Document:

Amendment No. 1 to Feasibility, Development and Commercialization Agreement

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information
subject to the confidential treatment request. Omissions are designated as * * *. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 Exhibit 10.50 
 AMENDMENT NO. 1 TO FEASIBILITY, DEVELOPMENT AND COMMERCIALIZATION
AGREEMENT 
 This Amendment No. 1 to Feasibility, Development And Commercialization Agreement (“Amendment No. 1”) is entered into
effective January 23, 2007 (the “Amendment Date”) by and between DURECT Corporation (“DURECT”) and Voyager Pharmaceutical Corporation (“Voyager”). 
 PRELIMINARY STATEMENTS 
 A. Southern
BioSystems, Inc., an Alabama corporation (“SBS”), and Voyager have previously entered into that certain Feasibility, Development and Commercialization Agreement dated July 22, 2002 (the “Agreement”). Effective
December 31, 2002, SBS merged with and into DURECT, with DURECT as the surviving corporation. As a result of such merger, DURECT succeeded to all of the rights and obligations of SBS under the Agreement. 
 B. Voyager is currently engaged in collection and analysis of data from a clinical trial conducted for the Product prior to the Amendment Date, namely
Study VP-AD-301 (the “Specified Clinical Trial”), and desires financial and other assistance from DURECT to complete such collection and analysis. 
 C. DURECT is willing to provide financial and other assistance to Voyager. 
 D. DURECT and Voyager desire to
make certain amendments to the Agreement as set forth below. 
 THEREFORE, in consideration of the premises and mutual promises and covenants
herein contained and for good and valuable consideration, the sufficiency of which is hereby acknowledged, DURECT and Voyager hereby agree as follows: 
 1. Unless otherwise defined herein, all terms used herein shall have the same meaning ascribed to such terms in the Agreement. 
 2. DURECT hereby permanently waives its right to receive payment from Voyager under Section 7.1 for any and all Development Costs accrued up to the Amendment Date which remain unpaid as of the Amendment Date,
including amounts due under Invoice Nos. 2006027 $286,609.01 (Aug), 2006028 $253,444.56 (Sept), 2006039 $100,919.30 (Oct), 2006053 $62,310.73 (Nov) and 2006066 $23,654.22 (Dec) (the “Outstanding Development Costs”) and also
permanently waives its right to terminate the Agreement under Section 11.2(c)(ii) relating to non-payment of the Outstanding Development Costs by Voyager. 
 3. For the period commencing from the Amendment Date until April 30, 2007 (the “Data Analysis Period”), DURECT hereby agrees to not exercise its right to terminate the Agreement under
Section 11.2(c)(ii) for non-payment of amounts owed to DURECT by Voyager that accrue during the Data Analysis Period. The parties agree that DURECT shall not accrue any such amounts, such as Development Costs, and shall not be obligated to
perform any work under the Agreement, in each case during the Data Analysis Period without the prior written agreement of the parties. 
 4.
DURECT shall pay Voyager an amount equal to One Million Dollars ($1,000,000). Such payment shall be made, at DURECT’s election, by check delivered to Voyager or wire transfer to the bank account designated by Voyager within two
(2) business days of the execution of this Amendment by both parties. 

