Document:

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                                                                   Exhibit 10.14

                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS EMPLOYMENT AGREEMENT ("Employment Agreement") is dated this 16th
day of February, 2001, between RES-CARE, INC., a Kentucky corporation (the
"Company"), and L. BRYAN SHAUL (the "Employee").

         RECITALS:

         WHEREAS, the Company has a need for an individual to provide services
to the Company as Executive Vice President of Finance and Administration/Chief
Financial Officer;

         WHEREAS, the Employee has substantial experience in accounting and
financial matters in the health care field and involving publicly-held
companies; and

         WHEREAS, the Company and the Employee have reached agreement on the
terms and conditions under which Employee will perform services for the Company.

         AGREEMENT:

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements set forth herein, the parties agree as follows:

         1. EMPLOYMENT AND TERM. The Company hereby employs the Employee, and
the Employee accepts such employment, upon the terms and conditions herein set
forth for an initial term commencing effective March 19, 2001 (the "Commencement
Date"), and ending on December 31, 2003, subject to earlier termination only in
accordance with the express provisions of this Employment Agreement ("Initial
Term"). This Employment Agreement shall be automatically extended on a
year-to-year basis (January 1 through December 31 of each successive year),
unless sooner terminated in accordance with the express provisions of this
Employment Agreement ("Additional Terms"), upon the expiration of the Initial
Term or any Additional Term, unless prior to the commencement of a sixty (60)
day period expiring at the end of such Initial Term or any Additional Term, the
Company or the Employee shall have given written notice to the other stating
that the term of this Employment Agreement shall not be extended. For purposes
of this Employment Agreement, the term "Term" shall mean the Initial Term plus
all Additional Terms.

         2. DUTIES.

                  (a) EMPLOYMENT AS EXECUTIVE VICE PRESIDENT OF FINANCE AND
         ADMINISTRATION/CHIEF FINANCIAL OFFICER. During the Term, the Employee
         shall serve as the Executive Vice President of Finance and
         Administration/Chief Financial Officer of the Company. The Employee
         shall, subject to the supervision and control of the Chairman,
         President and Chief Executive Officer of the Company ("Chairman") and
         the Board of Directors of the Company (the "Board") have responsibility
         for and oversight of the corporate financial functions of the Company
         and its subsidiaries, including the following: (i) treasury and cash
         management; (ii) fixed asset management; (iii) reimbursement; (iv) tax;
         (v) audit; (vi) financial reporting to the Securities and Exchange
         Commission;

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         (vii) risk management; (viii) corporate payroll, accounts payable and
         consolidation of financial statements; (ix) budgeting and strategic
         planning; and (x) information technology. The Employee shall also
         perform such other duties and exercise such powers over and with regard
         to the business of the Company as may be prescribed from time to time
         by the Chairman or the Board, including, without limitation, serving as
         an officer or director of one or more subsidiaries or affiliates of the
         Company, if elected to such positions, without any additional salary or
         other compensation.

                  (b) TIME AND EFFORT. The Employee shall devote his best
         efforts and all of his business time, energies and talents exclusively
         to the business of the Company and to no other business during the Term
         of this Employment Agreement; provided, however, that subject to the
         restrictions in Section 7 hereof, the Employee may (i) invest his
         personal assets in such form or manner as will not require his services
         in the operation of the affairs of the entities in which such
         investments are made and (ii) subject to satisfactory performance of
         the duties described in Section 2(a) hereof, devote such time as may be
         reasonably required for him to continue to maintain his current level
         of participation in various civic and charitable activities.

                  (c) COMPLIANCE CERTIFICATE. Not less frequently than annually
         and upon the termination of the Employee's employment hereunder for any
         reason other than Employee's death, the Employee shall execute and
         deliver to the Chairman and/or any other authorized officer designated
         by the Company a certificate of the Employee's level of compliance with
         applicable laws, regulations and Company policies regarding the
         provision of services to clients and billings to its paying agencies (a
         "Compliance Certificate"). Each such Compliance Certificate requested
         by the Company shall be completed and delivered by the Employee to the
         officer of the Company requesting the same within two (2) days after
         the date of such request.

         3. COMPENSATION AND BENEFITS.

                  (a) BASE SALARY. The Company shall pay to the Employee during
         the Term an annual salary (the "Base Salary"), which initially shall be
         equal to $200,000. The Base Salary shall be due and payable in
         substantially equal bi-weekly installments or in such other
         installments as may be necessary to comport with the Company's normal
         pay periods for all employees.

                  Provided that this Employment Agreement or Employee's
         employment hereunder shall not have been terminated for any reason, the
         Base Salary shall be increased, effective as of January 1, 2002 by the
         greater of (w) four and 167/1000 percent or (x) the percentage by which
         the Consumer Price Index for all Urban Consumers (CPI-U), All-Items,
         1982-1984=100, as published by the Bureau of Labor Statistics (the
         "CPI"), established for the month of December 2001 exceeds the CPI
         published for the month of February 2001, and shall be increased the
         first day of each January, commencing January 1, 2003, by the greater
         of (y) five percent (5%) or (z) the percentage by which the CPI
         established for the month of December immediately preceding the date on
         which the adjustment is to be made exceeds the CPI published for the
         month of December of the immediately preceding year. If the Bureau of
         Labor Statistics suspends or terminates its

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         publication of the CPI, the parties agree that a reasonably comparable
         price index shall be substituted for the CPI.

                  (b) INCENTIVE PROGRAM. During the Term, the Employee shall be
         eligible for incentive compensation in accordance with a written
         incentive program mutually established by the Chairman and the Employee
         on an annual basis (the "Incentive Program"). The Incentive Program
         shall provide that sixty-five percent (65%) of the maximum incentive
         that may be earned by the Employee shall be based on compliance goals
         mutually established by the Chairman and the Employee and thirty-five
         percent (35%) of the maximum incentive that may be earned by the
         Employee shall be based on the financial performance of the Company and
         its subsidiaries as a whole. All incentive payments under the Incentive
         Program shall be determined quarterly, and shall be calculated by
         reference to the incentive percentage earned by the Employee multiplied
         by the Base Salary actually paid to the Employee for the calendar
         quarter for which the incentive is determined. The maximum percentage
         of the Employee's Base Salary that the Employee may earn under the
         Incentive Program shall be forty percent (40%) of the Base Salary
         actually paid to the Employee for the calendar quarter for which the
         incentive is determined. Any quarterly incentive earned by the Employee
         for any calendar quarter shall be paid by the Company to the Employee
         not later than sixty (60) days after the end of such calendar quarter.
         Any amounts earned by the Employee under the Incentive Program shall be
         hereinafter referred to as the "Performance Incentive."

                  (c) SPECIAL INCENTIVE BONUS. Provided that this Employment
         Agreement or Employee's employment hereunder shall not have been
         terminated for any reason during the period six (6) months after the
         Commencement Date, Employee shall be eligible for a special incentive
         bonus of up to $7,500 (the "Incentive Bonus"), based upon goals
         mutually agreeable to the Chairman and Employee, which Incentive Bonus
         shall be paid to Employee on the date that is six (6) months after the
         Commencement Date.

