**Exhibit        10.9**

 

 

 

|   | **EMPLOYMENT AGREEMENT** |
|--------|--------------------------|

 

 

This Employment Agreement (“Agreement”) is entered into as of        the _____day of _________, 2004, by and between**ENTER        NAME**(“Executive”) and Coventry Health Care, Inc.        ("Employer"), a Delaware corporation with its principal place of business at 6705 Rockledge        Drive, Bethesda, Maryland 20817.

         

|   | **W I T N E S S E T H:** |
|--------|--------------------------|

 

WHEREAS, Executive has been, prior to the date hereof, an employee of the        business conducted by the Employer, and

 

WHEREAS, Employer desires to continue to employ Executive and to be assured        of her continued services in connection with the management of the business conducted by        the Employer upon the terms and conditions hereinafter set forth, and

 

WHEREAS, Executive is willing and desires to continue to be employed by the        Employer to provide such services.

 

NOW, THEREFORE, in consideration of the premises hereof and of the mutual        promises and agreements contained herein, the parties hereto, intending to be legally        bound, hereby agree as follows:

 

1.         **Employment**. Employer hereby agrees to        continue to employ Executive to serve as ENTER TITLE. Executive hereby agrees to such        employment on and after the date hereof under the terms and conditions hereinafter set        forth.

 

2.         **Duties**. Executive shall report to        the**ENTER TITLE**, (the        “Supervisor”). Executive’s powers and duties shall be those normally        associated with such position or as may be delegated or assigned to Executive by her        Supervisor or Employer’s Chief Executive Officer. During the term of this Agreement,        Executive shall also serve without additional compensation in such other offices of the        Employer or its subsidiaries or affiliates to which she may be elected or        appointed.

 

3.         **Term**. Subject to the terms and        conditions set forth herein, Executive shall be employed hereunder for a period of one (1)        year (the “Term”) commencing on the date hereof and shall continue on a year to        year basis thereafter (the “Renewal Term”), until the        Executive’s

 

 

employment terminates as outlined in Sections 8 and 9 herein or until one        party provides the other with a minimum of thirty (30) days prior written notice (the        “Notice”) of termination.

 

4.         **Base Compensation**. For all duties        rendered by Executive, Employer shall pay Executive a base salary ("Base Salary") of no        less**ENTER AMOUNT**($*), annually. The        Base Salary shall be paid to Executive in accordance with Employer’s normal payroll        policies.

 

5.         **Additional Compensation**. During the        period of this Agreement and as a result of employment under this Agreement, Executive        shall receive or be eligible for the following additional compensation:

 

Bonus Compensation: Executive shall be eligible for an annual bonus        (“Bonus”) in accordance with the Company’s Performance Based 162(m)        Plan.

 

Vacation: During each year of this Agreement, Executive shall be entitled to        four (4) weeks paid vacation.

 

Other Benefits: Executive will be eligible for participation in employee        benefit programs available to employees of Employer, including but not limited to,        participation in any profit-sharing, retirement or similar plans established by Employer in        which managerial employees of Employer participate, including any such plan intended to        comply with Section 401(k) of the Internal Revenue Code of 1986, as amended, and any such        plan providing supplemental executive retirement benefits.

 

6.         **Expenses**. Executive shall be reimbursed        for ordinary and necessary business expenses incurred by Executive on behalf of Employer        and its subsidiaries or affiliates upon presentation of vouchers in accordance with the        usual and customary procedure of Employer in relation to such expense items, except that        Employer may elect, at its option, to pay such expense items directly rather than reimburse        Executive therefor.

 

7.         **Extent of Service**. Executive shall        devote substantially all of her working time, attention and energies to the business of the        Employer and shall not, during the term of this Agreement, take, directly or indirectly, an        active role in any other business activity without the prior written consent of the        Employer; but except as provided in Section 12(b), this Section shall not prevent Executive        from serving as a director of other entities not affiliated with Employer, from making real        estate or other investments of a passive nature or from participating in the activities of        a nonprofit charitable organization where such participation does not require a substantial        amount of time and does not adversely affect Executive’s ability to perform her        duties under this Agreement.

