Document:

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                                                                    Exhibit 10.8

                              EMPLOYMENT AGREEMENT

     This Employment Agreement dated as of December 27, 2005 (the "Agreement"),
is made by and between Skilled Healthcare Group, Inc., a Delaware corporation
(together with any successor thereto, the "Company") and Roland G. Rapp (the
"Executive").

                                    RECITALS

A.   It is the desire of the Company to assure itself of the continued services
     of the Executive by entering into this Agreement.

B.   The Executive and the Company mutually desire that Executive provide
     services to the Company on the terms herein provided.

                                    AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements set forth below the parties hereto agree as follows:

1.   EMPLOYMENT.

     (a)  General. The Company shall employ the Executive and the Executive
          shall enter the employ of the Company, for the period set forth in
          Section 1(b), in the position set forth in Section 1(c), and upon the
          other terms and conditions herein provided.

     (b)  Employment Term. The initial term of employment under this Agreement
          (the "Initial Term") shall be for the period beginning on the Closing,
          as such term is defined in the Agreement and Plan of Merger (the
          "Merger Agreement"), dated as of October 22, 2005 among the Company,
          SHG Holding Solutions, Inc., a Delaware corporation ("Parent"), SHG
          Acquisition Corp., a Delaware corporation, Heritage Partners
          Management Company, LLP, Heritage Fund II, L.P., a Delaware limited
          partnership, and Heritage Investors II, L.L.C., a Delaware limited
          liability company (the date of such Closing is the "Effective Date")
          and ending on (and including) the second anniversary thereof, unless
          earlier terminated as provided in Section 3. Should the Closing not
          occur, this Agreement shall be null and void and shall not become
          effective. The employment term hereunder shall automatically be
          extended for successive one-year periods ("Extension Terms" and,
          collectively with the Initial Term, the "Term") unless either party
          gives written notice of non-extension to the other no later than sixty
          (60) days prior to the expiration of the then-applicable Term and
          subject to earlier termination as provided in Section 3.

     (c)  Position and Duties. The Executive shall serve as the General Counsel,
          Secretary and Chief Administrative Officer of the Company with such
          customary responsibilities, duties and authority as may from time to
          time be assigned to the Executive by the Chief Executive Officer of
          the Company, the Board of Directors of the Company (the "Board") or by
          the Board of Directors of Parent. The

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          Executive shall devote substantially all his working time and efforts
          to the business and affairs of the Company (which may include service
          to Parent, the Company and their respective direct and indirect
          subsidiaries). The Executive agrees to observe and comply with the
          rules and policies of the Company as adopted by or under the authority
          of the Board from time to time. During the Term, it shall not be a
          violation of this Agreement for the Executive to serve on industry
          trade, civic or charitable boards or committees and manage his
          personal investments and affairs, as long as such activities do not
          materially interfere with the performance of the Executive's duties
          and responsibilities as an employee of the Company. During his
          employment and following termination of his employment with the
          Company, the Executive agrees not to disparage the Company, any of its
          products or practices, or any of its directors, officers, agents,
          representatives, stockholders or affiliates, either orally or in
          writing.

     (d)  Location. The Executive acknowledges that the Company's principal
          executive offices are currently located at Foothill Ranch, California.
          The Executive shall operate principally out of such executive offices,
          as they may be moved from time to time within 40 miles of their
          current location in Foothill Ranch, California. The Company expects,
          and the Executive agrees, that the Executive shall be required to
          travel from time to time in order to fulfill his duties to the
          Company.

2.   COMPENSATION AND RELATED MATTERS.

     (a)  Annual Base Salary. During the Term, the Executive shall receive a
          base salary at a rate of $335,000 per annum (the "Annual Base
          Salary"), which shall be paid in accordance with the customary payroll
          practices of the Company, subject to upward adjustment as may be
          determined by the Board in its discretion.

     (b)  Annual Bonus. During the Term, the Executive will be eligible to
          participate in an annual performance-based bonus plan established by
          the Board that provides an opportunity substantially the same as the
          bonus plan first adopted by the Board after the Effective Date.

     (c)  Restricted Stock Plan. During the Term, the Executive shall be
          entitled to participate in the equity plan (the "Restricted Stock
          Plan") of Parent pursuant to which, on the Effective Date, the
          Executive shall receive a number of shares of common stock of Parent
          equal to 1.2500% of the number of shares of common stock of Parent
          outstanding on the Effective Date, excluding shares issued under the
          Restricted Stock Plan. Restricted Stock shall vest as to 25% of the
          shares granted on the Effective Date and each of the first three
          anniversaries of the Effective Date, but only to the extent the
          Executive remains continuously employed by the Company through the
          applicable vesting date.

     (d)  Benefits. During the Term, the Executive shall be entitled to
          participate in group medical insurance, 401(k) and other standard
          benefits provided by the Company, as may be amended from time to time,
          which are applicable to the senior officers of the Company.

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     (e)  Vacation. During the Term, the Executive shall be entitled to four
          weeks paid vacation per calendar year and the maximum unused vacation
          time that the Executive may accrue is eight weeks. Any vacation shall
          be taken at the reasonable and mutual convenience of the Company and
          the Executive.

     (f)  Expenses. During the Term, the Company shall reimburse the Executive
          for all reasonable travel and other business expenses incurred by him
          in the performance of his duties to the Company in accordance with the
          Company's expense reimbursement policy.

     (g)  Key Person Insurance. At any time during the Term, the Company shall
          have the right to insure the life of the Executive for the Company's
          sole benefit. The Company shall have the right to determine the amount
          of insurance and the type of policy. The Executive shall cooperate
          with the Company in obtaining such insurance by submitting to physical
          examinations, by supplying all information reasonably required by any
          insurance carrier, and by executing all necessary documents reasonably
          required by any insurance carrier. The Executive shall incur no
          financial obligation by executing any required document, and shall
          have no interest in any such policy.

     (h)  Medical Examination. During the Term, the Company shall bear the
          expense of an annual medical examination of the Executive at the
          Coopers Clinic or another facility selected by the Executive and
          reasonably satisfactory to the Company.

     (i)  Annual Review. Approximately every 12 months during the Term, the
          Executive and the Company's Chief Executive Officer, Board or
          appropriate committee of the Board shall meet to discuss the
          Executive's performance and terms of the Executive's employment by the
          Company.

3.   TERMINATION.

     The Term and the Executive's employment hereunder may be terminated by the
Company or the Executive, as applicable, without any breach of this Agreement
only under the following circumstances:

     (a)  Circumstances.

          (i)  Death. The Term and the Executive's employment hereunder shall
               terminate upon his death.

          (ii) Disability. If the Executive has incurred a Disability, the
               Company may terminate the Term and the Executive's employment
               hereunder.

          (iii) Termination for Cause. The Company may terminate the Term and
               the Executive's employment hereunder for Cause.

          (iv) Termination without Cause. The Company may terminate the Term and
               the Executive's employment hereunder without Cause.

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          (v)  Resignation by the Executive. The Executive may resign his
               employment and terminate the Term for any reason.

          (vi) Non-extension of Term by the Company. The Company may give notice
               of non-extension to the Executive pursuant to Section 1(b).

          (vii) Non-extension of Term by the Executive. The Executive may give
               notice of non-extension to the Company pursuant to Section 1(b).

     (b)  Notice of Termination. Any termination of the Executive's employment
          by the Company or by the Executive under this Section 3 (other than
          termination pursuant to paragraph (a)(i)) shall be communicated by a
          written notice to the other party indicating the specific termination
          provision in this Agreement relied upon, and specifying a Date of
          Termination which, if submitted by the Executive, shall be at least
          two weeks following the date of such notice (a "Notice of
          Termination"). A Notice of Termination submitted by the Company may
          provide for a Date of Termination on the date the Executive receives
          the Notice of Termination, or any date thereafter elected by the
          Company in its sole discretion.

     (c)  Company obligations upon termination. Upon termination of the
          Executive's employment, the Executive (or the Executive's estate)
          shall be entitled to receive the sum of the Executive's Annual Base
          Salary through the Date of Termination not theretofore paid, any
          expenses owed to the Executive under Section 2(f), any accrued
          vacation pay owed to the Executive pursuant to Section 2(e), and any
          amount accrued and arising from the Executive's participation in, or
          benefits accrued under any employee benefit plans, programs or
          arrangements under Section 2(d), which amounts shall be payable in
          accordance with the terms and conditions of such employee benefit
          plans, programs or arrangements, and such other or additional benefits
          as may be, or become, due to him under the applicable terms of
          applicable plans, programs, agreements, corporate governance documents
          and other arrangements of the Company and its parent and subsidiaries
          (collectively, the "Company Arrangements").

