Document:

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                          UNITED HEALTHCARE CORPORATION
                     NONEMPLOYEE DIRECTOR STOCK OPTION PLAN
                   AMENDED AND RESTATED EFFECTIVE MAY 12, 1999

SECTION 1.        PURPOSE.

         This plan shall be known as the "United HealthCare Corporation
Nonemployee Director Stock Option Plan, Amended and Restated Effective May 12,
1999" and is hereinafter referred to as the "Plan." The purpose of the Plan is
to promote the interests of United HealthCare Corporation, a Minnesota
corporation (the "Company"), by enhancing its ability to attract and retain the
services of experienced and knowledgeable independent directors and by providing
additional incentive for these directors to increase their interest in the
Company's long-term success and progress. Nonqualified stock options or
restricted stock may be granted under the Plan.

SECTION 2.        ADMINISTRATION.

         The Plan shall be administered by a committee (the "Committee") of two
or more persons appointed by the Board of Directors of the Company. Grants of
stock options under the Plan and the amount and nature of the awards to be
granted shall be automatic as described in Section 6. Grants of restricted stock
under the Plan and the amount and nature of restricted stock to be granted shall
be at the discretion of the Committee. All questions of interpretation of the
Plan or of any options or restricted stock granted under it shall be determined
by the Committee and such determination shall be final and binding upon all
persons having an interest in the Plan.

SECTION 3.        PARTICIPATION IN THE PLAN.

         Each director of the Company shall be eligible to participate in the
Plan unless such director is also an employee of the Company or any subsidiary
or affiliate of the Company. Notwithstanding the foregoing, no single director
shall be eligible to acquire under the Plan more than 1% of the shares of the
Company's common stock outstanding as of May 12, 1999.

SECTION 4.        STOCK SUBJECT TO THE PLAN.

         Subject to the provisions of Section 11 hereof, the stock to be subject
to grants under the Plan shall be authorized but unissued shares of the
Company's common stock, par value $.01 per share (the "Common Stock"). Subject
to adjustment as provided in Section 11 hereof, the maximum number of shares
with respect to which grants may be authorized under this Plan shall be 850,000
shares of Common Stock. If a grant under the Plan expires or for any reason is
terminated prior to the exercise of an option or the lapse of a restriction on
the shares

<PAGE>

underlying a restricted stock grant, the shares underlying such grant shall
again be available for grants thereafter during the term of the Plan.

SECTION 5.        NONQUALIFIED STOCK OPTIONS.

         All options granted under the Plan shall be nonqualified stock options
that do not qualify as incentive stock options within the meaning of Section 422
of the Internal Revenue Code of 1986, as amended.

SECTION 6.        TERMS AND CONDITIONS OF OPTIONS.

         Each option granted under this plan shall be evidenced by a written
agreement or certificate in such form as the Committee shall from time to time
approve, which agreements or certificates shall comply with and be subject to
the following terms and conditions:

     A)   ANNUAL OPTION GRANTS. Each eligible director of the Company in office
          on the first business day immediately following each annual meeting of
          the Company's shareholders (the "Annual Option Grant Date") held
          during the term of the Plan shall be granted automatically an option
          to purchase 5,000 shares of Common Stock (the "Annual Option Grant"),
          granted in 4 installments of 1,250 each on the first business day of
          each fiscal quarter following the Annual Option Grant Date. A director
          must be in office on the day of each installment of the Annual Option
          Grant or that installment will be forfeited. Notwithstanding the
          foregoing, no director shall be granted an Annual Option Grant if such
          director has been granted an option under Section 6(b) hereof within
          12 months of such Annual Option Grant Date. Each option granted
          pursuant to this Section 6(a) shall have an exercise price as
          determined pursuant to Section 7 hereof.

