Document:

CONFIDENTIAL INFORMATION AND
                         INVENTION ASSIGNMENT AGREEMENT

      This CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENT (the
"Agreement") is made between Composite Technology Corporation, a Nevada
corporation (the "Company") and Dominic J.G.G. Majendie.

      In consideration of my employment with the Company (which for purposes of
this Agreement shall be deemed to include any subsidiaries or Affiliates of the
Company and for purposes of this Agreement, "Affiliates" shall mean any person
or entity that directly or indirectly controls, is controlled by or is under
common control with the Company), the receipt of confidential information while
associated with the Company, and other good and valuable consideration, I, the
undersigned individual, agree that:

      1. Term of Agreement. This Agreement shall continue in full force and
effect for the duration of my employment by the Company (the "Period of
Employment").

      2. Confidentiality.

            (a) Existence of Confidential Information. The Company is in the
legal possession of and/or owns and will develop and/or acquire Proprietary
Information, as defined below, which have value to its business. This
Confidential Information includes not only information disclosed by the Company
to me, but also information developed or learned by me during the course of my
employment with the Company.

            (b) Definitions. "Proprietary Information" is all information in
whatever form, tangible or intangible, pertaining in any manner to the business
of the Company, or any of its Affiliates, or its employees, customers,
consultants or business associates. All Proprietary Information not generally
known outside of the Company's organization, and all Proprietary Information so
known only through improper means, shall be deemed "Confidential Information."
By example and without limiting the foregoing definition, Proprietary and
Confidential Information shall include, but not be limited to:

                  (i) Formulas, research and development techniques, processes,
trade secrets, computer programs, software, electronic codes, mask works,
inventions, innovations, patents, patent applications, discoveries,
improvements, data, know-how, formats, test results and research projects;

                  (ii) information about costs, profits, markets, sales,
contracts and lists of customers and distributors;

                  (iii) business, marketing and strategic plans;

                  (iv) forecasts, unpublished financial information, budgets,
projections and customer identities, characteristics and agreements; and

                  (v) employee personnel files and compensation information.

Confidential Information is to be broadly defined, and includes all information
that has or could have commercial value or other utility in the business in
which the Company is engaged or contemplates engaging, and all information of
which the unauthorized disclosure could be detrimental to the interests of the
Company, whether or not such information is identified as Confidential
Information by the Company.

            (c) Protection of Confidential Information. I will not, directly or
indirectly, use, make available, sell, disclose or otherwise communicate to any
third party, other than in my assigned duties and for the benefit of the
Company, any of the Company's Confidential Information, either during or after
my employment with the Company.

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<PAGE>

            (d) Delivery of Confidential Information. Upon request or when my
employment with the Company terminates, I will immediately deliver to the
Company all copies of any and all materials and writings received from, created
for or belonging to the Company including, but not limited to, those which
relate to or contain Confidential Information.

            (e) Location and Reproduction. I shall maintain at my work station
and/or any other place under my control only such Confidential Information as I
have a current "need to know." I shall return to the appropriate person or
location or otherwise properly dispose of Confidential Information once that
need to know no longer exists. I shall not make copies of or otherwise reproduce
Confidential Information unless there is a legitimate business need of the
Company for reproduction.

            (f) Prior Actions and Knowledge. I represent and warrant that from
the time of my first contact with the Company I held in strict confidence all
Confidential Information and have not disclosed any Confidential Information,
directly or indirectly, to anyone outside the Company, or used, copied,
published or summarized any Confidential Information, except to the extent
otherwise permitted in this Agreement.

            (g) Third-Party Information. I acknowledge that the Company has
received and in the future will receive from third parties the third party's
confidential information subject to a duty on the Company's part to maintain the
confidentiality of such information, and to use it only for certain limited
purposes. I agree during the Period of Employment and thereafter, I will hold
all such confidential information in the strictest confidence and not disclose
or use it, except as necessary to perform my obligations hereunder, and as is
consistent with the Company's agreement with such third parties.

            (h) Third Parties. I represent my employment with the Company does
not and will not breach any agreements with or duties to a former employer or
any other third party. I will not disclose to the Company or use on its behalf
any confidential information belonging to others and I will not bring onto the
premises of the Company any confidential information belonging to any such party
unless consented to in writing by such party.

      3. Proprietary Rights, Inventions and New Ideas.

            (a) Definition. The term "Subject Ideas" or "Inventions" includes
any and all ideas, processes, trademarks, service marks, inventions, designs,
technologies, computer hardware or software, original works of authorship,
formulas, discoveries, patents, copyrights, copyrightable works, products,
marketing and business ideas, and all improvements, know-how, data, rights and
claims related to the foregoing, whether or not patentable, which are conceived,
developed or created in whole or in part by me during the period I am employed
by the Company and which: (i) relate to the Company's current or contemplated
business or activities; (ii) relate to the Company's actual or demonstrably
anticipated research or development; (iii) result from any work performed by me
for the Company; (iv) involve the use of the Company's equipment, supplies,
facilities or trade secrets; (v) result from or are suggested by any work done
by the Company or at the Company's request, or any projects specifically
assigned to me; or (vi) result from my access to any of the Company's memoranda,
notes, records, drawings, sketches, models, maps, customer lists, research
results, data, formulae, specifications, inventions, processes, equipment or
other materials (collectively, "Company Materials").

            (b) Company Ownership. I hereby assign all right, title and interest
in and to all of my Subject Ideas and Inventions, including but not limited to
all registrable and patent rights which may subsist therein, to the Company. All
Subject Ideas and Inventions shall be considered works made for hire. I shall
take all actions deemed necessary by the Company to protect the Company's rights
therein.

