Document:

Exhibit 4.4

 

BLONDER TONGUE LABORATORIES, INC.

2016 DIRECTOR EQUITY INCENTIVE PLAN

 

ARTICLE 1

PURPOSE

 

1.1           GENERAL.
The purpose of this Blonder Tongue Laboratories, Inc. 2016 Director Equity Incentive Plan (the “Plan”) is to
promote the success and enhance the value of Blonder Tongue Laboratories, Inc. (the “Company”) by linking the
personal interests of non-employee directors of the Company to those of Company stockholders and by providing such individuals
with an incentive for outstanding performance in order to generate superior returns to stockholders of the Company. The Plan is
further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of non-employee
directors upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely
dependent.

 

ARTICLE 2

EFFECTIVE DATE AND TERM

 

2.1           EFFECTIVE
DATE. The Plan will be effective as of February 4, 2016 (the “Effective Date”).

 

2.2           TERM.
Unless sooner terminated by the Board, the Plan shall terminate on the tenth (10th) anniversary of the Effective Date,
and no Awards may be granted under the Plan thereafter. The termination of the Plan shall not affect any Award that is outstanding
on the termination date, without the consent of the Participant.

 

ARTICLE 3

DEFINITIONS AND CONSTRUCTION

 

3.1           DEFINITIONS.
When a word or phrase appears in this Plan with the initial letter capitalized, and the word or phrase does not commence a sentence,
the word or phrase shall generally be given the meaning ascribed to it in this Section or in Sections 1.1 or 2.1 unless a clearly
different meaning is required by the context. The following words and phrases shall have the following meanings:

 

(a)          “Award”
means any Option, Stock Appreciation Right, Restricted Stock Award or Unrestricted Stock Award granted to a Participant under the
Plan.

 

(b)          “Award
Agreement” means a writing, in such form as the Board in its discretion shall prescribe, evidencing an Award.

 

(c)          “Board”
means the Board of Directors of the Company.

 

(d)          “Code”
means the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder.

 

(e)          “Eligible
Director” means any person who is a member of the Board and neither is currently, nor within the past six (6) months
was, employed by the Company or any subsidiary of the Company.

 

(f)          “Fair
Market Value” means, with respect to a share of Stock as of any given date, (i) if the Stock is traded on the over-the-counter
market, the mean average of the bid and the asked prices for the Stock at the close of trading on that date, or if that day is
not a trading day on the trading day immediately preceding such day; (ii) if the Stock is listed on a national securities exchange,
the mean average of the high and low selling prices of the Stock on the composite tape on that date, or if that day in not a trading
day on the trading day immediately preceding such given date; and (iii) if the Stock is neither traded on the over-the-counter
market nor listed on a national securities exchange, such value as the Board, in good faith, shall determine.

 

(g)          “Option”
means a right granted to a Participant under Article 7 of the Plan to purchase Stock at a specified price during specified time
periods.

 

     

     

    

 

(h)         “Participant”
means a person who has been granted an Award under the Plan.

 

(i)          “Plan”
means the Blonder Tongue Laboratories, Inc. 2005 Director Equity Incentive Plan as set forth herein.

 

(j)          “Restricted
Stock Award” means Stock granted to a Participant under Article 9 that is subject to certain restrictions and to risk
of forfeiture.

 

(k)          “Stock”
means the common stock of Blonder Tongue Laboratories, Inc. and such other securities which may be substituted for Stock pursuant
to Article 11.

 

(l)          “Stock
Appreciation Right” or “SAR” means a right granted to a Participant under Article 8 to receive a payment
equal to the difference between the Fair Market Value of a share of Stock as of the date of exercise of the SAR over the grant
price of the SAR, all as determined pursuant to Article 8.

 

(m)          “Stock
Award” means a Restricted Stock Award or an Unrestricted Stock Award.

 

(n)          “Unrestricted
Stock Award” means Stock granted to a Participant under Article 9 that is not subject to restrictions or a risk of forfeiture.

 

ARTICLE 4

ADMINISTRATION

 

4.1           GENERAL.
The Plan shall be administered by the Board. Subject to any specific designation in the Plan, the Board has the exclusive power,
authority and discretion to:

 

(a)          Designate
Participants to receive Awards;

 

(b)          Determine
the type or types of Awards to be granted to each Participant;

 

(c)          Determine
the number of Awards to be granted and the number of shares of Stock to which an Award will relate;

 

(d)          Determine
the terms and conditions of any Award granted under the Plan including but not limited to, the exercise price, grant price, or
purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions
on the exercisability of an Award, and accelerations or waivers thereof, based in each case on such considerations as the Board
in its sole discretion determines;

 

(e)          Amend,
modify, or terminate any outstanding Award (including re-pricing), with the Participant’s consent unless the Board has the
authority to amend, modify, or terminate an Award without the Participant’s consent under any other provision of the Plan.

 

(f)          Determine
whether, to what extent, and under what circumstances an Award may be settled in, or the exercise price of an Award may be paid
in, cash, Stock, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered;

 

(g)          Prescribe
the form of each Award Agreement, which need not be identical for each Participant;

 

(h)          Decide
all other matters that must be determined in connection with an Award;

 

(i)           Establish,
adopt, revise, amend or rescind any guidelines, rules and regulations as it may deem necessary or advisable to administer the Plan;
and

 

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(j)          Interpret
the terms of, and rule on any matter arising under, the Plan or any Award Agreement;

 

(k)          Make
all other decisions and determinations that may be required under the Plan or as the Board deems necessary or advisable to administer
the Plan; and

 

(l)           Retain
counsel, accountants and other consultants to aid in exercising its powers and carrying out its duties under the Plan.

 

4.2           DECISIONS
BINDING. The Board’s interpretation of the Plan, any Awards granted under the Plan, any Award Agreement and
all decisions and determinations by the Board with respect to the Plan shall be final, binding, and conclusive on all parties and
any other persons claiming an interest in any Award or under the Plan.

 

ARTICLE 5

SHARES SUBJECT TO THE PLAN

 

5.1           NUMBER
OF SHARES. Four hundred thousand (400,000) shares of Stock shall be available for Awards on and after the Effective
Date; provided, however, each Award shall be conditioned upon the approval of the Plan by the stockholders of the Company. The
number of shares set forth in this Section 5.1 shall be subject to adjustment as provided in Section 11.1.

 

5.2           LAPSED
AWARDS. To the extent that an Award terminates, is cancelled, expires, lapses or is forfeited for any reason, any
shares of Stock subject to the Award will again be available for the grant of an Award under the Plan.

 

5.3           STOCK
DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued
Stock, treasury Stock or Stock purchased on the open market.

 

ARTICLE 6

ELIGIBILITY AND PARTICIPATION

 

6.1           ELIGIBILITY.
Persons eligible to participate in this Plan include all Eligible Directors.

 

6.2           ACTUAL
PARTICIPATION. Subject to the provisions of the Plan, the Board may, from time to time, select from among all eligible
individuals those to whom Awards shall be granted and shall determine the nature and amount of each Award. No individual shall
have any right to be granted an Award under this Plan.

 

ARTICLE 7

STOCK OPTIONS

 

7.1           GENERAL.
The Board is authorized to grant Options to Participants on the following terms and conditions:

 

(a)          EXERCISE
PRICE. The exercise price per share of Stock under an Option shall be not less than the Fair Market Value as of the date of grant.

 

(b)          TERM
OF OPTION. No Option shall be exercisable after the date that is 10 years from the date it is granted.

 

(c)          TIME
AND CONDITIONS OF EXERCISE. Except as provided herein, the Board shall determine the time or times at which an Option may be exercised
in whole or in part. The Board shall also determine the performance or other conditions, if any, that must be satisfied before
all or part of an Option may be exercised.

