Company: PRME
Filing Date: 2025-07-02
Form Type: PRE 14A
Source: 0001193125-25-155000
Chunk: 15

Company: Prime Medicine, Inc.
Filing Date: 2025-07-02
Form: PRE 14A
Chunk 15
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 As a result, our Eligible Optionholders now hold options
with exercise prices meaningfully above the recent trading range of our common stock (often referred to as “underwater” or

9

“out-of-the-money”),rendering the options a less effective means of incentivizing and retaining such holders, as shown in the table below.

|                                         |     | Range of        
 Exercise Prices 
 of Eligible     
 Options         |     |     Number of Shares 
           Underlying 
 Eligible Options (1) |     | Fair Market Value 
   of Common Stock 
   Per Share as of 
     June 30, 2025 
               (2) |     | % Over Fair Market    
 Value of Common       
 Stock Per Share as of 
 June 30, 2025         |
| Current non-executive officer employees |     | $3.45 - $18.22  |     |            3,900,066 |     |             $2.47 |     | 39.68% - 637.65%      |
| Current executive officers              |     | $3.67 - $18.22  |     |            3,426,401 |     |             $2.47 |     | 48.58% - 637.65%      |
| Current non-employee directors          |     | $7.68 - $17.00  |     |              958,920 |     |             $2.47 |     | 210.93% - 588.26%     |

| (1) | Excludes the number of shares underlying certain outstanding stock options granted under the Plans that will           
 cease to be Eligible Options as of the Repricing Date due to the previously scheduled departures of certain employees. |

| (2) | Fair market value is based on the closing price per share of our common stock on The Nasdaq Global Market on 
 June 30, 2025.                                                                                               |

We also recently announced a strategic restructuring, including the deprioritization of our Chronic Granulomatous Disease programs, as well as a cost and workforce reduction to focus on our liver franchise and programs funded through external partnerships, placing additional pressure on the retention of our Eligible Optionholders. Although we continue to believe that stock options are an important component of the Company’s compensation program, underwater options may be perceived by their holders