Document:

Form of Indemnification Agreement for Directors and Officers

 Exhibit 10.17 
 INDEMNITY AGREEMENT 
 This Indemnity Agreement
(“Agreement”) is being executed on ______________, 2009 and is effective as of September 28, 2009, by and between Newegg Inc., a Delaware corporation (the “Company”), and ______________
(“Indemnitee”). 
 RECITALS 
 WHEREAS, highly competent persons have become more reluctant to serve corporations as directors or in other capacities unless they are provided with adequate protection through insurance or adequate
indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation; 
 WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing
basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based
corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors,
officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only
against the Company or business enterprise itself. The Certificate of Incorporation and Bylaws of the Company require indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant to the
General Corporation Law of the State of Delaware (“DGCL”). The Certificate of Incorporation and Bylaws of the Company and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and
thereby contemplate that contracts may be entered into between the Company and members of the Board, officers and other persons with respect to indemnification; 
 WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons; 
 WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best
interests of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future; 
 WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on
behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; 
 WHEREAS, this Agreement is a supplement to and in furtherance of the Certificate of Incorporation and Bylaws of the Company and any
resolutions adopted pursuant thereto, and

 
shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and 
 WHEREAS, Indemnitee does not regard the protection available under the Company’s Certificate of Incorporation and Bylaws and insurance as adequate in the present circumstances, and may not be willing
to serve as a director and/or officer without adequate protection, and the Company desires Indemnitee to serve in such capacity or capacities. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of
the Company on the condition that he or she be so indemnified; 
 NOW, THEREFORE, in consideration of the premises and the
covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows: 
 Section 1. Services to the
Company. Indemnitee agrees to serve as a director and/or officer of the Company. Indemnitee may at any time and for any reason resign from any such position (subject to any other contractual obligation or any obligation imposed by operation
of law), in which event the Company shall have no obligation under this Agreement to continue to allow Indemnitee to serve in such position. This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or
any Enterprise) and Indemnitee. Indemnitee specifically acknowledges that Indemnitee may be removed as a director or discharged as an officer at any time for any reason, with or without cause, in accordance with the Company’s Certificate of
Incorporation, its Bylaws, the DGCL and any agreement between Company and Indemnitee. The foregoing notwithstanding, this Agreement shall continue in force after Indemnitee has ceased to serve as a director and/or officer of the Company. 

Section 2. Definitions. As used in this Agreement: 
 (a) A “Change in Control” shall be deemed to occur upon the earliest to occur after the date of this
Agreement of any of the following events: 
 (i) Acquisition of Stock by Third Party. Any Person (as defined
below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities;

 (ii) Change in Board of Directors. During any period of two (2) consecutive years (not including any
period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a
transaction described in Sections 2(a)(i), 2(a)(iii) or 2(a)(iv)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office
who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a least a majority of the members of the Board; 
  

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 (iii) Corporate Transactions. The effective date of a merger or
consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving entity) more than 51% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and
with the power to elect at least a majority of the board of directors or other governing body of such surviving entity; 
 (iv) Liquidation. The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; and 

(v) Other Events. There occurs any other event of a nature that would be required to be reported in response to
Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.

 For purposes of this Section 2(a), the following terms shall have the following meanings: 
 (A) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(B) “Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the
Exchange Act; provided, however, that Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company and (iii) any corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company. 
 (C) “Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise
becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity. 
 (b) “Corporate Status” describes the status of a person who is or was a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of the Company or of any other corporation, partnership or
joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the Company. 
  

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 (c) “Disinterested Director” means a director of the Company who is not and
was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee. 
 (d)
“Enterprise” shall mean the Company and any other corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the
Company as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary. 
 (e)
“Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage,
delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise
participating in, a Proceeding. Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas
bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee. 
 (f) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law
and neither presently is, nor in the past five (5) years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this
Agreement, or of other indemnitees under similar indemnification agreements) or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel”
shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under
this Agreement. The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to
this Agreement or its engagement pursuant hereto. 
 (g) The term “Proceeding” shall include any threatened,
pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise
and whether of a civil, criminal, administrative or investigative nature, including any appeal therefrom, in which Indemnitee was, is or will be involved as a party, a potential party, a non-party witness or otherwise by reason of the fact that
Indemnitee is or was a director or officer of the Company, by reason of any action taken by him or of any action or inaction on his part while acting as director or officer of the Company, or by reason of the fact that he is or was serving at the
request of the Company as a director, trustee, general partner, managing member, officer, employee or agent of another corporation, partnership, joint venture, trust or fiduciary of the Company or any other enterprise, in each case whether or not
serving in such capacity at the time any liability or expense is incurred for which

