Document:

exv10wxgy

 

Exhibit 10(g)

FIRST AMENDMENT

OF

UNITEDHEALTH GROUP

DIRECTORS’ COMPENSATION DEFERRAL PLAN

(2002 Statement)

     WHEREAS, UNITEDHEALTH GROUP INCORPORATED, a Minnesota corporation
(“UnitedHealth Group”), has heretofore established and maintains a
nonqualified, unfunded, deferred compensation plan (the “Plan”) for the benefit
of certain members of its Board of Directors; and

     WHEREAS, Said Plan is currently embodied in a document adopted on October
30, 2001, and entitled “UNITEDHEALTH GROUP DIRECTORS’ COMPENSATION DEFERRAL
PLAN (2002 Statement)” (the “Plan Statement); and

     WHEREAS, Pursuant to Sections 10.1 of the Plan Statement, the Compensation
and Human Resources Committee of the Board of Directors of UnitedHealth Group
(the “Compensation Committee”) has the general power to amend the Plan
Statement by a written instrument executed by UnitedHealth Group; and

     WHEREAS, UnitedHealth Group desires to amend the Plan Statement to provide
for the following: (i) pre-2004 and post-2003 deferrals will be accounted for
separately; (ii) post-2003 deferrals shall not be available for on-demand
distributions or accelerated distributions; (iii) beginning in 2004, a
participant may elect different distribution options for each year’s deferrals;
and (iv) the addition of new distribution option: a lump sum payment in the
year following the fifth anniversary of the participant’s last day of service
as a director.

     NOW, THEREFORE, The Plan Statement is hereby amended in the following
respects:

1.     DEFINITION OF ACCOUNT. Effective January 1, 2004, Section 1.2.1 of the Plan
Statement is amended to read in full as follows:

     1.2.1. Account - the separate bookkeeping account established for each
Participant which represents the separate unfunded and unsecured general
obligation of UnitedHealth Group established with respect to each person who is
a Participant in this Plan in accordance with Section 2 and which are credited
to the dollar amounts specified in Sections 3 and 4 and from which are
subtracted payments made pursuant to Section 8. The following accounts will be
maintained under this Plan for Participants:

	 	(a)	 	Pre-2004 Account - the account maintained for each
Participant to which are credited the dollar amounts specified in
Sections 3 and 4 for Plan Years ending on or before December 31,
2003.
	 
	 	(b)	 	Post-2003 Account - the account maintained for each
Participant to which are credited the dollar amounts specified in
Sections 3 and 4 for

 

 

	 	 	 	Plan Years beginning after December 31, 2003. To the extent
necessary to accommodate and effect the distribution
elections made by Participants pursuant to Section 8.3 and
Section 8.9.2 for Plan Years beginning after December 31,
2003, separate bookkeeping sub-accounts shall be established
with respect to each of the several annual forms of
distribution elections and pre-selected in-service
distribution elections made by Participants.

2.     CLARIFICATION REGARDING ENROLLMENT IN DEFERRAL OPTIONS. Effective January
1, 2004, Section 3.1.1 of the Plan Statement is amended to read in full as
follows:

     3.1.1. Amount of Deferrals. Through a voice response system (or other
written or electronic means) approved by the Committee, a Participant may elect
to defer between (and including) 1% and 100% of such Participant’s Board
Compensation for Board services for a Plan Year. The Committee may establish
prospectively other percentage limits. To be effective for a Plan Year, the
deferral election must be received by the Committee or its designee by the
enrollment deadline designated by the Committee. For a newly eligible
Participant, however, the deferral election must be received by the Committee
within 30 days after the first day of such eligibility, and, if so received,
deferral shall be effective as of the first day of the month following such
receipt with respect to the remainder of the Plan Year. Such deferral election
shall be irrevocable for the Plan Year with respect to which it is made once it
has been received by the Committee or its designee.

3.     MEASURING INVESTMENT. Effective as of August 1, 2002, the third sentence of
Section 4.1 of the Plan Statement is amended to read in full as follows:

The Measuring Investments as of August 1, 2002 are listed in Schedule I to the
Plan Statement.

4.     DISTRIBUTION OF POST-2003 ACCOUNTS. Effective for Plan Years beginning on
or after January 1, 2004, Section 8.2 of the Plan Statement is amended to read
in full as follows:

8.2. Form of Distribution. As determined under the rules of Section 8.4,
distribution of the Participant’s Post-2003 Account shall be made in one or
more of the following forms:

	 	(a)	 	Immediate Lump Sum. Distribution of the Participant’s
Post-2003 Account shall be made in a single lump sum. The amount
of such distribution shall be determined as soon as
administratively feasible as of a Valuation Date following the Plan
Year in which occurs the Participant’s Termination of Directorship
and shall be actually paid to the Participant as soon as
practicable after such determination (but not later than the last
day of the February following such Plan Year).
	 
