Document:

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                                  EXHIBIT 10.16

                               CHEMED CORPORATION
                     1999 LONG-TERM EMPLOYEE INCENTIVE PLAN

     1.  PURPOSES: The purposes of this Plan are (a) to secure for the
Corporation the benefits of incentives inherent in ownership of Capital Stock by
Employees, (b) to encourage Employees to increase their interest in the future
growth and prosperity of the Corporation and to stimulate and sustain
constructive and imaginative thinking by Employees, (c) to further the
identification of interest of employees of the Corporation and its Subsidiaries
with the interests of the Corporation's stockholders, (d) to induce the
employment or continued employment of Employees and (e) to enable the
Corporation to compete with other organizations offering similar or other
incentives in obtaining and retaining the services of employees.

     2.  DEFINITIONS: Unless otherwise required by the context, the following
terms when used in this Plan shall have the meanings set forth in this Section
2.

                  BOARD OF DIRECTORS: The Board of Directors of the Corporation.

                  CAPITAL STOCK: The Capital Stock of the Corporation, par value
$l.00 per share, or such other class of shares or other securities as may be
applicable pursuant to the provisions of Section 8.

                  CORPORATION: Chemed Corporation, a Delaware corporation.

                  FAIR MARKET VALUE: As applied to any date, the mean between
the high and low sales prices of a share of Capital Stock on the principal stock
exchange on which the Corporation is listed, or, if it is not so listed, the
mean between the bid and the ask prices of a share of Capital Stock in the
over-the-counter market as reported by the National Association of Securities
Dealers Automated Quotation System on such date or, if no such sales or prices
were made or quoted on such date, on the next preceding date on which there were
sales or quotes of Capital Stock on such exchange or market, as the case may be;
provided, however, that, if the Capital Stock is not so listed or quoted, Fair
Market Value shall be determined in accordance with the method approved by the
Compensation/Incentive Committee, and, provided further, if any of the foregoing
methods of determining Fair Market Value shall not be consistent with the
regulations of the Secretary of the Treasury or his delegate at the time
applicable to a Stock Incentive of the type involved, Fair Market Value in the
case of such Stock Incentive shall be determined in accordance with such
regulations and shall mean the value as so determined.

                  COMPENSATION/INCENTIVE COMMITTEE: The Compensation/Incentive
Committee designated to administer this Plan pursuant to the provisions of
Section 10.

                  INCENTIVE COMPENSATION: Bonuses, extra and other compensation
payable in addition to a salary or other base amount, whether contingent or
discretionary or required to be paid pursuant to an agreement, resolution or
arrangement, and whether payable currently or on a deferred basis, in cash,
Capital Stock or other property, awarded by the Corporation or a Subsidiary
prior or subsequent to the date of the approval and adoption of this Plan by the
stockholders of the Corporation.

                  EMPLOYEE: An employee of the Corporation or of a Subsidiary
who in the opinion of the Compensation/Incentive Committee can contribute
significantly to the growth and successful operations of the Corporation or a
Subsidiary. The grant of a Stock Incentive to an employee by the Compensation/
Incentive Committee shall be deemed a determination by the
Compensation/Incentive Committee that such employee is an Employee. For the
purposes of this Plan, a director or officer of the Corporation or of a
Subsidiary shall not be deemed an Employee.

                  OPTION: An option to purchase shares of Capital Stock.

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                  PERFORMANCE UNIT: A unit representing a share of Capital
Stock, subject to a Stock Award, the issuance, transfer or retention of which is
contingent, in whole or in part, upon attainment of a specified performance
objective or objectives, including, without limitation, objectives determined by
reference to or changes in (a) the Fair Market Value, book value or earnings per
share of Capital Stock, or (b) sales and revenues, income, profits and losses,
return on capital employed, or net worth of the Corporation (on a consolidated
or unconsolidated basis) or of any one or more of its groups, divisions,
Subsidiaries or departments, or (c) a combination of two or more of the
foregoing factors.

                  PLAN: The 1999 Long-Term Employee Incentive Plan herein set
forth as the same may from time to time be amended.

                  STOCK AWARD: An issuance or transfer of shares of Capital
Stock at the time the Stock Incentive is granted or as soon thereafter as
practicable, or an undertaking to issue or transfer such shares in the future,
including, without limitation, such an issuance, transfer or undertaking with
respect to Performance Units.

                  STOCK INCENTIVE: A stock incentive granted under this Plan in
one of the forms provided for in Section 3.

                  SUBSIDIARY: A corporation or other form of business
association of which shares (or other ownership interests) having 50% or more of
the voting power are owned or controlled, directly or indirectly, by the
Corporation.

     3.  GRANTS OF STOCK INCENTIVES:

              (a) Subject to the provisions of this Plan, the
Compensation/Incentive Committee may at any time, or from time to time, grant
Stock Incentives under this Plan to, and only to, Employees.

              (b) Stock Incentives may be granted in the following forms:

                  (1)      a Stock Award, or

                  (2)      an Option, or

                  (3)      a combination of a Stock Award and an Option.

     4.  STOCK SUBJECT TO THIS PLAN:

              (a) Subject to the provisions of paragraph (c) and (d) of this
Section 4 and of Section 8, the aggregate number of shares of Capital Stock
which may be issued or transferred pursuant to Stock Incentives granted under
this Plan shall not exceed 250,000 shares; provided, however, that the maximum
aggregate number of shares of Capital Stock which may be issued or transferred
pursuant to Stock Incentives in the form of Stock Awards, shall not exceed 7,000
shares.

              (b) Authorized but unissued shares of Capital Stock and shares of
Capital Stock held in the treasury, whether acquired by the Corporation
specifically for use under this Plan or otherwise, may be used, as the
Compensation/Incentive Committee may from time to time determine, for purposes
of this Plan, provided, however, that any shares acquired or held by the
Corporation for the purposes of this Plan shall, unless and until transferred to
an Employee in accordance with the terms and conditions of a Stock Incentive, be
and at all times remain treasury shares of the Corporation, irrespective of
whether such shares are entered in a special account for purposes of this Plan,
and shall be available for any corporate purpose.

