Company: ARAI
Filing Date: 2025-01-27
Form Type: S-1/A
Source: 0001493152-25-003660
Chunk: 117

Company: Arrive AI Inc.
Filing Date: 2025-01-27
Form: S-1/A
Chunk 117
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 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 filed as an exhibit to this prospectus.

Brandon Pargoe

As detailed elsewhere in
this prospectus, on December 5, 2023, the Company acquired certain assets of AirBox Technologies (“AirBox”), in an
all-stock transaction. The acquisition included AirBox’s patent portfolio and other tangible assets, in addition,
AirBox’s CEO Brandon Pargoe joined the Arrive team in a role of product line lead (Airbox), as an independent
contractor. On November 29, 2023, the Company entered into an independent contractor agreement with Mr. Pargoe as its Vice President
of Product Operations, effective December 1, 2023 (“Pargoe Agreement”). The Company agreed to pay Mr. Pargoe a base
salary of $5,000 per month for his service as the Product Line Lead for a term of two years and the Company has