Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 221

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 221
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 to hold the title of Chief Executive Officer following the Merger (the “Knuettel Waiver”).

In connection with hiring Dr. Eric Lang as Channel’s Chief Medical Officer in May 2023, Channel entered into an Employment Agreement with Dr. Lang, effective May 15, 2023 (the “Lang Employment Agreement”). Pursuant to the Lang Employment Agreement, in the event Dr. Lang is involuntarily terminated other than for “Cause” (as defined in the Lang Employment Agreement) or he resigns for “Good Reason” (as defined in the Lang Employment Agreement), Dr. Lang will be entitled, subject to his execution and nonrevocation of a release of claims in Channel’s favor and his continued compliance with certain restrictive covenants, to the extent appliable, to receive: (i) an amount equal to 50% of his annualized salary in a lump sum at the rate in effect immediately prior to the termination of the Lang Employment Agreement; (ii) a pro-rated target bonus for the year of termination based on his length of service in such year, payable no earlier than January 1 nor later than March 15 of the year following the year of termination, (iii) in the event Mr. Knuettel elects to continue Channel group medical, dental and/or vision benefits under the COBRA, direct payment or reimbursement by Channel of the cost of such coverage for up to 18 months, unless doing so violates applicable law or is inconsistent with the coverage arrangement, and (iv) full acceleration of vesting of all his outstanding time-based option awards.

For an estimate of the value of the severance payments and benefits described above that would be payable to Channel’s executive officers assuming that the effective time of the transaction occurs on May 2, 2025 and that each executive officer’s employment is terminated without cause on the same day, see the table contained under “- Quantification of Payments and Benefits to Channel Named Executive Officers ” below.

Transaction-Based Payments and Benefits

On April 11, 2025, the Channel board of directors granted Ms. Simmons an option to purchase 25,000 shares of Channel common stock with an exercise price of $1.35, in consideration for the services provided by Ms. Simmons to Channel and the fact that Ms. Simmons, a member of the Channel board of directors, will not constitute a member of the combined company’s board of directors following the closing of the Merger. The option vests in full upon consummation of the Mer