Document:

Employment Agreement between United HealthCare Services, Inc. and Tracy L. Bahl

 Exhibit 10(a) 
  
 EMPLOYMENT AGREEMENT 
  
 This Agreement, effective as of October 1, 1998 (the “Effective Date”), is made by and between Tracy L. Bahl (“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 25,000 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 Except as specifically superseded by this Agreement, Executive’s employment hereunder shall be subject to all of United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 President, Strategic Services 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. 
  
 2. Compensation. 
  
 A. Base Salary. Executive shall initially be paid a base annual salary in the amount of $250,000, 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. 
  

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 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 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 (a “Termination following a Change in Control”). 

  

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 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 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). 
  
 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 two 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. 
  

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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 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. 
  

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 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
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 definitely 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. 
  

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 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. 
  
 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. 
  

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 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. 
  
 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 
  

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 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:
	  	 

  
 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 
  

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 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. Backes

	 	 	 	 /s/ Tracy L. Bahl

	 Its
	 	 SR. V.P. H.R.
	 	 	 	 Tracy L. Bahl

  

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 Memorandum of Understanding 
  
 This memorandum of understanding, effective as of October 1, 1998, supplements and amends the employment agreement,
effective as of October 1, 1998, between United HealthCare Services, Inc. and Tracy L. Bahl as set forth below. 
  
 1. Non-Solicitation: The parties agree that the reference in Section 4(D)(iv) to “one year” is amended to read “6 months.”

  
 2. Non-Competition: The parties agree that the
references in Section 4(E) to “24 months” are amended to read “12 months.” 
  
 In all other respects the parties reaffirm and agree to be bound by the provisions of the Employment Agreement, effective as of the date set forth above. 
  

							
	 United HealthCare Services, Inc.
	 	 	 	 Executive

				
	 By
	 	 /s/    Robert J. Backes 

	 	 	 	 /s/ Tracy L. Bahl

	 Its
	 	 SR. V.P. H.R.
	 	 	 	 Tracy L. BahlAgreement for Supplemental Executive Retirement Pay

 Exhibit 10(b) 
  
 AGREEMENT 
 FOR 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PAY 
  
 This Agreement, effective as of April 1, 2004, is made by and between Stephen J. Hemsley (“Executive”) and
UnitedHealth Group Incorporated, a Minnesota corporation (“UnitedHealth Group”). 
  
 WITNESSETH: 
  
 WHEREAS, Executive
is currently employed as President and Chief Operating Officer of UnitedHealth Group; and 
  
 WHEREAS, the Employment Agreement, dated effective October 13, 1999, between Executive and UnitedHealth Group (“Executive’s Employment Agreement”) provides that UnitedHealth Group will use its best
efforts to establish and provide Executive a supplemental retirement benefit plan; and 
  
 WHEREAS, UnitedHealth Group and Executive desire to enter into this Agreement for supplemental employee retirement benefits; and 
  

WHEREAS, UnitedHealth Group and Executive agree that this Agreement satisfies the requirement in Executive’s Employment Agreement for UnitedHealth
Group to provide Executive a supplemental retirement benefit plan. 
  
 NOW, THEREFORE, based on the foregoing and the mutual promises which follow, the parties hereto agree as follows: 
  
 1. Supplemental Retirement Benefit. 
  
 1.1. When Available. Upon Executive’s termination of employment with UnitedHealth Group and all affiliates (except in the case
of Executive’s death), Executive shall receive a supplemental retirement benefit within sixty (60) days following the date of such termination, or, if later, on the earliest date that such payment would be fully deductible by UnitedHealth Group
for federal income tax purposes (but no later that one (1) year after such termination of employment). If Executive dies after such termination of employment but before payment, the payment Executive otherwise would have received shall be made to
Executive’s surviving spouse or, if no spouse survives him, to his estate. 
  
 1.2. Form of Benefit. UnitedHealth Group shall provide Executive a supplemental retirement benefit in the form of a lump sum
payment of cash. 
  
 1.3 Amount of Benefit.
The amount of the lump sum payment shall be the actuarial equivalent of the annual lifetime payments described below, assuming that such annual payments begin sixty (60) days following the Executive’s termination of employment with UnitedHealth
Group and end with the payment due on or immediately preceding the Executive’s death. If actual payment of the lump sum is made later than sixty (60) days following such termination of employment, such actuarial equivalent will be increased to
take into account the actual date of payment. For purposes of determining the actuarially equivalent lump sum, the 

 amount of each annual lifetime payment shall be equal to the product of the Executive’s accrued
benefit percentage and Executive’s average eligible compensation. 
  
