EMPLOYMENT AGREEMENT

         THIS  AGREEMENT is made and entered  into as of April 19, 1996,  by and
between  COMMUNITY CARE OF AMERICA,  INC., a Delaware  corporation  (hereinafter
referred to as the "Company"), and GARY W. SINGLETON (hereinafter referred to as
the "Employee").

                              W I T N E S S E T H:

         WHEREAS, the Company is engaged in the business of owning and operating
long-term  care skilled  nursing care  facilities  and other health care related
businesses through its subsidiaries and tradenames; and

         WHEREAS,  Company  wishes to employ  Employee,  and Employee  wishes to
accept such employment, on the terms and conditions set forth herein; and

         WHEREAS,  in  the  course  of  his  employment,   and  as  a  necessary
consequence thereof,  Employee will receive information and acquire knowledge of
special procedures,  processes, business conduct, and knowledge that is private,
proprietary, and secret to the Company in its business; and

         WHEREAS,  the  business,  as well as the  success  and  profits  of the
Company,  depend  in large  part  upon the  maintenance  of  secrecy  as to such
information,  processes,  procedures  and  knowledge  as to the  conduct  of the
Company's business generally.

         NOW, THEREFORE,  in consideration of the foregoing premises, the mutual
agreements herein contained,  as well as the agreement to employ the Employee or
to continue to employ the



<PAGE>



Employee under the terms and conditions contained herein, the parties, intending
to be legally bound hereby, agree as follows:

                                    ARTICLE I

                             EMPLOYMENT RELATIONSHIP

         1.1  EMPLOYMENT.  The  Company  hereby  employs the  Employee,  and the
Employee  hereby  accepts  such  employment,  as  Chief  Executive  Officer  and
President of the Company,  with the authority and responsibility,  personally or
through  other  officers  and  employees of the Company  designated  by him, for
directing and supervising the day-to-day operations of the Company. The Employee
shall  report to and be  responsible  directly to the Board of  Directors of the
Company.

         1.2 EXCLUSIVE  EMPLOYMENT.  During the  continuation  of the Employee's
employment by the Company hereunder,  the Employee will, unless the Employee has
first received the prior written  consent of the Company,  devote the Employee's
entire  business  time,  energy,  attention,  and skill to the  services  of the
Company and to the promotion of its  interests,  and covenants  that during such
time the  Employee  will not: (a) engage in, be employed by, be a director of or
be  otherwise  directly or  indirectly  interested  in any  business or activity
competing  with or of a nature  similar to the businesses of the Company (or any
of its  subsidiaries  or  affiliates),  or (b) take  any part in any  activities
detrimental  to the best  interests  of the Company  (and its  subsidiaries  and
affiliates). Notwithstanding the foregoing, the Company shall permit Employee to
act as a consultant for Integrated  Health  Services,  Inc.;  provided that such
consulting work will not interfere with Employee's  duties and obligations under
this Agreement.


                                       -2-


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                                   ARTICLE II

                              PERIOD OF EMPLOYMENT

         2.1 TERM.  The initial term of  employment  under this  Agreement  (the
"Initial Term") shall begin as of the date hereof (the "Commencement Date"), and
shall end on the third  anniversary  of the  Commencement  Date,  unless  sooner
terminated  pursuant to Article IV,  below.  Unless  either party shall give the
other notice of its or his election not to renew this  Agreement at least ninety
(90) days prior to the termination of the Initial Term or any subsequent renewal
term,  as the case may be, the term of this  Agreement  shall  automatically  be
renewed  for the  one-year  period  commencing  on the first day  following  the
termination of the Initial Term or the renewal term then ended,  as the case may
be. The  provisions  of Article V and of Sections 4.3 and 4.6 shall  continue in
effect  in  accordance  with  their  respective   terms,   notwithstanding   any
termination or expiration of this Agreement.

