Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 134

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 134
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 to Holdco for up to $7
million, in addition to the Rollover amount described below. The Loan has an interest rate of 5%, and interest will be due and payable
in arrears quarterly. 

Prior to Closing, the outstanding amount that
Coliseum and RWT owed to Mr. You and his affiliates were: (i) approximately $1.7 million and approximately $333,000 of advances to Coliseum
and RWT, respectively, (ii) convertible note balance of $667,500 to Coliseum, and a portion under the Note discussed above of approximately
$216,000 to RWT (which amount includes $200,000 in principal and approximately $16,000 in accrued interest), and (iii) an outstanding
balance of $180,000 in accrued administrative fees to Coliseum, for a total of approximately $3.1 million. The Rollover amounts were
assigned to and assumed by Holdco and are treated for all purposes as Loans outstanding under the Loan Agreement. The Rollover amount
does not reduce the $7 million funding available to the Company under the LOC. As of March 31, 2025, we had drawn approximately $737,000
from the LOC, bringing the total outstanding balance under the LOC to approximately $3.8 million (including the Rollover). Subsequent
to March 31, 2025, we drew down an additional amount of approximately $554,000 under the LOC.

Employment Agreement

On December 31, 2024, Holdco entered into a binding
offer letter (the “Offer Letter”) with its new CEO, Mr. Seidl effective January 2, 2025, pursuant to which Holdco 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, (iii) a contingent bonus
payment of $5.0 million that will be issued under a form of an unsecured note payable (the “Officer Note”) on the earlier
of (x) the four-year anniversary of the Officer Note, subject to the CEO’s continued service with Holdco through such date, (y)
the date of a change in control of Holdco, and (z) the date of termination, if Holdco terminates the CEO’s employment without cause.
Holdco and Mr. Seidl agreed to replace the Officer Note, which was not yet