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Exhibit 10.1    
    

SEVERANCE COMPENSATION AGREEMENT  

        This Agreement is effective as of the date it is signed by both AQUILA, INC., a Delaware corporation (the "Company"), and Rick J. Dobson ("Executive"). 

        WHEREAS,
the Company's Board of Directors has determined that it is appropriate to reinforce and encourage the continued attention and dedication of members of the Company's management,
including Executive, to their assigned duties without distraction in potentially disturbing circumstances arising from the possibility of a Change of Control; and 

        WHEREAS,
this Agreement sets forth the severance compensation to which Executive will be entitled upon certain conditions if Executive's employment with the Company terminates following
a Change of Control. 

        NOW,
THEREFORE, IN CONSIDERATION of the mutual premises, covenants and agreements set forth below, it is hereby agreed as follows: 

        1.    Term.    This Agreement shall terminate, except to the extent that any obligation of the Company hereunder
remains unpaid as of such time, upon the earliest of: (i) two (2) years from the date hereof if a Change in Control has not occurred within such 2-year period; provided that
the term of this Agreement shall be automatically extended for an additional month upon each monthly anniversary of the date hereof until a party provides notice to the other party prior to the end of
any month that such automatic extension shall cease, in which case this Agreement shall terminate at the end of the then existing 2-year term; (ii) the termination of Executive's
employment for any reason, including by reason of death, Disability or Retirement, prior to a Change of Control; (iii) the termination of Executive's employment for Cause following a Change of
Control; (iv) the
termination of Executive's employment for any reason other than for Good Reason following a Change of Control; or (v) two (2) years from the date of a Change in Control. 

        2.    Severance upon Termination of Employment.    

        (a)    Events Giving Rise to Benefits.    Executive shall be entitled to payments and other benefits as set forth in
Sections 2(b) and 2(c) if within two (2) years following a Change in Control, the Company shall terminate Executive's employment other than for Disability, Retirement, or Cause, or, within such
2-year period, Executive shall terminate his or her employment for Good Reason. Except as specifically provided in this Section 2, Executive shall have no right to receive
compensation under this Agreement. Termination of employment due to death shall not give rise to any rights to compensation under this Agreement. 

        (b)    Severance Pay.    The Company shall pay a lump sum cash amount, no later than the fifth (5th)
business day following Executive's Date of Termination, equal two times the sum of A plus B, where 

        "A"
equals Executive's annual base salary (including all amounts of such salary that are deferred under any qualified and non-qualified plans of the Company) determined at
the greater of the rate in effect as of the date of such termination or the highest rate in effect at any time during the 90 day period prior to the Change of Control; and 

        "B"
equals Executive's target annual incentive opportunity for the calendar year in which such Change in Control occurs, or if greater, the average (50th percentile) target
annual incentive opportunity for a select group of comparable companies as determined by an independent consulting firm selected by the Board of Directors of the Company. 

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        (c)    Other Benefits.    In addition to compensation set forth in Section 2(b) hereof, and subject to the
provisions and limitations set forth below, Executive shall be entitled to the following benefits: 

        (i)    Commencing
on the Date of Termination and continuing for a period of three (3) months thereafter, Executive may exercise all stock options granted to Executive
pursuant to the Company's equity incentive plan(s). Such stock options shall be exercisable whether or not: (i) a period of one year has elapsed from the date of grant to the date of exercise;
or (ii) any installment exercise terms as stipulated in any agreement issued under such plan(s) have been satisfied. However, in no event shall
Executive exercise any stock option after the expiration of the option period as stipulated in an agreement issued under such plan(s). 

        (ii)    Effective
as of the Date of Termination, any restrictions relating to stock awards granted under the Company's equity incentive plan(s) shall lapse. 

        (iii)    No
later than the fifth (5th) business day following Executive's Date of Termination, Executive shall receive a lump sum cash amount equal to Executive's
target annual and long-term incentive opportunity for the incentive period in which Executive's employment terminates times a fraction, the numerator of which is the number of days in such
incentive period ending on the Date of Termination and the denominator of which is the total number of days in such incentive period. 

        (iv)    Effective
as of the Date of Termination and continuing for a period of three years after the Date of Termination, the Company will provide Executive with health
insurance coverage at the same cost to Executive and at materially the same level of coverage for Executive as the coverage in effect immediately prior to the Date of Termination. The Company shall,
at its option, contribute amounts it is required to contribute on behalf of Executive pursuant to this paragraph either to: (A) plans maintained for the Company's employees; or
(B) private insurance plans. The health insurance continuation benefits paid for hereunder shall be deemed to be a part of Executive's COBRA coverage. All such health benefits shall be in
addition to any other benefits relating to health or medical care benefits that are available under the Company's policies to Executive following termination of employment; provided, however, that in
the event Executive becomes covered under substitute health plans of another employer with materially the same level of coverage as that provided by the Company during this period, subject to the
applicable requirement of COBRA, the Company will no longer provide health coverage under this paragraph. 

        (v)    Effective
as of the Date of Termination, Executive shall be entitled to the services of a national executive outplacement firm, the aggregate cost to the Company of
which shall not exceed the outplacement benefits comparable to the Aquila Workforce Transition Plan that is in effect as of the date of termination. 

