Document:

Form of Stock Option Agreement for Taiwan Employees

 Exhibit 10.6 
 NEWEGG INC. 
 AMENDED AND RESTATED 2005 INCENTIVE
AWARD PLAN 
 STOCK OPTION AGREEMENT 
 FORM 3: TAIWAN NATIONAL EMPLOYEES BASED IN TAIWAN 
 I. NOTICE OF STOCK OPTION
GRANT 
 Pursuant to the Newegg Inc. Amended and Restated 2005 Incentive Award Plan (the “Plan”), Newegg
Inc. (the “Company”) hereby grants to the Optionee listed below (“Optionee”), an option (the “Option”) to purchase the number of shares of the Company’s Class A Common Stock set forth
below, subject to the terms and conditions of the Plan and this Stock Option Agreement. All capitalized terms used in this Stock Option Agreement without definition shall have the meanings ascribed to such terms in the Plan. 
  

			
	Optionee:	  	[        ]
		
	Date of Grant:	  	[        ]
		
	Vesting Commencement Date:	  	[        ]
		
	Exercise Price per Share:	  	$[        ]
		
	Total Number of Shares Granted:	  	[        ]
		
	Total Exercise Price:	  	$[        ]
		
	Term/Expiration Date:	  	[        ]

  

			
	Vesting Schedule:	 	The Option shall vest according to the following schedule:
		
		 	The Option shall vest and become exercisable with respect to 12.5% of the Shares subject thereto on the first anniversary of the Vesting Commencement Date and with respect to an
additional 12.5% of the Shares subject thereto on each annual anniversary of the Vesting Commencement Date thereafter; provided, however, that in the event that an Acquisition occurs and the Participant ceases to be a Service Provider by
reason of a termination by the Company without Cause (excluding a termination due to the Participant’s Disability) during the twelve-month period immediately following the Acquisition, the Option shall, to the extent not then vested,
immediately become fully vested and exercisable.
		
	Termination Period:	 	Except in the event of a termination of Optionee’s service by the Company for Cause, the Option may be exercised, to the extent vested, for ninety (90) days after
Optionee ceases to be a Service Provider, or such longer period as may be applicable upon the death or disability of

  

					
		 		 	Option Agreement #         

			
		  	Optionee as provided herein (or, if not provided herein, then as provided in the Plan), but in no event later than the Term/Expiration Date as provided above. In the event that
Optionee’s service with the Company is terminated by the Company for Cause, the Option shall terminate without consideration with respect to all Shares subject thereto (whether vested or unvested) upon the date of Optionee’s termination.

 II. AGREEMENT 
 1. Grant of Option. The Company hereby grants to Optionee an Option to purchase the number of Shares set forth in the Notice of Grant,
at the exercise price per Share set forth in the Notice of Grant (the “Exercise Price”). Notwithstanding anything to the contrary anywhere else in this Stock Option Agreement, the Option is subject to the terms, definitions and
provisions of the Plan adopted by the Company, which is incorporated herein by reference. 
 2. Exercise of Option. The
Option is exercisable as follows: 
 (a) Right to Exercise. 
 (i) The Option shall be exercisable cumulatively according to the vesting schedule set forth in the Notice of Grant. For purposes of this
Stock Option Agreement, Shares subject to the Option shall vest based on Optionee’s continued status as a Service Provider. 
 (ii) The Option may not be exercised for a fraction of a Share. 
 (iii) In the event of Optionee’s death,
disability or other termination of Optionee’s status as a Service Provider, the exercisability of the Option shall be governed by Sections 7, 8, 9 and 10 below. 
 (iv) In no event may the Option be exercised after the date of expiration of the term of the Option as set forth in the Notice of Grant.

 (b) Method of Exercise. The Option shall be exercisable by written notice (substantially in the form attached hereto
as Exhibit A). The notice must state the number of Shares for which the Option is being exercised, and contain such other representations and agreements with respect to such Shares as may be required by the Company pursuant to the provisions
of the Plan. The notice must be signed by Optionee and shall be delivered in person or by certified mail to the Secretary of the Company. The notice must be accompanied by payment of the Exercise Price, plus payment of any applicable withholding
tax. The Option shall be deemed to be exercised upon receipt by the Company of such written notice accompanied by the Exercise Price and payment of any applicable withholding tax. 
  

					
		 	2	 	Option Agreement #         

 No Shares shall be issued pursuant to the exercise of an Option unless such issuance and
such exercise comply with all relevant provisions of law and the requirements of any stock exchange upon which the Shares may then be listed. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to Optionee on
the date on which the Option is exercised with respect to such Shares. 
 3. Optionee’s Representations. If the
Shares purchasable pursuant to the exercise of the Option have not been registered under the Securities Act or any applicable state laws at the time the Option is exercised, Optionee shall, if required by the Company, concurrently with the exercise
of all or any portion of the Option, deliver to the Company his or her Investment Representation Statement (in the form attached hereto as Exhibit B) and shall make such other written representations as are deemed necessary or
appropriate by the Company and/or its counsel. 
 4. Lock-Up Period. Optionee hereby agrees that if so requested by the
Company or any representative of a lead underwriter of the Company’s securities (the “Managing Underwriter”) in connection with (a) any registration of the offering of any securities of the Company under the Securities Act
or any applicable state laws, and/or (b) any offering of securities exempt from registration under Rule 144A of the Securities Act by the Company, Optionee shall not sell or otherwise transfer any Shares or other securities of the Company
during the 180-day period (or such longer period as may be requested by the Managing Underwriter or the Company) following (i) the effective date of a registration statement filed by the Company under the Securities Act, or (ii) the date
of consummation of such offering pursuant to Rule 144A. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such 180-day period. 
 5. Method of Payment. Payment of the Exercise Price shall be by (a) cash, (b) check, or (c) with the consent of the
Administrator, (i) a full recourse promissory note bearing interest (at no less than such rate as is a market rate of interest and which then precludes the imputation of interest under the Code), payable upon such terms as may be prescribed by
the Administrator, and structured to comply with applicable law, (ii) other Shares which have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Shares as to which the Option is exercised and which have
been owned by the Optionee for such period of times as is required to avoid adverse accounting consequences to the Company, (iii) surrendered Shares then issuable upon exercise of the Option having a Fair Market Value on the date of exercise
equal to the aggregate Exercise Price of the Option or exercised portion thereof, (iv) property of any kind which constitutes good and valuable consideration, (v) delivery of a notice that Optionee has placed a market sell order with a
broker with respect to Shares then issuable upon exercise of the Option and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option Exercise Price, provided,
that payment of such proceeds is then made to the Company upon settlement of such sale, or (vi) any combination of the foregoing methods of payment. 
  

					
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 6. Restrictions on Exercise. The Option may not be exercised until the Plan has been
approved by the stockholders of the Company. If the issuance of Shares upon such exercise or if the method of payment for such shares would constitute a violation of any applicable U.S. federal or state securities or other foreign or domestic law or
regulation, then the Option may also not be exercised. The Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation before allowing the Option to be exercised.

