Company: LNAI
Filing Date: 2025-10-15
Form Type: DEF 14A
Source: 0001731122-25-001378
Chunk: 62

Company: Lunai Bioworks Inc.
Filing Date: 2025-10-15
Form: DEF 14A
Chunk 62
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 is an ordinary and necessary business expense,
is not an “excess parachute payment” within the meaning of Section 280G of the Code, and is not disallowed by the $1,000,000
limitation on certain executive compensation under Section 162(m) of the Code.

Million Dollar Deduction Limit and Other Tax Matters. We may not deduct compensation of more than $1,000,000 that is paid to “covered employees” (as
defined in Section 162(m) of the Code), which include (i) an individual (or, in certain circumstances, his or her beneficiaries) who,
at any time during the taxable year, is either our principal executive officer or principal financial officer; (ii) an individual who
is among our three highest compensated officers for the taxable year (other than an individual who was either our principal executive
officer or principal financial officer at any time during the taxable year); or (iii) anyone who was a covered employee for purposes of
Section 162(m) of the Code for any tax year beginning on or after January 1, 2017.

If an individual’s rights
under the Amended Incentive Plan are accelerated as a result of a change in control and the individual is a “disqualified individual”
under Section 280G of the Code, the value of any such accelerated rights received by such individual may be included in determining whether
or not such individual has received an “excess parachute payment” under Section 280G of the Code, which could result in (i)
the imposition of a 20% federal excise tax (in addition to federal income and employment taxes) payable by the individual on the value
of such accelerated rights, and (ii) the loss by us of a compensation deduction.

Interest of Directors and Executive Officers

All members of the Board and all
of our executive officers are eligible for awards under the Amended Incentive Plan and, thus, have a personal interest in the approval
of the Amended Incentive Plan.

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New Plan Benefits

With respect to the increased number
of Authorized Shares pursuant to the Amended Incentive Plan, we cannot currently determine the benefits or number of shares subject to
awards that may be granted in the future to eligible participants under the Amended Incentive Plan because the grant of awards and the
terms of such awards are to be determined in the sole discretion of the Committee. We cannot determine at this