            (c) California Labor Code. Section 3(b) of this Agreement shall not
apply if and to the extent California Labor Code Section 2870 lawfully prohibits
the assignment of rights in such intellectual property. I acknowledge I
understand the limits placed on this definition by California Labor Code Section
2870, if applicable to me, which provides:

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<PAGE>

                  "(1) Any provision in an employment
                  agreement which provides that an employee
                  shall assign, or offer to assign, any of
                  his or her rights in an invention to his
                  or her employer shall not apply to an
                  invention that the employee developed
                  entirely on his or her own time without
                  using the employer's equipment, supplies,
                  facilities or trade secret information
                  except for those inventions that either:

                        a. Relate at the time of conception
                        or reduction to practice of the
                        invention to the employer's
                        business, or actual or demonstrably
                        anticipated research or development
                        of the employer; or

                        b. Result from any work performed by
                        the employee for the employer.

                  2) To the extent a provision in an
                  employment agreement purports to require
                  an employee to assign an invention
                  otherwise excluded from being required to
                  be assigned under subdivision (a), the
                  provision is against the public policy of
                  this state and is unenforceable."

            (d) I understand I bear the full burden of proving to the Company an
Invention qualifies fully under Section 2870. I agree to disclose promptly to
the Company in writing full details of any and all Subject Ideas and Inventions.

            (e) Maintenance of Records. I agree to keep and maintain adequate
and current written records of all Subject Ideas and Inventions and their
development made by me (solely or jointly with others) during the term of my
employment with the Company. These records will be in the form of notes,
sketches, drawings and any other format that may be specified by the Company.
These records will be available to and remain the sole property of the Company
at all times.

            (f) Access. Because of the difficulty of establishing when any
Subject Ideas or Inventions are first conceived by me, or whether they result
from my access to Confidential Information or Company Materials, I agree that
any Subject Idea and Invention shall, among other circumstances, be deemed to
have resulted from my access to Company Materials if: (i) it grew out of or
resulted from my work with the Company or is related to the business of the
Company, and (ii) it is made, used, sold, exploited or reduced to practice, or
an application for patent, trademark, copyright or other proprietary protection
is filed thereon, by me or with my significant aid, within one (1) year after
termination of the Period of Employment.

            (g) Assistance. I further agree to assist the Company in every
proper way (but at the Company's expense) to obtain and from time to time
enforce patents, copyrights or other rights or registrations on said Subject
Ideas and Inventions in any and all countries, and to that end will execute all
documents necessary:

                  (i) to apply for, obtain and vest in the name of the Company
alone (unless the Company otherwise directs) letters patent, copyrights or other
analogous protection in any country throughout the world and when so obtained or
vested to renew and restore the same; and

                  (ii) to defend any opposition proceedings in respect of such
applications and any opposition proceedings or petitions or applications for
revocation of such letters patent, copyright or other analogous protection; and

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<PAGE>

                  (iii) to cooperate with the Company (but at the Company's
expense) in any enforcement or infringement proceeding on such letters patent,
copyright or other analogous protection.

            (h) Authorization to Company. In the event the Company is unable,
after reasonable effort, to secure my signature on any patent, copyright or
other analogous protection relating to a Subject Idea and Invention, whether
because of my physical or mental incapacity or for any other reason whatsoever,
I hereby irrevocably designate and appoint the Company and its duly authorized
officers and agents as my agent and attorney-in-fact, to act for and on my
behalf and stead to execute and file any such application, applications or other
documents and to do all other lawfully permitted acts to further the
prosecution, issuance and enforcement of letters patent, copyright or other
analogous rights or protections thereon with the same legal force and effect as
if executed by me. My obligation to assist the Company in obtaining and
enforcing patents and copyrights for Subject Ideas and Inventions in any and all
countries shall continue beyond the termination of my relationship with the
Company, but the Company shall compensate me at a reasonable rate after such
termination for time actually spent by me at the Company's request on such
assistance.

            (i) Exhibit. I acknowledge that there are no currently existing
ideas, processes, inventions, discoveries, marketing or business ideas or
improvements which I desire to exclude from the operation of this Agreement
except for the list set forth on Exhibit A, Prior Knowledge and Inventions, to
this Agreement. To the best of my knowledge, there is no other contract to
assign inventions, trademarks, copyrights, ideas, processes, discoveries or
other intellectual property that is now in existence between me and any other
person (including any business or governmental entity).

            (j) No Use of Name. I shall not at any time use the Company's name
or any of the Company trademark(s) or trade name(s) in any advertising or
publicity without the prior written consent of the Company.

      4. Prohibited Activity. To prevent the above-described disclosure,
misappropriation and breach, I agree that during the Period of Employment and
for a period of one (1) year after termination of the Period of Employment,
without the Company's express written consent, I shall not, directly or
indirectly, (i) employ, solicit for employment or recommend for employment by
any party other than the Company, any person employed by the Company (or any
Affiliate) as an employee or a consultant; and (ii) call on, solicit or take
away, or attempt to call on, solicit or take away, any of the Company's
customers or potential customers on whom I called or with whom I became
acquainted during my Period of Employment.

      5. Representations and Warranties. I represent and warrant (i) I have no
obligations, legal or otherwise, inconsistent with the terms of this Agreement
or with my undertaking a relationship with the Company; (ii) the performance of
the services called for by this Agreement do not and will not violate any
applicable law, rule or regulation or any proprietary or other right of any
third party; (iii) I will not use in the performance of my responsibilities for
the Company any materials or documents of a former employer; and (iv) I have not
entered into or will enter into any agreement (whether oral or written) in
conflict with this Agreement.

