Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 1214

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 1214
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. On September 19, 2023, the Company held the Meeting where the Company’s stockholders approved the
Charter Amendment. Following the Meeting, the Sponsor, as the holder of 100% of the Founder Shares, determined to convert all the outstanding
Founder Shares into shares of Class A common stock, on a one-for-one basis.

The Sponsor has agreed not to transfer, assign
or sell any of its Founder Shares (i) with respect to 25% of such shares, until consummation of the initial Business Combination, (ii)
with respect to 25% of such shares, until the earlier of the second anniversary of the consummation of the initial Business Combination
or the first date at which the closing price of the Class A common stock exceeds $12.00 for any 20 trading days within a 30-trading day
period following the consummation of the initial Business Combination, (iii) with respect to 25% of such shares, until the earlier of
the second anniversary of the consummation of the initial Business Combination or the first date at which the closing price of the Class
A common stock exceeds $13.50 for any 20 trading days within a 30-trading day period following the consummation of the initial Business
Combination, and (iv) with respect to 25% of such shares, until the earlier of the second anniversary of the consummation of the initial
Business Combination or the first date at which the closing price of the Class A common stock exceeds $15.00 for any 20 trading days within
a 30-trading day period following the consummation of the initial Business Combination. Notwithstanding the foregoing, the transfer restrictions
set forth in the immediately preceding sentence shall terminate upon the date following the initial Business Combination on which the
Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the stockholders having
the right to exchange their shares of common stock for cash, securities or other property. Any permitted transferees would be subject
to the same restrictions and other agreements of the initial stockholders with respect to any Founder Shares. Notwithstanding the foregoing,
in connection with an initial Business Combination, the initial holders may transfer, assign or sell their Founder Shares with the Company’s
consent to any person or entity that agrees in writing to be bound by the transfer restrictions set forth above.

Promissory Note —Related Party

In order to finance transaction costs