 7. Termination of Relationship. If Optionee ceases to be a Service Provider (other than by reason of a termination by
the Company for Cause or Optionee’s death or the total and permanent disability of Optionee as defined in Code Section 22(e)(3)), the Option, to the extent vested as of the date on which Optionee ceases to be a Service Provider (taking
into account any vesting that may occur in connection with such termination), shall remain exercisable during the Termination Period set forth in the Notice of Grant. To the extent that the Option is not vested as of the date on which Optionee
ceases to be a Service Provider, or if Optionee does not exercise the Option within the time specified herein, the Option shall terminate. 
 8. Termination for Cause. If Optionee ceases to be a Service Provider by reason of a termination by the Company for Cause, the Option shall terminate upon the date of Optionee’s termination,
regardless of whether the Option is then vested and/or exercisable with respect to any Shares. 
 9. Disability of
Optionee. If Optionee ceases to be a Service Provider as a result of his or her total and permanent disability as defined in Code Section 22(e)(3), the Option, to the extent vested as of the date on which Optionee ceases to be a Service
Provider, shall remain exercisable for twelve (12) months from such date (but in no event later than the expiration date of the term of the Option as set forth in the Notice of Grant). To the extent that the Option is not vested as of the date
on which Optionee ceases to be a Service Provider, or if Optionee does not exercise such Option within the time specified herein, the Option shall terminate. 
 10. Death of Optionee. If Optionee ceases to be a Service Provider as a result of Optionee’s death, the Option, to the extent vested as of the date of death, shall remain exercisable for
twelve (12) months following the date of death (but in no event later than the expiration date of the term of the Option as set forth in the Notice of Grant) by Optionee’s estate or by a person who acquires the right to exercise the Option
by bequest or inheritance. To the extent that the Option is not vested as of the date of death, or if the Option is not exercised within the time specified herein, the Option shall terminate. 
 11. Non-Transferability of Option. The Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner except by will or by the laws of descent or distribution. It may be exercised during the lifetime of Optionee only by Optionee. The terms of the Option shall be binding upon the executors, administrators, heirs, successors and assigns of
Optionee. 
 12. Term of Option. The Option may be exercised only within the term set forth in the Notice of Grant.

  

					
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 13. Restrictions on Shares. Optionee hereby agrees that Shares purchased upon the
exercise of the Option shall be subject to such terms and conditions as the Administrator shall determine in its sole discretion, including, without limitation, restrictions on the transferability of Shares, the right of the Company to repurchase
Shares, the right of the Company to require that Shares be transferred in the event of certain transactions, a right of first refusal in favor of the Company with respect to permitted transfers of Shares, tag-along rights and bring-along rights.
Such terms and conditions may, in the Administrator’s sole discretion, be contained in the Exercise Notice with respect to the Option or in such other agreement as the Administrator shall determine and which Optionee hereby agrees to enter into
at the request of the Company. 
 14. No Right to Employment. Nothing in the Plan or in this Stock Option Agreement shall
confer upon Optionee any right to continue as an Employee, Director or Consultant of the Company or any Parent or Subsidiary, or shall interfere with or restrict in any way the rights of the Company or any Parent or Subsidiary, which are hereby
expressly reserved, to discharge Optionee at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written employment agreement between Optionee and the Company or any Parent or Subsidiary.

 15. Employment Conditions. In accepting the Option, the Optionee acknowledges that: 
 (a) Termination of Service Notice Period. Any notice period mandated under the Applicable Laws shall not be treated as service for
the purpose of determining the vesting of the Option; and the Optionee’s right to receive Shares in settlement of the Option after termination as a Service Provider, if any, will be measured by the date of termination of Optionee as a Service
Provider and will not be extended by any notice period mandated under the Applicable Law. Subject to the foregoing and the provisions of the Plan, the Company, in its sole discretion, shall determine whether the Optionee’s status as a Service
Provider has terminated and the effective date of such termination. 
 (b) Termination of Vesting. The vesting of the
Option shall cease upon, and no portion of the Option shall become vested following, the Optionee’s termination as a Service Provider for any reason except as may be explicitly provided by the Plan or this Stock Option Agreement. Unless
otherwise provided in the Plan or this Stock Option Agreement, the unvested portion of the Option at the time of Optionee’s termination as a Service Provider will be forfeited. 
 (c) Voluntarily Nature of Plan. The Plan is established voluntarily by the Company. It is discretionary in nature and
it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Stock Option Agreement. 
 (d) No Rights to Future Stock Awards. The grant of the Option is voluntary and occasional and does not create any contractual or other right to receive future grants of Options or
other stock awards, or benefits in lieu of Options or other stock awards, even if Options or other stock awards have been granted repeatedly in the past. 
  

					
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 (e) Company Discretion. All decisions with respect to future Option
grants, if any, will be at the sole discretion of the Company. 
 (f) Voluntary Participation. The Optionee
is voluntarily participating in the Plan. 
 (g) Option is not Compensation. The Option is an extraordinary
item that does not constitute compensation of any kind for service rendered to the Company (or any Parent or Subsidiary), and which is outside the scope of the Optionee’s employment contract, if any. In addition, the Option is not part of
normal or expected compensation or salary for any purpose, including, but not limited to, calculating any severance, resignation, termination, redundancy, end-of-service payments, bonuses, long-service awards, pension or retirement benefits or
similar payments. 
 (h) Unknown Value of Underlying Security. The future value of the underlying Security
is unknown and cannot be predicted with certainty. If the Optionee obtains shares upon settlement of the Option, the value of those Shares may increase or decrease. 
 (i) Claims Against the Company. No claim or entitlement to compensation or damages arises from termination of the Option or diminution in value of the Option or Shares acquired upon
settlement of the Option resulting from termination of the Optionee as a Service Provider (for any reason whether or not in breach of the local law) and the Optionee irrevocably releases the Company and each Parent and Subsidiary from any such claim
that may arise. If, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen then, by signing this Stock Option Agreement, the Optionee shall be deemed irrevocably to have waived the Optionee’s
entitlement to pursue such a claim. 
 16. Data Privacy Consent. 
 (a) Scope of Consent. The Optionee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic
or other form, of the Optionee’s personal data as described in this Stock Option Agreement by and among the Company and each Parent and Subsidiary for the exclusive purpose of implementing, administering and managing the Optionee’s
participation in the Plan. 
 (b) Authorization. The Optionee understands that the Company (or any Parent or
Subsidiary) holds certain personal information about the Optionee, including, but not limited to, the Optionee’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary,
nationality, job title, any Shares or directorships held in the Company, details of all awards or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in the Optionee’s favor, for the purpose of
implementing, administering and managing the Plan (the “Data”). The Optionee understands that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients
may be located in the Optionee’s country or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the Optionee’s country. The Optionee understands that he or she may request a list with
the names and addresses of any potential recipients of the Data by contacting

  

