Company: TEM
Filing Date: 2025-02-25
Form Type: S-1
Source: 0001193125-25-034442
Chunk: 42

Company: Tempus AI, Inc.
Filing Date: 2025-02-25
Form: S-1
Chunk 42
---
 Event requirement of the PSUs was satisfied on the effective date of the IPO. The performance-vesting condition of the PSUs, which was based on the company’s total enterprise valuation being at least $6 billion as of the Liquidity Event Date, was removed by our board of directors in July 2023. Accordingly, the PSUs are treated as RSUs as the terms of such PSUs are consistent with those of our outstanding RSUs. Transferability.Awards are generally not transferable other than by will or the laws of descent and distribution. The board, in its discretion, may allow certain transfers of options as set forth in an award agreement and subject to certain securities law restrictions. Adjustments. In the event of certain corporate events or changes in our capitalization, the board will make adjustments to one or more of the number and kind of shares that may be delivered under the 2015 Plan or 27

covered by each outstanding award, the ISO share reserve under the 2015 Plan and the exercise or purchase price per share of outstanding awards in order to prevent dilution or enlargement of the participants’ rights under the 2015 Plan. Change in Control. Upon a change in control, without the consent of any participant, the board may provide for any one or more of the following:

| • |     | accelerate the time of exercisability, vesting and/or settlement of an award, |

| • |     | the assumption or substitution of outstanding award by a surviving, continuing, successor or purchasing 
 corporation or other business entity (or any parent thereof); or                                        |

| • |     | awards to be cancelled, to the extent not vested or exercised before the transaction, in exchange for such                                                                                                           
 cash, stock or other property in an amount equal to the excess, if any, of (1) the fair market value of the consideration paid in the transaction, over (2) any exercise or purchase price payable under such award. |

Under the 2015 Plan, a change in control is generally (1) an indirect sale or exchange by our stockholders of securities representing more than 50% of the total combined voting power of then outstanding voting securities entitled to vote generally in the election of directors, (2) a merger or consolidation in which we are a party, (3) the sale, exchange or transfer of all or substantially all our assets, or (4) our complete liquidation or dissolution. Withholding. We have the right to deduct from any and all payments made under the