Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 256

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1B
Chunk 256
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 (i) whether such Stockholder Designee is to be elected to the
New Semnur Board at a meeting of stockholders called for the purpose of electing directors (or by consent in lieu of meeting) or appointed
by the New Semnur Board in order to fill any vacancy created by the departure of any director or increase in the authorized number of
members of the New Semnur Board, or (ii) the size of the New Semnur Board, and New Semnur will be required to take all actions reasonably
necessary, and not otherwise prohibited by applicable law, to cause each Stockholder Designee to be so nominated, elected or appointed
to the New Semnur Board as more fully described in the Stockholder Agreement. Scilex shall also have the right to designate a replacement
director for any Stockholder Designee that has been removed from the New Semnur Board and the right to appoint a representative of Scilex
to attend all meetings of the committees of the New Semnur Board. The Stockholder Agreement also provides that New Semnur will be prohibited
from taking certain actions without the consent of Scilex. Such actions include, among other things, amendments to the certificate of
designations designating the New Semnur Preferred Shares, increases or decreases in the size of the New Semnur Board, the incurrence
of certain amounts of indebtedness and the payment of dividends on New Semnur Common Shares. In addition, the Stockholder Agreement provides
that New Semnur will be prohibited from taking certain actions without the consent of Oramed (but only until the date on which all payments
under the Oramed Note and all other obligations under the Oramed Note have been paid in full in cash (such date, the “Release Date”)).
The actions that require Oramed’s consent include, among other things, (i) amending certain agreements, including the Stockholder
Agreement, the Merger Agreement, New Semnur’s certificate of incorporation or bylaws, Semnur’s 2024 Stock Option Plan, the
Stockholder Support Agreement and the Debt Exchange Agreement, in each case that adversely affect the rights of capital stock held by
Scilex in New Semnur, (ii) approval of the issuance of capital stock of New Semnur that would result in Scilex holding less than 55%
of the outstanding shares or voting power of New Semnur, (iii