Company: FEAV
Filing Date: 2025-10-27
Form Type: DEF 14A
Source: 0001193125-25-250705
Chunk: 56

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-10-27
Form: DEF 14A
Chunk 56
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 Common Stock without the payment of consideration. Therefore, the weighted-average exercise price excludes RSUs and PSUs outstanding under the Incentive Plan. |
| (3) | The number of shares remaining available for future grant under the Incentive Plan reflects the number of PSU awards outstanding based on the achievement of “target” performance goals.                                                                                                                                              |

Background of Determination of Shares Under the Plan Amendment As mentioned above, in its determination to approve the Plan Amendment, the Board was primarily motivated by a desire to ensure the Company has an available pool of shares from which to grant long-term equity-based incentive awards, which the Board believes is an incentive and retention mechanism for our employees, consultants and non-employee directors. The Board considered key factors in making its determination including our historical grant rates, the shares remaining available for issuance under the Incentive Plan, and the potential dilution associated with the Incentive Plan. This review included a consideration of the following key metrics, factors and philosophies: • In fiscal year 2025, we granted equity awards covering 691,602 shares of our Common Stock. On average, over the fiscal 2023-2025 period, we granted 266,172 shares annually. The amounts include PSUs based on the achievement of “target” performance goals. • Our three-year average annual share pool usage over the most recently completed three-fiscal year period (or “burn rate”) was approximately 4.6%, as shown in the following table.

| Burn Rate Information      |     | FY 2023 |           |   |     | FY 2024 |           |   |     | FY 2025 |           |   |     | Three-Year Average  
 (FY 2023 – FY 2025) |           |   |
| Stock Options Granted      |     |         |    34,781 |   |     |         |    24,999 |   |     |         |   606,996 |   |     |                     |   222,259 |   |
| RSUs Granted               |     |         |    13,994 |   |     |         |    19,976 |   |     |         |    64,817 |   |     |                     |    32,929 |   |
| PSUs Granted (at “target”) |     |         |     7,880 |   |     |         |     5,284 |   |     |         |    19