                  (d) PARTICIPATION IN BENEFIT PLANS. During the Term, Employee
         shall be entitled to participate in all employee benefit plans and
         programs (including but not limited to vacation, sick and other time
         off policies, retirement and profit sharing plans, health insurance,
         etc.) provided by the Company under which the Employee is eligible in
         accordance with the terms of such plans and programs, subject to any
         applicable waiting and/or vesting periods, except that the Employee
         shall be eligible to participate in the Company's group life insurance
         program effective as of the Commencement Date, without regard to any
         waiting period applicable thereto. The Company reserves the right to
         amend, modify or terminate in their entirety any of such programs and
         plans. The Company shall reimburse the Employee for the amount paid by
         him for health insurance premiums for Cobra coverage under his former
         employer's health insurance plan for the first three (3) months of the
         Initial Term. The Employee shall submit requests for such reimbursement
         monthly.

                  (e) STOCK OPTION GRANT. As an inducement for the execution of
         this Employment Agreement by the Employee, on the Commencement Date,
         the Employee shall be granted options to purchase 35,000 shares of
         Company common stock. Such stock options shall be granted pursuant to
         and, to the extent not expressly inconsistent herewith, governed by the
         Company stock option plan that is applicable to its managerial

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         employees (the "Stock Plan"). Twenty percent (20%) of such stock
         options shall vest and be exercisable on the Commencement Date.
         Provided the Employee shall continue to be employed hereunder, twenty
         percent (20%) of such stock options shall vest and be exercisable on
         each of the next four (4) anniversaries of the Commencement Date (with
         such number of shares to be adjusted in accordance with the terms of
         the Stock Plan for stock splits, stock dividends, recapitalizations and
         the like). Any stock options that shall not be vested at the effective
         date of termination of the Employee's employment hereunder shall expire
         and any vested options shall expire in accordance with the terms of the
         Stock Plan. Such options shall have an exercise price based upon the
         closing sale price of Company common stock as reported on the Nasdaq
         National Market on the Commencement Date.

                  (f) OUT-OF-POCKET EXPENSES. The Company shall promptly pay the
         ordinary, necessary and reasonable expenses incurred by the Employee in
         the performance of the Employee's duties hereunder (or if such expenses
         are paid directly by the Employee shall promptly reimburse him for such
         payment), consistent with the reimbursement policies adopted by the
         Company from time to time and subject to the prior written approval by
         the Chairman.

                  (g) WITHHOLDING OF TAXES; INCOME TAX TREATMENT. If, upon the
         payment of any compensation or benefit to the Employee under this
         Employment Agreement (including, without limitation, in connection with
         the exercise of any option), the Company determines in its discretion
         that it is required to withhold or provide for the payment in any
         manner of taxes, including but not limited to, federal income or social
         security taxes, state income taxes or local income taxes, the Employee
         agrees that the Company may satisfy such requirement by:

                           (i) withholding an amount necessary to satisfy such
                  withholding requirement from the Employee's compensation or
                  benefit; or

                           (ii) conditioning the payment or transfer of such
                  compensation or benefit upon the Employee's payment to the
                  Company of an amount sufficient to satisfy such withholding
                  requirement.

         The Employee agrees that he will treat all of the amounts payable
         pursuant to this Employment Agreement as compensation for income tax
         purposes.

         4. TERMINATION. The Employee's employment hereunder may be terminated
under this Employment Agreement as follows, subject to the Employee's rights
pursuant to Section 5 hereof:

                  (a) DEATH. The Employee's employment hereunder shall terminate
         upon his death.

                  (b) DISABILITY. The Employee's employment shall terminate
         hereunder at the earlier of (i) immediately upon the Company's
         determination (conveyed by a Notice of Termination (as defined in
         paragraph (f) of this Section 4)) that the Employee is permanently
         disabled, and (ii) the Employee's absence from his duties hereunder for
         180

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         days. "Permanent disability" for purposes of this Employment Agreement
         shall mean the onset of a physical or mental disability which prevents
         the Employee from performing the essential functions of the Employee's
         duties hereunder, which is expected to continue for 180 days or more,
         subject to any reasonable accommodation required by state and/or
         federal disability anti-discrimination laws, including, but not limited
         to, the Americans With Disabilities Act of 1990, as amended.

                  (c) CAUSE. The Company may immediately terminate the
         Employee's employment hereunder for Cause by delivering to the Employee
         a Notice of Termination so indicating. For purposes of this Employment
         Agreement, the Company shall have "Cause" to terminate the Employee's
         employment because of the Employee's personal dishonesty, intentional
         misconduct, breach of fiduciary duty involving personal profit, failure
         to perform his duties hereunder, conviction of, or plea of nolo
         contendere to, any law, rule or regulation (other than traffic
         violations or similar offenses) or breach of any provision of this
         Employment Agreement.

                  (d) WITHOUT CAUSE. The Company shall have the right to
         terminate the Employee's employment under this Employment Agreement at
         any time without Cause (as defined in paragraph (c) of this Section 4)
         by delivery of a Notice of Termination specifying a date of termination
         at least thirty (30) days following delivery of such notice.

                  (e) VOLUNTARY TERMINATION. By not less than thirty (30) days
         prior written notice to the Chairman, Employee may voluntarily
         terminate his employment hereunder.

                  (f) NOTICE OF TERMINATION. Any termination of the Employee's
         employment by the Company during the Term pursuant to paragraphs (b),
         (c) or (d) of this Section 4 shall be communicated by a Notice of
         Termination to the Employee. For purposes of this Employment Agreement,
         a "Notice of Termination" shall mean a written notice which shall
         indicate the specific termination provision in this Employment
         Agreement relied upon and in the case of any termination for Cause
         shall set forth in reasonable detail the facts and circumstances
         claimed to provide a basis for termination of the Employee's
         employment.

                  (g) DATE OF TERMINATION. The "Date of Termination" shall, for
         purposes of this Employment Agreement, mean: (i) if the Employee's
         employment is terminated by his death, the date of his death; (ii) if
         the Employee's employment is terminated on account of disability
         pursuant to Section 4(b) above, thirty (30) days after Notice of
         Termination is given (provided that the Employee shall not, during such
         30-day period, have returned to the performance of his duties on a
         full-time basis), (iii) if the Employee's employment is terminated by
         the Company for Cause pursuant to Section 4(c) above, the date
         specified in the Notice of Termination, (iv) if the Employee's
         employment is terminated by the Company without Cause, pursuant to
         Section 4(d) above, the date specified in the Notice of Termination,
         (v) if the Employee's employment is terminated voluntarily pursuant to
         Section 4(e) above, the date specified in the written notice delivered
         by the Employee to the Company as provided in Section 4(e) above, and
         (vi) if the Employee's employment is terminated by reason of an
         election by either party not to extend the Term, the last day of the
         then effective Term.

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         5. COMPENSATION UPON TERMINATION OR DURING DISABILITY.

                  (a) DEATH. If the Employee's employment is terminated by
         reason of his death during the Term, the Employee shall continue to
         receive installments of his then current Base Salary until the date of
         his death, shall receive any earned but unpaid Performance Incentive
         for any calendar quarter ending prior to the date of his death.

                  (b) DISABILITY. If the Employee's employment is terminated by
         reason of his disability during the Term, the Employee shall continue
         to receive installments of his then current Base Salary while actively
         at work and until the earlier of (i) the date of termination in
         accordance with Section 4(b) of this Employment Agreement or (ii) the
         date that short or long-term disability payments to the Employee
         commence under any plan or program then provided and funded by the
         Company. If the Employee's installments of Base Salary cease by reason
         of clause (ii) of the preceding sentence but the benefits payable under
         any such disability plan or program do not provide 100% replacement of
         the Employee's installments of Base Salary during such period, the
         Employee shall be paid at regular payroll intervals until the
         provisions of clause (i) of the preceding sentence becomes effective,
         an amount equal to the difference between the periodic installments of
         his then current Base Salary that would have otherwise been payable and
         the disability benefit paid from such disability plan or program. In
         the event of any such termination, the Employee shall also receive any
         earned but unpaid Performance Incentive for any calendar quarter prior
         to the Date of Termination. Upon termination due to death prior to a
         termination as specified in the preceding provisions of this paragraph
         (b), the payment provisions of this paragraph (b) shall no longer apply
         and Section 5(a) above shall apply.

