Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 535

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 2
Chunk 535
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 such difference.

Loan Agreement with an Affiliate of Harry You

On December 30, 2024, Holdco entered into the Loan Agreement with RHY,
an affiliate of Harry You, pursuant to which RHY committed to provide Holdco with up to $7 million in new loans. Prior to each drawdown,
pursuant to the Loan Agreement, Holdco must certify to RHY, among other things, that it has used its best efforts to raise equity, equity-linked,
or debt financing on terms available in the market to a similarly-situated company in similar circumstances, and is unable to obtain alternate
financing in the amount of such drawdown. Once amounts are borrowed, they may not be re-borrowed. Additionally, Mr. You agreed to roll
over an aggregate of approximately $3.1 million of loans and advances owed to him or to his affiliates by Coliseum and RWT into the Loan
Agreement and such amounts will be treated for all purposes as loans outstanding pursuant to the Loan Agreement (which, for the avoidance
of doubt, does not decrease the $7 million commitment). As of the date of this Annual Report, Holdco has borrowed an additional $839,000
of new funds under the Loan Agreement.

44

Recent Developments

Appointment of Directors 

On April 1, 2025, the Board increased the size
of the Board from five to seven directors and appointed Mr. Marcus Peperzak and Mr. Robert Reardon to fill the resulting vacancies. Mr.
Reardon was appointed to serve as a Class I director with a term expiring at the Company’s first annual meeting of stockholders.
Mr. Peperzak was appointed to serve as a Class II director with a term expiring at the second annual meeting of stockholders. Following
the appointment, Mr. Peperzak and Mr. Reardon serve on the Audit Committee.

In connection with this appointment, Mr. Reardon
and Mr. Peperzak each entered into a Director Agreement (as defined below) that is consistent with the Company’s form of Director
Agreement. Under the Director Agreement, members of the Board will receive compensation for service on the Board and on committees of
the Board consisting of the following: (i) subject to approval by the Board and compensation committee of the Board (the “Compensation
Committee”), a cash payment of $12,500 promptly following attendance at each quarterly Board meeting, for a total annual cash compensation
of $50