Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119822
Chunk: 325

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 325
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 or service. These indemnification agreements also require us to advance all
expenses actually and reasonably incurred by the directors and executive officers in connection with any proceeding. We believe that these agreements are necessary to attract and retain qualified individuals to serve as directors and executive
officers. We also maintain directors’ and officers’ liability insurance.

The above description of the indemnification
provisions of the Certificate of Incorporation, the Bylaws and the indemnification agreements is not complete and is qualified in its entirety by reference to these documents, each of which is filed as an exhibit to the registration statement of
which this prospectus forms a part.

Certain of our non-employee directors may, through their
relationships with their employers, be insured or indemnified against certain liabilities incurred in their capacity as members of our Board.

The limitation of liability and indemnification provisions in the Certificate of Incorporation and the Bylaws may discourage stockholders from
bringing a lawsuit against our directors and officers for breach of their fiduciary duty. They may also reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit us and our
stockholders. In addition, a stockholder’s investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. Insofar as
indemnification for liabilities arising under the Securities Act, may be permitted to directors or executive officers, we have been informed that in the opinion of the SEC, such indemnification is against public policy and is therefore
unenforceable.

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EXECUTIVE AND DIRECTOR COMPENSATION As disclosed elsewhere in this prospectus, on April 15, 2025, we effected the Reverse Stock Split of our Common Stock at a ratio of 1-for-35.Unless otherwise noted, the share and per share information of equity held by our named executive officers and directors and relating to our equity plans reflects the effect of the Reverse Stock Split. Executive Compensation Overview To achieve our goals, we have designed, and intend to modify as necessary, our compensation and benefits programs to attract, retain, incentivize and reward deeply talented and qualified executives who share our philosophy and desire to work towards achieving our goals. We believe our compensation programs should promote the success of the Company and align executive incentives with the long-term interests of our stockholders. This section provides an overview of the material components of our executive compensation programs, including a narrative description of the material factors necessary to understand the information disclosed