Document:

Form of Agreement for Restricted Stock Unit Award

 Exhibit 10.1 

 

 

 RESTRICTED STOCK UNIT AWARD 
 Award Number: 
  

					
	Award Date	 	Number of Units	 	Final Vesting Date

 THIS CERTIFIES THAT
UnitedHealth Group Incorporated (the “Company”) has on the Award Date specified above granted to 

«Name» 

(“Participant”) an award (the “Award”) to receive that number of restricted stock units (the “Restricted Stock Units”)
indicated above in the box labeled “Number of Units,” each Restricted Stock Unit representing the right to receive one share of UnitedHealth Group Incorporated Common Stock, $.01 par value per share (the “Common Stock”), subject
to certain restrictions and on the terms and conditions contained in this Award and the UnitedHealth Group Incorporated 2002 Stock Incentive Plan (the “Plan”). A copy of the Plan is available upon request. In the event of any conflict
between the terms of the Plan and this Award, the terms of the Plan shall govern. Any terms not defined herein shall have the meaning set forth in the Plan. 
 * * * * * 
 1. Rights of the Participant with Respect to the Restricted Stock Units.

 (a) No Shareholder Rights. The Restricted Stock Units granted pursuant to this Award do not and shall
not entitle Participant to any rights of a shareholder of Common Stock, except as provided below. The rights of Participant with respect to the Restricted Stock Units shall remain forfeitable at all times prior to the date on which such rights
become vested, and the restrictions with respect to the Restricted Stock Units lapse, in accordance with Section 2, 3 or 4. 
 (b) Conversion of Restricted Stock Units; Issuance of Common Stock. No shares of Common Stock shall be issued to Participant prior to the date on which the Restricted Stock Units vest, and the
restrictions with respect to the Restricted Stock Units lapse, in accordance with Section 2, 3 or 4. Neither this Section 1(b) nor any action taken pursuant to or in accordance with this Section 1(b) shall be construed to create a
trust of any kind. After any Restricted Stock Units vest pursuant to Section 2, 3 or 4, the Company shall promptly cause to be issued shares of Common Stock to Participant or in the name of Participant’s legal representatives,
beneficiaries or heirs, as the case may be, in payment of such vested whole 

 
Restricted Stock Units, at the times provided in Section 2, 3 or 4, as applicable, unless such payment is deferred in accordance with the terms and conditions of the Company’s
non-qualified compensation deferral plans. 
 (c) Dividends. If a cash dividend is declared and paid by
the Company with respect to the Common Stock, the Participant shall be credited as of the applicable dividend payment date with an additional number of whole and/or fractional Restricted Stock Units (the “Dividend Units”) equal to
(A) the total cash dividend the Participant would have received had the Participant’s Restricted Stock Units (and any previously credited Dividend Units with respect thereto) been actual shares of Common Stock, divided by (B) the
Fair Market Value of a share of Common Stock as of the applicable dividend payment date. As of each vesting date pursuant to Sections 2, 3 or 4, the number of Dividend Units paid on the Restricted Stock Units vesting on such vesting date shall
become vested, earned and payable in the form of shares of Common Stock; provided, however, that any vested Dividend Units not converted into a whole share of Common Stock may be converted into a fractional Dividend Unit, cash or carried forward to
a future vesting date in accordance with the rules and regulations of agent selected by the Committee to administer the Plan. To the extent a Participant’s rights to any unvested Restricted Stock Units are forfeited, the Dividend Units paid on
such forfeited Restricted Stock Units shall also be forfeited. The terms of this Award certificate shall apply to all Dividend Units paid on the Restricted Stock Units. 
 2. Vesting. Subject to the terms and conditions of this Award,         % of the Restricted Stock Units shall vest, and the restrictions with
respect to the Restricted Stock Units shall lapse, on each of the
                                        
of the Award Date if Participant remains continuously employed by the Company until the respective vesting dates. Any Restricted Stock Units that vest pursuant to this Section 2 shall be paid to Participant not later than seventy four
(74) days after the applicable vesting date. 
 3. Early Vesting On Certain Terminations On or After Change in Control.
Notwithstanding the other vesting provisions contained in Section 2 and Section 4, but subject to the other terms and conditions set forth herein, all of the Restricted Stock Units shall become immediately and unconditionally vested if, on
or within two years after the effective date of a Change in Control, the Participant ceases to be an employee of the Company or any Affiliate as a result of a termination of employment (i) by the Participant for Good Reason, (ii) by the
Company or any Affiliate without Cause, (iii) at a time when Participant is eligible for Retirement (as defined below), (iv) due to Participant’s failure to return to work as the result of a permanent long-term disability which
renders Participant incapable of performing his or her duties as determined under the provisions of the Company’s long-term disability insurance program applicable to Participant, or (v) in the circumstances described in Section 4(c).
Any Restricted Stock Units that vest pursuant to this Section 3 shall be paid to Participant in a lump sum within thirty (30) days after the date of such Separation from Service. For purposes of this Award: 

(a) “Change in Control” shall mean the sale of all or substantially all of the Company’s assets or any
merger, reorganization, or exchange or tender offer which, in each case, will result in a change in the power to elect 50% or more of the members of the Board of Directors of the Company; provided, however, that such a sale, merger or other event
must also constitute either (i) a “change in the ownership” of the Company within the meaning of Treasury Regulation 1.409A-3(i)(5)(v), (ii) a “change in the effective control” of the Company within the meaning of
Treasury Regulation 1.409A-3(i)(5)(vi)(A)(1) (replacing “30 percent” with “50 percent” as used in such regulation), or (iii) a change “in the ownership of a substantial portion of the assets” of the Company within
the meaning of Treasury Regulation 1.409A-3(i)(5)(vii). 

  
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 (b) “Cause” shall mean Participant’s (a) material
failure to follow the Company’s reasonable direction or to perform any duties reasonably required on material matters, (b) material violation of, or failure to act upon or report known or suspected violations of, the Company’s
Principles of Ethics and Integrity, as may be amended from time to time, (c) conviction of any felony, (d) commission of any criminal, fraudulent, or dishonest act in connection with Participant’s employment, or (e) material
breach of any employment agreement between Participant and the Company or any Affiliate, if any. The Company will, within 90 days of discovery of the conduct, give Participant written notice specifying the conduct constituting Cause in reasonable
detail and Participant will have 60 days to remedy such conduct, if such conduct is reasonably capable of being remedied. In any instance where the Company may have grounds for Cause, failure by the Company to provide written notice of the grounds
for Cause within 90 days of discovery shall be a waiver of its right to assert the subject conduct as a basis for termination for Cause. 
 (c) “Good Reason” shall mean the occurrence of any of the following without Participant’s written consent, in each case, when compared to the arrangements in effect immediately prior to the
Change in Control: 
  

	 	(i)	any reduction in Participant’s base salary or a significant reduction in Participant’s total compensation; 

 

	 	(ii)	a reduction in Participant’s annual or long-term incentive opportunities; 

 

	 	(iii)	a diminution in Participant’s duties, responsibilities or authority; 

  

	 	(iv)	a significant diminution in the budget over which the Participant retains authority; 

 

	 	(v)	a change in Participant’s reporting relationship; or 

  

	 	(vi)	a relocation of more than 25 miles from Participant’s primary office location. 

  
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 Participant will, within 90 days of discovery of such circumstances, give the Company
written notice specifying the circumstances constituting Good Reason in reasonable detail; provided however that this notice period shall be shortened or waived to the extent necessary if compliance with the notice period would cause the termination
for Good Reason to occur following the second anniversary of the effective date of the Change in Control. Except as contemplated by the preceding sentence, in any instance where Participant may have grounds for Good Reason, failure by Participant to
provide written notice of the grounds for Good Reason within 90 days of discovery shall be a waiver of Participant’s right to assert the subject circumstance as a basis for termination for Good Reason. 

(d) “Separation from Service” shall mean when Participant dies, retires, or otherwise has a termination of
employment with the Company that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder. 

