Document:

ESV-3.31.2012-Exhibit 10.2

FIRST AMENDMENT TO
364-DAY CREDIT AGREEMENT 
AND GUARANTY AGREEMENT

THIS FIRST AMENDMENT TO 364-DAY CREDIT AGREEMENT AND GUARANTY AGREEMENT (this “First Amendment”) is entered into as of May 2, 2012 (the “Closing Date”), by and among ENSCO PLC, an English public limited company (“Parent”), ENSCO INTERNATIONAL INCORPORATED, a Delaware corporation (“EII”), ENSCO UNIVERSAL LIMITED, an English private limited company (“EUL”), ENSCO OFFSHORE INTERNATIONAL COMPANY, a Cayman Islands exempted company (“EOIC”), PRIDE INTERNATIONAL, INC., a Delaware corporation (“Pride”), PRIDE INTERNATIONAL LTD., a British Virgin Islands company (“Pride International”), ENSCO GLOBAL IV LTD. (f/k/a Pride Global Ltd.), a British Virgin Islands company (“Global IV”) and ENSCO OVERSEAS LIMITED,  a Cayman Islands exempted company (“ENSCO Overseas” and, together with Parent, EII, EUL, EOIC, Pride, Pride International and Global IV, the “Borrowers”), ENSCO GLOBAL LIMITED, a Cayman Islands exempted company (“Global Limited”), ENSCO UNITED INCORPORATED, a Delaware corporation (“EUI”) and ENSCO INVESTMENTS LLC, a Nevada limited liability company (“ENSCO Investments” and, together with EII, Parent, Global Limited, EUI and Pride, the “Guarantors” and, together with the Borrowers, the “Loan Parties”), Citibank, N.A., as administrative agent (the “Administrative Agent”), and the Banks party hereto (the “Banks”).
Preliminary Statements

WHEREAS, the Loan Parties, the Administrative Agent and the Banks, are parties to that certain 364-Day Credit Agreement dated as of May 12, 2011 (as same may be further amended, restated, increased and extended, the “Credit Agreement”; capitalized terms used herein that are not defined herein and are defined in the Credit Agreement are used herein as defined in the Credit Agreement); and
WHEREAS, the Guarantors are party to that certain Guaranty dated as of May 12, 2011 (as same may be further amended, restated, increased and extended, the “Guaranty Agreement”) in favor of the Administrative Agent; and
WHEREAS, the Borrowers have requested that the Banks and the Administrative Agent modify the Credit Agreement and the Guaranty Agreement and change certain terms thereof, and the Administrative Agent and the Banks party hereto, which Banks constitute all the Banks, have agreed to do so subject to the terms and conditions of this First Amendment; and
WHEREAS, the Loan Parties, the Administrative Agent and the Banks party hereto wish to execute this First Amendment to evidence such agreement.
NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Loan Parties, the Administrative Agent and the Banks party hereto hereby agree as follows:
Section 1.Amendments to Credit Agreement.      

(a)Section 1.01 of the Credit Agreement is hereby amended by adding the following new definition:

"Change in Law" means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any governmental authority, central bank or comparable agency or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any governmental authority, central bank or comparable agency; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued. 
(b)Section 1.01 of the Credit Agreement is hereby amended by amending and restating the following definitions as follows:

"Consolidated Intangible Assets" means, on any date of its determination for the Parent and its Consolidated Subsidiaries that are Restricted Subsidiaries on a consolidated basis, assets of such Persons that are considered to be intangible assets under GAAP. 
"Consolidated Shareholders' Equity" means, as of any date of determination for the Parent and its Consolidated Subsidiaries that are Restricted Subsidiaries, determined on a consolidated basis, shareholders' equity as of that date determined in accordance with GAAP; provided, that for purposes of Section 5.02(a), “Consolidated Shareholders' Equity” shall be determined for the Parent and all of its Consolidated Subsidiaries. 
"Consolidated Tangible Net Worth" means, as of any date of determination, for the Parent and its Consolidated Subsidiaries that are Restricted Subsidiaries, determined on a consolidated basis, Consolidated Shareholders' Equity on such date minus Consolidated Intangible Assets on such date, determined in accordance with GAAP.
"Revolving Commitment Termination Date" means the earlier of (a) May 9, 2013 and (b) the date of termination in whole of the Commitments pursuant to this Agreement. 
"Term Loan Conversion Date" means May 9, 2013. 
"Third Amended and Restated Revolving Credit Agreement" means the $1,450,000,000 Third Amended and Restated Credit Agreement among the Loan Parties, Citibank, N.A., as Administrative Agent, the lead arrangers and other agents named therein and the lenders from time to time party thereto, as amended, supplemented, restated or otherwise modified from time to time.
(c)Section 1.01 of the Credit Agreement is hereby amended by adding the following proviso at the end of the definition of “Debt”:

; provided further that, solely for purposes of Section 5.01(k) (including, without limitation, in respect of all calculations made by reference to Section 5.01(k)) and Section 22 of the Guaranty, “Debt” shall not include any intercompany Debt owing to the Parent or any Restricted Subsidiary.

(d)Section 2.03(c)(ii) of the Credit Agreement is hereby amended and restated in its entirety as follows:

(ii) quarterly in arrears on or before the later of (A) the last day of each March, June, September and December, commencing June 30, 2011, (B) the date that is three Business Days following the Parent's receipt of an invoice for such fees, and (C) the Revolving Commitment Termination Date.
(e)Section 2.10(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

(a)    If, due to any Change in Law, there shall be any increase in the cost to any Bank of agreeing to make or making, funding or maintaining LIBOR Advances (or of maintaining its obligation to make any such Advance), or any reduction in amount of any sum received or receivable by such Bank hereunder (whether of principal, interest, or any other amount) (other than increased costs described in Section 2.06 or in Section 2.10(c) below), then the applicable Borrower or Borrowers shall from time to time, upon demand by such Bank (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Bank additional amounts sufficient to compensate such Bank for such increased cost unless such Bank shall have withdrawn its demand for additional compensation for such increased cost pursuant to Section 2.16(b) or such Borrower is not obligated to pay such amounts pursuant to Section 2.16(a).  Such Bank shall provide to such Borrower a reasonable explanation of such amounts to be paid by such Borrower.
(f)Section 2.10(c) of the Credit Agreement is hereby amended and restated in its entirety as follows:

(c)    If any Bank shall have determined that any Change in Law has the effect of increasing the amount of capital required or expected to be maintained as a result of its Commitment hereunder, such Bank shall have the right to give prompt written notice and demand for payment thereof to the Parent with a copy to the Administrative Agent (which notice and demand shall show in reasonable detail the calculation of such additional amounts as shall be required to compensate such Bank for the increased cost to such Bank or such Bank's holding company as a result of such increase in capital), although the failure to give any such notice shall not, unless such notice fails to set forth the information required above, release or diminish any of the Borrowers' obligations to pay additional amounts pursuant to this Section 2.10(c), and subject to Section 2.16, such Borrower shall pay such additional amounts.  
(g)Section 3.02(d)(v), Section 5.01(a)(i)(B), Section 5.01(a)(ii)(B) and Section 5.01(k)(ii) of the Credit Agreement are hereby amended such that each reference to the word “Subsidiary” set forth therein is hereby deleted in its entirety and the words “Restricted Subsidiary” are substituted in lieu thereof.

(h) Each of Section 4.01(d)(i) and Section 4.01(d)(iii) of the Credit Agreement is hereby amended by replacing the words “December 31, 2010” with the words “December 31, 2011.”

(i)Section 4.01(e) of the Credit Agreement is hereby amended and restated in its entirety as follows:
(e)    Other than as disclosed in the annual report on Form 10-K of Parent for the year ended December 31, 2011 and described in Sections 4.01(d)(i) and (ii), there is no action, suit, proceeding, or investigation pending against any Loan Party or any Subsidiary of a Loan Party, or to the knowledge of any Loan Party threatened against such Loan Party or any of its Subsidiaries, before any court or arbitrator or any governmental body, agency or official in which there is a reasonable possibility of an adverse decision which could have a Material Adverse Effect or affect the legality, validity or enforceability of the Loan Documents. 

(j)Section 5.01(k)(i) of the Credit Agreement is hereby amended and restated in its entirety as follows:

(i)    Within 10 Business Days of delivery of each compliance certificate delivered pursuant to Section 5.01(a), the Parent shall cause one or more of its Subsidiaries as determined by the Parent to execute and deliver to the Administrative Agent, at the Parent's option, either (x) a Guaranty in substantially the form of the Guaranty delivered by Parent, Global, EII, and EUI on the Effective Date or (y) a Borrower Counterpart, in each case, to the extent necessary to ensure that the aggregate amount of Debt of the Restricted Subsidiaries that are not Loan Parties does not exceed 10% of Consolidated Tangible Net Worth, as reflected on the most recent certificate delivered pursuant to Section 3.02(c) or 5.01(a), as applicable.
(k)Schedule I to the Credit Agreement is hereby amended and restated with Schedule I attached to this First Amendment.