					
		 	6	 	Option Agreement #         

 
the Optionee’s Chief Human Resources Officer. The Optionee authorizes the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of
implementing, administering and managing the Optionee’s participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the Optionee may elect to deposit any shares acquired
upon settlement of the Award. The Optionee understands that Data will be held only as long as is necessary to implement, administer and manage the Optionee’s participation in the Plan. The Optionee understands that he or she may, at any time,
view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Optionee’s Chief
Human Resources Officer. The Optionee understands, however, that refusing or withdrawing the Optionee’s consent may affect the Optionee’s ability to participate in the Plan. For more information on the consequences of the Optionee’s
refusal to consent or withdrawal of consent, the Optionee understands that he or she may contact the Optionee’s Chief Human Resources Officer. 
 17. Successors and Assigns. The Company may assign any of its rights under this Stock Option Agreement to single or multiple assignees, and this Stock Option Agreement shall inure to the benefit of
the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Stock Option Agreement shall be binding upon Optionee and his or her heirs, executors, administrators, successors and assigns. 
 18. Interpretation. Any dispute regarding the interpretation of this Stock Option Agreement shall be submitted by Optionee or by the
Company forthwith to the Administrator, which shall review such dispute at its next regular meeting. The resolution of such a dispute by the Administrator shall be final and binding on the Company and on Optionee. Any Chinese translation of this
Stock Option Agreement is provided merely as a convenience to Optionee and such translation shall have no legal effect. The parties expressly agree that this Stock Option Agreement shall be interpreted using the English language only. 
 19. Governing Law; Severability. This Stock Option Agreement shall be governed by and construed in accordance with the laws of the
State of California excluding that body of law pertaining to conflicts of law. Should any provision of this Stock Option Agreement be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain
effective and shall remain enforceable. 
 20. Notices. Any notice required or permitted hereunder shall be given in
writing and shall be deemed effectively given (1) upon personal delivery or (2) upon deposit in the Taiwanese mail by certified mail or upon deposit with an international courier service, with postage and fees prepaid, addressed to the
other party at its address as shown below beneath its signature, or to such other address as such party may designate in writing from time to time to the other party. 
 21. Further Instruments. The parties agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Stock
Option Agreement. 
  

					
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 22. Entire Agreement. The Plan and the Exercise Notice attached hereto as Exhibit A
are incorporated herein by reference. The Plan, the Stock Option Agreement and the Exercise Notice attached as Exhibit A constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the
Company and Optionee with respect to the subject matter hereof. 
 [SIGNATURE PAGE FOLLOWS] 
  

					
		 	8	 	Option Agreement #         

 This Stock Option Agreement may be executed in two or more counterparts, each of which shall
be deemed an original and all of which shall constitute one document. 
  

			
	NEWEGG INC.
		
	By:	 	  

	Name:	 	Joel A. Miller
	Title:	 	Chief Human Resources Officer

 OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE
OPTION HEREOF IS EARNED ONLY BY CONTINUING EMPLOYMENT, DIRECTORSHIP OR CONSULTANCY AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT
NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY’S AMENDED AND RESTATED 2005 INCENTIVE AWARD PLAN WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT, DIRECTORSHIP OR
CONSULTANCY BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S EMPLOYMENT, DIRECTORSHIP OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE AND WITH OR WITHOUT PRIOR
NOTICE. 
 Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and
provisions thereof. Optionee hereby accepts the Option subject to all of the terms and provisions hereof. Optionee has reviewed the Plan and the Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing the
Option and fully understands all provisions of the Option. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or the Option. Optionee
further agrees to notify the Company upon any change in the residence address indicated below. 
  

					
	Dated:                     	 		 	  

		 		 	[Optionee]
			
		 		 	Residence Address:
		 		 	  

		 		 	  

  

					
		 	9	 	Option Agreement #         

 EXHIBIT A 
 NEWEGG INC. 
 2005 INCENTIVE AWARD PLAN

 EXERCISE NOTICE 
 TAIWAN NATIONAL EMPLOYEES BASED IN TAIWAN 
 Newegg Inc. 
 [Address] 
 Attention:
[Title] 
 1. Exercise of Option. Effective as of today,
            ,         , the undersigned (“Optionee”) hereby elects to exercise Optionee’s option to purchase
         shares of the Class A Common Stock (the “Shares”) of Newegg Inc. (the “Company”) under and pursuant to the Newegg Inc. Amended and Restated 2005 Incentive Award Plan
(the “Plan”) and the Stock Option Agreement dated             ,          (the “Option Agreement”). Capitalized
terms used herein without definition shall have the meanings given in the Option Agreement. 
  

					
	Date of Grant:	  	 	                            	  
		
	Number of Shares as to which Option is Exercised:	  			
		
	Exercise Price per Share:	  	$	[        	] 
		
	Total Exercise Price:	  	$	[        	] 
		
	Certificate to be issued in name of:	  	 	                            	  

 2. Representations of Optionee. Optionee acknowledges that Optionee has
received, read and understood the Plan and the Option Agreement. Optionee agrees to abide by and be bound by the terms and conditions of the Plan and the Option Agreement. 
 3. Rights as Stockholder. Until the stock certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the
books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to Shares subject to the Option, notwithstanding the exercise of the
Option. The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date on which the stock
certificate is issued, except as provided in Section 13 of the Plan. 
  

					
		 	A-1	 	

 Optionee shall enjoy rights as a stockholder until such time as Optionee disposes of the
Shares or the Company and/or its assignee(s) exercises the Right of First Refusal or Call Right hereunder. Upon such disposal or exercise, Optionee shall have no further rights as a holder of the Shares so purchased except the right to receive
payment for the Shares so purchased in accordance with the provisions of this Agreement, and Optionee shall forthwith cause the certificate(s) evidencing the Shares so purchased to be surrendered to the Company for transfer or cancellation.

 4. Optionee’s Rights to Transfer Shares. 
 (a) Company’s Right of First Refusal. Before any Shares held by Optionee or any permitted transferee (each, a “Holder”)
may be sold, pledged, assigned, hypothecated, transferred, or otherwise disposed of (including transfer by gift or operation of law and, collectively, “Transfer” or “Transferred”), the Company or its assignee(s) shall have a
right of first refusal to purchase the Shares on the terms and conditions set forth in this Section (the “Right of First Refusal”). 
 (i) Notice of Proposed Transfer. The Holder of the Shares shall deliver to the Company a written notice (the “Notice”) stating: (A) the Holder’s bona fide intention to sell or
otherwise Transfer such Shares; (B) the name of each proposed purchaser or other transferee (“Proposed Transferee”); (C) the number of Shares to be Transferred to each Proposed Transferee; and (D) the bona fide cash price or
other consideration for which the Holder proposes to Transfer the Shares (the “Offered Price”), and the Holder shall offer the Shares at the Offered Price to the Company or its assignee(s). 
 (ii) Exercise of Right of First Refusal. Within thirty (30) days after receipt of the Notice, the Company and/or its
assignee(s) may elect in writing to purchase all, but not less than all, of the Shares proposed to be Transferred to any one or more of the Proposed Transferees. The purchase price will be determined in accordance with paragraph (iii) below.

