Document:

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                                                                   Exhibit 10.10

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Employment Agreement") is dated this 14th
day of February, 2001, between RES-CARE, INC., a Kentucky corporation (the
"Company"), and RALPH G. GRONEFELD, JR. (the "Employee").

         RECITALS:

         WHEREAS, the Employee has been employed by the Company since June 1995,
and the services of the Employee, his managerial experience, and his knowledge
of the affairs of the Company are of great value to the Company;

         WHEREAS, the Company and the Employee entered into an Employment
Agreement dated as of January 1, 1998, as amended on August 15, 1998
(collectively, the "Prior Agreement");

         WHEREAS, the initial term of the Prior Agreement expired on December
31, 2000;

         WHEREAS, the Employee possesses substantial knowledge of the business
and affairs of the Company, its policies, methods, personnel and plans for the
future;

         WHEREAS, the Board of Directors of the Company recognizes that the
Employee's contribution to the growth and success of the Company has been
substantial and wishes to offer an inducement to the Employee to remain in the
employ of the Company; and

         WHEREAS, the Company and the Employee desire to supersede the Prior
Agreement, effective on the Commencement Date (as defined below), by executing
this Employment Agreement and agreeing to be bound by the terms thereof.

         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 January 1, 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.

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For purposes of this Employment Agreement, the term "Term" shall mean the
Initial Term plus all Additional Terms.

         2.       DUTIES.

                  (a) TEMPORARY DUTIES AS CHIEF FINANCIAL OFFICER; EMPLOYMENT AS
         EXECUTIVE VICE PRESIDENT OF OPERATIONS OF DIVISION FOR PERSONS WITH
         DISABILITIES. During the period January 1, 2001 through the effective
         date of the Company's Form 10-K as filed with the Securities and
         Exchange Commission, the Employee shall continue to serve as the Chief
         Financial Officer of the Company. During such period, 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") perform such other
         duties and exercise such powers over and with regard to the financial
         matters of the Company and its subsidiaries as are presently being
         performed and exercised by him and such additional duties which are
         similar in nature and responsibility to those presently being performed
         by the Employee as may be prescribed from time to time by the Chairman
         or the Board. During the Term (including the period the Employee
         continues to serve as Chief Financial Officer), the Employee shall
         serve as the Executive Vice President of Operations of the Division for
         Persons with Disabilities of the Company. The Employee shall, subject
         to the supervision of the President of the Division for Persons with
         Disabilities of the Company ("President"), be responsible for the
         day-to-day management and oversight of the Company's Division for
         Persons with Disabilities. In addition, during the Term, the Employee's
         duties shall also include 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) EMPLOYEE CERTIFICATION OF ELIGIBILITY. 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 (ResCare Annual
         Employment Re-Certification Eligibility Form) confirming, to the best
         of the Employee's knowledge, that the Employee remains eligible for
         employment with the Company. This same certificate will certify that
         the Employee has complied with applicable laws, regulations and Company
         policies regarding the provision of services to clients and billings to
         its paying agencies, Company policies on training, Drug and
         Alcohol-Free Program, Prohibition of Harassment, Discrimination and
         Violence in the Workplace. This statement shall state that the Employee
         is not aware of any such violation by other

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         employees, independent contractors, vendors, or other individuals
         performing services for the Company and its subsidiaries that they did
         not report as appropriate.

