Company: PTPI
Filing Date: 2025-03-18
Form Type: DEF 14A
Source: 0001104659-25-025104
Chunk: 64

Company: Petros Pharmaceuticals, Inc.
Filing Date: 2025-03-18
Form: DEF 14A
Chunk 64
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 of the breach of the restrictive covenant      
 agreement or activity constituting cause), net of the price originally paid by the participant 
 for the shares.                                                                                |

All awards are also subject
to any applicable clawback or recoupment policy, share trading policy, and other policies that the Board may adopt and amend from time
to time. Payment by the participant will be made in such manner and on such terms and conditions as may be required by the committee.
the Company will be entitled to set off against the amount of any such payment any amounts that the Company otherwise owes to the participant.

Federal Income Tax Consequences

The following discussion
summarizes certain federal income tax considerations of awards under the 2020 Plan. However, it does not purport to be complete and does
not describe the state, local, or foreign tax considerations or the consequences for any particular individual. This discussion is based
upon provisions of the Code and the applicable Treasury Regulations issued thereunder, as well as judicial and administrative interpretations
under the Code and Treasury Regulations, all as in effect as of the date hereof, and all of which are subject to change (possibly on
a retroactive basis) or different interpretation.

Law Affecting Deferred Compensation. In 2004, Section 409A was added to the Code to regulate all types of deferred compensation.
If the requirements of Section 409A of the Code are not satisfied, deferred compensation and earnings thereon will be subject to
tax as it vests, plus an interest charge at the then current underpayment rate plus 1% and a 20% penalty tax. Certain performance awards,
stock options, SARs, restricted stock units, and certain types of restricted stock are subject to Section 409A of the Code.

Stock Options. A participant generally does not realize ordinary income on the grant of a stock option. Upon
exercise of a non-qualified stock option, the participant will realize ordinary income equal to the excess of the fair market value of
the shares of Common Stock over the option exercise price. The cost basis of the shares acquired for capital gain treatment is their
fair market value at the time of exercise. the Company generally should be entitled to a federal income tax deduction, subject to applicable
limitations, at the same time and for the same amount as the participant recognizes as ordinary income. Any subsequent gain or loss generally
will be taxable as long-term or short-term capital gain or loss for which the Company would not be entitled to a deduction.

Upon exercise of an incentive