DS516NA   DELTA         Demand                         900       900       900       900       900       900       900       900
DS516NA   DELTA        End Inv                        1695      1295      1395       995       995       995       995       995
---------------------------------------------------------------------------------------------------------------------------------

DS524                    ASP $                      403000    403000    403000    403000    403000    403000    403000    403000
DS524                    INV $     284      403     336860    194845    194845    280054    280054    280054    280054    280054
---------------------------------------------------------------------------------------------------------------------------------
DS524NA   DELTA        Beg Inv                           4      1186       686       686       986       986       986       986
DS524NA   DELTA     Build Plan                        2182       500      1000      1300      1000      1000      1000      1000
DS524NA   DELTA         Demand                        1000      1000      1000      1000      1000      1000      1000      1000
DS524NA   DELTA        End Inv                        1186       686       686       986       986       986       986       986
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                  Page 1 of 9
<PAGE>   49
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                         EXHIBIT 4: BUILD PLAN EXAMPLE

<TABLE>
<CAPTION>
PRODUCT     MFR                      COST   ASP        Sep       Oct       Nov      Dec       Jan       Feb       Mar       Apr
<S>         <C>        <C>           <C>    <C>     <C>       <C>       <C>      <C>       <C>       <C>       <C>       <C>
EA101C                       ASP$                    70000     70000     70000    70000     70000     70000     70000     70000
EA101C                       INV$     25     35     151867    226057    176597   127137     77677     52947     52947     52947
-------------------------------------------------------------------------------------------------------------------------------
EA101C      LITE-ON       BEG INV                     6141      6141      9141     7141      5141      3141      2141      2141
EA101C      LITE-ON    BUILD PLAN                     2000      5000         0        0         0      1000      2000      2000
EA101C      LITE-ON        DEMAND                     2000      2000      2000     2000      2000      2000      2000      2000
EA101C      LITE-ON       END INV                     6141      9141      7141     5141      3141      2141      2141      2141
-------------------------------------------------------------------------------------------------------------------------------

EA201-10                     ASP$                    15360     12800     12800    12800     12800     12800     12800     12800
EA201-10                     INV$     65    128      57893     51344     44795    38246     31697     25148     18599     12050
-------------------------------------------------------------------------------------------------------------------------------
EA201-10    DLINK         BEG INV                      604       884       784      684       584       484       384       284
EA201-10    DLINK      BUILD PLAN                      400         0         0        0         0         0         0         0
EA201-10    DLINK          DEMAND                      120       100       100      100       100       100       100       100
EA201-10    DLINK         END INV                      884       784       684      584       484       384       284       184
-------------------------------------------------------------------------------------------------------------------------------

EA201C                       ASP$                    56000     56000     56000    56000     56000     56000     56000     56000
EA201C                       INV%      9     14      34034     16074     29544    38524     38524     38524     38524     38524
-------------------------------------------------------------------------------------------------------------------------------
EA201C      DLINK         BEG INV                     2290      3790      1790     3290      4290      4290      4290      4290
EA201C      DLINK      BUILD PLAN                     5500      2000      2000     5500      5000      4000      4000      4000
EA201C      DLINK          DEMAND                     4000      4000      4000     4000      4000      4000      4000      4000
EA201C      DLINK         END INV                     3790      1790      3290     4290      4290      4290      4290      4290
-------------------------------------------------------------------------------------------------------------------------------

EB104                        ASP$                    40500     13500     13500    13500     13500     13500     13500     13500
EB104                        INV$     38     45      19045      7618     -3809    11427     11427     11427     11427     11427
-------------------------------------------------------------------------------------------------------------------------------
EB104NA     DELTA         BEG INV                      900       500       200     -100       300       300       300       300
EB104NA     DELTA      BUILD PLAN                      500         0         0      700       300       300       300       300
EB104NA     DELTA          DEMAND                      900       300       300      300       300       300       300       300
EB104NA     DELTA         END INV                      500       200      -100      300       300       300       300       300
-------------------------------------------------------------------------------------------------------------------------------

EN104                        ASP$                    45600     49400     53200    57000     57000     57000     57000     57000
EN104                        INV$     26     38      54571     85315    113497    75067     36637     36637     36637     36637
-------------------------------------------------------------------------------------------------------------------------------
EB104NA     DELTA         BEG INV                      830      2130      3330     4430      2930      1430      1430      1430
EB104NA     DELTA      BUILD PLAN                     2500      2500      2500        0         0      1500      1500      1500
EB104NA     DELTA          DEMAND                     1200      1300      1400     1500      1500      1500      1500      1500
EB104NA     DELTA         END INV                     2130      3330      4430     2930      1430      1430      1430      1430
-------------------------------------------------------------------------------------------------------------------------------

EN104TP                      ASP$                   336000    252000    252000   252000    252000    252000    252000    252000
EN104TP                      INV$     20     28      78238     39158    -78082   136858    156398    175938    175938    175938
-------------------------------------------------------------------------------------------------------------------------------
EN104TPNA   DELTA         BEG INV                        4      4004      2004    -3996      7004      8004      9004      9004
EN104TPNA   DELTA      BUILD PLAN                    16000      7000      3000     2000     10000     10000      9000      9000
EN104TPNA   DELTA          DEMAND                    12000      9000      9000     9000      9000      9000      9000      9000
EN104TPNA   DELTA         END INV                     4004      2004     -3996     7004      8004      9004      9004      9004
-------------------------------------------------------------------------------------------------------------------------------

EN106TP                      ASP$                    40800     34000     34000    34000     34000     34000     34000     34000
EN106TP                      INV$     25     34      19761     32096     32096    24695     24695     24695     24695     24695
-------------------------------------------------------------------------------------------------------------------------------
EN106TPNA   DELTA         BEG INV                        1       801      1301     1301      1001      1001      1001      1001
EN106TPNA   DELTA      BUILD PLAN                     2000      1500      1000      700      1000      1000      1000      1000
EN106TPNA   DELTA          DEMAND                     1200      1000      1000     1000      1000      1000      1000      1000
EN106TPNA   DELTA         END INV                      801      1301      1301     1001      1001      1001      1001      1001
-------------------------------------------------------------------------------------------------------------------------------

EN108                        ASP$                    46800     46800     52000    52000     52000     52000     52000     52000
EN108                        INV$     39     52      16408     29985     39682    39682     39682     39682     39682     39682
-------------------------------------------------------------------------------------------------------------------------------
EN108NA     DELTA         BEG INV                      423       423       773     1023      1023      1023      1023      1023
EN108NA     DELTA      BUILD PLAN                      900      1250      1250     1000      1000      1000      1000      1000
EN108NA     DELTA          DEMAND                      900       900      1000     1000      1000      1000      1000      1000
EN108NA     DELTA         END INV                      423       773      1023     1023      1023      1023      1023      1023
-------------------------------------------------------------------------------------------------------------------------------

EN108TP                      ASP$                   220000    220000    220000   220000    220000    220000    220000    220000
EN108TP                      INV$     29     40     -29430    -73575    -58860   132435    132435    132435    132435    132435
-------------------------------------------------------------------------------------------------------------------------------
EN108TPNA   DELTA         BEG INV                     1000     -1000     -2500    -2000      4500      4500      4500      4500
EN108TPNA   DELTA      BUILD PLAN                     3500      4000      6000    12000      5500      5500      5500      5500
EN108TPNA   DELTA          DEMAND                     5500      5500      5500     5500      5500      5500      5500      5500
EN108TPNA   DELTA         END INV                    -1000     -2500     -2000     4500      4500      4500      4500      4500
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                  Page 2 of 9

<PAGE>   50
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                         EXHIBIT 4: BUILD PLAN EXAMPLE

<TABLE>
<CAPTION>
PRODUCT    MFR                     Cost ASP    Sep    Oct     Nov    Dec    Jan    Feb    Mar    Apr
<S>        <C>       <C>           <C>  <C>  <C>    <C>     <C>    <C>    <C>    <C>    <C>    <C>

EN116                     ASP $              51600  51600   51600  51600  51600  51600  51600  51600
EN116                     INV $    59   86   19223  84605   49007  37141  37141  37141  37141  37141
----------------------------------------------------------------------------------------------------
EN116NA    DELTA        BEG INV                924    324    1426    826    626    626    626    626
EN116NA    DELTA     BUILD PLAN                  0   1702       0    400    600    600    600    600
EN116NA    DELTA         DEMAND                600    600     600    600    600    600    600    600
EN116NA    DELTA        END INV                324   1426     826    626    626    626    626    626
----------------------------------------------------------------------------------------------------

EN308                     ASP $              52500  37500   37500      0      0      0      0      0
EN308                     INV $    50   75  -21481   4436  -20484 -20484 -20484 -20484 -20484 -20484
----------------------------------------------------------------------------------------------------
EN308NA    DLINK        BEG INV                269   -431      89   -411   -411   -411   -411   -411
EN308NA    DLINK     BUILD PLAN                  0   1020       0      0      0      0      0      0
EN308NA    DLINK         DEMAND                700    500     500      0      0      0      0      0
EN308NA    DLINK        END INV               -431     89    -411   -411   -411   -411   -411   -411
----------------------------------------------------------------------------------------------------

EN308TC                   ASP $              10350  17250   17250  34500  41400  55200  55200  55200
EN308TC                   INV $    44   69  122650 111552  100455  78260  51626  33870  33870  33870
----------------------------------------------------------------------------------------------------
EN308TCNA  DELTA        BEG INV               2913   2763    2513   2263   1763   1163    763    763
EN308TCNA  DELTA     BUILD PLAN                  0      0       0      0      0    400    800    800
EN308TCNA  DELTA         DEMAND                150    250     250    500    600    800    800    800
EN308TCNA  DELTA        END INV               2763   2513    2263   1763   1163    763    763    763
----------------------------------------------------------------------------------------------------

EN516                     ASP $              55200  46000   46000  46000  46000  46000  46000  46000
EN516                     INV $    88   92   59426  15666  -28094  41922  41922  41922  41922  41922
----------------------------------------------------------------------------------------------------
EN516NA    DELTA        BEG INV               1279    679    179    -321    479    479    479    479
EN516NA    DELTA     BUILD PLAN                  0      0      0    1300    500    500    500    500
EN516NA    DELTA         DEMAND                600    500    500     500    500    500    500    500
EN516NA    DELTA        END INV                679    179   -321     479    479    479    479    479
----------------------------------------------------------------------------------------------------

EN524                     ASP $             106250  87500   87500  87500  87500  87500  87500  87500
EN524                     INV $    95  125   -1810 -11334  -20858  74382  74382  74382  74382  74382
----------------------------------------------------------------------------------------------------
EN524NA    DELTA        BEG INV                 31    -19   -119    -219    781    781    781    781
EN524NA    DELTA     BUILD PLAN                800    600    600    1700    700    700    700    700
EN524NA    DELTA         DEMAND                850    700    700     700    700    700    700    700
EN524NA    DELTA        END INV                -19   -119   -219     781    781    781    781    781
----------------------------------------------------------------------------------------------------

FA31010                   ASP $             142800 142800  142800 151200 151200 151200 159600 159600
FA31010                   INV $   120  168  212219 110363  248168 140321 152304 164287 170278 176270
----------------------------------------------------------------------------------------------------
FA31010    LITE-ON      BEG INV               2021   1771    921    2071   1171   1271   1371   1421
FA31010    LITE-ON   BUILD PLAN                600      0   2000       0   1000   1000   1000   1000
FA31010    LITE-ON       DEMAND                850    850    850     900    900    900   950     950
FA31010    LITE-ON      END INV               1771    921   2071    1171   1271   1371   1421   1471
----------------------------------------------------------------------------------------------------

FA31050   see Sec.02      ASP $             117450 117450  117450 117450 117450 117450 117450 117450
FA31050                   INV $   642  783   94267 254847  158499  62151  62151  62151  62151  62151
----------------------------------------------------------------------------------------------------
FA31050    LITE-ON      BEG INV               297     147    397     247     97     97     97     97
FA31050    LITE-ON   BUILD PLAN                 0     400      0       0    150    150    150    150
FA31050    LITE-ON       DEMAND               150     150    150     150    150    150    150    150
FA31050    LITE-ON      END INV               147     397    247      97     97     97     97     97
----------------------------------------------------------------------------------------------------

FA310 SINGLE              ASP $             800000 800000  900000 900000 900000 900000 900000 900000
FA310 SINGLE              INV $    15   20  117608  42708  417208 641908 641908 641908 641908 641908
----------------------------------------------------------------------------------------------------
FA310TX    LITE-ON      BEG INV             24451    7851   2851   27851  42851  42851  42851  42851
FA310TX    LITE-ON   BUILD PLAN             23400   35000  70000   60000  45000  45000  45000  45000
FA310TX    LITE-ON       DEMAND             40000   40000  45000   45000  45000  45000  45000  45000
FA310TX    LITE-ON      END INV              7851    2851  27851   42851  42851  42851  42851  42851
----------------------------------------------------------------------------------------------------

FA310 TXC                 ASP $              66000  66000   66000  66000  66000  66000  66000  66000
FA310 TXC                 INV $    15   22   26155 -18785  -41255  33645  48625  48625  48625  48625
----------------------------------------------------------------------------------------------------
FA310TXC   LITE-ON      BEG INV              1246    1746  -1254  -2754    2246   3246   3246   3246
FA310TXC   LITE-ON   BUILD PLAN              3500       0   1500   8000    4000   3000   3000   3000
FA310TXC   LITE-ON       DEMAND              3000    3000   3000   3000    3000   3000   3000   3000
FA310TXC   LITE-ON      END INV              1746   -1254  -2754   2246    3246   3246   3246   3246
----------------------------------------------------------------------------------------------------
</TABLE>

                                  Page 3 of 9
<PAGE>   51
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                         EXHIBIT 4: BUILD PLAN EXAMPLE
<TABLE>
<CAPTION>
PRODUCT    MFR                      Cost  ASP        Sep       Oct        Nov        Dec        Jan        Feb        Mar        Apr
<S>        <C>        <C>           <C>   <C>     <C>       <C>        <C>        <C>        <C>        <C>        <C>        <C>
FA312                      ASP $                       0         0          0          0          0          0          0          0
FA312                      INV $       0    0          0         0          0          0          0          0          0          0
____________________________________________________________________________________________________________________________________
FA312      LITE-ON       Beg Inv                       0         0          0          0          0      10000      10000      10000
FA312      LITE-ON    Build Plan                       0         0          0          0      10000      10000      10000      10000
FA312      LITE-ON        Demand                       0         0          0          0          0      10000      10000      10000
FA312      LITE-ON       End Inv                       0         0          0          0      10000      10000      10000      10000
____________________________________________________________________________________________________________________________________

FA410C                     ASP $                  432000    450000     450000     450000     450000     450000     450000     450000
FA410C                     INV $      44   60       2956   -129404     113256     400036     400036     400036     400036     400036
____________________________________________________________________________________________________________________________________

FA410C     DLINK         Beg Inv                    7267        67      -2933       2567       9067       9067       9067       9067
FA410C     DLINK      Build Plan                       0      4500      13000      14000       7500       7500       7500       7500
FA410C     DLINK          Demand                    7200      7500       7500       7500       7500       7500       7500       7500
FA410C     DLINK         End Inv                      67     -2933       2567       9067       9067       9067       9067       9067
____________________________________________________________________________________________________________________________________

FA510                      ASP $                   94500     94500     113400     113400     157500     157500     189000     189000
FA510                      INV $      39   63     243766    340116     540524     471152     374802     278452     162832      47212
____________________________________________________________________________________________________________________________________

FA510C     AMBICOM       Beg Inv                    5825      6325       8825      14025      12225       9725       7225       4225
FA510C     AMBICOM    Build Plan                    2000      4000       7000          0          0          0          0          0
FA510C     AMBICOM        Demand                    1500      1500       1800       1800       2500       2500       3000       3000
FA510C     AMBICOM       End Inv                    6325      8825      14025      12225       9725       7225       4225       1225
____________________________________________________________________________________________________________________________________

FB104                      ASP $                   64500     64500      64500      64500      64500      64500      64500      64500
FB104                      INV $      85   86     145965     82057      43713      47973      47973      47973      47973      47973
____________________________________________________________________________________________________________________________________

