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Exhibit 10.44    
    

 
  EMPLOYMENT AGREEMENT    
    

        THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into by and between Russell Petrella, an individual
("Employee"), and, Magellan Health Services, Inc. on behalf of itself and its subsidiaries and affiliates (collectively referred to herein as "Employer"). 

        WHEREAS, Employer desires to continue to obtain the services of Employee and Employee desires to continue to render services to Employer;
and 

        WHEREAS, Employer and Employee desire to set forth the terms and conditions of Employee's employment with Employer under this Agreement; 

        NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual covenants and agreements contained in this Agreement, the
parties agree as follows: 

 
 

STATEMENT OF AGREEMENT    
    

        1.    Employment.    Employer agrees to employ Employee, and Employee
accepts such employment in accordance with the terms of this Agreement, for a term of one year commencing on October 2, 2003 and, unless terminated earlier in accordance with the terms of this
Agreement, ending on October 1, 2004. Thereafter, this Agreement shall automatically renew for twelve (12) month periods, unless sooner terminated as provided herein. If either party
desires not to renew the Agreement, they must provide the other party with written notice of their intent not to renew the Agreement at least fifteen (15) days
prior to the next renewal date. Employer's notice of intent not to renew the Agreement shall be deemed to be a termination without cause and the provisions of Section 6(c) shall apply. 

        2.    Position and Duties of Employee.    Employee will serve as SVP,
Public Solutions of Employer. Employee agrees to serve in such position, or in such other positions as Employer determines from time to time, and to perform the duties that Employer may assign from
time to time to Employee, at a similar salary level and location, until the expiration of the term or such time as Employee's employment with Employer is terminated pursuant to this Agreement. 

        3.    Time Devoted.    Employee will devote his or her full business
time and energy to the business affairs and interests of Employer, and will use his or her best efforts and abilities to promote Employer's interests. Employee agrees that he or she will diligently
endeavor to perform services contemplated by this Agreement in a manner consistent with his or her position and in accordance with the policies established by the Employer. 

        4.    Compensation.    

        (a)    Base Salary.    Employer will pay Employee a base salary in the amount of Two Hundred Seventy Five Thousand
Dollars per year, which amount will be paid in semi-monthly intervals less appropriate withholdings for federal and state taxes and other deductions authorized by Employee. Such salary
will be subject to review and adjustment by Employer not less than annually. 

 

        (b)    Benefits.    Employee will be eligible to participate in Employer's Benefit Plans commensurate with his or her
position. Employee will receive separate information detailing the terms of such Benefit Plans and the terms of those plans will control. Employee also will be eligible to participate in any annual
incentive plan and stock option plan applicable to Employee by their terms respectively. During the term of this Agreement, Employee will be entitled to such other benefits of employment with Employer
as are now or may later be in effect for salaried employees of Employer, and also will be eligible to participate in other benefits adopted for employees at his or her level. 

        5.    Expenses.    During the term of this Agreement, Employer will
reimburse Employee promptly for all reasonable travel, entertainment, parking, business meetings and similar expenditures in pursuance and furtherance of Employer's business upon receipt of reasonably
supporting documentation as required by Employer's policies applicable to its employees generally. 

        6.    Termination.    

        (a)    Termination Due to Resignation.    Employee may resign his or her employment at any time by giving
30 days written notice of resignation to Employer. Except as otherwise set forth in this Agreement, Employee's employment, and Employee's right to receive compensation and benefits from
Employer, will terminate upon the effective date of Employee's termination. 

        If
Employee resigns pursuant to this Section 6(a), Employer's only remaining financial obligation to Employee under this Agreement will be to pay: (i) any earned but unpaid
Base Salary and accrued Paid Time Off through the effective date of Employee's termination; (ii) reimbursement of expenses incurred by Employee through the effective date of termination which
are reimbursable pursuant to this Agreement; and (iii) the Employee's vested portion of any Magellan deferred compensation or other benefit plan. 

