Document:

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                              EMPLOYMENT AGREEMENT

         This Agreement, effective as of October 16, 1998 (the "Effective
Date"), is made by and between David J. Lubben ("Executive") and United
HealthCare Services, Inc. ("United HealthCare") for the purpose of setting forth
the terms and conditions of Executive's employment by United HealthCare, or an
affiliate or subsidiary of United HealthCare, and to protect United HealthCare's
knowledge, expertise, customer relationships and the confidential information
United HealthCare has developed about its customers, products, operations and
services. Unless the context otherwise requires, when used in this Agreement
"United HealthCare" includes any entity affiliated with United HealthCare.

         WHEREAS, as additional consideration for entering into this Agreement
Executive shall receive, upon execution of this Agreement, a nonqualified stock
option to purchase 50,000 shares of United HealthCare Corporation ("UHC") common
stock with a grant date the same as the Effective Date pursuant to the terms of
the UHC Amended and Restated 1991 Stock and Incentive Plan.

         WHEREAS, Executive and United HealthCare desire to enter into this
Agreement, which shall supersede any and all other prior employment-related
agreements between Executive and United HealthCare.

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

1. EMPLOYMENT AND DUTIES; TERMINATION OF PRIOR AGREEMENTS.

         A. EMPLOYMENT. United HealthCare hereby employs Executive, either
         directly or through an affiliate or subsidiary of United HealthCare,
         and Executive hereby accepts such employment on the terms and
         conditions set forth in this Agreement. Except as specifically
         superseded by this Agreement, Executive's employment hereunder shall be
         subject to all of United HealthCare's policies and procedures in regard
         to its employees. Executive's employment hereunder shall begin on the
         Effective Date and shall continue until terminated as set forth in
         Section 3 hereof.

         B. DUTIES. Executive shall initially hold the executive level position
         of General Counsel and perform the duties associated therewith.
         Executive shall perform such other executive level responsibilities as
         are reasonably assigned Executive from time to time. Executive agrees
         to devote substantially all of Executive's business time and energy to
         the performance of Executive's duties in a diligent and proper manner.

         C. TERMINATION OF PRIOR AGREEMENTS. As of the Effective Date all other
         prior employment related agreements between Executive and United
         HealthCare will terminate in their entirety and no longer be of any
         force or effect.

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2. COMPENSATION.

         A. BASE SALARY. Executive shall initially be paid a base annual salary
         in the amount of $300,000, payable bi-weekly, less all applicable
         withholdings and deductions (the "Initial Base Salary"). Executive
         shall receive a periodic performance review and consideration for an
         increase in the Initial Base Salary.

         B. BONUS AND STOCK PLANS. Executive shall be eligible to participate in
         the incentive compensation plans and the stock option and grant plans
         maintained by United HealthCare or an affiliate or subsidiary of United
         HealthCare, in the sole discretion of United HealthCare and in
         accordance with the terms and conditions of those plans and applicable
         laws and regulations.

         C. EMPLOYEE BENEFITS. Executive shall be eligible to participate in the
         employee benefit plans maintained by either United HealthCare or an
         affiliate or subsidiary of United HealthCare, including without
         limitation, any life, health, dental, short-term and long-term
         disability insurance coverages and any retirement plans, in the sole
         discretion of United HealthCare and in accordance with the terms and
         conditions of those plans and applicable laws and regulations.

         D. VACATION; ILLNESS. Executive shall be eligible for paid vacation and
         sick leave each year in accordance with the then-current policies of
         either United HealthCare or an affiliate or subsidiary of United
         HealthCare, in the sole discretion of United HealthCare and in
         accordance with the terms and conditions of those plans and applicable
         laws and regulations.

3. TERM AND TERMINATION.

         A. TERM. The term of this Agreement shall begin on the Effective Date
         and shall continue until terminated as set forth in Section 3B.

         B. TERMINATION OF AGREEMENT.

                  1. BY MUTUAL AGREEMENT. This Agreement and Executive's
                  employment hereunder may be terminated at any time by the
                  mutual written agreement of the parties.

                  2. BY UNITED HEALTHCARE. United HealthCare may terminate this
                  Agreement and Executive's employment hereunder on 30 days'
                  written notice.

                  3. BY EXECUTIVE. Executive may terminate this Agreement and
                  Executive's employment hereunder on 30 days' written notice.

                  4. DEATH, DISABILITY, ETC. This Agreement and Executive's
                  employment by United HealthCare shall terminate immediately
                  upon Executive's death. This Agreement and Executive's
                  employment hereunder shall automatically terminate in the
                  event of a permanent and total disability which renders
                  Executive incapable of

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                  performing Executive's duties, with or without reasonable
                  accommodation. United HealthCare has the sole discretion to
                  determine whether Executive is permanently or totally disabled
                  with the meaning of this Section 3B4, and the effective date
                  on which Executive was rendered so disabled.

         C. EMPLOYEE BENEFITS. On the effective date of the termination of this
         Agreement and Executive's employment by United HealthCare, Executive
         shall cease to be eligible for all employee benefit plans maintained by
         United HealthCare, except as required by federal or state continuation
         of coverage laws ("COBRA Benefits"). If Executive elects COBRA
         Benefits, Executive shall pay the entire cost of such benefits either
         through after-tax payroll deductions from the cash component of any
         severance compensation Executive receives or directly if Executive does
         not receive such severance compensation or if such severance
         compensation ceases.

         D. SEVERANCE EVENTS AND BENEFITS. If a Severance Event, as hereinafter
         defined, occurs, Executive shall receive the severance benefits set
         forth in this Section 3D for a period of 12 months from the effective
         date of the applicable Severance Event (the "Severance Period"). For
         purposes of this Agreement a Severance Event shall occur if and when:

         (i)      United HealthCare (a) terminates this Agreement and
                  Executive's employment without Cause, as hereinafter defined,
                  or (b) terminates this Agreement without terminating
                  Executive's employment and Executive elects to treat such
                  termination of this Agreement as a Change in Employment, as
                  hereinafter defined (collectively a "Termination without
                  Cause"), or

         (ii)     Within two years following a Change in Control, as hereinafter
                  defined, either (a) United HealthCare terminates this
                  Agreement and Executive's employment without Cause, or (b) a
                  Change in Employment occurs and Executive elects to treat such
                  Change in Employment as a termination of Executive's
                  employment (collectively a "Termination following a Change in
                  Control").

         1. SEVERANCE COMPENSATION. Executive shall receive the following
         severance compensation (the "Severance Compensation"):

                  a) TERMINATION WITHOUT CAUSE. Subject to Section 3D(1)(b)
                  below, upon a Termination without Cause Executive shall
                  receive biweekly payments equal to 1/26 of two times the sum
                  of (1) Executive's annualized base salary as of the date of
                  the Severance Event, less all applicable withholdings or
                  deductions required by law and Executive's COBRA Benefit
                  payments, if any, plus (2) one-half of the total of any bonus
                  or incentive compensation paid or payable to Executive for the
                  two most recent calendar years (excluding any special or
                  one-time bonus or incentive compensation payments), or if
                  Executive has been eligible for such bonus or incentive
                  compensation payments for less than two such periods, the last
                  such payment paid or payable to Executive (excluding any
                  special or one-time bonus or incentive compensation payments).

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                  b) TERMINATION FOLLOWING A CHANGE IN CONTROL. Upon a
                  Termination following a Change in Control, Executive shall
                  receive biweekly payments equal to 1/26 of three times the sum
                  of (1) Executive's highest annualized base salary during the 2
                  year period immediately preceding the Severance Event, less
                  all applicable withholdings or deductions required by law and
                  Executive's COBRA Benefit payments, if any, plus (2) the
                  greater of (i) all bonuses that would be payable to Executive
                  under any incentive compensation plans in which Executive then
                  participates at Executive's then-current target level, or (ii)
                  one-half of the total of any bonus or incentive compensation
                  paid or payable to Executive for the two most recent calendar
                  years (excluding any special or one-time bonus or incentive
                  compensation payments), or if Executive has been eligible for
                  such bonus or incentive compensation payments for less than
                  two such periods, the last such payment paid or payable to
                  Executive (excluding any special or one-time bonus or
                  incentive compensation payments.

         2. CASH PAYMENT. Executive shall receive a one-time cash payment within
         a reasonable time following commencement of the Severance Period in an
         amount equal to the portion of the premiums that United HealthCare, or
         its affiliate or subsidiary, as applicable, subsidizes for
         employee-only health, dental and group term life benefit coverages (the
         "Cash Payment"). The Cash Payment shall cover the Severance Period and
         shall be determined as of the effective date of the applicable
         Severance Event.

         3. JOB SEARCH FEES. For a period not to exceed the Severance Period,
         United HealthCare shall pay to an outplacement firm selected by United
         HealthCare an amount deemed reasonable by United HealthCare for
         outplacement and job search services for Executive.

         4. EXCISE TAX PAYMENT. If any portion of the Severance Compensation
         payable upon a Termination following a Change in Control constitutes an
         Excess Parachute Payment, as hereinafter defined, such that an Excise
         Tax, as hereinafter defined, is due, Executive shall receive a one-time
         cash payment in an amount sufficient to cover (a) the full cost of the
         Excise Tax plus (b) Executive's federal, state and city income,
         employment and Excise Tax on this one-time cash payment and on all such
         iterative payments so that Executive is made entirely whole for the
         impact of the Excise Tax (collectively the "Gross-Up Payment"). United
         HealthCare shall calculate these amounts on a timely and accurate
         basis, and for this purpose Executive shall be deemed to be in the
         highest marginal rate of federal, state and city taxes. The Gross-Up
         Payment shall be made within 30 days following the effective date of
         Executive's employment termination. For purposes of this Agreement the
         term "Excess Parachute Payment" shall have the meaning set forth in
         Section 28OG of the Internal Revenue Code of 1986, as amended (the
         "Code"). For purposes of this Agreement the term "Excise Tax" shall
         mean the tax imposed on an Excess Parachute Payment pursuant to
         Sections 280G and 4999 of the Code.

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         This Section 3D shall be the sole liability of United HealthCare to
         Executive upon the termination of this Agreement and Executive's
         employment hereunder, and shall replace and be in lieu of any payments
         or benefits which otherwise might be owed Executive under any other
         severance plan or program maintained by United HealthCare. Such
         compensation and benefits shall be conditioned on receipt by United
         HealthCare of a separation agreement and a release of claims by
         Executive on terms and conditions acceptable to United HealthCare in
         its sole discretion.

                  E. DEFINITIONS AND PROCEDURES.

                           1. CAUSE. For purposes of this Agreement "Cause"
                           shall mean (a) the refusal of Executive to follow the
                           reasonable direction of the Board of Directors of
                           United HealthCare or Executive's supervisor or to
                           perform any duties reasonably required on material
                           matters by United HealthCare, (b) material violations
                           of United HealthCare's Code of Conduct or (c) the
                           commission of any criminal act or act of fraud or
                           dishonesty by Executive in connection with
                           Executive's employment by United HealthCare. Prior to
                           the termination of Executive's employment under
                           subsection (a) of this definition of Cause, United
                           HealthCare shall provide Executive with a 30 day
                           notice specifying the basis for Cause. If the Cause
                           described in the notice is cured to United
                           HealthCare's reasonable satisfaction prior to the end
                           of the 30 day notice period, Executive's employment
                           hereunder shall not be terminated on that basis.

