Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 511

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1C
Chunk 511
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 RHY agreed to issue an LOC to Holdco
for up to $7 million, in addition to the Rollover amount described below. The Loan has an interest rate of 5%, and interest will be due
and payable in arrears quarterly. 

Prior to Closing, the outstanding amount that Coliseum and RWT owed
to Mr. You and his affiliates are: (i) approximately $1.7 million and approximately $333,000 of advances to Coliseum and RWT, respectively,
(ii) convertible note balance of $667,500 to Coliseum, and a portion under the Note discussed above of approximately $216,000 to RWT (which
amount includes $200,000 in principal and approximately $16,000 in accrued interest), and (iii) an outstanding balance of $180,000 in
accrued administrative fees to Coliseum, for a total of approximately $3.1 million. All of these outstanding amounts (the “Rollover”)
were assigned to and assumed by Holdco and are treated for all purposes as loans outstanding under the Loan Agreement. The Loan has an
interest rate of 5%, and interest will be due and payable in arrears quarterly. The Rollover amount does not reduce the $7 million funding
available to the Company under the LOC. As of December 31, 2024, the Company had not borrowed any of the $7 million available funding
under the LOC. Subsequent to December 31, 2024, the Company borrowed approximately $839,000 under the LOC.

Employment Agreement

On December 31, 2024, Holdco entered into a binding offer letter (the “Offer Letter”) with its new CEO, Mr. Seidl effective
January 2, 2025, pursuant to which Holdco agreed to pay to the CEO (i) an annual salary of $500,000, (ii) a contingent bonus payment
of $5.0 million that will be issued under a form of an unsecured note payable (the “Officer Note”) on the earlier of (x)
four-year anniversary of the Officer Note, subject to the CEO’s continued service with Holdco through such date, and (y) the date
of termination, if Holdco terminates the CEO’s employment without cause. As of the date of this filing, the Officer Note has not
been issued.

Note 6 — Warrants

On the Closing Date, all of Col