 

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(d)          PAYMENT.
An Option shall be exercised by giving a written notice to the Company stating the number of shares of Stock with respect to which
the Option is being exercised and containing such other information as the Board may require and by tendering payment therefore
with a cashier's check or certified check. In addition, if the Award Agreement with respect to an Option so provides, or upon exercise
of discretion by the Board in accordance with the terms of the Award Agreement, the Participant may pay the exercise price by (i)
to the extent permitted by applicable law, delivering the Participant’s note payable to the Company over such period of time,
at such rate of interest and in form and substance satisfactory to the Board, (ii) transferring shares of Stock previously acquired
by the Participant, (iii) directing the Company to withhold that number of shares of Stock acquired upon exercise having an aggregate
Fair Market Value as of the date of exercise equal to the Option’s exercise price, or the applicable portion of the Option’s
exercise price if the Option is not exercised in full, (iv) an open market broker-assisted sale transaction pursuant to which the
Company is promptly delivered the amount of proceeds necessary to satisfy the exercise price, (v) a combination of the methods
described above, or (vi) such other method as may be approved by the Board and set forth in the Award Agreement.

 

(e)          EVIDENCE
OF GRANT. All Options shall be evidenced by an Award Agreement. The Award Agreement shall include such additional provisions as
may be specified by the Board.

 

ARTICLE 8

STOCK APPRECIATION RIGHTS

 

8.1           GRANT
OF SARs. The Board is authorized to grant SARs to Participants on the following terms and conditions:

 

(a)          RIGHT
TO PAYMENT. Upon the exercise of a Stock Appreciation Right, the Participant to whom it is granted has the right to receive the
excess, if any, of:

 

(1)         The
Fair Market Value of a share of Stock on the date of exercise; over

 

(2)         The
grant price of the Stock Appreciation Right as determined by the Board, which shall not be less than the Fair Market Value of a
share of Stock on the date of grant.

 

(b)          OTHER
TERMS. All such Awards shall be evidenced by an Award Agreement. The terms, methods of exercise, methods of settlement, form of
consideration payable in settlement, and any other terms and conditions of any Stock Appreciation Right shall be determined by
the Board at the time of the grant of the Award and shall be reflected in the Award Agreement.

 

ARTICLE 9

STOCK AWARDS

 

9.1           GRANT
OF STOCK. The Board is authorized to grant Unrestricted Stock Awards and Restricted Stock Awards to Participants
in such amounts and subject to such terms and conditions as determined by the Board. All such Awards shall be evidenced by an Award
Agreement.

 

9.2           ISSUANCE
AND RESTRICTIONS. An Unrestricted Stock Award may provide for a transfer of shares of Stock to a Participant at
the time the Award is granted, or it may provide for a deferred transfer of shares of Stock subject to conditions prescribed by
the Board. Restricted Stock Awards shall be subject to such restrictions on transferability and risks of forfeiture as the Board
may impose. These restrictions and risks may lapse separately or in combination at such times, under such circumstances, in such
installments, or otherwise, as the Board determines at the time of the grant of the Award or thereafter.

 

9.3           FORFEITURE.
Except as otherwise determined by the Board at the time of the grant of the Award or thereafter, upon termination of service as
a Member of the Board during the applicable restriction period, Stock subject to a Restricted Stock Award that is at that time
subject to restrictions shall be forfeited, provided, however, that the Board may provide in any Restricted Stock Award that restrictions
or forfeiture conditions relating to the Stock will be waived in whole or in part in the event of terminations resulting from specified
causes, and the Board may in other cases waive in whole or in part restrictions or forfeiture conditions relating to the Stock.

 

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9.4           CERTIFICATES
FOR RESTRICTED STOCK. Restricted Stock Awards granted under the Plan may be evidenced in such manner as the Board
shall determine. If certificates representing shares of Stock subject to Restricted Stock Awards are registered in the name of
the Participant, certificates must bear an appropriate legend referring to the terms, conditions, and restrictions applicable to
such shares, and the Company may, at its discretion, retain physical possession of the certificate until such time as all applicable
restrictions lapse.

 

ARTICLE 10

PROVISIONS APPLICABLE TO ALL AWARDS

 

10.1         STAND-ALONE
AND TANDEM AWARDS. Awards granted under the Plan may, in the discretion of the Board, be granted either alone, in
addition to, or in tandem with, any other Award granted under the Plan. Awards granted in addition to or in tandem with other Awards
may be granted either at the same time as or at a different time from the grant of such other Awards.

 

10.2         EXCHANGE
PROVISIONS. The Board may at any time offer to exchange or buy out any previously granted Award for a payment in
cash, Stock, or another Award, based on the terms and conditions the Board determines and communicates to the Participant at the
time the offer is made.

 

10.3         TERM
OF AWARD. The term of each Award shall be for the period as determined by the Board.

 

10.4         LIMITS
ON TRANSFER. No right or interest of a Participant in any Award may be pledged, encumbered, or hypothecated to or
in favor of any party other than the Company, or shall be subject to any lien, obligation, or liability of such Participant to
any other party other than the Company; provided, however, that the foregoing shall not be deemed to imply any obligation of the
Company to lend against or accept a lien or pledge of any Award for any reason. No Award shall be assignable or transferable by
a Participant other than by will or the laws of descent and distribution, except that the Board, in its discretion, may permit
a Participant to make a gratuitous transfer of an Award to his or her spouse, lineal descendants, lineal ascendants, or a duly
established trust for the benefit of one or more of these individuals. Awards so transferred may thereafter be transferred only
to the Participant who originally received the Award or to an individual or trust to whom the Participant could have initially
transferred the Award pursuant to this Section 10.4.

 

10.5         BENEFICIARIES.
Notwithstanding Section 10.4, a Participant may, if and to the extent, and in such manner as may be determined by the Board from
time to time, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to
any Award upon the Participant’s death. A beneficiary, legal guardian, legal representative, or other person claiming any
rights under the Plan is subject to all terms and conditions of the Plan and any Award applicable to the Participant, except to
the extent the Plan and Award otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Board.
If no beneficiary has been designated or survives the Participant, payment shall be made to the Participant’s estate. Subject
to the foregoing, if a Participant is entitled to designate a beneficiary, a beneficiary designation may be changed or revoked
by a Participant at any time in accordance with any procedures or conditions established by the Board from time to time, provided
the change or revocation is filed with the Board.

 

10.6         STOCK
CERTIFICATES. Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver
any certificates evidencing shares of Stock pursuant to the exercise or vesting of any Awards, as the case may be, unless and until
the Board has determined, with advice of counsel, that the issuance and delivery of such certificates is in compliance with all
applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the shares
of Stock are listed or traded as well as the terms of this Plan and any other terms, conditions or restrictions that may be applicable.
All Stock certificates delivered under the Plan are subject to any stop-transfer orders and other restrictions as the Board deems
necessary or advisable to comply with Federal, state, or foreign jurisdiction, securities or other laws, rules and regulations
and the rules of any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded.
The Board may place legends on any Stock certificate to reference restrictions applicable to the Stock. In addition to the terms
and conditions provided herein, the Board may require that a Participant make such reasonable covenants, agreements, and representations
as the Board, in its discretion, deems advisable in order to comply with any such laws, regulations, or requirements.

 

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10.7         COMPLIANCE
WITH SECTION 409A. The terms of all Awards granted under the Plan shall comply with the requirements of Section 409A of
the Code, to the extent subject to Section 409A.