                           2. CHANGE IN CONTROL. For purposes of this Agreement
                           "Change in Control" shall mean (a) the acquisition by
                           any person, entity or "group," within the meaning of
                           Section 13(d)(3) or 14(d)(2) of the Securities
                           Exchange Act of 1934 (the "Exchange Act"), other than
                           United HealthCare or any employee benefit plan of
                           United HealthCare, of beneficial ownership (as
                           defined in the Exchange Act) of 20% or more of the
                           common stock of UHC or the combined voting power of
                           UHC's then-outstanding voting securities in a
                           transaction or series of transactions not approved in
                           advanced by a vote of at least three-quarters of the
                           directors of UHC; (b) a change in 50% or more of the
                           directors of UHC in any 12 month period; (c) the
                           approval by the shareholders of UHC of a
                           reorganization, merger, consolidation, liquidation or
                           dissolution of UHC or of the sale (in one transaction
                           or a series of related transactions) of all or
                           substantially all of the assets of UHC other than a
                           reorganization, merger, consolidation, liquidation,
                           dissolution or sale approved in advance by a vote of
                           at least three-quarters of the directors; (d) the
                           first purchase under any tender offer or exchange
                           offer (other than an offer by UHC) pursuant to which
                           shares of UHC common stock are purchased; or (e) at
                           least a majority of the directors of UHC determine in
                           their sole discretion that there has been a change of
                           control of UHC.

                           3. CHANGE IN EMPLOYMENT. For purposes of this
                           Agreement a "Change in Employment" shall be deemed to
                           have occurred (a) if (i) Executive's duties are
                           materially and adversely changed without Executive's
                           prior consent, (ii) Executive's salary or benefits
                           are reduced other than as a general reduction of
                           salaries and

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                           benefits by United HealthCare, (iii) without
                           terminating Executive's employment United HealthCare
                           terminates this Agreement, or (iv) the geographic
                           location for the performance of Executive's duties
                           hereunder is moved more than 50 miles from the
                           geographic location at the Effective Date without
                           Executive's prior consent, and (b) if in each case
                           under subsections (a) (i), (ii), (iii) and (iv), in
                           the period beginning 90 days before the time the
                           Change in Employment occurs, Cause does not exist or
                           if Cause does exist United HealthCare has not given
                           Executive written notice that Cause exists.
                           Notwithstanding the foregoing, an isolated,
                           insubstantial or inadvertent action by United
                           HealthCare, which is remedied by United HealthCare
                           within 30 days after receipt of notice thereof by
                           Executive, shall not constitute a Change in
                           Employment. Executive may elect to treat a Change in
                           Employment as a termination of this Agreement and
                           Executive's employment hereunder. To do so Executive
                           shall send written notice of such election to United
                           HealthCare within 90 days after the date Executive
                           receives notice from United HealthCare or otherwise
                           is definitively informed of the events constituting
                           the Change in Employment. No Change in Employment
                           shall be deemed to have occurred if Executive fails
                           to send the notice of election within the 90 day
                           period. Executive's failure to treat a particular
                           Change in Employment as a termination of employment
                           shall not preclude Executive from treating a
                           subsequent Change in Employment as a termination of
                           employment. The effective date of a Change in
                           Employment termination shall be the date 30 days
                           after United HealthCare receives the written notice
                           of election.

4. PROPERTY RIGHTS, CONFIDENTIALITY, NON-DISPARAGEMENT, NON-SOLICIT AND
NON-COMPETE PROVISIONS.

         A. UNITED HEALTHCARE'S PROPERTY.

                  1. ASSIGNMENT OF PROPERTY RIGHTS. Executive shall promptly
                  disclose to United HealthCare in writing all inventions,
                  discoveries and works of authorship, whether or not patentable
                  or copyrightable, which are conceived, made, discovered,
                  written or created by Executive alone or jointly with another
                  person, group or entity, whether during the normal hours of
                  employment at United HealthCare or on Executive's own time,
                  during the term of this Agreement. Executive assigns all
                  rights to all such inventions and works of authorship to
                  United HealthCare. Executive shall give United HealthCare any
                  assistance it reasonably requires in order for United
                  HealthCare to perfect, protect, and use its rights to
                  inventions and works of authorship.

                  This provision shall not apply to an invention for which no
                  equipment, supplies, facility or trade secret information of
                  United HealthCare was used and which was developed entirely on
                  the Executive's own time and which (1) does not relate to the
                  business of United HealthCare or to United HealthCare's
                  anticipated research or development, or (2) does not result
                  from any work performed by the Executive for United
                  HealthCare.

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                  2. NO REMOVAL OF PROPERTY. Executive shall not remove any
                  records, documents, or any other tangible items (excluding
                  Executive's personal property) from the premises of United
                  HealthCare in either original or duplicate form, except as is
                  needed in the ordinary course of conducting business for
                  United HealthCare.

                  3. RETURN OF PROPERTY. Executive shall immediately deliver to
                  United HealthCare, upon termination of employment with United
                  HealthCare, or at any other time upon United HealthCare's
                  request, any property, records, documents, and other tangible
                  items (excluding Executive's personal property) in Executive's
                  possession or control, including data incorporated in word
                  processing, computer and other data storage media, and all
                  copies of such records, documents and information, including
                  all Confidential Information, as defined below.

         B. CONFIDENTIAL INFORMATION. During the course of employment Executive
         will develop, become aware of and accumulate expertise, knowledge and
         information regarding United HealthCare's organization, strategies,
         business and operations and United HealthCare's past, current or
         potential customers and suppliers. United HealthCare considers such
         expertise, knowledge and information to be valuable, confidential and
         proprietary and it shall be considered Confidential Information for
         purposes of this Agreement. During this Agreement and at all times
         thereafter Executive shall not use such Confidential Information or
         disclose it to other persons or entities except as is necessary for the
         performance of Executive's duties for United HealthCare or as has been
         expressly permitted in writing by United HealthCare. This Section 4B
         shall survive the termination of this Agreement.

         C. NON-DISPARAGEMENT. Executive agrees that he will not criticize,
         make any negative comments or otherwise disparage or put in disrepute
         United HealthCare, or those associated with United HealthCare, in any
         way, whether orally, in writing or otherwise, directly or by
         implication in communication with any person, including but not limited
         to customers or agents of United HealthCare. This Section 4C shall
         survive the termination of this Agreement.

         D. NON-SOLICITATION. During (i) the term of this Agreement, (ii) the
         Severance Period or any period in which Executive receives severance
         compensation pursuant to United HealthCare' election under Section 4E,
         as applicable (iii) any period following the termination or expiration
         of this Agreement during which Executive remains employed by United
         HealthCare and (iv) for a period of one year after the last day of the
         latest of any period described in (i), (ii) or (iii), Executive shall
         not (y) directly or indirectly attempt to hire away any then-current
         employee of United HealthCare or a subsidiary of United HealthCare or
         to persuade any such employee to leave employment with United
         HealthCare, or (z) directly or indirectly solicit, divert, or take
         away, or attempt to solicit, divert, or take away, the business of any
         person, partnership, company or corporation with whom United HealthCare
         (including any subsidiary or affiliated company in which United
         HealthCare has a more than 20% equity interest) has established or is
         actively seeking to establish a business or customer relationship. This
         Section 4D shall survive the termination of this Agreement.

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         E. NON-COMPETITION. During (i) the term of this Agreement, (ii) the
         Severance Period or any period in which Executive receives severance
         compensation pursuant to United HealthCare' election under this
         Section 4E, as applicable, and (iii) any period following the
         termination or expiration of this Agreement during which Executive
         remains employed by United HealthCare, Executive shall not, without
         United HealthCare's prior written consent, engage or participate,
         either individually or as an employee, consultant or principal,
         partner, agent, trustee, officer or director of a corporation,
         partnership or other business entity, in any business in which United
         HealthCare (including any subsidiary or affiliated company in which
         United HealthCare has more than a 20% equity interest) is engaged. If
         Executive terminates this Agreement, and as of such termination or
         within 90 days of such termination Executive also terminates
         Executive's employment by United HealthCare, United HealthCare may
         elect to have the provisions of this Section 4E be in effect for up to
         24 months following the effective date of Executive's employment
         termination if, during the period up to 24 months specified by United
         HealthCare, United HealthCare pays Executive severance compensation
         equal to biweekly payments of 1/26 of the Severance Compensation and
         the Cash Payment. United HealthCare must send written notice of such
         election within 10 days after it receives written notice of
         Executive's termination of employment. This Section 4E shall survive
         the termination of this Agreement.

5. MISCELLANEOUS.

         A. ASSIGNMENT. This Agreement shall be binding upon and shall inure to
         the benefit of the parties and their successors and assigns, but may
         not be assigned by either party without the prior written consent of
         the other party, except that United HealthCare in its sole discretion
         may assign this Agreement to an entity controlled by United HealthCare
         at the time of the assignment. If United HealthCare subsequently loses
         or gives up control of the entity to which this Agreement is assigned,
         such entity shall become United HealthCare for all purposes under this
         Agreement, beginning on the date on which United HealthCare loses or
         gives up control of the entity. Any successor to United HealthCare
         shall be deemed to be United HealthCare for all purposes of this
         Agreement.

         B. NOTICES. All notices under this Agreement shall be in writing and
         shall be deemed to have been duly given if delivered by hand or mailed
         by registered or certified mail, return receipt requested, postage
         prepaid, to the party to receive the same at the address set forth
         below or at such other address as may have been furnished by proper
         notice.

                      United HealthCare:      300 Opus Center
                                              9900 Bren Road East
                                              Minnetonka, MN 55343
                                              Attn: General Counsel

                             Executive:

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         C. ENTIRE AGREEMENT. This Agreement contains the entire understanding
         of the parties with respect to its subject matter and may be amended or
         modified only by a subsequent written amendment executed by the
         parties. This Agreement replaces and supersedes any and all prior
         employment or employment related agreements and understandings,
         including any letters or memos which may have been construed as
         agreements, between the Executive and United HealthCare.

         D. CHOICE OF LAW. This Agreement shall be construed and interpreted
         under the applicable laws and decisions of the State of Minnesota.

         E. WAIVERS. No failure on the part of either party to exercise, and no
         delay in exercising, any right or remedy under this Agreement shall
         operate as a waiver; nor shall any single or partial exercise of any
         right or remedy preclude any other or further exercise of any right or
         remedy.

         F. ADEQUACY OF CONSIDERATION. Executive acknowledges and agrees that
         Executive has received adequate consideration from United HealthCare to
         enter into this Agreement.

