Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 1467

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 9B
Chunk 1467
---
 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 of the RWT 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.

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