Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 188

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1B
Chunk 188
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 actual economic value that may be realized by the named executive officer upon the vesting of
    the stock options, the exercise of the stock options, or the sale of the common stock underlying such stock options.

Employment
Agreement

On
June 19, 2023, we entered into an Employment Agreement dated as of June 19, 2023 (the “Employment Agreement”) with Joel D.
Stone, our President and Chief Operating Officer. Pursuant to the terms of the Employment Agreement, Mr. Stone received or will receive
(i) an annual base salary of $250,000, which amount may be increased upon our reaching certain benchmarks described in the Employment
Agreement, as determined in our sole discretion; (ii) an initial option grant of seven-year options to purchase 2,500,000 shares of our
common stock for a purchase price of $0.50 per share, of which the right to purchase up to 1,250,000 shares will vest in equal installments
over a period of three years and the right to purchase up to 1,250,000 shares will vest upon our completing certain milestones that are
set out in the Employment Agreement; and (iii) the right to participate in all benefit plans offered to our senior executive officers.

The
Employment Agreement also provides for certain severance benefits upon a termination by us without “cause” or by Mr. Stone
for “good reason.” In the event of a termination by us without “cause” or by Mr. Stone for “good reason”
after the first full year of employment, Mr. Stone will be entitled to (i) continued payment of his base salary for the lesser of six
(6) months or the remaining term of the Employment Agreement, subject to Mr. Stone signing a timely and effective separation agreement
containing a release of all claims against us and other customary terms; provided, however, that if such termination is between the 91st
day and the end of the first year of employment, Mr. Stone will be entitled to a pro rata portion of such payment.

The
Employment Agreement contains customary confidentiality restrictions and work-product provisions with respect to Mr. Stone, as well as
customary non-competition covenants and non-solicitation covenants with respect to our employees, consultants and customers.

19

Consulting
Agreements

On
October 20, 2018, we entered into a consulting agreement with DSS Consulting Corporation, a corporation