              (c) If any shares of Capital Stock subject to a Stock Incentive
shall not be issued or transferred and shall cease to be issuable or
transferable because of the termination, in whole or in part, of such Stock
Incentive or for any other reason, or if any such shares shall, after issuance
or transfer, be reacquired by the Corporation or a Subsidiary because of an
Employee's failure to comply with the terms and conditions of a Stock Incentive,
the shares not so issued or transferred, or the shares so reacquired

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by the Corporation or a Subsidiary shall no longer be charged against any of the
limitations provided for in paragraphs (a) or (b) of this Section 4 and may
again be made subject to Stock Incentives.

     5.  STOCK AWARDS: Stock Incentives in the form of Stock Awards shall be
subject to the following provisions:

              (a) A Stock Award shall be granted only in payment of Incentive
Compensation that has been earned or as Incentive Compensation to be earned,
including, without limitation, Incentive Compensation awarded concurrently with
or prior to the grant of the Stock Award.

              (b) For the purposes of this Plan, in determining the value of a
Stock Award, all shares of Capital Stock subject to such Stock Award shall be
valued at not less than 100 percent of the Fair Market Value of such shares on
the date such Stock Award is granted, regardless of whether or when such shares
are issued or transferred to the Employee and whether or not such shares are
subject to restrictions which affect their value.

              (c) Shares of Capital Stock subject to a Stock Award may be issued
or transferred to the Employee at the time the Stock Award is granted, or at any
time subsequent thereto, or in installments from time to time, as the
Compensation/Incentive Committee shall determine. In the event that any such
issuance or transfer shall not be made to the Employee at the time the Stock
Award is granted, the Compensation/Incentive Committee may provide for payment
to such Employee, either in cash or in shares of Capital Stock from time to time
or at the time or times such shares shall be issued or transferred to such
Employee, of amounts not exceeding the dividends which would have been payable
to such Employee in respect of such shares (as adjusted under Section 8) if they
had been issued or transferred to such Employee at the time such Stock Award was
granted. Any amount payable in shares of Capital Stock under the terms of a
Stock Award may, at the discretion of the Corporation, be paid in cash, on each
date on which delivery of shares would otherwise have been made, in an amount
equal to the Fair Market Value on such date of the shares which would otherwise
have been delivered.

              (d) A Stock Award shall be subject to such terms and conditions,
including, without limitation, restrictions on sale or other disposition of the
Stock Award or of the shares issued or transferred pursuant to such Stock Award,
as the Compensation/Incentive Committee may determine; provided, however, that
upon the issuance or transfer of shares pursuant to a Stock Award, the recipient
shall, with respect to such shares, be and become a stockholder of the
Corporation fully entitled to receive dividends, to vote and to exercise all
other rights of a stockholder except to the extent otherwise provided in the
Stock Award. Each Stock Award shall be evidenced by a written instrument in such
form as the Compensation/Incentive Committee shall determine, provided the Stock
Award is consistent with this Plan and incorporates it by reference.

     6.  OPTIONS: Stock Incentives in the form of Options shall be subject to
the following provisions:

              (a) The maximum aggregate number of Stock Incentives in the form
of Options which may be granted to an individual Employee in any calendar year
shall not exceed 25,000 Options.

              (b) Upon the exercise of an Option, the purchase price shall be
paid in cash or, if so provided in the Option or in a resolution adopted by the
Compensation/Incentive Committee(and subject to such terms and conditions as are
specified in the Option or by the Compensation/Incentive Committee), in shares
of Capital Stock or in a combination of cash and such shares. Shares of Capital
Stock thus delivered shall be valued at their Fair Market Value on the date of
exercise. Subject to the provisions of Section 8, the purchase price per share
shall be not less than 100 percent of the Fair Market Value of a share of
Capital Stock on the date the Option is granted.

              (c) Each Option shall be exercisable in full or in part six months
after the date the Option is granted, or may become exercisable in one or more
installments and at such time or times, as the Compensation/Incentive Committee
shall determine. Unless otherwise provided in the Option, an Option, to the
extent it is or becomes exercisable, may be exercised at any time in whole or in
part until the

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expiration or termination of the Option. Any term or provision in any
outstanding Option specifying when the Option is exercisable or that it be
exercisable in installments may be modified at any time during the life of the
Option by the Compensation/Incentive Committee, provided, however, no such
modification of an outstanding Option shall, without the consent of the
optionee, adversely affect any Option theretofore granted to him. An Option will
become immediately exercisable in full if at any time during the term of the
Option the Corporation obtains actual knowledge that any of the following events
has occurred, irrespective of the applicability of any limitation on the number
of shares then exercisable under the Option: (1) any person within the meaning
of Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the "1934
Act"), other than the Corporation or any of its subsidiaries, has become the
beneficial owner, within the meaning of Rule 13d-3 under the 1934 Act, of 30
percent or more of the combined voting power of the Corporation's then
outstanding voting securities; (2) the expiration of a tender offer or exchange
offer, other than an offer by the Corporation, pursuant to which 20 percent or
more of the shares of the Corporation's Capital Stock have been purchased; (3)
the stockholders of the Corporation have approved (i) an agreement to merge or
consolidate with or into another corporation and the Corporation is not the
surviving corporation or (ii) an agreement to sell or otherwise dispose of all
or substantially all of the assets of the Corporation (including a plan of
liquidation); or (4) during any period of two consecutive years, individuals who
at the beginning of such period constitute the Board of Directors cease for any
reason to constitute at least a majority thereof, unless the nomination for the
election by the Corporation's stockholders of each new director was approved by
a vote of at least one-half of the persons who were directors at the beginning
of the two-year period.

