Document:

Exhibit

Exhibit 10.28

TURTLE BEACH CORPORATION
2013 STOCK-BASED INCENTIVE COMPENSATION PLAN
OPTION AGREEMENT 

This OPTION AGREEMENT (this “Agreement”), dated as of May 20, 2015 (the “Grant Date”), is by and between Turtle Beach Corporation, a Nevada corporation (the “Company”), and Juergen Stark (the “Optionee”)

WITNESSETH:

WHEREAS, the Company desires to afford the Optionee an opportunity to purchase Shares of the Company as hereinafter provided, in accordance with the provisions of the Turtle Beach Corporation 2013 Stock-Based Incentive Compensation Plan (the “Plan”), a copy of which is attached hereto as Exhibit A;

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereto, intending to be legally bound hereby, agree as follows:

1.Grant of Option.  The Company hereby grants to the Optionee a Non-Qualified Stock Option (the “Option”) to purchase 1,863,646 shares of the Company’s common stock (the “Shares”).  The Option is in all respects limited and conditioned as hereinafter provided, and is subject in all respects to the terms and conditions of the Plan now in effect and as it may be amended from time to time.
2.    Purchase Price.  The exercise price of the Shares covered by the Option shall be $1.93 per Share (the “Option Price”). 
3.    Option Term.  Unless earlier terminated pursuant to any provision of the Plan or this Agreement, the Option shall expire on September 3, 2022 (the “Expiration Date”).  The Option shall not be exercisable after the Expiration Date. 
4.    Vesting.  The Option is vested and exercisable with respect to 1,242,431 underlying Shares as of the Grant Date.  Subject to the Optionee’s continuing employment in good standing with the Company or any Subsidiary or Affiliate, the Option shall vest and become exercisable with respect to 1/22nd of the remaining underlying Shares on the 1st day of each month after the Grant Date.
5.    Effect of Termination of Service.  If the Optionee ceases to be employed by the Company or any Subsidiary or Affiliate for any reason, the unvested portion of the Option shall immediately cease to vest and be forfeited with no compensation due to the Optionee, and, unless the Optionee is terminated for cause, the vested portion of the Option shall remain exercisable until the earlier of (i) the date that is three months following the Optionee’s termination date and (ii) the Expiration Date.

6.    Change in Control.  Immediately prior to the consummation of a Change in Control, 50% of the then-unvested portion of the Option shall vest; provided, further, that the other 50% of the then-unvested portion of the Option (the “Unvested CIC Options”) shall also vest immediately prior to the consummation of a Change in Control unless the successor company or its direct or indirect parent agrees to assume the Unvested CIC Options or replace them with options that maintain the existing aggregate option spread of the Unvested CIC Options, provide for vesting that is not less favorable to Optionee than the Unvested CIC Options and are otherwise substantially similar to the Unvested CIC Options in connection with the Change in Control.
7.    Method of Exercise.  The Optionee may exercise the Option by delivering notice to the Company in a form specified or accepted by the Committee and signed by the Optionee or the person then having the right to exercise the Option, specifying the number of Shares with respect to which the Option is being exercised and the Option Price per Share, and paying to the Company the aggregate Option Price.  The aggregate Option Price must be paid within three days of the date of exercise: (i) in cash, (ii) with the proceeds received from a broker-dealer whom the Optionee has authorized to sell all or a portion of the Shares covered by the Option, or (iii) with the consent of the Committee, in whole or in part in Common Stock held by the Optionee and valued at Fair Market Value on the date of exercise.   The Option may be exercised only for a whole number of Shares.
8.    Transferability of Option.  Except as provided in the Plan, the Option is not assignable or transferable, in whole or in part, by the Optionee other than by will or by the laws of descent and distribution and, during the lifetime of the Optionee, the Option shall be exercisable only by the Optionee or, in the event of his or her disability, by his or her guardian or legal representative. 
9.    Rights as a Shareholder.  The Optionee shall have no rights of a shareholder with respect to the Shares underlying the Option (including no right to receive dividends or to vote shares) unless and until such Shares are transferred to the Optionee upon the exercise of the Option. 
10.    No Right to Continued Service.  Neither the Plan nor this Agreement shall confer upon the Optionee any right to be retained in any position with the Company or any Subsidiary or Affiliate.  Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company or any Subsidiary or Affiliate to terminate the Optionee’s employment or other service-relationship, at any time, with or without cause.
11.    Plan Terms; Definitions.  This Option is issued under the Plan and governed by its terms.  Except as specifically set forth herein, in the event of any inconsistency in the Plan and this Agreement, the Plan’s terms control.  Any term capitalized herein that is not separately defined shall have the meaning set forth in the Plan. 
12.    Governing Law.  To the extent that Federal laws do not otherwise control, the validity and construction of this Agreement shall be construed and enforced in accordance 

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with the laws of the State of California, but without giving effect to the choice of law principles thereof. 
13.    Withholding of Taxes.  Prior to the issuance of Shares upon the exercise of the Option, the Optionee must make arrangements satisfactory to the Company to pay or provide for any applicable federal, state and local withholding obligations of the Company. The Optionee may satisfy any federal, state or local tax withholding obligation relating to the exercise of the Option by tendering a cash payment or, with the prior consent of the Committee in its sole discretion, by (a) authorizing the Company to withhold Shares from the Shares otherwise issuable to the Participant as a result of the exercise of the Option; provided, however, that no Shares are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (b) delivering to the Company previously owned and unencumbered shares of Common Stock.  The Company has the right to withhold such amounts from any compensation paid to a Participant.
14.    Entire Agreement; Receipt of Documents.  This Agreement and the Plan set forth the entire understanding of the parties hereto and supersede all prior agreements, arrangements, and communications, whether oral or written, pertaining to the subject matter hereof.  The Optionee hereby acknowledges receipt of a copy of the Plan and this Agreement, represents that he or she has read and understands the terms and provisions thereof, and accepts the Option subject to all the terms and conditions of the Plan and this Agreement.
15.    Counterparts.  This Agreement may be executed and delivered in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  This Agreement shall become effective only when counterparts have been executed and delivered by all parties whose names are set forth on the signature page(s) hereof.  Any signature delivered by fax or in pdf format shall have the same force and effect as an original signature.