                                   ARTICLE III

                                  COMPENSATION

         3.1  BASE  SALARY.   For  services  rendered  by  Employee  under  this
Agreement,  the  Employee  shall  receive a base  salary at an  initial  rate of
$300,000.00  per year (the "Base  Salary"),  payable in accordance  with the pay
period policy  established by the Company from time to time. On each anniversary
of the  Commencement  Date,  the Base Salary  shall be increased by a percentage
which is equal to the percentage  increase in the "Consumer  Price Index for All
Urban  Consumers -- All Cities"  published by the United  States  Department  of
Labor's  Bureau of Labor  Statistics  for the then most recently  ended 12-month
period as of the date of such adjustment,  and by such additional amounts as may
be determined at the discretion of the Board of Directors.

                                       -3-


<PAGE>



         3.2      BONUSES.

                  (A)  SIGN-ON  BONUS.   Employee   acknowledges   the  receipt,
         concurrently  herewith,  of a bonus in the amount of  $70,000  from the
         Company.  In addition,  the Company shall promptly pay to Employee upon
         execution hereof the sum of $6,110 as reimbursement for certain prepaid
         vacation  expenses  which were  forfeited  by employee by reason of his
         acceptance of this position.

                  (B)  PERFORMANCE  BONUS.  Within one hundred and twenty  (120)
         days of the close of each calendar year  (beginning  with calendar year
         1996),  the  Company  shall pay to the  Employee  a cash  bonus in such
         amount as may be determined at the discretion of the Board of Directors
         but in no event will such bonus  exceed the Base Salary of Employee for
         that calendar year.

                  (C)      SALE OR MERGER OF COMPANY.  In the event of:

                           (I) a sale for  consideration  consisting  solely  of
                  cash and/or debt securities of all or substantially all of the
                  capital stock of the Company pursuant to a single  transaction
                  or a series of related  transactions  to a person  (within the
                  meaning of Section 13(d)(2) of the Securities  Exchange Act of
                  1934, as amended (the "Exchange Act")); or

                           (II)  the  merger  or  consolidation  of the  Company
                  pursuant to which shares of the Company's  stock are converted
                  into the right to receive solely cash and/or debt securities;

then in either such event, Employee shall receive a bonus based upon the present
value of the consideration payable per share of the capital stock of the Company
in respect of such transaction as set forth below: PER SHARE CONSIDERATION BONUS
AMOUNT less than $10.00 no bonus


                                       -4-


<PAGE>



$10.00 - $10.49                                                        $50,000
$10.50 - $10.99                                                        $100,000
$11.00 - $11.49                                                        $150,000
$11.50 - $11.99                                                        $200,000
$12.00 - $12.49                                                        $250,000
$12.50 and above                                                       $300,000

Notwithstanding the foregoing,  the present value of the per share consideration
of the capital stock of the Company shall be  appropriately  adjusted to account
for stock splits, reverse stock splits,

stock dividends and other recapitalizations.

         3.3 STOCK OPTIONS.  As additional  compensation  for the performance by
the Employee of his services hereunder and as soon as practicable  following the
approval  by the  Board of  Directors  of the  Company  of an  amendment  to the
Company's  1995  Stock  Option  Plan to  increase  the  number  of shares of the
Company's common stock for which options under the 1995 Stock Option Plan may be
exercised,  the Employee will be granted  options to purchase  100,000 shares of
common  stock of the Company at a price equal to the lower of $9.50 per share or
the fair market  value of the shares of common  stock of the Company on the date
of grant; provided, that if the shareholders of the Company shall fail to ratify
said  amendment to the 1995 Stock Option Plan at the next annual  meeting of the
shareholders  of the  Company,  then  such  grant  of  options  will  be  deemed
automatically  terminated and to be of no force or effect. Such options shall be
subject to level vesting over a period of three (3) years.

