Document:

Document

Exhibit 10.3
THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT
THIS THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this "Amendment"), dated as of April 28, 2021, is by and among INSPERITY, INC., a Delaware corporation ("Borrower"), each of the financial institutions which is or may from time to time become a party to the Agreement (hereinafter defined) (collectively, "Lenders", and each a "Lender"), and ZIONS BANCORPORATION, N.A. dba AMEGY BANK, a national banking association, as agent for Lenders ("Agent").
RECITALS:
A.    Borrower, Agent and Lenders entered into that certain Amended and Restated Credit Agreement dated as of February 6, 2018, as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of September 13, 2019, and that certain Second Amendment to Amended and Restated Credit Agreement dated as of March 9, 2021 (as amended, the "Agreement").
B.    Pursuant to the Agreement, INSPERITY HOLDINGS, INC., a Delaware corporation, ADMINISTAFF COMPANIES, INC., a Delaware corporation, ADMINISTAFF PARTNERSHIPS HOLDING, INC., a Delaware corporation, ADMINISTAFF PARTNERSHIPS HOLDING II, INC., a Delaware corporation, ADMINISTAFF PARTNERSHIPS HOLDING III, INC., a Delaware corporation, INSPERITY BUSINESS SERVICES, L.P., a Delaware limited partnership, INSPERITY EMPLOYMENT SCREENING, L.L.C., a Delaware limited liability company, INSPERITY ENTERPRISES, INC., a Texas corporation, INSPERITY EXPENSE MANAGEMENT, INC., a California corporation, INSPERITY GP, INC., a Delaware corporation, INSPERITY INSURANCE SERVICES, L.L.C., a Delaware limited liability company, INSPERITY PAYROLL SERVICES, L.L.C., a Delaware limited liability company, INSPERITY PEO SERVICES, L.P., a Delaware limited partnership, INSPERITY RETIREMENT SERVICES, L.P., a Delaware limited partnership, INSPERITY SERVICES, L.P., a Delaware limited partnership, and INSPERITY SUPPORT SERVICES, L.P., a Delaware limited partnership (collectively, "Guarantors"), executed that certain Amended and Restated Guaranty Agreement dated as of February 6, 2018 (the "Guaranty Agreement"), pursuant to which Guarantors guaranteed to Agent, for the ratable benefit of Agent, Issuing Bank and Lenders, the payment and performance of the Guaranteed Indebtedness (as therein defined).
C.    Zions Bancorporation, N.A. dba Amegy Bank, Bank of America, N.A., Wells Fargo Bank, N.A., Truist Securities, Inc., and U.S. Bank National Association have been appointed Joint Lead Arrangers for the credit facilities described in the Agreement.  There are no longer any Co-Syndication Agents or Documentation Agents under the Agreement. 
D.    Borrower, Agent and Lenders now desire to amend the Agreement as herein set forth.

NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
ARTICLE I.
Definitions
Section 1.1    Definitions.  Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the meanings given to such terms in the Agreement, as amended hereby.
ARTICLE II.
Amendments
Section 2.1    Amendment to Certain Definitions.  (a) Effective as of the date hereof, the definition of each of the following terms contained in Section 1.1 of the Agreement is amended to read in its respective entirety as follows:
"EBITDA" means for Borrower and its Subsidiaries, on a consolidated basis for any period, the sum of (a) Operating Income for such period, plus (b) depreciation and amortization for such period, plus (c) non-cash stock based compensation expense for such period, plus (d) Interest Income for such period, plus (e) extraordinary or non-recurring expenses or charges, in an aggregate amount not to exceed $10,000,000.00 during any consecutive four (4) quarter period, plus (f) any non-cash write-off for impairment of long lived assets (including goodwill, intangible assets and fixed assets such as property, plant and equipment), or of deferred financing fees or investments in debt and equity securities during such period, plus (g) any non-cash impact of accounting changes or restatements during such period, plus (h) expenses associated with prepaid software-as-a-service (SaaS) product implementations during such period, provided such amount shall not exceed $4,000,000.00 during any consecutive four (4) quarter period, plus (i) transaction costs and synergies approved by Agent for such period; provided, however, that the amounts of each of the items set forth in the clauses above shall include, for the first twelve (12) months after any Acquisition, the actual historical amounts of such items for any Person which is acquired by Borrower or any Subsidiary in such Acquisition.
"Floating Thirty Day LIBOR Rate" means, as of any day, the rate per annum offered for Dollar deposits in an amount comparable to the principal amount of the outstanding Alternate Base Rate Loans for a period of thirty (30) days as of 11:00 a.m. City of London, England time two (2) Business Days prior to such day as calculated by Intercontinental Exchange Group (ICE) Benchmark 

Administration Limited ("ICE") (or the successor thereto) for such Dollar deposits.  Notwithstanding the foregoing, under no circumstances will the Floating Thirty Day LIBOR Rate be less than zero percent (0.0%) per annum (the "Floating Thirty Day LIBOR Interest Rate Floor"), provided, however, if Borrower has entered into a Rate Management Transaction with a Lender for purposes of hedging the interest rate floor on any Note, then no Floating Thirty Day LIBOR Interest Rate Floor shall be applicable for such Note during the period(s) such Rate Management Transaction is in effect.
"Interest Period" means, with respect to any LIBOR Loan, the period commencing on the date such Loan is made or Converted from Loans of another Type or, in the case of each subsequent, successive Interest Period applicable to a LIBOR Loan, each period commencing on the last day of the immediately preceding Interest Period with respect to such LIBOR Loan, and in each case ending on the numerically corresponding day in the calendar month that is one, three or six months thereafter, as Borrower may select as provided in Sections 2.5 or 3.7; provided, however, that (a) each Interest Period that would otherwise end on a day which is not a Business Day shall end on the next succeeding Business Day, unless such extension would cause the last day of such Interest Period to occur in the next following calendar month, in which case such Interest Period shall end on the next preceding Business Day, (b) any Interest Period which begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month in which it would have ended if there were a numerically corresponding day in such calendar month, (c) no Interest Period for any LIBOR Loan may extend beyond the Termination Date (and any proposed LIBOR Loan with an Interest Period which would extend beyond the Termination Date shall be an Alternate Base Rate Loan), (d) for all LIBOR Loans no more than eight (8) Interest Periods shall be in effect at the same time and (e) no Interest Period shall have a duration of less than thirty (30) days and, if the Interest Period for any LIBOR Loan would otherwise be a shorter period, such Loan shall be an Alternate Base Rate Loan.
"LIBOR Rate" means, for any LIBOR Loan, for any Interest Period therefor, (a) the rate per annum offered for Dollar deposits in an amount comparable to the outstanding principal amount of such LIBOR Loan for a period of time equal to such Interest Period as of 11:00 a.m. City of London, England time two (2) London Business Days prior to the first date of such Interest Period as calculated by ICE (or the successor thereto), divided by (b) one (1) minus the Reserve Requirement.  Notwithstanding the foregoing, under no circumstances will the LIBOR Rate be less than zero percent (0.0%) per annum (the "LIBOR Interest Rate Floor"), provided, however, if Borrower has entered into a Rate Management Transaction with a Lender for purposes of hedging the interest rate floor on any Note, then no LIBOR Interest Rate Floor shall be 

applicable for such Note during the period(s) such Rate Management Transaction is in effect.
(b)    Effective as of the date hereof, the definition of the term "Fall-Back Rate" shall be deleted from Section 1.1 of the Agreement.
Section 2.2    Addition of Section 3.11.    Effective as of the date hereof, Section 3.11 shall be added to the Agreement and shall read in its entirety as follows:
Section 3.11    LIBOR Replacement.  Notwithstanding anything to the contrary herein or in any other Loan Document (for the purpose of clarity, any agreement executed in connection with a Rate Management Transaction, including Rate Management Transaction Documents, shall be deemed not to be a "Loan Document" for purposes of this Section):
(a)    Replacing USD LIBOR. On March 5, 2021, the Financial Conduct Authority ("FCA"), the regulatory supervisor of USD LIBOR’s administrator ("IBA"), announced in a public statement the future cessation or loss of representativeness of overnight/Spot Next, 1-month, 3-month, 6-month and 12- month USD LIBOR tenor settings. On the earlier of (i) the date that all Available Tenors of USD LIBOR have either  permanently or indefinitely  ceased to be provided by IBA  or have been announced by the FCA pursuant to public statement or publication of information to be no longer representative and (ii) the Early Opt-in Effective Date, if the then-current Benchmark is USD LIBOR, the Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any setting of such Benchmark on such day and all subsequent settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document. If the Benchmark Replacement is Daily Simple SOFR, all interest payments will be payable on a quarterly basis on the last day of each March, June, September, and December.
(b)    Replacing Future Benchmarks. Upon the occurrence of a Benchmark Transition Event, the Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Majority Lenders. At any time that the administrator of the then-current Benchmark has permanently or indefinitely ceased to provide such Benchmark or such Benchmark has been announced by the regulatory supervisor for the administrator of such Benchmark pursuant to public statement or publication of information to be no longer representative of the underlying market and economic reality that such Benchmark is intended to measure and that 