         3.       COMPENSATION AND BENEFITS.

                  (a) BASE SALARY. For the period immediately prior to the
         Commencement Date, the Employee's Base Salary under the Prior Agreement
         was an annual amount of $159,185 (the "Previous Salary"). If the Prior
         Agreement had been automatically extended effective January 1, 2001,
         the Employee would have been entitled to an increase in the Previous
         Salary as provided in the second literary paragraph of Section 3 of the
         Prior Agreement, which increase is not yet susceptible of calculation.
         Such Previous Salary, as it would have been so increased, is
         hereinafter referred to as the "Initial Base Salary". The Company shall
         pay to the Employee during the Term an annual salary (the "Base
         Salary"), which initially shall be equal to the Initial Base Salary.
         Commencing effective March 1, 2001, the Base Salary shall be increased
         to $210,000. 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 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
         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) OPERATIONAL INCENTIVE PROGRAM. During the Term, the
         Employee shall participate in the Operational Incentive Program
         established by the Chairman on an annual basis (the "Incentive
         Program"). A copy of such Incentive Program that has been established
         for the calendar year 2001 is attached hereto as Exhibit A. Any
         modification to the terms of the Incentive Program by the Company shall
         be effective prospectively only and a copy of such modified program
         shall be furnished to the Employee prior to the effective date of such
         modification. 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 operational 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 "Operational Incentive."

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                  (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. The Company
         reserves the right to amend, modify or terminate in their entirety any
         of such programs and plans.

                  (d) STOCK OPTION GRANT. As an inducement for the execution of
         this Employment Agreement by the Employee, on March 8, 2001 (the "Grant
         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
         employees (the "Stock Plan"). Twenty percent (20%) of such stock
         options shall vest and be exercisable on the Grant 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 Grant 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 Grant Date.

                  (e) 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.

                  (f) 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.

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         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 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,
         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,

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         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.

         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 Operational 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 Operational 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 Operational Incentive
         (other than any earned but unpaid Operational 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 Operational Incentive for any calendar quarter ending prior
         to the Date of Termination.

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                  (e) EXPIRATION OF TERM. If the Employee's employment shall be
         terminated by reason of expiration of the Term by reason of Employee's
         election not to extend the Term, the Employee shall continue to receive
         installments of his then current Base Salary until the Date of
         Termination and shall also be entitled to receive any earned but unpaid
         Operational Incentive for any calendar quarter ending prior to the Date
         of Termination. If the Employee's employment shall be terminated by
         reason of expiration of the Term by reason of the Company's election
         not to extend the Term, 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 Operational Incentive for any calendar
         quarter ending prior to the Date of Termination.

                  (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 Operational Incentive (other than any earned but unpaid
         Operational 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 an executed exit interview document as provided in
accordance with Company policy, 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.

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         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 Executive Vice
         President of Operations of the Company's Division for Persons with
         Disabilities, (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
         (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:

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                           (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:

                                    (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;

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                                    (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, 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
and its Exhibit constitute the entire agreement between the parties pertaining
to the subject matter contained in them and supersede all prior and
contemporaneous agreements, representations, and understandings of the parties,
including but not limited to the Prior Agreement. 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,

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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

                  To the Employee:
                  ----------------

                  Ralph G. Gronefeld, Jr.
                  4106 Willow Reed Place
                  Jeffersontown, Kentucky 40299

         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.

                                       11
<PAGE>   12

         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

                                             -----------------------------------
                                             Ralph G. Gronefeld, Jr.

                                       12
<PAGE>   13
                                    EXHIBIT A
                                    ---------

                          OPERATIONAL INCENTIVE PROGRAM
                           FOR RALPH G. GRONEFELD, JR.

The following is the incentive plan for Ralph G. Gronefeld, Jr., Executive Vice
President of Operations of the Division for Persons with Disabilities
("Gronefeld"), for the year 2001.

The program is based on what the Company and Gronefeld feel are the most
important controllables of Gronefeld.

This part of the incentive is for specific operation performance. The amounts
here relate to Gronefeld's eligibility. To be eligible, the target for the
entire Division (on average) must be met. If the operation does not hit
financial target, Gronefeld is still eligible, but at a reduced rate, if within
the identified range.

