Document:

AMENDMENT OF THE 2005 STOCK INCENTIVE PLAN

 Exhibit 10.4 
 AMENDMENT OF THE 2005 STOCK INCENTIVE PLAN 
 TO ALLOW BENEFICIARY DESIGNATION 
 RESOLVED, that upon the recommendation of the Compensation & Benefits Committee and approval by the Board of Directors, the
Owens & Minor, Inc. 2005 Stock Incentive Plan is amended by substituting the following sentence for the first sentence in Section 6.04: 
 Any Options or SARs granted under this Plan shall be nontransferable except by will, by the laws of descent and distribution or in accordance with a beneficiary designation form provided by the Company and signed by
the Participant and filed with the Company. 
 AND FURTHER RESOLVED, that the appropriate officers of the Company are hereby
authorized and directed to take such actions and to execute such documents as may be necessary or desirable to implement the foregoing resolution, all without the necessity of further action by this Board. 
 AMENDMENT OF SECTION 7.02 OF THE 2005 STOCK INCENTIVE PLAN 
 WHEREAS, Article VIII of the 2005 Stock Incentive Plan (“the Plan”) provides for the award of performance shares which will entitle the participant to receive cash or a stock award or a combination
thereof upon satisfaction of the performance requirements as certified by the Compensation & Benefits Committee; and 
 WHEREAS, in connection with the award of performance shares under the Plan that would, if earned, be settled in whole or in part, by a grant of restricted stock, the Compensation & Benefits Committee recommends amending
Section 7.02 of the Plan to clarify that the minimum vesting rules do not apply to stock issued in settlement of performance shares; and 
 WHEREAS, the proposed amendment to Section 7.02 of the Plan does not require shareholder approval and Article XIV of the Plan authorizes the Board to approve the proposed amendment; 
 NOW THERFORE BE IT RESOLVED, that upon the recommendation of the Compensation & Benefits Committee, the Board of Directors approves the
following amendment (in bold face type) to Section 7.02 of the Plan to clarify the minimum vesting requirements for stock granted in settlement of earned performance shares: 
 7.02 Vesting. 
  

 32 

 The Administrator, on the date of the award, may prescribe that a Participant’s
rights in the Stock Award shall be forfeitable or otherwise restricted for a period of time or subject to such conditions as may be set forth in the Agreement. By way of example and not of limitation, the restrictions may postpone transferability,
vesting or both of the shares until the attainment of performance objectives prescribed by the Committee or may provide that the shares will be forfeited if the Participant separates from the service of the Company and its Related Entities before
the expiration of a stated term. If a Stock Award is not nonforfeitable and transferable upon its grant or is not issued in settlement of a performance share award, the period of restriction until full vesting shall be at least three years,
provided that the minimum period of restriction shall be at least one year in the case of a Stock Award to a Nonemployee Director or a Stock Award that will become transferable and nonforfeitable on account of the satisfaction of performance
objectives prescribed by the Administrator. 
  

 33AMENDMENT OF THE 1998 DIRECTOR'S COMPENSATION PLAN

 Exhibit 10.5 
 AMENDMENT OF THE 1998 DIRECTORS’ COMPENSATION PLAN TO 
 ALLOW BENEFICIARY DESIGNATION

 RESOLVED, that upon recommendation of the Governance & Nominating Committee and approval by the Board of Directors,
the Owens & Minor, Inc. 1998 Directors’ Compensation Plan is amended by substituting the following sentence for the first sentence in Section 10.03: 
 Except as provided in Section 3.07, a Participant may not transfer or assign any rights that he or she has under the Plan other than by will or the laws of descent and distribution; provided, however, that a
Participant’s interest in an Option or the Deferred Fee Program also may be transferred in accordance with a beneficiary designation form provided by the Company and signed by the Participant and filed with the Company. 
 AND FURTHER RESOLVED, that the appropriate officers of the Company be authorized and directed to take such actions and to execute such documents
as may be necessary or desirable to implement the foregoing resolutions, all without the necessity of further action by the Board of Directors. 
  

