Company: TCMD
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001558370-25-003924
Chunk: 59

Company: TACTILE SYSTEMS TECHNOLOGY INC
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 59
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 by stockholder approval of a business combination transaction, the announcement or commencement of a tender offer or any board assessment that a change in control may be imminent. |

| ● | “Double Trigger” Acceleration Upon a Change in Control. The 2025 Plan provides for vesting of time-based equity awards or performance-based equity awards based on both (1) the occurrence of a change in control |

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| 2025 Proxy Statement | 63 |

| and (2) an involuntary termination of service without cause within 12 months after the change in control (other than in the event awards are not continued, assumed, or replaced in connection with a corporate transaction, in which case they will accelerate upon the change in control). |

| ● | Limits on Dividends and Dividend Equivalents. The 2025 Plan prohibits the payment of dividends and dividend equivalents on stock options and SARs, and requires that any dividends and dividend equivalents payable or credited on unvested awards other than options and SARs (“full value awards”) must be subject to the same restrictions and risk of forfeiture as the underlying shares or share equivalents. |

| ● | Annual Limit on Compensation to Non-Employee Directors. The 2025 Plan contains an annual limit on the aggregate fair value of all awards granted during a calendar year to any non-employee director. |

| ● | No Discounted Option or SAR grants. The 2025 Plan requires that the exercise price of options or SARs be at least equal to the fair market value of our common stock on the date of grant (except in the limited case of “substitute awards” as described below). |

| ● | No Tax Gross-Ups. The 2025 Plan does not provide for any tax gross-ups. |

Basis for Requested Share Reserve Long-term equity-based incentives play a critical role in our executive compensation program, motivating executives to make decisions that focus on long-term stockholder value creation, aligning executives’ interests with the interests of stockholders, providing additional incentives, and serving to attract and retain talented people for positions of responsibility with the Company. We consider our ability to continue to promote our long-term business success and provide competitive levels of equity-based compensation to be of utmost importance to our business. The Board of Directors believes that it is in the best interests of our stockholders to adopt a new equity compensation plan and ensure sufficient shares for continued equity-based compensation. Key reasons the Board believes the 2025 Plan should be approved include:

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