 

10.8         ClawbackS. 
 Notwithstanding anything to the contrary under the Plan, any Award and any Stock or other consideration granted pursuant
to any Award under the Plan shall be subject to the Company’s ability to recoup or recover any such Award, Stock or other
consideration previously granted pursuant to (i) any compensation recovery or recoupment policy (i.e., clawback policy) to be adopted
by the Company from time to time in the future (regardless of whether adopted pursuant to Section 954 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act or otherwise), or (ii) any other applicable law, regulation or stock exchange rule, including
without limitation, Section 304 of the Sarbanes-Oxley Act of 2002.   

 

ARTICLE 11

CHANGES IN CAPITAL STRUCTURE

 

11.1         GENERAL.

 

(a)          SHARES
AVAILABLE FOR GRANT. In the event of any change in the number of shares of Stock outstanding by reason of any stock dividend or
split, recapitalization, merger, consolidation, combination or exchange of shares or similar corporate change, the maximum aggregate
number of shares of Stock with respect to which the Board may grant Awards shall be appropriately adjusted. In the event of any
change in the number of shares of Stock outstanding by reason of any other event or transaction, the Board may, but need not, make
such adjustments in the number and class of shares of Stock with respect to which Awards may be granted as the Board may deem appropriate.

 

(b)          OUTSTANDING
AWARDS – INCREASE OR DECREASE IN ISSUED SHARES WITHOUT CONSIDERATION. Subject to any required action by the stockholders
of the Company, in the event of any increase or decrease in the number of issued shares of Stock resulting from a subdivision or
consolidation of shares of Stock or the payment of a stock dividend (but only on the shares of Stock), or any other increase or
decrease in the number of such shares effected without receipt or payment of consideration by the Company, the Board shall proportionally
adjust the number of shares of Stock subject to each outstanding Award and the exercise price per share of Stock of each such Award.

 

(c)          OUTSTANDING
AWARDS – CERTAIN MERGERS. Subject to any required action by the stockholders of the Company, in the event that the Company
shall be the surviving corporation in any merger or consolidation (except a merger or consolidation as a result of which the holders
of shares of Stock receive securities of another corporation), each Award outstanding on the date of such merger or consolidation
shall pertain to and apply to the securities which a holder of the number of shares of Stock subject to such Award would have received
in such merger or consolidation.

 

(d)          OUTSTANDING
AWARDS – CERTAIN OTHER TRANSACTIONS. In the event of (i) a dissolution or liquidation of the Company, (ii) a sale of all
or substantially all of the Company's assets, (iii) a merger or consolidation involving the Company in which the Company is not
the surviving corporation or (iv) a merger or consolidation involving the Company in which the Company is the surviving corporation
but the holders of shares of Stock receive securities of another corporation and/or other property, including cash, the Board shall,
in its absolute discretion, have the power to cancel, effective immediately prior to the occurrence of such event, each Award outstanding
immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the
Participant to whom such Award was granted an amount in cash, for each share of Stock subject to such Award, respectively, equal
to the excess of (A) the value, as determined by the Board in its absolute discretion, of the property (including cash) received
by the holder of a share of Stock as a result of such event over (B) the exercise price (if any) of such Award.

 

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(e)          OUTSTANDING
AWARDS – OTHER CHANGES. In the event of any other change in the capitalization of the Company or corporate change other than
those specifically referred to in this Article, the Board may, in its absolute discretion, make such adjustments in the number
and class of shares subject to Awards outstanding on the date on which such change occurs and in the per share exercise price of
each Award as the Board may consider appropriate to prevent dilution or enlargement of rights.

 

(f)          NO
ADDITIONAL STOCKHOLDER APPROVAL REQUIRED IN CERTAIN CASES. Except to the extent required by applicable law or stock exchange rules,
no adjustment in the number of shares subject to outstanding Awards, and no adjustment in the number of shares available for grant
under this Plan, shall require additional stockholder approval, and all such future adjustments shall be deemed approved by the
approval of this Plan, to the extent that such adjustment, whether automatic or discretionary, is proportional to and accompanies
an equivalent adjustment in the number of shares held by the Company’s stockholders.

 

(g)          NO
OTHER RIGHTS. Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision or consolidation
of shares of stock of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any
class or any dissolution, liquidation, merger, or consolidation of the Company or any other corporation. Except as expressly provided
in the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any
class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to
an Award or the exercise price of any Award.

 

ARTICLE 12

AMENDMENT, MODIFICATION, AND TERMINATION

 

12.1         AMENDMENT,
MODIFICATION, AND TERMINATION. At any time and from time to time, the Board may terminate, amend or modify the Plan;
provided, however, that the Board shall not, without the approval of stockholders, make any amendment which would (i) increase
the maximum number of shares of Stock for which Awards may be granted under the Plan, (ii) extend the term of the Plan, or (iii)
amend the requirements as to the employees eligible to receive Awards; and further provided that no other amendment shall be made
without stockholder approval to the extent stockholder approval is necessary to comply with any applicable law, regulations or
stock exchange rule.

 

12.2         AWARDS
PREVIOUSLY GRANTED. Except as otherwise provided in the Plan, including without limitation, the provisions of Section
10.8 and Article 11, no termination, amendment, or modification of the Plan shall adversely affect in any material way any Award
previously granted under the Plan, without the written consent of the Participant.

 

ARTICLE 13

GENERAL PROVISIONS

 

13.1         NO
RIGHTS TO AWARDS. No employee or other person shall have any claim to be granted any Award under the Plan, and neither
the Company nor the Board is obligated to treat Participants and other persons uniformly.

 

13.2         NO
STOCKHOLDERS RIGHTS. No Award gives the Participant any of the rights of a stockholder of the Company unless and
until shares of Stock are in fact issued to such person in connection with such Award. If stockholder approval of the Plan (or
an amendment to the Plan) is required by applicable law, regulation or stock exchange rule, Awards may be granted under the Plan
prior to such stockholder approval, provided these Awards are subject to the Company receiving the requisite stockholder approval
and no shares of Stock can be issued under these Awards (e.g., a Participant cannot exercise an Option) until after the requisite
stockholder approval has been obtained.

 

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13.3         WITHHOLDING.
The Company shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Company, an
amount sufficient to satisfy Federal, state, and local taxes required by law to be withheld with respect to any taxable event arising
as a result of this Plan. A Participant may elect to have the Company withhold from those shares of Stock that would otherwise
be received upon the settlement of any Award, a number of shares having a Fair Market Value equal to the minimum statutory amount
necessary to satisfy the Company’s applicable federal, state, local and foreign income and employment tax withholding obligations.

 

13.4         NO
RIGHT TO DIRECTOR STATUS. Neither the Plan, nor the granting of an Award hereunder, nor any other action taken pursuant
to the Plan, shall constitute or be evidence of any agreement or undertaking, express or implied, that the Company retain an Eligible
Director for any period of time, or at any particular rate of compensation, or with any other benefits whatsoever.

 

13.5         INDEMNIFICATION.
To the extent allowable under applicable law, each member of the Board shall be indemnified and held harmless by the Company from
any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection with or resulting
from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of
any action or failure to act under the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment
in such action, suit, or proceeding against him or her provided he or she gives the Company an opportunity, at its own expense,
to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right
of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the
Company’s Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to
indemnify them or hold them harmless.

 

13.6         FRACTIONAL
SHARES. No fractional shares of stock shall be issued and the Board shall determine, in its discretion, whether
cash shall be given in lieu of fractional shares or whether such fractional shares shall be eliminated by rounding up or down as
appropriate.

 

13.7         GOVERNMENT
AND OTHER REGULATIONS. The obligation of the Company to make payment of awards in Stock or otherwise shall be subject
to all applicable laws, rules, and regulations, and to such approvals by government agencies as may be required. The Company shall
be under no obligation to register under the Securities Act of 1933, as amended, any of the shares of Stock paid under the Plan.
If the shares paid under the Plan may in certain circumstances be exempt from registration under the Securities Act of 1933, as
amended, the Company may restrict the transfer of such shares in such manner as it deems advisable to ensure the availability of
any such exemption.