FB104NA    DELTA         Beg Inv                    2463      1713        963        513        563        563        563        563
FB104NA    DELTA      Build Plan                       0         0        300        800        750        750        750        750
FB104NA    DELTA          Demand                     750       750        750        750        750        750        750        750
FB104NA    DELTA         End Inv                    1713       963        513        563        563        563        563        563
____________________________________________________________________________________________________________________________________

FB108                      ASP $                   #REF!     #REF!      #REF!      #REF!      #REF!      #REF!      #REF!      #REF!
FB108                      INV $     117  139      #REF!     #REF!      #REF!      #REF!      #REF!      #REF!      #REF!      #REF!
____________________________________________________________________________________________________________________________________

FB108NA    DELTA         Beg Inv                      11        11         11         11         11         11         11         11
FB108NA    DELTA      Build Plan                       0         0          0          0          0          0          0          0
FB108NA    DELTA          Demand                       0         0          0          0          0          0          0          0
FB108NA    DELTA         End Inv                      11        11         11         11         11         11         11         11
____________________________________________________________________________________________________________________________________

FE104                      ASP $                   22800     22800      34200      34200      28500      28500      28500      28500
FE104                      INV $      47   57      97002    172490     144182     115874      92284      68694      45104      21514
____________________________________________________________________________________________________________________________________

FE104NA    DELTA         Beg Inv                     456      2056       3656       3056       2456       1956       1456        956
FE104NA    DELTA      Build Plan                    2000      2000          0          0          0          0          0          0
FE104NA    DELTA          Demand                     400       400        600        600        500        500        500        500
FE104NA    DELTA         End Inv                    2056      3656       3056       2456       1956       1456        956        456
____________________________________________________________________________________________________________________________________

FE108                      ASP $                  176400    117600     117600     117600      98000      98000      98000      98000
FE108                      INV $      85   98    -120573     32589      58116      83643      83643      83643      83643      83643
____________________________________________________________________________________________________________________________________

FE108NA    DELTA         Beg Inv                     183     -1417        383        683        983        983        983        983
FE108NA    DELTA      Build Plan                     200      3000       1500       1500       1000       1000       1000       1000
FE108NA    DELTA          Demand                    1800      1200       1200       1200       1000       1000       1000       1000
FE108NA    DELTA         End Inv                   -1417       383        683        983        983        983        983        983
____________________________________________________________________________________________________________________________________

FE116                      ASP $                   46250     64750      46250      46250      46250      46250      46250      46250
FE116                      INV $     139  185      56136      7503     -13339      21398      21398      21398      21398      21398
____________________________________________________________________________________________________________________________________

FE116NA    DELTA         Beg Inv                     654       404         54        -96        154        154        154        154
FE116NA    DELTA      Build Plan                       0         0        100        500        250        250        250        250
FE116NA    DELTA          Demand                     250       350        250        250        250        250        250        250
FE116NA    DELTA         End Inv                     404        54        -96        154        154        154        154        154
____________________________________________________________________________________________________________________________________

FE508                      ASP $                   10600     10600      10600      10600      10600      10600      10600      10600
FE508                      INV $     154  212       8806     11896      14986       7261       7261       7261       7261       7261
____________________________________________________________________________________________________________________________________

FE508NA    DELTA         Beg Inv                     107        57         77         97         47         47         47         47
FE508NA    DELTA      Build Plan                       0        70         70          0         50         50         50         50
FE508NA    DELTA          Demand                      50        50         50         50         50         50         50         50
FE508NA    DELTA         End Inv                      57        77         97         47         47         47         47         47
____________________________________________________________________________________________________________________________________
</TABLE>

                                  Page 4 of 9
<PAGE>   52
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                         EXHIBIT 4: BUILD PLAN EXAMPLE

<TABLE>
<CAPTION>
PRODUCT      MFR                     COST       ASP       Sep       Oct       Nov      Dec     Jan     Feb      Mar     Apr
<S>          <C>          <C>         <C>      <C>       <C>     <C>      <C>       <C>     <C>      <C>      <C>      <C>
FE516                     ASP $                          45750   54900     54900    54900    54900    54900    54900    54900
FE516                     INV $       219      305       29319   77455    103711    64327    46823    40259    40259    40259
-----------------------------------------------------------------------------------------------------------------------------
FE516NA     DELTA       BEG INV                             10     134       354      474      294      214      184      184
FE516NA     DELTA    BUILD PLAN                            274     400       300        0      100      150      180      180
FE516NA     DELTA        DEMAND                            150     180       180      180      180      180      180      180
FE516NA     DELTA       END INV                            134     354       474      294      414      184      184      184
-----------------------------------------------------------------------------------------------------------------------------

FS102                     ASP $                           4300       0         0        0        0        0        0        0
FS102                     INV $        74      86         8167   15525     15525    15525    15525    15525    15525    15525
-----------------------------------------------------------------------------------------------------------------------------
FS102NA     DELTA       BEG INV                             11     111       211      211      211      211      211      211
FS102NA     DELTA    BUILD PLAN                            150     100         0        0        0        0        0        0
FS102NA     DELTA        DEMAND                             50       0         0        0        0        0        0        0
FS102NA     DELTA       END INV                            111     211       211      211      211      211      211      211
-----------------------------------------------------------------------------------------------------------------------------

FS104                     ASP $                          93100   93100         0        0        0        0        0        0
FS104                     INV $       133     133       -40177  -86495    -86495   -86495   -86495   -86495   -86495   -86495
-----------------------------------------------------------------------------------------------------------------------------
FS104NA     DELTA       BEG INV                              7    -301      -648     -648     -648     -648     -648     -648
FS104NA     DELTA    BUILD PLAN                            392     353         0        0        0        0        0        0
FS104NA     DELTA        DEMAND                            700     700         0        0        0        0        0        0
FS104NA     DELTA       END INV                           -301    -648      -648     -648     -648     -648     -648     -648
-----------------------------------------------------------------------------------------------------------------------------

FS105                     ASP $                              0  332500    266000   266000   266000   266000   266000   266000
FS105                     INV $       133     133            0  -66740    -66740   200220   266960   266960   266960   266960
-----------------------------------------------------------------------------------------------------------------------------
FS105NA     LITE-ON     BEG INV                              0       0      -500     -500     1500     2000     2000     2000
FS105NA     LITE-ON  BUILD PLAN                              0    2000      2000     4000     2500     2000     2000     2000
FS105NA     LITE-ON      DEMAND                              0    2500      2000     2000     2000     2000     2000     2000
FS105NA     LITE-ON     END INV                              0    -500      -500     1500     2000     2000     2000     2000
-----------------------------------------------------------------------------------------------------------------------------

FS108                     ASP $                         363000  363000    363000   363000   363000   363000   363000   363000
FS108                     INV $       134     165       587334  291786     -3762   305220   305220   305220   305220   305220
-----------------------------------------------------------------------------------------------------------------------------
FS108NA     DELTA       BEG INV                           2022    4372      2172      -28     2272     2272     2272     2272
FS108NA     DELTA    BUILD PLAN                           4550       0         0     4500     2200     2200     2200     2200
FS108NA     DELTA        DEMAND                           2200    2200      2200     2200     2200     2200     2200     2200
FS108NA     DELTA       END INV                           4372    2172       -28     2272     2272     2272     2272     2272
-----------------------------------------------------------------------------------------------------------------------------

FS308                     ASP $                          41800   52250     52250    52250    62700    62700    62700    62700
FS308                     INV $       159     209       103375   63737     47882    39955    39955    39955    39955    39955
-----------------------------------------------------------------------------------------------------------------------------
FS308NA     DELTA       BEG INV                            852     652       402      302      252      252      252      252
FS308NA     DELTA    BUILD PLAN                              0       0       150      200      300      300      300      300
FS308NA     DELTA        DEMAND                            200     250       250      250      300      300      300      300
FS308NA     DELTA       END INV                            652     402       302      252      252      252      252      252
-----------------------------------------------------------------------------------------------------------------------------

FS508                     ASP $                          88660   88660     80600    80600    72540    72540    72540    72540
FS508                     INV $       271     403        71607   11935    -42313    66183    66183    66183    66183    66183
-----------------------------------------------------------------------------------------------------------------------------
FS508NA     ACCTON      BEG INV                            484     264        44     -156      244      244      244      244
FS508NA     ACCTON   BUILD PLAN                              0       0         0      600      180      180      180      180
FS508NA     ACCTON       DEMAND                            220     220       200      200      180      180      180      180
FS508NA     ACCTON      END INV                            264      44      -156      244      244      244      244      244
-----------------------------------------------------------------------------------------------------------------------------

FS509                     ASP $                          67900   33950     67900    67900    67900    67900    67900    67900
FS509                     INV $       409     679       173285  357195    316326   275457   234588   193719   152850   111981
-----------------------------------------------------------------------------------------------------------------------------
FS509NA     DELTA       BEG INV                            435     424       874      774      674      574      474      374
FS509NA     DELTA    BUILD PLAN                             89     500         0        0        0        0        0        0
FS509NA     DELTA        DEMAND                            100      50       100      100      100      100      100      100
FS509NA     DELTA       END INV                            424     874       774      674      574      474      374      274
-----------------------------------------------------------------------------------------------------------------------------

FS510T                    ASP $                              0       0         0        0        0        0        0        0
FS510T                    INV $         0       0            0       0         0        0        0        0        0        0
-----------------------------------------------------------------------------------------------------------------------------
FS510TNA    DELTA       BEG INV                              0       0         0      100      100      100      100      150
FS510TNA    DELTA    BUILD PLAN                              0       0       300      100       50      100      200      150
FS510TNA    DELTA        DEMAND                              0       0       200      100       50      100      150      150
FS510TNA    DELTA       END INV                              0       0       100      100      100      100      150      150
-----------------------------------------------------------------------------------------------------------------------------

</TABLE>

                                  Page 5 of 9
<PAGE>   53
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                         EXHIBIT 4: BUILD PLAN EXAMPLE

<TABLE>
<CAPTION>
PRODUCT   MFR                   COST  ASP      Sep     Oct     Nov     Dec     Jan     Feb     Mar     Apr
FS516                    ASP $              247950  192850  247950  247950  247950  247950  247950  247950
FS516                    INV $  533   551   -11727  -65030  228137  228137  228137  228137  228137  228137
----------------------------------------------------------------------------------------------------------
<S>       <C>       <C>                     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>
FS516NA   DELTA        BEG INV                  10     -22    -122     428     428     428     428     428
FS516NA   DELTA     BUILD PLAN                 418     250    1000     450     450     450     450     450
FS516NA   DELTA         DEMAND                 450     450     450     450     450     450     450     450
FS516NA   DELTA        END INV                 -22    -122     428     428     428     428     428     428
----------------------------------------------------------------------------------------------------------

FS518                    ASP $                   0       0       0       0       0       0       0       0
FS518                    INV $  676     0   135168  168960  168960  101376   67584   67584   67584   67584
----------------------------------------------------------------------------------------------------------
FS518NA   DELTA        BEG INV                  59     200     250     250     150     100     100     100
FS518NA   DELTA     BUILD PLAN                 241     150     100       0      50     100     100     100
FS518NA   DELTA         DEMAND                 100     100     100     100     100     100     100     100
FS518NA   DELTA        END INV                 200     250     250     150     100     100     100     100
----------------------------------------------------------------------------------------------------------

FS518T                   ASP $                   0       0       0       0       0       0       0       0
FS518T                   INV $    0     0        0       0       0       0       0       0       0       0
----------------------------------------------------------------------------------------------------------
FS518TNA  DELTA        BEG INV                   0       0       0     100     100     100     100     100
FS518TNA  DELTA     BUILD PLAN                   0       0     250     100      50     100     100     100
FS518TNA  DELTA         DEMAND                   0       0     150     100      50     100     100     100
FS518TNA  DELTA        END INV                   0       0     100     100     100     100     100     100
----------------------------------------------------------------------------------------------------------

FS524                    ASP $              319000  223300  255200  255200  255200  287100  287100  287100
FS524                    INV $  393   638    78578  174836   96258  174836  174836  174836  174836  174836
----------------------------------------------------------------------------------------------------------
FS524NA   DELTA        BEG INV                 700     200     445     245     445     445     445     445
FS524NA   DELTA     BUILD PLAN                   0     595     200     600     400     450     450     450
FS524NA   DELTA         DEMAND                 500     350     400     400     400     450     450     450
FS524NA   DELTA        END INV                 200     445     245     445     445     445     445     445
----------------------------------------------------------------------------------------------------------

FS562                    ASP $               37700   37700   37700   37700   37700   37700   37700   37700
FS562                    INV $  486   754    28698   78797   54477   30157    5837  -18483  -42803  -67123
----------------------------------------------------------------------------------------------------------
FS562NA   DELTA        BEG INV                 109      59     162     112      62      12     -38     -88
FS562NA   DELTA     BUILD PLAN                   0     153       0       0       0       0       0       0
FS562NA   DELTA         DEMAND                  50      50      50      50      50      50      50      50
FS562NA   DELTA        END INV                  59     162     112      62      12     -38     -88    -138
----------------------------------------------------------------------------------------------------------

FS566                    ASP $               13572   13572   13572   13572   13572   13572   13572   13572
FS566                    INV $  741  1,131  287322  278436  269549  260663  251777  242891  234004  225118
----------------------------------------------------------------------------------------------------------
FS566NA   DELTA        BEG INV                 400     388     376     364     352     340     328     316
FS566NA   DELTA     BUILD PLAN                   0       0       0       0       0       0       0       0
FS566NA   DELTA         DEMAND                  12      12      12      12      12      12      12      12
FS566NA   DELTA        END INV                 388     376     364     352     340     328     316     304
----------------------------------------------------------------------------------------------------------

GA310                    ASP $                   0       0       0       0       0       0       0       0
GA310                    INV $    0      0       0       0       0       0       0       0       0       0
----------------------------------------------------------------------------------------------------------
GA310     DELTA        BEG INV                   0       0       0       0       0       0       0       0
GA310     DELTA     BUILD PLAN                   0       0       0       0       0       0       0       0
GA310     DELTA         DEMAND                   0       0       0       0       0       0       0       0
GA310     DELTA        END INV                   0       0       0       0       0       0       0       0
----------------------------------------------------------------------------------------------------------

GA620                    ASP $               40500   40500   40500   48600   48600   48600   48600   48600
GA620                    INV $  166    270  231403  206521  214815  184956  155098  125239   95381   65523
----------------------------------------------------------------------------------------------------------
GA620     ALT/CTH      BEG INV                1545    1395    1245    1295    1115     935     755     575
GA620     ALT/CTH   BUILD PLAN                   0       0     200       0       0       0       0       0
GA620     ALT/CTH       DEMAND                 150     150     150     180     180     180     180     180
GA620     ALT/CTH      END INV                1395    1245    1295    1115     935     755     575     395
----------------------------------------------------------------------------------------------------------

GS504                    ASP $                   0       0       0       0       0       0       0       0
GS504                    INV $  781      0   28913   62515   62515   46886   46886   46886   46886   46886
----------------------------------------------------------------------------------------------------------
GS504NA   DELTA        BEG INV                  67      37      80      80      60      60      60      60
GS504NA   DELTA     BUILD PLAN                   0      93      50      30      50      50      50      50
GS504NA   DELTA         DEMAND                  30      50      50      50      50      50      50      50
GS504NA   DELTA        END INV                  37      80      80      60      60      60      60      60
----------------------------------------------------------------------------------------------------------
</TABLE>

                                  Page 6 of 9

<PAGE>   54
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                         EXHIBIT 4: BUILD PLAN EXAMPLE

<TABLE>
<CAPTION>
PRODUCT   MFR                 COST   ASP      Sep     Oct     Nov    Dec     Jan     Feb     Mar     Apr
<S>       <C>    <C>          <C>    <C>   <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>
GS504T                ASP $                     0       0       0       0       0       0       0       0
GS504T                INV $      0     0        0       0       0       0       0       0       0       0
---------------------------------------------------------------------------------------------------------
GS504TNA  DELTA     BEG INV                     0       0       0      50      50      50      50      50
GS504TNA  DELTA  BUILD PLAN                     0       0     100      50      50      50      50      50
GS504TNA  DELTA      DEMAND                     0       0      50      50      50      50      50      50
GS504TNA  DELTA     END INV                     0       0      50      50      50      50      50      50
---------------------------------------------------------------------------------------------------------

