Document:

exv4w27

 

Exhibit 4.27

UNITEDHEALTH GROUP INCORPORATED

AND

                                      , AS WARRANT AGENT

DEBT SECURITIES

WARRANT AGREEMENT

DATED AS OF                                       

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page

	ARTICLE I ISSUANCE, EXECUTION AND AUTHENTICATION OF WARRANT
CERTIFICATES
	 	 	1	 
	SECTION 1.1 Issuance of Warrant Certificates
	 	 	1	 
	SECTION 1.2 Form of Warrant Certificates
	 	 	2	 
	SECTION 1.3 Execution and Authentication of Warrant Certificates
	 	 	2	 
	SECTION 1.4 Temporary Warrant Certificates
	 	 	3	 
	SECTION 1.5 Payment of Taxes
	 	 	3	 
	SECTION 1.6 Definition of Holder
	 	 	3	 
	ARTICLE II WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS
	 	 	4	 
	SECTION 2.1 Warrant Price
	 	 	4	 
	SECTION 2.2 Duration of Warrants
	 	 	4	 
	SECTION 2.3 Exercise of Warrants
	 	 	4	 
	ARTICLE III [REGISTRATION;] EXCHANGE, TRANSFER AND SUBSTITUTION OF WARRANT CERTIFICATES
	 	 	5	 
	SECTION 3.1 [Registration;] Exchange and Transfer of Warrant Certificates
	 	 	5	 
	SECTION 3.2 Mutilated, Destroyed, Lost or Stolen Warrant Certificates
	 	 	6	 
	SECTION 3.3 Persons Deemed Owners
	 	 	6	 
	SECTION 3.4 Cancellation of Warrant Certificates
	 	 	7	 
	ARTICLE IV OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OR WARRANT CERTIFICATES
	 	 	7	 
	SECTION 4.1 No Rights as Holders of Warrant Debt Securities
Conferred by Warrants or Warrant Certificates
	 	 	7	 
	SECTION 4.2 Holder of Warrant Certificate May Enforce Rights
	 	 	7	 
	ARTICLE V CONCERNING THE WARRANT AGENT
	 	 	8	 
	SECTION 5.1 Warrant Agent
	 	 	8	 
	SECTION 5.2 Conditions of Warrant Agent’s Obligations
	 	 	8	 
	SECTION 5.3 Resignation, Removal and Appointment of Successors
	 	 	9	 
	ARTICLE VI MISCELLANEOUS
	 	 	11	 
	SECTION 6.1 Rights and Duties of Successor Corporation
	 	 	11	 
	SECTION 6.2 Amendment
	 	 	11	 
	SECTION 6.3 Notices and Demands to the Corporation and Warrant Agent
	 	 	11	 
	SECTION 6.4 Addresses
	 	 	11	 

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	 	 	Page

	SECTION 6.5 Governing Law
	 	 	12	 
	SECTION 6.6 Delivery of Prospectus
	 	 	12	 
	SECTION 6.7 Obtaining of Governmental Approvals
	 	 	12	 
	SECTION 6.8 Persons Having Rights Under Warrant Agreement
	 	 	12	 
	SECTION 6.9 Headings
	 	 	12	 
	SECTION 6.10 Counterparts
	 	 	12	 
	SECTION 6.11 Inspection of Agreement
	 	 	12	 

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UNITEDHEALTH GROUP INCORPORATED

FORM OF DEBT SECURITIES WARRANT AGREEMENT

     DEBT SECURITIES WARRANT AGREEMENT, dated as of                     between
UnitedHealth Group Incorporated, a corporation duly organized and existing
under the laws of the State of Delaware (the “Company”) and                    , a
[corporation] [national banking association] organized and existing under the
laws of                    , as Warrant Agent (herein called the “Warrant Agent”).

     WHEREAS, the Company has entered into an indenture dated as of [                   
(the “Senior Indenture”), with                    , as trustee (such trustee, and any
successors to such trustee, herein called the “Senior Trustee”), providing for
the issuance from time to time of its unsecured and unsubordinated debt
securities, to be issued in one or more series as provided in the Senior
Indenture (the “Debt Securities”);] 
[                    (the “Subordinated Indenture”),
with                    , as trustee (such trustee, and any successors to such trustee,
herein called the “Subordinated Trustee”), providing for the issuance from time
to time of its subordinated debt securities, to be issued in one or more series
as provided in the Subordinated Indenture (the “Debt Securities”);]

     WHEREAS, the Company proposes to sell [If Other Debt Securities and
Warrants —title of Debt Securities being offered (the “Other Debt Securities”)
with] warrant certificates (such warrant certificates and other warrant
certificates issued pursuant to this Agreement herein called the “Warrant
Certificates”) evidencing one or more warrants (the “Warrants” or,
individually, a “Warrant” representing the right to purchase [title of Debt
Securities purchasable through exercise of Warrants] (the “Warrant Debt
Securities”); and

     WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company, and the Warrant Agent is willing so to act, in connection with the
issuance, exchange, exercise and replacement of the Warrant Certificates, and
in this Agreement wishes to set forth, among other things, the form and
provisions of the Warrant Certificates and the terms and conditions on which
they may be issued, exchanged, exercised and replaced;

     NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained, the parties hereto agree as follows:

ARTICLE I

ISSUANCE, EXECUTION AND AUTHENTICATION OF

WARRANT CERTIFICATES

     SECTION 1.1 Issuance of Warrant Certificates. [If Warrants alone—Upon
issuance, each Warrant Certificate shall evidence one or more Warrants.] [If
Other Debt Securities and Warrants—Warrant Certificates shall be [initially]
issued in units with the Other Debt Securities and shall [not] be separately
transferable [before                     (the “Detachable Date”). The Warrant
Certificate or Certificates included in each such unit shall evidence an
aggregate of                     Warrants for each $                    principal
amount of Other Debt Securities included in such unit.] Each Warrant
evidenced thereby shall represent the right, subject to the provisions
contained herein and therein, to purchase Warrant Debt Securities in the
aggregate principal amount of $                   .

 

 

     SECTION 1.2 Form of Warrant Certificates. The Warrant Certificates
(including the Form(s) of Exercise [and Assignment] to be set forth on the
reverse thereof) shall be in substantially the from set forth in Exhibit A
hereto, shall be printed, lithographed or engraved on steel engraved borders
(or in any other manner determined by the officers executing such Warrant
Certificates, as evidenced by their execution of such Warrant Certificates) and
may have such letters, numbers or other marks of identification and such
legends or endorsements placed thereon as may be required to comply with any
law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any securities exchange on which the Warrant Certificates may be
listed or as may, consistently herewith, be determined by the officers
executing such Warrant Certificates, as evidenced by their execution of the
Warrant Certificates.

     SECTION 1.3 Execution and Authentication of Warrant Certificates. The
Warrant Certificates shall be executed on behalf of the Company by its Chairman
of the Board, it President or one of its Vice Presidents under its corporate
seal reproduced thereon attested by its Secretary or one of its Assistant
Secretaries. The signature of any of these officers on the Warrant
Certificates may be manual or facsimile.

     Warrant Certificates evidencing the right to purchase an aggregate
principal amount not exceeding $                    of Warrant Debt Securities (except
as provided in Section 1.4, 2.3(c), 3.1 and 3.2) may be executed by the Company
and delivered to the Warrant Agent upon the execution of this Warrant Agreement
or from time to time thereafter. The Warrant Agent shall, upon receipt of
Warrant Certificates duly executed on behalf of the Company, authenticate
Warrant Certificates evidencing Warrants representing the right to purchase up
to $                    aggregate principal amount of Warrant Debt Securities and shall
deliver such Warrant Certificates to or upon the order of the Company.
Subsequent to such original issuance of the Warrant Certificates, the Warrant
Agent shall authenticate a Warrant Certificate only if the Warrant Certificate
is issued in exchange or substitution for one or more previously authenticated
Warrant Certificates [If registered Warrants—or in connection with their
transfer], as hereinafter provided.

     Each Warrant Certificate shall be dated the date of its authentication by
the Warrant Agent.

