Company: PTPI
Filing Date: 2025-03-07
Form Type: PRE 14A
Source: 0001104659-25-021794
Chunk: 54

Company: Petros Pharmaceuticals, Inc.
Filing Date: 2025-03-07
Form: PRE 14A
Chunk 54
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 administered by the Company
since the Effective Date, pursuant to incentive stock options under Section 422 of the Code granted on and after the Effective
Date may not exceed 1,002,760,000 shares of Common Stock. The fair market value of the Company’s Common Stock is generally equal
to the closing price for the Common Stock on the date the option is granted (or if there was no closing price on that date, on the last
preceding date on which a closing price was reported). If the fair market value (determined as of the date of grant) of the shares with
respect to which a participant’s incentive stock options are exercisable for the first time during any year, whether granted under
the 2020 Plan or any Prior Plans, exceeds $100,000, then incentive stock options for the shares over the $100,000 threshold will be treated
as nonqualified stock options, rather incentive stock options.

The exercise price for any option is generally
payable in cash or check. In certain circumstances as permitted by the committee, the exercise price may be paid by (i) the surrender
of shares of the Company’s Common Stock with an aggregate fair market value on the date the option is exercised that is at least
equal to the exercise price, (ii) payment through a broker in accordance with procedures established by the Federal Reserve Board,
(iii) withholding shares of Common Stock subject to the exercisable option which have a fair market value on the date of exercise
equal to the aggregate exercise price, (iv) or such other method as the committee approves.

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The term of an option cannot
exceed ten years from the date of grant, except that if an incentive stock option is granted to a 10% or greater stockholder, the
term cannot exceed five years from the date of grant. In the event that on the last day of the term of a non-qualified stock option,
the exercise is prohibited by applicable law, including a prohibition on purchases or sales of the Company’s Common Stock under
the Company’s insider trading policy, the term of the non-qualified option will be extended for a period of 30 days following the
end of the legal prohibition, unless the committee determines otherwise.

Except as provided in the
award agreement, an option may only be exercised while a participant is employed by or providing service to the Company. The committee
will determine in the award agreement under what circumstances and during what time periods a participant may