Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1335

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 1335
---
 cash at the rate of $5,000
per month (a minimum of $1,125 per week), with the remainder accrued. All accrued consulting fees are payable as of the earliest
of a sale or liquidation of the Company, the Company’s bankruptcy or three days after Post-registration Approval. The Consultant
Agreement provides for the following equity awards to Camden: (i) an option, awarded as of January 10, 2023, to acquire 200,000
shares of our Common Stock, vesting quarterly over 10 quarters and beginning October 1, 2022, with the option having an exercise
price equal to the fair market value of our Common Stock on the date of grant and expiring on the 10th anniversary of the date
of grant; (ii) an option, awarded as of January 10, 2023, to acquire 25,000 shares of our Common Stock, vesting 100% upon the
sooner of the sale of the Company or Post-registration Approval, with the option having an exercise price equal to the fair market
value of our Common Stock on the date of grant and expiring on the 10th anniversary of the date of grant; and (iii) a restricted
stock unit (“RSU”), awarded as of January 10, 2023, of 150,000 shares of our Common Stock, vesting 100% on the day
after the first trading window that opens after Post-registration Approval.

The
Consultant Agreement contemplates an additional consulting fee, as determined by the board of directors. The potential additional
consulting fee is 50% of the annualized consulting fee and will be based on achievement of performance goals and objectives established
by the board of directors in concert with Mr. Knuettel in January of each year. The board of directors may increase the potential
additional consulting fee in recognition of performance in excess of the performance objectives. Any amount shall only be paid
if Camden continues to provide consulting services to the Company as of the date of payment, which will be no later than March
15 of the year following the year to which the additional consulting fee relates. Any additional consulting fee for 2022 is payable
solely in the board of directors’ discretion.

Pursuant
to the Consultant Agreement, in the event the relationship with Camden is involuntarily terminated by the Company other than for
“Cause” or if Camden terminates the relationship for “Good Reason,” Camden is entitled to receive