Document:

Exhibit 10.12

 

DEHAIER MEDICAL SYSTEMS LIMITED 

 

2014 SHARE INCENTIVE PLAN 

 

1. Purpose and Effective Date.

 

(a) The purpose of the Dehaier
Medical Systems Limited 2014 Share Incentive Plan (the “Plan”) is to further the long term stability and financial
success of Dehaier Medical Systems Limited (the “Company”) by attracting and retaining personnel, including employees,
non-employee directors, and consultants, through the use of stock incentives. It is believed that ownership of Company stock will
stimulate the efforts of those employees upon whose judgment, interest and efforts the Company is and will be largely dependent
for the successful conduct of its business.

 

(b) The Plan was recommended
for approval by the Board of Directors on June 26, 2014. The Plan was approved by the shareholders of the Company on July 28, 2014
(the “Effective Date”).

 

2. Definitions.

 

(a) Act. The Securities
Exchange Act of 1934, as amended.

 

(b) Affiliate.
The meaning assigned to the term “affiliate” under Rule 12b-2 of the Act.

 

(c) Applicable Withholding
Taxes. The aggregate amount of federal, state and local income and payroll taxes that the Company is required to withhold (based
on the minimum applicable statutory withholding rates) in connection with any exercise of an Option or the award, lapse of restrictions
or payment with respect to Restricted Stock.

 

(d) Award. The
award of an Option or Restricted Stock under the Plan.

 

(e) Beneficiary.
The person or persons entitled to receive a benefit pursuant to an Award upon the death of a Participant.

 

(f) Board. The
Board of Directors of the Company.

 

(g) Cause. Dishonesty,
fraud, misconduct, gross incompetence, gross negligence, breach of a material fiduciary duty, material breach of an agreement with
the Company, unauthorized use or disclosure of confidential information or trade secrets, or conviction or confession of a crime
punishable by law (except minor violations), in each case as determined by the Committee, which determination shall be binding.
Notwithstanding the foregoing, if “Cause” is defined in an employment agreement between a Participant and the Company,
“Cause” shall have the meaning assigned to it in such agreement.

 

(h) Change of Control.

 

(i) The acquisition by any
unrelated person of beneficial ownership (as that term is used for purposes of the Act) of 50% or more of the then outstanding
common shares of the Company or the combined voting power of the then outstanding voting securities of the Company entitled to
vote generally in the election of directors. The term “unrelated person” means any person other than (x) the Company
and its subsidiaries, (y) an employee benefit plan or related trust sponsored by the Company or its subsidiaries, and (z) a
person who acquires stock of the Company pursuant to an agreement with the Company that is approved by the Board in advance of
the acquisition. For purposes of this subsection, a “person” means an individual, entity or group, as that term is
used for purposes of the Act;

 

(ii) Any tender or exchange
offer, merger or other business combination, sale of assets or any combination of the foregoing transactions, and the Company is
not the surviving corporation; and

 

    	 

    	 

    

 

(iii) A liquidation of the
Company.

 

(i) Code. The Internal
Revenue Code of 1986, as amended.

 

(j) Committee.
The Compensation Committee of the Board.

 

(k) Company. Dehaier
Medical Systems Limited

 

(l) Company Stock.
The common shares of the Company. In the event of a change in the capital structure of the Company (as provided in Section 12
below), the shares resulting from such a change shall be deemed to be Company Stock within the meaning of the Plan.

 

(m) Consultant.
A person rendering services to the Company who is not an “employee” for purposes of employment tax withholding under
the Code.

 

(n) Corporate Change.
A consolidation, merger, dissolution or liquidation of the Company, or a sale or distribution of assets or stock (other than in
the ordinary course of business) of the Company; provided that, unless the Committee determines otherwise, a Corporate Change shall
only be considered to have occurred with respect to Participants whose business unit is affected by the Corporate Change.

 

(o) Date of Grant.
The date as of which an Award is made by the Committee.

 

(p) Disability or Disabled.
As to an Incentive Stock Option, a Disability within the meaning of Code Section 22(e)(3). As to all other Incentive Awards,
the Committee shall determine whether a Disability exists and such determination shall be conclusive.

 

(q) Fair Market Value.

 

(i) If Company Stock is traded
on a national securities exchange, the average of the highest and lowest registered sales prices of Company Stock on such exchange;

 

(ii) If Company Stock is traded
in the over-the-counter market, the average between the closing bid and asked prices as reported by the NASDAQ Stock Market; or

 

(iii) If shares of Company
Stock are not publicly traded, the Fair Market Value shall be determined by the Committee using any reasonable method in good faith.

 

Fair Market Value shall be determined as of the applicable date
specified in the Plan or, if there are no trades on such date, the value shall be determined as of the last preceding day on which
Company Stock is traded.

 

(r) Incentive Stock
Option. An Option intended to meet the requirements of, and qualify for favorable Federal income tax treatment under, Code
Section 422.

 

(s) Nonstatutory Stock
Option. An Option that does not meet the requirements of Code Section 422, or that is otherwise not intended to be an
Incentive Stock Option and is so designated.

 

(t) Option. A right
to purchase Company Stock granted under the Plan, at a price determined in accordance with the Plan.

 

(u) Participant.
Any individual who receives an Award under the Plan.

 

(v) Restricted Stock.
Company Stock awarded upon the terms and subject to the restrictions set forth in Section 7 below.

 

(w) Rule 16b-3.
Rule 16b-3 of the Act, including any corresponding subsequent rule or any amendments to Rule 16b-3 enacted after the effective
date of the Plan.

 

    	 

    	 

    

 

(x) 10% Shareholder.
A person who owns, directly or indirectly, stock possessing more than 10% of the total combined voting power of all classes of
stock of the Company or an Affiliate. Indirect ownership of stock shall be determined in accordance with Code Section 424(d).

 

3. General. Awards of Options
and Restricted Stock may be granted under the Plan. Options granted under the Plan may be Incentive Stock Options or Nonstatutory
Stock Options.

 

4. Stock. The maximum number
of shares of Company Stock that may be granted pursuant to this Plan shall not exceed ten percent of the number of issued and outstanding
shares of Company Stock as of December 31 of the immediately preceding fiscal year. Subject to Section 12 of the Plan, there
shall be reserved for issuance under the Plan that number of unissued shares of Company Stock equal to ten percent of the number
of issued and outstanding shares of Company Stock. Shares allocable to Options granted under the Plan that expire or otherwise
terminate unexercised and shares that are forfeited pursuant to restrictions on Restricted Stock awarded under the Plan may again
be subjected to an Award under this Plan. For purposes of determining the number of shares that are available for Awards under
the Plan, such number shall, if permissible under Rule 16b-3, include the number of shares surrendered by a Participant or retained
by the Company (a) in connection with the exercise of an Option or (b) in payment of Applicable Withholding Taxes.

 

5. Eligibility.

 

(a) Any employee of, non-employee
director of, or Consultant to the Company or its affiliates, who, in the judgment of the Committee, has contributed or can be expected
to contribute to the profits or growth of the Company is eligible to become a Participant. The Committee shall have the power and
complete discretion, as provided in Section 14, to select eligible Participants and to determine for each Participant the
terms, conditions and nature of the Award and the number of shares to be allocated as part of the Award; provided, however, that
any award made to a member of the Committee must be approved by the Board. The Committee is expressly authorized to make an Award
to a Participant conditioned on the surrender for cancellation of an existing Award.

 

(b) The grant of an Award shall
not obligate the Company to pay an employee any particular amount of remuneration, to continue the employment of the employee after
the grant or to make further grants to the employee at any time thereafter.

 

(c) Non-employee directors
and Consultants shall not be eligible to receive the Award of an Incentive Stock Option.

 

6. Stock Options.

 

(a) Whenever the Committee
deems it appropriate to grant Options, notice shall be given to the Participant stating the number of shares for which Options
are granted, the Option price per share, whether the options are Incentive Stock Options or Nonstatutory Stock Options, and the
conditions to which the grant and exercise of the Options are subject. This notice, when duly accepted in writing by the Participant,
shall become a stock option agreement between the Company and the Participant.

 

(b) The Committee shall establish
the exercise price of Options. The exercise price of an Incentive Stock Option shall be not less than 100% of the Fair Market Value
of such shares on the Date of Grant, provided that if the Participant is a 10% Shareholder, the exercise price of an Incentive
Stock Option shall be not less than 110% of the Fair Market Value of such shares on the Date of Grant. The exercise price of a
Nonstatutory Stock Option Award shall not be less than 100% of the Fair Market Value of the shares of Company Stock covered by
the Option on the Date of Grant.

 

(c) Options may be exercised
in whole or in part at such times as may be specified by the Committee in the Participant’s stock option agreement. The Committee
may impose such vesting conditions and other requirements as the Committee deems appropriate, and the Committee may include such
provisions regarding a Change of Control or Corporate Change as the Committee deems appropriate.

 

    	 

    	 

    

 

(d) The Committee shall establish
the term of each Option in the Participant’s stock option agreement. The term of an Incentive Stock Option shall not be longer
than ten years from the Date of Grant, except that an Incentive Stock Option granted to a 10% Shareholder may not have a term in
excess of five years. No option may be exercised after the expiration of its term or, except as set forth in the Participant’s
stock option agreement, after the termination of the Participant’s employment. The Committee shall set forth in the Participant’s
stock option agreement when, and under what circumstances, an Option may be exercised after termination of the Participant’s
employment or period of service; provided that no Incentive Stock Option may be exercised after (i) three months from the
Participant’s termination of employment with the Company for reasons other than Disability or death, or (ii) one year
from the Participant’s termination of employment on account of Disability or death. The Committee may, in its sole discretion,
amend a previously granted Incentive Stock Option to provide for more liberal exercise provisions, provided however that if the
Incentive Stock Option as amended no longer meets the requirements of Code Section 422, and, as a result the Option no longer
qualifies for favorable federal income tax treatment under Code Section 422, the amendment shall not become effective without
the written consent of the Participant.

 

(e) An Incentive Stock Option,
by its terms, shall be exercisable in any calendar year only to the extent that the aggregate Fair Market Value (determined at
the Date of Grant) of Company Stock with respect to which Incentive Stock Options are exercisable by the Participant for the first
time during the calendar year does not exceed $100,000 (the “Limitation Amount”). Incentive Stock Options granted under
the Plan and all other plans of the Company and any parent or Subsidiary of the Company shall be aggregated for purposes of determining
whether the Limitation Amount has been exceeded. The Board may impose such conditions as it deems appropriate on an Incentive Stock
option to ensure that the foregoing requirement is met. If Incentive Stock Options that first become exercisable in a calendar
year exceed the Limitation Amount, the excess Options will be treated as Nonstatutory Stock Options to the extent permitted by
law.

 

(f) If a Participant dies and
if the Participant’s stock option agreement provides that part or all of the Option may be exercised after the Participant’s
death, then such portion may be exercised by the personal representative of the Participant’s estate during the time period
specified in the stock option agreement.

 

(g) If a Participant’s
employment or services is terminated by the Company for Cause, the Participant’s Options shall terminate as of the date of
the misconduct.

