Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 225

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 225
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 Friedberg and Dr. Richard Malamut, existing directors of Channel, are expected to continue as directors of the combined company, and following the closing of the Merger will be eligible to be compensated as non-employee directors of the combined company pursuant to the combined company’s non-employee director compensation policy that will be put in place following the Effective Time. See section titled “ Management Following the Merger—Executive Officers and Directors of the Combined Company Following the Merger” beginning on page 226. Ownership Interests As of May 2, 2025, Channel’s directors and executive officers beneficially owned, in the aggregate, approximately 10.5% of the shares of Channel common stock, which for purposes of this subsection excludes any

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shares of Channel common stock issuable upon exercise of stock options to purchase shares of Channel common stock or shares issuable pursuant to restricted stock units held by such individual. Special Committee Compensation. The Special Committee consists of three independent members, Ezra Friedberg, Richard Malamut and Chia-Lin Simmons, each of whom the Channel board of directors determined to be independent and disinterested with respect to the Transactions. No member of the Special Committee received compensation in connection with their service on the Special Committee. Indemnification of Officers and Directors. Channel has entered into indemnification agreements with each of Channel’s current directors and executive officers. These agreements require Channel to indemnify these individuals to the fullest extent permitted under Nevada law against liabilities that may arise by reason of their service to Channel, and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified. In addition, pursuant to the terms of the Merger Agreement, Channel has agreed either (i) continue to maintain in effect for six years after the Effective Time, Channel’s directors’ and officers’ insurance policies and fiduciary liability insurance policies, as applicable, in place as of the date of the Merger Agreement or (ii) purchase a six year “D&O tail policy” for the non-cancellable extension of the of the directors’ and officers’ liability coverage of Channel’s directors’ and officers’ insurance policies, as applicable, for a claims reporting or discovery period of at least six years from the Effective Time, with terms, conditions, retentions and limits of liability that are no less favorable than the coverage provided under the applicable existing policies as of the date of the Merger Agreement with respect to any actual or alleged error, misstatement, misleading statement