 5. Voyager shall use best efforts to collect, compile and analyze the data from the Specified Clinical
Trial in accordance with all Applicable Laws (including Good Clinical Practices) as expeditiously as possible in an accurate and scientifically sound fashion, provided that initial data analysis shall be completed by [* * ]. Voyager shall provide
DURECT via email with an update of the status of its efforts no less than [* *], and promptly provide to DURECT any information, including status, data, analyses and conclusions, etc. as reasonably requested by DURECT from time to time. In addition,
Voyager shall provide DURECT within [* * * ] after the completion of data analyses from the Specified Clinical Trial with [* * *], as well as any other supporting documentation related to the Specified Clinical Trial that DURECT may reasonably
request, provided that the same is in Voyager’s possession or reasonably obtainable by Voyager. Voyager shall use its best efforts to obtain all data required in the statistical analysis plan agreed to by the parties. 
 6. Section 7.3(a) shall be replaced in its entirety to read as follows: 
 (a) Subject to the terms and conditions of this Section 7.3, Voyager shall pay to DURECT the following royalties based on aggregate
Net Sales of the Product by Voyager, its Affiliates and sublicensees in the Territory during each calendar year (or part thereof): 
 Ten
Percent (10%) of Net Sales for that portion of aggregate Net Sales in such calendar year that is less than or equal to $[* * *]; 
 [* *
*] of Net Sales for that portion of aggregate Net Sales in such calendar year that exceeds $[* * *] but is less than or equal to $[* * *]; and 
 Fourteen Percent (14%) of Net Sales for that portion of aggregate Net Sales in such calendar year that exceeds $[* * *]; 
 provided that Voyager shall pay DURECT at least $[* * *] in royalties annually (the “Minimum Royalty”) commencing with the year in which the First Commercial Sale in any country in the Territory is made. In the event that
the First Commercial Sale is made at some time other than the beginning of a calendar year, the Minimum Royalty for such first year shall be prorated. 
 7. Section 7.3(b) of the Agreement shall be replaced in its entirety to read as follows: 
 (b) Voyager’s royalty payment obligations under this Section 7.3 shall commence with the First Commercial Sale of the Product and shall continue so long as Voyager and/or any Affiliate, successor, assign or sublicensee thereof
sells the Product. To the extent that royalties may not be collected in a certain country in the Territory under Applicable Law for the full royalty term hereunder, then the royalty due on sales in such country shall terminate after the maximum
period under which royalties may be collected under Applicable Law without effect on the royalties due hereunder with respect to sales made in other countries in the Territory. [* * *] 
 8. The following shall be added as Section 7.3(f) to the Agreement: 
 (f) In the event that Voyager or any Affiliate, successor or assign thereof sublicenses its rights under Section 8.2(b), in addition
to royalties and milestone payments under Section 7.2 and 7.3(a), DURECT shall be entitled to receive ten percent (10%) of any upfront, milestone or any special fees, payments or other consideration (including equity) received by Voyager
or any Affiliate, successor or assign thereof on account of such sublicense, but excluding any royalties on Product sales received by Voyager, as provision is made in Section 7.3(a) hereof for payment of royalties by Voyager to Durect;
provided, however, that if a payment is due hereunder for a milestone for which Voyager is obligated to pay DURECT under Section 7.2, Voyager shall be required to make either the payment due under this Section 7.3(f) or the payment due
under Section 7.2, whichever is greater, but shall not be obligated to make both such payments. 
  

					
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 * * * Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 

 9. The following shall be added as Section 8.7 to the Agreement: 
 Section 8.7 Right of Negotiation. (i) If Voyager or any Affiliate, successor, assign thereof decides not to Exploit the
Product for any reason, including any such decision by Voyager following a decision by a licensee of Voyager to abandon its rights under a license from Voyager, (which Voyager shall promptly notify DURECT in writing as soon as practicable but no
later than [* * *] after such decision) or (ii) if DURECT shall have terminated the Agreement pursuant to Section 11.2(c)(ii), DURECT shall have a right of first negotiation to obtain from Voyager an exclusive license, with the right to
sublicense, under the Voyager Patents and Project Information and Inventions, and the right to use all regulatory filings, Clinical Trial data and CMC data and all other intellectual property owned by Voyager, in each case to the extent solely
related to the Product, and the right to cross-reference any and all regulatory filings with respect to the Product, solely for purposes of Exploiting the Product. No later than [* * *] days after DURECT’s receipt of notice from Voyager under
(i) above or the effective date of termination under (ii) above, DURECT shall notify Voyager whether it wishes to exercise its right of first negotiation. If DURECT notifies Voyager that its wishes to exercise its right of first
negotiation, then Voyager shall allow DURECT to conduct reasonable diligence including providing to DURECT all information as reasonably requested by DURECT, and the Parties shall negotiate in good faith a definitive agreement covering such license
to DURECT for a period not to exceed [* * *] days from the date of DURECT’s notice of exercise. In the event that the Parties have not executed a definitive agreement within such [* * *]-day period, then Voyager shall have no further
obligations to DURECT. Prior to the exhaustion of DURECT’s right under this Section 8.7, Voyager may not offer nor negotiate with any third Person any license or assignment of subject matter covered by this right of negotiation.

