SEC Contract Filing

Filing Date: 2015-07-27

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<TYPE>EX-10.2
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<DESCRIPTION>EX-10.2
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.2</font></b></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SEPARATION AGREEMENT</font></u></b></p>
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<p style="margin:0in 0in .0001pt 1.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following sets forth the Separation Agreement (&#147;Separation Agreement&#148;) between Magellan Health,&nbsp;Inc. (formerly Magellan Health Services,&nbsp;Inc.) (&#147;Magellan&#148; or &#147;Employer&#148;) and Tina Blasi (&#147;Employee&#148;).</font></p>
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<p style="margin:0in 0in .0001pt 1.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In consideration of the following obligations contained herein, the parties agree as follows:</font></p>
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<p style="font-size:10.0pt;margin:0in 0in .0001pt 32.9pt;text-indent:-32.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Separation Pay.</u> Employee&#146;s employment will terminate without cause on June&nbsp;30, 2015 (&#147;Termination Date&#148;) in accordance with Section&nbsp;6(c)&nbsp;of the Employment Agreement between Magellan and Employee executed on February&nbsp;25, 2008 and further amended effective February&nbsp;25, 2008, December&nbsp;1, 2008, and April&nbsp;3, 2013 (the &#147;Employment Agreement&#148;). Magellan will pay Employee separation pay in an amount equal to $475,000, less all lawful deductions. The separation pay will be paid out in equal installments on a semi-monthly basis beginning on the next regular payday following the later of the Effective Date (explained in Paragraph 20 below) or the Termination Date and according to Magellan&#146;s normal payroll policy and practices for the period July&nbsp;1, 2015 through June&nbsp;30, 2016 (the &#147;Severance Period&#148;). Employer and Employee hereby reaffirm the agreements and understandings contained in Section&nbsp;21 of the Employment Agreement entitled &#147;No Mitigation&#148;.</p>
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<p style="font-size:10.0pt;margin:0in 0in .0001pt 32.9pt;text-indent:-32.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Bonus.</u> In accordance with Section&nbsp;6(c)&nbsp;of the Employment Agreement, Employee shall be eligible to receive, on a pro-rata basis, a bonus for the 2015 performance year in the amount that Employee would have earned under the terms of Magellan&#146;s 2015 Incentive Compensation Plan (&#147;ICP&#148;) determined in accordance with and subject to the conditions of, Section&nbsp;6(c)&nbsp;of the Employment Agreement. The pro-rata bonus, if one is paid by Employer, will be paid if and when all other eligible employees are paid a bonus under the ICP, but not later than March&nbsp;15, 2016. As provided in the Employment Agreement and the 2015 ICP, the payment of a 2015 pro-rata bonus and the amount of any such bonus shall be in the sole discretion of Employer.</p>
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<p style="font-size:10.0pt;margin:0in 0in .0001pt 32.9pt;text-indent:-32.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Employment Benefits.</u> Through Employee&#146;s Termination Date, Employee will receive all employment benefits for which Employee is eligible pursuant to and in accordance with Employer&#146;s company policies and as required by law. Following Employee&#146;s Termination Date, Employee will receive a payment for all accrued but unused Paid Time Off pursuant to and in accordance with Employer&#146;s company policies, the Employment Agreement, and as required by law.</p>
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<p style="font-size:10.0pt;margin:0in 0in .0001pt 32.9pt;text-indent:-32.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>EAP Services.</u> Employee may continue