Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 220

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 220
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256,488 shares of Channel common stock and Dr. Lang held unvested stock options to purchase 91,343 shares of Channel common stock. As of May 2, 2025, neither Mr. Knuettel nor Dr. Lang held any Channel unvested restricted stock units. As of May 2, 2025, Channel’s non-employee directors held, in the aggregate, 111,807 unvested stock options to purchase Channel common stock and 243,471 unvested restricted stock units with respect to shares of Channel’s common stock. Severance Benefits The following disclosure includes information with respect to the severance arrangements of the Channel executive officers under the terms of their existing employment agreements, which severance arrangements are applicable without regard to whether the Merger is consummated. Pursuant to the Employment Agreement with Mr. Knuettel, effective May 1, 2024 (the “Knuettel Employment Agreement”), in the event Mr. Knuettel is involuntarily terminated other than for “Cause” (as defined in the Knuettel Employment Agreement) or he resigns for “Good Reason” (as defined in the Knuettel Employment Agreement), Mr. Knuettel will be entitled, subject to his execution and nonrevocation of a release of claims in Channel’s favor and his continued compliance with certain restrictive covenants, to the extent applicable, to receive (i) an amount equal to 50% of his annualized salary payable ratably over a period of six months beginning at the end of the 60-day period following his termination; (ii) a pro-rated target bonus for the year of termination based on his length of service in such year, payable as a lump sum at the end of the 60-day period following his termination, (iii) in the event

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Mr. Knuettel elects to continue Channel group medical, dental and/or vision benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), direct payment or reimbursement by Channel of the cost of such coverage at active employee rates for up to 18 months, unless doing so violates applicable law or is inconsistent with the coverage arrangement, and (iv) full acceleration of vesting of all his outstanding time-vested option awards. Mr. Knuettel has agreed in writing to waive his right to terminate for Good Reason under the Knuettel Employment Agreement as a result of his ceasing