Company: PTPI
Filing Date: 2025-03-07
Form Type: PRE 14A
Source: 0001104659-25-021794
Chunk: 55

Company: Petros Pharmaceuticals, Inc.
Filing Date: 2025-03-07
Form: PRE 14A
Chunk 55
---
 exercise an option after
termination of employment.

Stock Appreciation Rights

Under the 2020 Plan, the
committee may grant stock appreciation rights to eligible participants separately or in tandem with any options. Stock appreciation rights
granted with a non-qualified stock option may be granted either at the time the non-qualified stock option is granted or any time thereafter
while the option remains outstanding. Stock appreciation rights granted with an incentive stock option may be granted only at the time
of the grant of the incentive stock option. The committee will establish the base amount of the stock appreciation right at the time
the stock appreciation right is granted, which will be equal to or greater than the fair market value of a share of the Company’s
Common Stock as of the date of grant.

If a stock appreciation right
is granted in tandem with an option, the number of stock appreciation rights that are exercisable during a specified period will not
exceed the number of shares of the Company’s Common Stock that the participant may purchase upon exercising the related option
during such period. Upon exercising the related option, the related stock appreciation rights will terminate, and upon the exercise of
a stock appreciation right, the related option will terminate, to the extent of an equal number of shares of the Company’s Common
Stock. Generally, stock appreciation rights may only be exercised while the participant is employed by, or providing services to, the
Company unless otherwise specified by the committee. When a participant exercises a stock appreciation right, the participant will receive
the excess of the fair market value of the underlying Common Stock over the base amount of the stock appreciation right. The appreciation
of a stock appreciation right will be paid in shares of the Company’s Common Stock, cash, or both.

The term of a stock appreciation
right cannot exceed ten years from the date of grant. In the event that on the last day of the term of a stock appreciation right,
the exercise is prohibited by applicable law, including a prohibition on purchases or sales of the Company’s Common Stock under
the Company’s insider trading policy, the term of the stock appreciation right will be extended for a period of 30 days following
the end of the legal prohibition, unless the committee determines otherwise.

Stock Awards

Under the 2020 Plan, the
committee may grant stock awards to eligible participants. A stock award is an award of the Company’s Common Stock that may be
subject to restrictions as the committee determines. The restrictions, if any, may lapse over a specified period of employment or