Company: OSRH
Filing Date: 2025-08-19
Form Type: PRE 14A
Source: 0001213900-25-078140
Chunk: 33

Company: OSR Holdings, Inc.
Filing Date: 2025-08-19
Form: PRE 14A
Chunk 33
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 partnerships, or tax-exempt entities). In addition, this summary
does not address the effects of state, local, or foreign tax laws. Participants are urged to consult their own tax advisors regarding
the tax consequences of awards under the Omnibus Plan.

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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-term capital 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