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                                                                   EXHIBIT 10(O)

                             EMPLOYMENT AGREEMENT


     EMPLOYMENT AGREEMENT made as of December 1, 1997, by and between HUMANA
INC. (hereinafter "Company"), a Delaware corporation having its principal place
of business in Louisville, Kentucky, and Gregory H. Wolf (hereinafter
"Employee"):

                                  WITNESSETH:

     WHEREAS, Employee desires to render faithful and efficient service to the
Company; and

     WHEREAS, the Company desires to receive the benefit of Employee's service;
and

     WHEREAS, Employee is willing to be employed by the Company; and

     WHEREAS, both Company and Employee desire to formalize the conditions of
Employee's employment by written agreement;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter set forth, the parties agree as follows:

     1. Office.  The Company hereby employs Employee as President and Chief
        ------
        Executive Officer, and Employee hereby agrees to serve the Company in
        such capacity.

     2. Term of Employment.  Employee's employment shall be for the "Employment
        ------------------
        Period," with the initial term commencing on December 1, 1997 and
        extending through December 31, 2000. The initial term shall be
        automatically renewed and extended upon the expiration thereof for
        successive periods of one (1) year until such time as the Employment
        Period shall terminate pursuant to the terms of this Agreement, or until
        the Company on the one hand, or Employee on the other hand, shall
        terminate the Employment Period by giving written notice to the other
        party on or before sixty (60) days prior to the expiration date of the
        initial or any renewal term. The renewal and extension of this Agreement
        shall also be referred to as the "Employment Period." The effective date
        of Employee's termination of employment for whatever reason under this
        Agreement shall be the "Termination Date."

     3. Responsibilities.  During the Employment Period, Employee shall devote
        ----------------
        his entire business time and attention, except during reasonable
        vacation periods, to, and exert his best efforts to promote, the affairs
        of the Company, and shall render such services to the Company as may be
        required by the Board of Directors of the Company ("Board") consistent
        with his employment as Chief
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        Executive Officer. Nothing herein contained
        shall pre clude service by Employee on a reasonable number of boards of
        directors or trustees of other entities not engaged in any business
        competitive with the business of the Company, provided that Employee
        shall discuss any such board service in advance with the Company's
        Board.

     4. Incapacity.  If during the Employment Period Employee should be
        ----------
        prevented from performing his duties or fulfilling his responsibilities
        by reason of any incapacity or disability for a continuous period of six
        (6) months, then the Company's Board, in its sole and absolute
        discretion, may, based on the opinion of a qualified physician, consider
        such incapacity or disability to be total and may on ninety (90) days
        written notice to Employee terminate the Employment Period. Benefits and
        payments shall be made under this Employment Agreement following
        incapacity as if it were a termination without Good Cause in accordance
        with Section 8(a).

     5. Death.  The Employment Period shall automatically terminate upon the
        -----
        death of Employee, and payments will be made to the Employee's estate as
        if it were a termination without Good Cause in accordance with Section
        8(a).

     6. Compensation.  During the Employment Period, Employee shall (i) receive
        ------------
        a base salary (hereinafter "Annual Base Salary") that shall be an annual
        amount of not less than Eight Hundred Thousand Dollars ($800,000)
        payable in accordance with the payroll practices of the Company, and
        shall (ii) participate in an incentive plan providing for a target
        incentive compensation amount of not less than one hundred percent
        (100%) of his Annual Base Salary.

     7. Benefit Plans and Programs.  During the Employment Period, Employee
        --------------------------
        shall be eligible for participation in all benefit plans and programs,
        including those for executive employees, made available by the Company
        to its respective employees.

     8. Severance Payments.
        ------------------

          (a) In the event that (i) Employee's employment is terminated by the
              Company while this Agreement is in effect without Good Cause, (ii)
              the Employment Period is terminated by reason of incapacity or
              disability in accordance with Section 4, or (iii) the Employment
              Period is terminated by reason of death in accordance with Section
              5:

              (1) The Company shall pay to Employee or his estate, no later
                  than thirty (30) calendar days after such Termination Date, an
                  amount

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                  equal to any unpaid current Annual Base Salary accrued through
                  the Termination Date, his bonus, calculated at one hundred
                  percent (100%) of his Annual Base Salary prorated for the
                  current fiscal year through the Termination Date, plus one (1)
                  times the sum of his then current Annual Base Salary and
                  bonus, calculated at one hundred percent (100%) of his Annual
                  Base Salary. The Company shall continue to keep in full force
                  and effect all plans or policies of medical, accident and life
                  insurance benefits with respect to Employee and his dependents
                  with the same level of coverage available to employees under
                  the terms of those employee benefit plans for a period of
                  twelve (12) months, upon the same terms, costs and otherwise
                  to the same extent as such plans are in effect for employees
                  of the Company who were similarly situated to Employee as of
                  the Termination Date.