GS508T                ASP $                     0       0       0       0       0       0       0       0
GS508T                INV $      0      0       0       0       0       0       0       0       0       0
---------------------------------------------------------------------------------------------------------
GS508TNA  DELTA     BEG INV                     0       0       0      30      30      30      30      30
GS508TNA  DELTA  BUILD PLAN                     0       0      60      30      30      30      30      30
GS508TNA  DELTA      DEMAND                     0       0      30      30      30      30      30      30
GS508TNA  DELTA     END INV                     0       0      30      30      30      30      30      30
---------------------------------------------------------------------------------------------------------

ND508                 ASP $                 23200   46400   46400   46400   69600   69600   69600   69600
ND508                 INV $    329    464  359837  326915  392759  359837  310454  261071  211688  162305
---------------------------------------------------------------------------------------------------------
ND508NA   DELTA     BEG INV                    41    1093     993    1193    1093     943     793     643
ND508NA   DELTA  BUILD PLAN                  1102       0     300       0       0       0       0       0
ND508NA   DELTA      DEMAND                    50     100     100     100     150     150     150     150
ND508NA   DELTA     END INV                  1093     993    1193    1093     943     793     643     493
---------------------------------------------------------------------------------------------------------

ND520                 ASP $                 45240   75400  113100  113100  150800  150800  150800  150800
ND520                 INV $    497    754  120832  619076  743389  668801  569351  469901  370451  271001
---------------------------------------------------------------------------------------------------------
ND520NA   DELTA     BEG INV                   303     243    1245    1495    1345    1145     945     745
ND520NA   DELTA  BUILD PLAN                     0    1102     400       0       0       0       0       0
ND520NA   DELTA      DEMAND                    60     100     150     150     200     200     200     200
ND520NA   DELTA     END INV                   243    1245    1495    1345    1145     945     745     545
---------------------------------------------------------------------------------------------------------

PA101                 ASP $                     0       0       0       0       0       0       0       0
PA101                 INV $      0      0       0       0       0       0       0       0       0       0
---------------------------------------------------------------------------------------------------------
PA101     DELTA     BEG INV                     0       0   -1500    7500    7500    7500    7500    7500
PA101     DELTA  BUILD PLAN                     0     500   17000    4000    4000    4000    4000    4000
PA101     DELTA      DEMAND                     0    2000    8000    4000    4000    4000    4000    4000
PA101     DELTA     END INV                     0   -1500    7500    7500    7500    7500    7500    7500
---------------------------------------------------------------------------------------------------------

PA301                 ASP $                     0       0       0       0       0       0       0       0
PA301                 INV $      0      0       0       0       0       0       0       0       0       0
---------------------------------------------------------------------------------------------------------
PA301     DELTA     BEG INV                     0       0   -1500    7500    7500    7500    7500    7500
PA301     DELTA  BUILD PLAN                     0     500   17000    4000    4000    4000    4000    4000
PA301     DELTA      DEMAND                     0    2000    8000    4000    4000    4000    4000    4000
PA301     DELTA     END INV                     0   -1500    7500    7500    7500    7500    7500    7500
---------------------------------------------------------------------------------------------------------

PE302                 ASP $                     0       0       0       0       0       0       0       0
PE302                 INV $      0      0       0       0       0       0       0       0       0       0
---------------------------------------------------------------------------------------------------------
PE302NA   DELTA     BEG INV                     0       0     400     300     500     500     500     500
PE302NA   DELTA  BUILD PLAN                     0     400     400     700     500     500     500     500
PE302NA   DELTA      DEMAND                     0       0     500     500     500     500     500     500
PE302NA   DELTA     END INV                     0     400     300     500     500     500     500     500
---------------------------------------------------------------------------------------------------------

PR356                 ASP $                     0       0       0       0       0       0       0       0
PR356                 INV $      0      0       0       0       0       0       0       0       0       0
---------------------------------------------------------------------------------------------------------
PR356NA   DELTA     BEG INV                     0       0       0    1800    1600    1400    1200    1000
PR356NA   DELTA  BUILD PLAN                     0       0    2000       0       0       0       0       0
PR356NA   DELTA      DEMAND                     0       0     200     200     200     200     200     200
PR356NA   DELTA     END INV                     0       0    1800    1600    1400    1200    1000     800
---------------------------------------------------------------------------------------------------------

PS104                 ASP $                 35100   27300   27300   27300   27300   27300   27300   27300
PS104                 INV $     64     78  109593   87109   64625   48565   48565   48565   48565   48565
---------------------------------------------------------------------------------------------------------
PS104NA  SERCOMM    BEG INV                  2156    1706    1356    1006     756     756     756     756
PS104NA  SERCOMM BUILD PLAN                     0       0       0     100     350     350     350     350
PS104NA  SERCOMM     DEMAND                   450     350     350     350     350     350     350     350
PS104NA  SERCOMM    END INV                  1706    1356    1006     756     756     756     756     756
---------------------------------------------------------------------------------------------------------
</TABLE>

                                  Page 7 of 9

<PAGE>   55
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                         EXHIBIT 4: BUILD PLAN EXAMPLE

<TABLE>
<CAPTION>
PRODUCT     MFR                   Cost   ASP    Sep      Oct       Nov     Dec       Jan       Feb     Mar     Apr
<S>         <C>            <C>    <C>    <C>    <C>      <C>       <C>     <C>       <C>       <C>     <C>     <C>
PS105                      ASP $                  0        0         0       0         0         0       0       0
PS105                      INV $   68    82       0        0         0       0         0         0       0       0
------------------------------------------------------------------------------------------------------------------
PS105NA     SERCOMM      BEG INV                  0        0         0       0         0         0       0       0
PS105NA     SERCOMM   BUILD PLAN                  0        0         0       0         0         0       0       0
PS105NA     SERCOMM       DEMAND                  0        0         0       0         0         0       0       0
PS105NA     SERCOMM      END INV                  0        0         0       0         0         0       0       0
------------------------------------------------------------------------------------------------------------------
PS110                      ASP $             199500   119700    119700  119700    119700    119700  119700  119700
PS110                      INV $   85    133 -64858     2790    -39490   78894     78894     78894   78894   78894
------------------------------------------------------------------------------------------------------------------
PS110NA     SERCOMM      BEG INV                733     -767        33    -467       933       933     933     933
PS110NA     SERCOMM   BUILD PLAN                  0     1700       400    2300       900       900     900     900
PS110NA     SERCOMM       DEMAND               1500      900       900     900       900       900     900     900
PS110NA     SERCOMM      END INV               -767       33      -467     933       933       933     933     933
------------------------------------------------------------------------------------------------------------------
RH340                      ASP $                  0        0         0       0         0         0       0       0
RH340                      INV $  145    0    36310    36310     72620  101668    101668    101668  101668  101668
------------------------------------------------------------------------------------------------------------------
RH340NA     ZYXEL      BEG INV $                  0      250       250     500       700       700     700     700
RH340NA     ZYXEL     BUILD PLAN                250      500       750    1000       800       800     800     800
RH340NA     ZYXEL         DEMAND                  0      500       500     800       800       800     800     800
RH340NA     ZYXEL        END INV                250      250       500     700       700       700     700     700
------------------------------------------------------------------------------------------------------------------
RH348                      ASP $              91000    91000     91000   91000     91000     91000   91000   91000
RH348                      INV $  177    260  94438    32656     50308   59134     59134     59134   59134   59134
------------------------------------------------------------------------------------------------------------------
RH348NA     ZYXEL        BEG INV                885      535       185     285       335       335     335     335
RH348NA     ZYXEL     BUILD PLAN                  0        0       450     400       350       350     350     350
RH348NA     ZYXEL         DEMAND                350      350       350     350       350       350     350     350
RH348NA     ZYXEL        END INV                535      185       285     335       335       335     335     335
------------------------------------------------------------------------------------------------------------------
RM356                      ASP $              80850    80850     80850   80850     80850     80850   80850   80850
RM356                      INV $  148    231  96628   133735    156000  104049     52099     52099   52099   52099
------------------------------------------------------------------------------------------------------------------
RM356NA     ZYXEL        BEG INV               1001      651       901    1051       701       351     351     351
RM356NA     ZYXEL     BUILD PLAN                  0      600       500       0         0       350     350     350
RM356NA     ZYXEL         DEMAND                350      350       350     350       350       350     350     350
RM356NA     ZYXEL        END INV                651      901      1051     701       351       351     351     351
------------------------------------------------------------------------------------------------------------------
RT210                      ASP $                  0        0         0       0         0         0       0       0
RT210                      INV $  294    395      0        0         0       0         0         0       0       0
------------------------------------------------------------------------------------------------------------------
RT210NA     IMS          BEG INV                  0        0         0       0         0         0       0       0
RT210NA     IMS       BUILD PLAN                  0        0         0       0         0         0       0       0
RT210NA     IMS           DEMAND                  0        0         0       0         0         0       0       0
RT210NA     IMS          END INV                  0        0         0       0         0         0       0       0
------------------------------------------------------------------------------------------------------------------
RT311                      ASP $                  0        0         0       0         0         0       0       0
RT311                      INV $  140    0   -27988   -27988     27988   27988     27988     27988   27988   27988
------------------------------------------------------------------------------------------------------------------
RT311NA     ZYXEL        BEG INV                  0     -200      -200     200       200       200     200     200
RT311NA     ZYXEL     BUILD PLAN                  0      200       600     200       200       200     200     200
RT311NA     ZYXEL         DEMAND                200      200       200     200       200       200     200     200
RT311NA     ZYXEL        END INV               -200     -200       200     200       200       200     200     200
------------------------------------------------------------------------------------------------------------------
RT328                      ASP $             161700   161700    161700       0         0         0       0       0
RT328                      INV $  160    231  14045    30005    -81715  -81715    -18715    -18715  -18715  -18715
------------------------------------------------------------------------------------------------------------------
RT328NA     ZYXEL        BEG INV                788       88       188    -512      -512      -512    -512    -512
RT328NA     ZYXEL     BUILD PLAN                  0      800         0       0         0         0       0       0
RT328NA     ZYXEL         DEMAND                700      700       700       0         0         0       0       0
RT328NA     ZYXEL        END INV                 88      188      -512    -512      -512      -512    -512    -512
------------------------------------------------------------------------------------------------------------------
RT338                      ASP $                  0        0         0       0         0         0       0       0
RT338                      INV $  172    0        0   103062    171770  137416    137416    137416  137416  137416
------------------------------------------------------------------------------------------------------------------
RT338NA     ZYXEL        BEG INV                  0        0       600    1000       800       800     800     800
RT338NA     ZYXEL     BUILD PLAN                  0      600       800     400       800       900     900     900
RT338NA     ZYXEL         DEMAND                  0        0       400     600       800       900     900     900
RT338NA     ZYXEL        END INV                  0      600      1000     800       800       800     800     800
------------------------------------------------------------------------------------------------------------------
</TABLE>

                                  Page 8 of 9

<PAGE>   56
* Portions denoted with an                      CONFIDENTIAL TREATMENT REQUESTED
  asterisk have been omitted
  and filed separately with
  the Securities and Exchange
  Commission pursuant to
  a request for confidential
  treatment.

                         EXHIBIT 4: BUILD PLAN EXAMPLE

<TABLE>
<CAPTION>
PRODUCT   MFR                   COST  ASP      Sep     Oct     Nov     Dec     Jan     Feb     Mar     Apr
SB104                    ASP $               45500   45500   45500   78000   78000   78000   78000   78000
SB104                    INV $   57    65   422735  382611  342487  273703  204919  136135   67351   67351
----------------------------------------------------------------------------------------------------------
<S>       <C>       <C>                     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>
SB104NA   DELTA        BEG INV               16075    7375    6675    5975    4775    3575    2375    1175
SB104NA   DELTA     BUILD PLAN               -8000       0       0       0       0       0       0    1200
SB104NA   DELTA         DEMAND                 700     700     700    1200    1200    1200    1200    1200
SB104NA   DELTA        END INV                7375    6675    5975    4775    3575    2375    1175    1175
----------------------------------------------------------------------------------------------------------

SW108                    ASP $                   0       0       0       0       0       0       0       0
SW108                    INV $  149   265     9417    9417    9417    9417    9417    9417    9417    9417
----------------------------------------------------------------------------------------------------------
SW108NA   DELTA        BEG INV                  58      63      63      63      63      63      63      63
SW108NA   DELTA     BUILD PLAN                   5       0       0       0       0       0       0       0
SW108NA   DELTA         DEMAND                   0       0       0       0       0       0       0       0
SW108NA   DELTA        END INV                  63      63      63      63      63      63      63      63
----------------------------------------------------------------------------------------------------------

SW502                    ASP $                   0       0       0       0       0       0       0       0
SW502                    INV $  148   549     2522    2522    2522    2522    2522    2522    2522    2522
----------------------------------------------------------------------------------------------------------
SW502NA   ACCTON       BEG INV                  17      17      17      17      17      17      17      17
SW502NA   ACCTON    BUILD PLAN                   5       0       0       0       0       0       0       0
SW502NA   ACCTON        DEMAND                   0       0       0       0       0       0       0       0
SW502NA   ACCTON       END INV                  17      17      17      17      17      17      17      17
----------------------------------------------------------------------------------------------------------

SW507                    ASP $                   0       0       0       0       0       0       0       0
SW507                    INV $  234   445        0       0       0       0       0       0       0       0
----------------------------------------------------------------------------------------------------------
SW507NA   ACCTON       BEG INV                   0       0       0       0       0       0       0       0
SW507NA   ACCTON    BUILD PLAN                   0       0       0       0       0       0       0       0
SW507NA   ACCTON        DEMAND                   0       0       0       0       0       0       0       0
SW507NA   ACCTON       END INV                   0       0       0       0       0       0       0       0
----------------------------------------------------------------------------------------------------------

SW510                    ASP $               15660   20880   20880   20880   20880   20880   20880   20880
SW510                    INV $  206   261    39221   23459    6997   -9466  -25928  -42391  -58853  -75315
----------------------------------------------------------------------------------------------------------
SW510NA   DELTA        BEG INV                 254     194     114      34     -46    -126    -206    -286
SW510NA   DELTA     BUILD PLAN                   0       0       0       0       0       0       0       0
SW510NA   DELTA         DEMAND                  60      80      80      80      80      80      80      80
SW510NA   DELTA        END INV                 194     114      34     -46    -126    -206    -286    -368
----------------------------------------------------------------------------------------------------------

SW518                    ASP $               32240   32240   32240   32240   32240   32240   32240   32240
SW518                    INV $  245   403    66564   46986   27409    7831  -11747  -31324  -50902  -70479
----------------------------------------------------------------------------------------------------------
SW518NA   DELTA        BEG INV                  39     272     192     112      32     -48    -128    -208
SW518NA   DELTA     BUILD PLAN                 313       0       0       0       0       0       0       0
SW518NA   DELTA         DEMAND                  80      80      80      80      80      80      80      80
SW518NA   DELTA        END INV                 272     192     112      32     -48    -128    -208    -288
----------------------------------------------------------------------------------------------------------

XM128                    ASP $               63900   56800   56800   56800   56800   56800   56800   56800
XM128                    INV $  111   142   -26753  -15652  -26753   39853   39853   39853   39853   39853
----------------------------------------------------------------------------------------------------------
XM128NA   ZYXEL        BEG INV                 209    -241    -141    -241     359     359     359     359
XM128NA   ZYXEL     BUILD PLAN                   0     500     300    1000     400     400     400     400
XM128NA   ZYXEL         DEMAND                 450     400     400     400     400     400     400     400
XM128NA   ZYXEL        END INV                -241    -141    -241     359     359     359     359     359
----------------------------------------------------------------------------------------------------------

</TABLE>

                                  Page 9 of 9<PAGE>   1
                                                                   Exhibit 10.15

                             CONTRIBUTION AGREEMENT

THIS CONTRIBUTION AGREEMENT (this "Agreement"), entered into with effect as of
the 10th day of March, 2000 (the "Effective Date")

BY AND BETWEEN:

          NORTEL NETWORKS NA INC., a Delaware corporation with offices located
          at 4401 Great America Parkway, Santa Clara, CA 95052 (hereinafter
          referred to as "NNNAI") which is a wholly-owned subsidiary of Nortel
          Networks Inc. ("NNI"), which, in turn, is a wholly-owned subsidiary of
          Nortel Networks Corporation (hereinafter referred to as "NNC").