         G. DISPUTE RESOLUTION AND REMEDIES. Any dispute arising between the
         parties relating to this Agreement or to Executive's employment by
         United HealthCare shall be resolved by binding arbitration pursuant to
         United HealthCare' Employment Arbitration Policy. The arbitrators shall
         not ignore or vary the terms of this Agreement and shall be bound by
         and apply controlling law. The parties acknowledge that Executive's
         failure to comply with the Confidential Information, Non-Solicitation
         and Non-Competition provisions of this Agreement will cause immediate
         and irreparable injury to United HealthCare and that therefore the
         arbitrators, or a court of competent jurisdiction if an arbitration
         panel cannot be immediately convened, will be empowered to provide
         injunctive relief, including temporary or preliminary relief, to
         restrain any such failure to comply.

         H. NO THIRD-PARTY BENEFICIARIES. This Agreement shall not confer or be
         deemed or construed to confer any rights or benefits upon any person
         other than the parties.

THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION THAT MAY BE ENFORCED BY
THE PARTIES.

         IN WITNESS WHEREOF, this Agreement has been signed by the parties
hereto as of the Effective Date set forth above.

United HealthCare Services, Inc.            Executive

By /s/ Robert J. Buckes                      /s/ David J. Lubben
  ------------------------------------      ------------------------------------
Its  Senior Vice President                       David J. Lubben
   -----------------------------------
     Robert J. Buckes
     Senior Vice President
     Human Resources

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                      PHARMACY BENEFIT MANAGEMENT AGREEMENT

         This PHARMACY BENEFIT MANAGEMENT AGREEMENT (this "Agreement") is
between UNITED HEALTHCARE SERVICES, INC., on behalf of itself and its affiliates
from time to time, located at 9900 Bren Road East, Minnetonka, Minnesota 55343
(hereinafter "United HealthCare"), and MERCK MEDCO MANAGED CARE, L.L.C. located
at 100 Summit Avenue, Montvale, New Jersey 07645-1753 (hereinafter "PBM"). This
Agreement is effective on the date the parties have each executed it (the
"Effective Date"). It concerns services provided as of the "Commencement Date,"
as hereinafter defined. This Agreement supersedes and replaces any existing
agreements between the parties related to the same subject matter.

                              W I T N E S S E T H:

         WHEREAS, United HealthCare desires to contract with a pharmaceutical
benefits management entity for pharmaceutical benefit management and related
services that United HealthCare will make available, together with other United
HealthCare services, to Health Plans, as hereinafter defined, and other
non-Health Plan business (affiliated with United HealthCare or to which United
HealthCare provides services) through contracts with United HealthCare; and

         WHEREAS, PBM provides pharmaceutical benefits management and related
services and desires to contract with United HealthCare to provide such
management and services.

         NOW, THEREFORE, in consideration of the terms and conditions set forth
in this Agreement, the undersigned parties agree as follows:

SECTION 1. DEFINITIONS

         1.1.     DEFINITIONS. In addition to the capitalized terms defined
elsewhere in this Agreement, the following terms shall have the following
meanings:

         (a)      "AVERAGE WHOLESALE PRICE" or "AWP" means the average wholesale
         price of the Covered Prescription Drug Services dispensed, utilizing
         the current price list in the Blue Book and its supplements. If PBM
         ceases to use the Blue Book and its supplements, PBM shall use such
         other nationally recognized pricing source as PBM uses for all of its
         remaining customers; or, if PBM uses more than one source, then the
         source used for United HealthCare shall be the source mutually agreed
         to by the parties. Under the Retail Pharmacy Program, AWP is based on
         the package size submitted. Under the Mail Service Program, AWP is
         based on package sizes of 100 units or 16 oz. quantities, or smaller
         quantities if such quantities are not commercially available.

         (b)      "BENEFIT CONTRACT" means a benefit plan that: (i) is
         sponsored, purchased, issued or administered by Payor and (ii) contains
         the terms and conditions of a Covered Person's coverage. A Benefit
         Contract is also known as

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         a certificate of coverage, summary plan description, evidence of
         coverage, or group services agreement.

         (c)      "COMMENCEMENT DATE" means June 1, 2000 or such earlier date on
         which PBM begins to provide services under this Agreement in accordance
         with SECTION 3.24.

         (d)      "COPAYMENT OR COINSURANCE OR DEDUCTIBLE OR OTHER CHARGE"
         collectively known as "Copayment" means the charge, in addition to the
         premium, which a Covered Person is required to pay for certain covered
         services provided under the Benefit Contract and Pharmacy Rider.
         Copayment or Coinsurance or Deductible or Other Charge may be either a
         defined dollar amount or a percentage of eligible expenses. A Covered
         Person is responsible for the payment of any Copayment directly to the
         pharmacy at the time the prescription is dispensed.

         (e)      "COVERED PERSON" means an individual eligible to receive
         coverage for outpatient prescription pharmacy benefits who is currently
         enrolled under a United HealthCare or Payor Benefit Contract that
         includes a Pharmacy Rider.

         (f)      "COVERED PRESCRIPTION DRUG SERVICES" means those covered
         outpatient prescription drugs and covered pharmacy products, services
         and supplies pursuant to a Covered Person's Benefit Contract and/or
         Pharmacy Rider.

g)       "HEALTH PLAN" means a licensed health maintenance organization
("HMO") or other similar organization that is either (i) owned by United
HealthCare where "Owned" means that United HealthCare owns not less than a
majority of the voting securities; or (ii) managed by United HealthCare,
where "Managed" means that United HealthCare manages the pharmacy program or
provides other management or administrative services such as claims
processing services, where the local managed health plan assumes medical risk
other than as defined below. Health Plan includes an HMO or other similar
organization Owned or Managed that offers an array of products including but
not limited to fully-insured, self-insured products (where such self-insured
products use the provider networks, medical management and other similar
services used by the HMO or similar organization), commercial HMO products,
Medicare risk products (Medicare+ Choice), Medicaid, EPO products, PPO
products, and all combination products that include an in-network and
out-of-network component such as point-of-service ("POS") products. When such
organization is Managed by United HealthCare, not Owned by United HealthCare,
Health Plan includes such organization only to the extent it has elected to
receive services pursuant to this Agreement. The term Health Plan is not
intended to include: (i) United HealthCare Insurance Company (UHI) products
unless: (A) such products use provider networks, medical management and other
similar services in a manner comparable to the HMOs or similar organization;
and (B) United HealthCare is responsible for medical underwriting risk; or
(ii) fully insured or self-funded products sold through United HealthCare's
Strategic Business Services division; or (iii) Medicare supplemental products
(MediGap); or (iv) *** of this Agreement.

***  Represents text deleted pursuant to a confidentiality treatment request
     filed with the Securities and Exchange Commission pursuant to Rule 24b-2
     under the Securities Exchange Act of 1934, as amended.

<PAGE>

         (h)      "INTELLECTUAL PROPERTY" means all patents, patents pending,
         trademarks, service marks, trade names, service names, slogans,
         registered copyrights, commercially significant unregistered
         copyrights, technology rights and licenses, computer software
         (including, without limitation, any source or object codes or
         related documentation), trade secrets, franchises, know-how, and
         inventions and all improvements to such intellectual property.

         (i)      "MAIL SERVICE PROGRAM" means a program contemplated by this
         Agreement in which Covered Persons may mail a prescription together
         with the applicable Copayment to PBM for dispensing of a 90 day
         maximum supply of a covered drug via mail service.

         (j)      "MAXIMUM ALLOWABLE COST" or "MAC" means a list established
         by PBM for its book of business showing the maximum allowable cost
         for a list of prescription drug ingredients. Any generic or branded
         generic drug on the MAC list dispensed at retail will be reimbursed
         at the maximum allowed by such list.

         (k)      "PARTICIPATING PHARMACY" means a pharmacy, including a
         retail or mail service pharmacy, which has entered into an agreement
         with PBM under which pharmacy has agreed to provide Covered
         Prescription Drug Services to Covered Persons and to comply with (i)
         contractual requirements pursuant to this Agreement; and (ii)
         regulatory requirements.

         (l)      "PAYOR" means United HealthCare or the entity or person
         that has the financial responsibility to United HealthCare for
         payment for services covered by a Benefit Contract and/or Pharmacy
         Rider.

         (m)      "PHARMACY RIDER" means that rider to the Covered Person's
         Benefit Contract that in addition to the Benefit Contract, states
         the details of Covered Person's prescription drug coverage. The
         Benefit Contract and Pharmacy Rider are used by PBM in processing
         outpatient prescription drug claims in connection with this
         Agreement.

         (n)      "PHARMACY & THERAPEUTICS COMMITTEE" or "P&T Committee"
         means that United HealthCare committee that: (i) reviews a
         prescription drug for inclusion on the United HealthCare Preferred
         Drug List or other comparable formularies; and, (ii) develops other
         criteria, procedures and rules for the Program including but not
         limited to quantity level and prior authorization.

         (o)      "PREFERRED DRUG LIST" or "PDL" means a list that identifies
         those Federal Drug Administration ("FDA") approved prescription drug
         products that are preferred by United HealthCare for dispensing to
         Covered Persons.

         (p)      "PROGRAM" means all pharmacy services provided under the
         Benefit Contract and Pharmacy Rider to Covered Persons, including
         days supply limitation, Copayment, Preferred Drug List and other
         program specifications set forth in this Agreement or otherwise
         agreed to, in writing, between or among the parties.

<PAGE>

         (q)      "PDL REBATE(S)" means ***

         (r)      "RETAIL PHARMACY PROGRAM" means that part of the pharmacy
         program where Covered Persons may purchase a maximum of a 34 day
         supply (except as otherwise mutually agreed) of Covered Prescription
         Drug Services from a retail Participating Pharmacy upon providing
         verification of eligibility and payment of the applicable Copayment.

         (s)      "SUBSTANTIAL CHANGE" means a change in law or regulation
         applicable to a party to this Agreement that materially adversely
         affects the benefits such party reasonably expected to receive under
         this Agreement.

         (t)      "UNITED HEALTHCARE" means the party to this Agreement or
         another wholly owned affiliate, subsidiary or business division to
         whom United HealthCare may assign this Agreement.

SECTION 2.  REPRESENTATIONS AND WARRANTIES

         2.1.     REPRESENTATIONS AND WARRANTIES OF PBM.

                  2.1.1.   ORGANIZATION AND QUALIFICATION. PBM represents and
                  warrants to United HealthCare that it is a limited liability
                  company duly organized, validly existing and in good standing
                  under the laws of New Jersey. PBM has the corporate power and
                  authority necessary to own and operate its properties and to
                  carry on its business as now conducted. PBM is qualified to do
                  business as a foreign corporation in every jurisdiction in
                  which the nature of its business and/or its ownership of
                  property requires it to be so qualified.

                  2.1.2.   CORPORATE AUTHORIZATION. PBM represents and warrants
                  to United HealthCare that the execution, delivery, and
                  performance of this Agreement and the provision of the
                  services contemplated hereby are within its corporate powers.
                  All requisite authority necessary to enter into this Agreement
                  has been obtained, and PBM has duly and validly executed and
                  delivered this Agreement. Assuming this Agreement constitutes
                  the valid and binding agreement of United HealthCare, this
                  Agreement constitutes a valid and binding agreement of PBM
                  enforceable against PBM in accordance with its terms.

