Company: SUNE
Filing Date: 2025-11-12
Form Type: PRE 14A
Source: 0001140361-25-041549
Chunk: 39

Company: SUNation Energy, Inc.
Filing Date: 2025-11-12
Form: PRE 14A
Chunk 39
---
 options, respectively. The Compensation Committee has recently reviewed the number of shares available for issuance under the 2022 Equity Incentive Plan, and determined that such number would be insufficient to meet our anticipated ongoing retention and recruiting needs. As a result of the limited available number of such shares available under this plan following the respective stock splits, on October 7, 2025, the Compensation Committee of the Board of directors approved the following amendments to the 2022 Equity Incentive Plan, subject to shareholder approval.

| (i) | an increase in the number of shares of common stock authorized for issuance under the 2022 Equity Incentive Plan from 67 to 1,000,067; |

| (ii) | an increase in the number of shares of common stock that can be issued as incentive stock options under the 2022 Equity Incentive Plan from 67 to a maximum of 25,000,000; and |

| (iii) | adding an evergreen provision for the purpose of increasing the number of shares of common stock reserved for issuance automatically on the first trading day of each calendar year beginning with calendar year 2027 through and including the first trading day of calendar year 2032 by up to 5.0% of the total number of shares of our common stock outstanding on December 31 of the immediately preceding calendar year. |

(collectively, the “Plan Amendments”). A copy of the Equity Incentive Plan, as proposed to be amended, is attached to this proxy statement as Appendix Aand is marked to show the proposed Plan Amendments. Factors Considered in Setting Size of Requested Share Reserve Increase The Compensation Committee believes the following are key reasons to vote in favor of the Plan Amendments:

| • | Equity awards are a key part of our compensation program.We believe that equity compensation has been, and will continue to be, a critical component of our compensation package because it (i) contributes to a culture of ownership among our employees, directors and consultants, (ii) aligns our employees’ interests with the interests of our other shareholders, and (iii) preserves our cash resources. We compete for talent in an extremely competitive industry, often with larger companies with greater resources. We believe that our ability to compensate with equity awards is essential to our efforts to attract and retain top talent. Equity awards are an essential part of our compensation package, are central to our employment value proposition, and are necessary for us to continue competing for top talent as we grow. |

29

TABLE OF CONTENT