         3.4  ADDITIONAL  BENEFITS.  Separate  and apart  from  Employee's  cash
compensation as set forth above, the Company shall be entitled to:


                                       -5-


<PAGE>



          (a) coverage  under the Company's  standard life and health  insurance
     package for executives;

          (b) a monthly automobile allowance equal to $750;

          (c) participation in the Company's  Supplemental  Employee  Retirement
     Pension Plan;

          (d) a temporary  housing  allowance  in the amount of $3,250 per month
     for such period as shall be  necessary  for  Employee  to arrange  suitable
     housing in the Naples, Florida area, but in any event, such allowance shall
     be provided  for no less than six (6) months and for no more than  eighteen
     (18) months from the date of the execution of this Agreement;

          (e)  reimbursement of reasonable  travel expenses for Employee and his
     wife, from time to time, between Baltimore, Maryland and Naples, Florida;

          (f) reimbursement for reasonable costs of relocating  Employee and his
     wife from Baltimore, Maryland to Naples, Florida in an amount not to exceed
     $50,000,  including any such expenses which were  previously  reimbursed by
     the Company;

          (g) indemnification for any loss arising out of the sale of Employee's
     house in  Baltimore, Maryland; and

          (h) four (4) weeks paid vacation annually.

         In addition to the benefits listed above, Employee shall be entitled to
participate in and receive any other benefits as may be established by the Board
of Directors,  on the same terms and conditions as provided to other  executives
of  the  Company  generally  (including,   but  not  limited  to,  any  deferred
compensation plan, hospital plan or major medical insurance).

                                   ARTICLE IV

                            TERMINATION AND SEVERANCE

         4.1 TERMINATION FOR CAUSE.  Subject to Company's obligation to pay Non-
Competition Severance Pay to the extent provided in Section 4.3(a),  Company may
terminate  this  Agreement  with cause upon the occurrence of any one or more of
the following events:

                                       -6-


<PAGE>



               (A)  Employee  ceases to perform  any of his  material  duties of
          employment or breaches any material provision of this Agreement, which
          event is not corrected within thirty (30) days after written notice is
          delivered  by the Company to the Employee  specifying  said failure or
          breach.  In the event Company and Employee  cannot agree as to whether
          any such duty or  provision  is  material,  and in the event  Employee
          fails to correct the  condition  within  thirty (30) days as set forth
          above,  then  the  parties  shall  submit  the  dispute  (only  as  to
          materiality)  only to arbitration for determination in accordance with
          the  rules  of  the  American   Arbitration   Association   under  the
          jurisdiction  of the  regional  headquarters  in or closest to Naples,
          Florida as follows:

                    (I) Each party shall select one (1) arbitrator,  and the two
               (2) so  designated  shall  select a third  arbitrator.  If either
               party shall fail to designate an arbitrator within seven (7) days
               after  arbitration is requested then the one selected  arbitrator
               shall conduct the proceeding.  If the two (2)  arbitrators  shall
               fail to select a third arbitrator within fourteen (14) days after
               arbitration is requested, then an arbitrator shall be selected by
               the American  Arbitration  Association upon application of either
               party.  Arbitration  proceedings shall be conducted in accordance
               with  the  rules  then  prevailing  of the  American  Arbitration
               Association.  Judgment upon an award of a sole arbitrator,  or if
               there shall be three  arbitrators,  upon an award of the majority
               of the  arbitrators  shall be binding,  and shall be entered in a
               court of  competent  jurisdiction  as a finding of that court for
               purposes of adjudication  of the disputes  between the parties on
               the issue of materiality.

                    (II) After expiration of the thirty (30) day cure period set
               forth  above,  the Company may treat the  Employee as  terminated
               during the arbitration  period subject to full reinstatement with
               full back-pay and  compensation as provided for in this Agreement
               in the event the judgment of the  arbitrators  is in favor of the
               Employee and against the Company.

          (B)  Employee   commits  a  felony  or  commits   theft,   larceny  or
     embezzlement of Company's tangible or intangible property; or

          (C)  Employee  becomes  disabled  or is unable to  perform  his normal
     duties,  which condition persists for a period of ninety (90) days or more,
     and Company has provided  Employee with  disability  insurance  which shall
     begin to pay after said ninety  (90) day period  expires.  4.2  TERMINATION
     WITHOUT CAUSE. Subject to the Company's obligation to pay Non-

Competition Severance Pay to the extent provided in Section 4.3(b),  Company may
terminate this Agreement at any time without cause.


