Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 314

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 314
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 of disposition of the shares measured as the lesser of (i) the excess of the fair market value of the shares at the time of such sale or disposition (or death) over the purchase price or (ii) the excess of the fair market value of the shares on the date the option was granted over the purchase price. Any additional gain will be treated as long -termcapital gain. If the holding period requirements are not met, the participant will recognize ordinary income at the time of the disposition equal to the excess of the fair market value of the shares on the date the option is exercised over the purchase price, with any remaining gain or loss being treated as capital gain or capital loss. However, if the holding period requirements are not met and the amount realized at the time of disposition is less than the fair market value of the shares at the time of exercise, the participant will recognize ordinary income to the extent of the excess of the fair market value of such shares on the date the option was exercised over the purchase price for such shares, and a capital loss to the extent the fair market value of such shares on the exercise date exceeds the amount realized upon disposition. New Fold or its subsidiaries or affiliates generally are not entitled to a federal income tax deduction upon either the exercise of an option or upon disposition of the shares acquired pursuant to such exercise, except to the extent that the participant recognizes ordinary income on disposition of the shares, subject to Code limitations. Non-Section 423 Component.The Non -Section423 Component of the ESPP is not intended to qualify as an “employee stock purchase plan” under Section 423 of the Code. Accordingly, certain tax benefits available to participants in a Section 423 plan are not available under the Non -Section423 Component of the ESPP. For federal income tax purposes, a participant in the Non -Section423 Component of the ESPP generally will not recognize taxable income on the grant of an option under the ESPP, nor will New Fold be entitled to any deduction at that time. Upon the exercise of an ESPP option, a participant will recognize ordinary income, and New Fold will be entitled to a corresponding deduction, in an amount equal to the difference between the fair market value of the shares of New Fold Common Stock on the exercise date and the purchase price paid for the shares. A participant’s basis in shares of New Fold Common Stock received on exercise, for purposes of determining the participant’s gain or loss on subsequent disposition of such shares of New Fold’s Common Stock, generally, will be the fair market value of