 10. Sections 11.2(a), 12.1(iii), 12.2(iii) and the last sentence of Section 11.4 shall be deleted. 
 11. The following shall be added to the end of Section 5.7: 
 Notwithstanding anything herein to the contrary, however, Voyager shall at all times purchase all polymer required for manufacture of the
Product from DURECT, provided that Durect is able to supply the quantities required by Voyager. The parties agree to negotiate in good faith a supply agreement defining the terms of such polymer supply. 
 12. The following shall be added as Section 8.8 to the Agreement: 
 Section 8.8 [* * *] 
 13. Section 8.4 shall be replaced in its entirety to read as follows:

 Section 8.4. Third Person Litigation. If either party identifies or receives notice of an infringement or potential
infringement of a third Person’s intellectual property as a result of the Exploitation of the Product under this Agreement, such party shall promptly notify the other party and shall provide such other party with available evidence of such
potential infringement. The parties shall then consult each other about the course of action to be taken in response. 
 (a)
Regarding SBS Technology and Improvements. In the event that any third Person institutes against either party any action that alleges that the use of the SBS Technology or the SBS Improvements in connection with the Exploitation of the
Product in the Territory in accordance with the terms hereof infringes the intellectual property rights held by such Person, then, as between DURECT and Voyager, DURECT, shall have the first right to defend against such action upon notice to Voyager
delivered no later than [* * *] days after DURECT receives notice of the commencement of such action 

  

					
		 	48	 	CONFIDENTIAL

 * * * Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 

 
(or such shorter time period that would permit Voyager a reasonable opportunity to respond in a timely manner). If DURECT elects not to defend against such
action, then Voyager shall have the right to defend such action. The party defending such action shall, at its sole expense, assume direction and control of the defense of such action, including the right to settle such action on terms determined by
such defending party; provided that in no event shall the defending party enter into any settlement that adversely affects the interests of the other party or its Affiliates, whether under this Agreement or otherwise, without the other
party’s prior written consent, which shall not be unreasonably withheld or delayed. The other party, at the defending party’s expense, shall use all reasonable efforts to assist and cooperate with the defending party as reasonably
requested by the defending party in such action. If, as a result of any such action, a judgment is entered by a court of competent jurisdiction from which no appeal can be taken or from which no appeal is taken within the time permitted for appeal,
or a settlement is entered into such that any SBS Technology or the SBS Improvements cannot be used in connection with the Exploitation of the Product in the Territory without infringing the intellectual property rights of such Person, then Voyager
shall have the right either to (i) terminate this Agreement immediately or (ii) take such actions as it deems necessary to protect its interests, including the right to obtain a license from such third Person and to offset the cost of such
license against any amounts owed to DURECT hereunder; provided that the amount offset by Voyager shall not exceed [* * *] of the royalty rate then payable by Voyager pursuant to Section 7.3. 
 (b) Other Product Related Claims. In the event that during the term of this Agreement any third Person institutes against either
Party any action, other than actions set forth in Section 8.4(a), that alleges that the Exploitation of the Product in the Territory in accordance with the terms hereof infringes the intellectual property rights held by such Person, then, as
between DURECT and Voyager, Voyager, at its sole expense, shall have the sole right and obligation to contest, and assume direction and control of the defense of, such action, including the right to settle such action on terms determined by Voyager;
provided that in no event shall Voyager enter into any settlement that adversely affects the interests of DURECT or its Affiliates, whether under this Agreement or otherwise, without DURECT’s prior written consent, which shall not be
unreasonably withheld or delayed. DURECT, at Voyager’s expense, shall use all reasonable efforts to assist and cooperate with Voyager as reasonably requested by Voyager in such action. If, as a result of any such action, a judgment is entered
by a court of competent jurisdiction from which no appeal can be taken or from which no appeal is taken within the time permitted for appeal, or a settlement is entered into by Voyager, such that Voyager cannot Exploit the Product in a country in
the Territory, then DURECT shall have the right to terminate the rights granted to Voyager under Section 8.2 with respect to such country. 
  

