Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 340

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 340
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payable in cash at the rate of $5,000 per month (a minimum of $1,125 per week), with the remainder accrued and paid as of the
earliest of a sale or liquidation of the Company, the Company’s bankruptcy or three days after the approval by the board
of directors of a funded budget with appropriately established milestones subsequent to the effective date of a Form S-1 registration
statement (“Post-registration Approval”). Mr. Kopfli also agreed, as of Post-registration Approval, to resign as Chief
Executive Officer of Chromocell Corporation although he could continue to serve on the board of directors of Chromocell Corporation,
including as its board of directors Chair. The employment agreement provided that Mr. Kopfli receive an option to acquire 200,000
shares of our Common Stock, vesting quarterly over 10 quarters and beginning October 1, 2022. This option shall have an exercise
price equal to the fair market value of our Common Stock on the date of grant and shall expire on the 10th anniversary of the
date of grant. The option was awarded as of January 10, 2023. The employment agreement contemplated an annual bonus, as determined
by the board of directors. The target bonus was 50% of Mr. Kopfli’s annualized salary and was to be based on achievement
of performance goals and objectives agreed to by Mr. Kopfli and the board of directors in January of each year. The board of directors
was to increase the bonus in recognition of performance in excess of the performance objectives. Any bonus would have only been
paid if Mr. Kopfli remained employed on the date of payment, which would have been no later than March 15 of the year following
the year to which the bonus relates. Any bonus for 2022 would have been payable solely in the board of directors’ discretion.

Pursuant
to Mr. Kopfli’s employment agreement, in the event he was involuntarily terminated by the Company other than for “Cause”
or if he resigns for “Good Reason,” he was entitled to receive (i) six months of salary at the same rate existing
immediately prior to his termination, (ii) his target bonus, if performance goals and objectives had been established for the
year and prorated for the period of service, and (iii) six months of additional vesting credit with respect to any outstanding
time-based equity awards. “Cause” and “Good