MERCADOLIBRE, INC. 2018 LONG TERM
RETENTION PROGRAM


 


 


 


 


 


 


 


 


 


Effective as of January
1, 2018


 




 


Contents


 





MercadoLibre, Inc. 2018 Long Term Retention Program




	Article 1.   Purpose	1
	Article 2.   Definitions	1
	Article 3.   Participation; Performance Goals and Award Opportunities	5
	Article 4.   Review of Participant’s Performance	6
	Article 5.   Payment of Awards	6
	Article 6.   Termination of Employment; Forfeitures	8
	Article 7.   Administrative Provisions	10




     


     


    

MERCADOLIBRE,
INC. 2018 LONG TERM RETENTION PROGRAM


Article 1.                
Purpose


The MercadoLibre, Inc. 2018 Long Term Retention Program (the
“Plan”) is effective as of January 1, 2018. The principal purpose of the Plan is to assist the Company in the
retention of key employees that have valuable industry experience and developed competencies by rewarding Participants in relation
to their individual results and their contributions to the organization, as well as overall Company goals and performance.


Article 2.                
Definitions


When
used in the Plan, the following terms shall have the meanings set
forth below:


“Affiliate” means with respect to
any Person, a Person that controls, is controlled by, or is under common control with such Person (it being understood, that a
Person shall be deemed to “control” another Person, for purposes of this definition, if such Person directly or indirectly
has the power to direct or cause the direction of the management and policies of such other Person, whether through holding ownership
interests in such other Person, through agreements or otherwise, and that direct or indirect ownership of ten percent (10%) or
more of the voting interests of another Person shall always be deemed to constitute “control”).


“Award” means any Fixed Award or
any Variable Award.


“Award Committee” means the Compensation
Committee of the Board, or such other committee that the Board appoints to administer this Plan, which shall have general administrative
authority concerning the Plan, and shall, subject to Article 7, have the sole and absolute authority and discretion to resolve
any and all terms and conditions of any Awards and disputes concerning the Plan and any Awards hereunder.


“Board” means the board of directors
of the Company.


“Cause” means “cause”
or a similar term set forth in the Participant’s employment agreement with the Company or, if no such agreement is then in
effect, shall mean (A) the Participant’s material disregard of his responsibilities, authorities, powers, functions or duties
or failure to act, (B) repeated or material negligence or misconduct by the Participant in the performance of his duties, (C) appropriation
(or attempted appropriation) of a business opportunity of the Company, including attempting to secure or securing any personal
profit in connection with any transaction entered into on behalf of the Company, (D) the commission by the Participant of any act
of fraud, theft or financial dishonesty with respect to the Company, or any felony or criminal act involving moral turpitude or
dishonesty on the part of the Participant, (E) the Participant’s habitual drunkenness or excessive absenteeism not related
to sickness, and/or (F) the material breach by the Participant of any provision of his employment agreement that is not cured by
the Participant within thirty (30) days after written notice of breach has been delivered to the Participant by the Company, unless
such breach is incapable of cure (in which case




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the Participant shall not be entitled to an opportunity
to cure), in each case of clauses (A) through (F) above, as determined by the Board in good faith.


“Change in Control” shall mean a
change in control of the Company which will be deemed to have occurred after the date hereof if:


		(a)	any “person” as such term is used in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d)
and 14(d) thereof, is or becomes the beneficial owner, as such term is defined in Rule 13d-3 under the Exchange Act, directly or
indirectly, of securities of the Company representing at least fifty percent (50%) of the combined voting power or Shares of the
Company; provided, however, that such term shall not include (A) the Company or any of its subsidiaries, (B) any trustee or other
fiduciary holding securities under an employee benefit plan of the Company or any of its affiliates, (C) an underwriter temporarily
holding securities pursuant to an offering of such securities, (D) any corporation owned, directly or indirectly, by the shareholders
of the Company in substantially the same proportions as their ownership of the Company’s Shares, or (E) any person or group
as used in Rule 13d-1(b) under the Exchange Act;



