Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 256

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 256
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, the “Preferred
Shareholders”).

Dividends for the Preferred Shares are noncumulative
and payable only upon declaration by the Board of Directors. Dividends will be paid at the rate of 8% of the issue price for each share
of preferred stock, when declared. The Preferred Shareholders have a liquidation preference over common stockholders to any distributions
in the event of a voluntary or involuntary liquidation, dissolution, winding up, merger or consolidation (only if there is a change in
voting control), or the sale, lease, transfer, exclusive license or other disposition of all or substantially all the assets or intellectual
property of the Company.

The Preferred Shareholders are entitled to votes
equal to the number of votes that would be attributed to the same amount of common shares, and voting rights and powers attributed to
the Preferred Shares are equal to that of common stockholders. The Preferred Shareholders, as a separate voting class, are entitled to
elect one member of the Board of Directors (the “Preferred Director”). The Preferred Director can only be removed by a majority
vote of the preferred stock voting as a separate voting class. Any remaining directors will be elected by a single class consisting of
common and preferred stock (on an as-converted basis).

The Preferred Shares are subject to an automatic
conversion at the earlier of a vote or written consent of a majority of the Preferred Shareholders or a qualified Initial Public Offering
(“IPO”). Additionally, the Preferred Shareholders have the option to convert at any time into common stock at the Conversion
Price. The Conversion Price is initially equal to the issue price, as adjusted in the event of any stock dividend, stock split, combination
or other similar recapitalizations. The Preferred Shareholders will receive common shares equal to the number of preferred shares held,
multiplied by the issue price divided by the Conversion Price, as adjusted. Diluting issuances such as options or warrants will adjust
the Conversion Price.

11. SHARE-BASED COMPENSATION EXPENSE

The Company’s 2019 Equity Incentive Plan
(the “Equity Plan”) was adopted by the Board of Directors and approved by Company Stockholders on August 20, 2019. The purpose
of this Equity Plan is to offer select Participants (defined as employees, consultants, or outside directors) the opportunity to acquire
equity in the Company through the awards of Options, Restricted Stock Awards (“RSAs”), Stock Appreciation Rights, Restricted
Stock Units (“