     No Warrant Certificate shall be entitled to any benefit under this
Agreement or be valid or obligatory for any purpose, and no Warrant evidence
thereby shall be exercisable, until such Warrant Certificate has been
authenticated by the manual signature of the Warrant Agent. Such signature by
the Warrant Agent upon any Warrant Certificate executed by the Company shall be
conclusive evidence, and the only evidence, that the Warrant Certificate so
authenticated has been duly issued hereunder.

     Warrant Certificates bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased
to hold such offices prior to the authentication and delivery of such Warrant
Certificates or did not hold such offices at the date of such Warrant
Certificates.

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     SECTION 1.4 Temporary Warrant Certificates. Pending the preparation of
definitive Warrant Certificates, the Company may execute, and upon the order of
the Company the Warrant Agent shall authenticate and deliver, temporary Warrant
Certificates which are printed, lithographed, typewritten, mimeographed or
otherwise produced substantially of the tenor of the definitive Warrant
Certificates in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers
executing such Warrant Certificates may determine, as evidenced by their
execution of such Warrant Certificates.

     If temporary Warrant Certificates are issued, the Company will cause
definitive Warrant Certificates to be prepared without unreasonable delay.
After the preparation of definitive Warrant Certificates, the temporary Warrant
Certificates shall be exchangeable for definitive Warrant Certificates upon
surrender of the temporary Warrant Certificates at the corporate trust office
of the Warrant Agent [or                   ], without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Warrant Certificates,
the Company shall execute and the Warrant Agent shall authenticate and deliver
in exchange therefor definitive Warrant Certificates representing the same
aggregate number of Warrants. Until so exchanged, the temporary Warrant
Certificates shall in all respects be entitled to the same benefits under this
Agreement as definitive Warrant Certificates.

     SECTION 1.5 Payment of Taxes. The Company will pay all stamp taxes and
other duties, if any, to which, under the laws of the United States of America
or any State or political subdivision thereof, this Agreement or the original
issuance of the Warrant Certificates may be subject.

     SECTION 1.6 Definition of Holder. The term “Holder” as used herein shall
mean [If Other Debt Securities and Warrants which are not immediately
detachable—, prior to the Detachable Date, the [bearer] [registered owner] of
the Other Debt Securities to which such Warrant Certificates was initially
attached, and, after such Detachable Date,] [the bearer of such Warrant
Certificate] [the person in whose name at the time such Warrant Certificate
shall be registered upon the books to be maintained by the Warrant Agent for
that purpose pursuant to Section 3.01.]. [If Other Debt Securities and
Warrants which are not immediately detachable-Prior to the Detachable Date, the
Company will, or will cause the registrar of the Other Debt Securities to make
available to the Warrant Agent current information as to Holders of the Other
Debt Securities.]

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ARTICLE II

WARRANT PRICE, DURATION AND

EXERCISE OF WARRANTS

     SECTION 2.1 Warrant Price.1 During the period from                    ,      
through and including                    ,      , each Warrant shall entitle the Holder
thereof, subject to the provisions of this Agreement, to purchase from the
Company the principal amount of Warrant Debt Securities stated in the Warrant
Certificate at the Warrant Price of      % of the principal amount thereof [plus
accrued amortization, if any, of the original issue discount of the Warrant
Debt Securities] [plus accrued interest, if any, from the most recent date from
which interest shall have been paid on the Warrant Debt Securities or, if no
interest shall have been paid on the Warrant Debt Securities, from                    ,
     ]. During the period from                    ,       through and including
                   ,      , each Warrant shall entitled the Holder thereof, subject to
the provisions of this Agreement, to purchase from the Company the principal
amount of Warrant Debt Securities stated in the Warrant Certificate at the
Warrant Price of                    % of the principal amount thereof [plus accrued
amortization, if any, of the original issue discount of the Warrant] [plus
accrued interest, if any, from the most recent date from which interest shall
have been paid on the Warrant Debt Securities or, if no interest shall have
been paid on the Warrant Debt Securities, from                    ,      ]. [In each
case, the original issue discount ($                    for each $1,000 principal amount
of Warrant Debt Securities) will be amortized at a                    % annual rate,
computed on a[n] [semi-] annual basis [using a 360-day year consisting of
twelve 30-day months].] Such Warrant Price of each Warrant is referred to in
this Agreement as the “Warrant Price.”

     SECTION 2.2 Duration of Warrants. Any Warrant evidence by a Warrant
Certificate may be exercised at any time, as specified herein, on or after [the
date thereof] [                   ,      ] and at or before [     ] p.m., [City] time, on
                   ,      , (the “Expiration Date”). Each Warrant not exercised at or
before such time on the Expiration Date shall become void, and all rights of
the Holder of the Warrant Certificate evidencing such Warrant under this
Agreement or otherwise shall cease.

     SECTION 2.3 Exercise of Warrants. (a) During the period specified in
Section 2.02, any whole number of Warrants may be exercised by surrendering the
Warrant Certificate evidencing such Warrants at the place or at the places set
forth in the Warrant Certificate, with the purchase form set forth in the
Warrant Certificate duly executed, accompanied by payment in full, in lawful
money of the United States of America, [in cash or by certified check or
official bank check in New York Clearing House funds] [by wire transfer in
immediately available funds], of the Warrant Price for each Warrant exercised.
The date on which payment in full of the Warrant Price for a Warrant and the
duly executed and completed Warrant Certificate are received by the Warrant
Agent shall be deemed to be the date on which such Warrant is exercised. The
Warrant Agent shall deposit all funds received by it as payment for the
exercise of Warrants to the account of the Company maintained with it for such
purpose and shall advise the Company by telephone at the end of each day on
which such a payment is received of the amount so deposited to its account.
The Warrant Agent shall promptly confirm such telephonic advice to the Company
in writing.

	 	 	1 Complete and modify the provision of this Section as appropriate to reflect
the exact terms of the Warrants and the Warrant Debt Securities.

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     (b) The Warrant Agent shall from time to time, as promptly as
practicable after the exercise of any Warrants in accordance with the
terms and conditions of this Agreement and the Warrant Certificates,
advise the Company and the Trustee of (i) the number of Warrants so
exercised, (ii) the instructions of each Holder of the Warrant
Certificates evidencing such Warrants with respect to delivery of the
Warrant Debt Securities to which such Holder is entitled upon such
exercise, and instructions of such Holder as to delivery of Warrant
Certificates evidencing the balance, if any, of the Warrants remaining
after such exercise, and (iii) such other information as the Company or
the Trustee shall reasonably require.

     (c) As soon as practicable after the exercise of any Warrants, the
Company shall issue, pursuant to the Indenture, in authorized
denominations, to or upon the order of the Holder of the Warrant
Certificate evidencing such Warrants, the Warrant Debt Securities to
which such Holder is entitled in fully registered form, registered in
such name or names as may be directed by such Holder; and, if fewer than
all of the Warrants evidenced by such Warrant Certificate were exercised,
the Company shall execute and an authorized officer of the Warrant Agent
shall manually authenticate and deliver a new Warrant certificate
evidencing the number of Warrants remaining unexercised.

     (d) The Company shall not be required to pay any stamp or other tax
or other governmental charge required to be paid in connection with any
transfer involved in the issue of the Warrant Debt Securities; and in the
event that any such transfer is involved, the Company shall not be
required to issue or delivery any Warrant Debt Securities until such tax
or other charge shall have been paid or it has been established to the
Company’s satisfaction that no such tax or other charge is due.

ARTICLE III

[REGISTRATION;] EXCHANGE, TRANSFER AND

SUBSTITUTION OF WARRANT CERTIFICATES

     SECTION 3.1 [Registration;] Exchange and Transfer of Warrant Certificates.
[If registered Warrants—The Warrant Agent shall keep, at its corporate trust
office [and at                    ], books in which, subject to such reasonable
regulations as it may prescribe, it shall register Warrant Certificates and
transfer of outstanding Warrant Certificates.]

