EXHIBIT 9 Amendment No. 1 to Agreement and Plan of Merger AMENDMENT NO. 1, dated as of February 28, 1997 (this "Amendment"), to the Agreement and Plan of Merger, dated as of February 9, 1997 (the "Merger Agreement"), by and between TheraTx, Incorporated, a Delaware corporation (the "Company"), Vencor, Inc., a Delaware corporation ("Purchaser") and Peach Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of Purchaser ("Merger Sub"). W I T N E S S E T H: WHEREAS, the Company, Purchaser and Merger Sub desire to amend the Merger Agreement as set forth herein; and WHEREAS, Section 10.3 of the Merger Agreement provides that, at any time prior to the Effective Time, the Company, Purchaser and Merger Sub may amend the Merger Agreement, by written agreement executed and delivered by duly authorized officers of the Company, Purchaser and Merger Sub, respectively; NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties hereto agree as follows: ARTICLE I Amendment to the Merger Agreement 2.1 Stock Plans and Options. Section 7.8 of the Merger Agreement is hereby amended by deleting the current text thereof in its entirety and inserting in lieu thereof the following: 7.8. Stock Plans and Options. (a) Except as provided in Section 7.8(b), at the Effective Time, each outstanding option to purchase Shares under the Stock Plans, other than any option granted under the Company's Employee Stock Purchase Plan (collectively, the "Options"), whether vested or unvested, shall be converted into an option to acquire, on the same terms and conditions as were applicable under such Option, the number of shares of Common Stock, par value $0.25 per share of Purchaser (the "Purchaser Common Stock") equal to (a) the number of Shares subject to the Option, multiplied by (b) (i) the Merger Consideration, divided by (ii) the average of the high and low price of Purchaser Common Stock on the trading day immediately preceding the date of the Effective Time as reported in the New York City edition of The Wall Street Journal (rounded down to the nearest whole number) (a "Replacement Option"), at an exercise price per share (rounded up to the nearest whole cent) equal to (y) the aggregate exercise price for the Shares which were purchasable pursuant to such Option divided by (z) the number of full shares of Purchaser Common Stock subject to such Replacement Option in accordance with the foregoing. At or prior to the Effective Time, the Company shall take all action necessary with respect to the Stock Plans to permit the replacement of the outstanding Options by Purchaser pursuant to this Section 7.8(a) and as soon as practicable after the Effective Time Purchaser shall use its reasonable best efforts to register under the Securities Act on Form S-8 or other appropriate form (and use its reasonable best efforts to maintain the effectiveness thereof) shares of Purchaser Common Stock issuable pursuant to all Replacement Options. The Company shall take all action necessary, including obtaining any required consents from optionees, to provide that following the Effective Time no participant in any Stock Plan or other plans, programs or arrangements shall have any right thereunder to acquire equity securities of the Company, the Surviving Corporation or any subsidiary thereof and to permit Purchaser to assume the Stock Plans (other than the Company's Employee Stock Purchase Plan, with respect to which the Company shall take all action necessary to terminate such plan immediately prior to the Effective Time). The Company shall further take all action necessary to amend the Stock Plans, to eliminate automatic grants or awards thereunder following the Effective Time. At the Effective Time, Purchaser shall assume the Stock Plans (other than the Company's Employee Stock Purchase Plan); provided, that such assumption shall be only in respect of the Replacement Options and that Purchaser shall have no obligation with respect to any awards under the Stock Plans other than the Replacement Options or to make any additional grants or awards under such assumed Stock Plans. (b) At the Effective Time, each then outstanding Option held by (i) John A. Bardis, Bret W. Jorgensen, Donald R. Myll, Louis E. Hallman, III, Laura E. Cayce, Jonathan H. Glenn, Craig R. Reamsnyder and B. Wayne Clark, (ii) any individual in respect of whom the total number of Shares subject to all Options held by such individual does not exceed 1,500 as of the Effective Time, or (iii) any other individuals who the Company and Purchaser mutually agree shall have their Options treated in accordance with the terms of this Section 7.8(b), whether vested or unvested, shall be canceled and the holder thereof shall be entitled to receive an amount of cash equal to the product of (x) the amount, if any, by which the Merger Consideration exceeds the exercise price per Share subject to such Option (whether vested or unvested) and (y) the number of Shares issuable pursuant to the unexercised portion of such Option, less any required withholding of taxes (such amount being hereinafter referred to as the "Option Consideration"). The Option Consideration shall be paid as soon as practicable following the Effective Time, but in any event within five (5) days following the Effective Time. Prior to the Effective Time, the Company shall take such actions as may be necessary to effectuate the foregoing, including without limitation obtaining all applicable consents. The cancellation of an Option in exchange for the Option Consideration shall be deemed a release of any and all rights the holder had or may have had in respect of such Option, and any required consents received from Option holders shall so provide. ARTICLE II Miscellaneous 2.2 Definitions. Capitalized terms used in this Amendment and not defined herein shall have the meanings ascribed to such terms in the Merger Agreement. 2.3 Entire Agreement; Restatement. Other than as amended by Section 1.1 above, the Merger Agreement shall remain in full force and effect unaffected hereby. The Merger Agreement, as amended by this Amendment, is hereinafter referred to as the "Merger Agreement", and the parties hereto hereby agree that the Merger Agreement may be restated to reflect the amendments provided for in this Amendment. 2.4 Governing Law. THIS AMENDMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE. 2.5 Counterparts. For the convenience of the parties hereto, this Amendment may be executed in any number of counterparts, each such counterpart being deemed to be an original instrument and all such counterparts shall together constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed or caused this Amendment to be executed as of the date first written above. THERATX, INCORPORATED By: /s/ Jonathan H. Glenn Name: Jonathan H. Glenn Title: Vice President, General Counsel and Secretary VENCOR, INC. By: /s/ James L. Gillenwater, Jr. Name: James L. Gillenwater, Jr. Title: Senior Vice President PEACH ACQUISITION CORP. By: /s/ James L. Gillenwater, Jr. Name: James L. Gillenwater, Jr. Title: Senior Vice President