Document:

Grant of Land Use Rights

 Exhibit 10.16 
 CONTRACT FOR THE GRANT OF LAND USE RIGHTS 
 FOR
STATE-OWNED CONSTRUCTION LAND 
 IN 
 SHANGHAI 
 Contract No: Shanghai Land-Housing Grant Contract 2008
No. 65 
 Jiading District Housing and Land Administration Bureau of Shanghai 
 June 6, 2008 
 Special Notes 
 1. This Contract is prepared in accordance with the PRC Land Administration Law, the PRC Urban Real Estate
Administration Law, the Provisional Regulations of the PRC Concerning the Grant and Assignment of the Right to Use State Land in Urban Areas, Methods for Granting Land Use Rights in Shanghai and other laws and regulations. 
 2. The title to the land granted hereunder belongs to the PRC. The State and government shall have the right of jurisdiction and executive power granted by
the law as well as other rights vested in the state in accordance with regulations of the PRC as well as other rights for the society’s public interest. 
 3. Both parties shall enter into this Contract based on the principles of openness, fairness and good faith. 
 4. This Contract shall have the full force and effect of law upon execution by both parties. This Contract may not be amended or modified unless agreed to by both parties and approved by relevant
authorities. 
 5. The bracketed number on the first page of this Contract is the edition number of this Contract. When executed for the first
time, the contract shall be Edition 1.0, if supplemental contract is signed, the edition shall be upgraded to Edition 2.0, the edition number of the contract shall be changed for further modified versions. 
  

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 CONTRACT FOR THE GRANT OF LAND USE RIGHTS 
 FOR STATE-OWNED CONSTRUCTION LAND 
 IN 
 SHANGHAI 
  

			
	Grantor:	  	 Shanghai Jiading District Housing and Land Administration
 Bureau (Hereinafter referred to as Party A)

		  	Legal Representative: Zhiyin Xie
		
	Grantee:	  	Newegg Tech (Shanghai) Co., Ltd.
		  	(Hereinafter referred to as Party B)
		  	Legal Representative: Fred Faching Chang
	
	Pursuant to the PRC Land Administration Law, the PRC Urban Real Estate Administration Law, the Provisional Regulations of the PRC Concerning the Grant
and Assignment of the Right to Use State Land in Urban Areas, the Methods for Granting Land Use Rights in Shanghai and other relevant laws and regulations, and in accordance with the official document Hujiafutu
(2008) No. 76, both parties have hereby made and concluded this Contract as follows:
		
	Article 1	  	For the land, of which the land use right is acquired through assignment, the land ownership belongs to the PRC. For the land, the State and government have the right of
jurisdiction and executive power granted by the law as well as other rights vested in the state in accordance with regulations of the PRC as well as other rights for the society’s public interest. Underground resources, objects buried
underground, hidden articles and public facilities of the municipal administration shall not be included within the scope of the land use rights being granted herein.
		
	Article 2	  	The parcel of land being granted to the Grantee is located within Jiading Industrial Zone, Shanghai, Lot No. Gong 0745. The total land area is 49,999 square meters, of which the
assigned land area is 45,715.8 square meters. The area, boundary and location of the land are as shown in the drawing attached hereto. The drawing confirmed by both parties is made a part of this Contract. The parcel of land under this Contract
shall be used for industrial purpose. The term of the land-use rights under this Contract is 50 years, effective from the date of the execution of this Contract.

  

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	Article 3	  	The land grant fee for this parcel of land shall be RMB 21,000,000 (Twenty One Million). The foreign investor of Party B shall convert foreign currency and pay the land grant fee
in Renminbi, in accordance with the state regulations on foreign exchange control.
		
		  	During the term of this grant, Party B shall pay an annual land use fee of RMB 1 per square meter.
		
	Article 4	  	Within 15 days upon the execution of this Contract i.e., on or before July 3 2008, Party B shall pay a deposit of RMB 3,150,000 (Three Million and One Hundred Fifty Thousand) to
the local treasury as a guarantee for the performance of the Contract. Party A shall arrange for the refund of security deposit upon the presenting of the deposit receipt by Party B.
		
		  	Within 60 days of the execution of this Contract, i.e., on or before August 17, 2008, Party B shall pay to the local treasury the full balance of the land grant fee in the amount
of RMB 17,850,000 (Seventeen Million and Eight Hundred and Fifty Thousand).
		