              (d) Each Option shall be exercisable during the life of the
optionee only by him or a transferee or assignee permitted by paragraph (g) of
this Section (6) and, after his death, only by his estate or by a person who
acquired the right to exercise the Option pursuant to one of the provisions of
paragraph (g) of this Section (6). An Option, to the extent that it shall not
have been exercised, shall terminate when the optionee ceases to be an employee
of the Corporation or a Subsidiary, unless he ceases to be an employee because
of his resignation with the consent of the Compensation/Incentive Committee
(which consent may be given before or after resignation), or by reason of his
death, incapacity or retirement under a retirement plan of the Corporation or a
Subsidiary. Except as provided in the next sentence, if the optionee ceases to
be an employee by reason of such resignation, the Option shall terminate three
months after he ceases to be an employee. If the optionee ceases to be an
employee by reason of such death, incapacity or retirement, or if he should die
during the three-month period referred to in the preceding sentence, the Option
shall terminate fifteen months after he ceases to be an employee. Where an
Option is exercised more than three months after the optionee ceased to be an
employee, the Option may be exercised only to the extent it could have been
exercised three months after he ceased to be an employee. A leave of absence for
military or governmental service or for other purposes shall not, if approved by
the Compensation/Incentive Committee, be deemed a termination of employment
within the meaning of this paragraph (d); provided, however, that an Option may
not be exercised during any such leave of absence. Notwithstanding the foregoing
provisions of this paragraph (d) or any other provision of this Plan, no Option
shall be exercisable after expiration of the term for which the Option was
granted, which shall in no event exceed ten years. Where an Option is granted
for a term of less than ten years, the Compensation/Incentive Committee, may, at
any time prior to the expiration of the Option, extend its term for a period
ending not later than ten years from the date the Option was granted.

              (e) Options shall be granted for such lawful consideration as the
Compensation/Incentive Committee shall determine.

              (f) Neither the Corporation nor any Subsidiary may directly or
indirectly lend any money to any person for the purpose of assisting him to
purchase or carry shares of Capital Stock issued or transferred upon the
exercise of an Option.

              (g) No Option nor any right thereunder may be assigned or
transferred by the optionee except:

                  (i)      by will or the laws of descent and distribution;

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                  (ii)     pursuant to a qualified domestic relations order as
                           defined by the Internal Revenue Code of 1986, as
                           amended, or by the Employee Retirement Income
                           Security Act of 1974, as amended, or the rules
                           thereunder;

                  (iii)    by an optionee who, at the time of the transfer, is
                           not subject to the provisions of Section 16 of the
                           1934 Act, provided such transfer is to, or for the
                           benefit of (including but not limited to trusts for
                           the benefit of), the optionee's spouse or lineal
                           descendants of the optionee's parents; or

                  (iv)     by an optionee who, at the time of the transfer, is
                           subject to the provisions of Section 16 of the 1934
                           Act, to the extent, if any, such transfer would be
                           permitted under Securities and Exchange Commission
                           Rule 16b-3 or any successor rule thereto, as such
                           rule or any successor rule thereto may be in effect
                           at the time of the transfer.

              If so provided in the Option or if so authorized by the
Compensation/Incentive Committee and subject to such terms and conditions as are
specified in the Option or by the Compensation/Incentive Committee, the
Corporation may, upon or without the request of the holder of the Option and at
any time or from time to time, cancel all or a portion of the Option then
subject to exercise and either (i) pay the holder an amount of money equal to
the excess, if any, of the Fair Market Value, at such time or times, of the
shares subject to the portion of the Option so canceled over the aggregate
purchase price of such shares, or (ii) issue or transfer shares of Capital Stock
to the holder with a Fair Market Value, at such time or times, equal to such
excess.

              (h) Each Option shall be evidenced by a written instrument, which
shall contain such terms and conditions, and shall be in such form, as the
Compensation/Incentive Committee may determine, provided the Option is
consistent with this Plan and incorporates it by reference. Notwithstanding the
preceding sentence, an Option, if so granted by the Compensation/Incentive
Committee, may include restrictions and limitations in addition to those
provided for in this Plan.

              (i) Any federal, state or local withholding taxes payable by an
optionee or awardee upon the exercise of an Option or upon the removal of
restrictions of a Stock Award shall be paid in cash or in such other form as the
Compensation/Incentive Committee may authorize from time to time, including the
surrender of shares of Capital Stock or the withholding of shares of Capital
Stock to be issued to the optionee or awardee. All such shares so surrendered or
withheld shall be valued at Fair Market Value on the date such are surrendered
to the Corporation or authorized to be withheld.

     7.  COMBINATIONS OF STOCK AWARDS AND OPTIONS: Stock Incentives authorized
by paragraph (b)(iii) of Section 3 in the form of combinations of Stock Awards
and Options shall be subject to the following provisions:

              (a) A Stock Incentive may be a combination of any form of Stock
Award with any form of Option; provided, however, that the terms and conditions
of such Stock Incentive pertaining to a Stock Award are consistent with Section
5 and the terms and conditions of such Stock Incentive pertaining to an Option
are consistent with Section 6.

              (b) Such combination Stock Incentive shall be subject to such
other terms and conditions as the Compensation/Incentive Committee may
determine, including, without limitation, a provision terminating in whole or in
part a portion thereof upon the exercise in whole or in part of another portion
thereof. Such combination Stock Incentive shall be evidenced by a written
instrument in such form as the Compensation/Incentive Committee shall determine,
provided it is consistent with this Plan and incorporates it by reference.

     8.  ADJUSTMENT PROVISIONS: In the event that any recapitalization, or
reclassification, split-up or consolidation of shares of Capital Stock shall be
effected, or the outstanding shares of Capital Stock are, in connection with a
merger or consolidation of the Corporation or a sale by the Corporation of all
or a part of its assets, exchanged for a different number or class of shares of
stock or other securities of the

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Corporation or for shares of the stock or other securities of any other
corporation, or a record date for determination of holders of Capital Stock
entitled to receive a dividend payable in Capital Stock shall occur (a) the
number and class of shares or other securities that may be issued or transferred
pursuant to Stock Incentives, (b) the number and class of shares or other
securities which have not been issued or transferred under outstanding Stock
Incentives, (c) the purchase price to be paid per share or other security under
outstanding Options, and (d) the price to be paid per share or other security by
the Corporation or a Subsidiary for shares or other securities issued or
transferred pursuant to Stock Incentives which are subject to a right of the
Corporation or a Subsidiary to reacquire such shares or other securities, shall
in each case be equitably adjusted.

     9.  TERM: This Plan shall be deemed adopted and shall become effective on
May 17, 1999. No Stock Incentives shall be granted under this Plan after May 17,
2009.

     10. ADMINISTRATION:

              (a) The Plan shall be administered by the Compensation/Incentive
Committee, which shall consist of no fewer than three persons designated by the
Board of Directors. Grants of Stock Incentives may be granted by the
Compensation/Incentive Committee either in or without consultation with
employees, but, anything in this Plan to the contrary notwithstanding, the
Compensation/Incentive Committee shall have full authority to act in the matter
of selection of all Employees and in determining the number of Stock Incentives
to be granted to them.

