Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 127

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 10
Chunk 127
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Shareholders, the Company may, for a period of time not to exceed 60 days, sell such unsubscribed new securities, on the same times to
a third-party purchaser. If, however, at the end of such 60-day period, the Company has not consummated a sale of any of such unsubscribed
new securities, the Company shall no longer be permitted to sell such new securities without again complying with these provisions of
pre-emptive rights in the Amended Shareholders Agreement.

Right of First Refusal of the Company and Principal
Shareholders

Pursuant to the Amended Shareholders Agreement,
subject to compliance with applicable laws and Nasdaq’s Listing Rules, if any Principal Shareholders or any of their affiliates,
receives a bona fide offer from any person other than its affiliate for any of the common shares such Principal Shareholders received
in connection with the Merger (the “ ROFR Shares”), then the Company has a right of first refusal, but not the obligation,
to elect to purchase all (and not less than all) of the ROFR Shares, at the same price, and on the same terms and conditions offered by
the purchaser (the “ ROFR Terms”). In the event the Company does not decide to purchase such ROFR Shares or decides to purchase
for less than all of the ROFR Shares, then each of the Principal Shareholders other than the selling Principal Shareholders shall have
a right of first refusal to elect to purchase all (and not less than all) of its Pro Rata Share of the ROFR Shares on the ROFR Terms.
By amendment dated August 2022, the Amended and Restated Shareholders Agreement was amended such that the Company’s right of first
refusal would apply only to 80% of the shares of the Company’s common shares subject to such ROFR Right collectively owned by each
Principal Shareholder and its Affiliates. For the purpose of this Amended Shareholders Agreement, “ Pro Rata Share” means the
percentage which corresponds to the ratio which each selling Principal Shareholder’s “ Percentage Interest” (which is
calculated by dividing (i) the number of the common shares owned by such Principal Shareholder, by (ii) total number of the then outstanding
shares of the common shares held by all Principal Shareholders) bears to the total Percentage Interests of all Principal Shareholders
exercising their right of first refusal. In the event that the ROFR Shares are in exchange