(l)Schedule VI to the Credit Agreement is hereby amended and restated with Schedule VI attached to this First Amendment.

(m)Each Guarantor that signs this First Amendment shall be deemed to be a party to the Credit Agreement as a Guarantor.

(n)Any Bank that does not sign this First Amendment shall cease to have a Commitment or be a “Bank” under the Credit Agreement, effective as of the First Amendment Effective Date.

Section 2.Amendments to Guaranty Agreement.  

(a)The words “as amended, restated, supplemented or otherwise modified from time to time” are inserted in the first sentence of the second paragraph of the Guaranty Agreement after the first open parenthesis and before the words “'Credit Agreement').”

(b)Section 22 of the Guaranty Agreement is hereby amended such that the reference to the word “Subsidiary” set forth therein is hereby deleted in its entirety and the words “Restricted Subsidiary” are substituted in lieu thereof.

Section 3.Representations True; No Default.  Each Loan Party represents and warrants that:

(a)this First Amendment has been duly authorized, executed and delivered on its behalf, and the Credit Agreement, as amended by this First Amendment, and the other Loan Documents to which it is a party, constitute the legal, valid and binding obligations of such Loan Party, enforceable against such Loan Party in accordance with their terms, except as such enforceability may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors' rights generally and by general principles of equity;

(b)the representations and warranties of such Loan Party contained in Article IV of the Credit Agreement (as amended by this First Amendment) are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof (other than (i) those representations and warranties that expressly relate to a specific earlier date, which representations and warranties were true and correct in all material respects as of such earlier date and (ii) those representations and warranties that are by their terms subject to a materiality qualifier, which representations and warranties are true and correct in all respects); and

(c)after giving effect to this First Amendment, no Default or Event of Default under the Credit Agreement has occurred and is continuing.

Section 4.Reaffirmation of Guaranty. Each of the undersigned Guarantors (a) acknowledges this First Amendment and each of the terms and provisions contained herein, (b) after giving effect to this First Amendment, ratifies, confirms and reaffirms the validity, enforceability and binding nature of the Guaranties to which it is a party and of all of the Obligations defined therein, and (c)  acknowledges and agrees that each Guaranty to which it is party is, and shall continue to be, in full force and effect on, from and after the date hereof and that no defense, counterclaim, cross-complaint, right of set-off or other similar claim or right of any kind exists with respect to the validity or enforceability of such Guaranty or any of the obligations thereunder.

Section 5.Effectiveness.  This First Amendment shall become effective as of 12:01 a.m. Eastern Standard Time on May 10, 2012 (the “First Amendment Effective Date”) when, and only when, the Administrative Agent notifies Parent that the Administrative Agent (or its counsel) has received:

(a)multiple original counterparts from each party hereto, as requested by the Administrative Agent, of this First Amendment duly and validly executed and delivered by duly authorized officers of each such party;

(b)legal opinions of Maples and Calder, Cayman Islands and British Virgin Islands counsel for the Loan Parties, in form and substance reasonably satisfactory to the Administrative Agent;

(c)legal opinions of Baker & McKenzie, LLP, U.S. and United Kingdom counsel for the Loan Parties, in form and substance reasonably satisfactory to the Administrative Agent;

(d)a legal opinion of Emmel Klegerman, Nevada counsel for the Loan Parties, in form and substance reasonably satisfactory to the Administrative Agent;

(e)a promissory note payable to the order of each Bank, executed by the Borrowers;

(f)a certificate of the Secretary or an Assistant Secretary of each Loan Party certifying (i) the resolutions of the Board of Directors of such Loan Party approving this First Amendment, the other Loan Documents, and the transactions contemplated hereby, in each case evidencing any necessary company action, (ii) the name and true signature of an agent or agents of such Loan Party authorized to sign each Loan Document to which such Loan Party is a party and the other documents to be delivered hereunder, and (iii) attached true and correct copies of the Bylaws and Articles of Incorporation (or corresponding organizational documents) of such Loan Party;

