Common use of IPO Bonus Clause in Contracts

IPO Bonus. Subject to your continued employment with the Company through the effective date of a registration statement of the Company filed under the Securities Act of 1933, as amended, for the sale of the Company’s common stock (the “IPO”), you will receive a one-time bonus in an amount equal to (i) (x) $1,250,000 minus (y) the total gross amount of the cash compensation you actually receive during the period beginning on the date you commenced employment with NETGEAR and ending on the date of the IPO (the “Pre-IPO Period”) multiplied by (ii) the fraction obtained by dividing the number of days in the Pre-IPO Period by 365 (provided that in no event will such fraction exceed 1), which will be subject to applicable withholdings and paid on the first payroll date after the IPO.