Document:

ex10_1.htm

     

    Exhibit 10.1

     

    EMPLOYMENT
AGREEMENT

     

    EMPLOYMENT
AGREEMENT, dated as of November 12, 2008, by and between GENTIVA HEALTH
SERVICES, INC., a Delaware corporation (the “Company”), and RONALD A. MALONE
(“Executive”).

     

    WITNESSETH:

     

    WHEREAS,
the Company desires that Executive continue to serve as Chairman and Chief
Executive Officer of the Company as set forth herein and Executive is willing to
continue to serve in those capacities;

     

    WHEREAS,
the Company and Executive wish to enter into a new agreement embodying the terms
of his continued employment (the “Agreement”); and

     

    NOW,
THEREFORE, in consideration of the mutual covenants herein contained, the
Company and Executive hereby agree as follows:

     

    1. Employment.  Upon
the terms and subject to the conditions of this Agreement, the Company hereby
agrees to employ Executive and Executive hereby agrees to his employment by the
Company until December 31, 2009 unless this Agreement is sooner terminated
as set forth herein.  The period during which Executive is employed
pursuant to this Agreement shall be referred to as the “Employment
Period.”

     

    2. Position and
Duties.

     

    (a) Position.  During
the Employment Period, Executive shall serve as Chairman and Chief Executive
Officer of the Company and shall be nominated for election, and if so elected,
shall serve as a member of the Board of Directors of the Company (the “Board”);
provided,
however, that the Company, in its sole discretion, may direct that
Executive will, at any time after December 31, 2008, serve only as Chairman
of the Company for the remainder of the Employment Period on the terms, and
subject to the conditions, set forth herein.  In addition, Executive
shall serve in such other position or positions with the Company and its
subsidiaries commensurate with his position and experience, as the Board shall
from time to time specify.  Executive acknowledges that the nature of
his duties shall require reasonable domestic travel from time to
time.

     

    (b) Duties.  During
the portion of the Employment Period during which he is serving as Chairman and
Chief Executive Officer of the Company, Executive shall have the duties,
responsibilities and obligations customarily assigned to individuals serving as
the chairman and chief executive officer of comparable
companies.  During the portion of the Employment Period, if any,
during which he is serving only as Chairman of the Company, Executive shall have
the duties, responsibilities and obligations assigned to him by the Board; provided, however,
that no such duties, responsibilities or obligations shall be inconsistent with
his status as Chairman of the Company.  During the Employment Period,
Executive shall have such other duties, responsibilities and obligations as the
Board shall from time to time specify.  Executive shall devote his
full time to the services required of him hereunder, except for vacation time
and reasonable periods of absence due to sickness, personal injury or other
disability, and shall use his best efforts, judgment, skill and energy to
perform such services in a manner consonant with

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    the
duties of his position and to improve and advance the business and interests of
the Company and its subsidiaries; provided however,
that during any portion of the Employment Period during which Executive is
serving only as Chairman of the Company, he shall devote substantially all of
his time to the services hereunder (except for vacation time and reasonable
periods of absence due to sickness, personal injury or other disability), and,
in all events, Executive shall devote such time to the services hereunder as
reasonably requested by the Company.  Nothing contained in this
Section 2 shall preclude Executive from (i) serving on the board of directors of
any business corporation, unless such service would be contrary to applicable
law, with prior approval from the Board, (ii) serving on the board of, or
working for, any charitable or community organization, or (iii) pursuing his
personal financial and legal affairs, so long as such activities, individually
or collectively, do not interfere with the performance of Executive’s duties
hereunder or violate any of the provisions of Section 6 hereof.

     

    3. Compensation.

     

    (a) Base
Salary.  During the Employment Period the Company shall pay
Executive a base salary at the annual rate of $750,000 per annum.  The
annual base salary payable under this Section shall be reduced, however, to the
extent Executive elects to defer such salary under the terms of any deferred
compensation or savings plan or arrangement maintained or established by the
Company or any other arrangement acceptable to the Company.  The Board
(or the appropriate committee of the Board) shall annually review Executive’s
base salary in light of competitive practices, the base salaries paid to other
executive officers of the Company and the performance of Executive and the
Company, and may, in its discretion, increase such base salary by an amount it
determines to be appropriate.  Any such increase shall not reduce or
limit any other obligation of the Company hereunder.  Executive’s base
salary (as set forth or as may be increased from time to time) shall not be
reduced, except that Executive’s base salary may be reduced in proportion to
comparable reductions in the base salaries of the Company’s executive officers
(as determined for purposes of Section 16(b) of the Securities Exchange Act of
1934, as amended).  Executive’s annual base salary payable hereunder,
as it may be increased (or reduced as set forth above) from time to time and
without reduction for any amounts deferred as described above is referrer to
herein as “Base Salary.”  The Company shall pay Executive the portion
of his Base Salary not deferred in accordance with the Company’s payroll
practices applicable to its other executive officers.

     

    (b) Annual
Bonus.  For each fiscal year ending during the Employment
Period, Executive shall have the opportunity to receive an annual bonus (“Annual
Target Bonus Opportunity”), based on the achievement of target levels of
performance, equal to 100% of his Base Salary, so long as Executive is employed
on the last day of the fiscal year.  Depending on actual results as
measured against the performance objectives established, Executive’s actual
bonus payment may range from zero to a maximum of 150% (or such other greater
amount as determined by the Board or a committee thereof) of Executive’s Base
Salary for each full fiscal year during the Employment Period; provided, however,
that, so long as Executive remains employed through December 31, 2009,
Executive’s annual bonus for 2009 will not be less than 75% of his Base Salary
for 2009.

     

    The
actual bonus, if any, payable for any such year shall be determined in
accordance with the terms of the Company’s Executive Officers’ Bonus Plan (the
“Annual Plan”) or any successor plan, based upon the performance of the Company
and/or Executive against target

     

    
      
         

      

      
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    objectives
established under such Annual Plan.  The determination of whether and
to what extent the requisite performance objectives have been met shall be made
by the Board or the Board committee responsible for administering the Annual
Plan, whose determination shall be final.  Subject to Executive’s
election to defer all or a portion of any annual bonus payable hereunder
pursuant to the terms of any deferred compensation or savings plan or
arrangement maintained or established by the Company, any annual bonus payable
under this Section 3(b) shall be paid to Executive in accordance with the terms
of the Annual Plan; provided, however, any portion
of Executive’s annual bonus which would not be deductible to the Company
pursuant to the provisions of Section 162(m) of the Internal Revenue Code of
1986, as amended (the “Code”), shall be deferred; provided further,
however, that Executive’s annual bonus for 2009 shall be paid to him in a
single lump sum, subject to Section 10(o) below, on March 17,
2010.  Any portion of Executive’s annual bonus which is deferred in
accordance with this Section 3 because it would otherwise not be deductible due
to Section 162(m) of the Code shall be paid to Executive in a single lump sum,
subject to Section 10(o) below, ten (10) days following Executive’s
“separation from service” (as defined in Treas. Reg. § 1.409A-1(h)) with
the Company for any reason and shall be credited with interest, on a compounded
basis, on the last day of each calendar quarter, at 1% above the prime rate (as
reported in The Wall Street Journal, Eastern Edition), as in effect on the first
day of each such calendar quarter.

     

    4. Benefits, Perquisites and
Expenses.

     

    (a) Benefits.  During
the Employment Period, Executive shall be eligible to participate in (i) each
welfare benefit plan sponsored or maintained by the Company (other than, except
for severance benefits set forth in Section 5 below, severance plans),
including, without limitation, each group life, hospitalization, medical,
dental, health, accident or disability insurance or similar plan or program of
the Company, and (ii) each pension, retirement, deferred compensation, savings
or employee stock purchase plan sponsored or maintained by the Company, and
(iii) to the extent of any awards made from time to time by the Board committee
administering the plan, each stock option, restricted stock, stock bonus or
similar equity-based compensation plan sponsored or maintained by the Company,
in each case, whether now existing or established hereafter, and (iv) any other
plans sponsored or maintained by the Company in which other executive officers
are eligible to participate, to the extent that Executive is eligible to
participate in any such plan under the generally applicable provisions
thereof.  Nothing in this Section 4(a) shall limit the Company’s right
to amend or terminate any such plan in accordance with the procedures set forth
therein.

     

    (b) Perquisites.  During
the Employment Period, Executive shall be entitled to at least four weeks’ paid
vacation annually and shall also be entitled to receive such perquisites as are
generally provided to other executive officers of the Company in accordance with
the then current policies and practices of the Company.

     

    (c) Business
Expenses.  During the Employment Period, the Company shall pay
or reimburse Executive for all reasonable expenses incurred or paid by Executive
in the performance of Executive’s duties hereunder, upon presentation of expense
statements or vouchers and such other information as the Company may require and
in accordance with the generally applicable policies and procedures of the
Company.