  

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indemnification, reimbursement, or advancement of expenses can be provided under this Agreement. 
 (h) Reference to “other enterprise” shall include employee benefit plans; references to “fines” shall include any excise tax assessed with respect to any employee benefit
plan; references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or
agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit
plan shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement. 
 Section 3. Indemnity in Third-Party Proceedings. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a
party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified against all Expenses, judgments, fines and
amounts paid in settlement actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or
not opposed to the best interests of the Company and, in the case of a criminal proceeding had no reasonable cause to believe that his conduct was unlawful. 
 Section 4. Indemnity in Proceedings by or in the Right of the Company. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is
threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. No
indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that the
Delaware Court of Chancery or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled
to indemnification. 
 Section 5. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provisions of this Agreement, to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole
or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to
one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully

  

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resolved claim, issue or matter. If the Indemnitee is not wholly successful in such Proceeding, the Company also shall indemnify Indemnitee against all Expenses actually and reasonably incurred
in connection with a claim, issue or matter related to any claim, issue, or matter on which the Indemnitee was successful. For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by
dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 
 Section 6.
Indemnification For Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be
indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith. 
 Section 7.
Additional Indemnification. 
 (a) Notwithstanding any limitation in Sections 3, 4, or 5, the
Company shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee is a party to or threatened to be made a party to or a participant in any Proceeding (including a Proceeding by or in the right of the Company to procure a
judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee in connection with the Proceeding. 
 (b) For purposes of Section 7(a), the meaning of the phrase “to the fullest extent permitted by
law” shall include, but not be limited to: 
 (i) to the fullest extent permitted by the provision of
the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL; and 
 (ii) to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date
of this Agreement that increase the extent to which a corporation may indemnify its officers and directors. 
 Section 8.
Exclusions. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against Indemnitee: 
 (a) for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity
provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision, except (i) to the extent that amounts are thereafter “clawed back” or otherwise under dispute and
(ii) as may be otherwise agreed upon by the Company in writing; 
 (b) for an accounting of profits made
from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory law or common law; or

  

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 (c) in connection with any Proceeding (or any part of any Proceeding) initiated by
Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of the
Proceeding) prior to its initiation (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law or (iii) such Proceeding is initiated by Indemnitee to enforce his
rights under this Agreement. 
 Section 9. Advances of Expenses. Notwithstanding any provision of this Agreement to the
contrary, the Company shall advance the expenses incurred by Indemnitee in connection with any Proceeding within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances from time to time (which
shall include invoices received by Indemnitee in connection with such Expenses but, in the case of invoices in connection with legal services, any references to legal work performed or to expenditures made that would cause Indemnitee to waive any
privilege accorded by applicable law shall not be so included), whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s ability to repay
the expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement. Advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of
advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed. The Indemnitee shall qualify for advances upon the execution and delivery to the Company of this Agreement which
shall constitute an undertaking providing that the Indemnitee undertakes to repay the advance to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company. This Section 9 shall not apply to any
claim made by Indemnitee for which indemnity is excluded pursuant to Section 8. 
 Section 10. Procedure for
Notification and Defense of Claim. 
 (a) To obtain indemnification under this Agreement, Indemnitee shall
submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to
indemnification, not later than thirty (30) days after receipt by Indemnitee of notice of the commencement of any Proceeding. The failure by Indemnitee to notify the Company will not relieve the Company from any liability which it may have to
Indemnitee hereunder or under any other agreement (including, without limitation, the Company’s Certificate of Incorporation and Bylaws), and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights
hereunder, except to the extent (solely with respect to the indemnity hereunder) that such failure or delay materially prejudices the Company. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise
the Board in writing that Indemnitee has requested indemnification. 
 (b) The Company will be entitled to
participate in the Proceeding at its own expense. 
 Section 11. Procedure Upon Application for Indemnification.