      6. Termination Obligations.

            (a) Upon the termination of my relationship with the Company or
promptly upon the Company's request, I shall surrender to the Company all
equipment, tangible Proprietary Information, documents, books, notebooks,
records, reports, notes, memoranda, drawings, sketches, models, maps, contracts,
lists, computer disks (and other computer-generated files and data), any other
data and records of any kind, and copies thereof (collectively, "Company
Records"), created on any medium and furnished to, obtained by or prepared by
myself in the course of or incident to my employment, that are in my possession
or under my control.

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<PAGE>

            (b) My representations, warranties and obligations contained in this
Agreement shall survive the termination of the Period of Employment.

            (c) Following any termination of the Period of Employment, I will
fully cooperate with the Company in all matters relating to my continuing
obligations under this Agreement.

            (d) In the event that I leave the employ of the Company I hereby
grant consent to notification by the Company to my new employer about my rights
and obligations under this Agreement.

      7. Injunctive Relief. I acknowledge my failure to carry out any obligation
under this Agreement, or a breach by me of any provision herein, will constitute
immediate and irreparable damage to the Company, which cannot be fully and
adequately compensated in money damages and which will warrant preliminary and
other injunctive relief, an order for specific performance and other equitable
relief. I further agree no bond or other security shall be required in obtaining
such equitable relief and I hereby consent to the issuance of such injunction
and to the ordering of specific performance. I also understand other action may
be taken and remedies enforced against me.

      8. Modification. No modification of this Agreement shall be valid unless
made in writing and signed by both parties.

      9. Binding Effect. This Agreement shall be binding upon me, my heirs,
executors, assigns and administrators and is for the benefit of the Company and
its successors and assigns.

      10. Governing Law. Any action or proceeding seeking to enforce any
provision of, or based on any right arising out of, this Agreement may be
brought against any of the Parties only in the courts of Orange County, in the
State of California, or, if it has or can acquire jurisdiction, in the
appropriate United States District Court for the Southern District of
California, and each of the Parties consents to such venue and to the
jurisdiction of such courts (and of the appropriate appellate courts) in any
such action or proceeding and waives any objection to venue laid therein.
Process in any action or proceeding referred to in the preceding sentence may be
served on any Party anywhere in the world.

      11. Integration. This Agreement sets forth the parties' mutual rights and
obligations with respect to proprietary information, prohibited competition
after the Period of Employment and intellectual property. It is intended to be
the final, complete and exclusive statement of the terms of the parties'
agreements regarding these subjects. This Agreement supersedes all other prior
and contemporaneous agreements and statements on these subjects, and it may not
be contradicted by evidence of any prior or contemporaneous statements or
agreements. To the extent that the practices, policies or procedures of the
Company, now or in the future, apply to myself and are inconsistent with the
terms of this Agreement, the provisions of this Agreement shall control unless
changed in writing by the Company.

      12. Employment at Will. This Agreement is not an employment agreement. I
understand that the Company may terminate my association or employment with it
at any time, with or without cause, subject to the terms of any separate written
employment agreement executed by a duly authorized officer of the Company.

      13. Construction. This Agreement shall be construed as a whole, according
to its fair meaning, and not in favor of or against any party. By way of example
and not limitation, this Agreement shall not be construed against the party
responsible for any language in this Agreement. The headings of the paragraphs
hereof are inserted for convenience only, and do not constitute part of and
shall not be used to interpret this Agreement.

      14. Attorneys' Fees. Should either I or the Company, or any heir, personal
representative, successor or permitted assign of either party, resort to legal
proceedings to enforce this Agreement, the prevailing party (as defined in
California statutory law) in such legal proceeding shall be awarded, in addition
to such other relief as may be granted, attorneys' fees and costs incurred in
connection with such proceeding.

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<PAGE>

      15. Severability. If any term, provision, covenant or condition of this
Agreement, or the application thereof to any person, place or circumstance,
shall be held to be invalid, unenforceable or void, the remainder of this
Agreement and such term, provision, covenant or condition as applied to other
persons, places and circumstances shall remain in full force and effect.

      16. Rights Cumulative. The rights and remedies provided by this Agreement
are cumulative, and the exercise of any right or remedy by either the Company or
me (or by that party's successor), whether pursuant hereto, to any other
agreement, or to law, shall not preclude or waive that party's right to exercise
any or all other rights and remedies. This Agreement will inure to the benefit
of the Company and its successors and assigns.

      17. Nonwaiver. The failure of either the Company or me, whether purposeful
or otherwise, to exercise in any instance any right, power or privilege under
this Agreement or under law shall not constitute a waiver of any other right,
power or privilege, nor of the same right, power or privilege in any other
instance. Any waiver by the Company or by me must be in writing and signed by
either myself, if I am seeking to waive any of my rights under this Agreement,
or by an officer of the Company (other than me) or some other person duly
authorized by the Company.

      18. Notices. Any notice, request, consent or approval required or
permitted to be given under this Agreement or pursuant to law shall be
sufficient if it is in writing, and if and when it is hand delivered or sent by
regular mail, with postage prepaid, to my residence (as noted in the Company's
records), or to the Company's principal office, as the case may be.

      19. Date of Effectiveness. This Agreement shall be deemed effective as of
the commencement of my employment with the Company.

      20. Agreement to Perform Necessary Acts. I agree to perform any further
acts and execute and deliver any documents that may be reasonably necessary to
carry out the provisions of this Agreement.

      21. Assignment. This Agreement may not be assigned without the Company's
prior written consent.

      22. Compliance with Law. I agree to abide by all federal, state and local
laws, ordinances and regulations.

      23. Survival. Section 2 (b), (c) (d), Section 3 (g), (h) (j), and Sections
4, 7, 10, 14 and 20 shall survive the expiration or termination of this
Agreement.

