Company: ARAI
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001641172-25-005394
Chunk: 120

Company: Arrive AI Inc.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 120
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 2022, the Company entered into an employment agreement with Mr. Hamm as its Chief Operating Officer on at-will basis (“Hamm Agreement”). Pursuant to the Hamm Agreement, Mr. Hamm will receive an annual salary of $240,000. He is eligible to receive stock options at a quantity, issue, and strike price will be such that at a company valuation of $1 billion USD valuation, the net value, after long term capital gains, is $10 million USD (ten million dollars). The vesting schedule allocates the stock options into two equal parts: time-based Non-Qualified Stock Options (NQSO) and performance-based Incentive Stock Options (ISO). The first 50% (NQSO) vests quarterly over four years with a one-year cliff. On day 366, 25% of this tranche vests, followed by 6.25% quarterly until fully vested. If employment ends before day 366, no NQSO options will 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 this prospectus.

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).