 

13.8         REPRICINGS.
Notwithstanding anything in the Plan to the contrary, the Board may not reprice Options, nor may the Board amend the Plan to permit
repricing of Options, unless the stockholders of the Company provide prior approval for such repricing. The term “repricing”
shall have the meaning given that term in Section 303A(8) of the New York Stock Exchange Listed Company Manual, as in effect from
time to time.

 

13.9         GOVERNING
LAW. The Plan and the terms of all Awards shall be construed in accordance with and governed by the laws of the
State of New Jersey without regard to rules of choice of law or conflict of laws, except to the extent such laws may be pre-empted
by the federal laws of the United States of America.

 

    	 	8Exhibit 10.1

 

Exhibit A

 

GS China Agreement

 

DEBT CANCELLATION AGREEMENT

 

This Debt Cancellation
Agreement (this “ Agreement ”), is made as of August 19, 2016, among General Steel Holdings, Inc., a
Nevada corporation (the “ Company ”), Tongyong Shengyuan (Tianjin) Technology Development Co., Ltd. (   ),
a Chinese company and wholly-owned subsidiary of the company (“Tongyong Shengyuan”), and General Steel (China)
Co., Ltd. (the “ Creditor ”).

 

WHEREAS, as of August 19, 2016, the Company
has debt payable to the Creditor in an aggregate principal amount equivalent to USD$21,632,333.44 (together with all accrued but
unpaid interest and any other form of payment obligations related thereto, the “ Debt ”);

 

WHEREAS, the Company must increase its stockholders’
equity above $50,000,000 in order to meet the continued listing standards of the New York Stock Exchange, and in connection therewith,
the Board of Directors of the Company believe it’s in the best interests of the Company to convert the Debt into 100,000
shares (the “ Common Shares ”) of common stock, par value $0.001 per share (the “ Common Stock
”) and 19,565,758 shares (the “ Preferred Shares ” and collectively with the Common Shares, the “
Shares ”) of newly-created Series B Preferred Stock (as described below) as consideration for the cancellation of
the Debt;

 

WHEREAS, the Company intends to seek stockholder
approval by written consent in lieu of meeting (the “ Stockholder Approval ”) for the designation of a new series
of convertible preferred stock of the Company to be known as Series B Preferred Stock having the rights, priviledges and preferences
set forth in the related form of Certificate of Designation attached hereto as Exhibit A and will be issued to Creditor pursuant
to this Agreement promptly upon effectiveness of the Stockholder Approval, which Stockholder Approval may not become effective
until the 21 st calendar day following the mailing of an information statement on Schedule 14C pursuant to the requirements
of the Securities Exchange Act of 1934, as amended (the “ 1934 Act ”) and the rules and regulations of the Securities
and Exchange Commission (the “ Commission ”) thereunder;

 

NOW, THEREFORE, in connection with the conversion
and cancellation of the Debt, the Company, Tongyong Shengyuan and the Creditor, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, agree as follows:

 

1. Closing Date .

 

(a) The consummation of the transactions
contemplated herein (the “ Closing ”) shall take place remotely via the exchange of documents and signatures
or by other method as the parties may mutually agree upon the satisfaction or waiver of all conditions to closing set forth in
this Agreement (each such date, a “ Closing Date ”). Subject to the satisfaction or waiver of the terms and
conditions of this Agreement, on each Closing Date, the Creditor shall receive and the Company shall issue to the Creditor a certificate
evidencing the Common Shares or Preferred Shares, as the case may be, in the name of the Creditor, as shall be effective to vest
in the Creditor all right, title and interest in the Common Shares or Preferred Shares, as the case may be, as consideration for
the cancellation of the Debt due to the Creditor. The outstanding amount of the Debt shall thereby be extinguished in full and
be allocated to the Common Shares and Preferred Shares.

 

(b) The obligation of the Company to issue
the Common Shares and Preferred Shares to the Creditor is subject to the satisfaction, at or before the relevant Closing Date,
of the following conditions (unless the failure of such condition shall be due to the failure of the Company to perform or observe
its covenants and agreements in this Agreement):

 

(i) The Creditor shall have executed and
delivered this Agreement to the Company.

 

(c) The obligation of the Creditor to accept
the Common Shares or Preferred Shares upon cancellation of the Debt is subject to the satisfaction, at or before the Closing Date,
of each of the following conditions (unless the failure of such condition shall be due to the failure of the Creditor to perform
or observe their respective covenants and agreements in this Agreement):

 

    1 

     

    

 

(i) the Company shall have executed and delivered
this Agreement to the Creditor;

 

(ii) the Company shall have delivered a certificate
evidencing the Common Shares or Preferred Shares, as the case may be, to the Creditor; and

 

(iii) in the case of the Preferred Shares,
the Stockholder Approval shall have become effective under the Securities Exchange Act of 1934 and the rules and regulations of
the Commission thereunder.

 

2. Creditor Representations and Warranties
..  The Creditor hereby represents and warrants to and agrees with the Company that:

 

(a) Organization and Standing .  The
Creditor is a corporation, partnership or other entity duly incorporated or organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or organization and has the requisite corporate power to own its assets and to
carry on its business.

 

(b) Authorization and Power .  The
Creditor has the requisite power and authority to enter into and perform this Agreement and to acquire the Shares being issued
to it hereunder. The execution, delivery and performance of this Agreement by the Creditor and the consummation by it of the transactions
contemplated hereby have been duly authorized by all necessary corporate or partnership actions, and no further consent or authorization
of the Creditor or its board of directors, stockholders, partners, or members, as the case may be, is required. This Agreement
has been duly authorized, executed and delivered by the Creditor and constitutes, or shall constitute when executed and delivered,
a valid and binding obligation of the Creditor enforceable against the Creditor in accordance with the terms hereof.

 

(c) No Conflicts .  The
execution, delivery and performance of this Agreement and the consummation by the Creditor of the transactions contemplated hereby
or relating hereto do not and will not (i) result in a violation of the Creditor’s charter documents or bylaws or other organizational
documents or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement, indenture
or instrument or obligation to which the Creditor is a party or by which its properties or assets are bound, or result in a violation
of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable to the Creditor
or its properties (except for such conflicts, defaults and violations as would not, individually or in the aggregate, have a material
adverse effect on the Creditor). The Creditor is not required to obtain any consent, authorization or order of, or make any filing
or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under
this Agreement or to acquire the Shares in accordance with the terms hereof, provided that for purposes of the representation made
in this sentence, the Creditor is assuming and relying upon the accuracy of the relevant representations and agreements of the
Company herein.

 

(d) Information on Company .  The
Creditor in making the decision to acquire the Shares, has relied upon an independent investigation of the Company and has not
relied upon any information or representations made by any third parties or upon any oral or written representations or assurances
from the Company, its officers, directors or employees or any other representatives or agents of the Company, other than as set
forth in this Agreement. The Creditor is familiar with the business, operations and financial condition of the Company and has
had an opportunity to ask questions of, and receive answers from, the Company’s officers and directors concerning the Company
and the terms and conditions of the offering of the Shares and has had full access to such other information concerning the Company
as the Creditor has requested.

 

(e) Information on Creditor .  The
Creditor is not a “U.S.” Person as defined in Rule 902 of Regulation S promulgated under the Securities Act of 1933,
as amended (the “ 1933 Act ”), was not organized under the laws of any United States jurisdiction, and was not
formed for the purpose of investing in securities not registered under the 1933 Act. At the time the purchase order for this transaction
was originated, the Creditor was outside the United States

 

    2 

     

    

 

(f) Issuance of Shares .  On
the Closing Date, the Creditor will acquire the Shares as principal for its own account for investment only and not with a view
toward, or for resale in connection with, the public sale or any distribution thereof.

