Document:

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                                                                   EXHIBIT 10.20

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT ("Agreement"), effective as of
___________(date) between HEALTH CARE AND RETIREMENT CORPORATION OF AMERICA, an
Ohio corporation (the "Company") and _________________ ("Employee"), supersedes
and replaces all prior employment agreements between the parties hereto.

                                    RECITALS

         A. The Company has agreed to employ Employee in the position and at the
base rate of pay set forth on Schedule I in accordance with the provisions
hereof.

         B. The Company has further agreed to provide severance benefits to
Employee upon a termination of Employee's employment resulting from certain
specified events.

         C. The Company has further agreed to provide pension benefits under the
Senior Executive Retirement Plan ("SERP") and to adopt and implement a
Supplemental Offset Plan which will provide funding for the SERP.

         D. The Company has further agreed to adopt and implement the Corporate
Officer and Senior Executive Life Insurance Program which provides enhanced life
insurance benefits for the Employee both during employment and after retirement.

                                     EVENTS

         In consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged,
Employee and the Company hereby agree as follows:

                  1.       SALARY AND POSITION. The base rate of pay and job
title shown on Schedule I are correct and in accordance with Employee's
understanding. The Employee shall be entitled to participate in the benefit
programs referenced on Schedule II hereof to the extent determined by the
President of the Company.

                  2.       AT-WILL EMPLOYMENT. Employee's employment with the
Company is not for any specified term and may be terminated by Employee or by
the Company at any time for any reason, with or without cause.

                  3.       NO OTHER AGREEMENTS. Except as specifically set forth
herein and in the benefit plans (and agreements entered into pursuant to such
plans) identified on Schedule II in which Employee is participating or may
participate in the future, Employee represents and warrants that there are no
other written or oral agreements, understandings or commitments relating to
Employee's future employment, work assignments, compensation (including
compensation upon termination), benefits, or any other term or condition of
employment.

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                  4.       ENTIRE AGREEMENT. This Agreement and the agreements
which have been or may be entered into pursuant to the benefit plans identified
or referenced in Schedule II hereto constitute the complete agreement between
Employee and the Company regarding any and all aspects of their employment
relationship and supersede any and all prior written or oral agreements,
understandings or commitments. Employee understands that no representative of
the Company has been authorized to enter into any agreement, understanding or
commitment with Employee which is inconsistent in any way with the terms of this
Agreement.

                  5.       PROHIBITION AGAINST AMENDMENT. Employee's base salary
may be modified by the Company at any time in its sole discretion. The
retirement and other benefit plans set forth on Schedule II may be improved,
reduced or terminated by the Company at any time in its sole discretion;
provided, however, that no vested or accrued benefit shall be adversely
affected. All other terms set forth in this Agreement, including without
limitation the terms set forth in paragraph 2 hereof, may not be modified in any
way except by a written agreement signed by Employee and by an authorized
representative of the Company which expressly states the intention of the
parties to modify the terms of this Agreement.

                  6.       SEVERANCE PAYMENT.

                  (a)      Upon the termination of Employee's employment as a
result of Employee's electing to resign his employment or to retire without the
consent of the Company, no payments shall be required or made pursuant to this
paragraph 6.

                  (b)      Upon the termination of Employee's employment by the
Company for "Cause", no payments shall be required or made pursuant to this
paragraph 6. "Cause" shall mean Employee's financial dishonesty, fraud in the
performance of his duties, willful failure to perform assigned duties hereunder
or the commission of a felony.

                  (c)      Upon the termination of Employee's employment by the
Company for any reason other than for Cause or disability, the Company shall
continue payment of Employee's annual base salary, at the rate then in effect
on the date of such termination, for a period of one year after such date of
termination. The Company shall give thirty (30) days written notice of any such
termination which notice shall specify the date of termination.

                  (d)      Upon the termination of Employee's employment as a
result of the death of Employee, the Company shall continue payment of
Employee's annual base salary, at the rate then in effect on the date of such
termination, for a period of one year after such date of termination; provided,
however, that such payments shall be offset by any survivor benefits, excluding
life insurance proceeds, received by Employee's spouse or other designated
beneficiary under the Company's plans, programs and policies.

