Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 261

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 261
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 Financing and the other transactions contemplated thereby, or as previously incurred in such outside legal counsel’s capacity as such in the ordinary course of business with Channel; and |

| (c) | Channel will pay all reasonable attorneys’ fees and other costs (including expert witness fees) incurred by Ligand, LNHC and/or Nomis Bay in connection with such person’s defense against any action, suit, proceeding, claim, arbitration or investigation before any governmental entity or before any arbitrator arising or relating to the Merger Agreement or the PIPE Financing. |

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AGREEMENTS RELATED TO THE MERGER Lock-Up Agreements Concurrently with the execution of the Purchase Agreement, each of (i) LNHC’s and Channel’s executive officers and directors, (ii) certain investors who have entered the Purchase Agreement, (iii) a certain investment company and (iv) Ligand and Nomis Bay have entered into lock-up agreements, pursuant to which such parties have agreed not to, except in limited circumstances, offer, pledge, sell, contract to sell, sell any option to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Channel common stock or Channel Preferred Stock, from the closing of the Merger until December 31, 2025, subject to certain exceptions set forth in each of the applicable lock-up agreements. In addition, Ligand, Nomis Bay and a certain other PIPE Investor agreed in their lock-up agreements to certain customary standstill provisions prohibiting such PIPE Investor from, among other things: (a) offering or proposing to acquire Channel common stock or other equity securities of Channel, other than shares acquired pursuant to the Purchase Agreement; (b) making, effecting or commencing any merger or other business combination involving Channel or other extraordinary transaction with respect to Channel; (c) soliciting proxies with respect to the voting of any securities of Channel; and (d) making any public statements or having any discussion with any securityholder of Channel seeking to control, change or influence the Board, management or policies of Channel. Ligand owned, in the aggregate, 100% of the shares of LNHC’s outstanding capital stock. The Channel stockholders who have executed lock-up agreements as of April 16, 2025 owned in the aggregate, approximately 25.8% of the shares of Channel’s outstanding common stock. The foregoing description of the lock-up agreements does not purport to be