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

     WHEREAS, NNNAI wishes to affirm NETGEAR'S ownership of certain of NNNAI's
rights and obligations in and to the assets and liabilities involved in the
NETGEAR Business (as defined below), all as more specifically provided for
herein.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, NNNAI and NETGEAR, intending to be
legally bound, agree as follows:

                                   ARTICLE I
                                  DEFINITIONS

     Capitalized terms used in this Agreement are used as defined in this
Article I or elsewhere in this Agreement. As used herein:

     "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.

     "Agreement" has the meaning specified in the preamble hereof.

     "Assumed Contracts" has the meaning specified in Section 2.01(a).

     "Assumed Liabilities" has the meaning specified in Section 3.01.

                                       1
<PAGE>   2
     "Company Material Adverse Effect" means a material adverse effect on the
business, assets or financial condition of NETGEAR.

     "Components" means materials, components, assemblies or parts not
originating with NNNAI or the NETGEAR Business.

     "Confidential Information" means any business, marketing, technical,
scientific or other information that, at the time of disclosure, is designated
as confidential (or like designation), is disclosed in circumstances of
confidence, or would be understood by the Parties, exercising reasonable
business judgment, to be confidential. Confidential Information includes,
without limitation, the terms and conditions of this Agreement and information
included in or related to Licensed Intellectual Property and Transferred
Intellectual Property.

     "Effective Date" means the close of business on the date of this Agreement.

     "Employee Plans" means all incentive, deferred compensation, supplemental
retirement, severance, pension, profit-sharing, retirement, health, welfare,
insurance, or other employee benefit plans and all material arrangements, plans,
programs and practices pertaining to compensation, bonuses, securities
purchases, options, commissions, incentives, allowances, vacation, sick days,
education assistance, leaves of absence, relocation and the like, for the
benefit of current or former employees, that are currently maintained by such
employee's employer, or with respect to which such employer currently has or in
the future may have any material liability or obligation to contribute or to
make payments.

     "Excluded Assets" has the meaning specified in Section 2.02.

     "Excluded Intellectual Property" has the meaning specified in the IP
Agreement.

     "Generalized Searches" has the meaning specified in Section 4.03(a).

     "Improvement" has the meaning specified in the IP Agreement.

     "Intellectual Property Rights" means all patent rights, copyrights, mask
work rights, confidential information rights, trademark, trade name,
distinguishing guise, 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 registration for
any of the foregoing rights.

     "IP Agreement" means the Intellectual Property License Agreement between
NNNAI and NETGEAR dated as of the date hereof.

     "Knowledge," with respect to NNNAI, as applicable, means the actual
knowledge of Michael Dadoun and Stephanie Brecher-Siegel; and, with respect to
NETGEAR, means, as applicable, the actual knowledge of Patrick Lo and Richard
Fabiano.

     "Licensed Intellectual Property" has the meaning specified in the IP
Agreement.

     "Loaned Employee Benefits" means the Loaned Employee Agreement, effective
as of the date hereof, by and between Nortel Networks Inc., NNNAI, NETGEAR and
Netgear International, Inc.

     "LTD Benefits" has the meaning specified in Section 4.02(a).

                                       2
<PAGE>   3
     "NETGEAR" has the meaning specified in the preamble hereof.

     "NETGEAR Assets" has the meaning specified in Section 2.01.

     "NETGEAR Business" means the business related to (i) the design, research,
manufacture and development of NETGEAR Products by NETGEAR on or after the date
hereof, or by NNC, NNI, NNNAI or NETGEAR before the date hereof; and (ii) the
marketing, distribution and licensing of the NETGEAR Products by NETGEAR on or
after the date hereof, or by NNC, NNI, NNNAI or NETGEAR before the date hereof.

     "NETGEAR Employees" means the employees of NNNAI ("NNNAI Employees") that
are listed on Exhibit E and are hired by NETGEAR as of the Effective Date, as
provided in Section 4.01, or, if applicable, immediately upon termination of STD
Benefits, an NNNAI leave of absence or services under the Loaned Employee
Agreement(s), as provided in Section 4.02(a), (c) and (d), respectively.

     "NETGEAR'S Employment Liabilities" has the meaning specified in Section
4.04(b).

     "NETGEAR Hire Date" means the date on which a NETGEAR Employee commences
employment with NETGEAR, as provided in Section 4.01 or 4.02, as applicable.

     "NETGEAR Products" means the current products and products under
development listed on Exhibit G.

     "NNNAI's Employment Liabilities" has the meaning specified in Section
4.04(a).

     "No Solicitation Period" has the meaning set forth in Section 4.03(a).

     "Other Marks" shall mean the marks identified and listed as "Other Marks"
in Exhibit J.

     "Party" means NNNAI or NETGEAR, and Parties means both of them.

     "Patent Cross Licenses" shall mean those corporate cross license
agreements with third parties entered into by NNC and listed in Exhibit A.

     "Product Licenses" means the Intellectual Property Rights granted in the
ordinary distribution of products manufactured by the NETGEAR Business.

     "Retained Liabilities" has the meaning specified in Section 3.02.

     "Subsidiary" of a person means an entity in which that person effectively
owns or controls, directly or indirectly, more than fifty percent (50%) of the
voting stock or other ownership interest therein.

     "STD Benefits" has the meaning specified in Section 4.02(a).

     "Third Party Licenses" means licenses and other written agreements relating
to the Intellectual Property Rights that are used in the NETGEAR Business,
including those listed on Exhibit B, but not including the Patent Cross
Licenses, Transferable Software Licenses, and the Product Licenses.

                                       3
<PAGE>   4
     "Transferable Software License" means a license agreement for software
licensed to NNNAI or its Affiliates that is installed on computers forming a
part of the NETGEAR Assets, and that is either (i) freely assignable by its
terms by NNNAI or its Affiliates to the NETGEAR or (ii) as to which all actions
necessary to make such software license assignable by NNNAI or its Affiliates to
NETGEAR as of the Effective Date have been taken, and that is identified as
being a Transferable Software License on Exhibit L.

     "Transferred Intellectual Property" shall mean: (i) the Transferred
Software; (ii) the Transferred Technical Information; and (iii) the Transferred
Trademarks.

     "Transferred Software" shall mean the software and related documentation,
and the copyright therein, owned by NNNAI or its Subsidiaries and used
exclusively in the NETGEAR Business as of the Effective Date and listed in
Exhibit H.

     "Transferred Technical Information" shall mean all prototypes, works in
progress, related drawings, schematics, specifications, designs and agency
approval files related to NETGEAR Products and all trade secrets which are
embodied in any know-how, manufacturing specifications, processing procedures or
research and development information owned by NNNAI and used exclusively in the
NETGEAR Business as of the Effective Date, and listed in Exhibit I.

     "Transferred Trademarks" shall mean the marks identified and listed as
"Transferred Trademarks in Exhibit J.

                                   ARTICLE II
                                 NETGEAR ASSETS

     Section 2.01. Transfers to NETGEAR. Subject to the terms and conditions
hereof, including, without limitation, the exclusion from transfer under this
Agreement of a portion of such assets as set forth in Section 2.02, NNNAI hereby
transfers, conveys and assigns to NETGEAR, and NETGEAR hereby acquires, NNNAI's
entire right, title and interest in, to and under all of the assets and
properties described below (collectively, the "NETGEAR Assets"):

     (a)  Assumed Contracts. Subject to Section 2.03, all of the contracts and
subcontracts listed on Exhibit C, which relate to the sale, purchase, support,
distribution or licensing of NETGEAR Products or related services (including
services of independent contractors), or both, entered into in the course of the
NETGEAR Business (collectively, the "Assumed Contracts");

     (b)  Records. Customer and prospective customer lists, business records,
reports, plans, records, product specifications, training manuals,
correspondence, regulatory reports and documents, maintenance schedules,
operating and production records, business plans, marketing or other studies and
other documents and data that were prepared by employees of NETGEAR and relate
to the NETGEAR Business existing on the Effective Date;

     (c)  Furniture, Fixtures, Inventory and Equipment. The furniture, fixtures,
inventory and other equipment listed on Exhibit D; and

     (d)  Intellectual Property. The Transferred Intellectual Property and the
goodwill of the NETGEAR Business associated with the Transferred Trademarks, and
any Intellectual Property Rights owned by NNNAI in the Other Marks and the
goodwill of the NETGEAR Business associated with the Other Marks; and

                                       4
<PAGE>   5
     (e)  Transferable Software Licenses. The Transferable Software Licenses
listed in Exhibit L.

     Section 2.02. Excluded Assets. The following assets (the "Excluded Assets")
are specifically excluded from the NETGEAR Assets and any contribution or
acquisition pursuant to this Agreement, whether or not they would otherwise be
included in the NETGEAR Assets:

     (a)  Excluded Contracts. Any and all agreements between NNNAI and the NNNAI
Employees (whether or not they subsequently become the NETGEAR Employees),
except as otherwise provided in Section 4.03, and any agreements primarily of
general application to NNNAI and it Affiliates from which the NETGEAR Business
has benefited, not listed on Exhibit C;

     (b)  Excluded Intellectual Property. Any and all (i) Licensed Intellectual
Property, (which are hereby excluded from NETGEAR Assets, but which are licensed
to NETGEAR under the IP Agreement and governed by the terms thereof), (ii)
Excluded Intellectual Property, and (iii) rights in any computer software other
than the Transferable Software Licenses and the Transferred Intellectual
Property; and

     (c)  All Other Assets. All other technology, real property, personal
property, agreements and all other assets owned, leased or otherwise possessed
by NNNAI and/or its Affiliates, whether or not related to the NETGEAR Business,
that are not listed in Section 2.01 as NETGEAR Assets, including without
limitation, all copies of NNNAI personnel, benefits, medical and payroll
records concerning the NNNAI Employees (whether or not they become the NETGEAR
Employees).

     Section 2.03. Assignment of Contracts. Nothing in this Agreement shall be
construed as an attempt to assign to NETGEAR any Assumed Contract that, as a
matter of law or by its terms, is not assignable without the consent of any
other party or parties, including any Assumed Contracts that do not permit a
change of control of the NETGEAR Business such as that resulting from the
consummation of the transactions provided for in this Agreement and other
agreements executed by the Parties as of the date hereof, unless such consent
has been obtained by NETGEAR in writing and a copy of such consent has been
delivered to NNNAI. NNNAI shall provide reasonable assistance to NETGEAR in its
efforts to obtain such consents.

                                  ARTICLE III
                              ASSUMED LIABILITIES

     Section 3.01. Assumption of Liabilities by NETGEAR. Subject to the terms
and conditions hereof, NETGEAR hereby assumes and agrees to pay and discharge
all liabilities, costs or obligations arising on or after the Effective Date
that are related to or arise under or in connection with the NETGEAR Assets, the
NETGEAR Products and/or the NETGEAR Business, and certain other liabilities as
set forth in this Section 3.01, (collectively, the "Assumed Liabilities"), as
and when the same become due and payable and performance is required thereunder,
including, without limitation the following, but only insofar as the events that
give rise to such liability occur on or after the Effective Date:

     (a)  any and all liabilities and obligations of any nature whatsoever,
whether fixed or contingent, that arise from or relate to the ownership,
manufacture, sale or use of the NETGEAR Assets or the NETGEAR Products,
including, but not limited to, product liability, tort liability, intellectual
property and warranty claims with respect to NETGEAR Products sold or services
rendered on or after the Effective Date, and any liability for violations of
statutes or breach of contract (including without limitation claims relating to
Assumed Contracts);

                                       5
<PAGE>   6
     (b)  any and all liabilities and obligations of any nature whatsoever,
whether fixed or contingent, that arise from or relate to the business and
operations of NETGEAR;

     (c)  all taxes (including without limitation deferred taxes) arising from
the conduct of the NETGEAR Business, including personal property tax liability
attributable to the NETGEAR Assets (except as otherwise provided in Section
3.02 hereof);

     (d)  NETGEAR'S Employment Liabilities (except as otherwise provided in
Section 4.06 hereof);

     (e)  any liability relating to the bulk sales or bulk transfer law of any
jurisdiction, except any liability payable in connection with the transactions
contemplated hereunder or under the IP Agreement; and

     (f)  any statutory liens on the NETGEAR Assets.

     (g)  All accounts payable and accrued expenses of NETGEAR as of the
Effective Date including but not limited to any inter-company accounts payable
to NNNAI.

     Section 3.02.  Liabilities Not Assumed. Except as otherwise provided in
Article IV or Article IX hereof, or pursuant to any other written agreement
between NETGEAR and NNNAI and/or its Affiliates, NETGEAR does not and shall not
assume or agree to pay or discharge (i) any liability, cost or obligation where
the events that gave rise to such liability occurred prior to the Effective
Date, notwithstanding that such liability, cost or obligation may arise under
or in connection with the NETGEAR Assets, the NETGEAR Products and/or the
NETGEAR Business, and regardless of whether or not such liability, cost or
obligation is recognized as a liability on any books of account, is absolute or
contingent or measurable, or (ii) any sales, transfer and/or documentary taxes,
if any, payable in connection with the asset transfer contemplated hereunder or
under the IP Agreement ("Retained Liabilities"). The Retained Liabilities
include, without limitation, income tax liabilities and trade payables related
to the NETGEAR Business, the NETGEAR Products and the NETGEAR Assets incurred
prior to the Effective Date.

                                   ARTICLE IV
                                   EMPLOYEES

     Section 4.01.  NETGEAR Employees. Except as otherwise provided in Section
4.02, NETGEAR affirms that, that no less than seven (7) calendar days prior to
the Effective Date, it made an offer of full time employment, as a sole employer
or joint employer with a third party acceptable to NNNAI, to all of the NNNAI
United States Employees by means of an offer letter, the form of which has been
approved by NNNAI, upon terms and conditions reasonably acceptable to NNNAI.
NETGEAR covenants and agrees that it, either solely or jointly with such third
party, shall employ all NNNAI Employees who have accepted and satisfied those
conditions set forth in such offer of employment, as of 12:00 a.m. on the day
following the Effective Date, upon terms and conditions reasonably acceptable to
NNNAI.

     Section 4.02  NNNAI Employees on Leave and on Loan. Notwithstanding
anything contained in Section 4.01 to the contrary, NETGEAR'S obligations with
respect to the offer of employment to, and employment of, the NNNAI Employees
receiving NNNAI's short-term or long-term disability benefits, on an
NNNAI-approved leave of absence or providing services under the Loaned Employee
Agreements as of the Effective Date, are as follows:

                                       6

<PAGE>   7
     (a)  Employees Receiving Short-Term Disability Benefits.  Any of the NNNAI
Employees who, as of the Effective Date, are receiving benefits under the
Nortel Networks Inc. Short-Term Disability Plan ("STD Benefits"), shall be
offered full time employment by NETGEAR, as a sole employer or joint employer
with a third party reasonably acceptable to NNNAI, as provided in this Section
4.02(a), and shall be employed by NETGEAR, either solely or jointly with such
third party, at the time such disability benefits terminate, provided that such
employees are released to return to work with accommodations, if any, which can
be reasonably implemented by NETGEAR, prior to the commencement of long-term
disability benefits under the Nortel Networks, Inc. Long-Term Disability Plan
("LTD Benefits"), and such employees have satisfied the conditions set forth in
NETGEAR's offer of employment. No later than the day immediately following the
Effective Date, NETGEAR shall offer such NNNAI Employees employment by means of
an offer letter that is reasonably acceptable to NNNAI. NETGEAR shall have no
responsibility or liability for payment of any STD Benefits of any such NNNAI
Employees prior to their employment by NETGEAR in accordance with this Section
4.02(a). If any of such NNNAI Employees become NETGEAR Employees, the other
provisions of this Article IV shall apply to such NETGEAR Employee.

