Company: FTII
Filing Date: 2025-02-14
Form Type: S-4
Source: 0001493152-25-006997
Chunk: 292

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-02-14
Form: S-4
Chunk 292
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within the
meaning of the Code). FutureTech (or, if applicable, the participant’s affiliate employer) generally will be entitled to a deduction
at the time when, and in the amount that, the participant recognizes ordinary income on account of the lapse of the restrictions. A participant’s
tax basis in the shares will equal their fair market value at the time the restrictions lapse over the amount, if any, paid for those
shares, and the participant’s holding period for capital gains purposes will begin at that time. Any cash dividends paid on the
restricted stock before the restrictions lapse will be taxable to the participant as additional compensation (and not as dividend income).
Under Section 83(b) of the Code, a participant may elect to recognize ordinary income at the time the shares of restricted stock are awarded
in an amount equal to their fair market value at that time over the amount, if any, paid for those shares, notwithstanding the fact that
such shares of restricted stock are subject to restrictions and a substantial risk of forfeiture. If such an election is made, no additional
taxable income will be recognized by such participant at the time the restrictions lapse, the participant will have a tax basis in the
shares equal to their fair market value on the date of grant of their award over the amount, if any, paid for those shares, and the participant’s
holding period for capital gains purposes will begin at that time. FutureTech (or, if applicable, the participant’s affiliate employer)
generally will be entitled to a tax deduction at the time when, and to the extent that, ordinary income is recognized by such participant.

RSUs

In general, the
grant of RSUs (including performance share units) will not result in income for the participant or in a tax deduction for FutureTech (or,
if applicable, the participant’s affiliate employer). Upon the settlement of such an award in cash or shares, the participant will
recognize ordinary income equal to the aggregate value of the payment received, and FutureTech (or, if applicable, the participant’s
employer) generally will be entitled to a tax deduction at the same time and in the same amount. A gain or loss recognized

upon a subsequent sale or exchange
of the shares (if settled in shares) is treated as capital gain or loss for which FutureTech will not be entitled to a deduction.

Other Awards

With respect
to other awards granted under the Equity Incentive Plan, including stock bonuses, other stock-based awards and cash awards, generally