Company: BTBT
Filing Date: 2025-04-09
Form Type: DEF 14A
Source: 0001213900-25-030356
Chunk: 42

Company: Bit Digital, Inc
Filing Date: 2025-04-09
Form: DEF 14A
Chunk 42
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 2035. No other awards may be granted under the Plan after the date that is ten years from the date of shareholder approval. Tax Aspects Under the Code The following is a summary of the principal federal income tax consequences of certain transactions under the Plan. It does not describe all federal tax consequences under the 2025 Plan, nor does it describe state or local tax consequences. Incentive Share Options.No taxable income is generally realized by the optionee upon the grant or exercise of an incentive share option. If Ordinary Shares issued to an optionee pursuant to the exercise of an incentive share option are sold or transferred after two years from the date of grant and after one year from the date of exercise, then (i) upon sale of such Ordinary Shares, any amount realized in excess of the exercise price (the amount paid for the Ordinary Shares) will be taxed to the optionee as a long -termcapital gain, and any loss sustained will be a long -termcapital loss, and (ii) we will not be entitled to any deduction for federal income tax purposes. The exercise of an incentive share option will give rise to an item of tax preference that may result in alternative minimum tax liability for the optionee. If Ordinary Shares acquired upon the exercise of an incentive share option are disposed of prior to the expiration of the two -yearand one -yearholding periods described above (a “disqualifying disposition”), generally (i) the optionee will realize ordinary income in the year of disposition in an amount equal to the excess (if any) of the fair market value of the Ordinary Shares at exercise (or, if less, the amount realized on a sale of such Ordinary Shares) over the exercise price thereof, and (ii) we will be entitled to deduct such amount. Special rules will apply where all or a portion of the exercise price of the incentive share option is paid by tendering Ordinary Shares. If an incentive share option is exercised at a time when it no longer qualifies for the tax treatment described above, the option is treated as a non -qualifiedoption. Generally, an incentive share option will not be eligible for the tax treatment described above if it is exercised more than three months following termination of employment (or one year in the case of termination of employment by reason of disability). In the case of termination of employment by reason of death, the three -monthrule does not apply. Non -Qualified Options.No income is realized by the optionee at the time a non -qualifiedoption is granted. Generally (i) at