Company: TCMD
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001558370-25-003924
Chunk: 68

Company: TACTILE SYSTEMS TECHNOLOGY INC
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 68
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 SARs, and (iv) any maximum limitations prescribed by the 2025 Plan as to grants of certain types of awards. The administrator may also make similar adjustments in the event of any other change in our company's capitalization, including a merger, consolidation, reorganization or liquidation. Term, Amendment and Termination. The 2025 Plan will remain in effect until all shares subject to it are distributed, all awards have expired or terminated, the tenth anniversary of the effective date of the 2025 Plan, or until terminated by our board of directors, whichever occurs first. The Board of Directors may terminate, suspend or amend the plan at any time, but, in general, no termination, suspension or amendment may materially impair the rights of any participant with respect to outstanding awards without the participant's consent, unless such action is necessary to comply with

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| 2025 Proxy Statement | 69 |

applicable law or stock exchange rules. Awards that are outstanding on the 2025 Plan's termination date will remain in effect in accordance with the terms of the plan and the applicable award agreements. Stockholder approval of any amendment of the 2025 Plan will be obtained if required by applicable law or the rules of the applicable stock exchange. U.S. Federal Income Tax Consequences The following is a general summary of the principal United States federal income tax consequences to the Company and to participants subject to U.S. taxation with respect to awards granted under the 2025 Plan, based on current statutes, regulations and interpretations. The applicable statutory and regulatory provisions are also subject to change, as are their interpretations and applications, which may vary in individual circumstances. This summary is general in nature and not intended as tax advice to participants, who should consult their own tax advisors. Income tax consequences under applicable state and local tax laws may not be the same as under federal income tax laws. Non-Qualified Stock Options. If a participant is granted a non-qualified option under the 2025 Plan, the participant will not recognize taxable income upon the grant of the option. Generally, the participant will recognize ordinary income at the time of exercise in an amount equal to the difference between the fair market value of the shares acquired at the time of exercise and the exercise price paid. The participant’s basis in the common stock for purposes of determining gain or loss on a subsequent sale or disposition of such shares generally will be the fair market value of our common stock on the date the option was exercised. Any subsequent gain or loss will