Company: OSRH
Filing Date: 2025-08-29
Form Type: DEF 14A
Source: 0001213900-25-082061
Chunk: 31

Company: OSR Holdings, Inc.
Filing Date: 2025-08-29
Form: DEF 14A
Chunk 31
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. Participants are urged to consult their own tax advisors regarding the tax consequences of awards under the Omnibus Plan. 18 Incentive Stock Options (“ISOs”) Under the Code, an option that qualifies as an “incentive stock option” (ISO) is generally not taxable to the participant at the time of grant or exercise. However, the difference between the exercise price and the fair market value of the stock on the date of exercise may be an adjustment for alternative minimum tax (AMT) purposes. If the participant holds the shares acquired upon exercise of an ISO for at least one year after the date of exercise and two years after the grant date, the participant will recognize long -termcapital gain or loss on the subsequent sale of the shares. If the holding periods are not met (a “disqualifying disposition”), the participant generally recognizes ordinary income at the time of sale equal to the lesser of (1) the fair market value of the shares at exercise minus the exercise price or (2) the sale price minus the exercise price. Nonqualified Stock Options (“NSOs”) For NSOs, the participant does not recognize income at the time of grant, but upon exercise, the difference between the exercise price and the fair market value of the shares on the date of exercise is treated as ordinary income and subject to withholding taxes. The Company is generally entitled to a corresponding tax deduction in the same amount and year as the income recognized by the participant. Restricted Stock and RSUs A participant who receives a grant of restricted stock generally does not recognize income until the shares become vested (i.e., no longer subject to a substantial risk of forfeiture), unless the participant makes an IRC §83(b) election within 30 days of the grant date to recognize income upon grant. At the time of vesting (or upon grant if an §83(b) election is made), the participant generally recognizes ordinary income equal to the fair market value of the stock. The Company generally is entitled to a corresponding deduction. For restricted stock units (RSUs), income is recognized at vesting and delivery of shares (or cash equivalent), and is treated as ordinary income. Performance-Based Awards Performance shares or performance units are generally subject to tax at the time of vesting or settlement. The participant recognizes ordinary income equal to the fair market value of the shares or cash received. The Company is generally entitled to a deduction equal to the income recognized. Section 409A To the extent any awards under the Omnibus Plan are subject to Section 409A of the Code (non