Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 883

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 5
Chunk 883
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2024, in connection with the consummation of the Business
Combination, 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 of new loans. Prior to each drawdown of the Commitment, 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 Commitment).
Accordingly, the maximum amount which may be borrowed under the Loan Agreement is approximately $10.1 million, inclusive of the Commitment
and rollover amounts.

The Loan Agreement has a two-year period, matures two years from the
date of the Loan Agreement, and outstanding amounts pursuant to the Loan Agreement will accrue interest at an interest rate of 5%, payable
quarterly. Harry You was Coliseum’s chairman of the board and sponsor and a shareholder and lender to RWT prior to Closing, and
is Holdco’s chairman of the Board and a shareholder and lender to Holdco after the Closing.

As of the date of this Annual Report, Holdco has borrowed $839,000
under the Loan Agreement.

66

Policies and Procedures for Related Persons Transactions

The Board has adopted a written related person transaction policy that
sets forth the following policies and procedures for the review and approval or ratification of related person transactions. A “related
person transaction” is a transaction, arrangement or relationship in which Holdco or any of its subsidiaries was, is or will be
a participant, the amount of which involved exceeds $120,000 (or, for so long as Holdco remains a “smaller reporting company”
the lesser of (i) $120,000 and (ii) 1% of Holdco’s average total assets of the two completed fiscal years), and in which any related
person had,