     

    
      
         

      

      
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    (d) Indemnification.  The
Company shall defend Executive, indemnify Executive and hold Executive harmless
from and against any claim, loss or cause of action arising from or out of
Executive’s good faith performance as an officer, director or employee of the
Company or any of its subsidiaries or in any other capacity, including any
fiduciary capacity, in which Executive serves at the request of the Company to
the maximum extent permitted by applicable law and the Company’s Restated
Certificate of Incorporation and By-Laws.  Such obligations shall
include payment of all fees, costs and expenses, including attorney’s fees,
incurred as a result of such claim, loss or cause of action.  The
Company shall also maintain D&O insurance for the benefit of Executive with
the same coverage, limits, terms and conditions as maintained for other
directors and officers of the Company from time to time, and such coverage shall
remain in effect for a period of six years following the end of the Employment
Period.

     

    5. Termination of
Employment.

     

    (a) Early Termination of the
Employment Period.  Notwithstanding Section 1, the Employment
Period shall end upon the earliest to occur of (i) a termination of Executive’s
employment on account of Executive’s death, (ii) a termination due to
Executive’s Disability, (iii) Termination for Cause, (iv) a Termination Without
Cause, (v) a Termination for Good Reason, or (vi) a Termination Not for Good
Reason.

     

    (b) Benefits Payable Upon Early
Termination.  Following the end of the Employment Period
pursuant to Section 5(a), Executive (or, in the event of his death, his
surviving spouse, if any, or his estate) shall be paid the type or types of
compensation determined to be payable in accordance with the following table at
the times established pursuant to Section 5(c):

     

    
      	 
      	
              
                 

                Earned
      Salary

                 

              

            	
              
                 

                Vested
      Benefits

              

            	
              
                Severance

                Benefits

              

            	
              
                Additional

                Benefits

              

            
	
              Termination
      due

              to
      death

            	
              Payable

            	
              Payable

            	
              Not
      payable

            	
              Available

            
	
              Termination
      due

              to
      Disability

            	
              Payable

            	
              Payable

            	
              Not
      payable

            	
              Available

            
	
              Termination
      for

              Cause

            	
              Payable

            	
              Payable

            	
              Not
      payable

            	
              Not
      available

            
	
              Termination
      for

              Good
      Reason

            	
              Payable

            	
              Payable

            	
              Payable

            	
              Available

            
	
              Termination

              Without
      Cause

            	
              Payable

            	
              Payable

            	
              Payable

            	
              Available

            
	
              Termination
      Not for Good Reason

            	
              Payable

            	
              Payable

            	
              Not
      payable

            	
              Not
      Available

            

    

     

    In the
event that his employment terminates due to death, his widow will receive six
months’ Base Salary to be paid in a lump sum 10 days following the end of his
Employment Period.

     

    
      
         

      

      
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    (c) Timing of
Payments.  Earned Salary (as defined below) shall be paid in
cash in a single lump sum 10 days following the end of the Employment
Period.  Vested Benefits shall be payable in accordance with the terms
of the plan, policy, practice, program, contract or agreement under which such
benefits have been awarded or accrued.  Severance Benefits shall be
paid, subject to Section 10(o) below, (i) in the case of amounts other than
those set forth in clauses (i)(C), (i)(D), (ii)(B) and (ii)(C) of the definition
thereof, in a single lump sum cash payment sixty (60) days after the Executive’s
termination, (ii) in the case of amounts set forth in clauses (i)(C) and (ii)(B)
of the definition thereof, an estimate of such amounts shall be made by the
Company at the time of termination of employment and such estimate shall be paid
sixty (60) days after such termination of employment, and the actual amount
shall be determined at the time annual bonuses are determined for other
participants under the Annual Plan and any additional amount payable to
Executive shall be paid no later than March 15 of the year following
termination of employment and any excess amount paid to Executive over the
actual amount owing shall be paid by Executive to the Company no later than
March 15 of the year following termination of employment, and (iii) in
the case of amounts set forth in clauses (i)(D) and (ii)(C) of the definition
thereof, such amount shall be paid in fifteen (15) equal monthly installments of
$15,000 each, the first two of which shall, subject to Section 10(o) below,
be paid on the second monthly anniversary of the date of termination of
employment, and each of the next thirteen of such installments shall be paid
monthly commencing on the third monthly anniversary of the date of termination
of employment and continuing on each of the following twelve monthly
anniversaries thereof.  Additional Benefits shall be provided or made
available at the times specified below as to each such Additional
Benefit.

     

    (d) Definitions.  For
purposes of Sections 5 and 6, capitalized terms have the following
meanings:

     

    “Additional
Benefits” means, if Executive’s employment terminates due to death or in a
Termination due to Disability, the benefits described in subclauses (i), (iv)
and (v) below, or if the Executive’s employment is terminated in a Termination
Without Cause or a Termination for Good Reason, the benefits described in
subclauses (i), (ii), (iii) and (iv) below:

     

    (i)           All
of the Executive’s benefits accrued under any pension, retirement, savings and
deferred compensation plans of the Company shall become vested in full; provided, however, that to the
extent such accelerated vesting of benefits cannot be provided under one or more
of such plans consistent with applicable provisions of the Code, such benefits
shall be paid to Executive outside the applicable plan in a lump sum, subject to
Section 10(o) below, sixty (60) days after the date of termination of
employment; provided,
further, however, that, to the extent any such unvested benefit
constitutes deferred compensation for purposes of Section 409A of the Code, the
payment of such deferred compensation shall instead be made at the time it was
otherwise scheduled to be paid under the applicable plan;

     

    (ii)           Executive
(and, to the extent applicable, his dependents) will be entitled to continue
participation in all of the Company’s medical, dental and vision care plans (the
“Health Benefit Plans”), until the 24-month anniversary of the end of the
Employment Period; provided that Executive’s
participation in the Company’s Health Benefit Plans shall cease on any earlier
date that Executive be-

     

    
      
         

      

      
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    comes
eligible for substantially similar benefits from a subsequent
employer.  Executive’s participation in the Health Benefit Plans will
be on the same terms and conditions (including, without limitation, any
contributions that would have been required from Executive) that would have
applied had Executive continued to be employed by the Company.  To the
extent any such benefits cannot be provided under the terms of the applicable
plan, policy or program, the Company shall provide a comparable benefit under
another plan or from the Company’s general assets.  So long as
Executive has not become eligible for substantially similar health benefit
coverage from a subsequent employer, for the period beginning on the 24-month
anniversary of the end of Employment Period and ending on the earlier of the
date Executive is eligible for substantially similar health benefit coverage
from a subsequent employer or the date he becomes eligible for Medicare, the
Company will reimburse Executive’s premium cost for health benefit plan coverage
(to the extent such coverage is substantially similar to the coverage provided
from time to time under the Health Benefit Plans of the Company for senior
executives of the Company) up to a monthly amount equal to the sum of (i) the
monthly contribution the Company would have made toward the premium cost of such
coverage had Executive remained covered under the Company’s Health Benefit
Plans, and (ii) $417, and such reimbursement shall be made within thirty (30)
business days following presentment to the Company by Executive of a receipt for
such payment of such premiums by him;

     

    (iii)           In
the case of any options to purchase Company stock or other equity-based awards
granted to Executive by the Company, notwithstanding any provision in the
applicable award agreements to the contrary, such stock options or awards shall
become vested in full at the time of termination of Executive’s employment, and
any such stock options may be exercised until December 31, 2011 (but not beyond
the original full term of the option), and in the event Executive cannot
exercise any such stock options during a period of time after December 31, 2009
because such an exercise would violate an applicable federal, state, local or
foreign law, such stock options may be exercised until March 31, 2012 (but not
beyond the original full term of the option);

     

    (iv)           The
amount, if any, of Executive’s annual bonus earned, but unpaid, in accordance
with the terms of the Annual Plan for the calendar year immediately preceding
the year of termination of employment shall be paid, subject to Section 10(o)
below, to Executive on the date such annual bonus is paid to other participants
for such year in accordance with the terms of the Annual Plan; and

     

    (v)           An
amount equal to Executive’s Annual Target Bonus Opportunity for the year
of  Termination due to death or Termination due to Disability prorated
on a daily basis through the date of termination of employment, paid, subject to
Section 10(o) below, in a single lump sum cash payment sixty (60) days
after Executive’s Termination due to death or Termination due to Disability, as
the case may be.

     

    
      
         

      

      
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    “Disability”
means long-term disability within the meaning of the Company’s long-term
disability plan or program, or, in the absence of such a plan or program, as
defined in Section 22 of the Code.

     

    “Earned
Salary” means any Base Salary earned, but unpaid, for services rendered to the
Company on or prior to the date on which the Employment Period ends pursuant to
Section 5(a) (other than Base Salary deferred pursuant to Executive’s election,
as provided in Section 3(a) of (b) hereof).