		  	Party A shall issue a payment notice and letter regarding the above payments. Party B shall follow the requirements in the payment notice and promptly make full payments to the
local treasury within the prescribed period via the opening bank.
		
	Article 5	  	Party B shall pay the land grant fee in full (inclusive of the deposit) in accordance with the terms of this Contract. If Party B fails to make full payment within the prescribed
period, Party B shall pay a late payment penalty equivalent to 0.1% of the total default amount per day, following the expiration date of the payment period prescribed herein.
		
		  	If Party B fails to fully pay the land grant fee within 30 days after the expiration of the payment period (unless due to a force majeure event), Party A shall have the right to
terminate this Contract and demand compensation for breach of Contract. Party B shall have no right to seek a refund of any paid land grant fee.
		
	Article 6	  	Party A agrees to transfer the land use right to Party B prior to August 24, 2008. The land conditions at the time of transfer shall meet the following requirements in section 2:

		
		  	 1.      The above ground facility and structure attachments are completely dismantled or
removed.

  

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		  	 2.      The above ground facility and structure attachments are completely dismantled or
removed, and basic infrastructure ready with supply of water, electricity, and road and leveled ground.

		
	Article 7	  	After Party B has made full payment of the land grant fee required herein, Party B shall apply for the initial registration of land use rights with the Jiading real estate
registration agency in compliance with the real estate registration regulations in Shanghai.
		
	Article 8	  	During the term of grant, Party B shall develop and utilize the land in accordance with the purpose and conditions set forth in Exhibit A of the Conditions of Use of the State
Owned Shanghai Jiading Industrial Zone Gong-0745, and Exhibit B of the Land Use Intensity and other Conditions of Use of the State Owned Shanghai Jiading Industrial Zone Gong-0745 (hereinafter referred to as Conditions of Land Use). If
Party B requests to amend the Conditions of Land Use, in addition to undertaking the necessary application procedures according to law, Party B shall obtain approval from Party A and enter into a supplemental agreement with Party A with adjusted
land grant fee, and undertake to apply for the real estate registration accordingly.
		
	Article 9	  	The People’s Government of Shanghai reserves the right to design and adjust the urban planning for the granted land. During the term of grant or upon the renewal of land use
rights, the renovation, remodeling and reconstruction of buildings constructed pursuant to the Conditions of Land Use shall be subject to the effective urban planning at that time.
		
	Article 10	  	Party B shall develop the granted land for the specific purpose as defined herein and commence construction activities within the prescribed period of time. The land use rights
might be revoked when use of the land is changed from non-profit to profit-oriented. If Party B fails to commence the development of the granted land within the time periods stated herein the Conditions of Land Use, the government land
administration bureau may impose an idle land fee on Party B until the land use right is withdrawn without compensation in accordance with the PRC Urban Real Estate Administration Law, the Regulations on Urban Real Estate
Administration, and Article 3.4 of the Conditions of Land Use.

  

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		  	If Party B commences the development within the time periods stated herein the Conditions of Land Use, however the developed area accounts for less than  1/3 of the total area or the amount invested is less than 25% of the
total investment amount, and Party B suspends the land development without permission for more than 1 year, the granted land shall be regarded as an idle land. The land administration bureau shall impose an idle land fee on Party B until the land
use right is withdrawn without compensation.
		
	Article 11	  	If Party B, for reasons attributable to itself, is incapable of continuing and completing the entire investment development project, Party B shall proceed in one of the following
ways:
		
		  	 1.      If Party B intends to terminate the investment development project, Party B shall notify
Party A to terminate this Contract and proceed with application to return the granted land. Upon approval by relevant government planning, land and construction agencies, both parties may dissolve the Contract and Party A may take back the land use
rights. The land fee already paid by Party B shall be returned to Party B after deducting the deposit, the idle land fee and other fees (principal amount only with no interest).

		
		  	 2.      If Party B reduces the investment, and portions of the idle land could be separated and
redeveloped, Party B shall, within 90 days before the completion of the development project, submit request to Party A for the adjustment of the granted land area. Upon approval by government planning, land and construction agencies, both Parties
may enter into a new land grant contract with modified land area, land grant fee and conditions on land use. Party A shall take back the right of the use of the corresponding part of the land. The land fee already paid by Party B shall be returned
to Party B after deducting the deposit, the idle land fee and other fees (principal amount only with no interest).