     B)   INITIAL OPTION GRANTS. Each eligible director of the Company that is
          elected to the Board of Directors shall be granted automatically on
          the date that the director is elected to the Board of Directors an
          option to purchase 9,000 shares of Common Stock. Notwithstanding
          Section 6(e), the options granted pursuant to this Section 6(b) shall
          not be exercisable for a period of one year after the date on which
          they were granted, but thereafter will become exercisable as to
          one-third of the shares covered by the option on each anniversary date
          of the option grant. Each option granted pursuant to this Section 6(b)
          shall have an exercise price as determined pursuant to Section 7
          hereof.

     C)   OPTIONS NON-TRANSFERABLE. No option granted under the Plan shall be
          transferable by the optionee otherwise than by will or by the laws of
          descent and distribution as provided in Section 6(f) hereof. During
          the lifetime of the optionee, the options shall be exercisable only by
          such optionee. No option or interest therein may be transferred,
          assigned, pledged or hypothecated by

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          the optionee during such optionee's lifetime, whether by operation of
          law or otherwise, or be made subject to execution, attachment or
          similar process. The Committee shall have the authority to waive the
          provisions of this Section with respect to any grant of options under
          the Plan subject to such terms, conditions or limitations as they may,
          in their discretion, impose.

     D)   PERIOD OF OPTIONS. Options shall terminate upon the expiration of 10
          years from the date on which they were granted.

E)       EXERCISE OF OPTIONS.

          i.   Options granted under the Plan shall not be exercisable for a
               period of six months after the date on which they were granted,
               but thereafter will be exercisable in full at any time or from
               time to time during the term of the option, provided that options
               granted under the Plan may become fully exercisable upon a
               director's resignation from the Board of Directors or the death
               of the optionee.

          ii.  The exercise of any option granted hereunder shall only be
               effective at such time as counsel to the Company shall have
               determined that the issuance and delivery of Common Stock
               pursuant to such exercise will not violate any federal or state
               securities or other laws. An optionee desiring to exercise an
               option may be required by the Company, as a condition of the
               effectiveness of any exercise of an option granted hereunder, to
               agree in writing that all Common Stock to be acquired pursuant to
               such exercise shall be held for his or her own account without a
               view to any distribution thereof, that the certificates for such
               shares shall bear an appropriate legend to that effect and that
               such shares will not be transferred or disposed of except in
               compliance with applicable federal and state securities laws.

          iii. An optionee electing to exercise an option shall give written
               notice to the Company of such election and of the number of
               shares subject to such exercise. The full purchase price of such
               shares shall be tendered with such notice of exercise. Payment
               shall be made to the Company in cash (including check, bank draft
               or money order).

     F)   EFFECT OF DEATH. If the optionee shall die prior to the time the
          option is fully exercised, such option may be exercised at any time
          within one year after his or her death by the personal representatives
          or administrators of the optionee or by any person or persons to whom
          the option is transferred by will or the applicable laws of descent
          and distribution, to the extent of the full number of shares the
          optionee was entitled to purchase under the option on

<PAGE>

          the date of death and subject to the condition that no option shall be
          exercisable after the expiration of the term of the option.

SECTION 7.        OPTION EXERCISE PRICE.

         The option exercise price per share for the shares covered by each
option shall be equal to the "fair market value" of a share of Common Stock as
of the date on which the option is granted. For purposes of Section 6(a), the
date on which the option is granted shall be the date of each quarterly
installment. For the purposes of the Plan, the fair market value of the Common
Stock on a given date shall be the closing price of the Common Stock on such
date on the New York Stock Exchange, Inc. (the "NYSE") Composite Tape, if the
Common Stock is then being traded on the NYSE. If on the date as of which the
fair market value is being determined the Common Stock is not publicly traded,
the Committee shall make a good faith attempt to determine such fair market
value and, in connection therewith, shall take such actions and consider such
factors as it deems necessary or advisable.