        (b)    Termination with Cause.    Except as otherwise set forth in this Agreement, Employee's employment, and
Employee's right to receive compensation and benefits from Employer, will be terminated for cause at the discretion of Employer under the following circumstances: 

	(i)
	Employee's
commission of an act of fraud or dishonesty involving his or her duties on behalf of Employer;

	(ii)
	Employee's
failure or refusal to faithfully and diligently perform duties assigned to Employee or other breach of any material term under this Agreement;

	(iii)
	Employee's
failure or refusal to abide by Employer's policies, rules, procedures or directives; or

	(iv)
	Employee's
conviction of a felony or a misdemeanor involving moral turpitude. 

2

 

        If
Employee is terminated pursuant to this Section 6(b), Employer's only remaining financial obligation to Employee under this Agreement will be to pay: (i) any earned but
unpaid Base Salary and accrued Paid Time Off through the date of Employee's termination; (ii) reimbursement of expenses incurred by Employee through the date of termination which are
reimbursable pursuant to this Agreement; and (iii) the Employee's vested portion of any Magellan deferred compensation or other benefit plan. 

        For
the events described in Sections 6(b)(ii) and (iii), Employer will give Employee written notice of such deficiency and a reasonable opportunity to cure such situation, but in
no event more than thirty days. 

        (c)    Termination Without Cause.    Employer may terminate this Agreement without cause at any time. "Without cause"
termination shall include, but not be limited to: (i) Employer's notice to Employee of its intent not to renew this Agreement in accordance with the provisions of Section 1 hereof; and
(ii) Employer's notice to Employee that his or her position will be relocated to an office which is greater than 35 miles from Employee's prior office location. If Employer terminates this
Agreement without cause, Employer shall continue to pay Employee the compensation provided for in Section 4(a) of this Agreement for a period of time equal to 12 months. Such pay
continuation is contingent upon Employee executing Employer's standard severance agreement, which incorporates a general release, at the time of termination. In addition, Employee will receive
(i) any earned but unpaid Base Salary and accrued Paid Time Off through the date of Employee's termination; (ii) reimbursement of expenses incurred by Employee through the date of
termination which are reimbursable pursuant to this Agreement; and (iii) the Employee's vested portion of any Magellan Health Services retirement, deferred compensation or other benefit plan,
including but not limited to, any stock option or restricted stock grant plans, in accordance with the terms of those plans. If Employee participates in any bonus plan(s), including but not limited
to, any long term bonus plan(s), Employer may pay Employee, on a pro-rata basis, the amount of such plan(s) as Employee would have earned if Employee had been employed for the full
calendar year. The pro-ration will be determined by the fraction of the number of months in the calendar year in which the Employee worked (rounded to the nearest whole month) divided by
12 months. In determining whether a pro-rata bonus shall be paid to Employee, the Employer may consider factors that include but are not limited to (i) the Employee's target
bonus (percentage of base salary), (ii) the Company's financial performance and (iii) the Employee's achievement of his or her specific performance objectives. At the time of
termination, Employer shall determine the Employee's bonus amount, if any. Notwithstanding the foregoing, any payout of such bonus amount shall be contingent upon the Company satisfying the financial
targets established by the Company's Board of Directors. Payment of any bonus shall be made at the time of the annual bonus payout for all employees. COBRA coverage may be elected to continue health,
dental, and vision insurance during the Severance Period and beyond. If COBRA coverage is elected, Employee will pay only the employee contribution rate for the health insurance portion of the COBRA
coverage during the Severance Period. Dental and vision coverage under COBRA will be billed at the full COBRA rate. 

3

 

