Company: RAIN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076727
Chunk: 75

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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.1 million Rollover). Subsequent to June 30, 2025, the Company drew an additional amount of approximately $354,000 under
the LOC.

As of June 30, 2025 and December 31, 2024, the
Company had an outstanding accrued interest balance in connection with both the Note and the LOC of approximately $118,000 and $38,000,
respectively.

Employment Agreement

Effective January 2, 2025, RWT entered into a
binding offer letter (the “Offer Letter”), which was later amended on June 27, 2025, with its new CEO, Mr. Seidl. Pursuant
the amended Offer Letter, Holdco agreed to pay to the CEO (i) an annual salary of $500,000, (ii) an annual incentive bonus up to 200%
of his base salary, subject to Board approval and (iii) a cash bonus of $5.82 million (the “Retention Bonus”) payable on the
earlier of (x) December 31, 2028, (y) the date on which the Company terminates the CEO’s employment without cause, or (z) the date
on which a change of control is consummated. The Company accrues the Retention Bonus over the period of service. As of June 30, 2025,
the Company accrued approximately $14,000 of Retention Bonus in accrued expenses to related party in the accompanying unaudited condensed
consolidated balance sheet.

13

RAIN ENHANCEMENT TECHNOLOGIES HOLDCO, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS

JUNE 30, 2025

In addition, subject to approval by the Board
and the Compensation Committee, Mr. Seidl is also entitled to equity awards under the Company’s equity incentive plan. As of June
30, 2025, no equity awards have been granted.

Board of Directors Agreement

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 the Board to fill the resulting
vacancies.

In connection with their appointments to the Board,
Mr. Reardon and Mr. Peperzak each entered into Director Agreements which are the form of agreement adopted by the Board in April 2025
to govern the terms of