Document:

EX-10.3

 EXHIBIT 10.3 
 PERFORMANCE UNIT AWARD AGREEMENT 
 THIS AGREEMENT, made as of this
             day of             , 20            
between Kindred Healthcare, Inc., a Delaware corporation and its successors (the “Company”), and              (the “Participant”). 

WHEREAS, the Company adopted and maintains the Kindred Healthcare, Inc. 2011 Stock Incentive Plan (the “Plan”); 

WHEREAS, the Plan provides for the award to participants in the Plan of the right to receive shares of common stock of Kindred
Healthcare, Inc., par value $0.25 per share (the “Common Stock”), upon the achievement of specified performance targets. 
 NOW THEREFORE, in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto hereby agree as follows: 

1. Grant of Performance Units. Pursuant and subject to the terms and conditions set forth herein and in the Plan, the Company
hereby grants to the Participant                      (            )
Performance Units. The Performance Units shall vest only in accordance with the provisions of this Agreement and of the Plan. All capitalized terms used herein and not defined herein shall have the meanings assigned to them in the Plan. 

2. Performance Targets/Performance Period. 
 (a) The Committee shall establish the Performance Targets applicable to a particular Performance Period within ninety (90) days of the commencement of such Performance Period in accordance with the
terms and conditions of Section 9(b) of the Plan. As soon as reasonably practicable following the establishment of such Performance Targets, the Committee shall communicate the Performance Targets to the Participant. 

(b) The Performance Periods applicable to the Performance Units during which the Performance Targets shall be measured shall be as
follows: 
 (i) With respect to one-third (1/3) of the Performance Units, the Performance Period shall be calendar year
20__; 
 (ii) With respect to one-third (1/3) of the Performance Units, the Performance Period shall be calendar year 20__;
and 
 (iii) With respect to one-third (1/3) of the Performance Units, the Performance Period shall be calendar year 20__.

  
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 (c) As soon as practicable after the end of the applicable Performance
Period, the Committee shall determine and certify the extent to which the Performance Targets for such Performance Period were achieved, if at all. If the Performance Targets are achieved in full, and the Participant remains employed with the
Company as of the last day of the applicable Performance Period, the Company shall pay to the Participant an amount equal to the number of Units earned with respect to such Performance Period, such payment to be made as soon as reasonably
practicable following the Committee’s certification pursuant to Section 2(c) of this Agreement, but in no event later than March 15th of the calendar year immediately following the calendar year in which the relevant Performance Period ends. The
Committee may determine, in its sole and absolute discretion, at the time of payment hereunder whether such payment shall be made (a) in cash (equal to the Fair Market Value of a Share multiplied by the number of Performance Units), (b) in
Shares or (c) in a combination of cash and Shares. 
 3. Non-Transferability. No Performance Unit shall be
assignable or transferable otherwise than by will or the laws of descent and distribution, in accordance with the terms and conditions of Section 17 of the Plan. Any purported or attempted transfer of a Performance Unit in contravention of this
Section 3 shall be null and void and shall result in the immediate forfeiture of the Performance Unit. 
 4. Consequences Upon Change in Control. Upon a Change in Control, to the extent not already vested and paid, the Performance Units shall become fully vested and immediately payable as if the
Performance Targets were fully achieved, without any proration, in which case payment shall be in cash equal to the product of the number of Performance Units and the greater of (i) the Fair Market Value of a Share on the date of such Change in
Control and (ii) the highest price per Share paid in connection with such Change in Control. Any payment pursuant to this Section 4 shall be made no later than March 15th of the calendar year immediately following the calendar year in which such Change in Control occurs. 

5. Effect of Termination of Employment. 
 (a) If the employment of Participant shall terminate with the Company prior to the expiration of the applicable Performance Period for any reason other than for death or Disability, the Performance Units
shall immediately terminate and be of no further force or effect. 
 (b) In the event that the employment of
Participant with the Company shall terminate on account of the Disability or death of Participant prior to the expiration of the Performance Period, all Performance Units shall be paid to Participant or Participant’s estate, as the case may be,
as if all applicable Performance Targets had been fully achieved; provided that such payment shall be prorated to reflect the portion of the Performance Period during which Participant was employed; provided further that such payment
shall be made as soon as reasonably practicable following the date of such termination of employment but in no event later than March 15th of the calendar year immediately following the calendar year in which such termination occurs. 

  
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 6. Modification and Waiver. Except as provided in the Plan with respect to
determinations of the Committee and subject to the Company’s right to amend the Plan, neither this Agreement nor any provision hereof can be changed, modified, amended, discharged, terminated or waived orally or by any course of dealing or
purported course of dealing, but only by an agreement in writing signed by the Participant and the Company. No such agreement shall extend to or affect any provision of this Agreement not expressly changed, modified, amended, discharged, terminated
or waived or impair any right consequent on such a provision. The waiver of or failure to enforce any breach of this Agreement shall not be deemed to be a waiver or acquiescence in any other breach thereof. 

7. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Kentucky.

 8. Participant Acknowledgment. The Participant hereby acknowledges receipt of a copy of the Plan and a Plan
prospectus. The Participant hereby acknowledges that all decisions, determinations and interpretations of the Committee in respect of the Plan, this Agreement and the Option shall be final and conclusive. 