        (d)    Automatic Termination.    This Agreement will terminate automatically upon the death or permanent disability of
Employee. Employee will be deemed to be "Disabled" or to suffer from a "Disability" within the meaning of this Agreement if, because of a physical or mental impairment, Employee has been unable to
perform the essential functions of his or her position, with or without reasonable accommodation, for a period of 180 consecutive days, or if Employee can reasonably be expected to be unable to
perform the essential functions of his or her position for such period. If Employee is terminated pursuant to this Section 6(d), Employee will receive (i) any earned but unpaid Base
Salary and accrued Paid Time Off through the date of Employee's termination; (ii) reimbursement of expenses incurred by Employee through the date of termination which are reimbursable pursuant
to this Agreement; and (iii) the Employee's vested portion of any Magellan Health Services retirement, deferred compensation or other benefit plan, including but not limited to, any stock
option or restricted stock grant plans, in accordance with the terms of those plans. If Employee participates in any bonus plan(s), including but not limited to, any long term bonus plan(s), Employer
may pay Employee, on a pro-rata basis, the amount of such plan(s) as Employee would have earned if Employee had been employed for the full calendar year. The pro-ration will be
determined by the fraction of the number of months in the calendar year in which the Employee worked (rounded to the nearest whole month) divided by 12 months. In determining whether a
pro-rata bonus shall be paid to Employee, the Employer may consider factors that include but are not limited to (i) the Employee's target bonus (percentage of base salary);
(ii) the Company's financial performance; and (iii) the Employee's achievement of his or her specific performance objectives. At the time of termination, Employer shall determine the
Employee's bonus amount, if any. Notwithstanding the foregoing, any payout of such bonus amount shall be contingent upon the Company satisfying the financial targets established by the Company's Board
of Directors. Payment of any bonus shall be made at the time of the annual bonus payout for all employees. 

        (e)    Effect of Termination.    Except as otherwise provided for in this Section 6, upon termination of this
Agreement, all rights and obligations under this Agreement will cease except for the rights and obligations under Sections 4 and 5 to the extent Employee has not been compensated or reimbursed
for services performed prior to termination (the amount of compensation to be prorated for the portion of the pay period prior to termination); the rights and obligations under Sections 7, 8
and 9; and all procedural and remedial provisions of this Agreement. 

        7.    Protection of Confidential
Information/Non-Competition/Non-Solicitation.    

        Employee
covenants and agrees as follows: 

        (a)(i)
Confidential Information: During Employer's employment of Employee and for a period of one year following the termination of Employee's employment for any reason, Employee will
not use or
disclose, directly or indirectly, for any reason whatsoever or in any way, other than at the direction of Employer during the course of Employee's employment or after receipt 

4

 

of
the prior written consent of Employer, any confidential information of Employer or its controlled subsidiaries or affiliates, that comes into his or her knowledge during his or her employment by
Employer (the "Confidential Information" as hereinafter defined). The obligation not to use or disclose any Confidential Information will not apply to any Confidential Information that is or becomes
public knowledge through no fault of Employee, and that may be utilized by the public without any direct or indirect obligation to Employer, but the termination of the obligation for
non-use or nondisclosure by reason of such information becoming public will extend only from the date such information becomes public knowledge. The above will be without prejudice to any
additional rights or remedies of Employer under any state or federal law protecting trade secrets or other information. 

        (a)(ii)    Trade Secrets.    Employee shall hold in confidence all Trade Secrets of Employer, its direct and indirect
subsidiaries, and/or its customers that came into his or her knowledge during his or her employment by Employer and shall not disclose, publish or make use of at any time after the date hereof such
Trade Secrets, other than at the direction of Employer, for as long as the information remains a Trade Secret. 

        (a)(iii)
For purposes of this Agreement, the following definitions apply: 

"Confidential
Information" means any data or information, other than Trade Secrets, that is valuable to Employer and not generally known to the public or to competitors of Employer. It is understood
that the term "Confidential Information" does not mean and shall not include information which: 

	(a)
	is
or subsequently becomes publicly available without the breach of any obligation owed to the Employer;

	(b)
	is
disclosed with the prior written approval of the Employer; or

	(c)
	is
obligated to be produced under order of a court of competent jurisdiction or a valid administrative, congressional, or other subpoena, civil investigative demand or similar
process; provided, however, that upon issuance of any such order, subpoena, demand or other process, the Employee shall promptly notify the Employer and
shall provide the Employer with an opportunity (if then available) to contest, at the Employer's expense, the propriety of such order or subpoena (or to arrange for appropriate safeguards against any
further disclosure by the court or administrative or congressional body seeking to compel disclosure of such Confidential Information). 

        "Trade
Secret" means information including, but not limited to, any technical or non-technical data, formula, pattern, compilation, program, device, method, technique,
drawing, process, financial data, financial plan, product plan, list of actual or potential customers or suppliers or other information similar to any of the foregoing, which (i) derives
economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can derive economic value from its disclosure or use;
and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. 

