Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 1667

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 7A
Chunk 1667
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 the employee agreements, subject to continued employment, the restricted shares
vest as follows: 25% of the shares vested five months after the issuance date, after which the remainder vest in equal tranches every
six months until fully vested. The shares were recorded on the date of issuance at a fair value of $43.00 per share for an aggregate
fair value of $1,505,000, and for the years ended October 31, 2024 and 2023, the Company recognized stock-based compensation of $753,188
and $440,219, respectively, within stock-based compensation expenses on the income statement, with unrecognized expense of $311,593 as
of the period ended October 31, 2024.

On
October 16, 2023, the Company and Michael L. Peterson entered into an employment agreement (the “Peterson Employment Agreement”),
effective as of October 23, 2023, pursuant to which Mr. Peterson will serve as Chief Executive Officer of the Company, replacing Mr.
Ingriselli. Pursuant to the Peterson Employment Agreement, Mr. Peterson will be paid an annual base salary of $350,000. In addition,
Mr. Peterson is entitled to receive, subject to his continuing employment with the Company on the applicable date of the bonus payout,
an annual target discretionary bonus of up to 100% of his annual base salary, payable at the discretion of the Compensation Committee
of the Board based upon the Company’s and Mr. Peterson’s achievement of objectives and milestones to be determined on an
annual basis by the Board.

    F-15

Pursuant
to the Peterson Employment Agreement, the Company issued Mr. Peterson a grant of 50,000 shares of restricted stock pursuant to the Company’s
Omnibus Incentive Compensation Plan (the “Plan”) at a fair value of $5.40 per share for a grant date fair value of $271,000.
The restricted stock grant vests over a period of two years, with 25% of the shares of restricted stock vesting six months after the
Peterson Employment Agreement Effective Date, and the remainder vesting in equal tranches on each of the 12-, 18-, and 24-month anniversary
dates of the Peterson Employment Agreement. On March 26, 2024, the Company borrowed $125,000 from Mr. Peterson (the “Peterson Loan”),
in connection with which the Company delivered to Mr. Peterson an Unsecured Subordinated Prom