        (vi)    Effective
as of the Date of Termination, Executive shall be entitled to three (3) years of additional credit for both age and service under the Company's
tax-qualified and non-qualified pension plans (specifically excluding any account-based plan such as a 401(k) or profit sharing plan); provided that if applicable provisions of
the Internal Revenue Code prevent payment in respect of such credit under the Company's tax-qualified pension plan, such payments shall be made under the Company's
non-qualified pension plan. 

        3.    Tax Reimbursement.    

        (a)    Gross-Up Payment.    Notwithstanding Anything in this Agreement to the contrary, in the event it
shall be determined that any payment or distribution to or for the benefit of Executive 

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whether
paid or payable or distributed or distributable pursuant to the terms of this Agreement (other than any payment under this Section 3) or otherwise would be subject to the excise tax
imposed by Section 4999 of the Internal Revenue Code of 1986 (the "Code") or a similar section (such payment, a "Change in Control Payment" and such excise tax on all such Change in Control
Payments, together with any interest and penalties thereon, collectively the "Excise Tax"), then Executive shall be entitled to receive an additional payment (a "Gross-Up Payment") in an
amount determined by the Accounting Firm such that after payment by Executive of any tax thereon, Executive retains an amount of the Gross-Up Payment equal to the amount of the Excise Tax;
provided, however, that if the aggregate value (as determined under Section 280G of the Code) of such Change in Control Payments is less than 110% of the product of "3 times" the Executive's
"base amount" (as defined in Section 280G(b)(3) of the Code) (such product, the "Golden Parachute Threshold"), then Executive shall not be entitled to any Gross-Up Payment and,
instead, the Change in Control Payments shall be reduced so that their aggregate value (as so determined) is equal to $1.00 less than the Golden Parachute Threshold. 

        For
purposes of this Section 3, Executive's applicable Federal, state and local taxes shall be computed at the maximum marginal rates, taking into account the effect of any loss
of personal exemptions resulting from receipt of the Gross-Up Payment. 

        (b)    Determinations.    All determinations required to be made under this Section 3, including whether a
Gross-Up Payment is required under Section 3(a), and the assumptions to be used in determining the Gross-Up Payment, shall be made by such accounting firm as the Company
may designate in writing prior to a Change in Control (the "Accounting Firm"), which shall provide detailed supporting calculations both to the Company and Executive within thirty (30) business
days of the receipt of notice from Executive that there has been a Change in Control, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as
accountant or auditor for the Person effecting the Change in Control or is otherwise unavailable, Executive may appoint another nationally recognized accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. 

        (c)    Subsequent Redeterminations.    Unless requested otherwise by the Company, Executive agrees to use reasonable
efforts to contest in good faith any subsequent determination by the Internal Revenue Service that Executive owes an amount of Excise Tax greater than the amount determined pursuant to
Section 3(b), provided that Executive shall be entitled to reimbursement by the Company of all fees and expenses reasonably incurred by Executive in contesting such determination. In the event
the Internal Revenue Service or any court of competent jurisdiction determines that Executive owes an amount of Excise Tax that is either greater or less than the amount previously taken into account
and paid under this Section 3, the Company shall promptly reimburse Executive, or Executive shall promptly reimburse the Company, as the case may be, the amount of such excess or shortfall. In
the case of any payment that the Company is required to make to Executive pursuant to the preceding sentence (a "Later Payment"), the Company shall also reimburse Executive an additional amount such
that after payment by Executive of all of Executive's applicable Federal, state and local taxes, including any interest and penalties assessed by any taxing authority, on such additional amount,
Executive will retain an amount equal to the total of Executive's applicable Federal, state and local taxes, including any interest and penalties assessed by any taxing authority, arising due to the
Later Payment. In the case of any reimbursement of Excise Tax that Executive is required to make to the Company pursuant to the second sentence of this Section 3(c), Executive shall also
reimburse the Company at the amount of any additional payment received by Executive from the Company in respect of applicable Federal, 

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state
and local taxes on such repaid Excise Tax, to the extent Executive is entitled to a refund of (or has not yet paid) such Federal, state or local taxes. 

        4.    Definitions.    As used in this Agreement, the following capitalized terms shall have the meaning set forth
below: 

        (a)    "Beneficial Owner" shall have the meaning set forth in Rule 13d-3 under the Exchange Act. 

        (b)    "Benefit Plans" means any employee benefit plan or arrangement providing retirement benefits or any health, life,
disability or similar welfare insurance. Executive perquisites are specifically excluded from this definition. 

        (c)    "Cause" means: 

          (i)  The
willful and continued failure by Executive to substantially perform his or her duties of employment with Company other than any such failure resulting from
Executive's incapacity due to physical or mental illness, unless Executive uses reasonable efforts to correct such failure within a reasonable time after demand for substantial performance is
delivered by the Company that specifically identifies the manner in which the Company believes Executive has not substantially performed his or her duties; 

      (ii)    The
willful misconduct by Executive which materially injures the Company monetarily or otherwise; or 

      (iii)    Conviction
of, or entry of a plea of nolo contendere with regard to, any felony or any crime involving moral turpitude or dishonesty of or by Executive. For purposes
of this paragraph, no act, or failure to act, on Executive's part shall be considered "willful" unless done, or omitted to be done, by him or her not in good faith and without reasonable belief that
his or her action or omission was in, or not opposed to, the best interests of the Company. 