4.   SEVERANCE PAYMENTS.

     (a)  Termination for Cause, Resignation by the Executive, Non-extension of
          Term by the Executive or the Company, death or Disability. If the
          Executive's employment is terminated pursuant to Section 3(a)(iii) for
          Cause, pursuant to Section 3(a)(v) for Resignation by the Executive,
          or pursuant to Section 3(a)(vii) due to non-extension of the Term by
          the Executive, the Executive shall not be entitled to any severance
          payment or benefits. If the Executive's employment is terminated
          pursuant to Section 3(a)(i) as a result of Executive's death or
          pursuant to Section 3(a)(ii) as a result of the Executive's
          Disability, the Company shall, subject to the Executive signing and
          not revoking, within sixty days following delivery to Executive, a
          separation and release agreement in the form attached hereto, (i) pay
          to the Executive an amount equal to the product of (x) the bonus that
          the Executive would have earned during the calendar year in which the
          Date

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          of Termination occurs, if any, and (y) a fraction, the numerator of
          which is the number of days that elapsed in such calendar year through
          the Date of Termination and the denominator of which is 365, payable
          when bonuses would have otherwise been payable had the Executive's
          employment not terminated and (ii) in the case of termination pursuant
          to Section 3(a)(ii) as a result of the Executive's Disability, pay to
          the Executive an amount equal to the excess, if any, of (x) the amount
          that would have been payable to the Executive pursuant to Section
          4(b)(i) if the Executive had been terminated by the Company without
          Cause pursuant to Section 3(a)(iv) over (y) the present value of the
          benefits to be received by the Executive (or his beneficiaries) under
          any disability plan sponsored by the Company or its affiliates (for
          purposes of this clause (ii) the amounts in (x) and (y) shall be
          determined by the Company on an after-tax basis to the extent that
          their receipt by the Executive (or his beneficiaries) would be subject
          to tax and on actuarial assumptions satisfactory to the Company). If
          the Executive's employment is terminated pursuant to Section 3(a)(vi)
          due to non-extension of the Term by the Company, the Company shall,
          subject to the Executive signing and not revoking, within sixty days
          following delivery to Executive, a separation and release agreement in
          the form attached hereto at Annex A, (i) pay to the Executive an
          amount equal to the product of (x) the bonus that the Executive would
          have earned during the calendar year in which the Date of Termination
          occurs, if any, and (y) a fraction, the numerator of which is the
          number of days that elapsed in such calendar year through the Date of
          Termination and the denominator of which is 365, payable when bonuses
          would have otherwise been payable had the Executive's employment not
          terminated and (ii) pay to the Executive, in a lump sum, an amount
          equal to the Annual Base Salary that the Executive would have been
          entitled to receive if the Executive had continued his employment
          hereunder for a period of 12 months following the Date of Termination.

     (b)  Termination without Cause. If the Executive's employment shall be
          terminated by the Company without Cause pursuant to Section 3(a)(iv)
          the Company shall, subject to the Executive signing and not revoking,
          within sixty days following delivery to Executive, a separation and
          release agreement in the form attached hereto:

          (i)  pay to the Executive, in a lump sum, an amount equal to the
               Annual Base Salary that the Executive would have been entitled to
               receive if the Executive had continued his employment hereunder
               for a period of 18 months following the Date of Termination;

          (ii) pay to the Executive an amount equal to the product of (x) the
               bonus that the Executive would have earned during the calendar
               year in which the Date of Termination occurs, if any, and (y) a
               fraction, the numerator of which is the number of days that
               elapsed in such calendar year through the Date of Termination and
               the denominator of which is 365, payable when bonuses would have
               otherwise been payable had the Executive's employment not
               terminated; and

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          (iii) cover the premium costs for medical benefits under COBRA for the
               Executive and, where applicable, his spouse and dependents, life
               insurance and disability insurance (all as in effect immediately
               prior to the Date of Termination) for a period of 12 months
               following the Date of Termination.

          If the Executive's employment shall be terminated by the Company
          without cause pursuant to Section 3(a)(iv), the Non-Competition
          Agreement dated December 27, 2005 between Parent and the Executive
          shall terminate on the earlier of the date it would have terminated
          without regard to this paragraph and a number of months after the Date
          of Termination equal to the number of months of Base Salary taken into
          account pursuant to Section 4(b)(i).

     (c)  Survival. The expiration or termination of the Term shall not impair
          the rights or obligations of any party hereto, which shall have
          accrued prior to such expiration or termination.

     (d)  409A. Notwithstanding anything to the contrary in this Section 4, no
          payments in this Section 4 will be paid during the six-month period
          following the Executive's termination of employment unless the Company
          determines, in its good faith judgment, that paying such amounts at
          the time or times indicated in this Section would not cause the
          Executive to incur an additional tax under Section 409A of the
          Internal Revenue Code of 1986, as amended (the "Code") (in which case
          such amounts shall be paid at the time or times indicated in this
          Section). If the payment of any amounts are delayed as a result of the
          previous sentence, on the first day following the end of the six-month
          period, the Company will pay the Executive a lump-sum amount equal to
          the cumulative amounts that would have otherwise been previously paid
          to the Executive under this Section 4. Thereafter, payments will
          resume in accordance with this Section.

5.   COMPETITION.

     (a)  The Executive shall not, at any time during the Term or during the
          two-year period following the Date of Termination, directly or
          indirectly engage in, have any equity interest in, or manage or
          operate any person, firm, corporation, partnership or business
          (whether as director, officer, employee, agent, representative,
          partner, security holder, consultant or otherwise) that engages in any
          business (x) which competes with any business of the Company anywhere
          in the States of California, Kansas, Missouri, Nevada or Texas, (y)
          which competes with any business of the Company in any State in which
          the Company operated a facility at any time (whether before or after
          the date of this Agreement) that the Executive was employed by the
          Company or (z) which derives $500,000,000 or more in annual
          consolidated revenues from the operation of skilled nursing facilities
          in the United States; provided, however, that the Executive shall be
          permitted to acquire a passive stock interest in such a business
          provided the stock acquired is publicly traded and is not more than
          five percent (5%) of the outstanding interest in such business.

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     (b)  The Executive shall not at any time during the Term or during the
          two-year period following the date of Termination, directly or
          indirectly, recruit or otherwise solicit or induce or encourage any
          employee, contractor, customer or supplier of the Company (i) to
          terminate its employment or arrangement with the Company, (ii) to
          otherwise change its relationship with the Company or (iii) to
          establish any relationship with the Executive or any other person,
          firm, corporation or other entity for any business purpose competitive
          with the business of the Company.

     (c)  In the event the terms of this Section 5 shall be determined by any
          court of competent jurisdiction to be unenforceable by reason of its
          extending for too great a period of time or over too great a
          geographical area or by reason of its being too extensive in any other
          respect, it will be interpreted to extend only over the maximum period
          of time for which it may be enforceable, over the maximum geographical
          area as to which it may be enforceable, or to the maximum extent in
          all other respects as to which it may be enforceable, all as
          determined by such court in such action.

     (d)  As used in this Section 5, the term "Company" shall include Parent,
          the Company and their respective direct or indirect subsidiaries.

     (e)  The Company acknowledges that, as of the Effective Date, the Executive
          owns (but does not operate) the long-term care facilities identified
          on Schedule 1 hereto. The Company agrees that such ownership interests
          shall not constitute a breach of Section 1(c) or this Section 5 by the
          Executive; provided that (1) the Executive does not acquire any
          additional ownership interests in long-term care facilities, (2) the
          Executive is not actively involved in the operation of any of such
          long-term care facilities, and (3) such ownership interests do not
          otherwise materially interfere with the Executive's duties to the
          Company hereunder.

6.   NONDISCLOSURE OF PROPRIETARY INFORMATION.

     (a)  Except in connection with the faithful performance of the Executive's
          duties hereunder or pursuant to Section 6(c), the Executive shall, in
          perpetuity, maintain in confidence and shall not directly, indirectly
          or otherwise, use, disseminate, disclose or publish, or use for his
          benefit or the benefit of any person, firm, corporation or other
          entity any confidential or proprietary information or trade secrets of
          or relating to the Company (including, without limitation,
          intellectual property in the form of patents, trademarks and
          copyrights and applications therefor, ideas, inventions, works,
          discoveries, improvements, information, documents, formulae,
          practices, processes, methods, developments, source code,
          modifications, technology, techniques, data, programs, other know-how
          or materials, owned, developed or possessed by the Company, whether in
          tangible or intangible form, information with respect to the Company's
          operations, processes, products, inventions, business practices,
          finances, principals, vendors, suppliers, customers, potential
          customers, marketing methods, costs, prices, contractual
          relationships, regulatory status, prospects and compensation paid to
          employees or other terms of employment), or deliver to any person,
          firm, corporation or other

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          entity any document, record, notebook, computer program or similar
          repository of or containing any such confidential or proprietary
          information or trade secrets. The parties hereby stipulate and agree
          that as between them the foregoing matters are important, material and
          confidential proprietary information and trade secrets and affect the
          successful conduct of the businesses of the Company (and any successor
          or assignee of the Company). Confidential Information shall not
          include any information which has entered the public domain through no
          fault of the Executive.

     (b)  Upon termination of the Executive's employment with the Company for
          any reason, the Executive will promptly deliver to the Company all
          correspondence, drawings, manuals, letters, notes, notebooks, reports,
          programs, plans, proposals, financial documents, or any other
          documents concerning the Company's customers, business plans,
          marketing strategies, products or processes.