representativeness will not be restored, Borrower may revoke any request for a borrowing of, conversion to or continuation of Loans to  be made, Converted or Continued that would bear interest by reference to such Benchmark until Borrower’s receipt of notice from Agent that a Benchmark Replacement has replaced such Benchmark, and, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to Alternate Base Rate Loans.  During the period referenced in the foregoing sentence, the component of Alternate Base Rate based upon the Benchmark will not be used in any determination of Alternate Base Rate.
(c)    Benchmark Replacement Conforming Changes. In connection with the implementation and administration of a Benchmark Replacement, Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement. 
(d)    Notices; Standards for Decisions and Determinations. Agent will promptly notify Borrower and Lenders of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Benchmark Replacement Conforming Changes. Any determination, decision or election that may be made by Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding  absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section. 
(e)    Unavailability of Tenor of Benchmark. At any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including USD LIBOR), then Agent may remove any tenor of such Benchmark that is unavailable or non-representative for Benchmark (including Benchmark Replacement) settings and (ii) Agent may reinstate any such previously removed tenor for Benchmark (including Benchmark Replacement) settings.
(f)    Certain Defined Terms. As used in this Section: 
"Available Tenor" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (i) if the then-current Benchmark is a term rate, any tenor for such Benchmark that is or may be used for determining the length of an Interest Period (provided that, for purposes of clarity and for this definition only, the Interest Period for the Floating Thirty Day LIBOR shall be deemed to be thirty (30) days) or (ii) otherwise, any payment period for interest 

calculated with reference to such Benchmark, as applicable, pursuant to this Agreement as of such date.
"Benchmark" means, initially, for purposes of calculating LIBOR Loans, the LIBOR Rate and, for purposes of calculating Alternate Base Rate Loans, Floating Thirty Day LIBOR Rate; provided that if a replacement of the Benchmark has occurred pursuant to this Section titled "Benchmark Replacement Setting", then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate. Any reference to "Benchmark" shall include, as applicable, the published component used in the calculation thereof.
"Benchmark Replacement" means, for any Available Tenor: 
(i)    for purposes of Section 3.11(a), the sum of: (A) Daily Simple SOFR and (B) the spread adjustment selected or recommended by the Relevant Governmental Body for the replacement of the tenor of USD LIBOR with a SOFR-based rate having approximately the same length as the interest payment period specified in clause (a) of this Section 3.11; and
(ii)    for purposes of Section 3.11(b), the sum of (A) the alternate benchmark rate and (B) an adjustment (which may be a positive or negative value or zero), in each case, that has been selected by Agent and Borrower as the replacement for such Available Tenor of such Benchmark giving due consideration to any evolving or then-prevailing market convention, including any applicable recommendations made by the Relevant Governmental Body, for Dollar-denominated syndicated credit facilities at such time;
provided that, if the Benchmark Replacement as determined pursuant to clause (i) or (ii) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.
"Benchmark Replacement Conforming Changes" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Alternate Base", the definition of "Business Day", the definition of "Interest Period", timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, Conversion or Continuation notices, the applicability and length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by Agent in  a manner substantially consistent with market practice (or, if Agent decides that adoption of any portion of such 

market practice is not administratively feasible or if Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents). 
"Benchmark Transition Event" means, with respect to any then-current Benchmark other than USD LIBOR, the occurrence of a public statement or publication of information by or on behalf of the administrator of the then-current Benchmark, the regulatory supervisor for the administrator of such Benchmark, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark, a resolution authority with jurisdiction over the administrator for such Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark, announcing or stating that (a) such administrator has ceased or will cease on a specified date to provide all Available Tenors of such Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark or (b) all Available Tenors of such Benchmark are or will no longer be representative of the underlying market and economic reality that such Benchmark is intended to measure and that representativeness will not be restored. 
"Daily Simple SOFR" means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by Agent in accordance with the conventions for this rate recommended by the Relevant Governmental Body for determining "Daily Simple SOFR" for syndicated business loans; provided, that if Agent decides that any such convention is not administratively feasible for Agent, then Agent may establish another convention in its reasonable discretion.
"Early Opt-in Effective Date" means, with respect to any Early Opt-in Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election is provided to Lenders, so long as Agent  has not received, by 5:00 p.m. (New  York City time) on  the fifth (5th) Business Day after the date notice of such Early Opt-in Election is provided to Lenders, written notice of objection to such Early Opt-in Election from Majority Lenders.
    "Early Opt-in Election" means the occurrence of:
(i)     a notification by Agent to (or the request by Borrower to Agent to notify) each of the other parties hereto that at least five currently outstanding Dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR, or any other rate 

based upon SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review), and
(ii)    the joint election by Agent and the Borrower to trigger a fallback from USD LIBOR and the provision by Agent of written notice of such election to the Lenders.
"Floor" means zero percent (0.0%) per annum.
"Relevant Governmental Body" means the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or any successor thereto. 
"SOFR" means a rate per annum equal to the secured overnight financing rate for such Business Day published by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate) on the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org (or any successor source for the secured overnight financing rate identified as such by the administrator of the secured overnight financing rate from time to time). 
"USD LIBOR" means the London interbank offered rate for Dollars. 
Section 2.3    Amendment to Section 8.3(a)(iv)(A).  Effective as of the date hereof, clause (a)(iv)(A) contained in Section 8.3 of the Agreement is amended to read in its entirety as follows:
    (A)    Borrower has an Interest Coverage Ratio of not less than 2.50 to 1.00 as of the last day of the fiscal quarter most recently ended for which financial statements are available, calculated on a pro forma basis assuming that such Acquisition and all other Acquisitions made since the last day of the fiscal quarter most recently ended for which financial statements are available had been made on the first day of the four consecutive fiscal quarter period then ended (but without any adjustment for projected cost savings or other synergies (except with the consent of Agent)), 
Section 2.4    Amendment to Section 8.7(k)(iii).  Effective as of the date hereof, clause (k)(iii) contained in Section 8.7 of the Agreement is amended to read in its entirety as follows:
    (iii)    Borrower has an Interest Coverage Ratio of not less than 2.50 to 1.00 as of the last day of the fiscal quarter most recently ended for which financial statements are available, 

Section 2.5    Amendment to Section 9.1.  Effective as of the date hereof, Section 9.1 of the Agreement is amended to read in its entirety as follows:
Section 9.1    Interest Coverage Ratio
.  Borrower will at all times maintain an Interest Coverage Ratio of not less than 2.50 to 1.00.  The Interest Coverage Ratio will be calculated and tested quarterly as of the last day of each fiscal quarter of Borrower, commencing with the fiscal quarter ending June 30, 2021, for the period of four consecutive fiscal quarters ended as of such date (a “rolling or trailing four quarter” basis).
Section 2.6    Amendment to Section 12.7.  Effective as of the date hereof, Section 12.7 of the Agreement is amended to read in its entirety as follows:
    Section 12.7.    Amendments
.  No amendment, modification or waiver of, or consent with respect to, any provision of this Agreement or any Note shall in any event be effective unless the same shall be in writing and signed and delivered by the Majority Lenders and Borrower, and then any such amendment, modification, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given, provided that neither Borrower nor any Lender consent shall be required for any amendment done in accordance with Section 3.11 (except as expressly provided for in such Section).  No amendment, modification, waiver or consent shall change the Commitment of any Lender without the consent of such Lender.  No amendment, modification, waiver or consent shall (i) increase the Combined Commitments (other than pursuant to Section 2.8), (ii) extend the date for payment of any principal of or interest on the Revolving Advances or any fees payable hereunder, (iii) extend any Lender’s Commitment, (iv) reduce the principal amount of any Revolving Advance, (v) release any guaranty (except as permitted in Section 8.4(b)), or (vi) reduce the aggregate percentage of holders of the Combined Commitments required to effect an amendment, modification, waiver or consent without, in each case, the consent of all Lenders.  If any amendment, modification, waiver or consent relates only to the Revolving Advances, the applicable percentage for consent shall be calculated only from the holders of the Combined Commitments, provided that if either the Combined Commitments are fully funded or the Termination Date has occurred, then such applicable percentage for consent shall be calculated from the holders of the outstanding Revolving Advances and the Letter of Credit Liabilities.  No amendment, modification, waiver or consent shall reduce any principal of or interest on the Revolving Advances or any fees payable hereunder without the consent of each Lender affected thereby, provided that no Lender consent shall be required for any amendment done in accordance with Section 3.11 (except as expressly provided for in such Section).  No provision of Article XI or any other provision of this Agreement affecting Agent in its capacity as such shall be amended, modified or waived without the consent of Agent.  No provision of this 

Agreement relating to the rights or duties of Issuing Bank in its capacity as such shall be amended, modified or waived without the consent of Issuing Bank.  No provision of this Agreement relating to the rights or duties of the Swing Lender in its capacity as such shall be amended, modified or waived without the consent of the Swing Lender. 

