Lithium Americas Corp (LAAC)

[Shavasana]

The Plan provides for the grant of incentive stock options to directors, executive officers and key employees and consultants of the Company and its subsidiaries. This equity incentive component is a key part of the executives’ overall compensation package, reflecting the Company’s belief that stock options offer an effective mechanism for incentivizing management and aligning the interests of executive officers with those of shareholders. Since incentive stock options are not granted at a discount to the prevailing market price of the Common Shares, the incentive stock options granted to the Company’s executive officers accrete value only when the market price of such shares increases, thereby linking equity-based executive compensation to shareholder returns.