     (c)  The Executive may respond to a lawful and valid subpoena or other
          legal process but shall give the Company the earliest possible notice
          thereof, shall, as much in advance of the return date as possible,
          make available to the Company and its counsel the documents and other
          information sought and shall assist such counsel at Company's expense
          in resisting or otherwise responding to such process.

     (d)  As used in this Section 6 and Section 7, the term "Company" shall
          include the Company and its direct or indirect parents, if any, and
          subsidiaries.

     (e)  Nothing in this Agreement shall prohibit the Executive from (i)
          disclosing information and documents when required by law, subpoena or
          court order (subject to the requirements of Section 6(c) above), (ii)
          disclosing information and documents to his attorney or tax adviser on
          a confidential basis for the purpose of securing legal or tax advice,
          (iii) disclosing the post-employment restrictions in this Agreement in
          confidence to any potential new employer, or (iv) retaining, at any
          time, his personal correspondence, his personal rolodex and documents
          related to his own personal benefits, entitlements and obligations.

7.   INVENTIONS.

     All rights to discoveries, inventions, improvements and innovations
(including all data and records pertaining thereto) related to the business of
the Company, whether or not patentable, copyrightable, registrable as a
trademark, or reduced to writing, that the Executive may discover, invent or
originate during the Term, either alone or with others and whether or not during
working hours or by the use of the facilities of the Company ("Inventions"),
shall be the exclusive property of the Company. The Executive shall promptly
disclose all Inventions to the Company, shall execute at the request of the
Company any assignments or other documents the Company may deem reasonably
necessary to protect or perfect its rights therein, and shall assist the
Company, upon reasonable request and at the Company's expense, in obtaining,
defending and enforcing the Company's rights therein. The Executive hereby
appoints the Company as his attorney-in-fact to execute on his behalf any
assignments or other documents reasonably deemed necessary by the Company to
protect or perfect its rights to any Inventions.

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8.   INJUNCTIVE RELIEF.

     It is recognized and acknowledged by the Executive that a breach of the
covenants contained in Sections 5, 6 and 7 will cause irreparable damage to
Company and its goodwill, the exact amount of which will be difficult or
impossible to ascertain, and that the remedies at law for any such breach will
be inadequate. Accordingly, the Executive agrees that in the event of a breach
of any of the covenants contained in Sections 5, 6 and 7, in addition to any
other remedy which may be available at law or in equity, the Company will be
entitled to specific performance and temporary, preliminary and permanent
injunctive relief.

9.   ASSIGNMENT AND SUCCESSORS.

     The Company may assign its rights and obligations under this Agreement to
any successor to all or substantially all of the business or the assets of the
Company (by merger or otherwise), and may assign or encumber this Agreement and
its rights hereunder as security for indebtedness of the Company and its
affiliates. This Agreement shall be binding upon and inure to the benefit of the
Company, the Executive and their respective successors, assigns, personnel and
legal representatives, executors, administrators, heirs, distributees, devisees,
and legatees, as applicable. None of the Executive's rights or obligations may
be assigned or transferred by the Executive, other than the Executive's rights
to payments hereunder, which may be transferred only by will or operation of
law. Notwithstanding the foregoing, the Executive shall be entitled, to the
extent permitted under applicable law and applicable Company Arrangements, to
select and change a beneficiary or beneficiaries to receive compensation
hereunder following his death by giving written notice thereof to the Company.

10.  CERTAIN DEFINITIONS.

     (a)  Cause. The Company shall have "Cause" to terminate the Term and the
          Executive's employment hereunder upon:

          (i)  the Executive's failure to perform substantially his duties as an
               employee of the Company (other than any such failure resulting
               from the Executive's incapacity due to physical or mental
               illness), which is not cured within 15 days after a written
               demand for performance is given to the Executive by the Board
               specifying in reasonable detail the manner in which the Executive
               has failed to perform substantially his duties as an employee of
               the Company;

          (ii) the Executive's failure to carry out, or comply with, in any
               material respect any lawful and reasonable directive of the Board
               consistent with the terms of this Agreement that, if capable of
               cure, is not cured by the Executive within 15 days after written
               notice given to the Executive describing such failure in
               reasonable detail;

          (iii) the Executive's conviction, plea of no contest, plea of nolo
               contendere, or imposition of unadjudicated probation for any
               felony or, to the extent involving fraud, dishonesty, theft,
               embezzlement or moral turpitude, any other crime;

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          (iv) the Executive's violation of a material regulatory requirement
               relating to the business of the Company and its subsidiaries
               that, in the good faith judgment of the Board, is injurious to
               the Company in any material respect;

          (v)  the Executive's unlawful use (including being under the
               influence) or possession of illegal drugs on the Company's
               premises or while performing the Executive's duties and
               responsibilities under this Agreement;

          (vi) the Executive's breach of this Agreement in any material respect
               that, if capable of cure, is not cured by the Executive within 15
               days after written notice given to the Executive describing such
               breach in reasonable detail; or

          (vii) the Executive's commission of an act of fraud, embezzlement,
               misappropriation, willful misconduct, gross negligence or breach
               of fiduciary duty with respect to the Company or any of its
               affiliates;

     (b)  Date of Termination. "Date of Termination" shall mean (i) if the
          Executive's employment is terminated by his death, the date of his
          death; (ii) if the Executive's employment is terminated pursuant to
          Section 3(a)(ii) - (v) either the date indicated in the Notice of
          Termination or the date specified by the Company pursuant to Section
          3(b), whichever is earlier; (iii) if the Executive's employment is
          terminated pursuant to Section 3(a)(vi) or Section 3(a)(vii), the
          expiration of the then-applicable Term.

     (c)  Disability. "Disability" shall mean, at any time the Company or any of
          its affiliates sponsors a long-term disability plan for the Company's
          employees in which the Executive participates, "disability" as defined
          in such long-term disability plan for the purpose of determining a
          participant's eligibility for benefits, provided, however, if the
          long-term disability plan contains multiple definitions of disability,
          "Disability" shall refer that definition of disability which, if the
          Executive qualified for such disability benefits, would provide
          coverage for the longest period of time. The determination of whether
          the Executive has a Disability shall be made by the person or persons
          required to make disability determinations under the long-term
          disability plan. At any time the Company does not sponsor a long-term
          disability plan for its employees in which the Executive participates,
          Disability shall mean the Executive's inability to perform, with or
          without reasonable accommodation, the essential functions of his
          position hereunder for a total of six months during any 12-month
          period as a result of incapacity due to mental or physical illness as
          determined by a physician selected by the Board and acceptable to the
          Executive or the Executive's legal representative, such agreement as
          to acceptability not to be unreasonably withheld or delayed. Any
          refusal by the Executive to submit to a medical examination for the
          purpose of determining Disability shall be deemed to constitute
          conclusive evidence of the Executive's Disability.

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11.  GOVERNING LAW.

     This Agreement shall be governed, construed, interpreted and enforced in
accordance with its express terms, and otherwise in accordance with the
substantive laws of the State of California, without reference to the principles
of conflicts of law, and where applicable, the federal laws of the United
States.

12.  VALIDITY.

     The invalidity or unenforceability of any provision or provisions of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, which shall remain in full force and effect.

13.  NOTICES.

     Any notice, request, claim, demand, document and other communication
hereunder to any party shall be effective upon receipt (or refusal of receipt)
and shall be in writing and delivered personally or sent by facsimile or
certified or registered mail, postage prepaid, or any nationally recognized
overnight courier service with signature certification of receipt, as follows:

     (a)  If to the Company:

          Skilled Healthcare Group, Inc.
          27442 Portola Parkway
          Suite 200
          Foothill Ranch, California  92610
          Attn:  Chief Executive Officer

          with copies to:

          Onex Partners LP
          712 Fifth Avenue
          New York, New York  10019
          Facsimile:  (212) 582-0909
          Attention:  Robert M. LeBlanc

          and:

          Kaye Scholer LLP
          425 Park Avenue
          New York, New York  10022
          Facsimile:  (212) 836-8211
          Attention:  Joel I. Greenberg

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     (b)  If to the Executive:

          Roland G. Rapp

          [__________________________]
          [__________________________]
          Facsimile:  [_____________]

     or at any other address as any party shall have specified by notice in
writing to the other party.

14.  COUNTERPARTS.

     This Agreement may be executed in several counterparts, each of which shall
be deemed to be an original, but all of which together will constitute one and
the same Agreement. Signatures delivered by facsimile shall be deemed effective
for all purposes.

15.  ENTIRE AGREEMENT.

     The terms of this Agreement are intended by the parties to be the final
expression of their agreement with respect to the employment of the Executive by
the Company and supersede all prior understandings and agreements, whether
written or oral. The parties further intend that this Agreement shall constitute
the complete and exclusive statement of their terms and that no extrinsic
evidence whatsoever may be introduced in any judicial, administrative, or other
legal proceeding to vary the terms of this Agreement.