 

7. Restricted Stock Awards.

 

(a) Whenever the Committee
deems it appropriate to grant a Restricted Stock Award, notice shall be given to the Participant stating the number of shares of
Restricted Stock for which the Award is granted and the terms and conditions to which the Award is subject. This notice, when accepted
in writing by the Participant, shall become an Award agreement between the Company and the Participant. Certificates representing
the shares shall be issued in the name of the Participant, subject to the restrictions imposed by the Plan and the Committee. A
Restricted Stock Award may be made by the Committee in its discretion without cash consideration.

 

(b) The Committee may place
such restrictions on the transferability and vesting of Restricted Stock as the Committee deems appropriate, including restrictions
relating to continued employment and financial performance goals. Without limiting the foregoing, the Committee may provide performance
or Change of Control or Corporate Change acceleration parameters under which all, or a portion, of the Restricted Stock will vest
on the Company’s achievement of established performance objectives. Restricted Stock may not be sold, assigned, transferred,
disposed of, pledged, hypothecated or otherwise encumbered until the restrictions on such shares shall have lapsed or shall have
been removed pursuant to subsection (c) below.

 

(c) The Committee may provide
in a Restricted Stock Award, or subsequently, that the restrictions will lapse if a Change of Control or Corporate Change occurs.
The Committee may at any time, in its sole discretion, accelerate the time at which any or all restrictions will lapse or may remove
restrictions on Restricted Stock as it deems appropriate.

 

    	 

    	 

    

 

(d) A Participant shall hold
shares of Restricted Stock subject to the restrictions set forth in the Award agreement and in the Plan. In other respects, the
Participant shall have all the rights of a shareholder with respect to the shares of Restricted Stock, including, but not limited
to, the right to vote such shares and the right to receive all cash dividends and other distributions paid thereon. Certificates
representing Restricted Stock shall bear a legend referring to the restrictions set forth in the Plan and the Participant’s
Award agreement. If stock dividends are declared on Restricted Stock, such stock dividends or other distributions shall be subject
to the same restrictions as the underlying shares of Restricted Stock.

 

8. Method of Exercise of Options.

 

(a) Options may be exercised
by giving written notice of the exercise to the Company, stating the number of shares the Participant has elected to purchase under
the Option. Such notice shall be effective only if accompanied by the exercise price in full in cash; provided that, if the terms
of an Option so permit, the Participant may (i) deliver Company Stock that the Participant has owned for at least six months
(valued at Fair Market Value on the date of exercise), or (ii) exercise any applicable net exercise provision contained therein.
Unless otherwise specifically provided in the Option, any payment of the exercise price paid by delivery of Company Stock acquired
directly or indirectly from the Company shall be paid only with shares of Company Stock that have been held by the Participant
for more than six months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting
purposes).

 

(b) Notwithstanding anything
herein to the contrary, Awards shall always be granted and exercised in such a manner as to conform to the provisions of Rule 16b-3.

 

9. Applicable Withholding Taxes.
Each Participant shall agree, as a condition of receiving an Award, to pay to the Company, or make arrangements satisfactory to
the Company regarding the payment of, all Applicable Withholding Taxes with respect to the Award. Until the Applicable Withholding
Taxes have been paid or arrangements satisfactory to the Company have been made, no stock certificates (or, in the case of Restricted
Stock, no stock certificates free of a restrictive legend) shall be issued to the Participant. As an alternative to making a cash
payment to the Company to satisfy Applicable Withholding Tax obligations, the Committee may establish procedures permitting the
Participant to elect to (a) deliver shares of already owned Company Stock (subject to such restrictions as the Committee may
establish, including a requirement that any shares of Company Stock so delivered shall have been held by the Participant for not
less than six months) or (b) have the Company retain that number of shares of Company Stock that would satisfy all or a specified
portion of the Applicable Withholding Taxes. Any such election shall be made only in accordance with procedures established by
the Committee and in accordance with Rule 16b-3.

 

10. Nontransferability of Awards.

 

(a) In general, Awards, by
their terms, shall not be transferable by the Participant except by will or by the laws of descent and distribution or except as
described below. Options shall be exercisable, during the Participant’s lifetime, only by the Participant or by his guardian
or legal representative.

 

(b) Notwithstanding the provisions
of (a) and subject to federal and state securities laws, the Committee may grant Nonstatutory Stock Options that permit a
Participant to transfer the Options to one or more immediate family members, to a trust for the benefit of immediate family members,
or to a partnership, limited liability company, or other entity the only partners, members, or interest-holders of which are among
the Participant’s immediate family members. Consideration may not be paid for the transfer of Options. The transferee of
an Option shall be subject to all conditions applicable to the Option prior to its transfer. The agreement granting the Option
shall set forth the transfer conditions and restrictions. The Committee may impose on any transferable Option and on stock issued
upon the exercise of an Option such limitations and conditions as the Committee deems appropriate.

 

11. Termination, Modification,
Change. If not sooner terminated by the Board, this Plan shall terminate at the close of business on the tenth anniversary
of the Effective Date. No Awards shall be made under the Plan after its termination. The Board may terminate the Plan or may amend
the Plan in such respects as it shall deem advisable; provided that, if and to the extent required by Rule 16b-3, no change shall
be made that increases the total number of shares of Company Stock reserved for issuance pursuant to Awards granted under the Plan
(except pursuant to Section 12), expands the class of persons eligible to receive Awards, or materially increases the benefits
accruing to Participants under the Plan, unless such change is authorized by the shareholders of the Company. Notwithstanding the
foregoing, the Board may unilaterally amend the Plan and Awards as it deems appropriate to ensure compliance with Rule 16b-3 and
to cause Incentive Stock Options to meet the requirements of the Code and regulations thereunder. Except as provided in the preceding
sentence, a termination or amendment of the Plan shall not, without the consent of the Participant, adversely affect a Participant’s
rights under an Award previously granted to him.

 

    	 

    	 

    

 

12. Change in Capital Structure.

 

(a) In the event of a stock
dividend, stock split or combination of shares, spin-off, reclassification, recapitalization, merger or other change in the Company’s
capital stock (including, but not limited to, the creation or issuance to shareholders generally of rights, options or warrants
for the purchase of common shares or preferred stock of the Company), the number and kind of shares of stock or securities of the
Company to be issued under the Plan (under outstanding Awards and Awards to be granted in the future), the exercise price of options,
and other relevant provisions shall be appropriately adjusted by the Committee, whose determination shall be binding on all persons.
If the adjustment would produce fractional shares with respect to any Award, the Committee may adjust appropriately the number
of shares covered by the Award so as to eliminate the fractional shares.

 

(b) In the event the Company
distributes to its shareholders a dividend, or sells or causes to be sold to a person other than the Company or a Subsidiary
shares of stock in any corporation (a “Spinoff Company”) which, immediately before the distribution or sale, was a
majority owned Subsidiary of the Company, the Committee shall have the power, in its sole discretion, to make such adjustments
as the Committee deems appropriate. The Committee may make adjustments in the number and kind of shares or other securities to
be issued under the Plan (under outstanding Awards and Awards to be granted in the future), the exercise price of Options, and
other relevant provisions, and, without limiting the foregoing, may substitute securities of a Spinoff Company for securities of
the Company. The Committee shall make such adjustments as it determines to be appropriate, considering the economic effect of the
distribution or sale on the interests of the Company’s shareholders and the Participants in the businesses operated by the
Spinoff Company, and subject to the proviso that any such adjustments or new options shall not be made or granted, respectively,
that would result in subjecting the Plan to variable plan accounting treatment. The Committee’s determination shall be binding
on all persons. If the adjustment would produce fractional shares with respect to any Award, the Committee may adjust appropriately
the number of shares covered by the Award so as to eliminate the fractional shares.

 

(c) To the extent required
to avoid a charge to earnings for financial accounting purposes, adjustments made by the Committee pursuant to this Section 12
to outstanding Awards shall be made so that both (i) the aggregate intrinsic value of an Award immediately after the adjustment
is not greater than or less than the Award’s aggregate intrinsic value before the adjustment and (ii) the ratio of the
exercise price per share to the market value per share is not reduced.

 

(d) Notwithstanding anything
in the Plan to the contrary, the Committee may take the foregoing actions without the consent of any Participant, and the Committee’s
determination shall be conclusive and binding on all persons for all purposes. The Committee shall make its determinations consistent
with Rule 16b-3 and the applicable provisions of the Code.

 

13. Change of Control. In the
event of a Change of Control or Corporate Change, the Committee may take such actions with respect to Awards as the Committee deems
appropriate. These actions may include, but shall not be limited to, the following:

 

(a) At the time the Award is
made, provide for the acceleration of the vesting schedule relating to the exercise or realization of the Award so that the Award
may be exercised or realized in full on or before a date initially fixed by the Committee;

 

    	 

    	 

    

 

(b) Provide for the purchase
or settlement of any such Award by the Company for any amount of cash equal to the amount which could have been obtained upon the
exercise of such Award or realization of a Participant’s rights had such Award been currently exercisable or payable;

 

(c) Make adjustments to Awards
then outstanding as the Committee deems appropriate to reflect such Change of Control or Corporate Change; provided, however, that
to the extent required to avoid a charge to earnings for financial accounting purposes, such adjustments shall be made so that
both (i) the aggregate intrinsic value of an Award immediately after the adjustment is not greater than or less than the Award’s
aggregate intrinsic value before the Award and (ii) the ratio of the exercise price per share to the market value per share
is not reduced; or

 

(d) Cause any such Award then
outstanding to be assumed, or new rights substituted therefore, by the acquiring or surviving legal entity in such Change of Control
or Corporate Change.

 

14. Administration of the Plan.

 

(a) The Plan shall be administered
by the Committee, who shall be appointed by the Board. The Board may designate the Compensation Committee of the Board, or a subcommittee
of the Compensation Committee, to be the Committee for purposes of the Plan. If and to the extent required by Rule 16b-3, all members
of the Committee shall be “Non-Employee Directors” as that term is defined in Rule 16b-3, and the Committee shall be
comprised solely of two or more “outside directors” as that term is defined for purposes of Code section 162(m). If
any member of the Committee fails to qualify as an “outside director” or (to the extent required by Rule 16b-3) a “Non-Employee
Director,” such person shall immediately cease to be a member of the Committee and shall not take part in future Committee
deliberations. The Board of Directors may from time to time may appoint members of the Committee and fill vacancies, however caused,
in the Committee.

 

(b) The Committee shall have
the authority to impose such limitations or conditions upon an Award as the Committee deems appropriate to achieve the objectives
of the Award and the Plan. Without limiting the foregoing and in addition to the powers set forth elsewhere in the Plan, the Committee
shall have the power and complete discretion to determine (i) which eligible persons shall receive an Award and the nature
of the Award, (ii) the number of shares of Company Stock to be covered by each Award, (iii) whether Options shall be
Incentive Stock options or Nonstatutory Stock Options, (iv) the Fair Market Value of Company Stock, (v) the time or times
when an Award shall be granted, (vi) whether an Award shall become vested over a period of time, according to a performance-based
vesting schedule or otherwise, and when it shall be fully vested, (vii) the terms and conditions under which restrictions
imposed upon an Award shall lapse, (viii) whether a Change of Control or Corporate Change exists, (ix) the terms of incentive
programs, performance criteria and other factors relevant to the issuance of Incentive Stock or the lapse of restrictions on Restricted
Stock or Options, (x) when Options may be exercised, (xi) whether to approve a Participant’s election with respect
to Applicable Withholding Taxes, (xii) conditions relating to the length of time before disposition of Company Stock received
in connection with an Award is permitted, (xiii) notice provisions relating to the sale of Company Stock acquired under the
Plan, and (xiv) any additional requirements relating to Awards that the Committee deems appropriate. Notwithstanding the foregoing,
no “tandem stock options” (where two stock options are issued together and the exercise of one option affects the right
to exercise the other option) may be issued in connection with Incentive Stock Options.