					
		 	49	 	CONFIDENTIAL

 * * * Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 

 14. Voyager represents and warrants to DURECT that the documents and information provided by Voyager to
DURECT in connection with DURECT’s entry into this Amendment No. 1, including clinical data and financial information, are accurate and complete in all material respects. In addition, each party hereby represents and warrants to the other
party that such party’s representations and warranties set forth in Article IX of the Agreement are true and correct as of the Amendment Date, where each reference to the Agreement shall mean the Agreement as amended pursuant to this Amendment
No. 1. 
 15. Except as specifically provided in this Amendment No. 1, all other terms and conditions of the Agreement shall remain
the same. 
 16. This Amendment No. 1 shall be governed and interpreted in accordance with the law of the State of Delaware excluding
any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Amendment No. 1 to the substantive law of another jurisdiction. 
 17. This Amendment No. 1 may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which, taken
together, shall constitute one and the same instrument. This Amendment No. 1 may be executed by any party hereto by means of a facsimile transmission of an originally executed counterpart, the delivery of which facsimile transmission shall have
the same force and effect as the delivery of the originally executed counterpart. 
 [Signature Page Follows] 
  

					
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 * * * Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 

 IN WITNESS WHEREOF, each party has caused this Amendment No. 1 to be executed by its duly authorized representative
as of the date noted above in the preamble. 
  

									
	 DURECT CORPORATION
	 		 	VOYAGER PHARMACEUTICAL CORPORATION
					
	By:	 	/s/	 		 	By:	 	/s/
	Name:	 	Felix Theeuwes	 		 	Name:	 	Patrick S. Smith
	Title:	 	Chairman & CSO	 		 	Title:	 	Chairman & CEO

  

					
		 	51	 	CONFIDENTIAL

 * * * Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. 
 Confidential treatment has been requested with respect to the omitted portions.Employment Agreement

 EXHIBIT 10.3 
 EMPLOYMENT AGREEMENT 
 This EMPLOYMENT AGREEMENT is made as of the 22nd day of February 2007
by and between Kindred Healthcare, Inc., a Delaware corporation (the “Company”) and Edward L. Kuntz (“Kuntz”). 
 WITNESSETH: 
 WHEREAS, Kuntz is serving as Executive Chairman of the Board and the Company desires to continue the services
of Kuntz in that capacity; and 
 WHEREAS, the Executive Compensation Committee (the “Executive Compensation Committee”) of the
Board of Directors (the “Board”) has determined that it is in the best interests of the Company and its subsidiaries 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 Kuntz agree as follows: 
 1. Employment as Executive Chairman of the Board. 
 A. Term. The Company or one of its subsidiaries hereby agrees to employ Kuntz and Kuntz hereby agrees to be employed as Executive Chairman of the Board of Directors (“Executive Chairman”) effective on
the date hereof on the terms and conditions herein set forth. The term of this Agreement (the “Term”) shall be for a one-year period commencing on the date hereof (the “Effective Date”). The Term shall be automatically extended
by one additional day for each day beyond the Effective Date that Kuntz remains employed by the Company until such time as the Board of Directors elects to cease such extension by giving written notice of such election to Kuntz. In such an event,
the Agreement shall terminate on the first anniversary of the date of such election notice, unless a later date is specified. 
 B.
Duties. As Executive Chairman, Kuntz shall perform the following duties: (i) coordinate all Board matters and committee activities and act as the principal liaison between the Board and senior management; (ii) continue his
responsibility for public lobbying and relationships with various healthcare related organizations; (iii) advise the chief executive officer and senior management on strategic initiatives including financing, acquisition and development
activities; (iv) advise the chief executive officer and senior management concerning all compliance and regulatory matters including the Corporate Integrity Agreement; and (v) such other similar matters as reasonably requested by the
Board. 
 C. Extent of Services. Kuntz, subject to the direction and control of the Board, shall have the power and authority
commensurate with his status as Executive Chairman and necessary to perform his duties hereunder. During the Chairman Term, Kuntz shall devote approximately two days a week or 60 hours a month to the business of 

