Company: SION
Filing Date: 2025-01-17
Form Type: S-1
Source: 0001193125-25-008474
Chunk: 258

Company: Sionna Therapeutics, Inc.
Filing Date: 2025-01-17
Form: S-1
Chunk 258
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 effect repricing through cancellation of such outstanding options and by granting such holders new awards in replacement of the cancelled options. The 2020 Plan permits the grant of stock options. The exercise price per share of all options must equal at least 100% of the fair market value per share of our common stock on the date of grant. The term of a stock option may not exceed ten years. An incentive stock option granted to a participant who owns more than 10% of the total combined voting power of all classes of our stock on the date of grant, or any subsidiary corporations, may not have a term in excess of five years and must have an exercise price of at least 110% of the fair market value per share of our common stock on the date of grant. The plan administrator will determine the methods of payment of the exercise price of an option, which may include cash, shares or certain other property or other consideration acceptable to the plan administrator. After a participant’s termination of service, the participant generally may exercise his or her options, to the extent vested as of such date of termination, for 90 days after termination. If termination is due to death or disability, the option generally will remain exercisable, to the extent vested as of such date of termination, for twelve months after such termination. However, in no event may an option be exercised later than the expiration of its term. If termination is for cause, then an option automatically expires upon the date of the optionee’s termination. The 2020 Plan permits the grant of restricted shares of common stock. Restricted stock awards are grants of shares of our common stock that are subject to various restrictions, including restrictions 187

on transferability and forfeitures provisions. Shares of restricted stock will vest, and the restrictions on such shares will lapse, in accordance with terms and conditions established by the
plan administrator.

The 2020 Plan permits the grant of unrestricted shares of common stock. Unrestricted stock awards may have been granted to
participants in recognition of past services or for other valid consideration and may be issued in lieu of cash compensation due to such participant.

The 2020 Plan permits the grant of restricted stock units. A restricted stock unit is an unfunded and unsecured promise, denominated in shares, to
deliver shares or cash measured by the value of shares in the future, subject to the satisfaction of specified vesting requirements. After settlement, the plan administrator issues the underlying shares or the cash equivalent of the number of
shares, or a combination of both. The