(e) Section 409A - Possible Acceleration of Payment. The Committee may provide for payment of the outstanding
Restricted Stock Units in accordance with the requirements of Treasury Regulation 1.409A-3(j)(4)(ix)(A), (B) or (C) promulgated under Section 409A of the Code (or any similar successor provision), which regulation generally provides
that a deferred compensation arrangement may be terminated in limited circumstances following a dissolution or change in control of the Company. If the outstanding Restricted Stock Units are to be so terminated, they shall be deemed fully vested
upon such termination. Notwithstanding anything in the Plan or any other agreement to the contrary, there is no discretion to change the time of payment of the Restricted Stock Units (in connection with a Change in Control, similar event, or
otherwise) except as expressly provided in this Section 3 or as otherwise permitted under, and would not result in any tax, penalty or interest under, Section 409A of the Code. 

(f) Section 409A - Possible Six-Month Delay in Payment. Notwithstanding any provision of this Award
certificate to the contrary, if payment of the Restricted Stock Units is triggered by Participant’s Separation from Service as provided in this Section 3 and, as of the date of such Separation from Service, Participant is a “specified
employee” (within the meaning of Section 409A of the Code and determined pursuant to procedures adopted by the Company), Participant shall not be entitled to such payment of the Restricted Stock Units until the earlier of (i) the date
which is six (6) months after Participant’s Separation from Service for any reason other than death, or (ii) the date of Participant’s death. Any amounts otherwise payable to Participant upon or in the six (6) month period
following Participant’s Separation from Service that are not so paid by reason of this Section 3(f) shall be paid (without interest) as soon as practicable (and in all events within thirty (30) days) after the date that is
six (6) months after Participant’s Separation from Service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after the date of Participant’s death). The provisions of this Section 3(f) shall only
apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of the Code. 

  
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 4. Termination of Employment. 

(a) Termination of Employment Generally. Except as expressly provided in Section 3 or this Section 4, if,
prior to vesting of the Restricted Stock Units pursuant to Section 2, Participant ceases to be an employee of the Company or any Affiliate for any reason (voluntary or involuntary), and does not continue after such cessation of service to be
either an employee of the Company or any Affiliate, then Participant’s rights to all of the unvested Restricted Stock Units shall be immediately and irrevocably forfeited on the date of termination. 

(b) Death. If Participant dies while employed by the Company or any Affiliate, then all unvested Restricted Stock
Units shall become immediately vested, and the restrictions with respect to all of the Restricted Stock Units shall lapse, as of the date of such death. Any Restricted Stock Units that vest pursuant to this Section 4(b) shall be paid to
Participant’s estate not later than 90 days after the date of such death. 
 (c) Severance. If
Participant’s employment with the Company or any Affiliate terminates at a time when Participant is not eligible for Retirement (and other than due to Participant’s death or permanent long-term disability) and, in the circumstances,
Participant is entitled to severance or separation pay, the following provisions of this Section 4(c) will apply. If Participant is entitled to severance under the Company’s severance pay plan as in effect on the date hereof, then the
Restricted Stock Units shall continue to vest, and the restrictions with respect to the Restricted Stock Units shall continue to lapse, for the period of such severance that Participant is eligible to receive. If Participant is entitled to severance
under an employment agreement entered into with the Company, then vesting of the Restricted Stock Units, and lapsing of their restrictions, shall continue for the period of such severance that Participant would be entitled to receive under that
agreement as of the date hereof. If Participant is entitled to separation pay other than under the Company’s severance pay plan or an employment agreement, then vesting of the Restricted Stock Units, and lapsing of their restrictions, shall
continue for the lesser of (i) the period Participant would have received payments under the severance pay plan as in effect on the date hereof, had Participant been eligible for such payments or (ii) the period of separation pay. In any
case, should Participant’s severance or separation pay be paid in a lump sum versus bi-weekly payments, the Restricted Stock Units shall continue to vest for the period of time in which severance or separation pay would have been paid had it
been paid bi-weekly. Any Restricted Stock Units that vest pursuant to this Section 4(c) shall be paid to Participant not later than seventy four (74) days after the applicable vesting date of the Restricted Stock Units under the original
vesting schedule set forth in Section 2. For avoidance of doubt, any Restricted Stock Units that are unvested on the date of termination of Participant’s employment and do not vest under the schedule set forth in Section 2 during the
applicable severance or separation pay period identified above in this Section 4(c) shall be forfeited. 

  
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 (d) Retirement or Permanent Long-Term Disability. If Participant
ceases to be an employee of the Company or any Affiliate and either (i) Participant is eligible for Retirement at the time of such termination of employment or (ii) Participant’s employment terminates due to Participant’s failure
to return to work as the result of a permanent long-term disability which renders Participant incapable of performing his or her duties as determined under the provisions of the Company’s long-term disability insurance program applicable to
Participant, then the vesting of the Restricted Stock Units shall continue as if such termination of employment had not occurred, subject to provisions set out in the section entitled “Forfeiture of Restricted Stock Units and Shares of Common
Stock” below. Any Restricted Stock Units that vest pursuant to this Section 4(d) shall be paid to Participant not later than seventy four (74) days after the applicable vesting date of the Restricted Stock Units under the original
vesting schedule set forth in Section 2. 
 (e) For purposes of this Award, “Retirement” means the
termination of employment of a Participant who is age 55 or older with at least ten years of Recognized Employment with the Company or any Affiliate other than by reason of (i) death or permanent long-term disability or (ii) a termination
by the Company for Cause. 
 For purposes of this Award, “Recognized Employment” shall include only
employment since the Participant’s most recent date of hire by the Company or any Affiliate, and shall not include employment with a company acquired by the Company or any Affiliate before the date of such acquisition. 

5. Restriction on Transfer. Participant may not transfer the Restricted Stock Units except by will or by the laws of descent and distribution
or pursuant to a qualified domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act or the rules promulgated thereunder. Any attempt to otherwise transfer the Restricted Stock Units shall be void.

 6. Special Restriction on Transfer for Certain Participants. If Participant is an officer of the Company within
the meaning of Section 16 of the Securities Exchange Act of 1934 and Rule 16a-1 issued thereunder, as such status is reasonably determined from time to time by the Board of Directors of the Company (a “Section 16 Officer”), at any
time that shares of Common Stock are issued upon the vesting of Restricted Stock Units and the Company has theretofore communicated Participant’s status as a Section 16 Officer to Participant, the following special transfer restrictions
apply to Participant’s Award. One third
( 1/3) of the net number of any shares of
Common Stock issued to Participant upon the vesting of Restricted Stock Units at a time when Participant is a Section 16 Officer (including any shares of Common Stock or other securities into which such shares may be converted or exchanged as a
result of any adjustment made pursuant to this Award or 

