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                                                                    EXHIBIT 10.1

                                  PHYCOR, INC.

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2000

                                    RECITALS:

         WHEREAS, PhyCor, Inc. ("PhyCor") established the Plan effective January
1, 1997, pursuant to approval of the PhyCor board of directors, and has amended
the Plan from time to time to designate individuals who are eligible to
participate hereunder;

         WHEREAS, on December 16, 1999, the board of directors of PhyCor took
action to authorize the payment of certain deferred compensation amounts to
eligible participants; and

         WHEREAS, PhyCor now desires to modify the Plan to provide for the
accrual of specified deferred compensation amounts through individual accounts
maintained on behalf of each eligible participant, and to otherwise reflect the
intent of the actions taken by the board;

         NOW, THEREFORE, the Plan is hereby amended and restated to reflect the
foregoing, effective January 1, 2000.

                               I. NAME AND PURPOSE

         PhyCor has determined that it is reasonable, desirable and necessary to
provide for retirement benefits to certain executive employees of PhyCor that
supplement the retirement benefits provided under the PhyCor, Inc. Savings and
Profit Sharing Plan. Accordingly, PhyCor has established this PhyCor, Inc.
Supplemental Executive Retirement Plan (the "Plan") in order to enable PhyCor to
attract into and retain persons of outstanding competence. This Plan is to be an
unfunded plan of deferred compensation covering a select group of management or
highly compensated employees, within the meaning of sections 201(2), 301(a)(3),
and 401(a)(1) of ERISA, and is intended to be exempt from Parts 2, 3, and 4 of
Title I of ERISA. The Plan shall continue indefinitely until it is terminated by
an amendment permissible under Section 7.3.

                                 II. DEFINITIONS

         When used in this Plan, the following terms will have the meanings set
forth below:

         2.1 "Account" means the individual bookkeeping account maintained for
each Participant which is credited with such amounts as are determined pursuant
to Article III. The individual account shall be established for record keeping
purposes only and shall not require an actual segregation or allocation of
assets.

         2.2 "Change in Control" means (i) a consolidation or merger of PhyCor
with or into any other person in which PhyCor will not survive, or will survive
only as a subsidiary of another corporation, (ii) the sale, lease or other
disposition of all or substantially all of the assets

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of PhyCor to any other person, (iii) complete liquidation or dissolution of
PhyCor, or (iv) the acquisition by any person, including a "group" as
contemplated by section 13(d)(3) of the Securities Exchange Act of 1934, as
amended, of beneficial ownership or control of securities of PhyCor representing
50% or more of the combined voting power of PhyCor's then outstanding
securities; provided, however, a Change in Control shall not be deemed to have
occurred solely as a result of any transaction between PhyCor and one or more of
its affiliates (whether or not in existence on the date hereof).

         2.3 "Code" means the Internal Revenue Code of 1986, as amended.

         2.4 "Commencement Date" means January 1 coinciding with or following
the date a Participant attains age 65 and has terminated employment for reasons
other than death. In the event of a Participant's death, the Commencement Date
shall be the date that is as soon as administratively feasible following the
date of death.

         2.5 "Committee" means the compensation committee of the board of
directors of PhyCor; provided, however, that after the occurrence of a Change in
Control, or after the termination of employment of a Participant without "cause"
(as defined in the Participant's employment agreement with PhyCor) the members
of the Committee shall instead be the individuals who are Participants
immediately prior to the Change in Control or termination event.

         2.6 "Compensation" means the average of a Participant's annual
compensation that is paid over the three consecutive fiscal years that will
produce the highest average, adjusted as follows:

             (a) Amounts that are recognized upon the exercise of Company stock
         options or under restricted stock awards shall be excluded.

             (b) Amounts that are excluded from income under section 402(g) of
         the Code or section 125 of the Code shall be included.

             (c) If termination of employment occurs after a Change in Control,
         Compensation shall be increased each year by adding an adjustment on
         January 1st of each year following the date of termination equal to the
         rate on one-year Treasury Bills that is in effect on such dates,
         through the Commencement Date.

         2.7 "Disability" shall have the same meaning as under PhyCor's long
term disability plan.

         2.8 "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended.

         2.9 "Normal Retirement Date" means the earliest of (i) the date of a
Change in Control, (ii) the date of a Participant's death, or (iii) the date a
Participant attains age 65.

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         2.10 "Normal Retirement Benefit" means the benefit described in Section
5.2.

         2.11 "Participant" means an individual who is: (i) a member of a select
group of management or highly compensated employees of PhyCor, within the
meaning of sections 201(2), 301(a)(3), and 401(a)(1) of ERISA, (ii) designated
by the Committee to participate in this Plan, and (iii) identified on Exhibit A.
The identification of an individual on Exhibit A shall be deemed to be
irrebuttable evidence that PhyCor has deemed such individual for all purposes to
be a member of a select group of management and highly compensated employees.
The chief executive officer of the Company shall have the authority to
prospectively modify Exhibit A to add or remove individuals identified thereon.