                                       -7-


<PAGE>



         4.3      SEVERANCE PAY.

                  (A) In the event  that this  Agreement  is  terminated  by the
         Company  at any time for  cause,  the  Company  shall  pay to  Employee
         non-competition  severance pay of Employee's Base Salary and additional
         benefits   described   in   this   Agreement   on   a   monthly   basis
         ("Non-Competition Severance Pay") for a period of eighteen (18) months;
         provided,  however,  that while  Employee is receiving  Non-Competition
         Severance  Pay,   Employee  shall  be  bound  by  the   non-competition
         restrictions of Section 5.2.

                  (B) In the event that this Agreement is terminated at any time
         by  the  Company   without   cause,   Company  shall  pay  to  Employee
         Non-Competition  Severance Pay for a period of twenty-four  (24) months
         as liquidated damages. In addition,  upon a termination of the Employee
         by the Company at any time without  cause,  all stock options then held
         by the  Employee  will  automatically  become fully vested and Employee
         shall be bound  by the  non-competition  restrictions  of  Section  5.2
         during the  applicable  period that Non-  Competition  Severance Pay is
         being received by Employee.

                  (C) In the event that this Agreement is terminated at any time
         by the Employee due to a Change of Control in  accordance  with Section
         4.4, the Company  shall pay to Employee  non-competition  severance pay
         for a period  of  thirty-six  (36)  months;  provided,  however,  while
         Employee is receiving  Non-Competition Severance Pay, Employee shall be
         bound by the non-competition  restrictions of Section 5.2. In addition,
         upon a termination of this Agreement pursuant to Section 4.4, all stock
         options  then held by the  Employee  will  automatically  become  fully
         vested.

                                       -8-


<PAGE>



         4.4      CHANGE OF CONTROL.

                  (A) In the event of a Change of Control of the Company  should
         occur  during  the term of the  Employee's  employment  hereunder,  the
         Employee  shall  have the right,  upon the giving of thirty  (30) days'
         notice to the Company  within one hundred  eighty (180) days  following
         such event,  to terminate  his  employment  under this  Agreement.  For
         purposes of this Agreement,  a "Change of Control of the Company" shall
         be  deemed  to  occur  if  (i)  there  shall  be  consummated  (x)  any
         consolidation  or merger of the Company in which the Company is not the
         continuing or surviving  corporation other than a merger of the Company
         in which the holders of the Company's Common Stock immediately prior to
         the merger have the same proportionate ownership of common stock of the
         surviving  corporation  immediately  after the merger, or (y) any sale,
         lease,  exchange or other  transfer (in one  transaction or a series of
         related  transactions) of all, or  substantially  all, of the assets of
         the Company,  or (ii) the stockholders of the Company shall approve any
         plan or proposal for  liquidation  or  dissolution  of the Company,  or
         (iii) any person (as such term is used in Sections  13(d) and  14(d)(2)
         of the Exchange Act), other than Robert N. Elkins or any  institutional
         investor, shall become the beneficial owner (within the meaning of Rule
         13d-3  under  the  Exchange  Act)  of 20%  or  more  of  the  Company's
         outstanding  Common Stock, or (iv) Robert N. Elkins shall cease to be a
         director of the Company.

                  (B)  Notwithstanding  anything  herein  to the  contrary,  the
         present  value of the payments and benefits to Employee,  whether under
         this Agreement or otherwise, which are includable in the computation of
         "parachute  payments"  (as  defined  in  Section  280G of the  Internal
         Revenue Code) shall not exceed 2.99 times the  Employee's  base amount,
         all within the meaning and as computed  under Section 280G of the Code.
         Such determination

                                       -9-


<PAGE>



         shall be made by  the regular independent  accountants  retained by the
         Company   immediately   prior  to   the   Change  of   Control,   whose
         determination shall be conclusive and binding on the parties.