        (d)    "Change in Control" means and shall be deemed to have occurred upon the occurrence of any of the following events: 

      (i)    Any
Person is or becomes the Beneficial Owner, directly or indirectly, of 20% or more of the Voting Securities of the Company (not including in the securities
beneficially owned by such Person any securities acquired directly from the Company or its affiliates, other than in connection with the acquisition by the Company or its affiliates of a business)
unless such Person becomes a Beneficial Owner of 20% or more of the Voting Securities of the Company as a result of an acquisition of Voting Securities by the Company which, after reducing the Voting
Securities outstanding, increases the proportionate Voting Securities of the Company beneficially owned by such Person to 20% or more by reason of such Voting Securities acquisition by the Company;  provided, however, if a Person shall become the Beneficial Owner of 20% or more of the combined voting
power of the Voting Securities of the Company then outstanding by reason of such Voting Securities acquisition by the Company and shall thereafter become the Beneficial Owner of any additional Voting
Securities of the Company which causes the proportionate voting power of Voting Securities beneficially owned by such Person to increase to more than 20% of the combined voting power of the Voting
Securities of the Company then outstanding, such Person shall, upon becoming the Beneficial Owner of such additional Voting Securities, be deemed to have become the Beneficial Owner of 20% or more of
the combined voting power of the Voting Securities of the Company then outstanding other than solely as a result of such Voting Securities acquisition by the Company; 

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      (ii)    During
any period of 36 consecutive months (not including any period prior to the effective date of this Agreement), individuals who at the beginning of such period
constitute the Board of Directors of the Company (and any new director, whose election by the board or nomination for election by the Company's stockholders was approved by a vote of at least
two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was so approved), cease for any
reason to constitute a majority of directors then constituting the Board of Directors of the Company; 

      (iii)    A
reorganization, merger or consolidation of the Company is consummated, in each case, unless, immediately following such reorganization, merger or consolidation,
(i) more than 50% of, respectively, the then outstanding shares of Voting Securities of the corporation resulting from such reorganization, merger or consolidation is then beneficially owned,
directly or indirectly, by all or substantially all of the individuals and entities who were the Beneficial Owners of the Voting Securities of the Company outstanding immediately prior to such
reorganization, merger or consolidation, (ii) no Person (but excluding for this purpose any Person beneficially owning, immediately prior to such reorganization, merger or consolidation,
directly or indirectly, 20% or more of the voting power of the outstanding Voting Securities of the Company) beneficially owns, directly or indirectly, 20% or more of, respectively, the then
outstanding shares of Voting Securities of the corporation resulting from such reorganization, merger or consolidation, and (iii) at least a majority of the members of the board of directors of
the corporation resulting from such reorganization, merger or consolidation were members of the Board of Directors of the Company at the time of the execution of the initial agreement providing for
such reorganization, merger or consolidation; or 

      (iv)    The
stockholders of the Company approve (i) a complete liquidation or dissolution of the Company or (ii) the sale or other disposition of more than 50% of
all of the assets of the Company, other than to any corporation with respect to which, immediately following such sale or other disposition, (A) more than 50% of, respectively, the then
outstanding shares of Voting Securities of such corporation is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the Beneficial
Owners of the Voting Securities of the Company outstanding immediately prior to such sale or other disposition of assets, (B) no Person (but excluding for this purpose any Person beneficially
owning, immediately prior to such sale or other disposition, directly or indirectly, 20% or more of the voting power of the outstanding Voting Securities of the Company) beneficially owns, directly or
indirectly, 20% or more of, respectively, the then outstanding shares of Voting Securities of such corporation and (C) at least a majority of the members of the board of directors of such
corporation were members of the Board of Directors of the Company at the time of the execution of the initial agreement or action of the board providing for such sale or other disposition of assets of
the Company. 

        Notwithstanding
the foregoing, in no event shall a "Change in Control" be deemed to have occurred if: (1) there is consummated any transaction or series of integrated transactions
immediately following which the record holders of the Voting Securities of the Company immediately prior to such transaction or series of transactions continue to have substantially the same
proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions; or (2) Executive is part
of a "group," within the meaning of Section 13(d)(3) of the Exchange Act as in effect of the effective date of this Agreement, which consummates the Change in Control transaction; or
(3) any required regulatory approval of a transaction giving rise to a Change in Control has not been obtained. In addition, for purposes of the definition of "Change in Control," a Person 

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engaged
in business as an underwriter of securities shall not be deemed to be the Beneficial Owner of any securities acquired through such Person's participation in good faith in a firm commitment
underwriting until the expiration of forty days after the date of such acquisition. 

        (e)    "Company" means Aquila, Inc. and any successor or assign to its business and/or assets which executes and delivers
the agreement provided by this Agreement or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. 

