Company: CXAI
Filing Date: 2025-04-17
Form Type: DEF 14A
Source: 0001829126-25-002762
Chunk: 54

Company: CXApp Inc.
Filing Date: 2025-04-17
Form: DEF 14A
Chunk 54
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 sale if the disposition is a transaction with respect to which a loss, if sustained, would be recognized) will be taxed
as ordinary income at the time of disposition. Any gain in excess of that amount will be a capital gain. If a loss is recognized, there
will be no ordinary income and such loss will be a capital loss. Any ordinary income recognized by the optionee upon the disqualifying
disposition of the shares should generally be deductible by the Company for federal income tax purposes, except to the extent such deduction
is limited by applicable provisions of the Code.

The difference between the
option exercise price and the fair market value of the shares on the exercise date is treated as an adjustment in computing the optionee’s
alternative minimum taxable income and may be subject to an alternative minimum tax, which is paid if such tax exceeds the regular tax
for the year. Special rules may apply with respect to certain subsequent sales of the shares in a disqualifying disposition, certain basis
adjustments for purposes of computing the alternative minimum taxable income on a subsequent sale of the shares and certain tax credits
which may arise with respect to optionees subject to the alternative minimum tax.

Nonstatutory Stock Options.
Options not designated or qualifying as incentive stock options will be nonstatutory stock options having no special U.S. tax status.
An optionee generally recognizes no taxable income as the result of the grant of such an option. Upon exercise of a nonstatutory stock
option, the optionee normally recognizes ordinary income equal to the amount that the fair market value of the shares on such date exceeds
the exercise price. If the optionee is an employee, such ordinary income is generally subject to withholding of income and employment
taxes. Upon the sale of stock acquired by the exercise of a nonstatutory stock option, any gain or loss, based on the difference between
the sale price and the fair market value on the exercise date, will be taxed as capital gain or loss. No tax deduction is available to
the Company with respect to the grant of a nonstatutory stock option or the sale of the stock acquired pursuant to such grant.

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Stock Appreciation Rights.
In general, no taxable income is reportable when a stock appreciation right is granted to a participant. Upon exercise, the participant
will generally recognize ordinary income in an amount equal to the fair market value of any shares of common stock received. If the participant
is an employee, such ordinary income is generally subject to