     

    “Severance
Benefits” means an amount equal to (i) in the case of termination of the
Executive’s employment prior to January 1, 2009, the sum of (A) Executive’s
Base Salary from the end of the Employment Period through December 31,
2008, (B) two times Executive’s Base Salary (and no bonus for 2009 shall be
payable), (C) the amount of Executive’s annual bonus earned in accordance
with the terms of the Annual Plan for calendar year 2008 (but without any
requirement that he remain employed through the end of the year or the payment
date), which annual bonus shall not be less than 75% of his Base Salary for
2008, and (D) amount equal to $225,000, and (ii) if Executive’s
termination of employment occurs during calendar year 2009, the sum of
(A) the Executive’s Base Salary from the end of the Employment Period
through December 31, 2009, (B) the amount of Executive’s annual bonus
earned in accordance with the terms of the Annual Plan for calendar year 2009
(but without any requirement that he remain employed through the end of the year
or the payment date), which annual bonus shall not be less than 75% of his Base
Salary for 2009, and (C) amount equal to $225,000; provided, however, that
Severance Benefits and Additional Benefits shall not be payable under this
Agreement to the Executive if the termination of Executive’s employment results
in the payment of severance benefits under Executive’s Change in Control
Agreement with the Company dated of even date herewith.

     

    “Termination
for Cause” means a termination of Executive’s employment by the Company due to
(i) Executive’s conviction of a felony, or (ii) any act of willful fraud,
dishonesty or moral turpitude.

     

    “Termination
for Good Reason” means a termination of Executive’s employment by Executive
prior to December 31, 2009, within 90 days following, without Executive’s
written consent and subject to the timely notice requirement and the Company’s
opportunity to cure set forth below, (A) a change in Executive’s titles from
those described in Section 2 hereof (other than in connection with Executive
ceasing to serve as Chief Executive Officer of the Company and continuing as
Chairman, as set forth in Section 2 above), (B) the removal of Executive
from, or the failure to re-elect Executive as a member of, the Board, (C) a
reduction in Executive’s annual Base Salary (other than any reduction therein
which is in proportion to reductions in the base salaries of all of the
Company’s executive officers, as contemplated by Section 3(a) hereof, unless,
however, such proportionate reduction exceeds 20% of Executive’s Base Salary),
(D) the assignment by the Company to Executive of duties and
responsibilities that are materially inconsistent with his position as Chairman
and Chief Executive Officer of the Company or Chairman of the Company, as the
case may be (it being understood by the parties hereto that a material
diminution in Executive’s position, duties or responsibilities shall not
constitute “Good Reason” hereunder), (E) a material breach by the Company of any
other provision

     

    
      
         

      

      
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    of this
Agreement, or (F) a failure by the Company to obtain the assumption of the
obligations contained in this Agreement by any successor as contemplated in
Section 10(d) below.  It shall be a condition precedent to Executive’s
right to terminate employment for Good Reason that (i) Executive shall first
have given the Company written notice that an event or condition constituting
Good Reason has occurred and specifying in reasonable detail the circumstances
constituting such Good Reason within thirty (30) days after such occurrence, and
(ii) a period of thirty (30) days from and after the giving of such written
notice shall have elapsed without the Company having effectively cured or
remedied such occurrence during such 30-day period.

     

    “Termination
Not for Good Reason” means a termination of Executive’s employment by Executive
(other than a Termination for Good Reason) by Executive providing at least sixty
(60) days’ advance written notice to the Company of the effective date of such
termination.

     

    “Termination
Without Cause” means any termination of Executive’s employment by the Company
prior to December 31, 2009 other than a Termination for Cause, a
Termination on account of Executive’s death, or a Termination due to Executive’s
Disability.

     

    “Vested
Benefits.” means amounts which are vested or which Executive is otherwise
entitled to receive under the terms of or in accordance with any plan, policy,
practice or program of, or any contract or agreement with, the Company or any of
its subsidiaries, at or subsequent to the end of the Employment Period without
regard to the performance by Executive of further services or the resolution of
a contingency.

     

    (e) Full Discharge of Company
Obligations.  Except as expressly provided in the last sentence
of this Section 5(e), the amounts payable to Executive pursuant to this Section
5 following termination of his employment (including amounts payable with
respect to Vested Benefits) shall be in full and complete satisfaction of
Executive’s rights under this Agreement and any other claims he may have in
respect of his employment by the Company or any of its
subsidiaries.  Such amounts shall constitute liquidated damages with
respect to any and all such rights and claims and, upon Executive’s receipt of
such amounts, the Company shall be released and discharged from any and all
liability to Executive in connection with this Agreement or otherwise in
connection with Executive’s employment with the Company and its
subsidiaries.  As prior conditions to the receipt of any Additional
Benefits and/or Severance Benefits payable pursuant to this Section 5,
(i) Executive shall have executed and delivered within fifty (50) days
after termination of his employment and shall not have revoked within the
statutory revocation period, a release of claims in form and substance
satisfactory to the Company (but not inconsistent with the terms of this
Agreement), and (ii) Executive shall have resigned from the Board and all
officer and director positions with the Company, its subsidiaries and
affiliates.  Nothing in this Section 5(e) shall be construed to
release the Company from its commitment to indemnify Executive and hold
Executive harmless from and against any claim, loss or cause of action as
described in Section 4(d).

     

    6. Noncompetition and
Confidentiality.  By and in consideration of the Base Salary
and miscellaneous benefits to be provided by the Company hereunder, including
particularly the severance arrangements set forth herein, Executive agrees
that:

     

    
      
         

      

      
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    (a) Noncompetition.  Executive
acknowledges that the Company and its subsidiaries conduct business throughout
the United States and the District of Columbia and that his duties to Company
relate to some or all of these territories and to some or all business lines of
the Company.  During the Employment Period and during the twenty-four
(24) month period following the end of the Employment Period, Executive shall
not, directly or indirectly, perform or provide any executive management or
business consulting services for a Competitive Business.  For this
purpose, a “Competitive Business” means a corporation, firm or other enterprise
which (i) is in the home healthcare business on a national or regional
geographical basis and directly competes with any Company business that has at
least $25 million in annual revenue and (ii) has at least $25 million in annual
revenue in such business.  Ownership for investment purposes of up to
5% of the capital stock of any such competing company shall not be deemed to be
in conflict with Executive’s obligations hereunder.

     

    (b) Confidentiality.  Except
as may be required by the lawful order of a court or agency of competent
jurisdiction, or applicable law, or except to the extent that Executive has
express authorization from the Company, Executive agrees to keep secret and
confidential indefinitely all non-public information (including, without
limitation, information regarding litigation and pending litigation and any
information that may be subject to attorney-client privilege) concerning the
Company, its subsidiaries and affiliates (collectively, the “Company Group”)
which was acquired by or disclosed to Executive during the course of Executive’s
employment with the Company, and not to disclose the same, either directly or
indirectly, to any other person, firm, or business entity, or to use it in any
way.  Such non-public information shall include, but not be limited
to, the following:

     

    (i) Confidential
and proprietary information which the Company Group has compiled to identify,
develop and service its clients and customers, including “negative research” to
identify those entities who have not subscribed to the services of the Company
and its subsidiaries;

     

    (ii) information
which the Company Group has compiled concerning the operations of the clients
and customers of the Company and its subsidiaries, including key contacts within
the clients’ and customers’ business, familiarity with special needs and
customer characteristics, workers’ compensation information, billing rates,
profit margins, sales volumes, and other sensitive financial information;
and

     

    (iii) information
which the Company Group has compiled concerning the employees and labor force at
the Company and its subsidiaries, including compilations of their names,
addresses, job skills, employment histories and employment records to the extent
such information constitutes a “trade secret” of the Company under applicable
law and is not otherwise readily available to the general public.

     

    Upon
termination of Executive’s employment, Executive shall promptly deliver to the
Company all materials of a confidential nature relating to the business of the
Company and its subsidiaries and which are Executive’s possession or
control.  To the extent that Executive obtained informa-

     

    
      
         

      

      
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    tion on
behalf of the Company or any subsidiary or affiliate that may be subject to
attorney-client privilege, Executive shall take reasonable steps to maintain the
confidentiality of such information and to preserve such privilege.

     

    (c) Non-Solicitation and
Non-Hire of Employees.  During the Employment Period and the
twenty-four (24) month period following the end of the Employment Period,
Executive shall not directly or indirectly, for his own benefit or that of any
other person, hire or offer any employment in a similar field or business
association to any of the Company’s employees, agents or representatives or
suggest or in any way encourage, any of the Company’s employees, agents or
representatives to terminate their employment or business association with the
Company.  For purposes of this subparagraph, the term “employees,
agents or representatives” includes only individuals who are or were employees,
agents or representatives of the Company during the six-month period ending at
the end of the Employment Period.

     

    (d) Non-Solicitation of Clients
and Customers.  During the Employment Period and the
twenty-four (24) month period following the end of the Employment Period,
Executive shall not, directly or indirectly, solicit for Executive’s own benefit
or the benefit of any other person any of the Company’s customers and/or clients
with a view to selling or providing any product or service competitive with any
product or service sold or provided or identified as a product that will be sold
or provided within the aforesaid twenty-four (24) month period by the
Company.  For the purposes of this Section 6(d), the term “customers”
and/or clients shall include any person or entity to whom the Company has sold,
provided or been obligated to provide, any service or product, or who has
otherwise received any service or benefit from the Company within the last 24
months or within the 24-month period preceding the date Executive’s employment
terminates.

     

    (e) Company
Property.  Except as expressly provided herein, promptly
following the end of the Employment Period, Executive shall return to the
Company all property of the Company.

