Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 103

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 6
Chunk 103
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 officers
are eligible to participate in the Company’s annual Discretionary Bonus Program and Profit Sharing Program. Under the Discretionary
Bonus Program, executives are eligible to receive an annual cash bonus payment based upon corporate and individual performance, as determined
in the discretion of the Compensation Committee, with target bonus amounts ranging from 14% of base salary to 50% of base salary for plan
year 2024. Under the annual Profit Sharing Program, the CEO and other executive officers are entitled to an annual cash bonus, as determined
in the discretion of the Compensation Committee, based upon the Company’s GMV and adjusted EBITDA for the year, with the bonus payout
weighted 50% based on GMV performance and 50% based upon adjusted EBITDA performance for program year 2024. Bonus awards under the Profit
Sharing Program start at 10% of base salary (15% for the CEO) based upon meeting the threshold level of performance and are subject to
increase based upon performance above threshold. Payments under both the Discretionary Bonus Program and the Profit Sharing Program are
contingent upon the executive remaining employed with the Company through the date bonuses are paid.

Stock Option Plans

Newegg 2005 Incentive Award Plan

In September 2005, the Newegg 2005 Incentive Award
Plan was approved and subsequently amended in January 2008, October 2009, December 2011 and September 2015. Under the Newegg 2005 Incentive
Award Plan, we may grant equity incentive awards to employees, directors, and consultants based on our common shares. A committee of our
board of directors determines the eligibility, types of equity awards, vesting schedules, and exercise prices for equity awards granted.
Subject to certain adjustments in the event of a change in capitalization or similar transaction, we may issue a maximum of 4,147,607
common shares under the Newegg 2005 Incentive Award Plan. We issue new common shares from this authorized share pool to settle stock-based
compensation awards. The exercise price of options granted under the plan shall not be less than the fair value of our common shares as
of the date of grant. Options typically vest over a term of four years, and are typically exercisable for a period of 10 years after the
date of grant, except when granted to a holder who, at the time the option is granted, owns stock representing more than 10% of the voting