Document:

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                                                                  Exhibit 10.2

                              EMPLOYMENT AGREEMENT

                  AGREEMENT dated as of October 16, 2001, among SYNERGY 2000,
         INC., a Delaware corporation ("Parent"), INFINITY TECHNOLOGY SOLUTIONS,
         INC., a Delaware corporation (the "Company"), and CHARLES R. CRONIN,
         JR. ("Employee").

         Company currently is engaged in the business of providing comprehensive
business and technology solutions, combining expertise in information technology
with practical consulting solutions for complex workforce issues. Employee is
experienced in general management, technology and operational services affecting
the Company.

         Company desires to employ the Employee, and Employee is willing to
accept such employment, in each case, subject to the terms and conditions set
forth in this Agreement.

         Accordingly, Company and Employee hereby agree as follows:

I. TERM OF EMPLOYMENT

         The term of Employee's employment under this Agreement shall be for a
period of three (3) years, commencing as of effective time (the "Effective
Time") of the merger (the "Merger") among, INTER ALIA, the Company, Parent, and
Convert-Tech, Inc., a California corporation, unless earlier terminated as
provided in Article IV hereof (the "Employment Period"). Following the initial
three (3) year term, this Agreement shall be renewed automatically for
successive terms of one (1) year unless either party gives notice to the other
at least ninety (90) days prior to the expiration of any such term of its or his
intention not to renew.

II. EMPLOYMENT; DUTIES AND ACCEPTANCE

         SECTION 2.01. EMPLOYMENT. Employee shall devote his full-time services,
skill and time to the affairs of the Company and the promotion of its interests.
Employee shall be the Executive Vice President of Parent and the President of
Company and shall be responsible, subject always to the direction of the
Parent's and Company's Boards of Directors, for working with Parent's and
Company's general management, business development and marketing teams. Employee
shall report to the Company's and Parent's Boards of Directors. Employee's
expenditure of reasonable amounts of time for personal, business (for services
to or for the benefit of any of Infinity Web Systems, Inc., VROOM, Inc., and
Transformation Consulting, Inc.), charitable or professional activities shall
not be deemed a breach of his undertaking to provide the required services
hereunder, subject always to the provisions of Section 5.02 hereof, provided
that such activities do not interfere materially with Employee's ability to
render such services.

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         SECTION 2.02. ACCEPTANCE OF EMPLOYMENT BY EMPLOYEE. Employee accepts
such employment with Company and shall render the services required by this
Agreement to be rendered by him, and hereby agrees to execute and deliver the
Company's "Confidentiality and Invention Assignment Agreement," in the form
attached hereto. The terms of that agreement require the Employee to refrain for
a period of time after employment from competing with the Company and Parent or
using or disclosing the Company's and Parent's Confidential Information (as
defined in the agreement) or any confidential information received during
Employee's prior employment in any manner which might be detrimental to or
conflict with the business interests of the Company, Parent, or its employees,
but that agreement does not prevent Employee from using Employee's general
knowledge and experience - no matter when or how gained - in any new position or
field. Further, Employee's activities in furtherance of the objectives of VROOM,
Inc. and Transformation Consulting, Inc. are expressly permitted and are
conclusively deemed not to be competitive with the activities of the Company and
Parent.

III. EMPLOYEE'S COMPENSATION

         SECTION 3.01. BASE COMPENSATION. As compensation for services to be
rendered pursuant to this Agreement, Company shall pay Employee and Employee
shall accept, a base salary (the "Salary") at the annual rate of Two Hundred
Forty Thousand Dollars ($240,000), payable at the annualized rate of One Hundred
Eighty Thousand ($180,000) for the period through December 31, 2001, with the
deferred portion payable as soon as practicable subsequent to December 31, 2001;
PROVIDED, HOWEVER, that if the deferred portion is not paid on or before March
15, 2002, such amount shall be evidenced by an unsecured demand promissory note
made by Company in favor of Employee. Thereafter, Company shall pay Employee at
an annualized rate of not less than the rate paid for the immediately preceding
period, subject to annual adjustment, upwards but not downwards. The salary
shall be payable to Employee in accordance with the Company's standard payroll
policies.

         SECTION 3.02. BONUS.

         (a) Guaranteed Bonus. Employee shall be entitled to a guaranteed bonus
payable in cash in an amount equal to twenty-five percent (25%) of the Salary
payable pro-rata commencing with the 2001 calendar year, not later than March
15, 2002, and annually thereafter, and pro-rated in the event of commencement,
expiration or termination prior to said payment date.

         (b) Performance Bonus. Employee shall be entitled to incentive
compensation, payable by the Company on a quarterly basis not later than
forty-five (45) days following the end of each calendar quarter, in an amount
equal to a percentage of the Company's actually collected revenues generated by
the Company's technology consulting operations (but expressly excluding
therefrom all revenues generated by the operations of any of the Company's
managing general agency, insurance company or third-party administration
activities), in accordance with the schedule set forth below:

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                  Revenues                        Percentage Bonus Compensation
                  --------                        -----------------------------

                  Up to $10,000,000                            3%
                  $10,000,001-$20,000,000                      2%
                  More than $20,000,000                        1%

The calculation of said quarterly performance bonus payment shall be determined
by the Company's regularly engaged certified public accountants, and shall be
subject to reconciliation on a continuing basis. At Employee's option, Employee
may elect to receive such performance bonus in Parent Common Stock or options to
purchase Parent Common Stock upon terms mutually determined by Employee and
Parent.

         (c) Employee shall be entitled to such additional bonuses as may be
determined by the Company's Board of Directors.

         SECTION 3.03. STOCK OPTIONS. Employee shall receive options, as of
January 1 of each year commencing with January 1, 2002, to purchase seventy-five
thousand (75,000) shares of the Parent's Common Stock, at a price equal to 110%
of the closing bid price of the Parent's Common Stock on its Principal Market
determined as of the most recent trading date immediately preceding the date of
each such grant, and expiring at such time as determined by the Parent's Board
of Directors and identical to the expiration dates granted to Parent's senior
executive management. Said option grant shall be pro-rated in the event of
termination prior to January 1 of any year. "Principal Market" means the OTC
Electronic Bulletin Board or the NASDAQ SmallCap Market as appropriate. Employee
shall be entitled to such additional stock options as may be granted to him
under any Company stock option plan(s) from time to time in effect at the
Company.

         SECTION 3.04. PARTICIPATION IN EMPLOYEE BENEFIT PLANS. Company shall
make available to the Employee the Company benefit program currently in effect
or as may be established from time to time by its Board of Directors for
similarly situated employees, including without limitation, any incentive
compensation plans or group benefit plans.

         SECTION 3.05. KEY-MAN INSURANCE. Company shall acquire key man
insurance on the life of Employee not later than January 2002, naming the
Company as beneficiary in an amount not less than One Million Dollars
($1,000,000).

         SECTION 3.06. VACATION AND SICK LEAVE PROVISIONS. Employee shall
receive not less than twenty (20) working days' vacation each year, exclusive of
legal holidays. At the option of Employee, unused vacation days may be carried
over to succeeding years or Employee shall be entitled to payment therefor at
the end of Company's fiscal year or Employee's anniversary date of employment,
whichever is mutually determined appropriate by Company and Employee. In
addition, the Employee shall be entitled to sick leave benefits during the term
of this Agreement in accordance with the customary policies applied to similarly
situated employees of the Company.

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         SECTION 3.07. REIMBURSEMENT OF EXPENSES. Subject to prior approval by
the Company, Employee shall be reimbursed for reasonable expenses incurred in
connection with the business of Company upon the presentation by Employee, from
time to time, of an itemized account of and proper receipts for such
expenditures, including without limitation, an automobile lease or monthly
automobile allowance commencing as of the Effective Time of the Merger, in an
amount not less than Seven Hundred Fifty Dollars ($750) as determined after
consultation with the Company's regularly engaged certified public accountants.

         SECTION 3.08. OTHER COMPENSATION. Employee shall receive such other
compensation as may from time to time be granted to Employee by Company's Board
of Directors.

         SECTION 3.09. WITHHOLDING. All payments due to Employee under any
provisions of this Agreement shall be reduced by any amounts required to be
withheld by Company from time to time from such payments under applicable
Federal, state or local law or regulations then in effect.

IV. TERMINATION

         SECTION 4.01. TERMINATION BY EITHER PARTY UPON NOTICE. Either party may
terminate this Agreement, with or without cause, effective upon delivery of
written notice of termination to the other party.

         SECTION 4.02. TERMINATION BY COMPANY FOR CAUSE. Company may, at any
time, terminate this Agreement, for Cause. "Cause" means: (a) willful and
repeated failure to comply with the lawful directions of the Board of Directors;
(b) gross negligence or willful misconduct in the performance of Employee's
duties to the Company; (c) commission of any act of fraud against, or
misappropriation of material property belonging to the Company; or (d) action by
Employee that is materially injurious to the business or reputation of the
Company, in each case as determined in good faith by the Board of Directors,
including without limitation, action by Employee involving violation of any
criminal statute constituting a misdemeanor involving moral turpitude or a
felony, chronic alcoholism or drug addiction.

Upon termination pursuant to the provisions of this Section, Employee would be
entitled to receive only such compensation accrued and unpaid as of the
termination date.

         SECTION 4.03. TERMINATION FOR DEATH AND DISABILITY. This Agreement
shall be terminated effective immediately and automatically, upon the death or
permanent disability of Employee. For purposes of this subsection, "permanent
disability" shall be deemed to have occurred if Employee is unable by reason of
illness or physical or mental disability to perform the services required under
this Agreement for a period aggregating 120 days within any period of 12
consecutive months during the Employment Period. Upon termination for death,
Employee would be entitled to receive only such compensation accrued and unpaid
as of the termination date. Under termination for permanent disability, Employee
would be entitled to receive full compensation and benefits for the initial six
(6) months following the determination of "permanent disability", and one-half
of such compensation and benefits for the next succeeding six (6) month period.

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         SECTION 4.04. TERMINATION OTHER THAN FOR CAUSE. If Employee is
terminated for any reason other than as set forth in Sections 4.02 and 4.03
hereof, then Employee would be entitled to receive compensation and benefits as
follows:

                  (a) SEVERANCE. Two hundred percent (200%) of the annual Salary
         at its then current level, payable in a lump sum or at the times such
         salary would otherwise have been payable were Employee to remain
         employed with Company, as determined by Employee in his sole
         discretion, and acceleration of vesting of all options. If the Company
         is unable to make payment entirely in cash, Company shall evidence such
         obligation by an unsecured demand promissory note convertible into
         shares of Parent's Common Stock on such terms as may be agreed upon by
         Employee and Parent, or at Employee's option, Employee may elect to
         receive said severance amount in Parent Common Stock or options to
         purchase Parent Common Stock. If Employee elects to receive options to
         purchase Parent Common Stock, then all such options shall be vested
         immediately and Parent shall take such steps to register such
         securities as promptly as practicable in a registration statement
         pursuant to applicable Federal and state securities laws; and

                  (b) CONTINUATION OF BENEFITS. Company would maintain in full
         force and effect Employee's benefit plans (or provide Employee with
         alternative substantially equivalent coverage) for a period equal to
         six (6) months, or as otherwise required by applicable Federal and/or
         state law.

