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                                                                   EXHIBIT 10.60

                              EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT (this "Agreement"), dated as of APRIL 26, 1999,
between CORAM HEALTHCARE CORPORATION, a Delaware corporation ("Coram"), and VITO
PONZIO, JR., a resident of COLORADO ("Executive").

                              W I T N E S S E T H:

         WHEREAS, Coram and its subsidiaries and affiliates are engaged in
providing (i) alternate site infusion therapy and related home health services,
(ii) ancillary network management services for third party payor customers
relating to their home health benefits, (iii) specialty mail order and
prescription benefit management services, and (iv) certain clinical research and
medical informatics services throughout the United States and in certain parts
of Canada (Coram's Business Lines);

         WHEREAS, Executive is considered to be important to the continued
improvement and success of Coram; and

         WHEREAS, Coram desires to avail itself of Executive's talents and
expertise in the management of the business of Coram, and to employ him/her in
the capacity and with the responsibilities described on Exhibit A hereto, and
Executive is willing to accept such employment.

         NOW, THEREFORE, in consideration of the premises, and other mutual
promises and covenants hereinafter contained, Coram and Executive do hereby
agree, for their mutual benefit, as follows:

 SECTION 1.       EMPLOYMENT.

         Coram shall employ Executive under this Agreement, and Executive
accepts such employment upon the terms and conditions set forth below.

  SECTION 2.      POSITION AND DUTIES.

           During the period that Executive is employed by Coram pursuant to
this Agreement, the Executive shall serve Coram in the capacity and with the
title set forth on Exhibit A hereto. In carrying out his/her duties under this
Agreement, Executive shall have such duties and responsibilities usually
incident to the office to which the Executive has been appointed, together with
such other duties defined by the person to whom the Executive reports. Executive
may also hold similar offices with Coram's subsidiaries and affiliates and/or
their successors. Except as otherwise set forth in this Agreement, Executive
shall perform such duties as may be assigned to him/her from time to time by and
shall report to the officer specified on Exhibit A hereto. Executive shall
devote all of his/her normal working time and best efforts in the best interest
of and on behalf of Coram throughout the time he/she is employed by Coram.

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SECTION 3. BASE SALARY AND BENEFITS.

         For all services rendered by Executive pursuant to this Agreement,
Coram shall pay Executive the following compensation:

         (a) A base salary at the annual rate set forth on Exhibit A hereto,
such salary to be paid in accordance with Coram's general payroll practices. The
officer to whom the Executive reports, Coram's Board of Directors or its
Compensation Committee, as appropriate, shall review the Executive's salary at
least annually, and such reviewing party may make increases but not decreases to
the Executive's salary at its discretion.

         (b) Executive shall be entitled to participate in any bonus plan
 approved by the Board of Directors or its Compensation Committee for Coram's
 management and shall be eligible for other discretionary bonuses approved by
 the Board of Directors or the Compensation Committee.

         (c) Subject to Coram's eligibility and qualification requirements for
its management level employees, Executive shall be entitled to participate in
any employee retirement, benefit or welfare, deferred compensation or other
benefit plans provided by Coram to its employees and/or to its senior managers,
such as life insurance, health and dental, retirement savings and disability
plans which Coram has in effect or may adopt from time to time together with any
other benefits described on Exhibit A hereto. In addition, Coram shall provide
Executive the following additional benefits while the Executive is employed with
Coram:

             (i)    paid time off in accordance with Coram's general policies
                    and procedures applicable to the paid time off benefits
                    afforded to Coram's employees;

             (ii)   payment of dues for such professional societies and
                    associations of which Executive is a member in furtherance
                    of his duties hereunder;

             (iii)  disability insurance coverage paying benefits equal to at
                    least 75% of Executive's earnings, either through a
                    corporate group disability insurance plan or other
                    individual disability plan chosen by Coram;

             (iv)   reimbursement to Executive of expenses incurred for the
                    advice of Executive's counsel and/or accountant not to
                    exceed $5,000 per annum for estate and tax planning services
                    for the benefit of Executive; and

             (v)    consideration, at least annually, by the Board of Directors
                    or its Stock Option Committee for the grant to Executive of
                    additional options to purchase shares of common stock of
                    Coram, and participation in any and all other stock option
                    plans made available to senior managers of Coram.

         (d) Coram shall reimburse Executive for all reasonable expenses
incurred by him/her in the course of performing his/her duties under this
Agreement which are consistent with the

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Company's policies in effect from time to time with respect to travel,
entertainment, and other business expenses, subject to Coram's requirements for
reporting and documenting such expenses.

         (e) For purposes of administration, the terms of this Section 3 shall
be given effect on a pro-rata basis for partial calendar years and otherwise
administered on a calendar year basis.

 SECTION 4.       TERM AND TERMINATION.

         (a) Unless otherwise terminated in accordance with the provisions
hereof, the term of employment provided for in this Agreement shall commence as
of the date first written above, and shall continue in full force and effect for
the period of time specified on Exhibit A hereto (the "Initial Term").

         (b) During the Initial Term, the Executive's employment with Coram may
be terminated as follows:

             (i)    by Coram at any time for "Cause" (as that term is defined
                    below);

             (ii)   immediately upon the death of Executive;

             (iii)  immediately upon the Executive becoming no longer able to
                    perform his/her duties hereunder due to the "Disability" (as
                    that term is defined below); or

             (iv)   immediately upon the voluntary resignation of the Executive.

In the event the Initial Term is terminated in accordance with this Subsection
(b), Coram shall provide the Executive with all amounts of annual salary and
bonus, if applicable, earned by the Executive through the effective date of
termination if the Executive participates in a bonus plan that operates on a
quarterly, semi-annual or annual basis, the Executive shall be entitled to
receive a pro rata share of the bonus he/she would have received had he/she been
employed throughout the entire bonus measurement period provided that, on the
effective date of termination the Executive was achieving the level of
performance (calculated on a pro rata basis for the time the Executive was
employed during the period in question) required for earning such bonus through
the date of such termination.

         (c) Upon the conclusion of the Initial Term, the Executive's employment
status shall be that of an "at will" employee, but the other terms and
conditions of this Agreement shall continue to apply as set forth herein.
Accordingly, the Executive's employment following the Initial Term may be
terminated at any time by either the Executive or Coram upon written notice to
the other party. If the Executive terminates his/her employment with Coram after
the initial Term pursuant to a voluntary resignation or if the Executive's
employment is terminated by virtue of a "Disability" or the Executive's death,
Coram shall provide the Executive or his/her estate with all amounts of annual
salary and bonus, if applicable, earned by the Executive through the effective
date of termination if the Executive participates in a bonus plan that

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operates on a quarterly, semi-annual or annual basis, the Executive shall be
entitled to receive a pro rata share of the bonus he/she would have received had
he/she been employed throughout the entire bonus measurement period provided
that, on the effective date of termination the Executive was achieving the level
of performance (calculated on a pro rata basis for the time the Executive was
employed during the period in question) required for earning such bonus through
the date of such termination.