         2.12 "Trust" means the grantor trust which is described in Section 4.2
and has been established to hold, administer, and invest the assets accrued and
reserved to pay benefits under the Plan and for the purposes otherwise stated in
the Trust instrument.

         2.13 "Years of Service" means the number of months in any described
period that a Participant, prior to a Change in Control, has been employed by
PhyCor plus the number of months between a Change in Control and the
Commencement Date, divided by 12.

                      III. ELIGIBILITY AND BENEFIT ACCRUALS

         3.1 Effective Date of Participation. An executive employee of PhyCor
shall become a Participant in this Plan as of the date designated by the
Committee or on the date evidenced in an exhibit to this Plan. All deferred
compensation amounts that are accrued under this Plan shall be deemed to have
been accrued as of the last day of the fiscal year of the Plan which includes
the last day of PhyCor's fiscal year for which the accrual is calculated.

         3.2 Calculation of Accounts. Effective January 1, 2000, each
Participant shall receive an allocation to his Account on each January 1st of
the amount indicated on Exhibit A to this Plan, through January 1st, 2004,
provided that the Participant continues to be employed by PhyCor or one of its
affiliates on the date of the allocation, or ceased to be employed due to a
Disability. In addition, on each December 31st, each Participant's Account shall
be credited with compounded interest at the rate of 8.5%. In the event that a
Participant dies before the Commencement Date that occurs after he attains age
65, an immediate allocation shall be made to his Account that is equal to the
amounts that would have been allocated if he had survived until such
Commencement Date.

                               IV. ADMINISTRATION

         4.1 Administration Committee. This Plan shall be administered by the
Committee. The Committee shall have full discretionary power and authority to
interpret, construe and administer this Plan and the Committee's interpretations
and constructions thereof, and actions thereunder, including the amount or
recipient of the payment to be made from this Plan, shall be binding and
conclusive on all persons for all purposes.

         4.2 Funding. All benefits payable hereunder shall be unfunded for
purposes of section 83 of the Code and Title I of ERISA.

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             (a) Except as described in this Section, PhyCor shall establish the
         Trust as a reserve for the benefits payable hereunder and for the
         purposes stated in the Trust instrument. PhyCor shall be the grantor of
         the Trust and the Trust shall be established for the benefit of the
         Participants herein and, in the case of the insolvency or bankruptcy of
         PhyCor, for the benefit of the general creditors of PhyCor. To the
         extent that the Participants' benefits are not paid from the Trust,
         such benefits shall be paid from the general assets of PhyCor. Except
         as provided in the Trust, the Participants shall have no funded,
         secured, or preferential right to payment hereunder, but rather shall
         at all times have the status of a general unsecured creditor.

             (b) The Committee, in its sole discretion, may at any time prior to
         the time that a Change in Control is being considered by the officers,
         shareholders or directors of PhyCor, cease funding the Trust.

         4.3 Claims Procedure. Prior to or upon becoming entitled to receive a
benefit hereunder, a Participant or his beneficiary ("Claimant") shall request
payment of such benefits at the time and in the manner prescribed by the
Committee. The Committee may direct payment of benefits without requiring the
filing of a claim therefor, if the Committee has knowledge of such Claimant's
whereabouts. The Committee shall provide adequate notice in writing as
prescribed pursuant to paragraph (b) below to any Claimant whose claim for
benefits under the Plan has been denied.

             (a) Such notice must be sent within 90 days of the date the claim
         is received by the Committee unless special circumstances require an
         extension of time for processing the claim. Such extension shall not
         exceed 90 days and no extension shall be allowed unless, within the
         initial 90 day period, the claimant is sent an extension notice
         indicating the special circumstances requiring the extension and
         specifying a date by which the Committee expects to render its
         decision.

             (b) The Committee's notice of denial to the Claimant shall set
         forth the following:

                 (1) the specific reason or reasons for the denial;

                 (2) specific references to pertinent Plan provisions on which
             the Committee based its denial;

                 (3) a description of any additional material and information
             needed for the Claimant to perfect his or her claim and an
             explanation of why the material or information is needed;

                 (4) a statement that the Claimant may request a review upon
             written application to the Committee, review pertinent Plan
             documents, and submit issues and comments in writing;

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                 (5) a statement that any appeal of the Committee's adverse
             determination must be made in writing to the Committee within 60
             days after receipt of the Committee's notice of denial of benefits,
             and that failure to appeal the action to the Committee in writing
             within the 60-day period will render the Committee's determination
             final, binding, and conclusive; and

                 (6) the address of the Committee to which the Claimant may
             forward his or her appeal.