 1.3.1. Accrued Benefit Percentage. The Executive’s accrued benefit percentage shall be determined in accordance with the following table based on Executive’s age at the time of Executive’s
termination of employment with UnitedHealth Group and all affiliates. 
  

			
	 Age

	 	 Accrued Benefit
 Percentage

	 51
	 	16.50%
	 52
	 	19.25%
	 53
	 	22.00%
	 54
	 	24.75%
	 55
	 	27.50%
	 56
	 	30.25%
	 57
	 	33.00%
	 58
	 	35.75%
	 59
	 	38.50%
	 60
	 	41.25%
	 61
	 	44.00%
	 62
	 	46.75%
	 63
	 	49.50%
	 64
	 	52.25%
	 65
	 	55.00%

  
 1.3.2.
Average Eligible Compensation. Executive’s average eligible compensation shall be equal to one-fifth (1/5th) of eligible compensation paid to Executive during the 60 months ending on the last day of the month immediately preceding the
month in which the Executive’s termination of employment with UnitedHealth Group and all affiliates occurs, subject to the following rules: 
  
 All determinations of eligible compensation shall be made on a cash basis (and not an accrual basis). 
  
 Eligible compensation shall mean Executive’s base annual
salary together with Executive’s annual cash incentive compensation. Executive’s base annual salary shall mean the regular base cash pay (before deductions for taxes and similar items) paid to Executive for services rendered to
UnitedHealth Group. Base annual salary does not include non-base pay such as benefits, perquisites, allowances, per diem payments, bonuses, incentive compensation, equity compensation, fringe benefits, special pay, awards or commissions. Base annual
salary includes regular base cash pay that is voluntarily contributed by Executive to a qualified retirement plan or nonqualified deferred compensation plan sponsored by UnitedHealth Group, but it shall not include earnings on those amounts. Such
amounts shall be included in base annual salary at the time they would otherwise have been paid to Executive. 
  

 2 

 Executive’s annual cash incentive compensation shall mean the Annual Incentive Award
paid to Executive under terms of the UnitedHealth Group Executive Incentive Plan, or any short-term annual incentive award paid to Executive under a predecessor or successor plan to the UnitedHealth Group Executive Incentive Plan. Annual cash
incentive compensation shall not include long-term Performance Awards paid or payable to Executive under terms of the UnitedHealth Group Executive Incentive Plan, any long-term incentive award paid or payable under any successor plan to the
UnitedHealth Group Executive Incentive Plan, the value of any equity or other stock-related compensation awarded or paid or payable to Executive or any compensation resulting from the sale of UnitedHealth Group stock or exercise of UnitedHealth
Group stock options. Annual cash incentive compensation includes annual cash incentive compensation that is voluntarily contributed by Executive to a qualified retirement plan or nonqualified deferred compensation plan sponsored by UnitedHealth
Group, but it shall not include earnings on those amounts. Such amounts shall be included in annual cash incentive compensation at the time they would otherwise have been paid to Executive. 
  
 1.3.3. Imputed Age. Depending on the nature of
Executive’s termination of employment with UnitedHealth Group and all affiliates (as determined under Executive’s Employment Agreement), Executive shall be imputed with additional years of age in accordance with the following table for the
purpose of calculating the Executive’s accrued benefit percentage: 
  

			
	 Termination

	 	 Imputed Age

		
	 By UnitedHealth Group without Cause, or by Executive for Good Reason other than under Clause (F) of Section 3(h)(iii) of Executive’s Employment
Agreement:
	 	 
		
	 ·        Within one (1) year of a Change in Control
	 	 Three (3) additional years of age.
  

		
	 ·        Not within one (1) year of a Change in Control
	 	 Two (2) additional years of age.
  

		
	 By Executive for Good Reason under Clause (F) of Section 3(h)(iii) of Executive’s Employment Agreement:
	 	 
		
	 ·        Within thirty (30) months after Change in Control
	 	Three (3) additional years of age.
		
	 ·        Not within thirty (30) months after Change in Control
	 	Two (2) additional years of age.
		
	 In the event of Permanent Disability
	 	One (1) additional year of age.

  

 3 

 1.4. Actuarial Factors. The actuarially equivalent value of any optional form of
benefit shall be determined by consulting actuaries who are retained by UnitedHealth Group and are acceptable to Executive (or, if applicable, to Executive’s surviving spouse). 
  