 

8.         **Termination of Employment**. Employer may        terminate this Agreement with or without cause at any time with notice (as defined in        Section 3). However, except in the case of a

 

 

Termination With Cause (as defined in Section 21), if the Executive suffers        a Termination Without Cause (as defined in Section 21) or a Constructive Termination (as        defined in Section 21) the following provisions will apply:

 

|   | (a) | Employer shall during the Severance Period (as defined in                        Section 21), continue to pay Executive an amount equal to the Executive's                        Base Salary at the time of termination of employment. Such amount will be                        paid during the Severance Period in installments similar to those being                        received by Executive at the date of termination of employment, and will                        commence as soon as practicable following the date of termination of                        employment. |
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|   | (b) | During the Severance Period Executive and her spouse and                        family will continue to be covered by all Welfare Plans (as defined in                        Section 21), maintained by Employer in which she or her spouse or family                        were participating immediately prior to the date of her termination as if                        she continued to be an employee of Employer; provided that, if                        participation in any one or more of such Welfare Plans is not possible                        under the terms thereof, Employer will provide substantially identical                        benefits to the extent possible. If, however, Executive obtains employment                        with another employer during the Severance Period, such coverage shall be                        provided until the earlier of: (i) the end of the Severance Period or (ii)                        the date on which the Executive and her spouse and family can be covered                        under the plans of a new employer without being excluded from full coverage                        because of any actual pre-existing condition. Executive’s eligibility                        for and the Employer match to the 401(k) Plan, Supplemental Executive                        Retirement Plan and/or any other retirement savings program in which the                        Employee participates shall end at the date of termination of                        employment. |
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|   | (c) | During the Severance Period Executive shall not be entitled                        to accrue any additional vacation, sick or floating holiday                        time. |
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(d)       During the Severance Period        Executive shall not be entitled to reimbursement for fringe benefits such as car allowance,        dues and expenses related to club memberships, and expenses for professional        services.

 

Compensation under Section 8(a) and (b) hereof is contingent upon        Executive's compliance with Section 12 hereof.

 

9.         **Termination by Executive**. Executive may        terminate her employment hereunder at any time upon thirty (30) days prior written notice        (the “Notice”). Upon such termination by Executive, the Employer shall pay the        Executive only her Base Salary due through the date on which her employment is terminated        at the rate in effect at the time of notice of termination. The

 

 

Employer        shall then have no further obligation to Executive under this Agreement, except for the        payout of benefits accrued under any Employee Benefit Plans or other employee        benefits.

 

|   | 10. | **Setoff**. |
|--------|-----|-------------|

 

|   | (a) | With respect to Section 8, payments or benefits payable to                        or with respect to Executive or her spouse pursuant to this Agreement shall                        be reduced by the amount of any claim of Employer against Executive or her                        spouse or any debt or obligation of Executive or her spouse owing to                        Employer.      |
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|   | (b) | With respect to Section 8, payments or benefits payable to                        or with respect to Executive pursuant to this Agreement shall be reduced by                        any amount Executive may earn or receive from employment with another                        employer or other professional services, except as expressly provided in                        Section 8(b). Employee shall notify Employer immediately in writing of the                        date upon which such services or other work commenced and shall provide                        Employer with such documentation as Employer shall require to determine the                        amount of any such setoff. Employee’s failure to provide such written                        notice and documentation as required herein shall immediately release                        Employer from its obligations under this Agreement and Employer shall have                        the right to recover all amounts payable beginning at the point of                        employment with another employer or at the point other professional                        services are rendered. |
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|   | 11. | **Death**. If Executive dies                        during the Severance Period: |
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|   | (a) | All amounts payable hereunder to Executive shall, during the                        remainder of the Severance Period, be paid to her designated beneficiary.                        On the death of the survivor of Executive and her designated beneficiary,                        no further benefits will be paid under the Agreement. |
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|   | (b) | The designated beneficiary (or beneficiaries covered by a                        Trust) of Executive shall, during the remainder of the Severance Period, be                        covered under all Welfare Plans (as defined in Section 21(d)), made                        available by Employer to Executive immediately prior to the date of her                        death to the extent possible. |
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Any benefits payable under this Section 11 are in addition to any other        benefits due to Executive or her beneficiaries (or Trust), from Employer, including, but        not limited to, payments under any Incentive Plans.

