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                                                                    EXHIBIT 10.9

                     NATURAL GAS LIQUIDS PURCHASE AGREEMENT

     This Natural Gas Liquids Purchase Agreement ("Agreement") is made and
entered into this 24th day of May, 2002, by and between MARKWEST ENERGY
APPALACHIA, L.L.C., a Delaware limited partnership ("MEA"), and MARKWEST
HYDROCARBON, INC., a Delaware corporation ("MarkWest"). MEA and MarkWest may be
referred to individually as "Party", or collectively as "Parties".

     Section 1.    SCOPE OF AGREEMENT AND GENERAL TERMS AND CONDITIONS. MEA
agrees to deliver, or cause to be delivered, and to sell Plant Products, as
defined below, to MarkWest, and MarkWest agrees to receive and purchase those
Plant Products, all in accordance with this Agreement. This Agreement
incorporates and is subject to all of the General Terms and Conditions attached
hereto, together with any other Exhibits attached hereto.

     Section 2.    EFFECTIVE DATE. The date on which the obligations and duties
of the Parties shall commence, being the "Effective Date", shall be May 24,
2002.

     Section 3.    TERM. This Agreement shall remain in full force and effect
from the Effective Date for a period of 10 years thereafter ("Primary Term"),
and shall thereafter continue in force on a year-to-year basis until terminated
by either Party upon 60 days written notice in advance of the expiration of the
Primary Term or of any yearly extension thereof.

     Section 4.    CONSIDERATION.

     A. As full consideration for the sale of the Plant Products attributable
     from the Raw Make acquired by MEA under the Maytown Agreement, as defined
     below, or any other Plant Products sold to MarkWest by MEA at the Siloam
     Facility, MarkWest shall pay MEA as follow:

             i.    MarkWest shall pay to MEA 100% of the Net Sales Price per
             gallon (for the Accounting Period in which the Plant Products are
             sold), times the gallons of individual Plant Products contained in
             the Raw Make acquired by MEA under the Maytown Agreement, as
             determined at the Measurement Point; and shall pay to MEA 100% of
             the Net Sales Price per gallon (for the Accounting Period in which
             the Plant Products are sold), times the gallons of other individual
             Plant Products sold by MEA at the Siloam Facility.

     Section 5.    NOTICES. All notices, statements, invoices or other
communications required or permitted between the Parties shall be in writing and
shall be considered as having been given if delivered by mail, courier, hand
delivery, or facsimile to the other Party at the designated address or facsimile
numbers. Normal operating instructions can be delivered by telephone or other
agreed means. Notice of events of Force Majeure may be made by telephone and
confirmed in writing within a reasonable time after the telephonic notice.
Monthly statements, invoices, payments and other communications shall be deemed
delivered when actually received. Either Party may change its address or
facsimile and telephone numbers upon written notice to the other Party:

     MarkWest:

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             Address:       155 Inverness Drive West, Suite 200
                            Englewood, Colorado 80112
                            Attn: Contract Administration
                            Fax: (303) 290-8769

     MEA:

             Address:       155 Inverness Drive West, Suite 200
                            Englewood, Colorado 80112
                            Attn: Contract Administration
                            Fax: (303) 290-8769

     Section 6.    EXECUTION. This Agreement may be executed in any number of
counterparts, each of which shall be considered and original, and all of which
shall be considered one instrument.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first
set forth above.

                                        MARKWEST HYDROCARBON, INC.

                                        By:    /S/ ARTHUR J. DENNEY
                                           -----------------------------------
                                        Name:  Arthur J. Denney
                                        Title: Executive Vice President

                                        MARKWEST ENERGY APPALACHIA, L.L.C.

                                        By:    /S/ GERALD A. TYWONIUK
                                           -----------------------------------
                                        Name:  Gerald A. Tywoniuk
                                        Title: Senior Vice President and Chief
                                               Financial Officer

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                          GENERAL TERMS AND CONDITIONS
                   ATTACHED TO AND MADE A PART OF THAT CERTAIN
                     NATURAL GAS LIQUIDS PURCHASE AGREEMENT
                                     BETWEEN
                    MARKWEST HYDROCARBON, INC., AS "MARKWEST"
                                       AND
                  MARKWEST ENERGY APPALACHIA, L.L.C., AS "MEA"
                                     DATED:

ARTICLE 1: DEFINITIONS

ACCOUNTING PERIOD. The period commencing at 10:00 a.m., Eastern Time, on the
first day of a calendar month and ending at 10:00 a.m., Eastern Time, on the
first day of the next succeeding month.

DELIVERY POINT. The point at which Plant Products are delivered to MarkWest,
being the Products Delivery Point as defined in the Fractionation Agreement.

FORCE MAJEURE. Any cause or condition not within the commercially reasonable
control of the Party claiming suspension and which by the exercise of
commercially reasonable diligence, such Party is unable to prevent or overcome.

FRACTIONATION AGREEMENT. That certain Fractionation, Storage and Loading
Agreement between MarkWest and MEA, of even date herewith.

INCIDENTAL LOSSES OR GAINS. The incidental losses of Raw Make and/or Plant
Products incurred in MEA's facilities, or the losses or gains of Raw Make and/or
Plant Products incurred due to variations in measurement equipment.

INDEMNIFYING PARTY and INDEMNIFIED PARTY. As defined in Article 8, below.

LOSSES. Any actual loss, cost, expense, liability, damage, demand, suit,
sanction, claim, judgment, lien, fine or penalty asserted by a third Party
unaffiliated with the Party incurring such, and which are incurred by the
applicable Indemnified Party on account of injuries (including death) to any
person or damage to or destruction of any property, sustained or alleged to have
been sustained in connection with or arising out of the matters for which the
Indemnifying Party has indemnified the applicable Indemnified Party.

MAYTOWN AGREEMENT. That certain Gas Processing Agreement (Maytown), between
Equitable Production Company and MarkWest Hydrocarbon, Inc., dated May 16, 1999,
as amended, and that has been assigned by MarkWest Hydrocarbon, Inc., to MEA.

MEASUREMENT POINT. The inlet flanges of the pipeline at or near the tailgate of
the Maytown Plant, as defined in the Maytown Agreement, where MEA delivers, or
causes to be delivered, Raw Make to MarkWest.

NET SALES PRICE. The Net Sales Price as defined in and determined in accordance
with the Maytown Agreement.

PIPELINE AGREEMENT. That certain Pipeline Liquids Transportation Agreement
between MarkWest and MEA, of even date herewith.

PLANT PRODUCTS. Ethane, propane, iso-butane, normal butane, iso-pentane, normal
pentane, hexanes plus, any other liquid hydrocarbon product, or any mixtures
thereof, and any incidental methane included in any of the foregoing, as
contained in the Raw Make acquired by MEA under the Maytown Agreement.

1 of General Terms and Conditions
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RAW MAKE. A combined stream of propane and heavier liquefied hydrocarbons,
including incidental ethane.

SILOAM FACILITY. MEA's Siloam fractionation facility located near South Shore,
Kentucky, including any treating equipment, Products separation and
fractionation vessels, all above ground Products storage vessels and all below
ground Products storage caverns and facilities, and associated condensing,
heating, pumping, conveying, and other equipment and instrumentation; including
all structures associated with those facilities; and, all Products loading
facilities, including railcar loading, truck loading and barge loading
facilities and including all easements, rights-of-way, and other property rights
pertaining to the construction and operation of those facilities; wherever those
facilities, structures, easements, rights-of-way, and other property rights are
located.