     

    (f) Injunctive Relief and Other
Remedies with Respect to Covenants.  Executive acknowledges and
agrees that the covenants and obligations of Executive with respect to
noncompetition, nonsolicitation, confidentiality and Company property, relate to
special, unique and extraordinary matters and that a violation of any of the
terms of such covenants and obligations may cause the Company irreparable injury
for which adequate remedies are not available at law.  Therefore,
Executive agrees that the Company shall be entitled to seek an injunction,
restraining order or such other equitable relief (without the requirement to
post bond) restraining Executive from committing any violation of the covenants
and obligations contained in this Section 6.  This remedy is in
addition to any other rights and remedies the Company may have at law or in
equity.

     

    7. Vesting of Equity
Awards.  So long as Executive’s employment continues hereunder
through December 31, 2009, notwithstanding any provision in the applicable
award agreements to the contrary, (i) all options to purchase Company common
stock, restricted Company stock, deferred Company stock awards and other Company
equity-based compensation awards, to the extent outstanding and held by
Executive on December 31, 2009, will become vested in full on December 31,
2009, and any stock options held by the Executive may be exercised until
December 31, 2011 (but not beyond the original full term of the option), and
(ii) in the

     

    
      
         

      

      
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    event
Executive cannot exercise any such stock options during a period of time after
December 31, 2009 because such an exercise would violate an applicable federal,
state, local or foreign law, such stock options may be exercised until March 31,
2012 (but not beyond the original full term of the option).  In the
event either a Termination Without Cause or a Termination for Good Reason occurs
prior to December 31, 2009, clause (iii) under the definition of “Additional
Benefits” in Section 5(d) above will apply with respect to stock options and
other equity-based awards.

     

    8. Consultancy
Period.  In the event Executive’s employment continues
hereunder through December 31, 2009, Executive shall provide consulting
services to the Company during the period (the “Consultancy Period”) beginning
at the end of the Employment Period and ending fifteen (15) months
thereafter.  Executive shall provide such consulting services to the
Company commensurate with his status and experience as the former Chairman and
Chief Executive Officer of the Company with respect to such matters as shall be
reasonably requested from time to time by the Company.  Executive
shall also assist the Company in the transition in management of the Company and
provide such additional services as and when reasonably requested.  In
no event shall Executive be required to render consulting services pursuant to
this Section 8 in excess of three (3) days per month.  Following a
request by the Company, Executive and the Company shall mutually determine the
time and location at which he shall perform such services.  So long as
Executive is in compliance with the provisions of this Section 8 and
Section 6 above, the Company shall pay Executive $15,000 per month for such
consulting services, to be paid, subject to Section 10(o) below, on the
last business day of each month during the Consultancy Period, and each such
monthly payment shall be deemed to be a separate payment for purposes of Section
409A.  Executive shall not, by virtue of the consulting services
provided hereunder, be considered an officer or employee of the Company, and
shall have no power or authority to contract in the name of or bind the
Company.  Executive shall not be entitled to any employee benefits or
other compensation by virtue thereof, except as expressly provided in this
Section 8.  So long as Executive’s employment continues hereunder
through December 31, 2009, the Company shall provide an office and
part-time secretarial support for Executive during the Consultancy
Period.  The provisions of this Section 8 shall not apply if the
termination of Executive’s employment results in the payment of severance
benefits under Executive’s Change in Control Agreement with the Company dated of
even date herewith.  If, during the Consultancy Period, Executive
becomes significantly involved in strategic planning for the Company or its
subsidiaries, the parties hereto will discuss in good faith the extension of the
term of the non-solicitation provisions set forth in Sections 6(c) and 6(d) of
this Agreement.

     

    9. Medical
Benefits.  So long as Executive’s employment continues
hereunder through December 31, 2009, Executive will receive the benefits
set forth in this Section 9.  Executive (and, to the extent
applicable, his dependents) will be entitled to continue participation in all of
the Company’s Health Benefit Plans, until the 18-month anniversary of the end of
the Employment Period; provided that Executive’s
participation in the Company’s Health Benefit Plans shall cease on any earlier
date that Executive becomes eligible for substantially similar health benefit
coverage from a subsequent employer.  Executive will make a COBRA
coverage election to participate in the Health Benefit Plans, effective from
January 1, 2010, and his participation will be on the same terms and conditions
(including, without limitation, any contributions that would have been required
from Executive) that would have applied had Executive continued to be employed
by the Company.  For the period beginning on such 18-month anniversary
and ending on the earlier of the date Executive is eligible for substantially
similar health benefit coverage from a subsequent employer or the date he
becomes eligible for Medicare, the Com-

     

    
      
         

      

      
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    pany will
reimburse Executive’s premium cost for health benefit plan coverage (to the
extent such coverage is substantially similar to the coverage provided from time
to time under the Health Benefit Plans of the Company for senior executives of
the Company) up to a monthly amount equal to the sum of (i) the monthly
contribution the Company would have made toward the premium cost of such
coverage had Executive remained covered under the Company’s Health Benefit
Plans, and (ii) $417, and such reimbursement shall be made within thirty (30)
business days following presentment to the Company by Executive of a receipt for
such payment of such premiums by him.  The provisions of this Section
9 shall not apply if the termination of Executive’s employment results in the
payment of severance benefits under Executive’s Change in Control Agreement with
the Company dated of even date herewith.

     

    10. Miscellaneous.

     

    (a) Effective
Date.  This Agreement shall become effective for all purposes
on the date set forth in the first paragraph of this Agreement above (the
“Effective Date”).

     

    (b) Survival.  Sections
4(d) relating to indemnification, 5 (relating to early termination), 6 (relating
to noncompetition, nonsolicitation and confidentiality), 7 (relating to vesting
of equity awards), 8 (relating to the Consultancy Period), 9 (relating to
medical benefits),  10(c) (relating to arbitration), 10(d) (relating
to binding effect) and 10(n) (relating to governing law) shall survive the
termination hereof.

     

    (c) Arbitration.  Any
dispute or controversy arising under or in connection with this Agreement shall
be resolved by binding arbitration.  This arbitration shall be held in
New York City and except to the extent inconsistent with this Agreement, shall
be conducted in accordance with the Expedited Employment Arbitration Rules of
the American Arbitration Association then in effect at the time of the
arbitration, and otherwise in accordance with principles which would be applied
by a court of law or equity.  Executive and the Company shall be
entitled to discovery in any such proceeding.  All fees, costs and
expenses of the arbitration, with the exception of Executive’s attorney’s fees,
costs and expenses, shall be borne by the Company.  The arbitrator
shall be acceptable to both the Company and Executive.  If the parties
cannot agree on an acceptable arbitrator, the dispute shall he held by a panel
of three arbitrators, one appointed by each of the parties and the third
appointed by the other two arbitrators.  The arbitrator(s) shall not
have the power to commit substantive errors of law, legal reasoning or fact,
shall set forth their factual and legal reasoning in any award or determination,
and any such award or determination may be vacated or corrected as a
result.

     

    (d) Binding
Effect.  This Agreement shall be binding on, and shall inure to
the benefit of, the Company and any person or entity that succeeds to the
interest of the Company (regardless of whether such succession does or does not
occur by operation of law) by reason of the sale of all or a portion of the
Company’s stock, a merger, consolidation or reorganization involving the Company
or a sale of all or substantially all of the assets of the
Company.  The Company will require any such successor to assume and
agree to perform this Agreement in the same manner and to the same extent that
the Company would be required to perform it if no such succession had taken
place.  This Agreement shall also inure to the benefit of Executive’s
heirs, executors, administrators and legal representatives.

     

    
      
         

      

      
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    (e) Assignment.  Except
as provided under Section 10(d), neither this Agreement nor any of the rights or
obligations hereunder shall be assigned or delegated by any party hereto without
the prior written consent of the other party.

     

    (f) Entire
Agreement.  This Agreement, together with the Change in Control
Agreement between the Company and the Executive of even date herewith,
constitutes the entire agreement between the parties hereto with respect to the
matters referred to herein.  No other agreement (other than awards
made in accordance with the terms of one of the Company’s applicable
compensatory plans, programs or arrangements) relating to the terms of
Executive’s employment by the Company, oral or otherwise, including, without
limitation, the Severance Letter dated March 14, 2000, the Employment Agreements
dated as of June 10, 2002 and March 22, 2004, and the Change in Control
Agreements dated March 15, 2000, June 14, 2002 and March 22, 2004, between the
Executive and the Company, shall be binding between the parties.  The
Company and the Executive acknowledge that both parties have signed or will sign
contemporaneously with this Agreement a new and separate Change in Control
Agreement, and that the terms of such Change in Control Agreement are not
superseded by this Agreement and may be enforced notwithstanding any terms of
this Agreement to the contrary.  There are no promises,
representations, inducements or statements between the parties other than those
that are expressly contained herein.  Executive acknowledges that he
is entering into this Agreement of his own free will and accord, and with no
duress, that he has read this Agreement and that he understands it and its legal
consequences.  It is intended by the parties hereto that there shall
not be a duplication of benefit payments under this Agreement and the Change in
Control Agreement between the Company and the Executive of even date
herewith.

