Company: SCLXW
Filing Date: 2025-10-28
Form Type: PRE 14A
Source: 0001193125-25-253884
Chunk: 13

Company: Scilex Holding Co
Filing Date: 2025-10-28
Form: PRE 14A
Chunk 13
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 value of the Company’s stock increases after the date the option is granted. The Company has granted stock options under the 2022 Plan consistent with the view that stock-based incentive compensation opportunities play a key role in the Company’s ability to recruit, motivate and retain qualified individuals. While the Company’s compensation packages generally include a number of different components, the Company believes that equity compensation is key to linking pay to performance as it encourages employees to work toward the Company’s success and aligns their interests with those of the Company’s stockholders by providing them with a means by which they can benefit from increasing the value of the Company’s stock. Over the past three years, we have experienced a significant decline in our stock price and our stock price remains at a significantly low level compared to its previous price levels. As a result, most of the stock options currently outstanding have exercise prices that are above the recent trading prices of our Common Stock and certain stock options granted under the 2022 Plan that are currently outstanding have exercise prices that are significantly above (and in certain cases, more than 22 times) the recent trading prices of our Common Stock. As of October 17, 2025, there were a total of 1,511,113options outstanding under all of our existing equity incentive plans and 6,015 shares of our Common Stock remained available for future issuance under the 2022 Plan (excluding additional shares that will be issuable under such plan pursuant to the automatic share increase provisions set forth therein). Of these outstanding options, options to purchase an aggregate of 289,405 shares of our Common Stock (or approximately 19% of all outstanding options) granted under the 2022 Plan had exercise prices of $282.80 per share and the remaining term of such options is approximately 7.3 years. Although the Company continues to believe that stock options are an important component of the Company’s compensation program, the Eligible Options (as defined below) may be perceived by their holders as having little or no incentive and retention effect due to the difference between the exercise prices and the current stock price. Based on the closing price of our Common Stock on October 17, 2025 on the Nasdaq Capital Market (“Nasdaq”), which was $12.78 per share, such options had an exercise price that is more than 22 times such closing price. The Board believes that the Option Repricing is in the best interests of our stockholders and the Company and enables us to:

| • |     | assure that the existing