     [If Other Debt Securities and Warrants which are not immediately
detachable—Prior to the Detachable Date, a Warrant Certificate may be exchanged
or transferred only together with the Other Debt Security to which such Warrant
Certificate was initially attached, and only for the purpose of effecting, or in conjunction with, an exchange or transfer of
such Other Debt Securities. Additionally, on or prior to the Detachable Date,
each transfer of an Other Debt Security [on the register of the Other Debt
Securities] shall operate also to transfer the Warrant Certificate or
Certificates to which such Other Debt Security was initially attached. After
the Detachable Date, upon] [If Other Debt Securities and Warrants which are
immediately

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detachable or if Warrants alone—Upon] current at the corporate
trust office of the Warrant Agent [or                    ] of Warrant Certificates
properly endorsed [or accompanied by appropriate instruments of transfer] and
accompanied by written instructions for [transfer or] exchange, all in form
satisfactory to the Company and the Warrant Agent, such Warrant Certificates
may be exchanged for other Warrant Certificates [If registered Warrants—or may
be transferred in whole or in part]; provided that Warrant Certificates issued
in exchange for [or upon transfer of] surrendered Warrant Certificates shall
evidence the same aggregate number of Warrants and the Warrant Certificates so
surrendered. No service charge shall be made for any exchange [or transfer] of
Warrant Certificates, but the Company may require payment of a sum sufficient
to cover any stamp or other tax or governmental charge that may be imposed in
connection with any such exchange [or transfer]. Whenever any Warrant
certificates are so surrendered for exchange [or transfer], the Company shall
execute and an authorized officer of the Warrant Agent shall manually
authenticate and deliver to the person or persons entitled thereto a Warrant
Certificate or Warrant Certificates as so requested. The Warrant Agent shall
not be required to effect any exchange [or transfer] which would result in the
issuance of a Warrant Certificate evidencing a fraction of a Warrant or a
number of full Warrants and a fraction of Warrant. All Warrant Certificates
issued upon any exchange [or transfer] of Warrant Certificates shall evidence
the same obligations, and be entitled to the same benefits under this
Agreement, as the Warrant Certificates surrendered for such exchange [or
transfer].

     SECTION 3.2 Mutilated, Destroyed, Lost or Stolen Warrant Certificates. If
any mutilated Warrant Certificate is surrendered to the Warrant Agent, the
Company shall execute and an officer of the Warrant Agent shall manually
authenticate and deliver in exchange therefor a new Warrant Certificate of like
tenor and principal amount and bearing a number not contemporaneously
outstanding. If there shall be delivered to the Company and the Warrant Agent
(i) evidence to their satisfaction of the destruction, loss or theft of any
Warrant Certificate and of the ownership thereof and (ii) such security or
indemnity as may be required by them to save each of them and any agent of
either of them harmless, then, in the absence of notice to the Company or the
Warrant Agent that such Warrant Certificate has been acquired by a bona fide
purchaser, the Company shall execute and upon its request an officer of the
Warrant Agent shall manually authenticate and deliver, in lieu of any such
destroyed, lost or stolen Warrant Certificate, a new Warrant Certificate of
like tenor and principal amount and bearing a number not contemporaneously
outstanding, upon the issuance of any new Warrant Certificate under this
Section, the Company may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto and
any other expenses (including the fees and expenses of the Warrant Agent)
connected therewith. Every new Warrant Certificate issued pursuant to this
Section in lieu of any destroyed, lost or stolen Warrant Certificate shall
evidence an original additional contractual obligation of the Company, whether
or not the destroyed, lost or stolen Warrant Certificate shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this
Agreement equally and proportionately with any and all other Warrant
Certificates duly issued hereunder. The provisions of this Section
are exclusive and shall preclude (to the extent lawful) all other rights
and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Warrant Certificates.

     SECTION 3.3 Persons Deemed Owners. [If Other Debt Securities and Warrants
which are not immediately detachable—Prior to the Detachable Date, the Company,
the Warrant Agent and all other persons may treat the owner of any Other Debt
Security as the owner of the Warrant

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Certificates initially attached thereto
for any purpose and as the person entitled to exercise the rights represented
by the Warrants evidence by such Warrant Certificates, any notice to the
contrary notwithstanding. After the Detachable Date,] [If registered
Warrants—and prior to due presentment of a Warrant Certificate for registration
or transfer,] the Company, the Warrant Agent and all other person may treat the
Holder as the owner thereof for any purpose and as the person entitled to
exercise the rights represented by the Warrants evidenced thereby, any notice
to the contrary notwithstanding.

     SECTION 3.4 Cancellation of Warrant Certificates. Any Warrant Certificate
surrendered for exchange [, transfer] or exercise of the Warrants evidenced
thereby shall, if surrendered to the Corporation, be delivered to the Warrant
Agent, and [If Warrant Certificates are issued in bearer form—, except as
provided bellow,] all Warrant Certificates surrendered or so delivered to the
Warrant Agent shall be promptly canceled by it and shall not be reissued and,
except as expressly permitted by this Agreement, no Warrant Certificate shall
be issued hereunder in lieu or in exchange thereof. [If Warrant Certificates
are issued in bearer form-Warrant Certificates delivered to the Warrant Agent
in exchange for Warrant Certificates of other denominations may be retained by
the Warrant Agent for reissue as authorized hereunder.] The Company may at any
time deliver to the Warrant Agent for cancellation any Warrant Certificates
previously issued hereunder which the Company may have acquired in any manner
whatsoever, and all Warrant Certificates so delivered shall be promptly
canceled by the Warrant Agent. All canceled Warrant certificates held by the
Warrant Agent shall be destroyed by it unless by written order the Company
requests their return to it.

ARTICLE IV

OTHER PROVISIONS RELATING TO

RIGHTS OF HOLDERS OR WARRANT CERTIFICATES

     SECTION 4.1 No Rights as Holders of Warrant Debt Securities Conferred by
Warrants or Warrant Certificates. No Warrant Certificate or Warrant evidenced
thereby shall entitle the Holder thereof to any of the rights of a Holder of
the Warrant Debt Securities, including, without limitation, the right to
receive the payment of principal of (or premium, if any) or interest, if any,
on the Warrant Debt Securities or to enforce any of the covenants in the
Indenture.

     SECTION 4.2 Holder of Warrant Certificate May Enforce Rights.
Notwithstanding any of the provisions of this Agreement, any Holder of any
Warrant Certificate, without the consent of the Warrant Agent, the Trustee, the
holder of any Warrant Debt Securities or the Holder of any other Warrant Certificate, may, on
his own behalf and for his own benefit, enforce, and may institute and maintain
any suit, action or proceeding against the Company suitable to enforce or
otherwise in respect of, his right to exercise the Warrant or Warrants
evidenced by this Warrant Certificate in the manner provided in the Warrant
Certificates and in this Agreement.

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ARTICLE V

CONCERNING THE WARRANT AGENT

     SECTION 5.1 Warrant Agent. The Company hereby appoints                     as
Warrant Agent of the Company in respect of the Warrants and the Warrant
Certificates upon the terms and subject to the conditions herein set forth, and
                    hereby accepts such appointment. The Warrant Agent shall have the
power and authority granted to and conferred upon it in the Warrant
Certificates and hereby and such further power and authority to act on behalf
of the Company as the Company may hereafter grant to or confer upon it All of
the terms and provisions with respect to such power and authority contained in
the Warrant Certificates are subject to and governed by the terms and
provisions hereof.

     SECTION 5.2 Conditions of Warrant Agent’s Obligations. The Warrant Agent
accepts its obligations herein set forth, upon the terms and conditions hereof,
including the following, to all of which the Company agrees and to all of which
the rights hereunder of the Holders from time to time of the Warrant
Certificates shall be subject:

     (a) Compensation and Indemnification. The Company agrees promptly
to pay the Warrant Agent the compensation to be agreed upon with the
Company for all services rendered by the Warrant Agent and to reimburse
the Warrant Agent for reasonable out-of-pocket expenses (including
counsel fees) incurred by the Warrant Agent in connection with the
services rendered hereunder by the Warrant Agent. The Company also
agrees to indemnify the Warrant Agent for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or
bad faith on the part of the Warrant Agent, arising out of or in
connection with its acting as such Warrant Agent hereunder, including the
costs land expenses of defending itself against any claim or liability in
connection with the exercise or performance at any time of its powers or
duties hereunder. The obligations of the Company under this subsection
(a) shall survive the exercise of the Warrant Certificates and the
resignation or removal of the Warrant Agent.

