Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 311

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 311
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 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 the shares of New Fold Common Stock on the date the participant exercises his or her option. Upon the subsequent sale of the shares acquired upon the exercise of an option acquired under the Non -Section423 Component of the ESPP, the participant will recognize capital gain or loss (long -termor short -term, depending on how long the shares were held following the date they were purchased by the participant prior to disposing of them). New Fold or its subsidiaries or affiliates will generally be entitled to a federal income tax deduction upon the exercise of the option to the extent that the participant recognizes ordinary income, subject to Code limitations. Plan Benefits Because the number of shares that may be purchased under the ESPP will depend on each employee’s voluntary election to participate and on the fair market value of New Fold’s common stock at various future dates, the actual number of shares that may be purchased by any individual under the ESPP cannot currently be determined. Vote Required for Approval The Employee Stock Purchase Plan Proposal, under Delaware law, requires the affirmative vote of a majority of the Emerald Class A Common Stock represented in person or by proxy and entitled to vote thereon and who vote at the special meeting. Abstentions and broker non -votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the special meeting. 189 Recommendation of the EMERALD Board THE EMERALD BOARD UNANIMOUS