         4.5 DEATH OF THE  EMPLOYEE.  In the event of the death of the  Employee
during the term of his  employment  hereunder,  this Agreement  shall  terminate
immediately  and the  Employee's  estate shall  thereupon be entitled to receive
such portion of the Employee's  Base Salary as has been accrued through the date
of his death.

         4.6  CONTINUATION  OF BENEFITS.  Whenever  under the provisions of this
Article IV the Employee shall be entitled to receive a continuation  of his Base
Salary  for a period  of time  following  a  termination  or  nonrenewal  of his
employment  under  this  Agreement,  it is agreed  that the  Company  also shall
continue to pay for or provide  during such  period of salary  continuation  any
hospital plan or major medical insurance and the automobile  allowance  provided
for in subparagraph (b) of Paragraph 3.4 of this Agreement.

                                    ARTICLE V

                            COVENANTS OF THE EMPLOYEE

         5.1  CONFIDENTIAL  INFORMATION.  In connection  with  employment at the
Company,  Employee will have access to  confidential  information  consisting of
some or all of the  following  categories of  information.  Company and Employee
consider their relation one of confidence with respect to such information:

                  (A)  FINANCIAL  INFORMATION,  including  but  not  limited  to
         information relating to the Company's earnings,  assets, debts, prices,
         pricing structure, volume of purchases or sales or other financial data
         whether related to the Company or generally, or to particular products,
         services, geographic areas, or time periods;

                                      -10-


<PAGE>



                  (B) SUPPLY AND SERVICE INFORMATION,  including but not limited
         to  information  relating to goods and  services,  suppliers'  names or
         addresses,  terms of  supply  or  service  contracts  or of  particular
         transactions,  or related  information about potential suppliers to the
         extent that such information is not generally known to the public,  and
         the extent that the  combination  of  suppliers  or use of a particular
         supplier, though generally known or available, yields advantages to the
         Company details of which are not generally known;

                  (C)  MARKETING  INFORMATION,  including  but  not  limited  to
         information  relating to details  about  ongoing or proposed  marketing
         programs or agreements by or on behalf of the Company, sales forecasts,
         advertising  formats  and  methods or results of  marketing  efforts or
         information about impending transactions;

                  (D)  PERSONNEL  INFORMATION,  including  but  not  limited  to
         information  relating to any  employee's  personal or medical  history,
         compensation   or  other  terms  of   employment   actual  or  proposed
         promotions,  hirings, resignations,  disciplinary actions, terminations
         or reasons therefor,  training methods,  performance, or other employee
         information; and

                  (E)  CUSTOMER  INFORMATION,   including  but  not  limited  to
         information relating to past, existing or prospective customers' names,
         addresses or backgrounds,  records of agreements and prices,  proposals
         or agreements  between customers and the Company,  status of customers'
         accounts or credit, or related  information about actual or prospective
         customers as well as customer lists.

         All of the foregoing are  hereinafter  referred to as "Trade  Secrets."
During and after the  employment by the Company,  regardless of the reasons that
such employment ends, Employee agrees:

                  (AA) To hold all Trade Secrets in confidence  and not discuss,
         communicate or transmit to others,  or make any unauthorized copy of or
         use the Trade Secrets in any capacity,  position or business  except as
         it directly relates to Employee's employment by the Company;

                  (BB)  To use the  Trade Secrets  only in furtherance of proper
         employment related  reasons of the  Company to further the interests of
         the Company;

                  (CC)  To  take  all  reasonable  actions  that  Company  deems
         necessary or appropriate,  to prevent unauthorized use or disclosure of
         or to protect the Company's interest in the Trade Secrets; and


                                      -11-


<PAGE>



                  (DD)  That  any of the  Trade  Secrets,  whether  prepared  by
         Employee or which may come into Employee's possession during Employee's
         employment  hereunder,  are and remain the  property of the Company and
         its affiliates,  and all such Trade Secrets,  including copies thereof,
         together  with all  other  property  belonging  to the  Company  or its
         affiliates, or used in their respective businesses,  shall be delivered
         to or left  with the  Company.  This  Agreement  does not  apply to (i)
         information that by means other than Employee's

deliberate or inadvertent  disclosure becomes generally known to the public; and
(ii)  disclosure  compelled  by judicial  or  administrative  proceedings  after
Employee  diligently  tries to avoid each disclosure and affords the Company the
opportunity  to  obtain  assurance  that  compelled   disclosures  will  receive
confidential treatment.

