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                                 EXHIBIT 10.18

                                AMENDMENT NO. 7
                            TO EMPLOYMENT AGREEMENT

                  AGREEMENT dated as of May 20, 1996 between Edward L.  Hutton
("Employee") and Chemed Corporation (the "Company").

                  WHEREAS, Employee and the Company have entered into an
Employment Agreement dated as of May 2, 1988 and amended May 15, 1989, May 21,
1990, May 20, 1991, May 18, 1992, May 17, 1993 and May 16, 1994 ("Employment
Agreement"); and

                  WHEREAS, Employee and the Company desire to further amend the
Employment Agreement in certain respects.

                  NOW, THEREFORE, Employee and the Company mutually agree that
the Employment Agreement shall be amended, effective as of May 20, 1996, as
follows:

                  A.       The amount of unrestricted stock award recognized in
                           lieu of incentive compensation in 1995 is
                           $370,076.50.

                  B.       The base salary amount set forth in the first
                           sentence of Section 2.1 of the Employment Agreement
                           is hereby deleted and the base salary amount of
                           $550,000 per annum is hereby substituted.

                  C.       Section 3.4(b)(iii) is hereby amended to read as
                           follows:  ss.3.4(b)(iii)  The fair market value of
                           all shares of Chemed Corporation capital stock and
                           its subsidiaries' common stock subject to stock
                           awards granted to Employee under one or more stock
                           incentive plans of Chemed Corporation or of any of

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                           its subsidiaries which have vested during the 12
                           months prior to the Employee's termination, such
                           fair market value to be determined as of the date of
                           vesting of any such shares. Such monthly severance
                           payments shall be made for a period equal to the
                           balance of the term of employment provided in
                           ss.1.2.

                  Except as specifically amended in this Amendment No. 7 to
Employment Agreement, the Employment Agreement, as amended, shall continue in
full force and effect in accordance with its terms, conditions and provisions.

                  IN WITNESS WHEREOF, the parties have duly executed this
amendatory agreement as of the date first above written.

                                   EMPLOYEE

                                   --------------------- 
                                   Edward L. Hutton


                                   CHEMED CORPORATION

                                   --------------------- 
                                   Kevin J. McNamara
                                   President

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