SECTION 8.        GRANTS OF RESTRICTED STOCK

         The Committee may grant restricted stock to eligible directors from
time to time in its discretion. Any grant of restricted stock shall be evidenced
by an agreement in such form as the Committee shall from time to time approve,
which agreement shall comply with and be subject to the following terms and
conditions and any additional terms and conditions established by the Committee
that are consistent with the terms of the Plan:

          A)   GRANT OF RESTRICTED STOCK. Each grant of restricted stock under
               the Plan shall be for such number of shares of Common Stock as
               shall be determined by the Committee and set forth in an
               agreement containing the terms of the restricted stock grant.
               Each agreement shall set forth the restrictions which apply to
               the grant of restricted stock and the circumstances under which
               such restrictions lapse. The Committee may, in its discretion,
               waive any or all of the restrictions applicable to any or all
               outstanding grants of restricted stock, provided that for
               purposes of Section 16 of the Securities Exchange Act of 1934, as
               amended (the "Exchange Act"), restricted stock may not be
               transferable for a period of at least six months from the date of
               the grant.

          B)   DELIVERY OF COMMON SHARES AND RESTRICTIONS. At the time of a
               restricted stock grant, a certificate representing the number of
               shares of Common Stock granted thereunder shall be registered in
               the name of the grantee and shall bear a legend referencing the
               restrictions imposed thereon as the Committee, in its discretion,
               may determine. The grantee shall have all rights of a shareholder
               with respect to the restricted stock granted, including the right
               to receive dividends and the right to vote such shares, provided,
               however, that none of the shares of restricted stock may be sold,
               assigned, transferred, pledged, hypothecated or otherwise
               encumbered or disposed of during such restricted period or until
               after the fulfillment of any such other restrictive conditions.
               Any other securities of the Company and any other property
               (except for cash dividends) distributed with respect to the
               restricted stock shall be subject to the same restrictions, terms
               and conditions as the restricted stock.

          C)   TERMINATION OF RESTRICTIONS. At the end of the restricted period
               and provided that any other restrictive conditions of the
               restricted stock are met, or at such earlier time as otherwise
               determined by the Committee, all restrictions set forth in the
               agreement relating to the restricted stock award or in the Plan
               shall lapse as to the restricted stock subject thereto.

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SECTION 9.        TIME FOR GRANTING OPTIONS.

         Unless the Plan shall have been discontinued as provided in Section 12
hereof, the Plan shall terminate upon the expiration of 10 years from the date
upon which it takes effect as provided in Section 12 hereof. No grants shall be
made after such termination, but termination of the Plan shall not, without the
consent of the grantee, alter or impair any rights or obligations under any
option or restricted stock theretofore granted.

SECTION 10.       LIMITATION OF RIGHTS.

          A)   NO RIGHT TO CONTINUE AS A DIRECTOR. Neither the Plan, nor the
               granting of an option or restricted stock nor any other action
               taken pursuant to the Plan, shall constitute, or be evidence of,
               any agreement or understanding, express or implied, that the
               Company will retain a director for any period of time, or at any
               particular rate of compensation.

          B)   NO SHAREHOLDER RIGHTS FOR OPTIONS. An optionee shall have no
               rights as a shareholder with respect to the shares covered by
               options until the date of the issuance to such optionee of a
               stock certificate therefor, and no adjustment will be made for
               cash dividends or other rights for which the record date is prior
               to the date such certificate is issued.

SECTION 11.       ADJUSTMENTS TO COMMON STOCK.

         If there shall be any change in the Common Stock through merger,
consolidation, reorganization, recapitalization, stock dividend (of whatever
amount), stock split or other change in the corporate structure, appropriate
adjustments in the Plan and outstanding options shall be made. In the event of
any such changes, adjustments shall include, where appropriate, changes in the
aggregate number of shares subject to the Plan, the number of shares subject to
outstanding grants and the option exercise prices thereof in order to prevent
dilution or enlargement of rights previously granted.

SECTION 12.       EFFECTIVE DATE OF THE PLAN.

         The Plan shall take effect immediately upon its approval by the
affirmative vote of the holders of a majority of the shares present in person or
by proxy and voted at a duly held meeting of shareholders of the Company.

SECTION 13.       AMENDMENT OF THE PLAN.