                  (e)      Upon the termination of Employee's employment as a
result of his becoming unable to perform his duties due to a disability as
established by the award of long-term disability benefits under the Company's
long-term disability plan, the Company may terminate Employee's employment by
giving Employee thirty (30) days written notice of its intention to terminate.
In such event, Company shall continue payment of the Employee's annual base
salary, at the rate then in effect

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on the date of such termination, for a period of one year after such date of
termination; provided, however, that such payments shall be offset by any
disability benefits received by Employee, or his legal guardian, under the
Company's plans, programs and policies.

                  (f)      Notwithstanding anything to the contrary contained
herein, upon the termination of Employee's employment for any reason,
voluntarily or involuntarily, with or without Cause, Employee shall be entitled
to the payments provided for hereunder and such rights as he otherwise has under
the Company's Restricted Stock Plan and the Company's Stock Option Plan, each as
amended from time to time, in the circumstances of his particular termination.

                  7.       NON-COMPETITION/NON-SOLICITATION.

                  (a)      Covenant Not to Compete. The Employee covenants and
agrees that during the period of the Employee's employment hereunder and for a
period of one (1) year following the termination of the Employee's employment,
including without limitation termination by the Company for cause or without
cause, the Employee shall not, in the United States of America, engage, directly
or indirectly, whether as principal or as agent, officer, director, employee,
consultant, shareholder or otherwise, alone or in association with any other
person, corporation or other entity, in any Competing Business. For purposes of
this Agreement, the term "Competing Business" shall mean any person, corporation
or other entity engaged in the United States of America in providing long-term
care, skilled nursing or rehabilitative services or selling or attempting to
sell or providing or attempting to provide any other product or service which is
the same as or similar to products or services sold or provided by the Company
within the last 2 years prior to termination of the Employee's employment
hereunder.

                  (b)      Non-Solicitation of Customers. The Employee agrees
that during his employment with the Company he shall not, directly or
indirectly, solicit the business of, or do business with, any customer or
prospective customer of the Company for any business purpose other than for the
benefit of the Company. The Employee further agrees that for one (1) year
following termination of his employment with the Company, including without
limitation termination by the Company for cause or without cause, the Employee
shall not, directly or indirectly, solicit the business of, or do business with,
any customers or prospective customers of the Company.

                  (c)      Non-Solicitation of Employees. The Employee agrees
that, during his employment with the Company and for one (1) year following
termination of the Employee's employment with the Company, including without
limitation termination by the Company for cause or without cause, the Employee
shall not, directly or indirectly, solicit or induce, or attempt to solicit or
induce, any employee of the Company to leave the employment of the Company for
any reason whatsoever, or hire any employee of the Company except into the
employment of the Company.

                  8.       TITLES. Titles are provided herein for convenience
only and are not to serve as a basis for interpretation or construction of the
Plan.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

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The Company:                                HEALTH CARE AND RETIREMENT
                                            CORPORATION OF AMERICA

                                            By: _______________________________

                                            Its:_______________________________

Employee:                                   __________________________________

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                                   SCHEDULE I

Employee:                           _________________________________

Current Base Rate:                  _________________________________

Job Title:                          _________________________________

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                                   SCHEDULE II

1.       Annual Incentive Plan

2.       Stock Option Plan for Key Employees (as amended from time to time)

3.       Restricted Stock Plan (as amended from time to time)

4.       Salary Retirement Plan (prior to January 1, 1993)

5.       Stock Purchase and Savings Program (prior to January 1, 1993)

6.       Senior Management Savings Plan

7.       Senior Executive Retirement Plans

8.       Supplemental Offset Plan

9.       Excess and Supplemental Benefit Plans

10.      Corporate Officer and Senior Executive Life Insurance Program

11.      Such other benefit plans and arrangements as the Company provides, from
         time to time, to salaried employees generally participation in which is
         approved by the President.

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                                                                   EXHIBIT 10.21

                     FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

         This FIRST AMENDMENT TO EMPLOYMENT AGREEMENT ("First Amendment") by and
between, Manor Care, Inc. ("Manor Care"), Heartland Employment Services, Inc.
("Company"), Health Care and Retirement Corporation of America ("HCRA") and
______________ ("Employee") is effective December 16, 2003.