-------------------------------------------------------------------------------
Category
-------------------------------------------------------------------------------

1. ResCare Quality     Documentation provided that program requirements were
   Way                 implemented during the quarter in all of the
                       Division. (100% compliance required)
-------------------------------------------------------------------------------
2. Best In Class       85% average for entire Division (Q-1 & Q-2 2001)
                       95% average for entire Division (Q-3 & Q-4 2001)
                       75% average for entire Division (Q-3 on) on Level 2
-------------------------------------------------------------------------------
3. External Reviews    No punitive action enforced, no fines,
                       moratoriums, conditions of participation out or
                       vendor holds during quarter for the entire Division.
-------------------------------------------------------------------------------
4. DSO                 Meet the cumulative number of all operations in the
                       Division for the quarter.
-------------------------------------------------------------------------------

Each category will contribute 25% toward the potential financial incentive.

The  amount  identified  is: 40% of salary  max.  This will be  calculated  on a
quarterly basis, so the annual maximum would be 40% total for the year.

If the Division does not meet financial target, but is at 90% or better of
target, Gronefeld is eligible for 40% of the maximum potential financial
incentive.<PAGE>   1

                                                                   Exhibit 10.11

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

         THIS EMPLOYMENT AGREEMENT ("Employment Agreement") is dated as of the
1st day of August, 2000, between RES-CARE, INC., a Kentucky corporation (the
"Company"), and VINCENT F. DORAN (the "Employee").

         RECITALS:

         WHEREAS, the Company and the Employee entered into an Employment
Agreement dated October 9, 1997, as amended by that certain letter agreement
dated October 1, 1998 (collectively, the "Prior Agreement");

         WHEREAS, the initial term of the Prior Agreement is scheduled to expire
September 30, 2000;

         WHEREAS, since October 1, 1997, the Employee has served as the
President of Res-Care's Job Corps Operations;

         WHEREAS, the Company is committed to continuing its full support of its
Job Corps Operations to maintain its leadership position within the Job Corps
community and superiority in quality of operational and financial performance,
and is committed to initiating processes to achieve this goal with full
compliance with Department of Labor regulations and the Company's policies and
procedures;

         WHEREAS, the Company is further committed to expand the scope of its
services to other special needs youth through its Division of Youth Services to
strengthen its leadership position and superiority in quality of operational and
financial performance, and is committed to initiating processes to achieve this
goal in full compliance with all governmental regulations and the Company's
policies and procedures;

         WHEREAS, the Company and the Employee desire that Employee's employment
with the Company continue with certain modifications in the compensation of the
Employee and certain contemplated changes in the duties and responsibilities of
Employee; and

         WHEREAS, the Company and Employee desire to supersede the Prior
Agreement, effective August 1, 2000, by executing this Employment Agreement and
agreeing to be bound by the terms thereof.

         AGREEMENT:

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

<PAGE>   2

         1. EMPLOYMENT AND TERM; ANNOUNCEMENT. 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 August 1, 2000,
and ending on July 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
(August 1 through July 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 one hundred eighty (180) 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. The Company will publicly announce the execution of this Employment
Agreement in an appropriate forum at a time mutually agreed to by the parties
hereto but in no event later than thirty (30) days after the execution hereof.

         2. DUTIES.

                  (a) EMPLOYMENT AS PRESIDENT OF THE DIVISION FOR YOUTH
         SERVICES. The Employee shall serve as the President of the Division for
         Youth Services of the Company. The Employee shall, subject to the
         supervision and control of the President, perform such duties and
         exercise such powers over and with regard to the management of the
         Company's Division for Youth Services as may be prescribed from time to
         time by the President, including, without limitation, serving as a
         member of the ResCare Resource Center Leadership Team and serving as an
         officer or director of one or more subsidiaries or affiliates of the
         Company, if elected to such positions, without any further salary or
         other compensation. The Company's Division for Youth Services currently
         includes the Company's Job Corps Operations, the Company's wholly owned
         subsidiary Youthtrack, Inc. and the Company's Alternative Youth
         Services Operations.