		(b)	there is consummated a merger or consolidation of the Company or any of its direct or indirect subsidiaries with any other
corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving
entity or any parent thereof) more than fifty percent (50%) of the combined voting power and Shares of the Company or such surviving
entity or any parent thereof outstanding immediately after such merger or consolidation; or



		(c)	there is completed a sale or disposition by the Company of all or substantially all of the Company’s assets (or any transaction
having a similar effect, including a liquidation) other than a sale or disposition by the Company of all or substantially all of
the Company’s assets to an entity, more than fifty percent (50%) of the combined voting power and Shares of which is owned
by shareholders of the Company in substantially the same proportions as their ownership of the Shares of the Company immediately
prior to such sale.



“Company” means MercadoLibre, Inc.
and its consolidated subsidiaries, and MercadoLibre, Inc.’s successors or assigns.


“Covered Termination” means (i)
a termination of a Participant’s employment by the Company without Cause and for a reason other than the Participant’s
death or disability (as determined under Article 6(a)) or (ii) a Participant’s resignation from the Company with Good Reason).


“Eligible Employee” means an individual
who is designated by the Award Committee as eligible for this Plan and who is employed by the Company as determined by the Award
Committee.




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“Fixed Award” means a specified
cash award, calculated in accordance with Article 5, payable to a Participant under this Plan for services provided to the Company
in 2018, as determined by the Award Committee from time to time in its sole discretion. Fixed Award payments shall be contingent
on the attainment of one or more Performance Goals. The timing and conditions of the payment of the Fixed Award are subject to
the terms and conditions of the Plan and, subject to Article 7 of the Plan, any other terms and conditions determined by the Award
Committee to be appropriate. The Fixed Award may, but is not required to, be evidenced by a separate agreement executed by the
Participant.


“Good Reason” means (i) a material
diminution in the Participant’s duties, functions and responsibilities to the Company without the Participant’s consent
or the Company preventing the Participant from fulfilling or exercising the Participant’s materials duties, functions and
responsibilities to the Company without the Participant’s consent; (ii) a material reduction in the Participant’s base
salary or bonus opportunity or (iii) a requirement that the Participant relocate the Participant’s employment more than fifty
(50) miles from the location of the Participant’s principal office without the consent of the Participant. A Participant’s
resignation shall not be a resignation with Good Reason unless the Participant gives the Company written notice (delivered within
thirty (30) days after the Participant knows of the event, action, etc. that the Participant asserts constitutes Good Reason),
the event, action, etc. that the Participant asserts constitutes Good Reason is not cured, to the reasonable satisfaction of the
Participant, within thirty (30) days after such notice and the Participant resigns effective not later than thirty (30) days after
the expiration of such cure period.


“Market Value” of a Share, as of
any date, means (i) the average closing sale price of one Share as reported on a national stock exchange, including, but not limited
to, the NASDAQ Global Market (a “National Stock Exchange”) during the sixty (60) trading day period (or such shorter
period as the Shares are so listed) ending on the last trading day immediately preceding such date; (ii) if the Shares are not
listed for trading on a National Stock Exchange during any day in that sixty (60) trading day period but are quoted on the Over-the-Counter-Bulletin
Board (the “OTCBB”), the mean between the closing bid and closing asked prices for the Shares as quoted on the OTCBB
during the sixty (60) trading day period (or such shorter period as the Shares are so quoted) ending on the last trading day immediately
preceding such date, (iii) if the Shares are not listed for trading on a National Stock Exchange or quoted on the OTCBB during
any day in that sixty (60) trading day period and the Shares were last traded on a National Stock Exchange, the average closing
sale price of one Share as reported on the National Stock Exchange during the ninety (90) trading day period ending on the last
day the Shares were listed for trading on such Exchange or (iv) if the Shares are not listed for trading on a National Stock Exchange
or quoted on the OTCBB during any day in that sixty (60) trading day period and the Shares were last traded on the OTCBB, the mean
between the closing bid and closing asked prices for the Shares as quoted on the OTCBB during the ninety (90) trading day period
ending on the last day the Shares were quoted on the OTCBB. For purposes of calculating the benefits and valuing Shares for the
single cash payment payable within fifteen (15) days after a Change in Control, the term “Market Value” means the amount
determined under the preceding sentence determined as of the