[Signature Page Follows]

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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its duly authorized officer, and the Optionee has hereunto set his or her hand and seal, all as of the day and year first above written.

OPTIONEE    TURTLE BEACH CORPORATION

____________________________    By:__________________________________
Optionee’s Signature    Title:

____________________________    _____________________________________
Date    Date

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[EXHIBIT A – COPY OF PLAN]Exhibit

Exhibit 10.30

PERSONAL AND CONFIDENTIAL

November 24, 2015

Joe Cleary

Dear Joe,

We are pleased to extend an offer to you to join Turtle Beach Corp. (“TB” or the “Company”) under the terms and conditions as stated below.
	
		
	TITLE:
	Chief Accounting Officer

	REPORTING TO:
	John Hanson, CFO

	START DATE:
	TBD

	COMPENSATION:
	Your base salary will be $250,000 annually, paid in accordance with TB’s normal payroll practices (currently bi-weekly intervals of $9,615.38) and subject to applicable withholdings and deductions.

	PREFORMANCE BONUS:
	You will be eligible for a discretionary target annual Performance Bonus.  Your target incentive is 30% of base salary. Your actual bonus will be based upon a variety of factors including company performance, pro-rated for partial years, and your achieving specified performance criteria to be established and approved with your manager.  In the event that changes are made to any of the Bonus Plans, the changes will apply to you as they do other similarly situated employees of the Company.  
Payment of your bonus will be delivered according to the regular annual incentive plan payout schedule.  An annual bonus shall not be deemed earned by you until the Company has determined your entitlement to such bonus and only if you are employed by the Company (without having given or received notice of the termination of your employment) at the time such bonus is payable in accordance with the Bonus Plan and Company practices.  The Company does not pay pro-rata bonuses upon departure.

	SIGN ON BONUS
	

	VACATION & SICK TIME:
	You will be granted 20 paid days off per year (pro-rated based on your start date for your first year of employment), consisting of 14 vacation and 6 sick days, which are described in and governed by our standard vacation and sick day rules in effect from time to time.  Upon termination of your employment for any reason, you will not be paid for any credited but unused sick days, unless otherwise required by applicable law.

	BENEFITS:
	At your option, and on the 1st of the month following your start date, you will be eligible to participate in our health benefit plans. The employee contribution depends on coverage election and is on a pre-tax basis.  At your option, and on the 1st of the month following your start date, you may participate in the long-term disability and life insurance plans, which require employee contribution depending on coverage election and are on a post-tax basis.  Following 30 days of employment, you may participate in the TB 401k plan.  

	PROPRIETARY INFORMATION AND EMPLOYMENT AGREEMENT:
	Your employment is conditioned upon and you will be required to sign and return the enclosed Proprietary Information and Employment Agreement.

	EQUITY PARTICIPATION:
	You will be entitled to receive a grant of options to purchase 20,000 shares of Turtle Beach Corporation Common Stock, 25% of which will vest on the first anniversary of your first day of employment with the remainder vesting ratably each month over the following three year period, subject to the terms of any applicable agreements that you may be required to sign in connection with such options.

	
		
	REPRESENTATION:
	You represent that you are free to accept employment with TB and have no duties or obligations to any person or entity, by agreement or otherwise, that would prevent or impair you from fully performing your duties and responsibilities to TB.

	POLICIES & PROCEDURES:
	You will be required to comply with TB policies and procedures for employees as they may be in effect from time to time, which include, among other things, your obligations to comply with TB rules regarding confidential and proprietary information and trade secrets, and to furnish accurate and complete information to TB in connection with your application for employment.

	CONFIDENTIALITY:
	You agree not to disclose the terms of this letter to anyone, other than to your immediate family, your tax advisors and legal counsel (provided each such person agrees to maintain the confidentiality of the disclosed terms), or as otherwise required by law.

We look forward to having you join the Company and anticipate a long and mutually beneficial relationship.

Should you accept this offer and begin employment with the Company you retain the right to resign without cause. There is no fixed duration for your employment.  In accepting this offer you acknowledge and agree that your employment with the Company is at will and may be terminated by the Company at any time, with or without notice, and for any or no reason.  In accepting this offer you acknowledge that, apart from this letter (and the Proprietary Information and Employment Agreement), there is not and shall not be any written contract between you and the Company concerning this offer of employment, and that this letter does not guarantee employment for any definite or specific term or duration or at any particular level of benefits or compensation.  As an at will employee, the Company, in its sole discretion, may terminate or amend any of the terms of your employment at any time.  This offer is further conditioned on completion of a satisfactory background check.

By signing and returning this letter you confirm that its contents accurately summarize the current understanding between you and the Company and that you accept and agree to the terms as stated above. 

Sincerely,

Turtle Beach Corporation

Acknowledged & Agreed: /s/ Joe Cleary________________    Date: ______________________
Joe Cleary

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