(g)a certificate of the chief executive officer or the chief financial officer of the Parent certifying that (i) insurance complying with Section 5.01(d) of the Credit Agreement is in full force and effect, (ii) no Material Adverse Change has occurred since December 31, 2011, (iii) no Default or Event of Default exists, (iv) all representations and warranties made by the Loan Parties in Section 4.01 (as amended by this First Amendment) are correct in all material respects on and as of the date of the Closing Date (other than those representations and warranties that expressly relate solely to a specific earlier date, which shall be correct in all material respects as of such earlier date), and (v) the annual audited financials for the fiscal year ended December 31, 2011 delivered to the Administrative Agent prior to the Closing Date, are true and correct copies of such financials, fairly present the financial condition of the Parent as of such dates, and were, to the best of such officer's knowledge, prepared in conformity with GAAP;

(h)(i) certificates of existence, good standing and qualification from appropriate state officials with respect to EII, EUI, Pride  and ENSCO Investments, (ii) such corresponding certificates or other documents from Cayman Islands officials or agencies as the Administrative Agent reasonably requests with respect to EOIC, ENSCO Overseas and Global, (iii) such corresponding certificates or other documents from British Virgin Islands officials or agencies as the Administrative Agent reasonably requests with respect to Pride International and Global IV and (iv) such corresponding certificates or other documents from English officials or agencies as the Administrative Agent reasonably requests with respect to the Parent and EUL; 

(i)evidence of appointment by each of the Parent, EUL, EOIC, Pride International, Global IV, ENSCO Overseas and Global Limited of the Process Agent as its domestic process agent in accordance with Section 8.14 of the Credit Agreement;

(j)evidence of payment by the Loan Parties of (i) an upfront fee to the Administrative Agent for the account of each Bank in an amount equal to 0.03% of such Bank's Commitment, (ii) each other fee that any Loan Party has agreed in writing to pay in connection with this First Amendment or the Credit Agreement, and (iii) all other fees, costs and expenses payable by the Loan Parties on the date hereof pursuant to the Credit Agreement, including the fees and expenses of counsel to the Administrative Agent pursuant to invoices presented for payment on or prior to the Closing Date; and
(k)such other documents, governmental certificates, conditions, agreements and lien searches as the Administrative Agent may reasonably request.

Section 6.Miscellaneous Provisions.

(a)From and after the execution and delivery of this First Amendment, the Credit Agreement and the Guaranty Agreement shall be deemed to be amended and modified as herein provided, and except as so amended and modified the Credit Agreement and the Guaranty Agreement shall continue in full force and effect.

(b)The Credit Agreement and this First Amendment shall be read and construed as one and the same instrument, and the Guaranty and this First Amendment shall be read and construed as one and the same instrument.

(c)Any reference in any of the Loan Documents to the Credit Agreement or the Guaranty Agreement shall be a reference to the Credit Agreement as amended by this First Amendment or the Guaranty Agreement as amended by this First Amendment, as applicable.

(d)This First Amendment is a Loan Document for purposes of the provisions of the other Loan Documents.  Without limiting the foregoing, any breach of the representations, warranties, and covenants under this First Amendment may be a Default or an Event of Default under the Loan Documents.

(e)This First Amendment shall be construed in accordance with and governed by the laws of the State of New York.

(f)This First Amendment may be signed in any number of counterparts and by different parties in separate counterparts and may be in original or facsimile form, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

(g)The headings herein shall be accorded no significance in interpreting this First Amendment.

Section 7.Binding Effect.  This First Amendment shall be binding upon and inure to the benefit of the Loan Parties, the Banks and the Administrative Agent and their respective successors and assigns, except that the Loan Parties shall not have the right to assign their rights hereunder or any interest herein.

[Signature Pages Follow.]

IN WITNESS WHEREOF, the parties have caused this First Amendment to be executed by their respective duly authorized officers as of the date first set forth above, to be effective as of the First Amendment Effective Date.
LOAN PARTIES:

ENSCO PLC, as a Borrower and a Guarantor

By:  /s/ James W. Swent, III
Name:  James W. Swent, III
Title:  Senior Vice President - Chief Financial Officer

ENSCO INTERNATIONAL INCORPORATED, 
as a Borrower and a Guarantor

By:  /s/ Douglas E. Hancock
Name:  Douglas E. Hancock
Title:  Vice President and Treasurer