                  2.1.3.   NO CONFLICT; REQUIRED FILINGS AND CONSENTS. PBM
                  represents and warrants to United HealthCare that the
                  execution, delivery and performance of this Agreement does
                  not, and the provision of the services contemplated hereby
                  will not: (a) conflict with the Articles of Organization or
                  Bylaws of PBM; (b) conflict with or violate any laws
                  applicable to PBM or by which any of its properties is bound
                  or affected; or (c) result in any breach of or constitute a
                  default (or an event that with

***  Represents text deleted pursuant to a confidentiality treatment request
     filed with the Securities and Exchange Commission pursuant to Rule 24b-2
     under the Securities Exchange Act of 1934, as amended.

<PAGE>

                  notice or lapse of time or both would become a default)
                  under, or give to others any rights of termination,
                  amendment, acceleration or cancellation of, or result in
                  the creation of a lien or encumbrance on any of the
                  properties or assets of PBM pursuant to any note, bond,
                  mortgage, indenture, contract, agreement, lease, license,
                  permit, franchise or other instrument or obligation to
                  which PBM is a party, or by which PBM or any of its
                  properties is bound or affected. The execution and delivery
                  of this Agreement by PBM does not, and the performance of
                  this Agreement by PBM and the provision of the services
                  contemplated hereby by PBM will not, require any consent,
                  approval, authorization or permit of, or filing with or
                  notification to, any third party, except for certain
                  filings required by certain state governmental entities.

         2.2.     REPRESENTATIONS AND WARRANTIES OF UNITED HEALTHCARE.

                  2.2.1.   ORGANIZATION AND QUALIFICATION. United HealthCare
                  represents and warrants to PBM that it is a corporation duly
                  incorporated, validly existing and in good standing under the
                  laws of Minnesota. United HealthCare has the corporate power
                  and authority necessary to own and operate its properties and
                  to carry on its business as now conducted. United HealthCare
                  is qualified to do business as a foreign corporation in every
                  jurisdiction in which the nature of its business or its
                  ownership of property requires it to be so qualified.

                  2.2.2.   CORPORATE AUTHORIZATION. United HealthCare represents
                  and warrants to PBM that the execution, delivery, and
                  performance of this Agreement are within its corporate powers.
                  All requisite authority necessary to enter into this Agreement
                  has been obtained, and United HealthCare has duly and validly
                  executed and delivered this Agreement. Assuming this Agreement
                  constitutes the valid and binding agreement of PBM, this
                  Agreement constitutes a valid and binding agreement of United
                  HealthCare enforceable against United HealthCare in accordance
                  with its terms.

                  2.2.3.   NO CONFLICT; REQUIRED FILINGS AND CONSENTS. United
                  HealthCare represents and warrants to PBM that the execution,
                  delivery and performance of this Agreement does not, and the
                  performance of this Agreement by United HealthCare will not:
                  (a) conflict with the Articles of Incorporation or Bylaws of
                  United HealthCare; (b) conflict with or violate any laws
                  applicable to United HealthCare or by which any of its
                  properties is bound or affected; or (c) result in any breach
                  of or constitute a default (or an event that with notice or
                  lapse of time or both would become a default) under, or give
                  to others any rights of termination, amendment, acceleration
                  or cancellation of, or result in the creation of a lien or
                  encumbrance on any of the properties or assets of United
                  HealthCare pursuant to any note, bond, mortgage, indenture,
                  contract, agreement, lease, license, permit, franchise or
                  other instrument or obligation to which United HealthCare is a
                  party, or by which United HealthCare or any of its properties
                  is bound or affected. The execution and delivery of this
                  Agreement by United HealthCare does not, and the

<PAGE>

                  performance of this Agreement by United HealthCare will
                  not, require any consent, approval, authorization or permit
                  of, or filing with or notification to any third party,
                  except for certain filings required by certain state
                  governmental entities.

SECTION 3.        OBLIGATIONS OF PBM: PHARMACY MANAGEMENT AND SERVICES

         3.1.     GENERAL PBM SERVICES. PBM shall provide to United HealthCare
         the services described in this Agreement and in EXHIBIT A. PBM
         acknowledges that its position as a premier company capable and
         desirous of providing industry leading products and services is an
         inducement on which United HealthCare is relying in entering into this
         Agreement.

         3.2.     LAWS, REGULATIONS AND LICENSES. PBM, at its own cost, shall:
         (a) maintain all federal, state, and local licenses that are materially
         necessary to provide services under this Agreement and the lack of
         which could adversely affect United HealthCare; (b) shall comply with
         all applicable statutes and regulations in providing all services
         pursuant to this Agreement; and (c) require all Participating
         Pharmacies employed by or under contract with PBM to comply with (a)
         and (b).

         3.3.     PERSONNEL AND OTHER RESOURCES. PBM shall provide sufficient,
         dedicated personnel, information systems support and other resources,
         as reasonably required to successfully administer a high quality,
         cost-effective Program for United HealthCare pursuant to this
         Agreement. PBM and United HealthCare shall review the appropriateness
         of resource allocation on a regular basis, no less often than
         quarterly. United HealthCare has the right to interview and approve of
         any recommended new hires for the Dedicated Pharmacy Management Unit
         discussed below. United HealthCare also has the right to have a PBM
         employee removed from providing services for United HealthCare. PBM
         shall be responsible for all compensation, benefits and taxes of PBM's
         employees. If the parties agree to locate any PBM employees at a United
         HealthCare location, United HealthCare shall be responsible to provide
         workspace, supplies and equipment to PBM within a mutually agreed upon
         reasonable time frame and at a mutually agreed upon cost.

                  3.3.1.   PBM agrees to have a Dedicated Pharmacy Management
                  Unit located in Minneapolis as part of the pharmacy management
                  services provided for United HealthCare. PBM agrees to have
                  this unit fully operational prior to the Commencement Date.
                  United HealthCare will designate the name of this dedicated
                  unit, subject to the approval of PBM.

                  3.3.2.   PBM agrees that the senior management team dedicated
                  to United HealthCare shall be located in Minneapolis and shall
                  consist of a senior level employee who has decision-making
                  authority. In addition to general PBM management expertise,
                  PBM shall have individuals located in the Dedicated Pharmacy
                  Management Unit with expertise in: (a) clinical and analytical
                  services, (b) customer account services, (c) marketing and
                  sales support, (d) pharmacists to work with the Health

<PAGE>

                  Plans, and (e) account management for Health Plan and
                  non-Health Plan business. PBM shall also provide the
                  following support to the Dedicated Pharmacy Management
                  Unit's activities for United HealthCare from PBM's
                  corporate or other offices: customer service, legal and
                  regulatory compliance, information systems, network
                  management, operational support, underwriting, manufacturer
                  activity and clinical programs.

                  3.3.3.   PBM agrees that the services provided by PBM's
                  dedicated pharmacy management services include: (a) work with
                  United HealthCare to position United HealthCare's prescription
                  drug Programs for economic and service success in a changing
                  competitive market place; (b) formulate appropriate pharmacy
                  goals with and for United HealthCare; (c) develop and execute
                  a pharmacy marketing plan that will enable United HealthCare
                  to meet its sales and growth goals; and (d) help with pharmacy
                  cost management including United HealthCare's trend management
                  and per member per month (pmpm) cost management.

                  3.3.4.   PBM agrees to provide dedicated management and sales
                  support as reasonably requested to optimize the value of
                  United HealthCare's Program and to attain United HealthCare's
                  identified goals. PBM's marketing and sales support shall
                  include but not be limited as the market changes from time to
                  time, to the following: (a) strategic consultation, training
                  and education; (b) advanced training modules for sales
                  representatives; (c) continuing education programs; (d) site
                  visits and video presentations; (e) focus groups and related
                  consulting; (f) press release development and recommendations;
                  (g) strategies to successfully market against competitors; (h)
                  presentation and reference materials for use by sales
                  representatives; (i) client sales support during finalist
                  presentations; (j) professionally designed marketing
                  literature that effectively positions United HealthCare and
                  communicates the clients' prescription benefit programs; and
                  (k) customized communication programs to motivate and inform
                  selected audiences.

                  3.3.5.   PBM agrees that different marketing strategies will
                  be provided to United HealthCare for growth goals based on
                  revenue, profit, and membership.

         3.4.     RETAIL PARTICIPATING PHARMACY NETWORK. PBM agrees to provide
         national networks of retail Participating Pharmacies under contract
         with PBM to provide dispensing services to Covered Persons under the
         Retail Pharmacy Program. PBM agrees that United HealthCare may require
         the termination of a specific retail pharmacy for good cause including
         quality of care issues. PBM shall notify United HealthCare of any
         terminations in the Participating Pharmacy network. PBM shall send
         letters to Covered Persons, who have utilized a Participating Pharmacy
         in the prior twelve months, notifying them of the termination of such
         Participating Pharmacy, after receiving from United HealthCare: (a) the
         addresses of the affected Covered Persons; and (b) the approval of the
         letters by United HealthCare. United HealthCare shall be responsible
         for the postage costs of any mailings to Covered Persons when a
         Participating Pharmacy is terminated at United HealthCare's request.
         PBM shall be responsible for the postage costs of

<PAGE>

         any mailings to Covered Persons when Participating Pharmacy is
         terminated at PBM's request.

                  3.4.1.   PBM will provide United HealthCare with at least
                  three network alternatives by the Commencement Date as
                  described in the FINANCIAL APPENDIX:

                           3.4.1.1. PBM shall provide and maintain a
                           Participating Provider network that is taken as a
                           whole no less favorable in terms of number, location,
                           and quality of providers than the network available
                           to United HealthCare as of the period just prior to
                           the Commencement Date and PBM shall guarantee no
                           deterioration in reimbursement during the term of
                           this Agreement as compared to the period just prior
                           to the Commence Date. This network may upon parties'
                           mutual written consent be contracted through United
                           HealthCare.

                           3.4.1.2. PBM shall make available its CCNIII network.

                           3.4.1.3. PBM shall make available its CCN+ network.

                  3.4.2.   PBM agrees to use reasonable commercial efforts to
                  create alternative retail networks for any new products or
                  other offerings that may be developed by United HealthCare
                  from time to time.

                  3.4.3.   For the network described in SECTION 3.4.1.1, PBM
                  agrees that during the term of this Agreement all PBM
                  customized pharmacy provider agreements for such retail
                  pharmacy network shall be assignable to United HealthCare.
                  Such assignment shall be made at United HealthCare's sole
                  discretion and at a time determined by United HealthCare.

         3.5.     MAIL SERVICE. PBM shall provide to United HealthCare and
         Health Plans shall use PBM's mail service program as its exclusive mail
         service program, as more fully described in the FINANCIAL APPENDIX.
         United HealthCare shall use its reasonable commercial efforts to
         encourage non-Health Plan business to use PBM's mail service. PBM
         agrees to interface with other mail service vendors utilized by
         non-Health Plan business as reasonably requested using PBM's
         specifications.

