Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 650

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 650
---
 equal to the
fair market value of the Company’s Common Stock on the date of grant and expiring on the 10th anniversary of the date of
grant; (ii) an option, awarded as of January 10, 2023, to acquire 2,778 shares of the Company’s Common Stock, vesting 100%
upon the sooner of the sale of the Company or Post-registration Approval, with the option having an exercise price equal to the
fair market value of the Company’s Common Stock on the date of grant and expiring on the 10th anniversary of the date of
grant; and (iii) a RSU, awarded as of January 10, 2023, of 16,667 shares of the Company’s Common Stock, vesting 100% on the
day after the first trading window that opens after Post-registration Approval.  

    F-13 

The
Consultant Agreement contemplates an additional consulting fee, as determined by the Board. The potential additional consulting
fee is 50% of the annualized consulting fee and will be based on achievement of performance goals and objectives established by
the Board in concert with Mr. Knuettel in January of each year. The Board may increase the potential additional consulting fee
in recognition of performance in excess of the performance objectives. Any amount shall only be paid if Camden continues to provide
consulting services to the Company as of the date of payment, which will be no later than March 15 of the year following the year
to which the additional consulting fee relates. Any additional consulting fee for 2022 is payable solely in the Board’s
discretion.

Pursuant
to the Consultant Agreement, in the event the relationship with Camden is involuntarily terminated by the Company other than for
“Cause” or if Camden terminates the relationship for “Good Reason,” Camden is entitled to receive (i)
six months of consulting fees at the same rate existing immediately prior to termination, (ii) a potential additional consulting
fee, if performance goals and objectives have 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
Reason” are each defined in the Consultant Agreement.

Finally,
Camden and Mr. Knuettel agree to certain non-solicitation and non-competition provisions for a period of 12 months following termination
of the relationship and to certain confidentiality