Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 360

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1B
Chunk 360
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 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 vested non-forfeitable amounts owing or accrued as of the termination date, in each case in accordance
with RWT’s policies and practices. In addition, (i) in the event that Mr. Riley’s employment is terminated by RWT without
Cause, then RWT will pay Mr. Riley an amount in cash equal to 12 months of his then-current base salary in equal installments over the
12-month period following his termination (the “Severance Payment”), and (ii) in the event Mr. Riley’s employment is
terminated by RWT without Cause upon or within 12 months following a Change in Control (as defined in RWT’s incentive plan), provided
such Change in Control constitutes a change in control under Section