Company: RAIN
Filing Date: 2025-01-31
Form Type: S-1
Source: 0001213900-25-008536
Chunk: 146

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-01-31
Form: S-1
Chunk 146
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that, within 90 days following the Effective Date, RET would issue to Mr. Riley a bonus retention note in the principal amount of $5,000,000,
bearing interest at the applicable federal rate published by the Internal Revenue Service for instruments having a term between 3 and
9 years. The outstanding principal balance of the note and accrued unpaid interest would be due and payable on the four-year anniversary
of the Effective Date, contingent on Mr. Riley’s continued employment. The payment of the note is subject to acceleration upon termination
of Mr. Riley’s employment without Cause (as defined in the Employment Agreement) following the one year anniversary of the Business
Combination Closing Date, or upon a change of control of RET. Following the Effective Date, and upon approval by the compensation committee
of the board of directors, the Employment Agreement provided that Mr. Riley would be granted an option to purchase a number of shares
of RET Class A Common Stock equal to 8% of RET’s fully diluted outstanding shares at such time, at an exercise price equal to the
greater of (i) the per share value of the RET Class A Common Stock at a $200,000,000 valuation and (ii) the fair market value of the RET
Class A Common Stock on the date of grant. Mr. Riley’s options will vest as follows: (x) 50% on the one-year anniversary of
Mr. Riley beginning to provide the Hourly Services and (y) 50% on the two-year anniversary of the Closing Date. Mr. Riley was not granted
any Options pursuant to the Employment Agreement before his resignation.

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Upon termination of Mr. Riley’s employment, pursuant to the Employment Agreement, he would be entitled to be paid his unpaid base salary through the termination date, unreimbursed business expenses, and any vested non-forfeitable amounts owing or accrued as of the termination date, in each case in accordance with RET’s policies and practices. In addition, (i) in the event that Mr. Riley’s employment is terminated by RET without Cause, then RET will pay Mr. Riley an amount in cash equal to 12 months of his then-current base salary in equal installments over the 12-month period following his termination (the “Severance Payment”), and (ii) in the event Mr. Riley’s employment is terminated by RET without Cause upon or within 12 months following a Change in Control (as defined in RET’s incentive plan), provided such Change