9. Incorporation of Plan. All terms and provisions of the Plan are incorporated herein and made part hereof as if stated herein.
If any provision hereof and of the Plan shall be in conflict, the terms of the Plan shall govern. 
 10. Entire
Agreement. This Agreement and the Plan represent the final, complete and total agreement of the parties hereto respecting the Performance Units and the matters discussed herein and this Agreement supersedes any and all previous agreements and
understandings, whether written, oral or otherwise, relating to the Performance Units and such matters. 
 11. No Contract of
Employment. This Agreement shall not confer upon the Participant any right with respect to the continuation of such Participant’s employment by the Company or prohibit the Company at any time from terminating such employment or increasing
or decreasing the base salary or other compensation for such Participant. 
 12. Code Section 409A. Each Performance
Unit is intended not to be subject to Section 409A of the Code by reason of being a short-term deferral and shall be interpreted accordingly. In the event any of the payments provided to a Participant pursuant to this Agreement would result in
a violation of Section 409A of the Code (including any regulations promulgated thereunder), the Company will use its reasonable best efforts to amend this Agreement in the least restrictive manner necessary in order, where applicable
(i) to ensure that such compensation is not considered “nonqualified deferred compensation” for purposes of Section 409A of the Code, or (ii) to comply with the provisions of Section 409A, in each case, where possible,
without any diminution in the value of the compensation to be paid or provided to the Participant pursuant to this Agreement; provided, that nothing in this Agreement shall require the Company to provide any gross-up or other tax
reimbursement to a Participant in connection with any violation of Section 409A or otherwise. 

  
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 IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its duly
authorized officer and said Participant has hereunto signed this Agreement on the Participant’s own behalf, thereby representing that the Participant has carefully read and understands this Agreement and the Plan, as of the day and year first
above written. 
  

	
	KINDRED HEALTHCARE, INC.
	
	  
	 By: Richard A. Lechleiter

Title: Executive Vice President and

	 Chief Financial Officer

  

			
		
	 	 	 
	Name of Individual	 	

  
 4EX-10.4

 EXHIBIT 10.4 

 
 

 
  

			
	Ventas Realty, Limited Partnership	  	 10350 Ormsby Park Place
 Suite
300
 Louisville, KY 40223
 T
502.357-9000
 F 502.357-9029

 March 26, 2012 
 Kindred Healthcare, Inc. 
 Kindred Healthcare Operating, Inc. 

680 South Fourth Street 
 Louisville, KY
40202-2612 
  

	 	Re:	Second Amended and Restated Master Lease Agreement No. 1 dated April 27, 2007, by and among Ventas Realty, Limited Partnership, a Delaware limited
partnership, as lessor, and Kindred Healthcare, Inc., a Delaware corporation, and Kindred Healthcare Operating, Inc., a Delaware corporation, as tenant (as heretofore amended or modified, the “Master Lease”) 

Dear Ladies and Gentlemen: 

Reference is made to the Master Lease. Capitalized terms that are used herein and not otherwise defined shall have the same meanings
herein as in the Master Lease. 
 Pursuant to the Master Lease, since November 2011, Tenant has, among other things, exercised
its five-year renewal option for Renewal Group 1 under the Master Lease, Lessor and Tenant have selected and appointed appraisers to act on their behalf in connection with certain appraisals under Section 35 of the Master Lease relating to such
Renewal Group 1 and a Final Appraiser, Charles A. Bissell of Integra Realty Resources DFW, LLP, has been selected to conduct the aforesaid appraisals. By this letter, Lessor and Tenant hereby evidence their agreement that, notwithstanding the
foregoing actions and events, (a) Tenant’s aforesaid exercise of its renewal option for such Renewal Group 1 is hereby irrevocably revoked (and for the avoidance of doubt this letter constitutes Tenant’s revocation notice pursuant to
Section 19.5 of the Master Lease), (b) Tenant shall have no further right to renew or extend the Expiration Date of the Master Lease as it relates to the Leased Properties within such Renewal Group 1, (c) the Master Lease shall expire
as it relates to such Leased Properties on April 30, 2013, and (d) subject to the terms and conditions of the Master Lease, Lessor and Tenant shall mutually take such steps as are reasonably necessary and appropriate to terminate such
Final Appraiser’s engagement relative to such Renewal Group 1. 

 Kindred Healthcare, Inc. 
 Kindred Healthcare Operating, Inc. 
 March 26, 2012 

Page 2 
 If you are in agreement
with the foregoing matters, please execute and return to the undersigned the enclosed copy of this letter. 
  

			
	Very truly yours,
	
	 VENTAS REALTY, LIMITED PARTNERSHIP,
 a Delaware limited partnership

		
	By:	 	 Ventas, Inc., a Delaware corporation,
 its general partner

  

			
		
	By:	 	 /s/ T. Richard Riney

		 	 T. Richard Riney
 Executive
Vice President,
 Chief Administrative Officer
 and General Counsel

  

			
	AGREED AND ACCEPTED:
	
	 KINDRED HEALTHCARE, INC.,
 a Delaware corporation

		
	By:	 	/s/ Gregory C. Miller
	Name:	 	Gregory C. Miller
	Its:	 	Chief Development Officer

  

			
	 KINDRED HEALTHCARE OPERATING, INC.,
 a Delaware corporation

		
	By:	 	/s/ Gregory C. Miller
	Name:	 	Gregory C. Miller
	Its:	 	Chief Development Officer

 Kindred Healthcare, Inc. 
 Kindred Healthcare Operating, Inc. 
 March 26, 2012 

Page 3 
 JOINDER

 For the avoidance of doubt and although it is not required to do so, the undersigned, as the joint and several Lessor
with Ventas Realty, Limited Partnership with respect to Facility 4619, hereby joins in this letter for the purpose of evidencing its consent thereto, joinder therein and agreement to be bound thereby. 

 

			
	VENTAS, INC., a Delaware corporation
		
	By:	 	/s/ T. Richard Riney
		 	 T. Richard Riney, Executive Vice President, Chief Administrative Officer and
 General Counsel

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