	 	(b)	 	Installments. Distribution of the Participant’s Post-2003
Account shall be made in a series of five (5) or ten (10) annual
installments.

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(i)
	 	In General. The amount of the first
installment will be determined as soon as
administratively feasible following the Plan Year in
which occurs the Participant’s Termination of
Directorship and the amount of future installments will
be determined as soon as administratively feasible
following the end of each following Plan Year. The
amount of each installment shall be determined by
dividing the Participant’s Post-2003 Account balance as
of the Valuation Date as of which the installment is
being paid, by the number of remaining installment
payments to be made (including the payment being
determined). Such installments shall be actually paid
as soon as practicable after each such determination
(but not later than the last day of the February
following such Plan Year).
	 	 	 	 	 
	 	 	
(ii)
	 	Exception for Small Amounts.
Notwithstanding the foregoing provisions of this Section
8.2(b), if the value of the Participant’s Post-2003
Account as of the Valuation Date as of which an
installment payment is to be determined does not exceed
Five Thousand Dollars ($5,000), the Participant’s entire
Post-2003 Account shall be paid in the form of a lump
sum as soon as administratively practicable after such
Valuation Date. For this purpose, the value of the
Post-2003 Account shall be determined after reduction
for any lump sum or other payment that is also payable
to such Participant as of such Valuation Date.

	 	(c)	 	Five (5) Year Delay, Then Lump Sum. Distribution of the
Participant’s Post-2003 Account shall be made in a single lump sum
payment following the fifth (5th) anniversary of the Participant’s
Termination of Directorship. The amount of such distribution shall
be determined as soon as administratively feasible as of a
Valuation Date following the calendar year in which occurs the
fifth (5th) anniversary of the Participant’s Termination of
Directorship. Actual distribution shall be made as soon as
administratively practicable after such determination.
Notwithstanding the foregoing, if the value of the Participant’s
Post-2003 Account does not exceed Five Thousand Dollars ($5,000) as
of the Annual Valuation Date in the Plan Year in which the
Participant experienced a Termination of Employment or Disability
or any following Plan Year, the Participant’s Post-2003 Account
shall be paid in a lump sum as soon as practicable after such
determination (but not later than the last day of the February
following such Plan Year).
	 
	 	(d)	 	Ten (10) Year Delay, Then Lump Sum. Distribution of the
Participant’s Post-2003 Account shall be made in a single lump sum
payment following the tenth (10th) anniversary of the Participant’s
Termination of Directorship. The amount of such distribution shall
be determined as soon

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	 	 	 	as administratively feasible as of a Valuation Date following
the calendar year in which occurs the tenth (10th)
anniversary of the Participant’s Termination of Directorship.
Actual distribution shall be made as soon as
administratively practicable after such determination.
Notwithstanding the foregoing, if the value of the
Participant’s Post-2003 Account does not exceed Five Thousand
Dollars ($5,000) as of the Annual Valuation Date in any Plan
Year in which the Participant experienced a Termination of
Employment or Disability or any following Plan Year, the
Participant’s Post-2003 Account shall be paid in a lump sum
as soon as practicable after such determination (but not
later than the last day of the February following such Plan
Year).

5.     DISTRIBUTION OF PRE-2004 ACCOUNTS. Effective for Plan Years beginning on or
after January 1, 2004, Section 8 of the Plan Statement is amended by adding
thereto the following new Section 8.3 and all subsequent sections (and cross
references thereto) shall be renumbered accordingly.

8.3. Form of Distribution for Pre-2004 Account. As determined under the rules
of Section 8.4, distribution of the Participant’s Pre-2004 Account shall be
made in one of the following forms:

	 	(a)	 	Immediate Lump Sum. Distribution of the Participant’s
Pre-2004 Account shall be made in a single lump sum. The amount of
such distribution shall be determined as soon as administratively
feasible as of a Valuation Date following the Plan Year in which
occurs the Participant’s Termination of Directorship and shall be
actually paid to the Participant as soon as practicable after such
determination (but not later than the last day of the February
following such Plan Year).
	 
	 	(b)	 	Installments. Distribution of the Participant’s Pre-2004
Account shall be made in a series of five (5) or ten (10) annual
installments.