 

(g) Compliance with Securities Act
..  The Creditor understands and agrees that the Shares have not been registered under the 1933 Act or any applicable
state securities laws, by reason of their issuance in a transaction that does not require registration under the 1933 Act (based
in part on the accuracy of the representations and warranties of the Creditor contained herein), and that the Shares must be held
indefinitely unless a subsequent disposition is registered under the 1933 Act or any applicable state securities laws or is exempt
from such registration.

 

(h) Legend .  The Shares
shall bear the following legend:

 

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
(I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR (B) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER HEREOF THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.”

 

(i) Financial Ability .  The
Creditor has the financial ability to bear the economic risk of loss of the Creditor’s investment, has adequate means for
providing for its current needs and contingencies, and currently has no need for liquidity with respect to an investment in the
company.

 

(j) Authority; Enforceability .  This
Agreement and any other agreementsor documents delivered together with this Agreement or in connection herewith have been duly
authorized, executed and delivered by the Creditor and are valid and binding agreements enforceable in accordance with their terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating
to or affecting creditors’ rights generally and to general principles of equity; and the Creditor has full corporate power
and authority necessary to enter into this Agreement and such other agreements and to perform its obligations hereunder.

 

(k) Restricted Securities .  The
Creditor understands that the Shares are being offered in a transaction not involving a public offering in the United States within
the meaning of the 1933 Act. The Shares have not been and will not be registered under the 1933 Act, and, if in the future the
Creditor decides to offer, resell, pledge or otherwise transfer the Shares, such Shares may be offered, resold, pledged or otherwise
transferred only (A) pursuant to an effective registration statement filed under the 1933 Act, (B) to a non-U.S. person in an offshore
transaction in accordance with Rule 903 or Rule 904 of Regulation S of the 1933 Act, (C) pursuant to the resale limitations set
forth in Rule 905 of Regulation S, (D) pursuant to an exemption from registration under the 1933 Act provided by Rule 144 thereunder
(if available) or (E) pursuant to any other exemption from the registration requirements of the 1933 Act, and in each case in accordance
with any applicable securities laws of any state of the United States or any other jurisdiction. The Creditor agrees and covenants
that it will not engage in hedging transactions with regard to the Shares prior to the expiration of the distribution compliance
period specified in Rule 903 of Regulation S promulgated under the 1933 Act, unless in compliance with the 1933 Act. The Creditor
agrees that if any transfer of its Shares or any interest therein is proposed to be made, as a condition precedent to any such
transfer, the transferor may be required to deliver to the Company an opinion of counsel satisfactory to the Company. Absent registration
or another exemption from registration, the Creditor agrees that it will not resell the Shares to U.S. Persons or within the United
States.

 

    3 

     

    

 

(l) The Creditor understands, acknowledges
and agrees that, except as expressly set forth herein, the Company makes no representation or warranty, express or implied, at
law or in equity, in respect of itself, its business, its operations, its assets, its projects, its prospects or the Shares.

 

(m) No Governmental Review .  The
Creditor understands that no United States federal or state agency or any other governmental or state agency has passed on or made
recommendations or endorsement of the Shares or the suitability of the investment in the Shares nor have such authorities passed
upon or endorsed the merits of the offering of the Shares.

 

(n) Correctness of Representations
..  The Creditor represents the foregoing representations and warranties are true and correct as of the date hereof and,
unless the Creditor otherwise notifies the Company prior to the Closing Date shall be true and correct as of the Closing Date.

 

(o) IRS Form W-8 or W-9 .  The
Creditor shall provide to the Company, upon request, an IRS Form W-8 or W-9, as applicable.

 

(p) Survival .  The foregoing
representations and warranties shall survive the Closing Date for a period of one year.

 

3. Company Representations and Warranties
..  The Company represents and warrants to the Creditor that:

 

(a) Due Incorporation .  The
Company is a corporation duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction
of its incorporation or organization and has the requisite corporate power to own its properties and to carry on its business as
presently conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction
where the nature of the business conducted or property owned by it makes such qualification necessary, other than those jurisdictions
in which the failure to so qualify would not have a Material Adverse Effect. For purposes of this Agreement, a “Material
Adverse Effect” shall mean a material adverse effect on the financial condition, results of operations, prospects, properties
or business of the Company taken as a whole.

 

(b) Authority; Enforceability .  This
Agreement to which the Company or a Subsidiary is a party has been duly authorized, executed and delivered by the Company and Subsidiaries
(as applicable) and are valid and binding agreements of the Company enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting
creditors' rights generally and to general principles of equity. The Company has full corporate power and authority necessary to
enter into and deliver this Agreement and to perform its obligations thereunder.

 

(c) Additional Issuances .  There
are no outstanding agreements or preemptive or similar rights affecting the Common Stock and no outstanding rights, warrants or
options to acquire, or instruments convertible into or exchangeable for, or agreements or understandings with respect to the sale
or issuance of any Common Stock of the Company.

 

(d) Consents .  No consent,
approval, authorization or order of any court, governmental agency or body or arbitrator having jurisdiction over the Company,
the New York Stock Exchange or the Company's shareholders is required for the execution by the Company of this Agreement and compliance
and performance by the Company of its obligations under this Agreement, including, without limitation, the issuance and sale of
the Shares, which consent has not been obtained as of the Closing Date, other than the Stockholder Approval. This Agreement and
the Company’s performance of its obligations hereunder has been approved by the Company’s Board of Directors and will
be approved by the Company’s stockholders pursuant to the Stockholders’ Approval, all in accordance with the Company’s
Articles of Incorporation.

 

(e) No Violation or Conflict
.  To the knowledge of the Company, the execution, delivery and performance of this Agreement and consummation of
the transactions contemplated hereunder by the Company will not: (i) violate any applicable state, federal or international laws,
regulations, rules or decrees, including any ruling of any competent court in any jurisdiction applicable to the Company and its
Subsidiaries, or any order or statute of any court or government authority applicable to the Company or its Subsidiaries, affiliates
or any of their properties (except for such violations which would not, in the aggregate, result in a Material Adverse Effect
on the Company and its Subsidiaries taken as a whole); (ii) conflict with or result in the breach or termination of, constitute
a default under or accelerate any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument
to which the Company or any of its Subsidiaries is a party or by which the Company, any of its Subsidiaries or any of their material
property is bound; or (iii) will not result in a breach or material violation under the articles of association, bylaws and other
incorporation documents of the Company or its Subsidiaries.

 

    4 

     

    

 

(f) The Shares .  The Shares
upon issuance:

 

(i) are, or will be, free and clear of any
security interests, Liens, claims or other encumbrances, subject to restrictions upon transfer under the 1933 Act and any applicable
state securities laws;

 

(ii) have been, or will be, duly and validly
authorized and on the date of issuance of the Shares, will be duly and validly issued, fully paid and non-assessable;

 

(iii) will not have been issued or sold in
violation of any pre-emptive or other similar rights of the holders of any securities of the Company;

 

(iv) will not subject the holders thereof
to personal liability by reason of being such holders provided Creditor’s representations herein are true and accurate and
the Creditor takes no actions contrary to, or fail to take, any actions required to be taken by the Creditor pursuant to this Agreement
for their purchase of the Shares to be in compliance with all applicable laws and regulations; and

 

(v) assuming the representations and warranties
of the Creditor as set forth in Section 2 hereof are true and correct and the Creditor takes no actions contrary to, or fail to
take, any actions required to be taken by the Creditor pursuant to this Agreement for their purchase of the Shares to be in compliance
with all applicable laws and regulations, will not result in a violation of Section 5 under the 1933 Act.