         3.6.     CUSTOMIZED INSTALLATION MATERIALS. PBM agrees to provide to
         United HealthCare customized installation materials for United
         HealthCare that are accurate and support the specific language in the
         Benefit Contract and Pharmacy Rider. PBM is responsible for
         administering the Benefit Contract and Pharmacy Rider accurately and in
         accordance with all regulatory requirements. At United HealthCare's
         option and approval, PBM shall produce brochures, and other Covered
         Person materials for Covered Persons specific to Covered Prescription
         Drug Services. PBM agrees to provide an accompanying explanatory
         brochure and direct reimbursement claim forms for use by Covered
         Persons who have not received or who have lost their Identification
         Cards. PBM agrees that any Covered Person materials must be approved by
         United HealthCare. United HealthCare

<PAGE>

         shall be responsible for all postage costs related to mailings to
         Covered Persons except as otherwise provided in this Agreement.

         3.7.     ELIGIBILITY. PBM agrees to administer eligibility of Covered
         Persons according to eligibility information provided by United
         HealthCare via tape or telecommunication or such other reasonably
         practicable method in a mutually agreeable acceptable format. PBM
         agrees to provide toll-free access for Covered Persons to PBM's
         Customer Service Department for eligibility and claims processing
         assistance. PBM may rely on eligibility information provided by United
         HealthCare for all purposes related to this Agreement.

         3.8.     COVERED PERSON PROTECTION PROVISION. PBM hereby agrees that it
         shall not seek payment, other than Copayments, from any Covered Person
         for Covered Prescription Drug Services under any circumstances. This
         Section shall survive the Agreement.

         3.9.     COMMUNICATIONS. PBM agrees that all written communications
         sent to United HealthCare Covered Persons, participating providers or
         facilities that relate in any way to United HealthCare's Benefit
         Contract or Pharmacy Rider must be reviewed and approved by United
         HealthCare before such communications are sent out to any such
         individuals or groups. PBM agrees that all program communication
         protocols to be used with United HealthCare participating physician
         providers will be reviewed and approved by United HealthCare prior to
         use. United HealthCare shall approve or disapprove all such materials
         within a reasonable time after submission by PBM.

         3.10.    CLAIMS PROCESSING.

                  3.10.1.  PBM shall process Covered Persons' Covered
                  Prescription Drug Services claims in accordance with
                  regulatory requirements, the Benefit Contract and Pharmacy
                  Rider, and PBM'S standard operating procedure.

                  3.10.2.  At the end of each bi-weekly claims cycle, or other
                  processing time period as mutually agreed to by the parties,
                  PBM shall provide claims reports and written notice to United
                  HealthCare of the amount necessary to pay claims processed and
                  fees due to PBM for claims processed.

                  3.10.3.  Any disputes over claims shall be resolved prior to
                  payment by PBM. If PBM makes an error or omission in claims
                  processing, PBM shall be solely responsible for any related
                  costs.

                  3.10.4.  All postage costs related to payment or denial of
                  direct reimbursement claims is the responsibility of PBM.

         3.11.    CLAIM APPEALS. In the event of a claim denial by PBM, PBM
         shall promptly communicate to the Covered Person the right to appeal
         according to the Covered Person's Benefit Contract and Pharmacy Rider
         and applicable law.

         3.12.    CLAIMS AND PHARMACY AUDITING. PBM shall regularly audit its
         electronic and on-site claim processing activities and shall regularly
         audit its retail

<PAGE>

         pharmacies, in accordance with PBM's standard audit procedures. PBM
         shall provide United HealthCare with a report on such audits
         containing specific audit information and containing such other
         information as United HealthCare reasonably requests. United
         HealthCare shall receive one hundred percent of any such audit
         recoveries that were incorrectly paid pursuant to the United
         HealthCare Program. When any such overpayment was the result of
         errors or omissions by PBM, payment of such audit recovery shall
         include interest at the prevailing prime rate of interest as
         determined by the WALL STREET JOURNAL for the period of time from
         the payment of the claim to receiving recovery from PBM.

         3.13.    REPORTS. PBM agrees to provide aggregate reports and
         Payor-specific reports in a format and containing such information as
         United HealthCare reasonably requests; provided in no event shall PBM
         be required to incur costs substantially in excess of expenses incurred
         by the PBM industry generally to provide such reports. This reporting
         shall include PBM's EXPERxT and Standard PLUS Reports and reports
         pursuant to EXHIBIT A.

         3.14.    COORDINATION OF BENEFITS. When United HealthCare provides
         required information, PBM agrees to process Level I and II coordination
         of benefits in accordance with PBM's coordination of benefits rules.

         3.15.    HEALTH MANAGEMENT PROGRAM. PBM agrees to provide Health
         Management Programs to Covered Persons at United HealthCare's option.
         Health Management Programs developed during the term of this Agreement
         by PBM shall be made available to United HealthCare. ***

         3.16.    PHYSICIAN-BASED PHARMACEUTICAL CARE APPLICATION INFORMATION
         SYSTEM. *** This systems program shall be a knowledge-based system
         for physicians which includes but is not limited to PDL compliance
         and drug compatibility capabilities.

         3.17.    DEMAND MANAGEMENT SERVICES. PBM agrees to utilize reasonable
         efforts to contract exclusively with United HealthCare for Demand
         Management Services by the Commencement Date. ***

         3.18.    ***

         3.19.    NATIONAL ACCOUNTS. The parties agree to use reasonable
         commercial efforts to work together to increase joint pharmacy National
         Account business. United HealthCare agrees to utilize PBM as United
         HealthCare's exclusive PBM for National Accounts to the extent required
         under SECTION 9. ***

***  Represents text deleted pursuant to a confidentiality treatment request
     filed with the Securities and Exchange Commission pursuant to Rule 24b-2
     under the Securities Exchange Act of 1934, as amended.

<PAGE>

         3.20.    SERVICE PERFORMANCE STANDARDS. United HealthCare and PBM shall
         each use good faith and reasonable commercial efforts to perform their
         respective duties and obligations in a diligent, professionally
         responsible and efficient manner. The parties agree to cooperate with
         and assist each other as reasonably necessary in the performance of
         their respective duties and in developing timely responses to the needs
         of United HealthCare's business. Notwithstanding the general and
         specific Service Performance Standards and Guarantees applicable to PBM
         identified in EXHIBIT B, PBM shall perform the services for which it is
         responsible under this Agreement using the same degree of skill and
         care in such performance as a prudent person engaged in pharmacy
         benefit management services would use under substantially similar
         circumstances in the management of a similar pharmacy benefit
         management business of United HealthCare's magnitude. PBM agrees to
         accept the Service Performance Standards and Guarantees set forth in
         EXHIBIT B, including the dollars which shall be at risk should PBM's
         aggregate performance or guarantees be below the indicated targets. PBM
         shall provide to United HealthCare: (a) monthly or quarterly reports as
         applicable of PBM's performance; and (b) annual statistics, within
         ninety (90) days of the end of the calendar year, demonstrating whether
         PBM met the Service Performance Standards and Guarantees described in
         EXHIBIT B. At the same time PBM provides such statistics to United
         HealthCare, PBM shall reimburse United HealthCare any monies owed
         because of PBM's failure to meet such Service Performance Standards and
         Guarantees.

         3.21.    INSURANCE. PBM shall procure by the Effective Date and shall
         maintain, at its own expense: (a) professional liability insurance in
         the amount of $5,000,000.00 per occurrence and $10,000,000.00 annual
         aggregate including coverage for errors and omissions; (b) general
         liability insurance in the amount of $1,000,000.00 per each occurrence
         and $3,000,000.00 annual aggregate; and (c) umbrella/excess liability
         insurance in the amount of $10,000,000.00 each occurrence and
         aggregate. United HealthCare must be named as an "additional insured"
         on the policies referenced above for claims affecting United
         HealthCare's interests.

         3.22.    GUARANTY. PBM's and United HealthCare's parent corporations
         will guaranty the fulfillment of all of the parties' financial and
         other obligations by the delivery of a fully executed Guaranty
         Agreement in the form set forth at ATTACHMENT 1 and ATTACHMENT 2.

         3.23.    CLAIMS AND REGULATORY INQUIRIES. PBM shall promptly, within
         ten (10) days, provide information to United HealthCare about all
         non-routine inquiries by regulatory departments, pharmaceutical
         manufacturers, attorneys, Covered Persons, or other individuals or
         entities with respect to PBM's services pursuant to this Agreement
         including but not limited to the denial of any claims or any causes of
         action.

<PAGE>

         3.24.    ***

SECTION 4.        OBLIGATIONS OF UNITED HEALTHCARE

         4.1.     OBLIGATIONS OF UNITED HEALTHCARE.

                  4.1.1.   United HealthCare will be the entity that contracts
                  with Health Plans and non-Health Plans related to the services
                  provided under this Agreement. Non-Health Plans include but
                  are not limited to entities, groups, competitors and
                  individuals. Such agreements between United HealthCare and
                  Health Plans and non-HealthPlans may provide for additional
                  services by United HealthCare and shall make provision for
                  fees and other terms that United HealthCare, in its
                  discretion, determines to establish.

                  4.1.2.   United HealthCare agrees to provide information
                  reasonably needed by PBM to administer its responsibilities
                  under this Agreement including (a) Benefit Contract and
                  Pharmacy Rider documents; (b) timely eligibility and
                  enrollment data on Covered Persons; (c) specific United
                  HealthCare customer information and needs; (d) participating
                  pharmacy information when PBM's pharmacy network is not
                  utilized or is used in addition to another participating
                  pharmacy network; (e) patient identifiable prescription drug
                  claims (including prescription drug claims from prior pharmacy
                  benefit management vendors); and (f) patient identifiable
                  medical claims reasonably necessary for PBM to implement and
                  operate its clinical management programs for United
                  HealthCare. Information shall be provided in a mutually
                  agreeable format.

                  4.1.3.   United HealthCare or Payor shall be solely
                  responsible for drafting United HealthCare's Benefit Contract
                  and Pharmacy Rider.

                  4.1.4.   United HealthCare shall identify its targeted
                  pharmacy growth and benefit objectives on at least an annual
                  basis and provide such objectives to PBM.

         4.2.     CLAIMS PAYMENT. United HealthCare shall establish a bank
         account(s) (the "Program Account") from which PBM will make claims
         payments as set forth below, using United HealthCare check stock.
         United HealthCare will pay PBM Administrative Fee payments, as set
         forth below through Automated Clearing House transfer. Banking
         arrangements may change from time to time subject to the mutual
         agreement of the parties.

                  4.2.1.   CLAIMS. PBM shall provide United HealthCare with a
                  bi-weekly consolidated statement of expected payments to be
                  made from the Program Account for services provided by PBM
                  under the Program during such claim cycle ***

***  Represents text deleted pursuant to a confidentiality treatment request
     filed with the Securities and Exchange Commission pursuant to Rule 24b-2
     under the Securities Exchange Act of 1934, as amended.

<PAGE>

                  4.2.2.   ADMINISTRATIVE FEES. PBM will provide United
                  HealthCare with an Administrative Fee statement in accordance
                  with PBM's four (4) week administrative fee cycle  ***
                  Within two (2) days after receipt of each statement from PBM
                  as set forth in this SECTION 4.2.2 above, United HealthCare
                  shall transfer such funds via Automated Clearing House
                  transfer.

         4.3.     REGULATORY COMPLIANCE. United HealthCare shall (a) maintain
         all material federal, state, and local licenses that are reasonably
         required to operate its business; (b) comply with all material
         applicable statutes and regulations; and, (c) make reasonable
         commercial efforts to cause Health Plans to comply with (a) and (b).