 

(c) The Committee shall have
the power to amend the terms of previously granted Awards so long as the terms as amended are consistent with the terms of the
Plan and, where applicable, consistent with the qualification of an option as an Incentive Stock Option. The consent of the Participant
must be obtained with respect to any amendment that would adversely affect the Participant’s rights under the Award, except
that such consent shall not be required if such amendment is for the purpose of complying with Rule 16b-3 or any requirement of
the Code applicable to the Award.

 

(d) The Committee may adopt
rules and regulations for carrying out the Plan. The Committee shall have the express discretionary authority to construe and interpret
the Plan and the Award agreements, to resolve any ambiguities, to define any terms, and to make any other determinations required
by the Plan or an Award agreement. The interpretation and construction of any provisions of the Plan or an Award agreement by the
Committee shall be final and conclusive. The Committee may consult with counsel, who may be counsel to the Company, and shall not
incur any liability for any action taken in good faith in reliance upon the advice of counsel.

 

    	 

    	 

    

 

(e) A majority of the members
of the Committee shall constitute a quorum, and all actions of the Committee shall be taken by a majority of the members present.
Any action may be taken by a written instrument signed by all of the members, and any action so taken shall be fully effective
as if it had been taken at a meeting.

 

15. Issuance of Company Stock.
The Company shall not be required to issue or deliver any certificate for shares of Company Stock before (i) the admission
of such shares to listing on any stock exchange on which Company Stock may then be listed, (ii) receipt of any required registration
or other qualification of such shares under any state or federal securities law or regulation that the Company’s counsel
shall determine is necessary or advisable, and (iii) the Company shall have been advised by counsel that all applicable legal
requirements have been complied with. The Company may place on a certificate representing Company Stock any legend required to
reflect restrictions pursuant to the Plan, and any legend deemed necessary by the Company’s counsel to comply with federal
or state securities laws. The Company may require a customary written indication of a Participant’s investment intent. Until
a Participant has been issued a certificate for the shares of Company Stock acquired, the Participant shall possess no shareholder
rights with respect to the shares.

 

16. Rights Under the Plan.
Title to and beneficial ownership of all benefits described in the Plan shall at all times remain with the Company. Participation
in the Plan and the right to receive payments under the Plan shall not give a Participant any proprietary interest in the Company
or any Affiliate or any of their assets. No trust fund shall be created in connection with the Plan, and there shall be no required
funding of amounts that may become payable under the Plan. A Participant shall, for all purposes, be a general creditor of the
Company. The interest of a Participant in the Plan cannot be assigned, anticipated, sold, encumbered or pledged and shall not be
subject to the claims of his creditors.

 

17. Beneficiary. A Participant
may designate, on a form provided by the Committee, one or more beneficiaries to receive any payments under Awards of Restricted
Stock or Incentive Stock after the Participant’s death. If a Participant makes no valid designation, or if the designated
beneficiary fails to survive the Participant or otherwise fails to receive the benefits, the Participant’s beneficiary shall
be the first of the following persons who survives the Participant: (a) the Participant’s surviving spouse, (b) the
Participant’s surviving descendants, per stirpes, or (c) the personal representative of the Participant’s
estate.

 

18. Notice. All notices and
other communications required or permitted to be given under this Plan shall be in writing and shall be deemed to have been duly
given if delivered personally or mailed first class, postage prepaid, as follows: (a) if to the Company—at its principal
business address to the attention of the Secretary; (b) if to any Participant—at the last address of the Participant
known to the sender at the time the notice or other communication is sent.

 

19. Interpretation. The terms
of this Plan and Awards granted pursuant to the Plan are subject to all present and future regulations and rulings of the Secretary
of the Treasury relating to the qualification of Incentive Stock Options under the Code or compliance with Code section 162(m),
to the extent applicable, and they are subject to all present and future rulings of the Securities and Exchange Commission with
respect to Rule 16b-3. If any provision of the Plan or an Award conflicts with any such regulation or ruling, to the extent applicable,
the Committee shall cause the Plan to be amended, and shall modify the Award, so as to comply, or if for any reason amendments
cannot be made, that provision of the Plan and/or the Award shall be void and of no effect.Exhibit
10.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEWEGG,
INC.

FOURTH
AMENDED AND RESTATED 2005 INCENTIVE AWARD PLAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

TABLE
OF CONTENTS

 

		 	Page 
	1.	PURPOSES
    OF THE PLAN	1
	2.	DEFINITIONS	1
	3.	STOCK
    SUBJECT TO THE PLAN	6
	4.	ADMINISTRATION
    OF THE PLAN	6
	5.	ELIGIBILITY	8
	6.	LIMITATIONS	8
	7.	TERM
    OF PLAN	9
	8.	OPTIONS	9
	9.	STOCK
    APPRECIATION RIGHTS	12
	10.	STOCK
    PURCHASE RIGHTS	14
	11.	RESTRICTED
    STOCK AWARD AND RESTRICTED STOCK UNITS	14
	12.	PERFORMANCE
    AWARDS	17
	13.	NON-TRANSFERABILITY
    OF AWARDS	18
	14.	NO
    RIGHTS AS STOCKHOLDERS	18
	15.	ADJUSTMENTS
    UPON CHANGES IN CAPITALIZATION, MERGER OR ASSET SALE	18
	16.	TIME
    OF GRANTING AWARDS	20
	17.	AMENDMENT
    AND TERMINATION OF THE PLAN	20
	18.	STOCKHOLDER
    APPROVAL	21
	19.	INABILITY
    TO OBTAIN AUTHORITY	21
	20.	RESERVATION
    OF SHARES	21
	21.	INFORMATION
    TO HOLDERS AND PURCHASERS	21
	22.	REPURCHASE
    PROVISIONS	21
	23.	PARTICIPANT
    REPRESENTATIONS	22
	24.	CODE
    SECTION 409A	22
	25.	GOVERNING
    LAW	22
	26.	RESTRICTIONS
    ON SHARES	23
	27.	LOCK-UP
    AGREEMENT	23
	28.	BOOK
    ENTRY PROCEDURES	23
	29.	WITHHOLDING	23
	30.	SECURITIES
    LAWS	24
	31.	LIMITATIONS
    APPLICABLE TO SECTION 16 PERSONS	24
	32.	SEVERABILITY	24

 

     

     

    

 

NEWEGG
INC.

FOURTH
AMENDED AND RESTATED

2005 INCENTIVE AWARD PLAN

 

1.
Purposes of the Plan. The purposes of this Newegg Inc. Fourth Amended and Restated 2005 Incentive Award Plan (the “Plan”)
are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentives
to Employees, Directors and Consultants and to promote the success of the Company’s business. Options granted under the
Plan may be Incentive Stock Options or Non-Qualified Stock Options, as determined by the Administrator at the time of grant. Stock
Appreciation Rights, Stock Purchase Rights, Restricted Stock Awards and Restricted Stock Units may also be granted under the Plan.
The Plan amends and restates in its entirety the Newegg Inc. Fourth Amended and Restated 2005 Equity Incentive Plan.

 

2.
Definitions. As used herein, the following definitions shall apply:

 

(a) “Acquisition”
means (i) any consolidation or merger of the Company with or into any other corporation or other entity or person (other than
Fred Chang, any of his Affiliates (as defined below) and any lineal descendant of Mr. Chang, any widow or then current spouse
of Mr. Chang or of any such lineal descendant, a trust established principally for the benefit of any of the foregoing, any entity
which is at least forty percent (40%) beneficially owned by any of the foregoing, and the executor, administrator or personal
representative of the estate of any of the foregoing (Fred Chang, his Affiliates and any one or more of the foregoing being sometimes
hereinafter referred to as the “Chang Group”)) in which the stockholders of the Company prior to such consolidation
or merger own, directly or indirectly, less than fifty percent (50%) of the continuing or surviving entity’s voting power
immediately after such consolidation or merger, excluding any consolidation or merger effected exclusively to change the domicile
of the Company; or (ii) a sale or other disposition of capital stock of the Company holding at least a majority of the Company’s
voting power or a sale or other disposition of all or substantially all of the assets of the Company, in each case to any entity
or person other than the Chang Group. For purposes of this Agreement, the term “Affiliate” shall mean any partnership,
corporation, firm, joint venture, association, trust, unincorporated organization or other entity that, directly or indirectly
through one or more intermediaries, is controlled by Mr. Chang or any other member of the Chang Group, where the term “controlled
by” means the possession, direct or indirect, of the power to cause the direction of the management and policies of such
entity, whether through the ownership of voting interests or voting securities, as the case may be, by contract or otherwise.

 

(b) “Administrator”
means the Board or the Committee, as applicable, responsible for conducting the general administration of the Plan in accordance
with Section 4 hereof; provided, however, that in the case of the administration of the Plan with respect to awards granted
to Independent Directors, the term “Administrator” shall refer to the Board.

 

(c) “Applicable
Laws” means the requirements relating to the administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation system on which the Class A Common Stock is listed
or quoted and the applicable laws of any foreign country or jurisdiction where Awards are granted under the Plan.

 

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(d) “Award”
means an Option, a Stock Appreciation Right, a Stock Purchase Right, a Restricted Stock Award, or a Restricted Stock Unit granted
to a Service Provider under the Plan. The Committee, in its discretion, may determine that any Award granted hereunder shall be
a Performance Award.

 

(e) “Award
Agreement” means an Option Agreement, a Stock Appreciation Rights Agreement, a Restricted Stock Award Agreement, a Restricted
Stock Purchase Agreement, or a Restricted Stock Unit Agreement.

 

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

 

(g)
“Cause,” with respect to any Holder, means “Cause” as defined in such Holder’s employment
agreement with the Company if such an agreement exists and contains a definition of Cause, or, if no such agreement exists or
such agreement does not contain a definition of Cause, then Cause means (i) the Holder’s unauthorized use or disclosure
of confidential information or trade secrets of the Company; (ii) the Holder’s conviction of, or the entry of a plea of
guilty or nolo contendere by the Holder to, a felony under the laws of the United States or any state thereof or a crime involving
moral turpitude; (iii) the Holder’s gross negligence or willful misconduct or the Holder’s continued failure to perform
assigned duties; or (iv) an act of fraud or dishonesty committed by the Holder against the Company.

 

(h) “Code”
means the Internal Revenue Code of 1986, as amended, or any successor statute or statutes thereto. Reference to any particular
section of the Code shall include any successor section or amendment.

 

(i) “Committee”
means a committee appointed by the Board in accordance with Section 4 hereof.

 

(j) “Class
A Common Stock” means the Class A Common Stock, $0.001 par value per share, of the Company.

 

 (k) “Company” means Newegg Inc., a Delaware corporation.

 

(1)
“Consultant” means any consultant or advisor if: (i) the consultant or adviser renders bona fide services
to the Company or any Parent or Subsidiary of the Company; (ii) the services rendered by the consultant or advisor are not in
connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or
maintain a market for the Company’s securities; and (iii) the consultant or advisor is a natural person who has
contracted directly with the Company or any Parent or Subsidiary of the Company to render such services.