                  (c) CAUSE. If the Employee's employment is terminated for
         Cause, the Employee shall continue to receive installments of his then
         current Base Salary only through the Date of Termination and the
         Employee shall not be entitled to receive any Performance Incentive
         (other than any earned but unpaid Performance Incentive for any prior
         calendar quarter), and shall not be eligible for any severance payment
         of any nature.

                  (d) WITHOUT CAUSE. If the Employee's employment is terminated
         without Cause, the Employee shall continue to receive installments of
         his then current Base Salary until the Date of Termination and for one
         (1) year thereafter and shall also be entitled to receive any earned
         but unpaid Performance Incentive for any calendar quarter ending prior
         to the Date of Termination.

                  (e) EXPIRATION OF TERM. If the Employee's employment shall be
         terminated by reason of expiration of the Term (irrespective of which
         party elected not to extend the Term), the Employee shall continue to
         receive installments of his then current Base Salary until the Date of
         Termination and the Company shall pay the Employee any earned
         Performance Incentive for the last calendar quarter of the Term.

                  (f) VOLUNTARY TERMINATION. If the Employee's employment shall
         be terminated pursuant to Section 4(e) hereof, the Employee shall
         continue to receive installments of his then current Base Salary until
         the Date of Termination and the Employee shall not be entitled to
         receive any Performance Incentive (other than any

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         earned but unpaid Performance Incentive for any calendar quarter ending
         prior to the Date of Termination), and shall not be entitled to any
         severance payment of any nature.

                  (g) NO FURTHER OBLIGATIONS AFTER PAYMENT. After all payments,
         if any, have been made to the Employee pursuant to the applicable
         provisions of paragraphs (a) through (f) of this Section 5, the Company
         shall have no further obligations to the Employee under this Employment
         Agreement other than the provision of any employee benefit plan
         required to be continued under applicable law or by its terms.

         6. DUTIES UPON TERMINATION. Upon the termination of Employee's
employment hereunder for any reason whatsoever (including but not limited to the
failure of the parties hereto to agree to the extension of this Employment
Agreement pursuant to Section 1 hereof), Employee shall promptly (a) comply with
his obligation to deliver a Compliance Certificate as provided in Section 2(c)
hereof, and (b) return to the Company any property of the Company or its
subsidiaries then in Employee's possession or control, including without
limitation, any Confidential Information (as defined in Section 7(d)(iii)
hereof) and whether or not constituting Confidential Information, any technical
data, performance information and reports, sales or marketing plans, documents
or other records, and any manuals, drawings, tape recordings, computer programs,
discs, and any other physical representations of any other information relating
to the Company, its subsidiaries or affiliates or to the Business (as defined in
Section 7(d)(iv) hereof) of the Company. Employee hereby acknowledges that any
and all of such documents, items, physical representations and information are
and shall remain at all times the exclusive property of the Company.

         7. RESTRICTIVE COVENANTS.

                  (a) ACKNOWLEDGMENTS. Employee acknowledges that (i) his
         services hereunder are of a special, unique and extraordinary character
         and that his position with the Company places him in a position of
         confidence and trust with the operations of the Company, its
         subsidiaries and affiliates (collectively, the "Res-Care Companies")
         and allows him access to Confidential Information, (ii) the Company has
         provided Employee with a unique opportunity as the Company's Executive
         Vice President of Finance and Administration/Chief Financial Officer,
         (iii) the nature and periods of the restrictions imposed by the
         covenants contained in this Section 7 are fair, reasonable and
         necessary to protect and preserve for the Company the benefits of
         Employee's employment hereunder, (iv) the Res-Care Companies would
         sustain great and irreparable loss and damage if Employee were to
         breach any of such covenants, (v) the Res-Care Companies conduct and
         are aggressively pursuing the conduct of their business actively in and
         throughout the entire Territory (as defined in paragraph (d)(ii) of
         this Section 7), and (vi) the Territory is reasonably sized because the
         current Business of the Res-Care Companies is conducted throughout such
         geographical area, the Res-Care Companies are aggressively pursuing
         expansion and new operations throughout such geographic area and the
         Res-Care Companies require the entire Territory for profitable
         operations.

                  (b) CONFIDENTIALITY AND NON-DISPARAGEMENT COVENANTS. Having
         acknowledged the foregoing, Employee covenants that without limitation
         as to time, (i) commencing on the Commencement Date, he will not
         directly or indirectly disclose or use or otherwise exploit for his own
         benefit, or the benefit of any other Person (as defined in paragraph

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         (d)(v) of this Section 7), except as may be necessary in the
         performance of his duties hereunder, any Confidential Information, and
         (ii) commencing on the Date of Termination, he will not disparage or
         comment negatively about any of the Res-Care Companies, or their
         respective officers, directors, employees, policies or practices, and
         he will not discourage anyone from doing business with any of the
         Res-Care Companies and will not encourage anyone to withdraw their
         employment with any of the Res-Care Companies.

                  (c) COVENANTS. Having acknowledged the statements in Section
         7(a) hereof, Employee covenants and agrees with the Res-Care Companies
         that he will not, directly or indirectly, from the Commencement Date
         until the Date of Termination, and for a period of eighteen (18) months
         thereafter, directly or indirectly (i) offer employment to, hire,
         solicit, divert or appropriate to himself or any other Person, any
         business or services (similar in nature to the Business) of any person
         who was an employee or an agent of any of the Res-Care Companies at any
         time during the last twelve (12) months of Employee's employment
         hereunder; or (ii) own, manage, operate, join, control, assist,
         participate in or be connected with, directly or indirectly, as an
         officer, director, shareholder, partner, proprietor, employee, agent,
         consultant, independent contractor or otherwise, any Person which is,
         at the time, directly or indirectly, engaged in the Business of the
         Res-Care Companies within the Territory. The Employee further agrees
         that from the Commencement Date until the Date of Termination, he will
         not undertake any planning for or organization of any business activity
         that would be competitive with the Business.

                  (d) DEFINITIONS. For purposes of this Employment Agreement:

                           (i) For purposes of this Section 7, "termination of
                  Employee's employment" shall include any termination pursuant
                  to paragraphs (b), (c), (d) and (e) of Section 4 hereof, the
                  termination of such Employee's employment by reason of the
                  failure of the parties hereto to agree to the extension of
                  this Agreement pursuant to Section 1 hereof or the voluntary
                  termination of Employee's employment hereunder.

                           (ii) The "Territory" shall mean the forty-eight (48)
                  contiguous states of the United States, the United States
                  Virgin Islands, Puerto Rico and all of the Provinces of
                  Canada.

