Company: SNWV
Filing Date: 2025-07-10
Form Type: DEF 14A
Source: 0001140361-25-025486
Chunk: 34

Company: SANUWAVE Health, Inc.
Filing Date: 2025-07-10
Form: DEF 14A
Chunk 34
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 the time the option or SAR was granted. RSUs are subject to Section 409A unless they are settled within two and one half months after the end of the later of (a) the end of our fiscal year in which vesting occurs or (b) the end of the calendar year in which vesting occurs. Restricted stock awards are not generally subject to Section 409A. If an award is subject to Section 409A and the provisions for the exercise or settlement of that award do not comply with Section 409A, then the participant would be required to recognize ordinary income whenever a portion of the award vested (regardless of whether it had been exercised or settled). This amount would also be subject to a 20% U.S. federal tax in addition tothe U.S. federal income tax at the participant’s usual marginal rate for ordinary income. Tax Treatment of the Company We will generally be entitled to an income tax deduction at the time and to the extent a participant recognizes ordinary income as a result of an award granted under the 2024 Plan. However, Section 162(m) of the Code denies a deduction for compensation paid to certain covered individuals to the extent that compensation to the covered individual exceeds $1,000,000 in a taxable year. Although the Plan Administrator considers the deductibility of compensation as one factor in determining executive compensation, the Plan Administrator retains the discretion to award and pay compensation that is not deductible as it believes that it is in the stockholder’ best interests to maintain flexibility in the approach to executive compensation and to structure a program that we consider to be the most effective in attracting, motivating, and retaining key employees. Plan Benefits Except as described below, grants of awards under the 2024 Plan to our executive officers, non-executive directors, and other eligible participants are subject to the discretion of the Plan Administrator. Because the Plan Administrator, in its discretion, will select the participants who receive awards and the timing, size, and types of those awards, we cannot currently determine the future awards that will be made to particular individuals or groups under the 2024 Plan. Under our current director compensation program, each of our non-employee directors receives a quarterly award of fully vested stock options with an aggregate grant date fair value equal to $20,000. For more information about our current director compensation program, see “Director Compensation Table for Fiscal Year 2024” on page 31of this proxy statement. In addition, information on equity awards granted in recent years to our named executive officers is available in