                  Further, if, during your employment with the Company there is
a Change of Control (as defined below), or if Executive elects to terminate his
employment within six months following a Change in Control, then Executive shall
be entitled to receive not less than the compensation and benefits set forth in
this Section, including the acceleration of vesting of all options. "Change of
Control" shall mean the occurrence of any of the following events:

                  (a) an acquisition of any voting securities (or securities
         convertible or exchangeable for voting securities) of the Company (the
         "Voting Securities) by any "person" (as the term "person" is used for
         purposes of Section 13(d) or Section 14(d) of the Securities Exchange
         Act of 1934, as amended (the "Exchange Act")) immediately after which
         such person has "beneficial ownership" (within the meaning of Rule
         13d-3 promulgated under the Exchange Act) ("Beneficial Ownership") of
         or otherwise is entitled to obtain (by virtue of any option, conversion
         right, etc.) more than forty percent (40%) or more of the combined
         voting power of the Company's then outstanding Voting Securities;
         PROVIDED, HOWEVER, in determining whether a Change in Control has
         occurred, Voting Securities that are acquired in a Non-Control
         Acquisition (as hereinafter defined) shall not constitute an
         acquisition that would cause a Change in Control. "Non-Control
         Acquisition" shall mean an acquisition by (A) an employee benefit plan
         (or a trust forming a part thereof) maintained by (1) the Company or
         (2) any corporation, partnership or other person of which a majority of
         its voting power or its equity securities or equity interest is owned
         directly or indirectly by the Company (a "Subsidiary"), or (B) any
         person in connection with a Non-Control Transaction (as hereinafter
         defined);

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                  (b) the individuals who constitute the Board of Directors of
         the Company as of the date hereof (the "Incumbent Board") cease for any
         reason to constitute a majority of the Board of Directors; PROVIDED,
         HOWEVER, that if the election, or nomination for election by the
         Company's stockholders, of any new director was approved by a vote of
         at least two-thirds of the Incumbent Board, such new director shall be
         considered as a member of the Incumbent Board; provided, further, that
         no individual shall be considered a member of the Incumbent Board if
         such individual initially assumed office as a result of either an
         actual or threatened "election contest" (as described in Rule 14a-11
         promulgated under the Exchange Act) (an "Election Contest") or other
         actual or threatened solicitation of proxies or consents by or on
         behalf of a person other than the Board of Directors (a "Proxy
         Contest") including by reason of any agreement intended to avoid or
         settle any Election Contest or Proxy Contest; or

                  (c) approval by stockholders of the Company of: (A) a merger,
         consolidation, share exchange or reorganization involving the Company,
         unless (1) the stockholders of the Company, immediately before such
         merger, consolidation, share exchange or reorganization, own, directly
         or indirectly immediately following such merger, consolidation, share
         exchange or reorganization, more than forty percent (40%) of the
         combined voting power of the outstanding voting securities of the
         corporation that is the successor in such merger, consolidation, share
         exchange or reorganization (the "Surviving Company") in substantially
         the same proportion as their ownership of the Voting Securities
         immediately before such merger, consolidation, share exchange or
         reorganization, (2) the individuals who were members of the Incumbent
         Board immediately prior to the execution of the agreement providing for
         such merger, consolidation, share exchange or reorganization constitute
         at least two-thirds of the members of the board of directors of the
         Surviving Company, and (3) no persons (other than the Company or any
         Subsidiary, any employee benefit plan (or any trust forming a part
         thereof) maintained by the Company, the Surviving Company or any
         Subsidiary, or any person who, immediately prior to such merger,
         consolidation, share exchange or reorganization had Beneficial
         Ownership of fifteen percent (15%) or more of the then outstanding
         Voting Securities) have Beneficial Ownership of fifteen percent (15%)
         or more of the combined voting power of the Surviving Company's then
         outstanding voting securities (a transaction described in clauses (1)
         through (3) is referred to herein as "Non-Control Transaction"); (B) a
         complete liquidation or dissolution of the Company; or (C) an agreement
         for the sale or other disposition of all or substantially all of the
         assets of the Company to any person (other than a transfer to a
         Subsidiary).

                  Notwithstanding the foregoing, a Change in Control shall not
be deemed to occur solely because any person (a "Subject Person") acquired
Beneficial Ownership of more than the permitted amount of the outstanding Voting
Securities as a result of the acquisition of Voting Securities by the Company
that, by reducing the number of Voting Securities outstanding, increases the
proportional number of shares Beneficially Owned by such Subject Person,
provided that if a Change in Control would occur (but for the operation of this
sentence) as a result of the acquisition of Voting Securities by the Company,
and after such share acquisition by the Company, such Subject Person becomes the
Beneficial Owner of any additional Voting Securities that increases the
percentage of the then outstanding Voting Securities Beneficially Owned by such
Subject Person, then a Change in Control shall occur.

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         SECTION 4.05. EFFECT OF TERMINATION. Termination of this Agreement
shall not release or discharge either party hereto from any obligation, debt or
liability which may previously have occurred and remains to be performed upon
the date of termination. In addition, the provisions of Article V of this
Agreement shall survive such termination or expiration of the term of this
Agreement.

V. OBLIGATIONS OF EMPLOYEE

         SECTION 5.01. ACCEPTANCE OF "CONFIDENTIALITY AND INVENTION ASSIGNMENT
AGREEMENT". Employee hereby agrees to execute and deliver, and to abide by, the
terms and conditions set forth in that certain "Confidentiality and Invention
Assignment Agreement" attached hereto.

         SECTION 5.02. COMPETITION. Without Company's prior written approval,
Employee agrees that, during the Employment Period (and as the same may be
renewed or extended) or, if Employee terminates this Agreement without a
material breach by Company, for a period of one (1) year from the date thereof,
Employee shall not, directly or indirectly, for his own account or the account
of any other person, firm or company, (i) offer or sell any products or services
which compete with the Company on the date of such expiration or termination;
(ii) induce or attempt to induce any person(s) or entities which were customers
of Company during the Employment Period or were being actively solicited at the
time of termination of the Employment Period to cease doing business or not to
commence doing business in whole or in part with Company or solicit the business
of any such customer which compete with the Company on the date of such
expiration or earlier termination that Employee would have knowledge of by
virtue of his capacity; or (iii) solicit, interfere with, or endeavor to cause
any employee or consultant of Company to leave his employment or engagement or
induce or attempt to induce any such employee or consultant to breach his
employment or engagement agreement with Company. Participation in a business
shall include, but not be limited to, serving as a director, officer, employee,
agent or other representative of or having an interest in the business as an
owner, stockholder, partner, limited partner, joint venturer, material creditor
or any other financial interest; PROVIDED, HOWEVER, that the following shall not
be in violation of this covenant: (i) the ownership by Employee of not more than
five (5) percent of the outstanding shares of stock of any such business listed
on any national stock exchange or registered under the federal securities laws
and actively traded in the over-the-counter market; and (ii) participation by
Employee in any capacity in any business, which participation has received a
specific written approval of a majority of the Board of Directors of Company.

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         SECTION 5.03. RIGHTS AND REMEDIES UPON BREACH OF EMPLOYEE'S
OBLIGATIONS. Because of the unique and proprietary nature of the Company's
Confidential Information and business operations and practices, and the unique
character of Employee's services, and because any material breach of any of the
provisions of this Agreement will cause irreparable injury to Company for which
money damages would not be an adequate remedy, it is understood and agreed that
Company's remedy for a material breach by Employee of this Agreement will be
inadequate, and that, therefore, in the event of any material breach by Employee
of his obligations pursuant to the terms of this Agreement, Company shall be
entitled, upon application to any court of competent jurisdiction, to equitable
relief (including, without limitation, provisional and permanent injunctive
relief and specific performance) in order to enforce or prevent violation of
such provision or provisions. Nothing contained herein shall be construed as
prohibiting Company from pursuing any other remedies provided to it by this
Agreement or available to it at law or in equity for such breach including,
without limitation, the recovery of money damages from Employee.

         SECTION 5.04. SURVIVAL OF EMPLOYEE'S OBLIGATIONS. Employee's
obligations pursuant to this Article shall survive the termination of this
Agreement.

VI. GENERAL PROVISIONS

         SECTION 6.01. NOTICES. All notices, requests, consents or other
communications provided for in or to be given under this Agreement shall be in
writing, may be delivered in person, by facsimile transmission (fax), by
overnight air courier or by mail, and shall be deemed to have been duly given
and to have become effective (a) upon receipt if delivered in person or by fax,
(b) one (1) day after having been delivered to an overnight air courier or (c)
three (3) days after having been deposited in the mails as certified or
registered matter, all fees prepaid, directed to the parties or their assignees
at the following addresses (or at such other address as shall be given in
writing by a party hereto):

                  If to Employee:           Charles R. Cronin, Jr.
                                            1285 Dumaine Avenue
                                            Oak Park, CA   91377
                                            Fax: (818) 879-8407

                  If to Company:            Synergy 2000, Inc.
                                            30 North Raymond Avenue, Suite 804
                                            Pasadena, CA   91103
                                            Attention: Board of Directors.
                                            Fax: (626) 792-8603

         SECTION 6.02. ASSIGNMENT. This Agreement shall not be assigned, pledged
or transferred in any way by either party hereto. Any attempted assignment,
pledge, transfer or other disposition of this Agreement or any rights, interests
or benefits contrary to the foregoing provisions shall be null and void.

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         SECTION 6.03. CONFLICTING AGREEMENTS. Employee hereby represents and
warrants to Company that his entering into this Agreement, and the obligations
and duties undertaken by him hereunder, will not conflict with, constitute a
breach of or otherwise violate the terms of any employment or other agreement to
which he is a party and that he is not required to obtain the consent of any
person, firm, corporation or other entity in order to enter into this Agreement.

