Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 415

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 415
---
 to vesting limitations that make it exercisable during its entire duration or during any lesser period of time. The exercise price of an option may be paid in cash, by delivery of a recourse promissory note secured by the Channel common stock acquired upon exercise of the option (except that such a loan would not be available to any of Channel’s executive officers or directors), by means of a “cashless exercise” procedure in which a broker transmits to Channel the exercise price in cash, either as a margin loan or against the optionee’s notice of exercise and confirmation by Channel that Channel will issue and deliver to the broker stock certificates for that number of shares of common stock having an aggregate fair market value equal to the exercise price, or agrees to pay the exercise price to Channel in cash upon Channel’s receipt of stock certificates, by delivery of shares of Channel common stock already owned by the optionee, by a “net exercise” in the case of an NSO or by any combination of the methods listed. Stock 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 Prior Plan with an exercise price that is less than the Fair Market Value of Channel 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 Channel common stock for which the SAR is exercised over the exercise price for the Channel 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. Payment to the participant may be made in cash or other property, including Channel common stock, in accordance with the provisions of the SAR agreement.

235

#### TABLE OF CONTENTS
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 Channel’s common stock with restrictions determined