options to buy 504,332 shares 2022-11-08 16:24 ET - News Release
Mr. Sebastien Lavallee reports
CRITICAL ELEMENTS GRANTS STOCK OPTIONS, RSUS AND DSUS
Critical Elements Lithium Corp. has granted stock options and restricted share units (RSUs) to management as part of a short- and long-term incentive program as determined by the board and deferred share units (DSUs) to the independent directors in accordance with the corporation's omnibus equity incentive plan adopted at the last annual and special meeting of shareholders.
The Board has approved the grant of an aggregate of 279,475 RSUs, 78,603 DSUs, and 504,332 stock options to the independent directors and management of the Corporation. The Omnibus Equity Incentive Plan's objective is to create an incentive compensation program that is aligned with the Corporation's long-term objectives.
Each vested RSU and DSU can be redeemed for one fully paid and non-assessable common share of Critical Elements issued from treasury. The number of RSUs and DSUs granted was calculated based on the compensation that is to be paid to the management or directors, as determined by the Board, by dividing (i) the amount of any compensation that is to be paid in RSUs/DSUs by (ii) the closing market price of Critical Elements' common shares on the TSX Venture Exchange as at November 7, 2022.
For management, 104,803 RSUs granted will vest one year following their date of grant in common shares of the Corporation and 174,672 RSUs will vest in four equal tranches starting one year from their date of grant.
Stock options to independent directors and management were granted with a 5-year term with an exercise price of $2.29 per common share, which represents the closing market price of Critical Elements' common shares on the TSX Venture Exchange as at November 7, 2022.
In accordance with the Omnibus Equity Incentive Plan, where a participant's employment, consulting agreement or arrangement is terminated or the participant ceases to hold office or his or her position (the "Termination Date"), as applicable, then any stock option, RSUs or DSUs held by the participant that has not been exercised as of the Termination Date shall be immediately forfeited and cancelled as of the Termination Date.