      24. Employee Acknowledgment. I acknowledge that I have had the opportunity
to consult legal counsel in regard to this Agreement, that I have read and
understand this Agreement, that I am fully aware of its legal effect, and that I
have entered into it freely and voluntarily and based on my own judgment and not
on any representations or promises other than those contained in this Agreement.

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<PAGE>

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
set forth below.

CAUTION: THIS AGREEMENT CREATES IMPORTANT OBLIGATIONS OF TRUST AND AFFECTS THE
EMPLOYEE'S RIGHTS TO INVENTIONS AND OTHER INTELLECTUAL PROPERTY THE EMPLOYEE MAY
DEVELOP DURING HIS OR HER EMPLOYMENT.

Dated: November 18th, 2005

------------------------------------
Employee Signature

      Dominic J.G.G. Majendie
------------------------------------
Printed Name of Employee

Composite Technology Corporation
a Nevada corporation

By:
    --------------------------------

Name:        Benton H Wilcoxon
      ------------------------------

Title:       Chief Executive Officer
      ------------------------------

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<PAGE>

                                    EXHIBIT A

                         PRIOR KNOWLEDGE AND INVENTIONS

1.    Except as set forth below, I acknowledge that certain inventions which I
      may conceive or first actually reduce to practice after I enter the employ
      of the Company shall be the sole property of the Company. The following
      are those inventions that I own at this time (if none, so state):
            None, however, all literary works are excluded
      --------------------------------------------------------------------------
      --------------------------------------------------------------------------

2.    Except as set forth below, I acknowledge that I have no other current or
      prior agreements, relationships or commitments that conflict with my
      relationship with the Company under my Confidential Information and
      Invention Assignment Agreement (if none, so state):
            NONE
      --------------------------------------------------------------------------
      --------------------------------------------------------------------------

3.    I acknowledge and agree that I will not use any proprietary information or
      trade secrets belonging to other persons or entities, including former
      employees, in my work for the Company. I further certify that I returned
      all property and confidential information belonging to all prior
      employers.

Dated:            November 18th, 2005
       ------------------------------          ---------------------------------
                                               Dominic J.G.G. Majendie
                                               [Name of Employee]

                                  Page 8 of 8Exhibit 10.33

 

 

 

 

 

 

 

 

SUPERIOR COURT FOR THE STATE OF CALIFORNIA

FOR THE COUNTY OF SANTA CLARA 

 

LEV ZILBERMAN, on Behalf of Himself, and All Others Similarly Situated and on Behalf of the General Public,

Plaintiff,

vs.

NETGEAR, INC., and DOES 1-100, inclusive, 

 

Defendants.

______________________________________

 

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CASE NO.: 1-04-CV-021230

CLASS ACTION 

SETTLEMENT AGREEMENT AND RELEASE

 

 

TABLE OF CONTENTS

RECITALS1

I.DEFINITIONS3

II.DENIAL OF LIABILITY4

III.CONSIDERATION FOR SETTLEMENT5

A.15% Discount Off New Wireless Product5

1.Proof of Purchase 5

2.Transferability 6

3.Claim Period  6

4.Redemption Period  6

5.Disputed Claims  6

B.Changes to Advertising7

C.Charitable Donation7

D.Attorneys' Fees and Costs7

IV.NOTICE TO THE SETTLEMENT CLASS8

V.CERTIFICATION OF THE SETTLEMENT CLASS9

VI.COURT APPROVAL, RELEASES AND CONSUMMATION OF THE SETTLEMENT AGREEMENT9

A.Obtaining Court Approval9

B.Releases10

C.Non-Consummation of Settlement10

VII.ADDITIONAL TERMS11

A.Stay of the Cases11

B.Protective Orders11

C.Continuing Jurisdiction of the Court12

D.Press Releases12

E.Extensions Of Time  12

F.Integration 12

G.Governing Law  12

H.Survival of Warranties and Representations12

I.Representative Capacity  12

J.Counterparts  13

K.Cooperation of Parties  13

L.Execution Voluntary  13

M.Modification and Amendment 13

 

SETTLEMENT AGREEMENT AND RELEASE

This Settlement Agreement and Release ("Agreement") is made by and among  Netgear, Inc. ("Netgear"), Plaintiff Lev Zilberman ("Zilberman") in his individual capacity and as representative (collectively "Class Representative") of the "Settlement Class," as defined below, and on behalf of the general public of California, in the action Zilberman v. Netgear, Inc., Santa Clara Superior Court No. 1-04-CV-021230.  Zilberman, as an individual and Class Representative, and Netgear are collectively referred to herein as the "Parties."

RECITALS

This Agreement is made for the following purpose and with reference to the following facts:

