Company: AIRJW
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002263
Chunk: 739

Company: AirJoule Technologies Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 3
Chunk 739
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 whole cent) equal
to (A) the exercise price per Legacy Montana common unit underlying such option immediately prior to the Closing divided by (B) the
number of shares of Class A common stock issued in respect of each Legacy Montana common unit in the Business Combination pursuant
to the Merger Agreement.

Immediately prior to the Closing, 100% of the total outstanding Legacy
Montana Class A common units and 7% of the total outstanding Legacy Montana Class B common units (or an aggregate of approximately 18%
of the total outstanding Legacy Montana Class A units and Legacy Montana Class B units) were held by unitholders that continue as directors,
officers, employees or contractors of the Post-Combination Company. The retention of certain employees who continues as directors, officers
or employees of the Post-Combination Company (whose responsibilities include continued technology development and commercial execution)
is integral to the achievement of the milestones that will determine whether Earnout Shares are payable. Legacy Montana does not believe
that such targets are achievable absent the continued involvement of such persons. In June and September 2024, the Company granted equity
awards (pursuant to the terms of the Incentive Plan (as defined below)) to its directors, officers and certain employees of the Company
and the AirJoule JV, and the Company expects to continue to provide competitive compensation, benefits and equity awards to key directors,
officers and employees going forward in order to incentivize these individuals to continue to provide services to the Company.

The Legacy Montana Equity holders have the opportunity to receive additional
equity consideration (in each case, in accordance with their respective pro rata share), and the Company has reserved shares of Class
A common Stock that may be issuable in the future upon full completion of construction and achievement of operational viability (including
all permitting, regulatory approvals and necessary or useful inspections) of new production capacity of Legacy Montana’s key components
or See Note 12 - Fair Value Measurements for additional information on the Earnout Shares.

Upon the Closing of the Business Combination, and following the conversion
of the XPDB Class B common stock to Class A common stock, the sponsor of XPDB beneficially owned 6,827,969 shares of Class A
common stock, of which (i) 5,447,233 shares automatically vested (and shall not be subject to forfeiture) at the Closing and (ii) 1,380,736
shares (the “Subject Vesting Shares