Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1437

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7A
Chunk 1437
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ettel will serve as the Company’s Chief Executive Officer until a successor is duly elected
and qualified, unless sooner removed. In addition to his role as Chief Executive Officer of the Company, Mr. Knuettel will continue
to serve in his capacity as Chief Financial Officer, Treasurer and Secretary of the Company.

90 

Eric
Lang

We
are a party to an employment agreement with Eric Lang, effective May 15, 2023. Pursuant to such agreement, Dr. Lang agreed to
serve as our Chief Medical Officer, in consideration for an annualized salary of $400,000. The employment agreement provides that
Dr. Lang receive an option to acquire 218,000 shares of our Common Stock, vesting quarterly over 12 quarters and beginning August
15, 2023. This 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. The option was awarded as of May 15, 2023. The employment agreement
contemplates an annual bonus, as determined by the board of directors. The target bonus is 50% of Dr. Lang’s annualized
salary and will be based on achievement of performance goals and objectives determined by our Chief Executive Officer. The Chief
Executive Officer may increase the bonus in recognition of performance in excess of the performance objectives. Any bonus will
be paid if Dr. Lang remains employed on the date of payment, which will be no later than March 15 of the year following the year
to which the bonus relates. In addition, the employment agreement contemplates annual equity bonus. The board of directors may,
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