	 	 	 	 	 
	 	 	
(i)
	 	General Rule. The amount of the
first installment will be determined as soon as
administratively feasible following the Plan Year in
which occurs the Participant’s Termination of
Directorship and the amount of future installments will
be determined as soon as administratively feasible
following the end of each following Plan Year. The
amount of each installment shall be determined by
dividing the Participant’s Pre-2004 Account balance as
of the Valuation Date as of which the installment is
being paid, by the number of remaining installment
payments to be made (including the payment being
determined). Such installments shall be actually paid
as soon as practicable after each such determination

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	 	 	 	 	(but not later than the last day of the February
following such Plan Year).
	 	 	 	 	 
	 	 	
(ii)
	 	Accelerated Payment. A Participant
who has the installment option may, after Termination of
Directorship, elect through a voice response system (or
other written or electronic means) approved by the
Committee to receive a cash lump sum payment of the
total remaining balance of the Participant’s Pre-2004
Account (but not part thereof) for any reason; provided,
however, that the Pre-2004 Account balance will be
reduced by a penalty of ten percent (10%), and the
Participant will receive ninety percent (90%) of the
Pre-2004 Account balance. The penalty of ten percent
(10%) of the Pre-2004 Account balance will be forfeited
to UnitedHealth Group to be used as the Committee
determines in its discretion. The amount of such
distribution shall be determined as soon as
administratively feasible following the receipt of the
request by the Committee and shall be actually paid to
the Participant as soon as practicable after such
determination.
	 	 	 	 	 
	 	 	
(iii)
	 	Exception for Small Amounts.
Notwithstanding the foregoing provisions of this Section
8.3(b), if the value of the Participant’s Pre-2004
Account as of the Valuation Date as of which an
installment payment is to be determined does not exceed
Five Thousand Dollars ($5,000), the Participant’s entire
Pre-2004 Account shall be paid in the form of a lump sum
as soon as administratively practicable after such
Valuation Date.

	 	(c)	 	Delayed Lump Sum. Distribution of the Participant’s
Pre-2004 Account shall be made in a single lump sum following the
tenth (10) anniversary of the Participant’s Termination of
Directorship, subject to the following rules:

	 	 	 	 	 
	 	 	
(i)
	 	General Rule. The amount of such
distribution shall be determined as soon as
administratively feasible as of a Valuation Date
following the Plan Year in which occurs the tenth (10th)
anniversary of the Participant’s Termination of
Directorship. Actual distribution shall be made as soon
as practicable after such determination (but not later
than the last day of February following such Plan Year).
Notwithstanding the foregoing, if the value of the
Participant’s Pre-2004 Account does not exceed Five
Thousand Dollars ($5,000) as of the Annual Valuation
Date in any year following the Plan Year in which the
Participant experienced a Termination of Employment or
Disability or any following Plan Year, the Participant’s
Pre-2004 Account shall be paid in a lump

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	 	 	 	 	sum as soon as practicable after such determination
(but not later than the last day of the February
following such Plan Year).
	 	 	 	 	 
	 	 	
(ii)
	 	Immediate Accelerated Payment. A
Participant who has experienced a Termination of
Directorship and for whom the delayed lump sum
distribution option is in effect may elect through a
voice response system (or other written or electronic
means) approved by the Committee to receive a lump sum
distribution of the Participant’s Pre-2004 Account
before the tenth (10th) anniversary of the Participant’s
Termination of Directorship; provided, however, that the
Pre-2004 Account balance will be reduced by a penalty of
ten percent (10%), and the Participant will receive
ninety percent (90%) of the Pre-2004 Account balance.
The penalty of ten percent (10%) of the Pre-2004 Account
balance will be forfeited to UnitedHealth Group to be
used as the Committee determines in its discretion. The
amount of such distribution shall be determined as soon
as administratively feasible following the receipt of
the request by the Committee and shall be actually paid
to the Participant as soon as practicable after such
determination.
	 	 	 	 	 
	 	 	
(iii)
	 	Delayed Accelerated Payment. A
Participant who has elected the delay lump sum
distribution option may, after Termination of
Directorship, make a one-time election through a voice
response system (or other written or election means),
approved by the Committee to receive either a lump sum
distribution of the Participant’s Pre-2004 Account
before the tenth (10th) anniversary of the Participant’s
Termination of Directorship, or five (5) annual
installments, subject to the following rules:

	 	 	 	 	 
	 	 	
(A)
	 	Any election to receive a
lump sum payment before the tenth (10) anniversary
of the Participant’s Termination of Directorship
must be received by the Committee no later than
the December 31 of the calendar year in which
occurs the eighth (8th) anniversary of the
Participant’s Termination of Directorship.
	 	 	 	 	 