 34AMENDMENT OF THE 2003 DIRECTOR'S COMPENSATION PLAN

 Exhibit 10.6 
 AMENDMENT OF THE 2003 DIRECTORS’ COMPENSATION PLAN TO ALLOW 
 BENEFICIARY DESIGNATION

 RESOLVED, that upon the recommendation of the Governance & Nominating Committee and approval by the Board of
Directors, the Owens & Minor, Inc. 2003 Directors’ Compensation Plan is amended by substituting the following sentence for the first sentence in Section 10.03: 
 Except as provided in Section 3.07, a Participant may not transfer or assign any rights that he or she has under the Plan other than by will or the
laws of descent and distribution; provided, however, that a Participant’s interest in an Option or the Deferred Fee Program also may be transferred in accordance with a beneficiary designation form provided by the Company and signed by the
Participant and filed with the Company. 
 AND FURTHER RESOLVED, that the appropriate officers of the Company be authorized and
directed to take such actions and to execute such documents as may be necessary or desirable to implement the foregoing resolutions, all without the necessity of further action by the Board of Directors. 
  

 35Employment Agreement

 EXHIBIT 10.3 
 EMPLOYMENT AGREEMENT 
 This EMPLOYMENT AGREEMENT
(this “Agreement”) is made as of the 24th day of March, 2008 and is effective as of the 21st day of April, 2008 (the “Effective Date”), by and between Kindred Healthcare Operating, Inc., a Delaware corporation (the “Company”), and Christopher M. Bird
(the “Executive”). 
 W I T N E S S E T H: 
 WHEREAS, the Executive is employed by the Company, a wholly-owned subsidiary of Kindred Healthcare, Inc. (“Parent”), and the parties hereto
desire to provide for the terms of Executive’s employment by the Company; and 
 WHEREAS, the Company has determined that it is in the
best interests of the Company to enter into this Agreement. 
 NOW, THEREFORE, in consideration of the premises and the respective covenants
and agreements contained herein, and intending to be legally bound hereby, the Company and Executive agree as follows: 
 1.
Employment. Executive hereby represents and warrants to the Company that Executive has resigned in all capacities from Tenet Healthcare Corporation and its affiliates effective March 20, 2008. Accordingly, the Company hereby agrees to employ
Executive and Executive hereby agrees to be employed by the Company on the terms and conditions herein set forth. The term of this Agreement shall be for a one-year period commencing on the Effective Date and shall be automatically extended by one
additional day for each day beyond the Effective Date that the Executive remains employed by the Company until such time as the Company elects to cease such extension by giving written notice of such election to the Executive (the “Term”)
specifying the effective date of such notice. In such event, the Agreement shall terminate on the first anniversary of the effective date of such election notice. 
 2. Duties. Executive is engaged by the Company as President, Peoplefirst Rehabilitation, reporting directly to Frank J. Battafarano, Chief Operating Officer. As President of Peoplefirst
Rehabilitation, subject to approval of the Board of Directors of the Parent (the “Board”), Executive shall be appointed as a member of the Parent’s Executive Committee. 
 3. Extent of Services. Executive, subject to the direction and control of the Board and the Company, shall have the power and authority
commensurate with his executive status and necessary to perform his duties hereunder. During the Term, Executive shall devote his entire working time, attention, labor, skill and energies to the business of the Company, and shall not, without the
consent of the Company, be actively engaged in any other business activity, whether or not such business activity is pursued for gain, profit or other pecuniary advantage. Notwithstanding the foregoing, during the Term, Executive may, subject to the
approval of the Board which approval may be withheld in the Board’s sole discretion, devote reasonable time to activities other than those required under this Agreement involving 

 
professional, charitable, community, educational and similar organizations, including membership on the board of directors of such organizations. 

