Company: UP
Filing Date: 2025-04-01
Form Type: PRE 14A
Source: 0001140361-25-011647
Chunk: 51

Company: Wheels Up Experience Inc.
Filing Date: 2025-04-01
Form: PRE 14A
Chunk 51
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 due under the plan, the Company will pay in cash an amount equal to the value of the shares of Common Stock that would have otherwise been delivered to our Chief Commercial Officer thereunder. None of the 15,000,000 shares of Common Stock that we are requesting the Company’s stockholders authorize the Company to issue under the CCO Performance Plan will be issued to our Chief Commercial Officer unless (i) both the performance- and service-based vesting conditions have been satisfied, and (ii) the other variables that determine the amount payable to our Chief Commercial Officer are sufficiently high to support any issuance of shares or cash payment under such award. In determining the number of shares of Common Stock to reserve for future issuance under the CCO Performance Plan, we, in consultation with our independent compensation consultant, made certain assumptions such as: (a) the Investor Multiple on Invested Capital being greater than 3.0x; (b) consummation of the Repayment Event as of September 20, 2028, the Term Loan Maturity Date; (c) the Service Vested Percentage as of the applicable Determination Date being 100%; and (d) the number of shares outstanding and fully diluted shares of Common Stock being the same as they were on November 30, 2023. The Company deems these assumptions as reasonable based on currently available information for the purpose of authorizing enough shares of Common Stock for future issuance should the CCO Performance Plan vest. Any increase or decrease in the variables described above will result in the CCO Performance Plan having a different value upon vesting, if at all, which in turn would result in a different number of shares of Common Stock being issuable under the award. For example, if the price per share of Common Stock declines, the value of the CCO Performance Plan will generally decline; however, the number of shares of Common Stock issuable upon vesting would increase under certain circumstances, because the aggregate number of shares of Common Stock required to equal such award value would be higher. The Company’s stockholders may experience significant dilution resulting from the settlement of the CCO Performance Plan and/or the concurrent settlement of the other Executive Performance Plans, if any. However, there can be no assurance that both the performance- and service-based vesting conditions will be satisfied or that the foregoing variables will result in the vesting and issuance of any shares of Common Stock or cash payments pursuant to the CCO Performance Plan. While we currently believe that the amount of shares of Common Stock that the