     (b) Agent for the Company. In acting under this Warrant Agreement
and in connection with the Warrant Certificates, the Warrant Agent is
acting solely as agent of the Company and does not assume any obligation
or relationship of agency or trust for or with any of the owners or
Holders of the Warrant Certificates.

     (c) Counsel. The Warrant Agent may consult with counsel, which may
include counsel for the Company, and the written advice of such counsel
shall be full and complete authorization and protection in respect of any action
taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

     (d) Documents. The Warrant Agent shall be protected and shall incur
no liability for or in respect of any action taken or omitted by it in
reliance upon any Warrant Certificates, notice, direction, consent,
certificate, affidavit, statement or other paper or document reasonably
believed by it to be genuine and to have been presented or signed by the
proper parties.

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     (e) Certain Transactions. The Warrant Agent, any of its officers,
directors and employees, or any other agent of the Company, in its
individual or any other capacity, may become the owner of, or acquire any
interest in, any Warrant Certificates, with the same rights that it would
have if it were not such Warrant Agent, officer, director, employee or
other agent, and, to the extent permitted by applicable law, it may
engage or be interested in any financial or other transaction with the
Company and may act on, or as depositary, trustee or agent for, any
committee or body of holders of Warrant Debt Securities or other
obligations of the Company as freely as if it were not such Warrant
Agent, officer, director, employee or other agent. Nothing in this
Warrant Agreement shall be deemed to prevent the Warrant Agent from
acting as Trustee under the Indenture.

     (f) No Liability for Interest. The Warrant Agent shall not be under
any liability for interest on any monies at any time received by it
pursuant to any of the provisions of this Agreement or of the Warrant
Certificates.

     (g) No Liability for Invalidity. The Warrant Agent shall not incur
any liability with respect to the validity of this Agreement or any of
the Warrant Certificates.

     (h) No Responsibility for Representations. The Warrant Agent shall
not be responsible for any of the recitals or representations contained
herein or in the Warrant Certificates (except as to the Warrant Agent’s
Certificate of Authentication thereon), all of which are made solely by
the Company.

     (i) No Implied Obligations. The Warrant Agent shall be obligated to
perform such duties as are herein and in the Warrant Certificates
specifically set forth and no implied duties or obligations shall be read
into this Agreement or the Warrant Certificates against the Warrant
Agent. The Warrant Agent shall not be under any obligation to take any
action hereunder which may tend to involve it in any expense or
liability, the payment of which within a reasonable time is not, in its
reasonable opinion, assured to it. The Warrant Agent shall not be
accountable or under any duty or responsibility for the use by the
Company of any of the Warrant Certificates authenticated by the Warrant
Agent and delivered by it to the Company pursuant to this Agreement or
for the application by the Company of the proceeds of the Warrant
Certificates or any exercise of the Warrants evidenced thereby. The
Warrant Agent shall have no duty or responsibility in case of any default
by the Company in the performance of its covenants or agreements
contained herein or in the Warrant Certificates or in the Warrant Debt
Securities or in the case of the receipt of any written demand from a
Holder of a Warrant certificate with respect to such default, including, without limiting the generality
of the foregoing, any duty or responsibility to initiate or attempt to
initiate any proceedings at law or otherwise or, except as provided in
Section 6.3 hereof, to make any demand upon the Company.

     SECTION 5.3 Resignation, Removal and Appointment of Successors.

     (a) The Company agrees, for the benefit of the Holders from time to
time of the Warrant Certificates, that there shall at all times be a
Warrant Agent hereunder until all of the Warrant Certificates are no
longer exercisable.

-9-

 

     (b) The Warrant Agent may at any time resign as such agent by giving
written notice to the Company of such intention on its part, specifying
the date on which it desires its resignation to become effective;
provided that, without the consent of the Company, such date shall not be
less than [three months] after the date on which such notice is given.
The Warrant Agent hereunder may be removed at any time by the filing with
it of an instrument in writing signed by or on behalf of the Company and
specifying such removal and the date on which the Company expects such
removal to become effective. Such resignation or removal shall take
effect upon the appointment by the Company of a successor Warrant Agent
(which shall be a bank or trust company organized and doing business
under the laws of The United States of America, any State thereof or the
District of Columbia and authorized under such laws to exercise corporate
trust powers) by an instrument in writing filed with such successor
Warrant Agent and the acceptance of such appointment by such successor
Warrant Agent pursuant to Section 5.3(d).

     (c) In case at any time the Warrant Agent shall resign, or be
removed, or shall become incapable of acting, or shall be adjudged a
bankrupt or insolvent, or shall file a voluntary petition in bankruptcy
or make an assignment for the benefit of its creditors or consent to the
appointment of a receiver or custodian of all or any substantial part of
its property, or shall admit in writing its inability to pay or meet its
debts as they mature, or if a receiver or custodian of it or of all or
any substantial part of its property shall be appointed, or if an order
of any court shall be entered approving any petition filed by or against
it under the provisions of any applicable bankruptcy or similar law, or
if any public officer shall have taken charge or control of the Warrant
Agent or of its property or affairs, a successor Warrant Agent, qualified
as aforesaid, shall be appointed by the Company by an instrument in
writing, filed with the successor Warrant Agent. Upon the appointment as
aforesaid of a successor Warrant Agent and acceptance by the latter of
such appointment the Warrant Agent so superseded shall cease to be
Warrant Agent hereunder.

     (d) Any successor Warrant Agent appointed hereunder shall execute,
acknowledge and deliver to its predecessor and to the Company an
instrument accepting such appointment hereunder, and thereupon such
successor Warrant Agent, without any further act, deed or conveyance,
shall become vested with all the authority, rights, powers, trusts,
immunities, duties and obligations of such predecessor with like effect
as if originally named as Warrant Agent hereunder, and such
predecessor, upon payment of its charges and disbursements then unpaid,
shall thereupon become obligated to transfer, deliver and pay over, and
such successor Warrant Agent shall be entitled to receive, all monies,
securities and other property on deposit with or held by such
predecessor, as Warrant Agent hereunder.

     (e) Any corporation into which the Warrant Agent hereunder may be
merged or converted or any corporation with which the Warrant Agent may
be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Warrant Agent shall be a party, or any
corporation succeeding to all or substantially all the corporate trust
business of the Warrant Agent, provided that it shall be qualified as
aforesaid, shall be the successor Warrant Agent under this Agreement
without the execution or filing of any paper or any further act on the
part of any of the parties hereto.

-10-

 

ARTICLE VI

MISCELLANEOUS

     SECTION 6.1 Rights and Duties of Successor Corporation. In case of any
consolidation, merger or sale, lease or conveyance of all or substantially all
of the assets of the Company and upon any assumption by the successor
corporation, such successor corporation shall succeed to and be substituted for
the Company, with the same effect as if it had been named herein, and the
predecessor corporation, except in the event of a lease, shall be relieved of
any further obligation under this Agreement and the Warrants. Such successor
corporation thereupon may cause to be signed, and may issue either in its own
name or in the name of the Company, any or all of the Warrant Debt Securities
issuable pursuant to the terms hereof. All the Warrant Debt Securities so
issued shall in all respects have the same legal rank and benefit under the
Indenture as the Warrant Debt Securities theretofore or thereafter issued in
accordance with the terms of this Agreement and the Indenture.

     In case of any such consolidation, merger, sale, lease or conveyance, such
changes in phraseology and form (but not in substance) may be made in the
Warrant Debt Securities thereafter to be issued as may be appropriate.