ENSCO UNIVERSAL LIMITED, as a Borrower 

By:  /s/ Herman Malone, Jr.
Name:  Herman Malone, Jr.
Title:  Secretary

ENSCO OFFSHORE INTERNATIONAL COMPANY, as a Borrower

By:  /s/ Zarksis D. Italia
Name:  Zarksis D. Italia
Title:  Vice President, Secretary and Treasurer

PRIDE INTERNATIONAL, INC., as a Borrower and a Guarantor

By:  /s/ David A. Armour
Name:  David A. Armour
Title:  President

PRIDE INTERNATIONAL, LTD., as a Borrower 

By:  /s/ Zarksis D. Italia
Name:  Zarksis D. Italia
Title:  President

ENSCO GLOBAL IV LTD., as a Borrower

By:  /s/ Zarksis D. Italia
Name:  Zarksis D. Italia
Title:  Vice President

ENSCO OVERSEAS LIMITED, as a Borrower

By:  /s/ Zarksis D. Italia
Name:  Zarksis D. Italia
Title:  Vice President, Secretary and Treasurer

ENSCO GLOBAL LIMITED, as a Guarantor

By:  /s/ Herman E. Malone, Jr.
Name:  Herman E. Malone, Jr.
Title:  Vice President, Secretary and Treasurer

ENSCO UNITED INCORPORATED, as a Guarantor 

By:  /s/ David A. Armour
Name:  David A. Armour
Title:  President

ENSCO INVESTMENTS LLC, as a Guarantor

By: /s/ Herman E. Malone, Jr.
Name:  Herman E. Malone, Jr.
Title:  Vice President

ADMINISTRATIVE AGENT:

CITIBANK, N.A., as Administrative Agent

By:/s/ Lisa Huang
Name:  Lisa Huang
Title:  Vice President 

BANKS:

CITIBANK, N.A.

By:/s/ Lisa Huang
Name:  Lisa Huang
Title:  Vice President 

    

DEUTSCHE BANK AG NEW YORK BRANCH
By: /s/ John S. McGill
Name:  John S. McGill
Title:  Director

By: /s/ Virginia Cosenza
Name:  Virginia Cosenza
Title:  Vice President

WELLS FARGO BANK, NATIONAL ASSOCIATION
By: /s/ T. Alan Smith
Name:  T. Alan Smith
Title:  Managing Director

DNB BANK ASA
By: /s/ Andrea Ozbolt
Name:  Andrea Ozbolt
Title:  Vice President
By: /s/ Kai M. Blache
Name:  Kai M. Blache
Title:  Vice President

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
By: /s/ Andrew Oram
Name:  Andrew Oram
Title:  Managing Director

HSBC BANK USA, NATIONAL ASSOCIATION
By: /s/ Mercedes Ahumada
Name:  Mercedes Ahumada
Title:  Vice President

COMPASS BANK
By: /s/ Alex Mayral
Name:  Alex Mayral
Title:  Senior Vice President

BANK OF AMERICA, N.A.
By: /s/ Joseph Scott
Name:  Joseph Scott
Title:  Director

LLOYDS TSB BANK PLC
By: /s/ Julia R. Franklin
Name:  Julia R. Franklin
Title:  Vice President
By:  /s/ Dennis McClellan
Name:   Dennis McClellan
Title:  Assistant Vice President

THE BANK OF NOVA SCOTIA
By: /s/ John Frazell
Name:  John Frazell
Title:  Director

BNP PARIBAS
By: /s/ Guillaume Deve
Name:   Guillaume Deve
Title:  Managing Director
By: /s/ Sriram Chandrasekaran
Name:  Sriram Chandrasekaran
Title:  Vice President

SCHEDULE I

PRICING GRID

	
						
	Rating Category:
	Level I
	Level II
	Level III
	Level IV
	Level V

	 
	A/A2 or Better
	A-/A3
	BBB+/
Baa1
	BBB/
Baa2
	BBB-/
Baa3 or lower

	Applicable Margin for Base Rate Advances:
	0.00%
	0.00%
	0.125%
	0.375%
	0.625%

	Applicable Margin for LIBOR Advances:
	0.875%
	1.00%
	1.125%
	1.375%
	1.625%

	Commitment Fee:
	0.09%
	0.09%
	0.09%
	0.09%
	0.09%

SCHEDULE VI

Commitments

	
				