	Zilberman filed his complaint on June 10, 2004, on behalf of a nationwide class of purchasers of certain of Netgear's wireless products, and on behalf of the general public (hereinafter "Zilberman Action").  The complaint alleges violations of the UCL, violation of the California False Advertising Law, and a violation of the Consumer Legal Remedies Act, Cal. Civ. Code Section 1750 et seq.  The complaint alleges that the "Covered Netgear Wireless Products," as defined below, do not achieve the advertised Mbps rates under alleged 'real-world' operating conditions described in the complaint.
	On or about February 4, 2005, a complaint was filed by James McGrew in Santa Clara Superior Court against Netgear, thereby commencing a civil action entitled McGrew v. Netgear, Inc., Case No. 1-05-CV-035191 (hereinafter "McGrew Action").  The allegations in the complaint filed in the McGrew Action are identical to the allegations in the complaint filed in the Zilberman Action.  The McGrew Action was voluntarily dismissed on August 10, 2005.
	Netgear filed Answers in both of the actions generally denying the allegations therein, and alleging various affirmative defenses.  
	Netgear disputes the claims alleged in the Zilberman Action and the McGrew Action and does not by this Agreement admit any liability whatsoever.  Netgear has agreed to enter into this Agreement to avoid the further expense, inconvenience, and distraction of burdensome and protracted litigation, and to be completely free of any further claim or controversy in connection with the advertising and performance of the Covered Netgear Wireless Products.
	Counsel for the Settlement Class ("Class Counsel," as defined herein) and Class Representative believe that the claims asserted in the litigation have merit.  However, the Class Representative and Class Counsel recognize and acknowledge the expense and length of continued proceedings necessary to prosecute the litigation against Netgear through trial and through appeals.  The Class Representative and Class Counsel also have taken into account the uncertain outcome and the risk of any litigation, especially in complex and time-consuming actions such as this litigation, as well as the difficulties and delays inherent in such litigation.  The Class Representative and Class Counsel are mindful of the inherent problems of proof under, and possible defenses to, the claims asserted in the complaints.  The Class Representative and Class Counsel believe that the proposed settlement set forth in the Agreement  confers substantial benefits upon the Settlement Class and each of its members.  Based on their evaluation, the Class Representative and Class Counsel have determined that the proposed settlement set forth in the Agreement is in the best interests of the Settlement Class.  Class Counsel have conducted written and document discovery of Netgear, have fully investigated the facts and law relevant to the merits of the claims, and have concluded that the proposed settlement is fair and reasonable to the Settlement Class.
	The Parties desire to settle the Zilberman Action in its entirety with respect to all potential claims that were or could have been brought relating to Netgear's advertising and performance of its wireless products.  The Parties intend this Agreement to bind Netgear, Zilberman (both as a Class Representative and as an individual), and all members of the Settlement Class who do not request exclusion from the Settlement Class.  This Agreement, including the provision regarding attorneys' fees and costs, was mediated under the supervision of Judge William J. Cahill.

NOW, THEREFORE, in light of the foregoing, for good and valuable consideration, the Parties, and each of them, hereby warrant, represent, acknowledge, covenant, and agree, subject to approval by the Court, as follows:  

//

//

//

//

	DEFINITIONS

	"Covered Netgear Wireless Products" means the Netgear wireless products identified by model number in Attachment A attached hereto.  Any one of the Covered Netgear Wireless Products is referred to as a "Covered Netgear Wireless Product."
	"Class Counsel" means Jordan L. Lurie and Zev B. Zysman of the law firm Weiss & Lurie.
	"Effective Date" means the first date after which all of the following events and conditions have been met or have occurred:

	All Parties and their counsel have executed this Agreement; 
	The Court has conditionally certified the Settlement Class, preliminarily approved the settlement embodied in this Agreement, and provided for approved notice and claim instructions to the Settlement Class by entry of an order substantially in the form of Exhibit A hereto;
	Netgear has determined that fewer than a certain number (the "Tip-Over Number") of potential members of the "Settlement Class," as defined herein, have requested exclusion from the Settlement Class or, if the Tip-Over Number has been reached, Netgear has not exercised its option to withdraw from and terminate the settlement as provided below.  The Tip-Over Number has been stated in a confidential letter from Netgear to Class Counsel;
	The Court has entered a Judgment and Order of Dismissal of the Zilberman Action, substantially in the form of Exhibit E hereto, providing final approval of the Agreement, certifying the Settlement Class, and dismissing with prejudice all claims by the Settlement Class that were asserted in the Zilberman Action; and
	The Judgment and Order of Dismissal has become "Final," as defined herein.

D."Final" means that the time for appeal or writ has expired or, if an appeal and/or petition for review is taken and the settlement is affirmed, the time period during which further petition for hearing, appeal or writ of certiorari can be taken has expired.  If the Judgment is set aside, materially modified, or overturned by the trial court or on appeal, and is not fully reinstated on further appeal, the Judgment shall not become "Final."

E."Released Claims" means any and all liabilities, claims, cross-claims, causes of action, rights, actions, suits, debts, liens, contracts, agreements, damages, restitution, disgorgement, costs, attorneys' fees, losses, expenses, obligations or demands, of any kind whatsoever, whether in arbitration, administrative, or judicial proceedings, whether as individual claims or as claims asserted on a class basis or on behalf of the general public, whether known or unknown, suspected or unsuspected, threatened, asserted or unasserted, actual or contingent, liquidated or unliquidated, whether under federal statutory law, federal common law or federal regulation, or the statutory or common laws or regulations of any and all states or subdivisions, which are alleged or could have been alleged in the Zilberman Action, including claims relating to the advertising of, and the signal and data transfer rates performed by, the Covered Netgear Wireless Products.  Released Claims shall not include claims for personal injury and claims involving product defects unrelated to the Mbps signal and data transmission rates.  

F."Released Parties" means Netgear, and each of its predecessors, successors, parents, subsidiaries and affiliates, and each of their past and present officers, directors, employees, agents, attorneys, accountants, advisors, shareholders, representatives, partners, heirs and assigns.

G."Settlement Class" means all persons or entities in the United States who purchased a Covered Netgear Wireless Product from January 1, 1999 through November 22, 2005, who resided in the United States at the time of purchase, purchased the Covered Netgear Wireless Product at a location within the United States, purchased the Covered Netgear Wireless Product new or refurbished (i.e., not second hand) from an entity that regularly sells/sold such devices or items, and did not purchase the Covered Netgear Wireless Product for resale to others. 