                  (b) TIME AND EFFORT. The Employee shall devote 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. The Employee's principal
         office shall not be relocated outside the metropolitan Washington D.C.
         area without the prior written consent of the parties hereto.

         3. COMPENSATION.

                  (a) BASE SALARY. The Company shall pay to the Employee during
         the Term a fixed, annual salary (the "Base Salary"), which initially
         shall be $250,000. The Base

                                       2
<PAGE>   3

         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 the first day of each
         year of the Term, commencing on August 1, 2001, by the greater of (x)
         five percent (5%) or (y) the percentage by which the Consumer Price
         Index for all Urban Consumers (CPI-U) for Washington-Baltimore All
         Items, 1982-1984=100, as published by the Bureau of Labor Statistics
         (the "CPI") established for the month of July immediately preceding the
         date on which the adjustment is to be made exceeds the CPI published
         for the month of July of the 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) RETENTION BONUS. In April 2000, the Company advanced the
         sum of $45,000 to Employee. Not later than December 15, 2000, the
         Company will treat such advance, plus the sum of $15,000 (the
         "Additional Amount"), as a retention bonus to the Employee. The
         Additional Amount shall be withheld by the Company and utilized by it
         and paid over to federal, state and local taxing authorities for the
         account of Employee to satisfy the Company's withholding obligations
         with respect to such retention bonus in accordance with applicable law.

                  (c) REGULAR ANNUAL BONUS.

                           (i) The Employee's regular annual bonus shall be
                  determined on a fiscal year basis for the period ending each
                  June 30 of the Term. The bonus calculated as provided in this
                  paragraph (c) shall be payable on or before August 1 of each
                  year during the Term for the preceding year. The Company's
                  Board of Directors may determine that any award under this
                  paragraph (c) shall be payable in cash, or by agreement of
                  Employee and the Company, in Company stock, options for
                  Company stock, or other property. The Employee's bonus as
                  determined under this paragraph (c) shall be hereinafter
                  referred to as the "Regular Annual Bonus." The scale of
                  performance in each case as set forth below shall include
                  financial measures as agreed to by the parties based on a June
                  30, 2000 actual (not budgeted) baseline, which baseline shall
                  be rebased annually, and compliance measures as agreed to by
                  the parties on the basis of OMS and QMS outcome measures.

                           (ii) Commencing July 1, 2000, the Employee's Regular
                  Annual Bonus shall be the sum of two (2) components. The first
                  component shall be attributable to the performance of the
                  Company's Job Corps Operations, which component shall be equal
                  to two-thirds (2/3) of the Employee's then applicable Base
                  Salary multiplied by a percentage which is a minimum of twenty
                  percent (20%) and a maximum of thirty-five percent (35%) (with
                  the actual percentage to be determined within such range based
                  upon a scale of performance mutually agreed

                                       3
<PAGE>   4

                  to by the President and the Employee on an annual basis). The
                  second component shall be attributable to the performance of
                  the operations of Youthtrack, Inc., the Alternative Youth
                  Services Operations and any other operations of the Company's
                  Division for Youth Services (other than the Company's Job
                  Corps Operations) (hereinafter, the "Other Youth Services
                  Operations"), which component shall be equal to one-third
                  (1/3) of the Employee's then applicable Base Salary multiplied
                  by a percentage (the "Other Percentage") determined in the
                  following manner:

                                    (A) The Other Percentage shall be zero if
                           the performance of the Other Youth Services
                           Operations shall not equal or exceed ninety percent
                           (90%) of their mutually agreed financial and
                           compliance targets for the period the bonus is
                           determined.

                                    (B) The Other Percentage shall be twenty
                           percent (20%) if the performance of the Other Youth
                           Services Operations shall equal or exceed ninety
                           percent (90%) but be less than one hundred percent
                           (100%) of their mutually agreed financial and
                           compliance targets for the period the bonus is
                           determined.

