CALGARY, Dec. 14 /CNW/ -- Cathedral Energy Services Income Trust (the "Trust" - TSX: CET.UN) announces that the Board of Trustees have approved amendments to the incentive stock option plan (the "Option Plan") that unitholders will be asked to approve in connection with the proposed plan of arrangement for the conversion of the Trust to a growth-oriented corporation (the "Arrangement") at the special meeting of the Trust's unitholders scheduled for 9:00 a.m. on Friday, December 18, 2009 in the Royal Meeting Room of the Metropolitan Conference Centre, 333 - 4th Avenue S.W., Calgary, Alberta.
The Option Plan has been amended as follows:
- to include a new provision which will provide that the number of
common shares of the Corporation ("Shares") reserved for issue under
options granted to non-employee directors of the corporation be
limited to 1% of the Shares outstanding from time to time;
- to include a new provision which will provide for a maximum annual
equity grant to non-employee directors of the Corporation to be
limited to $100,000 per non-employee director as calculated under the
Black-Scholes pricing model of share options granted during the year;
and
- to provide that approval of the shareholders of the Corporation will
be required to effect any amendment of the Option Plan which may
reduce the exercise or purchase price of any options held by any
person, regardless of whether such person is an insider of the
Corporation; extend the term any options held by any person,
regardless of whether such person is an insider of the Corporation;
permit options to become transferrable or assignable, other than for
normal estate planning purposes; or amend the amendment provisions of
the Plan.
The amendments will result in RiskMetrics revising its recommendation to a "FOR" vote in connection with the resolution on the option plan
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