             (c) If the Claimant should appeal to the Committee, the Claimant or
         a duly authorized representative, may submit, in writing, whatever
         issues and comments the Claimant deems pertinent. The Committee shall
         re-examine all facts related to the appeal and make a final
         determination as to whether the denial of benefits is justified under
         the circumstances. The Committee shall advise the Claimant in writing
         of its decision on the appeal, the specific reasons for the decision,
         and the specific Plan provisions on which the decision is based. The
         notice of the decision shall be given within 60 days of the Claimant's
         written request for review, unless special circumstances (such as a
         hearing) would make the rendering of a decision within the 60 day
         period infeasible, but in no event shall the Committee render a
         decision regarding the denial of a claim for benefits later than 120
         days after its receipt of a request for review. If an extension of time
         for review is required because of special circumstances, written notice
         of the extension shall be furnished to the claimant prior to the date
         the extension period commences.

         4.4 Designation of Beneficiaries. Each Participant shall designate in a
writing prescribed by the Committee a Beneficiary(ies) and contingent
Beneficiary(ies) to whom benefits due hereunder shall be paid. If any
Participant fails to designate a Beneficiary or if the designated Beneficiary
predeceases the Participant, benefits due hereunder at that Participant's death
shall be paid to his or her contingent Beneficiary or, if none, to the deceased
Participant's surviving spouse, if any, and if none, to the deceased
Participant's estate. Beneficiaries may be changed at any time by filing a new
Participation Agreement without the consent of any prior Beneficiaries.
Provided, however, that the Participant must designate his spouse as his
beneficiary or must obtain his spouse's written consent to the designation of
another beneficiary. Such spousal consent must be witnessed by the Committee or
a notary public. Any attempted designation of a beneficiary without the written
consent of the Participant's spouse shall be void. A Participant may change a
Beneficiary designation in writing in accordance with the above procedures at
any time prior to his death.

                                   V. BENEFITS

         5.1 Death Benefit. Upon death prior to Normal Retirement Date, a
Participant will be eligible for the Normal Retirement Benefit as a death
benefit. The death benefit will be paid to the Beneficiaries of a Participant.

         5.2 Normal Retirement Benefit. A Participant whose employment
terminates on or after the Normal Retirement Date shall begin receiving the
Normal Retirement Benefit on the Commencement Date. The Normal Retirement
Benefit shall be calculated as follows:

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             (a) Prior to the occurrence of a Change in Control, the Normal
         Retirement Benefit shall be the sum of amounts that have been credited
         to a Participant's Account.

             (b) After the occurrence of a Change in Control, the Normal
         Retirement Benefit shall be the greater of: (1) A payment that is
         equivalent to an annuity for life with a ten year term certain, with
         annual payments equal to the greater of (i) 55%, multiplied by the
         Participant's Compensation, and (ii) 2.5% multiplied by the
         Participant's Years of Service, multiplied by the Participant's
         Compensation. The amount of the payment shall be actuarially calculated
         to be equivalent to the annuity payment form by utilizing the interest
         rate and mortality assumptions that are specified in section 417(e) of
         the Code, but without regard to pre-retirement mortality calculations
         and, provided further, that the interest rate utilized shall be the
         lowest rate available during the period for which the calculations are
         being made. (2) The amounts that have been credited to a Participant's
         Account, plus all amounts that would be credited if the Participant
         continued to be employed by PhyCor or one of its affiliates until the
         Commencement Date following the date he attained age 65.

         5.3 Disability. A Participant whose employment terminates as a result
of a Disability shall continue to accrue benefits and receive allocations to his
Account that are specified herein and shall be eligible to retire at Normal
Retirement Age and shall receive the Normal Retirement Benefit.

         5.4 Other Termination of Employment. A Participant whose employment
terminates prior to the Normal Retirement Date and prior to a Change in Control
shall receive as a benefit the amounts that have been credited to his Account.

         5.5 Timing of Distributions. A Participant's benefits hereunder will be
paid as follows to the Participant or his Beneficiary.

             (a) Generally, a payment of a Participant's benefit will be made in
         a lump sum on the Commencement Date.

             (b) The Committee may, in its absolute discretion, give its consent
         to any alternate payment election made by the Participant, provided
         that such consent is given on account of a change in PhyCor's business
         and/or financial considerations that the Committee deems appropriate.
         The decision of the Committee to consent or deny consent to a
         Participant's election described in this Section shall for all purposes
         be deemed to have been made pursuant to valid business or financial
         considerations. Following Change in Control, the decision of the
         Committee must be approved by PhyCor (or its successor).

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         5.6 Additional Change in Control Payments.