                           (iii) "Confidential Information" shall mean any
                  business information relating to the Res-Care Companies or to
                  the Business (whether or not constituting a trade secret),
                  which has been or is treated by any of the Res-Care Companies
                  as proprietary and confidential and which is not generally
                  known or ascertainable through proper means. Without limiting
                  the generality of the foregoing, so long as such information
                  is not generally known or ascertainable by proper means and is
                  treated by the Res-Care Companies as proprietary and
                  confidential, Confidential Information shall include the
                  following information regarding any of the Res-Care Companies:

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                                    (1)     any patent, patent application,
                                            copyright, trademark, trade name,
                                            service mark, service name,
                                            "know-how" or trade secrets;

                                    (2)     customer lists and information
                                            relating to (i) any client of any of
                                            the Res-Care Companies or (ii) any
                                            client of the operations of any
                                            other Person for which operations
                                            any of the Res-Care Companies
                                            provides management services;

                                    (3)     supplier lists, pricing policies,
                                            consulting contracts and competitive
                                            bid information;

                                    (4)     records, operational methods and
                                            Company policies and procedures,
                                            including manuals and forms;

                                    (5)     marketing data, plans and
                                            strategies;

                                    (6)     business acquisition, development,
                                            expansion or capital investment plan
                                            or activities;

                                    (7)     software and any other confidential
                                            technical programs;

                                    (8)     personnel information, employee
                                            payroll and benefits data;

                                    (9)     accounts receivable and accounts
                                            payable;

                                    (10)    other financial information,
                                            including financial statements,
                                            budgets, projections, earnings and
                                            any unpublished financial
                                            information; and

                                    (11)    correspondence and communications
                                            with outside parties.

                           (iv) The "Business" of the Res-Care Companies shall
                  mean the business of providing youth treatment or services,
                  services to persons with mental retardation and other
                  developmental disabilities, including but not limited to
                  persons who have been dually diagnosed, services to persons
                  with acquired brain injuries, training services, or providing
                  management and/or consulting services to third parties
                  relating to the foregoing.

                           (v) The term "Person" shall mean an individual, a
                  partnership, an association, a corporation, a trust, an
                  unincorporated organization, or any other business entity or
                  enterprise.

                  (e) INJUNCTIVE RELIEF, INVALIDITY OF ANY PROVISION. Employee
         acknowledges that his breach of any covenant contained in this Section
         7 will result in irreparable injury to the Res-Care Companies and that
         the remedy at law of such parties for such a breach will be inadequate.
         Accordingly, Employee agrees and consents that each of the Res-Care
         Companies in addition to all other remedies available to them at law
         and in equity,

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         shall be entitled to seek both preliminary and permanent injunctions to
         prevent and/or halt a breach or threatened breach by Employee of any
         covenant contained in this Section 7. If any provision of this Section
         7 is invalid in part or in whole, it shall be deemed to have been
         amended, whether as to time, area covered, or otherwise, as and to the
         extent required for its validity under applicable law and, as so
         amended, shall be enforceable. The parties further agree to execute all
         documents necessary to evidence such amendment.

                  (f) ADVICE TO FUTURE EMPLOYERS. If Employee, in the future,
         seeks or is offered employment by any other Person, he shall provide a
         copy of this Section 7 to the prospective employer prior to accepting
         employment with that prospective employer.

         8. ENTIRE AGREEMENT; MODIFICATION; WAIVER. This Employment Agreement
constitutes the entire agreement between the parties pertaining to the subject
matter contained in them and supersedes all prior and contemporaneous
agreements, representations, and understandings of the parties. No supplement,
modification, or amendment of this Employment Agreement shall be binding unless
executed in writing by all parties hereto (other than by reason of the
prospective modification of the Incentive Program by the Company or as provided
in the next to last sentence of Section 7(e) hereof). No waiver of any of the
provisions of this Employment Agreement will be deemed, or will constitute, a
waiver of any other provision, whether or not similar, nor will any waiver
constitute a continuing waiver. No waiver will be binding unless executed in
writing by the party making the waiver.

         9. SUCCESSORS AND ASSIGNS; ASSIGNMENT. This Employment Agreement shall
be binding on, and inure to the benefit of, the parties hereto and their
respective heirs, executors, legal representatives, successors and assigns;
PROVIDED, HOWEVER, that this Employment Agreement is intended to be personal to
the Employee and the rights and obligations of the Employee hereunder may not be
assigned or transferred by him.

         10. NOTICES. All notices, requests, demands and other communications
required or permitted to be given or made under this Employment Agreement, or
any other agreement executed in connection therewith, shall be in writing and
shall be deemed to have been given on the date of delivery personally or upon
deposit in the United States mail postage prepaid by registered or certified
mail, return receipt requested, to the appropriate party or parties at the
following addresses (or at such other address as shall hereafter be designated
by any party to the other parties by notice given in accordance with this
Section):

                  TO THE COMPANY:
                  --------------

                  ResCare, Inc.
                  10140 Linn Station Road
                  Louisville, Kentucky 40223
                  Attn:    Ronald G. Geary,
                           Chairman, President and Chief Executive Officer

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                  TO THE EMPLOYEE:
                  ---------------

                  L. Bryan Shaul
                  5603 Chapel View Way
                  Crestwood, Kentucky 40014

         11. EXECUTION IN COUNTERPARTS. This Employment Agreement may be
executed in multiple counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same document.

         12. FURTHER ASSURANCES. The parties each hereby agree to execute and
deliver all of the agreements, documents and instruments required to be executed
and delivered by them in this Employment Agreement and to execute and deliver
such additional instruments and documents and to take such additional actions as
may reasonably be required from time to time in order to effectuate the
transactions contemplated by this Employment Agreement.

         13. SEVERABILITY OF PROVISIONS. The invalidity or unenforceability of
any particular provision of this Employment Agreement shall not affect the other
provisions hereof and this Employment Agreement shall be construed in all
respects as if such invalid or unenforceable provisions were omitted.

         14. GOVERNING LAW; JURISDICTION; VENUE. This Employment Agreement is
executed and delivered in, and shall be governed by, enforced and interpreted in
accordance with the laws of, the Commonwealth of Kentucky. The parties hereto
agree that the federal or state courts located in Kentucky shall have the
exclusive jurisdiction with regard to any litigation relating to this Employment
Agreement and that venue shall be proper only in Jefferson County, Kentucky, the
location of the principal office of the Company.

         15. TENSE; CAPTIONS. In construing this Employment Agreement, whenever
appropriate, the singular tense shall also be deemed to mean the plural, and
vice versa, and the captions contained in this Employment Agreement shall be
ignored.

         16. SURVIVAL. The provisions of Sections 5, 6 and 7 hereof shall
survive the termination, for any reason, of this Employment Agreement, in
accordance with their terms.

         IN WITNESS WHEREOF, the parties hereto have executed this Employment
Agreement on the day and year set forth above.

                                             RES-CARE, INC.

                                             By:
                                                 -------------------------------
                                                 Ronald G. Geary
                                                 Chairman, President and Chief
                                                 Executive Officer

                                       11
<PAGE>   12

                                             -----------------------------------
                                             L. Bryan Shaul

                                       12<PAGE>   1

                                                                   Exhibit 10.15

                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS EMPLOYMENT AGREEMENT ("Employment Agreement") is dated this 25th
day of January, 2001, between RES-CARE, INC., a Kentucky corporation (the
"Company"), and KATHERINE W. GILCHRIST (the "Employee").

         RECITALS:

         WHEREAS, the Board of Directors of the Company (the "Board") has
determined that the Company has a need for a Vice President and Chief Financial
Officer for the Division for Persons with Disabilities (Chief Financial
Officer);

         WHEREAS, the Employee has substantial experience in financial and
accounting matters involving the health care field; and

         WHEREAS, the Company and the Employee have reached agreement on the
terms and conditions under which Employee will perform services for the Company.