         SECTION 6.04. INDEMNIFICATION; INSURANCE. Company shall indemnify
Employee and hold Employee harmless from any claims, actions, charges, expenses,
judgments, fines, settlements and other amounts actually and reasonably incurred
in connection with any proceeding to which Employee was or is a party or is
threatened to be made a party arising by reason of the fact that Employee is or
was an employee of Company. For purposes of this Agreement, "proceeding" shall
mean any completed, actual, pending or threatened action, suit, claim or
proceeding, whether civil, criminal, administrative or investigative (including
an action by or in the right of the Company) and whether formal or informal, in
which Employee is, was or becomes involved by reason of the fact that Employee
is or was a director, officer, employee, trustee or agent of the Company or
that, being or having been such a director, officer, employee, trustee or agent,
Employee is or was serving at the request of the Company as a director, officer,
employee, trustee or agent of another corporation or of a partnership, joint
venture, trust or other enterprise, including service with respect to an
employee benefit plan, whether the basis of such proceeding is alleged action
(or inaction) by Employee in an official capacity as a director, officer,
employee, trustee or agent or in any other capacity while serving as a director,
officer, employee, trustee or agent. For purposes of this Agreement, "expenses"
includes, without limitation, attorneys' fees and any expenses of establishing a
right to indemnification under this Agreement or under the laws of the State of
California. In addition, to the extent economically practicable as determined by
the Company in its sole discretion, Company shall include Employee as an
additional named insured on its insurance policies.

         SECTION 6.05. NO WAIVER. No term or condition of this Agreement shall
be deemed to have been waived, nor shall any party hereto be estopped from
enforcing any provision of this Agreement, except by written instrument of the
party charged with such waiver or estoppel. Any written waiver shall not be
deemed a continuing waiver unless specifically stated, shall operate only as to
the specific term or condition waived and shall not constitute a waiver of such
term or condition for the future or as to any act other than the act
specifically waived.

         SECTION 6.06. GOVERNING LAW; VENUE. This Agreement shall be governed by
and construed in accordance with the laws of the State of California. In the
event of any dispute or controversy arising under this Agreement or the
transactions contemplated herein, the parties mutually consent to the
jurisdiction of the state and federal courts located in Los Angeles, California,
and agree that any litigation may be served outside of California with the same
force and effect as if service had been made in California.

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         SECTION 6.07. ENTIRE AGREEMENT; AMENDMENTS. This Agreement, including
the "Confidentiality and Invention Assignment Agreement" attached hereto, is
intended by the parties as a final expression of their Agreement with respect to
the terms included herein, and may not be contradicted or varied by evidence of
any prior or contemporaneous agreement. All prior negotiations, correspondence,
memoranda, and agreements, whether oral or written, are merged herein. Any
change, revision or modification of any provision of this Agreement shall not be
binding unless executed in writing and signed by a duly authorized
representative of each of the parties hereto.

         SECTION 6.08. HEADINGS. Headings contained herein are for convenient
reference only; they are not a part of this Agreement and are not to affect in
any way the substance or interpretation of this Agreement.

         SECTION 6.09. SURVIVAL OF PROVISIONS. In case any one or more of the
provisions or any portion of any provision contained in this Agreement
(including, without limitation, any geographical or temporal restrictions,
contained in Article V hereof) should be found to be invalid, illegal or
unenforceable in any respect, such provision or portion thereof shall be
modified or deleted in such manner so as to afford the parties the fullest
protection commensurate with making this Agreement, as modified, legal and
enforceable under applicable laws, and the validity, legality and enforceability
of any such provision shall not in any way be affected or impaired thereby, such
remaining provisions or portion of any such provision construed as severable and
independent thereof.

         SECTION 6.10. ARBITRATION; ATTORNEYS' FEES. Any dispute or conflict
which arises between the parties hereto may be submitted to the American
Arbitration Association, before a single arbitrator, in accordance with its then
current Commercial Rules in Los Angeles, California, for arbitration and the
parties may, if so mutually agreed upon, be bound by the results of such
arbitration in accordance with applicable California law. If either party brings
an action for judicial review or enforcement of the arbitration proceedings,
award or decision, the prevailing party in any such action, trial or appeal
shall be entitled to its reasonable attorneys' fees to be paid by the
nonprevailing party as fixed by the court.

         SECTION 6.11. COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be considered a duplicate original.

         SECTION 6.12. CONSTRUCTION. Each of the parties hereto has been
represented by counsel throughout this transaction who has carefully negotiated
the provisions hereof. The language in all parts of this Agreement shall be in
all cases construed simply according to its fair meaning and not strictly for or
against any of the parties. When the context so requires in this Agreement, the
masculine gender includes the feminine and/or the neuter, and the singular
number includes the plural.

         SECTION 6.13. PARENT GUARANTEE. Parent hereby unconditionally
guarantees the payment and performance and each and every obligation of Company
hereunder.

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         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement, in the case of Company by its duly authorized officer(s) empowered so
to act, all as of the date first above written.

                                            SYNERGY 2000 INC.,

                                            By: /s/ Eli Dabich, Jr.
                                                --------------------------------
                                            Its: President

                                            INFINITY TECHNOLOGY SOLUTIONS, INC.,

                                            By: /s/ Eli Dabich, Jr.
                                                --------------------------------
                                            Its: President

                                            /s/ Charles R. Cronin, Jr.
                                            ------------------------------------
                                            [Signature of Employee]

                                            CHARLES R. CRONIN, JR.
                                            ------------------------------------
                                            [Type or Print Name of Employee]

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               CONFIDENTIALITY AND INVENTION ASSIGNMENT AGREEMENT

                  AGREEMENT dated as of October 16, 2001, between SYNERGY 2000,
         INC., a Delaware corporation and its affiliated companies
         (collectively, the "Company"), and CHARLES R. CRONIN, JR. ("Employee").

         In consideration of the commencement of Employee's employment and the
compensation paid to Employee, Employee acknowledges and agrees with the Company
as follows:

I. EFFECTIVENESS

         This Agreement shall become effective on the earlier of (i)
commencement of Employee's employment with the Company, or (ii) the date and
time at which any Confidential Information (as defined in Section 2.01 below)
was or is first disclosed to Employee.

II. PROTECTION OF COMPANY'S CONFIDENTIAL INFORMATION

         SECTION 2.01. CONFIDENTIAL INFORMATION. The Company has and will
develop, compile, and own certain proprietary techniques and confidential
information which have great value in its business (said techniques and
information being hereinafter referred to, collectively, as "Confidential
Information"). The Company has and also will have access to Confidential
Information of its Clients. ("Clients" shall mean any persons or entities for
whom the Company performs services or furnishes goods, or from whom the Company
or Employee obtains information). Confidential Information includes not only
information disclosed by the Company or its Clients to Employee in the course of
his or her employment, but also information developed or learned by Employee
during the course of his or her employment with the Company, such as Innovations
(as defined in Section 4.01 below). Confidential Information is to be broadly
defined. Confidential Information includes all information that has or could
have commercial value or other utility in the business in which the Company or
Clients are engaged or contemplate engaging. Confidential Information also
includes all information of which the unauthorized disclosure could be
detrimental to the interests of the Company or Clients, whether or not such
information is identified as Confidential Information by the Company or Clients.
By example and without limitation, Confidential Information includes all
technical and non-technical information including copyright, trade secret and
proprietary information, pricing strategies and models, know-how, processes,
algorithms, software programs, software source documents, and formulas related
to the current, future or proposed products and services of the Company, and
includes, without limitation, the Company's information concerning pricing
strategies, financial information, procurement and purchasing requirements,
business forecasts, and sales and marketing plans and information.

         Notwithstanding the foregoing, Confidential Information shall expressly
exclude any information that (i) was in the public domain at the time it was
communicated to the Employee; (ii) entered into the public domain subsequent to
the time it was communicated to the Employee through no fault of the Employee;
(iii) was in the Employee's possession free of any obligation of confidence at
the time it was communicated to the Employee; (iv) was developed by Employee
independently of and without reference to any information communicated to the
Employee by the Company; (v) disclosure was required by any governmental body,
was otherwise required by law, or was necessary to establish the rights of
either party under this Agreement; or (vi) was developed or conceived by
Employee if furtherance of the objectives of VROOM, Inc. or Transformation
Station, Inc.

                                       12

<PAGE>

         SECTION 2.02. PROTECTION OF CONFIDENTIAL INFORMATION. Employee agrees
that at all times during or after his or her employment, he or she will hold in
trust, keep confidential, and not disclose to any third party or make any use of
the Confidential Information of the Company or Clients except for the benefit of
the Company or Clients and in the course of his or her employment with the
Company. Employee further agrees not to cause the transmission, removal, or
transport of Confidential Information or Innovations from the Company's
principal place of business at 30 North Raymond Avenue, Suite 804, Pasadena,
California, 91103, or such other place of business specified by the Company,
without prior written approval of the President of the Company. Employee
acknowledges that he or she is aware that the unauthorized disclosure of
Confidential Information of the Company or its Clients may be highly prejudicial
to their interests, an invasion of privacy, and an improper disclosure of trade
secrets. Whenever the approval, designation, specification, or other act of the
President of the Company is required under this Agreement, the President may, by
written designation, authorize an agent of the Company to perform such act.

III. NO CONFLICTING RELATIONSHIPS

         Except as disclosed on Schedule A to this Agreement, Employee is not
aware of any other agreements, relationships or commitments to any other person
or entity which conflict with Employee's obligations to Company under this
Agreement. Employee will not disclose to the Company, or use, or induce the
Company to use, any proprietary information or trade secrets of others. Employee
represents and warrants that he or she has returned all property and
confidential information belonging to all prior employers.

IV. ASSIGNMENT OF EMPLOYEE INNOVATIONS

         SECTION 4.01. DISCLOSURE. As of the Effective Time of the Merger,
Employee shall transfer and assign to the Company all of its rights, titles and
interests in and to the eServices Product, SmartDoc, and Smart Date 2000
Products. Thereafter, Employee will promptly disclose in writing to the Company
all further discoveries, developments, designs, ideas, innovations,
improvements, inventions, formulas, processes, techniques, know-how, and data
(whether or not patentable or registerable under copyright or similar statutes)
made, conceived, reduced to practice, or learned by Employee (either alone or
jointly with others) during the period of his or her employment for those
products or others that are related to or useful in the business of the Company,
or which result from tasks assigned to Employee by the Company, or from the use
of premises owned, leased, or otherwise acquired by the Company (all of the
foregoing being hereinafter referred to, collectively, as "Innovations").
Notwithstanding the foregoing, Company acknowledges and agrees that Company
shall have no claim or interest in and to any products developed by Employee in
connection with Employee's activities on behalf of VROOM, Inc. or Transformation
Station, Inc., or that otherwise qualifies under California Labor Code Section
2870, which section is reproduced in the Written Notification to Employee
attached as Schedule C hereto.