16.  AMENDMENTS; WAIVERS.

     This Agreement may not be modified, amended, or terminated except by an
instrument in writing, signed by the Executive and a duly authorized officer of
Company. By an instrument in writing similarly executed, the Executive or a duly
authorized officer of the Company may waive compliance by the other party or
parties with any specifically identified provision of this Agreement that such
other party was or is obligated to comply with or perform; provided, however,
that such waiver shall not operate as a waiver of, or estoppel with respect to,
any other or subsequent failure. No failure to exercise and no delay in
exercising any right, remedy, or power hereunder preclude any other or further
exercise of any other right, remedy, or power provided herein or by law or in
equity. Except as otherwise set forth in this Agreement, the respective rights
and obligations of the parties under this Agreement shall survive any
termination of Executive's employment.

17.  NO INCONSISTENT ACTIONS.

     The parties hereto shall not voluntarily undertake or fail to undertake any
action or course of action inconsistent with the provisions or essential intent
of this Agreement. Furthermore, it is the intent of the parties hereto to act in
a fair and reasonable manner with respect to the interpretation and application
of the provisions of this Agreement.

                                       12

<PAGE>

18.  CONSTRUCTION.

     This Agreement shall be deemed drafted equally by both the parties. Its
language shall be construed as a whole and according to its fair meaning. Any
presumption or principle that the language is to be construed against any party
shall not apply. The headings in this Agreement are only for convenience and are
not intended to affect construction or interpretation. Any references to
paragraphs, subparagraphs, sections or subsections are to those parts of this
Agreement, unless the context clearly indicates to the contrary. Also, unless
the context clearly indicates to the contrary, (a) the plural includes the
singular and the singular includes the plural; (b) "and" and "or" are each used
both conjunctively and disjunctively; (c) "any," "all," "each," or "every" means
"any and all," and "each and every"; (d) "includes" and "including" are each
"without limitation"; (e) "herein," "hereof," "hereunder" and other similar
compounds of the word "here" refer to the entire Agreement and not to any
particular paragraph, subparagraph, section or subsection; and (f) all pronouns
and any variations thereof shall be deemed to refer to the masculine, feminine,
neuter, singular or plural as the identity of the entities or persons referred
to may require.

19.  ARBITRATION.

     Any controversy arising out of or relating to this Agreement, its
enforcement or interpretation, or because of an alleged breach, default, or
misrepresentation in connection with any of its provisions, or any other
controversy arising out of the Executive's employment by the Company, including,
but not limited to, any state or federal statutory claims, shall be submitted to
arbitration in Los Angeles County, California, before a sole neutral arbitrator
(the "Arbitrator"), mutually selected and agreeable to both parties and selected
from Judicial Arbitration and Mediation Services, Inc., Los Angeles County,
California, or its successor ("JAMS"), or if JAMS is no longer able to supply
the Arbitrator, such Arbitrator shall be selected from the American Arbitration
Association, and shall be conducted in accordance with the provisions of
California Code of Civil Procedure Sections 1280 et seq. as the exclusive forum
for the resolution of such dispute; provided, however, that provisional
injunctive relief (including, but not limited to, temporary restraining orders
and preliminary injunctions) may, but need not, be sought by either party to
this Amended Agreement in any court of competent jurisdiction while arbitration
proceedings are pending, and any provisional injunctive relief granted by such
court shall remain effective until the matter is finally determined by the
Arbitrator; no bond or other security shall be required in connection therewith.

     Final resolution of any dispute through arbitration may include any remedy
or relief that the Arbitrator deems just and equitable, including any and all
remedies provided by applicable state or federal statutes. At the conclusion of
the arbitration, the Arbitrator shall issue a written decision that sets forth
the essential findings and conclusions upon which the Arbitrator's award or
decision is based. Any award or relief granted by the Arbitrator hereunder shall
be final and binding on the parties hereto and may be enforced by any court of
competent jurisdiction.

     The parties acknowledge and agree that they are hereby waiving any rights
to trial by jury in any action, proceeding or counterclaim brought by either of
the parties against the other in connection with any matter whatsoever arising
out of or in any way connected with this Amended Agreement or the services
rendered hereunder. The parties agree that the Company

                                       13

<PAGE>

Shall be responsible for payment of the forum costs of any arbitration
hereunder, including the Arbitrator's fee. The Executive and the Company further
agree that in any proceeding to enforce the terms of this Amended Agreement, the
prevailing party shall be entitled to its or her reasonable attorneys' fees and
costs (other than forum costs associated with the arbitration) incurred by it or
him in connection with resolution of the dispute up to a maximum of Fifty
Thousand Dollars ($50,000.00) in addition to any other relief granted.

20.  ENFORCEMENT.

     If any provision of this Agreement is held to be illegal, invalid or
unenforceable under present or future laws effective during the term of this
Agreement, such provision shall be fully severable; this Agreement shall be
construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a portion of this Agreement; and the remaining provisions of
this Agreement shall remain in full force and effect and shall not be affected
by the illegal, invalid or unenforceable provision or by its severance from this
Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable
provision there shall be added automatically as part of this Agreement a
provision as similar in terms to such illegal, invalid or unenforceable
provision as may be possible and be legal, valid and enforceable.

21.  WITHHOLDING.

     The Company shall be entitled to withhold from any amounts payable under
this Agreement any federal, state, local or foreign withholding or other taxes
or charges which the Company is required to withhold. The Company shall be
entitled to rely on an opinion of counsel if any questions as to the amount or
requirement of withholding shall arise.

22.  INDEMNIFICATION.

     The Company agrees that (a) if the Executive is made a party, or is
threatened to be made a party, to any threatened or actual action, suit or
proceeding whether civil, criminal, administrative, investigative, appellate or
other (a "Proceeding") by reason of the fact that he is or was a director,
officer, employee, agent, manager, consultant or representative of the Company
or (b) if any claim, demand, request, investigation, controversy, threat,
discovery request or request for testimony or information (a "Claim") is made,
or threatened to be made, that arises out of or relates to the Executive's
service in any of the foregoing capacities, then the Executive shall promptly be
indemnified and held harmless by the Company to the fullest extent permitted by
the laws of the state of incorporation of the Company, against any and all
costs, expenses, liabilities and losses incurred or suffered by the Executive in
connection therewith, and such indemnification shall continue as to the
Executive even if he has ceased to be a director, member, employee, agent,
manager, consultant or representative of the Company and shall inure to the
benefit of the Executive's heirs, executors and administrators. The Company may
assume the defense of any Proceeding or Claim with counsel selected by the
Company and reasonably satisfactory to the Executive and, if it does so, the
Executive shall not be entitled to be reimbursed for any separate counsel he may
retain in connection with such Proceeding or Claim.

     Neither the failure of the Company (including its Board, independent legal
counsel or stockholders) to have made a determination in connection with any
request for indemnification

                                       14

<PAGE>

that the Executive has satisfied any applicable standard of conduct, nor a
determination by the Company (including its Board, independent legal counsel or
stockholders) that the Executive has not met any applicable standard of conduct,
shall create a presumption that the Executive has not met an applicable standard
of conduct.

     During the period of Employment and for a period of time thereafter
determined as provided below, the Company shall keep in place a directors and
officers' liability insurance policy (or policies) providing coverage, or such
coverage may be provided under a policy that provides coverage to Onex
Corporation or Onex Partners LP and their affiliates, to the Executive if and to
the extent that the Company provides such coverage to its directors and such
coverage (or other directors and officers liability insurance coverage) shall
continue after the termination of the Period of Employment if and for the period
of time that such coverage is extended to the Company's former director, other
than former directors who are employees of Onex Corporation, Onex Partners LP or
their affiliates.

23.  COOPERATION IN LITIGATION.

     The Executive promises and agrees that, following the date his employment
by the Company terminates, he will reasonably cooperate with the Company in any
litigation in which the Company is a party or otherwise involved which arises
out of events occurring prior to the termination of his employment, including
but not limited to, serving as a consultant (at a reasonable hourly rate) or
witness and producing documents and information relevant to the case or helpful
to the Company.

24.  EMPLOYEE ACKNOWLEDGEMENT.

     The Executive acknowledges that he has read and understands this Agreement,
is fully aware of its legal effect, has not acted in reliance upon any
representations or promises made by the Company other than those contained in
writing herein, and has entered into this Agreement freely based on his own
judgment.

                                       15

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date
and year first above written.

                                        SKILLED HEALTHCARE GROUP, INC.

                                        By:
                                            ------------------------------------
                                            Name: Boyd W. Hendrickson
                                            Title: Chief Executive Officer

                                        EXECUTIVE

                                        By:
                                            ------------------------------------
                                            Name: Roland G. Rapp

                    [SIGNATURE PAGE -- EMPLOYMENT AGREEMENT]

<PAGE>

                                   SCHEDULE 1

1.   St. Francis Extended Care, Inc.

2.   St. Michael Consultant Hospital, Inc. dba Vintage Estate of Hayward

3.   Vintage Estates, Inc. dba Vintage Estates of Sacramento

4.   Vintage Estates III, Inc. dba Vintage Estates of Richmond

<PAGE>

                                     ANNEX A<PAGE>

                                                                    Exhibit 10.9

                              EMPLOYMENT AGREEMENT

     This Employment Agreement dated as of December 27, 2005 (the "Agreement"),
is made by and between Skilled Healthcare Group, Inc., a Delaware corporation
(together with any successor thereto, the "Company") and Mark Wortley (the
"Executive").

