Company: WKSP
Filing Date: 2025-10-31
Form Type: DEF 14A
Source: 0001493152-25-020401
Chunk: 39

Company: Worksport Ltd
Filing Date: 2025-10-31
Form: DEF 14A
Chunk 39
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ANIMOUSLY RECOMMENDS THAT STOCKHOLDERS VOTE “FOR” APPROVAL AND RATIFICATION OF THE NON-PLAN STOCK OPTION GRANTS PREVIOUSLY APPROVED BY THE BOARD IN ACCORDANCE WITH NASDAQ LISTING RULE 5635(c).

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PROPOSAL No. 4: APPROVAL OF AMENDMENTS TO THE WORKSPORT LTD. 2022 EQUITY INCENTIVE PLAN

At the Annual Meeting, stockholders will be asked to approve amendments to the Worksport Ltd. 2022 Equity Incentive Plan (the “2022 Equity Incentive Plan” or the “Plan”) to (i) change the Plan’s “evergreen” formula from an annual increase to a quarterly increase and (ii) increase the evergreen percentage from 15% to 18% of the Company’s outstanding common stock.

The Board believes these amendments are necessary to provide the Company with greater flexibility in administering its equity compensation program and to better align the timing of share reserve replenishment with the Company’s operational and hiring cycles. The Board further believes that these changes will help ensure that the Company can continue to attract, retain, and incentivize key employees, officers, consultants, and directors as it executes its growth strategy and expands its operations.

If approved by stockholders, the number of shares of common stock available for issuance under the Plan will automatically increase on the first trading day of each calendar quarter (January 1, April 1, July 1, and October 1) rather than on January 1 of each calendar year. The automatic increase, commonly referred to as the “evergreen,” will also be revised from 15% to 18% of the Company’s total outstanding shares of common stock as of the last trading day of the immediately preceding calendar quarter, minus the total number of shares reserved and available for issuance under the Worksport Ltd. 2021 Equity Incentive Plan. No other material terms of the 2022 Equity Incentive Plan are being amended. All other provisions, including eligibility, award types, vesting, and plan administration, will remain unchanged.

The 2022 Equity Incentive Plan was originally approved by stockholders at the 2022 Annual Meeting. The Plan currently provides for an automatic annual share reserve increase equal to 15% of the Company’s outstanding common stock as of December 31 of the prior year. The proposed amendments will replace that annual increase mechanism with a quarterly adjustment based on 18% of outstanding shares