Document:

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                                                                   Exhibit 10.34

                                 LIMITED RELEASE

      This Limited Release is granted as of this 27th day of December, 1999, to
VistaCare, Inc., a Delaware corporation ("Vista"), by the persons listed on
Exhibit A hereto (the "Series B Stockholders").

      The following facts are hereby acknowledged:

      1.    The Series B Stockholders are all of the holders of Vista's Series B
Preferred Stock, $.01 par value per share ("Series B Preferred Stock").

      2.    Vista and certain of the Series B Stockholders (the 1998
Purchasers") are parties to a Preferred Stock Purchase Agreement dated as of
December 30, 1998 (the "1998 Agreement") pursuant to which Vista issued to the
1998 Purchasers and the 1998 Purchasers purchased from Vista shares of Series B
Preferred Stock ("Series B Shares").

      3.    Pursuant to Section 3.6, Section 3.7 (last sentence only) and
Section 3.26 of the 1998 Agreement Vista made certain representations and
warranties to the Purchasers (collectively, the "Financial Information
Representations").

      4.    In reliance on the Financial Information Representations, (a) the
1998 Purchasers acquired the Series B Shares and (b) all of the Series B
Stockholders approved the Second Amended and Restated Certificate of
Incorporation of Vista, pursuant to which the conversion price of the Series B
Preferred Stock (the "Series B Conversion Price") was fixed at $2.21 per share
(the "Conversion Price Adjustment").

      5.    There has been disagreement between Vista and the Series B
Stockholders regarding the accuracy of the Financial Information Representations
and the damages suffered by the Series B Stockholders arising from the alleged
breach thereof.

      6.    If the Conversion Price Adjustment had not been made, the matrix and
formula for determining the Series B Conversion
<PAGE>
Price pursuant to Vista's First Amended and Restated Certificate of
Incorporation would have resulted in a Series B conversion price equal to
approximately $1.70 per share, based upon Vista's actual financial performance.

      7.    Vista and the Series B Stockholders desire to fully and finally
settle any and all claims the Series B Stockholders may have against Vista
arising from the Financial Information Representations.

      8.    Pursuant to a Stock Purchase Agreement (the "1999 Agreement") dated
as of December 23, 1999 among Vista and certain of the Series B Stockholders
(the "1999 Purchasers") and certain other parties, such parties are on the date
hereof consummating (a) the sale of shares of Vista's Class C Common Stock, $.01
par value per share (the "Class C Shares"), and shares of Vista's Series D
Convertible Preferred Stock, $.01 par value per share, by Vista to the 1999
Purchasers and such other parties, and (b) certain other transactions.

      The Class C Shares are being sold by Vista pursuant to the 1999 Agreement
at par value, which will put the Series B Stockholders in approximately the same
position they would be in if the Conversion Price Adjustment had not been made.
The sale of the Class C Shares at such price is intended to represent an
adjustment to the purchase price previously paid by the Series B Stockholders
for Series B Shares.

      9.    The Board of Directors of Vista has determined that the purchase
price being paid by the Series B Stockholders for the Class C Shares together
with this limited release has a fair value equal to or greater than the value of
the Class C Shares being issued by Vista pursuant to the 1999 Agreement.

      In consideration of the transactions being consummated in connection with
the 1999 Agreement, including the issuance of the Class C Shares to the 1999
Purchasers at a purchase price equal to $.01 per share, each Purchaser, on
behalf of itself and its partners, agents, representatives, attorneys,
successors and assigns, hereby releases and forever discharges Vista and its
subsidiaries, affiliates, predecessors, successors, assigns, and each and all of
their respective current and former officers, directors, employees, attorneys,
agents and representatives from any and all causes of actions, claims for
damages, suits, debts,
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benefits, demands, accounts, covenants, contracts, agreements, attorneys' fees,
sums of money, advances and claims of every name and nature, known or unknown,
arising or which may have existed from the beginning of the world to this date,
arising from the Financial Information Representations. This limited release
relates only to the Financial Information Representations and not to any claims
that may arise under the 1999 Agreement including, but not limited to, any
comparable financial representations contained therein nor to any other claims
which have arisen or may arise otherwise under the 1998 Agreement.
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      IN WITNESS WHEREOF, the Purchasers have executed this Release by their
duly authorized representatives as of the date first written above.

