Company: ARAI
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001641172-25-005394
Chunk: 121

Company: Arrive AI Inc.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 121
---
 The NQSO (62,500 options) vest over four
years, with a one-year cliff. After one year, 25% vests, followed by 6.25% quarterly until fully vested. If employment ends before August
15, 2024, no NQSO will vest. The ISO (62,500 options) vest upon achieving company valuation milestones: 50% when the valuation
sustains $600 million for six months and the remaining 50% at $1 billion for six months, with time-based vesting requirements. In the
event of a change of control, 50% of all options vest immediately under a “single trigger”, with the remaining 50% vesting
under “double trigger.” Mr. Pepmeier will also be eligible to receive certain employee benefits. The employment agreement
has been filed as an exhibit to this prospectus.

Brandon Pargoe

As detailed elsewhere in
this prospectus, on December 5, 2023, the Company acquired certain assets of AirBox Technologies (“AirBox”), in an
all-stock transaction. The acquisition included AirBox’s patent portfolio and other tangible assets, in addition,
AirBox’s CEO Brandon Pargoe joined the Arrive team in a role of product line lead (Airbox), as an independent
contractor. On November 29, 2023, the Company entered into an independent contractor agreement with Mr. Pargoe as its Vice President
of Product Operations, effective December 1, 2023 (“Pargoe Agreement”). The Company agreed to pay Mr. Pargoe a base
salary of $5,000 per month for his service as the Product Line Lead for a term of two years and the Company has the option to extend
the Pargoe Agreement in November 2025. Either the Company and Mr. Pargoe may terminate the Pargoe Agreement, with or without reason
at any time. Mr. Pargoe agreed not to utilize or exploit the Company’s confidential information made available to him during
his service after the termination of the Pargoe Agreement.

Stock Equity Incentive Plan

During Fiscal Year 2023, the board of directors adopted the stock equity incentive plan (the “Plan”). Below is a summary of the Plan, which is qualified in its entirety by the full text of the Plan, attached hereto as Exhibit 10.8 to the registration statement on Form S-1 of which this prospectus is a part, incorporated