                                       13

<PAGE>

         SECTION 4.02. ASSIGNMENT OF INNOVATIONS. Employee acknowledges and
agrees that all such Innovations belong to and shall be the sole property of the
Company and shall be Innovations of the Company subject to the provisions of
this Agreement. Employee hereby assigns to the Company all right, title, and
interest Employee may have or may acquire in and to all Innovations. Employee
agrees to sign and deliver to the Company (either during or subsequent to his or
her employment) such other documents as the Company considers desirable to
evidence (1) the assignment of all rights of Employee, if any, in any
Innovations to the Company and/or (2) the Company's ownership of such
Innovations. Any provision in this Agreement requiring Employee to assign rights
to an Innovation does not apply to any invention that qualifies under California
Labor Code Section 2870, which section is reproduced in the Written Notification
to Employee attached as Schedule C hereto.

         SECTION 4.03. POWER OF ATTORNEY. In the event the Company is unable to
secure Employee's signature on any document necessary to apply for, prosecute,
obtain, or enforce any patent, copyright, or other right or protection relating
to any Innovation, whether due to mental or physical incapacity or any other
cause, Employee hereby irrevocably designates and appoints the Company and each
of its duly authorized officers and agents as his or her agent and
attorney-in-fact, to act for and in his or her behalf and stead to execute and
file any such document and to do all other lawfully permitted acts to further
the prosecution, issuance, and enforcement of patents, copyrights, or other
right or protections with the same force and effect as if executed and delivered
by the Employee.

V. TERMINATION OF EMPLOYMENT

         SECTION 5.01. DELIVERY OF DOCUMENTS AND DATA ON TERMINATION OF
EMPLOYMENT. In the event of termination (voluntary or otherwise) of Employee's
employment with the Company, Employee agrees, promptly and without request, to
deliver to and inform the Company of all documents and data pertaining to his or
her employment and the Confidential Information and Innovations of the Company
or Clients, whether prepared by Employee or otherwise coming into his or her
possession or control, and to sign Schedule B to this Agreement. Employee will
not retain any written or other tangible material containing any information
concerning or disclosing any of the Confidential Information or Innovations of
the Company or Clients. Employee recognizes that the unauthorized taking of any
of the Company's trade secrets is a crime under California Penal Code Section
499c and is punishable by imprisonment in a state prison or in a county jail for
a time not exceeding one year, or by a fine not exceeding Five Thousand Dollars
($5,000), or by both such fine and such imprisonment. Employee further
recognizes that such unauthorized taking of the Company's trade secrets could
also result in civil liability under California Civil Code Section 3426, and
that willful misappropriation may result in an award against Employee for triple
the amount of the Company's damages and the Company's attorneys' fees in
collecting such damages.

                                       14

<PAGE>

         SECTION 5.02. OBLIGATIONS OF EMPLOYEE AFTER TERMINATION OF EMPLOYMENT.
In the event of termination (voluntary or otherwise) of Employee's employment
with the Company, Employee agrees that he or she will protect the value of the
Confidential Information and Innovations of the Company and Clients and will
prevent the misappropriation or disclosure thereof. Employee will not disclose
or use to his or her benefit (or the benefit of any third party) or to the
detriment of the Company or its Clients any Confidential Information or
Innovation. Employee further agrees that for a period of one year immediately
following termination (voluntary or otherwise) of Employee's employment with the
Company, Employee shall not interfere with the business of the Company by
inducing an employee to leave the Company's employ or by inducing a consultant
to sever the consultant's relationship with the Company.

         In addition, each party hereto shall refrain thereafter from uttering
any disparaging remarks or criticisms of the other party or its officers,
directors, shareholders, employees, representatives or agents which might have
the effect of injuring such party or such officers', directors', shareholders',
employees', representatives' or agents' character, reputations, or
profitability, and such party shall be entitled in the case of each such
utterance to liquidated damages in the amount of $10,000. Each party hereto
acknowledges that the liquidated damages specified above approximate the amount
of damages which a party would sustain taking into account, from the nature of
the case, that it would be impracticable or extremely difficult to fix the
actual damages. Each party hereto acknowledges further that such damages are
reasonable under the circumstances existing at the time this Agreement is made
and that this provision for liquidated damages is valid under Section 1671 of
the California Civil Code. Each party's entitlement to liquidated damages as
provided herein is in addition to, and not in lieu of, all its other rights and
remedies available hereunder or under applicable law or in equity.

VI. GENERAL PROVISIONS

         SECTION 6.01. NOTICES. All notices, demands, requests, consents,
approvals or other communications required or permitted to be given hereunder
shall be in writing and may be personally served or may be deposited in the
United States mail, registered or certified, return receipt requested, postage
prepaid, addressed as follows:

                  If to the Company:        Synergy 2000, Inc.
                                            30 North Raymond Avenue, Suite 804
                                            Pasadena, CA   91103
                                            Attention of President.

                  If to the Employee:       Charles R. Cronin, Jr.
                                            1285 Dumaine Avenue
                                            Oak Park, CA   91377

or at such other address as such party shall have specified most recently to the
other party by written notice. Notice mailed as provided herein shall be deemed
given on the date of delivery, as evidenced by the return receipt.

                                       15

<PAGE>

         SECTION 6.02. GOVERNING LAW. This Agreement shall be construed under
the substantive laws of the State of California and without giving effect to
California choice-of-law or conflict-of-law principles. In the event of any
dispute or controversy arising under this Agreement or the transactions
contemplated herein, the parties mutually consent to the jurisdiction of the
state courts of California and the federal district court for the Central
District of California, and agree that any litigation may be served outside of
California with the same force and effect as if service had been made in
California.

         SECTION 6.03. PARTIES IN INTEREST. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns; PROVIDED, HOWEVER, that this Agreement may not be assigned by the
Employee without the prior written consent of the Company; PROVIDED, HOWEVER,
FURTHER, that the Company shall be entitled to assign all its rights and
delegate all its duties hereunder without the consent or any act on the part of
the Employee. In case of such assignment and delegation of duties by the
Company, the Employee hereby agrees to execute any releases and other
certificates, agreements and instruments requested by the Company to effectuate
the release of the Company from any liabilities and obligations hereunder.

         SECTION 6.04. ENTIRE AGREEMENT; AMENDMENT. This Agreement and the
schedules hereto constitutes and contains the entire agreement of the parties
hereto and supersedes any and all prior negotiations, correspondence,
undertakings and agreements between the parties respecting the subject matter
hereof. This Agreement may not be amended or modified, except by written
instrument signed by the party to be bound.

         SECTION 6.05. WAIVER. Neither any failure nor any delay on the part of
the Company or the Employee in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall a single or partial
exercise thereof preclude any other or further exercise or the exercise of any
other right, power or privilege.

         SECTION 6.06. SURVIVAL OF PROVISIONS. In case any one or more of the
provisions or any portion of any provision contained in this Agreement should be
found to be invalid, illegal or unenforceable in any respect, such provision or
portion thereof shall be modified or deleted in such manner so as to afford the
parties the fullest protection commensurate with making this Agreement, as
modified, legal and enforceable under applicable laws, and the validity,
legality and enforceability of any such provision shall not in any way be
affected or impaired thereby, such remaining provisions or portion of any such
provision construed as severable and independent thereof.

         SECTION 6.07. ARBITRATION; ATTORNEYS' FEES. Any dispute or conflict
which arises between the parties hereto may be submitted to the American
Arbitration Association in accordance with its then current Commercial Rules in
Los Angeles County, California, for arbitration and the parties may, if so
mutually agreed upon, be bound by the results of such arbitration in accordance
with the California Code of Civil Procedure Section 1283.05. If either party
brings an action for judicial review or enforcement of the arbitration
proceedings, award or decision, the prevailing party in any such action, trial
or appeal shall be entitled to its reasonable attorneys' fees to be paid by the
nonprevailing party as fixed by the court.

                                       16

<PAGE>

         SECTION 6.08. EMPLOYMENT AT WILL. Employment and compensation can be
terminated, with or without cause, and with or without notice, at any time, at
the option of the Company or the Employee. No provision set forth in this
Agreement shall limit or otherwise alter the foregoing.

         SECTION 6.09. COUNTERPARTS. This Agreement may be executed in two or
more counterparts, but all of which, when taken together, shall constitute one
and the same Agreement.

         IN WITNESS WHEREOF, the Employee and in the case of the Company, by its
duly authorized officer empowered so to act, have duly executed this Agreement,
as of the date first above written.

                  COMPANY:                  SYNERGY 2000, INC.,

                                            By: /s/ Eli Dabich, Jr.
                                                --------------------------------
                                            Its: President

CAUTION: THIS AGREEMENT AFFECTS YOUR RIGHTS TO INNOVATIONS YOU MAKE DURING YOUR
EMPLOYMENT, AND RESTRICTS YOUR RIGHT TO DISCLOSE OR USE THE COMPANY'S
CONFIDENTIAL INFORMATION DURING OR SUBSEQUENT TO YOUR EMPLOYMENT. EMPLOYEE HAS
READ THIS AGREEMENT CAREFULLY AND UNDERSTANDS ITS TERMS. EMPLOYEE HAS COMPLETELY
FILLED OUT SCHEDULE A TO THIS AGREEMENT AND HAS RECEIVED A COPY OF THE WRITTEN
NOTIFICATION TO EMPLOYEE CONTAINING CALIFORNIA LABOR CODE SECTION 2870 ATTACHED
AS SCHEDULE C HERETO.

                  EMPLOYEE:                 /s/ Charles R. Cronin, Jr.
                                            ------------------------------------
                                            CHARLES R. CRONIN, JR.

                                       17

<PAGE>

                                   SCHEDULE A

                             Charles R. Cronin, Jr.
                               1285 Dumaine Avenue
                               Oak Park, CA 91377

                             As of October 16, 2001

Synergy 2000, Inc.
30 North Raymond Avenue, Suite 804
Pasadena, CA 91103 Attention of President.

                  Re:  Employee Statement
                       ------------------

Ladies and Gentlemen::

         In connection with my employment by Synergy 2000, Inc., and its
affiliated companies (collectively, the "Company"), I hereby represent and
warrant as set forth below:

         1. Confidential Information. Except for the transfer and assignment to
the Company of the following products: eServices Product, SmartDoc and Smart
Date 2000, Company agrees that I shall retain ownership in all such other
software and technology products heretofore developed by me or my affiliates,
including without limitation, VROOM, Inc. and Transformation Consulting, Inc.