 (iii) Purchase Price. The purchase price (the “Purchase Price”) for the Shares repurchased under this
Section shall be the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board or the Administrator in good faith. 
 (iv) Payment. Payment of the Purchase Price shall be made, at the option of the Company or its assignee(s), in cash (by check), by
cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination thereof within thirty (30) days after receipt of the Notice or
in the manner and at the times set forth in the Notice. 
 (v) Holder’s Right to Transfer. If all of the Shares
proposed in the Notice to be transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise Transfer such Shares to that Proposed Transferee at
the Offered Price or at a higher price, provided that such sale or other Transfer is consummated within one hundred twenty (120) days after the date of the Notice and provided further that any such sale or other Transfer is effected in
accordance

  

					
		 	A-2	 	

 
with any applicable securities laws and the Proposed Transferee agrees in writing that the provisions of this Section shall continue to apply to the Shares in the hands of such Proposed
Transferee. If the Shares described in the Notice are not Transferred to the Proposed Transferee within such period, a new Notice shall be given to the Company, and the Company and/or its assignees shall again be offered the Right of First Refusal
as provided herein before any Shares held by the Holder may be sold or otherwise Transferred. 
 (b) Exception for Certain
Family Transfers. Anything to the contrary contained in this Section notwithstanding, the Transfer of any or all of the Shares during Optionee’s lifetime or on Optionee’s death by will or intestacy to Optionee’s Immediate Family
(as defined below) or a trust for the benefit of Optionee’s Immediate Family shall be exempt from the Right of First Refusal. As used herein, “Immediate Family” shall mean spouse, lineal descendant or antecedent, father, mother,
brother or sister or stepchild (whether or not adopted). In such case, the transferee or other recipient shall receive and hold the Shares so Transferred subject to the provisions of this Section (including the Right of First Refusal) and there
shall be no further Transfer of such Shares except in accordance with the terms of this Section. 
 (c) Termination of Right
of First Refusal. The Right of First Refusal shall terminate as to all Shares upon the date of the initial sale of Class A Common Stock of the Company to the general public pursuant to a registration statement filed with and declared
effective by the Securities and Exchange Commission under the Securities Act (an “Initial Public Offering”). 
 5.
Company Call Right. 
 (a) If Optionee ceases to be a Service Provider for any reason, the Company shall have the right to
purchase from Optionee, or Optionee’s personal representative, as the case may be, any or all of the Shares then owned by Optionee (and any or all Shares acquired upon exercise of the Option after the date on which Optionee ceases to be a
Service Provider) at a per Share price equal to the Fair Market Value of a Share on the date on which Optionee ceases to be a Service Provider (the “Call Right”). 
 (b) The Company may exercise the Call Right by delivering personally or by registered mail to Optionee (or his transferee or legal
representative, as the case may be), within ninety (90) days after the date on which Optionee ceases to be a Service Provider (or, in the case of Shares which are acquired after the date on which Optionee ceases to be a Service Provider, then
within ninety (90) days after the date on which such Shares are acquired), a notice in writing indicating the Company’s intention to exercise the Call Right and setting forth a date for closing not later than thirty (30) days from the
mailing of such notice. The closing shall take place at the Company’s office. At the closing, the holder of the certificates for the Shares being transferred shall deliver the stock certificate or certificates evidencing the Shares, and the
Company shall deliver the purchase price therefor. 
 (c) At its option, the Company may elect to make payment for the Shares to
a bank selected by the Company. The Company shall avail itself of this option by a notice in writing to Optionee stating the name and address of the bank, date of closing, and waiving the closing at the Company’s office. 
  

					
		 	A-3	 	

 (d) If the Company does not elect to exercise the Call Right conferred above by giving the
requisite notice within the time provided in Subsection (b) above, the Call Right shall terminate. 
 (e) The Call Right
shall terminate as to all Shares upon the date of an Initial Public Offering. 
 6. Lock-Up Period. Optionee hereby
agrees that if so requested by the Company or any representative of a lead underwriter of the Company’s securities (the “Managing Underwriter”) in connection with (a) any registration of the offering of any securities of the
Company under the Securities Act or any applicable state laws, and/or (b) any offering of securities exempt from registration under Rule 144A of the Securities Act by the Company, Optionee shall not sell or otherwise transfer any Shares or
other securities of the Company during the 180-day period (or such longer period as may be requested by the Managing Underwriter or the Company) following (i) the effective date of a registration statement filed by the Company under the
Securities Act, or (ii) the date of consummation of such offering pursuant to Rule 144A. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such 180-day period.

 7. Tax Consultation. Optionee understands that Optionee may suffer adverse tax consequences as a result of
Optionee’s purchase or disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection with the purchase or disposition of the Shares and that Optionee is not relying on
the Company for any tax advice. 
 8. Restrictive Legends and Stop-Transfer Orders. 
 (a) Legends. Optionee understands and agrees that the Company shall cause the legends set forth below or legends substantially similar
thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by state or federal securities laws: 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT AND SUCH LAWS OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS
IN COMPLIANCE THEREWITH. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND RIGHT
OF FIRST REFUSAL OPTIONS HELD BY THE

  

					
		 	A-4	 	

 
ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.
SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES. 
 (b) Stop-Transfer
Notices. Optionee agrees that, in order to ensure compliance with the restrictions set forth herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its
own securities, it may make appropriate notations to the same effect in its own records. 
 (c) Refusal to Transfer.
The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Exercise Notice or the Plan or Option Agreement or (ii) to treat as owner
of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred. 
 9. Successors and Assigns. The Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and this Exercise Notice shall inure to the benefit of the successors
and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Exercise Notice shall be binding upon Optionee and his or her heirs, executors, administrators, successors and assigns. 
 10. Interpretation. Any dispute regarding the interpretation of this Exercise Notice shall be submitted by Optionee or by the Company
forthwith to the Administrator, which shall review such dispute at its next regular meeting. The resolution of such a dispute by the Administrator shall be final and binding on the Company and on Optionee. 
 11. Governing Law; Severability. This Exercise Notice shall be governed by and construed in accordance with the laws of the State of
California excluding that body of law pertaining to conflicts of law. Should any provision of this Exercise Notice be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall
remain enforceable. 
 12. Notices. Any notice required or permitted hereunder shall be given in writing and shall be
deemed effectively given (1) upon personal delivery or (2) upon deposit in the Taiwanese mail by certified mail or upon deposit with an international courier service, with postage and fees prepaid, addressed to the other party at its
address as shown below beneath its signature, or to such other address as such party may designate in writing from time to time to the other party. 
 13. Further Instruments. The parties agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Exercise
Notice. 
  

