Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 2952

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 9B
Chunk 2952
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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 particular year.

70

Modification; Amendment;
Termination. The Compensation Committee may adopt, establish, amend and rescind such rules, regulations, and procedures as it may
deem appropriate for the proper administration of the 2022 Plan, make all other determinations which are, in the Compensation Committee’s
judgment, necessary or desirable for the proper administration of the 2022 Plan, amend the 2022 Plan or a stock award as provided under
the 2022 Plan, or terminate or suspend the 2022 Plan as provided therein. The Compensation Committee may also amend the 2022 Plan at any
time and from time to time. However, except for adjustments upon changes in Common Stock, no amendment will be effective unless approved
by our stockholders to the extent that stockholder approval is necessary to preserve incentive stock option treatment for federal income
tax purposes. The Compensation Committee may submit any other amendment to the