         4.4.     INSURANCE. United HealthCare agrees to maintain adequate
         insurance related to the operation of its business and its obligations
         under the Agreement.

         4.5.     CLAIMS AND REGULATORY INQUIRIES. United HealthCare shall
         promptly provide information to PBM within ten days about all
         non-routine inquiries by regulatory departments, pharmaceutical
         manufacturers, Covered Persons, or other individuals or entities with
         respect to the services provided by PBM under this Agreement.

         4.6.     MINIMUM PDL ENROLLMENT. United HealthCare agrees that it
         shall maintain a minimum of *** Health Plan Covered Persons and ***
         non-Health Plan Covered Persons receiving services under this
         Agreement including participating in United HealthCare's PDL by
         January 1, 2001 and throughout the term of this Agreement. ***

SECTION 5.        MUTUAL OBLIGATIONS

         5.1.     PHARMACY STRATEGIC COUNCIL. United HealthCare and PBM shall
         create a Pharmacy Strategic Council ("Strategic Council"), the members
         of which shall be three or four representatives from and designated by
         each of United HealthCare and PBM. The Strategic Council shall meet no
         less frequently than quarterly throughout the term of this Agreement
         and shall be responsible for (a) overseeing the performance of the
         parties under this Agreement; (b) enhancing communication of decisions
         made by the parties or the Strategic Council, (c) resolving disputes as
         directed by this Agreement; and (d) establishing a forum for

***  Represents text deleted pursuant to a confidentiality treatment request
     filed with the Securities and Exchange Commission pursuant to Rule 24b-2
     under the Securities Exchange Act of 1934, as amended.

<PAGE>

         the discussion of common strategic objectives of United HealthCare
         and PBM. United HealthCare shall be responsible to convene meetings
         of the Strategic Council.

         5.2.     EXPENSES. Except as expressly set forth in this Agreement,
         each of the parties shall bear the expenses incurred by it in
         connection with its performance under this Agreement.

         5.3.     AUDITS.

                  5.3.1.   United HealthCare shall keep reasonable documentation
                  of all Covered Persons related to this Agreement. PBM shall
                  have the right to review such data at reasonable times upon
                  reasonable notice

                  5.3.2.   PBM shall maintain adequate medical, financial and
                  administrative records related to Program services in a manner
                  consistent with the standards of the community and in
                  accordance with all applicable statutes and regulations
                  including, but not limited to, reasonable documentation of all
                  the data of Covered Persons related to PBM's services under
                  this Agreement to determine that PBM is performing its
                  obligation under the Agreement and correctly billing United
                  HealthCare. United HealthCare shall have the right to review
                  such data at reasonable times and upon reasonable notice. If
                  any audit reveals an underpayment or overpayment by United
                  HealthCare to PBM such discrepancy will be reported to PBM and
                  PBM will respond within forty-five (45) days. Any amounts PBM
                  deemed payable as a result thereof shall be promptly repaid to
                  the appropriate party with accrued interest (whether or not
                  this Agreement has terminated). If the parties disagree on the
                  amount to be repaid, the matter shall be sent to the Strategic
                  Council. This obligation shall survive the expiration or
                  earlier termination of this Agreement.

                  5.3.3.   PBM's agreements with pharmaceutical manufacturers
                  are subject to confidentiality agreements. Any audit of PBM's
                  agreements with pharmaceutical manufacturers conducted
                  pursuant to this Agreement, shall be conducted by a third
                  party public accounting firm reasonably acceptable to PBM
                  whose audit department is a separate stand alone function of
                  its business, subject to execution of a confidentiality
                  agreement, and shall include only those portions of such
                  pharmaceutical manufacturer agreements as necessary to
                  determine PBM's compliance with SECTION 5.5.2 in respect to
                  PDL Rebates.

         5.4.     PREFERRED DRUG LIST. Beginning on the Commencement Date and
         continuing through the term of this Agreement, PBM shall administer the
         United HealthCare PDL or other formularies as developed by United
         HealthCare from time to time pursuant to the Benefit Contract, Pharmacy
         Rider and this Agreement. All Health Plans shall participate in the PDL
         unless otherwise agreed, in writing, by United HealthCare and PBM.
         United HealthCare agrees to make reasonable commercial efforts to have
         non-Health Plan business utilize this PDL.

<PAGE>

                  5.4.1.   UNITED HEALTHCARE PREFERRED DRUG LIST. The Preferred
                  Drug List ("PDL") is a list that identifies those Federal Drug
                  Administration ("FDA") approved prescription drug products
                  that are preferred by United HealthCare for dispensing to
                  Covered Persons.

                           5.4.1.1. United HealthCare and its P&T Committee have
                           complete control in deciding what prescription drugs
                           are placed on the PDL from time to time.

                           5.4.1.2  . PBM shall have the right to present
                           clinical data and rationale to the P&T Committee in
                           conjunction with its evaluation of prescription
                           drugs, but shall not be a voting member of the P&T
                           Committee.

                  5.4.2.   PREFERRED DRUG LIST COMPLIANCE. United HealthCare has
                  in effect certain Program features designed to promote
                  prescribing of PDL drugs by participating providers,
                  dispensing of PDL drugs by Participating Pharmacies, and
                  awareness of the advantages of the PDL by Covered Persons.
                  Such features include, but are not limited to, incented
                  benefit plan designs and corresponding levels of Copayments.
                  United HealthCare shall notify PBM, in advance, of any
                  proposed Program modifications that are reasonably anticipated
                  to have a material effect on PDL compliance. Additionally,
                  United HealthCare shall participate in PBM's formulary
                  communications programs, which may include communications with
                  United HealthCare Covered Persons, Participating Pharmacies
                  and/or physicians, and financial incentives to Participating
                  Pharmacies for their participation in the PDL. PBM shall
                  notify United HealthCare, in advance, of all PDL
                  communications programs. United HealthCare shall approve and
                  may make reasonable changes to the content of such PDL
                  communication programs before they are provided to the above
                  United HealthCare groups and individuals.

                  5.4.3.   EXCLUSIVE PDL ADMINISTRATION. Beginning on the
                  Commencement Date, United HealthCare agrees that PBM will be
                  the exclusive administrator of the United HealthCare PDL for
                  those entities covered by the exclusivity requirements of
                  SECTION 9 of this Agreement. After the Commencement Date,
                  United HealthCare agrees not to accept any funds the receipt
                  of which would influence the selection of prescription drugs
                  for inclusion on United HealthCare's PDL without the express
                  written consent of PBM.

         5.5.     PDL REBATE PROGRAM. Pursuant to agreements entered into
         between PBM and certain pharmaceutical manufacturers ("Manufacturer
         Agreements"), PBM receives PDL Rebates from certain drug
         manufacturers as a result of the inclusion of such manufacturer's
         branded products on the PDL ("PDL Rebates"). *** United HealthCare
         acknowledges that PBM also receives and retains additional rebates
         and/or fees from certain manufacturers which may take into account
         various factors including the utilization of certain drugs within
         their respective

***  Represents text deleted pursuant to a confidentiality treatment request
     filed with the Securities and Exchange Commission pursuant to Rule 24b-2
     under the Securities Exchange Act of 1934, as amended.

<PAGE>

         therapeutic categories for PBM's book of business in aggregate as a
         result of various commitments, services and programs including, but
         not limited to, formularies, e.g. cost effective, incentive, volume,
         and market-share rebates.

                  5.5.1.   ***

                  5.5.2.   GOOD FAITH REBATE NEGOTIATIONS AND DISTRIBUTION.
                  ***

                  5.5.3.   CUSTOMER ERISA REQUIREMENTS. As part of the standard
                  Administrative Fee, PBM agrees to provide a report to United
                  HealthCare, which discloses ERISA required information about
                  rebates for United HealthCare customers. PBM agrees to assist
                  United HealthCare as reasonably requested in providing
                  disclosure information to each of its self-insured customers.
                  PBM acknowledges that as required by ERISA, United
                  HealthCare's self-insured customers retain the right to
                  terminate use of the PDL if customer does not agree with a PDL
                  selection.

                  5.5.4.   DRUG FORMULARY ONLY ADMINISTRATION. PBM shall, at
                  United HealthCare's request, provide drug formulary only
                  rebate administration for no additional fee for pharmacy
                  claims processed by other entities, if such business qualifies
                  for PDL Rebates. Such entities shall comply with PBM's data
                  format requirements and processes. The PDL Rebate Guarantee
                  shall not apply to Drug Formulary Only accounts.

                  5.5.5.   GOVERNMENT AND OTHER ACTIONS. In the event any
                  government action, including a change in statute or
                  regulation or a change in the interpretation of statute or
                  regulation that has a material adverse affect on the
                  availability of PDL Rebates, parties shall negotiate in
                  good faith *** to reflect the effect of such event.

         5.6.     CONVERSION COSTS AND SERVICES. It is the intent of this
         Agreement that PBM shall provide the majority of services required to
         convert United HealthCare's present pharmacy benefit management service
         from its current vendor to PBM. The parties agree that such costs for
         conversion services are included in the Administrative Fee. The
         conversion services provided by PBM shall include, but are not limited
         to: (a) communications to Covered Persons, physicians, pharmacies; (b)
         group training of United HealthCare pharmacy, sales and other staff;
         (c) development of Covered Person materials; (d) required modification
         of PBM's information systems; (e) development of the Minnesota
         Dedicated Pharmacy Management Unit; (f) analytical support for the
         conversion of models and tools for rebates, networks and guarantees;
         and (g) printing of physician and Covered Person PDLs. United
         HealthCare's only responsibility for conversion costs and services is
         limited to postage, pharmacy management

***  Represents text deleted pursuant to a confidentiality treatment request
     filed with the Securities and Exchange Commission pursuant to Rule 24b-2
     under the Securities Exchange Act of 1934, as amended.

<PAGE>

         implementation leadership, internal United HealthCare
         communications, limited internal United HealthCare information
         system programming, state filings, and servicing of customer calls
         coming directly into United HealthCare. The parties agree that if
         the conversion to PBM services results in unanticipated problems,
         the parties shall commit such additional resources, as mutually
         agreed, in order to implement this program in accordance with the
         terms of this Agreement.

SECTION 6.        CONFIDENTIALITY

         6.1.     CONFIDENTIAL AND PROPRIETARY INFORMATION. In fulfilling the
         objectives of this Agreement, United HealthCare and PBM may provide to
         each other or learn (directly or indirectly) certain information which
         a party considers to be confidential or proprietary ("Confidential
         Information"). Confidential Information shall include, without
         limitation, information relating to Covered Person and provider
         identities; reimbursement procedures; claims adjudication procedures;
         software and financial systems; the specific financial sections and
         provisions, specific operational aspects, financial guarantees
         contained in this Agreement, and other information relating to each
         party's business which is not generally available to the public. Each
         party's Confidential Information shall also include confidential,
         proprietary information which a third party has disclosed to a party,
         and which such party is obligated to maintain as confidential.
         Notwithstanding the foregoing, PBM and United HealthCare acknowledge
         the other party's obligation to provide its pharmaceutical
         manufacturers and customers with information generally regarding this
         Agreement and consistent with the foregoing agrees that such parties
         may disclose generally the terms of this Agreement.

