Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 344

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 344
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in its sole discretion, and for so long as Dr. Lang remains an employee, make an annual discretionary bonus award of an option
to acquire up to 32,000 additional shares of Common Stock of the Company. Any such option shall vest in equal increments on a
quarterly basis, beginning one quarter after the date of grant, with the final vesting date on the third anniversary of the date
of grant. The option shall have an exercise price equal to the fair market value of our Common Stock on the date of grant and
shall expire on the 10th anniversary of the date of grant.

Pursuant
to Dr. Lang’s employment agreement, in the event he is involuntarily terminated by the Company other than for “Cause”
or if he resigns for “Good Reason,” he is entitled to receive (i) six months of salary at the same rate existing immediately
prior to his termination, (ii) 50% of his annualized salary, prorated from January 1 of the year of termination and through the
date of termination, (iii) vesting of all outstanding options with time-based vesting, and (iv) coverage of 18 months of group
medical, dental and/or vision benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, if he elects
to continue such benefits. “Cause” and “Good Reason” are each defined in the employment agreement.

Finally,
Dr. Lang agreed to certain non-solicitation and non-competition provisions for a period of 12 months following termination and
to certain confidentiality obligations. Additional terms and conditions are set forth in the employment agreement.

91 

Equity
and Equity-Based Plans

Outstanding
Equity Awards at Fiscal Year-End 

The
following table provides information regarding the outstanding equity awards of our named executive officers during the year ended
December 31, 2024.

    Option Awards
     
    Stock Awards

    Name and Principal Position 
     Number of Securities Underlying Unexercised Options Exercisable  
     Number of Securities Underlying Unexercised Options Unexercisable  
     Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options  
     Option Exercise Price  
    Option Expiration Date 
     Number of shares of Common Stock Unvested  
     Market Value of shares of Common Stock Unvested