         The Board may suspend or discontinue the Plan or revise or amend it in
any respect whatsoever; provided, however, that without approval of the
shareholders of the Company no revision or amendment shall be made that (a)
absent such

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shareholder approval, would cause Rule 16b-3 of the Exchange Act, or any
successor rule or regulation thereto, to become unavailable with respect to the
Plan, or (b) requires the approval of the Company's shareholders under any rules
or regulations of the NYSE that are applicable to the Company. The Board shall
not alter or impair any grant previously granted under the Plan without the
consent of the grantee.

SECTION 14.       GOVERNING LAW.

         The Plan and all determinations made and actions taken pursuant hereto
shall be governed by the laws of the State of Minnesota and construed
accordingly.

SECTION 15.       COMPLIANCE WITH EXCHANGE ACT.

         Transactions under the Plan are intended to comply with all applicable
conditions of Rule 16b-3 or its successors under the Exchange Act. To the extent
any provision of the Plan or action by the Committee fails to so comply, such
provision or action shall be deemed null and void to the extent permitted by law
and deemed advisable by the Committee.<PAGE>

                                REWARDING RESULTS

[GRAPHIC]

                           The Leadership Results Plan

        AN OVERVIEW OF YOUR PERFORMANCE-BASED INCENTIVE COMPENSATION PLAN

<PAGE>

LEADING THE WAY

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At UnitedHealth Group, we are dedicated to helping facilitate the exchange of
high quality health and well-being services by providing products and services
that offer value. As a leader, your individual performance affects the success
and continued growth of UnitedHealth Group and its businesses. To recognize the
contributions and commitment of our key people, we reward outstanding
performance through the Leadership Results Plan, our incentive compensation
plan.

The Leadership Results Plan supports our organizational structure by linking
incentive awards to the performance of each business segment or Corporate and
Enterprise Services unit and to your individual performance. In addition, the
Leadership Results Plan supports our overall incentive program framework for all
EMPLOYEES-REWARDING RESULTS-WHICH offers a competitive approach to total
compensation and the potential for significant incentive pools. The REWARDING
RESULTS incentive program reflects our values and how we operate as a
business-aligning with our commitment to integrity and our Principles of
Integrity and Compliance (formerly known as the Code of Conduct).

Incentive program funding for the Leadership Results Plan is determined by the
performance of each business segment and Corporate and Enterprise Services unit.
This incentive funding is enhanced or decreased by the aggregate Key Goal
accomplishments-in other words, it focuses on HOW we get the job done as part of
the end financial result.

While our company is regarded as an industry leader, we have yet to realize our
full potential. I am confident, however, that we have the talent, services and
most importantly, the leadership in place to move us forward. Your leadership
clearly affects how we create value for our stakeholders and our customers. As a
result, it affects your total compensation.

This brochure describes the Leadership Results Plan in more detail. Specific
information about the Key Goals and financial measures for your business segment
or Corporate and Enterprise Services unit will be published and forwarded to you
by your senior leadership team. Your support of REWARDING RESULTS is
important-and critical to driving our performance-so I encourage you to review
this information carefully.

I value your continued commitment and loyalty to UnitedHealth Group and its
businesses. Together, we can reach our full potential and achieve great success.

Sincerely,

/s/ William W. McGuire
WILLIAM W. MCGUIRE, M.D.
CHAIRMAN AND CHIEF EXECUTIVE OFFICER

<PAGE>

THE LEADERSHIP RESULTS PLAN:
HOW RESULTS BECOME REWARDS
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Our Leadership Results Plan is driven by the financial and Key Goal performance
of each business segment and Corporate and Enterprise Services unit as well as
the contribution of each leader. Generally, if you are in salary grade 29 or
above, you are eligible for the Leadership Results Plan.

HOW IT WORKS
Each business segment and Corporate and Enterprise Services unit has a pool of
incentive dollars based on eligible employees' base earnings, targets and
financial performance.

-    Your individual range of opportunity for an incentive award is based on
     your salary, grade level, overall level of responsibility within the
     organization and the market. This range is expressed as a percentage of
     your base earnings.

-    Your actual incentive award is based on your individual performance.

