Company: TCMD
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001558370-25-003924
Chunk: 62

Company: TACTILE SYSTEMS TECHNOLOGY INC
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 62
---
, refers to how fast a company uses the supply of shares authorized for issuance under its stock incentive plan. Our three-year average unadjusted burn rate for 2022-2024 was 2.4%, calculated by dividing the number of shares subject to awards granted during the period by the weighted average number of shares outstanding during the period. This burn rate is below industry and proxy advisor guidelines, indicating that our current share usage under equity awards is reasonable. Based on a review of our historical and projected grant practices, we believe that the shares reserved for grant under the 2025 Plan will meet the Company’s equity grant needs for approximately three years. The shares reserved may, however, last for a shorter or longer period of time depending on currently unknown factors, such as the number of grant recipients, future grant practices and the Company’s share price. Description of the 2025 Plan The major features of the 2025 Plan are summarized below. The summary is qualified in its entirety by reference to the full text of the 2025 Plan, which is attached to this proxy statement as Appendix A. Purpose. The purpose of the 2025 Plan is to attract, retain and motivate the best available service providers for positions of responsibility with the Company, to provide additional equity incentives to them that are intended to align their interests with those of the Company’s stockholders, and to thereby promote the Company’s long-term business success. Eligible Participants. Our employees, non-employee directors and certain consultants and advisors who provide services to us are eligible to receive awards under the 2025 Plan. Incentive stock options may be granted only to our employees. Administration of Plan. The Compensation and Organization Committee will administer the 2025 Plan, other than with respect to awards to our non-employee directors, which will be administered by the full Board of Directors. We refer to the Compensation and Organization Committee or the Board of Directors, as applicable, as the plan administrator in this section. Subject to the terms of the 2025 Plan, the plan administrator has the authority to, among other things, determine the persons to whom awards will be granted, the timing, type and number of shares covered by each award, and the terms and conditions of the awards. The plan administrator may also require or permit the deferral of the settlement of an award, establish and modify rules to administer the plan, interpret the plan and any related award agreement, cancel or suspend an award, accelerate the vesting of an award, and otherwise modify or amend the terms of outstanding