        (f)    "Date of Termination" means (i) if this Agreement is terminated by Executive for Good Reason, the date Executive
delivers notice of such termination to the Company; (ii) if Executive's employment is terminated by the Company for Disability, 30 days after Notice of Termination is given to Executive
(provided that Executive shall not have offered to return and is able to return to the performance of Executive's duties on a full-time basis during such 30-day period); or
(iii) if Executive's employment is terminated by the Company for any other reason, the date on which a Notice of Termination is given. 

        (g)    "Disability" means Executive's incapacity due to physical or mental illness which shall have caused Executive to have
been absent from his or her duties with the Company on a full-time basis for six months and Executive shall not have returned to the full-time performance of Executive's duties
within 30 days after written Notice of Termination has been given by the Company. 

        (h)    "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended. 

        (i)    "Good Reason" means any of the following if the same shall occur, without Executive's express written consent, within two
(2) years after a Change in Control: 

      (i)    the
assignment to Executive of duties materially inconsistent with Executive's position, duties, responsibilities and status with the Company immediately prior to the
Change in Control, or a material adverse change in Executive's titles or reporting relationships as in effect immediately prior to the Change in Control, or any removal of Executive from or any
failure to reelect Executive to any of such positions; 

      (ii)    a
reduction in Executive's base salary as in effect on the date hereof or as the same may be increased from time to time during the term of this Agreement; 

      (iii)    any
failure by the Company to continue in effect any Benefit Plan enjoyed by Executive at the time of the Change in Control (or plans or arrangements or other benefits
providing him or her with substantially similar or better benefits, taken in the aggregate), or the taking of any action by the Company, which would adversely affect Executive's participation in or
materially reduce Executive's benefits under any such Benefit Plans, taken in the aggregate; 

      (iv)    any
failure by the Company to continue in effect any Incentive Plan in which Executive was participating at the time of the Change in Control (or plans or arrangements
providing him or her with substantially similar or better benefits, taken in the aggregate), or the taking of any action by the Company which would adversely affect Executive's participation in any
such Incentive Plan or reduce Executive's benefits under any such Incentive Plan, expressed as a percentage of his or her base salary, by more than 10 percentage points in any fiscal year as
compared to the immediately preceding fiscal year; 

         (v)  any
failure by the Company to continue in effect any Securities Plan in which Executive was participating at the time of the Change in Control (or plans or arrangements
providing him or her with substantially similar or better benefits, taken in the aggregate) or 

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the
taking of any action by the Company which would adversely affect Executive's participation in or materially reduce Executive's benefits under any such Securities Plan; 

      (vi)    any
requirement that Executive relocate more than 50 miles from the area in which Executive performed Executive's duties prior to the Change in Control, except for
required travel by Executive on the Company's business to an extent substantially consistent with Executive's business travel obligations at the time of the Change in Control; 

      (vi)    any
material breach by the Company of any provision of this Agreement; 

      (vii)    any
failure by the Company to obtain the assumption of this Agreement by any successor or assign of the Company; or 

      (viii)  any
purported termination of Executive's employment which is not effected pursuant to a Notice of Termination satisfying the requirements of this Agreement. 

        (l)    "Incentive Plan" means any annual or long term incentive plan or arrangement, such as a bonus or performance plan. 

        (m)  "Notice of Termination" means a written notice which indicates the specific termination provisions in this Agreement
relied upon and which sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive's employment. For purposes of this Agreement, no such
purported termination shall be effective without such Notice of Termination. 

        (n)    "Person" shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in
Section 13(d) and 14(d) thereof, except that such terms shall not include (i) the Company or any of its affiliates (as defined in Rule 12b-2 promulgated under the
Exchange Act), (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its affiliates, (iii) an underwriter temporarily holding
securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company. 

        (o)    "Retirement" means the termination by the Company or Executive of Executive's employment based on Executive having
retired pursuant to the then existing retirement plan of the Company at or after age 65 or by any agreement between the Company and Executive, or by any generally applicable retirement policy of the
Company. 

        (p)    "Securities Plan" means any plan or arrangement providing participants the opportunity to receive securities of the
Company, including without limitation stock options, stock appreciation rights, restricted stock. 

        (q)    "Voting Securities" means with respect to any corporation, the common stock and other securities of the corporation
entitled to vote generally in the election of the board of directors of the corporation. 

        5.    Notice of Termination.    Any termination of Executive's employment for any reason shall be effected pursuant to
a Notice of Termination conforming to the requirements of this section. 

        6.    No Obligation to Mitigate Damages; No Effect on Other Contractual Rights.    

        (a)    Executive
shall not be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise, nor shall
the amount of any payment provided for under this Agreement be reduced by any compensation 

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earned
by Executive as the result of employment by another employer after the Date of Termination, or otherwise. 

        (b)    The
provisions of this Agreement, and any payment provided for hereunder, shall not reduce any amounts otherwise payable, or in any way diminish Executive's existing
rights, or rights which would
accrue solely as a result of the passage of time, under any Benefit Plan, Incentive Plan or Securities Plan, employment agreement or other contract, plan or arrangement. 

        7.    Successor to the Company.    

        (a)    The
Company will require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company, by agreement in form and substance reasonably satisfactory to Executive, expressly, absolutely and unconditionally to assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place. Any failure of the Company to obtain such agreement
prior to the effectiveness of any such succession or assignment shall be a material breach of this Agreement and shall entitle Executive to terminate Executive's employment for Good Reason. 