         If Coram terminates the employment of the Executive at any time during
the Initial Term or thereafter for any reason other than for "Cause," Coram
shall provide the following to the Executive:

             (i)    payment of all amounts of base salary, earned by the
                    Executive through the effective date of termination;

             (ii)   continuation of Executive's base salary at its then current
                    rate for the duration of the Severance Period described on
                    Exhibit A hereto (the "Severance Period"), payable in
                    accordance with Coram's normal payroll practices;

             (iii)  continuation of all health benefits for the period of time
                    contemplated for the Severance Period at no cost to
                    Executive other than the premium payable by the Executive
                    pursuant to the terms of Coram's health benefit plan as
                    consistently applied among Coram's employees;

             (iv)   payment during the Severance Period of any life insurance,
                    disability or other benefits, if any, for which Executive is
                    then eligible under the terms of Coram's employee
                    retirement, benefit and welfare;

             (v)    if the Executive was achieving the level of performance
                    required (calculated on a pro rata basis for the time the
                    Executive was employed during the period in question) for
                    earning such bonus through the date of such termination, (x)
                    payment of Executive's bonus through the date of
                    termination, calculated on the basis of the sum of the total
                    achievable amounts of each bonus divided by twelve months,
                    and multiplied by the number of months employed during such
                    fiscal year through the date of termination, with any
                    partial month of employment to be treated as a full month;
                    and (y) continued payment of the total achievable amounts of
                    each of Executive's bonuses for the current fiscal year (or,
                    if greater, of the total achievable amounts of each of
                    Executive's bonuses in effect for the fiscal year most
                    recently ended) for the Severance Period if the Executive
                    was achieving the level of performance required (calculated
                    on a pro rata basis for the time the Executive was employed
                    during the period in question) for earning such bonus
                    through the date of such termination;

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             (vi)   a right to exercise all options to purchase shares of common
                    stock of Coram that have been granted to Executive by Coram
                    that are exercisable by the Executive upon the effective
                    date of termination of employment at any time during the
                    Severance Period; and

             (vii)  any other benefits payable in accordance with Exhibit A
                    hereto.

         For purposes of this Subsection (c), the Executive's employment shall
be deemed to have been terminated if, at any time within twenty four (24) months
following a "Change of Control" of Coram, a "New Management Team" (as that term
is defined below) of Coram requires the Executive to relocate his/her primary
residence or primary work location listed on Exhibit A to a place that is more
than fifty (50) miles from such location. To receive the benefits contemplated
by this Subsection (c), however, the Executive must provide written notice to
Coram stating that the Executive deems his/her employment to have been
terminated as described herein.

SECTION 5.        DEFINITIONS.

         As used in this Agreement, the following terms shall have the meanings
set forth below:

         (a) "CAUSE" shall mean (i) repeated violations by Executive of
Executive's obligations under Section 2 of this Agreement (other than as a
result of incapacity due to physical or mental illness) which violations (A) are
willful and deliberate on Executive's part, (B) are committed in bad faith or
without reasonable belief that such violations are in the best interests of
Coram, and (C) are not remedied in a reasonable period of time after receipt of
written notice from the person to whom the Executive reports designated in
Section 2 above or the Board of Directors of Coram specifying such violations,
or (ii) the conviction of Executive of a felony or any crime involving fraud,
dishonesty or moral turpitude.

          (b)      "CHANGE IN CONTROL" shall mean:

                  (i)      the acquisition by any individual, entity or group
                           (within the meaning of Section 13(d)(3) or 14(d)(2)
                           of the Securities Exchange Act of 1934, as amended
                           (the "Exchange Act")) (a "Person") of beneficial
                           ownership (within the meaning of Rule l3d-3
                           promulgated under the Exchange Act) of 30% or more
                           of either (A) the shares of the $.001 par value
                           common stock of Coram then outstanding (the
                           "Outstanding Company Common Stock") through open
                           market purchases of Common Stock, block transfers
                           of Common Stock or the acquisition of options,
                           warrants or other convertible debt or equity
                           instruments, including, but not limited to the
                           Company's Series B Senior Subordinated Convertible
                           Notes or otherwise or (B) the combined voting power
                           of the then outstanding voting securities of Coram
                           entitled to vote generally in the election of
                           directors ("the Outstanding Company Voting
                           Securities"); provided, however, that for purposes
                           of this subsection (i), the following acquisitions
                           shall not constitute a Change of Control: (1) any
                           acquisition directly from Coram, (2) any acquisition
                           by Coram, (3) any acquisition by any employee

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                         benefit plan (or related trust) sponsored or
                         maintained by Coram or any corporation controlled by
                         Coram, (4) any acquisition by the Note Holders (but
                         not their transferees) as of the date hereof pursuant
                         to convertible debt instruments or stock warrants
                         then outstanding, or (5) any acquisition by any
                         corporation pursuant to a transaction which complies
                         with clauses (1), (2) and (3) of subsection (iii)
                         below;

                  (ii)   during any period of two (2) consecutive years,
                         individuals who at the beginning of such period
                         constituted Coram's Board of Directors (together with
                         any new directors whose election to the Board of
                         Directors or whose nomination for election to the Board
                         of Directors was approved by a vote of at least
                         two-thirds of Coram's directors then still in office
                         who either were directors at the beginning of such
                         period or whose election or nomination was previously
                         so approved) and any individual serving during such
                         period as a member of Coram's Board of Directors
                         designated pursuant to the Securities Exchange
                         Agreement, dated as of May 6, 1998, as amended, among
                         Coram, Coram, Inc. and the Note Holders, cease for any
                         reason to constitute at least 40 % of Coram's directors
                         then in office;

                  (iii)  Consummation of a reorganization, merger or
                         consolidation or sale or other disposition of all or
                         substantially all of the assets of Coram (a "Business
                         Combination"), in each case, unless, following such
                         Business Combination, (1) all or substantially all of
                         the individuals and entities who were the beneficial
                         owners, respectively, of the Outstanding Company Common
                         Stock and Outstanding Company Voting Securities
                         immediately prior to such Business Combination
                         beneficially own, directly or indirectly, more than 75%
                         of, respectively, the shares of common stock then
                         outstanding and the combined voting power of the then
                         outstanding voting securities entitled to vote
                         generally in the election of directors, as the case may
                         be, of the corporation resulting from such Business
                         Combination (for example, but not by way of limitation,
                         a corporation which as a result of such transaction
                         owns Coram or all or substantially all of Coram's
                         assets either directly or through one or more
                         subsidiaries) in substantially the same proportions as
                         their ownership, immediately prior to such Business
                         Combination of the Outstanding Company Common Stock and
                         Outstanding Company Voting Securities, as the case may
                         be, (2) no party (excluding any corporation resulting
                         from such Business Combination or any employee benefit
                         plan (or related trust) of the company or such
                         corporation resulting from such Business Combination)
                         beneficially owns, directly or indirectly, 30% or more
                         of, respectively, the then outstanding shares of common
                         stock of the corporation resulting from such Business
                         Combination or the combined voting power of the then
                         outstanding voting securities of such corporation
                         except to the extent that such ownership existed prior
                         to the Business Combination, and (3) at least a
                         majority of the non-executive members of the board of
                         directors of the corporation resulting from such
                         Business Combination were members of

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                    the Board of Directors of Coram at the time of the
                    execution of this agreement, or of the action of the Board
                    of Directors, providing for such Business Combination.

          (c) "CODE" shall mean the Internal Revenue Code of 1986 and all
regulations promulgated thereunder, as the same may be amended from time to
time.

         (d) "DISABILITY" shall be deemed to have occurred if Executive is
eligible and qualified for disability benefits under any Coram-sponsored
long-term disability program covering Executive. In the absence of a
Coram-sponsored long-term disability program covering Executive, Disability
shall mean the inability of Executive, as determined by the Board of Directors,
to substantially perform (with or without reasonable accommodations as that term
is defined under the Americans with Disabilities Act) the essential functions of
his/her regular duties and responsibilities due to a medically determinable
physical or mental impairment which has lasted (or can reasonably be expected to
last) for a period of six consecutive months.