                                    (C) The Other Percentage shall be twenty
                           five percent (25%) if the performance of the Other
                           Youth Services Operations shall equal or exceed one
                           hundred percent (100%) but be less than one hundred
                           ten percent (110%) of their mutually agreed financial
                           and compliance targets for the period the bonus is
                           determined.

                                    (D) The Other Percentage shall be
                           thirty-five percent (35%) if the performance of the
                           Other Youth Services Operations shall equal or exceed
                           one hundred ten percent (110%) of their mutually
                           agreed financial and compliance targets for the
                           period the bonus is determined.

                  The financial targets for the Other Youth Services Operations
                  shall be based upon the aggregate facility contribution of the
                  Other Youth Services Operations and shall be mutually agreed
                  to by the Employee and the President on an annual basis, not
                  to exceed 110% of the actual (not budgeted) aggregate facility
                  contribution of the Youth Services Operations for the prior
                  twelve (12) month period. The compliance targets for the Other
                  Youth Services Operations shall be as agreed to by the parties
                  on the basis of applicable governmental requirements. As set
                  forth in this subparagraph (ii), the relative weighting of the
                  components of the Regular Annual Bonus between the Job Corps
                  Operations and the Other Youth Services Operation shall be
                  initially two-thirds (2/3) and one-third (1/3), respectively,
                  which corresponds to such operations' relative facility
                  contribution as budgeted by the Company for the calendar year
                  2000. Commencing for the twelve (12) month period ending June
                  30, 2002, the relative weighting of such components for each
                  twelve (12) month period for which the Regular Annual Bonus is
                  determined shall be adjusted to reflect such operations'
                  relative facility

                                       4
<PAGE>   5

                  contribution as budgeted by the Company for the calendar year
                  commencing on the first day of January immediately preceding
                  the commencement of such twelve (12) month period. If the
                  parties cannot agree on the performance figures on the basis
                  of which the bonus is to be calculated, the matter will be
                  resolved by decision of a disinterested third party jointly
                  selected by the parties.

                  (d) NEW JOB CORPS CONTRACT BONUS. In addition to the bonuses
         determined as provided in paragraphs (b) and (c) of this Section 3, the
         Employee shall be entitled to a bonus based upon the award of
         additional Job Corps contracts to the Company (the "New Business
         Bonus"). The New Business Bonus shall be equal to ten percent (10%) of
         the first year base fee (as defined in the applicable new Job Corps
         contract, such as the currently proposed Gary Job Corps contract)
         payable to the Company on any new Job Corps contract awarded to the
         Company by the Department of Labor during the Term (excluding current
         operations and renewal and/or re-awards of existing Job Corps contracts
         of the Company) (hereinafter a "New Job Corps Contract"). The New
         Business Bonus shall be earned and payable in the following manner. The
         New Business Bonus shall be earned on the date of commencement of the
         New Job Corps Contract for which it is determined but shall not be
         payable to Employee until the first anniversary of such date of
         commencement, subject to the provisions of Section 5 hereof.
         Notwithstanding the provisions of the preceding sentence, to the extent
         that any New Business Bonus is earned by and payable to Employee and is
         attributable to the award of a Job Corps contract to the Company for
         the Gary Job Corps Center, located in San Marcos, Texas, such portion
         of the New Business Bonus shall be paid fifty percent (50%) on the date
         which is six (6) months after the date of commencement of such new
         contract and fifty percent (50%) on the first anniversary of the date
         of commencement of such new contract. The New Business Bonus payable
         with respect to any New Job Corps Contract shall be reduced (but not
         below zero) by ten percent (10%) of the annual base fee (as defined in
         the applicable Job Corps contract which has been terminated or has
         expired) previously payable to the Company on any existing or future
         Job Corps contract awarded to the Company which Jobs Corps contract is
         either terminated by the Department of Labor during the Term or has
         expired during the Term and is not immediately renewed or re-awarded to
         the Company by the Department of Labor. The reduction of the New
         Business Bonus by reason of the immediately preceding sentence shall
         apply only once for each Job Corps contract which is terminated or
         expires without renewal and shall apply to any New Business Bonus
         payable within one (1) year after the date of termination or expiration
         thereof. An example of the calculation of the New Business Bonus is
         attached hereto as Exhibit A.