                                    RECITALS

         WHEREAS, on ______________(date), HCRA and Employee entered into an
employment agreement ("Employment Agreement") pursuant to which Employee was
employed by HCRA to provide services for or on behalf of Manor Care and its
direct and indirect subsidiaries on the terms and conditions, including
compensation and benefits, stated therein; and

         WHEREAS, effective January 1, 2000, Company assumed HCRA's obligations
under the Employment Agreement; and

         WHEREAS, among other benefits provided to Employee under the Employment
Agreement, Employee is a participant in the Senior Executive Retirement Program
("SERP"), a non-qualified benefit plan providing retirement benefits to
participants, in accordance with a formula based on the participant's highest
three-year average earnings and years of service (the "SERP Benefit") first
established by HCRA and then adopted by Manor Care and then the Company; and

         WHEREAS, HCRA, Manor Care and the Company each elected to fund their
obligations under the SERP through a collateral assignment split-dollar life
insurance arrangements; and

         WHEREAS, Employee entered into a Split Dollar Assignment Insurance
Agreement ("SDA") with HCRA, pursuant to which the Employee became the owner of
certain life insurance policy(ies) (the "Policy") which was designed to generate
cash value sufficient to fund the Employee's SERP Benefit, and HCRA and then
later Manor Care and the Company agreed to pay the premiums on such Policy and
retain an interest in the cash value of the Policy; and

         WHEREAS, Section 5.10 of the SDA provided that in the event of a change
in control, as defined in the SDA, Manor Care would be required to take actions
to fully fund the cash value of the Policy to equal the SERP Benefit Employee
was projected to receive at retirement including, if necessary, releasing a
portion of its corporate interest in the Policy and, to the extent applicable,
providing a gross-up payment to the Employee to cover any income taxes payable
by the Employee as the result of the release of the corporate interest; and

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         WHEREAS, the transaction in September, 1998 between the former Health
Care and Retirement Corporation and the former Manor Care, Inc. constituted a
change in control under Section 5.10 of the SDA; and

         WHEREAS, the provisions of the Sarbanes-Oxley Act, effective in July,
2002, negatively impacted the SDA by potentially prohibiting the continued
payment of premiums by Manor Care to the extent such payments may be considered
loans to the Employee; and

         WHEREAS, in September, 2003 the Internal Revenue Service adopted
regulations the effect of which will be to change the tax treatment of the SDA
by causing the full cash value in the Policy to become taxable to the Employee
at retirement; and

         WHEREAS, the provisions of Sarbanes-Oxley and the IRS regulations
referenced above, have impacted the original design of the SDA so as potentially
to reduce the advantages and benefits of the Policy for the Employee; and

         WHEREAS, the Compensation Committee of the Manor Care Board of
Directors has received and reviewed the recommendations of its consulting firm,
Watson Wyatt, regarding the implementation of Section 5.10 of the SDA, as well
as Watson Wyatt's recommendation regarding the provisions of Sarbanes-Oxley and
the IRS regulations referenced above; and

         WHEREAS, the Compensation Committee, having fully reviewed the impact
of Section 5.10 of the SDA, the provisions of Sarbanes-Oxley and the IRS
regulations referred to above, and in view of the recommendations of Watson
Wyatt has approved actions designed to implement the requirements of Section
5.10 and to mitigate the impact of the changes in tax treatment of the SDA; and

         WHEREAS, the Company, Manor Care, HCRA and Employee desire to enter
into this First Amendment for the purpose of documenting the actions of the
Compensation Committee with respect to Employee's SERP Benefit and Employee's
agreements with respect thereto.

         NOW THEREFORE, in consideration of the foregoing and the mutual
promises and commitments contained herein, and for other good and valuable
consideration, the parties agree as follows:

         1.       SERP Benefit. In the event of (i) Employee's termination of
employment with the Company by reason of death; (ii) Employee's retirement on or
after Early Retirement (as defined in the SERP), or (iii) termination of
Employee's employment by the Company for reasons other than Cause (as defined in
the Employment Agreement), then upon commencement of the SERP Benefits in
accordance with the provisions of the SERP, HCRA, Manor Care and the Company
agree that they will waive and release that portion, or all, of their Corporate
Interest (as defined in the SDA) in the Policy to the extent that the remaining
cash value of the Policy shall equal the lump sum value of the SERP Benefit, but
shall retain their Corporate Interest in any cash value of the Policy that
exceeds the lump sum value of the SERP Benefit. In the event that after release
of the Corporate Interest, the cash value in the Policy is less than the lump
sum value of the SERP Benefit, the Company shall provide a cash payment to

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Employee in such amount as is necessary to make up the difference between the
lump sum value of the SERP Benefit and the cash value of the Policy after the
release of the Corporate Interest. Such payment shall be made within sixty (60)
days of commencement of the Employee's benefit under the SERP. If Employee's
employment is terminated for Cause at anytime, then HCRA, Manor Care and the
Company shall retain their full corporate interest and Employee shall not be
entitled to any of the benefits set forth in Paragraphs 1, 2 or 3 of this First
Amendment.