         2. Prior Inventions. I hereby transfer and assign to the Company all of
my rights, titles and interests in and to the eServices Product, SmartDoc and
Smart Date 2000 intellectual property. Except as set forth in the immediately
preceding sentence, I shall retain sole ownership of all other intellectual
property previously developed by me or my affiliates. Further, the Company shall
not be entitled to any right or claim to any intellectual property developed,
conceived and/or owned by any of VROOM, Inc. and Transformation Consulting, Inc.

         3. Conflicting Relationships. Except as set forth below, I acknowledge
that I have no other current or prior agreements, relationships, or commitments
which conflict with my relationship with the Company under my Confidentiality
and Invention Assignment Agreement (if none, so state): __[specify conflicts]
Infinity Web Systems, Inc., VROOM, Inc., and Transformation Consulting, Inc. .

Dated: As of October 16, 2001.

                                                     /s/ Charles R. Cronin, Jr.
                                                     ---------------------------
                                                     CHARLES R. CRONIN, JR.

                                       1

<PAGE>

                                   SCHEDULE B

                             CHARLES R. CRONIN, JR.
                               1285 Dumaine Avenue
                               Oak Park, CA 91377

Synergy 2000, Inc.
30 North Raymond Avenue, Suite 804
Pasadena, CA 91103 Attention of President.

         Re: Termination Certification
             -------------------------

Ladies and Gentlemen:

         I am writing to certify that I do not have in my possession, nor have I
failed to return, any Confidential Information or copies of such information, or
other documents or materials, equipment, or other property belonging to Synergy
2000, Inc., a Delaware corporation, and its affiliated companies (collectively,
the "Company"), or its Clients.

         I further certify that I have complied with and will continue to comply
with all the terms of the Confidentiality and Invention Assignment Agreement
which I signed, including the reporting of any Innovations (as defined therein)
conceived or made by me which are covered by the Agreement.

         I further agree that, in compliance with the Confidentiality and
Invention Assignment Agreement, I will preserve as confidential and not use any
or all Confidential Information, Innovations, or other information which has or
could have commercial value or other utility in the business in which the
Company or its Clients are engaged or in which they contemplate engaging. I will
not participate in the unauthorized disclosure of information that could be
detrimental to the interests of the Company or its Clients, whether or not such
information is identified as Confidential Information by the Company or its
Clients.

         On termination of my employment with the Company, I will be employed by
__[name of new employer]__ in the _________________ Division and will be working
in connection with the following projects: __[generally describe the
projects]__.

Dated:
                                               -------------------------
                                               CHARLES R. CRONIN, JR.

                                       1

<PAGE>

                                   SCHEDULE C

                               SYNERGY 2000, INC.
                       30 North Raymond Avenue, Suite 804
                               Pasadena, CA 91103
                             As of October 16, 2001

Charles R. Cronin, Jr.
1285 Dumaine Avenue
Oak Park, CA   91377

         Re: Written Notification to Employee
             --------------------------------

Dear Chuck:

         In accordance with California Labor Code Section 2872, you are hereby
notified that your Confidentiality and Invention Assignment Agreement does not
require you to assign to Synergy 2000, Inc., a Delaware corporation, and its
affiliated companies (collectively, the "Company"), any invention for which no
equipment, supplies, facilities, or trade secret information of the Company was
used and which was developed entirely on your own time, and which does not
relate to the business of the Company or to the Company's actual or demonstrably
anticipated research or development, or which does not result from any work
performed by you for the Company. You are hereby provided a copy of California
Labor Code Section 2870:

                  "(a) Any provision in an employment agreement which provides
         that an employee shall assign, or offer to assign, any of his or her
         rights in an invention to his or her employer shall not apply to an
         invention that the employee developed entirely on his or her own time
         without using the employer's equipment, supplies, facilities, or trade
         secret information except for those inventions that either:

                  (1) Relate at the time of conception or reduction to practice
         of the invention to the employer's business, or actual or demonstrably
         anticipated research or development of the employer; or

                  (2) Result from any work performed by the employee for the
         employer.

                  (b) To the extent a provision in an employment agreement
         purports to require an employee to assign an invention otherwise
         excluded from being required to be assigned under subdivision (a), the
         provision is against the public policy of this state and is
         unenforceable."

                  Please acknowledge receipt of this written notification by
signing in the space indicated below.

                                            Very truly yours,

                                            SYNERGY 2000, INC.,

                                            By: /s/ Eli Dabich, Jr.
                                                --------------------------------
                                            Its: President

ACKNOWLEDGED:

/s/ Charles R. Cronin, Jr.
---------------------------------
                [Signature]

Printed Name: Charles R. Cronin, Jr.
              ----------------------
Dated: As of October 16, 2001.<PAGE>

                                                                     EXHIBIT 4.1

                             AMENDED AND RESTATED
                         CERTIFICATE OF INCORPORATION
                                      OF
                           KINDRED HEALTHCARE, INC.

          The undersigned Corporation hereby certifies as follows:

          1.   The name of the corporation is Kindred Healthcare, Inc. (formerly
Vencor, Inc.) (the "Corporation"). The date of filing of its original
certificate of incorporation with the Secretary of State was March 27, 1998
under the name "Vencor Healthcare, Inc."

          2.   This Amended and Restated Certificate of Incorporation amends,
restates and integrates the provisions of the Certificate of Incorporation of
the Corporation as currently in effect. Pursuant to the authority of Section 303
of the General Corporation Law of the State of Delaware, the provisions
contained in this Amended and Restated Certificate of Incorporation are
contained in and authorized by the Fourth Amended Joint Plan of Reorganization
of Vencor, Inc. And Affiliated Debtors Under Chapter 11 Of The Bankruptcy Code,
dated as of December 14, 2000, as modified and confirmed by the Findings of
Fact, Conclusions of Law and Order Under 11 U.S.C. (S)1129 and Rule 3020 of the
Federal Rules of Bankruptcy Procedure Confirming the Fourth Amended Plan of
Reorganization of Vencor, Inc. et al (the "Order"), which Order was signed by
the United States Bankruptcy Court for the District of Delaware (the "Court") on
March 16, 2001 and entered on the docket of the Court on March 19, 2001. The
Court has jurisdiction of the proceedings for the reorganization of the
Corporation under Chapter 11 of the United States Bankruptcy Code, 11 U.S.C.
(S)101 et. seq. A copy of the Order is attached hereto as Exhibit A, and
provides, inter alia, that this Amended and Restated Certificate of
Incorporation be executed on behalf of the Corporation by the undersigned
officer of the Corporation.

          3.   A Certificate of Correction to the Amended and Restated
Certificate of Incorporation filed with the Secretary of State on April 2, 2001
was filed on October 26, 2001. This Amended and Restated Certificate of
Incorporation amends the Amended and Restated Certificate of Incorporation to
integrate the correction set forth in said Certificate of Correction and
therefore amends, restates and integrates the provisions of the Certificate of
Incorporation of the Corporation as currently in effect.

          4.   The text of the Certificate of Incorporation as currently in
effect is hereby amended and restated to read as set forth herein in full:

                              ___________________

          FIRST.  The name of the corporation is Kindred Healthcare, Inc.
(hereinafter referred to as the "Corporation").

          SECOND.  The address of the Corporation's registered office in the
State of Delaware is Corporation Trust Center, 1209 Orange Street in the City of
Wilmington, County of New Castle. The name of its registered agent at such
address is The Corporation Trust Company.
<PAGE>

          THIRD.  The purpose of the Corporation is to engage in any lawful act
or activity for which corporations may be organized under the General
Corporation Law of the State of Delaware.

          FOURTH.  (a) The total number of shares of capital stock which the
Corporation is authorized to issue is 40,000,000, consisting of 39,000,000
shares of Common Stock, par value $0.25 per share, and 1,000,000 shares of
Preferred Stock, par value $0.25 per share.

          (a)  The holders of Common Stock shall be entitled to one vote per
share on all matters to be voted on by the stockholders of the Corporation. In
the event of any voluntary or involuntary liquidation, dissolution or winding up
of the Corporation, holders of Common Stock shall receive a pro rata
distribution of any remaining assets after payment of or provision for all
liabilities and the liquidation preference on Preferred Stock, if any.

          (b)  Subject to the provisions of Article NINTH hereof, shares of
Preferred Stock may be issued in one or more series from time to time by the
Board of Directors, and the Board of Directors is expressly authorized to fix by
resolution or resolutions the designations and the powers, preferences and
rights, and the qualifications, limitations and restrictions thereof, of the
shares of each series of Preferred Stock, including without limitation the
following:

               (i)    the distinctive serial designation of such series which
          shall distinguish it from other series;

               (ii)   the number of shares included in such series, which number
          may be increased or decreased from time to time unless otherwise
          provided by the Board of Directors in the resolution or resolutions
          providing for the issuance of such series;

               (iii)  the rate of dividends (or method of determining such
          dividends) payable to the holders of the shares of such series, any
          conditions upon which such dividends shall be paid and the date or
          dates (or the method for determining the date or dates) upon which
          such dividends shall be payable;

               (iv)   whether dividends on the shares of such series shall be
          cumulative and, in the case of shares of any series having cumulative
          dividend rights, the date or dates (or method of determining the date
          or dates) from which dividends on the shares of such series shall be
          cumulative;

               (v)    the amount or amounts which shall be payable out of the
          assets of the Corporation to the holders of the shares of such series
          upon voluntary or involuntary liquidation, dissolution or winding up
          the Corporation, and the relative rights of priority, if any, of
          payment of the shares of such series;

               (vi)   the price or prices (or the method of determining such
          price or prices) at which, the form of payment of such price or prices
          at which, the period or periods within which and the terms and
          conditions upon which the shares of such series may be redeemed, in
          whole or in part, at the option of the Corporation

                                       2
<PAGE>

          or at the option of the holder or holders thereof or upon the
          happening of a specified event or events;

               (vii)  the obligation, if any, of the Corporation to purchase or
          redeem shares of such series pursuant to a sinking fund or otherwise
          and the price or prices at which, the period or periods within which
          and the terms and conditions upon which the shares of such series
          shall be redeemed or purchased, in whole or in part, pursuant to such
          obligation; and

               (viii) whether or not the shares of such series shall be
          convertible or exchangeable, at any time or times at the option of the
          holder or holders thereof or at the option of the Corporation or upon
          the happening of a specified event or events, into shares of any other
          class or classes or any other series of the same or any other class or
          classes of stock of the Corporation, and the price or prices or rate
          or rates of exchange or conversion and any adjustments applicable
          thereto.