 

(g) Litigation .  There
is no pending or, to the best knowledge of the Company, threatened action, suit, proceeding or investigation before any court,
governmental agency or body, or arbitrator having jurisdiction over the Company, that would affect the execution by the Company
or the performance by the Company of its obligations under this Agreement. There is no pending or, to the best knowledge of the
Company, basis for or threatened action, suit, proceeding or investigation before any court, governmental agency or body, or arbitrator
having jurisdiction over the Company, which litigation if adversely determined would have a Material Adverse Effect.

 

(h) Defaults .  The Company
is not in violation of its Amended and Restated Articles of Incorporation. The Company is (i) not in default under or in violation
of any other material agreement or instrument to which it is a party or by which it or any of its properties are bound or affected,
which default or violation would have a Material Adverse Effect, (ii) not in default with respect to any order of any court, arbitrator
or governmental body or subject to or party to any order of any court or governmental authority arising out of any action, suit
or proceeding under any statute or other law respecting antitrust, monopoly, restraint of trade, unfair competition or similar
matters, or (iii) not in violation of any statute, rule or regulation of any governmental or regulatory authority which violation
would have a Material Adverse Effect.

 

(i) Investment Company .  The
Company is not an “investment company” required to register under the Investment Company Act of 1940, as amended.

 

(j) Reporting Company .  The
Company is a publicly-held company subject to reporting obligations pursuant to Section 13a-16 or 15d-16 of the Securities Exchange
Act of 1934, as amended (the “ 1934 Act ”) and has a class of Ordinary Shares registered pursuant to Section
12(g) of the 1934 Act.

 

(k) Correctness of Representations
.  The Company represents that the foregoing representations and warranties are true and correct as of the date
hereof in all material respects, and, unless the Company otherwise notifies the Creditor prior to the Closing Date, shall be true
and correct in all material respects as of the Closing Date; provided, that, if such representation or warranty is made as of
a different date in which case such representation or warranty shall be true as of such date.

 

    5 

     

    

 

(l) Survival .  The foregoing
representations and warranties shall survive the Closing Date for a period of one years.

 

4. Regulation S Offering .  The
offer and issuance of the Shares to the Creditor is being made pursuant to the exemption from the registration provisions of the
1933 Act afforded by Section 4(2) of the 1933 Act and/or Rule 903 of Regulation S promulgated thereunder.

 

5. Covenants of the Company .

 

(a) Indemnification .  The
Company agrees to indemnify, hold harmless, reimburse and defend the Creditor, the Creditor’s officers, directors, agents,
affiliates, members, managers, control persons, and principal shareholders, against any claim, cost, expense, liability, obligation,
loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon the Creditor or any such person which
results, arises out of or is based upon (i) any material misrepresentation by the Company or breach of any representation or warranty
by the Company in this Agreement; or (ii) after any applicable notice and/or cure periods, any breach or default in performance
by the Company of any covenant or undertaking to be performed by the Company hereunder.

 

(b) Filing of Information Statement
..  As soon as practicable following the date hereof, the Company shall file a Preliminary Information Statement on Schedule
14C with the Commission regarding the Stockholder Approval, and, if such Preliminary Information Statement is not reviewed by the
Commission, 10 calendar days thereafter, shall mail a Definitive Information Statement on Schedule 14C to the non-consenting shareholders
in connection therewith (if such Preliminary Information Statement is reviewed by the Commission, the Company shall use its best
efforts to respond to any comments the Commission may have to such Preliminary Information Statement and shall mail a Definitive
Information Statement to the non-consenting shareholders as soon as practicable following the date such Preliminary Information
Statement is cleared by the Commission).

 

6. Waivers and Modification; Termination
of Certain Agreements .  Anything to the contrary notwithstanding in any agreements, instruments or other documents
pursuant to which the Debt was incurred, the Creditor hereby:

 

(a) agree and to the extent same constitute
waivers under the foregoing, do hereby waive effective as of Closing any default or event of default with respect to the Debt,
if any; and

 

(b) agree that effective as of Closing that:

 

(i) the Creditor, Tongyong Shengyuan and
the Company hereby cancel the Debt; and

 

(ii) the Creditor hereby irrevocably discharge
the Company and Tongyong Shengyuan of all of the obligations of the Company and Tongyong Shengyuan relating to the Debt, and acknowledge
and agree that the Debt shall be deemed to have been repaid in full by Tongyong Shengyuan and the Company by virtue of the issuance
of the Shares.

 

7. Miscellaneous .

 

(a) Notices .  All
notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (c) delivered by a reputable overnight courier service with charges prepaid, or (d) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business hours), or the first business
day following such delivery (if delivered other than on a business day during normal business hours), (ii) on the first business
day following the date deposited with an overnight courier service with charges prepaid, or (iii) on the fifth business day following
the date of mailing pursuant to subpart (b) above, or upon actual receipt of such mailing, whichever shall first occur. The addresses
for such communications shall be: (i) if to the Company, to: General Steel Holdings, Inc., Level 2, Building G, No. 2A Chen Jia
Lin, Ba Li Zhuang, Chaoyang District, Beijing, China 100025 Attn: John Chen, CFO, e-mail: jchen@gshi-steel.com, with a copy by
fax only to: Loeb & Loeb LLP, 345 Park Avenue, New York, NY 10154, Attn: Mitchell S. Nussbaum, Esq., e-mail: mnussbaum@loeb.com,
and (ii) if to the Creditor, to the address and fax numbers indicated on the signature page hereto.

 

    6 

     

    

 

(b) E ntire Agreement; Assignment
..   This Agreement and other documents delivered in connection herewith represent the entire agreement between the parties
hereto with respect to the subject matter hereof and may be amended only by a writing executed by the Company and the Creditor.
Neither the Company nor the Creditor has relied on any representations not contained or referred to in this Agreement and the documents
delivered herewith. No right or obligation of the Company shall be assigned without prior notice to and the written consent of
the Creditor.

 

(c) Counterparts/Execution .  This
Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts, each
of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.
This Agreement may be executed by facsimile signature and delivered by facsimile transmission.

 

(d) Law Governing this Agreement .  This
Agreement shall be governed by and construed in accordance with the laws of Hong Kong without regard to any conflicts of laws principles
that would cause this Agreement to be interpreted by the laws of any other jurisdiction. Any disputes, controversy or claim arising
out of or relating to this Agreement shall be settled by binding arbitration in the Hong Kong International Arbitration Centre
(the “ HKIAC ”) and in accordance with the UNCITRAL Arbitration Rules as at present in force and may be amended
by the rest of this Clause. The arbitration shall be conducted in the English language before a panel of three arbitrators, one
chosen by each of the parties and the third chosen by the initial two arbitrators. If the initial two arbitrators cannot agree
on the identity of the third arbitrator, the third arbitrator shall be determined by the HKIAC. The decision of the arbitrators,
rendered in writing, shall be final and binding on the parties, and may be entered and enforced in any court of competent jurisdiction.
Each party shall bear its own costs of the arbitration with the arbitrator’s fees to be borne equally by the parties. If
any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall
be deemed modified to conform with such statute or rule of law. Any provision hereof that may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provisions hereof.

 

(e) Specific Enforcement, Consent to Jurisdiction
..  The Company and Creditor acknowledge and agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that the parties shall be entitled to seek an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement
and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which any of them may
be entitled by law or equity. Subject to Section 7(d) hereof, each party hereby irrevocably waives, and agrees not to assert in
any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction in New York of such court,
that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is
improper. Nothing in this Section shall affect or limit any right to serve process in any other manner permitted by law.