 
the Company. With notice to the Board, Kuntz may engage in any other business activities, whether or not such business activities are pursued for gain,
profit or other pecuniary advantage provided such activities do not conflict with the Company’s objectives and operations. 
 D.
Compensation. As compensation for services rendered as Executive Chairman, Kuntz shall receive during the Chairman Term: 
 (i) A salary (“Chairman Salary”) of not less than $855,000 per year payable in equal installments in accordance with the Company’s normal payroll procedures. Kuntz may receive increases in his Chairman Salary from time to
time, as approved by the Executive Compensation Committee. 
 (ii) Kuntz may be eligible to receive additional compensation as
the Executive Compensation Committee may approve from time to time but is not intended that Kuntz will continue to participate in the Company’s standard bonus or long-term incentive plans. 
 E. Benefits. During the Term: 
 (i) Kuntz shall be entitled to participate in any and all welfare benefit (including, without limitation, medical, dental, disability and group life insurance coverages) and fringe benefit plans from time to time in effect for executives of
the Company and its affiliates. 
 (ii) Kuntz may incur reasonable expenses for promoting the Company’s business,
including expenses for entertainment, travel and similar items. The Company shall reimburse Kuntz for all such reasonable expenses in accordance with the Company’s reimbursement policies and procedures. 
 (iii) Kuntz will continue to vest in his existing stock options, restricted stock and accrued long-term incentive benefits. 
 (iv) The Company shall provide Kuntz with an office suite in Houston, Texas and an administrative assistant substantially comparable to
his existing office suite and administrative assistant being furnished as of the date of this Agreement. 
 2. Termination of
Employment. 
 A. Death or Disability. Kuntz’s employment shall terminate automatically upon Kuntz’s death during the
Term. If the Board determines in good faith that the Disability of Kuntz has occurred during the Term (pursuant to the definition of Disability set forth below) it may give to Kuntz written notice of its intention to terminate Kuntz’s
employment. In such event, Kuntz’s employment with the Company shall terminate effective on the 30th day after receipt of such notice by Kuntz (the “Disability 

  

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Effective Date”), provided that, within the 30 days after such receipt, Kuntz shall not have returned to performance of Kuntz’s duties. For
purposes of this Agreement, “Disability” shall mean Kuntz’s absence from his duties hereunder for a period of 90 days. 
 B.
Cause. The Company may terminate Kuntz’s employment during the Term for Cause. For purposes of this Agreement, “Cause” shall mean Kuntz’s (i) conviction of or plea of nolo contendere to a crime involving
moral turpitude; or (ii) willful and material breach by Kuntz 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 Kuntz and his attorney an opportunity to be heard by the Board. 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 Kuntz in good faith and in the best interests of the Company.

 C. Good Reason. Kuntz’s employment may be terminated by Kuntz for Good Reason. “Good Reason” shall exist upon the
occurrence, without Kuntz’s express written consent, of any of the following events: 
 (i) The Company shall
(A) materially reduce the compensation of Kuntz or (B) materially reduce his benefits and perquisites; 
 (ii) The
Company shall require Kuntz to relocate Kuntz’s principal business office more than 30 miles from its location on the date of this Agreement; 
 (iii) If Kuntz ceases to be Chairman of the Board, for any reason, including failing to be elected at any annual or special meeting of the shareholders of the Company; or 
 (iv) the failure of the Company to obtain the assumption of this Agreement as contemplated by Section 5(c). 
 For purposes of this Agreement, “Good Reason” shall not exist until after Kuntz has given the Company notice of the applicable event within 10
days of such event and which is not remedied within 10 days after receipt of written notice from Kuntz specifically delineating such claimed event and setting forth Kuntz’s intention to terminate employment if not remedied; provided,
that if the specified event cannot reasonably be remedied within such 10-day period and the Company commences reasonable steps within such 10-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 30 days after receipt of such written notice. 
  