4. Compensation. As compensation for services hereunder rendered, Executive shall receive during the Term: 
 (a) A base salary of $300,000 per year (“Base Salary”) payable in equal installments in accordance with the Company’s normal payroll
procedures. Executive may receive increases in his Base Salary from time to time, as approved by the Board in its sole discretion. 
 (b)
During the Term, in addition to Base Salary, Executive will be eligible to participate in the Company’s short-term and long-term incentive plans, as such plans may be in effect from time to time, on a pro-rated basis for 2008 based on the
Effective Date and in each subsequent full or partial year of employment, subject to the following: 
 (1) the
Executive’s target bonus under the short-term incentive plan is 60% of Base Salary (the “Target Bonus”), with a maximum of 75%. 
 (2) the Executive’s target bonus under the long-term incentive plan is 45% of Base Salary (the “Target Long-Term Bonus”), with a maximum of 90%. 
 5. Benefits. During the Term: 
 (a)
Executive shall be entitled to participate in any and all pension benefit (whether tax qualified or non-qualified), welfare benefit (including, without limitation, medical, dental, disability and group life insurance coverages) and fringe benefit
plans from time to time in effect for officers of the Company and its affiliates following the Company’s standard waiting periods, if any. Until the time of eligibility, the Company will reimburse Executive for the difference between the cost
of maintaining COBRA coverage under Executive’s present medical insurance plan and the cost of coverage under the medical plan selected by Executive as an employee of the Company. 
 (b) Executive shall be entitled to participate in such bonus, stock option, or other incentive compensation plans of the Company and its affiliates as in
effect from time to time for officers of the Company. At the next regularly scheduled meeting of the Board of Directors of the Parent, the Chief Executive Officer will recommend that Executive be granted (i) 5,000 shares of restricted stock
that will vest in equal annual installments over four years, (ii) 7,500 employee stock options that will vest over three years from the grant date and have a seven year life, and (iii) 5,000 performance units that, subject to the
achievement of the applicable performance objectives for the applicable performance periods, will vest in equal installments in each of the next three annual performance periods. These equity grants would be subject to the terms and conditions of
the Kindred Healthcare, Inc. 2001 Stock Incentive Plan, Amended and Restated, and the applicable award agreement related thereto. 
  

 2 

 (c) Executive shall be entitled to earn paid time off each year up to a maximum of 208 hours per year,
subject to the Company’s policies, as in effect from time to time. The Executive shall schedule the timing of such paid time off in a reasonable manner. The Executive also may be entitled to such other leave, with or without compensation, as
shall be mutually agreed by the Company and Executive. 
 (d) Executive may incur reasonable expenses for promoting the Company’s
business, including expenses for entertainment, travel and similar items. The Company shall reimburse Executive for all such reasonable expenses in accordance with the Company’s reimbursement policies and procedures, as may be in effect from
time to time. 
 (e) The Company shall reimburse all reasonable relocation expenses incurred by Executive in accordance with the
Company’s Officer Relocation Policy. As an exception to this policy, in the event Executive’s Texas residence is not sold, the Company shall reimburse the Executive at the end of each month during the Transition Period (as defined) for the
following: At Executives option from time to time, (A) either (i) reasonable expenses incurred by Executive for travel from his Texas residence to Executive’s principal business office (as defined in Section 6(c)(4) of this
Agreement) and for associated lodging and rental car expense, or (ii) reasonable expenses incurred by Executive for the rental of temporary housing for his family in or around Louisville, Kentucky ((i) and (ii) are collectively, the
“Relocation Costs”) and (B) reasonable moving costs associated with the rental of temporary housing pursuant to item (ii) above and subsequent moving costs to permanent housing. Notwithstanding the foregoing, the monthly
Relocation Costs during the Transition Period shall not exceed $5,000. For purposes of this Agreement, the term “Transition Period” means the period beginning on the Effective Date and ending on the date that is the earlier of the date on
which Executive’s Texas residence is sold or the 18 month anniversary of the Effective Date. As a further exception to this policy, the Company will also reimburse Executive for any expenses invoiced to Executive under the Tenet Relocation
Benefit Agreement between Executive and Tenet Healthcare Corporation, up to a maximum of $7,500. In the event Executive voluntarily terminates his employment with the Company without Good Reason within one year from Executive’s move date,
Executive will reimburse the Company for a pro rata amount of Executive’s relocation and other expenses paid pursuant to the Company’s Officer Relocation Policy and the full amount of any payments made by the Company related to the Tenet
Relocation Benefit Agreement. 
  