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        (a)(iv)    Interpretation.    The restrictions stated in paragraphs 7(a)(i) and 7(a)(ii) are in addition to and
not in lieu of protections afforded to trade secrets and confidential information under applicable state law. Nothing in this Agreement is intended to or shall be interpreted as diminishing or
otherwise limiting Employer's right under applicable state law to protect its trade secrets and confidential information. 

        (b)    Non-Competition.    

	(i)
	Employee
covenants and agrees that during the term of his or her employment with Employer and for a period of one year immediately following the termination of said
employment for any reason, he or she will not, on his or her own behalf or as a partner, officer, director, employee, agent, or consultant of any other person or entity, directly or indirectly, engage
or attempt to engage in the business of providing or selling services in the United States that are services offered by Employer, unless waived in writing by Employer in its sole discretion. Employee
recognizes that the above restriction is reasonable and necessary to protect the interest of the Employer and its controlled subsidiaries and affiliates, which are engaged in the provision, or sale of
behavioral managed care services on a national basis.

	(ii)
	During
the one year period immediately following Employee's termination from his or her employment with Employer, Employee may submit a written request to Employer
outlining a proposed employment or other employment opportunity that Employee is considering. Employer will review such request and make a determination, in its sole discretion, as to whether the
opportunity would constitute a breach of the non-competition covenant. 

        (c)    Non-Solicitation.    To protect the goodwill of Employer and its controlled subsidiaries and
affiliates, or the customers of Employer and its controlled subsidiaries and affiliates, Employee agrees that, for a period of one year immediately following the termination of his or her employment
with Employer, he or she will not, without the prior written permission of Employer, directly or indirectly, for himself or herself or on behalf of any other person or entity, solicit, divert away,
take away or attempt to solicit or take away any Customer of Employer for purposes of providing or selling services that are offered by Employer, if Employer, or the particular controlled subsidiary
or affiliate of Employer, is then still engaged in the sale or provision of such services at the time of the solicitation. For purposes of this Section 7(c), "Customer" means any individual or
entity to whom Employer or its controlled subsidiaries or affiliates has provided, or contracted to 

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provide,
services and with whom Employee had, alone or in conjunction with others, contact with or knowledge of, during the twelve months prior to the termination of his or her employment. For
purposes of this Section 7(c), Employee had contact with or knowledge of a customer if (i) Employee had business dealings with the customer on behalf of Employer or its controlled
subsidiaries or affiliates; (ii) Employee was responsible for supervising or coordinating the dealings between the customer and Employer or its controlled subsidiaries or affiliates; or
(iii) Employee obtained or had access to trade secrets or confidential information about the customer as a result of Employee's association with Employer or its controlled subsidiaries or
affiliates. 

        (d)    Solicitation of Employees.    During Employer's employment of Employee and for a period of one year following
the termination of Employee's employment with Employer for any reason, Employee will not solicit for employment, directly or indirectly, any employee of Employer or any of its controlled subsidiaries
or affiliates who was employed with Employer or its controlled subsidiaries or affiliates within the one year period immediately prior to Employee's termination. 

        8.    Work Made for Hire.    Employee agrees that any written program
materials, protocols, research papers, other writings, as well as improvements, inventions, new techniques, programs or products (the "Work") made or developed by Employee within or after normal
working hours relating to the business or activities of Employer or any of its subsidiaries, shall be deemed to have been made or developed by Employee solely for the benefit of Employer and will be
considered "work made for hire" within the
meaning of the United States Copyright Act, Title 17, United States Code, which vests all copyright interest in and to the Work in the Employer. In the event, however, that any court of competent
jurisdiction finally declares that the Work is not or was not a work made for hire as agreed, Employee agrees to assign, convey, and transfer to the Employer all right, title and interest Employee may
presently have or may have or be deemed to have in and to any such Work and in the copyright of such work, including but not limited to, all rights of reproduction, distribution, publication, public
performance, public display and preparation of derivative works, and all rights of ownership and possession of the original fixation of the Work and any and all copies. Additionally, Employee agrees
to execute any documents necessary for Employer to record and/or perfect its ownership of the Work and the applicable copyright. 

        9.    Property of Employer.    Employee agrees that, upon the
termination of Employee's employment with Employer, Employee will immediately surrender to Employer all property, equipment, funds, lists, books, records and other materials of Employer or its
controlled subsidiaries or affiliates in the possession of or provided to Employee. 