        (b)    This
Agreement shall inure to the benefit of and be enforceable by Executive's personal and legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If Executive should die while any amounts are still payable to him or her hereunder, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to Executive's devisee, legatee, or other designee, or if there be no such designee, to Executive's estate. The services to be provided by Executive to the
Company under this Agreement are personal and are not delegable or assignable. 

        8.    Notice.    For purposes of this Agreement, notices and all other communications provided for in the Agreement
shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified or registered mail, return receipt requested, postage prepaid, as follows: 

	 	 	If to the Company:

Aquila, Inc..

20 West Ninth Street

Kansas City, Missouri 64105

ATTN: Corporate Secretary

If to Executive to the address of

Executive on the books of the Company.

        Another address may be used if a party has furnished a different address to the other party in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt. 

        9.    Sole Agreement.    This Agreement represents the entire agreement between the parties with respect to the
matters contemplated herein. Any earlier agreement relating to severance compensation between the parties or between Executive and any affiliate of the Company is hereby terminated and superseded, and
all obligations by either party thereunder shall cease immediately preceding the commencement of the term of this Agreement and are hereby agreed to be satisfied in full. No agreements or
representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. The parties 

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acknowledge
and agree that the severance benefits hereunder are in lieu of the benefits offered under the Company's Workforce Transition Program (or any successor severance plan or arrangement) and
that Executive shall not be eligible for any benefits under such program. 

        10.    Validity.    The invalidity or unenforceability of any provisions of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

        11.    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall be deemed to
be an original but all of which together will constitute one and the same instrument. 

        12.    Legal Fees and Expenses.    The Company shall pay all legal fees and expenses which Executive reasonably may
incur as a result of the Company's contesting the validity, enforceability or Executive's interpretation of, or determinations under, this Agreement. 

        13.    Confidential Information.    Executive agrees not to disclose during the term hereof or thereafter any of the
Company's confidential or trade secret information, except as required by law. Executive recognizes that Executive shall be employed in a sensitive position in which, as a result of a relationship of
trust and confidence, Executive will have access to trade secrets and other highly confidential and sensitive information. Executive further recognizes that the knowledge and informed acquired by
Executive concerning the Company's materials regarding employer/employee contracts, customers, pricing schedules, advertising and interviewing techniques, manuals, systems, procedures and forms
represent the most vital part of the Company's business and constitute by their very nature, trade secrets and confidential knowledge and information. Executive hereby stipulates and agrees that all
such information and materials shall be considered trade secrets and confidential information. If it is at any time determined that any of the information or materials identified in this Section are,
in whole or in part, not entitled to protection as trade secrets, they shall nevertheless be considered and treated as confidential information in the same manner as trade secrets, to the maximum
extent permitted by law. Executive further agrees that all such trade secrets or other confidential information, and any copy, extract or summary thereof, whether originated or prepared by or for
Executive or otherwise coming into Executive's knowledge, possession, custody, or control, shall be and remain the exclusive property of the Company. 

        14.    Withholding.    The Company may withhold from any benefits payable under this Agreement all federal, state,
city or other taxes as shall be required pursuant to any law or governmental regulation or ruling. 

        15.    Arbitration.    Any claim or controversy arising out of or relating to this Agreement or any breach thereof
shall be settled by arbitration. Any such arbitration shall take place in Kansas City, Missouri, in accordance with the rules of the American Arbitration Association. Any award rendered shall be final
and conclusive upon the parties and judgment therein may be entered in the highest court of the forum, state or federal, having jurisdiction. 

        16.    Attachment.    Except as required by law, the right to receive payments under this Agreement shall not be
subject to anticipation, sale, encumbrance, charge, levy, or similar process or assignment by operation of law. 

        17.    Waivers.    Any waiver by a party or any breach of this Agreement by another party shall not be construed as a
continuing waiver or as a consent to any subsequent breach by the other party. Except as otherwise expressly set forth herein, no failure on the part of any party hereto to exercise and no delay in
exercising any right, power or remedy hereunder shall operate s a waiver thereof, nor 

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shall
any single or partial exercise of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy. 

        18.    Headings.    The headings of the sections of this Agreement have been inserted for convenience of reference
only and shall in no way restrict or modify any of the terms or provisions hereof. 

        19.    Governing Law.    This Agreement shall be governed and construed and the legal relationships of the parties
determined in accordance with the laws of the State of Missouri. 

THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.

	AQUILA, INC.	 	 
	

By:	
 	

/s/  RICHARD C. GREEN      
 Chairman, Chief Executive Officer and President
	

Date:	
 	

07/10/04            
	

EXECUTIVE
	

By:	
 	

/s/  RICK J. DOBSON      
 Senior Vice President and Chief Financial Officer
	

Date:	
 	

06/11/04

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Exhibit 10.1Mansheim Employment Agreement

Exhibit 10.7

EMPLOYMENT AGREEMENT 

        This
Employment Agreement (“Agreement”) is entered into as of the 1st day
of June, 2004, by and between Bernard J. Mansheim, M.D. (“Executive”) and
Coventry Health Care, Inc. (“Employer”), a Delaware corporation with its
principal place of business at 6705 Rockledge Drive, Bethesda, Maryland 20817. 