                  6.1.1.   Neither party shall have any obligation to disclose
                  its Confidential Information to the other party, unless such
                  an obligation is set forth elsewhere in this Agreement.

                  6.1.2.   Each party agrees to maintain the secrecy of and not
                  to use or disclose the other party's Confidential Information,
                  except as required in order for a party to perform under this
                  Agreement. A party may disclose the other party's Confidential
                  Information only to the receiving party's directors, officer,
                  employees, agents and representatives (collectively, the
                  "Representatives"), but only if a Representative needs to know
                  the Confidential Information in order for the receiving party
                  to perform under this Agreement. The parties agree to inform
                  their Representatives of the confidential nature of the
                  disclosing party's Confidential Information, and each party
                  shall require any Representative, who is not an employee of
                  the receiving party to sign an appropriate confidentiality
                  agreement to protect the disclosing party's Confidential
                  Information from unauthorized use or disclosure. Each party
                  shall direct its Representatives to treat the other party's
                  Confidential Information confidentially, and not to use it,
                  other than to perform under this Agreement. Each party shall
                  be responsible for its Representatives' use and disclosure of
                  the other party's Confidential Information.

<PAGE>

                  6.1.3.   The restrictions in this SECTION 6.1 shall not apply
                  to: (a) information which is or becomes generally available to
                  the public, other than as a result of a disclosure by the
                  receiving party; (b) information a party obtains from a third
                  party which has no obligation to keep the information
                  confidential; (c) information which a party had in its
                  possession prior to receiving Confidential Information from
                  the disclosing party; (d) information which is independently
                  developed by a party without reference to the Confidential
                  Information disclosed by the other party; or (e) information
                  required to be disclosed by law, subject to compliance with
                  SECTION 6.1.4.

                  6.1.4.   The parties agree that if a party is required (by
                  subpoena, civil investigative demand or similar process) to
                  disclose the other party's Confidential Information, the
                  disclosing party shall notify the other party of the request
                  or requirement so that the other party may seek an appropriate
                  protective order or waive compliance with the sections or
                  provisions of this Agreement. The parties agree to exercise
                  their commercially reasonable efforts to assist each other in
                  obtaining a protective order or other reliable assurance that
                  confidential treatment will be accorded the Confidential
                  Information.

                  6.1.5.   Upon termination of this Agreement each party will
                  immediately discontinue use of the other party's Confidential
                  Information, and shall return the other party's Confidential
                  Information to it, or destroy the other party's Confidential
                  Information in its possession or control. However, each party
                  may retain the other party's Confidential Information to the
                  extent such Confidential Information has been used in or
                  integrated into reports, studies, analyses, compilations or
                  other documents in the receiving party's possession or
                  control. Any oral Information will continue to be subject to
                  the terms of this letter agreement. The parties agree that the
                  Confidentiality obligations of this SECTION 6 shall survive
                  termination of this Agreement.

         6.2.     PRIVACY OF INDIVIDUALLY IDENTIFIABLE HEALTH INFORMATION.
         United HealthCare and PBM will maintain the privacy and confidentiality
         of all individually identifiable information regarding Covered Persons
         and non-Covered Persons in accordance with all applicable statutes and
         regulations. PBM and United HealthCare shall require all employees to
         comply with this section. PBM agrees that all Covered Person
         information provided to PBM by United HealthCare belongs exclusively to
         United HealthCare.

         6.3.     UNITED HEALTHCARE'S DATABASE. Subject to SECTION 6.4 below,
         PBM agrees that all data of United HealthCare and its affiliates,
         including but not limited to Covered Person, customer, and provider
         related data, which is in PBM's possession, whether obtained by PBM in
         the course of providing services for United HealthCare or as a result
         of a data transfer between United HealthCare and PBM, belongs solely to
         United HealthCare. PBM has the right to possess and use such data only
         to the extent permitted by contracts between the parties or as
         otherwise provided in this Agreement subject to applicable legal
         restrictions. All information contained in United HealthCare's database
         and

<PAGE>

         systems belongs exclusively to United HealthCare. PBM shall not
         have direct access to United HealthCare's database and systems without
         signing a separate agreement with United HealthCare. PBM and United
         HealthCare recognize and agree that only information necessary for PBM
         performance under the Agreement shall be supplied by United HealthCare
         to PBM and PBM agrees that such data belongs exclusively to United
         HealthCare.

         6.4      PBM USE OF DATA. Notwithstanding the foregoing provisions of
         this SECTION 6, PBM may incorporate prescription data into PBM's
         prescription database when that database is used by PBM or provided to
         others for research, statistical, marketing, sales tracking or similar
         purposes. PBM agrees that if such prescription data is identifiable as
         to (a) Covered Persons, (b) employers and/or customers, and/or (d)
         United HealthCare, such identifiable information will be deleted or
         encrypted before it is provided to others. This section only applies to
         PBM's use of prescription data and does not apply to medical data.

SECTION 7.        INTELLECTUAL PROPERTY

         7.1.     Any Intellectual Property developed solely by PBM without
         using United HealthCare's Confidential Information shall remain the
         property of PBM. United HealthCare's right to use such PBM Intellectual
         Property shall be limited to those permitted by this Agreement or as
         otherwise agreed to in writing by the parties.

         7.2.     Any Intellectual Property developed solely by United
         HealthCare, without utilizing PBM's Confidential Information shall
         remain the property of United HealthCare. PBM's right to use such
         Intellectual Property shall be limited to those permitted by this
         Agreement or as otherwise agreed to in writing by the parties.

         7.3.     The parties agree that any Intellectual Property or work
         product: (a) created jointly by the parties; or (b) created by PBM
         under this Agreement; or (c) created by PBM upon United HealthCare's
         request (the "Work Product"), shall be the joint property of PBM and
         United HealthCare.

SECTION 8.        YEAR 2000 WARRANTY

PBM and United HealthCare warrant that (a) the goods and services to be provided
under this Agreement are in a state of Year 2000 Compliance, (b) the delivery of
the goods or services provided under this Agreement to parties will not be
adversely affected by Year 2000 Compliance (including without limitation the
Year 2000 Compliance of parties' information and/or operating systems or those
of any third parties that assist parties in the fulfillment of its obligations
under this Agreement); (c) the goods or services provided under this Agreement
to the parties will not affect or impair the Year 2000 Compliance of the parties
or any third party that has a business relationship with parties; and (d) The
parties have taken all necessary or appropriate steps to insure that it is in
compliance with the foregoing warranties. "Year 2000 Compliance" means the
ability of information or other systems to: (x) record, store, process, provide,
and insert true and accurate dates and calculations for dates including and
following January

<PAGE>

1, 2000; and (y) process records containing dates after January 1, 2000; and
(z) be interoperable in such respects with other systems used by the parties
PBM, the PBM's parties' vendors of any kind, or the parties, including
without limitation those which may deliver records to, receive records from
or otherwise interact with the goods or services provided by the parties.

SECTION 9.        EXCLUSIVITY

         9.1      Except as defined in SECTION 9 and its subparts, United
         HealthCare Services, Inc. agrees that it shall not enter into a
         contract, or any other similar arrangement, for pharmacy benefit
         management services with a third party other than PBM with respect to
         services beginning with the Commencement Date and continuing until the
         term of this Agreement expires or until the Agreement is terminated.

         9.2      This exclusivity section does not apply to any entities who:
         (a) are acquired by or merged with United HealthCare Services, Inc. and
         its affiliates and subsidiaries after this Agreement is executed; and
         (b) have a contractual relationship with another pharmacy benefit
         management company, at the time this Agreement is executed. The parties
         agree that in no event will United HealthCare be required to terminate
         another pharmacy benefit management vendor prior to the expiration of
         such vendor's contract. United HealthCare agrees to convert any such
         entity to coverage under this Agreement as soon as said entity's
         contract with such other pharmacy benefit manager expires or can be
         reasonably terminated without the payment of any additional fees,
         fines, penalties, or damages. United HealthCare shall use its
         reasonable commercial efforts to include such entities under this
         Agreement. Within sixty (60) days after execution of this Agreement,
         United HealthCare shall provide PBM with the name of any such entity
         that has a contractual relationship in effect with another pharmacy
         benefit manager, the termination date of said contract and the
         approximate number of persons covered under such contract.

         9.3      Notwithstanding the foregoing, United HealthCare shall not be
         required to include government-defined benefit programs or any entity
         for which United HealthCare provides management or administrative
         services but does not own a controlling interest unless such entity
         agrees to utilize the services contemplated by this Agreement.

         9.4      The parties acknowledge and agree that United HealthCare may
         not be able to transition all Covered Persons and participating Health
         Plans to PBM: (a) on the Commencement Date; and/or (b) immediately in
         the event of an acquisition, merger or similar transaction that occurs
         prior to or during the term of this Agreement. The parties agree that a
         reasonable transition of Covered Persons and participating Health Plans
         related to (a) and (b) of this section shall not be considered a breach
         of this SECTION 9 or of this Agreement. Notwithstanding the foregoing,
         United HealthCare shall transition all existing Health Plans that will
         be covered under this Agreement within a six (6) month period of the
         Commencement Date unless otherwise mutually agreed to by the parties.
         This is

<PAGE>

         not meant to restrict United HealthCare's ability to add other
         Health Plans and non-Health Plans during the term of this Agreement.

SECTION 10.         RENEGOTIATION DUE TO SUBSTANTIAL CHANGE

In the event of a Substantial Change the parties agree to renegotiate in good
faith so as to reflect as nearly as possible the economic factors that were the
basis for this Agreement prior to the Substantial Change. In the event such
renegotiations do not result in a mutually agreeable economic solution or the
parties are not able to agree as to whether a Substantial Change has occurred,
such issue shall be submitted pursuant to the dispute resolution procedure set
forth in SECTION 13. 6.

SECTION 11.       INDEMNIFICATION

         11.1.    United HealthCare agrees to indemnify and hold PBM, its
         subsidiaries and affiliates, and their respective officers, directors,
         agents and employees harmless from and against any and all liabilities,
         losses, proceedings, actions, damages, claims or expenses of any kind,
         including reasonable attorneys' fees, which result from (a) a breach by
         United HealthCare of any of its obligations under this Agreement or (b)
         the negligence or willful acts or omissions by United HealthCare, its
         agents, directors, officers, or employees, in connection with the
         representations, duties and obligations of United HealthCare under this
         Agreement.

         11.2.    PBM agrees to indemnify and hold United HealthCare, its
         subsidiaries and affiliates, and their respective officers, directors,
         agents and employees harmless from and against any and all liabilities,
         losses, proceedings, actions, damages, claims or expenses of any kind,
         including reasonable attorneys' fees, which result from (a) a breach by
         PBM of any of its obligations under this Agreement or (b) the
         negligence or willful acts or omissions by PBM, its agents, directors,
         officers, or employees, in connection with the representations, duties
         and obligations of PBM under this Agreement.