  

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 (a) Upon written request by Indemnitee for indemnification pursuant to the
first sentence of Section 10(a), a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case: (i) if a Change in Control shall have occurred, by
Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee or (ii) if a Change in Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a
quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such
Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Board, by the stockholders of the Company; and, if it is so determined
that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to
Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is
reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such
determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. 
 (b) In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to
Section 11(a) hereof, the Independent Counsel shall be selected as provided in this Section 11(b). If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board, and the Company shall
give written notice to Indemnitee advising him of the identity of the Independent Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such
selection be made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or the
Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however,
that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this Agreement, and the objection shall set
forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected
may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit. If, within twenty (20) days after submission by Indemnitee of a written request for
indemnification pursuant to Section 10(a) hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which
shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Court or by such other person as the Court shall designate, and the
person with respect to whom all objections are so resolved or the person so appointed shall act as

  

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Independent Counsel under Section 11(a) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 13(a) of this Agreement,
Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing). 
 Section 12. Presumptions and Effect of Certain Proceedings. 
 (a) In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity
making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company
shall have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of the Company (including by its directors or
independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an
actual determination by the Company (including by its directors or independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the
applicable standard of conduct. 
 (b) If the person, persons or entity empowered or selected under
Section 11 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination
of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make
Indemnitee’s statement not materially misleading, in connection with the request for indemnification or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for
a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or
evaluating of documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 12(b) shall not apply (i) if the determination of entitlement to indemnification is
to be made by the stockholders pursuant to Section 11(a) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board has resolved to submit such
determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called
within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat or (ii) if the
determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 11(a) of this Agreement. 
 (c) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except
as otherwise expressly provided in this Agreement) of itself adversely affect the

  

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right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests
of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful. 
 (d) Reliance as Safe Harbor. For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of
account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records
given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Enterprise. The provisions of this Section 12(d) shall not be deemed to be
exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement. 
 (e) Actions of Others. The knowledge and/or actions, or failure to act, of any director, officer, agent or employee
of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. 
 Section 13. Remedies of Indemnitee. 
 (a) In the event that (i) a determination is made
pursuant to Section 11 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement, (iii) no
determination of entitlement to indemnification shall have been made pursuant to Section 11(a) of this Agreement within forty-five (45) days after receipt by the Company of the request for indemnification, (iv) payment of
indemnification is not made pursuant to Section 5 or 6 or the last sentence of Section 11(a) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, (v) payment of
indemnification pursuant to Section 3, 4 or 7 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or (vi) the Company or any other person or
entity takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be
provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court, selected pursuant to Section 22, to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his option, may seek an award in
arbitration to be conducted by a single arbitrator through the Judicial Arbitration and Mediation Service (“JAMS”). Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the
date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 13(a); provided, however, that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce his
rights under Section 5 of this Agreement. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration. 
 (b) In the event that a determination shall have been made pursuant to Section 11(a) of this Agreement that
Indemnitee is not entitled to indemnification, any judicial

  

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proceeding or arbitration commenced pursuant to this Section 13 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be
prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 13 the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement
of Expenses, as the case may be. 
 (c) If a determination shall have been made pursuant to Section 11(a) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 13, absent (i) a misstatement by Indemnitee of a material fact,
or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification or (ii) a prohibition of such indemnification under applicable law. 
 (d) The Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 13 that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. The Company shall indemnify
Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefore) advance such Expenses to Indemnitee, which are incurred by Indemnitee in
connection with any action brought by Indemnitee for indemnification or advancement of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company, regardless
of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of Expenses or insurance recovery, as the case may be. 
 Section 14. Non-exclusivity; Survival of Rights; Insurance; Subrogation. 
 (a) The rights of
indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s Certificate of
Incorporation, the Company’s Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of
Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision,
permits greater indemnification or advancement of Expenses than would be afforded currently under the Company’s Certificate of Incorporation, Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this
Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

 (b) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers,
employees, or agents of the Company or of

  

 11 

 
any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such
policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant
to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective
policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies. 

(c) In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to
all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such
rights. 
 (d) The Company shall not be liable under this Agreement to make any payment of amounts otherwise
indemnifiable (or for which advancement is provided hereunder) hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise except (i) to the extent
that amounts are thereafter “clawed back” or otherwise under dispute and (ii) as may be otherwise agreed upon by the Company in writing. 
 (e) The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, employee or agent of any other
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise. 
 Section 15. Duration of Agreement. This Agreement shall
continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director and/or officer or (b) one (1) year after the final termination of any Proceeding then
pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding (including any appeal) commenced by Indemnitee pursuant to Section 13 of this Agreement relating thereto.
This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his heirs, executors and administrators. The Company shall require and shall cause any successor (whether direct or
indirect by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company to, by written agreement, expressly assume and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform if no such succession had taken place. 
 Section 16. Severability. If any
provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without
limitation,