                                    RECITALS

A.   It is the desire of the Company to assure itself of the continued services
     of the Executive by entering into this Agreement.

B.   The Executive and the Company mutually desire that Executive provide
     services to the Company on the terms herein provided.

                                    AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements set forth below the parties hereto agree as follows:

1.   EMPLOYMENT.

     (a)  General. The Company shall employ the Executive and the Executive
          shall enter the employ of the Company, for the period set forth in
          Section 1(b), in the position set forth in Section 1(c), and upon the
          other terms and conditions herein provided.

     (b)  Employment Term. The initial term of employment under this Agreement
          (the "Initial Term") shall be for the period beginning on the Closing,
          as such term is defined in the Agreement and Plan of Merger (the
          "Merger Agreement"), dated as of October 22, 2005 among the Company,
          SHG Holding Solutions, Inc., a Delaware corporation ("Parent"), SHG
          Acquisition Corp., a Delaware corporation, Heritage Partners
          Management Company, LLP, Heritage Fund II, L.P., a Delaware limited
          partnership, and Heritage Investors II, L.L.C., a Delaware limited
          liability company (the date of such Closing is the "Effective Date")
          and ending on (and including) the second anniversary thereof, unless
          earlier terminated as provided in Section 3. Should the Closing not
          occur, this Agreement shall be null and void and shall not become
          effective. The employment term hereunder shall automatically be
          extended for successive one-year periods ("Extension Terms" and,
          collectively with the Initial Term, the "Term") unless either party
          gives written notice of non-extension to the other no later than sixty
          (60) days prior to the expiration of the then-applicable Term and
          subject to earlier termination as provided in Section 3.

     (c)  Position and Duties. The Executive shall serve as the Executive Vice
          President and President of Ancillary Subsidiaries of the Company with
          such customary responsibilities, duties and authority as may from time
          to time be assigned to the Executive by the Chief Executive Officer of
          the Company, the Board of Directors of the Company (the "Board") or by
          the Board of Directors of Parent. The

<PAGE>

          Executive shall devote substantially all his working time and efforts
          to the business and affairs of the Company (which may include service
          to Parent, the Company and their respective direct and indirect
          subsidiaries). The Executive agrees to observe and comply with the
          rules and policies of the Company as adopted by or under the authority
          of the Board from time to time. During the Term, it shall not be a
          violation of this Agreement for the Executive to serve on industry
          trade, civic or charitable boards or committees and manage his
          personal investments and affairs, as long as such activities do not
          materially interfere with the performance of the Executive's duties
          and responsibilities as an employee of the Company. During his
          employment and following termination of his employment with the
          Company, the Executive agrees not to disparage the Company, any of its
          products or practices, or any of its directors, officers, agents,
          representatives, stockholders or affiliates, either orally or in
          writing.

     (d)  Location. The Executive acknowledges that the Company's principal
          executive offices are currently located at Foothill Ranch, California.
          The Executive shall operate principally out of such executive offices,
          as they may be moved from time to time within 40 miles of their
          current location in Foothill Ranch, California. The Company expects,
          and the Executive agrees, that the Executive shall be required to
          travel from time to time in order to fulfill his duties to the
          Company.

2.   COMPENSATION AND RELATED MATTERS.

     (a)  Annual Base Salary. During the Term, the Executive shall receive a
          base salary at a rate of $335,000 per annum (the "Annual Base
          Salary"), which shall be paid in accordance with the customary payroll
          practices of the Company, subject to upward adjustment as may be
          determined by the Board in its discretion.

     (b)  Annual Bonus. During the Term, the Executive will be eligible to
          participate in an annual performance-based bonus plan established by
          the Board that provides an opportunity substantially the same as the
          bonus plan first adopted by the Board after the Effective Date.

     (c)  Restricted Stock Plan. During the Term, the Executive shall be
          entitled to participate in the equity plan (the "Restricted Stock
          Plan") of Parent pursuant to which, on the Effective Date, the
          Executive shall receive a number of shares of common stock of Parent
          equal to 1.2500% of the number of shares of common stock of Parent
          outstanding on the Effective Date, excluding shares issued under the
          Restricted Stock Plan. Restricted Stock shall vest as to 25% of the
          shares granted on the Effective Date and each of the first three
          anniversaries of the Effective Date, but only to the extent the
          Executive remains continuously employed by the Company through the
          applicable vesting date.

     (d)  Benefits. During the Term, the Executive shall be entitled to
          participate in group medical insurance, 401(k) and other standard
          benefits provided by the Company, as may be amended from time to time,
          which are applicable to the senior officers of the Company.

                                       2

<PAGE>

     (e)  Vacation. During the Term, the Executive shall be entitled to four
          weeks paid vacation per calendar year and the maximum unused vacation
          time that the Executive may accrue is eight weeks. Any vacation shall
          be taken at the reasonable and mutual convenience of the Company and
          the Executive.

     (f)  Expenses. During the Term, the Company shall reimburse the Executive
          for all reasonable travel and other business expenses incurred by him
          in the performance of his duties to the Company in accordance with the
          Company's expense reimbursement policy.

     (g)  Key Person Insurance. At any time during the Term, the Company shall
          have the right to insure the life of the Executive for the Company's
          sole benefit. The Company shall have the right to determine the amount
          of insurance and the type of policy. The Executive shall cooperate
          with the Company in obtaining such insurance by submitting to physical
          examinations, by supplying all information reasonably required by any
          insurance carrier, and by executing all necessary documents reasonably
          required by any insurance carrier. The Executive shall incur no
          financial obligation by executing any required document, and shall
          have no interest in any such policy.

     (h)  Medical Examination. During the Term, the Company shall bear the
          expense of an annual medical examination of the Executive at the
          Coopers Clinic or another facility selected by the Executive and
          reasonably satisfactory to the Company.

     (i)  Annual Review. Approximately every 12 months during the Term, the
          Executive and the Company's Chief Executive Officer, Board or
          appropriate committee of the Board shall meet to discuss the
          Executive's performance and terms of the Executive's employment by the
          Company.

3.   TERMINATION.

     The Term and the Executive's employment hereunder may be terminated by the
Company or the Executive, as applicable, without any breach of this Agreement
only under the following circumstances:

     (a)  Circumstances.

          (i)  Death. The Term and the Executive's employment hereunder shall
               terminate upon his death.

          (ii) Disability. If the Executive has incurred a Disability, the
               Company may terminate the Term and the Executive's employment
               hereunder.

          (iii) Termination for Cause. The Company may terminate the Term and
               the Executive's employment hereunder for Cause.

          (iv) Termination without Cause. The Company may terminate the Term and
               the Executive's employment hereunder without Cause.

                                       3

<PAGE>

          (v)  Resignation by the Executive. The Executive may resign his
               employment and terminate the Term for any reason.

          (vi) Non-extension of Term by the Company. The Company may give notice
               of non-extension to the Executive pursuant to Section 1(b).

          (vii) Non-extension of Term by the Executive. The Executive may give
               notice of non-extension to the Company pursuant to Section 1(b).

     (b)  Notice of Termination. Any termination of the Executive's employment
          by the Company or by the Executive under this Section 3 (other than
          termination pursuant to paragraph (a)(i)) shall be communicated by a
          written notice to the other party indicating the specific termination
          provision in this Agreement relied upon, and specifying a Date of
          Termination which, if submitted by the Executive, shall be at least
          two weeks following the date of such notice (a "Notice of
          Termination"). A Notice of Termination submitted by the Company may
          provide for a Date of Termination on the date the Executive receives
          the Notice of Termination, or any date thereafter elected by the
          Company in its sole discretion.

     (c)  Company obligations upon termination. Upon termination of the
          Executive's employment, the Executive (or the Executive's estate)
          shall be entitled to receive the sum of the Executive's Annual Base
          Salary through the Date of Termination not theretofore paid, any
          expenses owed to the Executive under Section 2(f), any accrued
          vacation pay owed to the Executive pursuant to Section 2(e), and any
          amount accrued and arising from the Executive's participation in, or
          benefits accrued under any employee benefit plans, programs or
          arrangements under Section 2(d), which amounts shall be payable in
          accordance with the terms and conditions of such employee benefit
          plans, programs or arrangements, and such other or additional benefits
          as may be, or become, due to him under the applicable terms of
          applicable plans, programs, agreements, corporate governance documents
          and other arrangements of the Company and its parent and subsidiaries
          (collectively, the "Company Arrangements").