     SECTION 6.2 Amendment. This Agreement may be amended by the parties
hereto, without the consent of the Holder of any Warrant Certificate, for the
purpose of curing any ambiguity, or of curing, correcting or supplementing any
defective provision contained herein, or making such provisions in regard to
matters or questions arising under this Agreement as the Company may deem
necessary or desirable; provided that such action shall not adversely affect
the interests of the Holders of the Warrant Certificates in any material
respect. The Warrant Agent may, but shall not be obligated to, enter into any
amendment to this agreement which affects the Warrant Agent’s own rights,
duties or immunities under this Agreement or otherwise. The Company and the
Warrant Agent may also modify or amend this Agreement and the terms of the
Warrants if a majority of the holders of the then outstanding unexercised
Warrants affected by the modification or amendment consent. However, no modification or amendment
that accelerates the expiration date, increases the exercise price, reduces the
majority consent requirement for any such modification or amendment, or
otherwise materially adversely affects the rights of the holders of the
Warrants may be made without the consent of each holder affected by the
modification or amendment.

     SECTION 6.3 Notices and Demands to the Corporation and Warrant Agent. If
the Warrant Agent shall receive any notice or demand addressed to the Company
by the Holder of a Warrant Certificate pursuant to the provisions of the
Warrant Certificates, the Warrant Agent shall promptly forward such notice or
demand to the Company.

     SECTION 6.4 Addresses. Any communications from the Company to the Warrant
Agent with respect to this Agreement shall be addressed to                    ,
Attention: Secretary, and any communications from the Warrant Agent to the
Company with respect to this

-11-

 

Agreement shall be addressed to UnitedHealth Group
Incorporated, UnitedHealth Group Plaza, 60 South Sixth Street, Minneapolis,
Minnesota 55402-4422, Attention: Secretary, (or such other address as shall be
specified in writing by the Warrant Agent or by the Company).

     SECTION 6.5 Governing Law. This Agreement and each Warrant Certificate
issued hereunder shall be governed by and construed in accordance with the laws
of the State of [                   ].

     SECTION 6.6 Delivery of Prospectus. The Company will furnish to the
Warrant Agent sufficient copies of a prospectus, appropriately supplemented,
relating to the Warrant Debt Securities (the “Prospectus”), and the Warrant
Agent agrees that, upon the exercise of any Warrant Certificate, the Warrant
Agent will deliver to the person designated to receive Warrant Debt Securities
prior to or concurrently with the delivery of such Securities, a Prospectus.

     SECTION 6.7 Obtaining of Governmental Approvals. The Company will from
time to time take all action which may be necessary to obtain and keep
effective any and all permits, consents and approvals of governmental agencies
and authorities and securities acts filings under United States Federal and
State laws (including, without limitation, the maintenance of the effectiveness
of a registration statement in respect of the Warrant Debt Securities under the
Securities Act of 1933), which may be or become required in connection with
exercise of the Warrant Certificates and the original issuance and delivery of
the Warrant Debt Securities.

     SECTION 6.8 Persons Having Rights Under Warrant Agreement. Nothing in
this Agreement expressed or implied and nothing that may be inferred from any
of the provisions hereof is intended, or shall be construed, to confer upon, or
give to, any person or corporation other than the Company, the Warrant Agent and the
Holders of the Warrant Certificates any right, remedy or claim under or by
reason of this Agreement or of any covenant, condition, stipulation, promise or
agreement hereof; and all covenants, conditions, stipulations, promises and
agreements in this Agreement contained shall be for the sole and exclusive
benefit of the Company and the Warrant Agent and their successors and of the
Holders of the Warrant Certificates.

     SECTION 6.9 Headings. The Article and Section headings herein and the
Table of Contents are for convenience only and shall not affect the
construction hereof.

     SECTION 6.10 Counterparts. This Agreement may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original;
but such counterparts shall together constitute but one and the same
instrument.

     SECTION 6.11 Inspection of Agreement. A copy of this Agreement shall be
available at all reasonable times at the principal corporate trust office of
the Warrant Agent [and at                     for inspection by the Holder of any
Warrant Certificate. The Warrant Agent may require such Holder to submit his
Warrant Certificate for inspection by it.

-12-

 

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

	 	 	 	 	 	 	 
	 	 	UNITEDHEALTH GROUP INCORPORATED
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	 	 	 	 	
 
	

	 	 	 	Its	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	 	 	Attest:
	 
	 	 	 	 	 	 
	 	 	
 
	 
	 	 	 	 	 	 
	 	 	Warrant Agent
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	 	 	 	 	
 
	

	 	 	 	Its	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	 	 	Attest:
	 
	 	 	 	 	 	 
	 	 	
 

-13-

 

EXHIBIT A

FORM OF WARRANT CERTIFICATE

[Face of Warrant Certificate]

	 	 	 
	[If Warrants are attached to Other
Securities and are not immediately
detachable.

	 	Prior to                              ,
this Warrant Certificate
cannot be transferred or
exchanged unless attached to a
[Title of Other Securities].]
	 
	 	 
	[Form of Legend if Warrants are
not immediately exercisable.

	 	Prior to                              ,
Warrants evidenced by this
Warrant Certificate cannot be
exercised.]

EXERCISABLE ONLY IF COUNTERSIGNED BY THE WARRANT

AGENT AS PROVIDED HEREIN.

VOID AFTER [     ] P.M., [CITY] TIME, ON                         

UNITEDHEALTH GROUP INCORPORATED

Warrant Certificate Representing

Warrants to Purchase

[Title of Warrant Debt Securities]

			
	No.                         
	 	                         Warrants

     This certifies that [the bearer is the] [                    or registered assigns
is the registered] owner of the above indicated number of Warrants, each
Warrant entitling such [bearer [If Warrants are attached to Other Securities
and are not immediately detachable —, subject to the bearer qualifying as a
“Holder” of this Warrant Certificate, as hereinafter defined]] [registered
owner] to purchase, at any time [after [          ] p.m., [City] time, on
           and] on or before [     ] p.m., [City] time, on            $     
principal amount of [Title of Warrant Debt Securities] (the “Warrant Debt
Securities”) of UnitedHealth Group Incorporated (the “Company”), issued or to
be issued under the Indenture (as hereinafter defined), on the following
basis:2 [During the period from           ,      through and including
                      ,     , each Warrant shall entitle the Holder thereof, subject to
the provisions of this Agreement, to

	 	 	2 Complete and modify the following provisions as appropriate to reflect the
terms of the Warrants and the Warrant Debt Securities.

A-1

 

purchase from the Company the principal amount of Warrant Debt Securities
stated in the Warrant Certificate at the Warrant Price of      % of the
principal amount thereof [plus accrued amortization, if any, of the original
issue discount of the Warrant Debt Securities] [plus accrued interest, if any,
from the most recent date from which interest shall have been paid on the
Warrant Debt Securities or, if no interest shall have been paid on the Warrant
Debt Securities, from           ,     ]; during the period from           ,     
through and including           ,     , each Warrant shall entitle the Holder
thereof, subject to the provisions of this Agreement, to purchase from the
Company the principal amount of Warrant Debt Securities stated in the Warrant
Certificate at the Warrant Price of      % of the principal amount thereof [plus
accrued amortization, if any, of the original issue discount of the Warrant
Debt Securities] [plus accrued interest, if any, from the most recent date from
which interest shall have been paid on the Warrant Debt Securities or, if no
interest shall have been paid on the Warrant Debt Securities, from
          ,     ] [in each case, the original issue discount ($      for each
$1,000 principal amount of Warrant Debt Securities) will be amortized at      %
annual rate, computed on a[n] [semi-]annual basis [, using a 360 day year
consisting of twelve 30 day months] (the “Warrant Price”). The Holder of this
Warrant Certificate may exercise the Warrants evidenced hereby, in whole or in
part, by surrendering this Warrant Certificate, with the purchase form set
forth hereon duly completed, accompanied by payment in full, in lawful money of
the United States of America, [in cash or by certified check or official bank
check in New York Clearing House funds] [by bank wire transfer in immediately
available funds], the Warrant Price for each Warrant exercised, to the Warrant
Agent (as hereinafter defined), at the corporate trust office of [name of
Warrant Agent], or its successor as warrant agent (the “Warrant Agent”) [or at
          ,], at the addresses specified on the reverse hereof and upon
compliance with and subject to the conditions set forth herein and in the
Warrant Agreement (as hereinafter defined). This Warrant Certificate may be
exercised only for the purchase of Warrant Debt Securities in the principal
amount of [$1,000] or any integral multiple thereof.

