Management Change/Compensation (Form 8-K)

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On July 31, 2025, Sonnet BioTherapeutics Holdings, Inc. (the "Company") entered into an employment agreement (the "Agreement") with Raghu Rao, the Company's interim Chief Executive Officer. Pursuant to the Agreement, Mr. Rao is entitled to, among other things, (i) an annual gross base salary of $400,000, (ii) eligibility for a bonus equal to 5.0% of gross revenue received by the Company from a strategic transaction (subject to certain exceptions and not including the Company's proposed transaction with Rorschach I LLC and Hyperliquid Strategies Inc.) and (iii) at the sole discretion of the Company's board of directors, a cash or equity/options/restricted stock units bonus for achieving or progressing company stated goals. The Agreement shall terminate in accordance with its terms. Pursuant to the Agreement, if Mr. Rao is terminated without "Cause" (as defined in the Agreement), he is entitled to his base salary for six months, payable in accordance with the Company's then-current payroll practices and subject to all required withholdings. In the event Mr. Rao resigns for any reason, Mr. Rao will not receive any severance benefits, provided that, pursuant to the Company's standard payroll policies, the Company shall pay Mr. Rao any accrued obligations.

Also on July 31, 2025, the board of directors of the Company approved a discretionary bonus to Mr. Rao of $100,000.

The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement, a copy of which is filed herewith as Exhibit 10.1, and is incorporated herein by reference.