W I T N E S S E T H: 

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

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

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

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

         1.       
Employment. Employer hereby agrees to continue to employ
Executive to serve as Senior Vice President and Chief Medical Officer. Executive
hereby agrees to such employment on and after the date hereof under the terms
and conditions hereinafter set forth. 

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

    3.       
Term. Subject to the terms and conditions set forth herein,
the term of this Agreement commenced as of June 1, 2004, shall continue through
December 31, 2006 (the “Initial Term”), and shall continue on a year
to year basis thereafter (the “Renewal Term”), until the
Executive’s employment terminates as outlined in Sections 8 and 9 herein or
until one party provides the other with a minimum of thirty (30) days prior
written notice (the “Notice”) of termination. 

         4.       
Base Compensation. For all duties rendered by Executive,
Employer shall pay Executive a base salary (“Base Salary”) of no less
than Three Hundred Seventy-Five Thousand Dollars ($375,000), annually. The Base
Salary shall be paid to Executive in accordance with Employer’s normal
payroll policies. 

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

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

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

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

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

    7.      
 Extent of Service. Executive shall devote substantially all
of his working time, attention and energies to the business of the Employer and
shall not, during the term of this Agreement, take, directly or indirectly, an
active role in any other business activity without the prior written consent of
the Employer; but except as provided in Section 13(b), this Section shall not
prevent Executive from serving as a director of other entities not affiliated
with Employer, from making real estate or other investments of a passive nature
or from participating in the activities of a nonprofit charitable organization
where such participation does not require a substantial amount of time and does
not adversely affect Executive’s ability to perform his duties under this
Agreement. 

    8.      
 Termination of Employment. Employer may terminate this
Agreement with or without cause at any time with notice (as defined in Section
3). However, except in the case of a Termination With Cause (as defined in
Section 22), if the Executive suffers a Termination Without Cause (as defined in
Section 22) or a Constructive Termination (as defined in Section 22) the
following provisions will apply: 

          	(a) 	  	
Employer shall during the Severance Period (as defined in Section 22), continue
to pay Executive an amount equal to the Executive’s Base Salary at the time
of termination of employment. Such amount will be paid during the Severance
Period in installments similar to those being received by Executive at the date
of termination of employment, and will commence as soon as practicable following
the date of termination of employment. 

	(b) 	  	
During the Severance Period Executive and his spouse and family will continue to
be covered by all Welfare Plans (as defined in Section 22), maintained by
Employer in which he or his spouse or family were participating immediately
prior to the date of his termination as if he continued to be an employee of
Employer; provided that, if participation in any one or more of such Welfare
Plans is not possible under the terms thereof, Employer will provide
substantially identical benefits to the extent possible. If, however, Executive
obtains employment with another employer during the Severance Period, such
coverage shall be provided until the earlier of: (i) the end of the Severance
Period or (ii) the date on which the Executive and his spouse and family can be
covered under the plans of a new employer without being excluded from full
coverage because of any actual pre-existing condition. Executive’s
eligibility for and the Employer match to the 401(k) Plan, Supplemental
Executive Retirement Plan and/or any other retirement savings program in which
the Employee participates shall end at the date of termination of employment. 

	(c) 	  	
During the Severance Period Executive shall not be entitled to accrue any
additional vacation, sick or floating holiday time. 

          	(d) 	  	
During the Severance Period Executive shall not be entitled to reimbursement for
fringe benefits such as car allowance, dues and expenses related to club
memberships, and expenses for professional services. 

        Compensation
under Section 8(a) and (b) hereof is contingent upon Executive’s compliance with
Section 13 hereof. 

    9.       
Termination by Executive. Executive may terminate his
employment hereunder at any time upon thirty (30) days prior written notice (the
“Notice”). Upon such termination by Executive, the Employer shall pay
the Executive only his Base Salary due through the date on which his employment
is terminated at the rate in effect at the time of notice of termination. The
Employer shall then have no further obligation to Executive under this
Agreement, except for the payout of benefits accrued under any Employee Benefit
Plans or other employee benefits. 

    10.       
Setoff. 

	(a) 	  	
With respect to Section 8, payments or benefits payable to or with respect to
Executive or his spouse pursuant to this Agreement shall be reduced by the
amount of any claim of Employer against Executive or his spouse or any debt or
obligation of Executive or his spouse owing to Employer. 

	(b) 	  	
With respect to Section 8, payments or benefits payable to or with respect to
Executive pursuant to this Agreement shall be reduced by any amount Executive
may earn or receive from employment with another employer or other professional
services, except as expressly provided in Section 8(b). Employee shall notify
Employer immediately in writing of the date upon which such services or other
work commenced and shall provide Employer with such documentation as Employer
shall require to determine the amount of any such setoff. Employee’s
failure to provide such written notice and documentation as required herein
shall immediately release Employer from its obligations under this Agreement and
Employer shall have the right to recover all amounts payable beginning at the
point of employment with another employer or at the point other professional
services are rendered. 