 

 (m) “Director” means a member of the Board.

 

(n) “Disability”
shall mean a total and permanent disability within the meaning of Section 22(e)(3) of the Code.

 

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(o) “Effective
Date” means the date on which the Plan is approved by the Company’s stockholders pursuant to Section 16 hereof.

 

(p) “Employee”
means any person, including an Officer or Director, who is an employee (as defined in accordance with Section 340l(c) of the Code)
of the Company or any Parent or Subsidiary of the Company. An individual shall not cease to be an Employee in the case of (i)
any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent,
any Subsidiary, or any successor. For purposes of Incentive Stock Options, no such leave of absence may exceed ninety (90) days,
unless reemployment upon expiration of such leave is guaranteed by statute or contract. Neither service as a Director nor payment
of a director’s fee by the Company shall be sufficient, by itself, to constitute “employment” by the Company.

 

(q) “Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any successor statute or statutes thereto. Reference
to any particular section of the Exchange Act shall include any successor section.

 

(r) “Fair
Market Value” means, as of any given date, the value of a share of Class A Common Stock determined as follows:

 

(i) If
the Class A Common Stock is listed on any established stock exchange or a national market system, the Fair Market Value shall
be the closing sales price for a share of such stock as quoted on such exchange or system for such date, or if no sale occurred
on such date, the first trading date immediately prior to such date during which a sale occurred, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable;

 

(ii) If
the Class A Common Stock is regularly quoted by a recognized securities dealer or on a national market or other quotation system
(including, without limitation, The PORTAL Alliance or any similar trading system or platform), the Fair Market Value shall be
the last sales price on such date, or if no sales occurred on such date, then on the first date immediately prior to such date
on which a sale occurred; or

 

(iii) In
the absence of an established market for the Class A Common Stock, the Fair Market Value shall be determined in good faith by
the Administrator.

 

(s) “Holder”
means a person who has been granted or awarded an Award or who holds Shares acquired pursuant to the exercise or settlement of
an Award.

 

(t) “Incentive
Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of
the Code and which is designated as an Incentive Stock Option by the Administrator.

 

(u)
“Independent Director” means a Director who is not an Employee of the Company.

 

(v)
“Non-Qualified Stock Option” means an Option (or portion thereof) that is not designated as an Incentive
Stock Option by the Administrator, or which is designated as an Incentive Stock Option by the Administrator but fails
to qualify as an incentive stock option within the meaning of Section 422 of the Code.

 

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(w) “Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

 

 (x) “Option” means a stock option granted pursuant to Section 8 hereof.

 

(y) “Option
Agreement” means a written agreement between the Company and a Holder evidencing the terms and conditions of an individual
Option grant. The Option Agreement is subject to the terms and conditions of the Plan.

 

(z) “Parent”
means any corporation, whether now or hereafter existing (other than the Company), in an unbroken chain of corporations ending
with the Company if each of the corporations other than the last corporation in the unbroken chain owns stock possessing more
than fifty percent of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

(aa)
“Performance Award” means an Award the grant, issuance, retention, vesting and/or settlement of which is subject
to satisfaction of one or more of the Qualifying Performance Criteria specified in Section 12.

 

(bb)
“Plan” means the Newegg Inc. Fourth Amended and Restated 2005 Incentive Award Plan, and as it may be amended
from time to time.

 

(cc)
“Public Trading Date” means the first date upon which Class A Common Stock of the Company is listed (or approved
for listing) upon notice of issuance on any securities exchange or designated (or approved for designation) upon notice of issuance
as a national market security on an interdealer quotation system; provided, however, that the “Public Trading Date”
shall not include the listing or trading of the Class A Common Stock on The PORTAL Alliance or any similar trading system or platform.

 

(dd)
“Restricted Stock” means Shares acquired pursuant to the exercise of an unvested Option in accordance with
Section 8(1) hereof, pursuant to a Stock Purchase Right granted under Section 10 hereof, or pursuant to a Restricted Stock Award
granted under Section 11 hereof.

 

(ee)
“Restricted Stock Award” means a right to receive shares of Class A Common Stock which is granted pursuant
to the terms and conditions of Section 11 hereof.

 

(ff)
“Restricted Stock Award Agreement” means a written agreement between the Company and a Holder evidencing the
terms and conditions of the issuance of Restricted Stock Award. The Restricted Stock Award Agreement is subject to the terms and
conditions of the Plan.

 

(gg)“Restricted
Stock Purchase Agreement” means a written agreement between the Company and a Holder evidencing the terms and conditions
of the issuance of Restricted Stock. The Restricted Stock Purchase Agreement is subject to the terms and conditions of the Plan.

 

    - 4 -

     

    

 

(hh)
“Restricted Stock Unit” means a right to receive shares of Class A Common Stock which is granted pursuant to
the terms and conditions of Section 11 hereof.

 

(ii)
“Restricted Stock Unit Agreement” means a written agreement between the Company and a Holder evidencing the
terms and conditions of a Restricted Stock Unit grant. Each Restricted Stock Unit Agreement shall be subject to the terms and
conditions of the Plan.

 

(jj)
“Rule 16b-3” means that certain Rule 16b-3 under the Exchange Act, as such Rule may be amended from time to
time.

 

(kk)
“Securities Act” means the Securities Act of 1933, as amended, or any successor statute or statutes thereto.
Reference to any particular section of the Securities Act shall include any successor section.

 

(ll)
“Service Provider” means an Employee, Director or Consultant. The Committee, in its sole discretion, shall
determine the effect of all matters and questions relating to an individual’s status as a Service Provider for purposes
of the Plan and any Award agreement, including without limitation, the question of whether and when an individual ceases to be
a Service Provider, whether an individual ceases to be a Service Provider where the Service Provider changes status from an employee
to an independent contractor or where there is a simultaneous reemployment or continuing employment, directorship or consultancy
of such individual by the Company or any Subsidiary or Parent, whether any particular leave of absence constitutes a termination
of an individual’s status as a Service Provider, and whether a Termination of Service resulted from a discharge for cause.

 

(mm)
“Share” means a share of Class A Common Stock, as adjusted in accordance with Section 15 hereof.

 

(nn)
“Stock Appreciation Right” or “SAR” means a right granted pursuant to Section 9 to receive
a payment equal to the excess of the Fair Market Value of a specified number of Shares on the date the Stock Appreciation Right
is exercised over the exercise price of the Stock Appreciation Right as set forth in the applicable Stock Appreciation Rights
Agreement, which per share exercise price shall not be less than the Fair Market Value of a Share on the date the Stock Appreciation
Right is granted.

 

(oo)
“Stock Appreciation Rights Agreement” means a written agreement between the Company and a Holder evidencing
the terms and conditions of the issuance of a Stock Appreciation Right. The Stock Appreciation Rights Agreement is subject to
the terms and conditions of the Plan.

 

(pp)
“Stock Purchase Right” means a right to purchase Class A Common Stock pursuant to Section 10
hereof.

 

(qq)
“Subsidiary” means any corporation, whether now or hereafter existing (other than the Company), in an
unbroken chain of corporations beginning with the Company if each of the corporations other than the last corporation in the
unbroken chain owns stock possessing more than fifty percent of the total combined voting power of all classes of stock in
one of the other corporations in such chain.

 

    - 5 -

     

    

  

3. Stock
Subject to the Plan. Subject to the provisions of Section 15 hereof, the shares of stock subject to Awards granted under
the Plan shall be shares of Class A Common Stock. Subject to the provisions of Section 15 hereof, the maximum aggregate
number of Shares with respect to which Awards may be granted or issued under the Plan is 14,200,000. Shares issued upon
exercise of Awards may be authorized but unissued, or reacquired Class A Common Stock. Subject to the limitations of this
Section 3, if an Award expires or becomes unexercisable without having been exercised in full, the unpurchased or unissued
Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has
terminated).Subject to the limitations of this Section 3, Shares which are delivered by the Holder or withheld by the
Company upon the exercise of an Award under the Plan, in payment of the exercise price thereof or tax withholding thereon,
may again be optioned, granted or awarded hereunder. If Shares of Restricted Stock are forfeited or repurchased by the
Company at their original purchase price, such Shares shall become available for future grant under the
Plan. Notwithstanding the provisions of this Section 3, no Shares may again be optioned, granted or awarded if such action
would cause an Incentive Stock Option to fail to qualify as an Incentive Stock Option under Section 422 of the Code. To the
extent that a Stock Appreciation Right is exercised for, or settled in, Class A Common Stock, the full number of Shares
subject to such Stock Appreciation Right shall be counted for purposes of calculating the aggregate number of Shares still
available for issuance under the Plan as set forth in this Section 3, regardless of the actual number of Shares issued upon
such exercise or settlement.

 

 4. Administration of the Plan.

 

(a) Administrator.
Unless and until the Board delegates administration to a Committee as set forth below, the Plan shall be administered by the Board.
The Board may delegate administration of the Plan to a Committee or Committees of one or more members of the Board, and the term
“Committee” shall refer to any person or persons to whom such authority has been delegated. If administration is delegated
to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed
by the Board, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to
such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. Notwithstanding
the foregoing, however, from and after the Public Trading Date, a Committee of the Board shall administer the Plan and the Committee
shall consist solely of two or more Independent Directors each of whom is both an “outside director,” within the meaning
of Section 162(m) of the Code, a “non-employee director” within the meaning of Rule 16b-3 and an “independent
director” under the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted
or traded; provided, that any action taken by the Committee shall be valid and effective, whether or not members
of the Committee at the time of such action are later determined not to have satisfied the requirements for membership set forth
in this Section 4(a) or otherwise provided in any charter of the Committee. Within the scope of its authority, the Board or the
Committee may (i) delegate to a committee of one or more members of the Board who are not “outside directors” within
the meaning of Section 162(m) of the Code, the authority to grant awards under the Plan to eligible persons who are either (1)
not then “covered employees,” within the meaning of Section 162(m) of the Code and are not expected to be “covered
employees” at the time of recognition of income resulting from such award or (2) not persons with respect to whom the Company
wishes to comply with Section 162(m) of the Code and/or (ii) delegate to a committee of one or more members of the Board who are
not “non-employee directors,” within the meaning of Rule 16b-3, the authority to grant awards under the Plan to eligible
persons who are not then subject to Section 16 of the Exchange Act. The Board may abolish the Committee at any time and revest
in the Board the administration of the Plan. The governance of the Committee shall be subject to the charter of the Committee
as approved by the Board. Notwithstanding the foregoing, the full Board, acting by a majority of its members in office, shall
conduct the general administration of the Plan with respect to Awards granted to Independent Directors.

 

    - 6 -

     

    

 

(b) Powers
of the Administrator. Subject to the provisions of the Plan and the specific duties delegated by the Board to such Committee,
and subject to the approval of any relevant authorities, the Administrator shall have the authority in its sole discretion:

 

 (i) to determine the Fair Market Value;

 

(ii) to
select the Service Providers to whom Awards may from time to time be granted hereunder;

 

(iii) to
determine the number of Shares to be covered by each such Award granted hereunder;

 

 (iv) to approve foil, s of agreement for use under the Plan;

 

(v) to
determine the terms and conditions of any Award granted hereunder (such terms and conditions include, but are not limited to,
the exercise price, the time or times when Awards may vest or be exercised (which may be based on Qualifying Performance Criteria
as set forth in Section 12), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation
regarding any Award or the Class A Common Stock relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine);

 

(vi) to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under foreign tax laws;

 

(vii) to
amend the Plan or any Award granted under the Plan as provided in Section 17 hereof; and

 

(viii) to
construe and interpret the terms of the Plan and awards granted pursuant to the Plan and to exercise such powers and perform such
acts as the Administrator deems necessary or desirable to promote the best interests of the Company which are not in conflict
with the provisions of the Plan.

