Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 223

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 223
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 qualifying termination. Quantification of Payments and Benefits to Channel Named Executive Officers The below table sets forth the payments and benefits payable to Mr. Knuettel and Dr. Lang in the event of a qualifying termination of employment of each of Mr. Knuettel and Dr. Lang in connection with the Merger, assuming that (i) the completion of the Merger occurs on May 2, 2025, (ii) Mr. Knuettel and Dr. Lang each experience a qualifying termination of employment on such date, (iii) Mr. Knuettel’s and Dr. Lang’s annual base salary and annual target bonus remain unchanged from that in effect as of the date of this information statement, (iv) the value of the accelerated vesting of any Channel option is calculated assuming a market price per share of Channel common stock equal to $1.512 (which equals 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), (v) neither Mr. Knuettel nor Dr. Lang receives any additional option grants prior to completion of the Merger, and (vi) each named executive officer will properly execute any required releases necessary in order to receive the payments and benefits. As noted above, the severance payments and benefits are payable upon a qualifying termination of employment without regard to whether a change in control is consummated, thus, this disclosure is being included for conservatism. The amounts in the following table are estimates based on multiple assumptions that may not actually occur and do not include amounts that were vested as of May 2, 2025. In addition, certain amounts will vary depending on the actual date of closing of the Merger and whether or not a named executive officer experiences a qualifying termination of employment. As a result, the actual amounts, if any, to be received by a named executive officer may differ in material respects from the amounts set forth below:

| Employee            |     | Severance(1) |     | COBRA(2) |     | Acceleration of 
       Awards(3) |     |    Total |
| Francis Knuettel II |     |     $273,521 |     |  $82,235 |     |         $45,789 |     | $401,545 |
| Dr. Eric Lang       |     |     $266,849 |     |  $48,095 |     |         $13,780 |