Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 224

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 224
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     | $328,724 |

| (1) | The amounts in this column represent the aggregate cash severance payments that each named executive officer would be entitled to receive pursuant to the terms of his employment agreement with Channel upon a termination of his employment by Channel without cause or upon the named executive officer’s resignation for good reason on the Merger completion date. See “Interests of Channel Directors and Executive Officers in the Merger-Severance Benefits” above for a description of each named executive officer’s cash severance rights under such individual’s employment agreement. The amounts are double-trigger amounts payable only if a termination without cause or for good reason occurs. |

| (2) | The amounts in this column represent the estimated cost of premiums for continued medical, dental and/or vision coverage pursuant to COBRA for 18 months for each named executive officer, less the amount the named executive officers would have had to pay to receive such coverage as an active employee based on the cost sharing levels in effect on such individual’s termination date. See “Interests of Channel Directors and Executive Officers in the Merger-Severance Benefits” above for a description of each named executive officer’s healthcare continuation rights under such individual’s employment agreement. The amounts are double-trigger amounts payable only if a termination without cause or for good reason occurs. |

| (3) | The amounts in this column represent the estimated value of the accelerated vesting of each named executive officer’s Channel stock options. The amount shown for each Channel stock option equals (x) the number of accelerated shares subject to the Channel stock option, multiplied by (y) $1.512, the average closing trading price of Channel common stock over the first five business days following the first public announcement of the transactions contemplated by the Merger Agreement on April 17, 2025, less the applicable exercise price, where (y) is a positive number. (To the extent that the exercise price for any unvested Channel stock options held by a named executive officer exceeds $1.512, it is determined that each share subject to the unvested stock option to purchase Channel common stock that would be accelerated in the circumstances described above has zero value.) The treatment of the named executive officers’ option awards upon a qualifying termination is described in more detail above in the section “Interests of Channel Directors and Executive Officers in the Merger-Severance Benefits.” The amounts are double-trigger amounts payable only if a termination without cause or for good reason occurs. |

Continuing Directors of Channel Todd Davis, Ezra