X0306 4 2019-10-01 0 0001766400 Pennant Group, Inc. PNTG 0001437214 Nackel John G. C/O THE PENNANT GROUP, INC. 1675 EAST RIVERSIDE DRIVE, SUITE 150 EAGLE ID 83616 1 0 0 0 Common Stock 2019-10-01 4 A 0 40083 0.00 A 40083 D Common Stock 2019-10-01 4 A 0 2700 0.00 A 42783 I By Nackel Family Trust dated June 30, 1997 Common Stock 2019-10-01 4 A 0 2319 0.00 A 45102 D Stock Option (right to buy) 4.09 2019-10-01 4 A 0 57613 0.00 A 2019-10-01 2024-05-29 Common Stock 57613 57613 D Stock Option (right to buy) 15.09 2019-10-01 4 A 0 8000 0.00 A 2029-10-01 Common Stock 8000 8000 D Shares of common stock received in the October 1, 2019 pro rata distribution of shares of the Registrant by The Ensign Group, Inc. to its stockholders (the "Spin-off") and shares of Cornerstone Healthcare, Inc. converted into shares of the Registrant pursuant to the merger of Cornerstone Merger Sub, Inc., a wholly-owned subsidiary of the Registrant, with and into Cornerstone Healthcare, Inc., with Cornerstone Healthcare, Inc. as the surviving corporation, in connection with the Spin-off. These shares are held by the Nackel Family Trust dated June 30, 1997. Dr. Nackel and his spouse share voting and investment power over the trust. Shares of restricted stock granted on October 1, 2019 under The Pennant Group, Inc. 2019 Long Term Incentive Plan. Options assumed on October 1, 2019 by the Registrant under The Ensign Group, Inc. 2007 Omnibus Incentive Plan as a result of the Spin-off, all of which have vested. Options granted on October 1, 2019 under the The Pennant Group, Inc. 2019 Omnibus Incentive Plan. The options vest in three equal annual installments beginning on the first anniversary of the date of the grant. /s/ Derek J. Bunker, as attorney-in-fact 2019-10-03