X0306 4 2019-10-01 0 0001766400 Pennant Group, Inc. PNTG 0001777342 Gochnour John J C/O THE PENNANT GROUP, INC. 1675 EAST RIVERSIDE DRIVE, SUITE 150 EAGLE ID 83616 0 1 0 0 Chief Operating Officer Common Stock 2019-10-01 4 A 0 32750 0.00 A 32750 D Stock Option (right to buy) 3.36 2019-10-01 4 A 0 34568 0.00 A 2019-10-01 2024-02-07 Common Stock 34568 34568 D Stock Option (right to buy) 5.31 2019-10-01 4 A 0 15715 0.00 A 2019-10-01 2024-08-05 Common Stock 15715 15715 D Stock Option (right to buy) 7.42 2019-10-01 4 A 0 6286 0.00 A 2025-05-27 Common Stock 6286 6286 D Stock Option (right to buy) 6.10 2019-10-01 4 A 0 12572 0.00 A 2026-10-26 Common Stock 12572 12572 D Stock Option (right to buy) 3.84 2019-10-01 4 A 0 8926 0.00 A 2026-05-26 Common Stock 8926 8926 D Stock Option (right to buy) 4.54 2019-10-01 4 A 0 8926 0.00 A 2027-05-25 Common Stock 8926 8926 D Stock Option (right to buy) 6.16 2019-10-01 4 A 0 17853 0.00 A 2028-05-31 Common Stock 17853 17853 D Stock Option (right to buy) 15.09 2019-10-01 4 A 0 77000 0.00 A 2029-10-01 Common Stock 77000 77000 D Shares of common stock received in the October 1, 2019 pro rata distribution of shares of The Pennant Group, Inc. (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. 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. The options have vested. 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. The options have vested. 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. 5,029 of these options have vested. 1,257 of these options will vest on May 27, 2020. 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. 5,030 of these options have vested. 2,514 of these options will vest on October 26, 2019, 2,514 of these options will vest on October 26, 2020 and 2,514 of these options will vest on October 26, 2021. Options assumed on October 1, 2019 by the Registrant under the Cornerstone Healthcare, Inc. 2016 Omnibus Incentive Plan. 5,356 of these options have vested. 1,785 will vest on May 26, 2020 and 1,785 will vest on May 26, 2021. Options assumed on October 1, 2019 by the Registrant under the Cornerstone Healthcare, Inc. 2016 Omnibus Incentive Plan. 3,571 of these options have vested. 1,785 will vest on May 25, 2020, 1,785 will vest on May 25, 2021 and 1,785 will vest on May 25, 2022. Options assumed on October 1, 2019 by the Registrant under the Cornerstone Healthcare, Inc. 2016 Omnibus Incentive Plan. 3,571 of these options have vested. 3,571 will vest on May 31, 2020, 3,571 will vest on May 31, 2021, 3,570 will vest on May 31, 2022 and 3,570 will vest on May 31, 2023. Options granted on October 1, 2019 under The Pennant Group, Inc. 2019 Omnibus Incentive Plan. The options vest in five 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