              (b) The Compensation/Incentive Committee may establish such rules
and regulations, not inconsistent with the provisions of this Plan, as it deems
necessary to determine eligibility to participate in this Plan and for the
proper administration of this Plan, and may amend or revoke any rule or
regulation so established. The Compensation/Incentive Committee may make such
determinations and interpretations under or in connection with this Plan as it
deems necessary or advisable. All such rules, regulations, determinations and
interpretations shall be binding and conclusive upon the Corporation, its
Subsidiaries, its stockholders and all employees, and upon their respective
legal representatives, beneficiaries, successors and assigns and upon all other
persons claiming under or through any of them.

              (c) Members of the Board of Directors and members of the
Compensation/Incentive Committee acting under this Plan shall be fully protected
in relying in good faith upon the advice of counsel and shall incur no liability
except for gross negligence or willful misconduct in the performance of their
duties.

     11. GENERAL PROVISIONS:

              (a) Nothing in this Plan nor in any instrument executed pursuant
hereto shall confer upon any employee any right to continue in the employ of the
Corporation or a Subsidiary, or shall affect the right of the Corporation or of
a Subsidiary to terminate the employment of any employee with or without cause.

              (b) No shares of Capital Stock shall be issued or transferred
pursuant to a Stock Incentive unless and until all legal requirements applicable
to the issuance or transfer of such shares, in the opinion of counsel to the
Corporation, have been complied with. In connection with any such issuance or
transfer, the person acquiring the shares shall, if requested by the
Corporation, give assurances, satisfactory to counsel to the Corporation, that
the shares are being acquired for investment and not with a view to resale or
distribution thereof and assurances in respect of such other matters as the
Corporation or a Subsidiary may deem desirable to assure compliance with all
applicable legal requirements.

              (c) No employee (individually or as a member of a group), and no
beneficiary or other person claiming under or through him, shall have any right,
title or interest in or to any shares of Capital Stock allocated or reserved for
the purposes of this Plan or subject to any Stock Incentive except as to such
shares of Capital Stock, if any, as shall have been issued or transferred to
him.

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              (d) The Corporation or a Subsidiary may, with the approval of the
Compensation/Incentive Committee, enter into an agreement or other commitment to
grant a Stock Incentive in the future to a person who is or will be an Employee
at the time of grant, and, notwithstanding any other provision of this Plan, any
such agreement or commitment shall not be deemed the grant of a Stock Incentive
until the date on which the Company takes action to implement such agreement or
commitment.

              (e) In the case of a grant of a Stock Incentive to an employee of
a Subsidiary, such grant may, if the Compensation/Incentive Committee so
directs, be implemented by the Corporation issuing or transferring the shares,
if any, covered by the Stock Incentive to the Subsidiary, for such lawful
consideration as the Compensation/Incentive Committee may specify, upon the
condition or understanding that the Subsidiary will transfer the shares to the
employee in accordance with the terms of the Stock Incentive specified by the
Compensation/Incentive Committee pursuant to the provisions of this Plan.
Notwithstanding any other provision hereof, such Stock Incentive may be issued
by and in the name of the Subsidiary and shall be deemed granted on the date it
is approved by the Compensation/Incentive Committee, on the date it is delivered
by the Subsidiary or on such other date between said two dates, as the
Compensation/Incentive Committee shall specify.

              (f) The Corporation or a Subsidiary may make such provisions as it
may deem appropriate for the withholding of any taxes which the Corporation or a
Subsidiary determines it is required to withhold in connection with any Stock
Incentive.

              (g) Nothing in this Plan is intended to be a substitute for, or
shall preclude or limit the establishment or continuation of, any other plan,
practice or arrangement for the payment of compensation or fringe benefits to
employees generally, or to any class or group of employees, which the
Corporation or any Subsidiary or other affiliate now has or may hereafter
lawfully put into effect, including, without limitation, any retirement,
pension, group insurance, stock purchase, stock bonus or stock option plan.

     12. AMENDMENTS AND DISCONTINUANCE:

              (a) This Plan may be amended by the Board of Directors upon the
recommendation of the Compensation/Incentive Committee, provided that, without
the approval of the stockholders of the Corporation, no amendment shall be made
which (i) increases the aggregate number of shares of Capital Stock that may be
issued or transferred pursuant to Stock Incentives as provided in paragraph (a)
of Section 4, (ii) increases the maximum aggregate number of Stock Incentives,
in the form of Options, which may be granted to an individual employee as
provided in paragraph (a) of Section 6, (iii) withdraws the administration of
this Plan from the Compensation/Incentive Committee, (iv) permits any person who
is not at the time an Employee of the Corporation or of a Subsidiary to be
granted a Stock Incentive, (v) permits any Option to be exercised more than ten
years after the date it is granted, (vi) amends Section 9 to extend the date set
forth therein or (vii) amends this Section 12.

              (b) Notwithstanding paragraph (a) of this Section 12, the Board of
Directors may amend the Plan to take into account changes in applicable
securities laws, federal income tax laws and other applicable laws. Should the
provisions of Rule 16b-3, or any successor rule, under the Securities Exchange
Act of 1934 be amended, the Board of Directors may amend the Plan in accordance
therewith.

              (c) The Board of Directors may by resolution adopted by a majority
of the entire Board of Directors discontinue this Plan.

              (d) No amendment or discontinuance of this Plan by the Board of
Directors or the stockholders of the Corporation shall, without the consent of
the employee, adversely affect any Stock Incentive theretofore granted to him.<PAGE>

                                  EXHIBIT 10.17

                               CHEMED CORPORATION
                            2002 STOCK INCENTIVE PLAN

     1.  PURPOSES: The purposes of this plan are (a) to secure for the
Corporation the benefits of incentives inherent in ownership of Capital Stock by
Key Employees, (b) to encourage Key Employees to increase their interest in the
future growth and prosperity of the Corporation and to stimulate and sustain
constructive and imaginative thinking by Key Employees, (c) to further the
identification of interest of those who hold positions of major responsibility
in the Corporation and its Subsidiaries with the interests of the Corporation's
stockholders, (d) to induce the employment or continued employment of Key
Employees and (e) to enable the Corporation to compete with other organizations
offering similar or other incentives in obtaining and retaining the services of
competent executives.