              (2) All restricted shares previously awarded to Employee but not
                  yet vested shall become vested and non-forfeitable as of the
                  Termination Date.

              (3) To the extent stock options granted to Employee have not
                  become fully vested and exercisable as of the Termination
                  Date, such options shall become fully vested and all vested
                  stock options shall be exercisable for two (2) years
                  commencing on the Termination Date.

          (b) In the event that Employee's employment is terminated by the
              Company with Good Cause or if Employee voluntarily terminates his
              employment:

              (1) The Company shall pay to Employee, no later than thirty (30)
                  calendar days after the Termination Date, an amount equal to
                  his then current Annual Base Salary accrued but unpaid through
                  the Termination Date; and Employee shall have a period of
                  ninety (90) days after such Termination Date in which to
                  exercise any exercisable vested stock options, subject to the
                  provisions of any applicable stock option agreement.

              (2) Any restricted shares or stock options previously granted but
                  still subject to restriction or unvested at the Termination
                  Date shall be forfeited.

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          (c) Good Cause shall mean the Company's Board has determined in good
              faith, without being bound by the Company's progressive discipline
              policy for employees,

              (1) that Employee has engaged in acts or omissions against the
                  Company or any of its subsidiaries constituting dishonesty,
                  intentional breach of fiduciary obligation or intentional
                  wrongdoing or misfeasance; or,

              (2) that Employee has been arrested or indicted in a possible
                  criminal violation involving fraud or dishonesty; or,

              (3) that Employee has intentionally and in bad faith acted in a
                  manner which results in a material detriment to the assets,
                  business or prospects of the Company or any of its
                  subsidiaries; or

              (4) that after due consideration and with notice to the Employee,
                  Employee has performed poorly.

          (d) In the event that Employee's employment is terminated (i) by the
              Company for Good Cause as defined in Section 8(c)(4) above, (ii)
              because either the Company or Employee terminates the Employment
              Period pursuant to Section 2 of this Employment Agreement, or
              (iii) because Employee voluntarily leaves the employ of the
              Company during the Employment Period, then the Company shall pay
              to Employee, no later than thirty (30) calendar days after such
              Termination Date, an amount equal to any unpaid current Annual
              Base Salary accrued through the Termination Date, plus one (1)
              times his then current Annual Base Salary. Any bonus finally
              determined to be payable, at the end of the fiscal year in which
              the Termination Date is included, shall be prorated for the period
              up to and including the Termination Date and shall be promptly
              paid to Employee at the same time any other similar bonuses are
              paid to any other employee of the Company for such fiscal year.
              The Company shall continue to keep in full force and effect all
              plans or policies of medical, accident and life insurance benefits
              with respect to Employee and his dependents with the same level of
              coverage available to employees under the terms of those employee
              benefit plans for a period of twelve (12) months, upon the same
              terms, costs and otherwise to the same extent as such plans are in
              effect for employees of the Company who were similarly situated to
              Employee as of the Termination Date.

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          (e) Following the Employment Period, Employee shall be eligible for
              continuation of health and dental insurance coverage pursuant to
              the Consolidated Omnibus Budget Reconciliation Act (COBRA) for
              eighteen (18) months. For the first twelve (12) months, Employee's
              cost will be an amount equal to the normal employee contribution.
              Thereafter, the cost will be an amount equal to the COBRA cost of
              such coverage. During the first eighteen (18) months, Employee may
              elect any of the coverages available to Humana employees.
              Thereafter, Humana agrees that Employee may elect coverage under
              any of the insured products offered by Humana's health insurance
              or HMO subsidiaries for Employee, his spouse as of the date hereof
              ("Spouse"), and any eligible dependent until the later of
              Employee's age sixty-five (65) or eligibility for Medicare
              coverage (hereinafter "Extended Coverage"). At the earlier of
              Employee attaining Medicare eligibility or death, Employee's
              Spouse and any now current eligible dependent of Employee and
              Spouse will be eligible for Extended Coverage until the later of
              Spouse's age sixty-five (65) or Medicare coverage eligibility. If
              at any time during which the Extended Coverage is in effect
              Employee or his Spouse obtains Medicare or becomes eligible for
              other employee group health insurance coverage which does not
              exclude a pre-existing condition of Employee, Spouse or dependent,
              Humana's obligation will cease as to the one who has obtained
              Medicare or in the case of other employee group health coverage,
              as to that person and their eligible dependents. Employee's
              premium for the Extended Coverage and Spouse's premium, if she
              retains Extended Coverage, will be an amount equal to the COBRA
              cost of such coverage. If Humana hereafter adopts a retiree health
              insurance program and Humana still has obligations under this
              provision, Employee will be offered the option of participating in
              that program in lieu of the Extended Coverage described herein.
              The health and dental insurance benefits hereunder shall be
              administered in conjunction with any other similar benefits which
              the Employee has from the Company but in no case shall be
              duplicative.

