Company: ORBS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011052
Chunk: 1

Company: Eightco Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 1
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 the distribution (the “Distribution”) of our common
stock to stockholders of Vinco as of May 18, 2022 (the “Record Date”) at a ratio of one share of our common stock for every
ten shares of Vinco common stock held by the Vinco stockholders. Following the Separation, we are an independent, publicly traded company,
and Vinco retains no ownership interest in our Company.

In
connection with the Separation, we entered into a Separation and Distribution Agreement and other agreements with Vinco to effect the
Separation and provide a framework for our relationship with Vinco after the Separation. These agreements provide for the allocation
between us and our subsidiaries, on the one hand, and Vinco and its subsidiaries, on the other hand, of the assets, liabilities, legal
entities, and obligations associated with the Eightco Businesses, on the one hand, and Vinco’s other current businesses, on the
other hand, and govern the relationship between our Company and our subsidiaries, on the one hand, and Vinco and its subsidiaries, on
the other hand, following the Separation. In addition to the Separation and Distribution Agreement, the other principal agreements entered
into with Vinco include a Tax Matters Agreement and certain commercial agreements.

28

Employment
Agreements

Paul
Vassilakos Employment Agreement

In
connection with Mr. Vassilakos’ appointment as the Executive Chairman and Chief Executive Officer of the Company, on March 17,
2024, the Company and Mr. Vassilakos entered into an Employment Agreement (the “Vassilakos Employment Agreement”), which
supersedes and replaces the Employment Agreement dated October 16, 2022, by and between Mr. Vassilakos, the Company and Forever 8. The
Vassilakos Employment Agreement provides for an initial term of two years, unless earlier terminated in accordance therein, and automatic
renewals for successive one (1) year terms unless either party provides timely written notice otherwise.

Pursuant
to the terms of the Vassilakos Employment Agreement, Mr. Vassilakos will be entitled to a base salary payable at the annualized rate
of $300,000 per year (the “Vassilakos Base Salary”). Mr. Vassilakos is eligible for an annual cash bonus opportunity equal
to up to 75% of the Vassilakos Base Salary