     2.  DEFINITIONS: Unless otherwise required by the context, the following
terms when used in this Plan shall have the meanings set forth in this Section
2.

         BOARD OF DIRECTORS: The Board of Directors of the Corporation.

         CAPITAL STOCK: The Capital Stock of the Corporation, par value $1.00
per share, or such other class of shares or other securities as may be
applicable pursuant to the provisions of Section 8.

         CORPORATION: Chemed Corporation, a Delaware corporation.

         FAIR MARKET VALUE: As applied to any date, the mean between the high
and low sales prices of a share of Capital Stock on the principal stock exchange
on which the Corporation is listed, or, if it is not so listed, the mean between
the bid and the ask prices of a share of Capital Stock in the over-the-counter
market as reported by the National Association of Securities Dealers Automated
Quotation System on such date or, if no such sales or prices were made or quoted
on such date, on the next preceding date on which there were sales or quotes of
Capital Stock on such exchange or market, as the case may be; provided, however,
that, if the Capital Stock is not so listed or quoted, Fair Market Value shall
be determined in accordance with the method approved by the
Compensation/Incentive Committee, and, provided further, if any of the foregoing
methods of determining Fair Market Value shall not be consistent with the
regulations of the Secretary of the Treasury or his delegate at the time
applicable to a Stock Incentive of the type involved, Fair Market Value in the
case of such Stock Incentive shall be determined in accordance with such
regulations and shall mean the value as so determined.

         COMPENSATION/INCENTIVE COMMITTEE: The Compensation/Incentive Committee
designated to administer this Plan pursuant to the provisions of Section 10.

         INCENTIVE COMPENSATION: Bonuses, extra and other compensation payable
in addition to a salary or other base amount, whether contingent or
discretionary or required to be paid pursuant to an agreement, resolution or
arrangement, and whether payable currently or on a deferred basis, in cash,
Capital Stock or other property, awarded by the Corporation or a Subsidiary
prior

<PAGE>

or subsequent to the date of the approval and adoption of this Plan by the
stockholders of the Corporation.

         KEY EMPLOYEE: An employee of the Corporation or of a Subsidiary who in
the opinion of the Compensation/Incentive Committee can contribute significantly
to the growth and successful operations of the Corporation or a Subsidiary. The
grant of a Stock Incentive to an employee by the Compensation/Incentive
Committee shall be deemed a determination by the Compensation/Incentive
Committee that such employee is a Key Employee. For the purposes of this Plan, a
director or officer of the Corporation or of a Subsidiary shall be deemed an
employee regardless of whether such director or officer is on the payroll of, or
otherwise paid for services by, the Corporation or a Subsidiary.

         OPTION: An option to purchase shares of Capital Stock.

         PERFORMANCE UNIT: A unit representing a share of Capital Stock, subject
to a Stock Award, the issuance, transfer or retention of which is contingent, in
whole or in part, upon attainment of a specified performance objective or
objectives, including, without limitation, objectives determined by reference to
or changes in (a) the Fair Market Value, book value or earnings per share of
Capital Stock, or (b) sales and revenues, income, profits and losses, return on
capital employed, or net worth of the Corporation (on a consolidated or
unconsolidated basis) or of any one or more of its groups, divisions,
Subsidiaries or departments, or (c) a combination of two or more of the
foregoing factors.

         PLAN: The 2002 Stock Incentive Plan herein set forth as the same may
from time to time be amended.

         STOCK AWARD: An issuance or transfer of shares of Capital Stock at the
time the Stock Incentive is granted or as soon thereafter as practicable, or an
undertaking to issue or transfer such shares in the future, including, without
limitation, such an issuance, transfer or undertaking with respect to
Performance Units.

         STOCK INCENTIVE: A stock incentive granted under this Plan in one of
the forms provided for in Section 3.

         SUBSIDIARY: A corporation or other form of business association of
which shares (or other ownership interests) having 50% or more of the voting
power are owned or controlled, directly or indirectly, by the Corporation.

     3.  GRANTS OF STOCK INCENTIVES:

              (a) Subject to the provisions of this Plan, the
         Compensation/Incentive Committee may at any time, or from time to time,
         grant Stock Incentives under this Plan to, and only to, Key Employees.

              (b) Stock Incentives may be granted in the following forms:

                  (i)      a Stock Award, or

                  (ii)     an Option, or

                  (iii)    a combination of a Stock Award and an Option.

<PAGE>

     4.  STOCK SUBJECT TO THIS PLAN:

              (a) Subject to the provisions of paragraph (c) and (d) of this
         Section 4 and of Section 8, the aggregate number of shares of Capital
         Stock which may be issued or transferred pursuant to Stock Incentives
         granted under this Plan shall not exceed 450,000 shares; provided,
         however, that the maximum aggregate number of shares of Capital Stock
         which may be issued or transferred pursuant to Stock Incentives in the
         form of Stock Awards, shall not exceed 135,000 shares.

              (b) The maximum aggregate number of shares of Capital Stock which
         may be issued or transferred under the Plan to directors of the
         Corporation or of a Subsidiary shall not exceed 100,000 shares.

              (c) Authorized but unissued shares of Capital Stock and shares of
         Capital Stock held in the treasury, whether acquired by the Corporation
         specifically for use under this Plan or otherwise, may be used, as the
         Compensation/Incentive Committee may from time to time determine, for
         purposes of this Plan, provided, however, that any shares acquired or
         held by the Corporation for the purposes of this Plan shall, unless and
         until transferred to a Key Employee in accordance with the terms and
         conditions of a Stock Incentive, be and at all times remain treasury
         shares of the Corporation, irrespective of whether such shares are
         entered in a special account for purposes of this Plan, and shall be
         available for any corporate purpose.

              (d) If any shares of Capital Stock subject to a Stock Incentive
         shall not be issued or transferred and shall cease to be issuable or
         transferable because of the termination, in whole or in part, of such
         Stock Incentive or for any other reason, or if any such shares shall,
         after issuance or transfer, be reacquired by the Corporation or a
         Subsidiary because of an employee's failure to comply with the terms
         and conditions of a Stock Incentive, the shares not so issued or
         transferred, or the shares so reacquired by the Corporation or a
         Subsidiary shall no longer be charged against any of the limitations
         provided for in paragraphs (a) or (b) of this Section 4 and may again
         be made subject to Stock Incentives.