Section 2.7    Amendment to Schedules.  Effective as of the date hereof, (a) Exhibit "C" (Form of Revolving Advance Request Form) to the Agreement is amended to conform in its entirety to Annex "A" to this Amendment, and (b) Exhibit "D" (No Default Certificate) to the Agreement is amended to conform in its entirety to Annex "B" to this Amendment.
ARTICLE III.
Condition Precedent
Section 3.1    Conditions.  The effectiveness of this Amendment is subject to the receipt by Agent of the following in form and substance satisfactory to Agent:
(a)    Certificates.
(i)    A certificate of the Secretary or Assistant Secretary of Borrower (or another officer of Borrower acceptable to Agent) certifying (A) resolutions of the board of directors of Borrower which authorize the execution, delivery and performance by Borrower of this Amendment and the other Loan Documents to which Borrower is or is to be a party in connection herewith, and (B) the names of the officers of Borrower authorized to sign this Amendment and each of the other Loan Documents to which Borrower is or is to be a party as of the date of this Amendment, together with specimen signatures of such officers.
(ii)    A certificate of the Chief Financial Officer of Borrower certifying (A) that all representations and warranties in this Amendment and the other Loan Documents are true and correct on the date hereof, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case such representations and warranties are true and correct as of such earlier date, (B) that no Event of Default or Unmatured Event of Default has occurred and is continuing, (C) that no Material Adverse Effect has occurred since December 31, 2018, and (D) that no event has occurred and no condition exists which could reasonably be expected to have a Material Adverse Effect.
(b)    Governmental Certificates.  Certificates issued by the appropriate government officials of the state of incorporation or organization, as applicable, of Borrower and each Guarantor as to the existence and good standing of Borrower and such Guarantor in such state.

(c)    Fees and Expenses. Evidence that the costs and expenses (including reasonable attorneys' fees) referred to in Section 12.1 of the Agreement, to the extent invoiced prior to the closing of this Amendment, have been paid in full by Borrower.
Section 3.2    Additional Conditions.  The effectiveness of this Amendment is also subject to the satisfaction of the additional conditions precedent that (a) the representations and warranties contained herein and in all other Loan Documents, as amended hereby, shall be true and correct as of the date hereof as if made on the date hereof, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case such representations and warranties shall continue to be true and correct as of such earlier date, and (b) no Event of Default or Unmatured Event of Default shall have occurred and be continuing.
ARTICLE IV.
Ratifications, Representations, and Warranties
Section 4.1    Ratifications.  The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Agreement and except as expressly modified and superseded by this Amendment, the terms and provisions of the Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect.  Borrower, Agent and Lenders agree that the Agreement as amended hereby and the other Loan Documents shall continue to be the legal, valid and binding obligation of such Persons enforceable against such Persons in accordance with its terms.
Section 4.2    Representations and Warranties.  Borrower hereby represents and warrants to Agent and Lenders that (a) the execution, delivery, and performance of this Amendment and any and all other Loan Documents executed or delivered in connection herewith have been authorized by all requisite corporate action on the part of Borrower and will not violate the Organizational Documents of Borrower, (b) the representations and warranties contained in the Agreement as amended hereby, and all other Loan Documents are true and correct on and as of the date hereof as though made on and as of the date hereof, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case such representations and warranties shall continue to be true and correct as of such earlier date, (c) no Event of Default or Unmatured Event of Default has occurred and is continuing, and (d) to the knowledge of the Authorized Representatives and Financial Officers of Borrower, Borrower has no claims, credits, offsets, defenses or counterclaims arising from the Loan Documents or Agent's or any Lender's performance under the Loan Documents.  Borrower hereby represents and warrants to Agent and Lenders that this Amendment and all Loan Documents executed in connection herewith have not been executed in the state of Florida.

ARTICLE V.
Miscellaneous
Section 5.1    Survival of Representations and Warranties.  All representations and warranties made in this Amendment or any other Loan Documents including any Loan Document furnished in connection with this Amendment shall fully survive the execution and delivery of this Amendment and the other Loan Documents, and no investigation by Agent or any Lender or any closing shall affect the representations and warranties or the right of Agent or any Lender to rely on them.
Section 5.2    Reference to Agreement.  Each of the Loan Documents, including the Agreement and any and all other agreements, documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Agreement, as amended hereby, are hereby amended so that any reference in such Loan Documents to the Agreement shall mean a reference to the Agreement, as amended hereby.
Section 5.3    Expenses; Indemnification.  Borrower agrees that this Amendment is a Loan Document to which Sections 12.1 and 12.2 of the Agreement shall apply.
Section 5.4    Severability.  Any provision of this Amendment held by a court of competent jurisdiction to be invalid, illegal or unenforceable shall not impair or invalidate the remaining provisions hereof and the effect of such invalidity, illegality or unenforceability shall be confined to the provision held to be invalid, illegal or unenforceable.
Section 5.5    APPLICABLE LAW.  THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED PURSUANT HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND THE APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.  THIS AMENDMENT HAS BEEN ENTERED INTO IN HARRIS COUNTY, TEXAS AND IT SHALL BE PERFORMABLE FOR ALL PURPOSES IN HARRIS COUNTY, TEXAS.
Section 5.6    Successors and Assigns.  This Amendment is binding upon and shall inure to the benefit of Agent, Issuing Bank, each Lender and Borrower and their respective successors and assigns, except that (a) Borrower may not assign or transfer any of its rights or obligations hereunder without prior written consent of Agent and Lenders, and (b) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with Section 12.19 of the Agreement or as required under Section 2.21 of the Agreement.
Section 5.7    Counterparts.  This Amendment and the other Loan Documents furnished in connection herewith may be executed in one or more counterparts, each of which when executed shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery of an executed signature page of this Amendment and/or any other Loan Document furnished in connection herewith by facsimile transmission or other electronic means shall be effective as delivery of a manually executed counterpart hereof.

Section 5.8    Effect of Waiver.  No consent or waiver, express or implied, by Agent or any Lender to or for any breach of or deviation from any covenant, condition or duty by Borrower shall be deemed a consent or waiver to or of any other breach of the same or any other covenant, condition or duty.
Section 5.9    Headings.  The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.
Section 5.10    Dispute Resolution.  The terms of Section 12.25 (Dispute Resolution) of the Agreement are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms.
Section 5.11    ENTIRE AGREEMENT.  THIS AMENDMENT, THE AGREEMENT, THE OTHER LOAN DOCUMENTS AND ALL OTHER INSTRUMENTS, DOCUMENTS, AND AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION WITH THIS AMENDMENT AND THE AGREEMENT EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THIS AMENDMENT, THE AGREEMENT OR THE OTHER LOAN DOCUMENTS AND THE OTHER INSTRUMENTS, DOCUMENTS AND AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION WITH THIS AMENDMENT AND THE AGREEMENT, AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO.  THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]
Executed as of the date first written above.
BORROWER:
INSPERITY, INC.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Sr. Vice President of Finance, Chief
    Financial Officer and Treasurer

AGENT:

ZIONS BANCORPORATION, N.A. dba
AMEGY BANK, as Agent

By:  /s/ Tim Neuhaus    
    Tim Neuhaus
    Senior Vice President
LENDERS:
ZIONS BANCORPORATION, N.A. dba
AMEGY BANK
By:  /s/ Ryan K. Hightower    
    Ryan K. Hightower
    Senior Vice President

BANK OF AMERICA, N.A.

By:  /s/ Julie Castano    
Name:    Julie Castano    
Title:    SVP    

WELLS FARGO BANK, N.A.

By:  /s/ Robert Corder    
Name:    Robert Corder    
Title:    Vice President    

TRUIST BANK (f/k/a Branch Banking and Trust Company)

By:  /s/ David Miller    
Name:    David Miller    
Title:    Director    

U.S. BANK NATIONAL ASSOCIATION

By:  /s/ Steven L. Sawyer    
Name:    Steven L. Sawyer    
Title:    Senior Vice President    

WOODFOREST NATIONAL BANK

By:  /s/ Zack Frewin    
Name:    Zack Frewin    
Title:    Vice President    

Each of the undersigned Guarantors hereby consents and agrees to this Amendment and agrees that the Guaranty Agreement executed by Guarantors shall remain in full force and effect and shall continue to be the legal, valid and binding obligations of such Guarantor, enforceable against such Guarantor in accordance with its terms and shall evidence such Guarantor's guaranty of the Guaranteed Indebtedness (as therein defined), as renewed, extended, and increased from time to time.

