Netgear 2012 Annual Report Download - page 115

7. Term of Plan . Subject to Section 21
of the Plan, the Plan shall become effective upon its adoption by the
Board. It shall continue in effect for a term of ten (10) years unless terminated earlier under Section 17 of the Plan.
8.
Term of Option
. The term of each Option shall be stated in the Option Agreement. In the case of an Incentive
Stock Option, the term shall be ten (10) years from the date of grant or such shorter term as may be provided in the Option
Agreement. Moreover, in the case of an Incentive Stock Option granted to an Optionee who, at the time the Incentive Stock
Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the
date of grant or such shorter term as may be provided in the Option Agreement.
9.
Option Exercise Price and Consideration .
(a)
Exercise Price
. The per share exercise price for the Shares to be issued pursuant to exercise of an Option
shall be determined by the Administrator, subject to the following:
(i)
In the case of an Incentive Stock Option
(1)
granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant.
(2)
granted to any Employee other than an Employee described in paragraph (A) immediately above,
the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.
(ii)
In the case of a Nonstatutory Stock Option, the per Share exercise price shall be determined by the
Administrator and shall be no less than 100% of the Fair Market Value per Share on the date of grant.
(iii)
Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than
100% of the Fair Market Value per Share on the date of grant pursuant to a merger or other corporate transaction.
(b)
Waiting Period and Exercise Dates
. At the time an Option is granted, the Administrator shall fix the period
within which the Option may be exercised and shall determine any conditions that must be satisfied before the Option may
be exercised.
(c)
Form of Consideration
. The Administrator shall determine the acceptable form of consideration for
exercising an Option, including the method of payment. In the case of an Incentive Stock Option, the Administrator shall
determine the acceptable form of consideration at the time of grant. Such consideration may consist, subject to Applicable
Laws, entirely of:
(i)
cash;
(ii)
check;
(iii)
promissory note;
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