  

 12 

 
each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any
way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum
effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby. 
 Section 17. Enforcement. 
 (a) The Company expressly
confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director and/or officer of the Company, and the Company acknowledges that Indemnitee is relying
upon this Agreement in serving as a director and/or officer of the Company. 
 (b) This Agreement constitutes
the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof,
including but not limited to that certain ________________________ dated _______________. 
 Section 18. Modification and
Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the parties thereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions of this Agreement nor shall any waiver constitute a continuing waiver. 
 Section 19. Notice by Indemnitee.
Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or
advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise. 
 Section 20. Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be
deemed to have been duly given (a) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (b) mailed by certified or registered mail with postage prepaid, on the third
business day after the date on which it is so mailed: 
 (a) If to Indemnitee, at the address indicated on the
signature page of this Agreement, or such other address as Indemnitee shall provide to the Company. 
 (b) If to
the Company to: 
 Newegg Inc. 
 16839 East Gale Avenue 
 City of Industry, CA 91745 
  

 13 

 or to any other address as may have been furnished to Indemnitee by the Company. 
 Section 21. Contribution. To the fullest extent permissible under applicable law, if the indemnification provided for in this
Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be
paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to
reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding and/or (ii) the relative fault of the Company (and its directors, officers,
employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s). 
 Section 22. Applicable Law
and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except
with respect to any arbitration commenced by Indemnitee pursuant to Section 13(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection
with this Agreement shall be brought only in the Superior Court of the State of California (the “California Court”), and not in any other state or federal court in the United States of America or any court in any other country,
(ii) consent to submit to the exclusive jurisdiction of the California Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action
or proceeding in the California Court and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the California Court has been brought in an improper or inconvenient forum. 
 Section 23. Coverage. This Agreement shall apply with respect to Indemnitee’s service as a director and/or officer of the
Company prior to the date of this Agreement. 
 Section 24. Identical Counterparts. This Agreement may be executed in one
or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs
to be produced to evidence the existence of this Agreement. 
 [Remainder of page intentionally left blank] 
  

 14 

 Section 25. Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of
the feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof. 
 IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written. 
  

			
	NEWEGG INC.
		
	By:	 	 
		
	 Name:
 Title:
	 	

  
  

	
	INDEMNITEE
	
	 
	
	 Name:
 Address:

  

 15Call Option Agreement

 Exhibit 10.19 
 Call Option Agreement 
 THIS CALL OPTION AGREEMENT
(this “Agreement”) is entered into as of November     , 2006 by and among Newegg Inc. (“Newegg Inc.”), a Delaware corporation, Tekhill Information Technologies (Shanghai) Inc.
(“Tekhill”), a wholly foreign-owned enterprise organized under the laws of the People’s Republic of China (“PRC”),              (“Shareholder
A”) and              (“Shareholder B”). 
 Shareholder A and Shareholder B (the “Shareholders”) are each PRC citizens, with identification cards and permanent PRC residence information as set forth on Exhibit A attached hereto. 
 RECITALS 
  

	1.	Shareholder A and Shareholder B respectively hold 51% and 49% of the equity interest in Shanghai Newegg E-Business Co., Ltd., a limited liability company organized
under the laws of the PRC (the “Domestic Co”). 

  

	2.	All of the equity interests of the Domestic Co, as may be increased from time to time, is owned entirely by the Shareholders (the “Equity
Interest”). 

  

	3.	In connection with the establishment and funding of the Domestic Co, the Shareholders have incurred or may incur certain indebtedness from Newegg Inc. or its
subsidiaries or affiliates (the “Indebtedness”). 

  

	4.	The Shareholders and Tekhill are executing an equity pledge agreement (the “Equity Pledge Agreement”) on even date hereof, pursuant to which the
Shareholders will pledge the Equity Interest to Tekhill so as to ensure the performance of the obligations of the Shareholders under this Agreement and certain other agreements referenced in the Equity Pledge Agreement. 

  

	5.	The Shareholders wish to, subject to the terms and conditions of this Agreement, irrevocably grant Newegg Inc. and Tekhill (each individually, and collectively,
“Newegg”) a call option to request that the Shareholders transfer (subject to applicable PRC laws) any part or all of the Equity Interest exclusively to Newegg and/or its designee(s). 