         (e) "NEW MANAGEMENT TEAM" shall refer to any group of senior management
of Coram that does not include Richard M. Smith as Coram's Chief Executive
Officer or President.

         (f) "NOTE HOLDERS" shall mean Cerberus Partners, L.P.; Goldman Sachs
Credit Partners, L.P.; Foothill Capital Corporation and their respective
affiliates and associates.

SECTION 6.        NON-COMPETITION.

         (a) GENERAL. Executive and Coram understand and agree that the purpose
of the provisions of this Section 6 is to protect legitimate business interests
of the Company, as more fully described below, and is not intended to impair or
infringe upon Executive's right to work, earn a living, or acquire and possess
property from the fruits of his labor. Executive hereby acknowledges that the
post-employment restrictions set forth in this Section 6 are reasonable and that
they do not, and will not, unduly impair his ability to earn a living after the
termination of this Agreement. Therefore, subject to the limitations of
reasonableness imposed by law, Executive shall be subject to the restrictions
set forth in this Section 6.

         (b) DEFINITIONS. The following capitalized terms used in this Section 6
shall have the meanings assigned to them below, which definitions shall apply to
both the singular and the plural forms of such terms:

                  "Competitive Position" means any employment or engagement as a
consultant with a Competitor in which Executive will use or is likely to use any
Confidential Information or Trade Secrets, or in which Executive has duties for
such Competitor that relate to Competitive Services and that are the same or
similar to those services actually performed by Executive for the Company;

                  "Competitive Services" means any of Coram's Business Lines for
which the Executive is responsible or with which the Executive was materially
involved.

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                  "Competitor" means any Person engaged, wholly or in part, in
Competitive Services.

                  "Confidential Information" means all information regarding
Coram, its activities, business or clients that is the subject of reasonable
efforts by Coram to maintain its confidentiality and that is not generally
disclosed by practice or authority to persons not employed by Coram, but that
does not rise to the level of a Trade Secret. "Confidential Information" shall
include, but is not limited to, financial plans and data concerning Coram;
management planning information; business plans; operational methods; market
studies; marketing plans or strategies; product development techniques or plans;
customer lists; details of customer contracts; current and anticipated customer
requirements; past, current and planned research and development; business
acquisition plans; and new personnel acquisition plans. "Confidential
Information" shall not include information that has become generally available
to the public by the act of one who has the right to disclose such information
without violating any right or privilege of Coram. This definition shall not
limit any definition of "confidential information" or any equivalent term under
state or federal law.

                  "Determination Date" means the date of termination of
Executive's employment with Coram for any reason whatsoever or any earlier date
(during the employment period) of an alleged breach of the Restrictive Covenants
by Executive.

                  "Person" means any individual or any corporation, partnership,
joint venture, limited liability company, association or other entity or
enterprise.

                  "Principal or Representative" means a principal, owner,
partner, shareholder, joint venturer, investor, member, trustee, director,
officer, manager, employee, agent, representative or consultant.

                  "Protected Customers" means any Person to whom Coram has sold
its products or services or solicited to sell its products or services during
the twelve (12) months prior to the Determination Date.

                  "Protected Employees" means employees of Coram who were
employed by Coram at any time within six (6) months prior to the Determination
Date.

                  "Restricted Period" means the entire period of time that the
Executive is employed by Coram whether as an at will employee or otherwise and a
period extending for a period of time equal to the duration of the "Severance
Period" described on Exhibit A from the termination of Executive's employment
with Coram.

                  "Restricted Territory" means the United States and Ontario,
Canada.

                  "Restrictive Covenants" means the restrictive covenants
contained in Section 6(c) hereof.

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                  "Trade Secret" means all information, without regard to form,
including, but not limited to, technical or nontechnical data, a formula, a
pattern, a compilation, a program, a device, a method, a technique, a drawing, a
process, financial data, financial plans, product plans, distribution lists or a
list of actual or potential customers, advertisers or suppliers which is not
commonly known by or available to the public and which information: (A) derives
economic value, actual or potential, from not being generally known to, and not
being readily ascertainable by proper means by, other persons who can obtain
economic value from its disclosure or use; and (B) is the subject of efforts
that are reasonable under the circumstances to maintain its secrecy. Without
limiting the foregoing, Trade Secret means any item of Confidential Information
that constitutes a "trade secret(s)" under the common law or statutory law of
the State of Delaware.

         (c)      RESTRICTIVE COVENANTS.

                  (i)    RESTRICTION ON DISCLOSURE AND USE OF CONFIDENTIAL
                         INFORMATION AND TRADE SECRETS. Executive understands
                         and agrees that the Confidential Information and Trade
                         Secrets constitute valuable assets of Coram and its
                         affiliated entities, and may not be converted to
                         Executive's own use. Accordingly, Executive hereby
                         agrees that Executive shall not, directly or
                         indirectly, at any time during the Term of employment
                         or at any time thereafter reveal, divulge, or disclose
                         to any Person not expressly authorized by Coram in
                         writing any Confidential Information, and Executive
                         shall not, directly or indirectly, at any time during
                         the Term of employment or at any time thereafter use or
                         make use of any Confidential Information in connection
                         with any business activity other than that of Coram.
                         Throughout the term of this Agreement and at all times
                         after the date that this Agreement terminates for any
                         reason, Executive shall not directly or indirectly
                         transmit or disclose any Trade Secret of Coram to any
                         Person, and shall not make use of any such Trade
                         Secret, directly or indirectly, for himself or for
                         others, without the prior written consent of Coram. The
                         parties acknowledge and agree that this Agreement is
                         not intended to, and does not, alter either Coram's
                         rights or Executive's obligations under any state or
                         federal statutory or common law regarding trade secrets
                         and unfair trade practices.

         Anything herein to the contrary notwithstanding, Executive shall not be
restricted from disclosing or using Confidential Information that is required to
be disclosed by law, court order or other legal process; provided, however, that
in the event disclosure is required by law, Executive shall provide Coram with
prompt notice of such requirement so that Coram may seek an appropriate
protective order prior to any such required disclosure by Executive.

                  (ii)   NONSOLICITATION OF PROTECTED EMPLOYEES. Executive
                         understands and agrees that the relationship between
                         Coram and each of its Protected Employees constitutes a
                         valuable asset of Coram and may not be converted to
                         Executive's own use. Accordingly, Executive hereby
                         agrees that during the Restricted Period Executive
                         shall not directly or indirectly on Executive's own
                         behalf or as a Principal or Representative of any

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                         Person or otherwise solicit or induce any Protected
                         Employee to terminate his or her employment
                         relationship with Coram or to enter into employment
                         with any other Person.