 

    - 7 -

     

    

 

(c) Effect
of Administrator’s Decision. All decisions, determinations and interpretations of the Administrator shall be final and
binding on all Holders.

 

 5. Eligibility.

 

(a) Non-Qualified
Stock Options, Stock Appreciation Rights, Stock Purchase Rights, Restricted Stock Awards, and Restricted Stock Units may be granted
to Service Providers. Incentive Stock Options may be granted only to Employees. If otherwise eligible, a Service Provider who
has been granted an Award may be granted additional Awards.

 

(b) In
order to assure the viability of awards granted to Service Providers in foreign countries, the Administrator may provide for such
special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, or custom. Moreover,
the Administrator may approve such supplements to, or amendments, restatements, or alternative versions of, the Plan as it may
consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan as in effect for any other
purpose; provided, however, that no such supplements, amendments, restatements, or alternative versions shall increase
the share limitations contained in Sections 3 and 6(c) of the Plan.

 

6. Limitations.

 

(a) Each
Option shall be designated by the Administrator in the Option Agreement as either an Incentive Stock Option or a Non-Qualified
Stock Option. However, notwithstanding such designations, to the extent that the aggregate Fair Market Value of Shares subject
to a Holder’s Incentive Stock Options and other incentive stock options granted by the Company or any “parent corporation”
or “subsidiary corporation” thereof within the meaning of Section 424(e) and 424(f), respectively, of the Code, which
become exercisable for the first time during any calendar year (under all plans of the Company or any “parent corporation”
or “subsidiary corporation” thereof within the meaning of Section 424(e) and 424(f), respectively, of the Code) exceeds
$100,000, such excess Options or other options shall be treated as Non-Qualified Stock Options.

 

For
purposes of this Section 6(a), Incentive Stock Options shall be taken into account in the order in which they were granted, and
the Fair Market Value of the Shares shall be determined as of the time of grant.

 

(b) Neither
the Plan nor any Award shall confer upon a Service Provider any right with respect to continuing the Holder’s employment,
directorship or consulting relationship with the Company, nor shall they interfere in any way with the Holder’s right or
the Company’s right to terminate such employment, directorship or consulting relationship at any time, with or without Cause.

 

(c)
The maximum number of Shares with respect to one or more Awards that may be granted on one or more occasions to any one
Service Provider during any calendar year shall be 8,000,000 (subject to adjustment as provided in Section 15 hereof); provided,
however, that the foregoing limitation shall not apply prior to the Public Trading Date and, following the Public Trading
Date, the foregoing limitation shall not apply until the earliest of: (i) the first material modification of the Plan
(including any increase in the number of shares reserved for issuance under the Plan in accordance with Section 3 hereof);
(ii) the issuance of all of the shares of Class A Common Stock reserved for issuance under the Plan; (iii) the expiration of
the Plan; the first meeting of stockholders at which Directors of the Company are to be elected that occurs after the close
of the third calendar year following the calendar year in which occurred the first registration of an equity security of the
Company under Section 12 of the Exchange Act; or (v) such other date required by Section 162(m) of the Code and the rules and
regulations promulgated thereunder.

 

    - 8 -

     

    

 

7. Term
of Plan. The Fourth Amended and Restated Plan shall become effective on the Effective Date and shall continue in effect until
it is terminated under Section 17 hereof.

 

8. Options.
The Administrator is authorized to grant Options to eligible individuals on the following terms and conditions:

 

(a) Term
of Option. The term of each Option shall be stated in the Option Agreement; provided, however, that the term shall
be no more than ten (10) years from the date of grant thereof. In the case of an Incentive Stock Option granted to a Holder who,
at the time the Option is granted, owns (or is treated as owning under Section 424 of the Code) stock representing more than ten
percent (10%) of the voting power of all classes of stock of the Company or any “parent corporation” or “subsidiary
corporation” thereof within the meaning of Section 424(e) and 424(f), respectively, of the Code, the term of the
Option shall be no more than five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement.

 

(b) Exercise
Price. The per share exercise price for the Shares to be issued upon exercise of an Option shall not be less than 100% of
the Fair Market Value on the date of grant (or, in the case of an Incentive Stock Option granted to a Service Provider who, at
the time of grant of such Option, owns stock representing more than 10% of the voting power of all classes of stock of the Company
or any “parent corporation” or “subsidiary corporation” thereof within the meaning of Section 424(e) and
424(f), respectively, of the Code, the per share exercise price shall not be less than 110% of the Fair Market Value on the date
of grant).

 

Notwithstanding
the foregoing, Options may be granted with a per share exercise price other than as required above pursuant to a merger or other
corporate transaction.

 

(c) Consideration.
The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be
determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant). Such
consideration may consist of (1) cash, (2) check, (3) with the consent of the Administrator, a full recourse promissory note bearing
interest (at no less than such rate as shall then preclude the imputation of interest under the Code) and payable upon such terms
as may be prescribed by the Administrator, (4) with the consent of the Administrator, other Shares which have a Fair Market Value
on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option shall be exercised, (5) with
the consent of the Administrator, surrendered Shares then issuable upon exercise of the Option having a Fair Market Value on the
date of exercise equal to the aggregate exercise price of the Option or exercised portion thereof, (6) with the consent of the
Administrator, property of any kind which constitutes good and valuable consideration, (7) with the consent of the Administrator,
delivery of a notice that the Holder has placed a market sell order with a broker with respect to Shares then issuable upon exercise
of the Options and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company
in satisfaction of the Option exercise price, provided, that payment of such proceeds is then made to the Company upon settlement
of such sale, or (8) with the consent of the Administrator, any combination of the foregoing methods of payment. Notwithstanding
any other provision of the Plan to the contrary, after the Public Trading Date, no Holder who is a Director or an “executive
officer” of the Company within the meaning of Section l3(k) of the Exchange Act shall be permitted to pay the exercise
price of an Option, or continue any extension of credit with respect to the exercise price of an Option with a loan from the Company
or a loan arranged by the Company in violation of Section 13(k) of the Exchange Act.

 

    - 9 -

     

    

 

(d) Vesting;
Fractional Exercises. Options granted hereunder shall be vested and exercisable according to the terms hereof at such times
and under such conditions as determined by the Administrator and set forth in the Option Agreement. An Option may not be exercised
for a fraction of a Share.

 

(e) Deliveries
upon Exercise. All or a portion of an exercisable Option shall be deemed exercised upon delivery of all of the following to
the Secretary of the Company or his or her office:

 

(i) A
written or electronic notice complying with the applicable rules established by the Administrator stating that the Option, or
a portion thereof, is exercised. The notice shall be signed by the Holder or other person then entitled to exercise the Option
or such portion of the Option;

 

(ii) Such
representations and documents as the Administrator, in its sole discretion, deems necessary or advisable to effect compliance
with Applicable Laws. The Administrator may, in its sole discretion, also take whatever additional actions it deems appropriate
to effect such compliance, including, without limitation, placing legends on share certificates and issuing stop transfer notices
to agents and registrars;

 

(iii) Upon
the exercise of all or a portion of an unvested Option pursuant to Section 8(1) below, a Restricted Stock Purchase Agreement in
a form determined by the Administrator and signed by the Holder or other person then entitled to exercise the Option or such portion
of the Option; and

 

(iv)
In the event that the Option shall be exercised pursuant to Section 8(j) below by any person or persons other than the
Holder, appropriate proof of the right of such person or persons to exercise the Option.

 

(f) Conditions
to Delivery of Share Certificates. The Company shall not be required to issue or deliver any certificate or certificates or
make any book entries for Shares purchased upon the exercise of any Option or portion thereof prior to fulfillment of all of the
following conditions:

  

(i) The
admission of such Shares to listing on all stock exchanges on which such class of stock is then listed;

 

    - 10 -

     

    

 

(ii) The
completion of any registration or other qualification of such Shares under any state or federal law, or under the rulings or regulations
of the Securities and Exchange Commission or any other governmental regulatory body which the Administrator shall, in its sole
discretion, deem necessary or advisable;

 

(iii) The
obtaining of any approval or other clearance from any domestic or foreign governmental agency which the Administrator shall, in
its sole discretion, determine to be necessary or advisable; and

 

(iv) The
receipt by the Company of full payment for such Shares, including payment of any applicable withholding tax, which in the sole
discretion of the Administrator may be in the form of consideration used by the Holder to pay for such Shares under Section 8(c)
hereof, subject to Section 29 hereof.

 

(g) Termination
of Relationship as a Service Provider. If a Holder ceases to be a Service Provider other than by reason of a termination by
the Company for Cause or the Holder’s Disability or death, such Holder may exercise his or her Option within such period
of time as is specified in the Option Agreement to the extent that the Option is vested as of the date of termination; provided,
however, that prior to the Public Trading Date, such period of time shall not be less than thirty (30) days (but in
no event later than the expiration of the term of the Option as set forth in the Option Agreement). In the absence of a specified
time in the Option Agreement, the Option shall remain exercisable for ninety (90) days following the date of the Holder’s
termination. If, as of the date of termination, the Holder is not vested as to his or her entire Option, the Shares covered by
the unvested portion of the Option shall immediately cease to be issuable under the Option and shall again become available for
issuance under the Plan. If, after termination, the Holder does not exercise his or her Option within the time period specified
herein, the Option shall teammate, and the Shares covered by such Option shall again become available for issuance under the Plan.

 

(h) Termination
for Cause. If a Holder ceases to be a Service Provider by reason of a termination by the Company for Cause, the Option shall
terminate upon the date of the Holder’s termination by the Company for Cause, regardless of whether the Option is then vested
and/or exercisable with respect to any Shares.

 

(i) Disability
of Holder. If a Holder ceases to be a Service Provider as a result of the Holder’s Disability, the Holder may exercise
his or her Option within such period of time as is specified in the Option Agreement to the extent that the Option is vested as
of the date of termination; provided, however, that prior to the Public Trading Date, such period of time shall not be
less than six (6) months (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement).
In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following
the date of the Holder’s termination. In the case of an Incentive Stock Option, if such Disability is not a “disability”
as such term is defined in Section 22(e)(3) of the Code, such Incentive Stock Option shall automatically cease to be treated as
an Incentive Stock Option and shall be treated for tax purposes as a Non-Qualified Stock Option from and after the date which
is three (3) months and one (1) day following the date of such termination. If, as of the date of termination, the Holder is not
vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall immediately cease to be
issuable under the Option and shall again become available for issuance under the Plan. If, after termination, the Holder does
not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option
shall again become available for issuance under the Plan.