         AGREEMENT:

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements set forth herein, the parties agree as follows:

         1. EMPLOYMENT AND TERM. The Company hereby employs the Employee, and
the Employee accepts such employment, upon the terms and conditions herein set
forth for an initial term commencing on March 5, 2001 and ending on December 31,
2003, subject to earlier termination only in accordance with the express
provisions of this Employment Agreement ("Initial Term"). This Employment
Agreement shall be automatically extended on a year-to-year basis (January 1
through December 31 of each successive year), unless sooner terminated in
accordance with the express provisions of this Employment Agreement ("Additional
Terms"), upon the expiration of the Initial Term or any Additional Term, unless
prior to the commencement of a sixty (60) day period expiring at the end of such
Initial Term or any Additional Term, the Company or the Employee shall have
given written notice to the other stating that the term of this Employment
Agreement shall not be extended. For purposes of this Employment Agreement, the
term "Term" shall mean the Initial Term plus all Additional Terms.

         2. DUTIES.

                  (a) EMPLOYMENT AS CHIEF FINANCIAL OFFICER. During the Term,
         the Employee shall serve as the Chief Financial Officer of the
         Company's Division for Persons with Disabilities (DPD), as well as be a
         Vice President and perform the following services: serve as key
         business advisor and partner with Divisional President and Executive
         Vice President of Operations; serve as liaison with a dotted line to
         the corporate CFO and all of the corporate financial staff; provide
         leadership to the DPD regional directors of finance; oversee the
         administration of the budgeting accounting, financial planning and
         analysis and revenue management functions of the division; oversee all
         payroll and

<PAGE>   2

         accounts payable functions of the division including the improvement of
         current payroll processing and the rollout in 2001 of the new time and
         attendance system; coordinating for the division the development of the
         annual plan and strategic plan; monitoring the divisions cash flow, as
         it relates to accounts receivables and implementing procedures to
         achieve acceptable collection levels - finish full implementation of
         the new HCS and electronic billing arrangements; overseeing the timely
         and accurate publication and distribution of monthly financial
         statements on a regional and consolidated division basis; working with
         corporate finance to refine and develop financial/accounting policies
         and procedures and to ensure the compliance with same in the division;
         assist the corporate CFO and CEO in roadshows, annual shareholder
         reports and the banking community. The Employee shall, subject to the
         supervision and control of the President, perform such other duties and
         exercise such powers over and with regard to such financial functions
         and such additional duties as may be prescribed from time to time by
         the President, including, without limitation, serving as an officer or
         director of one or more subsidiaries or affiliates of the Company, if
         elected to such positions, without any additional salary or other
         compensation. The Employee shall serve as a member of the Resource
         Center's Leadership Team.

                  (b) TIME AND EFFORT. The Employee shall devote her best
         efforts and all of her business time, energies and talents exclusively
         to the business of the Company and to no other business during the Term
         of this Employment Agreement; provided, however, that subject to the
         restrictions in Section 7 hereof, the Employee may (i) invest her
         personal assets in such form or manner as will not require her services
         in the operation of the affairs of the entities in which such
         investments are made and (ii) subject to satisfactory performance of
         the duties described in Section 2(a) hereof, devote such time as may be
         reasonably required for her to continue to maintain her current level
         of participation in various civic and charitable activities.

                  (c) COMPLIANCE CERTIFICATE. Not less frequently than annually
         and upon the termination of the Employee's employment hereunder for any
         reason other than Employee's death, the Employee shall execute and
         deliver to the President a certificate of the Employee's level of
         compliance with applicable laws, regulations regarding company matters
         and business regarding the provision of services to clients and
         billings to its paying agencies ("Compliance Certificate"). Each such
         Compliance Certificate requested by the Company shall be completed and
         delivered by the Employee to the President, as the case may be, within
         two (2) days after the date of such request.

         3. COMPENSATION AND BENEFITS.

                  (a) BASE SALARY. The Company shall pay to the Employee during
         the Term an annual salary (the "Base Salary"), which initially shall be
         $190,000. The Base Salary shall be due and payable in substantially
         equal bi-weekly installments or in such other installments as may be
         necessary to comport with the Company's normal pay periods for all
         employees.

                  Provided the Employee is still employed, the Base Salary shall
         be increased, effective as of the first day of each January, commencing
         January 1, 2002, by the greater of (x) five percent (5%) or (y) the
         percentage by which the Consumer Price Index for all

                                       2
<PAGE>   3

         Urban Consumers (CPI-U), All-Items, 1982-1984=100, as published by the
         Bureau of Labor Statistics (the "CPI"), established for the month of
         December immediately preceding the date on which the adjustment is to
         be made exceeds the CPI published for the month of December of the
         immediately preceding year. If the Bureau of Labor Statistics suspends
         or terminates its publication of the CPI, the parties agree that a
         reasonably comparable price index shall be substituted for the CPI.

                  (b) INCENTIVE PROGRAM. During the Term, the Employee shall be
         eligible for incentive compensation in accordance with a written
         incentive program mutually established by the President and the
         Employee on an annual basis (the "Incentive Program"). The Incentive
         Program shall provide that sixty-five percent (65%) of the maximum
         incentive that may be earned by the Employee shall be based on
         compliance goals mutually established by the President and the Employee
         and thirty-five percent (35%) of the maximum incentive that may be
         earned by the Employee shall be based on the financial performance of
         the Company and its subsidiaries as a whole. All incentive payments
         under the Incentive Program shall be determined quarterly, and shall be
         calculated by reference to the incentive percentage earned by the
         Employee multiplied by the Base Salary actually paid to the Employee
         for the calendar quarter for which the incentive is determined. The
         maximum percentage of the Employee's Base Salary that the Employee may
         earn under the Incentive Program shall be forty percent (40%) of the
         Base Salary actually paid to the Employee for the calendar quarter for
         which the incentive is determined. Any quarterly performance incentive
         earned by the Employee for any calendar quarter shall be paid by the
         Company to the Employee not later than sixty (60) days after the end of
         such calendar quarter. Any amounts earned by the Employee under the
         Incentive Program shall be hereinafter referred to as the "Performance
         Incentive."

                  (c) PARTICIPATION IN BENEFIT PLANS. During the Term, Employee
         shall be entitled to participate in all employee benefit plans and
         programs (including but not limited to vacation, sick and other time
         off policies, retirement and profit sharing plans, health insurance,
         etc.) provided by the Company under which the Employee is eligible in
         accordance with the terms of such plans and programs, subject to
         customary waiting and vesting periods. The Company reserves the right
         to amend, modify or terminate in their entirety any of such programs
         and plans. The Company shall reimburse the Employee for the amount paid
         by her for health insurance premiums for Cobra coverage under her
         former employer's health insurance plan for the first three (3) months
         of the Initial Term. The Employee shall submit requests for such
         reimbursement monthly. Furthermore, not with standing, the above
         Employee shall be entitled to three weeks vacation in calendar year
         2001-2003.

                  (d) STOCK OPTION GRANT. As an inducement for the execution of
         this Employment Agreement by the Employee, on March 5, 2001, the
         Employee shall be granted options to purchase 30,000 shares of Company
         common stock. Such stock options shall be granted pursuant to and, to
         the extent not expressly inconsistent herewith, governed by the Company
         stock option plan that is applicable to its managerial employees (the
         "Stock Plan"). Twenty percent (20%) of such stock options shall vest
         and be exercisable on March 5, 2001. Provided the Employee shall
         continue to be employed hereunder, twenty percent (20%) of such stock
         options shall vest and be exercisable on each of the next four (4)
         anniversaries of such date (with such number of shares to be

                                       3
<PAGE>   4

         adjusted in accordance with the terms of the Stock Plan for stock
         splits, stock dividends, recapitalizations and the like). Any stock
         options that shall not be vested at the effective date of termination
         of the Employee's employment hereunder shall expire and any vested
         options shall expire in accordance with the terms of the Stock Plan.
         Such options shall have an exercise price based upon the closing sale
         price of Company common stock as reported on the Nasdaq National Market
         on the last trading day prior to March 5, 2001.

