Company: EHC
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000785161-25-000013
Chunk: 24

Company: Encompass Health Corp
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 24
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 options or stock appreciation rights, or SARs, without the approval of stockholders, except in connection with a corporate transaction involving the Company. This prohibition applies to lowering the exercise price of stock options or SARs, canceling and granting replacement stock options or SARs with a lower exercise price and the repurchase of underwater stock options or SARs for cash.

No discount stock option or SARs : The exercise price of all stock options or SARs must be equal to or greater than the fair market value of our common stock on the date of grant.

Minimum vesting periods : No awards, or portions thereof, may provide for a vesting period of less than one year, except for awards related to 5% of the common stock reserved for issuance under the 2025 Plan.

No dividends payable on awards prior to vesting: Dividends or dividend equivalents may accrue on unvested awards, other than options and SARs, but no payment of dividends or dividend equivalents related to an award will be made until the award vests.

No liberal share counting for options or SARs : The 2025 Plan prohibits the reuse of shares underlying stock options tendered as full or partial payment upon exercise of a stock option or the reuse of shares not issued in settlement of a SAR. In addition, shares withheld to satisfy tax withholding upon exercise of stock options or SARs may not be reused.

Awards are subject to clawback : Awards granted are subject to our compensation recoupment policy. See “Compensation Recoupment Policy” on page 53 for additional discussion.

No award transferability for value : The 2025 Plan prohibits the transfer of awards to a third party for cash or other value, except pursuant to a qualified domestic relations order.

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Non-employee director compensation limits : The 2025 Plan provides for annual limits to cash and equity grants to non-employee directors.

Double-trigger change in control provision : Participants must experience an involuntary termination of employment for an award to vest as a result of a change in control.

No evergreen : The 2025 Plan does not provide for “evergreen” share increases or automatic “reload” awards.

Administered by an independent committee : The 2025 Plan is administered by a committee comprised entirely of independent, non-employee directors.

#### Summary of the 2025 Plan
Purpose. The purpose of the 2025 Plan is to promote the Company’s success and enhance the value of the Company by linking the personal interests of