Company: SMNR
Filing Date: 2025-07-02
Form Type: S-4/A
Source: 0001193125-25-154936
Chunk: 424

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-07-02
Form: S-4/A
Chunk 424
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 pursuant to the terms of the applicable option agreement. All Semnur Options shall vest over a period of four years as follows: 1/48th of the shares underlying such options shall vest on each one month anniversary of the vesting commencement date (as set forth in the applicable option agreement), in each case provided that the award recipient remains continuously employed with (or is providing continuous service to) Semnur through the applicable vesting date, inclusive. Notwithstanding the foregoing vesting schedules, the Semnur Options are not exercisable until the earlier to occur of (i) the approval of the Option Exchange (as defined below) pursuant to this Option Exchange Proposal or (ii) the stockholders of Scilex approve the 2024 Stock Option Plan at or prior to the 2025 annual meeting of stockholders of Scilex (notwithstanding the foregoing, such options are not exercisable until all payments and all obligations under the Oramed Note have been paid in full).

Pursuant to the Merger Agreement, assuming the requisite approval by Denali’s shareholders has been obtained prior to the closing of the Business Combination, at the Effective Time, each Semnur Option that is then outstanding shall be converted into the right to receive a New Semnur Option (the “Option Exchange”) upon substantially the same terms and conditions as are in effect with respect to such option immediately prior to the Effective Time, including with respect to vesting and termination-related provisions, except that (i) such New Semnur Option shall relate to that whole number of shares of New Semnur Common Stock (rounded down to the nearest whole share) equal to the number of shares of Semnur Common Stock subject to such Semnur Option, multiplied bythe Exchange Ratio, and (ii) the exercise price per share for each such share of New Semnur Common Stock shall be equal to the exercise price per share of such Semnur Option in effect immediately prior to the Effective Time, divided bythe Exchange Ratio (the exercise price per share, as so determined, being rounded up to the nearest full cent).

Denali’s shareholders are being asked to approve the Option Exchange as contemplated by the Merger Agreement. This separate vote is not otherwise required by Cayman Islands law, but as a matter of good corporate governance Denali is submitting this proposal to its shareholders separately for approval, allowing shareholders the opportunity to present their separate views on important equity compensation matters. The 2024 Stock Option Plan will terminate at or prior to and