	 	 	
(B)
	 	Any election to receive
five (5) annual installments must be received by
the Committee no later than the December 31 of the
calendar year in which occurs the fourth (4th)
anniversary of the Participant’s Termination of
Directorship.
	 	 	 	 	 
	 	 	
(C)
	 	Any election to receive
either a lump sum distribution of the
Participant’s Pre-2004 Account before the tenth
(10th)

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	 	 	 	 	anniversary of the Participant’s Termination of
Directorship or five (5) annual installments
shall not be effective until twelve (12) months
after it is received by the Committee (if the
Participant dies before the end of such 12-month
period, such election shall not be effective).

6.     ELECTION OF FORM OF DISTRIBUTION BY PARTICIPANT. Effective for Plan Years
beginning on or after January 1, 2004, Section 8.4 (formerly Section 8.3) of
the Plan Statement is amended to read in full as follows:

8.4. Election of Form of Distribution by Participant.

     8.4.1. Initial Enrollment. Through a voice response system (or other
written or electronic means) approved by the Committee, each Participant shall
elect a form of distribution at the time of initial enrollment in the Plan,
subject to the following:

	 	(a)	 	Forms of Distribution For Pre-2004 Accounts. If an
individual was first eligible to become a Participant in the Plan
prior to December 31, 2003, such Participant elected at the time of
initial enrollment in the Plan whether to receive distribution of
the Participant’s Pre-2004 Account (as described in Section 8.3) in
either: (i) an immediate lump sum, (ii) five (5) or ten (10) annual
installments, or (iii) a delayed lump sum following the tenth
(10th) anniversary of the Participant’s Termination of
Directorship. An initial distribution election made by a
Participant for any Plan Year beginning prior to December 31, 2003,
shall remain in effect with respect to the Participant’s Pre-2004
Account for all subsequent Plan Years unless the Participant elects
to change the form of distribution pursuant to the provisions of
Section 8.4.4. An initial distribution election made by a
Participant for any Plan Year beginning prior to December 31, 2003,
shall remain in effect with respect to the Participant’s Post-2003
Account for all Plan Years beginning on or after January 1, 2004,
unless, prior to a subsequent Plan Year, the Participant files a
new distribution election for the Participant’s Post-2003 Account
with the Committee in accordance with the provisions of Section
8.4.3.
	 
	 	(b)	 	Forms of Distribution For Post-2003 Account. If an
individual is first eligible to become a Participant in this Plan
after December 31, 2003, such Participant shall elect at the time
of initial enrollment in the Plan whether distribution of the
Participant’s Post-2003 Account shall be made (as described in
Section 8.2) in either: (i) an immediate lump sum, (ii) five (5) or
ten (10) annual installments, or (iii) a delayed lump sum following
the fifth (5th) or tenth (10th) anniversary of the Participant’s
Termination of Directorship. Such distribution election shall
remain in effect with respect to the Participant’s Post-2003
Account for all subsequent Plan Years unless, prior to a subsequent
Plan Year, the Participant files a new

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	 	 	 	distribution election for the Participant’s Post-2003 Account
with the Committee in accordance with the provisions of
Section 8.4.3.

     8.4.2. Default Election of Form of Distribution. If a Participant fails
to elect a form of distribution, such Participant shall be deemed to have
elected that distribution be made in an immediate lump sum as described in
Section 8.2(a) or Section 8.3(a).

     8.4.3. Separate Distributions Elections Permitted Each Plan Year for
Post-2003 Account. Any initial or default distribution election made by a
Participant with respect to the Participant’s Post-2003 Account shall remain in
effect with respect to the Participant’s Post-2003 Account for all subsequent
Plan Years unless, prior to a subsequent Plan Year, the Participant files a new
distribution election for the Participant’s Post-2003 Account electing a
different form of distribution for that portion of the Participant’s Post-2003
Account attributable to deferrals for such subsequent Plan Year (and any
investment gains or losses on such deferrals). Through a voice response system
(or other written or electronic means) approved by the Committee, a Participant
may elect a different form of distribution for that portion of the
Participant’s Post-2003 Account attributable to deferrals for a subsequent Plan
Year (and any investment gains or losses on such deferrals). To be effective
for deferrals for a Plan Year, the new distribution election must be received
by the Committee or its designee by the deadline designated by the Committee.
If a Participant files a new distribution election with respect to the
Participant’s Post-2003 Account with the Committee pursuant to this Section
8.4.3, such distribution election shall remain in effect for all subsequent
Plan Years unless, prior to a subsequent Plan Year, the Participant files with
the Committee another distribution election for the Participant’s Post-2003
Account electing a different form of distribution for that portion of the
Participant’s Post-2003 Account attributable to deferrals for such subsequent
Plan Year (and any investment gains or losses in such deferrals).