INSPERITY HOLDINGS, INC.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

ADMINISTAFF COMPANIES, INC.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

ADMINISTAFF PARTNERSHIPS HOLDING, INC.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,

    Chief Financial Officer and Treasurer

ADMINISTAFF PARTNERSHIPS HOLDING II, INC.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

ADMINISTAFF PARTNERSHIPS HOLDING III, INC.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

INSPERITY BUSINESS SERVICES, L.P.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

INSPERITY EMPLOYMENT SCREENING, L.L.C.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

INSPERITY ENTERPRISES, INC.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

INSPERITY EXPENSE MANAGEMENT, INC.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

INSPERITY GP, INC.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

INSPERITY INSURANCE SERVICES, L.L.C.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

INSPERITY PAYROLL SERVICES, L.L.C.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

INSPERITY PEO SERVICES, L.P.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

INSPERITY RETIREMENT SERVICES, L.P.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

INSPERITY SERVICES, L.P.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and Treasurer

INSPERITY SUPPORT SERVICES, L.P.

By:  /s/ Douglas S. Sharp    
    Douglas S. Sharp
    Senior Vice President of Finance,
    Chief Financial Officer and TreasurerExhibit 10.6

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive Employment
Agreement (the “Agreement”) is entered into as of the Effective Date (as defined below) by and between [EXECUTIVE]
(“Executive”), and Newegg Commerce, Inc., a corporation organized under the laws of the British Virgin Islands (the “Company”).
The Company and Executive may hereinafter each individually be referred to as a “Party” and collectively as the “Parties,”
as the context may require.

 

[For new hires: WHEREAS,
the Company wishes to employ, and Executive wishes to accept employment with the Company, as the [POSITION] of the Company, pursuant to
the terms and conditions set forth in this Agreement, effective as of [START DATE] (the “Effective Date”).]

 

[For continuing employees:
WHEREAS, Executive was previously employed by Newegg, Inc., a Delaware corporation (or a subsidiary thereof) and wholly owned subsidiary
of the Company (“Newegg Delaware”), as the [POSITION] of Newegg Delaware;

 

WHEREAS, Newegg Delaware
was recently acquired by the Company through a reverse merger, and the Executive will be serving the same role for the Company that he
served for Newegg Delaware pursuant to the terms and conditions set forth in this Agreement, effective as of [START DATE] (the “Effective
Date”).]

 

NOW, THEREFORE, in
consideration of the mutual promises and covenants contained herein, it is hereby agreed by and between the Parties as follows:

 

ARTICLE I

DEFINITIONS

 

For purposes of the Agreement,
the following terms are defined as follows:

 

1.1. “Board”
means the Board of Directors of the Company.

 

1.2. “Cause”
means a good faith determination by the Board that Executive’s employment be terminated, other than due to illness, injury, incapacity
or Disability, for only one of the following: (i) willful failure to comply with, breach of or continued refusal to comply with, in each
case, in any material respect, the material terms of this Agreement or any written agreement with the Company (including, without limitation,
any employment, consulting, confidentiality, non-competition, non-solicitation, non-disparagement or similar agreement or covenant); provided,
however, that such willful failure to comply, breach, or continued refusal to comply shall not be deemed Cause if Executive acted in a
good faith belief that he was subject to a legal or fiduciary duty warranting such conduct; (ii) material violation of any lawful policies,
standards or regulations of the Company which have been furnished to Executive, including policies related to discrimination, harassment,
performance of illegal or unethical activities, and ethical misconduct; (iii) conviction of or plea of no contest to a felony under the
laws of the United States or any state; or (iv) willful misconduct or gross negligence in connection with the performance of Executive’s
duties, in each case, after the receipt of written notice from the Board and Executive’s failure to cure (if curable) within thirty
(30) days of Executive’s receipt of the written notice, providing that the Company must provide Executive with at least thirty (30)
days to cure and if Executive cures, Cause shall not exist; provided, further, that provided, however, that any assertion by the Company
of a termination of employment for “Cause” shall not be effective unless Executive, with his counsel, has been given
the opportunity to present to the Board his position on the circumstances alleged to constitute Cause.

 

     

     

    

 

1.3. “Change
in Control” shall have the meaning ascribed to that term in the [Newegg Equity Incentive Plan] (the “LTIP”)
or any successor equity compensation plan of the Company.

 

1.4. “COBRA”
means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

1.5. “Code”
means the Internal Revenue Code of 1986, as amended.

 

1.6. “Covered
Termination” means (i) Executive’s dismissal or discharge by the Company, other than for Cause and other than by
reason of Executive’s death or Disability, or (ii) a voluntary termination for Good Reason. For the avoidance of doubt, neither
(x) the termination of Executive’s employment as a result of Executive’s death or Disability nor (y) the expiration
of this Agreement due to non-renewal pursuant to the terms of Section 2.2 of this Agreement will be deemed to be a Covered Termination.

 

1.7. “Disability”
means a termination of Executive’s employment due to Executive’s absence from Executive’s duties with the Company on
a full-time basis for at least 180 consecutive days as a result of Executive’s incapacity due to physical or mental illness which
is determined to be total and permanent by a physician selected by the Company or its insurers.

 

1.8. “Good
Reason” means any one of the following taken without Executive’s prior written consent: (i) failure or refusal by the
Company to comply in any material respect with the material terms of this Agreement; (ii) a material diminution in Executive’s duties,
title, authority, status or responsibilities or Executive ceasing to serve as the highest-level executive employed by the Company in the
[legal, finance, sale, operations, etc.] function (including, in connection with a Change in Control or other corporate transaction, Executive
being assigned to any position other than, or being assigned any title, office location, authority, duties or responsibilities that are
not consistent with, the position of [POSITION] of the corporation or other entity surviving or resulting from such corporate transaction,
including, without limitation, Executive’s ceasing to be an officer of a publicly traded company or reporting to anyone other than
the chief executive officer of such entity); (iii) a reduction in Executive’s Base Salary of 5% or more (unless such reduction is
part of a reduction that applies to and affects all similarly situated executive officers of the Company substantially the same and proportionately);
(iv) a material diminution in Executive’s annual cash bonus opportunity, unless such reduction is part of a reduction that applies
to and affects all similarly situated executive officers of the Company substantially the same and proportionately; (v) issuance
of a notice of non-renewal of this Agreement by the Company or (vi) the Company requiring Executive to be located at any office or
location more than 35 miles from the Company’s current headquarters in [LOCATION], provided that any request or directive from the
Company to not work in such office pursuant to any stay-at-home or work from home or similar law, order, directive, request or recommendation
from a governmental entity shall not give rise to Good Reason under this Agreement. Notwithstanding the foregoing, Executive’s resignation
shall not constitute a resignation for “Good Reason” as a result of any event described in the preceding sentence unless
(x) Executive provides written notice thereof to the Company within thirty (30) days after Executive’s knowledge of such event,
(y) to the extent correctable, the Company fails to remedy such circumstance or event within thirty (30) days following the Company’s
receipt of such written notice and (z) the effective date of Executive’s resignation for Good Reason is not later than ninety (90)
days after the initial existence of the circumstances constituting Good Reason.

 

    2

     

    

 

1.9. “Section
409A” means Section 409A of the Code and the 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.

 

1.10. “Separation
from Service” means Executive’s termination of employment constitutes a “separation from service” within the
meaning of Treasury Regulation Section 1.409A-1(h).

 

ARTICLE II

EMPLOYMENT BY THE COMPANY

 

2.1. Position
and Duties; Commencement Date. Executive is commencing his employment with the Company on the Effective Date, and from and after such
date, and subject to terms and conditions set forth herein, the Company agrees to employ Executive, and Executive agrees to be employed
by the Company, pursuant to the terms of this Agreement and continuing for the period of time set forth in Section 2.2. From and after
the Effective Date, Executive shall serve in an executive capacity and shall perform such duties as are customarily associated with the
position of [POSITION], which shall be the [highest-level executive] employed by the Company and its subsidiaries in the [legal, finance,
sale, operations, etc.] function, and such other duties as are assigned to Executive by the Company’s [Chief Executive Officer /
Board of Directors]. Executive shall report directly to the [Company’s Chief Executive Officer / Board of Directors]. [For continuing
employees: Executive is transferring his employment from Newegg Delaware to the Company and will be given full service credit for his
past service to Newegg Delaware.]

 

During the term of Executive’s
employment with the Company, Executive will devote Executive’s best efforts and substantially all of Executive’s business
time and attention (except for vacation periods and absences due to reasonable periods of illness or other incapacities permitted by the
Company’s general employment policies or as otherwise set forth in this Agreement) to the business of the Company.

 

2.2. Term.
The initial term of this Agreement shall commence on the Effective Date and shall terminate on the earlier of (i) the third (3rd)
anniversary of the Effective Date and (ii) the termination of Executive’s employment under this Agreement. On the third (3rd)
anniversary of the Effective Date and each annual anniversary of such date thereafter (in either case, provided Executive’s employment
has not been terminated under this Agreement prior thereto), this Agreement shall automatically be extended for one additional year unless
either Executive or the Company gives written notice of non-renewal to the other at least sixty (60) days prior to the automatic extension
date. The period from the Effective Date until the earlier of (i) termination of Executive’s employment under this Agreement
and (ii) the expiration of the term of this Agreement due to non-renewal pursuant to this Section 2.2 is referred to as the
“Term.”

