Company: RAIN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110062
Chunk: 41

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 Rollover amount.

As of September 30, 2025, we had drawn approximately $3.5 million under
the LOC, bringing the total outstanding balance under the Loan Agreement to approximately $6.6 million (including the $3.1 million
Rollover). Subsequent to September 30, 2025, we drew an additional amount of approximately $310,000 under the LOC.

As of September 30, 2025 and December 31, 2024, we had an outstanding
accrued interest balance in connection with both the Note and the LOC of approximately $362,000 and $38,000, respectively.

23

Employment Agreement

Effective January 2, 2025, we entered into a binding
offer letter (the “Offer Letter”), which was later amended on June 27, 2025, with our new CEO, Mr. Seidl. Pursuant to the
amended Offer Letter, we 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 we terminate the CEO’s employment without cause, or (z) the date on which a change
of control is consummated. We accrue the Retention Bonus over the period of service. As of September 30, 2025, we accrued approximately
$416,000 of Retention Bonus in accrued expenses to related party in the accompanying unaudited condensed consolidated balance sheet.

In addition, subject to approval by the Board
and the Compensation Committee, Mr. Seidl is also entitled to equity awards under our equity incentive plan. On September 5, 2025, we
granted 602,320 RSAs to Mr. Seidl, with 50% of which shall vest on January 1, 2026 and 50% of which shall vest on January 1, 2027, subject
to continued employment or service through such vesting date.

Board 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