        10.    Governing Law.    This Agreement and all issues relating to the
validity, interpretation, and performance will be governed by, interpreted, and enforced under the laws of the State of Maryland. 

        11.    Remedies.    An actual or threatened violation by Employee of
the covenants and obligations set forth in Sections 7, 8 and 9 will cause irreparable harm to Employer or its controlled subsidiaries or affiliates and that the remedy at law for any such
violation will be inadequate. 

7

 

Employee
agrees, therefore, that Employer or its controlled subsidiaries or affiliates will be entitled to appropriate equitable relief, including, but not limited to, a temporary restraining order
and a preliminary injunction, without the necessity of posting a bond. Employee will also be entitled to seek equitable relief against Employer in connection with enforcement of the covenants and
obligations set forth in Sections 7, 8 and 9. The provisions of Sections 4, 5, 6, 7, 8 and 9 will survive the termination of this Agreement in accordance with the terms set forth in each
Section. 

        12.    Arbitration.    Except for an action for injunctive relief as
described in Section 11, any disputes or controversies arising under this Agreement will be settled by arbitration in Columbia, Maryland in accordance with the rules of the American Arbitration
Association relating to the arbitration of employment disputes. The determination and findings of such arbitrators will be final and binding on all parties and may be enforced, if necessary, in any
court of competent jurisdiction. The costs and expenses of the arbitration shall be paid for by Employer, but each party shall pay its own attorney's fees and other litigation costs. 

	
 (Employee's Initials)	 	 

        13.    Notices.    Any notice or request required or permitted to be
given to any party will be given in writing and, excepting personal delivery, will be given at the address set forth below or at such other address as such party may designate by written notice to the
other party to this Agreement: 

	To Employee:	 	Russell Petrella

13 Hill Top Road

Mendham, NJ 07945

(973) 543-1443
	

To Employer:	
 	

Magellan Health Services, Inc.

6950 Columbia Gateway Drive

Columbia, Maryland 21046

Attention: General Counsel

        Each
notice given in accordance with this Section will be deemed to have been given, if personally delivered, on the date personally delivered; if delivered by facsimile transmission,
when sent and confirmation of receipt is received; or, if mailed, on the third day following the day on which it is deposited in the United States mail, certified or registered mail, return receipt
requested, with postage prepaid, to the address last given in accordance with this Section. 

        14.    Headings.    The headings of the sections of this Agreement
have been inserted for convenience of reference only and should not be construed or interpreted to restrict or modify any of the terms or provisions of this Agreement. 

8

 

        15.    Severability.    If any provision of this Agreement is held to
be illegal, invalid, or unenforceable under present or future laws effective during the term of this Agreement, such provision will be fully severable and this Agreement and each separate provision
will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Agreement, and the remaining provisions of this Agreement will remain in full
force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement. In addition, in lieu of such illegal, invalid or unenforceable
provision, there will be added automatically, as a part of this Agreement, a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid
and enforceable, to the extent such reformation is allowable under applicable law. 

        16.    Binding Effect.    This Agreement will be binding upon and
shall inure to the benefit of each party and each party's respective successors, heirs and legal representatives. This Agreement may not be assigned by Employee to any other person or entity but may
be assigned by Employer to any subsidiary or affiliate of Employer or to any successor to or transferee of all, or any part, of the stock or assets of Employer. 

        17.    Employer Policies, Regulations, and Guidelines for
Employees.    Employer may issue policies, rules, regulations, guidelines, procedures or other material, whether in the form of handbooks, memoranda, or otherwise,
relating to its Employees. These materials are general guidelines for Employee's information and will not be construed to alter, modify, or amend this Agreement for any purpose whatsoever. 

        18.    Entire Agreement.    This Agreement embodies the entire
agreement and understanding between the parties with respect to its subject matter and supersedes all prior agreements and understandings, whether written or oral, relating to its subject matter,
unless expressly provided otherwise within this Agreement. No amendment or modification of this Agreement, will be valid unless made in writing and signed by each of the parties. No representations,
inducements, or agreements have been made to induce either Employee or Employer to enter into this Agreement, which are not expressly set forth within this Agreement. Employee and Employer acknowledge
and agree that Employer's controlled subsidiaries and affiliates are express third party beneficiaries of this Agreement. 