  
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Section 7 of the Plan) must be retained, and may not be sold or otherwise transferred, for a period of at least one year following the applicable vesting date. For purposes of this Award,
the “net number of any shares of Common Stock issued” shall mean the number of shares issued upon vesting of Restricted Stock Units after reduction for any shares of Common Stock withheld by or tendered to the Company, or sold on the
market, to cover any federal, state, local or other payroll, withholding, income or other applicable tax withholding required in connection with the issuance of the shares. The restrictions of this Section 6 are in addition to, and not in lieu
of, the restrictions imposed under other Company policies and applicable laws. 
 7. Forfeiture of Restricted Stock Units and Shares of
Common Stock. This section sets forth circumstances under which Participant shall forfeit all or a portion of the Restricted Stock Units, or be required to repay the Company for the value realized in respect of all or a portion of the Restricted
Stock Units. 
 (a) Violation of Restrictive Covenants. If Participant violates any provision of the
Restrictive Covenants set forth in Section 8 below, then any unvested Restricted Stock Units shall be immediately and irrevocably forfeited without any payment therefor. In addition, for any Restricted Stock Units that vested within one year
prior to Participant’s termination of employment with the Company or any Affiliate or at any time after such termination of employment, the Participant shall be required, upon demand, to repay or otherwise reimburse the Company (including by
forfeiting any deferred compensation credits in respect of such Restricted Stock Units under the Company’s non-qualified compensation deferral plans) an amount having a value equal to the aggregate Fair Market Value of the shares of Common
Stock underlying such Restricted Stock Units on the date the Restricted Stock Units became vested. 
 (b)
Fraud. If the Board determines that Participant has engaged in fraud that, in whole or in part, caused the need for a material restatement of the Company’s consolidated financial statements, then any Restricted Stock Units that have not
yet been settled in shares of Common Stock (including any deferred compensation credits under the Company’s non-qualified compensation deferral plans in respect of Restricted Stock Units that have previously become vested) shall be immediately
and irrevocably forfeited without any payment therefore. In addition, for any Restricted Stock Units that became vested during the 12-month period following the first public issuance or filing with the Securities Exchange Commission (whichever
occurs first) of the incorrect financial statements, Participant shall be required, upon demand, to repay or otherwise reimburse the Company (including by forfeiting any deferred compensation credits in respect of such Restricted Stock Units under
the Company’s non-qualified compensation deferral plans) an amount having a value equal to the aggregate Fair Market Value of the shares of Common Stock underlying such Restricted Stock Units on the date the Restricted Stock Units became
vested. 
 (c) In General. This section does not constitute the Company’s exclusive remedy for
Participant’s violation of the Restrictive Covenants or commission of fraudulent conduct. The Company may seek any additional legal or equitable 

  
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remedy, including injunctive relief, for any such violations. The provisions in this section are essential economic conditions to the Company’s grant of Restricted Stock Units to
Participant. By receiving the grant of Restricted Stock Units hereunder, Participant agrees that the Company may deduct from any amounts it owes Participant from time to time (such as wages or other compensation, deferred compensation credits,
vacation pay, any severance or other payments owed following a termination of employment, as well as any other amounts owed to the Participant by the Company) to the extent of any amounts Participant owes the Company under this section. The
provisions of this section and any amounts repayable by Participant hereunder are intended to be in addition to any rights to repayment the Company may have under Section 304 of the Sarbanes-Oxley Act of 2002 and other applicable law.

 8. Restrictive Covenants. In consideration of the terms of this Award and Participant’s access to Confidential Information,
Participant agrees to the Restrictive Covenants set forth below. For purposes of the Restrictive Covenants, the “Company” means UnitedHealth Group and all of its subsidiaries and other affiliates. 

(a) Confidential Information. Participant has or will be given access to and provided with sensitive, confidential,
proprietary and/or trade secret information (collectively, “Confidential Information”) in the course of Participant’s employment. Examples of Confidential Information include inventions, new product or marketing plans, business
strategies and plans, merger and acquisition targets, financial and pricing information, computer programs, source codes, models and data bases, analytical models, customer lists and information, and supplier and vendor lists and information.
Participant agrees not to disclose or use Confidential Information, either during or after Participant’s employment with the Company, except as necessary to perform Participant’s duties or as the Company may consent in writing. 

(b) Non-Solicitation. During Participant’s employment and for two years after the later of (i) the
termination of Participant’s employment for any reason whatsoever or (ii) the last scheduled vesting date under Section 4, Participant may not, without the Company’s prior written consent, directly or indirectly, for Participant
or for any other person or entity, as agent, employee, officer, director, consultant, owner, principal, partner or shareholder, or in any other individual or representative capacity: 

 

	 	(i)	Solicit any business competitive with the Company from any person or entity who (a) was a Company provider or customer within the 12 months before
Participant’s employment termination and with whom Participant had contact to further the Company’s business, or for whom Participant provided services or supervised employees who provided those services, or (b) was a prospective
provider or customer the Company solicited within the 12 months before Participant’s employment termination and with whom Participant had contact for the purposes of soliciting the person or entity to become a provider or customer of the
Company, or supervised employees who had those contacts. 

  
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	 	(ii)	Hire, employ, recruit or solicit any Company employee or consultant. 

  

	 	(iii)	Induce or influence any Company employee, consultant, or provider to terminate his, her or its employment or other relationship with the Company.

  

	 	(iv)	Assist anyone in any of the activities listed above. 

 (c) Non-Competition. During Participant’s employment and for one year after the later of (i) the termination of Participant’s employment for any reason whatsoever or
(ii) the last scheduled vesting date under Section 4, Participant may not, without the Company’s prior written consent, directly or indirectly, for Participant or for any other person or entity, as agent, employee, officer, director,
consultant, owner, principal, partner or shareholder, or in any other individual or representative capacity: 
  

	 	(i)	Engage in or participate in any activity that competes, directly or indirectly, with any Company product or service that Participant engaged in, participated in, or had
Confidential Information about during Participant’s employment. 

  

	 	(ii)	Assist anyone in any of the activities listed above. 

 (d) Because the Company’s business competes on a nationwide basis, the Participant’s obligations under this “Restrictive Covenants” section shall apply on a nationwide basis anywhere
in the United States. 
 (e) To the extent Participant and the Company agree at any time to enter into separate
agreements containing restrictive covenants with different or inconsistent terms than those contained herein, Participant and the Company acknowledge and agree that such different or inconsistent terms shall not in any way affect or have relevance
to the Restrictive Covenants contained herein. 
 By accepting this Restricted Stock Unit Award, Participant agrees that the
provisions of this Restrictive Covenants section are reasonable and necessary to protect the legitimate interests of the Company. 

9. Adjustments to Restricted Stock Units. In the event that any dividend or other distribution (whether in the form of cash, shares of Common
Stock, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Common Stock or other securities of the Company or
other similar corporate transaction or event affecting the Common Stock would be reasonably likely to result in the diminution or enlargement of any of the benefits or potential benefits intended to be made available

  
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under the Award (including, without limitation, the benefits or potential benefits of provisions relating to the vesting of the Restricted Stock Units), the Committee shall, in such manner as it
shall deem equitable or appropriate in order to prevent such diminution or enlargement of any such benefits or potential benefits, make adjustments to the Award, including adjustments in the number and type of shares of Common Stock Participant
would have received upon vesting of the Restricted Stock Units. 
 10. Tax Matters. 

(a) In order to comply with all applicable federal, state and local tax laws or regulations, the Company may take
such action as it deems appropriate to ensure that all applicable federal, state and local payroll, withholding, income or other taxes, which are the sole and absolute responsibility of Participant, are withheld or collected from Participant.

 (b) On each applicable vesting date, Participant will be deemed to have elected to satisfy Participant’s
minimum required federal, state, and local payroll, withholding, income or other tax withholding obligations arising from the receipt of shares or the lapse of restrictions relating to the Restricted Stock Units, by having the Company withhold a
portion of the shares of Common Stock otherwise to be delivered having a Fair Market Value equal to the amount of such taxes (but only to the extent of the minimum amount required to be withheld under applicable laws or regulations), unless, on or
before the applicable vesting date, Participant notifies the Company that Participant has elected, and makes appropriate arrangements, to deliver cash, check (bank check, certified check or personal check) or money order payable to the Company.

  

	11.	Miscellaneous. 

 (a) This Award does not confer on Participant any right with respect to the continuance of any relationship with the Company or any Affiliate, nor will it interfere in any way with the right of the
Company to terminate such relationship at any time. 
 (b) Neither the Plan nor this Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and Participant or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any
Affiliate pursuant to an Award, such right shall be no greater than the right of any unsecured creditor of the Company or any Affiliate. 
 (c) The Company shall not be required to deliver any shares of Common Stock upon the vesting of any Restricted Stock Units until the requirements of any federal or state securities laws, rules or
regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable have been and continue to be satisfied (including an effective registration of the shares under federal and
state securities laws). 

  
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 (d) An original record of this Award and all the terms hereof, executed
by the Company, is held on file by the Company. To the extent there is any conflict between the terms contained in this Award and the terms contained in the original held by the Company, the terms of the original held by the Company shall control.