     The term “Holder” as used herein shall mean [If Warrants are attached to
Other Securities and are not immediately detachable—, prior to
                                      ,      (the “Detachable Date”), the [bearer] [registered owner] of
the Company’s [title of Other Debt Securities] to which this Warrant
Certificate was initially attached, and after such Detachable Date,] [the
bearer of such Warrant Certificate] [the person in whose name at the time such
Warrant Certificate shall be registered upon the books to be maintained by the
Warrant Agent Or that purpose pursuant to Section 3.1].

     Any whole number of Warrants evidenced by this Warrant Certificate may be
exercised to purchase Warrant Debt Securities in registered form. Upon any
exercise of fewer than all of the Warrants evidenced by this Warrant
Certificate, there shall be issued to the [bearer] [registered owner] hereof a
new Warrant Certificate evidencing the number of Warrants remaining
unexercised.

     This Warrant Certificate is issued under and in accordance with the
Warrant Agreement dated as of           ,      (the “Warrant Agreement”), between
the Company and the Warrant Agent and is subject to the terms and provisions
contained in the Warrant Agreement, to all of which terms and provisions the
holder of this Warrant Certificate consents by acceptance hereof. Copies of
the Warrant Agreement are on file at the above-mentioned office of the Warrant
Agent [and at           ].

A-2

 

     The Warrant Debt Securities to be issued and delivered upon the exercise
of Warrants evidenced by this Warrant Certificate may be issued under and in
accordance with an Indenture, [dated as of           ,      (the “Senior
Indenture”), between the Company and                    , as trustee (such trustee, and any
successors to such trustee, the “Senior Trustee”)] [dated as of           ,     
(the “Subordinated Indenture”), between the Company and           , as trustee
(such trustee, and any successors to such trustee, the “Subordinated Trustee”)]
and will be subject to the terms and provisions contained in the Warrant Debt
Securities and in the Indenture. Copies of the [Senior][Subordinated]
Indenture, including the form of the Warrant Debt Securities, are on file at
the corporate trust office of the Trustee [and at           ].

     [If Warrants are attached to Other Securities and are not immediately
detachable—Prior to                                       ,      (the “Detachable Date”), this Warrant
Certificate may be exchanged or transferred only together with the [title of
Other Debt Security] (the “Other Debt Security”) to which this Warrant
Certificate was initially attached, and only for the purpose of effecting or in
conjunction with, an exchange or transfer of such Other Debt Security.
Additionally, on or prior to the Detachable Date, each transfer of such Other
Debt Security on the register of the Other Debt Securities shall operate also
to transfer this Warrant Certificate. After the Detachable Date, this] [If
Warrants are attached to Other Securities and are immediately detachable or
Warrants alone—This] Warrant Certificate, and all rights hereunder, may be
transferred [If bearer Warrants-by delivery and the Company and the Warrant
Agent may treat the bearer hereof as the owner for all purposes] [If registered
Warrants—when surrendered at the corporate trust office of the Warrant Agent
[or                                       ] by the registered owner or his assigns, in person or by an
attorney duly authorized in writing in the manner and subject to the
limitations provided in the Warrant Agreement.]

     [If Warrants are attached to Other Securities and are not immediately
detachable-Except as provided in the immediately preceding paragraph, after]
[If Warrants are attached to Other Securities and are immediately detachable or
Warrants alone—After] authentication by the Warrant Agent and prior to the
expiration of this Warrant Certificate, this Warrant Certificate may be
exchanged at the corporate trust office of the Warrant Agent [or at           ]
for Warrant Certificates representing the same aggregate number of Warrants.

     This Warrant Certificate shall not entitle the Holder hereof to any of the
rights of a holder of the Warrant Debt Securities, including, without
limitation, the right to receive payments of principal of (and premium, if any)
or interest, if any, on the Warrant Debt Securities or to enforce any of the
covenants of the Indenture.

     Reference is hereby made to the further provisions of this Warrant
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

     This Warrant Certificate shall not be valid or obligatory for any purpose
until authenticated by the Warrant Agent.

A-3

 

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

	 	 	 	 	 	 	 
	 	 	UNITEDHEALTH GROUP INCORPORATED
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	 	 	 	 	
 
	

	 	 	 	Its	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	 	 	Attest:
	 
	 	 	 	 	 	 
	 	 	
 
	 
	 	 	 	 	 	 
	 	 	Warrant Agent
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	 	 	 	 	
 
	

	 	 	 	Its	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	 	 	Attest:
	 
	 	 	 	 	 	 
	 	 	
 

A-4

 

[Reverse of Warrant Certificate]

(Instructions for Exercise of Warrants)

     To exercise any Warrants evidenced hereby, the Holder of this Warrant
Certificate must pay [in cash or by certified check or official bank check in
New York Clearing House funds] [by bank wire transfer in immediately available
funds], the Warrant Price in full for each of the Warrants exercised, to
[Warrant Agent] [address of Warrant Agent], Corporate Trust Department, , Attn:
        , which payment should specify the name of the Holder of this Warrant
Certificate and the number of Warrants exercised by such Holder. In addition,
the Holder of this Warrant Certificate should complete the information required
below and present in person or mail by registered mail this Warrant Certificate
to the Warrant Agent at the addresses set forth below.

FORM OF EXERCISE

(To be executed upon exercise of Warrants.)

     The undersigned hereby irrevocably elects to exercise       Warrants,
represented by this Warrant Certificate, to purchase $           principal amount
of the [Title of [Warrant Debt Securities] (the “Warrant Debt Securities”) of
UnitedHealth Group Incorporated and represents that he has tendered payment for
such Warrant Debt Securities [in cash or by certified check or official bank
check in New York Clearing House funds] [by bank wire transfer in immediately
available funds] to the order of UnitedHealth Group Incorporated, c/o [name and
address of Warrant Agent], in the amount of $      in accordance with the
terms hereof. The undersigned requests that said principal amount of Warrant
Debt Securities be in fully registered form, in the authorized denominations,
registered in such names and delivered, all as specified in accordance with the
instructions set forth below.

     If said principal amount of Warrant Debt Securities is less than all of
the Warrant Debt Securities purchasable hereunder, the undersigned requests
that a new Warrant Certificate representing the remaining balance of the
Warrants evidenced hereby be issued and delivered to the undersigned unless
otherwise specified in the instructions below.

A-5

 

	 	 	 	 	 	 	 
	 	 	Dated:
	 	 	 	 	
 
	 
	 	 	 	 	 	 
	 	 	Name
	 	 	 	 	
 
	 	 	 	 	(Please Print)

	 
	 	 	 	 	 	 
	 	 	Address:
	 	 	

	 
	 	 	 	 	 	 
	 	 	

	 
	 	 	 	 	 	 
	 	 	(Insert Social Security or Other

Identifying Number of Holder)
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	
Signature Guaranteed
	 
	 	 	 	 	 	 
	 	 	
Signature
	 
	 	 	 	 	 	 
	 	 	[If registered Warrant—(Signature must
conform in all respects to name of
holder as specified on the face of
this Warrant Certificate and must
bear a signature guarantee by a
bank, trust company or member broker
of the New York, Midwest or Pacific
Stock Exchange.)]

This Warrant may be exercised at the following addresses:

          By hand at

          By mail at

[Instructions as to form and delivery of Warrant Debt Securities and/or Warrant
Certificates — complete as appropriate.]

A-6

 

[If Registered Warrant-

FORM OF ASSIGNMENT]

(TO BE EXECUTED TO TRANSFER)

THE WARRANT CERTIFICATE)

FOR VALUE RECEIVED                          hereby sells, assigns and transfers unto

Please insert social security or other identifying number

(Please print name and address including zip code)

the right represented by the within Warrant Certificate and does hereby
irrevocably constitute and appoint                    , Attorney, to transfer said
Warrant Certificate on the books of the Warrant Agent with full power of
substitution.

