Company: PRME
Filing Date: 2025-07-02
Form Type: PRE 14A
Source: 0001193125-25-155000
Chunk: 13

Company: Prime Medicine, Inc.
Filing Date: 2025-07-02
Form: PRE 14A
Chunk 13
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 Eligible Options held by individuals who are members of the Board or executive officers of
the Company, as applicable, on the Repricing Date (each, a “Retention Date”), (ii) an Eligible Optionholder’s Service Relationship (as defined in the 2022 Plan or 2019 Plan, as applicable) is terminated by the Company for Cause (as
defined in the applicable award agreement) prior to the applicable Retention Date, or (iii) an Eligible Optionholder resigns from the Company (including as a member of the Board) for any reason prior to the applicable Retention Date (provided
that, for any Eligible Optionholder party to an employment agreement, offer letter or severance plan or policy pursuant to which such Eligible Optionholder is entitled to “good reason” protection, such Eligible Optionholder shall retain
the Repriced Exercise Price if such Eligible Optionholder resigns for “good reason”). Notwithstanding the foregoing, in the event of (A) a Sale Event (as defined in the 2022 Plan or 2019 Plan, as applicable) prior to the applicable
Retention Date, (B) the termination of the Eligible Optionholder’s Service Relationship by the Company without Cause or for “good reason” (as applicable) or (iii) the Eligible Optionholder’s death or disability (as
determined in accordance with the 2022 Plan or 2019 Plan, as applicable),

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each Eligible Option shall retain the Repriced Exercise Price to the extent it has not otherwise reverted to the Original Price in accordance with the foregoing and the ability to exercise such
Eligible Option may be accelerated to earlier than the applicable Retention Date.

The Board believes that the Option Repricing is in the
best interests of the Company and its stockholders, as it provides incentives to retain and motivate the Eligible Optionholders without incurring the stock dilution that would result from significant additional equity grants or additional cash
expenditures that would result from additional cash compensation. Additionally, the Board continues to believe in value creation rather than value transfer and views the Option Repricing as consistent with its approach of orienting long-term
incentives toward stock options as the primary tool to minimize incremental dilution for stockholders, facilitate employee and director retention as the Company pursues its business strategy, restore the retention value of the Eligible Options, and
provide Eligible Optionholders with a more realistic incentive to drive stockholder value creation, thereby supporting the