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date on which the Change in Control occurs. For purposes
of calculating benefits and valuing Shares for other payments payable after a Change of Control, the term “Market Value”
means, (x) in the event the Company is not the surviving entity in the Change in Control, the amount determined under the first
sentence of this paragraph and determined as of the date on which the Change in Control occurs, or, (y) in the event the Company
is the surviving entity in the Change in Control, the greater of (A) the amount determined under the first sentence of this paragraph
and determined as of the date the benefit is a payable (e.g., as of March 31 of the appropriate year or the date of
a Participant’s Covered Termination, as applicable) or (B) the amount determined under the first sentence of this paragraph
and determined as of the date on which the Change in Control occurs.


“MercadoLibre Business” means any
activities directly or indirectly related to Online Transactional Platforms, Online Classified Advertisements and/or Payment Platforms.


“Minimum Eligibility Conditions”
means the minimum conditions established by the Award Committee and approved by the Board that a Participant must meet in order
to be eligible to receive payments under any Award hereunder.


“Online Classified Advertisements”
means listings of goods, products or services on Internet sites, which listings (1) serve the same purpose as the listings appearing
in the classifieds section of printed newspapers, (2) include direct contact information of the seller via telephone, e-mail or
any offline method, which contact information is readily and continuously available to any visitor without restriction or special
action required from the visitor, or provide for a method to contact the seller so that the seller may then respond providing direct
contact information, and (3) are on Internet sites the operator or administrator of which does not (x) play any role in consummating
the transaction to which the listing relates, or (y) provide any information (other than contact information) to the seller regarding
the potential buyer or interested party, or otherwise serve as middle-man between a potential buyer and seller (other than for
the limited purposes expressly set forth in this paragraph), or (z) charge any fee or commission for such transaction (including,
without limitation, any fees for completion of transactions and/or fees based on number of users contacting another user) other
than a listing fee, which is a fee for placing the listing on the website and is chargeable before or at the time such listing
appears. Examples of Online Classifieds Advertisements include Craigslist.com, Kijiji.com, and olx.com.


“Online Transactional Platforms”
means online transactional platforms or similar as determined by the Award Committee including, but not limited to, (a) any online
platform offering a wide variety of product lines and/or services, operating in a manner similar to Amazon.com or Submarino.com
as of the date hereof and/or (b) online transactional marketplaces located on websites in which sellers and potential buyers transact
for any kinds of goods and/or services, which goods and/or services are displayed on such website, and in which the sellers’
and potential buyers’ initial contact can only be made through such website (for purposes of initial contact, direct contact
information of another user is not made available to users, in accordance with the terms




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of use of such website), such as eBay.com, MercadoLibre.com,
DeRemate.com, etc. (and any such domain name with country suffixes).


“Participant” means an Eligible
Employee who is designated as eligible to receive an Award for services provided in 2018. The designation of an individual as a
Participant under this Plan shall not provide the individual with any rights to any future participation for any subsequent long
term retention plans that may be adopted by the Company in future years but, subject to the terms of the Plan, an individual shall
remain a Participant for purposes of receiving a payment of an Award until such individual ceases to be an Eligible Employee.


“Payments Platforms” means websites
or platforms enabling the sending, receipt, holding and/or transfer of money from one user to another user through an account that
is funded by, among other things, traditional payment methods and then used to transact with another user electronically, such
as PayPal.com, MercadoPago.com, or Dineromail.com (and any such domain name with country suffixes).


“Performance Goals” means any goals,
metrics or other performance measures of the Company in 2018 that is established for a Participant, the attainment of which will
result in an Award becoming payable to the Participant, subject to the terms of the Plan. It is currently anticipated that Performance
Goals generally will be based on pre-set goals for financial and operational performance of the Company.