 (e) If a court or arbitrator decides that any provision of this Award is invalid or overbroad, Participant
agrees that the court or arbitrator should narrow such provision so that it is enforceable or, if narrowing is not possible or permissible, such provision should be considered severed and the other provisions of this Award should be unaffected.

 (f) Participant agrees that (i) legal remedies (money damages) for any breach of the Restrictive
Covenants in Section 8 will be inadequate, (ii) the Company will suffer immediate and irreparable harm from any such breach, and (iii) the Company will be entitled to injunctive relief from a court in addition to any legal remedies
the Company may seek in arbitration. 
 (g) The Restrictive Covenants in this Award and the provisions regarding
the forfeiture of Restricted Stock Units and shares of Common Stock shall survive termination of the Restricted Stock Units. 
 (h) The validity, construction and effect of this Award and any rules and regulations relating to this Award shall be determined in accordance with the laws of the State of Minnesota (without regard to
its conflict of law principles). 
 (i) It is intended that any amounts payable under this Award shall either be
exempt from or comply with Section 409A of the Code (including the Treasury regulations and other published guidance relating thereto) so as not to subject Participant to payment of any additional tax, penalty or interest imposed under
Section 409A of the Code. The provisions of this Award certificate shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Section 409A of the Code yet preserve (to the nearest
extent reasonably possible) the intended benefit payable to Participant. 

  
 11Employment Agreement

 Exhibit 10.17 
 Employment Agreement 
 This Employment Agreement dated as of
April 1, 2010 (the “Agreement”), is made by and between Skilled Healthcare, LLC, a Delaware limited liability company (together with its Parent and any successor thereto, the “Company”) and Matthew Moore (the
“Executive”). 
 RECITALS 

 

	A.	It is the desire of the Company to assure itself of the continued services of the Executive by entering into this Agreement. 

 

	B.	The Executive and the Company mutually desire that Executive provide services to the Company on the terms herein provided. 

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and agreements set forth below the parties hereto agree
as follows: 
  

	1.	Employment. 

  

	 	(a)	General. The Company shall employ the Executive and the Executive shall enter the employ of the Company, for the period set forth in Section 1(b), in
the position set forth in Section 1(c), and upon the other terms and conditions herein provided. 

  

	 	(b)	Employment Term. The initial term of employment under this Agreement (the “Initial Term”) shall be for the period beginning on April 1,
2010, (the “Effective Date”) and ending on (and including) the first anniversary thereof, unless earlier terminated as provided in Section 3. The employment term hereunder shall automatically be extended for successive
one-year periods (“Extension Terms” and, collectively with the Initial Term, the “Term”) unless either party gives written notice of non-extension to the other no later than sixty (60) days prior to the
expiration of the then-applicable Term and subject to earlier termination as provided in Section 3. 

  

	 	(c)	 Position and Duties. The Executive shall serve as Executive Vice President of Inpatient Services with such customary responsibilities, duties
and authority as may from time to time be assigned to the Executive by the Chief Operating Officer of the Company, the Chief Executive Officer of the Company, the Board of Directors of the Company or by the Board of Directors of Parent (the
“Board”). The Executive shall devote substantially all his working time and efforts to the business and affairs of the Company (which may include service to the Company, its parent, Skilled Healthcare Group, Inc. (the
“Parent”), and their respective direct and indirect subsidiaries). The Executive agrees to observe and comply with the rules and policies of the Company as adopted by or under the authority of the Board from time to time. During the
Term, it shall not be a violation of this Agreement for the Executive to serve on industry trade, civic or charitable boards or committees and manage his personal investments and affairs, as long as such activities do not materially interfere with
the performance of the Executive’s duties and responsibilities as an employee of the Company. During his employment and following 

	 	 
termination of his employment with the Company, the Executive agrees not to disparage the Company, any of its products or practices, or any of its directors, officers, agents, representatives,
stockholders or affiliates, either orally or in writing. 

  

	 	(d)	Location. The Executive acknowledges that the Company’s principal executive offices are currently located at Foothill Ranch, California. The Executive shall
operate principally out of such executive offices, as they may be moved from time to time within 40 miles of their current location in Foothill Ranch, California. The Company expects, and the Executive agrees, that the Executive shall relocate from
Spring Hill, Kansas to Southern California as soon as reasonably practicable following the Effective Date. In addition, the Executive agrees that he shall be required to travel from time to time in order to fulfill his duties to the Company.

  

	2.	Compensation and Related Matters. 

  

	 	(a)	Annual Base Salary. During the Term, the Executive shall receive a base salary at a rate of $300,000 per annum (the “Annual Base Salary”), which
shall be paid in accordance with the customary payroll practices of the Company. The Annual Base Salary will be reviewed from time to time in accordance with the established procedures of the Company for adjusting salaries for similarly situated
employees and may be adjusted in the sole discretion of the Company. 

  

	 	(b)	Annual Bonus. During the Term, the Executive will be eligible to participate in an annual performance-based bonus plan that provides an opportunity of 50% of the
Executive’s pro-rata Annual Base Salary on terms established by the Compensation Committee of the Board and substantially the same as the bonus plan adopted by the Board for other senior officers of the Company. A copy of Executive’s
current Executive Bonus Program is attached hereto as Exhibit A. 

  

	 	(c)	Relocation Bonus. In connection with Executive’s relocation from Spring Hill, Kansas to Southern California, the Company agrees to pay Executive a one-time
lump sum cash payment in the amount of $150,000 (the “Relocation Bonus”) payable by the Company to Executive concurrent with the close of escrow on the purchase by Executive of a residence located reasonably near the Company’s
Foothill Ranch, California offices. The Relocation Bonus shall be reduced by any tax or other amounts required to be withheld by the Company under applicable law. In the event Executive’s employment with the Company terminates as a result of a
termination by the Company for Cause (pursuant to Section 3(a)(iii)) or resignation by the Executive (pursuant to Section 3(a)(v)) at any time during the first four years of the Term, the Executive shall be required to return
a portion of the Relocation Bonus equal to the net after-tax amount of the Relocation Bonus (after application of all refunds and credits as a result of such repayment) multiplied by the difference of one minus a fraction, the numerator of which is
the number of completed months since the Effective Date and the denominator of which is 48. Such amount shall be returned to the Company no later than thirty (30) days following the Date of Termination. 

  

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 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

	 	(d)	Relocation Compensation. The Company shall reimburse Executive for reasonable relocation expenses actually incurred by Executive prior to Executive’s
relocation, including (i) reasonable travel costs for Executive and his spouse between the Executive’s current residence and the Company’s Foothill Ranch, California offices for the primary purpose of relocation; (ii) reasonable
hotel and/or temporary housing costs for the Executive’s use when he is in California for a period not to exceed three (3) months from the Effective Date; and (iii) reasonable costs for the movement of personal effects and household
goods, all as mutually agreed to by the Executive and the Company. The Company shall gross up for tax purposes any deemed income arising pursuant to the payment or benefits provided under this Section 2(d), so that the economic benefit
is the same to the Executive as if such payment or benefits were provided on a non-taxable basis to the Executive. All amounts payable under this Section 2(d) shall be subject to the Executive’s delivery to the Company of
appropriate documentation. 

  

	 	(e)	Equity Plan. During the Term, and subject to Board approval, the Executive shall be entitled to participate in the 2007 Equity Award Plan (the “Equity
Plan”) of Parent pursuant to which, on the date the Board selects as the grant date (the “Grant Date”), the Executive shall receive (i) stock options valued at $50,000 on the Grant Date, vesting as to 25% on each of
the first four anniversaries of the Grant Date, but only to the extent the Executive remains continuously employed by the Company through the applicable vesting date; and (ii) performance-vested restricted stock in amounts valued at $20,450 on
the Grant Date, with vesting to occur over four years subject to the performance standards and only to the extent the Executive remains continuously employed by the Company through the applicable vesting date. Any awards made to Executive under the
Equity Plan shall be subject to approval by the Compensation Committee of the Board and shall be granted in accordance with the Company’s equity granting practices applicable to similarly situated employees within the Company, based on
responsibilities, authority and title, and subject to adjustment for Executive’s personal performance. 