     8.4.4. Periodic Re-Election. Through a voice response system (or other
written or electronic means) approved by the Committee, initial and default
distribution elections may be changed by the Participant from time to time,
subject to the following:

	 	(a)	 	For Pre-2004 Accounts. Each subsequent distribution
election filed with respect to the Participant’s Pre-2004 Account
shall supercede all prior distribution elections filed with respect
to the Participant’s Pre-2004 Account and shall be effective as to
the Participant’s entire Pre-2004 Account as if the new
distribution election had been made at the time of the
Participant’s initial enrollment.
	 	 	 	 
	 	(b)	 	For Post-2003 Accounts. Each subsequent distribution
election filed with respect to the Participant’s Post-2003 Account
shall supersede all prior distribution elections filed with respect
to such specified portion of the Participant’s Post-2003 and shall
be effective as to the specified portion of the Participant’s
Post-2003 Account. If, however, the subsequent distribution
election does not have the effect of delaying payment of the lump
sum (or, in the case of installments, of each installment) under
the

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	 	 	 	prior election for at least five (5) years, such distribution
election shall be disregarded as if it had never been filed
(and the prior effective distribution election shall be given
effect).
	 	 	 	 
	 	(c)	 	In General. Notwithstanding the foregoing, any new
distribution election shall be disregarded as if it had never been
filed (and the prior effective distribution election shall be given
effect) unless the distribution election:

	 	 	 	 	 
	 	 	
(i)
	 	is filed by a Participant who is
still performing Board services,
	 	 	 	 	 
	 	 	
(ii)
	 	is filed with the Committee at least
twelve (12) months before the Participant’s scheduled
distribution date following the Participant’s
Termination of Directorship, and
	 	 	 	 	 
	 	 	
(iii)
	 	is filed at least twelve (12) months
after the initial distribution election for the
Participant’s Pre-2004 Account (or, if one or more prior
changes has been filed, within twelve (12) months after
the latest of such changes was filed), or is filed at
least twelve (12) months after the initial distribution
election for the specified portion of the Participant’s
Post-2003 Account (or, if one or more prior changes has
been filed, within twelve (12) months after the latest
of such changes was filed).
	 	 	 	 	 
	 	 	No spouse, former spouse, Beneficiary or other person shall
have any right to participate in the Participant’s decision
to revise distribution elections.

7.     IN-SERVICE DISTRIBUTIONS. Effective for all in-service distributions
payable on or after January 1, 2004, Section 8.9 (formerly Section 8.8) of the
Plan Statement is amended to read in full as follows:

8.9. In Service Distributions.

     8.9.1. Pre-Selected In-Service Distributions From Pre-2004 Account. Each
Participant who initially enrolled in the Plan prior to January 1, 2004, had a
one-time opportunity, when initially enrolling in the Plan, to elect one (1) or
more pre-selected in-service distribution dates for all or a portion of the
Participant’s Pre-2004 Account, subject to the following rules:

	 	(a)	 	Such election shall be made through a voice response system
(or other written or electronic means) approved by the Committee.
	 
	 	(b)	 	No such distribution will be made from the Participant’s
Pre-2004 before the January 1 of the calendar year that follows the
third full Plan Year after the Participant first enrolled in the
Plan.

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	 	(c)	 	Only one such in-service distribution from the
Participant’s Pre-2004 Account will be made in any Plan Year.
	 
	 	(d)	 	The minimum amount of such in-service distribution from the
Participant’s Pre-2004 Account is One Thousand Dollars ($1,000).
	 
	 	(e)	 	Through a voice response system (or other written or
electronic means) approved by the Committee, the Participant may
request to postpone any pre-selected in-service distribution date.
A pre-selected in-service distribution date may be postponed only
once. The Participant must file the extension request with the
Committee at least twelve (12) months before the scheduled date of
distribution.
	 
	 	(f)	 	Through a voice response system (or other written or
electronic means) approved by the Committee, the Participant may
request that a pre-selected in-service distribution date be
cancelled (whether or not previously extended). The Participant
must file the cancellation request with the Committee at least
twelve (12) months before the scheduled date of distribution.
	 
	 	(g)	 	The distribution amount shall be determined as soon as
administratively feasible on or after the pre-selected distribution
date and shall be actually paid as soon as practicable after such
determination.
	 
	 	(h)	 	If the Participant dies or experiences a Termination of
Directorship before the scheduled pre-selected in-service
distribution date, no distribution shall be made on such date.

