Company: SNWV
Filing Date: 2025-07-10
Form Type: DEF 14A
Source: 0001140361-25-025486
Chunk: 23

Company: SANUWAVE Health, Inc.
Filing Date: 2025-07-10
Form: DEF 14A
Chunk 23
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 not take effect and no shares will be added to the 2024 Plan’s share reserve. Proposed Amendment The Amendment would increase the number of shares authorized for issuance under the 2024 Plan by 500,000 shares to a total of 1,876,556 shares. The Board has concluded that it is advisable that we continue to have the ability to offer our employees a stock ownership interest in the Company, which enhances employee interest in our continued success and progress. Reasons to Approve the Amendment Shareholder approval of the 2024 Plan is being sought in order to (i) satisfy the shareholder approval requirements of the Nasdaq listing standards for the increase in the number of shares available for issuance under the 2024 Plan by 500,000 shares, and (ii) obtain shareholder approval of the number of shares that may be subject to incentive stock options under Section 422 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”). The approval of the Amendment by our stockholders is important because the number of shares currently authorized for issuance under the 2024 Plan is not expected to be sufficient to meet our needs through the end of 2025. If our stockholders do not approve this proposal, then the Amendment will not become effective. The Board recommends a vote in favor of the Amendment because the Board believes the Amendment is in the best interests of the Company and our stockholders for the following reasons:

| • | Align executive, employee, and stockholder interests. We believe that our stock-based compensation programs, along with our stock ownership guidelines for our executives, help align the interests of our executives and employees with the interests of our stockholders by giving them a sense of ownership and long-term personal involvement in and accountability for our development and financial success. If the Amendment is approved, we will be able to continue to use equity to align the interests of our executives and employees with the interests of our stockholders. |

| • | Attract and retain talent. Talented, motivated, and effective executives and employees are essential to executing our business strategies and propelling our business forward. Stock-based compensation has been a critical component of our total compensation because this type of compensation enables the Company to effectively recruit and retain executives and other employees in a competitive market for talent while encouraging them to act and think like owners of the Company. If the Amendment is approved, we believe we will maintain our ability to offer competitive compensation packages to both retain our best performers and attract new talent. |

| • | Avoid disruption in