Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 44

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 44
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 and certain other shareholders (the “ Principal
Shareholders”).

Under the Amended Shareholders Agreement, the
Principal Shareholders have pre-emptive rights to acquire additional shares when the Company issues or sells additional securities in
the future, except for “excluded issuances” as defined in the Amended Shareholders Agreement or common shares offered pursuant
to a registration statement filed with the SEC.

In addition, the Company and the Principal Shareholders
also have rights of first refusal over certain transfers of the common shares by the Principal Shareholders, pursuant to the Amended Shareholders
Agreement, as amended, and subject to compliance with applicable laws and Nasdaq’s Listing Rules. If any Principal Shareholder receives
a bona fide offer from any person other than its affiliate to acquire any of the Principal Shareholder’s common shares (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 all such ROFR Shares, then each of the Principal Shareholders other than the selling
Principal Shareholder 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; provided, however, that notwithstanding anything to the contrary, twenty percent (20%) of Company common
shares collectively held by each Principal Shareholder and its affiliates, calculated as of May 19, 2021, that are subject to any ROFR
Rights shall be exempt from any ROFR Rights. For the purpose of the 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 for non-cash consideration, then such right
of first refusal shall be exercisable based on the fair market value determined in good faith by the board of such non