                                        HEALTH CARE CAPITAL PARTNERS, L.P.

                                        By:  Ferrer Freeman Thompson & Co.
                                                 LLC, its General Partner

                                             By: /s/ Robert T. Thompson
                                                 ---------------------------
                                                 Robert T. Thompson,
                                                 Manager

                                        HEALTH CARE EXECUTIVE PARTNERS, L.P.

                                        By:  Ferrer Freeman Thompson & Co.
                                                 LLC, its General Partner

                                             By: /s/ Robert T. Thompson
                                                 ---------------------------
                                                 Robert T. Thompson,
                                                 Manager

                                        BESSEMER VENTURE PARTNERS III L.P.

                                        By:  Deer III & Co., general
                                                 partner

                                             By: /s/ Robert H. Buescher
                                                 ---------------------------
                                                 Robert H. Buescher,
                                                 general partner

                                        *
                                        ------------------------------------
                                        William T. Burgin

                                        BRIMSTONE ISLAND CO. L.P.
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                                        By: *
                                            --------------------------------
                                        *
                                        ------------------------------------
                                        Neill H. Brownstein

                                        /s/ Robert H. Buescher
                                        ------------------------------------
                                        Robert H. Buescher

                                        HARDYMON FAMILY LIMITED PARTNERSHIP

                                        By: *
                                            --------------------------------

                                        *
                                        ------------------------------------
                                        Christopher F. O. Gabrieli

                                        GABRIELI FAMILY FOUNDATION

                                        By: *
                                            --------------------------------

                                        *
                                        ------------------------------------
                                        Michael I. Barach

                                        *
                                        ------------------------------------
                                        David J. Cowan

                                        *
                                        ------------------------------------
                                        Gautam A. Prakash

                                        *
                                        ------------------------------------
                                        Robi L. Soni

                                        *
                                        ------------------------------------
                                        Rodney A. Cohen
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                                        *
                                        ------------------------------------
                                        Richard R. Davis

                                        *
                                        ------------------------------------
                                        Adam P. Godfrey

                                        BELISARIUS CORPORATION

                                        By: *
                                            --------------------------------

                                        *
                                        ------------------------------------
                                        Robert J. S. Roriston

                                        *
                                        ------------------------------------
                                        Brenda M. Henegan

                                        *
                                        ------------------------------------
                                        Bradford Mills

                                        *
                                        ------------------------------------
                                        Thomas F. Ruhm

                                        *
                                        ------------------------------------
                                        Russell D. Sternlicht

                                        QUENTIN CORPORATION

                                        By: *
                                            --------------------------------

                                        BVP III SPECIAL SITUATIONS L.P.

                                        By:  Deer III & Co. LLC,
                                                 general partner

                                             By: /s/ Robert H. Buescher
                                                 ---------------------------
                                                 Robert H. Buescher,
                                                 Manager
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                                            *By: /s/ Robert H. Buescher
                                                 ---------------------------
                                                 Robert H. Buescher,
                                                 attorney-in-fact<PAGE>
                                                                   Exhibit 10.35

                              RESTRICTION AGREEMENT

      This Agreement, dated as of July 1, 2002, is entered into by VistaCare,
Inc., a Delaware corporation (the "Company"), the Barry and Julia Smith Family
Trust (the "Trust") and B&J Smith Associates, Limited Partnership, an Arizona
limited partnership (the "Partnership").

      WHEREAS, Barry M. Smith ("Smith") proposes to transfer [5,023,750] shares
(the "Shares") of VistaCare, Inc. Class A Common Stock, $.01 par value per
share, to the Trust;

      WHEREAS, the Trust in turn intends to transfer a portion of the Shares to
the Partnership (such transfer (the "Partnership Transfer") and the proposed
transfer of Shares from Smith to the Trust are herein referred to collectively
as the "Transfers");

      WHEREAS, Smith is party to an Amended and Restated Stockholder Rights
Agreement, dated as of August 29, 1997, by and among Vista HospiCare, Inc., a
Delaware corporation ("VHC"), and certain stockholders of VHC (the "Stockholder
Rights Agreement");

