Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 136

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 10
Chunk 136
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 in the person
becoming an interested shareholder. This encourages any potential acquirer of a Delaware public corporation to negotiate the terms of
any acquisition transaction with the target’s board of directors.

BVI law has no comparable provision.

Cumulative Voting

Under Delaware corporate law, cumulative voting
for elections of directors is not permitted unless the company’s certificate of incorporation specifically provides for it. Cumulative
voting potentially facilitates the representation of minority shareholders on a board of directors since it permits the minority shareholder
to cast all the votes to which the shareholder is entitled on a single director, which increases the shareholder’s voting power
with respect to electing such director. There are no prohibitions to cumulative voting under the laws of the BVI, but our Amended and
Restated Memorandum and Articles of Association do not provide for cumulative voting.

  Material Contracts  
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Except as otherwise disclosed in this annual report
(including the Exhibits under Item 19), we are not currently, nor have we been for the past two years, party to any material contract,
other than contracts entered into in the ordinary course of business.

  Exchange Controls  
 ─────────────────────

BVI Exchange Controls

There are no material exchange controls restrictions
on payment of dividends, interest or other payments to the holders of our common shares or on the conduct of our operations in the BVI,
where we were incorporated. There are no material BVI laws that impose any material exchange controls on us or that affect the payment
of dividends, interest or other payments to nonresident holders of our common shares. BVI law and our Amended and Restated Memorandum
and Articles of Association do not impose any material limitations on the right of non-residents or foreign owners to hold or vote our
common shares.

  Taxation  
 ────────────

BVI, PRC AND U. S. FEDERAL INCOME TAX CONSIDERATIONS

The following is a general summary of certain
material BVI, PRC and U. S. federal income tax considerations. The discussion is not intended to be, nor should it be construed as, legal
or tax advice to any particular shareholder or prospective shareholder. The discussion is based on laws and relevant interpretations thereof
in effect as of the date hereof, all of which are subject to change or different interpretations, possibly with retroactive effect.

BVI Taxation

The BVI does not impose a withholding tax on dividends
paid to holders of our common