  

	6.	Newegg wishes to accept such option from the Shareholders in accordance with the terms of this Agreement. 

 NOW, THEREFORE, in consideration of the representations, warranties and covenants set forth
herein, Newegg and the Shareholders (each a “Party,” and collectively, the “Parties”) hereby agree as follows: 
 Article 1 Grant of Option 
  

	1.1	Subject to the terms of this Agreement, the Shareholders hereby voluntarily, irrevocably and exclusively grant Newegg a call option to request the Shareholder(s) to
transfer, at Newegg’s sole discretion, exclusively to Newegg and/or its designee(s), any part or all of the Equity Interest according to the terms and conditions set forth in this Agreement (the “Option”), at any time and using
any lawful methodology, as directed by Newegg. Newegg hereby agrees to accept the Option. 

  

	1.2	Newegg and/or its designee(s) shall have the exclusive and irrevocable right, subject to the terms and conditions of this Agreement and PRC law, to exercise the Option
at any time during the term of this Agreement. Newegg shall have the sole discretion to decide whether any part or all of the Equity Interest shall be transferred to Newegg and/or to its designee(s) in accordance PRC law and this Agreement.

  

	1.3	Newegg and/or its designee(s) are entitled to exercise the Option in whole or in part and on one or more occasions pursuant to this Agreement. 

 

	1.4	The obligations and liabilities of the Shareholders set forth hereunder are several and not joint. 

 Article 2 Transfer of Equity Interest 
  

	2.1	Should Newegg request that the Shareholder(s) transfer any part or all of the Equity Interest, the Shareholder(s) shall transfer to Newegg and/or its designee(s) any
part or all of the Equity Interest as instructed by Newegg and according to the terms and conditions set forth in this Agreement. 

 Article 3 Time of Transfer 
  

	3.1	The transfer of any part or all of the Equity Interest hereunder shall be effected at a time determined by Newegg at its sole discretion by delivering to the
Shareholder(s) a written notice, substantially in the form as set forth on Exhibit B attached hereto (the “Exercise Notice”). To the extent permitted under PRC law, Newegg may request at any time that the Shareholder(s)
transfer any part or all of the Equity Interest to Newegg and/or its designee(s). 

  

	3.2	Upon the Shareholders’ receipt of such Exercise Notice, the Equity Interest shall be transferred pursuant to the terms thereof, and the proposed equity transfer
agreement and power of attorney (substantially in the form as set forth in Exhibit C and Exhibit D attached hereto respectively) to be entered into separately between the Parties. In addition, at the direction of Newegg, the
Shareholder(s) shall also (and hereby agree to) promptly execute all relevant documents necessary to effect such transfer and cooperate with the transferee(s) of any part or all of the Equity Interest to handle all other statutory formalities for
and in connection with such transfer. 

  

 -2- 

 Article 4 Formalities for Transfer 
  

	4.1	The Shareholder(s) shall, upon Newegg’s request, cause the Domestic Co to handle, in a reasonable and timely manner, all relevant formalities for and in connection
with examination and approval of the transfer of any part or all of the Equity Interest hereunder with competent approval authorities, including but not limited to, competent telecommunications and foreign trade and economic cooperation approval
authorities, in accordance with the relevant PRC laws and regulations. 

  

	4.2	The Shareholder(s) shall cause the Domestic Co to handle, in a reasonable and timely manner and upon obtaining the approval documents described in Section 4.1
above, all formalities regarding change of registration with the original registration authority of the Domestic Co in connection with the transfer of any part or all of the Equity Interest hereunder in accordance with relevant PRC laws and
regulations. 

  

	4.3	The Shareholder(s) shall provide, in a reasonable and timely manner, all necessary assistance and cooperation with regard to the handling of formalities for the
examination and approval of the transfer of any part or all of the Equity Interest hereunder and change of registration of the Domestic Co as specified in Section 4.1 and Section 4.2 above, including without limitation, signing all
necessary legal documents pertinent to such formalities as required by competent government agencies. 

 Article 5
Consideration for Transfer 
  

	5.1	The consideration for the transfer of any part or all of the Equity Interest by the Shareholder(s) to Newegg and/or its designee(s) shall be payment by Newegg to the
Shareholder(s) of the value of the portion of the Equity Interest in question, the purchase price of which shall be the minimum consideration permitted by applicable PRC laws and regulations. 

  

	5.2	The method of payment shall be determined by consultation among the Parties and in accordance with applicable PRC law. To the extent permitted by PRC law, one such
method shall be the cancellation by Newegg of a corresponding portion of the Indebtedness. 

  

	5.3	To the extent permitted by applicable PRC law, the Shareholder(s) shall use any and all proceeds obtained in connection with the transfer of any part or all of the
Equity Interest by the Shareholder(s) according to Section 5.1 and Section 5.2 above for the repayment of the Indebtedness. 