     (b)  Employees Receiving Long-Term Disability Benefits.  NETGEAR shall
have no obligation under Section 4.01 to offer employment to or to employ any
of the NNNAI Employees who, as of the Effective Date, are receiving LTD
Benefits, or to employ any of the NNNAI Employees who are receiving STD
Benefits as of the Effective Date and proceed to receive LTD Benefits prior to
being released to return to work.

     (c)  Employees on Other NNNAI-Approved Leaves.  Any of the NNNAI Employees
who, as of the Effective Date, are on leave from employment under NNNAI's
Family Care, Medical, Personal or Military Leave policies, but are not
receiving STD Benefits or LTD Benefits, shall be offered employment by NETGEAR,
as a sole employer or joint employer with a third party reasonably acceptable
to NNNAI, as provided in this Section 4.02(c), and be employed by NETGEAR,
either solely or jointly with such third party, at the time such leave
terminates and such employees have satisfied the conditions set forth in
NETGEAR's offer of employment, provided, however, that Netgear's obligation to
offer employment will not extend to such employees who have already notified
NNNA of their intention to resign at the end of their leave prior to the
Effective Date. No later than the day following the Effective Date, NETGEAR
shall offer such NNNAI Employees employment as provided in this Section 4.02(c)
by means of an offer letter that is reasonably acceptable to NNNAI. If any of
such NNNAI Employees become NETGEAR Employees, the other provisions of this
Article IV shall apply to such NETGEAR Employees.

     (d)  Employees on Loan.  Any of the NNNAI Employees who, immediately upon
the Effective Date, are supplying  services to NETGEAR pursuant to the Loaned
Employee Agreements, shall be offered employment by NETGEAR (as sole employer
or joint employer with a third party reasonably acceptable to NNNAI) and be
employed by NETGEAR (either solely or jointly with such third party) at the
time that such employees cease to supply services under the Loaned Employee
Agreements, provided that (i) such services ceased for the purpose of such
employees commencing employment with NETGEAR and (ii) such employees have
satisfied the conditions set forth in NETGEAR's offer of employment. NETGEAR
shall offer, or in the case of European based employees, transfer such NNNAI
Employees employment as provided in this Section 4.02(d) by means of an offer
letter or in the case of European based employees by means of a notice of
"transfer of undertaking" reasonably acceptable to NNNAI, to be delivered at a
time determined by NNNAI. If any of such NNNAI Employees become NETGEAR
Employees, the other provisions of this Article IV shall apply to such NETGEAR
Employees. If any of such NNNAI Employees are receiving STD Benefits or on a
leave of absence, as described in Section 4.02(a) and (c) respectively, when
such employee's employment with NETGEAR pursuant to this Section 4.02(d) is
scheduled to commence, the provisions of

                                       7

<PAGE>   8
Section 4.02(a) or (c), as applicable, shall apply to such employee, unless
otherwise prohibited by local law.

     Section 4.03. No Solicitation of Employment.

     (a)  No Solicitation by NNNAI. Unless otherwise agreed by NETGEAR, during
the twelve (12) month period immediately following the Effective Date (the "No
Solicitation Period"), neither NNNAI nor its Affiliates (other than NETGEAR)
shall solicit for employment or hire any NETGEAR Employees who continue to be
employed by NETGEAR or who have voluntarily terminated their employment with
NETGEAR during the No Solicitation Period; provided, however, that nothing in
this sub-section (a) shall prevent NNNAI or its Affiliates (other than NETGEAR)
from (i) conducting generalized employment searches, by advertisements,
engaging firms to conduct searches, or by other means ("Generalized Searches"),
that are not focused on NETGEAR Employees or (ii) hiring any current or former
NETGEAR Employees identified through such Generalized Searches.

     (b)  No Solicitation by NETGEAR. Unless otherwise agreed to by NNNAI,
during the No Solicitation Period, NETGEAR shall not solicit for employment or
hire any employees of NNNAI or its Affiliates or former employees who
voluntarily terminate their employment with NNNAI or its Affiliates during the
No Solicitation Period; provided, however, that nothing in this sub-section (b)
shall prevent NETGEAR from (i) conducting Generalized Searches that are not
focused on employees of NNNAI or its Affiliates or (ii) hiring current or
former employees of NNNAI or its Affiliates identified through such Generalized
Searches.

     Section 4.04. Employment Matters Liabilities and Indemnification.

     (a)  NNNAI's Employment Liabilities. Except as otherwise provided in
the Loaned Employee Agreements or Section 4.04(b) hereof, NNNAI shall be liable
for any and all liabilities and obligations of any nature whatsoever, whether
fixed or contingent, known or unknown, with respect to any NETGEAR Employee,
that exist or accrue prior to such employee's NETGEAR Hire Date and relate to
NNNAI's employment or termination of employment of such employee, including
without limitation, such liabilities and obligations with respect to wages,
bonuses, workers compensation and benefits (collectively, "NNNAI's Employment
Liabilities").

     (b)  NETGEAR'S Employment Liabilities. NETGEAR shall be liable for any and
all liabilities and obligations of any nature whatsoever, whether fixed or
contingent, known or unknown, that exist or accrue on or after the Effective
Date and relate to NETGEAR'S: (A) offer of employment to, or failure to offer
employment to, any NNNAI Employee in accordance with the terms of this
Agreement, or (B) utilization of NNNAI's employees, agents or representatives to
generate, assemble or deliver material related to NETGEAR'S employment offer
pursuant to Section 4.01 or 4.02 or (C) with respect to any NETGEAR Employee, on
or after such employee's NETGEAR Hire Date and relate to NETGEAR'S employment or
termination of employment of such employee, including without limitation, such
liabilities and obligations with respect to wages, bonuses, workers compensation
and benefits (collectively, "NETGEAR'S Employment Liabilities").

                                  ARTICLE V
                                CONSIDERATION

     Section 5.01. Consideration. The consideration for the NETGEAR Assets and
the Licensed Intellectual Property shall be paid and satisfied in full by the
assumption by NETGEAR of the Assumed Liabilities.

                                       8

<PAGE>   9
                                   ARTICLE VI
                                    TRANSFER

         Section 6.01. Transfer of NETGEAR Assets; Risk of Loss. The transfer
of the NETGEAR Assets shall take place on the Effective Date. All risk of loss
or damage with respect to the NETGEAR Assets shall be borne by NNNAI until
11:59 p.m. eastern daylight time on the day before the Effective Date, and
thereafter shall be borne by NETGEAR.

         Section 6.02. Deletion of Non-Transferable Software. NETGEAR agrees
that, following the Effective Date, it will (i) not use, and shall cause each
of its Affiliates to not use, software loaded on the NETGEAR Assets as of the
Effective Date other than software specifically transferred or licensed under
this Contribution Agreement or the IP Agreement ("Unlicensed Software"); and
(ii) as soon as reasonably practical and in any event no later than sixty (60)
days following the Effective Date, delete or cause to be deleted all Unlicensed
Software.

                                  ARTICLE VII
                         REPRESENTATIONS AND WARRANTIES

         Section 7.01. Limited Representations and Warranties of NNNAI.

         (a)      Recognizing that, immediately prior to the Effective Date,
the officers of NETGEAR and the NETGEAR Employees were employees of NNNAI, and
that some of the officers and employees of NETGEAR operated the NETGEAR
Business immediately prior to the Effective Date, and are familiar with and
have been involved with the creation of the NETGEAR Assets and the NETGEAR
Products for NNNAI, NETGEAR hereby acknowledges that, except as expressly set
forth herein, the NETGEAR Assets are being transferred by NNNAI under this
Agreement "AS IS" AND "WHERE IS" WITHOUT ANY REPRESENTATIONS, WARRANTIES OR
CONDITIONS INCLUDING, WITHOUT LIMITATION, ANY EXPRESS OR IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT.

         (b)      Notwithstanding the foregoing, NNNAI hereby represents and
                  warrants to NETGEAR that:

                  (i)      Due Authorization. The transactions provided for
                           under this Agreement have been duly authorized and
                           approved by NNNAI and this Agreement has been duly
                           executed and delivered by NNNAI;

                  (ii)     Assumed Contracts in Good Standing. NNNAI has
                           performed in all material respects the obligations
                           required to be performed by it under each Assumed
                           Contract as it relates to the NETGEAR Business
                           contributed by NNNAI;

                  (iii)    Good Title. NNNAI is transferring to NETGEAR good and
                           valid title to the furniture, fixtures, inventory and
                           equipment listed in Exhibit D, free and clear of all
                           title defects, objections or other encumbrances,
                           except (A) minor imperfections of title, if any, none
                           of which is substantial in amount or materially
                           impairs the use of the property subject thereto, that
                           have arisen in the ordinary course of business
                           consistent with past practice, (B) liens for current
                           taxes not yet due, and (C) software incorporated
                           therein;

                                       9

<PAGE>   10
          (iv)   Completeness of Assets. The NETGEAR Assets include all leases,
                 contracts, furniture, fixtures, inventory and equipment used by
                 NNNAI in the operation of the NETGEAR Business prior to the
                 Effective Date, except for the Excluded Assets.

          (v)    Employees and Labor Matters. NNNAI has paid in full, or shall
                 pay in full when due, all salaries and other compensation for
                 all services performed by each NETGEAR Employee that has
                 accrued on or prior to such employee's NETGEAR Hire Date;

          (vi)   NNNAI's Employee Plans. All of NNNAI's Employee Plans are in
                 compliance in all material respects with requirements
                 prescribed by all applicable laws. NNNAI has performed all
                 material obligations required to be performed by it under all
                 of its Employee Plans. There is not, to NNNAI's knowledge, any
                 material written claim or dispute in respect of any of NNNAI's
                 Employee Plans;

          (vii)  Litigation. There is no action, suit or proceeding, or
                 governmental inquiry or investigation, pending, or, to NNNAI's
                 Knowledge, any threat thereof, against NETGEAR, that questions
                 the validity of this Agreement or the right of NETGEAR or NNNAI
                 to enter into it, or that might have, either individually or in
                 the aggregate, a Company Material Adverse Effect, nor is there
                 any litigation pending, or, to NNNAI's Knowledge, any threat
                 thereof, against NNNAI or NETGEAR by reason of the proposed
                 activities of NETGEAR or negotiations by NETGEAR and/or NNNAI
                 or NNNAI with possible investors in NETGEAR. NETGEAR is not
                 subject to any outstanding judgement, order or decree;

          (viii) Financial Statements. Set forth as Exhibit K hereto is a
                 complete and correct copy of the income statements, statements
                 of assets and liabilities and statements of cash flows
                 (audited) of the NETGEAR Business as of and for the fiscal
                 years ended December 31, 1996, 1997 and 1998 (the "Financial
                 Statements"). Such Financial Statements include the assets,
                 liabilities, revenues and expenses that were directly related
                 to the NETGEAR Business, including expenses charged to the
                 NETGEAR Business by NNNAI. Except as set forth on Exhibit K,
                 the Financial Statements have been prepared in accordance with
                 United States generally accepted accounting principles ("GAAP")
                 consistently applied, are complete and correct and present
                 fairly the financial condition and results of operations of the
                 NETGEAR Business;

          (ix)   Taxes. Except as set forth on Exhibit L, NETGEAR has not been
                 required to file any federal, state, county, local or foreign
                 tax returns, and any returns prepared by it or on its behalf
                 are true and correct and all taxes have been timely paid with
                 exceptions not material to NETGEAR. NETGEAR has had no
                 employees prior to the NETGEAR Hire Date. Neither NETGEAR nor
                 any of its stockholders has ever filed (a) an election pursuant
                 to Section 1362 of the Internal Revenue Code of 1986, as
                 amended (the "Code"), that NETGEAR be taxed as an S Corporation
                 or (b) consent pursuant to Section 341(f) of the Code relating
                 to collapsible

                                       10
<PAGE>   11
                 corporations. With respect to any tax periods ending prior to
                 the date hereof, NETGEAR is, and at all times has been, a
                 member of the NNNAI-affiliated group (the "Affiliated Group")
                 for Federal income tax purposes, and NETGEAR has no liability
                 for any Federal, state or other tax liability asserted by the
                 Internal Revenue Service or any other competent taxing
                 authority or jurisdiction resulting from membership in the
                 Affiliated Group or the preparation of the Affiliated Group's
                 consolidated Federal income tax returns or otherwise;

          (x)    Environmental Matters. There is no pending or, to the Knowledge
                 of NNNAI, threatened civil or criminal litigation, written
                 notice of violation, formal administrative proceeding, or
                 investigation, inquiry or information request by any
                 governmental entity, relating to environmental matters
                 involving NETGEAR, including without limitation those arising
                 under the Resource Conservation and Recovery Act, the
                 Comprehensive Environmental Response, Compensation and
                 Liability Act of 1980, as amended, the Superfund Amendments and
                 Reauthorization Act of 1986, the Federal Clean Water Act, the
                 Federal Clean Air Act, the Toxic Substances Control Act, or any
                 state or local statute, regulation, ordinance, order or decree
                 relating to health, safety or the environment, which violation
                 would have a Company Material Adverse Effect;

          (xi)   Year 2000 Compliance. NNNAI represents and warrants that the
                 NETGEAR Products, as they exist as of the Effective Date shall
                 function, during the warranty period for such products, without
                 any material, date-related service-affecting nonconformance to
                 the applicable specifications; and

          (xii)  Disclosures. Neither this Agreement nor any Exhibit hereto, nor
                 any report, certificate or instrument furnished to NETGEAR or
                 its counsel in connection with the transactions contemplated by
                 this Agreement, when read together, contains any untrue
                 statement of a material fact or omits to state a material fact
                 necessary in order to make the statements contained herein or
                 therein, in light of the circumstances under which they were
                 made, not misleading.

     Section 7.02. Limited Representations and Warranties of NNNAI Relating to
Intellectual Property. NNNAI hereby represents and warrants to NETGEAR that:

     (a)  Intellectual Property Rights. NNNAI owns the Transferred Intellectual
Property, NNC owns the Licensed Intellectual Property, NNNAI has the right and
ability to transfer, assign and grant the rights conveyed under this Agreement
and NNC has the right and ability to grant the licenses under the IP Agreement;

     (b)  except for the Intellectual Property Rights relating to (i)
Components, (ii) the Third Party Licenses, (iii) the Transferable Software
Licenses, and (iv) the Excluded Intellectual Property, to its Knowledge the
Transferred Intellectual Property and the Licensed Intellectual Property
comprise all Intellectual Property Rights that are material to the NETGEAR
Business as conducted as of the Effective Date;

                                       11
<PAGE>   12
     (c) except for the Patent Cross Licenses, the Third Party Licenses, the
Product Licenses, Transferable Software Licenses, and employment agreements, to
its Knowledge there is no other written agreement relating to the Transferred
Intellectual Property that is material to the NETGEAR Business;

     (d) except as disclosed on Exhibit F, it has no Knowledge of any claims
that have been made during the past two (2) years that the conduct of the
NETGEAR Business infringes any Intellectual Property Right of any third person,
and to its Knowledge, no such claims are threatened;

     (e) except as disclosed on Exhibit F, it has no Knowledge that the NETGEAR
Business, as conducted as of the Effective Date, infringes or misappropriates
any Intellectual Property Right of any third person;

     (f) except as disclosed on Exhibit F, it has no Knowledge of any claims,
suits or actions against NETGEAR relating to the ownership, licensing or
enforceability of the Transferred Intellectual Property or the Licensed
Intellectual Property, and no such claims, suits or actions are threatened; and

     (g) it is NNNAI's practice to obtain assignments of Intellectual Property
Rights from third parties who have participated in the creation of Intellectual
Property used in the NETGEAR Business, and to its Knowledge such assignments
were obtained from all third parties who participated in the creation of all
Transferred Intellectual Property.