	Bank
	Commitment
	

	Citibank, N.A.
	$
	49,500,000.00
	

	Deutsche Bank AG New York Branch
	$
	49,500,000.00
	

	Wells Fargo Bank, National Association
	$
	48,500,000.00
	

	DnB Bank ASA
	$
	48,500,000.00
	

	The Bank of Toyko-Mitsubishi UFJ, Ltd.
	$
	48,500,000.00
	

	HSBC Bank USA, National Association
	$
	48,500,000.00
	

	Compass Bank
	$
	47,000,000.00
	

	Bank of America, N.A.
	$
	30,000,000.00
	

	Lloyds TSB Bank plc
	$
	30,000,000.00
	

	BNP Paribas
	$
	30,000,000.00
	

	The Bank of Nova Scotia
	$
	20,000,000.00
	

	Total:
	$
	450,000,000UNH EX 10.1 3.31.2012 10Q

Exhibit 10.1
AMENDMENT AND RESTATED 
EMPLOYMENT AGREEMENT

This Agreement is between Larry Renfro (“Executive”) and United HealthCare Services, Inc. (“UnitedHealth Group”), and is effective as of Executive's first day of employment with UnitedHealth Group (the “Effective Date”).  This Agreement's purposes are to set forth certain terms of Executive's employment by UnitedHealth Group or one of its affiliates and to protect UnitedHealth Group's knowledge, expertise, customer relationships, and confidential information.  Unless the context otherwise requires, “UnitedHealth Group” includes all its affiliated entities. This Agreement amends and restates the Employment Agreement and the Amended and Restated Employment Agreement between Executive and UnitedHealth Group previously executed by the parties on January 20, 2009, and October 25, 2011, respectively, and is effective as of the Effective Date.    
1.    Employment and Duties.
		
	A.
	Employment.    UnitedHealth Group hereby employs Executive, and Executive accepts employment, under this Agreement's terms.  

		
	B.
	Title and Duties.  Executive will be employed as the Executive Vice President for UnitedHealth Group and CEO of Ovations and will report to the President and Chief Executive Officer of UnitedHealth Group Incorporated.  Executive will perform such duties, and exercise such supervision and control as are commonly associated with Executive's position, as well as perform such other duties as are reasonably assigned to Executive.  Executive will devote substantially all of Executive's business time and energy to Executive's duties.  Executive will maintain operations in Executive's area of responsibility, and make every reasonable effort to ensure that the employees within that area of responsibility act, in compliance with applicable law and UnitedHealth Group's Principles of Integrity and Compliance.  Executive is subject to all of UnitedHealth Group's employment policies and procedures (except as specifically superseded by this Agreement).

2.     Compensation and Benefits.
		
	A. 
	Base Salary.  Executive's initial annual base salary will be $600,000, payable according to UnitedHealth Group's regular payroll schedule.  Periodic adjustments to Executive's base salary may be made in UnitedHealth Group's sole discretion.

		
	B.
	Incentive Compensation.  Executive will be eligible to participate in UnitedHealth Group's incentive compensation plans in UnitedHealth Group's discretion and in accordance with the plans' terms and conditions.  Executive's initial target bonus potential under UnitedHealth Group's Executive Incentive Plan for the annual cash incentive will be 100% of annual base salary and for the long-term cash incentive will be 50% of annual base salary, subject to periodic adjustments in UnitedHealth Group's discretion.

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	C.
	Equity Awards.  Executive will be eligible for stock-based awards in UnitedHealth Group's discretion.  In accordance with guideline amounts authorized by UnitedHealth Group's Compensation and Human Resources Committee, management will recommend that, in connection with the commencement of employment, Executive be awarded equity compensation in the form of (i) restricted stock units with a value of $3,000,000 and (ii) Stock-Settled Appreciation Rights (SARs) with a Black-Scholes value of $1,500,000.  Subject to the terms of the applicable equity award certificate and the Company's Stock Incentive Plan, as amended, the Restricted Stock Units and SARs shall vest 25% on each of the first through fourth anniversaries of the grant date.

UnitedHealth Group's governance policy stipulates that its Compensation and Human Resources Committee can only grant equity awards at regularly scheduled quarterly committee meetings.  Accordingly, Executive's recommended grant will be reviewed by the Committee at its next regularly scheduled quarterly meeting following the Effective Date.   The Black-Scholes value of SAR awards will be calculated within a period of approximately ten days prior to day of the Committee meeting using the closing price of UnitedHealth Group stock on that day that the calculation is made and an assumed life of 10 years, consistent with the term of the SAR award agreement.  The actual grant price of SAR awards will be the closing price of UnitedHealth Group stock on the day of the Committee meeting.  The number of shares comprising the recommended restricted stock grant will be calculated within a period of approximately ten days prior to the day of the Committee meeting using the closing price of UnitedHealth Group stock on the day that the calculation is made, and will be calculated by dividing $3,000,000 by that closing price.
		