                  (iii)  RESTRICTION ON RELATIONSHIPS WITH PROTECTED CUSTOMERS.
                         Executive understands and agrees that the relationship
                         between Coram and each of its Protected Customers
                         constitutes a valuable asset of Coram and may not be
                         converted to Executive's own use. Accordingly,
                         Executive hereby agrees that, during the Restricted
                         Period, Executive shall not, without the prior written
                         consent of Coram, directly or indirectly, on
                         Executive's own behalf or as a Principal or
                         Representative of any Person, solicit, divert, take
                         away or attempt to solicit, divert or take away a
                         Protected Customer for the purpose of providing or
                         selling Competitive Services; provided, however, that
                         the prohibition of this covenant shall apply only to
                         Protected Customers with whom Executive had Material
                         Contact on Coram's behalf during the twelve (12) months
                         immediately preceding the termination of his employment
                         hereunder. For purposes of this Agreement, Executive
                         had "Material Contact" with a Protected Customer if (a)
                         he had business dealings with the Protected Customer on
                         Coram's behalf; (b) he was responsible for supervising
                         or coordinating the dealings between Coram and the
                         Protected Customer; or (c) he obtained Trade Secrets or
                         Confidential Information about the Protected Customer
                         as a result of his association with Coram.

                     (iv)  NONCOMPETITION WITH CORAM. The parties acknowledge:
                           (A) that Executive's services under this Agreement
                           require special expertise and talent in the
                           provision of Competitive Services and that Executive
                           will have substantial contacts with customers,
                           suppliers, advertisers and vendors of Coram; (B)
                           that pursuant to this Agreement, Executive will be
                           placed in a position of trust and responsibility and
                           he will have access to a substantial amount of
                           Confidential Information and Trade Secrets and that
                           Coram is placing him in such position and giving him
                           access to such information in reliance upon his
                           agreement not to compete with Coram during the
                           Restricted Period; (C) that due to his/her
                           management duties, Executive will be the repository
                           of a substantial portion of the goodwill of Coram
                           and would have an unfair advantage in competing with
                           Coram; (D) that Executive is capable of competing
                           with Coram; and (E) that Executive is capable of
                           obtaining gainful, lucrative and desirable employment
                           that does not violate the restrictions contained in
                           this Agreement. In consideration of the compensation
                           and benefits being paid and to be paid by Coram to
                           Executive hereunder, Executive hereby agrees that,
                           during the Restricted Period, Executive will not,
                           without prior written consent of Coram, directly or
                           indirectly seek or obtain a Competitive Position in
                           the Restricted Territory with a

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                           Competitor; provided, however, that the provisions
                           of this Agreement shall not be deemed to prohibit
                           the ownership by Executive of any securities of a
                           Competitor of not more than five percent (5%) of any
                           class of securities of any corporation having a
                           class of securities registered pursuant to the
                           Securities Exchange Act of 1934, as amended.

        (d)       ENFORCEMENT OF RESTRICTIVE COVENANTS.

                  (i)      RIGHTS AND REMEDIES UPON BREACH. In the event
                           Executive breaches, or threatens to commit a breach
                           of, any of the provisions of the Restrictive
                           Covenants, Coram shall have the following rights and
                           remedies, which shall be independent of any others
                           and severally enforceable, and shall be in addition
                           to, and not in lieu of, any other rights and remedies
                           available to Coram at law or in equity:

                            (A)     the right and remedy to enjoin,
                                    preliminarily and permanently, Executive
                                    from violating or threatening to violate the
                                    Restrictive Covenants and to have the
                                    Restrictive Covenants specifically enforced
                                    by any court of competent jurisdiction, it
                                    being agreed that any breach or threatened
                                    breach of the Restrictive Covenants would
                                    cause irreparable injury to Coram and that
                                    money damages would not provide an adequate
                                    remedy to Coram; and

                            (B)     the right and remedy to require Executive to
                                    account for and pay over to Coram all
                                    compensation, profits, monies, accruals,
                                    increments or other benefits derived or
                                    received by Executive as the result of any
                                    transactions constituting a breach of the
                                    Restrictive Covenants; and

                           (C)      the right and remedy to suspend payment of
                                    any termination benefit payments (but not
                                    insurance or health benefits) during the
                                    pendency of any good faith dispute regarding
                                    Executive's breach of his/her covenants,
                                    provided that all amouns shall be paid to
                                    the Executive if Executive is found not to
                                    have been in breach of such covenants.

                  (ii)   SEVERABILITY OF COVENANTS. Executive acknowledges and
                         agrees that the Restrictive Covenants are reasonable
                         and valid in time and scope and in all other respects.
                         The covenants set forth in this Agreement shall be
                         considered and construed as separate and independent
                         covenants. Should any part or provision of any covenant
                         be held invalid, void or unenforceable in any court of
                         competent jurisdiction, such invalidity, voidness or
                         unenforceability shall not render invalid, void or
                         unenforceable any other part or provision of this
                         Agreement. If any portion of the foregoing provisions
                         is found to be invalid or unenforceable

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                         by a court of competent jurisdiction because its
                         duration, the territory, the definition of activities
                         or the definition of information covered is considered
                         to be invalid or unreasonable in scope, the invalid or
                         unreasonable term shall be redefined, or a new
                         enforceable term provided, such that the intent of
                         Coram and Executive in agreeing to the provisions of
                         this Agreement will not be impaired and the provision
                         in question shall be enforceable to the fullest extent
                         of the applicable laws.

SECTION 7.        ASSIGNMENT.

         (a) This Agreement is personal to the Executive and without the prior
written consent of Coram shall not be assignable by the Executive otherwise than
by will or the laws of descent and distribution. This Agreement shall inure to
the benefit of and be enforceable by the Executive's legal representatives.

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

SECTION 8.        ARBITRATION.

         (a) To the extent permitted by applicable law, any dispute or
controversy arising under or in connection with this Agreement shall be resolved
exclusively by arbitration using one arbitrator in the city closest to
Executive's primary work location under the auspices of and in accordance with
the Employment Arbitration rules of the American Arbitration Association then in
effect. The agreement set forth herein to arbitrate shall be specifically
enforceable under prevailing arbitration law.

         (b) By initialing below, the parties hereto (i) acknowledge that they
have read and understood the provisions of this section regarding arbitration
and (ii) that performance of this Agreement will be in interstate commerce as
that term is used in the Federal Arbitration Act, 9 U.S.C. Section 1 ET SEQ.,
and the parties contemplated substantial interstate activity in the performance
of this Agreement including, but not limited to, interstate travel, the use of
interstate phone lines, the use of the U.S. mail services and other interstate
courier services.

             [Executive]                                  For Coram:

             -------------------                          -------------------

         (c) Notice of the demand for arbitration shall be filed in writing
with the other party to this Agreement and with the American Arbitration
Association. The demand for arbitration shall be made within a reasonable time
after the claim, dispute or other matter in question has arisen, and in no event
shall it be made after the date when institution of legal or equitable
proceedings based on such claim, dispute or other matter in question would be
barred by the applicable statute of limitations.

                                      12

<PAGE>

         (d) The award rendered by the arbitrator shall be final and judgment
may be entered upon it in accordance with applicable law in any court having
jurisdiction thereof. The findings of fact and conclusions of law of the
arbitrator shall be reduced to writing.

SECTION 9.        FEES AND EXPENSES.

          In the event Executive incurs legal fees and any other expenses in
seeking to obtain or to enforce any rights or benefits provided by this
Agreement and is successful, in whole or in part, in obtaining or enforcing any
such rights or benefits through settlement, arbitration, or otherwise, Coram
shall pay Executive's reasonable, documented legal fees and expenses incurred in
enforcing this Agreement and the fees of the arbitrator or arbitrators. Except
to the extent provided in the preceding sentence, each party shall pay its own
legal fees and other expenses associated with any dispute.

SECTION 10.       CHOICE OF LAW.