             (a) Anything in this Agreement to the contrary notwithstanding, in
         the event it shall be determined that any payment or distribution by or
         on behalf of PhyCor to or for the benefit of the Participant as a
         result of a change in control, as defined in Section 280G of the Code,
         (whether paid or payable or distributed or distributable pursuant to
         the terms of this Agreement or otherwise, but determined without regard
         to any additional payments required under this Section 5.6 (a
         "Payment")) would be subject to the excise tax imposed by Section 4999
         of the Code, or any interest or penalties are incurred by the
         Participant with respect to such excise tax (such excise tax, together
         with any such interest and penalties, are hereinafter collectively
         referred to as the "Excise Tax"), then the Participant shall be
         entitled to receive an additional payment (a "Gross-Up Payment") in an
         amount such that after payment by the Participant of all taxes
         (including any interest or penalties imposed with respect to such
         taxes), including, without limitation, any income taxes (and any
         interest and penalties imposed with respect thereto) and Excise Tax
         imposed upon the Gross-Up Payment, the Participant retains an amount of
         the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

             (b) Subject to the provisions of Section 5.6(c), all determinations
         required to be made under this Section 5.6, including whether and when
         a Gross-Up Payment is required and the amount of such Gross-Up Payment
         and the assumptions to be utilized in arriving at such determination,
         shall be made by a nationally recognized accounting firm or law firm
         selected by the Participant, subject to the consent of PhyCor, which
         consent shall not be unreasonably withheld (the "Tax Firm"); provided,
         however, that the Tax Firm shall not determine that no Excise Tax is
         payable by the Participant unless it delivers to the Participant a
         written opinion (the "Tax Opinion") that failure to pay the Excise Tax
         and to report the Excise Tax and the payments potentially subject
         thereto on or with the Participant's applicable federal income tax
         return will not result in the imposition of an accuracy-related or
         other penalty on the Participant. All fees and expenses of the Tax Firm
         shall be borne solely by PhyCor. Within 15 business days of the receipt
         of notice from the Participant that there has been a Payment, or such
         earlier time as is requested by PhyCor, the Tax Firm shall make all
         determinations required under this Section 5.6, shall provide to PhyCor
         and the Participant a written report setting forth such determinations,
         together with detailed supporting calculations, and, if the Tax Firm
         determines that no Excise Tax is payable, shall deliver the Tax Opinion
         to the Participant. Any Gross-Up Payment, as determined pursuant to
         this Section 5.6, shall be paid by PhyCor to the Participant within
         fifteen days of the receipt of the Tax Firm's determination. Subject to
         the remainder of this Section 5.6, any determination by the Tax Firm
         shall be binding upon PhyCor and the Participant; provided, however,
         that the Participant shall only be bound to the extent that the
         determinations of the Tax Firm hereunder, including the determinations
         made in the Tax Opinion, are reasonable and reasonably supported by
         applicable law. As a result of the uncertainty in the application of
         Section 4999 of the Code at the time of the initial determination by
         the Tax Firm hereunder, it is possible that Gross-Up Payments which
         will not have been made by PhyCor should have been made
         ("Underpayment"), consistent with the calculations

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         required to be made hereunder. In the event that it is ultimately
         determined in accordance with the procedures set forth in Section
         5.6(c) that the Participant is required to make a payment of any Excise
         Tax, the Tax Firm shall reasonably determine the amount of the
         Underpayment that has occurred and any such Underpayment shall be
         promptly paid by PhyCor to or for the benefit of the Participant. In
         determining the reasonableness of Tax Firm's determinations hereunder,
         and the effect thereof, the Participant shall be provided a reasonable
         opportunity to review such determinations with Tax Firm and the
         Participant's tax counsel. Tax Firm's determinations hereunder, and the
         Tax Opinion, shall not be deemed reasonable until the Participant's
         reasonable objections and comments thereto have been satisfactorily
         accommodated by Tax Firm.

             (c) The Participant shall notify PhyCor in writing of any claims by
         the Internal Revenue Service that, if successful, would require the
         payment by PhyCor of the Gross-Up Payment. Such notification shall be
         given as soon as practicable but no later than 30 calendar days after
         the Participant actually receives notice in writing of such claim and
         shall apprise PhyCor of the nature of such claim and the date on which
         such claim is requested to be paid; provided, however, that the failure
         of the Participant to notify PhyCor of such claim (or to provide any
         required information with respect thereto) shall not affect any rights
         granted to the Participant under this Section 5.6 except to the extent
         that PhyCor is materially prejudiced in the defense of such claim as a
         direct result of such failure. The Participant shall not pay such claim
         prior to the expiration of the 30-day period following the date on
         which he gives such notice to PhyCor (or such shorter period ending on
         the date that any payment of taxes with respect to such claim is due).
         If PhyCor notifies the Participant in writing prior to the expiration
         of such period that it desires to contest such claim, the Participant
         shall:

                 (1) give PhyCor any information reasonably requested by PhyCor
             relating to such claim;

                 (2) take such action in connection with contesting such claim
             as PhyCor shall reasonably request in writing from time to time,
             including, without limitation, accepting legal representation with
             respect to such claim by an attorney selected by PhyCor and
             reasonably acceptable to the Participant;

                 (3) cooperate with PhyCor in good faith in order effectively to
             contest such claim; and

                 (4) if PhyCor elects not to assume and control the defense of
             such claim, permit PhyCor to participate in any proceedings
             relating to such claim;

         provided, however, that PhyCor shall bear and pay directly all costs
         and expenses (including additional interest and penalties) incurred in
         connection with such contest and shall indemnify and hold the
         Participant harmless, on an after-tax basis, for any Excise Tax or
         income tax (including interest and penalties with respect thereto)
         imposed as a result of such representation and payment of costs and
         expenses. Without limiting the foregoing provisions of this Section
         5.6(c), PhyCor shall have the right, at its sole option,