     

    (g) Severability;
Reformation.  In the event that one or more of the provisions
of this Agreement shall become invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein shall not be affected thereby.  In the event that any of the
provisions of Section 6 hereof are not enforceable in accordance with their
terms, Executive and the Company agree that such provisions shall be reformed to
make such Section enforceable in a manner which provides the Company the maximum
rights permitted at law.

     

    (h) Waiver.  Waiver
by any party hereto of any breach or default by the other party of any of the
terms of this Agreement shall not operate as a waiver of any other breach or
default, whether similar to or different from the breach or default
waived.  No waiver of any provision of this Agreement shall be implied
from any course of dealing between the parties hereto or from any failure by
either party hereto to assert its or his rights hereunder on any occasion or
series of occasions.

     

    (i) Notices.  Any
notice required or desired to be delivered under this Agreement shall be in
writing and shall be delivered personally, by courier service, by certified
mail, return receipt requested, or by telecopy and shall be effective upon
actual receipt by the party to which such notice shall be directed, and shall be
addressed as follows (or to such other address as the party entitled to notice
shall hereafter designate in accordance with the terms hereof):

     

    
      
         

      

      
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    If to the
Company:

     

    
      	
              Gentiva
      Health Services, Inc.

              3
      Huntington Quadrangle 2S

              Melville,
      NY  11747

              Attention:  General
      Counsel

            

    

    

     

    If to
Executive:

     

    To the
last address of Executive on record with the Company

     

     

    (j) Amendments.  This
Agreement may not be altered, modified or amended except by a written instrument
signed by each of the parties hereto.

     

    (k) Headings.  Headings
to paragraphs in this Agreement are for the convenience of the parties only and
are not intended to be part of or to affect the meaning or interpretation
hereof.

     

    (l) Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed an
original but all of which shall constitute one and the same
instrument.

     

    (m) Withholding.  Any
payments provided for herein shall be reduced by any amounts required to be
withheld by the Company from time to time under applicable Federal, State or
local income tax laws or similar statutes then in effect.

     

    (n) Choice of
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without reference to
principles of conflict of laws thereof.

     

    (o) Section
409A.  It is intended that this Agreement will comply with
Section 409A of the Code (and any regulations and guidelines issued thereunder)
to the extent the Agreement is subject thereto, and the Agreement shall be
interpreted on a basis consistent with such intent.  If an amendment
of the Agreement is necessary in order for it to comply with Section 409A, the
parties hereto will negotiate in good faith to amend the Agreement in a manner
that preserves the original intent of the parties to the extent reasonably
possible.  Notwithstanding any provision to the contrary in this
Agreement, if Executive is deemed on the date of his “separation from service”
(within the meaning of Treas. Reg. Section 1.409A-1(h)) to be a “specified
employee” (within the meaning of Treas. Reg. Section 1.409A-1(i)), then
with regard to any payment that is required to be delayed pursuant to Section
409A(a)(2)(B) of the Code, such payment shall not be made prior to the earlier
of (i) the expiration of the six (6)-month period measured from the date of his
“separation from service,” or (ii) the date of his death (the “Delay
Period”).  Upon the expiration of the Delay Period, all payments
delayed pursuant to this Section 10(o) (whether they would have otherwise been
payable in a single sum or in installments in the absence of such delay) shall
be paid to Executive in a lump sum together with interest at 1% above the prime
rate (as reported in The Wall Street Journal, Eastern Edition), as in effect on
the first day of the Delay Period, and any remaining payments due under this
Agreement shall be paid in accordance with the normal payment dates specified
for them herein.  Notwithstanding any provision of this Agreement to
the contrary, for purposes of Sections 5 and 8

     

    
      
         

      

      
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    above,
Executive’s employment will be deemed to have terminated and the Employment
Period will be deemed to have ended on the date of Executive’s “separation from
service” (within the meaning of Treas. Reg. Section 1.409A-1(h)) with the
Company.  No action or failure to act, pursuant to this Section 10(o)
shall subject the Company to any claim, liability, or expense, and the Company
shall not have any obligation to indemnify or otherwise protect Executive from
the obligation to pay any taxes, interest or penalties pursuant to Section 409A
of the Code.  With respect to any reimbursement or in-kind benefit
arrangements of the Company and its subsidiaries that constitute deferred
compensation for purposes of Section 409A of the Code, the following
conditions shall be applicable: (i) the amount eligible for reimbursement,
or in-kind benefits provided, under any such arrangement in one calendar year
may not affect the amount eligible for reimbursement, or in-kind benefits to be
provided, under such arrangement in any other calendar year (except that the
health and dental plans may impose a limit on the amount that may be reimbursed
or paid if such limit is imposed on all participants), (ii) any
reimbursement must be made on or before the last day of the calendar year
following the calendar year in which the expense was incurred, and (iii) the
right to reimbursement or in-kind benefits is not subject to liquidation or
exchange for another benefit.  Whenever payments under this Agreement
are to be made in installments, each such installment shall be deemed to be a
separate payment for purposes of Section 409A.

     

    (p) Attorneys
Fees.  The Company shall reimburse Executive for the reasonable
legal fees and expenses incurred by him in connection with negotiation of this
Agreement and negotiation of the Change in Control Agreement with the Company
executed on even date herewith.

     

    (q) No Duty to
Mitigate.  Executive shall have no duty to seek new employment
or other duty to mitigate following a termination of employment, and, except in
the case of health care benefits as provided herein, no compensation or benefits
described in this Agreement shall be subject to reduction or offset on account
of any compensation or benefits earned or provided by a subsequent
employer.

     

    

     

    [Next
Page is Signature Page]

    
      
         

      

      
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    IN
WITNESS WHEREOF, the Executive has hereunto set his hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents
to be executed as of the day and year first above written.

     

    
      	
              GENTIVA
      HEALTH SERVICES, INC.

            
	 
	 
	
              By: 
      /s/ Stuart R. Levine        

                     
      Name:  Stuart R. Levine

                     
      Title:    Chair, Compensation Committee

            
	 
	 
	 
	By: 
      /s/ Ronald A. Malone        
	
                     
      Name:  Ronald A. Malone

                     
      Title:    Chief Exeuctive Officer and

                                  
      Chairman of the Board

            
	
               

            

    

    

     

     

    -16-ex10_2.htm

     

    Ezxhibit 10.2

     

    CHANGE IN CONTROL
AGREEMENT

     

    Agreement,
made this 12th day of November, 2008, by and between Gentiva Health Services,
Inc., a Delaware corporation (the “Company”), and Ronald A. Malone (the
“Executive”).

     

    WHEREAS,
the Executive is a key employee of the Company; and

     

    WHEREAS,
the Board of Directors of the Company (the “Board”) considers the maintenance of
a sound management to be essential to protecting and enhancing the best
interests of the Company and its stockholders and recognizes that the
possibility of a change in control raises uncertainty and questions among key
employees and may result in the departure or distraction of such key employees
to the detriment of the Company and its stockholders; and

     

    WHEREAS,
the Board wishes to assure that it will have the continued dedication of the
Executive and the availability of his or her advice and counsel, notwithstanding
the possibility, threat or occurrence of a bid to take over control of the
Company, and to induce the Executive to remain in the employ of the Company;
and

     

    WHEREAS,
the Executive and the Company previously entered into a Change in Control
Agreement dated March 22, 2004; and

     

    WHEREAS,
the Executive and the Company wish to amend and restate the Change in Control
Agreement as set forth herein; and

     

    WHEREAS,
the Executive is willing to continue to serve the Company taking into account
the provisions of this Agreement;

     

    NOW,
THEREFORE, in consideration of the foregoing, and the respective covenants and
agreements of the parties herein contained, the parties agree as
follows:

     

    1. Operation and Term of
Agreement.  This Agreement shall commence on the date set forth
above and shall terminate on December 31, 2009 unless this Agreement is
terminated earlier, as set forth below; provided, however, that in the
event of a Change in Control of the Company and a termination of the Executive’s
employment by the Company not for Cause or a termination by the Executive for
Good Reason during the term of this Agreement, this Agreement shall remain in
effect until all of the obligations of the parties hereunder are
satisfied.  Notwithstanding the foregoing, prior to a Change in
Control this Agreement shall immediately terminate upon termination of the
Executive’s employment, except in the case of such termination under
circumstances set forth in the last paragraph of Section 4 below.