 

    - 11 -

     

    

 

(j) Death
of Holder. If a Holder dies while a Service Provider, the Option may be exercised within such period of time as is specified
in the Option Agreement to the extent that the Option is vested as of the date of death; provided, however, that prior
to the Public Trading Date, such period of time shall not be less than six (6) months (but in no event later than the expiration
of the term of such Option as set forth in the Option Agreement), by the Holder’s estate or by a person who acquires the
right to exercise the Option by bequest or inheritance, but only to the extent that the Option is vested on the date of death.
In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following
the date of the Holder’s termination. If, at the time of death, the Holder is not vested as to his or her entire Option,
the Shares covered by the unvested portion of the Option shall immediately cease to be issuable under the Option and shall
again become available for issuance under the Plan. The Option may be exercised by the executor or administrator of the Holder’s
estate or, if none, by the person(s) entitled to exercise the Option under the Holder’s will or the laws of descent or distribution.
If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such
Option shall again become available for issuance under the Plan.

 

(k) Extension
of Exercisability. The Administrator may provide in a Holder’s Option Agreement that if the exercise of the Option following
the termination of the Holder’s status as a Service Provider or the Holder’s tender of already-owned Shares or the
sale of Shares pursuant to a “cashless exercise” in connection with such exercise would violate applicable federal
or state securities laws, then the Option shall not terminate until the earlier to occur of (i) the expiration of the term of
the Option or (ii) the expiration of a period of three (3) months immediately following the first date on which the exercise of
the Option (or such tender of already-owned Shares or sale of Shares pursuant to a “cashless exercise”) would not
be in violation of such securities laws, as determined by the Administrator.

 

(l)
Early Exercisability. The Administrator may provide in the terms of a Holder’s Option Agreement that the Holder may,
at any time before the Holder’s status as a Service Provider terminates, exercise the Option in whole or in part prior to
the full vesting of the Option; provided, however, that subject to Section 22 hereof, Shares acquired upon exercise of
an Option which has not fully vested may be subject to any forfeiture, transfer or other restrictions as the Administrator may
determine in its sole discretion.

 

9. Stock
Appreciation Rights.The Administrator is authorized to grant Stock Appreciation Rights to eligible individuals on the
following terms and conditions:

 

(a) Grant
of Stock Appreciation Rights. The Administrator may, in its sole discretion, at any time and from time to time grant Stock
Appreciation Rights to any Service Provider selected by the Administrator. A Stock Appreciation Right will be evidenced by a Stock
Appreciation Rights Agreement containing such terms and conditions, not inconsistent with the Plan, as the Administrator shall
approve or determine.

 

    - 12 -

     

    

 

(b) Settlement
of Stock Appreciation Rights. Upon exercise of a Stock Appreciation Right, the Holder (or if applicable his or her beneficiary)
will receive an amount equal to the product of:

 

(i) the
excess of (A) the Fair Market Value of a Share on the date the Stock Appreciation Right is exercised over (B) the per share exercise
price of the Stock Appreciation Right, which exercise price shall not be less than the Fair Market Value of a Share on the date
the Stock Appreciation Right was granted; multiplied by

 

(ii) the
notional number of Shares with respect to which the Stock Appreciation Right is being exercised.

 

(c) Vesting.
A Stock Appreciation Right shall vest and become exercisable at such times and under such conditions as determined by the Administrator
and set forth in the Stock Appreciation Rights Agreement.

 

(d) Exercisability.
If a Holder’s employment with the Company is terminated for any reason, such Holder may, to the extent that the Stock Appreciation
Right is vested as of the date of termination, exercise his or her Stock Appreciation Right within such period of time following
termination as is specified in the Stock Appreciation Rights Agreement. To the extent that the Stock Appreciation Right is not
vested as of the date of termination, the Stock Appreciation Right shall thereupon terminate and shall not thereafter vest or
become exercisable. To the extent that the Holder does not exercise his or her Stock Appreciation Right within the time period
specified in the Stock Appreciation Rights Agreement, the Stock Appreciation Right shall terminate and cease to be exercisable.
Unless otherwise provided in a Stock Appreciation Rights Agreement, if a Holder’s employment is terminated for Cause, the
Holder shall forfeit all Stock Appreciation Rights outstanding as of the date of such termination of employment, whether or not
then vested, and such Stock Appreciation Rights shall thereupon become unexercisable.

 

(e) Term.
The term of each Stock Appreciation Right shall be determined by the Administrator and set forth in the Stock Appreciation Rights
Agreement; provided, that the term shall be no more than ten (10) years from the Grant Date.

 

(f)
Notice of Exercise. To the extent a Stock Appreciation Right is vested and exercisable pursuant to its terms, a Holder
(or if applicable his or her beneficiary), may exercise all or any part of the Stock Appreciation Right by delivery of an exercise
notice in a form prescribed by the Administrator and in such manner as may otherwise be set forth in the Stock Appreciation Rights
Agreement.

 

(g)
Payment. Payment of the amount determined under subsection (b) above shall be in cash, Class A Common Stock (based on its
Fair Market Value as of the date the Stock Appreciation Right is exercised) or a combination of both, as determined by the Administrator
and set forth in the Stock Appreciation Rights Agreement. To the extent any such payment is effected in Class A Common Stock,
it shall be made subject to satisfaction of all provisions of Section 8(f) above pertaining to Options.

 

    - 13 -

     

    

 

10. Stock
Purchase Rights. The Administrator is authorized to grant Stock Purchase Rights to eligible individuals on the following terms
and conditions:

 

(a) Rights
to Purchase. Stock Purchase Rights may be issued either alone, in addition to, or in tandem with Options granted under the
Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will offer Stock Purchase Rights
under the Plan, it shall advise the offeree in writing of the terms, conditions and restrictions related to the offer, including
the number of Shares that such person shall be entitled to purchase, the price to be paid, and the time within which such person
must accept such offer. The Company may present the offer to the offeree in the form of a Restricted Stock Purchase Agreement,
and the offer shall be deemed accepted upon execution of such agreement by the offeree.

 

(b) Repurchase
Right. Unless the Administrator determines otherwise, the Restricted Stock Purchase Agreement shall provide for the forfeiture
of the Shares acquired upon exercise of a Stock Purchase Right or shall grant the Company the right to repurchase Shares acquired
upon exercise of a Stock Purchase Right, in each case upon the termination of the purchaser’s status as a Service Provider
for any reason. Subject to Section 22 hereof, the purchase price for Shares repurchased by the Company pursuant to such repurchase
right and the rate at which such repurchase right shall lapse shall be determined by the Administrator in its sole discretion,
and shall be set forth in the Restricted Stock Purchase Agreement.

 

(c) Other
Provisions. The Restricted Stock Purchase Agreement shall contain such other terms, provisions and conditions not inconsistent
with the Plan as may be determined by the Administrator in its sole discretion.

 

(d) Rights
as a Shareholder. Once the Stock Purchase Right is exercised, the purchaser shall have rights equivalent to those of a shareholder
and shall be a shareholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company.
No adjustment shall be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right
is exercised, except as provided in Section 15 hereof.

 

11. Restricted
Stock Award and Restricted Stock Units. The Administrator is authorized to grant Restricted Stock and/or Restricted Stock
Units to eligible individuals on the following terms and conditions:.

 

(a) Grant
of Restricted Stock Award and/or Restricted Stock Unit Award. Each Restricted Stock Award or Restricted Stock Unit Award shall
be evidenced by a written Award Agreement, which shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. The terms and conditions of a Restricted Stock Award or Restricted Stock Unit Award may change from time
to time, and the terms and conditions of separate Restricted Stock Awards or Restricted Stock Unit Awards need not be identical.

 

(b) General
Terms and Conditions. Each Restricted Stock Award and each Restricted Stock Unit Award shall contain provisions regarding
(i) the number of Shares subject to such Award or a formula for determining such, (ii) the purchase price of the Shares, if any,
and the means of payment for the Shares, (iii) the performance criteria, if any, and level of achievement versus these criteria
that shall determine the number of Shares granted, issued, retainable and/or vested, (iv) such terms and conditions on the grant,
issuance, vesting and/or forfeiture of the Shares as may be determined from time to time by the Board, (v) restrictions on the
transferability of the Shares and (vi) such further terms and conditions as may be determined from time to time by the Board,
in each case not inconsistent with this Plan.

 

    - 14 -

     

    

 

(c) Purchase
Price. Subject to the requirements of Applicable Law, the Board shall determine the price, if any, at which Shares of Restricted
Stock or Restricted Stock Units shall be sold or awarded to a Service Provider, which may vary from time to time and among Service
Providers and which may be below the market value of such Shares at the date of grant or issuance.

 

(d) Payment
of Purchase Price. Payment of the purchase price (if any) for the number of Shares being purchased pursuant to any Restricted
Stock Award or Restricted Stock Unit Award shall be made (i) in cash, by check or in cash equivalent, (ii) by such other consideration
as may be approved by the Board from time to time to the extent permitted by applicable law, or (iii) by any combination thereof.

 

(e) Share
Vesting. The grant, issuance, retention and/or vesting of Shares under a Restricted Stock Award or Restricted Stock Unit Award
shall be at such time and in such installments as determined by the Board or under criteria established by the Board. The Board
shall have the right to make the timing of the grant and/or the issuance, ability to retain and/or vesting of Shares under a Restricted
Stock Award or a Restricted Stock Unit Award subject to continued employment, passage of time and/or such performance criteria
and level of achievement versus these criteria as deemed appropriate by the Board, which criteria may be based on financial performance
and/or personal performance evaluations. Notwithstanding anything to the contrary herein, the performance criteria for any Restricted
Stock Award or Restricted Stock Unit Award that is intended to satisfy the requirements for “performance-based compensation”
under Section 162(m) of the Code shall be a measure based on one or more performance criteria selected by the Board and specified
at the time the Award is granted.

 

(f) Termination
of Holder as a Service Provider. Except as otherwise provided in the applicable Award Agreement; the portion of the Award
that has not vested will be forfeited upon the Holder’s termination as a Service Provider.

 

(g)Suspension
or Termination of Restricted Stock Award and Restricted Stock Units. If at any time the Board, including any Committee or
administrator authorized pursuant to Section 4 (any such person, an “Authorized Officer”), reasonably believes
that a Holder, other than an Independent Director, has committed an act of misconduct as described in this Section, the
Authorized Officer may suspend the vesting of Shares under the Participant’s Restricted Stock or Restricted Stock Unit
Awards pending a determination of whether an act of misconduct has been committed. If the Committee or an Authorized Officer
determines a Participant, other than an Independent Director, has committed an act of embezzlement, fraud, dishonesty,
nonpayment of any obligation owed to the Company, breach of fiduciary duty or deliberate disregard of Company rules resulting
in loss, damage or injury to the Company, or if a Participant makes an unauthorized disclosure of any Company trade secret or
confidential information, engages in any conduct constituting unfair competition, induces any customer to breach a contract
with the Company or induces any principal for whom the Company acts as agent to terminate such agency relationship, the
Participant’s Restricted Stock or Restricted Stock Unit Agreement shall be forfeited and cancelled. In addition, for
any Participant who is designated as an “executive officer” by the Board of Directors, if the Committee
determines that the Participant engaged in an act of embezzlement, fraud or breach of fiduciary duty during the
Participant’s employment that contributed to an obligation to restate the Company’s financial statements
(“Contributing Misconduct”), the Participant shall be required to repay to the Company, in cash and upon demand,
the Restricted Stock Proceeds (as defined below) resulting from any sale or other disposition (including to the Company) of
Shares issued or issuable upon the vesting of Restricted Stock or a Restricted Stock Unit if the sale or disposition was
effected during the twelve-month period following the first public issuance or filing with the SEC of the financial
statements required to be restated. The term “Restricted Stock Proceeds” means, with respect to any sale or other
disposition (including to the Company) of Shares issued or issuable upon vesting of Restricted Stock or a Restricted Stock
Unit, an amount determined appropriate by the Committee to reflect the effect of the restatement on the Company’s stock
price, up to the amount equal to the market value per Share at the time of such sale or other disposition multiplied by the
number of Shares or units sold or disposed of. The return of Restricted Stock Proceeds is in addition to and separate from
any other relief available to the Company due to the executive officer’s Contributing Misconduct. Any determination by
the Committee or an Authorized Officer with respect to the foregoing shall be final, conclusive and binding on all interested
parties. For any Participant who is an executive officer, the determination of the Committee or of the Authorized Officer
shall be subject to the approval of the Board of Directors.

