Company: TCMD
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001558370-25-003924
Chunk: 58

Company: TACTILE SYSTEMS TECHNOLOGY INC
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 58
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 date of such approval, will replace the Company’s 2016 Equity Incentive Plan (the “2016 Plan”), and no new awards will be made under the 2016 Plan. If the 2025 Plan is not approved by our stockholders, the 2016 Plan will otherwise remain in effect in accordance with its terms, but only until June 7, 2026, which is its scheduled termination date. In such event, and after such date, the Company will no longer be able to grant equity awards to its officers, employees, directors, and consultants, which would negatively impact the retention of such individuals and negatively affect the ability of the Company to adequately recruit, incentivize, and retain talent. As a result, and because the 2025 Plan includes a number of features that we believe are consistent with the interests of our stockholders and sound corporate governance practices, the Board of Directors recommends that our stockholders approve the 2025 Plan, the material terms of which are as described below. Key Features of the 2025 Plan The 2025 Plan includes a number of provisions that we believe promote and reflect compensation practices that closely align our equity compensation arrangements with the interests of our shareholders, including the following key features:

| ● | Removed “Evergreen” Provision. The 2025 Plan has a fixed number of shares reserved and available for grant. We eliminated the “evergreen” feature, which provided for an automatic annual increase in the share reserve.  Stockholder approval will be required to increase the share reserve going forward, allowing our stockholders to have direct input on our equity compensation program. |

| ● | No Liberal Share Recycling. Unlike the 2016 Plan, the 2025 Plan provides that we may not add back to the 2025 Plan’s share reserve shares that are delivered or withheld to pay the exercise price of an option award or to satisfy a tax withholding obligation in connection with any awards, shares that we repurchase using option exercise proceeds or shares subject to a stock appreciation right (“SAR”) award that are not issued in connection with the stock settlement of that award upon its exercise. |

| ● | No Repricing Without Stockholder Approval. The 2025 Plan prohibits, without stockholder approval, actions to reprice, replace, or repurchase options or SARs when the exercise price per share of an option or SAR exceeds the fair market value of the underlying shares. |

| ● | No Liberal Definition of “Change in Control.” No change in control would be triggered