     

    2. Change in Control;
Protection Period.  A “Change in Control” shall be deemed to
occur on the date that any of the following events occur:

     

    (a) any
person or persons acting together which would constitute a “group” for purposes
of Section 13(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) (other than the Company or any subsidiary and other than
Permitted Holders) shall beneficially own (as defined in Rule 13d-3 of the
Exchange Act), directly

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    or
indirectly, at least 25% of the total voting power of all classes of capital
stock of the Company entitled to vote generally in the election of the
Board;

     

    (b) either
(i) Current Directors (as herein defined) shall cease for any reason to
constitute at least a majority of the members of the Board (for these purposes,
a “Current Director” shall mean any member of the Board as of the date set forth
in the first paragraph of this Agreement, and any successor of a Current
Director whose election, or nomination for election by the Company’s
shareholders, was approved by at least two-thirds of the Current Directors then
on the Board) or (ii) at any meeting of the shareholders of the Company called
for the purpose of electing directors, a majority of the persons nominated by
the Board for election as directors shall fail to be elected;

     

    (c) consummation
of (i) a plan of complete liquidation of the Company, or (ii) a merger or
consolidation of the Company (A) in which the Company is not the continuing or
surviving corporation (other than a consolidation or merger with a wholly owned
subsidiary of the Company in which all shares of common stock of the Company
(the “Common Stock”) outstanding immediately prior to the effectiveness thereof
are changed into common stock of the subsidiary) or (B) pursuant to which the
Common Stock is converted into cash, securities or other property, except a
consolidation or merger of the Company in which the holders of the Common Stock
immediately prior to the consolidation or merger have, directly or indirectly,
at least a majority of the common stock of the continuing or surviving
corporation immediately after such consolidation or merger or in which the Board
immediately prior to the merger or consolidation would, immediately after the
merger or consolidation, constitute a majority of the board of directors of the
continuing or surviving corporation; or

     

    (d) consummation
of a sale or other disposition (in one transaction or a series of transactions)
of all or substantially all of the assets of the Company.

     

    Notwithstanding
the foregoing, none of the events set forth in clauses (a) through (d) above in
the definition of Change in Control shall constitute a “Change in Control”
unless such event is also a “change in control event” as defined in Treas. Reg.
§ 1.409A-3(i)(5).

     

    For
purposes of this Section 2 under this Agreement, “Permitted Holders” shall mean
Miriam Olsten, Stuart Olsten, and Cheryl Olsten, and each of their spouses,
their lineal descendants and their estates and their Affiliates or Associates
(as defined in Rule 12b-2 of the Exchange Act) (collectively the “Olsten
Stockholders”), so long as the Olsten Stockholders beneficially own 20% or less
of the voting power of all classes of capital stock of the Company entitled to
vote generally in the election of the Board.

     

    A
“Protection Period” shall be the period beginning on the date of a Change in
Control and ending on December 31, 2009.

     

    3. Termination Following Change
in Control.  The Executive shall be entitled to the benefits
provided in Section 4 hereof if, within a Protection Period, the Executive’s
employment by the Company shall be terminated (a) by the Company not
for

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    “Cause”
and not due to the Executive’s death or “Disability”, or (b) by the Executive
for “Good Reason.”

     

    (i) Disability.  The
Executive’s employment shall be deemed to have terminated because of a
“Disability” if the Executive applies for and is determined to be eligible to
receive disability benefits under the Company’s long-term disability plan or
program, or, in the absence of such a plan or program, as defined in Section 22
of the Internal Revenue Code of 1986, as amended (the “Code”).

     

    (ii) Cause.  Termination
by the Company of the Executive’s employment for “Cause” shall mean termination
due to (A) the Executive’s conviction of a felony, or (B) any act of willful
fraud, dishonesty or moral turpitude.

     

    (iii) Without
Cause.  The Company may terminate the employment of the
Executive without Cause during a Protection Period only by giving the Executive
written notice of termination to that effect.  In that event, the
Executive’s employment shall terminate on the last day of the month in which
such notice is given (or such later date as may be specified in such notice),
and the benefits set forth in Section 4 hereof shall be provided to the
Executive.

     

    (iv) Good
Reason.  For purposes hereof, “Good Reason” shall mean, unless
remedied by the Company within thirty (30) days after the receipt of written
notice from the Executive as provided below or consented to in writing by the
Executive:

     

    (A) a
reduction by the Company in the Executive’s annual base salary (other than any
reduction therein which is in proportion to reductions in the base salaries of
all of the Company’s executive officers, unless, however, such proportionate
reduction exceeds 20% of the Executive’s annual base salary);

     

    (B) there has
occurred a failure by the Company to maintain plans providing benefits not
materially less favorable than those provided by any benefit or compensation
plan (including, without limitation, any incentive compensation plan, bonus plan
or program, retirement, pension or savings plan, stock option plan, restricted
stock plan, life insurance plan, health and dental plan and disability plan) in
which the Executive is participating immediately before the beginning of the
Protection Period, or the Company has taken any action which would adversely
affect the Executive’s participation in or reduce the Executive’s benefits
(other than stock option or restricted stock grants) under any of such plans or
deprive the Executive of any material fringe benefit enjoyed by the Executive
immediately before the beginning of the Protection Period, or the Company has
failed to provide the Executive with the number of paid vacation days to which
he would be entitled in accordance with the normal vacation policy of the
Company as in effect immediately before the beginning of the Protection Period;
provided, however, that a
reduction in benefits under the Company’s taxqualified retirement, pension or
savings plans or its life insurance plan, health and dental plan, disability
plans or other insurance plans which reduction applies

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    equally
to all participants in the plans and has a de minimis effect on the
Executive shall not constitute “Good Reason” for termination by the
Executive;

     

    (C) a
material diminution in the Executive’s title, positions, duties and
responsibilities from those described in Section 2 of the Executive’s Employment
Agreement with the Company dated of even date herewith (the “Employment
Agreement”) as in effect on the date of the Change in Control (other than as
permitted under the Employment Agreement) or the assignment by the Company to
the Executive of duties and responsibilities that are materially inconsistent
with his position;

     

    (D) a failure
by the Company to assign to the Executive the duties, responsibilites and
obligations customarily assigned to individuals serving as chairman of the board
of directors of comparable companies;

     

    (E) a
material breach by the Company of the Employment Agreement;

     

    (F) the
Company has failed to obtain the assumption of the obligations contained in this
Agreement by any successor as contemplated in Section 9(c) hereof;
or

     

    (G) there
occurs any purported termination of the Executive’s employment by the Company
without Cause which is not effected pursuant to a written notice of termination
as described in subsection (iii) above.

     

    The
Executive shall exercise his right to terminate employment for Good Reason by
giving the Company a written notice of termination specifying in reasonable
detail the circumstances constituting such Good Reason, and the Company will
have a period of thirty (30) days from receipt of such written notice during
which it may remedy the condition.  In the event the Company fails to
remedy the condition within such period, the Executive’s employment shall
terminate immediately following the end of such period.

     

    A
termination of employment by the Executive within a Protection Period shall be
for Good Reason if one of the occurrences specified in this subsection (iv)
shall have occurred, notwithstanding that the Executive may have other reasons
for terminating employment, including employment by another employer which the
Executive desires to accept.

     

    4. Benefits Upon Termination
Within Protection Period.  If, within a Protection Period, the
Executive’s employment by the Company shall be terminated (a) by the Company not
for Cause and not due to the Executive’s death or Disability, or (b) by the
Executive for Good Reason, the Executive shall be entitled to the benefits
provided for below (and the Executive shall not be entitled to severance
benefits otherwise payable under the Executive’s Employment Agreement with the
Company or under any other severance plan or policy of the
Company):

     

    (i) The
Company shall pay to the Executive (A) base salary at the rate then in
effect through the date of the Executive’s termination of employment in
accordance with the standard payroll practices of the Company, and (B) base
salary in lieu of vacation ac-

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    crued to
the date on which his employment terminates, which shall be paid, subject to
Section 10 below, 10 business days after the date of such termination of
employment;

     

    (ii) The
Company shall pay to the Executive an amount in cash equal to two and one half
(2.5) times the sum of (A) the Executive’s annual base salary in effect
immediately prior to the date of the Executive’s termination of employment or
the date of the Change in Control (whichever is higher), and (B) the higher of
(x) the Executive’s target annual bonus for the year that includes the date of
the Executive’s termination of employment or (y) the Executive’s target annual
bonus for the year that includes the date of the Change in Control; and such
amount shall be paid, subject to Section 10 below, in a lump sum
10 business days after the date of such termination of
employment;

     

    (iii) The
Company shall continue to cover the Executive and his dependents under, or
provide the Executive and his dependents with insurance coverage no less
favorable than, the Company’s life, disability, health, dental or other employee
welfare benefit plans or programs (as in effect on the day immediately preceding
the Protection Period or on the date of termination of his employment, whichever
is more favorable to the Executive) for a period equal to the lesser of (x) two
years following the date of termination or (y) until the Executive is provided
by another employer with benefits substantially comparable to the benefits
provided by such plans or programs; provided, however, that the
provision of this benefit shall be contingent upon the cooperation of the
Executive (or his dependent, as applicable) in any reasonable request by the
Company to facilitate the provision of such benefit, including responding to
questionnaires and submitting to minimally intrusive medical examinations; and,
so long as the Executive has not become eligible for substantially similar
health benefit coverage from a subsequent employer, for the period beginning on
the second anniversary of the date of termination of employment and ending on
the earlier of the date the Executive is eligible for substantially similar
health benefit coverage from a subsequent employer or the date he becomes
eligible for Medicare, the Company will reimburse the Executive’s premium cost
for health benefit plan coverage (to the extent such coverage is substantially
similar to the coverage provided from time to time under the medical, dental and
vision care plans of the Company for senior executives of the Company) up to a
monthly amount equal to the sum of (i) the monthly contribution the Company
would have made toward the premium cost of such coverage had the Executive
remained covered under the Company’s medical, dental and vision care plans, and
(ii) $417, and such reimbursement shall be made within thirty (30) business days
following presentment to the Company by the Executive of a receipt for such
payment of such premiums by him;

     

    (iv) All
options to purchase Company stock held by the Executive and all restricted
shares of Company stock, restricted Company share units and other equity-based
compensation awards held by the Executive shall become immediately vested in
full upon such termination of employment, and all such stock options shall be
exercisable for three years following such termination of employment (but not
beyond the original full term of the stock option); and

     

    (v) All of
the Executive’s benefits accrued under the pension, retirement, savings and
deferred compensation plans of the Company shall become vested in
full;

     

    
      
         

      

      
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    provided, however, that to the
extent such accelerated vesting of benefits cannot be provided under one or more
of such plans consistent with applicable provisions of the Code, such benefits
shall be paid to the Executive outside the applicable plan in a lump sum,
subject to Section 10 below, 10 business days after the date of termination
of employment; provided, further,
however, that, to the extent any such unvested benefit constitutes
deferred compensation for purposes of Section 409A of the Code, the payment of
such deferred compensation shall instead be made at the time it was otherwise
scheduled to be paid under the applicable plan.