 

    - 15 -

     

    

 

(h) Repurchase
Right. Unless the Administrator determines otherwise, the applicable Award Agreement shall provide for the forfeiture of the
Shares acquired under a Restricted Stock Award or a Restricted Stock Unit Award or shall grant the Company the right to repurchase
Shares acquired under a Restricted Stock Award or a Restricted Stock Unit Award, in each case upon the termination of the Holder’s
status as a Service Provider for any reason. Subject to Section 22 hereof, the purchase price for Shares repurchased by the Company
pursuant to such repurchase right and the rate at which such repurchase right shall lapse shall be determined by the Administrator
in its sole discretion, and shall be set forth in the applicable Award Agreement.

 

(i) Terms
Specific to a Restricted Stock Award. Except as provided in this Section and any Award Agreement, during any period in which
Shares acquired pursuant to a Restricted Stock Award remain subject to vesting conditions, the Holder shall have all of the rights
of a stockholder of the Company holding Shares, including the right to vote such Shares and to receive all dividends and other
distributions paid with respect to such Shares. However, in the event of a dividend or distribution paid in Shares or other property
or any other adjustment made pursuant to Section 15, any and all new, substituted or additional securities or other property (other
than normal cash dividends) to which the Holder is entitled by reason of the Holder’s Restricted Stock Award shall be immediately
subject to the same vesting conditions as the Shares subject to the Restricted Stock Award with respect to which such dividends
or distributions were paid or adjustments were made.

 

    - 16 -

     

    

 

(j)
Terms Specific to a Restricted Stock Unit Award. Except as provided in this Section and any Award Agreement, Restricted
Stock Units represent an unfunded and unsecured obligation of the Company and do not confer any of the rights of a stockholder
until Shares are issued thereunder. Settlement of Restricted Stock Units upon satisfaction of the vesting conditions shall be
made in Shares or otherwise as determined by the Board. Dividends or dividend equivalent rights shall be payable in cash or in
additional shares with respect to Restricted Stock Units only to the extent specifically provided for by the Board. Until a Restricted
Stock Unit is settled, the number of Shares represented by a Restricted Stock Unit shall be subject to adjustment pursuant to
Section 15. Any Restricted Stock Units that are settled after the Holder’s death shall be distributed to the Holder’s
designated beneficiary(ies) or, if none was designated, the Holder’s estate.

 

12.
Performance Awards. The Administrator, in its discretion, may determine that any Award granted hereunder shall be a Performance
Award.

 

(a) Qualifying
Performance Criteria For purposes of this Plan, the term “Qualifying Performance Criteria” shall mean any one or more
of the following performance criteria, either individually, alternatively or in any combination, applied to either the Company
as a whole or to a business unit or Subsidiary, either individually, alternatively or in any combination, and measured either
annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous years’
results or to a designated comparison group, in each case as specified by the Administrator in the Award: (i) cash flow, (ii)
earnings per share, (iii) earnings before interest, taxes and amortization, (iv) return on equity, (v) total stockholder return,
(vi) share price performance, (vii) return on capital, (viii) return on assets or net assets, (ix) revenue, (x) income or net
income, (xi) operating income or net operating income, (xii) operating profit or net operating profit, (xiii) operating margin
or profit margin, (xiv) return on operating revenue, (xv) return on invested capital, (xvi) market segment share, (xvii) product
release schedules, (xviii) new product innovation, (xix) product cost reduction through advanced technology, (xx) brand recognition/acceptance,
(xxi) product ship targets, or (xxii) customer satisfaction. The Committee may appropriately adjust any evaluation of performance
under a Qualifying Performance Criteria to exclude any of the following events that occurs during a performance period: (A) asset
write-downs, (B) litigation or claim judgments or settlements, (C) the effect of changes in or provisions under tax law, accounting
principles or other such laws or provisions affecting reported results, (D) accruals for reorganization and restructuring programs
and (E) any extraordinary non-recurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s
discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to stockholders
for the applicable year. Notwithstanding satisfaction of any completion of any Qualifying Performance Criteria, to the extent
specified at the time of grant of an Award, the number of Shares, Option, a Stock Appreciation Right, a Stock Purchase Right,
a Restricted Stock Award, a Restricted Stock Unit or other benefits granted, issued, retainable and/or vested under an Award on
account of satisfaction of such Qualifying Performance Criteria may be reduced by the Administrator on the basis of such further
considerations as the Administrator in its sole discretion shall determine.

 

    - 17 -

     

    

 

13. Non-Transferability
of Awards. Except as set forth in this Section 13, Awards may not be sold, pledged, assigned, hypothecated, transferred, or
disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime
of the Holder, only by the Holder. The Administrator, in its sole discretion, may determine to permit a Holder to transfer an
Award other than an Incentive Stock Option to any one or more Permitted Transferees, subject to the following terms and conditions:
(i) an Award transferred to a Permitted Transferee shall not be assignable or transferable by the Permitted Transferee other than
by will or the laws of descent and distribution; (ii) an Award transferred to a Permitted Transferee shall continue to be subject
to all the terms and conditions of the Award as applicable to the original Holder (other than the ability to further transfer
the Award); and (iii) the Holder and the Permitted Transferee shall execute any and all documents requested by the Administrator,
including, without limitation documents to (A) confirm the status of the transferee as a Permitted Transferee, (B) satisfy any
requirements for an exemption for the transfer under applicable federal, state and foreign securities laws and (C) evidence the
transfer. For purposes of the Plan, “Permitted Transferee” shall mean, with respect to a Holder, any “family
member” of the Holder, as defined under the instructions to use of the Form S-8 Registration Statement under the Securities
Act, after taking into account any state, federal, local or foreign tax and securities laws applicable to transferable Awards.

 

14. No
Rights as Stockholders. Holders shall not be, nor have any of the rights or privileges of, stockholders of the Company in
respect of any shares covered by any Award unless and until certificates representing such shares have been issued by the Company
to such Holders or recorded in book entry form.

 

 15. Adjustments upon Changes in Capitalization, Merger or Asset Sale.

 

(a) In
the event that any dividend or other distribution (whether in the form of cash, Class A Common Stock, other securities, or other
property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially
all of the assets of the Company, or exchange of Class A Common Stock or other securities of the Company, issuance of warrants
or other rights to purchase Class A Common Stock or other securities of the Company, or other similar corporate transaction or
event, in the Administrator’s sole discretion, affects the Class A Common Stock such that an adjustment is appropriate in
order to prevent dilution or enlargement of the benefits or potential benefits intended by the Company to be made available under
the Plan or with respect to any Award, then the Administrator shall adjust any or all of:

 

(i) the
number and kind of shares of Class A Common Stock (or other securities or property) with respect to which Awards may be granted
or awarded (including, but not limited to, adjustments of the limitations in Section 3 hereof on the maximum number and kind of
shares which may be issued and adjustments of the maximum number of Shares with respect to which Awards may be issued to any Holder
in any calendar year pursuant to Section 6(c) hereof);

 

(ii) the
number and kind of shares of Class A Common Stock (or other securities or property) subject to outstanding Awards;

 

 (iii) the grant or exercise price with respect to any Award; and

 

    - 18 -

     

    

 

(iv) the
terms and conditions of any outstanding Awards (including, without limitation, any applicable performance targets or criteria
with respect thereto).

 

(b) In
the event of any transaction or event described in subsection (a) above, the Administrator, in its sole discretion, and on such
terms and conditions as it deems appropriate, either by the terms of the Award or by action taken prior to the occurrence of such
transaction or event and either automatically or upon the Holder’s request, is hereby authorized to take any one or more
of the following actions whenever the Administrator determines that such action is appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended by the Company to be made available under the Plan or with respect
to any Award granted or issued under the Plan or to facilitate such transaction or event:

 

(i)
To provide for either (A) the purchase of any such Award for an amount of cash equal to the amount that could have been
obtained upon the exercise of such Award or realization of the Holder’s rights had such Award been currently
exercisable or payable or fully vested (and, for the avoidance of doubt, if as of the date of the occurrence of the
transaction or event described in this Section, the Administrator determines in good faith that no amount would have been
attained upon the exercise of such Award or realization of the Holder’s rights, then such Award may be terminated by
the Company without payment), or (B) the replacement of such Award with other rights or property selected by the
Administrator in its sole discretion;

 

(ii) To
provide that such Award shall be exercisable as to all shares covered thereby and that some or all shares of such Restricted Stock
shall cease to be subject to restrictions, notwithstanding anything to the contrary in the Plan or the provisions of such Option,
Stock Purchase Right, or Restricted Stock Award;

 

(iii) To
provide that such Award be assumed by the successor or survivor corporation or entity, or a parent or subsidiary thereof, or shall
be substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation or entity,
or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices;

 

(iv) To
make adjustments in the number and type of shares of Class A Common Stock (or other securities or property) subject to outstanding
Awards, and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding
Awards or Awards which may be granted in the future; and

 

(v) To
provide that immediately upon the consummation of such event, such Award shall not be exercisable and shall terminate; provided,
that for a specified period of time prior to such event, such Award shall be exercisable as to all Shares covered thereby, and
the restrictions imposed under an applicable Option Agreement, Stock Appreciation Rights Agreement, Restricted Stock Award Agreement,
or Restricted Stock Purchase Agreement upon some or all Shares may be terminated and, in the case of Restricted Stock, some or
all shares of such Restricted Stock may cease to be subject to repurchase, notwithstanding anything to the contrary in the Plan
or the provisions of such Award.

 

    - 19 -

     

    

 

(c) Subject
to Section 3 hereof, the Administrator may, in its sole discretion, include such further provisions and limitations in any Award
as it may deem equitable and in the best interests of the Company.

 

(d) If
the Company undergoes an Acquisition, then any surviving corporation or entity or acquiring corporation or entity, or affiliate
of such corporation or entity, may assume any Awards outstanding under the Plan or may substitute similar stock awards (including
an award to acquire the same consideration paid to the stockholders in the transaction described in this subsection (d)) for those
outstanding under the Plan.

 

(e) The
existence of the Plan, any Option Agreement, Stock Appreciation Rights Agreement, Restricted Stock Purchase Agreement, Restricted
Stock Award Agreement, Restricted Stock Unit Agreement and the Awards granted hereunder shall not affect or restrict in any way
the right or power of the Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization
or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue
of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose
rights are superior to or affect the Class A Common Stock or the rights thereof or which are convertible into or exchangeable
for Class A Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its
assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

 

16. Time
of Granting Awards. The date of grant of an Award shall, for all purposes, be the date on which the Administrator makes the
determination granting such Award, or such other date as is determined by the Administrator. Notice of the determination shall
be given to each Service Provider to whom an Award is so granted within a reasonable time after the date of such grant.