     8.9.2. Pre-Selected In-Service Distributions From Post-2003 Account. Each
Participant has the opportunity, when enrolling in the Plan for each Plan Year
beginning on or after January 1, 2004, to elect one (1) or more pre-selected
in-service distribution dates for all or a portion of the Participant’s
Post-2003 Account attributable to deferrals for such Plan Year (and any
investment gains or losses on such deferrals), subject to the following rules:

	 	(a)	 	Such election shall be made through a voice response system
(or other written or electronic means) approved by the Committee.
	 
	 	(b)	 	No such distribution will be made before the January 1 of
the calendar year that follows the third full Plan Year after the
Participant was first eligible to elect a pre-selected in-service
distribution from that portion of the Participant’s Post-2003
Account attributable to deferrals for such Plan Year and any
subsequent investment gains or losses on such deferrals (e.g., the
earliest pre-selected in-service distribution date for any
deferrals made in 2004 is January 1, 2007).

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	 	(c)	 	A Participant may receive more than one (1) pre-selected
in-service distribution from the Participant’s Post-2003 Account in
any Plan Year but only if each distribution is attributable to
deferrals for different Plan Years. Only one (1) pre-selected
in-service distribution may be made in any Plan Year from that
portion of the Participant’s Post-2003 Account attributable to
deferrals for the same Plan Year.
	 
	 	(d)	 	The Participant who elects a pre-selected in-service
distribution date and subsequently experiences a Termination of
Directorship will receive such in-service distribution, if the
in-service distribution date is prior to the distribution of the
Participant’s total Post-2003 Account.
	 
	 	(e)	 	The minimum amount of any pre-selected in-service
distribution from the Participant’s Post-2003 Account is One
Thousand Dollars ($1,000).
	 
	 	(f)	 	Through a voice response system (or other written or
electronic means) approved by the Committee, the Participant may
request to postpone any pre-selected in-service distribution date
for five (5) years. A pre-selected in-service distribution may be
postponed only once. The Participant must file the extension
request with the Committee at least twelve (12) months before the
scheduled date of distribution.
	 
	 	(g)	 	A Participant may not cancel any pre-selected in-service
distribution from the Participant’s Post-2003 Account.
	 
	 	(h)	 	The distribution amount shall be determined as soon as
administratively feasible on or after the pre-selected distribution
date and shall be actually paid as soon as practicable after such
determination.

     8.9.3. On Demand In-Service Distributions.

	 	(a)	 	Election. Through a voice response (or other written or
electronic means) approved by the Committee, a Participant may
elect to receive all or a portion of such Participant’s Pre-2004
Account prior to Termination of Directorship for any reason;
provided, however, that the requested distribution amount will be
reduced by a penalty equal to ten percent (10%) of the requested
amount, and the Participant will receive ninety percent (90%) of
the requested amount. The penalty of ten percent (10%) of the
requested amount will be forfeited to UnitedHealth Group to be used
as the Committee determines in its discretion. A Participant may
not elect to receive an on demand in-service distribution of any
portion of the Participant’s Post-2003 Account.
	 
	 	(b)	 	Distribution Amount. The minimum amount of such
distribution is One Thousand Dollars ($1,000). The amount of such
distribution shall be determined as soon as administratively
feasible as of a Valuation Date

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	 	 	 	following the receipt of the request by the Committee or its
designee and shall be actually paid to the Participant as
soon as practicable after such determination.
	 
	 	(c)	 	Suspension Rule. If a Participant receives such a
distribution, the Participant’s deferrals under Section 3 shall
cease as soon as administratively practicable following the date
such distribution is made. The Participant may not again elect to
defer compensation under this Plan until the enrollment for the
Plan Year that begins at least six (6) months after such
distribution.

     8.9.4. In-Service Distribution for Financial Hardship.

	 	(a)	 	Election. A Participant may elect in writing to receive
all or part of the Participant’s Account prior to Termination of
Directorship to alleviate a Financial Hardship. A Beneficiary of a
deceased Participant may also request an early distribution for
Financial Hardship.
	 
	 	(b)	 	Financial Hardship Defined. For purposes of this Plan,
“Financial Hardship” means a severe financial hardship to the
Participant resulting from a sudden and unexpected illness or
accident of the Participant or a dependent (as defined in section
152(a) of the Code), loss of the Participant’s property due to
casualty, or other similar extraordinary and unforeseeable
emergency circumstances arising as a result of events beyond the
control of the Participant. If a hardship is or may be relieved
either (i) through reimbursement or compensation by insurance or
otherwise, (ii) by liquidation of the Participant’s assets (to the
extent the liquidation of such assets would not itself cause severe
financial hardship), or (iii) by cessation of deferrals under this
Plan (at the earliest possible date otherwise permitted under this
Plan) or any 401(k) plan, then the hardship shall not constitute a
Financial Hardship for purposes of this Plan. If a Beneficiary of
a deceased Participant requests an early distribution for Financial
Hardship, then the references in this definition to “Participant”
shall be deemed to be references to such Beneficiary.
	 