[signatures
follow] 

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the 2nd day of October, 2003. 

	

"Employee"	 	MAGELLAN HEALTH SERVICES, INC.

"Employer"
	

/s/  RUSSELL C. PETRELLA      
	
 	

By:	

/s/  RENÉ LERER      

	 	 	Name:	René Lerer

	 	 	Title:	COO

9

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Exhibit 10.44

EMPLOYMENT AGREEMENT

STATEMENT OF AGREEMENTQuickLinks
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Exhibit 10.45    
    

 
 

AMENDMENT TO EMPLOYMENT AGREEMENT (TIER II)    
    

This
Amendment to Employment Agreement between Magellan Health Services, Inc. ("Employer") and Russell Petrella entered into as of this
28th day of July, 2006 ("Employee"). 

WHEREAS, Employer and Employee desire to amend the terms of the Employment Agreement currently in effect between Employer and Employee (the "Employment
Agreement"). 

NOW THEREFORE, Employer or Employee agree that the Employment Agreement is hereby amended as follows: 

	I.
	New Change in Control Provisions—Add the following new paragraphs:

	1.
	Termination Without Cause by the Company or With Good Reason By Executive In connection With, Or Within Eighteen Months After, A Change In
Control: If Employer terminates this Agreement and Employee's employment without cause, or if Employee terminates this Agreement and Employee's employment with Good Reason, in
connection with a Change in Control (as defined below) (whether before or at the time of such Change in control) or within eighteen months after a change in Control, Employee shall receive the
following, in lieu of the amounts and benefits described in Section 6:

	(i)
	Base
Salary through the date of termination;

	(ii)
	pro-rata
Target Bonus for the year in which termination occurs, payable in a single installment immediately after termination;

	(iii)
	1.5
times the sum of (a) Base Salary plus (b) Target bonus, payable in a single cash installment immediately after termination;

	(iv)
	if
employee elects COBRA coverage for health, dental and vision benefits, Employer shall pay Employer's contributions for health insurance and Employee shall pay
Employee's contributions rate for health, dental and vision insurance for up to eighteen (18) months after termination.

	(v)
	any
other amounts earned, accrued or owing to Executive but not yet paid;

	(vi)
	other
payments, entitlements or benefits, if any, that are payable in accordance with applicable plans, programs, arrangements or other agreements of the company or any
affiliate; and

	(vii)
	all
stock options granted to Employee from January 4, 2004 and prior to March 10, 2005 shall vest and become immediately exercisable. 

	2.
	Definitions:

	A.
	Change
in Control:

	

	A
"Change in Control" of the Company shall mean the first to occur after the date hereof of any of the following events:

	(i)
	any
"person," as such term is used in Sections 3(a)(9) and 13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), becomes a "beneficial
owner," as such term is used in Rule 13d-3 promulgated under the Exchange Act, of 51% or more of the Voting Stock (as defined below) of the Company;

	(ii)
	the
majority of the Board of Directors of the Company consists of individuals other than "Continuing Directors," which shall mean the members of the Board on the date
hereof, provided that any person becoming a director subsequent to the date hereof whose election or nomination for election was supported by a vote of the directors who then comprised the Continuing
Directors, shall be considered to be a Continuing Director;

	(iii)
	the
Board of Directors of the Company adopts and, if required by law or the certificate of incorporation of the Corporation, the shareholders approve the dissolution
of the Company or a plan of liquidation or comparable plan providing for the disposition of all or substantially all of the Company's assets;

	(iv)
	all
or substantially all of the assets of the Company are disposed of pursuant to a merger, consolidation, share exchange, reorganization or other transaction unless
the shareholders of the Company immediately prior to such merger, consolidation, share exchange, reorganization or other transaction beneficially own, directly or indirectly, in substantially the same
proportion as they previously owned the Voting Stock or other ownership interests of the Company, 51% of the Voting Stock or other ownership interests of the entity or entities, if any, that succeed
to the business of the Company; or

	(v)
	the
Company merges or combines with another company and, immediately after the merger or combination, the shareholders of the Company immediately prior to the merger or
combination own, directly or indirectly, 50% or less of the Voting Stock of the successor company, provided that in making such determination there shall be excluded from the number of shares of
Voting Stock held by such shareholders, but not from the Voting Stock of the successor company, any shares owned by Affiliates of such other company who were not also Affiliates of the Company prior
to such merger or combination. 