“Person” means and includes a natural
person, a corporation, an association, a partnership, a limited liability company, a trust, a joint venture, an unincorporated
organization or any other similar entity or a governmental or quasi-governmental body.


“Shares” means shares of common
stock of the Company, $0.001 par value per share.


“Territory” means the United States
of America and each country and territory in Latin America and the Caribbean, including, without limitation, Argentina, Bolivia,
Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama,
Paraguay, Peru, Puerto Rico, Uruguay, and Venezuela.


“Variable Award” means a specified
cash award, calculated in accordance with Article 5, payable to a Participant under this Plan for services provided to the Company
in 2018, as determined by the Award Committee from time to time in its sole discretion. Variable award payments hereunder shall
be contingent on the attainment of one or more Performance Goals. The timing and conditions of the payment of the Variable Award
are subject to the terms and conditions of the Plan and any other terms and conditions determined by the Award Committee to be
appropriate in accordance with Article 7 of the Plan. The Variable Award may, but is not required to, be evidenced by a separate
agreement executed by the Participant.





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 Article 3.               Participation;
Performance Goals and Award Opportunities


The amount of the Awards for each Plan Participant and the
Performance Goals applicable to such Awards will be established by the Award Committee and communicated to each Plan Participant.
The amount of each Award may be different for each Participant or levels of Participants as determined by the Award Committee.


The
amount of each Award shall be enumerated as a specified amount, calculated in accordance with Article
5 hereof, of United States dollars, unless the Award Committee determines the amount of any such Award in a local currency. The
amount of each Award, to the extent it becomes payable, shall be paid in the form of cash only. 


Article 4.                
Review of Participant’s Performance


Performance
Goals will generally be set and determined for the 2018 calendar
year by the Award Committee. The Award Committee, with input from
the Company officer responsible for each Participant, will evaluate such Participant’s performance relative to the Performance
Goals.


Article 5.                
Payment of Awards


(a)        If a Participant
does not satisfy the Minimum Eligibility Conditions, then any Award granted to such Participant and subject to such Minimum Eligibility
Conditions shall be forfeited, and shall not become payable to such Participant under this Plan. If the Participant meets the Minimum
Eligibility Conditions, then any Award granted to such Participant and subject to such Minimum Eligibility Conditions shall become
payable to the Participant in accordance with and subject to the terms of this Article 5 and Article 6.


Subject to the following paragraphs and Article 6, only if
the Participant is employed as an Eligible Employee on the date each portion of the Fixed and the Variable Awards, as applicable,
are to be paid to such Participant, any such Awards shall be payable as follows:


If a Participant has been granted a Fixed Award:


		(1)	Sixteen and two-thirds percent (16.66%) of such Fixed Award shall be payable to the Participant on or about March 31 of
each calendar year for a period of six (6) years starting in 2018; and



If a Participant has been granted a Variable Award:


		(2)	the Participant shall receive on or about March 31 of each calendar year for a period of six (6) years starting in 2018,
a Variable Award payment equal in value to the product of (i) multiplied by (ii), where (i) equals sixteen and two-thirds percent
(16.66%) of the Variable Award and (ii) equals the quotient of (a) divided by (b), where (a), the numerator, equals the Market
Value as of the applicable payment date and (b), the denominator, equals $270.84 (the average closing price of the Company’s
common stock on the NASDAQ Global Market during the final sixty (60) trading days of 2017).





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(b)        Notwithstanding
anything in the Plan or any other agreement entered into in connection
with or pursuant to the Plan: 


		(1)	Each Participant who is employed by the Company on the date a Change in Control occurs shall be vested in the right to receive
fifty percent (50%) of the Award payments scheduled to be paid thereafter.



		(2)	As soon as practicable after the date a Change in Control occurs, but in no event more than fifteen (15) days after the date
a Change in Control occurs, each Participant described in clause (1) of this paragraph shall receive a single cash payment equal
to fifty percent (50%) of the Award payments scheduled to be paid after the Change in Control (based on the Market Value on the
date the Change in Control occurs).



