Company: PTPI
Filing Date: 2025-03-07
Form Type: PRE 14A
Source: 0001104659-25-021794
Chunk: 65

Company: Petros Pharmaceuticals, Inc.
Filing Date: 2025-03-07
Form: PRE 14A
Chunk 65
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 in the year the shares are granted an amount equal to the excess of (i) the fair market value
of the shares on the date of issuance, over (ii) the purchase price, if any, paid for the shares, and the Company generally will
be entitled to a deduction for the same amount, subject to applicable limitations. If a valid Section 83(b) election is made,
the participant will not realize any additional taxable income when the shares become vested.

The participant will not
realize ordinary income on the grant of a restricted stock unit award (or a performance award under which shares of Common Stock are
not issued on grant), but will realize ordinary income when the shares subject to the award are issued to the participant after they
become vested. The amount of ordinary income will be equal to the excess of (i) the fair market value of the shares on the date
they are issued over (ii) the purchase price, if any, paid for the award, and the Company generally will be entitled to a corresponding
deduction, subject to applicable limitations.

Upon disposition of shares
of Common Stock acquired under a restricted stock award, performance award, or restricted stock unit award, the participant will realize
a capital gain or loss equal to the difference between the selling price and the sum of the amount paid for the shares plus any amount
realized as ordinary income upon grant (or vesting) of the shares.

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Other Stock-Based Awards and Dividend Equivalents. Generally, the granting of other stock-based awards or dividend equivalent rights
should not result in the recognition of taxable income by the recipient or a tax deduction by the Company. The payment or settlement
of other stock-based awards or dividend equivalent rights generally should result in immediate recognition of taxable ordinary income
by the recipient, equal to the amount of any cash paid (before applicable tax withholding) or the then-current fair market value of any
Common Stock received, and a corresponding tax deduction by the Company, subject to applicable limitations. If the shares covered by
the award are not transferable and subject to a substantial risk of forfeiture, the tax consequences to the participant and to the Company
generally will be similar to the tax consequences of restricted stock awards, as described above. If any other stock-based award consists
of unrestricted shares, the recipient of those shares generally will immediately recognize as taxable ordinary income the fair market
value of those shares on the date of the award, and the Company generally will be