Company: LNAI
Filing Date: 2025-10-15
Form Type: DEF 14A
Source: 0001731122-25-001378
Chunk: 47

Company: Lunai Bioworks Inc.
Filing Date: 2025-10-15
Form: DEF 14A
Chunk 47
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2019 and 2023 Plans (“”) to purchase 608,825
shares of Common Stock. At June 30, 2025, the Company had 509,344 options available to be issued under the 2023 Plan.

Our Amended Incentive Plan Combines Compensation and Governance Best Practices

The Amended Incentive Plan includes
provisions that are designed to protect our stockholders’ interests and to reflect corporate governance best practices, including:

“Evergreen” provision for additional shares. The Amended Incentive Plan will contain an annual “evergreen” provision. Therefore, the share reserve
(except for Incentive Stock Options) will increase automatically on an annual basis.

No liberal share counting or recycling. The following shares of Common Stock will not become available again for issuance under the Amended Incentive Plan: (i)
shares of Common Stock underlying any Incentives that are retained or repurchased on the exercise of a Stock Option or the vesting or
issuance of any Incentive to cover the exercise price and/or tax withholding required by the Company in connection with vesting; and (ii)
shares of Common Stock repurchased using exercise price proceeds.

Repricing is not allowed without stockholder approval. The Amended Incentive Plan expressly prohibits the repricing of outstanding Stock Options or SARs, the cancellation
of any outstanding Stock Options or SARs in exchange for Stock Options or SARs that have an exercise or strike price that is less than
the value of the exercise or strike price of the original Stock Options or SARs, and the cancellation of any outstanding Stock Options
or SARs that have an exercise or strike price greater than the then-current fair market value of our Common Stock in exchange for cash
or other consideration, without prior stockholder approval.

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No discounted Stock Options or SARs. All Stock Options and SARs granted under the Amended Incentive Plan must have an exercise price equal to or greater than
the fair market value of our Common Stock on the date the Stock Option or SAR is granted.

Minimum vesting requirements.
The Amended Incentive Plan provides that subject to certain exceptions, no Incentive may vest until at least one year following the date
of grant of such Incentive, except that up to 5% of the Authorized Shares under the Amended Incentive Plan may be subject to Incentives
that do not meet such vesting requirements, other than