         Except as otherwise specifically set forth in this Agreement, this
Agreement shall be interpreted, construed and governed in accordance with the
laws of the State of Colorado.

SECTION 11.       WAIVER OF BREACH.

         Failure of either party to insist, in one or more instances, on
performance by the other in strict accordance with the terms and conditions of
this Agreement shall not be deemed a waiver or relinquishment of any right
granted in this Agreement or of the future performance of any such term or
condition or of any other term or condition of this Agreement, unless such
waiver is contained in a writing signed by the party making the waiver.

SECTION 12.       NOTICES.

         All notices, requests, demands and other communications required or
permitted hereunder shall be in writing and shall be deemed to have been duly
given if delivered or three days after mailing if mailed, first class, certified
mail, postage prepaid:

                  To Coram:               Coram Healthcare Corporation
                                          1125 17th Street, Suite 2100
                                          Denver, CO  80202
                                          ATTN: Legal Department

                  To Executive:           At the address for notices listed in
                                          Exhibit A hereto.

         Any party may change the address to which notices, requests, demands
and other communications shall be delivered or mailed by giving notice thereof
to the other party in the same manner provided herein.

                                      13

<PAGE>

SECTION 13.       ENTIRE AGREEMENT.

         This Agreement constitutes the entire agreement of the parties with
respect to the subject matter hereof and supersedes any other employment
agreements, letters of understanding, whether written or oral, between the
parties with respect to the matters set forth herein. This Agreement may not be
changed orally, but only by an instrument in writing signed by the party against
whom enforcement of any waiver, change, modification, extension or discharge is
sought.

                                      14

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.

CORAM HEALTHCARE CORPORATION

By: /s/ RICHARD M. SMITH                      /s/ VITO PONZIO, JR.
    -------------------------------------     ---------------------------------
    Chief Executive Officer and President     [EXECUTIVE]

                                       15

<PAGE>

                                    EXHIBIT A

Name and primary residence address for notices:

Vito Ponzio, Jr.
751 Williams Street
Denver, CO  80218

Duration of Initial Term:  1 Year

Office and Duties:         Senior Vice President, Human Resources

Office of Person to Whom the Executive Reports:      President and CEO

Base Salary: $145,000 per year.

Severance Period:  12 months.

Primary Work Location:     Denver, Colorado

Change of Control Payment: $150,000

                                       16<PAGE>

                                                                   EXHIBIT 10.61

                  SEPARATION AND CONSULTING SERVICES AGREEMENT

     This Separation and Consulting Services AGREEMENT ("Agreement") is made and
entered into by and between Coram Healthcare Corporation, a Delaware corporation
("CHC" or "Company") and Joseph Smith ("Smith").

     WHEREAS, CHC and Smith entered into a certain Employment Agreement dated
April 26, 1999 (the "Employment Agreement") whereby CHC agreed to employ Smith
pursuant to the terms thereof;

     WHEREAS, CHC and Smith have mutually and amicably agreed upon the terms of
Smith's separation from employment with CHC, effective June 30, 2000;

     WHEREAS, CHC and Smith wish to resolve any and all disputes that may arise
out of Smith's employment with CHC;

     WHEREAS, CHC and Smith intend to enter into this Agreement to set forth the
terms and conditions of Smith's one-year sales consulting engagement with CHC.

     NOW THEREFORE, in consideration of the foregoing premises and the following
promises, the parties, intending to be legally bound, agree as follows.

     1.   THE TERM "CHC" OR "COMPANY". As used in this Agreement, the term "CHC"
or "Company" means collectively CHC, its subsidiaries, divisions and affiliates.
For purposes of this Agreement, the term "affiliates" shall have the same
definition as the term "affiliated group" in Section 1504(a) of the Internal
Revenue Code of 1986, as amended from time to time.

     2.   LAST WORKING DAY. Smith shall continue as the Company's Chief
Operating Officer and shall satisfactorily perform those duties incident to such
office and other duties as assigned by the Chief Executive Officer from time to
time through June 30, 2000. Smith's last working day as the Chief Operating
Officer and employee of CHC will be June 30, 2000 ("Last Working Day").

     3.   SALES CONSULTING SERVICES. Subject to Section 4(a)(ii) of this
Agreement, Smith shall provide sales consulting services on an independent
contractor basis to CHC, beginning on July 1, 2000, and continuing until June
30, 2001 ("Term"). Throughout the Term, Smith shall use his best efforts to
optimize Company sales and profits for its base infusion business. Smith shall
focus his efforts on the top line growth of CHC's infusion business and shall
have no operational responsibilities. Smith shall report to Coram's Chief
Executive Officer and President, Daniel D. Crowley ("Crowley"). Throughout the
Term, specific sales performance targets for Smith shall be agreed upon by Smith
and Crowley.

          (a)  INDEPENDENT CONTRACTOR. Throughout the Term in the performance of
all sales consulting services hereunder, it is mutually understood and agreed
that Smith shall be, and at all times, is acting and performing as an
independent contractor in the performance of his
<PAGE>

professional duties as a sales consultant. CHC shall neither have nor exercise
any control or direction over the methods by which Smith shall perform the
services required hereunder except as to the results of the work. Smith shall
complete the services required hereunder according to his own means and methods
of work, which shall be in his exclusive charge and control. During the Term,
Smith shall not be an employee or agent of CHC and shall not have any right to
bind CHC, to transact any business in CHC's name or on behalf of CHC in any
manner or form, or to make any promises or representations on behalf of CHC,
except while performing services as a consultant in accordance with the
provisions of this Agreement. Smith shall represent himself only as an
independent contractor.

          (b)  TIME. Smith agrees to devote all time, attention, knowledge and
skills as are reasonably necessary to the performance of services required
hereunder.

     4.   CHC'S PROMISES. In consideration of Smith's promises recited herein:

          (a)  PAYMENT AND BENEFITS.

               (i)  Smith shall be paid $25,700 on a monthly basis throughout
the Term. Except as described in Section 4(a)(iii) below, Smith shall not be
entitled to stock options, continued vesting of stock options, any
incentive/bonus programs, or any employee benefits. Because Smith is an
independent contractor, he shall not be paid overtime compensation, shall not
receive any holiday, sick or vacation pay, and shall be solely liable for all
taxes in accordance with this Section 4 (a)(i). Smith acknowledges and agrees
that CHC shall not have any obligation or liability whatsoever to Smith or his
successors, assigns or creditors for federal or state income or employment tax
withholding, payment of employment or unemployment insurance contributions,
minimum wage requirements, workers' compensation coverage, or other similar
taxes or liabilities, by reason of Smith's status as an independent contractor.
SPECIFICALLY, SMITH ACKNOWLEDGES THAT HE IS NOT ENTITLED TO WORKERS'
COMPENSATION OR UNEMPLOYMENT INSURANCE BENEFITS UNLESS WORKERS' COMPENSATION OR
UNEMPLOYMENT COMPENSATION COVERAGE IS PROVIDED BY SMITH OR BY SOME ENTITY OTHER
THAN CHC, AND THAT SMITH IS OBLIGATED TO PAY ALL FEDERAL AND STATE INCOME TAX ON
ANY MONEYS PAID TO SMITH PURSUANT TO THIS AGREEMENT.