4.   SEVERANCE PAYMENTS.

     (a)  Termination for Cause, Resignation by the Executive, Non-extension of
          Term by the Executive or the Company, death or Disability. If the
          Executive's employment is terminated pursuant to Section 3(a)(iii) for
          Cause, pursuant to Section 3(a)(v) for Resignation by the Executive,
          or pursuant to Section 3(a)(vii) due to non-extension of the Term by
          the Executive, the Executive shall not be entitled to any severance
          payment or benefits. If the Executive's employment is terminated
          pursuant to Section 3(a)(i) as a result of Executive's death or
          pursuant to Section 3(a)(ii) as a result of the Executive's
          Disability, the Company shall, subject to the Executive signing and
          not revoking, within sixty days following delivery to Executive, a
          separation and release agreement in the form attached hereto, (i) pay
          to the Executive an amount equal to the product of (x) the bonus that
          the Executive would have earned during the calendar year in which the
          Date

                                       4

<PAGE>

          of Termination occurs, if any, and (y) a fraction, the numerator of
          which is the number of days that elapsed in such calendar year through
          the Date of Termination and the denominator of which is 365, payable
          when bonuses would have otherwise been payable had the Executive's
          employment not terminated and (ii) in the case of termination pursuant
          to Section 3(a)(ii) as a result of the Executive's Disability, pay to
          the Executive an amount equal to the excess, if any, of (x) the amount
          that would have been payable to the Executive pursuant to Section
          4(b)(i) if the Executive had been terminated by the Company without
          Cause pursuant to Section 3(a)(iv) over (y) the present value of the
          benefits to be received by the Executive (or his beneficiaries) under
          any disability plan sponsored by the Company or its affiliates (for
          purposes of this clause (ii) the amounts in (x) and (y) shall be
          determined by the Company on an after-tax basis to the extent that
          their receipt by the Executive (or his beneficiaries) would be subject
          to tax and on actuarial assumptions satisfactory to the Company). If
          the Executive's employment is terminated pursuant to Section 3(a)(vi)
          due to non-extension of the Term by the Company, the Company shall,
          subject to the Executive signing and not revoking, within sixty days
          following delivery to Executive, a separation and release agreement in
          the form attached hereto at Annex A, (i) pay to the Executive an
          amount equal to the product of (x) the bonus that the Executive would
          have earned during the calendar year in which the Date of Termination
          occurs, if any, and (y) a fraction, the numerator of which is the
          number of days that elapsed in such calendar year through the Date of
          Termination and the denominator of which is 365, payable when bonuses
          would have otherwise been payable had the Executive's employment not
          terminated and (ii) pay to the Executive, in a lump sum, an amount
          equal to the Annual Base Salary that the Executive would have been
          entitled to receive if the Executive had continued his employment
          hereunder for a period of 12 months following the Date of Termination.

     (b)  Termination without Cause. If the Executive's employment shall be
          terminated by the Company without Cause pursuant to Section 3(a)(iv)
          the Company shall, subject to the Executive signing and not revoking,
          within sixty days following delivery to Executive, a separation and
          release agreement in the form attached hereto:

          (i)  pay to the Executive, in a lump sum, an amount equal to the
               Annual Base Salary that the Executive would have been entitled to
               receive if the Executive had continued his employment hereunder
               for a period of 18 months following the Date of Termination;

          (ii) pay to the Executive an amount equal to the product of (x) the
               bonus that the Executive would have earned during the calendar
               year in which the Date of Termination occurs, if any, and (y) a
               fraction, the numerator of which is the number of days that
               elapsed in such calendar year through the Date of Termination and
               the denominator of which is 365, payable when bonuses would have
               otherwise been payable had the Executive's employment not
               terminated; and

                                       5

<PAGE>

          (iii) cover the premium costs for medical benefits under COBRA for the
               Executive and, where applicable, his spouse and dependents, life
               insurance and disability insurance (all as in effect immediately
               prior to the Date of Termination) for a period of 12 months
               following the Date of Termination.

          If the Executive's employment shall be terminated by the Company
          without cause pursuant to Section 3(a)(iv), the Non-Competition
          Agreement dated December 27, 2005 between Parent and the Executive
          shall terminate on the earlier of the date it would have terminated
          without regard to this paragraph and a number of months after the Date
          of Termination equal to the number of months of Base Salary taken into
          account pursuant to Section 4(b)(i).

     (c)  Survival. The expiration or termination of the Term shall not impair
          the rights or obligations of any party hereto, which shall have
          accrued prior to such expiration or termination.

     (d)  409A. Notwithstanding anything to the contrary in this Section 4, no
          payments in this Section 4 will be paid during the six-month period
          following the Executive's termination of employment unless the Company
          determines, in its good faith judgment, that paying such amounts at
          the time or times indicated in this Section would not cause the
          Executive to incur an additional tax under Section 409A of the
          Internal Revenue Code of 1986, as amended (the "Code") (in which case
          such amounts shall be paid at the time or times indicated in this
          Section). If the payment of any amounts are delayed as a result of the
          previous sentence, on the first day following the end of the six-month
          period, the Company will pay the Executive a lump-sum amount equal to
          the cumulative amounts that would have otherwise been previously paid
          to the Executive under this Section 4. Thereafter, payments will
          resume in accordance with this Section.

5.   COMPETITION.

     (a)  The Executive shall not, at any time during the Term or during the
          two-year period following the Date of Termination, directly or
          indirectly engage in, have any equity interest in, or manage or
          operate any person, firm, corporation, partnership or business
          (whether as director, officer, employee, agent, representative,
          partner, security holder, consultant or otherwise) that engages in any
          business (x) which competes with any business of the Company anywhere
          in the States of California, Kansas, Missouri, Nevada or Texas, (y)
          which competes with any business of the Company in any State in which
          the Company operated a facility at any time (whether before or after
          the date of this Agreement) that the Executive was employed by the
          Company or (z) which derives $500,000,000 or more in annual
          consolidated revenues from the operation of skilled nursing facilities
          in the United States; provided, however, that the Executive shall be
          permitted to acquire a passive stock interest in such a business
          provided the stock acquired is publicly traded and is not more than
          five percent (5%) of the outstanding interest in such business.

                                       6

<PAGE>

     (b)  The Executive shall not at any time during the Term or during the
          two-year period following the date of Termination, directly or
          indirectly, recruit or otherwise solicit or induce or encourage any
          employee, contractor, customer or supplier of the Company (i) to
          terminate its employment or arrangement with the Company, (ii) to
          otherwise change its relationship with the Company or (iii) to
          establish any relationship with the Executive or any other person,
          firm, corporation or other entity for any business purpose competitive
          with the business of the Company.

     (c)  In the event the terms of this Section 5 shall be determined by any
          court of competent jurisdiction to be unenforceable by reason of its
          extending for too great a period of time or over too great a
          geographical area or by reason of its being too extensive in any other
          respect, it will be interpreted to extend only over the maximum period
          of time for which it may be enforceable, over the maximum geographical
          area as to which it may be enforceable, or to the maximum extent in
          all other respects as to which it may be enforceable, all as
          determined by such court in such action.

     (d)  As used in this Section 5, the term "Company" shall include Parent,
          the Company and their respective direct or indirect subsidiaries.

     (e)  The Company acknowledges that, as of the Effective Date, the Executive
          owns (but does not operate) the out patient therapy and hospice
          facilities identified on Schedule 1 hereto. The Company agrees that
          such ownership interests shall not constitute a breach of Section 1(c)
          or this Section 5 by the Executive; provided that (1) the Executive
          does not acquire any additional ownership interests in out patient
          therapy and hospice facilities, (2) the Executive is not actively
          involved in the operation of any of such out patient therapy and
          hospice facilities, and (3) such ownership interests do not otherwise
          materially interfere with the Executive's duties to the Company
          hereunder.

6.   NONDISCLOSURE OF PROPRIETARY INFORMATION.

     (a)  Except in connection with the faithful performance of the Executive's
          duties hereunder or pursuant to Section 6(c), the Executive shall, in
          perpetuity, maintain in confidence and shall not directly, indirectly
          or otherwise, use, disseminate, disclose or publish, or use for his
          benefit or the benefit of any person, firm, corporation or other
          entity any confidential or proprietary information or trade secrets of
          or relating to the Company (including, without limitation,
          intellectual property in the form of patents, trademarks and
          copyrights and applications therefor, ideas, inventions, works,
          discoveries, improvements, information, documents, formulae,
          practices, processes, methods, developments, source code,
          modifications, technology, techniques, data, programs, other know-how
          or materials, owned, developed or possessed by the Company, whether in
          tangible or intangible form, information with respect to the Company's
          operations, processes, products, inventions, business practices,
          finances, principals, vendors, suppliers, customers, potential
          customers, marketing methods, costs, prices, contractual
          relationships, regulatory status, prospects and compensation paid to
          employees or

                                       7

<PAGE>

          other terms of employment), or deliver to any person, firm,
          corporation or other entity any document, record, notebook, computer
          program or similar repository of or containing any such confidential
          or proprietary information or trade secrets. The parties hereby
          stipulate and agree that as between them the foregoing matters are
          important, material and confidential proprietary information and trade
          secrets and affect the successful conduct of the businesses of the
          Company (and any successor or assignee of the Company). Confidential
          Information shall not include any information which has entered the
          public domain through no fault of the Executive.