 Article 6 Completion of Transfer 
  

	6.1	On the Completion Date (as defined below), the transferee(s) shall become the legitimate holder(s) of the relevant portion of the Equity Interest and enjoy all the
rights and assume all the obligations of such shareholding under PRC law and the articles of association of the Domestic Co, and the relevant Shareholder(s) shall no longer enjoy any right or assume any obligation in connection with such
shareholding. 

  

 -3- 

	6.2	The “Completion Date” as used herein shall mean the date on which the Domestic Co shall have completed all formalities regarding change of registration
of its shareholders with the competent industrial, commercial and/or governmental administration and that the transferee(s) shall have become the legitimate holder(s) of the transferred portion of the Equity Interest. The Parties and designated
transferees shall cooperate with each other in good faith and in a reasonably timely fashion to effectuate promptly any such transfers. 

 Article 7 Special Provisions 
  

	7.1	During the term hereof, without Newegg’s prior written consent, neither of the Shareholders shall: 

  

	 	7.1.1	grant to any party other than Newegg any right of any kind whatsoever that is the same as or similar to the Option; 

  

	 	7.1.2	transfer any part or all of the Equity Interest to any party other than Newegg and/or its designee(s) pursuant to the terms of this Agreement; 

 

	 	7.1.3	other than pursuant to the Equity Pledge Agreement, pledge, create or permit any security interest or similar encumbrance in whatever form to be created on any part or
all of the Equity Interest; or 

  

	 	7.1.4	enter into any agreement or understanding, whether oral or written, regarding any of the foregoing. 

  

	7.2	Should any of the Shareholders die, become incapacitated or go missing without any information (after Newegg has used its reasonable efforts to contact such
Shareholder) for any period of six (6) months during the term of this Agreement, then any portion of the Equity Interest held by such Shareholder shall be transferred to Newegg and/or its designee(s). In the event that such transfer is not
enforceable for any reason, the Option shall be deemed exercised by Newegg and/or its designee(s) in accordance with this Agreement on the date immediately prior to the date when such Shareholder died, became incapacitated or is determined to have
gone missing as set forth above. 

  

	7.3	Each of the Shareholders hereby irrevocably appoints Newegg and/or its designee(s) (with full power of substitution) as its agent and attorney, to act in its name and
on its behalf to (i) execute any assignments and instruments, initiate and/or further any issuance of letters in connection with the enforcement of Article 7.2 above, and (ii) generally sign, seal, execute, deliver, perfect or prepare all
documents, instruments, acts and matters which Newegg and/or its designee(s) may in its sole discretion think necessary or desirable for and/or in connection with enforcement of Article 7.2 above and to give full force and effect to the provisions
under this Agreement. 

  

 -4- 

 Article 8 Representations, Warranties and Covenants 
  

	8.1	Each of the Shareholders hereby represents, warrants and covenants to Newegg, on the date of this Agreement and, with respect to a transferring Shareholder, on the
Completion Date, that: 

  

	 	8.1.1	it has the authority to execute this Agreement, and it has the capacity necessary for it to perform its obligations hereunder; 

  

	 	8.1.2	it has legitimate, full and adequate ownership of and power over its portion of the Equity Interest; 

  

	 	8.1.3	it has taken or will take necessary actions in accordance with the articles of association of the Domestic Co approving the transfer of any part or all of the Equity
Interest to Newegg and/or its designee(s) in accordance with this Agreement, and irrevocably waives any preemptive right it may enjoy with respect to any such transfer; 

  

	 	8.1.4	except for the Equity Pledge Agreement, it has not created or permitted any security interest to be created on any part or all of the Equity Interest, nor will it
create or permit any security interest to be created on or dispose of any part or all of the Equity Interest without Newegg’s prior written consent; 

  

	 	8.1.5	it has not granted and will not grant to any party other than Newegg any right of any kind whatsoever which is the same as or similar to the Option without the prior
express written consent of Newegg; 

  

	 	8.1.6	it has not transferred and will not transfer to any party other than Newegg and/or its designee(s) any part or all of the Equity Interest without the prior express
written consent of Newegg; 

  

	 	8.1.7	to its knowledge, there is no event that has created or will create any material adverse effect on the normal operation of the business of the Domestic Co; and

  

	 	8.1.8	prior to the Completion Date, it will not cancel or rescind the agreed transfer hereunder. 