  

	 	(f)	Benefits. During the Term, the Executive shall be entitled to participate in group medical insurance, and other standard benefits provided by the Company, as may
be amended from time to time, which are applicable to other senior officers of the Company. 

  

	 	(g)	Paid Time Off. During the Term, the Executive shall not participate in any Company sponsored vacation plan; however the Executive will be expected to work a
minimum of 48 weeks per calendar year, which will allow four weeks off with pay. The minimum work threshold is tied to the calendar year and no rollover is permitted from one year to the next. Any paid time off shall be taken at the reasonable and
mutual convenience of the Company and the Executive. 

  

	 	(h)	Expenses. During the Term, the Company shall reimburse the Executive for all reasonable travel and other business expenses incurred by him in the performance of
his duties to the Company in accordance with the Company’s expense reimbursement policy. 

  

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 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

	 	(i)	Key Person Insurance. At any time during the Term, the Company shall have the right to insure the life of the Executive for the Company’s sole benefit. The
Company shall have the right to determine the amount of insurance and the type of policy. The Executive shall cooperate with the Company in obtaining such insurance by submitting to physical examinations, by supplying all information reasonably
required by any insurance carrier, and by executing all necessary documents reasonably required by any insurance carrier. The Executive shall incur no financial obligation by executing any required document, and shall have no interest in any such
policy. 

  

	3.	Termination. 

 The
Term and the Executive’s employment hereunder may be terminated by the Company or the Executive, as applicable, without any breach of this Agreement only under the following circumstances: 

 

	 	(a)	Circumstances. 

  

	 	(i)	Death. The Term and the Executive’s employment hereunder shall terminate upon his death. 

 

	 	(ii)	Disability. If the Executive has incurred a Disability, the Company may terminate the Term and the Executive’s employment hereunder.

  

	 	(iii)	Termination for Cause. The Company may terminate the Term and the Executive’s employment hereunder for Cause. 

 

	 	(iv)	Termination without Cause. The Company may terminate the Term and the Executive’s employment hereunder without Cause. 

 

	 	(v)	Resignation by the Executive. The Executive may resign his employment and terminate the Term for any reason. 

 

	 	(vi)	Non-extension of Term by the Company. The Company may give notice of non-extension to the Executive pursuant to Section 1(b).

  

	 	(vii)	Non-extension of Term by the Executive. The Executive may give notice of non-extension to the Company pursuant to Section 1(b).

  

	 	(b)	Notice of Termination. Any termination of the Executive’s employment by the Company or by the Executive under this Section 3 (other than
termination pursuant to paragraph (a)(i)) shall be communicated by a written notice to the other party indicating the specific termination provision in this Agreement relied upon, and specifying a Date of Termination which, if submitted by the
Executive, shall be at least two weeks following the date of such notice (a “Notice of Termination”). A Notice of Termination submitted by the Company may provide for a Date of Termination on the date the Executive receives the
Notice of Termination, or any date thereafter elected by the Company in its sole discretion. 

  

	 	(c)	 Company obligations upon termination. Upon termination of the Executive’s employment, the Executive (or the Executive’s estate) shall
be entitled to receive the sum of the Executive’s Annual Base Salary through the Date of 

  

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 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

	 	 
Termination not theretofore paid, any expenses owed to the Executive under Section 2(h), and except as otherwise provided herein, any amount accrued and arising from the
Executive’s participation in, or benefits accrued under any employee benefit plans, programs or arrangements under Section 2(f), which amounts shall be payable in accordance with the terms and conditions of such employee benefit
plans, programs or arrangements, and such other or additional benefits as may be, or become, due to him under the applicable terms of applicable plans, programs, agreements, corporate governance documents and other arrangements of the Company and
its parent and subsidiaries (collectively, the “Company Arrangements”). 

  

	4.	Severance Payments. 

  

	 	(a)	 Termination for Cause, Resignation by the Executive, Non-extension of Term by the Executive or the Company, death or Disability. If the
Executive’s employment is terminated pursuant to Section 3(a)(iii) for Cause, pursuant to Section 3(a)(v) for Resignation by the Executive, or pursuant to Section 3(a)(vii) due to non-extension of the Term by
the Executive, the Executive shall not be entitled to any severance payment or benefits. If the Executive’s employment is terminated pursuant to Section 3(a)(i) as a result of Executive’s death or pursuant to
Section 3(a)(ii) as a result of the Executive’s Disability, the Company shall, subject to the Executive signing and not revoking, within sixty (60) days following delivery to Executive, a separation and release agreement in the
form attached hereto as Exhibit B, (i) pay to the Executive an amount equal to the product of (x) the bonus that the Executive would have earned during the calendar year in which the Date of Termination occurs, if any, and
(y) a fraction, the numerator of which is the number of days that elapsed in such calendar year through the Date of Termination and the denominator of which is 365, payable when bonuses would have otherwise been payable had the Executive’s
employment not terminated and (ii) in the case of termination pursuant to Section 3(a)(ii) as a result of the Executive’s Disability, pay to the Executive an amount equal to the excess, if any, of (x) the amount that would
have been payable to the Executive pursuant to Section 4(b)(i) if the Executive had been terminated by the Company without Cause pursuant to Section 3(a)(iv) over (y) the present value of the benefits to be received by
the Executive (or his beneficiaries) under any disability plan sponsored by the Company or its affiliates (for purposes of this clause (ii) the amounts in (x) and (y) shall be determined by the Company on an after-tax basis to the
extent that their receipt by the Executive (or his beneficiaries) would be subject to tax and on actuarial assumptions satisfactory to the Company). If the Executive’s employment is terminated pursuant to Section 3(a)(vi) due to
non-extension of the Term by the Company, the Company shall, subject to the Executive signing and not revoking, within sixty (60) days following delivery to Executive, a separation and release agreement in the form attached hereto at
Exhibit B, (i) pay to the Executive an amount equal to the product of (x) the bonus that the Executive would have earned during the calendar year in which the Date of Termination occurs, if any, and (y) a fraction, the
numerator of which is the number of days that elapsed in such calendar year through the Date of Termination and the denominator of which is 365, payable when bonuses would have otherwise been payable had the Executive’s employment not
terminated and (ii) pay to the Executive, in a lump sum, an amount equal to the Annual Base Salary that the Executive would have been entitled to receive if the Executive had continued his

  

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 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

	 	 
employment hereunder for a period of twelve (12) months following the Date of Termination. 

  

	 	(b)	Termination without Cause. If the Executive’s employment shall be terminated by the Company without Cause pursuant to Section 3(a)(iv) the
Company shall, subject to the Executive signing and not revoking, within sixty (60) days following delivery to Executive, a separation and release agreement in the form attached hereto as Exhibit B: 

 

	 	(i)	pay to the Executive, in a lump sum, an amount equal to the Annual Base Salary that the Executive would have been entitled to receive if the Executive had continued his
employment hereunder for a period of twelve (12) months following the Date of Termination; 

  

	 	(ii)	pay to the Executive an amount equal to the product of (x) the bonus that the Executive would have earned during the calendar year in which the Date of Termination
occurs, if any, and (y) a fraction, the numerator of which is the number of days that elapsed in such calendar year through the Date of Termination and the denominator of which is 365, payable when bonuses would have otherwise been payable had
the Executive’s employment not terminated; and 

  

	 	(iii)	cover the premium costs for medical benefits under COBRA for the Executive and, where applicable, his spouse and dependents, life insurance and disability insurance
(all as in effect immediately prior to the Date of Termination) for a period of twelve (12) months following the Date of Termination. 

  

	 	(c)	Survival. The expiration or termination of the Term shall not impair the rights or obligations of any party hereto, which shall have accrued prior to such
expiration or termination. 