 3 

 6. Termination of Employment. 
 (a) Death or Disability. Executive’s employment hereunder shall terminate automatically upon Executive’s death. If the Company determines
in good faith that the Disability of Executive has occurred during the Term (pursuant to the definition of Disability set forth below) it may give to Executive written notice of its intention to terminate Executive’s employment. In such event,
Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such notice by Executive (the “Disability Effective Date”), provided that, within the 30 days after such receipt, Executive shall not
have returned to full-time performance of Executive’s duties. For purposes of this Agreement, “Disability” shall mean Executive’s absence from his full-time duties hereunder for a period of 90 days due to disability as defined in
the long-term disability plan provided to Executive by the Company. 
 (b) Cause. The Company may terminate Executive’s
employment hereunder for Cause. For purposes of this Agreement, “Cause” shall mean the Executive’s (i) conviction of or plea of nolo contendere to a crime involving moral turpitude; or (ii) willful and material
breach by Executive of his duties and responsibilities, which is committed in bad faith or without reasonable belief that such breaching conduct is in the best interests of the Company and its affiliates, but with respect to (ii) only if the
Board adopts a resolution by a vote of at least 75% of its members so finding after giving the Executive and his attorney an opportunity to be heard by the Board and a reasonable opportunity of not less than 30 days to remedy or correct the
purported breaching conduct. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done,
by Executive in good faith and in the best interests of the Company. 
 (c) Good Reason. Executive’s employment may be terminated
during the Term by Executive for Good Reason. “Good Reason” shall exist upon the occurrence, without Executive’s express written consent, of any of the following events: 
 (1) a material adverse change in Executive’s authority, duties or responsibilities (other than any such change directly attributable
to the fact that the Company is no longer publicly owned); 
 (2) the Company shall materially reduce the Base Salary or
annual bonus opportunity of Executive; 
 (3) a material reduction of Executive’s benefits and perquisites (other than
pursuant to a uniform reduction applicable to all similarly situated executives of the Company) that constitutes a material breach by the Company of this Agreement; 
 (4) the Company shall require Executive to relocate Executive’s principal business office more than 30 miles, provided that the
Executive and the Company acknowledge that Executive’s principal business office is 680 South Fourth Street, Louisville, Kentucky 40202; or 
  

