Company: MVNC
Filing Date: 2025-01-10
Form Type: PRE 14C
Source: 0001683168-25-000215
Chunk: 27

Company: Marvion Inc.
Filing Date: 2025-01-10
Form: PRE 14C
Chunk 27
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 after termination of employment is treated
as an NQSO. ISOs are also treated as NQSOs to the extent that they first become exercisable by an individual in any calendar year for
shares having a fair market value (determined as of the date of grant) in excess of $100,000.

Non-Qualified Stock Options (NQSOs). An optionee generally has no taxable income at the time of grant of an NQSO but realizes income in connection with exercise
of the option in an amount equal to the excess (at the time of exercise) of the fair market value of shares acquired upon exercise over
the exercise price. The same amount is deductible by the Company as compensation, provided that, in the case of an employee option, the
Company reports the income to the employee. Upon a subsequent sale or exchange of the shares, any recognized gain or loss after the date
of exercise is treated as capital gain or loss for which the Company is not entitled to a deduction.

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SARs. Generally, the recipient
of a SAR will not recognize taxable income at the time the SAR is granted. If a participant receives the appreciation inherent in the
SAR in cash, the cash will be taxed as ordinary income to the participant at the time it is received. If a participant receives the appreciation
inherent in the SAR in shares, the spread between the then-current market value and the base price will be taxed as ordinary income to
the participant at the time it is received. In general, there will be no federal income tax deduction allowed to the Company upon the
grant or termination of SARs. However, upon the settlement of a SAR, the Company will be entitled to a deduction equal to the amount of
ordinary income the recipient is required to recognize as a result of the settlement.

Restricted Stock Awards.
The recipient of a RSA will not recognize any taxable income for federal income tax purposes in the year of the award, provided that the
shares are subject to restrictions (that is, they are nontransferable and subject to a substantial risk of forfeiture). However, the recipient
may elect under Section 83(b) of the Internal Revenue Code to recognize compensation income in the year of the award in an amount equal
to the fair market value of the shares on the date of the award (less the purchase price, if any, paid for such shares), determined without
regard to the restrictions. If a Section 83(b) election is made, the