	B.
	"Cause"
in connection with a Change in Control shall mean:

	(i)
	Employee
is convicted of (or pleads guilty or nolo contendere to) a felony or a crime involving moral turpitude;

	(ii)
	Employee's
commission of an act of fraud or dishonesty involving his or her duties on behalf of the Company;

	(iii)
	Employee's
willful failure or refusal to faithfully and diligently perform duties lawfully assigned to Employee as an officer or employee of the Company or other
willful breach of any material term of any employment agreement at the time in effect between the Company and Employee; or

	(iv)
	Employee's
willful failure or refusal to abide by the Company's policies, rules, procedures or directives, including any material violation of the Company's Code of
Ethics.

	C.
	"Good
Reason" shall mean:

	(i)
	a
reduction in Employee's salary in effect at the time of a Change in Control, unless such reduction is comparable in degree to the reduction that takes place for all
other employees of the Company of comparable rank, or a reduction in Employee's target bonus opportunity for the year in which or any year after the year in which the Change of Control occurs from
Employee's target bonus opportunity for the year in which the Change in Control occurs (if any) as established under any employment agreement Employee has with the Company or any bonus plan of the
Company applicable to Employee (or, if no such target bonus opportunity has yet been established for Employee under a bonus plan applicable to Employee for the year in which the Change of Control has
occurred, the target bonus opportunity so established for Employee for the immediately preceding year, if any);

	(iii)
	a
material diminution in Employee's position, duties or responsibilities as in effect at the time of a Change in Control, or the assignment to Employee of duties which
are materially inconsistent with such position, duties and authority, unless in either case such change is made with the consent of the Employee; or

	(iv)
	the
relocation by more than 50 miles of the offices of the Company which constitute at the time of the Change in Control Employee's principal location for the
performance of his or her services to the Company;

	

	provided
that, in each such case, such event or condition continues uncured for a period of more than 15 days after Employee gives
notice thereof to the Company. 

	D.
	"Company"
shall include any entity that succeeds to all or substantially all of the business of the Company,

	E.
	"Affiliate"
of a person or other entity shall mean a person or other entity that directly or indirectly controls, is controlled by, or is under common control with the person or other
entity specified,

	F.
	"Voting
Stock" shall mean any capital stock of any class or classes having general voting power under ordinary circumstances, in the absence of contingencies, to elect the directors of
a corporation and reference to a percentage of Voting Stock shall refer to such percentage of the votes that all such Voting Stock is entitled to cast.

	II.
	Other Changes

	1.
	Amendment to Section 6(c)

	

	Section 6
(c) in the Employment Agreement is hereby amended to change the reference in the fifth line from "35 miles" to "50 miles".

	2.
	Amendment to Section 7(b)(i):

	

	Section 7(b)(i)
is hereby amended to delete it and insert the following in place thereof:

	

	(i)
Employee covenants and agrees that during any period in which Base Salary is continued after termination of this Agreement (or in respect of which Base
Salary is paid in a lump sum) or for one year after Employee's voluntary termination of employment without Good Reason or termination of Employee's employment for cause, he or she will not, on his or
her own behalf or as a partner, officer, director, employee, agent, or consultant of any other person or entity, directly or indirectly, engage or attempt to engage in the business of providing or
selling services in the United States that are services offered by Employer at the time of the termination of this Agreement, unless waived in writing by Employer in its sole discretion. Employee
recognizes that the above restriction is reasonable and necessary to protect the interest of the Employer and its controller subsidiaries and affiliates. 

IN WITNESS WHEREOF, Employer and Employee have executed this Amendment to Employment Agreement as of the date first above written. 

	Magellan Health Services, Inc.	 
	

By	

/s/  CASKIE LEWIS-CLAPPER      
 Duly Authorized	

 
	

/s/  RUSSELL PETRELLA      
 Employee	

 

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Exhibit 10.45

AMENDMENT TO EMPLOYMENT AGREEMENT (TIER II)

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