 4 

 (5) a failure of the Company to obtain the assumption of this Agreement as contemplated
by Section 9(c) that constitutes a material breach by the Company of this Agreement. 
 For purposes of this Agreement, “Good
Reason” shall not exist until after Executive has given the Company notice of the applicable event within 90 days of the initial occurrence of such event and which is not remedied within 30 days after receipt of written notice from Executive
specifically delineating such claimed event and setting forth Executive’s intention to terminate employment if not remedied; provided, that if the specified event cannot reasonably be remedied within such 30-day period and the Company
commences reasonable steps within such 30-day period to remedy such event and diligently continues such steps thereafter until a remedy is effected, such event shall not constitute “Good Reason” provided that such event is remedied within
60 days after receipt of such written notice. 
 (d) Notice of Termination. Any termination by the Company for Cause, or by Executive
for Good Reason, shall be communicated by Notice of Termination given in accordance with this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination
provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated and (iii) specifies the
intended termination date (which date, in the case of a termination for Good Reason, shall be not more than thirty days after the giving of such notice). The failure by Executive or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of Executive or the Company, respectively, hereunder or preclude Executive or the Company, respectively, from asserting such fact or circumstance in
enforcing Executive’s or the Company’s rights hereunder. 
 (e) Date of Termination. “Date of Termination” means
(i) if Executive’s employment is terminated by the Company for Cause, or by Executive for Good Reason, the later of the date specified in the Notice of Termination or the date that is one day after the last day of any applicable cure
period, (ii) if Executive’s employment is terminated by the Company other than for Cause or Disability, or Executive resigns without Good Reason, the Date of Termination shall be the date on which the Company or Executive notified
Executive or the Company, respectively, of such termination, and (iii) if Executive’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of Executive or the Disability Effective
Date, as the case may be. 
 7. Obligations of the Company Upon Termination. If this Agreement is terminated by the Company or the
Executive for any reason prior to the Effective Date, this Agreement shall end without further additional obligations of the Company. Following the termination of Executive’s employment during the Term for any reason, the Company shall pay
Executive his Base Salary through the Date of Termination and any amounts owed to Executive pursuant to the terms and conditions of the benefit plans and programs of the Company at the 

  

 5 

 time such payments are due. 
 In addition, subject to Section 7(e) hereof and the conditions set forth below, Executive shall be entitled to the following additional payments: 
 (a) Death or Disability. If, during the Term, Executive’s employment shall terminate by reason of Executive’s death or Disability, the
Company shall pay to Executive (or his designated beneficiary or estate, as the case may be) an amount equal to the product of (i) the annual bonus to which the Executive would have been entitled for the year of termination of employment had
Executive’s employment with the Company not been terminated, as determined in accordance with Section 4(b) hereof, if any, multiplied by (ii) a fraction, the numerator of which is the number of days in the period beginning on the
first day of the calendar year in which such termination occurs and ending on the Date of Termination and the denominator of which is 365. Such amount shall be paid on the date when such amounts would otherwise have been payable to the Executive if
Executive’s employment with the Company had not terminated, as determined in accordance with the terms and conditions of the applicable short-term incentive plan. 
 (b) Good Reason; Other than for Cause. If the Company shall terminate Executive’s employment during the Term other than for Cause (but not for Disability), or the Executive shall terminate his employment
for Good Reason: 
 (1) Within 14 days following Executive’s Date of Termination, the Company shall pay to Executive, in
a lump sum, an amount equal to: 
 (i) 1.5 times the sum of Executive’s (A) Base Salary rate (determined as of the
Date of Termination) and (B) Target Bonus (calculated by multiplying the Executive’s Base Salary rate at the Date of Termination by the Executive’s Target Bonus percentage then in effect), and 
 (ii) the product of (A) the Executive’s Target Bonus (calculated by multiplying the Executive’s Base Salary rate at the
Date of Termination by the Executive’s Target Bonus percentage then in effect) multiplied by (B) a fraction, the numerator of which is the number of days in the period commencing on the first day of the calendar year in which the Date of
Termination occurs and ending on the Date of Termination and the denominator of which is 365. 
 (2) In lieu of any amounts
otherwise due under the Company’s long-term incentive plan, the Company shall provide and pay the following amounts: 
 (i) for the year in which the Executive’s Date of Termination occurs, the Executive shall be entitled to a long-term incentive award equal to the product of (A) the Executive’s Target Long-Term Bonus opportunity (calculated
by multiplying the Executive’s Base Salary rate at the Date of Termination by the Executive’s Long-Term Target Bonus percentage then in effect) multiplied by (B) a fraction, the numerator of which is the number of days in the period
commencing on the first day of the calendar year in which the Date of Termination occurs and ending on the Date of Termination and the denominator 

  