 

2.3. Employment
at Will. The Company shall have the right to terminate Executive’s employment with the Company at any time, with or without
cause, and, in the case of a termination by the Company, with or without prior notice. In addition to Executive’s right to resign
for Good Reason, Executive shall have the right to resign at any time and for any reason or no reason at all, upon sixty (60) days’
advance written notice to the Company; provided, however, that if Executive has provided a resignation notice to the Company, the Company
may determine, in its sole discretion, that such termination shall be effective on any date prior to the effective date of termination
provided in such notice (and, if such earlier date is so required, then it shall not change the basis for Executive’s termination
of employment nor be construed or interpreted as a termination of Executive’s employment by the Company) and any requirement to
continue salary or benefits shall cease as of such earlier date. Upon certain terminations of Executive’s employment with the Company,
Executive may become eligible to receive the severance benefits provided in Article IV of this Agreement.

 

    3

     

    

 

2.4. Deemed
Resignations. Except as otherwise determined by the Board or as otherwise agreed to in writing by Executive and the Company or any
of its affiliates prior to the termination of Executive’s employment with the Company or any of its affiliates, any termination
of Executive’s employment shall constitute, as applicable, an automatic resignation of Executive: (a) as an officer of the
Company and each of its affiliates; (b) from the Board; and (c) from the board of directors or board of managers (or similar governing
body) of any affiliate of the Company and from the board of directors or board of managers (or similar governing body) of any corporation,
limited liability entity, unlimited liability entity or other entity in which the Company or any of its affiliates holds an equity interest
and with respect to which board of directors or board of managers (or similar governing body) Executive serves as such designee or other
representative of the Company or any of its affiliates. Executive agrees to take any further actions that the Company or any of its affiliates
reasonably requests to effectuate or document the foregoing.

 

2.5. Employment
Policies. The employment relationship between the Parties shall also be governed by the general employment policies and practices
of the Company, including those relating to protection of confidential information and assignment of inventions, except that when the
terms of this Agreement differ from or are in conflict with the Company’s general employment policies or practices, this Agreement
shall control.

 

ARTICLE III

COMPENSATION

 

3.1. Base
Salary. As of the Effective Date, and during the Term, Executive shall receive, for services to be rendered hereunder, an annualized
base salary of $[_______] (“Base Salary”), payable on the regular payroll dates of the Company (but no less often than
monthly), subject to increase in the sole discretion of the Board or a committee of the Board.

 

3.2. Annual
Bonus; 2021 Annual Bonus. For each calendar year ending during the Term, Executive shall be eligible to receive an annual performance
bonus (the “Annual Bonus”) targeted at [_______] percent ([__]%) of Base Salary or such other amount as determined
in the sole discretion of the Board or a committee of the Board (the “Target Bonus”), on such terms and conditions
determined by the Board or a committee of the Board. The actual amount of any Annual Bonus (if any) will be determined in the discretion
of the Board or a committee of the Board and will be (i) subject to achievement of any applicable bonus objectives and/or conditions
determined by the Board or a committee of the Board and (ii) subject to Executive’s continued employment with the Company through
the date the Annual Bonus is paid (except as otherwise provided in Section 4.1). The Annual Bonus for any calendar year will be paid at
the same time as bonuses for other Company executives are paid related annual bonuses generally.

 

    4

     

    

 

3.3. Standard
Company Benefits. During the Term, Executive shall be entitled to all rights and benefits for which Executive is eligible under the
terms and conditions of the standard Company benefits and compensation practices that may be in effect from time to time and are provided
by the Company to its executive employees generally, as well as any additional benefits provided to Executive consistent with past practice.
Notwithstanding the foregoing, this Section 3.3 shall not create or be deemed to create any obligation on the part of the Company
to adopt or maintain any benefits or compensation practices at any time.

 

3.4. Paid
Time Off. During the Term, Executive shall be entitled to such periods of paid time off (“PTO”) each year as provided
from time to time under the Company’s PTO policies and as otherwise provided for the Company’s executive officers, as it may
be amended from time to time.

 

3.5. Equity
Awards. Executive will be eligible to receive equity incentive grants as determined by the Board or a committee of the Board in its
sole discretion. All equity awards granted to Executive will be subject to the terms and conditions of the LTIP and the applicable award
agreement approved by the Board or a committee thereof (the “Award Agreements”). Nothing herein shall be construed
to give any Executive any rights to any amount or type of grant or award except as provided in an award agreement and authorized by the
Board or a committee thereof.

 

3.6. Business
Expenses. The Company shall reimburse Executive for all reasonable business expenses (including, but not limited to, state legal bar
dues, continuing legal education expenses, and membership fees for professional organizations related to the performance of Executive’s
duties hereunder) incurred by Executive in performing services hereunder, including all expenses of travel and living expenses while away
from home on business or at the request of and in the service of the Company; provided, in each case, that such expenses are incurred
and accounted for in accordance with the policies and procedures established by the Company. Any such reimbursement of expenses shall
be made by the Company upon or as soon as practicable following receipt of supporting documentation reasonably satisfactory to the Company.

 

ARTICLE IV

SEVERANCE AND CHANGE IN CONTROL BENEFITS

 

4.1. Severance
Benefits. Upon Executive’s termination of employment, Executive shall receive any accrued but unpaid Base Salary and other accrued
and unpaid compensation, including any accrued but unpaid vacation. If the termination is due to a Covered Termination, provided that
Executive (A) delivers an effective general release of all claims against the Company and its affiliates in a form provided by the Company
(a “Release of Claims”) that becomes effective and irrevocable within sixty (60) days following the Covered Termination
and (B) continues to comply with Articles V through VII of this Agreement, Executive shall be entitled to receive the severance benefits
described in Section 4.1(a) or (b), as applicable.

 

    5

     

    

 

(a) Covered
Termination Not Related to a Change in Control. If Executive’s employment terminates due to a Covered Termination which occurs
at any time other than during the period beginning three (3) months prior to a Change in Control and ending twelve (12) months after a
Change in Control (the “CIC Protection Period”), Executive shall receive the following:

 

(i) An
amount equal to [twelve] months of  Executive’s Base Salary at the rate in effect (or required to be in effect before any diminution
that is the basis of Executive’s termination for Good Reason) at the time of Executive’s termination of employment, payable
in a lump sum payment, less applicable withholdings, as soon as administratively practicable following the date on which the Release of
Claims becomes effective and, in any event, no later than the sixtieth (60th) day following the date of the Covered Termination;
provided, however, if such sixty (60) day period falls in two different calendar years, payment will be made in the later calendar year.

 

(ii) Notwithstanding
anything set forth in an award agreement or incentive plan to the contrary, (A) a pro-rata portion of Executive’s Annual Bonus for
the fiscal year in which Executive’s termination occurs based on actual achievement of the applicable bonus objectives and/or conditions
determined by the Board or a committee of the Board for such year (determined by multiplying the amount of the Annual Bonus that would
be payable for the full fiscal year by a fraction, the numerator of which shall be equal to the number of days during the fiscal year
of termination that Executive is employed by, and performing services for, the Company and the denominator of which is 365 days) and (B)
the amount of any Annual Bonus earned, but not yet paid, for the fiscal year prior to Executive’s termination, in each case, payable,
less applicable withholdings, at the same time bonuses for such year are paid to other senior executives of the Company, but in no event
later than March 15 of the year following the year of Executive’s termination of employment.

 

(iii) Subject
to Executive’s timely election of continuation coverage under COBRA, the Company shall directly pay, or reimburse Executive for
the premium for Executive and Executive’s covered dependents to maintain continued health coverage pursuant to the provisions of
COBRA through the earlier of (A) the [twelve]-month anniversary of the date of Executive’s termination of employment and (B) the
date Executive and Executive’s covered dependents, if any, become eligible for healthcare coverage under another employer’s
plan(s). Notwithstanding the foregoing, if the Company is otherwise unable to continue to cover Executive under its group health plans
without penalty under applicable law (including without limitation, Section 2716 of the Public Health Service Act), then, in either case,
an amount equal to each remaining Company subsidy shall thereafter be paid to Executive in substantially equal monthly installments.

 

    6

     

    

 

(b) Covered
Termination Related to a Change in Control. If Executive’s employment terminates due to a Covered Termination that occurs during
the CIC Protection Period, Executive shall receive the following:

 

(i) An
amount equal to [two] times the sum of (i) Executive’s Base Salary at the rate in effect (or required to be in effect before
any diminution that is the basis of Executive’s termination for Good Reason) at the time of Executive’s termination of employment
and (ii) Executive’s Target Bonus in effect for the year in which Executive’s termination of employment occurs, payable
in a lump sum payment, less applicable withholdings, as soon as administratively practicable following the date on which the Release of
Claims becomes effective and, in any event, no later than the sixtieth (60th) day following the date of the Covered Termination;
provided, however, if such sixty (60) day period falls in two different calendar years, payment will be made in the later calendar year.