	 	(c)	 	Distribution Amount. The minimum amount of such
distribution is One Thousand Dollars ($1,000). The amount of such
distribution shall be determined as soon as administratively
feasible on or after approval of the request by the Committee or
its designee and shall be actually paid as soon as practicable
after such approval.
	 
	 	(d)	 	Suspension Rule. If a Participant receives a distribution
due to Financial Hardship, the Participant’s deferrals under
Section 3 will cease as soon as administratively practicable
following the date such distribution is made. The Participant may
not again elect to defer compensation under this Plan

-12-

 

	 	 	 	until the enrollment period for the Plan Year that begins at
least six (6) months after such distribution.

8.     SCHEDULE I. Effective August 1, 2002, Schedule I to the Plan Statement is
amended by substituting therefor the Schedule I attached to this amendment.

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9.     SAVINGS CLAUSE. Save and except as hereinabove expressly amended, the Plan
Statement shall continue in full force and effect.

	 	 	 	 	 	 	 	 	 
	
Dated:
	 	, 2004.
	 	 	 	UNITEDHEALTH GROUP INCORPORATED	 	 
	 	

	 	 	 	 	By:	 	 
	 	 	 	 	 	 	
	 

-14-

 

SCHEDULE I

MEASURING INVESTMENTS

A.     Measuring Investments as of August 1, 2002. The following are the Measuring
Investments as of August 1, 2002:

	 	1.	 	American Funds EuroPacific A
	 
	 	2.	 	Dodge & Cox Income Fund
	 
	 	3.	 	Dodge & Cox Stock Fund
	 
	 	4.	 	PBHG Growth Fund (Note: Effective January 15, 2004, this
fund is closed)
	 
	 	5.	 	Rice Hall James Micro Cap Portfolio
	 
	 	6.	 	Vanguard Institutional Index Fund (Investor Shares)
	 
	 	7.	 	Vanguard MidCap Index Fund (Investor Shares)
	 
	 	8.	 	Vanguard Prime Money Market (Investor Shares)
	 
	 	9.	 	Wellington Management’s Stock Fund: Y
	 
	 	10.	 	Wellington Management: Hartford MidCap Fund: Y
	 
	 	11.	 	Wells Fargo Growth Balanced Fund (Institutional Class)
	 
	 	12.	 	Wells Fargo Stable Income (Institutional Class)
	 
	 	13.	 	Wells Fargo Strategic Growth Allocation Fund (Institutional
Class)
	 
	 	14.	 	Wells Fargo Strategic Income Fund (Institutional Class)

B.     Measuring Investments prior to August 1, 2002. The following are the
Measuring Investments prior to August 1, 2002:

	 	1.	 	One-Choice Conservative — American Century Strategic
Allocation:
Conservative Fund
	 
	 	2.	 	One-Choice Moderate — American Century Strategic
Allocation:
Moderate Fund

SI-1

 

	 	3.	 	One-Choice Aggressive — American Century Strategic
Allocation:
Aggressive Fund
	 
	 	4.	 	Bond Index — Vanguard Total Bond Market Index Fund
	 
	 	5.	 	S & P 500 Index — First American Index Fund
	 
	 	6.	 	Wilshire 4500 Index — Vanguard Extended Market Index Fund
	 
	 	7.	 	Money Market — First American Prime Obligations Fund
	 
	 	8.	 	Stable Value — Wells Fargo Stable Income Fund
	 
	 	9.	 	Bond — Loomis Sayles Bond Fund
	 
	 	10.	 	Large-Cap — Dodge & Cox Stock Fund
	 
	 	11.	 	Large-Cap Growth — Alliance Premier Growth Fund
	 
	 	12.	 	Mid-Cap Value — Sound Shore Fund
	 
	 	13.	 	Mid-Cap Growth — Wanburg Pincus Emerging Growth Fund
	 
	 	14.	 	International Value — Templeton Foreign Fund
	 
	 	15.	 	International Growth — American Century International
Growth Fund
	 
	 	16.	 	Small-Cap Value — Loomis Sayles Small-Cap Value Fund
	 
	 	17.	 	Small-Cap Growth — Loomis Sayles Small-Cap Growth Fund
	 
	 	18.	 	Mid-Cap Growth — PBHG Growth Fund (Note: Effective January
15, 2004, this fund is closed)

C.     Default Rules. If a Participant does not designate which Measuring
Investments shall be used to determine the value of the Participant’s Account,
the value of the Participant’s Account will be determined using the following
Measuring Investments:

	 	(i)	 	On or After August 1, 2002. For all amounts credited to
the Participant’s Account on or after August 1, 2002, the default
Measuring Investment shall be the Wells Fargo Strategic Income
Fund.
	 