     (b)  Upon termination of the Executive's employment with the Company for
          any reason, the Executive will promptly deliver to the Company all
          correspondence, drawings, manuals, letters, notes, notebooks, reports,
          programs, plans, proposals, financial documents, or any other
          documents concerning the Company's customers, business plans,
          marketing strategies, products or processes.

     (c)  The Executive may respond to a lawful and valid subpoena or other
          legal process but shall give the Company the earliest possible notice
          thereof, shall, as much in advance of the return date as possible,
          make available to the Company and its counsel the documents and other
          information sought and shall assist such counsel at Company's expense
          in resisting or otherwise responding to such process.

     (d)  As used in this Section 6 and Section 7, the term "Company" shall
          include the Company and its direct or indirect parents, if any, and
          subsidiaries.

     (e)  Nothing in this Agreement shall prohibit the Executive from (i)
          disclosing information and documents when required by law, subpoena or
          court order (subject to the requirements of Section 6(c) above), (ii)
          disclosing information and documents to his attorney or tax adviser on
          a confidential basis for the purpose of securing legal or tax advice,
          (iii) disclosing the post-employment restrictions in this Agreement in
          confidence to any potential new employer, or (iv) retaining, at any
          time, his personal correspondence, his personal rolodex and documents
          related to his own personal benefits, entitlements and obligations.

7.   INVENTIONS.

     All rights to discoveries, inventions, improvements and innovations
(including all data and records pertaining thereto) related to the business of
the Company, whether or not patentable, copyrightable, registrable as a
trademark, or reduced to writing, that the Executive may discover, invent or
originate during the Term, either alone or with others and whether or not during
working hours or by the use of the facilities of the Company ("Inventions"),
shall be the exclusive property of the Company. The Executive shall promptly
disclose all Inventions to the Company, shall execute at the request of the
Company any assignments or other documents the Company may deem reasonably
necessary to protect or perfect its rights therein, and shall assist the
Company, upon reasonable request and at the Company's expense, in obtaining,
defending and enforcing the Company's rights therein. The Executive hereby
appoints the Company as his

                                       8

<PAGE>

attorney-in-fact to execute on his behalf any assignments or other documents
reasonably deemed necessary by the Company to protect or perfect its rights to
any Inventions.

8.   INJUNCTIVE RELIEF.

     It is recognized and acknowledged by the Executive that a breach of the
covenants contained in Sections 5, 6 and 7 will cause irreparable damage to
Company and its goodwill, the exact amount of which will be difficult or
impossible to ascertain, and that the remedies at law for any such breach will
be inadequate. Accordingly, the Executive agrees that in the event of a breach
of any of the covenants contained in Sections 5, 6 and 7, in addition to any
other remedy which may be available at law or in equity, the Company will be
entitled to specific performance and temporary, preliminary and permanent
injunctive relief.

9.   ASSIGNMENT AND SUCCESSORS.

     The Company may assign its rights and obligations under this Agreement to
any successor to all or substantially all of the business or the assets of the
Company (by merger or otherwise), and may assign or encumber this Agreement and
its rights hereunder as security for indebtedness of the Company and its
affiliates. This Agreement shall be binding upon and inure to the benefit of the
Company, the Executive and their respective successors, assigns, personnel and
legal representatives, executors, administrators, heirs, distributees, devisees,
and legatees, as applicable. None of the Executive's rights or obligations may
be assigned or transferred by the Executive, other than the Executive's rights
to payments hereunder, which may be transferred only by will or operation of
law. Notwithstanding the foregoing, the Executive shall be entitled, to the
extent permitted under applicable law and applicable Company Arrangements, to
select and change a beneficiary or beneficiaries to receive compensation
hereunder following his death by giving written notice thereof to the Company.

10.  CERTAIN DEFINITIONS.

     (a)  Cause. The Company shall have "Cause" to terminate the Term and the
          Executive's employment hereunder upon:

          (i)  the Executive's failure to perform substantially his duties as an
               employee of the Company (other than any such failure resulting
               from the Executive's incapacity due to physical or mental
               illness), which is not cured within 15 days after a written
               demand for performance is given to the Executive by the Board
               specifying in reasonable detail the manner in which the Executive
               has failed to perform substantially his duties as an employee of
               the Company;

          (ii) the Executive's failure to carry out, or comply with, in any
               material respect any lawful and reasonable directive of the Board
               consistent with the terms of this Agreement that, if capable of
               cure, is not cured by the Executive within 15 days after written
               notice given to the Executive describing such failure in
               reasonable detail;

                                       9

<PAGE>

          (iii) the Executive's conviction, plea of no contest, plea of nolo
               contendere, or imposition of unadjudicated probation for any
               felony or, to the extent involving fraud, dishonesty, theft,
               embezzlement or moral turpitude, any other crime;

          (iv) the Executive's violation of a material regulatory requirement
               relating to the business of the Company and its subsidiaries
               that, in the good faith judgment of the Board, is injurious to
               the Company in any material respect;

          (v)  the Executive's unlawful use (including being under the
               influence) or possession of illegal drugs on the Company's
               premises or while performing the Executive's duties and
               responsibilities under this Agreement;

          (vi) the Executive's breach of this Agreement in any material respect
               that, if capable of cure, is not cured by the Executive within 15
               days after written notice given to the Executive describing such
               breach in reasonable detail; or

          (vii) the Executive's commission of an act of fraud, embezzlement,
               misappropriation, willful misconduct, gross negligence or breach
               of fiduciary duty with respect to the Company or any of its
               affiliates;

     (b)  Date of Termination. "Date of Termination" shall mean (i) if the
          Executive's employment is terminated by his death, the date of his
          death; (ii) if the Executive's employment is terminated pursuant to
          Section 3(a)(ii)-(v) either the date indicated in the Notice of
          Termination or the date specified by the Company pursuant to Section
          3(b), whichever is earlier; (iii) if the Executive's employment is
          terminated pursuant to Section 3(a)(vi) or Section 3(a)(vii), the
          expiration of the then-applicable Term.

     (c)  Disability. "Disability" shall mean, at any time the Company or any of
          its affiliates sponsors a long-term disability plan for the Company's
          employees in which the Executive participates, "disability" as defined
          in such long-term disability plan for the purpose of determining a
          participant's eligibility for benefits, provided, however, if the
          long-term disability plan contains multiple definitions of disability,
          "Disability" shall refer that definition of disability which, if the
          Executive qualified for such disability benefits, would provide
          coverage for the longest period of time. The determination of whether
          the Executive has a Disability shall be made by the person or persons
          required to make disability determinations under the long-term
          disability plan. At any time the Company does not sponsor a long-term
          disability plan for its employees in which the Executive participates,
          Disability shall mean the Executive's inability to perform, with or
          without reasonable accommodation, the essential functions of his
          position hereunder for a total of six months during any 12-month
          period as a result of incapacity due to mental or physical illness as
          determined by a physician selected

                                       10

<PAGE>

          by the Board and acceptable to the Executive or the Executive's legal
          representative, such agreement as to acceptability not to be
          unreasonably withheld or delayed. Any refusal by the Executive to
          submit to a medical examination for the purpose of determining
          Disability shall be deemed to constitute conclusive evidence of the
          Executive's Disability.

11.  GOVERNING LAW.

     This Agreement shall be governed, construed, interpreted and enforced in
accordance with its express terms, and otherwise in accordance with the
substantive laws of the State of California, without reference to the principles
of conflicts of law, and where applicable, the federal laws of the United
States.

12.  VALIDITY.

     The invalidity or unenforceability of any provision or provisions of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, which shall remain in full force and effect.

13.  NOTICES.

     Any notice, request, claim, demand, document and other communication
hereunder to any party shall be effective upon receipt (or refusal of receipt)
and shall be in writing and delivered personally or sent by facsimile or
certified or registered mail, postage prepaid, or any nationally recognized
overnight courier service with signature certification of receipt, as follows:

     (a)  If to the Company:

          Skilled Healthcare Group, Inc.
          27442 Portola Parkway
          Suite 200
          Foothill Ranch, California 92610
          Attn: General Counsel

          with copies to:

          Onex Partners LP
          712 Fifth Avenue
          New York, New York 10019
          Facsimile: (212) 582-0909
          Attention: Robert M. LeBlanc

                                       11

<PAGE>

          and:

          Kaye Scholer LLP
          425 Park Avenue
          New York, New York 10022
          Facsimile: (212) 836-8211
          Attention:  Joel I. Greenberg

     (b)  If to the Executive:

          Mark Wortley

          [_________________________]
          [_________________________]
          Facsimile: [_____________]

     or at any other address as any party shall have specified by notice in
writing to the other party.

14.  COUNTERPARTS.

     This Agreement may be executed in several counterparts, each of which shall
be deemed to be an original, but all of which together will constitute one and
the same Agreement. Signatures delivered by facsimile shall be deemed effective
for all purposes.

15.  ENTIRE AGREEMENT.

     The terms of this Agreement are intended by the parties to be the final
expression of their agreement with respect to the employment of the Executive by
the Company and supersede all prior understandings and agreements, whether
written or oral. The parties further intend that this Agreement shall constitute
the complete and exclusive statement of their terms and that no extrinsic
evidence whatsoever may be introduced in any judicial, administrative, or other
legal proceeding to vary the terms of this Agreement.