     Section 7.03. Survival of Obligations. The representations and warranties
made by each Party in this Article VII shall continue in full force and effect
for the benefit of the other Parties for a period of eighteen (18) months from
and including the Effective Date, after which time each Party is released from
all obligations and liabilities hereunder in respect of such representations
and warranties, except with respect to claims made by any Party in writing
prior to the expiration of such period; provided, however, that Section
7.01(b)(viii), Taxes, shall continue in full force and effect for the benefit
of NETGEAR for a period of six (6) months beyond the statute of limitation
applicable to such tax.

                                  ARTICLE VIII
                             CONDITIONS OF CLOSING

     Section 8.01. Conditions Precedent to NNNAI's Obligations. NNNAI's
obligations under this Agreement are subject to the satisfaction, as of the
Effective Date, of the following condition, unless waived by NNNAI in writing:

     The full assumption by NETGEAR of the Assumed Liabilities as consideration
for the NETGEAR Assets and the Licensed Intellectual Property pursuant to
Section 5.01.

                                   ARTICLE IX
                                INDEMNIFICATION

     Section 9.01. Indemnification by NNNAI. Subject to the provisions of this
Article IX and Section 11.10 hereof, NNNAI hereby agrees to pay and indemnify
fully, hold harmless and defend NETGEAR and its agents, directors, officers,
partners, employees, servants, consultants, representatives, successors and
assigns, from and against any and all damages, losses,

                                       12

<PAGE>   13
deficiencies, liabilities, costs and expenses (including, without limitation,
reasonable attorneys' fees and expenses) that result from, relate to or arise
out of any and all actions, suits, proceedings, claims, demands, judgments or
assessments or legal, administrative, arbitration, governmental or other
proceedings or investigations (whether based on negligent acts or omissions,
statutory liability, strict liability or otherwise) arising out of, relating to
or based upon allegations of:

     (a)  any inaccuracy or breach of any representation or warranty, or any
nonfulfillment of any covenant or agreement of NNNAI contained in this Agreement
or the IP Agreement, as applicable;

     (b)  any Retained Liability;

     (c)  any of NNNAI's Employment Liabilities; or

     (d)  any and all actions, suits, proceedings, claims, demands, judgments,
assessments, reasonable costs and expenses, incurred in investigating or
attempting to avoid the foregoing or in enforcing this indemnity.

     Section 9.02. Indemnification by NETGEAR. From and after the Effective
Date, subject to the provisions of this Article IX and Section 11.10 hereof,
NETGEAR agrees to pay and indemnify fully, hold harmless and defend NNNAI and
its Affiliates, agents, directors, officers, partners, employees, servants,
consultants, representatives, successors and assigns, from and against any and
all damages, losses, deficiencies, liabilities, costs and expenses (including,
without limitation, reasonable attorneys' fees and expenses) that result from,
relate to or arise out of any and all actions, suits, proceedings, claims,
demands, judgments or assessments or legal, administrative, arbitration,
governmental or other proceedings or investigations (whether based on negligent
acts or omissions, statutory liability, strict liability or otherwise) arising
out of, relating to or based upon allegations of:

     (a)  any non-fulfillment of any covenant or agreement of NETGEAR contained
in this Agreement or the IP Agreement, as applicable;

     (b)  any Assumed Liability;

     (c)  any of NETGEAR'S Employment Liabilities; or

     (d)  any and all actions, suits, proceedings, claims, demands, judgments,
assessments, reasonable costs and expenses, incurred in investigating or
attempting to avoid the foregoing or in enforcing this indemnity.

     Section 9.03. Method of Asserting Claims. The indemnified party
("Indemnitee") shall provide the indemnifying party ("Indemnitor") prompt notice
in writing upon the Indemnitee becoming aware of any action, suit, proceeding,
claim, demand, judgment or assessment for which the Indemnitor would be liable
pursuant to Section 9.01 or Section 9.02 (a "Claim"), provided, however, that
any failure to give such prompt notice shall not relieve the Indemnitor of its
obligations hereunder. Indemnitor shall provide, at its sole cost and expense,
for the defense of the Claim with legal counsel reasonably acceptable to
Indemnitee. In addition, Indemnitee shall cooperate with Indemnitor, at
Indemnitor's expense, in the defense or settlement of the Claim. Neither
Indemnitee nor Indemnitor shall compromise or settle a Claim without the other
party's prior written consent, which consent shall not be unreasonably withheld.
Indemnitee may participate in the defense of a claim at its own expense.
Notwithstanding the foregoing, if Indemnitee, in its reasonable discretion,
determines that Indemnitor is not vigorously defending

                                       13
<PAGE>   14
the Claim, Indemnitee may hire additional legal counsel, at the sole cost and
expense of Indemnitor, to assume the defense of the Claim.

     Section 9.04.  Coordination of Indemnification Rights.

     (a)  Indemnification Independent Right. Each right of a person to be
indemnified, defended and/or held harmless pursuant to this Article IX is
independent of such person's rights pursuant to any other Section of this
Agreement and shall not be affected or limited in any way by any event or
circumstance unless this Article IX expressly provides that such event or
circumstance shall affect or limit such right of such person, regardless of
whether or not such event or circumstance affects or limits any other right of
such person or any right of any other person under this Article IX.

     (b)  Right of Subrogation. In the event that an Indemnitee has a right of
recovery against any third party with respect to any damages in connection with
which a payment is made to such Indemnitee by an Indemnitor, then (i) such
Indemnitor shall, to the extent of such payment, be subrogated to all of the
rights of recovery of Indemnitee against such third party with respect to such
damages and (ii) Indemnitee shall execute all papers required and take all
action necessary to secure such rights, including, but not limited to, the
execution of such documents as are necessary to enable such Indemnitor to bring
suit to enforce such rights.

     Section 9.05.  Limitation of Liability for Consequential Damages. Except
as expressly provided in this Section 9.05, neither Party (including their
Subsidiaries, Affiliates, shareholders, officers, contractors, directors,
employees and agents) shall be liable for any special, indirect, incidental or
consequential damages of any kind, including without limitation, damages
arising from lost business, lost savings, lost data or lost profits, regardless
of the cause and whether arising in contract (including fundamental breach),
tort (including negligence), or otherwise, even if such party has been advised
of the possibility of such damages.

     The foregoing exclusion of liability shall not apply where such damages
arise out of or in connection with (i) an allegation that any NETGEAR Product
or Improvement thereto infringes or violates any Intellectual Property Right of
a third party, to the extent that such damages are payable to a third party, or
(ii) disclosure of any Confidential Information, provided that:

     (a)  the Indemnitee permits the Indemnitor to have complete carriage and
          control of the defense of the claim;

     (b)  the Indemnitee cooperates fully with the Indemnitor in all aspects of
          the defense against the claim;

     (c)  such damages are either actual damages finally awarded by a court of
          competent jurisdiction, or constitute a settlement approved in
          writing by the Indemnitor;

     (d)  the Indemnitor shall not be liable for any portion of such damages
          arising from willful infringement by any party or constituting treble
          damages (except that an Indemnitor shall be liable for damages
          resulting from its own willful infringement);

     (e)  the Indemnitee promptly pays all damages other than those for which
          the Indemnitor is responsible in accordance with the provisions of
          this Article IX; and

     (f)  where the claim relates to a NETGEAR Product or Improvement as
          described at (i) above, provided additionally that:

                                       14
<PAGE>   15
           (1) the Indemnitee modifies the NETGEAR Product or Improvement
           thereto within a reasonable time so as to avoid the allegation of
           infringement or violation of Intellectual Property Rights, if
           requested to do so by the Indemnitor; and

           (2) the NETGEAR Product or Improvement thereto has not been modified
           by any party after the Effective Date (A) so as to be a combination
           of a NETGEAR Product or Improvement thereto, with other hardware or
           software not constituting a NETGEAR Product or Improvement thereto,
           where such infringement or violation would not have arisen from the
           use of such NETGEAR Product or Improvement thereto or portion thereof
           standing alone; (B) in such a manner that the claim of infringement
           or violation of Intellectual Property Rights would not have occurred
           but for such modification, or (C) to be used in a manner or for a
           purpose not contemplated as of the Effective Date.

     Section 9.06. Overall Limitation of Liability of NNNAI under this
Contribution Agreement. Notwithstanding anything herein to the contrary, the
combined, cumulative liability of NNNAI under this Agreement shall not exceed an
amount equal to Two Million US Dollars (US$2,000,000)(the "Overall Indemnity
Cap").

                                   ARTICLE X
                              CONTINUING COVENANTS

     Section 10.01. Further Assurance and Cooperation. The parties shall from
time to time and at all times hereafter make, do and execute or cause and
procure to be made, done and executed all such further acts, deeds, conveyances,
consents and assurances as may be required to carry out the transfer of the
NETGEAR Assets, the Transferred Intellectual Property, and assumption of the
Assumed Liabilities contemplated under this Agreement, including without
limitation, appropriate assignments (notarized if required) for filing with any
relevant government body or agency. If the parties agree that an asset that was
intended by both of them to be an NETGEAR Asset as defined herein was
inadvertently not listed on Exhibit C or Exhibit D hereto, the parties shall
take such actions as may be required to properly convey such asset to NETGEAR
hereunder, including without limitation execution of an amendment to this
Agreement pursuant to Section 11.03 hereof to amend the schedules hereto.

     Section 10.02. Future Advertising and Sales Activities. NETGEAR shall
identify itself as the owner of the NETGEAR Assets, and, as of the Effective
Date, shall use the trade names and trademarks of NNNAI only as permitted
pursuant to Article 8 of the IP Agreement.

     Section 10.03. Provision of Information to NNNAI. For so long as NNNAI owns
at least fifty percent (50%) of the outstanding capital stock of NETGEAR
(assuming conversion of any preferred shares), NETGEAR shall provide to the
appropriate officers of NNNAI any information, financial or otherwise,
reasonably requested by NNNAI (provided, however, that NETGEAR may require that
NNNAI execute non-compete and non-disclosure agreements relating to any such
information).

     Section 10.04. Confidential Information. 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, 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, NNNAI users and third party sub licensees who need to obtain

                                       15
<PAGE>   16
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. Neither Party shall be
bound by any obligation restricting the disclosure and use of Confidential
Information set forth in this Agreement, that:

     (a)  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

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

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

     (d)  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; or

     (e)  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

     (f)  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; or

     (g)  is disclosed in connection with a registration of securities of
          NETGEAR with the Securities and Exchange Commission.

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 XI
                                 MISCELLANEOUS

     Section 11.01. Notices. All notices, requests, consents, and other
communications under this Agreement shall be in writing and shall be deemed
delivered (i) two business days after being sent by registered or certified
mail, return receipt requested, postage prepaid or (ii) one business day after
being sent via a reputable nationwide overnight courier service guaranteeing
next business day delivery, in each case to the intended recipient as set forth
below:

                                       16
<PAGE>   17
     If to NETGEAR, at 4401 Great America Parkway, MS: SC1-06, Santa Clara, CA
95052, Attention: President, or at such other address or addresses as may have
been furnished in writing by NETGEAR to the other Parties hereto, with a copy to
Stephanie Brecher-Seigal; or

     If to NNNAI, at 4401 Great America Parkway, MS: SC1-03, Santa Clara, CA
95052, Attention, Attention: Vice-President, Mergers & Acquisitions, or at such
other address or addresses as may have been furnished to the other parties
hereto in writing by NNNAI, with a copy to the Law Department at the same
address; or

     Any party may give any notice, request, consent or other communication
under this Agreement using any other means (including, without limitation,
personal delivery, messenger service, telecopy, first class mail or electronic
mail), but no such notice, request, consent or other communication shall be
deemed to have been duly given unless and until it is actually received by the
party for whom it is intended. Any party may change the address to which
notices, requests, consents or other communications hereunder are to be
delivered by giving the other parties notice in the manner set forth in this
Section.

     Section 11.02.  Entire Agreement.  This Agreement and the IP Agreement
embody the complete Agreement and understanding of NETGEAR and NNNAI with
respect to the subject matter hereof and thereof. This Agreement supersedes all
prior agreements and understandings among the parties hereto with respect to the
subject matter hereof.

     Section 11.03.  Modification.  No change or modification of this Agreement
shall be of any force unless such change or modification is in writing and has
been signed by the duly authorized representatives of the parties hereto.

     Section 11.04.  Waivers.  No waiver of any breach of any of the terms of
this Agreement shall be effective unless such waiver is in writing and signed by
the party against which such waiver is claimed. No waiver of any breach shall be
deemed to be a waiver of any other or subsequent breach.

     Section 11.05.  Severability.  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.

     Section 11.06.  Governing Law.  This Agreement shall be governed by and be
construed in accordance with the laws of the State of California, without regard
to principles of conflict of laws.

     Section 11.07.  Waiver of Jury Trial.  THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

     Section 11.08.  Limitation on Rights of Others.  No person other than a
party hereto shall have any legal or equitable right, remedy or claim under or
in respect of this Agreement.

     Section 11.09.  Successors and Assigns.  This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns.

                                       17
<PAGE>   18
     Section 11.10. Legal Fees. If either party is required to take any action
to enforce its rights under this Agreement, the prevailing party shall be
entitled to its reasonable expenses, including attorneys' fees, incurred in
connection with such action.

                                       18

<PAGE>   19
     IN WITNESS HEREOF, the parties hereto have duly executed this Agreement as
of the Effective Date.

NORTEL NETWORKS NA INC.                 NETGEAR INC.

By:    /s/ Rick Tallman                 By:   /s/ Patrick Lo
       -------------------                    ---------------

Name:  Rick Tallman                     Name: Patrick Lo
       -------------------                    ---------------

Title: Assistant Secretary              Title: CEO
       -------------------                    ---------------

                                       19

<PAGE>   20
                                   EXHIBIT A

                     NORTEL NETWORKS' PATENT CROSS-LICENSES

The following is a list of material Nortel Networks' patent cross-licenses.
Captured material is all patents and applications (in all countries) owned or
controlled by the Parties and their subsidiaries (at any time) during the
capture period having a filing date before the end of the capture period.

<TABLE>
<CAPTION>
                         DATE OF
COMPANY                  AGREEMENT  CAPTURE PERIOD OR CAPTURED PATENTS                DURATION OF LICENSE
<S>                      <C>        <C>                                               <C>
1.  Alcatel              1-Jan-96   5 yrs from Date of Agreement                      Term of patent
2.  AT&T                 1-Jul-83   5 yrs from Date of Agreement                      Term of patent
3.  Ericsson             1-Dec-93   5 yrs from Date of Agreement                      Term of patent
4.  HP                   1-Jan-94   5 yrs from Date of Agreement                      Term of patent
5.  Hitachi              1-Apr-95   5 yrs from Date of Agreement                      Term of patent
6.  IBM                  1-Jul-90   6 yrs from Date of Agreement                      Term of patent
7.  Lucent               1-Oct-98   all patents issued on filings prior to 1-Jan-98   31-Dec-07
8.  MatraCom             2-Jul-92   Perpetual                                         Term of patent
9.  Matsushita           27-Jun-94  5 yrs from Date of Agreement                      Term of patent
10. Mitsubishi           26-Dec-94  5 yrs from Date of Agreement                      Term of patent
11. Oki                  16-Mar-94  5 yrs from Date of Agreement                      Term of patent
12. Philips              1-Apr-95   10 yrs from Date of Agreement                     Term of patent
13. Sanyo                13-Feb-93  5 yrs from Date of Agreement                      Term of patent
14. Sharp                16-Mar-94  5 yrs from Date of Agreement                      Term of patent
15. Siemens              21-Dec-93  5 yrs from Date of Agreement                      Term of patent
16. Sony                 29-Aug-94  5 yrs from Date of Agreement                      Term of patent
17. Texas Instruments    1-Jan-82   5 yrs from Date of Agreement                      Term of patent
18. Toshiba              23-Mar-94  5 yrs from Date of Agreement                      Term of patent
19. Tellabs Operations   20-Dec-99  all patents issued on filings prior to 1-Jan-00   31-Dec-03
</TABLE>

In addition, the following is a material Nortel Networks' patent cross-license
specifically relating to terminals. Captured material is patents and
applications (in all countries) relating to apparatus, systems and methods for
voice and data terminal equipment owned or controlled by the Parties and their
subsidiaries (at any time) during the capture period having a filing date
before the end of the capture period.

