Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1349

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 1349
---
 or
director as defined in the 2022 Plan, or within such period following termination of service as determined by the Compensation Committee
and set forth in the related award agreement; provided, further, that such period will not exceed the period of time ending on the date
three (3) months following termination of service. Non-incentive stock options are governed by the related award agreements.

Tax Withholding. To
the extent provided by the terms of an option or other award, a participant may satisfy any federal, state or local tax withholding obligation
relating to the exercise of such option, or award by a cash payment upon exercise, or in the discretion of the Compensation Committee,
by authorizing our Company to withhold a portion of the stock otherwise issuable to the participant, by delivering already-owned shares
of our Common Stock or by a combination of these means.

Federal Tax Consequences.
The following is a summary of the principal United States federal income tax consequences to the recipient and our Company with respect
to participation in the 2022 Plan. This summary is not intended to be exhaustive and does not discuss the income tax laws of any city,
state, or foreign jurisdiction in which a participant may reside.

Incentive Stock Options.
There will be no federal income tax consequences to either the recipient upon the grant of an incentive stock option or us. Upon exercise
of the option, the excess of the stock’s fair market value over the exercise price, or the “spread,” will be added to
the alternative minimum tax base of the recipient unless a disqualifying disposition is made in the year of exercise. A disqualifying
disposition is the stock sale before the expiration of two years from the date of grant and one year from the date of exercise. If the
shares of Common Stock are disposed of in a disqualifying disposition, the recipient will realize taxable ordinary income in an amount
equal to the spread at the time of exercise, and will be entitled (subject to the requirement of reasonableness, the provisions of Section
162(m) of the Code and the satisfaction of a tax reporting obligation) to a federal income tax deduction equal to such amount. If the
recipient sells the shares of Common Stock after the specified periods, the gain or loss on the shares’ sale will be long-term capital
gain or loss and will not be entitled to a federal income tax deduction.

Non-statutory Stock Options
and Restricted Stock Awards. Non-statutory stock options and restricted stock awards granted under the 2022