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

             (d) If, after the receipt by the Participant of an amount advanced
         by PhyCor pursuant to Section 5.6 the Participant becomes entitled to
         receive any refund with respect to such claim, the Participant shall
         (subject to PhyCor's complying with the requirements of Section 5.6(c))
         promptly pay to PhyCor the amount of such refund (together with any
         interest paid or credited thereon after taxes applicable thereto). If,
         after the receipt by the Participant of an amount advanced by PhyCor
         pursuant to Section 5.6(c), a determination is made that the
         Participant is not entitled to a refund with respect to such claim and
         PhyCor does not notify the Participant in writing of its intent to
         contest such denial of refund prior to the expiration of 30 days after
         such determination, then such advance shall, to the extent of such
         denial, be forgiven and shall not be required to be repaid and the
         amount of forgiven advance shall offset, to the extent thereof, the
         amount of Gross-Up Payment required to be paid.

                           VI. FORFEITURE OF BENEFITS

         6.1 Noncompete Violation. A Participant who violates the
non-competition provision contained in his Employment Agreement shall forfeit
his right to any and all benefits under this Plan.

         6.2 For Cause Termination. A Participant who is terminated "for cause,"
as defined in his employment agreement with PhyCor, prior to January 1, 2004,
shall forfeit his right to any and all benefits under this Plan.

         6.3 Determinations After Change in Control or Termination Without
Cause by the Company. All determinations under the Plan, including a
determination under this Article VI., shall be made by

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the Committee as it is configured following a Change in Control or the
termination by the Company of a Participant without cause.

         6.4 Termination Without Cause By Participant Unrelated to a Change in
Control. A voluntary termination of employment by a Participant, (other than a
resignation under duress or due to a Disability) on a before January 1, 2004
will cause a forfeiture of all benefits allocated to such Participant's Account
pursuant to Section 3.2.

                               VII. MISCELLANEOUS

         7.1 Non-assignment of Interest. No right or interest to or in any
payment or benefit to a Participant shall be assignable by such Participant
except by will or the laws of descent and distribution. No right, benefit or
interest of a Participant hereunder shall be subject to anticipation,
alienation, sale, assignment, encumbrance, charge, pledge, hypothecation or
set-off in respect of any claim, debt or obligation, or to execution,
attachment, levy or similar process, or assignment by operation of law. Any
attempt, voluntarily or involuntarily, to effect any action specified in the
immediately preceding sentence shall, to the full extent permitted by law, be
null, void and of no effect; provided, however, that this provision shall not
preclude a Participant from designating one or more Beneficiaries to receive any
amount that may be payable to such Participant under the Plan after his death
and shall not preclude the legal representatives of the Participant's estate
from assigning any right hereunder to the person or persons entitled thereto
under his will, or, in the case of intestacy, to the person or persons entitled
thereto under the laws of intestacy applicable to his estate.

         7.2 Successors. This Plan shall be binding upon and inure to the
benefit of PhyCor, its successors and assigns and the Participants and their
heirs, executors, administrators, and duly appointed legal representatives.

         7.3 Amendment and Termination. PhyCor may at any time modify or
terminate this Plan by an amendment pursuant to an action that is approved or
ratified by PhyCor's board of directors. Modifications to Exhibit A to the Plan
may be executed by the chief executive officer of the Company. Provided,
however, that amendments that would reduce benefits or rights of an individual
who is a Participant at the time of the amendment shall not be binding with
respect to such Participant without the Participant's prior written consent.

         7.4 Taxes. All payments made hereunder shall be subject to all taxes
required to be withheld under applicable laws and regulations of any
governmental authorities in effect at the time of such payments.

         7.5 Controlling Law. Except to the extent superseded by federal law,
the internal laws of the State of Tennessee shall be controlling in all
materials relating to the Plan, including construction and performance hereof.

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         IN WITNESS WHEREOF, PhyCor, Inc. has caused this instrument to be
executed by its duly authorized officer effective as of the date first written
above.

                                  PHYCOR, INC.

                                  By: /s/ Joseph C. Hutts
                                      ------------------------------------------

                                  Its: Chairman and Chief Executive Officer
                                       -----------------------------------------

                                       11<PAGE>   1
                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

                  This Agreement is made this 1st day of February, 2000 between
PhyCor, Inc., a Tennessee corporation (the "Company"), and Tarpley B. Jones
("Employee").