		
	Article 12	  	Upon full payment of the land grant fee stipulated herein and obtaining of the land use rights certificate, Party B may transfer, lease and mortgage the land use rights granted
herein pursuant to laws and regulations and Exhibit A of this Contract. During the term

  

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		  	of land use rights, Party A shall have the right to monitor and supervise the development, transfer, lease and mortgage of the granted land.
		
		  	When the land use rights and the development project are transferred for the first time, the completed work under the building installation project shall meet the requirements
set forth in the Methods for Granting Land Use Rights in Shanghai. Party B shall not transfer the land use rights, change the name of the transferee or alter the investment ratio of the transferee before meeting such
requirements.
		
		  	When the land use rights are transferred or retransferred, the rights and obligations set forth herein shall also be transferred. After the transfer, the term of the land use
rights shall be the remaining period after deducting the already used time period from the land use term prescribed herein.
		
	Article 13	  	If Party B obtains approval by relevant government agencies to establish a company to develop the granted land without altering the investment ratio of the transferee, Party B
must enter into a supplemental agreement noting the change of the transferee. The new transferee may apply for the initial registration of land use rights or amend the registration with the real estate registration agency by virtue of the
supplemental agreement and other relevant materials.
		
		  	When the documents on public bidding, auction and listing have provided otherwise, the terms of such documents shall prevail.
		
	Article 14	  	Party A shall not withdraw the land use rights legally conferred upon Party B during the term of land use rights. If under special circumstances, based on the requirements of
social public interests, the land use rights need to be withdrawn before the expiration, Party A shall submit for approval in accordance with the legal procedures. Party B may be compensated for the early withdrawal of land use rights based on the
remaining land use period and the actual development of the land.
		
	Article 15	  	If Party B needs to continue utilizing the granted land upon the expiry of the land use term prescribed herein, Party B shall submit an application for the renewal of land use
rights to Party A at least one year prior to the expiration. If Party A agrees to the renewal, Party B shall follow relevant regulations and procedures on land

  

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		  	use and sign a new land grant contract with Party A, and pay the land grant fee. If Party B does not request for renewal of the land use rights or Party B’s application is
rejected, Party B shall return the land use rights to Party A or other relevant government authority and cancel the registration of land use.
		
	Article 16	  	If Party A breaches this Contract, Party B may request Party A to rectify within a stipulated period of time. If Party A still fails to perform this Contract, Party B may
terminate this Contract and request compensation for breach of contract.
		
		  	If Party B breaches this Contract, Party A may request Party B to rectify within a stipulated period of time. If Party B still fails to perform this Contract, Party A may
terminate this Contract and request compensation for breach of contract.
		
	Article 17	  	The Conditions of Land Use attached herein shall form an integral part of this Contract and shall have the same legal effect as this Contract.
		
	Article 18	  	This Contract, its execution, interpretation, performance and resolution of any disputes arising hereunder shall be governed by the laws of the PRC and the local rules and
regulations of Shanghai. Any dispute relating to the performance of this Contract shall be settled through mutual consultation, failing which it shall be resolved pursuant to paragraph (1) below:
		
		  	 (1)    submit to the Jiading District Arbitration Commission for arbitration;

		
		  	 (2)    file a lawsuit in the people’s court.

		
	Article 19	  	This Contract and the attached Conditions of Land Use, total 16 pages, are prepared in Chinese. If this Contract is also prepared in other languages, the Chinese version shall
prevail to the extent of any inconsistencies.
		
		  	The amounts in this Contract are written in numbers and words, and the numbers and words shall be consistent. In case of any inconsistency, the amount written in words shall
prevail.
		
		  	This Contract shall not be altered. This Contract shall be executed in three copies with each party holding one copy. A copy of this Contract shall be submitted to the real
estate registration agency for the registration of land use right. All of the executed copies shall have the same force and effect.

  

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	Article 20	  	This Contract is executed on June 18, 2008 in Jiading District of Shanghai, PRC.
		
	Article 21	  	Any matters not covered in this Contract shall be mutually negotiated and agreed upon by both parties and be set forth in supplemental agreements attached hereto as Exhibits to
this Contract.

  

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 Exhibit A 
 Conditions of Use of State-Owned Land in Shanghai 
 Jiading Industrial
Zone, Lot No. Gong 0745 
 The conditions for the use of state-owned land (Conditions for Land Use) located at Jiading District,
Shanghai, Lot No. Gong 0745 are as below: 
  

	1.	Conditions for Land Use 

 Party B shall develop and use the granted land according to the following conditions: 
  

	1.1	Use of Land: Industry 

  

	1.2	Term of Land Use Rights: 50 years, effective from the execution of this Contract 

  

	1.3	Construction Plot Ratio: no larger than 1.5 hectare (The total construction area shall not exceed 68,574 square meters.) 

