Company: EHSI
Filing Date: 2025-09-29
Form Type: DEF 14A
Source: 0001437749-25-030001
Chunk: 44

Company: Elite Health Systems Inc.
Filing Date: 2025-09-29
Form: DEF 14A
Chunk 44
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 award, to the extent vested, which may be prior to when the compensation actually or constructively is received. Also, if an award that is subject to Section 409A fails to comply with Section 409A’s provisions, Section 409A imposes an additional 20% federal income tax on compensation recognized as ordinary income, as well as interest on such deferred compensation.

AWARDS UNDER THE PLAN

Awards under the 2025 Plan will be made at the discretion of the Committee. For 2025, the Board has determined to make the following awards under the 2025 Plan, contingent on the approval by the stockholders:

| Group                   |     | Amount |         |
| Non-executive directors |     |        |  85,500 |
| Executive officers      |     |        | 200,000 |
| Other                   |     |        |  37,500 |
| Total                   |     |        | 323,000 |

VOTE REQUIRED; RECOMMENDATION OF THE COMPANY BOARD

This proposal will be approved if a quorum exists and the votes cast favoring this proposal exceed the votes cast opposing this proposal.

THE BOARD UNANIMOUSLY RECOMMENDS A VOTE FOR PROPOSAL THREE APPROVING THE COMPANY’S 2025 EQUITY INCENTIVE PLAN.

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PROPOSAL FOUR: TO APPROVE ACQUISITION OF PSS BY ISSUING 3,158,000 SHARES OF THE COMPANY’S COMMON STOCK PURSUANT TO THE TERMS OF THE ACQUISITION AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDERS OF PSS

THE ACQUISITION</div>

This section of this proxy statement entitled“The Acquisition”which describes the material aspects of the Acquisition, including the Acquisition Agreement. While Elite believes that this description covers the material terms of the Acquisition and the Acquisition Agreement, which is attached as Annex A to this proxy statement, and the other documents to which Elite has referred to or incorporated by reference herein. For a more detailed description of where you can find those documents, please see the section of this proxy statement entitled“Where You Can Find More Information”.

BACKGROUND OF THE ACQUISITION

In an effort to enhance stockholder value, the Company’s Board and management regularly review and discuss Elite’s near and long-term operating and strategic priorities. Among other things, these reviews and discussions focus on the opportunities and risks associated with the Company’s financial condition and potential long-term strategic options.

In the