                              W I T N E S S E T H:

                  WHEREAS, the Company desires to employ Employee and Employee
desires to accept such employment by the Company subject to the terms and
conditions contained herein;

                  WHEREAS, in serving as an employee of the Company, Employee
will be in a position in which Employee will participate in the use and
development of confidential proprietary information about the Company's, its
subsidiaries' and affiliates' present and future products, its customers and
suppliers and the methods which the Company and its employees use in competition
with other companies, as to which the Company desires to protect fully its
rights;

                  NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, and in consideration of
the promises and the mutual covenants and agreements herein set forth, the
parties agree as follows:

                  1. Employment. The Company hereby employs Employee as
Executive Vice President, Chief Financial Officer, and Employee accepts such
employment with the Company, subject to the terms and conditions set forth
herein. Employee shall perform all duties and services incident to the position
of Chief Financial Officer and Employee shall perform such other duties and
services as may be prescribed by the Bylaws of the Company or established by the
Chief Executive Officer or the Board of Directors of the Company from time to
time. During his employment hereunder, Employee shall devote his best efforts
and attention, on a full-time basis, to the performance of the duties required
of him as an employee of the Company.

                  2. Compensation. As compensation for services rendered by
Employee hereunder, Employee shall receive:

                           (a) An annual salary of $375,000, or such higher
                  salary as shall be determined by the Company at Employee's
                  annual evaluation and compensation review;

                           (b) Insurance and other benefits equivalent to the
                  benefits provided generally to an Executive Vice President
                  (which are the same for all levels of corporate Vice
                  Presidents);

                           (c) Six (6) weeks of vacation;

                           (d) Participation in the Company's employee bonus
                  program (with a target of 40% of base salary) as such program
                  may be amended or modified by the Company from time to time;

                           (e) Participation, when eligible, in the Company's
                  retirement plan as such plan may be amended or modified by the
                  Company from time to time; and

                           (f) Reimbursement for all reasonable expenses
                  incurred by Employee in the performance of his duties under
                  this Agreement, provided that Employee submits verification of
                  such expenses in accordance with the policies of the Company.

<PAGE>   2

                  A recommendation will be made to the Compensation Committee of
the Board of Directors to award you options to purchase 250,000 shares of
PhyCor, Inc. Common Stock at a price equal to the market price of the stock on
the first day of your employment.

                  Prior to the end of each calendar year of this Agreement, the
Company may review with Employee his compensation hereunder. Any increase in
salary or changes in fringe benefits agreed upon by Employee and the Company at
such annual review shall become effective the following January 1 unless
otherwise agreed to by the Company and Employee.

                  3.  Confidential Information and Trade Secrets.

                  3.1 Employee recognizes that Employee's position with the
Company requires considerable responsibility and trust, and, in reliance on
Employee's loyalty, the Company may entrust Employee with highly sensitive
confidential, restricted and proprietary information involving Trade Secrets and
Confidential Information.

                  3.2 For purposes of this Agreement, a "Trade Secret" is any
scientific or technical information, design, process, procedure, formula or
improvement that is valuable and not generally known to competitors of the
Company, its subsidiaries and affiliates. "Confidential Information" is any data
or information, other than Trade Secrets, that is important, competitively
sensitive, and not generally known by the public, including, but not limited to,
the Company's business plan, business prospects, training manuals, product
development plans, bidding and pricing procedures, market strategies, internal
performance statistics, financial data, confidential personnel information
concerning employees of the Company, supplier data, operational or
administrative plans, policy manuals, and terms and conditions of contracts and
agreements and such similar information relating to subsidiaries and affiliates
of the Company. The terms "Trade Secret" and "Confidential Information" shall
not apply to information which is (i) already in Employee's possession (unless
such information was obtained by Employee from the Company or was obtained by
Employee in the course of Employee's employment by the Company), (ii) received
by Employee from a third party with no restriction on disclosure, or (iii)
required to be disclosed by any applicable law.

                  3.3 Except as required to perform Employee's duties as an
employee, Employee will not use or disclose any Trade Secrets or Confidential
Information of the Company during employment, at any time after termination of
employment and prior to such time as they cease to be Trade Secrets or
Confidential Information through no act of Employee in violation of this Section
3.

                  3.4 Upon the request of the Company and, in any event, upon
the termination of employment hereunder, Employee will surrender to the Company
all memoranda, notes, records, drawings, manuals or other documents pertaining
to the Company's business, Employee's employment (including all copies thereof)
or the business of the Company's subsidiaries or affiliates. Employee will also
leave with the Company all materials involving any Trade Secrets or Confidential
Information of the Company. All such information and materials, whether or not
made or developed by Employee, shall be the sole and exclusive property of the
Company, and Employee hereby assigns to the Company all of Employee's right,
title and interest in and to any and all of such information and materials.