    11.       
Death. In the event of the Executive’s death during
the Initial or Renewal Term, the Agreement terminates and all payments under the
Agreement shall cease as of the date of death, except for the following benefits
to be paid to the Executive’s beneficiaries: 

	(a)	  	
any earned but unpaid base salary and a lump sum payment equal to the average
annual bonus compensation for the two (2) calendar years immediately preceding
the death of Executive; 

(b)    
for twenty-four (24) months following the date of the Executive’s death,
the Company shall pay the cost of medical, dental, and vision insurance premiums
as in effect at the date of the Executive’s death, to the Executive’s
designated beneficiary, subject to a formal election by the beneficiary; 

(c)    
the exercisability of stock options granted to the Executive shall be governed
by any applicable stock option agreements and the terms of the respective stock
option plans; and 

(d)    
the Executive’s designated beneficiary will be entitled to receive the
proceeds of any life or other insurance or other death benefit programs provided
or referred to in this Employment Agreement. 

    12.       
Disability. Notwithstanding the short-term disability of the
Executive, the Company will continue to pay the Executive pursuant to Section 4
hereof during the Initial or Renewal Term, unless the Executive’s
employment is earlier terminated in accordance with this Agreement. In the event
the Executive becomes disabled (as defined by the Company’s long-term
disability plan), the Executive’s employment will be termed and the Company
will pay the Executive amounts equal to the following: 

     	(a) 	
any earned but unpaid Base Salary and a lump sum payment equal to the average
annual Bonus for the two (2) calendar years immediately preceding the year of
termination due to disability; 

	(b) 	
for twenty-four (24) months following the date of the Executive’s
termination due to disability, the Company shall pay for the cost of the
Executive’s medical, dental, and vision insurance premiums as in effect at
the date of the Executive’s termination, subject to a formal election by
the Executive; and 

	(c) 	
the Executive will receive a monthly payment equal to 60% of the
Executive’s pre-disability earnings (as defined by the qualified long-term
disability plan) less any monthly benefit paid under the qualified long-term
disability program. Such payments shall continue to cessation of payments under
the Company’s qualified long-term disability program. 

	(d) 	
the Executive will receive twelve (12) months additional vesting credit for all
stock options and restricted stock awards. 

        During
the period the Executive is receiving payments following his disability and as long as he
is physically and mentally able to do so, the Executive will furnish information and
assistance to the Company and from time to time will make himself available to the Company
to undertake assignments consistent with his position or prior position with the Company
and his physical and mental health. 

        For
purposes of this Agreement, the term “disabled” or “disability” will
have the same meaning as is attributed to such term, or any substantially similar term, in
the Company’s long-term disability income plan as in effect from time to time. The
Company’s group long-term disability policy in existence at the time of disability
shall be considered to be a part of this Agreement. 

	13. 	  	
Restrictive Covenants. 

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

          	(b) 	  	
Non-Competition. During the term of employment provided hereunder and for
a period of twelve months following termination of employment in accordance with
the terms of Section 8 herein, Executive will not directly or indirectly own,
manage, operate, control or participate in the ownership, management, operation
or control of, or be connected as an officer, employee, partner, director or
otherwise with, or any have financial interest in, or aid or assist anyone else
in the conduct of, any business which is in competition with any business
conducted by the Employer or any Affiliate of Employer in any state in which the
Employer or any Affiliate of Employer is conducting business on the date of
termination or expiration of this Agreement, provided that ownership of 5% or
less of the voting stock of any public corporation shall not constitute a
violation hereof. In the event Executive enters into any of the foregoing
arrangements in competition with Employer or any Affiliate of Employer,
Executive shall forfeit all rights to payments and other benefits under Section
8 above, and not yet paid to Executive under this Agreement, as of the violation
of the terms of this Section 13(b). Such forfeiture shall be Employer’s
sole remedy against Executive for violation of this Section 13(b). 

          	(c) 	  	
Non-Solicitation. During the term of employment provided for hereunder
and for a period of twelve months following termination of employment in
accordance with the terms of Section 8 herein, Executive will not (i) directly
or indirectly solicit business which could reasonably be expected to conflict
with the interest of Employer or any Affiliate of Employer from any entity,
organization or person which has contracted with the Employer or any Affiliate
of Employer, which has been doing business with the Employer or any Affiliate of
Employer, from which the Employer or any Affiliate of Employer was soliciting
business at the time of the termination of employment or from which Executive
knew or had reason to know that Employer or any Affiliate of Employer was going
to solicit business at the time of termination of employment, or (ii) employ,
solicit for employment, or advise or recommend to any other persons that they
employ or solicit for employment, any employee of the Employer or any Affiliate
of Employer. 

          	(d) 	  	
Consultation. Executive shall, at the Employer’s written request,
for a period of twelve months following termination of his employment, in
accordance with the terms of Section 8 herein, cooperate with the Employer in
concluding any matters in which Executive was involved during the term of his
employment and will make himself available for consultation with the Employer on
other matters otherwise of interest to the Employer. The Employer agrees that
such requests shall be reasonable in number and will consider Executive’s
time required for other employment and/or employment search. In the event of
voluntary termination by Executive, Employer agrees to pay Executive a
reasonable fee for any such consultation services requested by Employer;
provided, however, Executive agrees to cooperate with Employer and if there is
no conflict with Executive’s new employer, in concluding any matters in
which Executive was involved during the term of his employment. 