		(3)	Each Award payment scheduled to be paid after the Change in Control shall be reduced by fifty percent (50%), i.e., to
reflect the single cash payment under clause (2) of this paragraph, and shall continue to be paid on each March 31 in accordance
with the preceding paragraph, subject to the Participant’s continued employment; provided, however, that if a Participant
described in clause (1) of this paragraph experiences a Covered Termination on or after Change in Control, then any Award payments
scheduled to be paid after the Covered Termination shall be paid in a single cash payment (based on the Market Value on the date
of the Covered Termination) within fifteen (15) days after the Covered Termination.



(c)        Notwithstanding
anything in the Plan or any agreement entered into in connection with or pursuant to the Plan:


		(1)	The portion of any Award under this Plan that was forfeited or forfeitable upon the Participant’s Covered Termination
before a Change in Control shall be reinstated (or if not yet forfeited, retained) as of the date of the Change in Control if such
date is not more than one hundred and twenty (120) days after the date of the Covered Termination.



		(2)	As soon as practicable after the date a Change in Control occurs, but in no event more than fifteen (15) days after the date
a Change in Control occurs, each Participant described in clause (1) of this paragraph shall receive a single cash payment equal
to one hundred percent (100%) of the Award payments scheduled to be paid after the date of the Participant’s Covered Termination.
With respect to any Award payment originally scheduled to have been paid before the date of the Change in Control, the amount of
such payment will be based on the Market Value on the date of the Covered Termination. With respect to any Award payments scheduled
to be paid on or after the Change in Control, the amount of such payment will be based on the Market Value on the date the Change
in Control occurs.





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(d)       
Notwithstanding anything in the Plan or any other agreement entered into in connection with or pursuant to the Plan:


		(1)	If any portion of an Award received or to be received by a
Participant (either alone or together with other payments or benefits which such Participant received or realized or is then entitled
to receive or realize from the Company under any other plan, program, arrangement or agreement in connection with a Change in Control
or a Participant’s termination of employment) (all such payments and benefits, being hereinafter referred to as the “Total
Payments”) would be subject (in whole or part), to any excise tax imposed under section 4999 of the Internal Revenue Code
of 1986 (the “Code”, and such excise tax, the “Excise Tax”), then, after taking into account any reduction
in the Total Payments provided by reason of section 280G of the Code in any other plan, program, arrangement or agreement, the
Company will reduce the payment of the Award to the extent necessary so that no portion of the Total Payments is subject to the
Excise Tax (but in no event to less than zero); provided, however, that the Award will only be reduced if (i) the
net amount of any Total Payments, as so reduced (and after subtracting the net amount of United States federal, state, municipal
and local income taxes on such reduced Total Payments and after taking into account the phase out, if any, of itemized deductions
and personal exemptions attributable to such reduced Total Payments), is greater than or equal to (ii) the net amount of such Total
Payments without such reduction (but after subtracting the net amount of federal, state, municipal and local income taxes on such
Total Payments and the amount of Excise Tax to which the Participant would be subject in respect of such unreduced Total Payments
and after taking into account the phase out, if any, of itemized deductions and personal exemptions attributable to such unreduced
Total Payments).



		(2)	If (A) any portion of the Total Payments other than an Award (the “Other Payments”) is required to be reduced pursuant
to a provision substantially similar to this Article 5.5(d), (B) any portion of an Award is required to be reduced pursuant to
this Article 5.5(d); and (C) there is no other provision in any other plan, program, arrangement or agreement governing the payment
of the Other Payments which dictates the order of the reduction in the Other Payments, then the Total Payments will be reduced
in the following order: (i) payments that are payable in cash that are valued at full value under Treasury Regulation Section 1.280G-1,
Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (ii) payments and benefits
due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a), with the highest values
reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (iii)
payments that are payable in cash that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24,
with amounts that are payable last reduced first, will next be reduced; (iv)





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payments and benefits due in respect of any equity
valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as
such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (v) all other non-cash
benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata. Any reductions made pursuant to each of
clauses (i)-(v) above will be made in the following manner: first, a pro-rata reduction of cash payment and payments and benefits
due in respect of any equity not subject to section 409A of the Code, and second, a pro-rata reduction of cash payments and payments
and benefits due in respect of any equity subject to section 409A of the Code as deferred compensation.