					
		 	A-5	 	

 14. Delivery of Payment. Optionee herewith delivers to the Company the full Exercise
Price for the Shares, as well as any applicable withholding tax. 
 15. Incorporation by Reference. The Plan and the
Option Agreement are incorporated herein by reference. 
  

							
	Submitted by:	 		 	Accepted by:
			
	OPTIONEE:	 		 	NEWEGG INC.
				
	  
	 		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	
				
	Address:	 		 		 	
				
	  
	 		 		 	
	  
	 		 		 	
	  
	 		 		 	

  

					
		 	A-6	 	

 EXHIBIT B 
 INVESTMENT REPRESENTATION STATEMENT 
  

					
	OPTIONEE	 	:	    	
			
	COMPANY	 	:	    	NEWEGG INC.
			
	SECURITY	 	:	    	CLASS A COMMON STOCK
			
	AMOUNT	 	:	    	
			
	DATE	 	:	    	

 In connection with the purchase of the above-listed shares of Class A Common Stock of Newegg
Inc. (the “Company”), the undersigned (“Optionee”) represents to the Company the following: 
 (a) Optionee
is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities. Optionee is acquiring these Securities for
investment for Optionee’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). 

(b) Optionee acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act and
have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Optionee’s investment intent as expressed herein. Optionee further
understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Optionee further acknowledges and understands that the Company is under
no obligation to register the Securities. Optionee understands that the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such registration is not
required in the opinion of counsel satisfactory to the Company and any other legend required under applicable state securities laws. 
 (c) Optionee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of “restricted securities” acquired, directly or
indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to Optionee, the exercise
will be exempt from registration under the Securities Act. In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer
period as any market stand-off agreement may require) the Securities exempt under Rule 701

  

					
		 	B-1	 	

 
may be resold, subject to the satisfaction of certain of the conditions specified by Rule 144, including: (1) the resale being made through a broker in an unsolicited
“broker’s transaction” or in transactions directly with a market maker (as said term is defined under the Securities Exchange Act of 1934); and, in the case of an affiliate, (2) the availability of certain public information
about the Company, (3) the amount of Securities being sold during any three (3) month period not exceeding the limitations specified in Rule 144(e), and (4) the timely filing of a Form 144, if applicable. 
 In the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Securities may be resold in
certain limited circumstances subject to the provisions of Rule 144, which requires the resale to occur not less than one year after the later of the date the Securities were sold by the Company or the date the Securities were sold by an
affiliate of the Company, within the meaning of Rule 144; and, in the case of acquisition of the Securities by an affiliate, or by a non-affiliate who subsequently holds the Securities less than two (2) years, the satisfaction of the
conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above. 
 (d) Optionee further
understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that,
notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and
otherwise than pursuant to Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such
transactions do so at their own risk. Optionee understands that no assurances can be given that any such other registration exemption will be available in such event. 
 (e) Optionee understands and acknowledges that the Company will rely upon the accuracy and truth of the foregoing representations and Optionee hereby consents to such reliance. 
  

					
		 		  	Signature of Optionee:
			
		 		  	  

			
	Date:             ,         	 		  	

  

					
		 	B-2Employment Agreement--Tally Liu

 Exhibit 10.7 
  

					
	 Newegg Inc.
 Phone: (626) 271-9700
 16839 E Gale Avenue
 City of Industry, CA 91745
	 	 August 1, 2008
	 	
	 	 
	 	 
	 	 

  
 VIA EMAIL &
OVERNIGHT DELIVERY 
 Mr. Tally Liu 
 21328 Sarahills Drive 
 Saratoga, CA 95070 
 Email: tallyliu@gmail.com 
 Re:
Employment Agreement 
 Dear Tally, 
 This offer letters sets forth the terms of your employment (“Agreement”) with Newegg Inc., a Delaware corporation (the “Company” and), is intended to supercede (except as
specifically set forth herein) in its entirety the Employment Agreement, dated January 29, 2008 (the “Prior Agreement”), between you and the Company, and all amendments thereto. The parties to this Agreement shall collectively
be referred to herein as the “Parties”, each a “Party”. Please review this letter carefully. If you accept employment with the Company under the terms and conditions of this Agreement, please sign, date and return
this offer letter to me on or before October 30, 2008, after which this offer will expire and be withdrawn. 
 1.
Position: Effective (retroactively if necessary, to August 1, 2008), your position will be the Chief Executive Officer (the “CEO”) of Newegg, and you shall be employed as such or in such other capacity or
capacities as the Company may from time to time request or prescribe. You shall report to the Board of Directors (the “Board”) or various committees thereof, as appropriate. As long as you are the CEO of the Company and with
the approval of the Board (which may be granted or given at its sole discretion), you shall also serve, without further compensation, as the Chairman of the Board, as the Chair and as a member of the Executive Committee of the Board (the
“Executive Board”), as a member of the Company’s China Region Executive Committee (the “China Regional Executive Committee”) and on such other Board or business unit committees as requested by the Board,
subject to any eligibility requirements or restrictions under law or the Company’s charter documents. This position is classified as a full-time exempt position. However, such classification will not alter the “at will” status of your
employment. If you are an exempt employee, you should expect to work additional hours as required by your assignments. It is expressly agreed and understood, however, that you will not be required to relocate your primary residence from Saratoga,
CA, and that the Company is willing to be flexible with respect to the location from which you perform your duties so long as you satisfactorily perform your duties and responsibilities (as determined at the sole discretion of the Board).

 2. Duties and Responsibilities: You shall perform all services appropriate to the position of CEO, as well as other duties that
may be assigned to you by the Board, from time to time, including, without limitation, the duties and responsibilities set forth on Exhibit A attached hereto. 
 Other than as set forth specifically in this letter and any attached Exhibits, you shall be subject to the direction of the Company Board and any of its duly authorized representatives or agents, and the
Company shall retain full control of the means and methods by which you perform the above services. You shall be expected to travel if necessary or advisable in order to meet the obligations of your position and you shall devote such time, interest
and effort to the performance of duties under this Agreement as may be fairly and reasonably necessary. 
 During your
employment, you shall not, without prior written notice to and consent of Company, which may be granted or withheld at its sole discretion, engage in any of the following: (i) accept any other employment; or (ii) engage, directly or
indirectly, in any other business, commercial or professional activity (whether or not pursued for pecuniary gain) that is or may be in competition with the Company, that might create a conflict of interest with the Company, or that might otherwise
interfere or negatively impact the business of the Company. The Company hereby consents to your continuing participation in all of the activities and engagements listed on Exhibit E attached hereto. You represent and warrant that (i) you
are fully qualified and competent to perform the responsibilities for which you are being hired pursuant to the terms and conditions of this Agreement; and (ii) your execution of this Agreement, employment with the Company, and the performance
of your proposed duties under this Agreement shall not violate any obligations you may have to any former employer, other person or entity, including any obligations with respect to proprietary or Confidential Information of any other person or
entity. You agree to indemnify and hold Company harmless against any and all costs, attorneys’ fees, losses, liabilities and expenses resulting from any claims arising out of, directly or indirectly, or in any way related to your
representations set forth herein, including without limitation any breach thereof

