Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 422

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 422
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 stock appreciation rights, whether settled in cash or Channel’s common stock; |

| • | direct awards or sales of shares of Channel’s common stock, with or without restrictions; and |

| • | restricted stock units. |

The recipient of an award under the Prior Plan is referred to as a participant. Options . The administrator may grant incentive stock options (“ISOs”) and nonqualified stock options (“NSOs”) under the Prior Plan. The administrator determines the number of shares of Channel common stock subject to each option, its exercise price, its duration and the manner and time of exercise; provided, however, that no option may be issued under the Prior Plan with an exercise price that is less than the fair market value of Channel common stock as of the date the option is granted, and no option issued as an ISO will have a duration that exceeds ten years. ISOs may be issued only to Channel’s employees or employees of Channel’s corporate subsidiaries, and in the case of a more than ten percent stockholder, must have an exercise price that is at least 110% of the fair market value of Channel common stock as of the date the option is granted, and may not have a duration of more than five years. The administrator, in its discretion, may provide that any option is subject to vesting limitations that make it exercisable during its entire duration or during any lesser period of time. The exercise price of an option may be paid in cash, by delivery of a recourse promissory note secured by the Channel common stock acquired upon exercise of the option (except that such a loan would not be available to any of Channel’s executive officers or directors), by means of a “cashless exercise” procedure in which a broker transmits to Channel the exercise price in cash, either as a margin loan or against the optionee’s notice of exercise and confirmation by Channel that Channel will issue and deliver to the broker stock certificates for that number of shares of common stock having an aggregate fair market value equal to the exercise price, or agrees to pay the exercise price to Channel in cash upon Channel’s receipt of stock certificates, by delivery of shares of Channel common stock already owned by the optionee, by a “net exercise” in the case of an NSO or by any combination of the methods listed. Stock Appreciation Rights (“SARs”) . The administrator may also grant SARs to participants on such terms and conditions as it may determine. SARs may be granted separately or in connection with an option. No SAR may be issued under the