16.  AMENDMENTS; WAIVERS.

     This Agreement may not be modified, amended, or terminated except by an
instrument in writing, signed by the Executive and a duly authorized officer of
Company. By an instrument in writing similarly executed, the Executive or a duly
authorized officer of the Company may waive compliance by the other party or
parties with any specifically identified provision of this Agreement that such
other party was or is obligated to comply with or perform; provided, however,
that such waiver shall not operate as a waiver of, or estoppel with respect to,
any other or subsequent failure. No failure to exercise and no delay in
exercising any right, remedy, or power hereunder preclude any other or further
exercise of any other right, remedy, or power provided herein or by law or in
equity. Except as otherwise set forth in this Agreement, the respective rights
and obligations of the parties under this Agreement shall survive any
termination of Executive's employment.

                                       12

<PAGE>

17.  NO INCONSISTENT ACTIONS.

     The parties hereto shall not voluntarily undertake or fail to undertake any
action or course of action inconsistent with the provisions or essential intent
of this Agreement. Furthermore, it is the intent of the parties hereto to act in
a fair and reasonable manner with respect to the interpretation and application
of the provisions of this Agreement.

18.  CONSTRUCTION.

     This Agreement shall be deemed drafted equally by both the parties. Its
language shall be construed as a whole and according to its fair meaning. Any
presumption or principle that the language is to be construed against any party
shall not apply. The headings in this Agreement are only for convenience and are
not intended to affect construction or interpretation. Any references to
paragraphs, subparagraphs, sections or subsections are to those parts of this
Agreement, unless the context clearly indicates to the contrary. Also, unless
the context clearly indicates to the contrary, (a) the plural includes the
singular and the singular includes the plural; (b) "and" and "or" are each used
both conjunctively and disjunctively; (c) "any," "all," "each," or "every" means
"any and all," and "each and every"; (d) "includes" and "including" are each
"without limitation"; (e) "herein," "hereof," "hereunder" and other similar
compounds of the word "here" refer to the entire Agreement and not to any
particular paragraph, subparagraph, section or subsection; and (f) all pronouns
and any variations thereof shall be deemed to refer to the masculine, feminine,
neuter, singular or plural as the identity of the entities or persons referred
to may require.

19.  ARBITRATION.

     Any controversy arising out of or relating to this Agreement, its
enforcement or interpretation, or because of an alleged breach, default, or
misrepresentation in connection with any of its provisions, or any other
controversy arising out of the Executive's employment by the Company, including,
but not limited to, any state or federal statutory claims, shall be submitted to
arbitration in Los Angeles County, California, before a sole neutral arbitrator
(the "Arbitrator"), mutually selected and agreeable to both parties and selected
from Judicial Arbitration and Mediation Services, Inc., Los Angeles County,
California, or its successor ("JAMS"), or if JAMS is no longer able to supply
the Arbitrator, such Arbitrator shall be selected from the American Arbitration
Association, and shall be conducted in accordance with the provisions of
California Code of Civil Procedure Sections 1280 et seq. as the exclusive forum
for the resolution of such dispute; provided, however, that provisional
injunctive relief (including, but not limited to, temporary restraining orders
and preliminary injunctions) may, but need not, be sought by either party to
this Amended Agreement in any court of competent jurisdiction while arbitration
proceedings are pending, and any provisional injunctive relief granted by such
court shall remain effective until the matter is finally determined by the
Arbitrator; no bond or other security shall be required in connection therewith.

     Final resolution of any dispute through arbitration may include any remedy
or relief that the Arbitrator deems just and equitable, including any and all
remedies provided by applicable state or federal statutes. At the conclusion of
the arbitration, the Arbitrator shall issue a written decision that sets forth
the essential findings and conclusions upon which the Arbitrator's award

                                       13

<PAGE>

or decision is based. Any award or relief granted by the Arbitrator hereunder
shall be final and binding on the parties hereto and may be enforced by any
court of competent jurisdiction.

     The parties acknowledge and agree that they are hereby waiving any rights
to trial by jury in any action, proceeding or counterclaim brought by either of
the parties against the other in connection with any matter whatsoever arising
out of or in any way connected with this Amended Agreement or the services
rendered hereunder. The parties agree that the Company Shall be responsible for
payment of the forum costs of any arbitration hereunder, including the
Arbitrator's fee. The Executive and the Company further agree that in any
proceeding to enforce the terms of this Amended Agreement, the prevailing party
shall be entitled to its or her reasonable attorneys' fees and costs (other than
forum costs associated with the arbitration) incurred by it or him in connection
with resolution of the dispute up to a maximum of Fifty Thousand Dollars
($50,000.00) in addition to any other relief granted.

20.  ENFORCEMENT.

     If any provision of this Agreement is held to be illegal, invalid or
unenforceable under present or future laws effective during the term of this
Agreement, such provision shall be fully severable; this Agreement shall be
construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a portion of this Agreement; and the remaining provisions of
this Agreement shall remain in full force and effect and shall not be affected
by the illegal, invalid or unenforceable provision or by its severance from this
Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable
provision there shall be added automatically as part of this Agreement a
provision as similar in terms to such illegal, invalid or unenforceable
provision as may be possible and be legal, valid and enforceable.

21.  WITHHOLDING.

     The Company shall be entitled to withhold from any amounts payable under
this Agreement any federal, state, local or foreign withholding or other taxes
or charges which the Company is required to withhold. The Company shall be
entitled to rely on an opinion of counsel if any questions as to the amount or
requirement of withholding shall arise.

22.  INDEMNIFICATION.

     The Company agrees that (a) if the Executive is made a party, or is
threatened to be made a party, to any threatened or actual action, suit or
proceeding whether civil, criminal, administrative, investigative, appellate or
other (a "Proceeding") by reason of the fact that he is or was a director,
officer, employee, agent, manager, consultant or representative of the Company
or (b) if any claim, demand, request, investigation, controversy, threat,
discovery request or request for testimony or information (a "Claim") is made,
or threatened to be made, that arises out of or relates to the Executive's
service in any of the foregoing capacities, then the Executive shall promptly be
indemnified and held harmless by the Company to the fullest extent permitted by
the laws of the state of incorporation of the Company, against any and all
costs, expenses, liabilities and losses incurred or suffered by the Executive in
connection therewith, and such indemnification shall continue as to the
Executive even if he has ceased to be a director, member, employee, agent,
manager, consultant or representative of the Company and shall inure

                                       14

<PAGE>

to the benefit of the Executive's heirs, executors and administrators. The
Company may assume the defense of any Proceeding or Claim with counsel selected
by the Company and reasonably satisfactory to the Executive and, if it does so,
the Executive shall not be entitled to be reimbursed for any separate counsel he
may retain in connection with such Proceeding or Claim.

     Neither the failure of the Company (including its Board, independent legal
counsel or stockholders) to have made a determination in connection with any
request for indemnification that the Executive has satisfied any applicable
standard of conduct, nor a determination by the Company (including its Board,
independent legal counsel or stockholders) that the Executive has not met any
applicable standard of conduct, shall create a presumption that the Executive
has not met an applicable standard of conduct.

     During the period of Employment and for a period of time thereafter
determined as provided below, the Company shall keep in place a directors and
officers' liability insurance policy (or policies) providing coverage, or such
coverage may be provided under a policy that provides coverage to Onex
Corporation or Onex Partners LP and their affiliates, to the Executive if and to
the extent that the Company provides such coverage to its directors and such
coverage (or other directors and officers liability insurance coverage) shall
continue after the termination of the Period of Employment if and for the period
of time that such coverage is extended to the Company's former director, other
than former directors who are employees of Onex Corporation, Onex Partners LP or
their affiliates.

23.  COOPERATION IN LITIGATION.

     The Executive promises and agrees that, following the date his employment
by the Company terminates, he will reasonably cooperate with the Company in any
litigation in which the Company is a party or otherwise involved which arises
out of events occurring prior to the termination of his employment, including
but not limited to, serving as a consultant (at a reasonable hourly rate) or
witness and producing documents and information relevant to the case or helpful
to the Company.

24.  EMPLOYEE ACKNOWLEDGEMENT.

     The Executive acknowledges that he has read and understands this Agreement,
is fully aware of its legal effect, has not acted in reliance upon any
representations or promises made by the Company other than those contained in
writing herein, and has entered into this Agreement freely based on his own
judgment.

                                       15

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date
and year first above written.

                                        SKILLED HEALTHCARE GROUP, INC.

                                        By:
                                            ------------------------------------
                                        Name: Boyd W. Hendrickson
                                        Title: Chief Executive Officer

                                        EXECUTIVE

                                        By:
                                            ------------------------------------
                                        Name: Mark Wortley

                      [SIGNATURE PAGE -- EMPLOYMENT AGREEMENT]

<PAGE>

                                   SCHEDULE 1

1.   Alta Holding Inc., limited to Hospice and Out Patient Physical Therapy
     clinics in Arkansas and Missouri.

<PAGE>

                                     ANNEX A

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