     5.  STOCK AWARDS: Stock Incentives in the form of Stock Awards shall be
subject to the following provisions:

              (a) A Stock Award shall be granted only in payment of Incentive
         Compensation that has been earned or as Incentive Compensation to be
         earned, including, without limitation, Incentive Compensation awarded
         concurrently with or prior to the grant of the Stock Award.

              (b) For the purposes of this Plan, in determining the value of a
         Stock Award, all shares of Capital Stock subject to such Stock Award
         shall be valued at not less than 100 percent of the Fair Market Value
         of such shares on the date such Stock Award is granted, regardless of
         whether or when such shares are issued or transferred to the Key
         Employee and whether such shares are subject to restrictions which
         affect their value.

              (c) Shares of Capital Stock subject to a Stock Award may be issued
         or transferred to the Key Employee at the time the Stock Award is
         granted, or at any time subsequent thereto, or in installments from
         time to time, as the Compensation/Incentive Committee shall determine.
         In the event that any such issuance or transfer shall not be made to
         the Key Employee at the time the Stock Award is granted, the
         Compensation/Incentive Committee may provide for payment to such Key
         Employee, either in cash or in shares of Capital Stock from time to
         time or at the time or times such shares shall be issued or transferred
         to such Key Employee, of amounts not exceeding the dividends which
         would have been payable to such Key Employee in respect of such shares
         (as adjusted under Section 8) if they had been issued or transferred to
         such Key Employee at the time such Stock Award was granted. Any amount
         payable in shares of Capital Stock under the terms of a Stock Award
         may, at the discretion of the Corporation, be paid in cash, on each
         date on which delivery of shares would otherwise

<PAGE>

         have been made, in an amount equal to the Fair Market Value on such
         date of the shares which would otherwise have been delivered.

              (d) A Stock Award shall be subject to such terms and conditions,
         including, without limitation, restrictions on sale or other
         disposition of the Stock Award or of the shares issued or transferred
         pursuant to such Stock Award, as the Compensation/Incentive Committee
         may determine; provided, however, that upon the issuance or transfer of
         shares pursuant to a Stock Award, the recipient shall, with respect to
         such shares, be and become a stockholder of the Corporation fully
         entitled to receive dividends, to vote and to exercise all other rights
         of a stockholder except to the extent otherwise provided in the Stock
         Award. Each Stock Award shall be evidenced by a written instrument in
         such form as the Compensation/Incentive Committee shall determine,
         provided the Stock Award is consistent with this Plan and incorporates
         it by reference.

     6.  OPTIONS: Stock Incentives in the form of Options shall be subject to
the following provisions:

              (a) The maximum aggregate number of Stock Incentives in the form
         of Options which may be granted to an individual employee of the
         Corporation or a Subsidiary in any calendar year shall not exceed
         50,000 Options.

              (b) Upon the exercise of an Option, the purchase price shall be
         paid in cash or, if so provided in the Option or in a resolution
         adopted by the Compensation/Incentive Committee (and subject to such
         terms and conditions as are specified in the Option or by the
         Compensation/Incentive Committee), in shares of Capital Stock or in a
         combination of cash and such shares. Shares of Capital Stock thus
         delivered shall be valued at their Fair Market Value on the date of
         exercise. Subject to the provisions of Section 8, the purchase price
         per share shall be not less than 100 percent of the Fair Market Value
         of a share of Capital Stock on the date the Option is granted.

              (c) Each Option shall be exercisable in full or in part six months
         after the date the Option is granted, or may become exercisable in one
         or more installments and at such time or times, as the
         Compensation/Incentive Committee shall determine. Unless otherwise
         provided in the Option, an Option, to the extent it is or becomes
         exercisable, may be exercised at any time in whole or in part until the
         expiration or termination of the Option. Any term or provision in any
         outstanding Option specifying when the Option is exercisable or that it
         be exercisable in installments may be modified at any time during the
         life of the Option by the Compensation/Incentive Committee, provided,
         however, no such modification of an outstanding Option shall, without
         the consent of the optionee, adversely affect any Option theretofore
         granted to him. An Option will become immediately exercisable in full
         if at any time during the term of the Option the Corporation obtains
         actual knowledge that any of the following events has occurred,
         irrespective of the applicability of any limitation on the number of
         shares then exercisable under the Option: (1) any person within the
         meaning of Sections 13(d) and 14(d) of the Securities Exchange Act of
         1934 (the "1934 Act"), other than the Corporation or any of its
         subsidiaries, has become the beneficial owner, within the meaning of
         Rule 13d-3 under the 1934 Act, of 30 percent or more of the combined
         voting power of the Corporation's then outstanding voting securities;
         (2) the expiration of a tender offer or exchange offer, other than an
         offer by the Corporation, pursuant to which 20 percent or more of the
         shares of the Corporation's Capital Stock have been purchased; (3) the
         stockholders of the Corporation have approved (i) an agreement to merge
         or consolidate with or into another corporation and the Corporation is
         not the surviving corporation or (ii) an agreement to sell or otherwise
         dispose of all or substantially all of the assets of the Corporation
         (including a plan of liquidation); or (4) during any period of two
         consecutive years, individuals who at the beginning of such period
         constitute the Board of Directors cease for any reason to constitute at
         least a majority thereof, unless the nomination for the election by the
         Corporation's stockholders of each new director was approved by a vote
         of at least one-half of the persons who were directors at the beginning
         of the two-year period.