 

(ii) Notwithstanding
anything set forth in an award agreement or incentive plan to the contrary, (A) a pro-rata portion of Executive’s Annual Bonus for
the fiscal year in which Executive’s termination occurs based on actual achievement of the applicable bonus objectives and/or conditions
determined by the Board or a committee of the Board for such year (determined by multiplying the amount of the Annual Bonus that would
be payable for the full fiscal year by a fraction, the numerator of which shall be equal to the number of days during the fiscal year
of termination that Executive is employed by, and performing services for, the Company and the denominator of which is 365 days) and (B)
the amount of any Annual Bonus earned, but not yet paid, for the fiscal year prior to Executive’s termination, in each case, payable,
less applicable withholdings, at the same time bonuses for such year are paid to other senior executives of the Company, but in no event
later than March 15 of the year following the year of Executive’s termination of employment.

 

(iii) Subject
to Executive’s timely election of continuation coverage under COBRA, the Company shall directly pay, or reimburse Executive for
the premium for Executive and Executive’s covered dependents to maintain continued health coverage pursuant to the provisions of
COBRA through the earlier of (A) the 18-month anniversary of the date of Executive’s termination of employment and (B) the date
Executive and Executive’s covered dependents, if any, become eligible for healthcare coverage under another employer’s plan(s).
Notwithstanding the foregoing, if the Company is otherwise unable to continue to cover Executive under its group health plans without
penalty under applicable law (including without limitation, Section 2716 of the Public Health Service Act), then, in either case, an amount
equal to each remaining Company subsidy shall thereafter be paid to Executive in substantially equal monthly installments.

 

(iv) Accelerated
vesting, as of the date of the Covered Termination, of all outstanding and unvested equity-based awards, with any performance-based awards
deemed earned at the greater of the target level of performance or actual level of performance through the date of the Change in Control.

 

    7

     

    

 

4.2. 280G
Provisions. Notwithstanding anything in this Agreement to the contrary, if any payment, benefit or distribution Executive would receive
pursuant to this Agreement or otherwise from the Company or any of its affiliates (“Payment”) would (a) constitute
a “parachute payment” within the meaning of Section 280G of the Code, and (b) but for this sentence, be subject
to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall either be (i) delivered
in full, or (ii) delivered as to such lesser extent which would result in no portion of such Payment being subject to the Excise
Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax,
results in the receipt by Executive on an after-tax basis, of the largest payment, notwithstanding that all or some portion of the Payment
may be taxable under Section 4999 of the Code. The accounting firm engaged by the Company for general audit purposes as of the day
prior to the effective date of the Change in Control shall perform the foregoing calculations. The Company shall bear all expenses with
respect to the determinations by such accounting firm required to be made hereunder. The accounting firm shall provide its calculations
to the Company and Executive within fifteen (15) calendar days after the date on which Executive’s right to a Payment is triggered
(if requested at that time by the Company or Executive) or such other time as requested by the Company or Executive. Any reasonable determinations
of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive. Any reduction in payments
and/or benefits pursuant to this Section 4.2 will occur in the following order: (1) reduction of cash payments; (2) cancellation
of accelerated vesting of equity awards other than stock options; (3) cancellation of accelerated vesting of stock options; and (4) reduction
of other benefits payable to Executive. Nothing in this Section 4.2 shall require the Company or any of its affiliates
to be responsible for, or have any liability or obligation with respect to, Executive’s excise tax liabilities under Section 4999
of the Code.

 

4.3. Section 409A.
Notwithstanding any provision to the contrary in this Agreement:

 

(a) All
provisions of this Agreement are intended to comply with Section 409A of the Code, and the applicable Treasury regulations and administrative
guidance issued thereunder (collectively, “Section 409A”) or an exemption therefrom and shall be construed and
administered in accordance with such intent. Any payments under this Agreement that may be excluded from Section 409A either as separation
pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent
possible. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement
are exempt from, or compliant with, Section 409A and in no event shall the Company or any of its affiliates be liable for all or any portion
of any taxes, penalties, interest or other expenses that may be incurred by Executive on account of non-compliance with Section 409A.

 

(b) If
Executive is deemed at the time of Executive’s Separation from Service to be a “specified employee” for purposes of
Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of the benefits to which Executive is entitled
under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code which would
subject Executive to a tax obligation under Section 409A, such portion of Executive’s benefits shall not be provided to Executive
prior to the earlier of (i) the expiration of the six- month period measured from the date of Executive’s Separation from Service
or (ii) the date of Executive’s death. Upon the expiration of the applicable Code Section 409A(a)(2)(B)(i) period, all
payments deferred pursuant to this Section 4.3(b) shall be paid in a lump sum to Executive, and any remaining payments due under
the Agreement shall be paid as otherwise provided herein.

 

(c) Any
reimbursements payable to Executive pursuant to the Agreement shall be paid to Executive no later than 30 days after Executive provides
the Company with a written request for reimbursement, and to the extent that any such reimbursements are deemed to constitute “nonqualified
deferred compensation” within the meaning of Section 409A (i) such amounts shall be paid or reimbursed to Executive promptly,
but in no event later than December 31 of the year following the year in which the expense is incurred, (ii) the amount of any
such payments eligible for reimbursement in one year shall not affect the payments or expenses that are eligible for payment or reimbursement
in any other taxable year, and (iii) Executive’s right to such payments or reimbursement shall not be subject to liquidation
or exchange for any other benefit; provided, that the foregoing clause shall not be violated with regard to expenses reimbursed under
any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period in which
the arrangement is in effect.

 

    8

     

    

 

(d) For
purposes of Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)),
Executive’s right to receive installment payments under the Agreement shall be treated as a right to receive a series of separate
payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment.

 

4.4. Mitigation.
Executive shall not be required to mitigate damages or the amount of any payment provided under this Agreement by seeking other employment
or otherwise, nor shall the amount of any payment provided for under this Agreement be reduced by any compensation earned by Executive
as a result of employment by another employer or by any retirement benefits received by Executive after the date of the Covered Termination,
or otherwise.

 

ARTICLE V

PROPRIETARY INFORMATION AND CONFIDENTIALITY OBLIGATIONS

 

5.1. Proprietary
Information. All Company Innovations shall be the sole and exclusive property of the Company without further compensation and are
“works made for hire” as that term is defined under the United States copyright laws. Executive shall promptly notify the
Company of any Company Innovations that Executive solely or jointly Creates. “Company Innovations” means all Innovations,
and any associated intellectual property rights, which Executive may solely or jointly Create, during Executive’s employment with
the Company, which (i) relate, at the time Created, to the Company’s business or actual or demonstrably anticipated research
or development, or (ii) were developed on any amount of the Company’s time or with the use of any of the Company’s equipment,
supplies, facilities or trade secret information, or (iii) resulted from any work Executive performed for the Company. Executive
is notified that Company Innovations does not include any Innovation which qualifies fully under the provisions of California Labor Code
Section 2870. “Create” means to create, conceive, reduce to practice, derive, develop or make. “Innovations”
means processes, machines, manufactures, compositions of matter, improvements, inventions (whether or not protectable under patent laws),
works of authorship, information fixed in any tangible medium of expression (whether or not protectable under copyright laws), mask works,
trademarks, trade names, trade dress, trade secrets, know-how, ideas (whether or not protectable under trade secret laws), and other subject
matter protectable under patent, copyright, moral rights, mask work, trademark, trade secret or other laws regarding proprietary rights,
including new or useful art, combinations, discoveries, formulae, manufacturing techniques, technical developments, discoveries, artwork,
software and designs. Executive hereby assigns (and will assign) to the Company all Company Innovations. Executive shall perform (at the
Company’s expense), during and after Executive’s employment, all acts reasonably deemed necessary or desirable by the Company
to assist the Company in obtaining and enforcing the full benefits, enjoyment, rights and title throughout the world in the Company Innovations.
Such acts may include execution of documents and assistance or cooperation (i) in the filing, prosecution, registration, and memorialization
of assignment of patent, copyright, mask work or other applications, (ii) in the enforcement of any applicable Proprietary Rights,
and (iii) in other legal proceedings related to the Company’s Innovations. “Proprietary Rights” means patents,
copyrights, mask work, moral rights, trade secrets and other proprietary rights. No provision in this Agreement is intended to require
Executive to assign or offer to assign any of Executive’s rights in any invention for which Executive can establish that no trade
secret information of the Company was used, and which was developed on Executive’s own time, unless the invention relates to the
Company’s actual or demonstrably anticipated research or development, or the invention results from any work performed by Executive
for the Company.