 

 17. Amendment and Termination of the Plan.

 

(a) Amendment
and Termination. The Board may at any time wholly or partially amend, alter, suspend or terminate the Plan. However, without
approval of the Company’s stockholders holding a majority of the voting power of the Company given within twelve (12) months
before or after the action by the Board, no action of the Board may, except as provided in Section 15 hereof, (i) increase the
limits imposed in Section 3 hereof on the maximum number of Shares which may be issued under the Plan, (ii) extend the term of
the Plan under Section 17 hereof, (iii) reduce the price per share of any outstanding Option or Stock Appreciation Right granted
under the Plan, or (iv) cancel any Option or Stock Appreciation Right in exchange for cash or another Award when the Option or
Stock Appreciation Right price per share exceeds the Fair Market Value of the underlying Shares.

 

(b) Stockholder
Approval. The Board shall obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply
with Applicable Laws.

 

(c) Effect
of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the rights of any
Holder, unless mutually agreed otherwise between the Holder and the Administrator, which agreement must be in writing and signed
by the Holder and the Company. Termination of the Plan shall not affect the Administrator’s ability to exercise the powers
granted to it hereunder with respect to Awards granted or awarded under the Plan prior to the date of such termination.

 

    - 20 -

     

    

 

18. Stockholder
Approval. The Fourth Amended and Restated Plan shall be submitted for the approval of the Company’s stockholders within
twelve (12) months after the date of the Board’s adoption thereof.

 

19. Inability
to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

 

20. Reservation
of Shares. The Company, during the term of this Plan, shall at all times reserve and keep available such number of Shares
as shall be sufficient to satisfy the requirements of the Plan.

 

21. Information
to Holders and Purchasers. Prior to the Public Trading Date and to the extent required by applicable securities laws, the
Company shall provide to each Holder and to each individual who acquires Shares pursuant to the Plan, not less frequently than
annually during the period such Holder or purchaser has one or more Awards outstanding, and, in the case of an individual who
acquires Shares pursuant to the Plan, during the period such individual owns such Shares, copies of annual financial statements.
Notwithstanding the preceding sentence, the Company shall not be required to provide such statements to key persons whose duties
in connection with the Company assure their access to equivalent information.

 

22. Repurchase
Provisions. The Administrator in its sole discretion may provide that the Company may repurchase Shares acquired upon exercise
of an Award upon the occurrence of certain specified events, including, without limitation, a Holder’s termination as a
Service Provider, divorce, bankruptcy or insolvency; provided, however, that any such repurchase right shall be set forth
in the applicable Award Agreement or in such other agreement as the Administrator may determine and, provided further, that to
the extent required to comply with applicable securities laws, any such repurchase right set forth in an Award granted prior to
the Public Trading Date to a person who is not an Officer, Director or Consultant shall be upon the following terms: (i) if the
repurchase option gives the Company the right to repurchase the shares upon termination as a Service Provider at not less than
the Fair Market Value of the shares to be purchased on the date of termination of status as a Service Provider, then (A) the right
to repurchase shall be exercised for cash or cancellation of purchase money indebtedness for the shares within six months after
termination of status as a Service Provider (or in the case of shares issued upon exercise of Awards after such date of termination,
within six months after the date of the exercise) and (B) the right terminates when the shares become publicly traded; and (ii)
if the repurchase option gives the Company the right to repurchase the Shares upon termination as a Service Provider at the original
purchase price of such Shares, then (A) the right to repurchase at the original purchase price shall lapse at the rate of at least
twenty percent (20%) of the shares per year over five (5) years from the date the Award is granted (without respect to the date
the Award was exercised or became exercisable) and (B) the right to repurchase shall be exercised for cash or cancellation of
purchase money indebtedness for the shares within six months after termination of status as a Service Provider (or, in the case
of shares issued upon exercise of Awards, after such date of termination, within six months after the date of the exercise).

 

    - 21 -

     

    

 

23. Participant
Representations. The Company may require a Plan participant, as a condition to the grant or exercise of, or acquisition
of stock under, any Award, (i) to give written representations satisfactory to the Company as to the participant’s
knowledge and experience in financial and business matters, and/or to employ a purchaser representative reasonably
satisfactory to the Company who is knowledgeable and experienced in financial and business matters, and to give written
representations satisfactory to the Company that he or she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Award; (ii) to give written representations satisfactory to the
Company stating that the participant is acquiring the stock subject to the Award for the participant’s own account and
not with any present intention of selling or otherwise distributing the stock; and (iii) to give such other written
representations as are deemed necessary or appropriate by the Company and its counsel. The foregoing requirements, and any
representations given pursuant to such requirements, shall be inoperative if (A) the issuance of the shares upon the exercise
or acquisition of stock under the applicable Award has been registered under a then currently effective registration
statement under the Securities Act or (B) as to any particular requirement, a determination is made by counsel for the
Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company
may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems
necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends
restricting the transfer of the stock.

 

24.Code
Section 409A. To the extent that the Administrator determines that any Award granted under the Plan is subject to Section
409A of the Code, the applicable Award Agreement evidencing such Award shall incorporate the terms and conditions required by
Section 409A of the Code.To the extent applicable, the Plan and the applicable Award Agreement shall be interpreted in accordance
with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including
without limitation any such regulations or other guidance that may be issued after the Effective Date. Notwithstanding any provision
of the Plan to the contrary, in the event that following the Effective Date the Administrator determines that any Award may be
subject to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance
as may be issued after the Effective Date), the Administrator may adopt such amendments to the Plan and the applicable Award Agreement
or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other
actions, that the Administrator determines are necessary or appropriate to (a) exempt the Award from Section 409A of the Code
and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements
of Section 409A of the Code and related Department of Treasury guidance and thereby avoid the application of any penalty taxes
under such Section.

 

25. Governing
Law. The validity and enforceability of this Plan shall be governed by and construed in accordance with the laws of the State
of California without regard to otherwise governing principles of conflicts of law.

 

    - 22 -

     

    

 

26. Restrictions
on Shares. Shares issued upon the exercise of an Award shall be subject to such terms and conditions as the Administrator
shall determine in its sole discretion, including, without limitation, restrictions on the transferability of Shares, the right
of the Company to repurchase Shares, the right of the Company to require that Shares be transferred in the event of certain transactions,
a right of first refusal in favor of the Company with respect to permitted transfers of Shares, tag-along rights and bring-along
rights. Such terms and conditions may, in the Administrator’s sole discretion, be contained in the applicable Award Agreement,
exercise notice or in such other agreement as the Administrator shall determine, in each case in a form determined by the Administrator
in its sole discretion. The issuance of such Shares shall be conditioned on the Holder’s consent to such terms and conditions
or the Holder’s entering into such agreement or agreements.

 

27. Lock-Up
Agreement. Each Holder shall agree upon receipt of any Award that if so requested by the Company or any representative of
a lead underwriter of the Company’s securities (the “Managing Underwriter”) in connection with (a) any registration
of the offering of any securities of the Company under the Securities Act or any applicable state laws, and/or (b) any offering
of securities exempt from registration under Rule 144A of the Securities Act by the Company, such Holder shall not sell or otherwise
transfer any Shares or other securities of the Company during the one-year period (or such longer period as may be requested by
the Managing Underwriter or the Company) following (i) the effective date of a registration statement filed by the Company under
the Securities Act, or (ii) the date of consummation of such offering pursuant to Rule 144A. The Company may impose stop-transfer
instructions with respect to securities subject to the foregoing restrictions until the end of such 180-day period.

 

28. Book
Entry Procedures. Notwithstanding any other provision of the Plan, to the extent any payment of an Award is effected in Shares,
unless otherwise determined by the Administrator or required by any applicable law, rule or regulation, the Company shall not
deliver to any Holder certificates evidencing such Shares and instead such Shares shall be recorded in the books of the Company
(or, as applicable, its transfer agent or stock plan administrator).

 

29. Withholding.
The Company or any Parent or Subsidiary of the Company shall have the authority and the right to deduct or withhold, or require
a Plan participant to remit to the Company, an amount sufficient to satisfy federal, state, local and foreign taxes (including
the participant’s employment tax obligations) required by law to be withheld with respect to any taxable event concerning
a participant arising as a result of this Plan. The Administrator may in its discretion and in satisfaction of the foregoing requirement
allow a participant to elect to have the Company withhold Shares otherwise issuable under an Award (or allow the return of Shares)
having a Fair Market Value equal to the sums required to be withheld. Notwithstanding any other provision of the Plan, the number
of Shares which may be withheld with respect to the issuance, vesting, exercise or payment of any Award (or which may be repurchased
from the participant of such Award within six months (or such other period as may be required by the Administrator in order to
avoid adverse accounting consequences to the Company) after such Shares were acquired by the participant from the Company) in
order to satisfy the participant’s federal, state, local and foreign income and payroll tax liabilities with respect to
the issuance, vesting, exercise or payment of the Award shall be limited to the number of Shares which have a Fair Market Value
on the date of withholding or repurchase equal to the aggregate amount of such liabilities based on the minimum statutory withholding
rates for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable
income.

 

    - 23 -

     

    

 

30. Securities
Laws. Each Award Agreement will be subject to the condition that the applicable Award may not be exercised if the Administrator
determines that the exercise of such Award may violate the Securities Act or any other law or requirement of any governmental
authority. The Company will not be deemed by any reason of the granting of any Award to have any obligation to register the Award
or Shares underlying such Award under the Securities Act or other applicable law, or to maintain in effect any registration of
such Award or Shares which may be made at any time under the Securities Act or other applicable law. With respect to any Award
settled in Shares, if such Shares may in certain circumstances be exempt from registration pursuant to the Securities Act, the
Company may restrict the transfer of such Shares in such manner as it deems advisable to ensure the availability of any such exemption.

 

31. Limitations
Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan, the Plan, and any Award granted or awarded
to any Plan participant who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations
set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 under the
Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, the
Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such applicable exemptive
rule.

 

32. Severability.
If any provision of this Plan shall be held to be illegal, invalid or unenforceable under any applicable law, then such contravention
or invalidity shall not invalidate the entire Plan and the remainder of the provisions shall remain in full force and effect and
in no way shall be affected, impaired or invalidated. Such defective provision shall be deemed to be modified to the extent necessary
to render it legal, valid and enforceable, and if no such modification shall render it legal, valid and enforceable, then this
Plan shall be construed as if not containing the provision held to be invalid.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    - 24 -

     

    

 

I
hereby certify that the Plan was duly adopted by the Board of Directors of Newegg Inc. on September 18, 2015.

 

Executed
at City of Industry, California on this 7th day of October, 2015.

 

	 	/s/
    Matt Strathman
	 	Name:	Matt
    Strathman
	 	Title:	General
    Counsel and Assistant Secretary

 

*   
*    *

 

I
hereby certify that the Plan was approved by the stockholders of Newegg Inc. on September 18, 2015.

 

Executed
at City of Industry, California on this 7th day of October, 2015.

 

	 	/s/
    Matt Strathman
	 	Name:	Matt
    Strathman
	 	Title:	General
    Counsel and Assistant Secretary

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