         2.       Gross-Up Payment on Release of Corporate Interest and
Shortfall Payment. The Company agrees to make an additional payment to Employee
("Gross-Up Payment A"), within 60 days of the commencement of Employee's
benefits under the SDA, in an amount such that after payment of all federal,
state and local income taxes imposed on Gross-Up Payment A, Employee retains an
amount of Gross-Up Payment A sufficient to pay all the income tax payments which
Employee will be required to pay on the release of the Corporate Interest and
shortfall payments required by Paragraph 1 of this First Amendment.

         3.       Gross-Up Payment on Employee Interest. In addition to payments
required by Paragraphs 1 and 2 hereof, in the event of (i) Employee's
termination of employment with the Company by reason of death; (ii) Employee's
retirement on or after Early Retirement , or (iii) termination of Employee's
employment by the Company, for reasons other than Cause, the Company agrees to
make an additional payment to Employee ("Gross-Up Payment B"), within 60 days of
Employee's commencement of SERP Benefits under the SDA, in an amount such that
after payment of all federal, state and local income taxes imposed on Gross-Up
Payment B, Employee retains an amount of Gross-Up Payment B sufficient to pay
all income tax payments which Employee will be required to pay on the Employee's
retained interest in the cash value of the Policy in excess of the amount of the
Corporate Interest waived under Paragraph 1.

         4.       Non-Competition/Non-Solicitation. In consideration of the
benefits to be provided by Paragraphs 1, 2 and 3 of this Agreement, Employee
agrees that Paragraphs 7(a)-7(c) of the Employment Agreement are amended by
adding one (1) year to the periods specified therein so that the
non-competition/non-solicitation obligations contained therein shall be
effective for a period of two (2) years following the termination of his
employment.

         5.       Acknowledgement. Employee acknowledges and agrees that Manor
Care, the Company and HCRA by complying with the terms of this amendment will
have fulfilled all obligations of HCRA under Section 5.10 of the SDA, and so
long as Manor Care and Company perform their obligations under this Amendment,
Employee shall take no action seeking additional benefits under Section 5.10 of
the SDA.

         6.       Other Provisions Effective. The parties agree that all other
provisions of the Employment Agreement, not amended herein, shall remain in full
force and effect.

         7.       Further Actions. Each party agrees to take such further
action, do such other things, and execute such other writings as shall be
necessary and proper to carry out the terms and provisions of this First
Amendment. Manor Care shall cause the Company, HCRA or any successor employer of
the Employee to honor and fulfill its responsibilities and agreements under this
First Amendment.

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         8.       Interpretation. This First Amendment shall be subject to and
shall be construed under the laws of the State of Ohio.

         9.       Headings. Any headings or captions in this First Amendment are
for reference purposes only, and shall not expand, limit, change or affect the
meaning of any provision of this First Amendment.

         10.      Counterparts. This First Amendment may be executed in any
number of counterparts, each of which shall be deemed an original, and all of
which together shall constitute one and the same First Amendment.

         11.      Successors. This First Amendment shall inure to the benefit of
and be enforceable by the Employee's legal representatives. This First Amendment
shall inure to the benefit of and be binding upon Manor Care, the Company, HCRA
and their successors and assigns. Manor Care shall require any successor to all
or substantially all of the business and/or assets of Manor Care, the Company or
HCRA, whether direct or indirect, by purchase, merger, consolidation,
acquisition of stock, or otherwise, expressly to assume and agree to perform
this First Amendment in the same manner and to the same extent as Manor Care,
the Company or HCRA would be required to perform if no such succession had taken
place.

EMPLOYEE:                                   HEALTH CARE AND RETIREMENT
                                            CORPORATION OF AMERICA

                                            By:_________________________________
                                            Name: Wade B. O'Brian
                                            Its:  Vice President

                                            HEARTLAND EMPLOYMENT SERVICES, INC.

                                            By:_________________________________
                                            Name: Wade B. O'Brian
                                            Its   Vice President

                                            MANOR CARE, INC.

                                            By:_________________________________
                                            Name: R. Jeffrey Bixler
                                            Its   Vice President

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