     

    Anything
in this Agreement to the contrary notwithstanding, the Executive shall be
entitled to the benefits described in this Section 4, if the Executive’s
employment with the Company is terminated by the Company prior to
December 31, 2009 (other than for Cause) and within one year prior to the
date on which a Change in Control occurs, and it is reasonably demonstrated that
such termination (i) was at the request of a third party who has taken steps
reasonably calculated or intended to effect a Change in Control or (ii)
otherwise arose in connection with or anticipation of a Change in Control. In
such event, amounts will be payable hereunder only following, and, subject to
Section 10 below, 10 business days after, the Change in
Control.  Any amount so payable hereunder shall be reduced by the
amount of severance benefits paid to the Executive under the Employment
Agreement or under any other severance agreement or plan of the
Company.

     

    5. Non-exclusivity of
Rights.  Except as expressly set forth herein, this Agreement
shall not prevent or limit the Executive’s continuing or future participation in
any benefit, bonus, incentive or other plans, practices, policies or programs
provided by the Company or any of its subsidiaries and for which the Executive
may qualify, nor shall it limit or otherwise affect such rights as the Executive
may have under any stock option or other agreements with the Company or any of
its subsidiaries.  Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, practice, policy or
program of the Company or any of its subsidiaries at or subsequent to the date
of termination of the Executive’s employment shall be payable in accordance with
such plan, practice, policy or program.

     

    6. Full-Settlement; Legal
Expenses.  The Company’s obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Executive or others.  In no event shall the Executive be obligated to
seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this
Agreement.  The Company agrees to pay all legal fees and expenses
which the Executive may reasonably incur as a result of any dispute or contest
by or with the Company or others regarding the validity or enforceability of, or
liability under, any provision of this Agreement (including as a result of any
contest by the Executive about the amount of any payment hereunder) if the
Executive substantially prevails in the dispute or contest.  Following
the final determination of the dispute in which the Executive has substantially
prevailed, the Company shall reimburse all such reasonable costs within 10 days
following written demand therefor (supported by documentation of such costs) by
the Executive, and the Executive shall make such written demand within 60 days
following the final determination of the dispute; provided, however,
that such payment shall

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    be made
no later than on or prior to the end of the calendar year following the calendar
year in which the cost is incurred.  Notwithstanding the foregoing, in
the event a final determination of the dispute has not been made by
December 20 of the year following the calendar year in which the cost is
incurred, the Company shall, within 10 days after such December 20,
reimburse such reasonable costs (supported by documentation of such costs)
incurred in the prior taxable year; provided, however,
that the Executive shall return such amounts to the Company within 10 business
days following the final determination if the Executive did not substantially
prevail in the dispute.  The amount of any expenses eligible for
payment under this Section 6 during a calendar year will not affect the amount
of any expenses eligible for payment under this Section 6 in any other
taxable year.  In any such action brought by the Executive for damages
or to enforce any provisions of this Agreement, the Executive shall be entitled
to seek both legal and equitable relief and remedies, including, without
limitation, specific performance of the Company’s obligations hereunder, in his
sole discretion.

     

    7. Excise Tax
Gross-Up.

     

    (a) In the
event it shall be determined that any payment, award, benefit or distribution
(including, without limitation, the acceleration of any payment, award,
distribution or benefit), by the Company or any of its affiliates to or for the
benefit of the Executive (whether pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 7) (a “Payment”) would be subject to the excise tax imposed
by Section 4999 of the Code or any corresponding provisions of state or local
tax law, or any interest or penalties are incurred by the Executive with respect
to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the “Excise Tax”), then
the Executive shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by the Executive of all taxes
(including any Excise Tax, income tax or employment tax) imposed upon the
Gross-Up Payment and any interest or penalties imposed with respect to such
taxes, the Executive retains from the Gross-Up Payment an amount equal to the
Excise Tax imposed upon the Payments.  Notwithstanding the foregoing
provisions of this Section 7(a), if it shall be determined that the Executive is
entitled to a Gross-Up Payment, but that the portion of the Payments that would
be treated as “parachute payments” under Section 280G of the Code does not
exceed by more than $25,000 the greatest amount (the “Safe Harbor Amount”) that
could be paid to the Executive such that the receipt of Payments would not give
rise to any Excise Tax, then no Gross-up Payment shall be made to the Executive
and the amount payable under Section 4(ii) of this Agreement shall be
reduced so that the Payments, in the aggregate, are reduced to the Safe Harbor
Amount.  For purposes of reducing the payments to the Safe Harbor
Amount, only amounts payable under this Agreement (and no other Payments) shall
be reduced. If the reduction of the amounts payable under this Agreement would
not result in a reduction of the Payments to the Safe Harbor Amount, no amounts
payable under this Agreement shall be reduced pursuant to this Section
7.  Notwithstanding any other provision in this Section 7, in the
event a Change in Control occurs after March 24, 2009 (other than pursuant
to an acquisition agreement entered into by the Company and the acquiror on or
prior to March 24, 2009), for purposes of this Section 7 the amount of any
Gross-Up Payment resulting from such Change in Control shall be no greater
than $1 million.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    

     

    (b) Subject
to the provisions of Section 7(c), all determinations required to be made under
this Section 7, including the determination of whether a Gross-Up Payment is
required and of the amount of any such Gross-up Payment, shall be made by the
outside firm of auditors regularly used by the Company to audit its financial
statements at the time of the Change in Control (the “Accounting Firm”), which
shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days after the receipt of notice from the Company
that the Executive has received a Payment, or such earlier time as is requested
by the Company.  The initial Gross-Up Payment, if any, as determined
pursuant to this Section 7(b), shall be paid to the Executive (or for the
benefit of the Executive to the extent of the Company’s withholding obligation
with respect to applicable taxes) no later than the later of (i) the due date
for the payment of any Excise Tax, and (ii) the receipt of the Accounting Firm’s
determination.  Any determination by the Accounting Firm meeting the
requirements of this Section 7(b) shall be binding upon the Company and the
Executive.  As a result of the uncertainty in the application of
Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments which will not
have been made by the Company should have been made (“Underpayment”), consistent
with the calculations required to be made hereunder.  In the event
that the Company exhausts its remedies pursuant to Section 7(c) and the
Executive thereafter is required to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has occurred
and any such Underpayment shall be promptly paid by the Company to or for the
benefit of the Executive.  The fees and disbursements of the
Accounting Firm shall be paid by the Company.

     

    (c) The
Executive shall notify the Company in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by the Company of
a Gross-Up Payment. Such notification shall be given as soon as practicable but
not later than ten business days after the Executive receives written notice of
such claim and shall apprise the Company of the nature of such claim and the
date on which such claim is requested to be paid. The Executive shall not pay
such claim prior to the expiration of the 30-day period following the date on
which it gives such notice to the Company (or such shorter period ending on the
date that any payment of taxes with respect to such claim is due).  If
the Company notifies the Executive in writing prior to the expiration of such
period that it desires to contest such claim, the Executive shall:

     

    (i) give the
Company any information reasonably requested by the Company relating to such
claim,

     

    (ii) take such
action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably
selected by the Company,

     

    (iii) cooperate
with the Company in good faith in order effectively to contest such claim,
and

     

    (iv) permit
the Company to participate in any proceedings relating to such
claim;

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    

     

    provided, however, that the
Company shall bear and pay directly all fees, costs and expenses (including
additional interest and penalties, and reasonable attorneys’ fees) incurred in
connection with such contest and shall indemnify and hold the Executive
harmless, on an after-tax basis, for any Excise Tax, income tax or employment
tax, including interest and penalties with respect thereto, imposed as a result
of such representation and payment of fees, costs and
expenses.  Without limitation on the foregoing provisions of this
Section 7(c), the Company shall control all proceedings taken in connection with
such contest and, at its sole option, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest to
a determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the
Company directs the Executive to pay such claim and sue for a refund, the
Company shall advance the amount of such payment to the Executive on an
interest-free basis and shall indemnify and hold the Executive harmless, on an
after-tax basis, from any Excise Tax, income tax or employment tax, including
interest or penalties with respect thereto, imposed with respect to such
advance; and further, provided that any
extension of the statute of limitations relating to the payment of taxes for the
taxable year of the Executive with respect to which such contested amount is
claimed to be due is limited solely to such contested
amount.  Furthermore, the Company’s control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and the Executive shall be entitled to settle or contest, as the case
may be, any other issue raised by the Internal Revenue Service or any other
taxing authority.