                  (e) PARTICIPATION IN BENEFIT, INSURANCE, VACATION AND SICK
         LEAVE PLANS. Employee shall be entitled to participate in the standard
         Company benefit package which is to be implemented generally as
         reflected in Company's employee guides currently in effect, as modified
         by the Company from time to time, subject to usual and customary
         waiting and/or vesting periods. Employee acknowledges that the Company
         periodically modifies its standard employee benefit package and the
         Company reserves the right to amend or modify in their entirety any of
         the Company's fringe benefit programs. During each twelve (12) month
         period of the Initial Term, Employee will be entitled to four (4)

                                       5
<PAGE>   6

         weeks of vacation. During each of the first two (2) Additional Terms
         (if effective), Employee will be entitled to five (5) weeks of
         vacation. During each of the remaining Additional Terms (if effective),
         Employee will be entitled to six (6) weeks of vacation. All vacation
         may be utilized as earned. Employee will accrue ten (10) days of sick
         leave during each year of employment. The Company shall pay that
         portion of the reasonable and customary costs of an annual executive
         physical at the Mayo Clinic or other mutually agreeable medical
         facility certified by the American Medical Association which is not
         paid by the Employee's health insurance coverage (whether provided by
         the Company or Employee's spouse's employer).

                  (f) PARTICIPATION IN STOCK OPTION PLAN. Employee shall be
         entitled to participate in the Company stock option plan which is
         applicable to its managerial employees. In addition, as an additional
         inducement for the execution of this Employment Agreement by Employee,
         effective August 1, 2000, the Company shall grant to Employee options
         to purchase 50,000 shares of Company common stock. Provided Employee
         shall continue to be employed hereunder, any stock options granted to
         Employee pursuant to this paragraph (f) shall vest and be exercisable
         twenty percent (20%) on the date of grant and twenty percent (20%) on
         each anniversary of the grant thereof. Any stock options which shall
         not be vested at the effective date of termination of Employee's
         employment hereunder shall expire. 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 respective date of grant.

                  (g) PARTICIPATION IN RETIREMENT AND PROFIT SHARING PLANS.
         Employee shall be eligible to participate in any retirement and/or
         profit sharing plans applicable to the Company's managerial employees,
         as modified by the Company from time to time, subject to customary
         waiting and vesting periods.

                  (h) AUTOMOBILE ALLOWANCE. Employee shall receive a monthly
         automobile allowance equal to the maximum monthly automobile allowance
         under the Federal Administrative Regulations for Job Corps.

                  (i) PAYMENT OF CERTAIN ATTORNEY'S FEES. Within thirty (30)
         days after the receipt of an invoice therefor, the Company shall pay
         one-half (1/2) of the attorney's fees of Employee which have been
         incurred by him in connection with the negotiation of this Employment
         Agreement, which obligation of the Company shall in no event exceed the
         sum of $3,000.

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

                                       6
<PAGE>   7

                  (k) 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. If, as a result of the Employee's incapacity
         due to physical or mental illness, the Employee shall have been absent
         from his duties hereunder on a full-time basis for 180 consecutive
         calendar days, and within thirty (30) days after written Notice of
         Termination is given (which may occur no earlier than thirty (30) days
         before, but at any time after, the end of such 180-day period), the
         Employee shall not have returned to the performance of his duties
         hereunder on a full-time basis, the Company may terminate the
         Employee's employment hereunder.

