Company: FEAV
Filing Date: 2025-02-03
Form Type: DEF 14A
Source: 0000950170-25-012391
Chunk: 31

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-03
Form: DEF 14A
Chunk 31
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 available reserve as of January 23, 2025 (4,801,833 shares, assuming the achievement of outstanding PSUs at “target” performance goals) plus 14,000,000 shares) by the number of shares that we grant during such period.

The Amended Plan Combines Compensation and Governance Best Practices

The Amended Plan includes provisions that are designed to protect our stockholders’ interests and to reflect corporate governance best practices including:

Stockholder approval is required for additional shares. The Amended Plan does not contain an annual “evergreen” provision. The Amended Plan authorizes a fixed number of shares, so that stockholder approval is required to increase the maximum number of shares of our Common Stock which may be issued under the Amended Plan.

No discount stock options. All stock options will have an exercise price equal to or greater than the fair market value of our Common Stock on the date the stock option is granted.

Repricing and cash buyouts are not allowed. The Amended Plan prohibits the repricing or other exchange of underwater stock options for new awards or cash without prior stockholder approval.

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Clawback. The Amended Plan provides that all awards will be subject to the Company’s clawback policy (to the extent the policy applies).

Stockholder Approval

As mentioned above, if this Amended Plan is approved, then as of the Amendment Effective Date, an aggregate of 21,500,000 shares will be reserved for issuance pursuant to the Amended Plan, all which may be granted as ISOs pursuant to Section 422 of the Code. In addition, we will be able to grant ISOs until the tenth anniversary of the date of Board approval of the Amended Plan, and the number of shares that may be issued to any individual (when combined with all of our other securities-based arrangements, as applicable) will be increased to 3% (from 2%) of our outstanding number of issued shares from time to time (the “individual award limit”). Approval of the Amended Plan will constitute approval pursuant to the Nasdaq Stock Market stockholder approval requirements applicable to equity compensation plans. Stockholder approval is also required for us to grant stock options that qualify as ISOs, as defined under Section 422 of the Code.

If our stockholders do not approve the Amended Plan pursuant to this Proposal Two, and if the Share Issuance Proposal is not approved pursuant to Proposal One, the additional shares proposed by the Amended Plan will not become available