     

    (d) If, after
the receipt by the Executive of an amount advanced by the Company pursuant to
Section 7(c), the Executive becomes entitled to receive any refund with respect
to such claim, the Executive shall (subject to the Company’s complying with the
requirements of Section 7(c)) promptly pay to the Company the amount of such
refund (together with any interest paid or credited thereon after taxes
applicable thereto).  If, after the receipt by the Executive of an
amount advanced by the Company pursuant to Section 7(c), a determination is made
that the Executive shall not be entitled to any refund with respect to such
claim and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

     

    (e) Anything
in this Agreement to the contrary notwithstanding, except as otherwise provided
in Treas. Reg. Section 1.409A-3(i)(1)(v), in no event shall any payment by the
Company pursuant to this Section 7 be made later than the end of the Executive’s
taxable year next following the Executive’s taxable year in which he remits the
related taxes.

     

    8. Confidential
Information.  The Executive shall hold in a fiduciary capacity
for the benefit of the Company all secret or confidential information, knowledge
or data relating to the Company or any of its subsidiaries, and their respective
businesses, which shall have been obtained by the Executive during the
Executive’s employment by the Company or any of its subsidiaries and which has
not become public knowledge (other than by acts of the Executive or his or her
representatives in violation of this Agreement).  After the date of
termination of the

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    Executive’s
employment with the Company, the Executive shall not, without the prior written
consent of the Company, communicate or divulge any such information, knowledge
or data to anyone other than the Company and those designated by
it.  In no event shall an asserted violation of the provisions of this
Section 8 constitute a basis for deferring or withholding any amounts otherwise
payable to the Executive under this Agreement.

     

    9. Successors.

     

    (a) This
Agreement is personal to the Executive and without the prior written consent of
the Company shall not be assignable by the Executive otherwise than by will or
the laws of descent and distribution.  This Agreement shall inure to
the benefit of and be enforceable by the Executive’s heirs, executors,
administrators, legal representatives or successor(s) in interest.

     

    (b) This
Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

     

    (c) The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place.  As used
in this Agreement, “Company” shall mean the Company as hereinbefore defined and
any successor to its business and/or assets as aforesaid which assumes and
agrees to perform this Agreement by operation of law or otherwise.

     

    10. Section
409A.  It is intended that this Agreement will comply with
Section 409A of the Code (and any regulations and guidelines issued thereunder)
to the extent the Agreement is subject thereto, and the Agreement shall be
interpreted on a basis consistent with such intent.  If an amendment
of the Agreement is necessary in order for it to comply with Section 409A, the
parties hereto will negotiate in good faith to amend the Agreement in a manner
that preserves the original intent of the parties to the extent reasonably
possible.  Notwithstanding any provision to the contrary in this
Agreement, if the Executive is deemed on the date of his “separation from
service” (within the meaning of Treas. Reg. Section 1.409A-1(h)) to be a
“specified employee” (within the meaning of Treas. Reg.
Section 1.409A-1(i)), then with regard to any payment that is required to
be delayed pursuant to Section 409A(a)(2)(B) of the Code, such payment shall not
be made prior to the earlier of (i) the expiration of the six (6)-month period
measured from the date of his “separation from service,” or (ii) the date of his
death (the “Delay Period”).  Upon the expiration of the Delay Period,
all payments delayed pursuant to this Section 10 (whether they would have
otherwise been payable in a single sum or in installments in the absence of such
delay) shall be paid to the Executive in a lump sum together with interest at 1%
above the prime rate (as reported in The Wall Street Journal, Eastern Edition),
as in effect on the first day of the Delay Period, and any remaining payments
due under this Agreement shall be paid in accordance with the normal payment
dates specified for them herein.  Notwithstanding any provision of
this Agreement to the contrary, for purposes of Section 4 above, the
Executive’s employment will be deemed to have terminated on the date of the
Executive’s “separation from service” (within the meaning of Treas. Reg. Section
1.409A-1(h)) with the Company.  No action or failure to act, pursuant
to this Section 10 shall subject the

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    Company
to any claim, liability, or expense, and the Company shall not have any
obligation to indemnify or otherwise protect the Executive from the obligation
to pay any taxes, interest or penalties pursuant to Section 409A of the
Code.  With respect to any reimbursement or in-kind benefit
arrangements of the Company and its subsidiaries that constitute deferred
compensation for purposes of Section 409A of the Code, the following
conditions shall be applicable: (i) the amount eligible for reimbursement,
or in-kind benefits provided, under any such arrangement in one calendar year
may not affect the amount eligible for reimbursement, or in-kind benefits to be
provided, under such arrangement in any other calendar year (except that the
health and dental plans may impose a limit on the amount that may be reimbursed
or paid if such limit is imposed on all participants), (ii) any
reimbursement must be made on or before the last day of the calendar year
following the calendar year in which the expense was incurred, and (iii) the
right to reimbursement or in-kind benefits is not subject to liquidation or
exchange for another benefit.  Whenever payments under this Agreement
are to be made in installments, each such installment shall be deemed to be a
separate payment for purposes of Section 409A.

     

    11. Miscellaneous.

     

    (a) This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without reference to principles of conflict of laws thereof.
The captions of this Agreement are not part of the provisions hereof and shall
have no force or effect.  This Agreement may not be amended or
modified otherwise than by a written agreement executed by the parties hereto or
their respective successors and legal representatives.

     

    (b) All
notices and other communications hereunder shall be in writing and shall be
given by hand delivery to the other party or by registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

     

    If to the
Executive:

     

    Ronald A.
Malone

     

    To the
last address of Executive on record with the Company

     

    If to the
Company:

     

    Gentiva
Health Services, Inc.

    3
Huntington Quadrangle, 2S

    Melville,
NY 11747

     

    Attention:  Chairman,
Compensation Committee

     

    or to
such other address as either party shall have furnished to the other in writing
in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

     

    (c) The
invalidity or unenforceability of any provision of this Agreement shall, not
affect the validity or enforceability of any other provision of this
Agreement.

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    

     

    (d) The
Company may withhold from any amounts payable under this Agreement such Federal,
state or local taxes as shall be required to be withheld pursuant to any
applicable law or regulation.

     

    (e) The
Executive’s failure to insist upon strict compliance with any provision hereof
shall not be deemed to be a waiver of such provision or any other provision
thereof.

     

    (f) Any
dispute or controversy arising under or in connection with this Agreement shall
be resolved by binding arbitration.  This arbitration shall be held in
New York City and except to the extent inconsistent with this Agreement, shall
be conducted in accordance with the Expedited Employment Arbitration Rules of
the American Arbitration Association then in effect at the time of the
arbitration, and otherwise in accordance with principles which would be applied
by a court of law or equity.  The Executive and the Company shall be
entitled to discovery in any such proceeding.  All fees, costs and
expenses of the arbitration, with the exception (other than as provided in
Section 6 above) of the Executive’s attorney’s fees, costs and expenses, shall
be borne by the Company.  The arbitrator shall be acceptable to both
the Company and the Executive.  If the parties cannot agree on an
acceptable arbitrator, the dispute shall he held by a panel of three
arbitrators, one appointed by each of the parties and the third appointed by the
other two arbitrators.  The arbitrator(s) shall not have the power to
commit substantive errors of law, legal reasoning or fact, shall set forth their
factual and legal reasoning in any award or determination, and any such award or
determination may be vacated or corrected as a result.

     

    (g) This
Agreement contains the entire understanding of the Company and the Executive
with respect to the subject matter hereof but, except as specifically provided
in Section 4 hereof does not supersede or override the provisions of (i) any
stock option, employee benefit or other plan, program, policy or practice in
which Executive is a participant or under which the Executive is a beneficiary,
or (ii) the Employment Agreement of even date herewith between the Executive and
the Company; provided, however, that this
Agreement does supersede and replace any prior severance agreement (but not the
Employment Agreement) and change in control agreements between the Company and
the Executive, including specifically all such agreements entered into by the
Executive and the Company as of March 14, 2000 and those entered into on June
14, 2002 and March 22, 2004.

     

    [Next
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    IN
WITNESS WHEREOF, the Executive has hereunto set his hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents
to be executed as of the day and year first above written.

     

    
      	By: 
      /s/ Ronald A. Malone        
	
                     
      Name:  Ronald A. Malone

                     
      Title:    Chief Executive Officer and

                                  
      Chairman of the Board

            
	 
      
	 
	 
	
              GENTIVA
      HEALTH SERVICES, INC.

            
	 
	
              By: 
      /s/ Stuart R. Levine        

                     
      Name:  Stuart R. Levine

                     
      Title:    Chair, Compensation
  Committee

            

    

    

     

     

     

    -13-

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