ARTICLE 2: MEA'S COMMITMENTS

2.1. MEA hereby commits and agrees to deliver and sell to MarkWest, at the
Delivery Point all of the Plant Products produced from the Raw Make acquired by
MEA under the Maytown Agreement, as adjusted for Incidental Losses or Gains,
together with such other Plant Products to be sold at the Siloam Facility by
MEA.

ARTICLE 3: MARKWEST'S COMMITMENTS

3.1. MarkWest hereby commits and agrees to receive and purchase from MEA, at the
Delivery Point all of the Plant Products produced from the Raw Make acquired by
MEA under the Maytown Agreement, as adjusted for Incidental Losses or Gains,
together with such other Plant Products to be purchased at the Siloam Facility
from MEA.

ARTICLE 4: QUALITY

4.1. The Plant Products sold under this Agreement shall be of the same quality
as required under in Exhibit A, attached to the Fractionation Agreement.

ARTICLE 5: MEASUREMENT EQUIPMENT AND PROCEDURES AND ANALYSES

5.1  All measurements, analyses, procedures and methods for the measurement of
and determination of composition of the Raw Make, will be conducted in
accordance with the measurement procedures set forth in the Pipeline Agreement
and/or the Fractionation Agreement, as applicable.

5.2. All measurements, analyses, procedures and methods for the measurement of
and determination of the composition of the Plant Products shall in conformance
with the procedures set forth for Plant Products in the Fractionation Agreement.

ARTICLE 6: PAYMENTS

6.1. Based on the measurements set forth in this Agreement, MEA shall provide
MarkWest with a statement explaining fully how all payments due under the terms
of this Agreement were determined not later than the applicable "Payment Date".
As used herein, the Payment Dates shall be (i) the last day of each month,
covering all deliveries hereunder during the period of the 1st day through the
15th day of that same month ("First Payment Date"), and (ii) the 15th day of
each month, covering all deliveries hereunder during the period of the 16th day
through the last day of the immediately preceding month ("Second Payment Date).

6.2  It is understood that the payments made on the First Payment Date and on
the Second Payment Date shall be based upon MarkWest's reasonable estimate of
the Net Sales Price for the Accounting Period in which the Plant Products were
delivered to

2 of General Terms and Conditions
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MarkWest. Those payments made on the First Payment Date will also include
adjustments, if any, to payments made during the month prior to the month in
which the First Payment Date occurs, as necessary to adjust for differences
between the estimated Net Sales Price used in making payments and the actual
applicable Net Sales Price.

6.3. Either Party, on 10 days prior written notice, shall have the right at its
expense, at reasonable times during business hours, to audit the books and
records of the other Party to the extent necessary to verify the accuracy of any
statement, measurement, computation, charge, or payment made under or pursuant
to this Agreement.

ARTICLE 7: FORCE MAJEURE

7.1. In the event a Party is rendered unable, wholly or in part, by Force
Majeure, to carry out its obligations under this Agreement, other than the
obligation to make any payments due hereunder, the obligations of that Party, so
far as they are affected by Force Majeure, shall be suspended from the inception
and during the continuance of the inability, and the cause of the Force Majeure,
as far as possible, shall be remedied with commercially reasonable diligence.
The Party affected by Force Majeure shall provide the other Party with written
notice of the Force Majeure event, with reasonably full detail of the Force
Majeure within a reasonable time after the affected Party learns of the
occurrence of the Force Majeure event. The settlement of strikes, lockouts, and
other labor difficulty shall be entirely within the discretion of the Party
having the difficulty and nothing herein shall require the settlement of
strikes, lockouts, or other labor difficulty.

ARTICLE 8: LIABILITY AND INDEMNIFICATION

8.1. As among the Parties hereto, MEA and any of its designees shall be in
custody, control and possession of the Plant Products hereunder, until the Plant
Products are delivered to MarkWest at the Delivery Point.

8.2. As among the Parties hereto, MarkWest and any of its designees shall be in
custody, control and possession of the Plant Products hereunder after the Plant
Products are delivered at the Delivery Point.

8.3. Each Party ("Indemnifying Party") hereby covenants and agrees with the
other Party, and its affiliates (except for the Indemnifying Party itself), and
each of their directors, officers and employees ("Indemnified Parties"), that
except to the extent caused by the Indemnified Parties' gross negligence or
willful conduct, the Indemnifying Party shall protect, defend, indemnify and
hold harmless the Indemnified Parties from, against and in respect of any and
all Losses incurred by the Indemnified Parties to the extent those Losses arise
from or are related to: (a) the Indemnifying Party's facilities; or (b) the
Indemnifying Party's possession and control of the Raw Make or Plant Products,
as applicable.

ARTICLE 9: MISCELLANEOUS

9.1. The failure of any Party hereto to exercise any right granted hereunder
shall not impair nor be deemed a waiver of that Party's privilege of exercising
that right at any subsequent time or times.

9.2. This Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of Colorado without regard to choice of law
principles.

9.3. This Agreement shall extend to and inure to the benefit of and be binding
upon the Parties, and their respective successors and assigns, including any
assigns of MarkWest's Interests covered by this Agreement. No assignment of this
Agreement shall be binding on either of the Parties until the first day of the
Accounting Period following the date a certified copy of the instrument
evidencing that sale, transfer,

3 of General Terms and Conditions
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assignment or conveyance has been delivered to the other Party. Further, each
assigning Party shall notify its assignee of the existence of this Agreement and
obtain a ratification of this Agreement prior to such assignment. No assignment
by either Party shall relieve that Party of its continuing obligations and
duties hereunder without the express consent of the other Party.

9.4. Any change, modification or alteration of this Agreement shall be in
writing, signed by the Parties; and, no course of dealing between the Parties
shall be construed to alter the terms of this Agreement.

9.5  This Agreement, including all exhibits and appendices, contains the entire
agreement between the Parties with respect to the subject matter hereof, and
there are no oral or other promises, agreements, warranties, obligations,
assurances, or conditions precedent, affecting it.

9.6  NO BREACH OF THIS AGREEMENT OR CLAIM FOR LOSSES UNDER ANY INDEMNITY
OBLIGATION CONTAINED IN THIS AGREEMENT SHALL CAUSE ANY PARTY TO BE LIABLE FOR,
NOR SHALL LOSSES INCLUDE, ANY DAMAGES OTHER THAN ACTUAL AND DIRECT DAMAGES, AND
EACH PARTY EXPRESSLY WAIVES ANY RIGHT TO CLAIM ANY OTHER DAMAGES, INCLUDING,
WITHOUT LIMITATION, CONSEQUENTIAL, SPECIAL, INDIRECT, PUNITIVE OR EXEMPLARY
DAMAGES.