Upon such designation, the Secretary of the Corporation shall cause a
Certificate of Designations setting forth a copy of such resolution and the
number of shares of Preferred Stock as to which the resolution applies to be
executed, acknowledged, filed and recorded in accordance with Section 103 of the
General Corporation Law of the State of Delaware.

          (c)  All shares of the Corporation's common stock, par value $0.25 per
share, and the 17,433 shares of the Corporation's 6% Series A Non-Voting
Convertible Preferred Stock, par value $1.00 per share, in each case issued and
outstanding immediately prior to the filing of this Amended and Restated
Certificate of Incorporation shall be cancelled upon the filing of this Amended
and Restated Certificate of Incorporation and without further action by the
Corporation or the holders thereof.

          FIFTH.  (a) The affairs of the Corporation shall be managed and
conducted by a Board of Directors. The number of Directors of the Corporation
shall be as from time to time fixed by, or in the manner provided in, the Bylaws
of the Corporation; provided, however, that in no event shall the number of
Directors be less than three (3). In the absence of a determination of such
number by the Board of Directors, the number of Directors of the Corporation
shall be seven. The Directors shall be elected at the annual meeting of
stockholders in accordance with the provisions of the Bylaws of the Corporation,
and the election of Directors need not be by written ballot except as and to the
extent provided for therein. A majority of the Directors shall constitute a
quorum for the transaction of business, except that any vacancy on the Board of
Directors, whether created by an increase in the number of directors or
otherwise, may be filled by a majority of Directors then in office, even if less
than a quorum, or by a sole remaining Director.

          (b)  Any Director, or the entire Board of Directors, may be removed
from office with or without cause but only by the affirmative vote of not less
than two-thirds (2/3) of the votes entitled to be cast by the holders of all
outstanding shares of Voting Stock (as defined herein), voting together as one
class. Any Director elected or appointed to fill a vacancy shall hold office
until the next election at the annual meeting of stockholders, and until his or
her successor has been duly elected and qualified or until his or her earlier
resignation or removal.

                                       3
<PAGE>

          SIXTH. The Board of Directors of the Corporation is expressly
authorized to adopt, amend or repeal By-laws of the Corporation by the
affirmative vote of not less than two-thirds (2/3) of the Directors present at
any meeting of the Board, assuming a quorum is present; provided, however, that
                                                        --------  -------
with respect to the number of Directors provided for in Section 2.1 thereof, the
affirmative vote of not less than 80% of all Directors then in office shall be
required. The holders of shares of Voting Stock (as defined herein) shall, to
the extent such power is at the time conferred on them by applicable law, also
have the power to make, alter, amend or repeal the By-laws of the Corporation by
the vote of at least two-thirds (2/3) of the votes entitled to be cast by the
holders of all outstanding shares of Voting Stock, voting together as one class.
The term "Voting Stock" shall mean stock of any class or series of the
Corporation entitled to vote in the election of Directors generally.

          SEVENTH.  [Intentionally omitted.]

          EIGHTH.  (a) The personal liability of the directors of the
Corporation is hereby eliminated to the fullest extent permitted by Section
102(b)(7) of the General Corporation Law of the State of Delaware, as the same
may be amended or supplemented.

          (b)  The Corporation shall, to the full extent permitted by Section
145 of the General Corporation Law of the State of Delaware, as amended from
time to time, indemnify all persons whom it may indemnify pursuant thereto. The
indemnification and advancement of expenses provided by, or granted pursuant to,
this Article EIGHTH shall not be deemed exclusive of any other rights to which
those seeking indemnification or advancement may be entitled under the Bylaws or
any agreement, action of shareholders or disinterested directors or otherwise,
both as to action in their official capacity and as to action in another
capacity while holding such office of the Corporation, shall continue as to a
person who has ceased to be a director or officer of the Corporation, and shall
inure to the benefit of the heirs, executors and administrators of such a
person. Notwithstanding the foregoing, the indemnification obligations of the
Corporation pursuant to this Article EIGHTH shall be limited to (i) officers,
directors, agents and employees who, as of or after September 13, 1999, were or
are employed by the Corporation or serving as directors of the Corporation, and
(ii) agents and employees who were no longer employed by the Corporation as of
September 13, 1999, other than such agents and employees who were officers and
directors of the Corporation prior to September 13, 1999.

          (c)  No amendment, modification or repeal of this Article EIGHTH shall
adversely affect any right or protection of a director or officer of the
Corporation under or pursuant to this Article EIGHTH that exists at the time of
such amendment, modification or repeal. This Article EIGHTH may not be amended,
modified or repealed except by the affirmative vote of not less than two-thirds
(2/3) of the votes entitled to be cast by the holders of all outstanding shares
of Voting Stock, voting together as one class.

          NINTH.  The Corporation shall not be authorized to issue non-voting
capital stock to the extent prohibited by Section 1123(a)(6) of Title 11 of the
United States Code ("Bankruptcy Code"); provided, however, that this Article
NINTH (a) will have no further force and effect beyond that required under
Section 1123 of the Bankruptcy Code, (b) will have only such force and effect,
if any, for so long as such Section is in effect and applicable to the

                                       4
<PAGE>

Corporation, and (c) in all events may be deemed void or eliminated in
accordance with applicable law as from time to time in effect

          TENTH. A. (1) Definitions.  For the purposes of this Article TENTH,
                        -----------
the following terms shall have the following meanings:

          "Adoption Date" shall mean the date on which this Amended and Restated
Certificate of Incorporation is filed with the Secretary of State of the State
of Delaware.

          "Beneficial Ownership" shall mean ownership of Shares by a Person who
would be treated as an owner of such Shares either directly or constructively
through the application of Section 318(a) of the Code, as modified by Section
856(d)(5) of the Code.  The terms "Beneficial Owner,"  "Beneficially Own,"
"Beneficially Owns" and "Beneficially Owned" shall have the correlative
meanings.

          "Beneficiary" shall mean an organization or organizations described in
Sections 170(b)(1)(A) and 170(c) of the Code and identified by the Board of
Directors as the beneficiary or beneficiaries of the Trust.

          "Code" shall mean the Internal Revenue Code of 1986, as amended.

          "Common Stock" shall mean outstanding Common Stock of the Corporation
as may be authorized and issued from time to time pursuant to Article FOURTH and
any Shares convertible into or exchangeable for Common Stock as if such Shares
had been so converted or exchanged.

          "Excess Stock" shall mean Stock resulting from an event described in
Section 3 of this Article TENTH.

          "Existing Holder" shall mean Tenet so long as, but only for so long
as, Ventas provides the Corporation on November 1st and May 1st of each year
(each such date a "Certificate Delivery Date") with a certificate signed by an
executive officer of Ventas certifying that (a) Tenet Beneficially Owns, and has
Beneficially Owned at all times since May 1, 1998, in excess of nine percent
(9.0%), in number of shares or value, of the outstanding Common Stock of Ventas,
or nine and nine-tenths percent (9.9%), in number of shares or value, of the
outstanding shares of any class or series of Preferred Stock of Ventas and (b)
Tenet has the right under the Ventas Certificate of Incorporation to exceed such
Beneficial Ownership limitations without any action on the part of the board of
directors of Ventas (a "Certificate"); provided, however, that if Ventas fails
                                       --------  -------
to deliver such Certificate to the Corporation within 30 days following the
applicable Certificate Delivery Date, then the Corporation shall notify Ventas
in writing of such failure, in which case "Existing Holder" shall continue to
mean Tenet until such Certificate delivery failure shall remain unremedied for a
period of 30 days following the date Ventas receives such written notice.  For
the avoidance of doubt, in the event Ventas fails to deliver a Certificate to
the Corporation within 30 days following written notification from Vencor, Tenet
shall immediately cease to be an "Existing Holder" hereunder.

          "Existing Holder Limit" shall mean (a) with respect to Common Stock,
that number of shares of Common Stock of the Corporation which, when added to
the amount of

                                       5
<PAGE>

Common Stock Beneficially Owned by Ventas, would equal nine and nine-tenths
percent (9.9%), in number of shares or value, of the outstanding Common Stock of
the Corporation, (b) with respect to Preferred Stock, that number of shares of
Preferred Stock of the Corporation which, when added to the amount of Preferred
Stock Beneficially Owned by Ventas, would equal nine and nine-tenths percent
(9.9%), in number of shares or value, of the outstanding shares of any class or
series of Preferred Stock of the Corporation, or (c) with respect to any other
combination of the Common Stock, Preferred Stock and any other equity securities
of the Corporation which, when added to all such securities Beneficially Owned
by Ventas would equal nine and nine-tenths percent (9.9%) of (i) the total
combined voting power of all classes of stock of the Corporation entitled to
vote or (ii) the total value of shares of all classes of stock of the
Corporation.

          "Lessor" shall mean any Person (or an affiliate of any such Person)
that leases real property to the Corporation and has or is an affiliate of an
entity that has elected to be taxed as a REIT under the Code.

          "Market Price" shall mean the last reported sales price reported on
the New York Stock Exchange of Shares of the relevant class on the trading day
immediately preceding the relevant date, or if the Shares of the relevant class
are not then traded on the New York Stock Exchange, the last reported sales
price of Shares of the relevant class on the trading day immediately preceding
the relevant date as reported on any exchange or quotation system over which the
Shares of the relevant class may be traded, or if the Shares of the relevant
class are not then traded over any exchange or quotation system, then the market
price of the Shares of the relevant class on the relevant date as determined in
good faith by the Board of Directors of the Corporation.

          "Person" shall mean an individual, corporation, partnership, limited
liability company, estate, trust (including a trust qualified under Section
401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside
for or to be used exclusively for the purposes described in Section 642(c) of
the Code, association, private foundation within the meaning of Section 509(a)
of the Code, joint stock company or other entity or any government or agency or
political subdivision thereof and also includes a group as that term is used for
purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended.

          "Preferred Stock" shall mean outstanding Preferred Stock of the
Corporation as may be authorized and issued from time to time pursuant to
Article Fourth and any Shares convertible into or exchangeable for Preferred
Stock as if such Shares had been so converted or exchanged.

          "Purported Beneficial Transferee" shall mean, with respect to any
purported Transfer which results in Excess Stock, the purported beneficial
transferee for whom the Purported Record Transferee would have acquired Shares,
if such Transfer had been valid under Section A.(2) of this Article TENTH.

          "Purported Record Transferee" shall mean, with respect to any
purported Transfer which results in Excess Stock, the record holder of the
Shares if such Transfer had been valid under Section A.(2) of this Article
TENTH.

                                       6
<PAGE>

          "REIT" shall mean an entity which has elected to be treated as a real
estate investment trust under Subchapter M of the Code.