  

 - 1 - 

 3. Start Date: Your employment as CEO shall commence on (or if necessary, be effective
retroactively as of) August 1, 2008 (the “Start Date”). This offer is expressly conditioned upon your supplying information establishing your identity and your authorization to be employed in the United States on or before your
start date, and upon satisfactory completion of all appropriate and lawful reference and backgrounds checks, drug/alcohol testing, review and acknowledgment of the Company’s Employee Handbook, your execution of and acknowledgement of the List
of Prior Inventions attached as Exhibit C hereto, and other customary employment requirements. 
 4. Base Salary: In
consideration for the services rendered under this Agreement, the Company shall pay you a base salary of US$780,000.00 per year (“Base Salary”), less standard withholdings and authorized deductions, payable pursuant to the regularly
established practice of Company, as may be amended from time to time. 
 5. Bonus: You will be eligible to receive a
performance-based cash bonus, subject to and at the Company’s sole discretion and the terms of the Company’s standard executive bonus plan or policy, except that you will be eligible to receive an amount (if the Company determines, at its
sole discretion, to award you a cash bonus) equal to your Base Salary, if the Company meets or exceeds its revenue and EBITDA targets in each annual budget (beginning with the 2008 Newegg corporate budget) approved by the Board during each year you
serve as the CEO of the Company. You understand and agree that except as specified in writing, no bonuses at the Company are guaranteed. 
 You will also be eligible to receive a special cash bonus, payable immediately, of $98,000.00 (“Special Bonus”), in satisfaction of certain of the Company’s obligations to you under
the Board Agreement (as defined below). 
 6. Equity Compensation: 
 a. Repricing of Options. The exercise price of all Options (as defined in the Prior Agreement) you received under the Prior Agreement
shall adjusted (the “Repricing”) to an amount equal to the fair market value of the Company’s Class A Common Stock as determined by the Compensation Committee of the Board (the “Compensation Committee”) and/or
the Board on the date the Compensation Committee and/or the Board approve and/or ratify the Repricing, provided that you agree to enter into and execute any documents, including amendments to or modifications of your Option Agreements (as defined in
the Prior Agreement) requested by the Company necessary to facilitate the Repricing. Your Options shall continue to vest as follows: 
 If you remain a full-time employee of the Company in good standing, on January 1, 2009, 14.3% of the Options shall vest. For each month thereafter, so long as you remain a full-time employee
of the Company in good standing,  1/84th of the Options shall vest such that your Options would be fully
vested if you are still a full-time employee of the Company in good standing on January 1, 2015. 
 b. Director
Grant. In addition to the Options, you shall receive a grant of 50,000 fully-vested options to purchase Class A Common Stock at a price per share equal to the fair market value of such Class A Common Stock on the date of grant, as
determined by the Compensation Committee and/or the Board, in satisfaction of the Company’s obligations to you for your service as the Chair of the Audit Committee of the Board (the “Audit Committee”) as set forth in the
letter, dated as of June 23, 2005 (the “Board Agreement”), by and between you and the Company. You agree that the Director Grant and Special Bonus shall constitute full and complete satisfaction of all of the Company’s
obligations to you under the Board Agreement. 
 c. Annual Discretionary Share Grants. In the event you receive a cash
bonus under Section 5 above, the Company shall also issue you a number of restricted shares of its Class A Common Stock (the “Restricted Shares”) equal to the value of such cash bonus divided by the fair market value of
the Class A Common Stock, as determined by the Compensation Committee and/or the Board on the day such cash bonus is awarded (the “Bonus Date”), subject to your agreement to (i) enter into and execute any restricted share
documents with customary terms and conditions, reasonably requested by the Company, and (ii) forfeit and/or cancel, and permit the Company to cancel, a number of vested options to purchase shares of Class A Common Stock held by you equal
to the Restricted Shares. In addition, the Company will pay you a further amount in cash sufficient to compensate you in full for any tax payments you may incur upon receipt of the Restricted Shares, provided however, that you agree that you shall
have the full obligation to pay any applicable taxes on any sale or transfer of the Restricted Shares. 
 For purposes of
clarity, avoidance of doubt and solely by way of example, if you receive a cash bonus equal to $780,000.00 and the Compensation Committee and/or the Board has determined that the fair market value of the Company’s Class A Common Stock on
the Bonus Date is $10 per share, you will concurrently receive 78,000 shares ($780,000.00/$10) of restricted Class A Common Stock, but the Company will cancel 78,000 of your vested options to

  

 - 2 - 

 
purchase Class A Common Stock. Assuming that you incur approximately $312,000.00 in taxes due to the Restricted Share grant (based on estimated tax rate of 40% of the gross value of the
Restricted Share grant), the Company would have an obligation to make an additional cash payment to you of approximately $520,000.00 such that after paying taxes on such payment, you would receive net cash proceeds equivalent to the amount of tax
you paid on your Restricted Shares. The Company makes no representation, warranty or guarantee as to the actual fair market value of any Company’s shares at any time or appropriate or applicable tax rates. 
 7. Benefits: You shall be entitled to paid time off in accordance with the Company’s standard policies. As you become eligible, you shall
have the right to participate in and receive benefits from all present and future benefit plans specified in the Company’s policies and generally made available to similarly situated employees of the Company, except that you will be eligible
from your Start Date for up to four (4) weeks of Paid Time Off (PTOs). Nothing stated in this Agreement shall prevent the Company from changing or eliminating any benefit during your employment with the Company. All compensation to be paid to
you under this Agreement shall be less withholdings required by law. All reasonable travel and other business expenses incurred in the performance of your duties shall be reimbursed, in accordance with the Company’s policies, as may be amended
in the Company’s sole discretion 
 In addition, the Company will reimburse you up to $1,500 per month for leasing one
automobile for your use when you are in the Los Angeles area, as long as you are employed full-time as the CEO of the Company. 
 Finally, the Company will provide you with a housing allowance of up to $3,500 per month for your use when you are in the Los Angeles area, as long as you are employed full-time as CEO of the Company. 
 8. At-Will Employment: You understand and acknowledge that the Company would like you to serve as the Chairman and CEO of the Company for a
period of ten (10) years from the Start Date You and the Company acknowledge and agree that your employment is for no fixed term and is “at-will.” This means that both you and the Company are free to end the employment relationship at
any time and for any reason, with or without notice, with or without cause and that no reason need be given for such termination. You may resign, and thereby terminate this Agreement at any time, preferably upon giving two (2) weeks written
notice to the Company. The Company may terminate your employment, and thereby terminate this Agreement, at any time, and for any lawful reason. 
 9. Obligations Upon End of Employment: You agree that all property, including, without limitation, all equipment, tangible Confidential Information, as defined below, documents, books, records, reports, notes, drawings,
specifications, contracts, lists, data and copies thereof, created in any medium and furnished to, contained by or prepared by you in the course of or incident to your employment and any other material containing, comprising or disclosing any
Company inventions and third party information belongs to the Company and shall be immediately returned to the Company upon the termination of your employment with the Company. All benefits to which you are otherwise entitled to shall cease upon the
end of your employment, unless explicitly continued either under this Agreement or under any specific written policy or benefit plan of the Company, or as required by law. Upon your departure from the Company, you shall be entitled to receive all
accrued benefits that may be due and payable at the time (but the treatment of your vested Options shall be governed by the Plan and Option Agreements), but shall not be entitled to any severance pay. All Confidential Information, unfair competition
and non-solicitation representations and warranties made under this Agreement shall survive the termination of your employment and this Agreement with the Company Prior to your departure from the Company, you agree to fully cooperate with the
Company in all matters relating to the winding up of pending work on behalf of the Company and facilitate the orderly transfer of work to other employees. In the event that you cease to provide service to the Company, you hereby consent to the
notification of your new employer of your rights and obligations under this Agreement. However, notwithstanding the foregoing, you agree that, unless otherwise agreed to between you and the Company, in the event that your service to the Company is
terminated for any reason, you and the Company shall enter into a standard Company consulting agreement for a period of no less than four (4) months (the “Transition Period”) at a compensation rate to be mutually agreed to
between you and the Company on the date you cease to be employed as the President of the Company, upon your execution and delivery of a standard Company form release and waiver. You agree and acknowledge that you will not accept any employment with
any third party during the Transition Period without the prior written consent of the Company. 
 10. Confidential Information
Definition: “Confidential Information” is all information, past or present, in whatever form, tangible or intangible, pertaining in any manner to the relationship between the Company and any of its former or current
employees. All information not generally known outside of the Company’s organization, and any such information so known only through improper means, shall be deemed Confidential Information. Without limiting the foregoing definition,
Confidential Information shall include, but is not limited to: (i) business, marketing, and strategic plans, customer lists and preferences, supplier information, pricing and costing information, records, documents or any other information of
the Company, or any information which you gained access to through and during your employment, (ii) actions, claims or litigation against the Company, (iii) information regarding the skills and compensation of other employees or service
providers of the Company, and