		(3)	For purposes of determining whether and the extent to which the Award will be subject to the Excise Tax and the amount of such
Excise Tax: (i) no portion of the Award the receipt or enjoyment of which the Participant shall have waived at such time and in
such manner as not to constitute a “payment” within the meaning of section 280G(b) of the Code will be taken into account;
and (ii) no portion of the Award will be taken into account which, in the opinion of the accounting firm which was, immediately
prior to the Change in Control, the Company’s independent auditor, does not constitute a “parachute payment”
within the meaning of section 280G(b)(2) of the Code (including by reason of section 280G(b)(4)(A) of the Code) and, in calculating
the Excise Tax, no portion of such Award will be taken into account which constitutes reasonable compensation for services actually
rendered, within the meaning of section 280G(b)(4)(B) of the Code, in excess of the Base Amount (as defined in section 280G(b)(3)
of the Code) allocable to such reasonable compensation.



		(4)	The fact that the Participant’s right to payments or benefits may be reduced by reason of the limitations contained in
this Article 5.5 will not of itself limit or otherwise affect any other rights of the Participant under the Plan. The Participant
and the Company shall each reasonably cooperate with the other in connection with any administrative or judicial proceedings concerning
the existence or amount of liability for Excise Tax with respect to the Award.



Article 6.                
Termination of Employment; Forfeitures


(a)               
Except as provided in Article 5 with respect to a Covered Termination within one hundred and twenty (120) days before a
Change in Control or a Covered Termination on or after a Change in Control, participation in the Plan shall cease immediately upon
a Participant’s retirement, resignation or termination of employment as an Eligible Employee for any reason (with or without
Cause), or if determined by the Award Committee, upon the Participant’s death or disability. Disability will be determined
under the Company’s long term disability plan, if any, or upon receipt of a letter of determination or similar of the Participant’s
complete disability




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by the applicable governmental authority under local applicable
law, which complete disability entitles the Participant to disability payments under local law.


(b)              
In the event that:


		(1)	while the Participant is employed by the Company, he or she engages in, directly or indirectly, any other business or activity
that could materially or adversely affect the Company’s business or his or her ability to perform his or her duties for the
Company, including, but not limited to, any activities adversely affecting the MercadoLibre Business anywhere in the Territory;



		(2)	while the Participant is employed by the Company or during the one-year period following the termination of the Participant’s
employment for any reason, he or she directly or indirectly, on his or her own behalf or on behalf of another Person or entity,
hires or solicits for hire any employees of the Company or its Affiliates or in any manner attempts to influence or induce any
employee of the Company or its Affiliates to leave their employment; or



		(3)	while the Participant is employed by the Company or during the one-year period following the termination of the Participant’s
employment for any reason, he or she alone (or in association with any other Person) directly or indirectly, in any capacity, owns,
operates, manages, controls, engages in, invests in, becomes employed by, acts as a consultant or advisor to, or provides services
for, or otherwise assists any other Person in activities that are competitive with the MercadoLibre Business anywhere in the Territory,



he
or she will automatically forfeit any and all benefits received under the Plan and any and all benefits which
the Participant may otherwise be entitled to receive under the Plan. If the Participant terminates employment with the Company
for any reason (with or without Cause) and he or she alone (or in association with any other Person) takes any of the action set
forth in subparagraph (1), (2) or (3) above, the Participant will be required to immediately, and in no event more than five (5)
days following the termination of the Participant’s employment, return all amounts which the Participant has received under
the terms of the Plan (the “Recovery Amount”), and the Participant and the Company hereby agree to the following, notwithstanding
any Plan provision to the contrary:


		(i)	that the Company may withhold all or a portion of the Recovery Amount from any salary, wages or other amounts due to the Participant
from the Company; and



		(ii)	in addition to the Recovery Amount, the Company may also recover any fees incurred by the Company in seeking to collect the
Recovery Amount, including, but not limited to, the Company’s reasonable attorneys’ fees.