                  (e) ADDITIONAL BENEFITS. As additional consideration for the
         execution of this Employment Agreement and the continuing services of
         the Employee hereunder, the Company has provided and will provide the
         following additional benefits to the Employee:

                           (i) Temporary Living Expenses. It is anticipated that
                  the Employee will offer her existing residence for sale
                  commencing in April, 2001. In the interim, the Employee shall
                  secure temporary lodging in the Louisville, Kentucky
                  metropolitan area. The Company shall reimburse the Employee
                  for her temporary living expenses in the Louisville, Kentucky
                  metropolitan area for a maximum period of six (6) months, up
                  to a maximum amount of $2,000 per month. The Employee shall
                  submit requests for such reimbursement monthly.

                           (ii) Moving Expenses. The Employee will be reimbursed
                  by the Company for her reasonable and necessary expenses in
                  connection with the relocation of her residence from the Avon,
                  Connecticut area to the Louisville, Kentucky metropolitan area
                  pursuant to the Company's standard relocation policy except
                  that the Employee shall be reimbursed for two (2) trips for
                  location and selection of a residence and the $5,000 cap on
                  expense reimbursement in such policy shall be waived by the
                  Company. To the extent that such reimbursements increase the
                  taxable income of the Employee, the Company shall increase
                  such reimbursements by forty percent (40%).

                  (f) OUT-OF-POCKET EXPENSES. The Company shall promptly pay the
         ordinary, necessary and reasonable expenses incurred by the Employee in
         the performance of the Employee's duties hereunder (or if such expenses
         are paid directly by the Employee shall promptly reimburse her for such
         payment), consistent with the reimbursement policies adopted by the
         Company from time to time and subject to the prior written approval by
         the Chairman.

                  (g) WITHHOLDING OF TAXES; INCOME TAX TREATMENT. If, upon the
         payment of any compensation or benefit to the Employee under this
         Employment Agreement (including, without limitation, in connection with
         the exercise of any option), the Company determines in its discretion
         that it is required to withhold or provide for the payment in any
         manner of taxes, including but not limited to, federal income or social
         security taxes, state income taxes or local income taxes, the Employee
         agrees that the Company may satisfy such requirement by:

                           (i) withholding an amount necessary to satisfy such
                  withholding requirement from the Employee's compensation or
                  benefit; or

                                       4
<PAGE>   5

                           (ii) conditioning the payment or transfer of such
                  compensation or benefit upon the Employee's payment to the
                  Company of an amount sufficient to satisfy such withholding
                  requirement.

         The Employee agrees that she will treat all of the amounts payable
         pursuant to this Employment Agreement as compensation for income tax
         purposes.

         4. TERMINATION. The Employee's employment hereunder may be terminated
under this Employment Agreement as follows, subject to the Employee's rights
pursuant to Section 5 hereof:

                  (a) DEATH. The Employee's employment hereunder shall terminate
         upon her death.

                  (b) DISABILITY. The Employee's employment shall terminate
         hereunder at the earlier of (i) immediately upon the Company's
         determination (conveyed by a Notice of Termination (as defined in
         paragraph (f) of this Section 4)) that the Employee is permanently
         disabled, and (ii) the Employee's absence from her duties hereunder for
         180 days. "Permanent disability" for purposes of this Employment
         Agreement shall mean the onset of a physical or mental disability which
         prevents the Employee from performing the essential functions of the
         Employee's duties hereunder, which is expected to continue for 180 days
         or more, with any reasonable accommodation required by state and/or
         federal disability anti-discrimination laws, including, but not limited
         to, the Americans With Disabilities Act of 1990, as amended.

                  (c) CAUSE. The Company may immediately terminate the
         Employee's employment hereunder for Cause by delivering to the Employee
         a Notice of Termination so indicating. For purposes of this Employment
         Agreement, the Company shall have "Cause" to terminate the Employee's
         employment because of the Employee's criminal personal dishonesty or
         intentional misconduct in the course related to her employment with the
         Company, breach of fiduciary duty involving personal profit, failure to
         substantially perform her duties hereunder, conviction of, or plea of
         nolo contendere to, any criminal law, rule or regulation (other than
         traffic violations or misdemeanors) or breach of any material provision
         of this Employment Agreement.

                  (d) WITHOUT CAUSE. The Company shall have the right to
         terminate the Employee's employment under this Employment Agreement at
         any time without Cause (as defined in paragraph (c) of this Section 4)
         by delivery of a Notice of Termination specifying a date of termination
         at least thirty (30) days following delivery of such notice.

                  (e) VOLUNTARY TERMINATION. By not less than thirty (30) days
         prior written notice to the President, Employee may voluntarily
         terminate her employment hereunder.

                  (f) NOTICE OF TERMINATION. Any termination of the Employee's
         employment by the Company during the Term pursuant to paragraphs (b),
         (c) or (d) of this Section 4 shall be communicated by a Notice of
         Termination to the Employee. For purposes of this Employment Agreement,
         a "Notice of Termination" shall mean a written notice which shall
         indicate the specific termination provision in this Employment
         Agreement relied

                                       5
<PAGE>   6

         upon and in the case of any termination for Cause shall set forth in
         reasonable detail the facts and circumstances claimed to provide a
         basis for termination of the Employee's employment.

                  (g) DATE OF TERMINATION. The "Date of Termination" shall, for
         purposes of this Employment Agreement, mean: (i) if the Employee's
         employment is terminated by her death, the date of her death; (ii) if
         the Employee's employment is terminated on account of disability
         pursuant to Section 4(b) above, thirty (30) days after Notice of
         Termination is given (provided that the Employee shall not, during such
         30-day period, have returned to the performance of her duties on a
         full-time basis), (iii) if the Employee's employment is terminated by
         the Company for Cause pursuant to Section 4(c) above, the date
         specified in the Notice of Termination, (iv) if the Employee's
         employment is terminated by the Company without Cause, pursuant to
         Section 4(d) above, the date specified in the Notice of Termination,
         (v) if the Employee's employment is terminated voluntarily pursuant to
         Section 4(e) above, the date specified in the written notice delivered
         by the Employee to the Company as provided in Section 4(e) above, and
         (vi) if the Employee's employment is terminated by reason of an
         election by either party not to extend the Term, the last day of the
         then effective Term.

         5. COMPENSATION UPON TERMINATION OR DURING DISABILITY.

                  (a) DEATH. If the Employee's employment is terminated by
         reason of her death during the Term, the Employee's estate shall
         continue to receive installments of her then current Base Salary until
         the date of her death and shall receive any earned but unpaid
         Performance Incentive for any calendar quarter ending prior to the date
         of her death.

                  (b) DISABILITY. If the Employee's employment is terminated by
         reason of her disability during the Term, the Employee shall continue
         to receive installments of her then current Base Salary while actively
         at work and until the earlier of (i) the date of termination in
         accordance with Section 4(b) of this Employment Agreement or (ii) the
         date that short or long-term disability payments to the Employee
         commence under any plan or program then provided and funded by the
         Company. If the Employee's installments of Base Salary cease by reason
         of clause (ii) of the preceding sentence but the benefits payable under
         any such disability plan or program do not provide 100% replacement of
         the Employee's installments of Base Salary during such period, the
         Employee shall be paid at regular payroll intervals until the
         provisions of clause (i) of the preceding sentence becomes effective,
         an amount equal to the difference between the periodic installments of
         her then current Base Salary that would have otherwise been payable and
         the disability benefit paid from such disability plan or program. In
         the event of any such termination, the Employee shall also receive any
         earned but unpaid Performance Incentive for any calendar quarter prior
         to the Date of Termination. Upon termination due to death prior to a
         termination as specified in the preceding provisions of this paragraph
         (b), the payment provisions of this paragraph (b) shall no longer apply
         and Section 5(a) above shall apply.