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 D. Retirement. Kuntz’s employment shall be terminated upon Retirement. For purposes of this
Agreement, “Retirement” means an election by either Kuntz or the Company to terminate this Agreement upon Kuntz reaching age 65 or anytime thereafter. 
 E. Notice of Termination. Any termination by the Company for Cause, by Kuntz for Good Reason or by either Kuntz or the Company upon Retirement, 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 Kuntz’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 10 days after the giving of such notice). The failure by Kuntz 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 Kuntz
or the Company, respectively, hereunder or preclude Kuntz or the Company, respectively, from asserting such fact or circumstance in enforcing Kuntz’s or the Company’s rights hereunder. 
 F. Date of Termination. “Date of Termination” means (i) if Kuntz’s employment is terminated by the Company for Cause, or by
Kuntz 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 Kuntz’s employment is terminated by the Company other than for Cause
Disability or Retirement, or Kuntz resigns without Good Reason (and other than due to Retirement), the Date of Termination shall be the date on which the Company or Kuntz notified Kuntz or the Company, respectively, of such termination (iii) if
Kuntz’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of Kuntz or the Disability Effective Date, as the case may be and (iv) if Kuntz’s employment is terminated by either
Kuntz or the Company upon Retirement, the date specified in the Notice of Termination. 
 3. Obligations of the Company Upon
Termination. Following any termination of Kuntz’s employment hereunder, the Company shall pay Kuntz his accrued wages through the Date of Termination and any amounts owed to Kuntz pursuant to the terms and conditions of the benefit plans
and programs of the Company at the time such payments are due. In addition, subject to Kuntz’s execution of a general release of claims in form satisfactory to the Company, Kuntz shall be entitled to the following additional payments:

 A. Death or Disability. Kuntz shall not be entitled to any additional benefits by reason of his death or Disability during the
Term. 
 B. Good Reason; Other than for Cause. If, during the Term, the Company shall terminate Kuntz’s employment other than for
Cause (but not for Disability or Retirement), or Kuntz shall terminate his employment for Good Reason: 
  

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 (i) Within 14 days of Kuntz’s Date of Termination, the Company shall pay to Kuntz an
amount equal to three times the Chairman Salary as the Date of Termination. 
 (ii) For a period of three years following the
Date of Termination, Kuntz shall be treated as if he had continued to be an executive for all purposes under the Company’s health insurance plan and dental insurance plan; or if Kuntz is prohibited from participating in such plans, the Company
shall otherwise provide such benefits. Following this continuation period, Kuntz shall be entitled to receive continuation coverage under Part 6 of Title I or ERISA (“COBRA Benefits”) treating the end of this period as a termination of
Kuntz’s employment if allowed by law. 
 (iii) For a period of three years following the Date of Termination, the Company
shall maintain in force, at its expense, Kuntz’s life insurance in effect under the Company’s voluntary life insurance benefit plan as of the Date of Termination. 
 (iv) For a period of three years following Kuntz’s Date of Termination, the Company shall provide short-term and long-term disability
insurance benefits to Kuntz equivalent to the coverage that Kuntz would have had had he remained employed under the disability insurance plans applicable to Kuntz on the Date of Termination. Should Kuntz become disabled during such period, Kuntz
shall be entitled to receive such benefits, and for such duration, as the applicable plan provides. 
 (v) To the extent not
already vested pursuant to the terms of such plan, Kuntz’s interests under the Company’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 Kuntz’s years of service with the Company. 
 (vi) The Company shall adopt
such amendments to its benefit plans, if any, as are necessary to effectuate the provisions of this Agreement. 
 (vii) Kuntz
shall be credited with an additional three years of vesting for purposes of all outstanding stock option and restricted stock awards and Kuntz will have an additional three years in which to exercise such stock options. 
 (viii) Following the Date of Termination, Kuntz shall receive the computer which Kuntz is utilizing as of the Date of Termination. In

  

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addition, Kuntz shall be entitled to the furniture in Kuntz’s office suite as of the Date of Termination. In addition, for a period of three years
following Kuntz’s Date of Termination, the Company shall provide Kuntz with an office suite and administrative assistant, each substantially comparable to the office suite and administrative assistant that were furnished to Kuntz as of the date
of Kuntz’s Date of Termination. 
 C. Cause; Other than for Good Reason. If Kuntz’s employment shall be terminated for Cause
or Kuntz terminates employment without Good Reason (and other than due to Kuntz’s death or Retirement) during the Term, this Agreement shall terminate without further additional obligations to Kuntz under this Agreement. 
 D. Retirement. If either Kuntz or the Company shall terminate this Agreement upon Retirement, Kuntz shall be entitled to the following:

 (i) For a period of three years following the Date of Termination, Kuntz shall be treated as if he had continued to be an
executive for all purposes under the Company’s health insurance plan and dental insurance plan; or if Kuntz is prohibited from participating in such plans, the Company shall otherwise provide such benefits. 
 (ii) Kuntz shall be credited with vesting of all outstanding stock option and restricted stock awards and Kuntz will have an additional
one year in which to exercise such stock options. 
 (iii) Kuntz shall receive the computer which Kuntz is utilizing as of the
Date of Termination. In addition, Kuntz shall be entitled to the furniture in Kuntz’s office suite as of the Date of Termination. In addition, for a period of three years following the Date of Termination, the Company shall provide Kuntz with
an office suite and administrative assistant, each substantially comparable to the office suite and administrative assistant that were furnished to Kuntz as of the Date of Termination. 
 E. Death after Termination. In the event of the death of Kuntz during the period Kuntz is receiving payments pursuant to this Agreement,
Kuntz’s designated beneficiary shall be entitled to receive the balance of the payments; or in the event of no designated beneficiary, the remaining payments shall be made to Kuntz’s estate. 
 4. 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 

  

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all reasonable attorneys’ and accountants’ fees of Kuntz in connection therewith, including any litigation to enforce any arbitration award.

 5. Successors. 
 A.
This Agreement is personal to Kuntz and without the prior written consent of the Company shall not be assignable by Kuntz otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable
by Kuntz’s legal representatives. 
 B. This Agreement shall inure to the benefit of and be binding upon the Company and its 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 Kuntz’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. 
 6. Other Severance Benefits. Kuntz
hereby agrees that in consideration for the payments to be received under this Agreement, Kuntz waives any and all rights to any payments or benefits under any plans, programs, contracts or arrangements of the Company or their respective affiliates
that provide for severance payments or benefits upon a termination of employment, other than the Change in Control Severance Agreement between the Company and Kuntz dated as of February 22, 2007 (the “Severance Agreement”);
provided that any payments payable to Kuntz hereunder shall be offset by any payments payable under the Severance Agreement. 
 7.
Withholding. All payments to be made to Kuntz hereunder will be subject to all applicable required withholding of taxes. 
 8.
Non-solicitation. During the Term and for a period of one year thereafter (collectively, the “Non-solicitation Period”), Kuntz 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 Kuntz 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 Kuntz 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 

  

 7 

 
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 Kuntz is in violation of any
covenant contained herein, for any reason whatsoever. 
 9. No Mitigation. Kuntz shall have no duty to mitigate his damages by seeking
other employment and, should Kuntz actually receive compensation from any such other employment, the payments required hereunder shall not be reduced or offset by any such compensation. Further, the Company’s obligations to make any payments
hereunder shall not be subject to or affected by any setoff, counterclaims or defenses which the Company may have against Kuntz or others. 
 10. 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 Kuntz: 
 Edward L. Kuntz 
 8807 Stable Crest Blvd. 
 Houston, Texas 77024 
 Facsimile: 713-840-6383 
 If to Company: 
 Kindred Healthcare, Inc. 
 680 South Fourth Street 
 Louisville, KY 40202 
 Attn: General Counsel 
 Facsimile: 502-596-4075 
 11.
Assignment to Subsidiary. The Company may assign its obligations under this Agreement to one or more of its subsidiaries but such assignment will not relieve the Company of its obligations and liabilities hereunder. 
 12. 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. 
 13. Entire Agreement; Amendment. This instrument contains the entire agreement of the
parties with respect to the subject matter hereof and supersedes all prior agreements (including the Employment Agreements dated March 24, 2003 and February 22, 2006 between the Company and Kuntz), promises, covenants, arrangements,

  

 8 

 
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 Kuntz and such officer of the Company specifically designated by the Board. 
 14. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Delaware. 
 15. Headings. The headings in this Agreement are for convenience only and shall not be used to interpret or construe its provisions. 

16. 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. 
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written. 
  

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

		 	Paul J. Diaz,
		 	President and Chief Executive Officer
		
		 	 /s/ Edward L. Kuntz

		 	EDWARD L. KUNTZ

  

 9

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