HOW INCENTIVE POOLS AND AWARDS ARE DETERMINED
Here are the performance measures that are used to determine incentive pools and
incentive awards:

-    Your business segment's or Corporate and Enterprise Services unit's
     performance;

-    Overall UnitedHealth Group performance, including Corporate earnings per
     share (for members of the Executive Leadership Team only); and

-    Your individual performance as compared to the goals and objectives
     established during the internal business planning process.

This blend of performance measurements helps ensure that UnitedHealth Group and
its businesses are working together toward common goals and allows us the
greatest opportunities for success.

Keep in mind, our internal targeted goals and measures always exceed the
externally anticipated results held by the investment community.

[SIDEBAR]

INCENTIVE POOLS

Incentive pools for 2000 will be closely aligned with the internal operating
income results of the business segments to reflect the operational alignment of
the organization. The Coporate and Enterprise Services unit will be aligned with
company-wide performance, including Corporate earnings per share.

<PAGE>

BUSINESS SEGMENT AND CORPORATE AND ENTERPRISE SERVICES' PERFORMANCE
Funding for the Leadership Results Plan is based on the performance of your
business segment or Corporate and Enterprise Services unit as follows:

-    The financial measure for business segments is internal operating income,
     or IOI (see below for definition);

          MORE ABOUT INTERNAL OPERATING INCOME (IOI)
          Each business segment is held accountable for achieving (and
          exceeding) internal operating income (IOI) goals. The year-end
          IOI results is a significant measure for establishing incentive
          levels under the REWARDING RESULTS program.

          IOI includes revenues, directly incurred expenditures, negotiated
          charges from other operating segments for services received (e.g.,
          claims processing support and IT usage) and amortization and
          depreciation related to the segment's capital investments.

          IOI excludes investment income, interest expense and Corporate
          allocations. However, IOI is a migratory concept and as our financial
          accounting segmentation processes progress, it is likely that certain,
          if not all, of these items will eventually be moved within the
          business segment accountability calculation in future years. This
          means that how we define IOI may change over time.

-    The financial measure for Corporate and Enterprise Services is Company-wide
     performance, including Corporate earnings per share;

-    If we achieve a specific operating income threshold (earnings per share for
     Corporate and Enterprise Services), 50 percent of payout target will be
     funded. This funding for incentive pools may reach as much as 125 percent
     of payout target. Opportunities for funding beyond 125 percent exist only
     at the discretion of the Office of the Chairman and Board; and

-    Key Goal performance is measured by how well your business segment or
     Corporate and Enterprise Services unit achieves strategic initiatives
     specific to your business (such as the following items which will be shared
     by all business segments: receivables management, salary increases and
     headcount management, non-payroll costs reduction targets, capital
     expenditure management, business and risk management, and operational
     quality and Human Capital metrics). The funding for incentive awards (as
     determined by financial measures) may be enhanced or decreased up to 30
     percent based on the Office of the Chair interpretation in aggregate of Key
     Goal accomplishments.

The strategic and financial initiatives for your business segment or Corporate
and Enterprise Services unit are determined jointly by senior leaders and the
Office of the Chairman.

INDIVIDUAL PERFORMANCE
Your individual performance and accomplishment of individual goals and
objectives are also considered in determining the actual amount of your
incentive award.

UNITEDHEALTH GROUP PERFORMANCE
If you are a member of the Executive Leadership Team, your incentive award may
be adjusted by up to 50 percent based on Company-wide performance, including
corporate earnings per share, as determined by the Office of the Chairman.

[SIDEBAR]

TIMING OF INCENTIVE AWARDS
Incentive awards generally are paid during the first quarter following the close
of the Corporate and Enterprise Services unit and business segment books for the
fiscal year.

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INCENTIVE OPPORTUNITY
Incentive awards are an important part of your total compensation package. Each
participant has a target and a range of opportunity (expressed in percentages)
for receiving an incentive award. This range is determined by your grade,
salary, overall level of responsibility within the organization, and market
competitiveness. Your individual award could range from 0 to 200% of your
target.