<TABLE>
<CAPTION>
                         DATE OF
COMPANY                  AGREEMENT  CAPTURE PERIOD OR CAPTURED PATENTS                DURATION OF LICENSE
<S>                      <C>        <C>                                               <C>
1. Cidco                 1-Jan-97   5 yrs from Date of Agreement                      Term of patent
</TABLE>

                                       20
<PAGE>   21
                                   EXHIBIT B

                              THIRD-PARTY LICENSES

Third Party Licenses are used in the NETGEAR business associated with 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>
Broadcom            Windows 95/98/NT drivers      Includes license for Broadcom logo.
Ragula  Systems     Internet Sharing software     Based on Fatpipe software. Includes license for Fatpipe logo.
Ragula  Systems     Network Services 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)
Ragula  Systems     Internet Sharing software     Based on Fatpipe software. Includes license for Fatpipe logo.
Ragula  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)
KSLI/AOX            KSLI Embedded drivers         Ethernet drivers for KSLI microchip.
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       21
<PAGE>   22
PR356-56K ANALOG PHONE LINE ROUTER PRODUCT
<TABLE>
<CAPTION>
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 200I
                                            firmware.
--------------------------------------------------------------------------------
</TABLE>

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

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
<TABLE>
<CAPTION>
Vendor            Product                   Notes
--------------------------------------------------------------------------------
<S>              <C>                       <C>
ZyXEL             Hardware and Routing
                  software
ZyXEL             GUI for the RT338 and
                  RT311 products
--------------------------------------------------------------------------------
</TABLE>

ND508/520 NETWORK DISK DRIVE PRODUCTS
<TABLE>
<CAPTION>
Vendor            Product                   Notes
--------------------------------------------------------------------------------
<S>              <C>                       <C>
Realm             Hardware and Routing
Information       software
Technologies
Apache            ApacheWeb
Microsoft         1. 40comupd.exe-
                     upgrades, comct132.dll
                  2. W95ws2setup.exe-
                     upgrade to winsock
                     DLLs
--------------------------------------------------------------------------------
</TABLE>

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

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

FA311/312-10/100MBPS PCI ETHERNET ADAPTER PRODUCTS
<TABLE>
<CAPTION>
Vendor            Product                   Notes
--------------------------------------------------------------------------------
<S>              <C>                       <C>
National          Windows                   Not on Microsoft CD
Semiconductor     95/98/2000/NT/Novell
--------------------------------------------------------------------------------
</TABLE>

                                       22
<PAGE>   23
--------------------------------------------------------------------------------
                    4.x, 5.x and SCO Unix and
                    Linux drivers

Lite-on             Drivers for using the
Communications      National Chipset
--------------------------------------------------------------------------------

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

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

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

EA101 -- USB 10MB ETHERNET ADAPTER PRODUCT
--------------------------------------------------------------------------------
Vendor              Product                Notes
--------------------------------------------------------------------------------
KLSI/AOX            Windows 98/2000drivers Ethernet drivers for KSLI microcchip.
--------------------------------------------------------------------------------

EA201 -- ISA 10MB ETHERNET ADAPTER PRODUCT
--------------------------------------------------------------------------------
Vendor              Product                Notes
--------------------------------------------------------------------------------
D-Link              Windows
                    95/98/2000/NT/Novell
                    client, 3.x, 4.x,
                    5.x and NDIS2 and
                    SCO Unix drivers

--------------------------------------------------------------------------------

                                       23
<PAGE>   24
PRODUCTS UNDER DEVELOPMENT
-------------------------------------------------------------------------------

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

-------------------------------------------------------------------------------

WAXXX - PCI TO WIRELESS 11MB ADAPTER PRODUCT
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vendor           Product                          Notes
------           -------                          -----
<S>              <C>                              <C>
Sharewave        Windows 95/98/NT drivers         Product under development.
</TABLE>

-------------------------------------------------------------------------------

WBXXX - WIRELESS 11MB TO ETHERNET BRIDGE PRODUCT
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vendor           Product                          Notes
------           -------                          -----
<S>              <C>                              <C>
Sharewave        Windows 95/98/NT drivers         Product under development.
</TABLE>

-------------------------------------------------------------------------------

WAXXX - PCMCIA TO WIRELESS 11MB ADAPTER PRODUCT
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Vendor           Product                          Notes
------           -------                          -----
<S>              <C>                              <C>
Sharewave        Windows 95/98/NT drivers         Product under development.
</TABLE>

-------------------------------------------------------------------------------

RD381 - ADSL (G.LITE) INTEGRATED DSL ROUTER AND FULL RATE ADSL ROUTER.
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Vendor           Product                          Notes
------           -------                          -----
<S>              <C>                              <C>
ZyXEL            Hardware and Routing software    Product under development.
ZyXEL            GUI for the products.
</TABLE>
--------------------------------------------------------------------------------

RT3XX - FIREWALL ROUTER PRODUCT
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vendor           Product                          Notes
------           -------                          -----
<S>              <C>                              <C>
ZyXEL            Hardware and Routing software    Product under development.
ZyXEL            GUI for the products.
</TABLE>
--------------------------------------------------------------------------------

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

PS1XX 3 PORT AND 1 PORT PRINT SERVER PRODUCT
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vendor           Product                          Notes
------           -------                          -----
<S>              <C>                              <C>
Sercomm          Hardware and Routing software    Product under development
</TABLE>
-------------------------------------------------------------------------------

                                       24

<PAGE>   25
ADDITIONAL 3RD PARTY SOFTWARE IS CURRENTLY USED BY NETGEAR EMPLOYEES 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 Codewright 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
   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
   VISO CORP.                    VISIO PROF. V5.0

USED IN OPERATIONS SUPPORT:
Netcom Smartbit Applications

                                       25
<PAGE>   26
SOFTWARE APPLICATIONS
------------------------------------------------------

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

<PAGE>   27
CIRCUIT CITY
CMS LIMITED
COMPUSHACK GMBH
COMPUTER 2000 BELGIUM
COMPUTER 2000 FINLAND OY
COMPUTER 2000 UK
CSK ELECTRONICS CORPORATION
DAIL INFORMATION COMM.
DATATEL S.A.
DATRONTECH RETAIL PLC
DELTA ELECTRONICS INC.
DEUTCHE TELECOM
DIGITAL NETWORK SVCS DEUTCH
D-LINK CORPORATION
DUXBURY NETWORKING DIST.
EGGHEAD, INC
ELECTRONICA SANG HNOS., S.A.
EXPRESS DATA
EXPRESS DATA (aka ComTech)
FRY'S ELECTRONICS
FUJI XEROX CO., LTD.
GALILEO TECHNOLOGIES
GANDALF DATA
GATEWAY COMPUTER RESOURCES
HELTEL LIMITED
IEE
IMS
IMS HONG KONG
INGRAM DENMARK
INGRAM MACROTRON AG
INGRAM MEXICO
INGRAM MICRO
INGRAM MICRO ASIA LTD.
INGRAM MICRO CANADA
INGRAM MICRO CHILE S.A.
INGRAM MICRO EUROPE AG
INGRAM MICRO NORWAY
INTEC INFORMATION TECHNOLOGY
INTERMEMORY CORP
INTERVALLE SA
KANSAI ELECTRIC CO. LTD
KODO INFORMATION & COMMUNICATION
LATAM COMPUSER CORP.
LDL DISTRIBUTION (CHINA) LTD
LINK INTERNATIONAL
LITE-ON
MARUBENI SOLUTIONS CORP.
MEI/MICRO CENTER
MICRO PERIPHERALS LTD.
MICROSTANDARD DISTRIBUTORS INC
MITSUI COMTEK CORP
MPS MAYORISTA, S.A. DE C.V.
NETEKS A.S.
NETSERVE, INC

                                       28

<PAGE>   28
NETWORK VALUE COMPONENTS
NETWORLD, INC.
NYHERJI HF
PC WAREHOUSE INC.
POULIADIS ASSOCIATES CORP.
POWER & TELEPHONE SUPPLY, INC.
RAMCO SYSTEMS
RIGHTNET
SEICOM COMMUNICATION SYSTEMS
SEICOM SUBDISTRIBUTOR
SISTEMAS DATASYS C.A.
SOFTWAY SA
STONE COMPUTER LTD.
SUNDAYNET
SUNKYONG DISTRIBUTION LIMITED
SYNNEX
TD BRASIL, LTDA
TECH DATA
TECH DATA CANADA
TECH PACIFIC AUSTRALIA PTY. LTD
TECH PACIFIC NZ
TECHNOLOGY SOLUTIONS GROUP INC
TECHNOSS S.A.
TECKSEL
TELECTRONIC S.A.
TELIA SYSTEMS AB
TERRA CORPORATION
UNISEL S.A.
WESTCON BRASIL LTDA.

Development:

SLIMWARE -     Contractor Agreement
ADTRAN   -     License Agreement
REALM    -     License Agreement
PHILIP PELLOUCHOUD -     Contractor Agreement

[NOTE: ABOVE SEEMS TO BE MISSING AGREEMENTS IMPLIED BY OTHER SUBMISSIONS
RELATING TO:
ADOBE -     LICENSE AGREEMENT
BROADCOM -     LICENSE AGREEMENT
CICAT NETWORKS -     CONTRACTOR AGREEMENT
INSTALLSHIELD -     LICENSE AGREEMENT
IDOC -     CONTRACTOR AGREEMENT
KLSI/AOX -     LICENSE AGREEMENT
MICROSOFT -     LICENSE AGREEMENT
RAGULA -     MAINTENANCE AND DISTRIBUTION AGREEMENT
RAMP -     LICENSE AGREEMENT
XYLOGICS -     LICENSE AGREEMENT
ZYXEL -     OEM LICENSE AGREEMENT
NATIONAL SEMICONDUCTOR -     LICENSE AGREEMENT
LEASE AGREEMENTS FOR DELL PCS NOTED IN OWNED ASSET LIST.]

Misc. agreements:

                                       29
<PAGE>   29
EXECUTIVE OFFICE LEASE -- NEW JERSEY AUTO LEASES: FRANCE, GERMANY (2), SWEDEN

Assignment of Rights of Gearguy in Gearland Agreement Between Mark Fischer and
Bay Networks, Inc., dated February 1998.

                                       30
<PAGE>   30
                                   EXHIBIT D

                  FURNITURE, FIXTURES, INVENTORY AND EQUIPMENT

<TABLE>
<CAPTION>
         Asset    NT Asset
Dept       #         #        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              9364           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                                  FA 510 Test
                                                                            Station
                              Pentium PC                                  FA 510 Test
                                                                             Station
                              Pentium PC                                  PS Series Test
                                                                             Station
                              Pentium PC                                  EA101 Test
                                                                             Station
                              Pentium PC                                  EA101 Test
                                                                             Station
                              Pentium PC                                  FA101 Test
                                                                              Station
181                           HP LaserJet 551 MX -        USJK209705      Printer          Purchased
                              C3167A
181                           HP LaserJet 551 MX -        USJK210598      Printer          Purchased
                              C3167A
181                           HP LaserJet 551 MX -                        Printer          Purchased
                              C3167A
507               1039178     NEC 6230                    7Z001220        Laptop                        registrar
507               1036924     BOXLIGHT 4000 ULTRA LIGHT   2J7520288       Projector        Purchased    registrar
                              DLP
507               1037029     NEC 6230MX                  81072112        Laptop           Purchased    registrar
507               1036449     WINBOOK XL P233             RBL256R5427S    Laptop           Purchased    registrar
                                                              42
507               1030735     MAC POWERBOOK 3400C/200                     Laptop           Purchased    registrar
507               1037180     WINBOOK XL P233             RBL256R3507L    Laptop           Purchased    registrar
                                                              07
507               1042318     WinBook XL P266             RCN456W11385    Laptop           Purchased    registrar
                                                              07
507               1045570     IBM THINKPAD 600E           78-BXY04        Laptop           Purchased    registrar
507               1036220     WINBOOK XL P233 LAPTOP      SBI256R14571    Laptop           Purchased    registrar
507                           Dell Latitude Cpi336        H9949476        Laptop           Leased
507                           Dell 19" Monitor            2221DA67VE89    Monitor          Leased
507               expensed    HP 600 Office Jet                           Printer          Purchased    exp
507               1038329     WinBook XL                  RCM256          Laptop           Purchased    registrar
                                                          R4068Z40
507                           Dell Latitude Cpi336        H9950697        Laptop           Leased
507                           Dell 19" Monitor                            Monitor          Leased
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

</TABLE>

                                       31
<PAGE>   31
<TABLE>
<S>    <C>      <C>         <C>                          <C>                  <C>            <C>              <C>
507                         WINBOOK XL 266                 RBL256             LAPTOP         PURCHASED
                                                          R3517L18
507             expensed    HP 590 OFFICE JET                                 PRINTER        PURCHASED        expensed
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             93120359           LAPTOP         PURCHASED        registar
                            + mon + 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 233MHZ                            PC TOWER        PURCHASED        registar
181             1041013     SUN ULTRA 10                                                     PURCHASED        registar
181             1047085     DELL LATITUDE 300 + doc          WCD7C            LAPTOP         PURCHASED        registar
                            + 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                                          PURCHASED        registar
                            SX SMA
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             1S264551U78G          LAPTOP        PURCHASED        registar
                                                             Y232
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             1S264551U78H         LAPTOP         PURCHASED        registar
                                                             C753
341             1042601     NETCOM ETHERNET                                                  PURCHASED        registar
                            SMARTCARDS
341             1042137     IBM THINKPAD 600             1S264551U78A          LAPTOP        PURCHASED        registar
                                                             V521
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
341             1021581     INTEL PENTIUM P90                                                PURCHASED        registar
</TABLE>

                                       32

<PAGE>   32
<TABLE>
<CAPTION>
<S>      <C>        <C>        <C>                               <C>              <C>            <C>            <C>
341                 1033296    SUPERCOM NETBOX                                                   PURCHASED      registar
341      00054      1036999    NEC 6230MX                        81072120         LAPTOP         PURCHASED      registar
341      00045      1049043    GATEWAY INTEL400MHZ E1200         14909816         DESKTOP        PURCHASED      registar
341                 1049071    NETCOM SX SMARTCARD                                               PURCHASED      registar
341                 1026673    COMPAQ ARMADA 41201                                LAPTOP         PURCHASED      registar
341                 1025117    ISDN NETWORK SIMULATOR                                            PURCHASED      registar
181                 1007745    RICOH FAX 3100L                                                   PURCHASED      registar
181                 1009327    TEKTRONIX 2467B OSCILLOSCOPE      B053956                         PURCHASED      registar
341                 1048993    TEKTRONIX TDS 3054 OSCILLOSCOP                                    PURCHASED      registar
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 SMARTCAR                                    PURCHASED      registar
341                 1029393    LAN CABLE TESTER AND CABLE                                        PURCHASED      registar
341                 1049526    TEKTRONIX PROBE P6246                                             PURCHASED      registar
341                 1029774    HP DIGITIZING OSCILLOSCOPE        3327A00467&49                   PURCHASED      registar
                                                                       5
181      00001                 SONY NOTEBOOK PII                                  LAPTOP         PURCHASED      registar
341      00002                 ML-7710 10/100 BASE TX MULTILY SMARTCARD           SMARTCARD      PURCHASED      registar
341      00003                 ML-7710 10/100 BASE TX MULTILY SMARTCARD           SMARTCARD      PURCHASED      registar
341      00004                 ML-7710 10/100 BASE TX MULTILY SMARTCARD           SMARTCARD      PURCHASED      registar
341      00005                 ML-7710 10/100 BASE TX MULTILY                     SMARTCARD      PURCHASED      registar
                               SMARTCARD
341      00006                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00007                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00008                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00009                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00010                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00011                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00012                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00013                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00014                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00015                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00016                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00017                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00018                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00019                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00020                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00021                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00022                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00023                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00024                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
341      00025                 SX-7410B 10/100 BASE TX                            SMARTCARD      PURCHASED      registar
                               ETHERNET SMARTCARD
</TABLE>