               (ii) If prior to the expiration of the Term Smith accepts a job
or a position with another organization who is not a competitor of Coram and his
new position or engagement does not compete with Coram as defined in Section
5(b) hereof, Smith's sales consulting obligations as set forth in Section 3 of
this Agreement shall terminate and Coram shall continue to pay Smith $25,700 on
a monthly basis through the end of the Term. However, any and all other
obligations of Smith under this Agreement, including but not limited to those
set forth in Sections 5-11 herein, shall survive any expiration or termination
of this Agreement. In the event Smith wishes to enter into a business
relationship or otherwise take any action which he reasonably believes in good
faith will not violate the terms of his non-compete provision, Smith may request
approval from the Company to enter into such relationship or take such action.
If the Company's Chief Executive Officer (i) agrees that Smith's proposed
business relationship or action would not violate his non-compete provision or
(ii) fails to respond to Smith's written

                                       2
<PAGE>

request to the Company within thirty (30) days from the receipt of such written
request by the Company's Chief Executive Officer, then Smith shall be deemed to
have complete approval from the Company to take such actions or maintain such
business relationships described in Smith's written request to the Company.

              (iii) Beginning July 1, 2000, and continuing until the earlier of
the end of the Term or until Smith accepts a position with, or is otherwise
engaged by, another organization, Smith shall make payment to CHC on a monthly
basis in the amount of $243.34 on or before the first day of each month for the
continuation of Smith's then current medical and dental coverage under COBRA and
CHC shall pay the balance for such coverage. At the end of the Term or upon
Smith's acceptance of a position with or engaged by another organization, Smith
shall be entitled to continue his medical and dental coverage under COBRA for
the applicable statutory period at the full COBRA premium rate.

               (iv) On or before Smith's Last Working Day, he shall return to
CHC all CHC property in his possession. However, Smith shall be entitled to use
the Coram laptop computer currently in his possession until the earlier of the
end of the Term or until he accepts a position with or is otherwise engaged by
another organization.

          (b)  PAID TIME OFF/VACATION PAY. On CHC's next regular payday after
Smith's Last Working Day, Smith will be paid for any accrued but unused PTO
hours earned by Smith through his Last Working Day.

          (c)  STOCK OPTIONS. Under CHC's 1994 Stock Option Plan, Smith must
exercise any options which are vested as of his Last Working Day within ninety
(90) days of his separation with CHC or forfeit the options. Any vested options
not exercised by that time and day shall be forfeited.

          (d)  NON-DISPARAGEMENT. CHC shall not make any derogatory or negative
statement(s) about Smith which may affect his current or potential business
relationships. CHC's obligations hereunder shall survive the expiration or
termination of this Agreement.

     5.   SMITH'S PROMISES. In consideration of CHC's promises herein:

          (a)  RELEASE OF CLAIMS. Smith for himself and his representatives,
heirs, beneficiaries, successors, trustees, administrators and assigns, hereby
releases and discharges the Company, and any successor, parent, affiliate, or
subsidiary company of the Company, its present and former officers, directors,
employees, agents, representatives, legal representatives, accountants,
successors, and assigns, from any and all claims, demands, damages, debts,
commissions, liabilities, controversies, obligations, actions or causes of
action of any nature, known or unknown, suspected or unsuspected, that he may
have against the Company, its present and former agents, representatives, legal
representatives, accountants, successors, assigns, officers, directors and/or
employees, including, but not limited to, claims that in any manner relate to,
arise out of or involve any aspect of his employment with the Company, and the
separation of that employment, including, but not limited to, any rights or
claims under the Worker Adjustment and Retraining Notification Act ("WARN"), 29
U.S.C. Section 2101 et seq.;

                                       3
<PAGE>

Family and Medical Leave Act, 29 U.S.C. Section 2601 et seq.; Age Discrimination
in Employment Act, 29 U.S.C. Section 621 et seq.; Civil Rights Act of 1964, as
amended, 42 U.S.C. Section 2000e, et seq.; Vocational Rehabilitation Act, 29
U.S.C. Section 701, et seq.; Americans with Disabilities Act, 42 U.S.C. Section
12101, et seq.; Older Workers Benefit Protection Act; Executive Order 11246; the
Civil Rights Act of 1866, as reenacted, Employee Retirement Income Security Act
of 1974, 42 U.S.C. Section 1981; the National Labor Relations Act, as amended,
29 U.S.C. Section 141, et seq.; state anti-discrimination laws; and any and all
other municipal, state, and/or federal statutory, executive order, or
constitutional provisions pertaining to an employment relationship. This release
and waiver also specifically includes, but is not limited to, any and all claims
in the nature of tort or contract claims, and whether for compensatory,
punitive, equitable or other relief including specifically but not limited to
any claim of wrongful discharge, breach of contract, promissory estoppel,
intentional or negligent infliction of emotional distress, interference with
contract, libel, breach of covenant of good faith and fair dealing, or other
such claims, including, but not limited to, those arising out of or involving
any aspect of his employment with the Company. This release includes any and all
claims concerning attorney fees, costs, and any and all other expenses related
to the claims released herein. Provided, however, that this release and waiver
shall not apply to any rights which, by law, may not be waived; to rights and
claims which arise from acts or events occurring after the effective date of
this Agreement; or to claims for breach of this Agreement. Smith also
specifically covenants (a) that he will not bring suit or file any grievance,
charge or complaint of any nature in relation to any claim or right waived
herein; and (b) that he will immediately withdraw or otherwise secure the
immediate dismissal with prejudice any pending complaint, grievance, charge or
lawsuit by Smith, which is presently pending against the Company, without
further proceedings, or findings adverse to the Company.

          (b)  NON-COMPETE. For a period of twelve (12) months following Smith's
Last Working Day, provided the Company is not in breach or default hereof, the
Executive shall not (except on behalf of or with the prior written consent of
the Company as set forth in Section 4(a)(ii)), within the Area, either directly
or indirectly, on his own behalf or in the service or on behalf of others, as a
manager or consultant, or in any other capacity which involves duties and
responsibilities similar to those Smith has undertaken for the Company, engage
directly or indirectly in any Competing Business.

               (i)  As used in this Agreement, "Competing Business" means any
business organization of whatever form directly engaged in any business or
enterprise which is the same as, or substantially the same as, the business of
the Company.

               (ii) As used in this Agreement, "Area" shall mean any state or
territory in which CHC does business as of Smith's Last Working Day.

          (c)  NON-SOLICITATION OF EMPLOYEES OR CUSTOMERS. Smith agrees that,
for a period of twelve (12) months from his Last Working Day, he will not
directly or indirectly solicit any employee of CHC to leave CHC's employ for any
purpose, and further agrees that he will not directly or indirectly solicit any
customer or vendor of CHC as of his Last Working Day to switch from CHC to any
other provider of services, products or supplies of like kind to those provided
by CHC.

                                       4
<PAGE>

          (d)  CONFIDENTIALITY OF CHC INFORMATION. Smith agrees that he shall
not at any time or in any manner, either directly or indirectly, make any
unauthorized use or disclosure to the detriment of CHC of any knowledge or
information of a confidential or proprietary nature, generated or otherwise
acquired by him during the course of his past employment by CHC or its
predecessor(s) relating to the business or to its processes or trade secrets, or
to its sources of supply or customers, or to its marketing of infusion products
or services or other marketing plans or contemplated marketing actions of CHC;
provided, however, nothing contained herein shall be construed to prevent Smith
from using his general knowledge and skill, whether acquired prior to or during
Smith's employment by CHC. If Smith becomes legally compelled by oral questions,
interrogatories, request for information or documents, subpoena, criminal or
civil investigative demand or similar process to disclose any of CHC's
confidential information, proprietary information or trade secrets, Smith shall
provide CHC with prompt notice prior to disclosing any such information so that
CHC may seek a protective order or other appropriate remedy and/or waive
compliance with the provisions of this Agreement.