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Notwithstanding the foregoing, ownership of less than five
percent (5%) of the outstanding capital stock of any Person whose securities are registered under the Securities Exchange Act of
1934, as amended, in and of itself shall not be cause for automatic forfeiture under Article 6(b)(3), whether or not the subject
Person is competitive with the Company.


(c)               
Except as provided in Article 5 with respect to a Covered Termination within one hundred and twenty (120) days before a
Change in Control or a Covered Termination on or after a Change in Control, the portion of any Award under this Plan that has not
been actually paid to the Participant prior to the date of such resignation or other termination of employment shall be forfeited,
except that the Award Committee, in its discretion, may pay all or part of the amount that remains payable under an Award upon
the disability or death of the Participant in accordance with such rules or procedures established by the Award Committee provided,
however, that any amount of the Award payment that the Award Committee determines to pay shall be paid no later than March 15
of the year following the year that the Participant’s employment ends on account of disability or death. Notwithstanding
any provision of the Plan to the contrary, any Award paid to the Participant shall be subject to recovery by the Company in the
event that the Participant is terminated for Cause and shall, to the extent permitted by law, be subject to recovery from any amounts
owed by the Company to the Participant, including, but not limited to, offsetting any amounts owed under the Plan to the Company
against any amounts otherwise owed to the Participant by the Company.


(d)              
If the Award Committee decides to pay all or part of an Award after the death of a Participant in accordance with this Article
6, the Participant may designate in writing one or more persons (“beneficiary”) to receive any unpaid portion of the
Participant’s Award upon the death of the Participant. By similar action, the Participant may designate a change of beneficiary
at any time, which change shall be effective only upon receipt by the Award Committee of said notice. The last such designation
form filed with the Award Committee prior to the Participant’s death shall control. The Award Committee may establish a form
or other requirements for such designation. If the Participant designates his spouse as a beneficiary, the divorce of Participant
shall automatically revoke that designation of his spouse as beneficiary except to the extent otherwise provided in a subsequent
beneficiary designation filed by the Participant with the Award Committee. In the absence of a written designation, or in the event
the Participant dies without a beneficiary surviving him, any amount which would otherwise be payable on account of his death shall
be paid to the surviving spouse of the Participant or if none, to the Participant’s estate. A beneficiary of a Participant
shall have no interest or rights hereunder during the lifetime of the Participant.


Article 7.                
Administrative Provisions


(a)                                 
The Plan was approved by the Board on June 28, 2018 to be effective as of January 1, 2018 for all services provided
by Participants in 2018.


(b)                                
Unless the Board provides otherwise, the Plan shall be administered and interpreted by the Award Committee, which has been
provided absolute authority hereunder to administer the Plan. The Board and its members, the members of the Award Committee and
any other individual who may, from time to time, have been delegated responsibility with respect to the administration of this
Plan (collectively, “Authorized Persons”), shall have the full authority,




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discretion and power necessary or desirable to administer
and interpret this Plan, in accordance with the Plan terms. Benefits under the Plan shall be payable only if the Authorized Persons
in their respective sole and absolute discretion determine that any such benefits are properly payable under the Plan. Without
in any way limiting the foregoing, all Authorized Persons shall have complete authority, sole discretion and power to: (i) determine
the Participants; (ii) determine the Performance Goals applicable to each Participant, as well as the relative weighting of each
such Performance Goals to determine eligibility for payment of an Award hereunder; (iii) evaluate and determine the performance
of Participants; (iv) determine the amount of the Award for each Participant; (v) interpret the provisions of this Plan and any
other documentation used in connection with this Plan, including documentation specifying individual Participant Performance Goals,
Award opportunities and the like; (vi) establish and interpret rules, regulations and procedures (written or by practice) for the
administration of the Plan; and (vii) make all other determinations and take all other actions necessary or desirable for the administration
or interpretation of this Plan. The express grant in the Plan of any specific power to Authorized Persons shall not be construed
as limiting any power or authority of such Authorized Person. All actions, decisions and interpretations of the Authorized Persons
shall be final, conclusive and binding on all parties. All expenses of administering the Plan shall be borne by the Company.