9.7  DISPUTE RESOLUTION. Any dispute arising under this Agreement ("Arbitrable
Dispute") shall be referred to and resolved by binding arbitration in Denver,
Colorado, by three (3) arbitrators, in accordance with the rules and procedures
of the Judicial Arbiter Group ("JAG"); and, to the maximum extent applicable,
the Federal Arbitration Act (Title 9 of the United States Code). If there is any
inconsistency between this Section and any statute or rules, this Section shall
control. Arbitration shall be initiated within the applicable time limits set
forth in this Agreement and not thereafter or if no time limit is given, within
the time period allowed by the applicable statute of limitations, by one party
("Claimant") giving written notice to the other party ("Respondent") and to JAG,
that the Claimant elects to refer the Arbitrable Dispute to arbitration, and
that the Claimant has appointed an arbitrator, who shall be identified in such
notice. The Respondent shall notify the Claimant and JAG within thirty (30) Days
after receipt of Claimant's notice, identifying the arbitrator the Respondent
has appointed. The two (2) arbitrators so chosen shall select a third arbitrator
within thirty (30) Days after the second arbitrator has been appointed (upon
failure of a party to act within the time specified for naming an arbitrator,
such arbitrator shall be appointed by the administrator's designee). MarkWest
shall pay the compensation and expenses of the arbitrator named by or for it,
MEA shall pay the compensation and expenses of the arbitrator named by or for
it, and MarkWest and MEA shall each pay one-half of the compensation and
expenses of the third arbitrator. All arbitrators must be neutral parties who
have never been officers, directors, employees, contractors or agents of the
parties or any of their Affiliates, must have not less than ten (10) years
experience in the oil and gas industry, and must have a formal
financial/accounting, engineering or legal education. The parties shall have all
rights of discovery in accordance with the Federal Rules of Civil Procedure. The
hearing shall be commenced within thirty (30) Days after the selection of the
third arbitrator. The parties and the arbitrators shall proceed diligently and
in good faith in order that the arbitral award shall be made as promptly as
possible. The interpretation, construction and effect of this Agreement shall be
governed by the laws of Colorado, and to the maximum extent allowed by law, in
all arbitration proceedings the laws of Colorado shall be applied, without
regard to any conflicts of laws principles. All statutes

4 of General Terms and Conditions
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of limitation and of repose that would otherwise be applicable shall apply to
any arbitration proceeding. The tribunal shall not have the authority to grant
or award indirect or consequential damages, punitive damages or exemplary
damages.

5 of General Terms and ConditionsQuickLinks
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Exhibit 10.24    
  

 
 

EMPLOYMENT AGREEMENT    
  

        THIS EMPLOYMENT AGREEMENT ("Agreement") is among Anthem, Inc., an Indiana mutual insurance company (the
"Company"), with offices located at 120 Monument Circle, Indianapolis, Indiana, Trigon Healthcare, Inc., a Virginia Corporation ("Trigon"), with offices located at 2015 Staples Mill Road,
Richmond, Virginia, and Thomas G. Snead, Jr. (the "Executive"), dated as of the 7th day of June, 2002. 

 
 

W I T N E S S E T H:    
  

        WHEREAS, the Executive is currently employed as Chief Executive Officer of Trigon, and is a party to the Executive
Continuity Agreement between Trigon and the Executive, dated September 16, 1998 and as amended May 19, 1999 (the "Executive Continuity Agreement"), as well as the Employment Agreement
between Trigon and the Executive, dated May 19, 1999 (collectively with the Executive Continuity Agreement, the "Trigon Agreements"); 

        WHEREAS, pursuant to the Agreement and Plan of Merger dated as of the date hereof among the Company, AI Sub Acquisition Corp. ("Merger
Sub") and Trigon (the "Merger Agreement"), Trigon will be merged with and into a subsidiary of the Company which will survive as a wholly owned subsidiary of the Company (the "Merger"); 

        WHEREAS, the Company (which hereinafter also includes subsidiaries of the Company) desires to assure itself of the services of the
Executive for the period provided in this Agreement, and the Executive is willing to serve in the employ of the Company on a full-time basis for such period, all in accordance with the
terms and conditions contained in this Agreement; and 

        WHEREAS, the Company, Trigon and the Executive entered into an Employment Agreement, dated as of April 27, 2002, which they desire to
replace in its entirety and supercede with this Agreement, which constitutes the entire employment agreement of the parties and supersedes all prior employment agreements addressing the terms,
conditions, and issues contained herein; 

        NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Company and the Executive hereby agree as follows: 

        1.    Title
and Condition of Employment. The Company hereby employs the Executive as the President of the Southeast Region of the Company and the Executive hereby accepts such
employment for the period provided for in Section 2, all upon the terms and conditions contained in this Agreement. This Agreement shall be effective as of the Closing Date (as defined in the
Merger Agreement), and, as of the Closing Date, shall replace and supersede the Trigon Agreements, except as set forth in Section 34. Notwithstanding the foregoing, Executive agrees that for
purposes of the vesting of Trigon stock options provided in Section 5.3 of the Executive Continuity Agreement or in any other benefit, plan or award agreement, stockholder approval of the
Merger ("Stockholder Approval") shall not constitute a Change in Control (as defined in the Executive Continuity Agreement); provided that all the
Trigon stock options held by the Executive shall vest upon the Effective Time (as defined in the Merger Agreement); provided further that in the event
Executive's employment is terminated other than For Cause or for death or Disability (as defined herein) following Stockholder Approval, all unvested Trigon stock options shall become fully vested
upon such termination. Executive agrees that he will exercise no more than 33% of his currently vested Trigon options (excluding any Trigon options the exercise period of which expires prior to the
Closing Date) prior to the Closing Date. With the exception of the Executive's waivers contained in the two preceding sentences, this Agreement shall be of no effect unless, and until, the Merger is
consummated. This Agreement will be void ab initio and of no further force or effect in the event the Merger Agreement is terminated. As a condition to the Executive's employment, the Executive
affirms and represents that except for the Trigon Agreements which will terminate pursuant to this Section 1 as of the Effective Time, the Executive is under no 

 

obligation to any former employer or other person which is in any way inconsistent with, or which imposes any restriction upon, the employment of the Executive by the Company or the Executive's
undertakings under this Agreement. 

        2.    Term
of Employment. Unless sooner terminated pursuant to Section 7, the term of the Executive's employment under this Agreement shall be for a period commencing on
the Closing Date and ending on the third anniversary thereof (the "Term"). 

        3.    Duties.
During the Term, the Executive shall serve as the President of the Southeast Region of the Company, reporting directly to the Chief Executive Officer of the
Company, and shall provide executive, administrative and managerial services consistent with such position and perform such other reasonable employment duties as the Chief Executive Officer may from
time to time prescribe. The Executive shall also serve as a director of any of the Company's subsidiaries to which he is elected. 

        The
Executive shall, except to the extent approved by the Chief Executive Officer, (i) devote his full-time to the services required of the Executive,
(ii) render his services exclusively to the Company, and (iii) use his best efforts, judgment, and energy to improve and advance the business and interests of the Company in a manner
consistent with the duties of the Executive's position. The Executive may serve on boards of directors or advisory boards of businesses that are not competitors of the Company or which do not create a
conflict of interest or on the boards of civic and not for profit organizations including, without limitation, those boards on which he is serving as of the date hereof. The Executive will disclose in
writing such memberships to the Chief Executive Officer as soon as practicable following the execution of this Agreement and shall disclose such information, at least, annually thereafter. 

        4.    Compensation.
As compensation for the services to be performed by the Executive during the Term, the Company shall provide to the Executive: 

        (a)  continuation
of his current salary of eight hundred fifty thousand dollars ($850,000) through December 31, 2002, and beginning on January 1, 2003, an
annual base salary of not less than four hundred seventy five thousand dollars ($475,000) ("Salary"); 

        (b)  continuation
of his current target annual incentive of sixty percent (60%) of the Salary through December 31, 2002, and beginning on January 1, 2003, a
target annual incentive opportunity of not less than eighty percent (80%) of the Salary ("Target Annual Incentive"). The performance goals required to earn the Target Annual Incentive shall be
approved by the Board of Directors and communicated to the Executive prior to the end of the first quarter of the year for which the opportunity pertains; and 

        (c)  continuation
of his current target annualized long-term incentive opportunity of forty percent (40%) of the Salary through December 31, 2002, and
beginning on January 1, 2003, a target annualized long-term incentive opportunity of not less than ninety percent (90%) of the Salary ("Target Long-Term Incentive"). The
performance goals required to earn the Target Long-Term Incentive shall be approved by the Board of Directors and communicated to the Executive prior to the end of the first quarter of the
performance period for which the opportunity pertains. If such performance period is longer than one year, the Target Long-Term Incentive opportunity shall be adjusted accordingly based on
the number of years in the performance period. 