 

|   | 12. | **Restrictive                        Covenants**. |
|--------|-----|---------------------------------------------------|

 

 

 

|   | (a) | Confidential Information.                        Executive agrees not to disclose, either during the time she is employed by                        the Employer and for a period of twelve months following termination of                        employment in accordance with the terms of Section 8 herein, to any person                        (other than a person to whom disclosure is necessary in connection with the                        performance of her duties as an employee of Employer or to any person                        specifically authorized by the Chief Executive Officer of Employer) any                        material confidential information concerning the Employer or any of its                        Affiliates, including, but not limited to, strategic plans, customer lists,                        contract terms, financial costs, pricing terms, sales data or business                        opportunities whether for existing, new or developing                        businesses. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

|   | (b) | Non-Competition. During the                        term of employment provided hereunder and for a period of twelve months                        following termination of employment in accordance with the terms of Section                        8 herein, Executive will not directly or indirectly own, manage, operate,                        control or participate in the ownership, management, operation or control                        of, or be connected as an officer, employee, partner, director or otherwise                        with, or any have financial interest in, or aid or assist anyone else in                        the conduct of, any business which is in competition with any business                        conducted by the Employer or any Affiliate of Employer in any state in                        which the Employer or any Affiliate of Employer is conducting business on                        the date of termination or expiration of this Agreement, provided that                        ownership of 5% or less of the voting stock of any public corporation shall                        not constitute a violation hereof. In the event Executive enters into any                        of the foregoing arrangements in competition with Employer or any Affiliate                        of Employer, Executive shall forfeit all rights to payments and other                        benefits under Section 8 above, and not yet paid to Executive under this                        Agreement, as of the violation of the terms of this Section                        12(b). |
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|   | (c) | Non-Solicitation. During the                        term of employment provided for hereunder and for a period of twelve months                        following termination of employment in accordance with the terms of Section                        8 herein, Executive will not (i) directly or indirectly solicit business                        which could reasonably be expected to conflict with the interest of                        Employer or any Affiliate of Employer from any entity, organization or                        person which has contracted with the Employer or any Affiliate of Employer,                        which has been doing business with the Employer or any Affiliate of                        Employer, from which the Employer or any Affiliate of Employer was                        soliciting business at the time of the termination of employment or from                        which Executive knew or had reason to know that Employer or any Affiliate                        of Employer was going to solicit business at the time of termination of                        employment, or (ii) employ, solicit for employment, or advise or recommend                        to any other persons that they employ or solicit for employment, any                        employee of the Employer or any Affiliate of Employer. |
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|   | (d) | Consultation. Executive shall,                        at the Employer's written request, for a period of twelve months following                        termination of her employment, in accordance with the terms of Section 8                        herein, cooperate with the Employer in concluding any matters in which                        Executive was involved during the term of her employment and will make                        herself available for consultation with the Employer on other matters                        otherwise of interest to the Employer. The Employer agrees that such                        requests shall be reasonable in number and will consider Executive's time                        required for other employment and/or employment search. In the event of                        voluntary termination by Executive, Employer agrees to pay Executive a                        reasonable fee for any such consultation services requested by Employer;                        provided, however, Executive agrees to cooperate with Employer and if there                        is no conflict with Executive’s new employer, in concluding any                        matters in which Executive was involved during the term of his                        employment. |
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|   | (e) | Enforcement. Executive and the                        Employer acknowledge and agree that any of the covenants contained in this                        Section 12 herein may be specifically enforced through injunctive relief                        but such right to injunctive relief shall not preclude the Employer from                        other remedies which may be available to it. |
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13.       **Executive Assignment**. No interest of        Executive or her spouse or any other beneficiary under this Agreement, or any right to        receive any payment or distribution hereunder, shall be subject in any manner to sale,        transfer, assignment, pledge, attachment, garnishment, or other alienation or encumbrance        of any kind, nor may such interest or right to receive a payment or distribution be taken,        voluntarily or involuntarily, for the satisfaction of the obligations or debts of, or other        claims against, Executive or her spouse or other beneficiary, including claims for alimony,        support, separate maintenance, and claims in bankruptcy proceedings.

 

14.       **Benefits Unfunded**. All rights of        Executive and her spouse or other beneficiaries under this Agreement shall at all times be        entirely unfunded and no provision shall at any time be made with respect to segregating        any assets of Employer for payment of any amounts due hereunder. Neither Executive nor her        spouse or other beneficiaries shall have any interest in or rights against any specific        assets of Employer, and Executive and her spouse or other beneficiary shall have only the        rights of a general unsecured creditor of Employer.

