Company: SUNE
Filing Date: 2025-11-12
Form Type: PRE 14A
Source: 0001140361-25-041549
Chunk: 40

Company: SUNation Energy, Inc.
Filing Date: 2025-11-12
Form: PRE 14A
Chunk 40
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| • | Equity awards incentivize the achievement of key business objectives and increases in shareholder value.We believe that equity awards will continue to be critical to our success and that they play an important role in incentivizing employees across our company to achieve our key business objectives and drive increases in shareholder value. |

| • | The 2022 Equity Incentive Plan provides necessary flexibility to the Board.Specifically, the 2022 Equity Incentive Plan provides for the grant of non-qualified and incentive stock options, full value awards, and other stock-based incentive awards. The flexibility inherent in the plan permits the Board to change the type, terms and conditions of awards as circumstances may change. We believe that this flexibility and the resulting ability to more affirmatively adjust the nature and amounts of executive compensation are particularly important for a public company such as ours, given the volatility of the public markets and reactions to economic and world events. Equity compensation, which aligns the long-term interests of both executives and our shareholders, is an important tool for the Compensation Committee which without the shareholder approval of the Plan Amendments will not be available to our Compensation Committee in any meaningful way. |

In increasing the number of shares available for issuance under the 2022 Equity Incentive Plan to 1,000,067 shares pursuant to the Plan Amendments, we considered our estimated competitive usage needs going forward for existing employees and potential new hires for the next calendar year, with such timing dependent on a variety of factors, including the price of our shares and hiring activity during the next year, forfeitures of outstanding awards, and noting that future circumstances may require us to change our current equity grant practices. Adding the evergreen provision of up to 5% of the outstanding common stock annually will provide us with a sufficient number of shares for the operation of our compensation program on an annual basis thereafter. Based on these considerations, a total of 1,000,067 shares are being proposed to be made available for issuance under the 2022 Equity Incentive Plan immediately along with annual increases to the share reserve pursuant to the annual share increase in an amount of up to 5% of our outstanding common stock beginning on the first trading day of calendar year 2027 through and including the first trading day of calendar year 2032. As of September 30, 2025, our dilution (calculated as the number of shares available for grant under the 2022 Equity Incentive Plan divided by the total number of fully diluted shares outstanding) was approximately