        (d)  during
2003, Executive shall be granted an option to purchase 40,000 shares of common stock of the Company pursuant to the terms of the Company's 2001 Stock Incentive
Plan on terms consistent with 2003 stock option grants made to similarly situated executives of the Company, on a date no later than
the 2003 stock option grants are made to such executives. During 2004, Executive shall receive option grants on a basis consistent with option grants made to similarly situated executives of the
Company. 

2

 

        (e)  Beginning
January 1, 2004, the Company shall pay to the Executive the greater of the Salary, Target Annual Incentive and Target Long-Term Incentive as
provided in paragraphs (a), (b) and (c) above or the combination of Salary, Target Annual Incentive and Target Long-Term Incentive paid to similarly situated executives of
the Company. Should the Company elect to increase any element of the Executive's compensation during the Term, the Agreement shall be deemed amended to incorporate the new increased Salary or Target
Annual Incentive or Target Long-Term Incentive effective as of the date specified for the increase. The payment of any compensation hereunder shall be subject to applicable withholding and
payroll taxes, and such other deductions as may be required under the Company's employee benefit plans, and shall be paid in accordance with the Company's normal payroll and incentive administration
practices as they may exist from time to time. 

        5.    Benefits.
In addition to the payments set forth in Section 4, the Executive shall: 

        (a)  be
eligible to participate in all fringe benefits, paid time off program, incentive plans, and retirement programs, both tax-qualified and
non-qualified, that may be provided by the Company for its key executives, in accordance with the provisions of any such programs or plans; 

        (b)  be
eligible to participate in any life, disability or other similar insurance plans, medical and dental plans or other employee welfare benefit plans that may be
provided by the Company for its key executives, in accordance with the provisions of any such plans; and 

        (c)  be
eligible to participate in any postretirement medical coverage comparable to the plan that is provided by the Company for its key executives, in accordance with the
provisions of such plans as in effect on the date hereof, but with the payment of whatever contribution that the Company requires that other such retirees would pay for such coverage. 

        6.    Expenses.
The Company shall, in accordance with and to the extent of its policies, pay all ordinary and necessary business expenses incurred by the Executive in
performing his duties as a key executive including, but not limited to, first class air travel, airline travel clubs, and initiation and other membership fees and business use charges at one luncheon
club of the Executive's choosing. The Executive shall account promptly for all such business expenses in the manner prescribed by the Company and shall submit, on request, all records necessary to
confirm that the Executive's business use of any club is more than fifty percent (50%) of the Executive's total use of such club. 

        7.    Termination.
The Executive's employment shall be terminated upon the occurrence of any of the following: 

        (a)  the
death of the Executive; 

        (b)  the
Executive's disability (as such term is defined in the Company's executive long-term disability plan) ("Disability"); 

        (c)  the
termination of employment by the Executive for Good Reason (as defined below); 

        (d)  the
termination of the employment by the Executive for any reason other than Good Reason; 

        (e)  the
termination of employment by the Company For Cause (as defined below); 

        (f)    the
termination of employment by the Company other than For Cause; or 

        (g)  the
termination of employment by mutual agreement of the Executive and the Company through an Approved Retirement (as defined below). 

        The
term for "Good Reason" shall mean (i) a reduction in Salary or Target Annual Incentive or Target Long-Term Incentive opportunity, (ii) a reduction in
benefits below the level of other key executives, (iii) a diminution in status, office or title, (iv) a change in the reporting relationship from 

3

 

the direct supervision by the Chief Executive Officer, (v) an assignment of duties inconsistent with the Executive's position as a key executive or materially less than exists as of the
effective date of this Agreement, which duties are those commonly associated with the position of President of the Southeast Region of the Company, or (vi) an assignment outside of the greater
Richmond, Virginia area or the imposition of business travel obligations substantially greater than existing business travel obligations. In order to be effective, the Executive must give the Chief
Executive Officer and the Chairman of the Board of Directors of the Company at least sixty (60) calendar days advance written notice of his intent to terminate his employment for "Good Reason"
setting forth the specific action(s) by the Company which triggered the notice and such written notice must be received by the Company no more than one hundred eighty (180) calendar days after
the complained-of action(s) was implemented. Once written notice is received by the Company, the Chairman of the Board and the Compensation Committee of the Board of Directors shall
promptly meet to consider the notice and the complained-of actions. The
Company shall have thirty (30) calendar days within which to concur that "Good Reason" exists or to cure or remedy the action(s) giving rise to the Executive's notice. If cured or remedied,
there shall be no "Good Reason" for the Executive terminating his employment, and the Executive shall not be entitled to the payments set forth in Section 13. 

        The
term "For Cause" or "Cause" shall mean a reasonable determination by the Company that the Executive (i) has been convicted of a felony, (ii) has engaged in an activity
which, if proven in a criminal proceeding, could result in conviction of a felony involving dishonesty or fraud, or (iii) has willfully engaged in gross misconduct likely to be materially
damaging or materially detrimental to the Company. In order to be effective, the Company must give the Executive at least sixty (60) calendar days advance written notice of its intent to
terminate his employment "For Cause" setting forth the specific action(s) by the Executive which triggered the notice and such written notice must be received by the Executive no more than one hundred
eighty (180) calendar days after the Company learned of the action(s) giving rise to the "For Cause" termination. 

        The
term "Approved Retirement" shall mean retirement as defined in the Company's qualified retirement plans and with approval by the Chief Executive Officer of the Company. Once the
Executive has been granted Approved Retirement, the provisions of Section 11 govern instead of Section 8 or 9 in the case of the Executive's death or Disability prior to the date of
retirement. 

        8.    Death
of the Executive. In the event the Executive's employment is terminated as a result of the Executive's death, except as otherwise provided herein, the Company shall
have no further obligations or liabilities under this Agreement except that the Company shall pay the following to the estate of the Executive: 

        (a)  for
the lesser of twelve (12) months or the unexpired portion of the Term, the Executive's Salary; 

        (b)  all
unvested, prior Long-Term Incentive awards; 

        (c)  the
Annual Incentive and Long-Term Incentive awards for the year of death, based upon the achievement of the performance goals (or, in the year in which the
Closing Date occurs, based upon target performance, if greater) for the plans for the entire year of death prorated to reflect the full number of months the Executive was employed during that year; 

        (d)  for
the remainder of the year of death, an amount equal to the Target Annual Incentive and Target Long-Term Incentive opportunity which the Executive would
otherwise have been eligible to receive as of the effective date of the Executive's death; 

        (e)  for
the lesser of twelve (12) months or the unexpired portion of the Term, the DEC plan core and cash credits for which the Executive would otherwise have been
eligible to receive as of the effective date of the Executive's death; and 

4

 

        (f)    the
Executive's supplemental retirement benefits as described in Section 4 of the Executive Continuity Agreement (the "SERP Payment") which shall be equal to
$768,503. 