 

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5.2. Confidentiality.
In the course of Executive’s employment with the Company and the performance of Executive’s duties on behalf of the Company
and its affiliates hereunder, Executive will be provided with, and will have access to, Confidential Information (as defined below). In
consideration of Executive’s receipt and access to such Confidential Information, and as a condition of Executive’s employment,
Executive shall comply with this Section 5.2

 

(a) Both
during the Term and thereafter, except as expressly permitted by this Agreement, Executive shall not disclose any Confidential Information
to any person or entity and shall not use any Confidential Information except for the benefit of the Company or its affiliates. Executive
shall follow all Company policies and protocols regarding the security of all documents and other materials containing Confidential Information
(regardless of the medium on which Confidential Information is stored). Except to the extent required for the performance of Executive’s
duties on behalf of the Company or any of its affiliates, Executive shall not remove from facilities of the Company or any of its affiliates
any information, property, equipment, drawings, notes, reports, manuals, invention records, computer software, customer information, or
other data or materials that relate in any way to the Confidential Information, whether paper or electronic and whether produced by Executive
or obtained by the Company or any of its affiliates. The covenants of this Section 5.2(a) shall apply to all Confidential Information,
whether now known or later to become known to Executive during the period that Executive is employed by the Company.

 

(b) Notwithstanding
any provision of Section 5.2(a) to the contrary, Executive may make the following disclosures and uses of Confidential Information:

 

(i) disclosures
to other employees, officers or directors of the Company or any of its affiliates who, in the reasonable and good faith belief of Executive,
have a need to know the information in connection with the businesses of the Company or any of its affiliates;

 

(ii) disclosures
to customers, service providers, vendors and suppliers when, in the reasonable and good faith belief of Executive, such disclosure is
in connection with Executive’s performance of Executive’s duties hereunder;

 

(iii) disclosures
and uses that are approved in writing by the Company’s Chief Executive Officer or the Board; or

 

(iv) disclosures
to a person or entity that has (x) been retained by the Company or any of its affiliates to provide services to the Company and/or its
affiliates and (y) agreed in writing to abide by the terms of a confidentiality agreement or is otherwise under a duty to treat such information
as confidential.

 

(c) Upon
the expiration of the Term, and at any other time upon request of the Company, Executive shall promptly and permanently surrender and
deliver to the Company all documents (including electronically stored information) and all copies thereof and all other materials of any
nature containing or pertaining to all Confidential Information and any other Company property (including any Company-issued computer,
mobile device or other equipment) in Executive’s possession, custody or control and Executive shall not retain any such documents
or other materials or property of the Company or any of its affiliates. Within ten (10) days of any such request, Executive shall certify
to the Company in writing that all such documents, materials and property have been returned to the Company or otherwise destroyed.

 

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(d) “Confidential
Information” means all confidential, competitively valuable, non-public or proprietary information that is conceived, made,
developed or acquired by or disclosed to Executive (whether conveyed orally or in writing), individually or in conjunction with others,
during the period that Executive is employed or engaged by the Company or any of its affiliates (whether during business hours or otherwise
and whether on the Company’s premises or otherwise) including: (i) technical information of the Company, its affiliates, its investors,
customers, vendors, suppliers or other third parties, including computer programs, software, databases, data, ideas, know-how, formulae,
compositions, processes, discoveries, machines, inventions (whether patentable or not), designs, developmental or experimental work, techniques,
improvements, work in process, research or test results, original works of authorship, training programs and procedures, diagrams, charts,
business and product development plans, and similar items; (ii) information relating to the Company or any of its affiliates’ businesses
or properties, products or services (including all such information relating to corporate opportunities, operations, future plans, methods
of doing business, business plans, strategies for developing business and market share, research, financial and sales data, pricing terms,
evaluations, opinions, interpretations, acquisition prospects, the identity of customers or acquisition targets or their requirements,
the identity of key contacts within customers’ organizations or within the organization of acquisition prospects, or marketing and
merchandising techniques, prospective names and marks) or pursuant to which the Company or any of its affiliates owes a confidentiality
obligation; and (iii) other valuable, confidential information and trade secrets of the Company, its affiliates, its customers or other
third parties. Moreover, all documents, videotapes, written presentations, brochures, drawings, memoranda, notes, records, files, correspondence,
manuals, models, specifications, computer programs, e-mail, voice mail, electronic databases, maps, drawings, architectural renditions,
models and all other writings or materials of any type including or embodying any of such information, ideas, concepts, improvements,
discoveries, inventions and other similar forms of expression are and shall be the sole and exclusive property of the Company or its other
applicable affiliates and be subject to the same restrictions on disclosure applicable to all Confidential Information pursuant to this
Agreement. For purposes of this Agreement, Confidential Information shall not include any information that (A) is or becomes generally
available to the public other than as a result of a disclosure or wrongful act of Executive or any of Executive’s agents; (B) was
available to Executive on a non-confidential basis before its disclosure by the Company or any of its affiliates; (C) becomes available
to Executive on a non-confidential basis from a source other than the Company or any of its affiliates; provided, however, that such source
is not bound by a confidentiality agreement with, or other obligation with respect to confidentiality to, the Company or any of its affiliates;
or (D) is required to be disclosed by applicable law.

 

(e) Notwithstanding
the foregoing, nothing in this Agreement shall prohibit or restrict Executive from lawfully: (i) initiating communications directly with,
cooperating with, providing information to, causing information to be provided to, or otherwise assisting in an investigation by, any
governmental authority regarding a possible violation of any law; (ii) responding to any inquiry or legal process directed to Executive
from any such governmental authority; (iii) testifying, participating or otherwise assisting in any action or proceeding by any such governmental
authority relating to a possible violation of law; or (iv) making any other disclosures required by law or legal process that are protected
under the whistleblower provisions of any applicable law. Additionally, pursuant to the federal Defend Trade Secrets Act of 2016, an individual
shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that:
(A) is made (1) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney and (2)
solely for the purpose of reporting or investigating a suspected violation of law; (B) is made to the individual’s attorney in relation
to a lawsuit for retaliation against the individual for reporting a suspected violation of law; or (C) is made in a complaint or other
document filed in a lawsuit or proceeding, if such filing is made under seal. Nothing in this Agreement requires Executive to obtain prior
authorization before engaging in any conduct described in this paragraph, or to notify the Company that Executive has engaged in any such
conduct.

 

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5.3. Nondisparagement.
Subject to Section 5.2(e) above, Executive agrees that from and after the Effective Date, Executive will not, directly or indirectly,
make, publish, or communicate any disparaging or defamatory comments regarding the Company or any of its directors or executive officers.
The Company agrees that it will counsel its executive officers and directors to not make, publish, or communicate any disparaging or defamatory
comments regarding Executive. The foregoing shall not be violated by truthful statements in response to legal process, required governmental
testimony or filings or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings),
and the foregoing limitation on the Company’s senior executives and directors shall not be violated by statements that they in good
faith believe are necessary or appropriate to make in connection with performing their duties and obligations to the Company or any of
its affiliates.

 

5.4. Remedies.
Executive’s and the Company’s duties under this Article V shall survive termination of Executive’s employment
with the Company and the termination of this Agreement. Because of the difficulty of measuring economic losses to the Company and its
affiliates as a result of a breach or threatened breach of the covenants set forth in this Article V, Section 6.2 and Article VII, and
because of the immediate and irreparable damage that would be caused to the Company and its affiliates for which they would have no other
adequate remedy, Executive acknowledges that a remedy at law for any breach or threatened breach by Executive of Article V, as well
as Executive’s obligations pursuant to Section 6.2 and Article VII below, would be inadequate, and Executive therefore
agrees that the Company shall be entitled to seek injunctive relief in case of any such breach or threatened breach from any court of
competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy,
and without the necessity of posting any bond or other security. The aforementioned equitable relief shall not be the Company’s
or any of its affiliates’ exclusive remedy for a breach but instead shall be in addition to all other rights and remedies available
to the Company and each of its affiliates at law and equity.

 

5.5. Modification.
The covenants in this Article V, Section 6.2 and Article VII, and each provision and portion hereof, are severable and separate, and the
unenforceability of any specific covenant (or portion thereof) shall not affect the provisions of any other covenant (or portion thereof).
If it is determined by an arbitrator or a court of competent jurisdiction in any state that any restriction in this Article V, Section
6.2 and Article VII is excessive in duration or scope or is unreasonable or unenforceable under the laws of that state, it is the intention
of the Parties that such restriction may be modified or amended by the arbitrator or the court to render it enforceable to the maximum
extent permitted by the law of that state.

 

ARTICLE VI

OUTSIDE ACTIVITIES

 

6.1. Other
Activities.

 

(a) Except
as otherwise provided in Section 6.1(b), Executive shall not, during the term of this Agreement undertake or engage in any other
employment, occupation or business enterprise, other than ones in which Executive is a passive investor, unless Executive obtains the
prior written consent of the Board.

 

(b) Executive
may engage in civic and not-for-profit activities so long as such activities do not materially interfere with the performance of Executive’s
duties hereunder. In addition, subject to advance approval by the Board, Executive shall be allowed to serve as a member of the board
of directors of one (1) for-profit entity at any time during the term of this Agreement, so long as such service does not materially
interfere with the performance of Executive’s duties hereunder; provided, however, that the Board, in its discretion, may require
that Executive resign from such director position if it determines that such resignation would be in the best interests of the Company.