 1.5. Vesting. Executive shall be fully (100%) vested in his accrued benefit. 
  
 2. Death Benefit. If Executive dies while employed by UnitedHealth
Group or any affiliate, neither Executive (including Executive’s heirs and estate) nor Executive’s spouse will be entitled to a supplemental retirement benefit described in Section 1. Executive’s surviving spouse, however, shall be
entitled to a lump sum payment equal to the benefit calculated in accordance with Section 1 as if Executive had terminated employment with UnitedHealth Group and all affiliates the day before his death and without regard to Section 1.3.3. Payment of
the benefit shall commence within sixty (60) days following the date of Executive’s death or, if later, on the earliest date that such payment would be fully deductible by UnitedHealth Group for federal income tax purposes (but no later than
one (1) year after Executive’s death). Executive’s surviving spouse shall be the person to whom Executive is legally married on the date of Executive’s death. If such spouse survives Executive but dies before payment, the payment she
otherwise would have received shall be made to her estate. If no such spouse survives Executive or if Executive dies after termination of employment with UnitedHealth Group and all affiliates, no payments shall be made under this Agreement after
Executive’s death (except as provided under Section 1.1 of this Agreement). 
  
 3. Source of Payment. Benefits under this Agreement will be paid out of the general assets of UnitedHealth Group, and Executive (or Executive’s surviving spouse) will not have any preferred interest by way
of trust, escrow, lien or otherwise in any specific assets. The rights to payments to Executive (or Executive’s surviving spouse) under this Agreement will be solely those of an unsecured creditor of UnitedHealth Group. If a Change in Control
occurs, UnitedHealth Group will establish a “rabbi trust” for the benefit of Executive. UnitedHealth Group will fully fund such trust to provide benefits under this Agreement to the extent it can do so without causing Executive to include
such benefits for federal income tax purposes before receiving payment. 
  
 4. Nontransferability. Executive (and Executive’s surviving spouse) shall not have the right to assign, encumber or otherwise anticipate the payments to be made under this Agreement. The payments provided hereunder shall not be
subject to seizure for payment of any debts or judgments against Executive (or Executive’s surviving spouse). 
  
 5. Tax Withholding. UnitedHealth Group may deduct from any benefit payment (and transmit to the proper taxing authority) such amounts as it may be
required to withhold under any applicable federal, state or other law. 
  
 6. Parachute Payment Gross-Up. In the event that the benefit payments under this Agreement (and any other agreement between Executive and UnitedHealth Group) are “parachute payments” within the meaning of, and the
regulations, rulings and procedures under, sections 280G and 4999 of the Internal Revenue Code of 1986, as the same from time to time may be amended (the “Code”), or other related or successor sections and provisions of the Code at any
time applicable thereto, and become subject to excise taxes under section 4999 of the Code, UnitedHealth Group will pay Executive the amount of such excise taxes plus all federal, 
  

 4 

 state and local taxes applicable to UnitedHealth Group’s payment of such excise taxes, including any additional
excise taxes due under section 4999 of the Code with respect to payments made pursuant to this Section 6. All determinations required by this Section 6 shall be at UnitedHealth Group’s sole expense and shall forthwith be made by UnitedHealth
Group’s regularly engaged independent public accounting firm. In determining the amount of excise tax which would be payable by the Executive pursuant to section 4999 of the Code, such accounting firm shall take into consideration and apply all
non-includible, excludable and exempt amounts of compensation in accordance with section 280G of the Code. The parties shall cooperate fully by promptly providing such accounting firm all information required to complete such determinations. Such
determinations shall be set forth in a written statement and analysis thereof issued by such accounting firm which shall be promptly furnished to and shall be binding upon the parties. In the event Executive is subject to any audit with respect to
the amount of such excise taxes, Executive and UnitedHealth Group will mutually cooperate in contesting such audit; provided that UnitedHealth Group will pay the cost of such contest and will reimburse Executive on an after-tax basis for any
additional excise taxes payable as a result of such audit and for any income taxable to Executive as a result of UnitedHealth Group paying the cost of such audit and any additional excise taxes. In the event any such audit results in a refund,
Executive will turn over the refund to UnitedHealth Group less any income taxes incurred by Executive in respect of the receipt of the refund. 
  
 7. Claims Procedure. 
  
 7.1. Claims Procedure. Payments will be paid to Executive (and, if applicable, to Executive’s surviving spouse) automatically
without the requirement of an application for benefits. If Executive or any other person is in disagreement with any determination that has been made, a claim may be presented. 
  