H."Settlement Class Member" means a person who fits within the definition of the Settlement Class and who has not validly and timely requested exclusion from the Settlement Class. 

	DENIAL OF LIABILITY

Netgear maintains that it has consistently acted in accordance with governing laws at all times and denies that it has committed any violations of law or engaged in any wrongful acts alleged in the complaint filed in the Zilberman Action, McGrew Action, or otherwise.

III.CONSIDERATION FOR SETTLEMENT

In full and complete settlement of all claims in the Zilberman Action, the Parties agree that:

	15% Discount Off New Wireless Product

Each Settlement Class Member who timely submits a valid Proof of Purchase during the Claim Period is eligible to purchase a new Netgear wireless product from Netgear's online store, <www.buynetgear.com>, at a 15% discount during the "Redemption Period," as defined below, by using a Promotional Code provided by Netgear to eligible Settlement Class Members.  This discount will be applied at the point of sale before any rebates, discounts, or other promotions that may otherwise be offered by Netgear on its online store for the product to be purchased, and only one Promotional Code can be applied to each purchase.  In addition, each Settlement Class Member will receive free shipping of their new Netgear wireless product purchased pursuant to this Agreement.  During the Redemption Period, Netgear will not remove from the online store any Netgear wireless product that has not otherwise been discontinued for sale. 

	Proof of Purchase 

To be eligible for a 15% discount on the purchase of a new Netgear wireless product, each Settlement Class Member must make a claim by entering the serial number of his or her previously-purchased Covered Netgear Wireless Product on a website that Netgear will create and maintain for this purpose (the "Website").  The page on the Website where settlement claim information is entered ("Claim Form") will be substantially in the form of Exhibit D hereto.  When a timely and valid claim is submitted on the Website, the claimant will be sent via e-mail, within 7 business days of making a claim, a Promotional Code that will allow the claimant to receive the 15% discount at the point of sale (one Promotional Code per qualifying product).  A Promotional Code can be used toward the purchase of a Netgear wireless product from Netgear's online store during the Redemption Period.  If the Settlement Class Member no longer possesses the Covered Netgear Wireless Product and therefore cannot submit a serial number on the Website, that Settlement Class Member may submit a copy of the original purchase receipt for the Covered Netgear Wireless Product by mail to Netgear along with a printed version of the Claim Form, available at the same Website, in order to obtain the Promotional Code.  If the mailed-in claim is approved, Netgear will send the Promotional Code to the Settlement Class Member via e-mail to a valid e-mail address specified by the Settlement Class Member on the printed Claim Form.  When making a claim submission, whether by mail or on the Website, each Settlement Class Member must attest under penalty of perjury that he or she has not previously made a claim, as described above, for the same product as identified by a unique serial number. 

	Transferability 

Settlement Class Members may transfer their Promotional Codes to another person or entity one time prior to being used.  The person or entity to whom the Settlement Class Member transfers the Promotional Code shall be eligible to redeem the coupon at Netgear's online store.  Transferring the same Promotional Code more than once will render the Promotional Code void. 

	Claim Period  

The time period in which each Settlement Class Member will be able to submit a Proof of Purchase (the "Claim Period") shall commence on the day after Notice is first published and shall terminate 60 days after the Effective Date. 

	Redemption Period  

The period in which each Settlement Class Member (who has submitted a valid Proof of Purchase) can redeem the 15% discount shall commence one week after the Effective Date of the settlement and terminate 12 months thereafter (the "Redemption Period").  An e-mail shall be sent by Netgear to all claimants at or around the Effective Date informing them of the commencement of the Redemption Period.

	Disputed Claims  

In the event that Netgear rejects any claim for a Promotional Code based upon the timing of the request, or the insufficiency of the Proof of Purchase, Netgear will notify the claimant of the rejection, and advise the claimant that he or she may challenge the rejection by contacting Netgear within 21 days of the rejection, and informing Netgear of the basis for the challenge.  Netgear will attempt to resolve the dispute in good faith with the claimant within 30 days of receipt of the challenge.  If the dispute remains, the claimant will be notified that he or she has 14 days to contact Class Counsel to appeal Netgear's rejection of the claim.  If Class Counsel believes the rejection of the claim was appropriate, Class Counsel will so notify the claimant and Netgear's counsel within 14 days of being contacted by the claimant, and the appeal will be rejected and concluded.  If Class Counsel disputes the rejection, Class Counsel will so notify Netgear's counsel within 14 days of receipt of the appeal, and the Parties will attempt to resolve any and all disputes in good faith.  If the claim is accepted as a result of the appeal process, the claimant will be provided with his or her Promotional Code within 7 days of notification that the claim was accepted, and shall have until the end of the Redemption Period, or 60 days, whichever is later, to use the Promotional Code.    

	Changes to Advertising

Commencing as soon as practicable after the Effective Date, each Covered Netgear Wireless Product shall have the following language on its packaging:  

Maximum wireless signal rate derived from IEEE Standard 802.11 specifications.  Actual data throughput will vary.  Network conditions and environmental factors, including volume of network traffic, building materials and construction, and network overhead, lower actual data throughput rate. 

Such language shall also appear on Netgear's website and in user manuals with respect to Covered Netgear Wireless Products.  To the extent that Netgear issues a press release that makes reference to a maximum wireless signal rate based on IEEE Standard 802.11specifications, that press release will also include this language.

	Charitable Donation

Within 90 days of the Effective Date, Netgear shall donate $25,000 worth of its products to a local, not-for-profit charitable organization to be chosen by Netgear, and to be identified to the Court by the date of the hearing on final approval of the proposed settlement.

