Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 1386

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 9A
Chunk 1386
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 date the awards are granted.

57

RWT Executive Employment Agreement

On June 26, 2024, RWT entered
into an employment agreement (the “Employment Agreement”) with Christopher Riley for the position of Chief Executive Officer.
The Employment Agreement was terminated effective as of January 30, 2025, as discussed in more detail below. While in effect, the Employment
Agreement provided for “at-will” employment and became effective on December 10, 2024 (the “Effective Date”).
Prior to the Effective Date, Mr. Riley was to be compensated at an hourly rate for services performed relating to the Company’s
commercial operation (the “Hourly Services”). After the Effective Date, Mr. Riley was to be paid an annual base salary of
$500,000, paid in accordance with RWT’s customary payroll practices. Mr. Riley’s base salary was subject to review after RWT
has generated at least $100 million in revenue in any fiscal year, and he was eligible for an annual cash bonus of up to 200% of his base
salary contingent on Company and personal performance goals established by the board of directors or the compensation committee of the
board of directors. In addition, the Employment Agreement provided that, within 90 days following the Effective Date, RWT 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 RWT. 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 RWT Class A Common Stock equal to 8% of RWT’s
fully diluted outstanding shares at such time, at an exercise price equal to the greater of (i) the per share value of the RWT Class A
Common Stock at a $200,000,000 valuation and (ii) the fair market value