  

 - 3 - 

 
(iii) any information designated as “Confidential,” “Proprietary” or some other similar designation or which under the circumstances surrounding disclosure ought to be treated
as confidential You shall consult any Company procedures instituted to identify and protect certain types of Confidential Information, which are considered by the Company to be safeguards in addition to the protection provided by this Agreement.
Nothing contained in those procedures or in this Agreement is intended to limit the effect of the other. 
 11. Restrictions on Use or
Disclosure of Confidential Information: During the course of your employment, you shall use and disclose Confidential Information, only for the benefit of the Company and as is necessary to carry out your responsibilities under this
Agreement. Following the end of your employment with the Company, you shall neither, directly or indirectly, use or disclose any Confidential Information, except as expressly and specifically authorized in writing by the Company. You represent and
warrant that you shall hold, in strict confidence, all Confidential Information and shall not disclose such information, directly or indirectly, to anyone outside of the Company, or use, copy, publish, or summarize any Confidential Information,
except to the extent otherwise permitted in this Agreement. You acknowledge that the Company has received and will receive from third parties Confidential Information subject to a duty on the Company’s part to maintain the confidentiality of
such information and to use it only for certain limited purposes. You agree that you owe the Company and such third parties, during the period of employment and thereafter, a duty to hold all such Confidential Information in the strictest confidence
and not to disclose or use it except as necessary to perform your obligations hereunder and as is consistent with the Company’s agreement with such third parties. 
 12. Ownership of Inventions: You agree that all copyrightable material, notes, records, inventions, improvements, developments, discoveries and trade secrets, whether or not patentable,
conceived, made or discovered by you in while rendering services for the Company, solely or in collaboration with others, while employed by the Company (collectively, “Inventions”) shall be the sole property of Company. In addition, to the
extent allowed by law, any Inventions which constitute copyrightable subject matter shall be considered “works made for hire” as that term is defined in the United States Copyright Act. You further agree to assign (or cause to be assigned)
and do irrevocably hereby assign fully to Company all such Inventions and any copyrights, patents or other intellectual property rights relating thereto. Pursuant to California Labor Code Section 2872, this covenant shall not apply to an
invention that qualifies fully under the provisions of Section 2870 of the California Labor Code, as explained in the Invention Assignment Notice attached hereto as Exhibit D. You acknowledge that all unpatented inventions, discoveries,
improvements, works of authorship or works made for hire, which were owned and controlled by you on the date of entering employment with Company have been listed by you on Exhibit C which is attached to this Agreement. Upon the termination of
your employment, or upon the earlier request of Company, you will immediately deliver to Company all property of Company relating to, and all tangible embodiments of, Inventions in your possession or control. You agree to assist Company, or its
designee, at the expense of Company, to obtain and from time to time enforce and defend the rights of Company in the Inventions and any copyrights, patents or other intellectual property rights relating thereto in any and all countries, and to
execute all documents reasonably necessary for Company to do so. You further agree that, if in the course of performing your services for the Company, you incorporate into any Inventions developed hereunder any invention, improvement, development,
concept, discovery or other proprietary information owned by him or in which you have an interest (“Item”), Company is hereby granted and shall have a nonexclusive, royalty-free, perpetual, irrevocable, worldwide license to make, have
made, modify, reproduce, display, use and sell such Item as part of or in connection with such Inventions. You further agree that if Company, after reasonable effort, is unable because of your unavailability, mental or physical incapacity, or for
any other similar reason, to secure your signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering the Inventions assigned to Company above, then you hereby irrevocably designate
and appoint Company and its duly authorized officers and agents as your agent and attorney-in-fact, to act for and on your behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the
prosecution and issuance of patents and copyright registrations thereon with the same legal force and effect as if executed by you. 
 13.
Unfair Competition: During the course of your employment, you will have access to trade secrets and Confidential Information pertaining to the Company, its products, customers, and its methods of doing business. You shall have access
to confidential records and data pertaining to the Company’s customers and to the relationship between these customers and the Company. Such information is considered secret and is disclosed to you in confidence. During your employment by the
Company and/or subsequent to termination of your employment with the Company for any reason, you shall not directly or indirectly disclose or use any such information, or assist or facilitate such disclosure or use by any unauthorized third party
except as required in the course of your employment and as authorized by the Company. 
 14. Non-Solicitation: You acknowledge and
agree that the Company has expended and will continue to expend significant time, effort and resources in the hiring, training and development of an unusual and extraordinary workforce whose identities and abilities the Employee would not know of or
learn but for your relationship with the Company. You further acknowledge and agree that you possess and will continue to receive valuable Confidential Information of the Company (as defined above) and exposure to service providers and customers and
potential customers of the Company. Therefore, during your employment and for a two (2) year period after the end of your employment with the Company, you shall not either, directly or indirectly, alone or 
  