               Further, during Smith's past employment or upon leaving CHC's
employment, Smith specifically represents that he has not and will not remove
from CHC's premises, either directly or indirectly, any drawings, writing,
prints, computer disks, any documents or anything containing, embodying, or
disclosing any confidential or proprietary information or any of CHC's trade
secrets unless express written permission is given by a member of CHC's
executive management.

               For purposes of this section, the terms "confidential
information," "proprietary information," or "trade secrets" mean any
information, whether oral, written, furnished to or obtained by Smith during his
past employment by CHC or during the Term of his Sales Consulting engagement
with CHC, which is neither a matter of public record nor previously published
and which cannot be obtained by third parties without a breach of a similar
confidentiality obligation.

          (e)  RELEASE OF CLAIMS AS OF SMITH'S LAST WORKING DAY. Within 21 days
of his Last Working Day, Smith also agrees to execute Exhibit A attached hereto
and incorporated herein by reference. In consideration for his execution of
Exhibit A, Smith and CHC acknowledge and agree that Smith shall receive
additional consideration in the amount of $1,600.00.

          (f)  NON-DISPARAGEMENT. Smith shall not make any derogatory or
negative statement(s) about CHC that may adversely affect the current or
potential business relationships of CHC.

     The rights and obligations of this section shall survive any expiration or
termination of this Agreement.

          (g)  COOPERATION IN LITIGATION. Through his Last Working Day, Smith
agrees to cooperate and assist CHC in any litigation, arbitration, hearing,
audit or administrative matter, except in the event that Smith is an adverse
party to CHC in any matter. In addition, through his Last Working Day, if
requested by CHC, Smith shall testify at no cost to CHC. During the Term

                                       5
<PAGE>

of the Agreement, Smith shall agree to comply with any subpoena issued by CHC,
its counsel or the court and shall agree to submit to personal jurisdiction in
any matter regardless of venue or forum and hereby waives any objection based
upon lack of personal jurisdiction. Any and all reasonable costs or expenses
incurred by Smith in the performance of his obligations as set forth in this
Section 5 (g) shall be reimbursed by CHC as permitted by state and federal law.

     6.   REMEDIES FOR BREACH

          (a)  Smith agrees that to the extent that any provision or portion of
this Agreement shall be held, found, or deemed to be unlawful or unenforceable
by a court of competent jurisdiction, then any such provision or portion shall
be deemed modified to the extent necessary in order that any such provision or
portion shall be legally enforceable to the fullest extent permitted by
applicable law. Smith further agrees that any court of competent jurisdiction
shall, and Smith does hereby expressly authorize, request and empower any court
of competent jurisdiction to, enforce any provision or portion to the fullest
extent permitted by applicable law.

          (b)  Smith acknowledges and agrees that a breach or threatened breach
by Smith of Section 5 (b), (c), (d) or (f) of this Agreement would cause
irreparable injury to the Company, and there is no adequate remedy at law for
such violation. Accordingly, Smith specifically agrees and acknowledges that the
Company has the right, in addition to any and all other remedies available at
law or in equity, to enjoin Smith in a court of equity for violating such
provisions.

          (c)  Smith agrees that should he breach any provision of this
Agreement or upon re-employment with the Company or death, the Company may cease
all future payments under this Agreement.

     7.   INDEMNIFICATION.

          (a)  INDEMNIFICATION BY CHC THROUGH JUNE 30, 2000. All
indemnifications and protections afforded to Smith during his term as an
employee, director or officer of CHC shall be honored to the extent they are
applicable to any claims made or circumstances arising during the time of his
employment. Notwithstanding the foregoing, nothing in this Agreement is intended
to or shall terminate or modify the provisions of a certain Indemnification
Agreement by and between CHC and Joseph D. Smith dated October 22, 1999.

          (b)  INDEMNIFICATION OF CHC BY SMITH. Smith hereby agrees to
indemnify, defend and hold CHC harmless from any and all liabilities, losses,
costs, claims, damages, or other expenses, including reasonable attorneys' fees,
resulting from Smith's acts or omissions arising from the performance of
services hereunder during the Term hereof. Smith shall be entirely and solely
responsible for his acts and the acts of his agents, if any, while engaged in
the performance of services hereunder. Smith agrees to indemnify, defend and
hold the Company harmless from and against any and all loss, claim, liability or
cost of any kind whatsoever (including, but not limited to, workmen's
compensation premium or other benefit costs) arising from: (1) Smith's
recharacterization as an employee of the Company by any governmental agency; and
(2) Smith's failure to file returns for and pay any taxes, insurance costs or
any other

                                       6
<PAGE>

costs which he may owe as a result of being recharacterized as an employee of
CHC or the performance of services hereunder, as well as any liabilities, costs,
interests or penalties which may be assessed against CHC for its failure to
withhold against the amounts collected or paid on Smith's behalf. Smith further
agrees to indemnify, defend and hold CHC harmless from any and all liabilities,
losses, claims or costs, including attorneys' fees, defense costs and court
costs, arising or claimed to arise from tortious conduct, breach of contract, or
fault of Smith in rendering or failing to render services hereunder.

     8.   REFERENCES/PUBLIC STATEMENTS. The parties shall mutually agree upon
any statement(s) of reference to be provided on behalf of the other party, as
well as any statement(s) or press release(s) to be made by either party
concerning Smith's separation of employment from the Company or the sales
consulting services to be provided to CHC by Smith pursuant to this Agreement.

     9.   CONFIDENTIALITY. Except as required by law, the parties agree not to
disclose or publicize the terms of this Agreement, or to assist others to
disclose or publicize the terms of this Agreement, except that the parties may
disclose the terms of this Agreement to their respective legal and financial
advisors and immediate family members, as applicable. In addition, CHC may
disclose the terms of this Agreement to certain managers, and employees on a
need to know basis in the sole good faith discretion of CHC. However, the terms
of this provision shall apply to such third parties, as well as named parties to
this Agreement.

     10.  OWBPA ACKNOWLEDGMENT. Smith knowingly and voluntarily waives any and
all claims under the Age Discrimination in Employment Act of 1967 ("ADEA"), and
acknowledges the following:

          (a)  This waiver is part of an Agreement that is written in a manner
calculated to be understood by Smith.

          (b)  This waiver specifically refers to rights and claims arising
under the ADEA.

          (c)  Smith does not waive any claims under the ADEA that may arise
after the date this Agreement is executed.

          (d)  Smith waives ADEA rights or claims only in exchange for
consideration in addition to anything of value to which he is already entitled.

          (e)  Smith is advised to have an attorney of his choosing review this
Agreement prior to signing.

          (f)  Smith has 21 days from the date he receives this Agreement within
which to consider it, although he may accept this Agreement at any time within
those 21 days.

          (g)  Smith has seven days from the date Smith accepts and signs this
Agreement within which to revoke his acceptance. To be effective, such
revocation must be made in writing to Mr. Vito Ponzio, Jr., CHC's Senior Vice
President of Human Resources., and

                                       7
<PAGE>

received by the close of business on the seventh day following acceptance. The
Effective Date of this Agreement shall be the eighth day following Smith's
acceptance of this Agreement without revocation. If Smith exercises his right to
revoke this Agreement, the entire underlying agreement, as it applies to him
would be voided in its entirety, and he would not be entitled to any
consideration provided under the Agreement, including the payment described in
Section 4 of the Agreement or in Exhibit A thereof.