                  (c) CAUSE. If the Employee's employment is terminated for
         Cause, the Employee shall continue to receive installments of her then
         current Base Salary only

                                       6
<PAGE>   7

         through the Date of Termination and the Employee shall not be entitled
         to receive any Performance Incentive (other than any earned but unpaid
         Performance Incentive for any prior calendar quarter), and shall not be
         eligible for any severance payment of any nature.

                  (d) WITHOUT CAUSE. If the Employee's employment is terminated
         without Cause, and such Notice of Termination is given within one (1)
         year after a Change of Control (as defined below) has occurred to the
         Company, the Employee shall continue to receive installments of her
         then current Base Salary until the Date of Termination and for one (1)
         year thereafter. In all other cases in which the Employee's employment
         shall be terminated without Cause, the Employee shall continue to
         receive installments of her then current Base Salary until the Date of
         Termination and for six (6) months thereafter. In all cases in which
         Employee's employment shall be terminated without Cause, the Employee
         shall also be entitled to receive any earned but unpaid Performance
         Incentive for any prior calendar quarter. A "Change of Control" for
         purposes of this Employment Agreement shall have the same meaning as
         that term is given in the most current Stock Plan of the Company in
         effect before the Date of Termination.

                  (e) EXPIRATION OF TERM. If the Employee's employment shall be
         terminated by reason of expiration of the Term (irrespective of which
         party elected not to extend the Term), the Employee shall continue to
         receive installments of her then current Base Salary until the Date of
         Termination and the Company shall pay the Employee any earned
         Performance Incentive for the last calendar quarter of the Term.

                  (f) VOLUNTARY TERMINATION. If the Employee's employment shall
         be terminated pursuant to Section 4(e) hereof, the Employee shall
         continue to receive installments of her then current Base Salary until
         the Date of Termination and the Employee shall not be entitled to
         receive any Performance Incentive (other than any earned but unpaid
         Performance Incentive for any calendar quarter ending prior to the Date
         of Termination), and shall not be entitled to any severance payment of
         any nature.

                  (g) NO FURTHER OBLIGATIONS AFTER PAYMENT. After all payments,
         if any, have been made to the Employee pursuant to the applicable
         provisions of paragraphs (a) through (f) of this Section 5, the Company
         shall have no further obligations to the Employee under this Employment
         Agreement other than the provision of any employee benefit plan
         required to be continued under applicable law or by its terms.

         6. DUTIES UPON TERMINATION. Upon the termination of Employee's
employment hereunder for any reason whatsoever (including but not limited to the
failure of the parties hereto to agree to the extension of this Employment
Agreement pursuant to Section 1 hereof), Employee shall promptly (a) comply with
her obligation to deliver a Compliance Certificate as provided in Section 2(c)
hereof, and (b) return to the Company any property of the Company or its
subsidiaries then in Employee's possession or control, including without
limitation, any Confidential Information (as defined in Section 7(d)(iii)
hereof) and whether or not constituting Confidential Information, any technical
data, performance information and reports (except for her own personnel
information), sales or marketing plans, documents or other records, and any
manuals, drawings, tape recordings, computer programs, discs, and any other
physical representations of any other information relating to the Company, its
subsidiaries or affiliates or to the Business (as defined in Section 7(d)(iv)
hereof) of the Company. Employee hereby

                                       7
<PAGE>   8

acknowledges that any and all of such documents, items, physical representations
and information are and shall remain at all times the exclusive property of the
Company.

         7. RESTRICTIVE COVENANTS.

                  (a) ACKNOWLEDGMENTS. Employee acknowledges that (i) her
         services hereunder are of a special, unique and extraordinary character
         and that her position with the Company will place her in a position of
         confidence and trust with the operations of the Company, its
         subsidiaries and affiliates (collectively, the "Res-Care Companies")
         and allows her access to Confidential Information, (ii) the Company has
         provided Employee with a unique opportunity as the Chief Financial
         Officer of the DPD Division of the Company, (iii) the nature and
         periods of the restrictions imposed by the covenants contained in this
         Section 7 are fair, reasonable and necessary to protect and preserve
         for the Company the benefits of Employee's employment hereunder, (iv)
         the Res-Care Companies would sustain great and irreparable loss and
         damage if Employee were to breach any of such covenants, (v) the
         Res-Care Companies conduct and are aggressively pursuing the conduct of
         their business actively in and throughout the entire Territory (as
         defined in paragraph (d)(ii) of this Section 7), and (vi) the Territory
         is reasonably sized because the current Business of the Res-Care
         Companies is conducted throughout such geographical area, the Res-Care
         Companies are aggressively pursuing expansion and new operations
         throughout such geographic area and the Res-Care Companies require the
         entire Territory for profitable operations.

                  (b) CONFIDENTIALITY AND NON-DISPARAGEMENT COVENANTS. Having
         acknowledged the foregoing, Employee covenants that without limitation
         as to time, (i) commencing on the Execution Date, she will not directly
         or indirectly disclose or use or otherwise exploit for her own benefit,
         or the benefit of any other Person (as defined in paragraph (d)(v) of
         this Section 7), except as may be necessary in the performance of her
         duties hereunder, any Confidential Information, and (ii) commencing on
         the Date of Termination, she will not disparage or comment negatively
         (except as required by law or in connection with any judicial or
         administrative proceedings or pursuant to any lawfully issued
         subpoenas) about any of the Res-Care Companies, or their respective
         officers, directors, employees, policies or practices, and she will not
         discourage anyone from doing business with any of the Res-Care
         Companies and will not encourage anyone to withdraw their employment
         with any of the Res-Care Companies.

                  (c) COVENANTS. Having acknowledged the statements in Section
         7(a) hereof, Employee covenants and agrees with the Res-Care Companies
         that (without the prior written approval from the Company) she will
         not, directly or indirectly, from the Execution Date until the Date of
         Termination, and for a period of one (1) year thereafter, directly or
         indirectly (i) offer employment to, hire, solicit, divert or
         appropriate to herself or any other Person, any business or services
         (similar in nature to the Business) of any person who was an employee
         or an agent of any of the Res-Care Companies at any time during the
         last six (6) months of Employee's employment hereunder; or (ii) own,
         manage, operate, join, control, assist, participate in or be connected
         with, directly or indirectly, as an officer, director, shareholder,
         partner, proprietor, employee, agent, consultant, independent
         contractor or otherwise, any Person which is, at the time, directly or
         indirectly, engaged in the Business of the Res-Care Companies within
         the Territory. The

                                       8
<PAGE>   9

         Employee further agrees that from the Execution Date until the Date of
         Termination, she will not undertake any planning for or organization of
         any business activity that would be competitive with the Business.

                  (d) DEFINITIONS. For purposes of this Employment Agreement:

                           (i) For purposes of this Section 7, "termination of
                  Employee's employment" shall include any termination pursuant
                  to paragraphs (b), (c), (d) and (e) of Section 5 hereof, the
                  termination of such Employee's employment by reason of the
                  failure of the parties hereto to agree to the extension of
                  this Agreement pursuant to Section 1 hereof or the voluntary
                  termination of Employee's employment hereunder.

