Company: CXAI
Filing Date: 2025-04-17
Form Type: DEF 14A
Source: 0001829126-25-002762
Chunk: 55

Company: CXApp Inc.
Filing Date: 2025-04-17
Form: DEF 14A
Chunk 55
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 withholding of income and employment taxes. Any additional gain or loss recognized
upon any later disposition of the shares would be capital gain or loss.

Restricted Stock.
A participant acquiring restricted stock will generally recognize ordinary income equal to the fair market value of the shares on the
vesting date. If the participant is an employee, such ordinary income is generally subject to withholding of income and employment taxes.
The participant may elect, pursuant to Section 83(b) of the Code, to accelerate the ordinary income tax event to the date of acquisition
by filing an election with the Internal Revenue Service no later than 30 days after the date the shares are acquired. Upon the sale
of shares acquired pursuant to a restricted stock award, any gain or loss, based on the difference between the sale price and the fair
market value on the date the ordinary income tax event occurs, will be taxed as capital gain or loss.

Restricted Stock Units.
There are generally no immediate tax consequences of receiving an award of restricted stock units. A participant who is awarded restricted
stock units will generally be required to recognize ordinary income in an amount equal to the fair market value of shares issued
to such participant at the end of the applicable vesting period or, if later, the settlement date elected by the administrator or a participant.
If the participant is an employee, such ordinary income is generally subject to withholding of income and employment taxes. Any additional
gain or loss recognized upon any later disposition of any shares received would be capital gain or loss.

Performance Units and Performance Shares. A participant will generally recognize no income upon the grant of a performance unit or performance share
award. Upon the settlement of such awards, participants will normally recognize ordinary income in the year of receipt in an amount equal
to the cash received and the fair market value of any cash or nonrestricted shares received. If the participant is an employee, such ordinary
income is generally subject to withholding of income and employment taxes. Upon the sale of any shares received, any gain or loss, based
on the difference between the sale price and the fair market value on the date the ordinary income tax event occurs, will be taxed as
capital gain or loss.

Section 409A.
Section 409A of the Code provides certain requirements for non-qualified deferred compensation arrangements with respect to an individual’s
deferral and distribution elections and permissible distribution events. Awards granted under the Incentive Plan with a deferral feature
will be subject to the requirements of Section 409A of the Code. If an award is subject