          "Shares" shall mean any of the common or preferred shares of the
Corporation as may be authorized and issued from time to time pursuant to
Article Fourth.

          "Tenet" shall mean Tenet Healthcare Corporation and its successors.

          "Transfer" shall mean any sale, transfer, gift, assignment, devise or
other disposition of Shares (including (a) the granting of any option or
entering into any agreement for the sale, transfer or other disposition of
Shares or (b) the sale, transfer, assignment or other disposition of any
securities or rights convertible into or exchangeable for Shares), whether
voluntary or involuntary, whether of record or beneficially and whether by
operation of law or otherwise.

          "Trust" shall mean any trust created by the Corporation as
contemplated by Section B.(1) of this Article TENTH.

          "Trustee" shall mean a Person, who shall be unaffiliated with the
Corporation, any Purported Beneficial Transferee and any Purported Record
Transferee, identified by the Board of Directors of the Corporation as the
trustee of the Trust.

          "Ventas" means Ventas, Inc. and its successors and assigns.

          (2)  Restrictions on Ownership and Transfer.
               --------------------------------------

          (a)  From and after the Adoption Date, the Existing Holder shall not
Beneficially Own Shares in excess of the Existing Holder Limit.

          (b)  From and after the Adoption Date, any Transfer that, if
effective, would result in the Existing Holder Beneficially Owning Shares in
excess of the Existing Holder Limit shall be void ab initio as to the Transfer
                                                  -- ------
of such Shares which would be otherwise Beneficially Owned by the Existing
Holder in excess of the Existing Holder Limit, and the Existing Holder shall
acquire no rights to such Shares.

          (3)  Designation of Excess Stock.
               ---------------------------

          (a)  If, notwithstanding the other provisions contained in this
Article TENTH, at any time from and after the Adoption Date, there is a
purported Transfer such that the Existing Holder would Beneficially Own Shares
in excess of the Existing Holder Limit, then such number of Shares in excess of
such Existing Holder Limit (rounded up to the nearest whole Share) shall be
automatically designated as Excess Stock. Such designation shall be effective as
of the close of business on the business day prior to the date of the purported
Transfer.

          (b)  If, notwithstanding the other provisions contained in this
Article TENTH, at any time from the Adoption Date, the Existing Holder purchases
or otherwise acquires an interest in a Person which Beneficially Owns Shares
(the "Purchase") and, as a result, the Existing Holder would Beneficially Own
Shares in excess of the Existing Holder Limit, then

                                       7
<PAGE>

such number of Shares in excess of such Existing Holder Limit (rounded up to the
nearest whole Share) shall be automatically designated as Excess Stock. Such
designation shall be effective as of the close of business on the business day
prior to the date of the Purchase. In determining which Shares are designated as
Excess Stock, Shares Beneficially Owned by the Existing Holder prior to the
Purchase shall be designated as Excess Stock before any Shares Beneficially
Owned by the Person an interest in which is being so Purchased.

          (c)  If, notwithstanding the other provisions contained in this
Article TENTH, at any time from and after the Adoption Date, there is a
redemption, repurchase, restructuring or other transaction with respect to a
Person that Beneficially Owns Shares (the "Entity") and, as a result, the
Existing Holder would Beneficially Own Shares in excess of the Existing Holder
Limit, then such number of Shares in excess of such Existing Holder Limit
(rounded up to the nearest whole Share) shall be automatically designated as
Excess Stock. Such designation shall be effective as of the close of business on
the business day prior to the date of the transfer. In determining which Shares
are designated as Excess Stock, Shares Beneficially owned by the Entity shall be
designated as Excess Stock before any Shares Beneficially Owned by the Existing
Holder (independently of such Existing Holder's interest in the Entity) are so
designated.

          (d)  If, notwithstanding the other provisions contained in this
Article TENTH, at any time from the Adoption Date, an event, other than an event
described in Section A.(3)(a) through (c) of this Article TENTH, occurs which
would, if effective, result in the Existing Holder Beneficially Owning Shares in
excess of the Existing Holder Limit, then the smallest number of Shares
Beneficially Owned by such Existing Holder which, if designated as Excess Stock,
would result in such Existing Holder's Beneficial Ownership of Shares not being
in excess of such Existing Holder Limit, shall be automatically designated as
Excess Stock. Such designation shall be effective as of the close of business on
the business day prior to the date of the relevant event.

          (4)  Notice of Ownership or Attempted Ownership in Violation of
               ----------------------------------------------------------
Section A.(2).  Any Person who acquires or attempts to acquire Beneficial
-------------
Ownership of Shares in violation of Section A.(2) shall immediately give written
notice to the Corporation of such event.

          (5)  Owners Required to Provide Information.
               --------------------------------------

          From and after the Adoption Date:

          (a)  Tenet shall, within 30 days after January 1 of each year, give
written notice to the Corporation stating the number of Shares Beneficially
Owned, if any, and a description of how such Shares are held.  Furthermore, each
Beneficial Owner shall provide to the Corporation such additional information as
the Corporation may request in order to determine the effect, if any, of such
Beneficial Ownership on the status as a REIT of any Lessor of the Corporation.

          (b)  Each Person who is a Beneficial Owner of Shares and each Person
(including the stockholder of record) who is holding Shares for a Beneficial
Owner shall provide to the Corporation such information as the Corporation may
request, in good faith, in order to determine the effect of such Beneficial
Ownership on the status of any Lessor of the Corporation

                                       8
<PAGE>

as a REIT or any such Lessor's compliance with the regulations promulgated under
the REIT provisions of the Code.

          (c)  Ventas shall provide to the Corporation information as the
Corporation may request, in good faith, regarding (i) the Existing Holder's
Beneficial Ownership of shares of stock in Ventas and (ii) Ventas' Beneficial
Ownership of shares of stock in Vencor.

          (6)  Remedies for Breach.  If the Board of Directors or its designees
               -------------------
shall at any time determine in good faith that a Transfer has taken place in
violation of Section A.(2) of this Article TENTH or that a Person intends to
acquire or has attempted to acquire Beneficial Ownership of any Shares in
violation of Section A.(2) of this Article TENTH, the Board of Directors shall
take such action as it deems necessary to refuse to give effect or to prevent
such Transfer (or any Transfer related to such intent), including but not
limited to refusing to give effect to such Transfer on the books of the
Corporation or instituting proceedings to enjoin such Transfer; provided,
                                                                --------
however, that any Transfers or attempted Transfers in violation of Sections
-------
A.(2)(a) and (b) of this Article TENTH shall automatically result in the
designation of Excess Stock described in Section A.(3) of this Article TENTH,
irrespective of any action (or non-action) by the Board of Directors.

          (7)  Ambiguity.  In the case of an ambiguity in the application of any
               ---------
of the provisions of this Article TENTH, including any definition contained in
Section A.(1) of this Article TENTH and any ambiguity with respect to which
Shares are to be designated as Excess Stock in a given situation, the Board of
Directors shall have the power to determine the application of the provisions of
this Article TENTH with respect to any situation based on the facts known to it.

          B.   Excess Stock.
               ------------

          (1)  Ownership in Trust.  Upon any purported Transfer or other event
               ------------------
that results in the designation of Shares as Excess Stock pursuant to Section
A.(3) of this Article TENTH, such Excess Stock shall be deemed to have been
transferred to the Trustee, as trustee of the Trust for the exclusive benefit of
the Beneficiary.  The Trust shall name a Beneficiary if one does not already
exist, within five days of the discovery of any designation of any Excess Stock;
provided, however, that the failure to so name a Beneficiary shall not affect
--------  -------
the designation of Shares as Excess Stock or the transfer thereof to the
Trustee.  Excess Stock so held in trust shall be issued and outstanding stock of
the Corporation.  The Purported Record Transferee shall have no rights in such
Excess Stock except as provided in Section B.(5) of this Article TENTH.

          (2)  Dividend Rights.  Any dividends (whether taxable as a dividend,
               ---------------
return of capital or otherwise) on Excess Stock shall be paid to the Trust for
the benefit of the Beneficiary.  Upon liquidation, dissolution or winding up,
the Purported Record Transferee shall receive, for each Excess Stock, the lesser
of (a) the amount per share of any distribution made upon liquidation,
dissolution or winding up or (b) the price paid by the Purported Record
Transferee for the Excess Stock, or if the Purported Record Transferee did not
give value for the Excess Stock, the Market Price of the Excess Stock on the day
of the event causing the Excess Stock to be in held in trust.  Any such dividend
paid or distribution paid to the Purported Record Transferee in excess of the
amount provided in the preceding sentence prior to the discovery by

                                       9
<PAGE>

the Trust that the Shares with respect to which the dividend or distribution was
made had been designated as Excess Stock shall be repaid, upon demand, to the
Trust for the benefit of the Beneficiary.

          (3)  Rights Upon Liquidation.  In the event of any voluntary or
               -----------------------
involuntary liquidation, dissolution or winding up of, or any distribution of
the assets of, the Corporation, (a) subject to the preferential rights of the
Preferred Stock, if any, as may be determined by the Board of Directors of the
Corporation and the preferential rights of the Excess Preferred Stock, if any,
the Trust shall be entitled to receive, ratably with each other holder of Common
Stock and Excess Common Stock, that portion of the assets of the Corporation
available for distribution to the holders of Common Stock or Excess Common Stock
which bears the same relation to the total amount of such assets of the
Corporation as the number of Shares of Excess Common Stock held by such holder
bears to the total number of Shares of Common Stock and Excess Common Stock then
outstanding, and (b) each holder of Excess Preferred Stock shall be entitled to
receive that portion of the assets of the Corporation which a holder of the
Preferred Stock that was exchanged for such Excess Preferred Stock would have
been entitled to receive had such Preferred Stock remained outstanding.  The
Trust, as holder of the Excess Stock in trust, shall distribute ratably to the
Beneficiaries of the Trust, when determined, any such assets received in respect
of the Excess Stock in any liquidation, dissolution or winding up of, or any
distribution of the assets of the Corporation.

          (4)  Voting Rights.  The Trustee shall be entitled to vote the Excess
               -------------
Stock on behalf of the Beneficiary on any matter.  Subject to Delaware law, any
vote cast by a Purported Record Transferee with respect to the Excess Stock
prior to the discovery by the Corporation that the Excess Stock was held in
trust will be rescinded ab initio; provided, however, that if the Corporation
                        -- ------  --------  -------
has already taken irreversible action with respect to a merger, reorganization,
sale of all or substantially all of the assets, dissolution of the Corporation
or other action by the Corporation, then the vote cast by the Purported Record
Transferee shall not be rescinded.  The owner of the Excess Stock will be deemed
to have given an irrevocable proxy to the Trustee to vote the Excess Stock for
the benefit of the Beneficiary.

