Company: LRHC
Filing Date: 2025-07-21
Form Type: DEF 14C
Source: 0001213900-25-065863
Chunk: 18

Company: La Rosa Holdings Corp.
Filing Date: 2025-07-21
Form: DEF 14C
Chunk 18
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 stock, the recipient will recognize taxable ordinary income equal to
the excess, if any, of the stock’s fair market value on the acquisition date over the purchase price. However, to the extent the
stock is subject to “a substantial risk of forfeiture” (as defined in Section 83 of the “Code”), the taxable event
will be delayed until the forfeiture provision lapses unless the recipient elects to be taxed on receipt of the stock by making a Section
83(b) election within 30 days of receipt of the stock. If such an election is not made, the recipient will generally recognize income
as and when the forfeiture provision lapses, and the income recognized will be based on the stock’s fair market value on such a
future date. On that date, the recipient’s holding period for purposes of determining the long-term or short-term nature of any
capital gain or loss recognized on a subsequent disposition of the stock will begin. If a recipient makes a Section 83(b) election, the
recipient will recognize ordinary income equal to the difference between the stock’s fair market value and the purchase price, if
any, as of the date of receipt and the holding period for purposes of characterizing as long-term or short-term any subsequent gain or
loss will begin at the date of receipt.

With respect to employees,
we are generally required to withhold from regular wages or supplemental wage payments an amount based on the ordinary income recognized.
Subject to the requirement of reasonableness, the provisions of Section 162(m) of the Code and the satisfaction of a tax reporting obligation,
we will generally be entitled to a business expense deduction equal to the taxable ordinary income realized by the participant.

Upon disposition of the stock,
the recipient will recognize a capital gain or loss equal to the difference between the selling price and the sum of the amount paid for
such stock plus any amount recognized as ordinary income with respect to the stock. Such gain or loss will be long-term or short-term,
depending on whether the stock has been held for more than one year.

Section 162(m) of the Code
denies a deduction to any publicly held corporation for compensation paid to certain senior executives of our Company (referred to as
a covered employee) in a taxable year to the extent that compensation to such employees exceeds $1,000,000. It is possible that compensation
attributable to awards, when combined with all other types of compensation received by a covered employee from our Company, may cause
this limitation to be exceeded in any