 - 4 - 

 
In association with others: (i) solicit, encourage or induce any employees or consultants of the Company or any of its subsidiaries or affiliates to terminate their employment with or service to
the Company, or otherwise to leave the Company for any reason, or (ii) directly or indirectly use Company Confidential Information to solicit business from or perform services for any customer, vendor, supplier, partner, licensee or business
relation of Company or any of its subsidiaries or affiliates, or induce or attempt to induce any such individual or entity to cease doing business with the Company or in any way interfere with the relationship between any such individual or entity
and the Company. 
 15. Dispute Resolution: You understand and agree that you will settle any and all previously unasserted
claims, disputes or controversies arising out of or relating to your application or candidacy for employment, employment and/or cessation of employment with the Company or against any of its current and former officers, directors, employees,
attorneys and agents, exclusively by final and binding arbitration in Los Angeles, California by the American Arbitration Association (“AAA”) under the then current AAA rules related to employment disputes, before a single neutral
arbitrator mutually agreed to by the Parties. You understand that any and all claims or disputes the Company has against you arising from your application or candidacy for employment, employment and/or cessation of employment will also be subject to
binding arbitration, with the exception of: (i) claims for Workers’ Compensation or Unemployment Compensation Benefits, (ii) petitions to a court of competent jurisdiction upon the showing of reasonable cause for immediate injunctive
relief; (iii) administrative claims before the Department of Fair Employment and Housing or the United States Equal Employment Opportunity Commission and the Department of Labor Standards Enforcement; and (iv) any other matters which as a
matter of law cannot be subject to resolution through arbitration. 
 You understand and agree that such claims subject to
arbitration include, but are not limited to, any claims for violation of any alleged contact, express or implied; any covenant of good faith and fair dealing, whether express or implied; any tort; any federal, state, or local statute or regulation,
including but not limited to the Federal Fair Labor Standards Act, the California Labor Code and the California Industrial Welfare Commission Orders; any federal, state, or local statute or regulation based on or related to the Age Discrimination in
Employment Act, the California Fair Employment and Housing Act (Government Code sections 12900-12996); Title VII, Civil Rights Act of 1964 (42 U.S.C. sections 2000-2000(e)-1-17); the Americans with Disabilities Act; the Federal Family Medical Leave
Act; and the California Family Rights Act. 
 To start the arbitration process, either Company or you must submit a written
arbitration request to the other. The arbitration demand shall set forth the basis and nature of all claims being asserted and must be made within the timeframe authorized by the applicable statute of limitations to make such claims under applicable
law. The fees of the arbitrator and all other costs that are unique to arbitration shall be paid by the Company. Each party shall be solely responsible for paying its own costs for the arbitration including but not limited to its own attorneys’
fees and expert witness fees, and any costs or fees that the parties would ordinarily be responsible for paying in a judicial proceeding. However, if either party prevails on a statutory claim which affords the prevailing party their attorneys’
fees or where there is a written agreement providing for such fees, the arbitrator may award reasonable attorneys’ fees to the prevailing party. The arbitrator shall have the authority to award any damages authorized by law. The award of the
arbitrator shall be in writing and shall contain the arbitrator’s factual findings, legal conclusions and reasons for the award and shall be final and binding and may be entered as a judgment in any court with jurisdiction over either the
Company or me. Both parties agree to keep the fact of, findings and award of arbitration, if any, confidential and will execute all necessary documents thereto. This Arbitration provision applies to any dispute involving the Company as well as any
of its parent, subsidiary or affiliated companies, successors and assigns, employees, officers and agents. This agreement, including and any claims brought pursuant to this arbitration provision, shall be governed and construed in accordance with
the laws of the State of California. 
 16. Notice: Any notice under this Agreement must be in writing and shall be effective upon
delivery by hand, upon facsimile transmission to the number provided below or three (3) business days after deposit in the United States mail, postage prepaid, certified or registered, and addressed to the Company or to you at the corresponding
address below. You shall be obligated to notify the Company in writing of any change in your address. Notice of change of address shall be effective only when done in accordance with this section. 
 Company’s Notice Address: 
 Newegg Inc. 
 16839 E. Gale Avenue 
 City of Industry, CA 91745 
 (626) 271-9700 x.22015 phone 
 (626) 271-9463 fax 
 Attention: General Counsel 
 Your Notice Address: 
 21328
Sarahills Drive 
 Saratoga, CA 95070 
 Phone: (408) 506-1633 
 Attention:  Tally Liu 
  

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 17. Miscellaneous: All actions required or permitted to be taken under this Agreement by the
Company, including, without limitation, exercise of discretion, consents, waivers and amendments to this Agreement, shall be made and authorized in writing only by a representative of the Company specifically authorized. This Agreement constitutes
the entire agreement between the Parties hereto pertaining to the subject matter hereof, and all prior or contemporaneous agreements, representations, negotiations and understandings of the Parties hereto, oral or written, are hereby superseded and
merged herein, except for the indemnification agreement between you and the Company that is currently in effect. No modification of or amendment to this Agreement will be effective except by an instrument in writing, signed by each of the Parties.
Any waiver by one party hereto of breach of any provision of this Agreement by the other must be agreed to by both parties in writing and shall not operate or be construed as a continuing waiver. Any failure or neglect by either party to enforce any
of the provisions hereof shall not be construed nor shall be deemed to be a waiver of such party’s rights hereunder nor in any way affect the validity of the whole or any part of this Agreement. Employee may not assign, sell, transfer, delegate
or otherwise dispose of any rights or obligations under this Agreement. Any such assignment, sale, transfer, delegation or other disposal shall be null and void. Nothing in this Agreement shall prevent the consolidation of the Company with, or its
merger into, any other entity, or the sale by the Company of all or substantially all of its assets, or the otherwise lawful assignment by the Company of any rights or obligations under this Agreement. Subject to the foregoing, this Agreement shall
be binding upon and shall inure to the benefit of the Parties and their respective heirs, legal representatives, successors, and permitted assigns, and shall not benefit any person or entity other than those specifically enumerated in this
Agreement. In the event that any section, sub-section or other provision contained in this Agreement, for any reason, is determined and held to be invalid, unlawful or unenforceable to any extent, such section, sub-section or other provision shall
to that extent be severed from this Agreement and the validity and enforceability of any remaining provisions of this Agreement shall not be affected and shall remain in full force and effect to the maximum extent permissible by law. Moreover, if
any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to
the extent compatible with the applicable law as it shall then appear. This Agreement reflects the negotiated agreement of the Parties. Accordingly, this Agreement shall be construed as if both Parties jointly prepared it, and no presumption against
one Party or the other shall govern the interpretation or construction of any of the provisions of this Agreement. You acknowledge that you have read and understand this Agreement, that you are fully aware of its legal effect, and that you have
entered into it freely and voluntarily and based on your own judgment and not on any representations or promises other than those contained in this Agreement. This Agreement may be signed in two counterparts, with each deemed an original and both of
which shall together constitute one and the same agreement. 
  

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