Company: ORBS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011052
Chunk: 9

Company: Eightco Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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 to exceed its respective Commitment, a Loan Advance amount to be determined by the lender
(as such amount may be increased, the “Aggregate Commitment”) in the aggregate, of which (x) a certain amount will be deposited
into an account of the Borrower in accordance with its written instructions (the “Initial Loan Advance”) and (y) the remaining
balance of the Aggregate Commitment after deducting the Initial Loan Advance shall be deposited into the Escrow Account (the “Escrow
Funds”). The Borrower may, at any time, request an advance for all or a portion of the Escrow Funds (each such advance, a “Subsequent
Draw”).

The
Borrower issued a Promissory Note to each of the lenders in the amount of the lender’s respective Initial Loan Advance. The principal
balance of the Initial Loan Advance and each Subsequent Draw shall bear interest thereon from the Closing Date and applicable Advance
Date, respectively, at 15.00% per annum. The Borrower shall pay each lender, according to its Applicable Percentage, an unused commitment
fee on the actual daily amount of the Unused Commitment Amount during the immediately preceding calendar quarter at the rate of five
percent (5.00%) per annum (the “Unused Commitment Fee”). In the event any payment is not paid on or within five (5)
Business Days of the scheduled payment date, an amount equal to two percent (2.00%) of the past due amount shall be payable on demand,
in addition to interest accruing. In addition, upon the occurrence and during the continuation of an Event of Default hereunder, the
Initial Loan Advance and all Subsequent Draws, including principal, interest, compounded interest, and professional fees thereupon, shall
upon the election of the lenders, bear interest at the Interest Rate, plus five (5) percentage points. In the event any interest is not
paid when due hereunder, delinquent interest shall be added to principal and shall bear interest on interest, compounded.

32

As
security for the prompt and complete payment when due (whether on the payment dates or otherwise) of all the Secured Obligations, Borrower
granted to the lenders a security interest in all of Borrower’s right, title, and interest in and to all Inventory or Equipment
and machinery, in each case, purchased (or refinanced) with the proceeds of the Initial Loan Advance and any Subsequent Draw, and, to
the extent