 

15.       **Notices**. Any notice required or        permitted to be given under this Agreement shall be sufficient if in writing and sent by        registered or certified mail to her primary residence in the case of Executive, or to its        principal office in the case of the Employer and the date of receipt shall be deemed the        date which such notice has been provided.

 

16.       **Waiver of Breach**. The waiver by either        party of any provision of this Agreement shall not operate or be construed as a waiver of        any subsequent breach by the other party.

 

 

 

17.       **Assignment**. The rights and obligations        of the Employer under this Agreement shall inure to the benefit of and shall be binding        upon the successors and assigns of the Employer. The Executive acknowledges that the        services to be rendered by her are unique and personal, and Executive may not assign any of        her rights or delegate any of her duties or obligations under this Agreement.

 

18.       **Entire Agreement**. This instrument        contains the entire agreement of the parties and supersedes all other prior agreements,        employment contracts and understandings, both written and oral, express or implied with        respect to the subject matter of this Agreement and may not be changed orally but only by        an agreement in writing signed by the party against whom enforcement of any waiver, change,        modification, extension or discharge is sought.

 

19.       **Applicable Law**. This Agreement shall be        governed by the laws of the State of Maryland, without giving effect to the principles of        conflicts of law thereof.

 

20.       **Headings**. The sections, subjects and        headings of this Agreement are inserted for convenience only and shall not affect in any        way the meaning or interpretation of this Agreement.

 

|   | 21. | **Definitions**. For                        purposes of this Agreement: |
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|   | (a) | "Affiliate" shall have the meaning set forth in Rule                        144(a)(1) promulgated under the Securities Act of 1933, as                        amended. |
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|   | (b) | “Constructive Termination” shall mean                        termination by the Executive which follows (i) reassignment of duties,                        responsibilities, or reporting relationships that are not at least the                        equivalent of her then current position as set forth in Section 1.2, (ii)                        the intentional or material breach by the Company of this Agreement, or                        (iii) a reassignment to a geographic location more than fifty (50) miles                        from your work location as of the date of this Agreement. The Executive                        shall have a period of ninety (90) days after termination of her employment                        to assert against the Employer that she suffered a Constructive                        Termination, and after the expiration of such ninety (90) day period, the                        Executive shall be deemed to have irrevocably waived the right to such                        assertion. |
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|   | (c) | "Severance Period" shall mean the period beginning on the                        day after the Executive's employment with Employer ends after a Termination                        Without Cause or Constructive Termination, as described in Section 8, and                        ending on the date that follows twelve months thereafter. |
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|   | (d) | “Termination With Cause” shall mean termination                        by the Employer, acting in good faith, by written notice to the Executive                        specifying the event relied upon for |
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such termination, due to; (i) the Executive’s indictment or conviction        of a felony, (ii) the Executives’ intentional perpetration of a fraud, theft,        embezzlement or other acts of dishonesty, (iii) the Executive’s intentional breach of        a trust of fiduciary duty which materially affects the Employer or its        shareholders.

         

|   | (e) | “Termination Without Cause” shall mean                        termination by the Employer other than due to the Executive’s death                        or “Termination With Cause”. |
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|   | (f) | "Welfare Plans" shall mean any medical, vision and dental                        coverage made available by Employer in which Executive is eligible to                        participate. |
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22.       **Counterparts**. This Agreement may be        executed in counterparts, each of which shall be deemed an original.

 

23.       **Severability**. In the event any provision        of this Agreement is held illegal or invalid, the remaining provisions of this Agreement        shall not be affected thereby. In the event that Section 12(b) is determined by a court of        competent jurisdiction to be invalid due to overbreadth, such Section 12(b) shall be        constructed as narrowly as necessary to be enforceable.

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the day and        year first written above.

 

|   | ______________________________ |
|--------|--------------------------------|

|   | **ENTER NAME** |
|--------|----------------|

 

 

|   | COVENTRY HEALTH CARE, INC. |
|--------|----------------------------|

 

 

|   | By: | ______________________________ |
|--------|-----|--------------------------------|

|   | **ENTER NAME** |
|--------|----------------|

|   | **ENTER TITLE** |
|--------|-----------------|