Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 106

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 6
Chunk 106
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 termination (not just those
that vest within one year) are subject to accelerated vesting. The agreement also contains customary confidentiality, non-solicit and
invention assignment provisions.

  Board Practices  
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Board of Directors

Our Board currently consists of seven directors.
None of our directors has a service contract with us that provides for benefits upon termination of service as a director.

A director may vote in respect of any contract
or transaction in which he or she is interested, provided, however that the nature of the interest of any director in any such contract
or transaction shall be disclosed by him or her at or prior to the consideration and vote on that matter. A general notice or disclosure
to the directors or otherwise contained in the minutes of a meeting or a written resolution of the directors or any committee thereof
of the nature of a director’s interest shall be sufficient disclosure and after such general notice it shall not be necessary to
give special notice relating to any particular transaction. A director may be counted for a quorum upon a motion in respect of any contract
or arrangement which he or she shall make with our company, or in which he or she is so interested and may vote on such motion. There
are no membership qualifications for directors. Further, there are no share ownership qualifications for directors unless so fixed by
us in a general meeting.

The Nasdaq Listing Rules generally require that
a majority of an issuer’s board of directors must consist of independent directors. However, the Nasdaq Listing Rules permit foreign
private issuers like us to follow “home country practice” in certain corporate governance matters. We currently have a majority
of independent directors serving on our Board, but may rely on this “home country practice” exception in the future. Mr. Gregory
Moore, Mr. Richard Weil, Mr. Poi (Paul) Wu, and Mr. Fuya (Frank) Zheng are our independent directors.

We do not have a lead independent director because
we believe our independent directors are encouraged to freely voice their opinions on a relatively small company board.

Our Amended and Restated Memorandum and Articles
of Association, subject to compliance with applicable laws and Nasdaq Listing Rules, provides that Digital Grid and Mr. Fred Chang, acting
as the “ Minority Representative,” shall be entitled to designate nominees to our Board in a number that is proportionate to
the voting power of Digital Grid and its affiliates, and our Legacy Shareholders, respectively.

Digital Grid has nominated Mr. Zhitao