The diagram below provides an example of how the Leadership Results Plan for a
business segment might be funded based on your segment's internal operating
income results. For this example, let's assume an IOI of $200 million. The
Corporate and Enterprise Services unit will use Company-wide performance
including Corporate earnings per share, and will operate similarly to the IOI
diagram illustrated below.

[CHART]

OPPORTUNITY EXAMPLE
In the example below, assume the IOI goal of $200 million is met and Key Goal
accomplishments, as assessed by the Office of the Chairman of the Board, result
in an additional 10 percent. (Remember, evaluation of Key Goals may impact total
funding by +/- 30 percent.)

<TABLE>
<S>                                <C>
Result of IOI Funding              100%

ASSESSMENT OF KEY GOALS             10%
---------------------------------------

TOTAL INCENTIVE PLAN FUNDING       110%
</TABLE>

<PAGE>

LEADERSHIP RESULTS PLAN GUIDELINES

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HOW INCENTIVE AWARDS AFFECT BENEFIT PLAN CONTRIBUTIONS

Leadership Results Plan incentive awards are considered compensation under the
Employee Stock Ownership Plan and 401(k) Savings Plan unless you are eligible
for the Executive Savings Plans (ESPs). Due to the IRS limits imposed on the
401(k) Savings Plan and ESOP, employees eligible for the ESPs may only
contribute their incentive awards to the ESPs rather than the 401(k) Savings
Plan. See your EXECUTIVE SAVINGS PLAN ENROLLMENT BROCHURE for more information.

Following are specific guidelines for the Leadership Results Plan.

ELIGIBILITY
Generally, regular employees grade 29 and above are eligible for the Leadership
Results Plan. At this level, positions are directly accountable for achieving
key Corporate and Enterprise Services' or business segment results (generally to
manage staff) and determine and manage financial resources and budgets. Certain
positions are not eligible for the Leadership Results Plan due to participation
in other incentive plans, even if they meet the eligibility criteria.

PAYMENTS
Payment of year-end incentive awards will be made on regularly scheduled
bi-weekly paychecks. All payments will be taxed at the current flat supplemental
federal rate of 28 percent plus applicable state, local and Social Security
taxes. Incentive checks or pay advices (if you are enrolled in direct deposit)
are generally paid in first quarter following the plan year.

NEW HIRES AND PROMOTIONS

-    New hires are eligible for the plan for the current year, depending upon
     their date of hire. New hires and promotions to salary grade 29 or above IN
     THE FOURTH QUARTER of a plan year are eligible for the Leadership Results
     Plan in the following year but are not eligible to participate in the plan
     for the current year. However, employees who were eligible for the
     Performance Results Plan or Business Results Plan prior to their promotion
     in the fourth quarter are eligible for a year-end award under these plans.
     This award will be considered by the management staff in the division in
     which you are employed as of December 31 of the plan year.

-    If you are promoted to salary grade 29 or above during the year BEFORE THE
     FOURTH QUARTER, you will be eligible for the Leadership Results Plan at
     that time. The incentive funding will be based on a 5 percent target for
     the time you participated in the Performance Results Plan or Business
     Results Plan and your new target under the Leadership Results Plan for the
     remainder of the year. If you participated in a Sales Incentive Plan prior
     to your promotion, the incentive funding will be based solely on your
     Leadership Results Plan target from the date of promotion forward.

-    Participants eligible for a full- or partial-year Leadership Results Plan
     incentive award are not eligible for an award under the Performance Results
     Plan or Business Results Plan.

-    If you have multiple targets during the year, the incentive funding would
     be based on a combination of both your existing and new incentive targets.
     The targets are weighted according to the time you held each position.

                                       5

<PAGE>

LEAVES OF ABSENCE

-    If you are on a leave of absence during the performance measurement period,
     any pay received during the leave (e.g., short-term disability) will not be
     included in your eligible base earnings for purposes of funding the
     incentive pool.

-    If you are on a leave of absence and are scheduled to receive an incentive
     award, you will receive that award in a regularly scheduled paycheck
     shortly after your return to work. EMPLOYEES WHO DO NOT RETURN TO WORK FROM
     LEAVE ARE NOT ELIGIBLE TO RECEIVE AN INCENTIVE AWARD.