          	(e) 	  	
Enforcement. Executive and the Employer acknowledge and agree that any of
the covenants contained in this Section 13 herein may be specifically enforced
through injunctive relief but such right to injunctive relief shall not preclude
the Employer from other remedies which may be available to it. 

          	14. 	  	
Executive Assignment. No interest of Executive or his
spouse or any other beneficiary under this Agreement, or any right to receive
any payment or distribution hereunder, shall be subject in any manner to sale,
transfer, assignment, pledge, attachment, garnishment, or other alienation or
encumbrance of any kind, nor may such interest or right to receive a payment or
distribution be taken, voluntarily or involuntarily, for the satisfaction of the
obligations or debts of, or other claims against, Executive or his spouse or
other beneficiary, including claims for alimony, support, separate maintenance,
and claims in bankruptcy proceedings. 

          	15. 	  	
Benefits Unfunded. All rights of Executive and his spouse
or other beneficiaries under this Agreement shall at all times be entirely
unfunded and no provision shall at any time be made with respect to segregating
any assets of Employer for payment of any amounts due hereunder. Neither
Executive nor his spouse or other beneficiaries shall have any interest in or
rights against any specific assets of Employer, and Executive and his spouse or
other beneficiary shall have only the rights of a general unsecured creditor of
Employer. 

          	16. 	  	
Notices. Any notice required or permitted to be given under
this Agreement shall be sufficient if in writing and sent by registered or
certified mail to his primary residence in the case of Executive, or to its
principal office in the case of the Employer and the date of receipt shall be
deemed the date which such notice has been provided. 

          	17. 	  	
Waiver of Breach. The waiver by either party of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach by the other party. 

          	18. 	  	
Assignment. The rights and obligations of the Employer
under this Agreement shall inure to the benefit of and shall be binding upon the
successors and assigns of the Employer. The Executive acknowledges that the
services to be rendered by his are unique and personal, and Executive may not
assign any of his rights or delegate any of his duties or obligations under this
Agreement. 

          	19. 	  	
Entire Agreement. This instrument contains the entire
agreement of the parties and supersedes all other prior agreements, employment
contracts and understandings, both written and oral, express or implied with
respect to the subject matter of this Agreement and may not be changed orally
but only by an agreement in writing signed by the party against whom enforcement
of any waiver, change, modification, extension or discharge is sought. 

	20. 	  	
Applicable Law. This Agreement shall be governed by the
laws of the State of Maryland, without giving effect to the principles of
conflicts of law thereof. 

 	21. 	  	
Headings. The sections, subjects and headings of this
Agreement are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement. 

	22. 	  	
Definitions. For purposes of this Agreement: 

          	(a) 	  	
“Affiliate” shall have the meaning set forth in Rule 144(a)(1)
promulgated under the Securities Act of 1933, as amended. 

 	(b) 	  	
“Constructive Termination” shall mean termination by the Executive
which follows (i) reassignment of duties, responsibilities, title, or reporting
relationships that are not at least the equivalent of his then current position
as set forth in Section 1, (ii) the intentional or material breach by the
Company of this Agreement, or (iii) a reassignment to a geographic location more
than fifty (50) miles from Bethesda, Maryland. The Executive shall have a period
of ninety (90) days after termination of his employment to assert against the
Employer that he suffered a Constructive Termination, and after the expiration
of such ninety (90) day period, the Executive shall be deemed to have
irrevocably waived the right to such assertion. 

          	(c) 	  	
“Severance Period” shall mean the period beginning on the day after
the Executive’s employment with Employer ends after a Termination Without
Cause or Constructive Termination, as described in Section 8, and ending on the
date that follows twelve months thereafter. 

          	(d) 	  	
“Termination With Cause” shall mean termination by the Employer,
acting in good faith, by written notice to the Executive specifying the event
relied upon for such termination, due to; (i) the Executive’s indictment or
conviction of a felony, (ii) the Executives’ intentional perpetration of a
fraud, theft, embezzlement or other acts of dishonesty, (iii) the
Executive’s intentional breach of a trust of fiduciary duty which
materially affects the Employer or its shareholders. 

          	(e) 	  	
“Termination Without Cause” shall mean termination by the Employer
other than due to the Executive’s death or “Termination With
Cause”. 

          	(f) 	  	
“Welfare Plans” shall mean any medical, vision and dental coverage
made available by Employer in which Executive is eligible to participate. 

	23. 	  	
Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original. 

	24. 	  	
Severability. In the event any provision of this Agreement
is held illegal or invalid, the remaining provisions of this Agreement shall not
be affected thereby. In the event that Section 13(b) is determined by a court of
competent jurisdiction to be invalid due to overbreadth, such Section 13(b)
shall be constructed as narrowly as necessary to be enforceable. 

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

/s/ Bernard J. Mansheim, M.D.

Bernard J. Mansheim, M.D. 

COVENTRY HEALTH CARE, INC. 

By: /s/ Thomas P. McDonough

Thomas P. McDonough

Executive Vice President and Chief Operating Officer

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