<PAGE>

              (d) Each Option shall be exercisable during the life of the
         optionee only by him or a transferee or assignee permitted by paragraph
         (g) of this Section 6 and, after his death, only by his estate or by a
         person who acquired the right to exercise the Option pursuant to one of
         the provisions of paragraph (g) of this Section 6. An Option, to the
         extent that it shall not have been exercised, shall terminate when the
         optionee ceases to be an employee of the Corporation or a Subsidiary,
         unless he ceases to be an employee because of his resignation with the
         consent of the Compensation/Incentive Committee (which consent may be
         given before or after resignation), or by reason of his death,
         incapacity or retirement under a retirement plan of the Corporation or
         a Subsidiary. Except as provided in the next sentence, if the optionee
         ceases to be an employee by reason of such resignation, the Option
         shall terminate three months after he ceases to be an employee. If the
         optionee ceases to be an employee by reason of such death, incapacity
         or retirement, or if he should die during the three-month period
         referred to in the preceding sentence, the Option shall terminate
         fifteen months after he ceases to be an employee. Where an Option is
         exercised more than three months after the optionee ceased to be an
         employee, the Option may be exercised only to the extent it could have
         been exercised three months after he ceased to be an employee. A leave
         of absence for military or governmental service or for other purposes
         shall not, if approved by the Compensation/Incentive Committee, be
         deemed a termination of employment within the meaning of this paragraph
         (d); provided, however, that an Option may not be exercised during any
         such leave of absence. Notwithstanding the foregoing provisions of this
         paragraph (d) or any other provision of this Plan, no Option shall be
         exercisable after expiration of the term for which the Option was
         granted, which shall in no event exceed ten years. Where an Option is
         granted for a term of less than ten years, the Compensation/Incentive
         Committee, may, at any time prior to the expiration of the Option,
         extend its term for a period ending not later than ten years from the
         date the Option was granted.

              (e) Options shall be granted for such lawful consideration as the
         Compensation/Incentive Committee shall determine.

              (f) Neither the Corporation nor any Subsidiary may directly or
         indirectly lend any money to any person for the purpose of assisting
         him to purchase or carry shares of Capital Stock issued or transferred
         upon the exercise of an Option.

              (g) No Option nor any right thereunder may be assigned or
         transferred by the optionee except:

                  (i)      by will or the laws of descent and distribution;

                  (ii)     pursuant to a qualified domestic relations order as
                  defined by the Internal Revenue Code of 1986, as amended, or
                  by the Employee Retirement Income Security Act of 1974, as
                  amended, or the rules thereunder;

                  (iii)    by an optionee who, at the time of the transfer, is
                  not subject to the provisions of Section 16 of the 1934 Act,
                  provided such transfer is to, or for the benefit of (including
                  but not limited to trusts for the benefit of), the optionee's
                  spouse or lineal descendants of the optionee's parents; or

                  (iv)     by an optionee who, at the time of the transfer, is
                  subject to the provisions of Section 16 of the 1934 Act, to
                  the extent, if any, such transfer would be permitted under
                  Securities and Exchange Commission Rule 16b-3 or any successor
                  rule thereto, as such rule or any successor rule thereto may
                  be in effect at the time of the transfer.

              If so provided in the Option or if so authorized by the
         Compensation/Incentive Committee and subject to such terms and
         conditions as are specified in the Option or by the
         Compensation/Incentive Committee, the Corporation may, upon or without
         the request of the holder of the Option and at any time or from time to
         time, cancel all or a portion of the Option then subject to exercise
         and either (i) pay the holder an amount of money equal to the excess,
         if any, of the Fair Market Value, at such time or times, of the shares
         subject to the

<PAGE>

         portion of the Option so canceled over the aggregate purchase price of
         such shares, or (ii) issue or transfer shares of Capital Stock to the
         holder with a Fair Market Value, at such time or times, equal to such
         excess.

              (h) Each Option shall be evidenced by a written instrument, which
         shall contain such terms and conditions, and shall be in such form, as
         the Compensation/Incentive Committee may determine, provided the Option
         is consistent with this Plan and incorporates it by reference.
         Notwithstanding the preceding sentence, an Option, if so granted by the
         Compensation/Incentive Committee, may include restrictions and
         limitations in addition to those provided for in this Plan.

              (i) Any federal, state or local withholding taxes payable by an
         optionee or awardee upon the exercise of an Option or upon the removal
         of restrictions of a Stock Award shall be paid in cash or in such other
         form as the Compensation/Incentive Committee may authorize from time to
         time, including the surrender of shares of Capital Stock or the
         withholding of shares of Capital Stock to be issued to the optionee or
         awardee. All such shares so surrendered or withheld shall be valued at
         Fair Market Value on the date such are surrendered to the Corporation
         or authorized to be withheld.

     7.  COMBINATIONS OF STOCK AWARDS AND OPTIONS: Stock Incentives authorized
by paragraph (b) (iii) of Section 3 in the form of combinations of Stock Awards
and Options shall be subject to the following provisions:

              (a) A Stock Incentive may be a combination of any form of Stock
         Award with any form of Option; provided, however, that the terms and
         conditions of such Stock Incentive pertaining to a Stock Award are
         consistent with Section 5 and the terms and conditions of such Stock
         Incentive pertaining to an Option are consistent with Section 6.

              (b) Such combination Stock Incentive shall be subject to such
         other terms and conditions as the Compensation/Incentive Committee may
         determine, including, without limitation, a provision terminating in
         whole or in part a portion thereof upon the exercise in whole or in
         part of another portion thereof. Such combination Stock Incentive shall
         be evidenced by a written instrument in such form as the
         Compensation/Incentive Committee shall determine, provided it is
         consistent with this Plan and incorporates it by reference.

     8.  ADJUSTMENT PROVISIONS: In the event that any recapitalization, or
reclassification, split-up or consolidation of shares of Capital Stock shall be
effected, or the outstanding shares of Capital Stock are, in connection with a
merger or consolidation of the Corporation or a sale by the Corporation of all
or a part of its assets, exchanged for a different number or class of shares of
stock or other securities of the Corporation or for shares of the stock or other
securities of any other corporation, or a record date for determination of
holders of Capital Stock entitled to receive a dividend payable in Capital Stock
shall occur (a) the number and class of shares or other securities that may be
issued or transferred pursuant to Stock Incentives, (b) the number and class of
shares or other securities which have not been issued or transferred under
outstanding Stock Incentives, (c) the purchase price to be paid per share or
other security under outstanding Options, and (d) the price to be paid per share
or other security by the Corporation or a Subsidiary for shares or other
securities issued or transferred pursuant to Stock Incentives which are subject
to a right of the Corporation or a Subsidiary to reacquire such shares or other
securities, shall in each case be equitably adjusted.

     9.  TERM: This Plan shall be deemed adopted and shall become effective on
the date it is approved and adopted by the stockholders of the Corporation. No
Stock Incentives shall be granted under this Plan after May 19, 2012.