 6 

 
of which is 365. Such amount shall be paid on the same schedule and in the same manner as if the Executive had remained employed with the Company through
settlement of such long-term incentive award, as determined in accordance with the terms and conditions of the Company’s long-term incentive plan. 
 (ii) with respect to years prior to the year in which the Executive’s Date of Termination occurs and to the extent not yet paid, the Company shall pay to Executive any amounts earned by the Executive prior to the
Date of Termination under the Company’s long-term incentive plan. Such amount shall be paid on the same schedule and in the same manner as if the Executive had remained employed with the Company through settlement of such long-term incentive
award, as determined in accordance with the terms and conditions of the Company’s long-term incentive plan. 
 (3) For
the 18-month period following the Date of Termination, the Executive shall be treated as if he had continued to be an Executive for all purposes under the Parent’s Health Insurance Plan and Dental Insurance Plan; or if the Executive is
prohibited from participating in such plans, the Company or Parent shall otherwise provide such benefits. Executive shall be responsible for any employee contributions for such insurance coverage. Following this 18-month period, the Executive shall
be entitled to receive continuation coverage under Part 6 of Title I of ERISA (“COBRA Benefits”), by treating the end of the 18-month period as the applicable qualifying event (i.e., as a termination of employment for purposes of ERISA
§ 603(2)) and with the concurrent loss of coverage occurring on the same date, to the extent allowed by law. 
 (4) For
the 18-month period following the Date of Termination, Parent shall maintain in force, at its expense, the Executive’s life insurance in effect under the Parent’s voluntary life insurance benefit plan as of the Date of Termination.
Executive shall be responsible for any employee contributions for such insurance coverage. For purposes of clarification, the portion of the premiums in respect of such voluntary life insurance for which Executive and Parent are responsible,
respectively, shall be the same as the portion for which Executive and Parent are responsible, respectively, immediately prior to the Date of Termination. 
 (5) For the 18-month period following the Date of Termination, the Company or Parent shall provide short-term and long-term disability insurance benefits to Executive equivalent to the coverage that the Executive
would have had he remained employed under the disability insurance plans applicable to Executive on the Date of Termination. Executive shall be responsible for any employee contributions for such insurance coverage. Should Executive become disabled
during such period, Executive shall be entitled to receive such benefits, and for such duration, as the applicable plan provides. For purposes of clarification, the portion of the premiums in respect of such short-term and long-term disability
benefits for which Executive and Parent are responsible, respectively, shall be the same as the portion for which Executive and Parent are responsible, respectively, immediately prior to the Date of Termination. 
  

 7 

 (6) To the extent not already vested pursuant to the terms of such plan, the
Executive’s interests under the Parent’s retirement savings plan shall be automatically fully (i.e., 100%) vested, without regard to otherwise applicable percentages for the vesting of employer matching contributions based upon the
Executive’s years of service with the Company, to the extent permissible by law. 
 (7) Any outstanding stock options,
shares of restricted stock or other similar equity compensation awards, such as stock performance units, held by Executive on the Date of Termination shall continue to vest as originally scheduled over the 18 month period immediately following the
Date of Termination (the “Tail Vesting Period”) as if Executive had remained an employee of the Company through the end of such period. In addition, Executive shall have the right to continue exercise any such options during the Tail
Vesting Period; provided that in no event shall the Executive be entitled to exercise any such option beyond the original expiration date of such option. 
 (8) Parent shall adopt such amendments to its benefit plans and other agreements referred to in this Agreement, if any, as are necessary to effectuate the provisions of this Section 7. To the extent an applicable
plan or agreement cannot be so amended due to nondiscrimination or other requirements applicable to the plan, Parent shall adopt or implement an alternative written plan or program to accomplish the purpose. 
 (9) Notwithstanding anything in this Agreement to the contrary, in no event shall the provision of in-kind benefits pursuant to this
Section 7 during any taxable year of Executive affect the provision of in-kind benefits pursuant to this Section 7 in any other taxable year of Executive. 
 (c) Cause; Other than for Good Reason. If Executive’s employment shall be terminated during the Term for Cause or Executive terminates employment without Good Reason (and other than due to such
Executive’s death) during the Term, this Agreement shall terminate without further additional obligations to Executive under this Agreement. 
 (d) Death after Termination. In the event of the death of Executive during the period Executive is receiving payments pursuant to this Agreement, Executive’s designated beneficiary shall be entitled to receive the balance of the
payments owed to the Executive hereunder; or in the event of no designated beneficiary, the remaining payments shall be made to Executive’s estate. 
 (e) General Release of Claims. Notwithstanding anything herein to the contrary, the amounts payable pursuant to this Section 7 are subject to the condition that Executive has delivered to the Company an
executed copy of a general release of claims in a form satisfactory to the Company within 60 days after the Executive’s separation from service. Any payment that otherwise would be made within such 60-day period pursuant to this Section 7
shall by paid at the expiration of such 60-day period; provided that in-kind benefits provided in subsection (b)(3), (4) and (5) of this Section 7 shall continue in effect after separation from service pending the execution and
delivery of such release for a period not to exceed 60 days, 