  

	 	(d)	409A. Notwithstanding anything to the contrary in this Section 4, no payments in this Section 4 will be paid during the six-month period
following the Executive’s termination of employment unless the Company determines, in its good faith judgment, that paying such amounts at the time or times indicated in this section would not cause the Executive to incur an additional tax
under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (in which case such amounts shall be paid at the time or times indicated in this section). If the payment of any amounts are delayed as a result
of the previous sentence, on the first day following the end of the six-month period, the Company will pay the Executive a lump-sum amount equal to the cumulative amounts that would have otherwise been previously paid to the Executive under this
Section 4. Thereafter, payments will resume in accordance with this section. 

  

	5.	Competition. 

  

	 	(a)	 The Executive shall not, at any time during the Term or during the one-year period following the Date of Termination, directly or indirectly engage in,
have any equity interest in, or manage or operate any person, firm, corporation, partnership or business (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise) that engages

  

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 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

	 	 
in any business (x) which competes with any business of the Company anywhere in the States of California, Iowa, Kansas, Missouri, Nevada, New Mexico or Texas, (y) which competes
with any business of the Company in any State in which the Company operated a facility at any time (whether before or after the date of this Agreement) that the Executive was employed by the Company or (z) which derives $500,000,000 or more in
annual consolidated revenues from the operation of skilled nursing facilities in the United States; provided, however, that the Executive shall be permitted to acquire a passive stock interest in such a business provided the stock
acquired is publicly traded and is not more than five percent (5%) of the outstanding interest in such business. 

  

	 	(b)	The Executive shall not at any time during the Term or during the two-year period following the Date of Termination, directly or indirectly, recruit or otherwise
solicit or induce or encourage any employee, contractor, customer or supplier of the Company (i) to terminate its employment or arrangement with the Company, (ii) to otherwise change its relationship with the Company or (iii) to
establish any relationship with the Executive or any other person, firm, corporation or other entity for any business purpose competitive with the business of the Company. Executive agrees that if Executive, individually or as a consultant to, or as
an employee, officer, director, stockholder, partner or other owner or participant in any business entity other than the Company, is directly involved in the hiring or employing of any person who is or was employed by, a consultant to or associated
with the Company within a one-year period prior to the new employment or hiring of such person, then for each such person, Executive shall pay to the Company a lump sum equal to six (6) months of that person’s most recent salary from the
Company, payable on the first date of that person’s new employment or hiring, whichever is first, plus the Company’s reasonable attorneys’ fees incurred in enforcement of this Section 5(b). The foregoing shall not be
construed to limit or modify in any way Executive’s non-solicitation covenants contained herein. 

  

	 	(c)	In the event the terms of this Section 5 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too
great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum
geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action. 

 

	 	(d)	As used in this Section 5, the term “Company” shall include Parent, the Company and their respective direct or indirect subsidiaries and
wholly owned companies. 

  

	6.	Nondisclosure of Proprietary Information. 

  

	 	(a)	 Except in connection with the faithful performance of the Executive’s duties hereunder or pursuant to Section 6(c), the Executive
shall, in perpetuity, maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for his benefit or the benefit of any person, firm, corporation or other entity any confidential or
proprietary information or trade secrets of or relating to the Company (including, without 

  

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 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

	 	 
limitation, intellectual property in the form of patents, trademarks and copyrights and applications therefor, ideas, inventions, works, discoveries, improvements, information, documents,
formulae, practices, processes, methods, developments, source code, modifications, technology, techniques, data, programs, other know-how or materials, owned, developed or possessed by the Company, whether in tangible or intangible form, information
with respect to the Company’s operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory
status, prospects and compensation paid to employees or other terms of employment), or deliver to any person, firm, corporation or other entity any document, record, notebook, computer program or similar repository of or containing any such
confidential or proprietary information or trade secrets. The parties hereby stipulate and agree that as between them the foregoing matters are important, material and confidential proprietary information and trade secrets and affect the successful
conduct of the businesses of the Company (and any successor or assignee of the Company). Confidential Information shall not include any information which has entered the public domain through no fault of the Executive. 

 

	 	(b)	Upon termination of the Executive’s employment with the Company for any reason, the Executive will promptly deliver to the Company all correspondence, drawings,
manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company’s customers, business plans, marketing strategies, products or processes. 

 

	 	(c)	The Executive may respond to a lawful and valid subpoena or other legal process but shall give the Company the earliest possible notice thereof, shall, as much in
advance of the return date as possible, make available to the Company and its counsel the documents and other information sought and shall assist such counsel at Company’s expense in resisting or otherwise responding to such process.

  

	 	(d)	As used in this Section 6 and Section 7, the term “Company” shall include the Company and its direct or indirect parents, if
any, and subsidiaries. 

  

	 	(e)	Nothing in this Agreement shall prohibit the Executive from (i) disclosing information and documents when required by law, subpoena or court order (subject to the
requirements of Section 6(c) above), (ii) disclosing information and documents to his attorney or tax adviser on a confidential basis for the purpose of securing legal or tax advice, (iii) disclosing the post-employment
restrictions in this Agreement in confidence to any potential new employer, or (iv) retaining, at any time, his personal correspondence, his personal rolodex and documents related to his own personal benefits, entitlements and obligations.

  

	7.	Inventions. 

 All
rights to discoveries, inventions, improvements and innovations (including all data and records pertaining thereto) related to the business of the Company, whether or not patentable, copyrightable, registrable as a trademark, or reduced to writing,
that the Executive may discover, invent or originate during the Term, either alone or with others and 

  

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 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

 
whether or not during working hours or by the use of the facilities of the Company (“Inventions”), shall be the exclusive property of the Company. The Executive shall promptly
disclose all Inventions to the Company, shall execute at the request of the Company any assignments or other documents the Company may deem reasonably necessary to protect or perfect its rights therein, and shall assist the Company, upon reasonable
request and at the Company’s expense, in obtaining, defending and enforcing the Company’s rights therein. The Executive hereby appoints the Company as his attorney-in-fact to execute on his behalf any assignments or other documents
reasonably deemed necessary by the Company to protect or perfect its rights to any Inventions. 
  

	8.	Injunctive Relief. 

It is recognized and acknowledged by the Executive that a breach of the covenants contained in Sections 5, 6 and 7 will cause
irreparable damage to Company and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any such breach will be inadequate. Accordingly, the Executive agrees that in the event of a
breach of any of the covenants contained in Sections 5, 6 and 7, in addition to any other remedy which may be available at law or in equity, the Company will be entitled to specific performance and temporary, preliminary and permanent
injunctive relief. 
  

	9.	Assignment and Successors. 

 The Company may assign its rights and obligations under this Agreement to any successor to all or substantially all of the business or the assets of the Company (by merger or otherwise), and may assign or
encumber this Agreement and its rights hereunder as security for indebtedness of the Company and its affiliates. This Agreement shall be binding upon and inure to the benefit of the Company, the Executive and their respective successors, assigns,
personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable. None of the Executive’s rights or obligations may be assigned or transferred by the Executive, other than the
Executive’s rights to payments hereunder, which may be transferred only by will or operation of law. Notwithstanding the foregoing, the Executive shall be entitled, to the extent permitted under applicable law and applicable Company
Arrangements, to select and change a beneficiary or beneficiaries to receive compensation hereunder following his death by giving written notice thereof to the Company. 