(c)                                 
Nothing in this Plan shall be deemed by implication, action or otherwise to constitute a contract of employment or otherwise
to impose any limitation on any right of the Company to terminate a Participant’s employment at any time for any or no reason.


(d)     
 A Participant shall have no right to anticipate, alienate, sell, transfer, assign, pledge or encumber any right to receive
any Award made under the Plan, nor will any Participant have any lien on any assets of the Company by reason of any Award made
under the Plan.


(e)                                 
The Company shall have the right to deduct or withhold, or require a Participant to remit to the Company, any taxes required
by law to be withheld from Awards made under this Plan.


(f)                                 
The Plan may be amended, suspended or terminated at any time and from time to time, by action of the Board or the Award
Committee, but in any event, the Plan will be terminated no later than upon the last date the Company pays all Participants any
and all amounts that may due under the Plan and no amounts remain due and payable under the Plan to any person as determined by
Award Committee. The preceding sentence to the contrary notwithstanding, on and after a Change in Control, no amendment, suspension
or termination of the Plan that adversely affects the rights of a Participant (or the beneficiary of a deceased Participant who
has not received payment of an amount approved by the Award Committee under Article 6), shall be effective without the written
consent of that Participant or beneficiary.


(g)                                
The adoption of the Plan does not imply any commitment to continue to maintain the Plan, or any modified version of the
Plan, or any other plan for incentive compensation for such Participant for any period of time. Neither the adoption of this Plan,
its operation, nor any documents describing or referring to this Plan (or any part thereof) shall confer upon any employee any
right to continue in the employ of the Company or in any way




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affect any right and power of the Company to terminate the
employment of any employee at any time without assigning a reason therefor.


(h)                                
This Plan, insofar as it provides for Awards, shall be unfunded, and the Company shall not be required to segregate any
assets that may at any time be represented by Awards under the Plan. Any liability of the Company to any person with respect to
any Awards under this Plan shall be based solely upon any contractual obligations which may be created pursuant to this Plan. No
such obligation of the Company shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Company.


(i)                                  
In order to be effective, any amendment of this Plan or any Award must be in writing and made by the Award Committee. No
oral statement, representation, written presentation or the like shall have the effect of amending or modifying this Plan or any
Award, or otherwise have any binding effect on the Company, the Board, the Chief Executive, the Award Committee or any individual
who has been delegated authority to administer this Plan.


(j)                                  
The Plan shall be construed in accordance with and governed by the substantive laws of the State of Delaware, without regard
to principles of conflicts of law.


(k)                                
In case any provision of the Plan shall be held illegal or void, such illegality or invalidity shall not affect the remaining
provisions of this Plan, but shall be fully severable, and the Plan shall be construed and enforced as if said illegal or invalid
provisions had never been inserted herein.


(l)                                  
Except for their own gross negligence or gross misconduct regarding the performance of the duties specifically assigned
to them under, or their willful breach of the terms of this Plan, the Company (and its affiliates), Board and its members, the
Award Committee and its members, and any other entity or individual administering any aspect of this Plan shall be held harmless
by the Participants and their respective representatives, heirs, successors, and assigns, against liability or losses occurring
by reason of any act or omission under the Plan.


(m)                              
Should the Company effect one or more stock dividends, stock splits, subdivisions or consolidations of Shares or other similar
changes in capitalization, then the terms of outstanding Awards shall be adjusted as the Award Committee shall determine to be
equitably required. Any determination made under this Article 7(m) by the Award Committee shall be final and conclusive. The issuance
by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, for cash or property,
or for labor or services, either upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion
of shares or obligations of the Company convertible into such shares or other securities, shall not affect, and no adjustment by
reason thereof shall be made with respect to, Awards.


 


 


 




    	 	13	 



     


    

Executed on
the 28th day of June, 2018 to be effective as of the
1st day of January, 2018.


MercadoLibre, Inc.


 


 


 


By:                               


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 






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