TRANSFERS
If a participant transfers during the year from a position that is eligible for
the Leadership Results Plan to a non-eligible position (e.g., sales), he or she
will not be eligible for a partial Leadership Results Plan incentive award.
EMPLOYEES MUST BE CLASSIFIED AS ELIGIBLE AT YEAR-END TO RECEIVE A LEADERSHIP
RESULTS PLAN AWARD.

TEMPORARY STATUS
If a participant is reclassified to temporary status, he or she is eligible for
an incentive award under the Leadership Results Plan award in the current year
if the reclassification occurs AFTER year-end.

REHIRES

-    Incentive funding for rehired employees will be based on eligible base
     earnings from the employee's date of rehire. Earnings from service prior to
     their rehire date will not be considered. This does not apply to rehired
     employees who were previously laid off during the plan year.

-    If you are rehired during the fourth quarter, you are not eligible to
     participate in the Leadership Results Plan. This does not apply to rehired
     employees who were previously laid off during the plan year.

TERMINATION AND DISCIPLINARY ACTION
To be eligible for an incentive award, you must be an active employee at the
time such payments are made (the check date). Employees who terminate employment
prior to the date incentive awards are paid out are not eligible for any awards.
Employees who have been on formal written disciplinary action anytime during the
performance year, including time of payout, are not generally eligible for
payment.

[SIDEBAR]

HOW INCENTIVE AWARDS AFFECT BENEFIT PLAN CONTRIBUTIONS

Leadership  Results Plan incentive awards are considered  compensation under the
Employee  Stock  Ownership  Plan and 401(k) Savings Plan unless you are eligible
for the Executive  Savings Plans  (ESPs).  Due to the IRS limits  imposed on the
401(k)  Savings  Plan  and  ESOP,  employees  eligible  for the  ESPs  may  only
contribute  their  incentive  awards to the ESPs rather than the 401(k)  Savings
Plan. See your EXECUTIVE SAVINGS PLAN ENROLLMENT BROCHURE for more information.

Incentive payments are included in benefits  compensation for employees enrolled
in the health and well-being benefit plans.

However,  incentive  awards are not  eligible as  contributions  to the Employee
Stock Purchase Plan.

                                       6
<PAGE>

TO SUM IT UP

--------------------------------------------------------------------------------
As a leader within your business segment or Corporate and Enterprise Services,
you directly influence business performance in a variety of ways--both through
your own actions and decisions and through leadership you provide to others.

REWARDING RESULTS illustrates our strong commitment to rewarding your high
performance. The Leadership Results Plan supports our organizational structure
by giving business segments control over setting targets, funding and
distributing incentive payments. And the plan offers you the opportunity to earn
incentive pay in addition to competitive base salary.

If you have questions after reading this material, contact your senior business
leader, your manager, or your Human Resources Generalist.

THERE IS NO GUARANTEE THAT ANY INCENTIVE PLAN PAYOUTS WILL BE MADE. UNITEDHEALTH
GROUP HAS THE EXCLUSIVE AND BINDING DISCRETION TO AMEND, TERMINATE OR INTERPRET
THE TERMS OR CONDITIONS OF THE INCENTIVE PLANS AT ANY TIME AND WITHOUT NOTICE.
CHANGES OR EXCEPTIONS TO THIS PLAN MUST BE MADE IN WRITING BY THE SENIOR VICE
PRESIDENT OF HUMAN RESOURCES OR THE CHIEF EXECUTIVE OFFICER OF THE COMPANY.
UNITEDHEALTH GROUP ALSO HAS THE DISCRETION TO UNILATERALLY MAKE BOTH LEGAL AND
FACTUAL DETERMINATIONS REGARDING THE PLAN. THE INCENTIVE PLANS ARE NOT AND SHALL
NOT BE DEEMED TO BE AN ENFORCEABLE CONTRACT OR AN EMPLOYEE BENEFIT PLAN WITHIN
THE MEANING OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT.

                                                                            3/00
                                       7

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