Company: FTII
Filing Date: 2025-02-14
Form Type: S-4
Source: 0001493152-25-006997
Chunk: 291

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-02-14
Form: S-4
Chunk 291
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 preference income for purposes
of the federal alternative minimum tax on individual income. If the shares acquired on exercise of an incentive stock option are held
for at least two years after grant of the option and one year after exercise, then: (i) the amount, if any, realized in excess of the
exercise price will be treated as long-term capital gain and (ii) the amount, if any, by which the exercise price exceeds the amount realized
upon the disposition will be treated as long-term capital loss.. If the shares acquired on exercise of an incentive stock option are disposed
of within less than two years after grant or one year of exercise, the optionee will realize taxable compensation income in the year of
the disposition equal to the excess of the fair market value of the shares on the date of exercise or the date of sale, whichever is less,
over the exercise price, and any additional amount realized will be taxed as capital gain. FutureTech (or, if applicable, the participant’s
affiliate employer) generally will be entitled to a tax deduction at such time and in the same amount, if any, that the optionee recognizes
as ordinary income.

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Stock Appreciation Rights

A participant
who is granted a SAR generally will not recognize ordinary income upon receipt of the SAR. Rather, at the time of exercise of such SAR,
the participant will recognize ordinary income for income tax purposes in an amount equal to the value of any cash received and the fair
market value on the date of exercise of any shares received. FutureTech (or, if applicable, the participant’s affiliate employer)
generally will be entitled to a tax deduction at such time and in the same amount, if any, that the participant recognizes as ordinary
income. The participant’s tax basis in any shares received upon exercise of a SAR will be equal to the amount of compensation recognized
in respect of those shares, and if the shares are later sold or exchanged, then the difference between the amount received upon such sale
or exchange and the tax basis will generally be taxable as long-term or short-term capital gain or loss (if the shares are a capital asset
of the participant) depending upon the length of time such shares were held by the participant.

Restricted Stock

A participant
generally will not be taxed upon the grant of restricted stock, but rather will recognize ordinary income in an amount equal to the fair
market value of the shares at the time the shares are no longer subject to a “substantial risk of forfeiture” (