 

(g) Captions: Certain Definitions
..  The captions of the various sections and paragraphs of this Agreement have been inserted only for the purposes of
convenience; such captions are not a part of this Agreement and shall not be deemed in any manner to modify, explain, enlarge or
restrict any of the provisions of this Agreement. As used in this Agreement the term “person” shall mean and include
an individual, a partnership, a joint venture, a corporation, a limited liability company, a trust, an unincorporated organization
and a government or any department or agency thereof.

 

    7 

     

    

 

(h) Severability .  In the
event that any term or provision of this Agreement shall be finally determined to be superseded, invalid, illegal or otherwise
unenforceable pursuant to applicable law by an authority having jurisdiction and venue, that determination shall not impair or
otherwise affect the validity, legality or enforceability: (i) by or before that authority of the remaining terms and provisions
of this Agreement, which shall be enforced as if the unenforceable term or provision were deleted, or (ii) by or before any other
authority of any of the terms and provisions of this Agreement.

 

    8 

     

    

 

COMPANY SIGNATURE PAGE TO DEBT CANCELLATION
AGREEMENT

 

Please acknowledge your acceptance of the
foregoing Debt Cancellation Agreement by signing and returning a copy to the undersigned whereupon it shall become a binding agreement
between us.

 

	
        GENERAL STEEL HOLDINGS, INC.

        a Nevada company
	 	Tongyong Shengyuan (Tianjin) Technology Development Co., Ltd.
	 	 	a Chinese company
	By:	/s/ Zuosheng Yu	 	By:	/s/ John Chen
	 	Name: Zuosheng Yu	 	 	Name: John Chen
	 	Title: CEO	 	 	Title: Director
	Dated: August 19, 2016	 	Dated: August 19, 2016

 

    9 

     

    

 

CREDITOR SIGNATURE PAGE TO DEBT CANCELLATION
AGREEMENT

 

Please acknowledge your acceptance of the
foregoing Debt d Cancellation Agreement by signing and returning a copy to the undersigned whereupon it shall become a binding
agreement between us.

 

	 	 	AMOUNT OF
    DEBT:
	GENERAL
    STEEL (CHINA) CO., LTD.	 	 
	 	 	$21,632,333.44
	By:	/s/
    Zuosheng Yu	 	 
	 	 	 	 
	Name: 	Zuosheng
    Yu	 	 
	 	 	 	 
	Title:	Director	 	NUMBER OF SHARES
    OF
	 		 	COMMON STOCK
    

    ISSUABLE ON CLOSING

    DATE:

     100,000

 

	Address:	 	 
	Room 106, Tower H, Phoenix Place	 	 
	Shuguangxili	 	 
	Chaoyang District, Beijing 100028	 	 
	Fax No.:	+86 10 58667723	 	 
	Email:	 	 	 

	Taxpayer ID# (if applicable):	 	 	 

 

    10 

     

    

 

SCHEDULE 1 –

 

	NAME OF CREDITOR	 	USD DEBT AMOUNT	 	 	SHARES OF
 COMMON STOCK
	 
	General Steel (China) Co., Ltd.	 	$	21,632,333.44	 	 	 	100,000	 

 

    11 

     

    

 

Exhibit A

 

Form of Certificate of Designation for Series
B Preferred Stock

 

CERTIFICATE OF DESIGNATION

 

OF

 

SERIES B PREFERRED STOCK

 

OF

 

GENERAL STEEL HOLDINGS, INC.

 

(Pursuant to Section 78.1955 of the Nevada Revised Statutes)

 

1. Designation and Number
..  There shall be a series of preferred stock, par value $0.001 per share, designated as “Series B Preferred Stock,”
and the number of shares constituting such series shall be Nineteen Million, Five Hundred Sixty-Five Thousand, Seven Hundred Fifty-Eight
(19,565,758) shares. Such series is referred to herein as the “Series B Preferred.”

 

2. Rank .  As
to payment of individual dividends and as to distributions of assets upon liquidation or winding up of the corporation, whether
voluntary or involuntary (“Distributions”) the Series B Preferred shall rank junior to the Series A Preferred Stock,
par value $0.001 per share (the “Preferred Stock”), and shall have superior rights to the Corporation’s shares
of common stock, par value $0.001 per share (the “Common Stock”).

 

3. Dividends .  The
holders of record of shares of the Series B Preferred shall be entitled to receive dividends only as, when and if such dividends
are declared by the Board of Directors with respect to shares of Series B Preferred.

 

4. Voting Rights .  The
Series B Preferred shall vote together as a class only on all matters which adversely impact the rights or preferences of the Series
B Preferred, as provided herein. The holders of outstanding shares of Series B Preferred shall be entitled to notice of all meetings
of stockholders in accordance with the Corporation’s By-laws. On any matter presented to the stockholders of the Corporation
for their action or consideration at any meeting of stockholders of the Corporation (or by written consent of stockholders in lieu
of meeting), each holder of outstanding shares of Series B Preferred shall be entitled to cast the number of votes, rounded down
to the nearest whole number, equal to the number of votes that would be attributable to the shares of Common Stock issuable upon
conversion of such shares of Series B Preferred, assuming such conversion took place on the record date for determining the stockholders
entitled to vote on such matter at the Conversion Price of Series B Preferred in effect on such record date (adjusted for any reorganization,
recapitalization, reclassification, stock dividend, stock split, reverse stock split, combination or other like changes in the
Corporation’s capital structure). Except as provided herein or by law, holders of outstanding shares of Series B Preferred
Stock shall vote together with the holders of outstanding shares of Common Stock as a single class.

 

Whenever holders of the Series
B Preferred are required or permitted to take any action by vote, such action may be taken without a meeting by written consent,
setting forth the action so taken and signed by the holders of the outstanding Series B Preferred of the Corporation having not
less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares
entitled to vote thereon were present and voted.

 

5. Liquidation Payment
..  In the event of any distribution of assets upon any liquidation, dissolution or winding up of the Corporation,
whether voluntary or involuntary, after payment or provision for payment of the debts and other liabilities of the
Corporation, the holder of each share of the then outstanding Series B Preferred Stock shall be entitled to receive out of
the assets of the Corporation, whether such assets are capital, surplus or earnings, an amount equal to the consideration
paid by him for each such share plus any accrued and unpaid dividends with respect to such shares of Series B Preferred Stock
through the date of such liquidation, dissolution or winding up (the “Liquidation Preference”), before any
payments or distributions are made to, or set aside for, any of the Corporation’s shares of Common Stock, but after any
payments or distributions are made to, or set aside for, any of the Corporation’s Preferred Stock. Neither a
consolidation, merger or other business combination of the Corporation with or into another corporation or other entity nor a
sale or transfer of all or part of the Corporation’s assets for cash, securities or other property shall be considered
a liquidation, dissolution or winding up of the Corporation for purposes of the paragraph 5.

 

    12 

     

    

 

 

6. Conversion .  The
holder of shares of Series B Preferred shall have the following conversion rights (the “ Conversion Rights ”):

 

(i) Holder’s Right
to Convert.   At any time after the date of issuance (the “Issuance Date”), each holder of any shares
of Series B Preferred then outstanding may, at such holder’s option, elect to convert (a “Voluntary Conversion”)
all or any portion of the shares of Series B Preferred held by such holder into a number of fully paid and nonassessable shares
of Common Stock equal to the quotient of (i) the product of (x) the Series B Original Issue Price plus an amount equal to any declared
and unpaid dividends on each share of Series B Preferred being converted prior to the Voluntary Conversion Date (as defined below)
multiplied by (y) the number of shares of Series B Preferred being converted plus the additional number of accrued but unpaid Preferred
Dividends thereon, divided by (ii) the Conversion Price (as defined below) then in effect as of the date of the delivery
by such holder of its notice of election to convert.