  

	8.2	Each of Newegg Inc. and Tekhill hereby represents, warrants and covenants to the Shareholders that: 

  

	 	8.2.1	it is a company duly established and validly existing under the laws of its jurisdiction of organization and has the authority to execute this Agreement and the
capacity necessary for it to perform its obligations hereunder; 

  

	 	8.2.2	it has obtained all necessary authorizations and consents required for it to execute and perform this Agreement; 

  

 -5- 

	 	8.2.3	its execution of this Agreement will not result in its material breach of any term, condition or provision of any material contract, agreement or instrument to which it
is a party and/or the release of, or the right to release, any material obligation assumed by any person under any said contract, agreement or instrument; and 

  

	 	8.2.4	upon commencement of the transfer of any part or all of the Equity Interest, it shall act with reasonable diligence and in reasonably timely fashion to ensure the
successful completion of the transfer contemplated herein. 

 Article 9 Liability for Breach of Contract 
  

	9.1	Should a Shareholder refuse to transfer any part or all of the Equity Interest it holds to Newegg and/or its designee(s) according to this Agreement, then the penalty
due and payable by the Shareholder to Newegg therefor shall in no event be less than the greater of (i) the then book value of the entire portion of the Equity Interest held by such Shareholder, or (ii) the total amount of Indebtedness borrowed
by such Shareholder, and shall also include all direct economic loss, any expected indirect loss suffered and other additional expenses incurred in connection with such breach. 

  

	9.2	In the event of any breach of this Agreement, the other Party/Parties (the “Non-breaching Party”) may request by written notice to such breaching
Party/Parties (the “Breaching Party”) that the Breaching Party (i) correct its breach or failure, and (ii) take adequate, effective and timely measures to eliminate the consequences of such breach or failure.

  

	9.3	Upon the occurrence of any breach, if such breach, at the Non-breaching Party’s reasonable and objective discretion, has caused the Non-breaching Party’s
performance of any of its obligations hereunder to be unfeasible, then the Non-breaching Party may notify the Breaching Party in writing that the Non-breaching Party will suspend its performance of its obligations hereunder on a temporary basis
until and unless the Breaching Party shall have ceased its breach and taken effective measures in a timely manner to eliminate the consequences of such breach and shall have compensated the Non-breaching Party for the loss suffered thereby due to
such breach. 

 Article 10 Force Majeure 
  

	10.1	A “force majeure event” shall refer to any event beyond the reasonable control of the Parties which is unforeseeable or, if foreseeable, unavoidable and which
has prevented, affected or delayed any Party’s performance of all or any part of its obligations hereunder, including without limitation, government actions or inactions, acts of God, strikes or labor disputes, war, hacker attack or any other
similar event. 

  

	10.2	The Party affected by a force majeure event may suspend on a temporary basis its performance of its obligation(s) without incurring any liability to the other Parties
due to such force majeure event, until the effect of such force majeure event has been eliminated; provided that, such Party shall exert its best efforts to minimize the adverse effect of such force majeure event. 

  

 -6- 

	10.3	The Party claiming suspension of performance by reason of force majeure event (the “Claiming Party”) shall have the obligation to provide as soon as
possible to the other Party or Parties to whom the affected performance should have been rendered (the “Affected Party”) written notice of such force majeure event. Should the Claiming Party fail to provide said notice, the Affected
Party may claim against it for the liability for breach of contract as set forth above, and the Claiming Party agrees and acknowledges that it shall have the burden to prove the occurrence and ongoing obstacle to performance of the claimed force
majeure event. 

 Article 11 Effectiveness 
  

	11.1	This Agreement shall come into full force and effect upon being executed by all the Parties and shall be terminated upon (i) the Completion Date of the transfer of
the Equity Interest held by a respective Shareholder, or (ii) the full performance of the entire obligations hereunder by such Shareholder, whichever is later, provided that the Agreement shall survive such termination and be binding on the
remaining Shareholder for so long as its obligations hereunder are outstanding. 

 Article 12 Applicable Law 
  

	12.1	The execution, validity, performance and interpretation of this Agreement shall be governed by PRC law. 

 Article 13 Settlement of Disputes 
  

	13.1	If any dispute arises out of the interpretation and performance of this Agreement, the Parties shall first attempt to settle such dispute through friendly negotiations.

  

	13.2	Should such dispute fail to be settled through negotiations, each Party may submit such dispute to the China International Economic and Trade Arbitration Commission for
arbitration in Shanghai according to its then applicable arbitration rules. The arbitration award shall be final and binding upon all the Parties. 