        9.    Disability
of the Executive. In the event the Executive's employment is terminated as a result of the Executive's Disability, except as otherwise provided herein, the
Company shall have no further obligations or liabilities under this Agreement except that the Company shall pay the following to the Executive if the Executive satisfies the terms of
Section 15: 

        (a)  for
the lesser of twelve (12) months or the unexpired portion of the Term, the Executive's Salary, reduced by any payments to be received by the Executive under
the Company's Executive Long-Term Disability Plan for the same period; 

        (b)  all
unvested, prior Long-Term Incentive awards; 

        (c)  the
Annual Incentive and Long-Term Incentive awards for the year of Disability, based upon the achievement of the performance goals (or, in the year in which
the Closing Date occurs, based upon target performance, if greater) for the plans for the entire year of Disability prorated to reflect the full number of months the Executive was employed during that
year; 

        (d)  for
the remainder of the year of Disability, an amount equal to the Target Annual Incentive and Target Long-Term Incentive opportunity which the Executive
would otherwise have been eligible to receive as of the effective date of the Executive's Disability; 

        (e)  for
the lesser of twelve (12) months or the unexpired portion of the Term, the medical and dental plan benefits and DEC plan core and cash credits for which the
Executive would otherwise have been eligible to receive as of the effective date of the Executive's Disability; and 

        (f)    the
SERP Payment. 

        10.  Executive-Initiated
Termination Other Than For Good Reason or Company-Initiated For Cause. If the Executive terminates this Agreement for other than Good Reason or the
Company terminates this Agreement For Cause, except as otherwise provided herein, the Company shall have no further obligations and liabilities under this Agreement after the termination of employment
except that the Company shall pay to the Executive amounts due to the Executive in accordance with the provisions of programs or plans that may be provided by the Company for its key executives, if
the Executive satisfies the terms of Section 15. 

        11.  Termination
Other Than For Cause or Approved Retirement. In the event the Executive's employment is terminated by the Company other than For Cause or for an Approved
Retirement, except as otherwise provided herein, the Company shall have no further obligations or liabilities under this Agreement except that the Company shall pay the following to the Executive if
the Executive satisfies the terms of Section 15: 

        (a)  for
the remainder of the Term, the Executive's Salary; 

        (b)  all
unvested, prior Long-Term Incentive awards; 

        (c)  the
Annual Incentive and Long-Term Incentive awards for the year of termination, based upon the achievement of the performance goals (or, in the year in
which the Closing Date occurs, based upon target performance, if greater) for the plans for the entire year of termination prorated to reflect the full number of months the Executive was employed
during that year; 

        (d)  for
the remainder of the Term, an amount equal to eighty percent (80%) of any Target Annual Incentive and Target Long-Term Incentive opportunity which the
Executive would otherwise have been eligible to receive as of the effective date of the Executive's termination of employment; 

5

 

        (e)  for
the remainder of the Term, an amount equal to twenty percent (20%) of any Target Annual Incentive and Target Long-Term Incentive opportunity which the
Executive would otherwise have been eligible to receive as of the effective date of the Executive's termination of employment if the Executive offers to be available for consultation, at mutually
agreed upon times, up to a maximum of eight (8) days each quarter of the year; 

        (f)    for
the remainder of the Term, the medical and dental plan benefits and DEC plan core and cash credits for which the Executive would otherwise have been eligible to
receive as of the effective date of the Executive's termination of employment; and 

        (g)  the
SERP Payment. 

        12.  In
the event of the Executive's termination of employment for any reason following the expiration of the Term, the Company shall pay the SERP Payment to the Executive. 

        13.  Termination
For Good Reason. In the event the Executive's employment is terminated by the Executive for Good Reason, except as otherwise provided herein, the Company
shall have no further obligations or liabilities under this Agreement except that the Company shall pay the following to the Executive if the Executive satisfies the terms of Section 15: 

        (a)  for
the remainder of the Term, the Executive's Salary; 

        (b)  all
unvested, prior Long-Term Incentive awards; 

        (c)  the
Annual Incentive and Long-Term Incentive awards for the year of termination, based upon the achievement of the performance goals (or, in the year in
which the Closing Date occurs, based upon target performance, if greater) for the plans for the entire year of termination prorated to reflect the full number of months the Executive was employed
during that year; 

        (d)  for
the remainder of the Term, an amount equal to eighty percent (80%) of any Target Annual Incentive and Target Long-Term Incentive opportunity which the
Executive would otherwise have been eligible to receive as of the effective date of the Executive's termination of employment; 

        (e)  for
the remainder of the Term, an amount equal to twenty percent (20%) of any Target Annual Incentive and Target Long-Term Incentive opportunity which the
Executive would otherwise have been eligible to receive as of the effective date of the Executive's termination of employment if the Executive offers to be available for consultation, at mutually
agreed upon times, up to a maximum of eight (8) days each quarter of the year; 

        (f)    for
the remainder of the Term, the medical and dental plan benefits and DEC plan core and cash credits for which the Executive would otherwise have been eligible to
receive as of the effective date of the Executive's termination of employment; and 

        (g)  the
SERP Payment. 

        14.  Payment
of Compensation Described in Section 8, 9, 11, 12 or 13. The compensation items specified in Section 8, 9, 11, 12 or 13 shall be paid as follows: 

        (a)  the
Salary shall be paid over the remaining Term or any shorter period as described in Section 8, 9, 11, or 13 in accordance with the Company's normal payroll
practices; 

        (b)  the
prior unvested Long-Term Incentive awards and the SERP Payment shall be paid within ninety (90) days after the termination of employment; 

        (c)  the
current and future Annual Incentive and Long-Term Incentive awards and opportunities shall be paid within ninety (90) days after the end of the
calendar year for which the incentive applied; and 

6

 

        15.  Execution
of Release. As a condition of receiving the compensation and benefits other than the SERP Payment described in Section 9, 11 or 13, the Executive shall
first execute a release of any and all claims arising out of the Executive's employment with the Company or the Executive's separation from such employment (including, without limitation, claims
relating to age, disability, sex or race discrimination to the extent permitted by law), excepting only claims arising out of the alleged breach of this Agreement or of any other written contract
between the Executive and the Company. Such release shall be substantially in the form attached as Attachment A. 

        16.  Protection
of the Company's Business. The Executive acknowledges that in the course of his employment he will acquire knowledge of trade secrets and confidential data of
the Company. Such trade secrets and confidential data may include, but are not limited to, confidential product information, provider contracts, customer lists, technical information, methods by which
the Company proposes to compete with its business competitors, strategic and business plans, confidential reports prepared by business consultants which may reveal strengths and weaknesses of the
Company and its competition and similar information relating to the Company. The Executive, in order to perform his obligations under this Agreement, must necessarily acquire knowledge of such trade
secrets and confidential data, all of which the Executive acknowledges are not known outside the business of the Company, are known only to a limited group of its top executives and directors, are
protected by strict measure to preserve secrecy, are of great value to the Company, are the result of the expenditure of large sums of money, are difficult for an outsider to duplicate, and disclosure
of which would be extremely detrimental to the Company. The Executive covenants to keep all such trade secrets or confidential data secret and not to release such information to persons not authorized
by the Company
to receive such secrets and data, both during the term of this Agreement and at all times following its termination. The Executive acknowledges that trade secrets and confidential data need not be
expressly marked as such by the Company. 

        17.  Documents,
Etc. All records, files, documents, equipment and the like shall be, and remain, the sole property of the Company. The Executive, on the termination of his
employment, shall immediately return to the Company all such items without retention of any copies. 