          Notwithstanding the provisions of this Article TENTH, until the
Corporation has received written notification that Excess Stock have been
transferred into a Trust, the Corporation shall be entitled to rely on its share
transfer and other stockholder records for purposes of preparing lists of
stockholders entitled to vote at meetings, determining the validity and
authority of proxies and otherwise conducting votes of stockholders.

          (5)  Restrictions on Transfer.  Excess Stock shall be transferable
               ------------------------
only as provided in this Section B.(5) of Article TENTH. At the direction of the
Board of Directors, the Trustee shall transfer the Shares held in the Trust to a
Person or Persons whose ownership of such Shares will not cause the Existing
Holder to be treated as a Beneficial Owner of any such Shares. If such a
transfer is made to such a Person or Persons, the interest of the Beneficiary
shall terminate and proceeds of the sale shall be payable to the Purported
Record Transferee and to the Beneficiary. The Purported Record Transferee shall
receive the lesser of (a) the price paid by the Purported Record Transferee for
the Shares or, if the Purported Record Transferee did not give value for the
Shares, the Market Price of the Shares on the day of the event causing the
Shares to be held in trust, or (b) the price received by the Trust from the sale
or other disposition

                                       10
<PAGE>

of the Shares. Any proceeds in excess of the amount payable to the Purported
Record Transferee will be paid to the Beneficiary. The Trustee shall be under no
obligation to obtain the highest possible price for the Excess Stock. It is
expressly understood that the Purported Record Transferee may enforce the
provisions of this Section against the Beneficiary.

          C.   Severability.  If any provision of this Article TENTH or any
               ------------
application of any such provision is determined to be invalid by any Federal or
state court having jurisdiction over the issues, the validity of the remaining
provisions shall not be affected and other applications of such provision shall
be affected only to the extent necessary to comply with the determination of
such court.

          D.   New York Stock Exchange Transactions.  Nothing in this Article
               ------------------------------------
TENTH shall preclude the settlement of any transaction entered into through the
facilities of the New York Stock Exchange or other national securities exchange.
The fact that the settlement of any transaction occurs or takes place shall not
negate the effect of any other provision of this Article TENTH and any
transferee in such a transaction shall be subject to all of the provisions and
limitations set forth in this Article TENTH.

          E.   Amendment of Article TENTH.  For so long as there is an Existing
               --------------------------
Holder, this Article TENTH may not be amended, modified or repealed except by
the affirmative vote of not less than ninety-five percent (95%) of each class of
Voting Stock of the Corporation voting separately by class.

          F.   Termination.  The provisions of this Article TENTH shall
               -----------
terminate and be of no further force and effect, automatically and with no
action on the part of the Corporation, the Board of Directors or the
shareholders of the Corporation, on the date on which there are no Existing
Holders.

          G.   Liability.  Neither the Corporation, nor any director, officer,
               ---------
shareholder, employee, agent or representative thereof, shall have any liability
whatsoever to anyone (including, without limitation, Lessor or any director,
officer, shareholder, employee, agent, representative or creditor thereof) for
any acts or omissions, with respect to the terms of this Article TENTH which
acts (or omissions) are taken in good faith in accordance with the provisions of
this Article TENTH.

          H.   Legend.  (1)  Each certificate for Common Stock shall bear the
               ------
following legend:

          "The Common Stock represented by this certificate is subject to
          restrictions on ownership and transfer.  The Existing Holder may not
          Beneficially Own any Common Stock in excess of the Existing Holder
          Limit.  All capitalized terms used in this Legend have the meanings
          set forth in the Amended and Restated Certificate of Incorporation of
          the Corporation, a copy of which, including the restrictions on
          ownership and transfer, will be sent without charge to each
          stockholder who so requests.  If the restrictions on ownership and
          transfer are violated, the Common Stock represented hereby will be
          automatically designated

                                       11
<PAGE>

          as Excess Stock which will be held in trust by the Trustee for the
          benefit of the Beneficiary."

          Instead of the foregoing legend, the certificate may state that the
Corporation will furnish a full statement about certain restrictions on
transferability to a stockholder on request and without charge.

          (2)  Each certificate for Preferred Stock shall bear the following
legend:

          "The Preferred Stock represented by this certificate is subject to
          restrictions on ownership and transfer.  The Existing Holder may not
          Beneficially Own any Preferred Stock in excess of the Existing Holder
          Limit.  All capitalized terms used in this legend have the meanings
          set forth in the Amended and Restated Certificate of Incorporation of
          the Corporation, a copy of which, including the restrictions on
          ownership and transfer, will be sent without charge to each
          stockholder who so requests.  If the restrictions on ownership and
          transfer are violated, the Preferred Stock represented hereby will be
          automatically designated as Excess Stock which will be held in trust
          by the Trustee for the benefit of the Beneficiary."

          Instead of the foregoing legend, the certificate may state that the
Corporation will furnish a full statement about certain restrictions on
transferability to a stockholder on request and without charge.

          ELEVENTH.  The Corporation expressly elects not to be governed by
Section 203 of the General Corporation Law of the State of Delaware.

          TWELFTH.  A.  In the event that the Corporation proposes to redeem,
repurchase or otherwise reacquire Shares or engage in any other transaction the
result of which would increase Ventas' Beneficial Ownership in the Corporation
in excess of nine and ninety-nine hundredths percent (9.99%) (an "Accretive
Transaction"), then:

               1.   The Corporation shall give written notice to Ventas fifteen
          days prior to the consummation of the Accretive Transaction,
          specifying the material terms of the Accretive Transaction, including,
          if applicable, the price per Share to be paid by the Corporation in
          the Accretive Transaction (the "Accretive Transaction Per Share
          Price") and the number and percentage of each class of stock of the
          Corporation to be acquired in the Accretive Transaction.

               2.   Such written notice shall constitute an offer by the
          Corporation to purchase from Ventas, on the date immediately prior to
          the closing of the proposed Accretive Transaction (the "Article
          Twelfth Closing Date"), by wire transfer of immediately available
          funds, a number of Shares, at a price per share equal to the Article
          Twelfth Purchase Price (as defined below), such that after the
          consummation of the proposed Accretive Transaction, Ventas' Beneficial
          Ownership shall not exceed nine and ninety-nine hundredths percent
          (9.99%).  For the avoidance of doubt, Ventas shall not be required to
          accept such offer.

                                       12
<PAGE>

               3.   The "Article Twelfth Purchase Price" shall equal the
          Accretive Transaction Per Share Price; provided, however, that if (x)
                                                 --------  -------
          the number of Shares to be purchased from Ventas pursuant to Section
          A.(2) of this Article TWELFTH exceeds 25,000 and (y) the Accretive
          Transaction giving rise to such repurchase obligation is a non-arm's-
          length transaction (including without limitation a repurchase of
          Shares from employees, officers or directors of the Corporation), then
          the "Article Twelfth Purchase Price" shall equal the greater of (a)
          the Accretive Transaction Per Share Price and (b) either (i) if the
          Shares are admitted for trading on a national securities exchange, the
          average closing price of the Shares for the ten trading days prior to
          the Article Twelfth Closing Date on the principal national securities
          exchange on which the Shares are admitted for trading, or (ii) if the
          Shares are not admitted for trading on a national securities exchange,
          but are admitted for trading on an interdealer quotation system, the
          average closing price of the Shares for the ten trading days prior to
          the Article Twelfth Closing Date on such interdealer quotation system,
          or (iii) if the Shares are not admitted for trading on a national
          securities exchange or on an interdealer quotation system, the fair
          market value as agreed upon in good-faith by Ventas and the
          Corporation.  The Corporation shall make a supplemental payment to
          Ventas in the event that the actual Accretive Transaction Per Share
          Price exceeds the Accretive Transaction Per Share Price used to
          calculate the Article Twelfth Purchase Price.

               4.   If Ventas accepts the Corporation's offer contemplated by
          Section A.(2) of this Article TWELFTH by written notice to the
          Corporation no less than five days prior to the Article Twelfth
          Closing Date, the Shares to be repurchased from Ventas and the cash
          consideration therefor shall be transferred to and held in escrow as
          of the Article Twelfth Closing Date pending consummation of the
          Accretive Transaction.  If the proposed Accretive Transaction is not
          consummated within fifteen days of the Article Twelfth Closing Date,
          and only in such event, then the repurchase of Shares by the
          Corporation from Ventas shall be rescinded and shall be null and void
          ab initio.  In the event the proposed Accretive Transaction is
          consummated within such fifteen day period, the escrow shall be and
          shall be deemed to have been terminated immediately prior to the
          consummation of the Accretive Transaction and the Shares and funds
          shall be and shall be deemed to have been released to the Corporation
          and Ventas at such time, respectively.

     B.   Ventas shall promptly notify the Corporation in writing immediately
upon any change in its Beneficial Ownership in the Corporation. Ventas shall not
purchase or acquire any Shares of the Corporation other than from the
Corporation so as to increase its Beneficial Ownership percentage in the
Corporation to over 5%.

     C.   Any Accretive Transaction that is consummated by the Corporation in
violation of this Article TWELFTH shall be null and void.

                                       13
<PAGE>

     D.   This Article TWELFTH may not be amended, modified or repealed except
by the affirmative vote of not less than ninety-five percent (95%) of each class
of Voting Stock of the Corporation, voting separately as a class.

     E.   Capitalized terms used in this Article TWELFTH but not otherwise
defined shall have the meaning ascribed to them in Article TENTH.  For purposes
of this Article TWELFTH, "Ventas" shall mean Ventas, Inc., its subsidiaries, and
their respective successors and assigns.

                                       14
<PAGE>

     F.   The provisions of this Article TWELFTH shall terminate and be of no
further force and effect, automatically and with no action on the part of the
Corporation, the Board of Directors or the shareholders of the Corporation, on
the date on which Ventas ceases to Beneficially Own any Common Stock.

          IN WITNESS WHEREOF, this Amended and Restated Certificate of
Incorporation has been executed as of the 26th day of October, 2001 on behalf of
the Corporation by Joseph L. Landenwich, its Vice President of Corporate Legal
Affairs and Corporate Secretary, thereby acknowledging under penalties of
perjury that the foregoing Amended and Restated Certificate of Incorporation is
the act and deed of the Corporation and that the facts stated therein are true.

                                   KINDRED HEALTHCARE, INC.

                                   By /s/ Joseph L. Landenwich
                                     -------------------------
                                   Name:  Joseph L. Landenwich
                                   Title: Vice President of Corporate
                                          Legal Affairs and Corporate Secretary

                                       15

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