  

	13.3	In case of any dispute arising out of the interpretation and performance hereof or if any such dispute is under arbitration, each Party shall exercise its other rights
and perform its other obligations under this Agreement other than those in question. 

 Article 14 Miscellaneous

  

	14.1	Newegg shall have the right to assign all of its benefits and obligations under this Agreement to any third party of its choosing without the prior consent of the
Shareholders; provided, however, that Newegg shall send a written notice to the Shareholders after such assignment. The Shareholders shall have the right to assign this Agreement only with the prior written consent of Newegg.

  

	14.2	Failure by any Party to timely exercise any of its right hereunder shall not be deemed as waiver of such right, nor shall such failure affect in any way such
Party’s future exercise of such right. 

  

 -7- 

	14.3	If all or any part of any provision hereof is held invalid or unenforceable for any reason, all other provisions hereof shall remain valid and binding. Should any of
the Parties breach any provisions of this Agreement, such breach shall not affect the rights and obligations of other Parties to this Agreement and any other relevant agreements as well as the performance and the enforcement of this Agreement and
such other agreements. 

  

	14.4	This Agreement shall inure to and be binding upon the Parties and their respective successors and assigns. 

  

	14.5	This Agreement shall supersede any previous or concurrent agreement, understanding or communication among the Parties with respect to the same, either in oral or
writing. Except as expressly set forth herein and in the agreements referenced herein, none of the Parties has made any other express or implied obligation or undertaking. 

  

	14.6	This Agreement may be amended or supplemented by a written agreement among all the Parties. Any amendment or supplement (if any) to this Agreement shall, upon being
signed by all the Parties, constitute an integral part hereof and be equally authentic with this Agreement. 

  

	14.7	This Agreement is made in four originals, of which each Party shall hold one. All originals hereof shall be equally authentic. 

  

	14.8	This Agreement has been negotiated and drafted in the English language. If reference to a foreign language translation is required, any ambiguity in the text of the
foreign language translation or any disagreement concerning the foreign language translation shall be resolved by reference to the English text. 

  

	14.9	Each of the Parties agrees not to discuss, disclose or otherwise transmit this Agreement, including without limitation the identity and personal information of the
other Party, to anyone other than (i) to (as applicable) its affiliates, officers, shareholders, members, counsel and advisors, (ii) as required by any law, regulation, court order, or the like, or in connection with any filing with any
governmental authority, and (iii) to comply with its obligations contained in this Agreement. 

  

	14.10	Each party has been informed of his/her/its right to consult independent legal counsel concerning this Agreement, and each party hereby acknowledges that he/she/it has
had the opportunity to do so. 

  

	14.11	This Agreement shall be construed as if drafted jointly by the parties hereto. In the event an ambiguity or question of intent or interpretation arises, no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. 

  

 -8- 

 EXHIBIT A 
  

					
	 	 	 
	SHAREHOLDER NAME	 	ADDRESS	 	ID CARD NUMBER
	 	 		 	 
	 	 		 	 
	 	 	 	 	 
	 	 		 	 
	 	 		 	 
	 	 	 	 	 

  

 -9- 

 Exhibit B 
 Form of Exercise Notice 
  

	To:	[Name of Shareholder] 

  

	Re:	Option Exercise 

 Reference is
made to the Call Option Agreement (the “Option Agreement”), dated as of November     , 2006, by and among Newegg Inc., a Delaware corporation (“Newegg Inc.”), Tekhill Information
Technologies (Shanghai) Inc., a wholly foreign-owned enterprise organized under the laws of the People’s Republic of China (together with Newegg Inc., each individually, and collectively, “Newegg”),
                 and                  (along with any successor(s) of either,
collectively the “Shareholders”). Capitalized terms not otherwise defined herein shall have the meanings set forth in the Option Agreement. 
 Pursuant to the terms of the Option Agreement, Newegg hereby gives notice to the Shareholders that it is exercising the Option with respect to [—]% of the
Equity Interest. Upon receipt of this notice, the Shareholders are instructed to immediately effect such transfer pursuant to the terms of the Option Agreement. 
  

									
	Newegg Inc.	 		 	Tekhill Information Technologies
		 		 	(Shanghai) Inc.
					
	By:	 	 	 		 	By:	 	 
					
	Name:	 	 	 		 	Name:	 	 
					
	Title:	 	 	 		 	Title:	 	 

 Exhibit C 
 [Form of Equity Transfer Agreement] 

 Exhibit D 
 [Form of Power of Attorney]

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