Company: FEAV
Filing Date: 2025-01-24
Form Type: PRE 14A
Source: 0000950170-25-008828
Chunk: 26

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-24
Form: PRE 14A
Chunk 26
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 The Amended Plan was adopted by our Board on January 24, 2025, subject to stockholder approval of the Amended Plan, and further subject to stockholder approval of the Share Issuance Proposal to effect the out-of-court process. If this Equity Plan Proposal and the Share Issuance Proposal are approved by our stockholders, the Amended Plan will become effective as of the date the Special Meeting (the “Amended Plan Effective Date”). Any grants made under the Amended Plan will be made only after the completion of the out-of-court process. The Board recommends that you vote “FOR” the approval of the Amended Plan.

The proposed amendment and restatement would make the following material changes to the Incentive Plan:

Increase the Share Reserve . We are asking our stockholders to approve an increase of 14,000,000 in the number of shares of our Common Stock available for issuance under the Amended Plan over the existing share reserve under the Incentive Plan. As of January 23, 2025, awards covering a total of 2,185,515 shares were subject to outstanding awards under the Incentive Plan (with performance awards counted assuming “target” performance) and 4,801,833 shares remained available for future grants under the Incentive Plan (with performance awards counted assuming “target” performance).

Based on our 2024 equity granting practices, projections for future equity grants, and expectations around new hires we expect that the requested share pool will allow us to grant equity awards to our employees and members of the Board of Directors for the next 1 to 2 years.

The proposed increase in shares available for issuance under the Amended Plan (over the existing share reserve under the Incentive Plan) has been reviewed and approved by our Board. In the process, the Board determined that the existing number of shares available for issuance under the Incentive Plan was insufficient to meet our needs to provide long-term incentive grants on an ongoing and regular basis to motivate, reward and retain key employees who the Board believes will be critical for creating stockholder value. The increase will enable us to continue our policy of equity ownership by employees and directors as an incentive to contribute to our continued success.

Updates to Equity Awards Offered. Under the Amended Plan, we may now grant incentive stock options (“ISOs”) to eligible participants and no more than 21,500,000 shares may be issued upon the exercise of ISOs, subject to adjustment for changes in our capitalization and certain