     9. Termination After A Change in Control.  In the event of a "Change in
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        Control" of the Company (as defined as of the date hereof in the
        Company's 1996 Stock Incentive Plan for Employees), if, within
        twenty-four (24) months following the closing of such Change in Control
        (or at any time prior thereto but in contemplation thereof):

        (i)    There is a material reduction in the Employee's title,
               authority or responsibilities, including reporting
               responsibilities;

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        (ii)   The Employee's Annual Base Salary is reduced;

        (iii)  The Employee's office at which he is to perform his duties is
               relocated to a location more than thirty (30) miles from the
               location at which the Employee performed his duties prior to
               the Change in Control;

        (iv)   The Company fails to continue in effect any incentive, bonus or
               other compensation plan in which the Employee participates,
               unless the Company substitutes a substantially equivalent
               benefit;

        (v)    The Company fails to continue in effect any Employee benefit plan
               (including any medical, hospitalization, life insurance, dental
               or disability benefit plan in which the Employee participated) or
               any material fringe benefit or perquisite enjoyed by the Employee
               at the time of the Change in Control, unless the Company
               substitutes benefits which, in the aggregate, are substantially
               equivalent;

        (vi)   The Company breaches any material provision of this Employment
               Agreement; or

        (vii)  The Company fails to obtain a satisfactory agreement from any
               successor or assign of the Company to assume and agree to perform
               this Employment Agreement,

          Then the Employee shall have the option to voluntarily terminate his
          employment and the Company shall:

        (a)    Pay the Employee his full base salary earned but not yet paid
               through the Termination Date at the greater of the rate in effect
               at the time of the Change in Control or the Termination Date
               ("Higher Annual Base Salary"), plus any bonuses or incentive
               compensation which, pursuant to the terms of any compensation or
               benefit plan, have been earned and are payable as of the
               Termination Date.  For purposes of this Agreement, bonuses and
               incentive compensation shall be considered payable if all
               conditions for earning them have been met and any requirement
               that Employee be actively employed as of the date of payment
               shall be disregarded.

        (b)    Pay the Employee a lump sum in an amount equal to two and one-
               half (2 1/2) times the amount equal to the sum of (1) the
               Employee's Higher Annual Base Salary plus (2) the maximum target
               bonus or incentive compensation which could have been earned by
               the Employee calculated

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               as if all relevant goals had been met during the then current
               fiscal year of the Company pursuant to the terms of the incentive
               compensation plan in which he participates. If there is no
               incentive compensation plan in effect as of Termination Date,
               then for purposes of this Agreement it shall be assumed that the
               amount of incentive compensation to be paid to the Employee shall
               be the maximum target amount under any incentive compensation
               plan in which he participated at the date of the Change in
               Control or the most recent plan participated in, whichever would
               be greater.

        (c)    Maintain in full force and effect for the benefit of the Employee
               and the Employee's dependents and beneficiaries, at the Company's
               expense, all life insurance, health insurance, dental insurance,
               accidental death and dismemberment insurance and disability
               insurance under plans and programs in which the Employee and/or
               the Employee's dependents and beneficiaries participated
               immediately prior to the Termination Date, provided that
               continued participation is possible under the general terms and
               provisions of such plans and programs ("Extended Benefits").  The
               Extended Benefits shall be continued until the earlier of (A) the
               second (2nd) anniversary of the  Termination Date, (B) the
               effective date of the Employee's coverage under equivalent
               benefits from a new employer (provided that no such equivalent
               benefits shall be considered effective unless and until all pre-
               existing condition limitations and waiting period restrictions
               have been waived or have otherwise lapsed), or (C) the death of
               the Employee.  If participation in any such plan or program is
               barred, the Company shall arrange at its own expense to provide
               the Employee with benefits substantially similar to those which
               he was entitled to receive under such plans and programs.  At the
               end of the period of coverage, the Employee shall have the right
               to have assigned to him, at no cost and with no apportionment of
               prepaid premiums, any assignable insurance policy relating
               specifically to him.  Employee shall be entitled to continuation
               coverage as provided by the Consolidated Omnibus Budget
               Reconciliation Act (COBRA) at the conclusion of the coverage
               provided under this Section.

          The amount of any payment or benefit provided for in this Section 9
          shall be offset by any lump sum cash payments due the Employee upon
          Termination under any other provisions of this Employment Agreement.

