Company: BTBT
Filing Date: 2025-04-09
Form Type: DEF 14A
Source: 0001213900-25-030356
Chunk: 43

Company: Bit Digital, Inc
Filing Date: 2025-04-09
Form: DEF 14A
Chunk 43
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 exercise, ordinary income is realized by the optionee in an amount equal to the difference between the exercise price and the fair market value of the Ordinary Shares on the date of exercise, and we receive a tax deduction for the same amount, and (ii) at disposition, appreciation or depreciation after the date of exercise is treated as either short -termor long -termcapital gain or loss depending on how long the Ordinary Shares have been held. Special rules will apply where all or a portion of the exercise price of the non -qualifiedoption is paid by tendering Ordinary Shares. Upon exercise, the optionee will also be subject to Social Security taxes on the excess of the fair market value over the exercise price of the option. Other Awards.We generally will be entitled to a tax deduction in connection with other awards under the Plan in an amount equal to the ordinary income realized by the participant at the time the participant recognizes such income. Participants typically are subject to income tax and recognize such tax at the time that an award is exercised, vests or becomes non -forfeitable, unless the award provides for a further deferral. Parachute Payments.The vesting of any portion of an award that is accelerated due to the occurrence of a change in control (such as a sale event) may cause a portion of the payments with respect to such accelerated awards to be treated as “parachute payments” as defined in the Code. Any such parachute payments may be non -deductibleto us, in whole or in part, and may subject the recipient to a non -deductible20% federal excise tax on all or a portion of such payment (in addition to other taxes ordinarily payable). 28 Limitation on Deductions.Under Section 162(m) of the Code, our deduction for awards under the Plan may be limited to the extent that any “covered employee” (as defined in Section 162(m) of the Code) receives compensation in excess of $1,000,000 a year. Resolution to be passed It is proposed that shareholders pass the following ordinary resolution: It is resolved as an Ordinary Resolution that shareholders of the Company hereby approve the 2025 Omnibus Equity Incentive Plan. Vote Required and Board Recommendation The adoption of the Company’s 2025 Omnibus Equity Incentive Plan requires shareholders to pass an ordinary resolution, being a resolution passed by a simple majority of the votes cast by shareholders as, being entitled to do so, vote in person or by proxy on the election of directors at the Annual Meeting.