Company: MVIS
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001641172-25-006436
Chunk: 40

Company: MICROVISION, INC.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 40
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 vested, which may be before the compensation is actually
or constructively received. Also, if an award that is subject to Section 409A fails to comply with Section 409A’s provisions,
Section 409A imposes an additional 20% federal income tax on compensation recognized as ordinary income, as well as interest on such
deferred compensation. Certain states have enacted laws similar to Section 409A which impose additional taxes, interest and penalties
on non-qualified deferred compensation arrangements. The Company will also have withholding and reporting requirements with respect to
such amounts.

Medicare Surtax

A participant’s annual “net investment
income,” as defined in Section 1411 of the Internal Revenue Code, may be subject to a 3.8% federal surtax (generally referred
to as the “Medicare Surtax”). Net investment income may include capital gain and/or loss arising from the disposition of shares
subject to a participant’s awards under the 2022 Incentive Plan. Whether a participant’s net investment income will be subject
to the Medicare Surtax will depend on the participant’s level of annual income and other factors.

Tax Effect for the Company

The company generally will be entitled to a tax deduction
in connection with an award under the 2022 Incentive Plan in an amount equal to the ordinary income realized by a participant and at the
time the participant recognizes such income (for example, the exercise of a nonstatutory stock option). Special rules limit the deductibility
of compensation paid to our chief executive officer and other “covered employees” as determined under Section 162(m)
and applicable guidance. Under Section 162(m), the annual compensation paid to any of these specified executives will be deductible
only to the extent that it does not exceed $1,000,000.

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Number of Awards Granted to Employees, Consultants, and Directors

The number of awards that an employee, director or
consultant may receive under the 2022 Incentive Plan is in the discretion of the Administrator and therefore cannot be determined in advance.

The following table sets forth (i) the aggregate
number of shares of our common stock subject to awards made under the 2022 Incentive Plan to our named executive officers and the below-listed
groups during the last fiscal year and (ii) the dollar value of such awards based on an aggregate grant date fair value determined
pursuant to FASB ASC Topic 718. Additional awards may be granted