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Commitments and Contingencies
12 Months Ended
Dec. 31, 2020
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
17. Commitments and Contingencies


We may be subject to litigation in the ordinary course of business.

Employment Agreements


At December 31, 2020, the Company had outstanding employment agreements with four of its executive officers, one of whom (Mr. McDowell) has provided notice of a planned retirement in August 2021. The three remaining agreements have terms that expire December 31, 2021, February 28, 2022 and November 8, 2022, respectively; however, each of these agreements provide for an automatic two year renewal at the conclusion of the expiring term or renewal term. All of the agreements contain a provision for annual adjustment of salaries.


In addition, the Company has outstanding employment agreements with most of the managing physical therapist partners of the Company’s physical therapy clinics and with certain other clinic employees which obligate subsidiaries of the Company to pay compensation of $37.1 million in 2021 and $6.1 million in the aggregate from 2022 through 2024. In addition, many of the employment agreements with the managing physical therapists provide for monthly bonus payments calculated as a percentage of each clinic’s net revenues (not in excess of operating profits) or operating profits.