  

	1.4	Landscaped Area Ratio: no less than 20% of the total area and the public green space shall be no less than 5%. 

  

	1.5	Parking Space: According to the Shanghai Construction Engineer Traffic Design and Car Park Standards (DGJ08-7-2006 J10716-2006) 

  

	1.6	Other planning parameters shall be based on the Shanghai Planning Approval Document No. (2007) 901 approved by Jiading District Planning Administration Bureau.

  

	1.7	Buildings on the granted land shall satisfy the requirements of the Shanghai Regulations on Urban Planning Administration. 

  

	1.8	The development activities must comply with regulations in the Notice on the Promulgation of Directory of Restricted Land Use Projects and Prohibited Land Use
Project (Guotuzi fa [2006] No.296). 

  

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	2.	Requirements for Urban Development 

  

	2.1	In developing the granted land, Party B shall abide by relevant regulations of the state and Shanghai on the urban construction administration in relation to
landscaping, amenities, hygiene, environment protection, fire control, traffic control, design and construction management. 

  

	2.2	Party B shall allow the government to lay underground sewage pipes and other cables passing through the granted land. If the buildings or its attachments on the granted
land are damaged as a result thereof, Party B shall be entitled to seek compensation from the relevant authority according to the law. 

  

	2.3	Party B shall guarantee access by the police, fire brigade and ambulances into the granted land to perform their duties in emergency situations.

  

	2.4	Party B shall be liable for any damages to the surrounding environment and facilities of the granted land which result in any loss by the state or individuals.

  

	3.	Requirements for Development Management 

  

	3.1	Party B shall commence the construction work prior to December 18, 2008 and complete the development project before December 18, 2009. Party B shall submit
all the required documents for the commencement and completion of the work to Party A within 15 days after the commencement and completion of the work. 

  

	3.2	If Party B is unable to commence the construction work within the time period stipulated in Article 3.1, Party B shall submit the request for extension to Party A 30
days in advance and with sufficient reasons for such extension. The extension shall be no more than 1 year. If Party A agrees to the extension, the construction commencement date shall be extended accordingly. 

  

	3.3	If Party B is unable to commence the construction work within the time period stipulated in Article 3.1, or is unable to commence the construction work within the
extended time period pursuant to Article 3.2, Party B shall pay a liquidated damages of 1‰ of the Land Grant Fee per day (unless the delay is caused by force majeure, government’s action, or the pre-construction work necessary to be
completed before the commencement of the construction work). 

  

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	3.4	Unless otherwise agreed to by Party A, if Party B fails to commence the construction work for more than 1 year after the expiry of the period stipulated in Article 3.1,
an “idle land fee” of no more than 20% of the Land Grant Fee shall be imposed by the relevant land administration bureau; if Party B fails to commence the construction work for more than 2 years after the expiry of the period stipulated
under Article 3.1, the land use rights of the granted land together with the buildings and attachments thereon shall be withdrawn by the relevant land administration bureau without compensation (unless the delay is caused by a force majeure event,
government’s action, or the pre-construction work necessary to be completed before the commencement of the construction work). 

  

	3.5	Party B shall not occupy the area surrounding the granted land without approval. If Party B needs to temporarily occupy the surrounding area, Party B shall undertake
the necessary application for temporary occupation, failing which Party B shall be deemed to have illegally occupied the land. 

  

	4.	Location and Boundaries 

  

			
	4.1	  	Party A has placed the markers of the granted land according to the Redlined Map of Boundaries and Markers of the Granted Land. Party B shall take effective measures to protect
these markers. If these markers are removed or damaged, Party B shall immediately report to Party A in writing and apply for the re-survey and re-marking of the boundaries.
		
	4.2	  	If the markers are missing, removed or damaged, Party B shall bear all the cost of re-marking the boundaries and replacing the markers.
	
	 5.      Requirements for Municipal Facilities and Building Demolition and
Relocation

		
	5.1	  	Party B shall be responsible for the supporting municipal facilities for the granted land and bear all the relevant expenses.
		
	5.2	  	Party B or its contractor shall promptly repair the damage caused to the sewage, watercourse, cables and other pipes and lines, and buildings as a result of Party B’s
construction work, and bear all the relevant costs.
		
