Company: ARAI
Filing Date: 2025-05-14
Form Type: DRS
Source: 0001641172-25-010170
Chunk: 113

Company: Arrive AI Inc.
Filing Date: 2025-05-14
Form: DRS
Chunk 113
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 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 filed as an exhibit to our Direct Listing Registration Statement.

Brandon Pargoe

As detailed elsewhere in
this prospectus, on