Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 1272

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7A
Chunk 1272
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Financial Advisory Fee

The Company engaged Cohen
& Company Capital Markets, a division of J.V.B. Financial Group, LLC (“CCM”), to provide financial advisory services in
connection with the initial public offering. J.V.B. Financial Group, LLC is a broker dealer subsidiary of Cohen & Company Inc. Affiliates
of CCM have and manage investment vehicles with a passive investment in our sponsor. The Company paid CCM a fee in an amount equal to
0.3% of the aggregate proceeds of the initial public offering (excluding the proceeds of the exercise of the overallotment option) net
of underwriter’s expenses, upon the closing of the initial public offering. The Company also engaged CCM to act as an advisor in
connection with the business combination for which it will earn an advisory fee of 0.525% of the proceeds of the initial public offering
(excluding the proceeds of the exercise of the overallotment option) payable at closing of the business combination. CCM is also entitled
to an advisory fee equal to 0.825% of the aggregate proceeds of the exercise of the overallotment option, payable at the closing of the
business combination. The underwriter had agreed to reimburse us for the fee to CCM as it becomes payable out of the underwriting commissions.
Accordingly, a reimbursement receivable and deferred advisory fee of $1,155,000 had been reflected in the accompanying balance sheets.
On October 18, 2023, we entered into an agreement with the underwriter in which the underwriter waived any entitlement it may have to
the deferred underwriting discount in respect of any business combination. As a result, we reversed the reimbursement receivable and recognized
$1,155,000 of advisory fee expenses in the accompanying statements of operations. At the Closing, CCM was paid an advisory fee in the
amount of $1,155,000.

96

Director and Officer Indemnification

The Company’s charter and bylaws provide
for indemnification and advancement of expenses for its directors and officers to the fullest extent permitted by the DGCL, subject to
certain limited exceptions. The Company has entered into indemnification agreements with each of its directors and officers.

Support Agreement

Concurrently with the execution of the Merger Agreement, the Company
entered into a Support Agreement with (i) the Sponsors, (ii) Legacy Fold, and (iii) the Legacy Fold stockholders named
therein (together with