        18.  Limited
Non-Competition. During the Executive's employment and for a limited time thereafter, the Company must protect its legitimate business interests by
limiting the Executive's ability to compete with the Company. This limited non-competition provision is drafted narrowly so as to be able to safeguard the Company's legitimate business
interests while not unreasonably interfering with the Executive's ability to obtain other employment. The Company does not intend, and the Executive acknowledges, that this limited
non-competition provision is not an attempt to prevent the Executive from obtaining other employment. The Executive further acknowledges that the Company may need to take action, including
litigation, to enforce this limited non-competition provision, which efforts the parties stipulate shall not be deemed an attempt to prevent the Executive from obtaining other employment. 

        (a)  During
Employment By Company. During the Executive's employment, Executive shall not, directly or indirectly, have any ownership interest in, work for, advise, manage,
or act as an agent or consultant for, or have any business connection or business or employment relationship with any person or entity that competes with the Company or that contemplates competing
with the Company without the prior written approval of the Chief Executive Officer. 

        (b)  During
Post-Employment Period. For a period of two (2) years after the Executive's termination of employment (regardless of the reason), or for the
duration of the Executive's receipt of Salary under Section 11 or 13, whichever is longer, the Executive shall not: 

        (i)    (A)
directly or indirectly have any ownership interest in any entity or person engaged in development or sale of a product or service which competes with or is
substantially similar to any product or service sold by the Company, in any jurisdiction in which the Company 

7

 

operates or in which the Company reasonably expects to operate pursuant to provisions of a strategic plan adopted by the Board of Directors; 

                (B)  directly
or indirectly have any ownership interest in any entity or person engaged in development or sale of a product or service which
competes with or is substantially similar to any product or service sold by the Company, within the geographical area in which the Executive has been performing services
on behalf of the Company or for which he has been assigned responsibility at any time within the twenty-four (24) months preceding his termination; 

        (ii)  (A)
in a competitive capacity, directly or indirectly work for, advise, manage, or act as an agent or consultant for or have any business connection or business or
employment relationship with any entity or person engaged in development or sale of a product or service which competes with or is substantially similar to any product or service sold by the Company,
in any jurisdiction in which the Company operates or in which the Company reasonably expects to operate pursuant to provisions of a strategic plan adopted by the Board of Directors; 

                (B)  in
a competitive capacity, directly or indirectly work for, advise, manage, or act as an agent or consultant for or have any business
connection or business or employment relationship with any entity or person engaged in development or sale of a product or service which competes with or is substantially similar to any product or
service sold by the Company, within the geographical area in which the Executive has been performing services on behalf of the Company or for which the Executive has been assigned responsibility at
any time within the twenty-four (24) months preceding his termination; 

        (iii)  (A)
directly or indirectly market, sell or otherwise provide any product or service which is competitive with or substantially similar to any product or service sold
by the Company, to any customer of the Company with whom the Executive has had contact (either directly or indirectly) or over which he has had responsibility at any time within the
twenty-four (24) months preceding his termination; 

                (B)  directly
or indirectly market, sell or otherwise provide any product or service which is competitive with or substantially similar to any
product or service sold by the Company, to any customer of the Company; or 

        (iv)  directly
or indirectly, on behalf of the Executive or any third party, make any business contacts with, solicit or accept business from any customer of the Company for
any product or service which is competitive with or substantially similar to any product or service sold by the Company; 

        (c)  Separate
and Several Covenants. The Executive acknowledges that after termination of his employment, he will inevitably possess trade secrets and confidential data of
the Company which he would inevitably use if he were to engage in conduct prohibited as set forth above, and such use would be unfair to and extremely detrimental to the Company. The Executive further
acknowledges that in view of the benefits provided him by this Agreement, such conduct on his part would be inequitable. Accordingly, the Executive separately and severally covenants for the benefit
of the Company to keep each of the covenants described in this Section 18 for the period specified above. 

        (d)  Acknowledgment
of the Company's Superseding Interest in Protecting its Business. The Executive recognizes that personal relationships between the Company, its employees
and customers are essential to the Company's business operations and that the Company furthers such relationships by investments of time and money. The Executive recognizes that this Agreement is
reasonably necessary to protect the Company's legitimate interest in its customers, and to protect 

8

 

the Company's confidential information and goodwill, and acknowledges that nothing contained in this Agreement shall unreasonably alter the Executive's ability to obtain a livelihood or preclude the
Executive from engaging in his profession. The Executive, therefore, acknowledges that the Company's interest in maintaining its relationships with its established customers for at least two
(2) years after termination of the Executive's employment, or for the duration of the Executive's receipt of Salary under Section 11 or 12, whichever is longer, supersedes any interest
of the Executive in soliciting, servicing, or accepting the Company's customers on behalf of any entity other than the Company during that period of time. 

        (e)  Publicly
Traded Stock. Nothing in the foregoing provisions of this section prohibits the Executive from purchasing for investment purposes only, any stock or corporate
security traded or quoted on a national securities exchange or national market system. 

        (f)    Maximum
Application. The parties expressly agree that the terms of this limited non-competition provision under this section are reasonable, enforceable, and
necessary to protect the Company's interests, and are valid and enforceable. In the unlikely event, however, that a court of competent jurisdiction were to determine that any portion of this limited
non-competition provision is unenforceable, then the parties agree that the remainder of the limited non-competition provision shall remain valid and enforceable to the maximum
extent possible. 

        19.  Other
Limited Prohibitions. During the Executive's employment and for two (2) years after termination, or for the duration of the Executive's receipt of Salary
under Section 11 or 13, whichever is longer, the Executive shall not: 

        (a)  request
or advise any customer of the Company, or any person or entity having business dealings with the Company, to withdraw, curtail or cease such business with the
Company; 

        (b)  disclose
to any person or entity the identities of any customers of the Company, or the identity of any persons or entities having business dealings with the Company; or 

        (c)  directly
or indirectly influence or attempt to influence any other employee of the Company to separate from the Company. 

        20.  Specific
Enforcement/Injunctive Relief. The Executive agrees that it would be difficult to measure damages to the Company from any breach of the covenants contained in
Sections 16 through 19, but that such damages from any breach would be great, incalculable and irremediable, and that damages would be an inadequate remedy. Accordingly, the Executive agrees that the
Company may have specific performance of the terms of this Agreement in any court permitted by this Agreement. In addition, if the Executive violates the non-competition provisions of
Section 18 or 19, the Executive agrees that any period of such violation shall be added to the term of the non-competition. For example, if the Executive violates the provision for
three (3) months, the Company shall be entitled to enforce the non-competition provision for two (2) years, or for the duration of the Executive's receipt of Salary under
Section 11 or 13, plus three (3) months post-termination. In determining the period of any violation, the parties stipulate that in any calendar month in which the Executive
engages in any activity violative of the non-competition provision, the Executive is deemed to have violated the non-competition provision for the entire month, and that month
shall be added to the duration of the non-competition provision as set out above. The parties agree however, that specific performance and the "add back" remedies described above shall not
be the exclusive remedies, and the Company may enforce any other remedy or remedies available to it either in law or in equity including, but not limited to, temporary, preliminary, and/or permanent
injunctive relief. 

        21.  Severability.
If any provision of this Agreement is held invalid, such invalidity shall not affect the other provisions of this Agreement which shall be given effect
independently of the invalid provisions and, in such circumstances, the invalid provision is severable. 

9

 

        22.  Governing Law. This Agreement shall be construed in accordance with the laws of the State of Indiana. The parties expressly agree that it is
appropriate for Indiana law to apply to: (i) the interpretation of the Agreement; (ii) any disputes arising out of this Agreement; (iii) any disputes arising out of the employment
relationship of the parties; and (iv) any and all other disputes between the parties.

