Company: LCTX
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0000950170-25-060090
Chunk: 47

Company: Lineage Cell Therapeutics, Inc.
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 47
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 2021 Plan to make an additional 19,500,000 common shares available for issuance. When we solicited such shareholder approval, we stated that, absent any unforeseen circumstances, we anticipated seeking shareholder approval of another increase in the number of shares available for issuance under the 2021 Plan in 2025. The Board, upon the recommendation of its Compensation Committee, adopted the Plan Amendment, subject to shareholder approval. A text of the Plan Amendment is set out in Appendix A to this Proxy Statement and incorporated herein by reference.

Why You Should Approve the Plan Amendment

The 2021 Plan, through the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock awards and other awards based in whole or in part by reference to the Company’s common shares (collectively, “Awards”), is intended to help us secure and retain the services of employees, directors and consultants, provides incentives for such persons to exert maximum efforts for our success, and provides a means by which such persons may benefit from increases in value of our common shares.

In addition, stock options and other Awards are an important part of our employee and director compensation packages. Our Board believes that our ability to attract and retain the services of employees, consultants, and directors depends in great measure upon our ability to provide the kind of incentives that are derived from the ownership of stock and stock options that are offered by other pharmaceutical development and biotechnology companies. We believe that we will be placed at a serious competitive disadvantage in attracting and retaining capable employees, consultants, and directors at a critical time in our corporate development, unless the number of shares available under the 2021 Plan is increased at this time. The Plan Amendment will also allow us to continue to grant equity incentives to secure and retain the services of our employees, directors and consultants, and to continue to provide long-term incentives that align the interests of our employees, directors and consultants with the interests of our shareholders. Absent any unforeseen circumstances, our Board believes that amending the 2021 Plan to make 19,500,000 additional common shares available for the grant of Awards will fulfill our equity compensation needs through and including our annual grants in 2027.

The 2021 Plan Combines Compensation and Governance Best Practices

The 2021 Plan includes provisions that are designed to protect our shareholders’ interests and to reflect corporate governance best practices including:

Shareholder approval is required for additional shares . The 2021 Plan does not contain an annual “evergreen” provision. The