 

	10.	Certain Definitions. 

  

	 	(a)	Cause. The Company shall have “Cause” to terminate the Term and the Executive’s employment hereunder upon: 

 

	 	(i)	the Executive’s failure to perform substantially his duties as an employee of the Company (other than any such failure resulting from the Executive’s
incapacity due to physical or mental illness), which is not cured within fifteen (15) days after a written demand for performance is given to the Executive by the Board specifying in reasonable detail the manner in which the Executive has
failed to perform substantially his duties as an employee of the Company; 

  

	 	(ii)	 the Executive’s failure to carry out, or comply with, in any material respect any lawful and reasonable directive of the Board consistent with the
terms of this Agreement that, if capable of cure, is not cured 

  

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 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

	 	 
by the Executive within fifteen (15) days after written notice given to the Executive describing such failure in reasonable detail; 

 

	 	(iii)	the Executive’s commission of any material workplace misconduct or willful failure to comply with the Company’s general policies and procedures as they may
exist from time to time; 

  

	 	(iv)	the Executive’s conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any felony or, to the extent involving
fraud, dishonesty, theft, embezzlement or moral turpitude, any other crime; 

  

	 	(v)	the Executive’s violation of a material regulatory requirement relating to the business of the Company and its subsidiaries that, in the good faith judgment of the
Board, is injurious to the Company in any material respect; 

  

	 	(vi)	the Executive’s unlawful use (including being under the influence) or possession of illegal drugs on the Company’s premises or while performing the
Executive’s duties and responsibilities under this Agreement; 

  

	 	(vii)	the Executive’s breach of this Agreement in any material respect that, if capable of cure, is not cured by the Executive within fifteen (15) days after
written notice given to the Executive describing such breach in reasonable detail; 

  

	 	(viii)	the Executive’s commission of an act of fraud, embezzlement, misappropriation, willful misconduct, gross negligence or breach of fiduciary duty with respect to the
Company or any of its affiliates; or 

  

	 	(ix)	the Executive’s failure to maintain in good standing professional certifications and/or credentials expected for Executive’s position and the performance of
his duties, and the failure to satisfy other employment screening/clearance requirements (e.g. OIG clearance). 

  

	 	(b)	Date of Termination. “Date of Termination” shall mean (i) if the Executive’s employment is terminated by his death, the date of his death;
(ii) if the Executive’s employment is terminated pursuant to Section 3(a)(ii) – (v) either the date indicated in the Notice of Termination or the date specified by the Company pursuant to Section 3(b),
whichever is earlier; (iii) if the Executive’s employment is terminated pursuant to Section 3(a)(vi) or Section 3(a)(vii), the expiration of the then-applicable Term. 

 

	 	(c)	 Disability. “Disability” shall mean, at any time the Company or any of its affiliates sponsors a long-term disability plan for the
Company’s employees in which the Executive participates, “disability” as defined in such long-term disability plan for the purpose of determining a participant’s eligibility for benefits, provided, however, if the long-term
disability plan contains multiple definitions of disability, “Disability” shall refer to that definition of disability which, if the Executive qualified for such disability benefits, would provide coverage for the longest period of time.
The determination of whether the Executive has a Disability shall be made by the person or persons required to 

  

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 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

	 	 
make disability determinations under the long-term disability plan. At any time the Company does not sponsor a long-term disability plan for its employees in which the Executive participates,
Disability shall mean the Executive’s inability to perform, with or without reasonable accommodation, the essential functions of his position hereunder for a total of six (6) months during any 12-month period as a result of incapacity due
to mental or physical illness as determined by a physician selected by the Board and acceptable to the Executive or the Executive’s legal representative, such agreement as to acceptability not to be unreasonably withheld or delayed. Any refusal
by the Executive to submit to a medical examination for the purpose of determining Disability shall be deemed to constitute conclusive evidence of the Executive’s Disability. 

 

	11.	Governing Law. 

This Agreement shall be governed, construed, interpreted and enforced in accordance with its express terms, and otherwise in accordance
with the substantive laws of the State of Delaware, without reference to the principles of conflicts of law, and where applicable, the federal laws of the United States. 

 

	12.	Validity. 

 The
invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

 

	13.	Notices. 

 Any
notice, request, claim, demand, document and other communication hereunder to any party shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by facsimile or certified or registered mail,
postage prepaid, or any nationally recognized overnight courier service with signature certification of receipt, as follows: 
  

	 	(a)	If to the Company: 

 Skilled
Healthcare, LLC 
 27442 Portola Parkway 
 Suite 200 
 Foothill Ranch, California 92610 

Attn: President and COO / Jose Lynch 
 with copies to: 
 Skilled Healthcare, LLC 

27442 Portola Parkway 
 Suite 200 
 Foothill Ranch, California 92610 

Attn: General Counsel/Roland Rapp 

  

PAGE 11 OF 17 
 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

	 	(b)	If to the Executive: 

 Matthew
Moore 
 30033 Maple Lane 
 Spring Hill, KS 66083 
 or at any other address as any party shall have specified
by notice in writing to the other party. 
  

	14.	Counterparts. 

This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will
constitute one and the same Agreement. Signatures delivered by facsimile shall be deemed effective for all purposes. 
  

	15.	Entire Agreement. 

The terms of this Agreement are intended by the parties to be the final expression of their agreement with respect to the employment of
the Executive by the Company and supersede all prior understandings and agreements, whether written or oral. The parties further intend that this Agreement shall constitute the complete and exclusive statement of their terms and that no extrinsic
evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement. 
  

	16.	Amendments; Waivers. 

 This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by the Executive and a duly authorized officer of Company. By an instrument in writing similarly
executed, the Executive or a duly authorized officer of the Company may waive compliance by the other party or parties with any specifically identified provision of this Agreement that such other party was or is obligated to comply with or perform;
provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure. No failure to exercise and no delay in exercising any right, remedy, or power hereunder preclude any other or further
exercise of any other right, remedy, or power provided herein or by law or in equity. Except as otherwise set forth in this Agreement, the respective rights and obligations of the parties under this Agreement shall survive any termination of
Executive’s employment. 
  

	17.	No Inconsistent Actions. 

 The parties hereto shall not voluntarily undertake or fail to undertake any action or course of action inconsistent with the provisions or essential intent of this Agreement. Furthermore, it is the intent
of the parties hereto to act in a fair and reasonable manner with respect to the interpretation and application of the provisions of this Agreement. 
  

	18.	Construction. 

This Agreement shall be deemed drafted equally by both the parties. Its language shall be construed as a whole and according to its fair
meaning. Any presumption or principle that the language is to be construed against any party shall not apply. The headings in this Agreement are only for convenience and are not intended to affect

  

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 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

 
construction or interpretation. Any references to paragraphs, subparagraphs, sections or subsections are to those parts of this Agreement, unless the context clearly indicates to the contrary.
Also, unless the context clearly indicates to the contrary, (a) the plural includes the singular and the singular includes the plural; (b) “and” and “or” are each used both conjunctively and disjunctively;
(c) “any,” “all,” “each,” or “every” means “any and all,” and “each and every”; (d) “includes” and “including” are each “without limitation”;
(e) “herein,” “hereof,” “hereunder” and other similar compounds of the word “here” refer to the entire Agreement and not to any particular paragraph, subparagraph, section or subsection; and (f) all
pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the entities or persons referred to may require. 

 

	19.	Arbitration. 

 Any
controversy arising out of or relating to this Agreement, its enforcement or interpretation, or because of an alleged breach, default, or misrepresentation in connection with any of its provisions, or any other controversy arising out of the
Executive’s employment by the Company, including, but not limited to, any state or federal statutory claims, shall be submitted to arbitration in Los Angeles County, California, before a sole neutral arbitrator (the
“Arbitrator”), mutually selected and agreeable to both parties and selected from Judicial Arbitration and Mediation Services, Inc., Los Angeles County, California, or its successor (“JAMS”), or if JAMS is no longer
able to supply the Arbitrator, such Arbitrator shall be selected from the American Arbitration Association, and shall be conducted in accordance with the provisions of California Code of Civil Procedure Sections 1280 et seq. as the exclusive forum
for the resolution of such dispute; provided, however, that provisional injunctive relief (including, but not limited to, temporary restraining orders and preliminary injunctions) may, but need not, be sought by either party to this Amended
Agreement in any court of competent jurisdiction while arbitration proceedings are pending, and any provisional injunctive relief granted by such court shall remain effective until the matter is finally determined by the Arbitrator; no bond or other
security shall be required in connection therewith. Final resolution of any dispute through arbitration may include any remedy or relief that the Arbitrator deems just and equitable, including any and all remedies provided by applicable state or
federal statutes. At the conclusion of the arbitration, the Arbitrator shall issue a written decision that sets forth the essential findings and conclusions upon which the Arbitrator’s award or decision is based. Any award or relief granted by
the Arbitrator hereunder shall be final and binding on the parties hereto and may be enforced by any court of competent jurisdiction. The parties acknowledge and agree that they are hereby waiving any rights to trial by jury in any action,
proceeding or counterclaim brought by either of the parties against the other in connection with any matter whatsoever arising out of or in any way connected with this Amended Agreement or the services rendered hereunder. The parties agree that the
Company shall be responsible for payment of the forum costs of any arbitration hereunder, including the Arbitrator’s fee. The Executive and the Company further agree that in any proceeding to enforce the terms of this Amended Agreement, the
prevailing party shall be entitled to its or his reasonable attorneys’ fees and costs (other than forum costs associated with the arbitration) incurred by it or him in connection with resolution of the dispute up to a maximum of $50,000 in
addition to any other relief granted. 
  