	Attorneys' Fees and Costs

Netgear agrees to pay, subject to court approval, attorneys' fees and costs in the amount of $700,000.00.  Within five (5) business days of entry of the Order Preliminarily Approving Class Action Settlement, substantially similar in form to Exhibit A attached hereto, Netgear will pay $700,000.00 which will be deposited in an interest bearing accounted maintained by Class Counsel.  In the event that the Effective Date does not occur, Judgment or any order with respect to an award of fees and costs is reversed or modified on appeal, or the Court reduces the award at or in connection with Class Counsel's attorneys' fees request, Class Counsel shall within five (5) business days from receiving notice from Netgear's counsel, or from a court of appropriate jurisdiction, refund all of the fees and costs (or the amount above the amount awarded by the Court) previously paid plus interest.  No other request for attorneys' fees and costs from Netgear will be made.  Netgear shall not be liable for any additional fees or expenses of Zilberman or any Settlement Class Member in connection with the Zilberman Action.  Netgear agrees that it will not seek to recover its costs, attorneys' fees, or expenses once the Court enters a dismissal of the Zilberman Action.

IV.NOTICE TO THE SETTLEMENT CLASS

The Parties agree to and will request approval by the Court of the following forms and methods of notice to the Settlement Class:

A copy of the Notice of Pendency and Proposed Settlement of Class Action and Settlement Claim Information, substantially in the form attached hereto as Exhibit B (the "Class Notice"), shall be (1) published once in a quarter-page ad in USA Today, a newspaper of national circulation; (2) published once in a quarter-page ad in the Wall Street Journal, a newspaper of national circulation; and (3) posted during the Claim Period on a website, accessible via links from Netgear's website, www.netgear.com, in the following four places:  the "home page" (http://www.netgear.com), the "where to buy" page (http://www.buynetgear.com), the "support" page (http://kbserver.netgear.com/main.asp), and the "wireless products" page (http://www.netgear.com/products/consumer/cat_wireless_hm.php).  These links will state "Settlement Claim Information."  Netgear shall also publish the Summary Notice of Settlement     (the "Summary Notice"), substantially in the form attached hereto as Exhibit C, once in no smaller than a quarter-page ad in PC World magazine;

In addition, Netgear will send an e-mail to all consumers of Netgear's wireless products whose e-mail addresses Netgear has in its database and who did not indicate that he or she did not wish to receive any communications from Netgear.  This e-mail will provide a link to the website containing the Class Notice.

The costs of this Class Notice and Summary Notice shall be paid by Netgear, and Netgear shall be responsible for making all arrangements to effectuate the publication and posting of the Class Notice and Summary Notice as described above.  

V.CERTIFICATION OF THE SETTLEMENT CLASS

The Parties agree to certification of a nationwide class, for settlement purposes only, with the named plaintiff in the Zilberman Action serving as the Class Representative of the Settlement Class.  Netgear does not consent to the certification of a class for any purpose other than to effectuate the settlement of the Zilberman Action.  In the event the Agreement is terminated pursuant to its terms, the Effective Date does not occur, or for any reason the settlement described in this Agreement is not effectuated, the certification of the Settlement Class shall be vacated and the Zilberman Action shall proceed as though the Settlement Class had never been certified. 

VI.COURT APPROVAL, RELEASES AND CONSUMMATION OF THE SETTLEMENT AGREEMENT

A.Obtaining Court Approval

The Class Representative will promptly seek the following:

	An order of the Court, substantially similar in form to Exhibit A attached hereto, (a) conditionally certifying the Settlement Class, (b) approving the form of the Class Notice and Summary Notice substantially similar in form to Exhibit B and Exhibit C attached hereto, the method of providing notice pursuant to section IV herein, and the Claim Form, substantially similar in form to Exhibit D attached hereto, (c) granting preliminary approval of the Agreement as within a range that is fair, reasonable and adequate, and (d) setting a fairness hearing on the proposed settlement;
	Entry of a Judgment and Order of Dismissal, substantially similar in form to Exhibit E attached hereto, providing:

	The final approval of the Agreement, dismissal with prejudice of the Zilberman Action, and release of the Released Parties from the Released Claims; and 
	That members of the Settlement Class, who do not file valid and timely requests for exclusion pursuant to the Class Notice and Summary Notice above, will be bound by the Final Judgment and Order of Dismissal.

B.Releases

1.Upon the Effective Date, the Class Representative, for himself and as representative of the Settlement Class, and on behalf of each Settlement Class Member and their respective agents, successors, heirs, or assigns, shall be deemed to have, and by operation of the Final Judgment and Order of Dismissal, shall have fully, finally, and forever irrevocably released, relinquished and discharged with prejudice all Released Claims against the Released Parties.  By operation of the Final Judgment and Order of Dismissal, all Settlement Class Members shall be deemed to have waived any and all provisions, rights, and benefits conferred by section 1542 of the California Civil Code or any comparable statutory or common law provision of any other jurisdiction with respect to the Released Claims.  Section 1542 reads as follows:
Certain Claims Not Affected By General Release:  A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. 

Although the releases granted under the proposed settlement are not general releases, all Settlement Class Members nonetheless expressly acknowledge that they are waiving the protections of section 1542 and of any comparable statutory or common law provision of any other jurisdiction.

2.Upon the Effective Date, each of the Released Parties shall be deemed to have, and by operation of the Judgment and Order of Dismissal shall have, fully, finally and forever released, relinquished and discharged each and all of the Settlement Class Members and Plaintiff Zilberman in his individual capacity and as Class Representative, and his attorneys from all claims arising out of the institution, prosecution, assertion, or resolution of the Zilberman Action.