	5.3	  	During the term of land use rights, Party B shall properly maintain the municipal facilities (including the ground subsidence monitoring device). If these facilities are damaged,
Party B shall bear all the costs of the repair.
		
	5.4	  	Party B and the user of the adjoining land shall jointly maintain and manage and equally bear the relevant costs of the passages and facilities shared between Party B and the
user of the adjoining land.

  

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	 6.      Requirement for the Transfer, Lease and Mortgage of the Land Use Rights

		
	6.1	  	If the granted land is not developed or used in accordance with this Contract or the Condition for Land Use, the land use rights can not be transferred or
leased.
		
	6.2	  	After the development of the granted land has satisfied the conditions under Article 12 of this Contract, the land use rights together with the buildings thereon may be
transferred according to the law.
		
	6.3	  	The land use rights of the granted land may be mortgaged, provided that prior to the completion of the development project, the loan amount obtained from such mortgage shall be
used for the development of the granted land. When the land use rights are mortgaged, the buildings and the attachments thereon shall also be mortgaged. The interests of the mortgagor and mortgagee shall be protected by the Methods for Real
Estate Mortgage in Shanghai.
		
	6.4	  	The pre-sale, sale, lease, and gift of the building shall be governed by PRC law, the Shanghai Regulations for Real Estate Registration, the Methods for Transfer of
Real Estate in Shanghai, the Shanghai Regulations for Real Estate Lease, and other regulations of the Shanghai land administration bureau.
	
	 7.      Requirements for maintenance, repair, modification and reconstruction of
Buildings

		
	7.1	  	During the term of land use rights, Party B shall guarantee that the buildings which are constructed or being constructed and the relevant facilities are in good and usable
condition, and shall bear all the necessary costs.
		
	7.2	  	During the term of land use rights, Party B shall not demolish, modify, or reconstruct the public facilities and the buildings on the granted land without the approval of Party
A.
	
	 8.      Special stipulation

		
	8.1	  	Development on the granted land shall satisfy the requirements for energy and land conversation.

  

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 Exhibit B 
 Conditions for Land Use (Industrial Purpose) 
 Jiading Industrial Zone,
Lot No. Gong 0745 
 Party A and Party B agree that the use of the state-owned land located at Jiading District, Shanghai, Lot No. Gong 0745
shall be subject to the following conditions: 
  

			
	Article 1	  	The construction plot ratio shall be no less than 8,000 square meter/hectare (the total floor area shall be no less than 36,573 square meters); the building density shall be no
less than 35%.
		
	Article 2	  	Land Investment Scale: The total amount of investment under the Land Grant Contract shall be no less than the amount approved and recorded i.e., RMB 160,000,000. The
investment in fixed assets shall be no less than RMB 2,100,000 per mu.
		
	Article 3	  	Party B shall not build non-productive facilities such as residential houses, hotels, guest house and training centers within the compound of the granted land.
		
	Article 4	  	Landscape Ratio: Shall be no less than 20% of the total land area. The construction area of the internal administrative office and service facilities of the enterprise on the
granted land shall not exceed 7% of the total construction area.
		
	Article 5	  	Within 60 days after the completion of the development project, Party B shall provide the documents such as the project completion verification report and project completion
audit report to Party A. Party A shall review the actual investment scale based on the stipulated conditions for land use.
		
		  	Party B shall be deemed to have breached this Contract if the actual investment amount and the land investment scale fail to meet the conditions agreed by the parties. Party A
shall be entitled to demand for compensation in accordance with Article 6 and Article 7. Party A shall request Party B to continue to perform the contract.

  

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	Article 6	  	If the investment amount for fixed assets and the land investment scale fail to meet the standards stipulated in the Conditions for Land Use, Party A shall be entitled to seek
damages from Party B equivalent to the same percentage of the Land Grant Fee as between the actual amount invested and the amount agreed to be invested.
		
	Article 7	  	If the construction plot ratio and the construction density fail to meet the standards stipulated in the Conditions for Land Use, Party A shall be entitled to seek damages from
Party B equivalent to the same percentage of the Land Grant Fee as between the actual and the stipulated ratio.
		
	Article 8	  	If the landscaping ratio, the percentage of the construction area of the internal administrative office and service facilities of the company exceeds the stipulated standard in
the Conditions for Land Use, Party B shall pay Party A damages, and Party B shall dismantle and demolish relevant buildings or remove landscaping at Party B’s own cost and expenses.

  

 14Call 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. 

  

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 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. 

  

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	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. 

  

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 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-

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