                           (ii) The "Territory" shall mean the forty-eight (48)
                  contiguous states of the United States, the United States
                  Virgin Islands, Puerto Rico and all of the Provinces of
                  Canada.

                           (iii) "Confidential Information" shall mean any
                  business information relating to the Res-Care Companies or to
                  the Business (whether or not constituting a trade secret),
                  which has been or is treated by any of the Res-Care Companies
                  as proprietary and confidential and which is not generally
                  known or ascertainable through proper means. Without limiting
                  the generality of the foregoing, so long as such information
                  is not generally known or ascertainable by proper means and is
                  treated by the Res-Care Companies as proprietary and
                  confidential, Confidential Information shall include the
                  following information regarding any of the Res-Care Companies:

                                    (1)     any patent, patent application,
                                            copyright, trademark, trade name,
                                            service mark, service name,
                                            "know-how" or trade secrets;

                                    (2)     customer lists and information
                                            relating to (i) any client of any of
                                            the Res-Care Companies or (ii) any
                                            client of the operations of any
                                            other Person for which operations
                                            any of the Res-Care Companies
                                            provides management services;

                                    (3)     supplier lists, pricing policies,
                                            consulting contracts and competitive
                                            bid information;

                                    (4)     records, compliance and/or
                                            operational methods and Company
                                            policies and procedures, including
                                            manuals and forms;

                                    (5)     marketing data, plans and
                                            strategies;

                                    (6)     business acquisition, development,
                                            expansion or capital investment plan
                                            or activities;

                                       9
<PAGE>   10

                                    (7)     software and any other confidential
                                            technical programs;

                                    (8)     personnel information, employee
                                            payroll and benefits data; (except
                                            for Employee's own personnel
                                            records)

                                    (9)     accounts receivable and accounts
                                            payable;

                                    (10)    other confidential financial
                                            information, including financial
                                            statements, budgets, projections,
                                            earnings and any unpublished
                                            financial information; and

                                    (11)    correspondence and communications
                                            with outside parties.

                           (iv) The "Business" of the Res-Care Companies shall
                  mean the business of providing youth treatment or services,
                  services to persons with mental retardation and other
                  developmental disabilities, including but not limited to
                  persons who have been dually diagnosed, services to persons
                  with acquired brain injuries, training services, or providing
                  management and/or consulting services to third parties
                  relating to the foregoing.

                           (v) The term "Person" shall mean an individual, a
                  partnership, an association, a corporation, a trust, an
                  unincorporated organization, or any other business entity or
                  enterprise.

                  (e) INJUNCTIVE RELIEF, INVALIDITY OF ANY PROVISION. Employee
         acknowledges that her breach of any covenant contained in this Section
         7 will result in irreparable injury to the Res-Care Companies and that
         the remedy at law of such parties for such a breach will be inadequate.
         Accordingly, Employee agrees and consents that each of the Res-Care
         Companies in addition to all other remedies available to them at law
         and in equity, shall be entitled to seek both preliminary and permanent
         injunctions to prevent and/or halt a breach or threatened breach by
         Employee of any covenant contained in this Section 7. If any provision
         of this Section 7 is invalid in part or in whole, it shall be deemed to
         have been amended, whether as to time, area covered, or otherwise, as
         and to the extent required for its validity under applicable law and,
         as so amended, shall be enforceable. The parties further agree to
         execute all documents necessary to evidence such amendment.

                  (f) ADVICE TO FUTURE EMPLOYERS. If Employee, in the future,
         seeks or is offered employment by any other Person, she shall provide a
         copy of this Section 7 to the prospective employer prior to accepting
         employment with that prospective employer.

         8. ENTIRE AGREEMENT; MODIFICATION; WAIVER. This Employment Agreement
constitutes the entire agreement between the parties pertaining to the subject
matter contained in them and supersedes all prior and contemporaneous
agreements, representations, and understandings of the parties. No supplement,
modification, or amendment of this Employment Agreement shall be binding unless
executed in writing by all parties hereto (other than by reason of the
prospective modification of the Incentive Program by the Company or as provided
in the next to last sentence of Section 7(e) hereof). No waiver of any of the
provisions of this

                                       10
<PAGE>   11

Employment Agreement will be deemed, or will constitute, a waiver of any other
provision, whether or not similar, nor will any waiver constitute a continuing
waiver. No waiver will be binding unless executed in writing by the party making
the waiver.

         9. SUCCESSORS AND ASSIGNS; ASSIGNMENT. This Employment Agreement shall
be binding on, and inure to the benefit of, the parties hereto and their
respective heirs, executors, legal representatives, successors and assigns;
PROVIDED, HOWEVER, that this Employment Agreement is intended to be personal to
the Employee and the rights and obligations of the Employee hereunder may not be
assigned or transferred by her.

         10. NOTICES. All notices, requests, demands and other communications
required or permitted to be given or made under this Employment Agreement, or
any other agreement executed in connection therewith, shall be in writing and
shall be deemed to have been given on the date of delivery personally or upon
deposit in the United States mail postage prepaid by registered or certified
mail, return receipt requested, to the appropriate party or parties at the
following addresses (or at such other address as shall hereafter be designated
by any party to the other parties by notice given in accordance with this
Section):

                  TO THE COMPANY:
                  --------------

                  Res-Care, Inc.
                  10140 Linn Station Road
                  Louisville, Kentucky 40223
                  Attn:    Ronald G. Geary,
                           Chairman, President and Chief Executive Officer

                  TO THE EMPLOYEE:
                  ---------------

                  Katherine W. Gilchrist
                  53 High Gate Drive
                  Avon, Connecticut  06001

         11. EXECUTION IN COUNTERPARTS. This Employment Agreement may be
executed in multiple counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same document.

         12. FURTHER ASSURANCES. The parties each hereby agree to execute and
deliver all of the agreements, documents and instruments required to be executed
and delivered by them in this Employment Agreement and to execute and deliver
such additional instruments and documents and to take such additional actions as
may reasonably be required from time to time in order to effectuate the
transactions contemplated by this Employment Agreement.

         13. SEVERABILITY OF PROVISIONS. The invalidity or unenforceability of
any particular provision of this Employment Agreement shall not affect the other
provisions hereof and this Employment Agreement shall be construed in all
respects as if such invalid or unenforceable provisions were omitted.

                                       11
<PAGE>   12

         14. GOVERNING LAW; JURISDICTION; VENUE. This Employment Agreement is
executed and delivered in, and shall be governed by, enforced and interpreted in
accordance with the laws of, the Commonwealth of Kentucky. The parties hereto
agree that the federal or state courts located in Kentucky shall have the
exclusive jurisdiction with regard to any litigation relating to this Employment
Agreement and that venue shall be proper only in Jefferson County, Kentucky, the
location of the principal office of the Company.

         15. TENSE; CAPTIONS. In construing this Employment Agreement, whenever
appropriate, the singular tense shall also be deemed to mean the plural, and
vice versa, and the captions contained in this Employment Agreement shall be
ignored.

         16. SURVIVAL. The provisions of Sections 5, 6 and 7 hereof shall
survive the termination, for any reason, of this Employment Agreement, in
accordance with their terms.

         IN WITNESS WHEREOF, the parties hereto have executed this Employment
Agreement on the day and year set forth above.

                                         RES-CARE, INC.

                                         By: -----------------------------------
                                             Ronald G. Geary
                                             Chairman, President and Chief
                                             Executive Officer

                                         ---------------------------------------
                                         Katherine W. Gilchrist

                                       12

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