Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 775

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 775
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 Units upon the achievement of any Earn-Out Target and the VWAP of Eightco’s common
stock for the 15 trading days preceding the date that any Earn-Out Target is achieved (the “Earn-Out VWAP”) is (A) with respect
to the first Earn-Out Target, less than $5.00, (B) with respect to the second Earn-Out Target, less than $6.00 or (C) with respect to
the third Earn-Out Target, less than $5.00, then Sellers shall be entitled to receive an additional number of additional Preferred Units
(the “True-up Units” and together with the additional Preferred Units, the “Total Additional Preferred Units”)
such that the Total Additional Preferred Units multiplied by the Earn-Out VWAP equals (x) $15 million for the first Earn-Out Target,
(y) $12 million for the second Earn-Out Target and (z) $10 million for the third Earn-Out Target; provided that in no event shall more
than 4.5 million True-up Units be issued for the first Earn-Out Target, in no event shall more than 4.0 million True-up Units be issued
for the Second Earn-Out Target and in no event shall more than 3.0 million True-up Units be issued for the Third Earn-Out Target.

In
accordance with the Purchase Agreement, the Company’s existing operating agreement was amended and restated. The amended and restated
operating agreement (the “Operating Agreement”) provides for, among other things, a put right for designated members (the
“Preferred Members”). The Preferred Members (who are the Sellers) have a put right to cause Eightco to redeem certain Preferred
Units, from time to time on or after the six-month anniversary following the Closing. Upon exercise of the put right, each Initial Base
Preferred Unit (as defined in the Purchase Agreement) shall be exchanged for one Eightco share.

The
Preferred Members have a put right, on terms and conditions set forth in Section 7.01 of the Operating Agreement, to cause Eightco to
redeem the Preferred Units as follows:

(a)
starting on the later of (i) six (6) months following the Closing and (ii) the Threshold Date (as defined in the Subordination Agreement),
one (1) Eightco Share per Initial Base Preferred Unit being redeemed up to a maximum of 6,281,949 Initial Base Preferred Units;

(b)
upon the satisfaction of (i) the receipt of Shareholder Approval