THIS EMPLOYMENT AGREEMENT ("Employment Agreement") is made as of the 1st day of January, 1998,
between RES-CARE, INC., a Kentucky corporation (the "Company"), and RALPH G. GRONEFELD, JR.
WHEREAS, the Company and the Employee entered into an Employment Agreement dated as of January 1,
1997 (the "Original Agreement"), providing for an initial term of one (1) year;
WHEREAS, the Original Agreement provided for automatic extensions of successive periods of one (1) year
each on the same terms and conditions, subject to either party's written notice of its intention not to renew the
WHEREAS, the Company and Employee desire that Employee's employment with the Company continue and
they further desire to supersede the Original Agreement, effective January 1, 1998, by executing this Employment
Agreement and agreeing to be bound by the terms thereof.
NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein, the parties
agree as follows:
1. EMPLOYMENT AND TERM. The Company hereby employs the Employee, and the Employee accepts
such employment, upon the terms and conditions herein set forth for an initial term commencing on January 1,
1998, and ending on December 31, 2000, 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.