     10. Restrictive Covenants.  Employee shall not during the Employment
         ---------------------
         Period, directly or indirectly, alone or as a member of a partnership
         or association, or as an officer, director, advisor, consultant, agent
         or employee of any other

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         company, be engaged in or concerned with any other duties or pursuits
         requiring his personal services except with the prior consent of the
         Company's Board. Nothing herein contained shall preclude the ownership
         by Employee of stocks or other investment securities.

     11. Confidential Information and Trade Secrets.
         ------------------------------------------

          (a)  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.

          (b)  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. "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 plans,
               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. The term "Trade
               Secret" and "Confidential Information" shall not apply to
               information which is (i) already in Employee's possession (unless
               such information was used in connection with formulating the
               Company's business plans, obtained by Employee from the Company
               or was obtained by Employee in the course of Employee's
               employment by the Company), or (ii) required to be disclosed by
               any applicable law.

          (c)  Except as required to perform Employee's duties hereunder,
               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 11.

          (d)  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, plans, manuals or
               other

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               documents pertaining to the Company's business or Employee's
               employment (including all copies thereof). Employee will also
               leave with the Company all materials involving 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.

     12.  Covenant Not to Compete.
          -----------------------

          Employee hereby covenants and agrees that for a period commencing on
          the date hereof and ending twelve (12) months after ceasing employment
          with the Company for any reason, he shall not:

          (a) Compete in any way with the Company without the Company's prior
              written consent.

          (b) Interfere with the relationship of the Company and any employee,
              agent or representative.

          (c) Divert, or attempt to cause the diversion from the Company, any
              business with which the Company has been actively engaged in
              during any part of the past two (2) year period preceding the
              Termination Date, nor interfere with relationships of the Company
              with policyholders, dealers, distributors, marketers, sources of
              supply, or customers.

          Employee further specifically acknowledges that the geographic area to
          which the covenants contained in this Section 12 apply is the same
          geographic area in which the Company transacted its business during
          any part of the twelve (12) month period immediately prior to the
          Termination Date.  The time period during which the prohibitions set
          forth in this Section 12 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.

     13.  Specific Enforcement.  Employee specifically acknowledges and agrees
          --------------------
          that the restrictions set forth in Sections 11 and 12 hereof are
          reasonable and necessary to protect the legitimate interest of the
          Company and that the Company would not have entered into this
          Agreement in the absence of such restrictions. Employee further
          acknowledges and agrees that any violation of the provisions of
          Sections 11 or 12 hereof will result in irreparable injury to the
          Company, that the remedy at law for any violation or threatened
          violation of such Section(s)

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          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.

     14. Effect of Termination of the Employment Period.  Upon the termination
         ----------------------------------------------
         of the Employment Period, this Agreement shall terminate, and all of
         the parties' obligations hereunder shall forthwith terminate, except
         that rights and remedies accruing prior to such termination or arising
         out of this Agreement shall survive.

     15. Notice.  Any notice required to be given by the Company hereunder to
         ------
         Employee shall be in proper form and signed by an officer or Director
         of the Company. Until one party shall advise the other in writing to
         the contrary, notices shall be deemed delivered:

         (a) To the Company if delivered to the Chairman of the Board of the
             Company, or if mailed, certified or registered mail postage
             prepaid, to Humana Inc., 500 West Main Street, Louisville,
             Kentucky; Attention: Chairman of the Board, with a copy to the
             Company's General Counsel.

         (b) To Employee if delivered to Employee, or if mailed to him by
             certified or registered mail, postage prepaid, to Gregory H. Wolf,
             581 Sunset Road, Louisville, Kentucky 40206.

     16. Benefit.  This Agreement shall bind and inure to the benefit of the
         -------
         Company and the Employee, their respective heirs, successors and
         assigns.

     17. Severability.  If a judicial determination is made that any of the
         ------------
         provisions of this Employment Agreement constitutes an unreasonable or
         otherwise unenforceable restriction against Employee, such provision
         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 Employment Agreement shall be
         empowered to sever any portion of the territory or prohibited business
         activity from the coverage of Sections 11 or 12 and to apply the
         provisions 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
         Employment Agreement 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.

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     18. Conditions.  This Agreement shall become effective upon approval by the
         ----------
         Compensation Committee of the Board of Directors of the Company.

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


Attest:                             HUMANA INC.

                                    By:
Joan O. Lenahan                          David A. Jones
-------------------------------          ---------------------------------
                                         DAVID A. JONES
                                         Chairman, Board of Directors


Arthur Hipwell                           Gregory H. Wolf
-------------------------------          -------------------------------------
Witness                                  Gregory H. Wolf
                                         "EMPLOYEE"

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