        23.  Choice
of Forum. The Company is based in Indiana, and the Executive understands and acknowledges the Company's desire and need to defend any litigation against it in
Indiana. Accordingly, the parties agree that any claim of any type brought by the Executive against the Company or any of its employees or agents must be maintained only in a court sitting in Marion
County, Indiana, or, if a federal court, the Southern District of Indiana, Indianapolis Division. 

        The
Executive further understands and acknowledges that in the event the Company initiates litigation against the Executive, the Company may need to prosecute such litigation in the
Executive's forum state, in the State of Indiana, or in such other state where the Executive is subject to personal jurisdiction. Accordingly, the parties agree that the Company can pursue any claim
against the Executive in any forum in which the Executive is subject to personal jurisdiction. The Executive specifically consents to personal jurisdiction in the State of Indiana. 

        24.  Mandatory
Arbitration. Any controversy or claim arising out of, or relating to this Agreement, or the breach thereof, other than a claim arising out of the Executive's
breach of the confidentiality and non-competition provisions of Sections 15 through 19, shall be settled by arbitration in Indianapolis, Indiana, in accordance with the Rules of the
American Arbitration Association before arbitrators who are licensed to practice law. The arbitrator or arbitrators shall apply the substantive law of Indiana or federal law, or both, as applicable to
the dispute. Any award entered shall be final, binding and nonappealable, and judgment upon the award rendered by the arbitrator or arbitrators may be entered in any court having jurisdiction thereof. 

        In
the event that the Company refuses or otherwise fails to make a payment when due and it is ultimately decided that the Executive is entitled to such payment, such payment shall be
increased to reflect an interest equivalent for the period of delay, compounded annually, equal to the prime or base lending rate used by Bank One Indiana, NA, and in effect as of the date the payment
was first due. 

        25.  Non-Jury
Trials. Notwithstanding the provisions of Sections 20 and 24 above, and if the provisions of Section 20 or 24 above are not enforceable, the
Executive expressly waives any rights to a jury trial and agrees that any claim of any type made against the Company or its agents or executives (including, but not limited to, employment
discrimination litigation, wage litigation, defamation, or any other claim) lodged in any court will be tried, if at all, without a jury. 

        26.  Certain
Additional Payments by the Company. 

        (a)  Anything
in this Agreement to the contrary or any termination of this Agreement notwithstanding, in the event it shall be determined that any payment or distribution or
benefit ("Payment") made or provided by the Company or its affiliates to or for the benefit of the Executive whether pursuant to this Agreement or otherwise (including, without limitation, in
connection with the transactions contemplated by the Merger Agreement (the "Trigon COC"), and determined without regard to any additional payments required under this Section 26 would be
subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986 (the "Code") or any interest or penalties are incurred by the Executive with respect to such excise tax
(such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the "Excise Tax"), then the Executive shall be entitled to receive an additional payment
("Gross-Up Payment") in an amount such that after payment by the Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with respect thereto) and 

10

 

Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. 

        (b)  Subject
to the provisions of Section 26(c) all determinations required to be made under this Section 26, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by the Company's independent auditor (the
"Accounting Firm") which shall provide detailed supporting calculations both to the Company and the Executive within a reasonable period of time of the receipt of notice from the Executive that there
has been a Gross-Up Payment; provided that, in connection with the Trigon COC, the Executive may select Trigon's independent auditor as of
the Closing Date to provide such calculations and such accounting firm shall be treated as the Accounting Firm for such purpose; provided, further, that
the Company's independent auditor shall have the right to review such calculations. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment,
as determined pursuant to this Section 26, shall be paid by the Company to the Executive within a reasonable period of time of the receipt of the Accounting Firm's determination. Any
determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made ("Underpayment"),
consistent with the calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 26(c) and the Executive thereafter is required to make a
payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of
the Executive. 

        (c)  The
Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the
Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten (10) business days after the Executive is informed in writing of such claim and shall
apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day
period following the date on which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies
the Executive in writing prior to the expiration of such period that it desires to contest such claim, the Executive shall: 

	(i)
	give
the Company any information reasonably requested by the Company relating to such claim,

	(ii)
	take
such action in connection with contesting such claims as the Company shall reasonably request in writing from time to time, including without
limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company,

	(iii)
	cooperate
with the Company in good faith in order effectively to contest such claim, and

	(iv)
	permit
the Company to participate in any proceedings relating to such claim; 

provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in
connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect
thereto) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 26(c), the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing 

11

 

authority in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Executive, on an
interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect
thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to
payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's control
of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be,
any other issue raised by the Internal Revenue Service or any other taxing authority. 

        (d)  If,
after the receipt by the Executive of an amount advanced by the Company pursuant to Section 26(c), the Executive becomes entitled to receive any refund with
respect to such claim, the Executive shall (subject to the Company's complying with the requirements of Section 26(c)) promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 26(c), a determination is made
that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the
expiration of thirty (30) days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid. 

        27.  Rabbi
Trust. The Company has established The Anthem Employee Benefit Trust, a rabbi trust ("Trust") for key executives, and intends for such Trust to remain in effect in
accordance with its terms. This Agreement shall, upon Triggering Events (as defined below), become covered under the Trust and become subject to the Trust funding requirements. For purposes of this
Section 27, the term "Triggering Event" shall mean the first to occur of: 

        (a)  the
termination of the employment of the Executive by the Company other than For Cause; 

        (b)  the
termination of the employment by the Executive for Good Reason; 

        (c)  the
termination of the employment by the Executive as a result of an Approved Retirement; or 

        (d)  the
occurrence of a change of control (as such term is defined in the Trust) of the Company. 

        28.  Nonalienation
of Benefits. Except as may otherwise be required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation,
alienation, sale, assignment, encumbrance, charge, pledge, bankruptcy or hypothecation or to exclusion, attachment, levy or similar process or assignment by operation of law, and any attempt,
voluntary or involuntary, to effect any such action shall be null, void and of no effect. 

        29.  Legal
Fees and Cost. All legal and other fees and expenses, including, without limitation, any arbitration expenses, incurred by the Executive in connection with
contesting or disputing any termination of employment, in seeking to obtain or enforce any right or benefit provided for in this Agreement, or in otherwise pursuing any right or claim, shall be paid
by the Company, to the extent permitted by law, provided that the Executive makes a formal written settlement demand prior to trial 

12

 

or arbitration and is ultimately successful, in obtaining through trial or arbitration more than fifty percent (50%) of the monetary relief sought, in his final written settlement demand exclusive of
attorney's fees. Notwithstanding the foregoing provisions of this Section, if any dispute arises in connection with the enforcement or interpretation of the Executive's rights under this Agreement as
they pertain to payments made with reference to the Executive Continuity Agreement, the Company shall pay all reasonable legal fees and expenses incurred by the Executive in connection with such
dispute, irrespective of the outcome of such dispute. 

        30.  Notices.
Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and will be deemed to have been given when delivered in
person (to the Executive if such notice is for the Executive) or five (5) days following sending by overnight courier or mailing by first class, certified or registered mail, postage prepaid,
to the Executive at his home address, or such addresses as the Executive shall have designated in writing, or if to the Company, to the attention of the Corporate Secretary, at the Company's principal
place of business, 120 Monument Circle, Indianapolis, Indiana 46204. 

        31.  Headings.
The various headings of this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any of its
provisions. 

        32.  Successors
and Assigns. The rights and obligations of the Company under this Agreement shall inure to its benefit, its successors and affiliated companies and shall be
binding upon the successors and
assigns of the Company. This Agreement, being personal to the Executive, cannot be assigned by the Executive, but his personal representative shall be bound by all its terms and conditions. 

