Northern Graphite grants DSUs, option

Executive Summary

• Northern Graphite Corp. granted 2.0 million Deferred Share Units (DSUs) and 2.0 million stock options to a senior executive officer as part of its long-term incentive, reward, and retention programs.
• The stock options are exercisable at $0.25 per share, vest immediately, and have a five-year term.
• The DSUs are performance-based, vesting no earlier than one year from the grant date upon attainment of specific corporate objectives, including debt restructuring, final investment decisions for the Okanjande mine restart and Saudi Arabia battery plant construction, and market capitalization growth targets.

Key Details

• Grant Details: 2.0 million Deferred Share Units (DSUs) and 2.0 million stock options granted to a senior executive officer.
• Stock Option Terms:
  • Exercise Price: $0.25 per share.
  • Quantity: 2.0 million options (each exercisable for one common share).
  • Vesting: Immediate.
  • Term: Five years.
• DSU Terms:
  • Nature: Entirely performance-based.
  • Vesting Schedule: No earlier than one year from the date of grant.
  • Vesting Conditions: Attainment of specific corporate objectives, including:
    • Restructuring the company's debt.
    • Final investment decisions regarding the restart of operations at the Okanjande mine.
    • Final investment decisions regarding the construction of a battery anode material plant in Saudi Arabia.
    • Achieving specific growth targets regarding the company's market capitalization.
  • Settlement: Upon vesting, each DSU entitles the holder to one common share or cash equivalent at the discretion of the board of directors.
• Governance: All grants are subject to the company's deferred share unit and restricted share unit compensation plan and its amended and restated stock option plan, as approved by shareholders.

Notable Quotes

• "These equity incentives are designed to align our leadership with the long-term interests of shareholders," said Northern chairman Gregory Bowes. "As we advance our strategy, retaining and recruiting experienced talent and maintaining continuity of execution are critical to delivering on our objectives."