SEC Contract Filing

Filing Date: 2025-04-17

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>4
<FILENAME>ea023842401ex10-2_sunation.htm
<DESCRIPTION>SECURITY AGREEMENT, DATED APRIL 14, 2025
<TEXT>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: right">Exhibit 10.2</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: center">SECURITY AGREEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in">This Security Agreement
(this &ldquo;<U>Agreement</U>&rdquo;) is made on April 14, 2025 (&ldquo;<U>Effective Date</U>&rdquo;) by <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>SUNation
Energy, Inc.</B></FONT>, a Delaware corporation having an office located at 171 Remington Boulevard, Ronkonkoma, New York 11779 (&ldquo;<U>Debtor</U>&rdquo;)
in favor of <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>MBB Energy, LLC</B></FONT>, a New York limited liability company
having an office located at 40 Grassmere Avenue, Oakdale, New York 11769 ( &ldquo;<U>Secured Party</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: center"><U>RECITALS</U></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>WHEREAS</B></FONT>,
Secured Party has agreed to make advances and extend loans (the <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&ldquo;</B></FONT><U>Loans</U><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&rdquo;</B></FONT>)
to Debtor in an aggregate principal amount not to exceed sum of One Million ($1,000,000.00) Dollars in accordance with that certain line
of Secured Revolving Line of Credit Agreement between Debtor and Debtor of even date herewith (the &ldquo;<U>Credit Agreement</U>&rdquo;),
a copy of which is attached hereto as <U>Annex 1</U> and made a part hereof; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>WHEREAS</B></FONT>,
simultaneous with the execution of this Agreement, Debtor is executing and delivering to Secured Party that certain Secured Revolving
Line of Credit Note (the &ldquo;<U>Note</U>&rdquo;) of even date herewith, a copy of which is attached hereto as <U>Annex 2</U> and made
a part hereof; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>WHEREAS</B></FONT>,
to secure the rights of Secured Party pursuant to the Note and the Credit Facility Agreement, Debtor is granting Secured Party a first
priority lien and security interest in all of Debtor&rsquo;s assets and properties on the terms specified in this Agreement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>WHEREAS</B></FONT>,
the Loan Agreements are subject to the terms and conditions of that certain Subordination Agreement of even date herewith (the &ldquo;<U>Subordination
Agreement</U>&rdquo;) among Secured Party, the Priority Lender, and Debtor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">1. </FONT><U>Definitions</U><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in">1.1.&nbsp;Certain
capitalized terms used in this Agreement which are not defined herein shall have the meanings ascribed to them in the Credit Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in">1.2.&nbsp;&ldquo;<U>UCC</U>&rdquo;
means the Uniform Commercial Code of the State of Delaware or, when the laws of any other state govern the method or manner of the perfection
or enforcement of any security interest in any of the Collate