 

(ii) Mechanics of Voluntary
Conversion.   The Voluntary Conversion of shares of Series B Preferred shall be conducted in the following manner:

 

(1) Holder’s Delivery
Requirements.   To convert shares of Series B Preferred into full shares of Common Stock on any date (the “Voluntary
Conversion Date”), the holder thereof shall (A) transmit by facsimile (or otherwise deliver), for receipt on or prior to
5:00 p.m., New York time on such date, a copy of a fully executed and completed notice of conversion in the form attached hereto
as Exhibit A (the “Conversion Notice”), to the Corporation, and (B) surrender to a common carrier for delivery
to the Corporation as soon as practicable following such Voluntary Conversion Date but in no event later than three (3) Business
Days (as defined below) after such date the original certificates representing the shares of Series B Preferred being converted
(or an indemnification undertaking with respect to such certificates in the case of their loss, theft or destruction) (the “Preferred
Stock Certificates”) and the originally executed Conversion Notice.

 

(2) Corporation’s
Response.   Upon receipt by the Corporation of a facsimile copy of a Conversion Notice, the Corporation shall within
three (3) Business Days send, via facsimile, a confirmation of receipt of such Conversion Notice to such holder. Upon receipt
by the Corporation of an originally executed Conversion Notice, the Corporation or its designated transfer agent (the “Transfer
Agent”), as applicable, shall, within three (3) Business Days following the date of receipt by the Corporation of the originally
executed Conversion Notice (so long as the applicable Preferred Stock Certificates and original Conversion Notice are received
by the Corporation on or before the third (3 rd ) Business Day), issue and deliver to the Depository Trust Corporation
(“DTC”) account on the holder’s behalf via the Deposit Withdrawal Agent Commission System (“DWAC”)
as specified in the Conversion Notice, registered in the name of the holder or its designee, for the number of shares of Common
Stock to which the holder shall be entitled. Notwithstanding the foregoing to the contrary, the Corporation or the Transfer Agent
shall only be required to issue and deliver the shares to the DTC on a holder’s behalf via DWAC if such conversion is in
connection with a sale and all requirements to effect such DWAC have been met, including, but not limited to, such shares being
registered for resale pursuant to an effective registration statement and satisfaction of applicable prospectus delivery requirements,
if any. If the Corporation or the Transfer Agent cannot issue the shares to a holder via DWAC because the aforementioned conditions
are not satisfied, the Corporation shall deliver physical certificates to the holder or its designee. If the number of shares
of Series B Preferred represented by the Preferred Stock Certificate(s) submitted for conversion is greater than the number of
shares of Series B Preferred being converted, then the Corporation shall, as soon as practicable, issue and deliver to the holder
a new Preferred Stock Certificate representing the number of shares of Series B Preferred not converted. 

 

    13 

     

    

 

 

(3) Record Holder.
  The person or persons entitled to receive the shares of Common Stock issuable upon a Voluntary Conversion of Series
B Preferred shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Voluntary Conversion
Date.

 

(iii) For purposes of this
paragraph 6,

 

(1) the “Series B Original
Issue Price” shall be equal to $1.10.

 

(2) the “Initial Conversion
Price” shall be equal to $1.10 per share, subject to adjustment under Section 6(iii)(3) hereof (such adjusted conversion
price, the “Conversion Price”).

 

(3) Adjustments of Conversion
Price .

 

(A) Adjustments for Stock
Splits and Combinations.   If the Corporation shall at any time or from time to time after the Issuance Date, effect
a stock split of the outstanding shares of Common Stock, the Conversion Price shall be proportionately decreased. For example,
a 2:1 stock split shall result in a decrease in the Conversion Price by 1⁄2, taking into account all prior adjustments made
thereto under this Section 6(iii)(3). If the Corporation shall at any time or from time to time after the Issuance Date, combine
the outstanding shares of Common Stock, the Conversion Price shall be proportionately increased. For example, a 1:2 combination
shall result in an increase in the Conversion Price by a multiple of 2, taking into account all prior adjustments made thereto
under this Section 6(iii)(3). Any adjustments under this Section 6(iii)(3)(A) shall be effective at the close of business on the
date the stock split or combination becomes effective.

 

(B) Adjustments for Dividends
and Distributions of Common Stock.   If the Corporation shall at any time or from time to time after the Issuance
Date, make or issue or set a record date for the determination of holders of shares of Common Stock entitled to receive a dividend
or other distribution payable in shares of Common Stock, then, and in each event, the Conversion Price shall be decreased as of
the time of such issuance or, in the event such record date shall have been fixed, as of the close of business on such record date,
by multiplying the Conversion Price then in effect by a fraction:

 

(1) the numerator of which
shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the
close of business on such record date; and

 

(2) the denominator of which
shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the
close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution.

 

(C) Adjustment for
Merger or Reorganization, etc.   If at any time or from time to time after the Issuance Date there shall occur
any reorganization, recapitalization, reclassification, consolidation, merger or other reorganization event (collectively,
the “Reorganization Adjustment Event”) involving the Corporation, then, following any such Reorganization
Adjustment Event, each share of Series B Preferred shall thereafter be convertible (without taking into account any
limitations or restrictions on the convertibility of the shares of Series B Preferred), in lieu of the shares of Common
Stock, into the kind and amount of securities, cash or other property which a holder of the number of shares of Common Stock
of the Corporation issuable upon conversion of one share of Series B Preferred immediately prior to such Reorganization
Adjustment Event would have been entitled to receive pursuant to such transaction; and, in such case, appropriate adjustment
(as determined in good faith by the Board of Directors) shall be made in the application of the provisions in this Section
6(iii)(3) with respect to the rights and interests thereafter of the holders of shares of Series B Preferred, to the end that
the provisions set forth in this Section 6 (including provisions with respect to changes in and other adjustments to the
Conversion Price) shall thereafter be applicable, as nearly as reasonably may be, in relation to any securities or other
property thereafter deliverable upon the conversion of the shares of Series B Preferred.

 

7. Redemption .  The
Corporation shall have no rights to redeem the Series B Preferred.

 

8. Transfer of Shares
..  A holder of shares of Series B Preferred may assign some or all of the shares and the accompanying rights hereunder
held by such holder without the consent of the Corporation; provided that such assignment is in compliance with applicable securities
laws.

 

IN WITNESS HEREOF, General
Steel Holdings, Inc. has caused this Certificate of Designation to be signed on its behalf by John Chen, its Chief Financial Officer
on this 19 th day of August, 2016.

 

    14 

     

    

 

EXHIBIT A

 

GENERAL STEEL HOLDINGS,
INC.

CONVERSION NOTICE

 

Reference is made to the Certificate of
Designation, Preferences and Rights of the Series B Preferred Stock of General Steel Holdings, Inc. (the “ Certificate
of Designation ”). In accordance with and pursuant to the Certificate of Designation, the undersigned hereby elects
to convert the number of shares of Series B Preferred Stock, each with a par value of $0.001 per share (the “ Preferred
Shares ”), of General Steel Holdings, Inc., a Nevada corporation (the “ Company ”), indicated below
into shares of Common Stock, par value $0.001 per share (the “ Common Stock ”), of the Company, by tendering
the stock certificate(s) representing the share(s) of Preferred Shares specified below as of the date specified below. 

   

Date of Conversion:

 

Number of Preferred Shares to be converted:

 

Stock
certificate no(s). of Preferred Shares to be converted:

 

Please confirm the following information:

 

Conversion Price:

 

Number of shares of Common Stock to be issued:

 

Number of shares of Common Stock beneficially owned or deemed beneficially owned by the Holder on the Date of Conversion:    

 

Please issue the Common Stock into which the
Preferred Shares are being converted and, if applicable, any check drawn on an account of the Company in the following name and
to the following address:

 

		 	
	Issue to:	 	 
	Facsimile Number:	 
	Authorization:	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	Dated:	 	 

 

 

    15

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