                  4.  Covenant Not to Compete.

                  4.1 Employee hereby covenants and agrees with the Company that
during the term of his employment with the Company and for a period of eighteen
(18) months after the termination of his employment, for any reason, with or
without cause, Employee will not directly or indirectly (i) operate, develop or
own any interest other than the ownership of less than 5% of the equity
securities of a publicly traded company, in any business which has significant
activities (viewed in relation to the business of the Company, its subsidiaries
or affiliates), or has announced intentions to focus significant resources,

<PAGE>   3

relating to the ownership, management or operation of multi-specialty medical
clinics, physician group practices, independent practice associations, or other
similar entities (a "Business"); (ii) compete with the Company or its
subsidiaries and affiliates in the operation or development of any Business
within the United States of America; (iii) be employed by any business which
owns, manages, or operates a Business; (iv) interfere with, solicit, disrupt or
attempt to disrupt any past, present or prospective relationship, contractual or
otherwise, between the Company, or its subsidiaries or affiliates, and any
customer, client, supplier or employee of the Company, or its subsidiaries or
affiliates; or (v) solicit any employee of the Company, or its subsidiaries or
affiliates, to leave their employment with the Company or its subsidiaries or
affiliates, as the case may be, or hire any such employee to work for a
Business. The definition of Business set forth above is intended to include
entities that own, manage and operate multiple clinics, practices, IPAs,
physician organizations, etc., and does not restrict the Employee from
employment (i) with a single clinic, group, IPA, etc., provided such employment
is not primarily focused upon the acquisition and management of multiple
physician organizations similar to the operations of the Company or (ii) with an
enterprise that owns, manages or operates multiple entities as a single business
enterprise in a single market. Employee shall not be entitled to circumvent the
provisions of this Section 4.1 by entering into a relationship with a Business
as a consultant, director, advisor, or otherwise, which has the effect of
competing with the Company, its affiliates or subsidiaries.

                  4.2 If a judicial determination is made that any of the
provisions of this Section 4 constitutes an unreasonable or otherwise
unenforceable restriction against Employee, the provisions of this Section 4
shall be rendered void only to the extent that such judicial determination finds
such provisions to be unreasonable or otherwise unenforceable. In this regard,
the parties hereto hereby agree that any judicial authority construing this
Agreement shall be empowered to sever any portion of the territory or prohibited
business activity from the coverage of this Section 4 and to apply the
provisions of this Section 4 to the remaining portion of the territory or the
remaining business activities not so severed by such judicial authority.
Moreover, notwithstanding the fact that any provisions of this Section 4 are
determined not to be specifically enforceable, the Company shall nevertheless be
entitled to recover monetary damages as a result of the breach of such provision
by Employee. The time period during which the prohibitions set forth in this
Section 4 shall apply shall be tolled and suspended as to Employee for a period
equal to the aggregate quantity of time during which Employee violates such
prohibitions in any respect.

                  4.3 The Company recognizes that Employee is a major
shareholder of Cardiology Partners of America, Inc. ("CPA"). CPA was engaged in
business that were comparative with the operations of the Company. Employee is
currently winding down the operations of CPA which no longer has any ongoing
activities. Company agrees that Employee's relationship with CPA as described
herein will be exempt from the covenant not to compete contained herein.

                  5. Specific Enforcement. Employee specifically acknowledges
and agrees that the restrictions set forth in Sections 3 and 4 hereof are
reasonable and necessary to protect the legitimate interest of the Company and
that the Company would not have employed Employee in the absence of such
restrictions. Employee further acknowledges and agrees that any violation of the
provisions of Sections 3 or 4 hereof will result in irreparable injury to the
Company, that the remedy at law for any violation or threatened violation of
such Sections will be inadequate and that in the event of any such breach, the
Company, in addition to any other remedies or damages available to it at law or
in equity, shall be entitled to temporary injunctive relief before trial from
any court of competent jurisdiction as a matter of course and to permanent
injunctive relief without the necessity of proving actual damages. The existence
of any claim or cause of action on the part of Employee against the Company,
whether arising from this Agreement or otherwise, shall not constitute a defense
to the granting or enforcement of this injunctive relief. If the Company is
required to enforce any of its rights under this Agreement, the Company shall be
entitled to recover from Employee all attorneys' fees, court costs and other
expenses incurred by the Company in connection with the enforcement of those
rights.

                  6. Term of Agreement. This Agreement shall be effective as of
February 1, 2000

<PAGE>   4

and shall continue for a term of three (3) years unless terminated by either
party in the manner set forth herein. This Agreement shall be automatically
renewed for successive one (1) year terms unless notice of termination is given
by either party at least 180 days prior to the end of the then current term.

                  7. Termination Upon Death or Disability of the Employee. In
the event the Employee dies during the term of this Agreement, or the Employee
is disabled and unable to perform his duties in any material respect for a
period of three (3) months, this Agreement shall immediately terminate and
neither the Employee nor the Company shall have any further obligations
hereunder, except that the Company shall continue to be obligated under Section
2 hereof for any unpaid salary, accrued benefits or unreimbursed expenses owed
to Employee or his estate that have accrued but not been paid as of the
Termination Date.

                  8. Termination by Employee. Employee may at any time terminate
his employment by giving the Company sixty (60) days prior written notice of his
intent to terminate the Agreement. At the Termination Date, the Company shall
have no further obligation to Employee and Employee shall have no further rights
or obligations hereunder, except as set forth in Sections 3 and 4 above, and
except for the Company's obligation under Section 2 hereof for unpaid salary,
accrued benefits or unreimbursed expenses that have accrued but have not been
paid as of the Termination Date.