  

 8 

 
and provided further that if such release is not executed and delivered within such 60-day period, Executive shall reimburse the Company for the full cost of
coverage during such period. 
 (f) Specified Employee. Notwithstanding anything herein to the contrary, (i) if at the time of
Executive’s separation from service Executive is a “specified employee” as defined in Section 409A of the Internal Revenue Code of 1986, as amended and the regulations promulgated thereunder (the “Code”) and the
deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such separation from service is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then the
payments to which Executive would otherwise be entitled during the first six months following his separation from service shall be deferred and accumulated (without any reduction in such payments or benefits ultimately paid or provided to Executive)
for a period of six months from the date of separation from service and paid in a lump sum on the first day of the seventh month following such separation from service (or, if earlier, the date of the Executive’s death). 
 8. Disputes. Any dispute or controversy arising under, out of, or in connection with this Agreement shall, at the election and upon written demand
of either party, be finally determined and settled by binding arbitration in the City of Louisville, Kentucky, in accordance with the Labor Arbitration rules and procedures of the American Arbitration Association, and judgment upon the award may be
entered in any court having jurisdiction thereof. The Company shall pay all costs of the arbitration and all reasonable attorneys’ and accountants’ fees of the Executive in connection therewith, including any litigation to enforce any
arbitration award. 
 9. Successors. 
 (a) This Agreement is personal to Executive and without the prior written consent of the Company shall not be assignable by Executive otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by Executive’s legal representatives. 
 (b) This Agreement shall inure to the benefit
of and be binding upon the Company, its Parent and their successors and assigns. 
 (c) The Company shall require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, or any business of the Company for which Executive’s services are principally performed, to assume
expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used this Agreement, “Company” shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. 
 10. Other Severance Benefits. Executive hereby agrees that in consideration for the payments to be received under this Agreement, Executive waives any and all rights to any payments or benefits under any
severance plans or arrangements of the Company or its affiliates 

  

