Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 159

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 159
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Appreciation Rights (“SARs”). The administrator may also grant SARs to participants on such terms and conditions
as it may determine. SARs may be granted separately or in connection with an option. No SAR may be issued under the 2023 Plan
with an exercise price that is less than the Fair Market Value of our Common Stock as of the date the SAR is granted, and no SAR
will have a duration that exceeds ten years. Upon the exercise of an SAR, the participant is entitled 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