                  (c) CAUSE. The Company may terminate the Employee's employment
         hereunder for Cause. For purposes of this Employment Agreement, the
         Company shall have "Cause" to terminate the Employee's employment
         because of the Employee's (i) personal dishonesty, (ii) intentional
         misconduct, (iii) breach of fiduciary duty involving personal profit,
         (iv) failure to perform his duties hereunder, (v) conviction of, or
         plea of nolo contendere to, any felony, (vi) conviction of, or plea of
         nolo contendere to any other law, rule or regulation which would
         disqualify the Company for any contract or result in the termination of
         any contract of the Company, or (vii) breach of any provision of this
         Employment Agreement.

                  (d) WITHOUT CAUSE. By appropriate action of the President or
         the Board of Directors of the Company, the Company shall have the right
         to terminate the Employee's

                                       7
<PAGE>   8

         employment under this Employment Agreement at any time without Cause
         (as defined in Subsection 4(c)).

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

                  (f) NOTICE OF TERMINATION. Any termination during the term of
         this Employment Agreement of the Employee's employment hereunder (other
         than termination pursuant to Section 4(a) above) shall be communicated
         by written Notice of Termination to the Employee hereto (except in the
         case of termination as described in Section 4(e) above written Notice
         of Termination shall be delivered by the Employee). For purposes of
         this Employment Agreement, a "Notice of Termination" shall mean a
         notice which shall indicate the specific termination provision in this
         Employment Agreement relied upon and shall set forth in reasonable
         detail the facts and circumstances claimed to provide a basis for
         termination of the Employee's employment under the provision so
         indicated.

                  (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, thirty (30) days after Notice of Termination is
         given, (v) if the Employee's employment is terminated voluntarily
         pursuant to Section 4(e) above, the date specified in the Notice of
         Termination, 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 shall be terminated by
         reason of his death, the Employee shall continue to receive his full
         Base Salary until the date of his death, his Regular Annual Bonus,
         prorated based upon the number of full months that have elapsed from
         the immediately preceding July 1 until the date of his death (plus any
         earned but unpaid Regular Annual Bonus for a prior period), and any
         earned and payable New Business Bonus.

                  (b) DISABILITY. During any period that the Employee fails to
         perform his duties hereunder as a result of incapacity due to physical
         or mental illness, the Employee shall continue to receive his full Base
         Salary until the Date of Termination, shall be entitled to receive his
         Regular Annual Bonus, prorated based upon the number of full months
         that have elapsed from the immediately preceding July 1 until the Date
         of

                                       8
<PAGE>   9

         Termination (plus any earned but unpaid Regular Annual Bonus for a
         prior period) and shall be entitled to receive any earned and payable
         New Business Bonus. Upon termination due to death prior to a
         termination as specified in the preceding sentence, Section 5(a) above
         shall apply.

                  (c) CAUSE. If the Employee's employment shall be terminated
         for Cause, the Company shall, through the Date of Termination, continue
         to pay the Employee his full Base Salary but the Employee shall not be
         entitled to receive his Regular Annual Bonus (other than any earned but
         unpaid Regular Annual Bonus for a prior period) or any New Business
         Bonus, and shall not be eligible for any severance payment of any
         nature.

                  (d) WITHOUT CAUSE. If the Employee's employment shall be
         terminated without Cause, and such Notice of Termination shall have
         been given within one (1) year after a Change of Control (as defined
         below) shall be applicable to the Company, the Employee shall continue
         to receive his full Base Salary until the Date of Termination and for
         fifteen (15) months after the Date of Termination. In all other cases
         in which the Employee's employment shall be terminated without Cause,
         the Employee shall continue to receive his full Base Salary until the
         Date of Termination and for six (6) months after the Date of
         Termination. In all cases in which Employee's employment shall be
         terminated without Cause, the Employee shall also be entitled to
         receive his Regular Annual Bonus, prorated based upon the number of
         full months that have elapsed from the immediately preceding July 1
         until the Date of Termination (plus any earned but unpaid Regular
         Annual Bonus for a prior period) and shall be entitled to receive any
         earned and payable New Business Bonus. A "Change of Control" shall be
         applicable to the Company --