SECTION 12.       TERM AND TERMINATION

         12.1.    TERM. The term of this Agreement is for the period commencing
         on the Effective Date and ending December 31, 2005, with performance
         beginning on the Commencement Date, unless terminated earlier as
         outlined in SECTION 12.2.

         12.2.    TERMINATION. This Agreement may be terminated as follows:

                  12.2.1.  By either party, after a ten day notice period, in
                  the event of a payment default, unless such default is cured
                  within such notice period, unless the defaulting party is able
                  to give assurances to the other party's reasonable
                  satisfaction.

<PAGE>

                  12.2.2.  By either party, effective 30 days after not less
                  than 60 days written notice and cure period in the event of a
                  material breach other than a payment default of this Agreement
                  by the other party.

                  12.2.3.  By either party, effective immediately upon provision
                  of written notice to the other party, if the other party has
                  become insolvent or has been dissolved or liquidated, or makes
                  a general assignment for the benefit of creditors or has a
                  receiver appointed for a substantial portion of its assets.

                  12.2.4.  Automatically and without any notice or other action
                  on the part of either party if either party files, or has
                  filed against it, a petition in bankruptcy and such petition
                  is not dismissed within 60 days of the filing unless the party
                  which is not subject to such petition elects to waive such
                  termination prior to the expiration of such 60 day period.

                  12.2.5.  By either party immediately due to loss of insurance
                  or inability to self-insure as required under this Agreement.

                  12.2.6.  By United HealthCare, effective at a time reasonable
                  to transferring the pharmacy management services to a new
                  vendor but no later than 180 days after notice to PBM, if a
                  change of control of PBM occurs. For purposes of this Section,
                  "Change of Control" means: (a) any transaction or series of
                  transactions that cause 50% or more of the stock of PBM or
                  United HealthCare, as the case may be, to be held by
                  individuals or entities who are not stockholders of PBM or
                  United HealthCare, as the case may be, on the date hereof; or
                  (b) any sale of PBM assets or United HealthCare, as the case
                  may be, that are essential to the business of PBM or United
                  HealthCare, as the case may be; or (c) any merger where PBM or
                  United HealthCare, as the case may be, is not the surviving
                  entity.

         12.3.    UNITED HEALTHCARE CHANGE OF CONTROL. If during the term of the
         Agreement, there is a Change of Control of United HealthCare, as
         defined above, United HealthCare has the option to terminate the
         Agreement by providing PBM with ninety (90) days prior written notice
         and by paying to PBM within sixty days of termination date an amount
         equal to the aggregate payments that have been made to United
         HealthCare by PBM under Trend Guarantee and PDL Rebate Guarantee as
         addressed in the Financial Appendix. If any such termination occurs
         prior to payment by PBM of any Trend Guarantee or PDL Rebate Guarantee,
         United HealthCare shall pay to PBM within 60 days after such
         termination date an amount equal to the transition costs paid by PBM to
         United HealthCare pursuant to PROVISION 8 of the Financial Appendix.

         12.4.    INFORMATION TO COVERED PERSONS. PBM acknowledges the right of
         United HealthCare to inform Covered Persons of PBM's termination.

         12.5.    END OF TERM OR TERMINATION. In the event this Agreement is
         terminated for any reason prior to its expiration or upon the end of
         the term, PBM and United HealthCare shall cooperate reasonably with
         each other for up to a six

<PAGE>

         month period following such termination or expiration to effect a
         quality, cost-effective and smooth transition of United HealthCare's
         business previously operated or managed by PBM to United HealthCare
         or United HealthCare's designee. ***

                  12.5.1.  ***

                  12.5.2.  ***

                           12.5.2.1 ***

                           12.5.2.2. ***

                           12.5.2.3. ***

                           12.5.2.4. ***

                  12.5.3.  ***

SECTION 13.       GENERAL PROVISIONS

         13.1.    NOTICES. All notices or other communications required or
         permitted hereunder shall be in writing and shall be delivered
         personally, by commercial overnight delivery service, by facsimile or
         sent by certified, registered or express air mail, postage prepaid, and
         shall be deemed given when so delivered personally, by overnight
         delivery service or by facsimile, or if mailed, five days after the
         date of mailing, addressed as follows:

***  Represents text deleted pursuant to a confidentiality treatment request
     filed with the Securities and Exchange Commission pursuant to Rule 24b-2
     under the Securities Exchange Act of 1934, as amended.

<PAGE>

<TABLE>
        <S>                                      <C>
        ---------------------------------------- -------------------------------------
        IF TO PBM:                               IF TO UNITED HEALTHCARE:
        ---------------------------------------- -------------------------------------
        Merck Medco Managed Care, L.L.C.         United HealthCare Services, Inc.
        100 Summit Avenue                        9900 Bren Road East, P.O. Box 1459
        Montvale, New Jersey  07645-1753         Minnetonka, Minnesota 55343
        Attention: Jim Cooper, Esq.              Attention:  David Lubben, Esq.
        General Counsel                          General Counsel
        Facsimile No. (201) 782-7878             Facsimile No. (612) 936-0044
        ---------------------------------------- -------------------------------------
</TABLE>

         or to such other address or to such other person as may be designated
         by written notice given from time to time during the term of the
         Agreement by one party to the other.

         13.2.    RIGHT OF FIRST OFFER. Subject to such confidentiality
         arrangements as PBM may reasonably propose, PBM agrees to provide
         United HealthCare with reasonable prior notice of any event that might
         lead to a change of control of PBM (which shall include any sale of
         more than 10% of the voting securities to an entity not wholly owned by
         Parent. Any notice herein contemplated shall be given to the Chief
         Executive Officer or General Counsel of United HealthCare. Such advance
         notification shall be maintained strictly confidential to the Chief
         Executive Officer and General Counsel, except with the written consent
         of the person giving notification.

         13.3.    FORCE MAJEURE. Noncompliance with the obligations of this
         Agreement due to force majeure, laws or regulations of any government,
         war, civil commotion, destruction of production facilities and
         materials, fire, earthquake or storm, labor disturbances, shortage of
         materials, failure of public utilities or common carriers, and any
         other causes beyond the reasonable control of the applicable party,
         shall not constitute breach of contract.

         13.4.    ASSIGNMENT. United HealthCare may assign all or any of its
         rights and responsibilities under this Agreement to any entity
         controlling, controlled by or under common control with United
         HealthCare. United HealthCare may make such an assignment that is
         effective only after the party to which such rights or responsibilities
         are assigned (the "Assignee") no longer controls, is controlled by or
         is under common control of such party; provided, however, that any such
         entity is reasonably able to perform any responsibilities which it
         assumes. United HealthCare may assign its rights and responsibilities
         in such a way that both United HealthCare and Assignee share in the
         rights and responsibilities that, prior to such assignment, were solely
         those of United HealthCare. PBM may assign all or any of its rights and
         responsibilities under this Agreement to any entity controlling,
         controlled by, or under common control with such party. PBM and United
         HealthCare each acknowledge that persons and entities under contract
         with such party or in the case of United HealthCare, a Participating
         Plan, may perform certain administrative services under this Agreement.
         Other than above, United HealthCare and PBM agree that they shall not
         assign any of the rights and responsibilities under this Agreement
         without the prior written consent of the other party.

<PAGE>

         13.5.    AMENDMENT. Any amendments to this Agreement shall require
         written approval of the parties.

         13.6.    DISPUTE RESOLUTION. Any controversy or claim arising out of or
         relating to this Agreement or a breach of the Agreement shall initially
         be submitted to the Strategic Council for resolution. The Strategic
         Council shall have the authority to: (a) waive the controversy, claim
         or breach; (b) designate specific corrective or alternative action; (c)
         set a time period for certain performance; (d) submit the matter to
         mediation; or (e) allow a party to litigate the issue. Any action taken
         by the Strategic Council shall be evidenced by a written notice to both
         parties. During the period of time in which such issues are being
         examined by the Strategic Council or are under mediation or litigation,
         the parties shall proceed diligently with the performance of their
         duties under this Agreement in a businesslike and efficient manner. In
         the event the Strategic Council cannot resolve the matter within sixty
         days or the matter is not one which must be submitted to the Strategic
         Council, then within a reasonable time, a party or the Strategic
         Council may submit the matter to mediation or litigation in
         Minneapolis, Minnesota.

         13.7.    RELATIONSHIP BETWEEN UNITED HEALTHCARE AND PBM. The
         relationship between United HealthCare and PBM is solely that of
         independent contractors and nothing in this Agreement or otherwise will
         be construed or deemed to create any other relationship, including one
         of employment, agency or joint venture.

         13.8.    INVALIDITY/GOVERNING LAW. If any section or provision of this
         Agreement is finally declared or found to be illegal or unenforceable
         by a court of competent jurisdiction, both parties shall be relieved of
         all obligations arising under such section or provision, but if capable
         of performance, the remainder of this Agreement shall not be affected
         by such declaration or finding.

         13.9.    ACCREDITATION COMPLIANCE. PBM agrees to provide United
         HealthCare with reasonable assistance and cooperation in meeting all
         accreditation standards, including but not limited to National
         Committee for Quality Assurance and Joint Commission, applicable to the
         services provided pursuant to this Agreement.

         13.10.   NAME, SYMBOL AND SERVICE MARK. During the term of this
         Agreement, PBM and United HealthCare agree that they shall not use each
         other's name, symbol or logo, or service mark for any purpose
         whatsoever including without limitation in connection with marketing or
         publications describing, explaining, or otherwise discussing the
         Program without the prior approval of the other party.

         13.11.   HEADINGS. The headings of the various sections herein are for
         convenience of reference only and shall not define, limit or otherwise
         affect any of the terms or sections or provisions hereof.

         13.12.   ORIGINAL AGREEMENT. The parties agree that they shall execute
         two identical originals of this Agreement. Each party shall retain one
         of the originals. Each identical original shall serve as an original of
         the Agreement but all such originals together shall constitute a single
         original contract.

<PAGE>

         13.13.   GOVERNING LAW. This Agreement shall be governed by and
         construed in accordance with applicable Minnesota law without giving
         effect to conflict of law principle.

         13.14.   ENTIRE AGREEMENT. This Agreement and its Financial Appendix,
         Exhibits A and B, and Attachments 1 and 2 constitute the entire
         Agreement between the parties in regard to its subject matter.

         13.15.   REGULATORY APPROVAL. The parties agree and acknowledge that
         the terms of this Agreement may be subject to review by state
         regulators.

         13.16.   APPROVALS. Approvals required under this agreement shall not
         be unreasonably delayed or withheld.

         13.17.   ADDITIONAL AGREEMENTS. Upon request, PBM agrees to enter into
         an additional separate agreement with any United HealthCare affiliate
         receiving services hereunder reflecting the services received and
         obligations of such affiliate.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first set forth above.

<TABLE>
<S>                                                     <C>
UNITED HEALTHCARE SERVICES, INC.                        MERCK MEDCO MANAGED CARE, L.L.C.
9900 Bren Road East                                     100 Summit Avenue
Minnetonka, Minnesota  55343                            Montvale, New Jersey  07645-1753

By:________________________________                     By:________________________________

Date: ______________________________                    Date: ______________________________
</TABLE>

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