 9 

 
that specifically provide for severance payments, other than the Change in Control Severance Agreement between the Company and Executive (the “Change in
Control Severance Agreement”) dated March 24, 2008; provided that any payments payable to Executive hereunder, other than those payments and benefits provided for under Section 7(b)(3) hereof, shall be offset by any payments payable
under the Change in Control Severance Agreement. 
 11. Withholding. All payments to be made to Executive hereunder will be subject to
all applicable required withholding of taxes. 
 12. No Mitigation. Executive shall have no duty to mitigate his damages by seeking
other employment and, should Executive actually receive compensation from any such other employment, the payments required hereunder (including without limitation the provision of in-kind benefits provided under Section 7(b)) shall not be
reduced or offset by any such compensation. Further, the Company’s and Parent’s obligations to make any payments hereunder shall not be subject to or affected by any setoff, counterclaims or defenses which the Company or Parent may have
against Executive or others. 
 13. Non-solicitation. From the date hereof through the Term and for a period of one year thereafter
(collectively, the “Non-Solicitation Period”), Executive shall not directly or indirectly, individually or on behalf of any person other than the Company, aid or endeavor to solicit or induce any of the Company’s or its
affiliates’ employees to leave their employment with the Company or such affiliates in order to accept employment with Executive or any other person, corporation, limited liability company, partnership, sole proprietorship or other entity. If
the restrictions set forth in this section would otherwise be determined to be invalid or unenforceable by a court of competent jurisdiction, the parties intend and agree that such court shall exercise its discretion in reforming the provisions of
this Agreement to the end that the Executive will be subject to a non-solicitation covenant which is reasonable under the circumstances and enforceable by the Company. It is agreed that no adequate remedy at law exists for the parties for violation
of this section and that this section may be enforced by any equitable remedy, including specific performance and injunction, without limiting the right of the Company to proceed at law to obtain such relief as may be available to it. The running of
the Non-solicitation Period shall be tolled for any period of time during which Executive is in violation of any covenant contained herein, for any reason whatsoever. This Section 13 shall survive this Agreement. 
 14. Notices. Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given
when delivered or sent by telephone facsimile transmission, personal or overnight couriers, or registered mail with confirmation or receipt, addressed as follows: 
 If to Executive: 
 Christopher M. Bird 
 680 South Fourth Street 
 Louisville, KY 40202

  

 10 

 If to Company: 
 Kindred Healthcare Operating, Inc. 
 680 South Fourth Street 
 Louisville, KY 40202 
 Attn: General Counsel

 15. Waiver of Breach and Severability. The waiver by either party of a breach of any provision of this Agreement by the other party
shall not operate or be construed as a waiver of any subsequent breach by either party. In the event any provision of this Agreement is found to be invalid or unenforceable, it may be severed from the Agreement and the remaining provisions of the
Agreement shall continue to be binding and effective. 
 16. Entire Agreement; Amendment. This instrument contains the entire
agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements, promises, covenants, arrangements, communications, representations and warranties between them, whether written or oral with respect to the
subject matter hereof. No provisions of this Agreement may be modified, waived or discharged unless such modification, waiver or discharge is agreed to in writing signed by Executive and such officer of the Company specifically designated by the
Board. 
 17. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Delaware.

 18. Headings. The headings in this Agreement are for convenience only and shall not be used to interpret or construe its
provisions. 
 19. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original
but all of which together shall constitute one and the same instrument. 
 20. Survival. Any provision of this Agreement creating
obligations extending beyond the Term of this Agreement shall survive the expiration or termination of this Agreement, regardless of the reason for such termination. 
 21. Section 409A. If any provision of this Agreement (or any award of compensation or benefits provided under this Agreement) would cause Executive to incur any additional tax or interest under
Section 409A of the Code (“§ 409A”), the Company shall reform such provision to comply with § 409A and agrees to maintain, to the maximum extent practicable without violating § 409A, the original intent and economic
benefit to Executive of the applicable provision; provided that nothing herein shall require the Company to provide Executive with any gross-up for any tax, interest or penalty incurred by Executive under § 409A. Furthermore, notwithstanding
anything herein to the contrary, no payment or benefit payable under this Agreement shall be required to be paid or provided in calendar year 2008 if the payment of such payment or benefit would constitute an impermissible acceleration under §
409A and the transition guidance thereunder and such payment shall instead be paid on January 1, 2009, without interest. 
  

 11 

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

  

			
	KINDRED HEALTHCARE OPERATING, INC.
		
	By:	 	 /s/ Paul J. Diaz

		 	Paul J. Diaz
		 	President and Chief Executive Officer
	
	Solely for the purpose of Section 7 and Section 9
	
	KINDRED HEALTHCARE, INC.
		
	By:	 	 /s/ Paul J. Diaz

		 	Paul J. Diaz
		 	President and Chief Executive Officer
	
	 /s/ Christopher M. Bird

	CHRISTOPHER M. BIRD

  

 12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]