Company: TPET
Filing Date: 2025-06-18
Form Type: DEF 14A
Source: 0001641172-25-015530
Chunk: 15

Company: Trio Petroleum Corp.
Filing Date: 2025-06-18
Form: DEF 14A
Chunk 15
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 the exercise of incentive stock options under the 2022 Plan (“ISOs”) from 500,000 shares of common stock to 2,500,000 shares of common stock.

We believe strongly that the increase in shares of common stock reserved for issuance with respect to awards granted under the 2022 Plan and the increase in the maximum number of shares of common stock which may be issued pursuant to ISOs under the 2022 Plan is essential to our continued success and therefore is in the best interests of the Company and our stockholders. Our employees are our most valuable assets. The Board believes that grants of stock options, restricted stock units, performance-based restricted stock units and other equity awards under the 2022 Plan help create long-term equity participation in the Company and thereby assist us in attracting, retaining, motivating and rewarding employees, directors, and consultants. The Board also believes that long-term equity compensation is essential to link executive pay to long-term stockholder value creation.

As of June 2, 2025, the Record Date, there were 62,750 shares of common stock remaining available for the grant of awards under the 2022 Plan. Without these increases, we will be limited, in the future, as to the number of shares of common stock we will have available for the granting of additional awards, including ISOs, to employees, which could make it difficult for us to retain our current employees and to also attract new highly qualified employees. Our ability to attract and retain qualified directors to serve on our Board is also contingent on our ability to provide them with compensation in the form of equity which is comparable with the equity compensation provided to directors of other public companies in our industry. This cannot be accomplished without an increase in the 500,000 shares of common stock currently authorized under the 2022 Plan. Finally, 2,500,000 shares of common stock, which is the number of shares that the Board has approved to be reserved under the 2022 Plan represents approximately 33% of the 7,522,499 shares of common stock issued and outstanding as of June 2, 2025, the Record Date, which the Board has determined reasonable and necessary to properly compensate our employees and directors.

The above-described amendments to the 2022 Plan will not be effective unless and until approved by our stockholders. If our stockholders do not approve the above-described amendments to the 2022 Plan, the amendments will not take effect, but we may continue to grant rights to purchase shares under the