	 	 	 	 	 
	Dated:
	 	 	 	 
	

	 	
 
	 	
 
	

	 	 	 	Signature
	

	 	 	 	 
	

	 	 	 	(Signature must conform in all
respects to name of holder as
specified on the face of this
Warrant Certificate and must bear a
signature guarantee by a bank, trust
company or member broker of the New
York, Midwest or Pacific Stock
Exchange)

Signature Guaranteed:

A-7<PAGE>

                                                                    EXHIBIT 10.1
                                    FCA, LTD.
                             1996 STOCK OPTION PLAN

1.       PURPOSE OF THE PLAN.

         This Plan shall be known as the "FCA, Ltd. 1996 Stock Option Plan" and
is hereinafter referred to as the "Plan." The purpose of the Plan is to aid in
maintaining and developing personnel capable of assuring the future success of
FCA, Ltd., a Minnesota corporation (the "Company"), to offer such personnel
additional incentives to put forth maximum efforts for the success of the
business, and to afford them an opportunity to acquire a proprietary interest in
the Company through stock options as provided herein. Options granted under this
Plan may be either incentive stock options ("Incentive Stock Options") within
the meaning of section 422 of the Internal Revenue Code of 1986, as amended (the
"Code"), or options which do not qualify as Incentive Stock Options.

2.       STOCK SUBJECT TO THE PLAN.

         Subject to the provisions of section 12 the shares of stock to be
subject to options under the Plan shall be shares of the Company's authorized
Common Stock, $.02 par value. Such shares may be either authorized but unissued
shares, or issued shares which have been reacquired by the Company. Subject to
the adjustment as provided in section 12 the maximum number of shares on which
options may be exercised under this Plan shall be 500,000 shares. If an option
under the Plan expires, or for any reason is terminated or unexercised with
respect to any shares, such shares shall again be available for options
thereafter granted during the term of the Plan.

3.       ADMINISTRATION OF THE PLAN.

         (a)      The Plan shall be administered by the Board of Directors of
the Company or the Compensation Committee of the Board of Directors of the
Company, none of whom shall be officers or employees of the Company and all of
whom shall be "disinterested persons" with respect to the Plan within the
meaning of Rule 16b-3 under the Securities Exchange Act of 1934. The members of
such committee shall be appointed by and serve at the pleasure of the Board of
Directors. The group administering the Plan shall be referred to herein as the
"Committee."

         (b)      The Committee shall have plenary authority in its discretion,
but subject to the express provisions of this Plan, to

                  (i)      determine the purchase price of the common shares
                           covered by each option;

                  (ii)     determine the employees to whom and the time or times
                           at which such options shall be granted and the number
                           of shares to be subject to each option;

                                       1

<PAGE>

                  (iii)    determine the terms and provisions of each option
                           agreement under this Plan (which agreements need not
                           be identical), including the designation of those
                           options intended to be Incentive Stock Options;

                  (iv)     determine the terms and conditions for the vesting
                           and exercise of each option;

                  (v)      accelerate the time at which all or any part of an
                           option may be exercised;

                  (vi)     amend or modify the terms of any option with the
                           consent of the optionee;

                  (vii)    interpret the Plan;

                  (viii)   prescribe, amend and rescind rules and regulations
                           relating to the Plan; and

                  (ix)     make all other determinations necessary or advisable
                           for the administration of the Plan, subject to the
                           exclusive authority of the Board of Directors under
                           section 14 to amend or terminate the Plan.

The Committee's determinations on the foregoing matters, unless otherwise
disapproved by the Board of Directors of the Company, shall be final and
conclusive.

         (c)      The Committee shall select one of its members as its Chairman
and shall hold its meetings at such times and places as it may determine. A
majority of its members shall constitute a quorum. All determinations of the
Committee shall be made by not less than a majority of its members. Any decision
or determination that is set forth in a written document and signed by all of
the members of the Committee shall be fully effective as if it had been made by
a majority vote at a meeting duly called and held. The granting of an option
pursuant to the Plan shall be effective only if a written agreement shall have
been duly executed and delivered by and on behalf of the Company and the person
to whom such option is granted. The Committee may appoint a Secretary and may
make such rules and regulations for the conduct of its business as it shall deem
advisable.

4.       ELIGIBILITY.

         Incentive Stock Options may only be granted under this Plan to any full
or part-time employee (which term as used herein includes, but is not limited
to, officers and directors who are also employees) of the Company and of its
present and future subsidiary corporations (herein called "subsidiaries").
Options which do not qualify as Incentive Stock Options may be granted to full
or part-time employees of the Company or one of its subsidiaries, to consultants
or independent contractors providing valuable services to the Company or one of
its subsidiaries who are not also employees thereof and to members of the Board
of Directors of the Company who are not also employees of the Company or one of
its subsidiaries ("Non-Employee Directors"); provided, however, that options
shall be granted to Non-Employee Directors only pursuant to Section 9 hereof. In
determining the persons to whom options shall be granted and the number of
shares subject to each option, the Committee may take into account the nature of
services rendered by such persons, their present and potential contributions to
the success of the

                                       2

<PAGE>

Company and such other factors as the Committee in its discretion shall deem
relevant. A person who has been granted an option under the Plan may be granted
an additional option or options under the Plan if the Committee shall so
determine; provided, however, that to the extent the aggregate fair market value
(determined at the time the Incentive Stock Option is granted) of the stock with
respect to which all Incentive Stock Options are exercisable for the first time
by an employee during any calendar year (under all plans described in section
422 of the Code of his employer corporation and its parent and subsidiary
corporations described in section 424(e) or 424(f) of the Code) exceeds
$100,000, such options shall be treated as options which do not qualify as
Incentive Stock Options.

5.       PRICE.

         The option price for all Incentive Stock Options granted under the Plan
shall be determined by the Committee but shall not be less than 100% of the fair
market value of shares of the Company's Common Stock at the date of granting of
such option. Except with respect to options granted to Non-Employee Directors
pursuant to Section 9 hereof, the option price for options granted under the
Plan which do not qualify as Incentive Stock Options shall also be determined by
the Committee. For purposes of the preceding sentence and for all other
valuation purposes under the Plan, the fair market value of the Company's Common
Stock shall be as reasonably determined by the Committee, but shall not be less
than

                  (i)      the closing price of the stock as reported for
                           composite transactions, if the Company's Common Stock
                           is then traded on a national securities exchange;

                  (ii)     the last sale price if the Company's Common Stock is
                           then quoted on the NASDAQ National Market System; or

                  (iii)    the average of the closing representative bid and
                           asked prices of the Company's Common Stock as
                           reported on NASDAQ on the date as of which fair
                           market value is being determined.

If on the date of grant of any option granted under the Plan, the Common Stock
of the Company is not publicly traded, the Committee shall make a good faith
attempt to satisfy the option price requirement of this section 5 and section 9
and in connection therewith shall take such action as it deems necessary or
advisable.

6.       TERM.

         Except with respect to options granted to Non-Employee Directors
pursuant to Section 9 hereof, each option and all rights and obligations
thereunder shall, subject to the provisions of section 10, expire on the date
determined by the Committee and specified in the option agreement. The Committee
shall be under no duty to provide terms of like duration for options granted
under the Plan, but the term of an Incentive Stock Option may not extend more
than ten (10) years from the date of granting of such option and the term of
options granted under the Plan which do not qualify as Incentive Stock Options
may not extend more than fifteen (15) years from the date of granting of such
option.

                                       3

<PAGE>

7.       EXERCISE OF OPTION.

         (a)      Except with respect to options granted to Non-Employee
Directors pursuant to Section 9 hereof, the Committee shall have full and
complete authority to determine, subject to section 10, whether the option will
be exercisable in full at any time or from time to time during the term of the
option, or to provide for the exercise thereof in such installments, upon the
occurrence of such events and at such times during the term of the option as the
Committee may determine.

         (b)      The exercise of any option granted hereunder shall only be
effective at such time that the sale of shares of Common Stock pursuant to such
exercise will not violate any state or federal securities or other laws.