                  9. Termination for Cause. The Company shall have the right at
any time to terminate Employee's employment immediately for cause, which shall
include any of the following reasons:

                     (a) If Employee shall violate the provisions of Sections 3
                  or 4 of this Agreement, or shall fail to comply with any other
                  material term or condition of this Agreement, or shall fail to
                  perform competently and efficiently the tasks assigned to him
                  by his supervisor, or shall engage in any material misconduct,
                  neglect of duties or failure to act which materially and
                  adversely affects the business or affairs of the Company; or

                     (b) If Employee shall (i) be convicted of a felony or (ii)
                  commit an act of dishonesty, fraud or embezzlement against the
                  Company or its affiliates.

Employee's obligations under Sections 3 and 4 hereof shall survive the
termination of the Agreement pursuant to this Section 9. In the event Employee's
employment hereunder is terminated in accordance with this Section, the Company
shall have no further obligation to make any payments to Employee hereunder
except for unpaid salary, accrued benefits or unreimbursed expenses that have
accrued but have not been paid as of the Termination Date.

                  10. Termination Without Cause. The Company may terminate
Employee without cause (which shall not include a termination pursuant to
Sections 7, 8 or 9) by giving Employee 15 days prior written notice. In the
event Employee is terminated without cause during the term hereof, the Company
shall pay Employee all accrued benefits and unreimbursed expenses owed to
Employee that have accrued but have not been paid as of the Termination Date.
The Company shall continue to pay to Employee his salary set forth in Section
2(a) hereof for a period of eighteen (18) months after the Termination Date and
shall continue to provide the health insurance benefits hereof for a period of
eighteen (18) months. Such payments shall be made in accordance with Employee's
regular salary schedule. Payment of the severance benefits set forth herein
shall be subject to the execution and delivery of a Separation Agreement
containing appropriate releases of the Company as agreed to by the parties. The
Company's obligations pursuant to this Section 10 shall terminate immediately
(I) UPON ACCEPTANCE OF EMPLOYMENT IN VIOLATION OF SECTION 4, OR (II) UPON NOTICE
BY EMPLOYEE TO EMPLOYER, WHETHER OR NOT IN WRITING, THAT EMPLOYEE DOES NOT
INTEND TO HONOR THE PROVISIONS OF SECTION 4, OR THE TAKING OF ANY OTHER ACTION
BY EMPLOYEE THAT WOULD HAVE THE EFFECT OF DECLARING THE PROVISIONS OF SECTION 4
NOT ENFORCEABLE.

<PAGE>   5

                  11. Assignment.

                     (a) The rights and benefits of Employee under this
                  Agreement, other than accrued and unpaid amounts due under
                  Section 2 hereof, are personal to him and shall not be
                  assignable. Discharge of Employee's undertakings in Sections 3
                  and 4 hereof shall be an obligation of Employee's executors,
                  administrators, or other legal representatives or heirs.

                     (b) This Agreement may not be assigned by the Company
                  except to an affiliate of the Company, provided, however, that
                  if the Company shall merge or effect a share exchange with or
                  into, or sell or otherwise transfer substantially all its
                  assets to, another corporation, the Company shall assign its
                  rights hereunder to that corporation and cause such
                  corporation to assume the Company's obligations under this
                  Agreement.

                  12. Notices. Any notice or other communications under this
Agreement shall be in writing, signed by the party making the same, and shall be
delivered personally or sent by certified or registered mail, postage prepaid,
addressed as follows:

                  If to Employee:      Tarpley B. Jones
                                       11 Thorndale Court
                                       Nashville, Tennessee 37215

                  If to the Company:   PhyCor, Inc.
                                       Suite 400
                                       30 Burton Hills Boulevard
                                       Nashville, Tennessee  37215
                                       Attention:  President

or to such other address as may hereafter be designated by either party hereto.
All such notices shall be deemed given on the date personally delivered or
mailed.

                  13. Governing Law. This Agreement shall be interpreted and
enforced in accordance with the laws of the State of Tennessee.

                  14. Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid, but
if any one or more of the provisions contained in this Agreement shall be
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability for any such provisions in every other respect and
of the remaining provisions of this Agreement shall not be in any way impaired.

                  15. Entire Agreement. This Agreement contains the entire
agreement of the parties hereto with respect to the subject matter contained
herein. There are no restrictions, promises, covenants, or undertakings, other
than those expressly set forth herein. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject
matter. This Agreement may not be changed except by a writing executed by the
parties.

<PAGE>   6

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

                                    PHYCOR, INC.

Attest:                             By: /s/ Joseph C. Hutts
                                       -----------------------------------------

/s/ N. Carolyn Forehand             Title: Chairman and Chief Executive Officer
--------------------------                 -------------------------------------
Title:  Secretary

Witness:                            EMPLOYEE

/s/ Becky Summar                    /s/ Tarpley B. Jones
--------------------------          --------------------------------------------
                                    Tarpley B. Jones

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