        33.  Waiver
and Amendments, Etc. Failure of the Company to insist upon strict compliance with any terms or provisions of this Agreement shall not be deemed a waiver of any
terms, provisions or rights of the Company. Moreover, no modifications, amendments, extensions or waivers of this Agreement or any provisions hereof shall be binding upon the Company or the Executive
unless in writing and signed by the Executive and the Company. 

        34.  Complete
Agreement. As of the Closing Date, this Agreement will constitute the entire employment agreement of the parties and supersedes all prior employment agreements
addressing the terms, conditions, and issues contained herein, including the Trigon Agreements, including, without limitation, any non-competition agreements with Trigon. Nothing in this
Agreement, however, affects any separate written agreements addressing other terms and conditions and issues agreed to by the parties. 

        35.  Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and
the same agreement. 

13

 

        IN WITNESS WHEREOF, the Company, Trigon and the Executive have duly executed and delivered this Agreement effective as of the day and year
first above written. 

	 	 	THOMAS. G. SNEAD, JR.
	

 	
 	

 	
 	

 
	 	 	/s/  THOMAS. G. SNEAD, JR.      

	

 	
 	

ANTHEM, INC.
	

 	
 	

 	
 	

 
	 	 	By:	 	 
	 	 	 	 	/s/  DAVID R. FRICK      

	

 	
 	

TRIGON HEALTHCARE, INC.
	

 	
 	

 	
 	

 
	 	 	By:	 	 
	 	 	 	 	/s/  THOMAS R. BYRD      

14

 
 
 

ATTACHMENT A
  
    Release and Waiver Agreement    
  

        This Release and Waiver Agreement ("Agreement") is entered into on this    day
of                        ,            , by and between
Anthem, Inc., including its subsidiaries and affiliates (the "Company") and Thomas G. Snead (the "Executive"). 

        NOW,
THEREFORE, the parties agree to the following: 

        1.    The
Executive and the Company acknowledge and agree that the Employee's last day of employment with the Company or one of its affiliates shall
be                        . Service
credit for purposes of all Company benefits, including but not limited to any pension plans maintained by the Company or its subsidiaries, shall terminate as of that date. 

        2.    The
Company agrees that it shall pay to the Executive the amounts described in Section 9, 11 or 13 of the Employment Agreement among the Company, Trigon and the
Executive dated as of April 27, 2002 ("Employment Agreement"). All payments made pursuant to Section 9, 11 or 13 of the Employment Agreement shall be made pursuant to Sections 14 and 15
of the Employment Agreement. The Executive shall also be entitled to any benefits described in Section 9, 11 or 13 of the Employment Agreement for the duration noted therein. 

        3.    Any
and all benefits not specifically discussed in this Agreement or provided by law will cease on [termination date from paragraph 1]. 

        4.    The
provisions of the Employment Agreement relating to Protection of the Company's Business, Documents, Limited Non-Competition, Other Limited Prohibitions,
and Specific Enforcement (Sections 16, 17, 18, 19 and 20) shall remain in full force and effect upon termination of employment. The Executive acknowledges that he possesses trade secrets and
confidential data of the Company and further acknowledges that the provisions of Sections 16 through 20 of the Employment Agreement are reasonably necessary to protect the Company's legitimate
business interests, confidential data, and goodwill. 

        5.    The
Executive hereby forever releases and waives as against the Company, and each of their directors, officers, employees and agents, any and all legal and equitable
causes of action and claims which the Executive possesses, whether known or unknown, including, but not limited to, any such causes of action and claims relating to the Employee's employment with, or
termination of employment from, the Company or any of its affiliates, including any and all rights, entitlements or claims under any and all federal, state and local laws and regulations, all as
amended, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991 and the Americans with Disabilities Act of 1990. The Executive further expressly and
specifically waives any and all rights and claims under the Age Discrimination in Employment Act of 1967 and the Older Workers' Benefit Protection Act (collectively referred to as the "Act"). The
Executive acknowledges and agrees that this waiver of any right or claim under the Act (hereinafter "Waiver") is knowing and voluntary, and specifically agrees as follows: that this Waiver is written
in a manner which he understands; that this Waiver specifically relates to rights or claims under the Act; that he does not waive any rights or claims under the Act that may arise after the date of
execution of this Agreement; that he waives rights or claims under the Act in exchange for consideration in addition to anything of value to which he already is entitled; and that he has been advised
in writing to consult with an attorney prior to executing it. The Executive acknowledges that he understands that he has twenty-one (21) days after receipt of this Agreement to
decide whether to accept it and that he may revoke any acceptance of this Agreement within seven (7) days of such acceptance. This Agreement shall not become effective until the seven
(7) day revocation period has expired and no amounts will be paid to the Executive until the seven (7) day revocation period has expired. 

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        7.    It
is understood and agreed between the Executive and the Company that this Agreement shall in no way affect any claims of the Executive arising out of Social Security,
Worker's Compensation, or Unemployment Laws. 

        8.    The
Company and the Executive agree that any breach of the terms of this Agreement may, at the Company's discretion, result in the immediate termination of any subsequent
payments to be made under this Agreement. In the event of a breach of this Agreement or any dispute regarding this Agreement, the provisions of the Employment Agreement relating to Specific
Enforcement, Governing Law, Choice of Forum, Mandatory Arbitration, Non-Jury Trials, and Legal Fees and Costs (Sections 20, 22, 23, 24, 25 and 29) shall remain in full force and
effect. 

        9.    The
Executive expressly agrees that the consideration designated in this Agreement is sufficient for the terms of this Agreement. The Executive further agrees that upon
the execution of this Agreement he shall keep confidential and not disclose the existence or terms of this Agreement unless compelled to do so by a court or administrative body. 

        10.  The
rights and obligations hereunder shall not be assigned or transferred by the Executive and shall be binding upon and inure to the benefit of the Executive, his
heirs, legatees and legal representatives, and the Company, its subsidiaries and affiliates, successors and assigns. No waiver of any breach of this Agreement shall be deemed or construed as a waiver
of any other or subsequent breach. Any amendment of this Agreement shall be effective only if in writing and signed by both parties. If any provision of this Agreement shall be held invalid under
applicable laws, such provision shall be ineffective only to the extent of any invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement. This
Agreement contains the entire agreement between the parties and supersedes all prior agreements, whether oral or written, between the parties. The terms of this Agreement shall be governed by Indiana
law. The parties represent that they have read and understood this Agreement, and the officer executing this document on behalf of the Company represents that he has the authority to do so. 

        11.  This
Agreement shall not be effective or enforceable against the Company until the seven (7) day revocation period has expired or if the Executive revokes it no
later than seven (7) days after he signs it. This revocation must be in writing and must be personally delivered, or sent by certified mail to: 

Corporate
Secretary

Anthem, Inc.

120 Monument Circle

Indianapolis, Indiana 46204 

	12.
	The
Executive expressly acknowledges that he understands all of the provisions of this Agreement and is voluntarily entering into this Agreement. 

        IN
WITNESS WHEREOF, the parties have executed this Agreement. 

	 	 	THOMAS. G. SNEAD
	

 	
 	

	

 	
 	

ANTHEM, INC.
	

 	
 	
By:	

 Printed:

    Title:

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QuickLinks

Exhibit 10.24

EMPLOYMENT AGREEMENT

W I T N E S S E T H

ATTACHMENT A Release and Waiver Agreement

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