         5.2  NON-COMPETITION.  In  consideration  of the Employee's  employment
hereunder,  the Employee hereby agrees that, without the express written consent
of the  Company,  during  the  applicable  period set forth in Article IV hereof
following a termination or nonrenewal of this Agreement,  the Employee will not,
directly or indirectly, for the Employee or on behalf of any other person, firm,
entity or other  enterprise  (a) hire,  or  directly or  indirectly  solicit for
employment  or  recommend  to  any  subsequent  employer  of  the  Employee  the
solicitation  for  employment  of, any person who, at the time of such hiring or
solicitation is, or during the prior three months was, employed by Company,  (b)
directly or indirectly solicit,  divert, or endeavor to entice away any customer
of the Company,  or  otherwise  engage in any  activity  intended to  terminate,
disrupt,  or  interfere  with the  Company's  relationship  with  any  customer,
supplier, lessor or other person, or (c) be employed by, be a director,  officer
or manager of, act as a consultant  for (other than as permitted  under  Section
1.2),  be a partner in,  have a  proprietary  interest  in, give advice to, loan
money to or otherwise associate with, any person, enterprise,

 
                                      -12-


<PAGE>



partnership,  association,  corporation,  joint venture or other entity which is
directly in the business of owning,  operating  or managing  any facility  which
competes  with any such type of  facility  then  operated by the  Company.  This
provision shall not be construed to prohibit the Employee from owning up to five
(5%)  percent of the issued  shares of any company  whose common stock is listed
for trading on any national securities exchange or on the NASDAQ System.

         5.3 REMEDIES FOR BREACH.  The Employee  acknowledges that the covenants
contained in Article V of this Agreement are independent  covenants and that any
failure by the Company to perform its  obligations  under this Agreement  (other
than the act of nonpayment  which is not cured by the Company within thirty (30)
days of the receipt of written notice of said condition from the Employee) shall
not be a defense  to  enforcement  of the  covenants  contained  in  Article  V,
including but not limited to a temporary or permanent  injunction.  The Employee
acknowledges  that damages in the event of  Employee's  breach of this Article V
will be difficult,  if not impossible,  to ascertain and it is therefore  agreed
that the Company, in addition to, and without limiting any other remedy or right
it may have,  shall have the right to an  injunction  enjoining the said breach.
Notwithstanding  anything to the contrary  contained in this  Agreement,  and in
addition  to any other  remedy  available  to the Company at law or in equity or
otherwise,   the  Company's  obligation  to  make  payments  of  Non-Competition
Severance  Payments  shall cease if Employee shall violate any provision of this
Article V and such violation shall continue  uncured for a period of thirty (30)
or more days.

         5.4  AFFILIATES.  For  purposes of this  Article V, the term  "Company"
shall  be  deemed  to  include  each of the  Company's  subsidiaries  and  other
affiliates.

                                      -13-


<PAGE>



                                   ARTICLE VI

                                   ASSIGNMENT

         6.1 PROHIBITION OF EMPLOYMENT ASSIGNMENT. The Employee agrees on behalf
of  the   Employee   and  the   Employee's   heirs   and   executors,   personal
representatives,  and any other person or persons claiming any benefit under the
Employee  by  virtue of this  Agreement,  that this  Agreement  and the  rights,
interests, and benefits hereunder shall not be assigned, transferred, pledged or
hypothecated in any way by the Employee or the Employee's  heirs,  executors and
personal representatives,  and shall not be subject to execution,  attachment or
similar  process.  Any  attempt  to assign,  transfer,  pledge,  hypothecate  or
otherwise  dispose of this Agreement or any such rights,  interests and benefits
thereunder contrary to the foregoing provision, or the levy of any attachment or
similar  process  thereupon  shall be null and void and without effect and shall
relieve the Company of any and all liability hereunder.

