Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 105

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 6
Chunk 105
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ursuant to our standard employment agreements
with each of our executive officers (excluding our Chief Executive Officer), the employment with each of such executive officers is for
a single three-year term, renewable thereafter in one-year increments. The employment is “at will” and can be terminated by
us or each such executive officer at any time and for any reason, with or without notice, with or without cause. If the executive is terminated
by us without cause or by the executive for good reason, then the executive is entitled to receive severance of 12 months’ base
salary and a prorated bonus. If such termination is also made in conjunction with a change of control, then the severance amount will
increase to 24 months’ base salary and 200% of the executive’s target bonus. The agreements also contain customary confidentiality,
non-solicit and invention assignment provisions.

On November 19, 2021, we entered into an employment
agreement with our Chief Executive Officer, Anthony Chow. The employment is “at will” and can be terminated by us or Mr. Chow
at any time and for any reason, with or without notice, with or without cause. Under the terms of the agreement, Mr. Chow is guaranteed
a base salary of $1.1 million per year and a target bonus of 160% to 200% of his base salary. The employment agreement has a four-year
term, and guarantees that Mr. Chow will receive the base salary component for the entire term, even if he is terminated during the term,
unless he is terminated for cause. If Mr. Chow’s employment is terminated by us without cause or by Mr. Chow for good reason, then
he is entitled to receive severance of 12 months’ base salary and a bonus equal to the average of the prior three years’ annual
bonuses at the time of termination (this severance amount is in addition to the remaining owed guaranteed base salary for the rest of
term). In addition, all unvested equity incentive awards that are outstanding and due to be vested within one year of his termination
are subject to accelerated vesting if he is terminated by us without cause or by Mr. Chow for good reason. If termination without cause
or for good reason occurs in the context of a change in control of Newegg, then the severance increases to 24 months’ base salary
(instead of 12 months’) and all unvested equity incentive awards that are outstanding at the time of his