Global AI, Inc. 8-K

What Happened

• Global AI, Inc. filed an 8-K on May 19, 2026 disclosing that the company and CEO/Chairman Darko Horvat agreed to terminate his Executive Employment Agreement. The termination is deemed effective September 19, 2025 (the Horvat Agreement had been effective September 1, 2025). Mr. Horvat continues to serve as Chief Executive Officer, now as a non‑employee.

Key Details

• Horvat Agreement originally provided: $650,000 initial annual base salary and target annual incentive equal to 50% of base salary.
• Equity compensation in the Horvat Agreement included: a time‑based stock option equal to 2.5% of outstanding equity (4‑year vesting with one‑year cliff) and a milestone‑based option equal to 2.5% of outstanding equity (vesting over four years upon performance milestones).
• Market‑cap restricted stock unit milestone awards were contemplated, valued between $18.75 million and $37.5 million upon achievement of specified market‑capitalization thresholds; a sale bonus of 1% of enterprise value was also included for a qualifying change‑of‑control.
• The Termination and Release Agreement dated May 13, 2026 (filed as Exhibit 10.1) memorializes the termination and Mr. Horvat’s continued role as a non‑employee CEO.

Why It Matters

• For investors, this filing ends the specific cash and equity commitments laid out in the prior employment agreement (salary, incentives, large potential equity/R.S.U. awards and a sale bonus). That could reduce expected future dilution or large milestone payments tied to that agreement, depending on any new arrangements the company and Mr. Horvat agree to going forward.
• Because Mr. Horvat remains CEO (now as a non‑employee), leadership continuity is maintained while compensation and governance structure may change—watch future filings for any new compensation arrangements or board disclosures.