         6.2 RIGHT OF COMPANY TO ASSIGN.  This Agreement shall be assignable and
transferable   by  the  Company  to  Company's   transferee,   assignee  or  any
successor-in-interest,  parent,  subsidiary  or affiliate of Company,  and shall
inure to the benefit of and be binding upon the Employee,  the Employee's  heirs
and personal  representatives,  and the Company and its  successors and assigns.
Employee agrees to execute all documents necessary to ratify and effectuate such
assignment. An assignment of this Agreement by the Company shall not release the
Company from its monetary and stock obligations under this Agreement.

                                      -14-


<PAGE>



                                   ARTICLE VII

                                     GENERAL

         7.1 GOVERNING LAW. This  Agreement  shall be subject to and governed by
the laws of the State of Florida, irrespective of the fact that the Employee may
be or become a resident of a different state.

         7.2 BINDING  EFFECT.  This Agreement shall be binding upon and inure to
the benefit of the Company and the Employee and their  respective  heirs,  legal
representatives, executors, administrators, successors and permitted assigns.

         7.3 ENTIRE AGREEMENT.  This Agreement  constitutes the entire Agreement
between the parties and contains all of the agreements  between the parties with
respect to the subject  matter  hereof;  this  Agreement  supersedes any and all
other  agreements,  either oral or in writing,  between the parties  hereto with
respect to the subject hereof. No change or modification of this Agreement shall
be valid  unless the same be in writing and signed by both  parties  hereto.  No
waiver of any provisions of this Agreement  shall be valid unless in writing and
signed by the person or party to be charged.

         7.4  SEVERABILITY.  If any portion of this  Agreement  shall be for any
reason,  invalid or  unenforceable,  the  remaining  portion or  portions  shall
nevertheless  be valid,  enforceable  and carried into  effect,  unless to do so
would  clearly  violate the  present  legal and valid  intention  of the parties
hereto.

         7.5 NOTICES. All notices,  demands,  requests,  consents,  approvals or
other  communications  required or permitted  hereunder  shall be in writing and
shall be delivered by hand,  registered  or certified  mail with return  receipt
requested or by a nationally recognized


                                      -15-


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overnight  delivery  service,  in each case with all  postage or other  delivery
charges  prepaid,  and to the  address  of the party to whom it is  directed  as
indicated  below,  or to such other  address as such party may specify by giving
notice to the other in accordance  with the terms hereof.  Any such notice shall
be  deemed  to be  received  (a) when  delivered,  if by  hand,  (b) on the next
business day following  timely  deposit with a nationally  recognized  overnight
delivery  service or (c) on the date shown on the return  receipt as received or
refused or on the date the postal  authorities  state  that  delivery  cannot be
accomplished, if sent by registered of certified mail, return receipt requested.
IF TO THE COMPANY: Community Care of America, Inc.

                                    3050 North Horseshoe Drive, Suite 260
                                    Naples, FL  33942
                                    Attention: Chairman of the Board

WITH A COPY TO:                     Blass & Driggs

                                    461 Fifth Avenue
                                    New York, NY 10017
                                    Attention: Michael S. Blass

IF TO THE EMPLOYEE:                 Gary W. Singleton

         IN WITNESS WHEREOF,  the Company has caused this Agreement to be signed
by its duly  authorized  officer and its corporate seal to be hereunto  affixed,
and the  Employee has  hereunto  set  Employee's  hand on the day and year first
above written.



COMPANY                                       EMPLOYEE

COMMUNITY CARE OF AMERICA, INC.

By:  /s/ David H. Fater                        /s/ Gary W. Singleton
     -------------------------------          ---------------------------------
         David H. Fater,                       Gary W. Singleton
         Executive Vice President


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