Company: MVIS
Filing Date: 2025-04-18
Form Type: PRE 14A
Source: 0001641172-25-005410
Chunk: 39

Company: MICROVISION, INC.
Filing Date: 2025-04-18
Form: PRE 14A
Chunk 39
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 stock generally
will 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 generally is subject to withholding of income and employment taxes. The participant may elect, under 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 through 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.

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Restricted Stock Units

There generally are no immediate tax consequences
of receiving an award of restricted stock units. A participant who is awarded restricted stock units generally will 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 generally is 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 Awards

A participant generally will recognize no income upon
the grant of a performance award. Upon the settlement of such awards, participants normally will 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 generally is 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 2022 Incentive Plan with a deferral feature will be subject to the requirements of Section 409A
of the Code. If an award is subject to and fails to satisfy the requirements of Section 409A of the Code, the recipient of that award
may recognize ordinary income on the amounts deferred under the award, to the extent