Company: FLDDW
Filing Date: 2025-02-14
Form Type: 8-K
Source: 0001213900-25-014354
Chunk: 2

Company: Fold Holdings, Inc.
Filing Date: 2025-02-14
Form: 8-K
Item: Item 2.01
Chunk 2
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25 million or less. The A& R Registration Rights Agreement
also provides “piggy-back” registration rights to such stockholders and their permitted transferees, subject to certain requirements
and customary conditions.

The foregoing description of the A& R Registration Rights Agreement
does not purport to be complete and is qualified in its entirety by reference to the full text of the A& R Registration Rights Agreement,
a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.

Sponsor Share Restriction Agreement

As previously disclosed, concurrently with the execution of the Merger
Agreement, the Sponsors entered into the Sponsor Share Restriction Agreement (the “ Sponsor Share Restriction Agreement”) with
Emerald. Pursuant to the Sponsor Share Restriction Agreement, at the Closing, (i) all Private Placement Warrants were forfeited and
cancelled, and (ii) approximately 5.3 million of the Sponsors’ founder shares (the “subject founder shares”)
became subject to time-based transfer restrictions subject to early release as follows:

  one-third of the subject founder shares                                                                             

  one-third of the subject founder shares shall remain subject to transfer restrictions until the                        

  one-third of the subject founder shares shall remain subject to transfer restrictions until the               

In the event that the Company raises less than $50 million from
the date of the Merger Agreement through February 14, 2027 (the second anniversary of the Closing), the Sponsors shall automatically forfeit
for no additional consideration up to 1,000,000 subject founder shares.

Lock-Up Agreement

On February 14, 2025, in connection with the consummation of the Business
Combination and as contemplated by that certain Securities Purchase Agreement, dated as of December 24, 2024 (the “ December 2024
Securities Purchase Agreement”), by and between Legacy Fold and ATW Growth Opportunities SPV, LLC (the “ Investor”),
certain holders (collectively, the “ Lock-Up Parties” and each a “ Lock-Up Party”) of Common Stock, entered into
a Lock-Up Agreements (the “ Lock-Up Agreements”) pursuant to which they each agreed, subject to certain customary exceptions,
not to (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase, make any short sale or otherwise
dispose of or agree to dispose of, directly or indirectly, any securities of any