	20.	Enforcement. 

 If
any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced as if
such illegal, invalid or 

  

PAGE 13 OF 17 
 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

 
unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as part of this Agreement a provision as similar in
terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable. 
  

	21.	Withholding. 

 The
Company shall be entitled to withhold from any amounts payable under this Agreement any federal, state, local or foreign withholding or other taxes or charges which the Company is required to withhold. The Company shall be entitled to rely on an
opinion of counsel if any questions as to the amount or requirement of withholding shall arise. 
  

	22.	Indemnification. 

The Company agrees that (a) if the Executive is made a party, or is threatened to be made a party, to any threatened or actual
action, suit or proceeding whether civil, criminal, administrative, investigative, appellate or other (a “Proceeding”) by reason of the fact that he is or was a director, officer, employee, agent, manager, consultant or
representative of the Company or (b) if any claim, demand, request, investigation, controversy, threat, discovery request or request for testimony or information (a “Claim”) is made, or threatened to be made, that arises out of
or relates to the Executive’s service in any of the foregoing capacities, then the Executive shall promptly be indemnified and held harmless by the Company to the fullest extent permitted by the laws of the state of incorporation of the
Company, against any and all costs, expenses, liabilities and losses incurred or suffered by the Executive in connection therewith, and such indemnification shall continue as to the Executive even if he has ceased to be a director, member, employee,
agent, manager, consultant or representative of the Company and shall inure to the benefit of the Executive’s heirs, executors and administrators. The Company may assume the defense of any Proceeding or Claim with counsel selected by the
Company and reasonably satisfactory to the Executive and, if it does so, the Executive shall not be entitled to be reimbursed for any separate counsel he may retain in connection with such Proceeding or Claim. 

Neither the failure of the Company (including its Board, independent legal counsel or stockholders) to have made a determination in
connection with any request for indemnification that the Executive has satisfied any applicable standard of conduct, nor a determination by the Company (including its Board, independent legal counsel or stockholders) that the Executive has not met
any applicable standard of conduct, shall create a presumption that the Executive has not met an applicable standard of conduct. 
 During the Term and for a period of time thereafter determined as provided below, the Company shall keep in place a directors and officers’ liability insurance policy (or policies) providing
coverage, or such coverage may be provided under a policy that provides coverage to Onex Corporation or Onex Partners LP and their affiliates, to the Executive if and to the extent that the Company provides such coverage to its directors and such
coverage (or other directors and officers liability insurance coverage) shall continue after the termination of the Term if and for the period of time that such coverage is extended to the Company’s former director, other than former directors
who are employees of Onex Corporation, Onex Partners LP or their affiliates. 

  

PAGE 14 OF 17 
 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

	23.	Cooperation in Litigation. 

 The Executive promises and agrees that, following the date his employment by the Company terminates, he will reasonably cooperate with the Company in any litigation in which the Company is a party or
otherwise involved which arises out of events occurring prior to the termination of his employment, including but not limited to, serving as a consultant (at a reasonable hourly rate) or witness and producing documents and information relevant to
the case or helpful to the Company. 
  

	24.	Executive Acknowledgement. 

 The Executive acknowledges that he has read and understands this Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises made by the Company other
than those contained in writing herein, and has entered into this Agreement freely based on his own judgment. 
 IN WITNESS
WHEREOF, the parties have executed this Agreement on the date and year first above written. 
  

 

					
	 SKILLED HEALTHCARE, LLC.

		
	By:	 	/s/ Jose C. Lynch
		 	Name:	 	Jose C. Lynch
		 	Title:	 	President and Chief Operating Officer

  

			
	 EXECUTIVE

		
	By:	 	/s/ Matthew Moore
		 	Matthew Moore

  

PAGE 15 OF 17 
 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

 Exhibit A 

2010 Executive Bonus Structure 
  

 

  

PAGE 16 OF 17 
 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

 Exhibit B 

Form Separation and Release Agreement 
  

 

  

PAGE 17 OF 17 
 EMPLOYMENT AGREEMENT – MATTHEW MOORE 

 First Amendment to Employment Agreement 

This First Amendment to Employment Agreement dated as of November 5, 2010 (the “First Amendment”), is made by and
between Skilled Healthcare, LLC, a Delaware limited liability company (together with its Parent and any successor thereto, the “Company”) and Matthew Moore (the “Executive”). 

RECITALS 

A.     Whereas, the Company and the Executive (collectively, the “Parties”) entered into that certain Employment
Agreement dated as of April 1, 2010 (the “Employment Agreement”); and 
 B.     Whereas, the Parties
desire to amend the Employment Agreement on the terms and conditions set forth in this First Amendment. 
 AGREEMENT

 NOW, THEREFORE, in consideration of the Parties agreeing to amend their obligations in the Employment Agreement, and
other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree to keep, perform and fulfill the promises, conditions and agreements contained herein and in the Employment Agreement. 

1.     Amendment to Section 2(c). Section 2(c) of the Employment Agreement is hereby deleted in its entirety
and replaced with the following Section 2(c): 
 Relocation Bonuses. In connection with Executive’s relocation
from Spring Hill, Kansas to Southern California, the Company agrees to pay Executive a one-time lump sum cash payment in the amount of $150,000. The Relocation Bonus shall be reduced by any tax or other amounts required to be withheld by the Company
under applicable law. In addition to the Relocation Bonus, the Company agrees to pay Executive a one-time lump sum cash payment in the amount of $60,000 (the “Additional Relocation Bonus” and together with the Relocation Bonus, the
“Relocation Bonuses”). The Additional Relocation Bonus shall be grossed up for tax purposes such that any deemed income arising pursuant to the payment of the Additional Relocation Bonus shall be as if the payment were provided to
Executive on a non-taxable basis. The Relocation Bonuses shall be payable by the Company to Executive concurrent with the close of escrow on the purchase by Executive of a residence located reasonably near the Company’s Foothill Ranch,
California offices. In the event Executive’s employment with the Company terminates as a result of a termination by the Company for Cause (pursuant to Section 3(a)(iii)) or resignation by the Executive (pursuant to
Section 3(a)(v)) at any time during the first four years of the Term, the Executive shall be required to return a portion of the Relocation Bonuses equal to the net after-tax amount of the Relocation Bonuses (after application of all
refunds and credits as a result of such repayment) multiplied by the difference of one minus a fraction, the numerator of which is the number of completed months since the Effective Date and the denominator of which is 48. Such amount shall be
returned to the Company no later than thirty (30) days following the Date of Termination. 

  
 FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT – MATTHEW MOORE 

 2.     Full Force and Effect. Except as set forth in this First Amendment,
all other terms and conditions of the Employment Agreement shall remain unchanged and in full force and effect. 
 3.    
Counterparts. This First Amendment may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original and all of which shall constitute the same instrument. 

 
 IN WITNESS WHEREOF, the Parties have executed this First Amendment
on the date and year first above written. 
  

					
	 SKILLED HEALTHCARE, LLC.

		
	By:	 	/s/ Jose C. Lynch
		 	Name:	 	Jose C. Lynch
		 	Title:	 	President and Chief Operating Officer

  

			
	 EXECUTIVE

		
	By:	 	/s/ Matthew Moore
		 	Matthew Moore

  
 FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT – MATTHEW MOORE

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