                           (i) if any person shall acquire more than fifty
                  percent (50%) of the common capital stock of the Company
                  through a tender offer, exchange offer or otherwise;

                           (ii) if the Company shall be a party to a binding
                  agreement to any merger, consolidation or reorganization in
                  which any person who on the date hereof does not own more than
                  ten percent (10%) of the issued and outstanding common capital
                  stock of the Company acquires, beneficially or of record, more
                  than fifty percent (50%) of such stock; or

                           (iii) there shall be a sale of all or substantially
                  all of the assets of the Company or a sale of all of the
                  Company's Job Corps Operations.

                  (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 Company shall, through the
         Date of Termination, continue to pay the Employee his full Base Salary
         and the Company shall pay the Employee his Regular Annual Bonus,
         prorated based upon the number of full months that have elapsed from
         the immediately preceding July 1 until the Date of Termination and
         shall pay any earned but unpaid New Business Bonus.

                                       9
<PAGE>   10

                  (f) VOLUNTARY TERMINATION. If the Employee's employment shall
         be terminated pursuant to Section 4(e) hereof, the Company shall,
         through the Date of Termination, continue to pay the Employee his full
         Base Salary but the Employee shall not be entitled to receive his
         Regular Annual Bonus (other than any earned but unpaid Regular Annual
         Bonus for a period), or any unpaid New Business Bonus, 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 any 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 benefits required to be continued under
         applicable law.

         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 2 hereof), Employee shall promptly return to the
Company 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, rolodexes, 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 area 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 President of the
         Company's Division for Youth Services, (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. The Company may, in its sole discretion,
         waive

                                       10
<PAGE>   11

         any of the restrictions in this Section 7(a) or limit the scope of the
         same; provided, however, no such waiver or limitation shall be
         considered binding unless it is in writing.

                  (b) CONFIDENTIALITY COVENANT. Having acknowledged the
         foregoing, Employee covenants that without limitation as to time, he
         will not directly or indirectly disclose or use or otherwise exploit
         for his own benefit, or the benefit of any other person, except as may
         be necessary in the performance of his duties hereunder, any
         Confidential Information.

                  (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 date hereof until
         the Date of Termination of Employee's employment hereunder, and for a
         period of one (1) year thereafter, directly or indirectly (i) 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. Notwithstanding the foregoing, Employee
         shall not be in breach of the covenants in clause (ii) of the preceding
         sentence by reason of (x) Employee's service as an employee or
         consultant, after the Date of Termination, for any governmental agency
         or (y) Employee's employment with, consulting for or investment in,
         after the Date of Termination, any person which is a small business
         entity engaged in providing services to the federal government under
         contracts on which Res-Care is not eligible to bid, and not otherwise
         engaged in 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 2 hereof or the voluntary
                  termination of Employee's employment hereunder.

                           (ii) The "Territory" shall mean the fifty (50) 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

                                       11
<PAGE>   12

                  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 or entity 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 juvenile 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.

                                       12
<PAGE>   13

                           (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, 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.

         8. ENTIRE AGREEMENT; MODIFICATION; WAIVER. This Employment Agreement
constitutes the entire agreement between the parties pertaining to the subject
matter contained in it and supersedes all prior and contemporaneous agreements,
representations, and understandings of the parties, including but not limited to
the Prior Agreement. No supplement, modification, or amendment of this
Employment Agreement shall be binding unless executed in writing by all parties
hereto (other than 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):

                                       13
<PAGE>   14

                  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:
                  ---------------

                  Vincent F. Doran
                  6838 Melrose Drive
                  McLean, Virginia 22101

         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.

                                       14
<PAGE>   15

         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

                                           -------------------------------------
                                           Vincent F. Doran

                                       15

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