	 	(ii)	 	Prior to August 1, 2002. For all amounts credited to the
Participant’s Account prior to August 1, 2002, the default
Measuring Investment shall be the American Century Strategic
Allocation Conservative Fund.

SI-2exv10wxoy

 

EXHIBIT 10(O)

EMPLOYMENT AGREEMENT

          This
Agreement, effective as of October 1, 1998 (the “Effective Date”),
is made by and between David S. Wichmann (“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 30,000 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
Senior Vice President, Corporate Development 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 $200,000, payable bi-weekly, less all applicable withholdings
and
deductions (the “Initial Base Salary”). Executive shall receive a periodic
performance review and consideration for an increase in the Initial Base
Salary.

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

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

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

3. Term and Termination.

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

B. Termination of Agreement.

1. By Mutual Agreement: This Agreement and Executive’s employment
hereunder may be terminated at any time by the mutual written agreement of
the parties.

2. By United HealthCare: United HealthCare may terminate this Agreement
and Executive’s employment hereunder on 30 days’ written notice.

3. By Executive: Executive may terminate this Agreement and Executive’s
employment hereunder on 30 days’ written notice.

4.
Death, Disability, Etc.: This Agreement and Executive’s employment by
United HealthCare shall terminate immediately upon Executive’s death. This
Agreement and Executive’s employment hereunder shall automatically
terminate in the event

-2-

 

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”).

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

-3-

 

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.

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

-4-

 

HealthCare’s Code of Conduct or (c) the commission of any criminal act or
act of fraud or dishonesty by Executive in connection with Executive’s
employment by United HealthCare. Prior to the termination of Executive’s
employment under subsection (a) of this definition of Cause, United
HealthCare shall provide Executive with a 30 day notice specifying the
basis for Cause. If the Cause described in the notice is cured to United
HealthCare’s reasonable satisfaction prior to the end of the 30 day notice
period, Executive’s employment hereunder shall not be terminated on that
basis.

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

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

-5-

 

notice from United HealthCare or otherwise is definitively informed of the
events constituting the Change in Employment. No Change in Employment
shall be deemed to have occurred if Executive fails to send the notice of
election within the 90 day period. Executive’s failure to treat a
particular Change in Employment as a termination of employment shall not
preclude Executive from treating a subsequent Change in Employment as a
termination of employment. The effective date of a Change in Employment
termination shall be the date 30 days after United HealthCare receives the
written notice of election.

4. Property Rights, Confidentiality, Non-Disparagement, Non-Solicit and
Non-Compete Provisions.

     A. United HealthCare’s Property.

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

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

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.

-6-

 

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

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

D. Non-Solicitation. During (i) the term of this Agreement, (ii) the
Severance Period or any period in which Executive receives severance
compensation pursuant to United HealthCare’s 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’s 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

-7-

 

the provisions of this Section 4E be in effect for up to 24 months
following
the effective date of Executive’s employment termination if, during the
period up to 24 months specified by United HealthCare, United HealthCare
pays
Executive severance compensation equal to biweekly payments of 1/26 of the
Severance Compensation and the Cash Payment. United HealthCare must send
written notice of such election within 10 days after it receives written
notice of Executive’s termination of employment. This Section 4E shall
survive the termination of this Agreement.

5. Miscellaneous.

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

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

	 	 	 
	United HealthCare:	 	
300 Opus Center
	 	 	
9900 Bren Road East
	 	 	
Minnetonka, MN 55343
	 	 	
Attn: General Counsel
	 	 	 
	Executive:	 	
300 Opus Center
	 	 	
9900 Bren Road East
	 	 	
Minnetonka, MN 55343
	 	 	
Attn: David S. Wichmann

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.

-8-

 

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

H. No Third-Party Beneficiaries. This Agreement shall not confer or be
deemed
or construed to confer any rights or benefits upon any person other than
the
parties.

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

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

	 	 	 	 	 
	
United HealthCare Services, Inc.
	 	Executive
	 	 	 	 	 
	By	 	
/s/ Robert Backes
	 	/s/ David S. Wichmann
	 	 	
	 	

	Its	 	
SR VP HR	 	 
	 	 	
	 	 

-9-

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