         (c)      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 either in cash
(including check, bank draft or money order), or, at the discretion of the
Committee, by delivering

                  (i)      certificates for shares of the Company's Common Stock
                           already owned by the optionee having a fair market
                           value equal to the full purchase price of the shares,
                           or

                  (ii)     a combination of cash and such shares, or

                  (iii)    by delivering the optionee's full recourse promissory
                           note, which shall provide for interest at a rate not
                           less than the minimum rate required to avoid
                           imputation of interest, original issue discount or a
                           below-market-rate loan pursuant to sections 483, 1274
                           or 7872 of the Code or any successor provisions
                           thereto,

provided, however, that an optionee shall not be entitled to tender shares of
the Company's Common Stock pursuant to successive, substantially simultaneous
exercises of options granted under this or any other stock option plan of the
Company. The fair market value of such shares shall be determined as provided in
section 5. Until such person has been issued a certificate or certificates for
the shares subject to such exercise, he shall possess no rights as a stockholder
with respect to such shares.

8.       ADDITIONAL RESTRICTIONS.

         The Committee shall have full and complete authority to determine
whether all or any part of the shares of Common Stock of the Company acquired
upon exercise of any of the options granted under the Plan shall be subject to
restrictions on the transferability thereof or any other restrictions affecting
in any manner the optionee's rights with respect thereto, but any such
restriction shall be contained in the agreement relating to such options.

         The exercise of all any part of the Option shall be effective at such
time as the sale of the Common Stock pursuant to such exercise will not violate
any federal or state laws.

                                       4

<PAGE>

9.       OPTIONS TO NON-EMPLOYEE DIRECTORS.

         The Committee shall issue options which do not qualify as Incentive
Stock Options to Non-Employee Directors in accordance with this section 9.

         (a)      Each Non-Employee Director, other than any Non-Employee
Director elected solely by the holders of one or more series of the Company's
preferred stock, first elected or appointed to the Company's Board of Directors
after the meeting of the Company's shareholders at which the plan is approved
and during the term of the Plan shall be granted, as of the date of such
Director's first election or appointment to the Board of Directors, an option to
purchase 20,000 shares of Common Stock. Each option granted to a Non-Employee
Director pursuant to this section 9 shall vest as to 25% of the shares subject
to such option on the date of grant and as to an additional 25% of the shares
subject to such option on each of the first, second and third anniversaries of
the date of grant (provided, in each case, that such Non-Employee Director is
still serving on the Company's Board of Directors on such date) shall have an
exercise price equal to 100% of the fair market value of the shares of Common
Stock as of the date of grant and shall expire on the tenth anniversary of the
date of grant.

         (b)      This section 9 shall not be amended more than once every six
months other than to comport with changes in the Code, the Employee Retirement
Income Security Act or the rules and regulations thereunder.

10.      EFFECT OF TERMINATION OF EMPLOYMENT OR DEATH.

         (a)      In the event that an optionee shall cease to be employed by
the Company or its subsidiaries, if any, (or shall cease to be a Director of the
Company in the case of any Non-Employee Director) for any reason other than his
gross and willful misconduct or his death or disability as set forth in section
10(c), such optionee shall have the right to exercise the option at any time
within three months after such termination of employment (or following the date
of termination of directorship in the case of any Non-Employee Director) to the
extent of the full number of shares he was entitled to purchase under the option
on the date of termination, subject to the condition that no option shall be
exercisable after the expiration of the term of the option.

         (b)      In the event that an optionee shall cease to be employed by
the Company or its subsidiaries, if any, (or shall cease to be a Director of the
Company in the case of any Non-Employee Director) by reason of his gross and
willful misconduct during the course of his employment (or during the course of
his directorship in the case of any Non-Employee Director), including but not
limited to wrongful appropriation of funds or the commission of a gross
misdemeanor or felony, the option shall be terminated as of the date of the
misconduct.

         (c)      If the optionee shall die while in the employ of the Company
or a subsidiary, if any, (or during the course of his directorship in the case
of any Non-Employee Director) or within three months after termination of
employment (or following the date of termination of directorship in the case of
any Non-Employee Director) for any reason other than gross and willful
misconduct, or the optionee's employment (or directorship in the case of a
Non-Employee Director) is terminated because optionee has become disabled
(within the meaning of Code section 22(e)(3)) while in the employ of the Company
or a subsidiary, if any, (or during the

                                       5

<PAGE>

course of his directorship in the case of any Non-Employee Director) and such
optionee shall not have fully exercised the option, such option may be exercised
at any time within twelve months after such optionee's death or the date of such
disability by the optionee or the personal representatives of the optionee, as
applicable, 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 he was entitled to purchase under the option on the date
of death (or termination of employment or directorship, if earlier) and subject
to the condition that no option shall be exercisable after the expiration of the
term of the option.

11.      TEN-PERCENT SHAREHOLDER RULE.

         Notwithstanding any other provision in the Plan, if, at the time an
option is otherwise to be granted pursuant to the Plan, the optionee owns
directly or indirectly (within the meaning of section 424(d) of the Code) shares
of Common Stock of the Company possessing more than ten percent (10%) of the
total combined voting power of all classes of stock of the Company or its parent
or subsidiary corporations (within the meaning of section 424(e) or 424(f) of
the Code), if any, then any Incentive Stock Option to be granted to such
optionee pursuant to the Plan shall satisfy the requirements of section
422(c)(7) of the Code, the option price shall be not less than 110% of the fair
market value of the Common Stock of the Company determined as described herein,
and such option by its terms shall not be exercisable after the expiration of
five (5) years from the date such option is granted.

12.      NON-TRANSFERABILITY.

         No option granted under the Plan shall be transferable by an optionee,
otherwise than by will or the laws of descent or distribution as provided in
section 10(c). During the lifetime of an optionee the option shall be
exercisable only by such optionee.

13.      DILUTION OR OTHER ADJUSTMENTS.

         If there shall be any change in the shares of the Company's 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 by the Committee. 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 and the price per share subject to outstanding
options, in order to prevent dilution or enlargement of option rights.

14.      AMENDMENT OR DISCONTINUANCE OF PLAN.

         Subject to section 9 hereof, the Board of Directors may amend or
discontinue the Plan at any time. However, no amendment of the Plan shall,
without shareholder approval:

                  (i)      increase the maximum number of shares under the Plan
                           as provided in section 2;

                  (ii)     decrease the minimum option price provided in section
                           5;

                                       6

<PAGE>

                  (iii)    extend the maximum option term under section 6; or

                  (iv)     materially modify the eligibility requirements for
                           participation in the Plan.

The Board of Directors shall not alter or impair any option theretofore granted
under the plan without the consent of the holder of the option.

15.      TIME OF GRANTING.

         Nothing contained in the Plan or in any resolution adopted or to be
adopted by the Board of Directors or by the shareholders of the Company, and no
action taken by the Committee or the Board of Directors (other than the
execution and delivery of an option agreement), shall constitute the granting of
an option hereunder.

16.      NO GUARANTEE OF EMPLOYMENT.

         Nothing in the Plan or in any agreement thereunder shall confer on any
employee any right to continue in the employ of the Company or any of its
subsidiaries or affect, in any way, the right of the Company or any of its
subsidiaries to terminate any employee's employment at any time. Nothing in the
Plan or in any agreement thereunder shall confer on any Director any right to
continue as a Director of the Company or affect, in any way, the right of the
shareholders of the Company to remove a Director from the Board of Directors.

17.      EFFECTIVE DATE AND TERMINATION OF PLAN.

         (a)      The Plan was approved by the Board of Directors as of April
                  26, 1996. The Plan be subject to approval by the shareholders
                  of the Company within twelve (12) months of such approval.

         (b)      Unless the Plan shall have been discontinued as provided in
                  section 14, the Plan shall terminate April 26, 2006. No option
                  may be granted after such termination, but termination of the
                  Plan shall not, without the consent of the optionee, alter or
                  impair any rights or obligations under any option theretofore
                  granted.

                                       7

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