C.Non-Consummation of Settlement

1.Netgear shall have the option to withdraw from the settlement in the event that more than the Tip-Over Number of members of the Settlement Class opt-out of the settlement.  Netgear shall be entitled to exercise the above option to withdraw from and terminate the settlement only if it provides to Class Counsel written notice within five business days from the day it determines that the number of members of the Settlement Class who have requested exclusion exceeds the Tip-Over number.  Class Counsel may attempt to cause retraction of any election of exclusion by class members or any group thereof. If Netgear has exercised the option to withdraw from and terminate the settlement and if Class Counsel succeed in causing the retraction (within the time period specified below for such retractions) of sufficient requests for exclusion such that the remaining requests for exclusion do not exceed the Tip-Over number, Netgear's notice of withdrawal from the settlement automatically shall be deemed a nullity.  To retract a prior request for exclusion, the Settlement Class Member must provide to the Parties, at least three business days prior to the Settlement Hearing, or any adjournment thereof, a written notice stating his or her desire to retract the request for exclusion from the Settlement Class.  Any dispute among the Parties concerning the interpretation or application of this Tip-Over provision may be presented to the Court for resolution upon the application of any party hereto.

2.Should this Agreement not receive final Court approval for any reason, or if this Agreement is canceled or terminated or is overturned on appeal, or does not become Final as a result of further proceedings on remand, this Agreement shall be null and void and of no force and effect, and nothing herein shall be deemed to prejudice the position of any of the Parties with respect to the Zilberman Action or otherwise, and neither the existence of this Agreement nor its contents shall be admissible in evidence, referred to for any purpose in the Zilberman Action or in any other litigation or proceeding, or be deemed a presumption, concession or admission by Netgear of any fault, liability or wrongdoing.  

VII.ADDITIONAL TERMS

A.Stay of the Case

The Parties agree that all proceedings in the Zilberman Action, except as necessary to consummate the settlement for which this Agreement provides, will be stayed, unless otherwise ordered by a court.  

B.Protective Order

The Parties agree that all confidential information will be treated in accordance with Court's Protective Order entered in the Zilberman Action.

C.Continuing Jurisdiction of the Court

Pursuant to Section 664.6 of the California Code of Civil Procedure, and notwithstanding the entry of judgment, the Court shall retain jurisdiction of the Zilberman Action until such time as the Court determines that the settlement is fully consummated according to the terms and conditions of this Agreement.  The Parties will notify the Court once the Agreement has been fully performed.

D.Press Releases

With the exception of any press release that Netgear may need to issue for S.E.C. or public company reporting purposes, neither the Class Representative, Class Counsel, nor Netgear will  issue any press release regarding the settlement, its terms, or the cessation of the litigation, unless the Parties mutually agree to such action in writing. 

E.Extensions Of Time  

Unless otherwise ordered by the Court herein, the Parties may jointly agree to reasonable extensions of time to carry out any of the provisions of this Agreement.

F.Integration 

This Agreement constitutes a single, integrated written contract expressing the entire agreement of the Parties relative to the subject matter hereof.  No covenants, agreements, representations, or warranties of any kind whatsoever have been made by any party hereto, except as provided for herein.  

G.Governing Law  

The Agreement shall be construed in accordance with, and be governed by, the laws of the State of California, without regard to the principles thereof regarding choice of law.

H.Survival of Warranties and Representations

The warranties and representations of this Agreement are deemed to survive the date of execution hereof.

I.Representative Capacity  

Each counsel or other person executing this Agreement in a representative capacity represents and warrants that he or she has the full authority to do so. 

J.Counterparts  

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, even though all Parties do not sign the same counterparts.
K.Cooperation of Parties  

The Parties to this Agreement agree to execute all documents, to seek Court approvals, defend Court approvals, and to do all things reasonably necessary to complete the settlement described in this Agreement.
L.Execution Voluntary  

This Agreement is executed voluntarily by each of the Parties without any duress or undue influence on the part, or on behalf, of any of them.  The Parties represent and warrant to each other that they have read and fully understand the provisions of this Agreement and have relied on the advice and representation of legal counsel of their own choosing.  Each of the Parties has cooperated in the drafting and preparation of this Agreement and has been advised by counsel regarding the terms, effects, and consequences of this Agreement.  Accordingly, in any construction to be made of this Agreement, this Agreement shall not be construed as having been drafted solely by any one or more of the Parties.
M.Modification and Amendment 

This Agreement may be amended or modified only by a written instrument signed by the Parties' counsel and approved by the Court.

 
Dated: November  17,  2005NETGEAR, INC.

 
By: /s/ Albert Liu

                        Title: General Counsel

 

 

 

 

 

 

 
Dated: November  16,  2005LEV ZILBERMAN

 

By:/s/ Lev Zilberman

Individually and as Class Representative

 

 

APPROVED AS TO FORM:

Dated: November  17,  2005Keith E. Eggleton 

Rodney G. Strickland, Jr.

WILSON SONSINI GOODRICH & ROSATI

 

 

By:  /s/ Rodney G. Strickland, Jr.

Rodney G. Strickland, Jr. 
650 Page Mill Road

Palo Alto, CA 94304-1050

Tel:       (650) 493-9300

Fax:      (650) 493-6811

 Attorneys for Netgear, Inc. 

 

 
Dated: November 16,  2005Jordan L. Lurie

Zev B. Zysman 

WEISS & LURIE

 
By:/s/ Jordan L. Lurie

        Jordan L. Lurie 
        10940 Wilshire Blvd., 23rd Floor

        Los Angeles, CA  90024
        Tel:(310)  208-2800 

        Fax:(310)  209-2348 

Attorneys for Plaintiff Lev Zilberman,          the Proposed Class, and the General                                                       Public

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