Company: LNAI
Filing Date: 2025-01-13
Form Type: 8-K
Source: 0001731122-25-000067
Chunk: 1

Company: Lunai Bioworks Inc.
Filing Date: 2025-01-13
Form: 8-K
Item: Item 5.02
Chunk 1
---
 which will vest ratably
per quarter for eight quarters. In addition, the Employment Agreement provides for a discretionary equity grant on the first anniversary
of the employment date in such amount and on such terms as determined in the sole discretion of the Company.

Mr. Fuentes is eligible to participate
in the benefit plans and programs generally available to the Company’s employees. Mr. Fuentes will also be entitled to reimbursement
of all reasonable and necessary business expenses incurred or paid by him in the performance of his duties and responsibilities for the
Company, subject to providing written, detailed substantiation of such expenses at the Company’s request. If Mr. Fuentes is terminated
without cause or if Mr. Fuentes terminates his employment for good reason, the Company agrees to provide to Mr. Fuentes as severance:
(i) an amount equal to six (6) months of his base salary, (ii) if Mr. Fuentes timely elects to continue health plan coverage under COBRA,
reimbursement of premiums to continue health care benefits coverage under COBRA for the 6 months following the date of Mr. Fuentes’
termination and (iii) accelerated vesting of all time-based equity awards. “ Good Reason” in the Employment Agreement includes
the sale of substantially all of the assets of the Company or a merger in which the shareholders of the Company do not retain control.

The summary of the Employment Agreement
set forth above does not purport to be a complete statement of the terms of such document. The summary is qualified in its entirety by
reference to the full text of the Employment Agreement, which will be filed as an exhibit to the Company’s next Quarterly Report
on Form 10-Q.

Mr. Fuentes does not have any family
relationships with any of the Company’s other officers or directors and he has no direct or indirect material interest in any transaction
required to be disclosed pursuant to Item 404(a) of Regulation S-K.

Interim Chief Financial Officer Termination

In connection with Mr. Fuentes’
appointment as Chief Financial Officer, Simon Tarsh was removed as Interim Chief Financial Officer of the Company.

SIGNATURES