Company: ARAI
Filing Date: 2025-06-17
Form Type: S-1
Source: 0001641172-25-015428
Chunk: 126

Company: Arrive AI Inc.
Filing Date: 2025-06-17
Form: S-1
Chunk 126
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 6.25% quarterly until fully vested. If employment ends before day 366, no NQSO options
will vest. The remaining 50% (ISO) is performance-based. Half of this portion (25% of the total options) vests when the company valuation
sustains $500 million, and the remaining half vests at $1 billion, provided each valuation holds for six months. These options also follow
the time-based vesting structure. In the event of a change of control, 50% of all options will vest immediately under a single trigger,
with the remaining 50% vesting upon a second trigger. Mr. Hamm may be eligible to bonus compensation out of net revenues of the Company
at the sole discretion of the Board of Directors. The employment agreement has been filed as an exhibit to our Direct Listing Registration
Statement.

Todd Pepmeier,

On November 13, 2023, the Company entered into
an employment agreement with Mr. Pepmeier as its Chief Financial Officer on at-will basis (“Pepmeier Agreement”). Pursuant
to the Pepmeier Agreement, Mr. Pepmeier will receive an annual salary of $150,000, an annual bonus of $25,000, and 125,000 stock options
with an exercise price of $0.76 per share (after giving effect to the Reverse Stock Split), which will become effective as of August
15, 2023. The stock options’ vesting schedule divides the 125,000 stock options into two equal parts: time-based Non-Qualified
Stock Options (NQSO) and performance-based Incentive Stock Options (ISO). The NQSO (62,500 options) vest over four years, with a one-year
cliff. After one year, 25% vests, followed by 6.25% quarterly until fully vested. If employment ends before August 15, 2024, no NQSO
will vest. The ISO (62,500 options) vest upon achieving company valuation milestones: 50% when the valuation sustains $600 million for
six months and the remaining 50% at $1 billion for six months, with time-based vesting requirements. In the event of a change of control,
50% of all options vest immediately under a “single trigger”, with the remaining 50% vesting under “double trigger.”
Mr. Pepmeier will also be eligible to receive certain employee benefits. The employment agreement has been