                                       33
<PAGE>   33
<TABLE>
<S>    <C>      <C>     <C>                              <C>                <C>                   <C>         <C>
 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                    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 DR130-12                                           Purchased   registar
                        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            600 MHZ PIII System w/CD                            PC Tower              Purchased   registar
 507   00038            600 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          338210   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-       Laptop                Purchased   registar
                                                              4
GE507           New     Dell 17" Monitor                                    Monitor               Purchased   registar
GE507                   Dell Doc                                            Docking Station       Purchased   registar
JP507                   IBM ThinkPad560E                   97-AT1BK         Laptop
JP507                   Sony VAIO 5055X                    28987600-        Laptop                Purchased   registar
                                                            1110937
JP507                   Nanao FlexScan 54T                  B2175115-       Monitor                Purchased   registar
                                                             JAPAN
JP507                   Sony VAIO 5055X                    28987600-        Laptop                Purchased   registar
                                                            1117992
JP507                   Dell XP5R350                         T03JS          PC                    Purchased
JP507                   Nanao FlexScan 54T               55399097_JAW       Monitor               Purchased
JP507                   Dell GXA6233L/EM                   19648625         PC                    Leased
</TABLE>

                                       34

<PAGE>   34
<TABLE>
<S>    <C>     <C>         <C>                          <C>             <C>               <C>         <C>
JP50                       ViewSonic VPA150              EK91010861       Monitor         Leased
 7
K050                       Dell Latitude Xpi               S42XL            PC            Purchased   registrar
 7
SE50                       IBM ThinkPad 600               55206WP          Laptop         Purchased   registrar
 7
SE50                       Philips 107MB               HD0098470010       Monitor        Purchased   registrar
 7                                                           23
GB50           325789/00   Compaq Notebook PC           8749BB730191       Laptop         Purchased   registrar
 7                731
GB50            A039750    Compaq Docking Station       6747BCL10710   Docking Station    Purchased   registrar
 7
GB50             00732     Philips 107B Color Monitor   TY1097370203       Monitor        Purchased   registrar
 7                                                           62
GB50                       Nokia 2110 Mobile Phone         490138       Mobile Phone      Purchased   registrar
 7
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               HIQ 233MHZ                     9803025         PC Tower        Purchased   exp
341    00051               HIQ 150MHZ                     9709233         PC Tower        Purchased   exp
341    00052               GLI 90MHZ                      88112912        PC Tower        Purchased   exp
341    00055               HIQ 150MHZ                     9705014         PC Tower        Purchased   exp
341                        Tester #9                        N/A           PC Tower          Built     exp
341    00056               HIQ 150MHZ                     9705013         PC Tower        Purchased   exp
341    00057               HIQ 90MHZ                      9409387         PC Tower        Purchased   exp
341    00058               HIQ 150MHZ                     9705016         PC Tower        Purchased   exp
341    00059               HIQ 150MHZ                     9709230         PC Tower        Purchased   exp
341    00060               HIQ 150MHZ                     9709038         PC Tower        Purchased   exp
341    00061               T/Link 90MHZ                     MLP          PC Tower -       Purchased   exp
                                                         069703740          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               HIQ 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
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           69812276A         Laptop         Purchased   exp
                           2065CDS
341    00088               Dell Dimension                   F134F         PC Tower        Purchased   exp
</TABLE>

                                       35

<PAGE>   35
<TABLE>
<S>    <C>       <C>       <C>                          <C>               <C>             <C>         <C>
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
341                        MISCELLANEOUS LAB BENCHES
                           W/LIGHTS
341                        LAB STOOLS
341
341
</TABLE>

                                       36
<PAGE>   36

                                   EXHIBIT E

                             CERTAIN NNNA EMPLOYEES

<TABLE>
<CAPTION>
<S>             <C>             <C>
  EMP#          LAST NAME       FIRST NAME
-------         ---------       ----------
4715074         Abba            Annabelle
4715621         Ajinga          Leilani
4715699         Berkowitz       Phil
4715750         Blum            John
4715206         Chatburn        Michele
4714972         Cunningham      Robert A.
4715353         Ding            Josh
4713752         Dix             Stephen
4713717         Fabiano         Rick
4715916         Gregory         Heath
4737130         Gross           Don
4716071         Hill            Mark
4716073         Huang           Lillian
4715156         Kerr            Duncan
4714885         Kim             Kathy
4714938         Lee             Raymond
4712802         Lo              Patrick
4715103         Malloy          John
4710048         Merrill         Mark
4725493         Otero           Eric
4714130         Pramanik        Debashis
4715267         Reed            Rob
4713988         Romero          Kelly
4511220         Runkle          Lisa
4711765         Shields         Mike
4714400         Smith           Chip (Authur)
4710628         Su              Jimmy
4715018         Viahos          Gus
4715501         Werdann         Michael
4724176         Yi              Bobi
4716019         Zompetti        Tracey
4740579         Bielli          Jean-Michel
4740729         Erlandsson      Magnus
4740823         Jell            Thomas
4750049         Kim             Jin Gyeom
4750103         McLean          Ian
4740886         Montanhas       Eugenia
4713766         Nakagawa        Hirohito
4750303         Owada           Yumi
4740613         Peters          Marco
4750351         Ponder          Sue
4740500         Soares          David
4750494         Takeuchi        Hiroshi
</TABLE>

                                       37
<PAGE>   37

                                   EXHIBIT F

                    CLAIMS RELATED TO INTELLECTUAL PROPERTY

1.  Infringement claims: None.

2.  Knowledge of infringement or misappropriation: None.

3.  Claims relating to ownership, licensing or enforceability: None.

                                       38
<PAGE>   38

                                   EXHIBIT H

                              TRANSFERRED SOFTWARE

Transferred Software includes the software, firmware and related documentation
owned by NNNAI or any of its Subsidiaries, and used exclusively in the NETGEAR
Business and which is incorporated in the following products:

<TABLE>
<CAPTION>
XM128 - ISDN DIGITAL MODEM PRODUCT
--------------------------------------------------------------------------------
<S>             <C>                          <C>
Vendor          Product                      Notes
--------------------------------------------------------------------------------
NETGEAR         First Gear Configuration
Engineering     Software
Slimware        AutoSwitch/Auto SPID         Program implementation to determine
                                             SPID and Switch types in North
                                             America.

--------------------------------------------------------------------------------
PA301 - 10M PCI PHONE LINE ADAPTER PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                      Notes
--------------------------------------------------------------------------------
NETGEAR         First Gear Configuration
Engineering/    Software
Ragula Systems

--------------------------------------------------------------------------------
PA101 - 10M USB PHONE LINE ADAPTER PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                      Notes
--------------------------------------------------------------------------------
NETGEAR         First Gear Configuration
Engineering/    Software
Ragula Systems

PE102 - PHONE LINE ETHERNET BRIDGE PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                      Notes
--------------------------------------------------------------------------------
Slimware        Firmware code combining
                Broadcom and KLSI
                drivers

PR356 - 56K ANALOG PHONE LINE ROUTER PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                      Notes
--------------------------------------------------------------------------------
Slimware        Firmware code combining
                Broadcom and KLSI
                drivers

RT210/211 - ISDN ROUTER PRODUCT
--------------------------------------------------------------------------------
Vendor          Product                      Notes
--------------------------------------------------------------------------------
CICAT           Graphical User Interface     Product discontinued, but software
                Program                      on NETGEAR website for support
                                             reasons
--------------------------------------------------------------------------------
</TABLE>

                                       42
<PAGE>   39
<TABLE>
<CAPTION>
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
--------------------------------------------------------------------------------
<S>            <C>                           <C>
Vendor         Product                       Notes
--------------------------------------------------------------------------------
Pellichoud     GUI for the RT328/348
               and RM356 products

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
ND508/520      Production software, Production
               testing software, Client Utility
               software
--------------------------------------------------------------------------------
</TABLE>

                                       43
<PAGE>   40
                                   EXHIBIT I

                       TRANSFERRED TECHNICAL INFORMATION

        Transferred Technical Information includes all drawings, schematics,
specifications, functional descriptions, application engineering support
systems, design documents, feature documents, engineering manuals, assembly
drawings, stock lists, part drawings, procurement information specifications,
component information, inspection information, design change control procedures,
specifications for finishes, and quality assurance procedures, all trade secrets
embodied in any know-how, manufacturing specifications, processing procedures
or research and development information, and agency approval files related to
the NETGEAR Products listed below which are owned by NNNAI and which used
exclusively in the NETGEAR Business as of the Effective Date:

                            CURRENT NETGEAR PRODUCTS

<TABLE>
<CAPTION>
COUNT OF
MODELS                                         VERSION
------------------------------------------------------------------------------------------
PRODUCT     DESCRIPTION                        AU   FR   GE   GR   JP   KO   NA   UK   WW
------------------------------------------------------------------------------------------
<S>         <C>                                <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>
DB104       DUAL SPEED STARTER KIT              1    1    1    1    1         2    1
DS104       4 PORT DUAL SPEED 10/100 HUB        1    1    1    1    1         1    1
DS106       6 PORT SLIM DUAL SPEED HUB          1    1    1    1    1         1    1
DS108       8 PT SLIM 10/100 HUB                1    1    1    1    1         1    1
DS116       16 PORT SLIM DUAL SPEED HUB         1    1    1    1    1         1    1
DS309       9PT DUAL SPEED HUB W/UPLINK         1    1    1    1    1         1    1
DS508       8 PT D-SPD STACK HUB                1         1         1         1    1
DS516       16 PT D-SPD STACK HUB               1         1         1         1    1
DS524       24 PT D-SPD STACK HUB               1         1         1         1    1
EA101       USB ETHERNET ADAPTER                               1    1                   1
EA201       10 MBPS ISA CARD                         1         1                        3
EB104       NETWORK STARTER KIT ISA             1    1    1                   1    1
EN104       4 PT 10BASE-T HUB                   1         1         1         1    1
EN104TP     4 PT 10BASE-T HUB                   1         1    1    1         1    1
EN106TP     6 PT 10BASE-T HUB                   1         1         1         1    1
EN108       8 PT 10BASE-T HUB                   1         1         1         1    1
EN108TP     8 PT 10BASE-T HUB                   1         1         1         1    1
EN116       16 PT 10BASE-T HUB                  1         1         1         1    1
EN308       8 PT 10BASE-T HUB                   1         1         1         1    1
EN308TC     8 PT 10BASE-T HUB                   1    1    1    1    1         1    1
EN516       16 PT 10BASE-T HUB                  1         1         1         1    1
EN524       24 PT 10BASE-T HUB                  1         1         1         1    1
FA310-10    10-PK 10/100 PCI ADAPTER                                                    1
FA310-50    50-PK 10/100 PCI ADAPTER                                                    1
FA310TX     10/100 PCI ADAPTER                                 1    1                   1
FA310TXC    10/100 PCI ADAPTER&CBL                   1         1                        1
FA311       10/100 PCI ADAPTER NS                                                       1
FA312       10/100 PCI ADAPTER WOL                                                      1
FA410C      10/100 PCMIA ADAPTER                                                        1
FA510       10/100 CARDBUS ADAPTER                                                      1
</TABLE>

                                       1
<PAGE>   41
<TABLE>
<CAPTION>

<S>     <C>                               <C>  <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
FB104   4 PORT FE-NET STARTER KIT         1     1     1                       1     1     1
FB108   8 PORT FE-NET STARTER KIT         1           1                       1     1
FE104   4 PT FAST E-NET HUB               1           1           1           1     1
FE108   8 PT FAST E-NET HUB               1           1           1           1     1
FE116   16 PT 100BASE-TX FE HUB           1           1           1           1     1
FE508   8 PT FE STACK HUB                 1           1           1           1     1
FE516   16 PT FE STACK HUB                1           1           1           1     1
FS102   2 PT FAST E0NET SW                1           1           1           1     1
FS104   4 PT FAST E-NET SW                1           1           1           1     1
FS105   5 PT FAST E-NET SWITCH            1           1           1           1     1
FS108   8 PORT 10/100 SWITCH,EXT PWR      1           1           1           1     1
FS308   8 PORT 10/100 SWITCH,INT PWR      1           1           1           1     1
FS508   8 PT FAST E-NET SW                1           1           1           1     1
FS509   9 PORT SWITCH W/GBIT UPLINK       1           1           1           1     1
FS516   16 PT FAST E-NET SW               1           1           1           1     1
FS518   18 PT FAST E-NET SW               1           1           1           1     1
FS524   24 PT FAST E-NET SW               1           1           1           1     1
FS562   8 PORT FIBER SWITCH               1           1           1           1     1
FS566   12 PORT FIBER SWITCH              1           1           1           1     1
GA620   IGBPS PCT FIBER CARD                                      1                       1
GS504   GIGABIT FIBERSWT 4PATENT          1           1           1           1     1
LCP100  CABLE MODEM                                                           1
MISC    ACCESSORIES: POWER, PKG, ETC.                                                  Mult
ND508   NETWORK DISK DRIVE 8GB            1           1                       1     1
ND520   NETWORK DISK DRIVE 20GB           1           1                       1     1
PA101   10M USB PHONELINE ADAPTER                                             1
PA301   10M PCI PHONELINE ADAPTER                                             1
PE102   PHONELINE ETHERNET BRIDGE                                             1
PR356   56K ANALOG PHONELINE ROUTER                                           1
PS104   PRINT SERVER WITH 4 PATENT HUB    1           1           1           1     1
PS105   PRINT SERVER WITH 5 PATENT HUB    1     1     1     1     1           1     1
PS110   10/100 MBPS PRINT SERVER          1     1     1     1     1           1     1
RH340   ROUTER HUB                                                            1
RH348   ROUTER HUB                                    1           1           1     1
RM356   56K MODEM/ROUTER W/4PT HUB        1           1           1           1     1
RT210   ISDN ROUTER                       1           1           1                 1
RT311   ETHERNET ROUTER                                                       1
RT328   ISDN ROUTER                       1           1                 1     1     1
RT338   ISDN 10/100 ROUTER                                                    1
SB104   NT WRK STARTER KIT                1     1     1     1                 1     1
SW108   8PT 10B-T E-NET SW                1           1           1           1     1
SW502   2PT 10/1000 E-NET SW              1           1           1           1     1
SW507   7PT 10/100 E-NET SW               1           1           1           1     1
SW510   10PT 10/100 E-NET SW              1           1           1           1     1
SW518   18PT 10/100 E-NET SW              1           1           1           1     1
XM128   ISDN DIGITAL MODEM                1     1     1           1     1     1     1
TOTAL                                    55    15    57    15    52     2    65    56    15
</TABLE>

                                       2

<PAGE>   42
                                       3
<PAGE>   43

                                   EXHIBIT J

                            TRANSFERRED TRADE MARKS

<TABLE>
<CAPTION>
                                 APPLICATION                        REGISTRATION      DATE OF
TRADE MARK     COUNTY               NUMBER      FILING DATE            NUMBER        REGISTRATION
----------     ------            -----------    -----------         ------------     ------------
<S>           <C>                <C>            <C>                 <C>              <C>
NETGEAR       Argentina            1634345      30 May 1997             1634345       30 May 1997
NETGEAR       Australia            781510        5 Aug 1996             781510         5 Aug 1996
NETGEAR       Brazil              819235202     22 May 1996            819235202      29 Dec 1998
NETGEAR       Canada               834,529      24 Jan 1997             503,133       30 May 1997
NETGEAR       European            000238576     23 April 1996          000238576      11 Sept 1998
              Community
              Trademarks
              (CTM)
NETGEAR       India                753803       28 Jan 1997
NETGEAR       Japan                9-6723       24 Jan 1997
NETGEAR       New Zealand          265381        5 Aug 1996              265381        5 Aug 1996
NETGEAR       United States      75/026,272     30 Nov 1995            2,124,219      23 Dec 1997
</TABLE>

                                  OTHER MARKS

NETGEAR Logo

The Gearguy in Gearland

FirstGEAR

netgear.com

netgearinc.com

                                       5

<PAGE>   44

                                   EXHIBIT K

                              FINANCIAL STATEMENTS

A substantial portion of the Financial Statements for Netgear, Inc. has been
re-stated to reflect its stand-alone status.

                                       6
<PAGE>   45
                                   EXHIBIT L

                        TRANSFERABLE SOFTWARE LICENSES

                                      None

                                       7

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