<PAGE>

     10. ADMINISTRATION:

              (a) The Plan shall be administered by the Compensation/Incentive
         Committee, which shall consist of no fewer than three persons
         designated by the Board of Directors. Grants of Stock Incentives may be
         granted by the Compensation/Incentive Committee either in or without
         consultation with employees, but, anything in this Plan to the contrary
         notwithstanding, the Compensation/Incentive Committee shall have full
         authority to act in the matter of selection of all Key Employees and in
         determining the number of Stock Incentives to be granted to them.

              (b) The Compensation/Incentive Committee may establish such rules
         and regulations, not inconsistent with the provisions of this Plan, as
         it deems necessary to determine eligibility to participate in this Plan
         and for the proper administration of this Plan, and may amend or revoke
         any rule or regulation so established. The Compensation/Incentive
         Committee may make such determinations and interpretations under or in
         connection with this Plan as it deems necessary or advisable. All such
         rules, regulations, determinations and interpretations shall be binding
         and conclusive upon the Corporation, its Subsidiaries, its stockholders
         and all employees, and upon their respective legal representatives,
         beneficiaries, successors and assigns and upon all other persons
         claiming under or through any of them.

              (c) Members of the Board of Directors and members of the
         Compensation/Incentive Committee acting under this Plan shall be fully
         protected in relying in good faith upon the advice of counsel and shall
         incur no liability except for gross negligence or willful misconduct in
         the performance of their duties.

     11. GENERAL PROVISIONS:

              (a) Nothing in this Plan nor in any instrument executed pursuant
         hereto shall confer upon any employee any right to continue in the
         employ of the Corporation or a Subsidiary, or shall affect the right of
         the Corporation or of a Subsidiary to terminate the employment of any
         employee with or without cause.

              (b) No shares of Capital Stock shall be issued or transferred
         pursuant to a Stock Incentive unless and until all legal requirements
         applicable to the issuance or transfer of such shares, in the opinion
         of counsel to the Corporation, have been complied with. In connection
         with any such issuance or transfer, the person acquiring the shares
         shall, if requested by the Corporation, give assurances, satisfactory
         to counsel to the Corporation, that the shares are being acquired for
         investment and not with a view to resale or distribution thereof and
         assurances in respect of such other matters as the Corporation or a
         Subsidiary may deem desirable to assure compliance with all applicable
         legal requirements.

              (c) No employee (individually or as a member of a group), and no
         beneficiary or other person claiming under or through him, shall have
         any right, title or interest in or to any shares of Capital Stock
         allocated or reserved for the purposes of this Plan or subject to any
         Stock Incentive except as to such shares of Capital Stock, if any, as
         shall have been issued or transferred to him.

              (d) The Corporation or a Subsidiary may, with the approval of the
         Compensation/Incentive Committee, enter into an agreement or other
         commitment to grant a Stock Incentive in the future to a person who is
         or will be a Key Employee at the time of grant, and, notwithstanding
         any other provision of this Plan, any such agreement or commitment
         shall not be deemed the grant of a Stock Incentive until the date on
         which the Company takes action to implement such agreement or
         commitment.

<PAGE>

              (e) In the case of a grant of a Stock Incentive to an employee of
         a Subsidiary, such grant may, if the Compensation/Incentive Committee
         so directs, be implemented by the Corporation issuing or transferring
         the shares, if any, covered by the Stock Incentive to the Subsidiary,
         for such lawful consideration as the Compensation/Incentive Committee
         may specify, upon the condition or understanding that the Subsidiary
         will transfer the shares to the employee in accordance with the terms
         of the Stock Incentive specified by the Compensation/Incentive
         Committee pursuant to the provisions of this Plan. Notwithstanding any
         other provision hereof, such Stock Incentive may be issued by and in
         the name of the Subsidiary and shall be deemed granted on the date it
         is approved by the Compensation/Incentive Committee, on the date it is
         delivered by the Subsidiary or on such other date between said two
         dates, as the Compensation/Incentive Committee shall specify.

              (f) The Corporation or a Subsidiary may make such provisions as it
         may deem appropriate for the withholding of any taxes which the
         Corporation or a Subsidiary determines it is required to withhold in
         connection with any Stock Incentive.

              (g) Nothing in this Plan is intended to be a substitute for, or
         shall preclude or limit the establishment or continuation of, any other
         plan, practice or arrangement for the payment of compensation or fringe
         benefits to employees generally, or to any class or group of employees,
         which the Corporation or any Subsidiary or other affiliate now has or
         may hereafter lawfully put into effect, including, without limitation,
         any retirement, pension, group insurance, stock purchase, stock bonus
         or stock option plan.

     12. AMENDMENTS AND DISCONTINUANCE:

              (a) This Plan may be amended by the Board of Directors upon the
         recommendation of the Compensation/Incentive Committee, provided that,
         without the approval of the stockholders of the Corporation, no
         amendment shall be made which (i) increases the aggregate number of
         shares of Capital Stock that may be issued or transferred pursuant to
         Stock Incentives as provided in paragraph (a) of Section 4, (ii)
         increases the maximum aggregate number of shares of Capital Stock that
         may be issued or transferred under the Plan to directors of the
         Corporation or of a Subsidiary as provided in paragraph (b) of Section
         4, (iii) increases the maximum aggregate number of Stock Incentives, in
         the form of Options, which may be granted to an individual employee as
         provided in paragraph (a) of Section 6, (iv) withdraws the
         administration of this Plan from the Compensation/Incentive Committee,
         (v) permits any person who is not at the time a Key Employee of the
         Corporation or of a Subsidiary to be granted a Stock Incentive, (vi)
         permits any Option to be exercised more than ten years after the date
         it is granted, (vii) amends Section 9 to extend the date set forth
         therein or (viii) amends this Section 12.

              (b) Notwithstanding paragraph (a) of this Section 12, the Board of
         Directors may amend the Plan to take into account changes in applicable
         securities laws, federal income tax laws and other applicable laws.
         Should the provisions of Rule 16b-3, or any successor rule, under the
         Securities Exchange Act of 1934 be amended, the Board of Directors may
         amend the Plan in accordance therewith.

              (c) The Board of Directors may by resolution adopted by a majority
         of the entire Board of Directors discontinue this Plan.

              (d) No amendment or discontinuance of this Plan by the Board of
         Directors or the Stockholders of the Corporation shall, without the
         consent of the employee, adversely affect any Stock incentive
         theretofore granted to him.

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