Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 224

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 224
---
 named executive officer’s resignation for good reason on the Merger completion date. See “Interests of Channel Directors and Executive Officers in the Merger-Severance Benefits” above for a description of each named executive officer’s cash severance rights under such individual’s employment agreement. The amounts are double-trigger amounts payable only if a termination without cause or for good reason occurs. |

| (2) | The amounts in this column represent the estimated cost of premiums for continued medical, dental and/or vision coverage pursuant to COBRA for 18 months for each named executive officer, less the amount the named executive officers would have had to pay to receive such coverage as an active employee based on the cost sharing levels in effect on such individual’s termination date. See “Interests of Channel Directors and Executive Officers in the Merger-Severance Benefits” above for a description of each named executive officer’s healthcare continuation rights under such individual’s employment agreement. The amounts are double-trigger amounts payable only if a termination without cause or for good reason occurs. |

| (3) | The amounts in this column represent the estimated value of the accelerated vesting of each named executive officer’s Channel stock options. The amount shown for each Channel stock option equals (x) the number of accelerated shares subject to the Channel stock option, multiplied by (y) $1.512, the average closing trading price of Channel common stock over the first five business days following the first public announcement of the transactions contemplated by the Merger Agreement on April 17, 2025, less the applicable exercise price, where (y) is a positive number. (To the extent that the exercise price for any unvested Channel stock options held by a named executive officer exceeds $1.512, it is determined that each share subject to the unvested stock option to purchase Channel common stock that would be accelerated in the circumstances described above has zero value.) The treatment of the named executive officers’ option awards upon a qualifying termination is described in more detail above in the section “Interests of Channel Directors and Executive Officers in the Merger-Severance Benefits.” The amounts are double-trigger amounts payable only if a termination without cause or for good reason occurs. |

Continuing Directors of Channel Todd Davis, Ezra 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-