 

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6.2. Competition/Investments.
During the term of Executive’s employment by the Company, Executive shall not (except on behalf of the Company) directly or
indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative, consultant, or in any capacity
whatsoever engage in, become financially interested in, be employed by or have any business connection with any other person, corporation,
firm, partnership or other entity whatsoever which are known by Executive to compete directly with the Company or any of its affiliates,
throughout the world, in any line of business engaged in (or known by Executive to be planned to be engaged in) by the Company; provided,
however, that anything above to the contrary notwithstanding, Executive may own, as a passive investor, securities of any competitor corporation,
so long as Executive’s direct holdings in any one such corporation do not, in the aggregate, constitute more than 1% of the voting
stock of such corporation.

 

6.3. Defense
of Claims; Cooperation. During the Term and thereafter, upon reasonable request from the Company, Executive shall use commercially
reasonable efforts to cooperate with the Company and its affiliates in the defense of any claims or actions that may be made by or against
the Company or any of its affiliates that relate to Executive’s actual or prior areas of responsibility or knowledge, at the Company
sole cost and expense. Executive shall further use commercially reasonable efforts to provide reasonable and timely cooperation in connection
with any actual or threatened claim, action, inquiry, review, investigation, process, or other matter (whether conducted by or before
any court, arbitrator, regulatory, or governmental entity, or by or on behalf of the Company or any of its affiliates), that relates to
Executive’s actual or prior areas of responsibility or knowledge, at the Company sole cost and expense. Executive shall be reimbursed
for any expenses associated with his compliance with this Section 6.3.

 

ARTICLE VII

NONINTERFERENCE

 

Executive shall not, during
the term of Executive’s employment by the Company and, solely with respect to clause (ii) below, for twelve (12) months thereafter,
either on Executive’s own account or jointly with or as a manager, agent, officer, employee, consultant, partner, joint venturer,
owner or stockholder or otherwise on behalf of any other person, firm or corporation, directly or indirectly solicit, induce attempt to
solicit any of (i) its customers or clients to terminate their relationship with the Company or to cease purchasing services or products
from the Company or (ii) its officers or employees or offer employment to any person who is an officer or employee of the Company;
provided, however, that a general advertisement to which an employee of the Company responds shall in no event be deemed to result
in a breach of this Article VII. If it is determined by a court of competent jurisdiction in any state that any restriction in this
Article VII is excessive in duration or scope or is unreasonable or unenforceable under the laws of that state, it is the intention
of the Parties that such restriction may be modified or amended by the court to render it enforceable to the maximum extent permitted
by the law of that state.

 

ARTICLE VIII

GENERAL PROVISIONS

 

8.1. Notices.
Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of personal delivery (including personal
delivery by facsimile or electronic mail) or the tenth day after mailing by first class mail, to the Company at its primary office location
and to Executive at Executive’s address as listed on the Company’s books and records.

 

8.2. Tax
Withholding. Executive acknowledges that all amounts and benefits payable under this Agreement are subject to deduction and withholding
to the extent required by applicable law.

 

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8.3. Severability.
Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction,
but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions
had never been contained herein.

 

8.4. Clawback.
Amounts paid or payable under this Agreement shall be subject to the provisions of any applicable clawback policies or procedures adopted
by the Company or any of its affiliates applicable to Executive, which clawback policies or procedures may provide for forfeiture and/or
recoupment of amounts paid or payable under this Agreement. Notwithstanding any provision of this Agreement to the contrary, the Company
and each of its affiliates reserves the right, without the consent of Executive, to adopt any such clawback policies and procedures, including
such policies and procedures applicable to this Agreement with retroactive effect.

 

8.5. Waiver.
Any waiver of this Agreement must be executed by the Party to be bound by such waiver. If either Party should waive any breach of
any provisions of this Agreement, they shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any
other provision of this Agreement or any similar or dissimilar provision or condition at the same or any subsequent time. The failure
of either Party hereto to take any action by reason of any breach will not deprive such Party of the right to take action at any time.

 

8.6. Complete
Agreement; Amendments. This Agreement constitutes the entire agreement between Executive and the Company and is the complete, final,
and exclusive embodiment of their agreement with regard to this subject matter, and will supersede all prior agreements, understandings,
discussions, negotiations and undertakings, whether written or oral, between the Parties with respect to the subject matter hereof. [This
Agreement will also supersede [prior employment agreement] between Executive and Newegg Delaware dated [_____]]. This Agreement is entered
into without reliance on any promise or representation other than those expressly contained herein or therein, and cannot be modified
or amended except in a writing signed by a duly-authorized officer of the Company (other than Executive) and Executive.

 

8.7. Counterparts.
This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one Party, but
all of which taken together will constitute one and the same Agreement.

 

8.8. Headings.
The headings of the sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect
the meaning thereof.

 

8.9. Successors
and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive and the Company, and their
respective successors, assigns, heirs, executors and administrators, except that Executive may not assign Executive’s rights or
delegate Executive’s duties or obligations hereunder without the prior written consent of the Company.

 

8.10. Effect
of Termination. The provisions of Section 2.4 and Articles IV, V, VII and VIII and those provisions necessary to interpret and enforce
them, shall survive any termination of this Agreement and any termination of the employment relationship between Executive and the Company.

 

8.11. Third-Party
Beneficiaries. Each affiliate of the Company that is not a signatory to this Agreement shall be a third-party beneficiary of Executive’s
obligations under Sections 2.4 and 8.14 and Articles V, VI and VII and shall be entitled to enforce such obligations as if a party hereto.

 

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8.12. Executive
Acknowledgement. Executive acknowledges and agrees that (a) Executive was represented by counsel in connection with the negotiation
of this Agreement, and (b) that Executive has read and understands the Agreement, is fully aware of its legal effect, and has entered
into it freely based on Executive’s own judgment.

 

8.13. Choice
of Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed by the law of the
State of California without regard to the conflicts of law provisions thereof. With respect to any claim or dispute related to or arising
under this Agreement, the Parties hereby consent to the arbitration provisions of Section 8.14 and recognize and agree that should any
resort to a court be necessary and permitted under this Agreement, then they consent to the exclusive jurisdiction, forum and venue of
the state and federal courts (as applicable) located in the State of California.

 

8.14. Arbitration.

 

(a) Subject
to Section 8.14(b), any dispute, controversy or claim between Executive and the Company or any of its affiliates arising out of or relating
to this Agreement or Executive’s employment or engagement with the Company or any of its affiliates (“Disputes”)
will be finally settled by confidential arbitration in the State of California in accordance with the then-existing American Arbitration
Association (“AAA”) Employment Arbitration Rules. The arbitration award shall be final and binding on both Parties.
Any arbitration conducted under this Section 8.14 shall be private, shall be heard by a single arbitrator mutually agreeable between the
Parties (the “Arbitrator”) selected in accordance with the then-applicable rules of the AAA and shall be conducted
in accordance with the Federal Arbitration Act. The Arbitrator shall expeditiously hear and decide all matters concerning the Dispute.
Except as expressly provided to the contrary in this Agreement, the Arbitrator shall have the power to (i) gather such materials, information,
testimony and evidence as the Arbitrator deems relevant to the Dispute before him or her (and each party will provide such materials,
information, testimony and evidence requested by the Arbitrator), and (ii) grant injunctive relief and enforce specific performance. All
Disputes shall be arbitrated on an individual basis, and each Party hereby foregoes and waives any right to arbitrate any Dispute as a
class action or collective action or on a consolidated basis or in a representative capacity on behalf of other persons or entities who
are claimed to be similarly situated, or to participate as a class member in such a proceeding. The decision of the Arbitrator shall be
reasoned, rendered in writing, be final and binding upon the disputing parties and the Parties agree that judgment upon the award may
be entered by any court of competent jurisdiction. The Company will cover the costs of arbitration, including, but not limited to, any
fee charged by the arbitrator; provided, however, that Executive shall cover his own legal expenses.

 

(b) Notwithstanding
Section 8.14(a), either Party may make a timely application for, and obtain, judicial emergency or temporary injunctive relief to enforce
any of the provisions of Articles V through VII; provided, however, that the remainder of any such Dispute (beyond the application for
emergency or temporary injunctive relief) shall be subject to arbitration under this Section 8.14.

 

(c) By
entering into this Agreement and entering into the arbitration provisions of this Section 8.14, THE PARTIES EXPRESSLY ACKNOWLEDGE AND
AGREE THAT THEY ARE KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVING THEIR RIGHTS TO A JURY TRIAL.

 

(d) Nothing
in this Section 8.14 shall prohibit a Party from (i) instituting litigation to enforce any arbitration award, or (ii) joining the other
Party in a litigation initiated by a person or entity that is not a party to this Agreement. Further, nothing in this Section 8.14 precludes
Executive from filing a charge or complaint with a federal, state or other governmental administrative agency.

 

[Signature page follows]

 

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In Witness Whereof, the
parties have executed this Agreement as of the date first written above.

 

	 	[Newegg Commerce, Inc.]
	 	 
	 	By:	
	 	 	[NAME]
	 	Title:	Chief Executive Officer
	Accepted and Agreed:	 
	 	 
	 	 
	[EXECUTIVE]

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