 7.1.1. Making a Claim. The claim must be written and must be delivered to UnitedHealth Group’s
Board of Directors. Within ninety (90) days after the claim is delivered, the claimant will receive either: (a) a decision; or (b) a notice describing special circumstances requiring a specified amount of additional time (but no more than one
hundred eighty (180) days from the day the claim was delivered) and the date by which a decision is expected to be reached. 
  
 If the claim is wholly or partially denied, the claimant will receive a written or electronic notice specifying: (a) the reasons for
denial; (b) the provisions of this Agreement on which the denial is based; and (c) any additional information needed in connection with the claim and the reason such information is needed. Information concerning the claimant’s right to request
a review and right to file a civil action under section 502(a) of ERISA if a claim is denied upon review will also be given to the claimant. 
  
 7.1.2. Requesting Review of a Denied Claim. If a claimant’s claim is denied, the claimant must file a request to have the
denial reviewed. The request for review must be written and must be delivered to UnitedHealth Group’s Board of Directors within sixty (60) days after claimant’s receipt of written notice that the claim was denied. A request for review may
(but is not required to) include issues and comments the claimant wants considered in the review. Upon request, a claimant is 
  

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 entitled to receive free of charge reasonable access to and copies of the documents, records and
information relevant to the claim. Within sixty (60) days after delivery of a request for review, the claimant will receive either: (a) a decision; or (b) a notice describing special circumstances requiring a specified amount of additional time (but
no more than one hundred twenty (120) days from the day the request for review was delivered) and the date by which a decision is expected to be reached. 
  
 If the claim is wholly or partially denied, the claimant will receive a written or electronic notice specifying: (a) the reasons for
denial; (b) the provisions of this Agreement on which the denial is based; and (c) notice that upon request the claimant is entitled to receive free of charge reasonable access to and copies of the relevant documents, records and information used in
the claim process. Information concerning the claimant’s right to file a civil action under section 502(a) of ERISA will also be given to the claimant. 
  
 7.1.3. In General. All decisions on claims and on reviews of denied claims will be made by UnitedHealth Group’s Board of
Directors. The Board of Directors may, in its discretion, hold one or more hearings. The claimant may, at the claimant’s own expense, have an attorney or other representative act on behalf of the claimant, but the Board of Directors reserves
the right to require a written authorization. 
  
 7.1.4. Disability Claims. In general, the foregoing rules that apply to claims and review of claims also apply to claims based on disability. There are, however, certain different time frames and special rules that apply to claims
based on disability. The time period for responding to a claim is shortened from ninety (90) days to forty-five (45) days. The time to respond may be extended by thirty (30) days and then an additional thirty (30) days. A claimant must file a
request for review within one hundred eighty (180) days after the date that the claimant received notice that the claim had been denied. The time period for responding to a request for review is shortened from sixty (60) days to forty-five (45)
days. The time to respond may be extended by forty-five (45) days. 
  
 8. Effect of Agreement. This Agreement embodies the entire understanding between the parties with respect to the subject matter of this Agreement and supersedes any and all prior understandings and agreements, oral or written,
relating thereto. Any amendment of this Agreement must be in writing and signed by both parties. 
  
 9. Severability. Should any provision of this Agreement be held to be void, invalid, unenforceable or illegal, the validity and enforceability of
the other provisions shall not be affected thereby. 
  
 10.
Non-Waiver. Failure of either party to enforce any provision of this Agreement shall not constitute or be construed as a waiver of such provision nor of the right to enforce such provision. 
  
 11. Regulatory and Tax Status of Agreement. For purposes of the ERISA,
this Agreement is intended to be an unfunded pension plan maintained by UnitedHealth Group for a select group of management or highly compensated employees, and UnitedHealth Group will file 
  

 6 

 with the Department of Labor the statement described in 29 C.F.R. §2520.104-23. For purposes of income and social
security taxes, the benefits provided under this Agreement are intended to provide unfunded nonqualified deferred compensation. 
  
 12. Governing Law. To the extent not governed by federal law, this Agreement shall be governed by and construed under the laws of the State of
Minnesota. 
  
 13. Interpretation. Capitalized terms not
defined in this Agreement shall have the meaning given to them in the Executive’s Employment Agreement. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date first written above. 
  
  

					
	 	 	 EXECUTIVE:

			
	 	 	 By
	 	 /s/    Stephen J. Hemsley

	 	 	 	 	 Stephen J. Hemsley

		
	 	 	 UNITEDHEALTH GROUP INCORPORATED

			
	 	 	 By
	 	 /s/    David J. Lubben

  
  
  
  

 7

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