      WHEREAS, the Stockholder Rights Agreement as amended and currently in
effect (the "Amended Stockholder Rights Agreement") represents an agreement by
and among the Company and certain stockholders of the Company;

      WHEREAS, the execution and delivery of this Agreement by the Trust and the
Partnership is a condition to the waiver by the Company and certain other
parties to the Amended Stockholder Rights Agreement of the restrictions on
Smith's right to effect the Transfers;

      NOW, THEREFORE, the parties agree as follows:

1.    Joinder to the Agreement.  The Trust and the Partnership hereby agree to
be bound by the Amended  Stockholder  Rights  Agreement as a  "Stockholder"  (as
defined therein).

2.    Additional Transfer Restrictions.  In addition to the restrictions
applicable to them as a result of becoming a party

                                       1
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to the Amended Stockholder Rights Agreement pursuant to Section 1, neither the
Trust nor the Partnership will sell, transfer or otherwise dispose of any of the
Shares, or any interest therein, prior to the termination of this Agreement,
other than pursuant to Section 3.

3.    Permitted Transfers.

      The following transfers shall be exempt from the provisions of Section 2:

      (i)   any transfer pursuant to an effective  registration  statement under
            the Securities Act of 1933, as amended;

      (ii)  any transfer in connection with the sale of all or substantially all
            of the outstanding shares of capital stock of the Company (including
            pursuant to a merger or consolidation);

      (iii) any transfer to the Company; and

      (iv)  any transfer of Shares which when combined with all prior transfers
            of Shares by the Trust or Partnership (excluding the Partnership
            Transfer) represents less than 40% of the total number of Shares.

4.    Termination. The Agreement shall terminate upon the earlier of: (i)
eighteen months after the Company's first underwritten public offering of its
capital stock and (ii) the first date on which FFC Capital Partners I, L.P. and
FFC Executive Partners, I, L.P. together hold capital stock of the Company
representing less than ten percent (10%) of the voting power of the Company.

5.    Specific Performance. In addition to any and all other remedies that may
be available at law in the event of any breach of this Agreement, the Company
shall be entitled to specific performance of the agreements and obligations of
the Trust and the Partnership hereunder and to such other injunctive or other
equitable relief as may be granted by a court of competent jurisdiction.

6.    Governing Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware.

                                       2
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7.    Notices. All notices, requests, demands and other communications hereunder
must be in writing and shall be delivered in person, mailed by prepaid certified
or registered mail, return receipt requested, or sent by facsimile transmission,
addressed as follows:

     (a)  if to the Company:        VistaCare, Inc.
                                    8125 N. Hayden Road
                                    Suite 300
                                    Scottsdale, AZ  85258
                                    Telecopier:  (480) 648-1707

     (b)  if to the Trust
          or the Partnership:       c/o Barry M. Smith
                                    5801 East Berneil Lane
                                    Paradise Valley, AZ 85253
                                    Telecopier:  (480) 948-5977

or to such other address as shall have been furnished in writing to the other
parties hereto in accordance with the provisions of this Section 7.

8.    Complete Agreement; Amendment and Waiver. This Agreement constitutes the
full and complete agreement of the parties hereto with respect to the subject
matter hereof. No amendment, modification or termination of any provision of
this Agreement shall be valid unless in writing and signed by all parties
hereto.

9.    Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one agreement binding on all the
parties hereto.

                                       3
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      IN WITNESS WHEREOF, this Agreement has been executed as of the date first
above written.

                                    VISTACARE, INC.

                                    By: /s/ Richard R. Slager
                                       -----------------------------------------
                                          Title: President & CEO

                                    BARRY AND JULIA SMITH FAMILY TRUST

                                    By: /s/ Barry M. Smith
                                       -----------------------------------------
                                                        , Trustee

                                    B&J SMITH ASSOCIATES, LIMITED PARTNERSHIP

                                    By: B&J Investments, Inc.                  ,
                                       -----------------------------------------
                                        the general partner

                                    By: /s/ Barry M. Smith
                                       -----------------------------------------
                                        Title: President

                                       4

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