Company: LNAI
Filing Date: 2025-10-15
Form Type: DEF 14A
Source: 0001731122-25-001378
Chunk: 61

Company: Lunai Bioworks Inc.
Filing Date: 2025-10-15
Form: DEF 14A
Chunk 61
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 any cash received and the fair market value of any shares received on the date of payment or delivery, provided that the award
is exempt from or complies with Section 409A of the Code. In that taxable year, we will receive a federal income tax deduction in an amount
equal to the ordinary income which the participant has recognized.

Federal Tax Withholding.
Any ordinary income realized by a participant upon the granting, vesting, exercise or conversion of an award under the Amended Incentive
Plan, as applicable, is subject to withholding of federal, state, and local income tax and to withholding of the participant’s share
of tax under the Federal Insurance Contribution Act and the Federal Unemployment Tax Act. To satisfy our federal income tax withholding
requirements, we will have the right to require, as a condition to delivery of any certificate for shares of Common Stock or the registration
of the shares in the participant’s name, that the participant remit to us an amount sufficient to satisfy the withholding requirements.
Such payment may be made by (i) the delivery of cash to us in an amount that equals or exceeds our required tax withholding obligations;
(ii) if we consent in writing, the actual delivery to us by the exercising participant of shares of our Common Stock that the participant
has not acquired from us within 6 months prior to the date of exercise, which have an aggregate fair market value that equals or exceeds
the required tax withholding payment; (iii) if we consent in writing, our withholding of a number of shares to be delivered upon the exercise
of the stock option that have an aggregate fair market value that equals (but does not exceed) the required tax withholding payment; or
(iv) any combination of (i), (ii), or (iii). Withholding does not represent an increase in the participant’s total income tax obligation,
since it is fully credited toward his or her tax liability for the year. Additionally, withholding does not affect the participant’s
tax basis in the shares. Compensation income realized and tax withheld will be reflected on Forms W-2 supplied by us to employees no later
than January 31 of the succeeding year. Deferred compensation that is subject to Section 409A of the Code will be subject to certain federal
income tax withholding and reporting requirements.

Tax Consequences to the Company.
To the extent that a participant recognizes ordinary income in the circumstances described above, we will be entitled to a corresponding
deduction provided that, among other things, the income meets the test of reasonableness,