Company: EHC
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000785161-25-000013
Chunk: 28

Company: Encompass Health Corp
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 28
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 two consecutive plan years performance units or cash awards with an aggregate value in excess of $10,000,000 and $15,000,000, respectively. These limitations apply separately to each type of award. For example, an individual may be granted 1,000,000 options and 1,000,000 SARs during the same two-year period.

Non-Employee Director Compensation Limits . The maximum value of the equity awards granted to any non-employee director in any plan year shall not exceed $500,000. The maximum aggregate amount of the cash awards, including retainer and other fees, granted to any non-employee director in any plan year also shall not exceed $500,000. Accordingly, the aggregate value of all awards granted to a non-employee director in any plan year shall not exceed $1,000,000; provided, however, these limits will not apply to any compensation resulting from non-preferential dividends or dividend equivalents associated with outstanding equity awards.

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Limitations on Transfer. No award will be assignable or transferable by a participant other than by will or the laws of descent and distribution or, if certain conditions are met, pursuant to a qualified domestic relations order; provided, however, that the Committee may (but need not) permit other transfers where the Committee concludes that such transferability does not result in accelerated taxation, does not cause any option intended to be an incentive stock option to fail to qualify as such, and is otherwise appropriate and desirable. No award may be transferred for value.

Acceleration upon Certain Events. Unless otherwise provided in an award agreement, if a participant is terminated by the Company without “cause” or by the participant for “good reason” (as such terms are defined in the 2025 Plan) within 24 months after a change in control of the Company or if the surviving company following a change in control does not assume existing awards or substitute equivalent awards, all outstanding options and SARs will become fully vested and exercisable and all restrictions on other outstanding awards will lapse. In the event of a change in control, the Committee also may (but need not) waive or modify the achievement of any performance goals tied to awards. Unless otherwise provided in the related award agreement, in the event of death or disability, a participant’s awards vest immediately and performance goals may, in the Committee’s discretion, be waived or modified. In the event of retirement, a participant’s awards generally vest on a pro rata basis for the completed portion of the