Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 126

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 10
Chunk 126
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holders Agreement or common shares offered pursuant
to a registration statement filed with the SEC.

For the purpose of the Amended Shareholders Agreement,
the “excluded issuance” means (i) any equity interests issued as share dividends, or pursuant to share splits, recapitalization
or other similar events that do not adversely affect the proportionate amount of the common shares held by the Principal Shareholders,
and (ii) common shares issuable pursuant to any stock option or any similar equity incentive plan of the Company approved by the Board;
and (iii) equity interests issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors
of the Company provided that any such issuance shall only be to an entity (or to the equity holders of an entity) which is, itself or
through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and
shall provide to the Company additional benefits in addition to the investment of funds, but shall not include a transaction in which
the Company is issuing equity interests primarily for the purpose of raising capital or to an entity whose primary business is investing
in securities.

The Company is required to give Principal Shareholders
a notice stating the price (or formula by which the price will be determined, which may refer to a future contingent event) and terms
of issuance of new securities and to remain the offer to issue the Principal Shareholders their Pro Rata Shares of such new securities
(as defined below) open until the 15th calendar day following the receipt of such notice. The Principal Shareholders shall deliver an
exercise notice along with payment to exercise their pre-emptive rights.

In the event that the Principal Shareholder fails
to give an exercise notice timely, or elects to purchase fewer than all of its Pro Rata Share of such new securities, then the Company
shall send written notice to any Principal Shareholder who has elected to purchase all of its Pro Rata Share of such new securities, who
will then have the right, by giving written notice to the Company within two business days upon receiving notice from the Company, to
purchase its Pro Rata Share of such unsubscribed portion, and such right shall continue to apply repeatedly and iteratively until all
of such new securities have been allocated to the Principal Shareholders or none of the Principal Shareholders have elected to participate
in such further purchase. If, at the end of such process, there are new securities that have not been subscribed for by the Principal