     11.  NON-ADMISSION CLAUSE. Nothing in this Agreement, including the payment
of any sum by CHC, constitutes an admission by CHC of any legal wrong prohibited
by local, state and federal law, contract or tort, rule or regulation concerning
Smith.

     12.  MISCELLANEOUS.

          (a)  This Agreement shall be governed by and construed in accordance
with the laws of the State of Colorado.

          (b)  This Agreement is contractual and not a mere recital. This
Agreement constitutes the entire contract between Smith and CHC. This Agreement
supersedes the Memorandum of Understanding between the parties dated March 24,
2000, the Employment Agreement between the parties dated April 26, 1999, and any
and all other oral and written agreements, letters, conversations,
understandings or representations between the parties concerning the subject
matter hereof.

          (c)  No amendment to this Agreement shall be effective unless it is in
writing and signed by duly authorized representatives of both parties hereto.

          (d)  This Agreement is binding upon and inures to the benefit of the
heirs, personal representatives, successors and assigns of both parties hereto.

          (e)  Smith specifically acknowledges that this Agreement is freely and
voluntarily executed by him, knowingly and voluntarily, after careful
consideration.

          (f)  Smith specifically acknowledges that this Agreement is intended
to be a valid legal, instrument, and no provision of this Agreement that may be
deemed unenforceable shall in any way invalidate any other provision of this
Agreement, all of which remains in full force and effect.

          (g)  Each party acknowledges the adequacy and sufficiency of the
consideration for his promises set forth in this Agreement. Each party is
estopped from raising and hereby expressly waives any defense regarding the
receipt and/or legal sufficiency of the consideration provided by one to the
other under this Agreement.

          (h)  The headings of this Agreement are intended for convenience of
reference and shall not control or affect its meaning or construction of any
provision hereof.

                                       8
<PAGE>

          (i)  All notices and other communications required or permitted
hereunder shall be deemed to have been duly given if delivered or three days
after mailing if mailed, first class mail, postage prepaid, to the parties at
the following addresses:

To Coram: Coram Healthcare Corporation
          1125 17th Street, Suite 2100
          Denver, CO  80202
          Attn: Allen J. Marabito

To Smith: Joseph Smith
          1726 Victoria Circle
          Allentown, PA  18103

RECEIVED on April 14, 2000.

/s/ JOSEPH SMITH
----------------------------
Joseph Smith

AGREED TO AND ACCEPTED this 17TH day of April, 2000.

/s/ JOSEPH SMITH
----------------------------            -----------------------
Joseph Smith                              Social Security No.

CORAM HEALTHCARE CORPORATION

By /s/ ALLEN J. MARABITO
  --------------------------
       Allen J. Marabito
Title: Executive Vice President

                                       9
<PAGE>

                                    EXHIBIT A

                                RELEASE OF CLAIMS

A.   RELEASE AND WAIVER

     In exchange for the consideration and other promises provided by Company
described in the Agreement, including but not limited to a lump sum payment of
$1,600.00, Smith for himself and his/her representatives, heirs, beneficiaries,
successors, trustees, administrators and assigns, hereby releases and discharges
the Company, and any successor, parent, affiliate, or subsidiary company of the
Company, its present and former officers, directors, employees, agents,
representatives, legal representatives, accountants, successors, and assigns,
from any and all claims, demands, damages, debts, commissions, liabilities,
controversies, obligations and actions or causes of actions of any nature, known
or unknown, suspected or unsuspected that he may have against Company, its
present or past officers, directors employees, agents, representatives, legal
representatives, accountants, successors and/or assigns including, but not
limited to, claims that in any manner relate to, arise out of or involve any
aspect of his/her employment with Company, and the separation of that
employment, including, but not limited to, any rights or claims under the Worker
Adjustment and Retraining Notification Act ("WARN"), 29 U.S.C. Section 2101 et
seq.; Family and Medical Leave Act, 29 U.S.C. Section 2601 et seq.; Age
Discrimination in Employment Act, 29 U.S.C. Section 621 et seq.; Civil Rights
Act of 1964, as amended, 42 U.S.C. Section 2000e, et seq.; Vocational
Rehabilitation Act, 29 U.S.C. Section 701, et seq.; Americans with Disabilities
Act, 42 U.S.C. Section 12101, et seq.; Older Workers Benefit Protection Act;
Executive Order 11246; the Civil Rights Act of 1866, as reenacted, Employee
Retirement Income Security Act of 1974, 42 U.S.C. Section 1981; the National
Labor Relations Act, as amended, 29 U.S.C. Section 141, et seq.; state
anti-discrimination laws; and any and all other municipal, state, and/or federal
statutory, executive order, or constitutional provisions pertaining to an
employment relationship. This release and waiver also specifically includes, but
is not limited to, any and all claims in the nature of tort or contract claims,
including specifically but not limited to any claim of wrongful discharge,
breach of contract, promissory estoppel, intentional or negligent infliction of
emotional distress, interference with contract, libel, breach of covenant of
good faith and fair dealing, or other such claims, and whether for compensatory,
punitive, equitable or other relief including, but not limited to, those arising
out of, relating to or involving any aspect of his/her employment with the
Company. This release includes any and all claims concerning attorney fees,
costs, and any and all other expenses related to the claims released herein.
Provided, however, that this release and waiver shall not apply to any rights
which, by law, may not be waived or to claims for breach of this Agreement.
Smith also specifically covenants (a) that he will not bring suit or file any
grievance, charge or complaint of any nature in relation to any claim or right
waived herein; and (b) that he will immediately withdraw or otherwise secure the
immediate dismissal with prejudice any pending complaint, grievance, charge or
lawsuit by Smith, which is presently pending against the Company, without
further proceedings, or findings adverse to the Company.

                                       10
<PAGE>

B.   WAIVER

     Smith understands that he has a full 21 days in which to consider this
Release of Claims. Any changes to this Release of Claims made by the parties,
whether material or immaterial, shall not restart the 21 day waiver period.
Smith may voluntarily waive this 21 day period and instead choose to accept and
execute this Release of Claims prior to the expiration of this period. If you
wish to voluntarily waive such 21 day time period, please initial
here:_________.

C.   REVOCATION PERIOD

     Smith acknowledges that the Company advised him to consult with an attorney
and financial advisor prior to signing this Release of Claims. Smith hereby
certifies his/her understanding that he may revoke the Release of Claims, as it
applies to him, within seven days following execution of the Release of Claims
and that the Release of Claims, as it applies to him, shall not become effective
or enforceable until that revocation period has expired. To be effective, such
revocation must be made in writing to Mr. Vito Ponzio, Jr., CHC's Senior Vice
President of Human Resources, and received by the close of business on the
seventh day following acceptance. He also understands that, should he revoke
this Release of Claims within the seven day period, the entire underlying
Agreement, as it applies to him, would be voided in its entirety, and he would
not be entitled to any consideration provided under the Agreement, including the
payment described in Section 4 of the Agreement and this Exhibit A thereto.

                                        ACKNOWLEDGED AND AGREED

                                        By: /s/ JOSEPH SMITH
                                            --------------------------------
                                               Joseph Smith

                                        Date: July 5, 2000
                                             -------------------------------

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