Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 474

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 474
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 to receive payment equal
to the excess of the fair market value, on the date of exercise, of the number of shares of Common Stock for which the SAR is
exercised over the exercise price for the Common Stock under a related option or, if there is not a related option, over an amount
per share stated in the agreement setting forth the terms and conditions of the SAR.

93 

Payment
to the participant may be made in cash or other property, including Common Stock, in accordance with the provisions of the SAR
agreement. 

Stock
Grants. The administrator may make an award in one or more of the following forms of stock grant. Stock grants (including
restricted stock units and performance units after settlement) generally will provide the participant with all of the rights of
a stockholder of ours, including the right to vote and to receive payment of dividends.

Stock
grant without restriction. The administrator may make a stock grant without any restrictions.

Restricted
stock and RSUs. The administrator may issue shares of our Common Stock with restrictions determined by the administrator in
its discretion. Restrictions could include conditions that require the participant to forfeit the shares in the event that the
participant ceases to provide services to us or any of our affiliates thereof before a stated time. RSUs are similar to restricted
stock except that no shares are actually issued to the participant on the RSU grant date. Rather, and provided all applicable
restrictions are satisfied, shares of Common Stock are generally delivered at settlement of the award. The period of restriction,
the number of shares of restricted stock or the number of RSUs granted, the purchase price, if any, and such other conditions
and/or restrictions as the administrator may establish will be set forth in an award agreement. Participants holding RSUs will
not have voting rights or other rights as a stockholder until any shares related to the RSU are issued. After all conditions and
restrictions applicable to restricted shares and/or RSUs have been satisfied or have lapsed, shares of restricted stock will become
freely transferable and RSUs may be settled in cash, in shares of our Common Stock or in some combination of cash and shares of
our Common Stock, as determined by the administrator and stated in the award agreement. 

Performance
shares and performance share units (“PSUs”). With respect to an award of performance shares and/or PSUs, the administrator
will establish performance periods and performance goals. The extent to which a participant achieves their performance goals