	D.
	Employee Benefits.  Executive will be eligible to participate in UnitedHealth Group's employee welfare, retirement, and other benefit plans on the same basis as other similarly situated executives, in accordance with the terms of the plans.  Executive will be eligible for Paid Time Off in accordance with UnitedHealth Group's policies.  UnitedHealth Group reserves the right to amend or discontinue any plan or policy at any time in its sole discretion. To supplement standard UnitedHealth Group-paid life and disability coverages, UnitedHealth Group also will provide Executive with additional group term life insurance coverage of $2 million, as well as additional long-term disability coverage to the extent that Executive's annual base earnings exceed $700,000.  UnitedHealth Group shall bear the expense of the supplemental life and disability coverage and shall annually report the imputed income associated with the coverages on Executive's Form W-2, with no gross-up for taxes.  

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	E.
	Sign-On Bonus.  UnitedHealth Group agrees to pay Executive a sign-on bonus of $600,000, less withholdings and deductions.  This sign-on bonus will be paid to Executive on the first pay date following the one month anniversary of the Effective Date.

3.     Term and Termination.
		
	A.
	Term.  This Agreement's term is from the Effective Date until this Agreement is terminated under Section 3.B.

		
	B.
	Termination.

		
	i.
	By Mutual Agreement.  The parties may terminate Executive's employment and this Agreement at any time by mutual agreement. 

		
	ii.
	By UnitedHealth Group without Cause.  UnitedHealth Group may terminate this Agreement and Executive's employment without Cause upon 90 days' prior written notice.

		
	iii.
	By UnitedHealth Group with Cause.  UnitedHealth Group may terminate this Agreement and Executive's employment at any time for Cause.  “Cause” means Executive's (a) material failure to follow UnitedHealth Group's reasonable direction or to perform any duties reasonably required on material matters, (b) material violation of, or failure to act upon or report known or suspected violations of, UnitedHealth Group's Principles of Integrity and Compliance, (c) conviction of any felony, (d) commission of any criminal, fraudulent, or dishonest act in connection with Executive's employment, (e) material breach of this Agreement, or (f) conduct that is materially detrimental to UnitedHealth Group's interests.   UnitedHealth Group will, within 120 days of discovery of the conduct, give Executive written notice specifying the conduct constituting Cause in reasonable detail and Executive will have 60 days to remedy such conduct, if such conduct is reasonably capable of being remedied.  In any instance where the Company may have grounds for Cause, failure by the Company to provide written notice of the grounds for Cause within 120 days of discovery shall be a waiver of its right to assert the subject conduct as a basis for termination for Cause. 

		
	iv.
	By Executive without Good Reason.  Executive may terminate this Agreement and Executive's employment at any time for any reason, including due to Executive's retirement.  Termination without Good Reason will not be a basis for Severance Benefits.

		
	v.
	By Executive for Good Reason.  Executive may terminate this Agreement and Executive's employment for Good Reason, as defined below.  

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Executive must give UnitedHealth Group written notice specifying in reasonable detail the circumstances constituting Good Reason, within 120 days of becoming aware of such circumstances, or such circumstances will not constitute Good Reason.  If the circumstances constituting Good Reason are reasonably capable of being remedied, UnitedHealth Group will have 60 days to remedy such circumstances.   “Good Reason” will exist if, without Executive's consent, UnitedHealth Group:  (a) reduces Executive's base salary or target bonus percentage other than in connection with a general reduction affecting a group of employees; (b) moves Executive's primary work location more than 50 miles from Boston, Massachusetts or another location agreed upon by Executive and UnitedHealth Group, which is a substantative location of operations for Optum; (c) makes changes so that Executive no longer holds the position of Chief Executive Officer of Optum or another position with equivalent or greater responsibilities, duties and standing; or (d) changes to Executive's reporting relationship that results in Executive reporting to a level lower than the President and Chief Executive Officer of UnitedHealth Group.    
		
	vi.
	Due to Executive's Death or Disability.  This Agreement and Executive's employment will terminate automatically if Executive dies.  The termination date will be the date of Executive's death.  UnitedHealth Group may terminate this Agreement and Executive's employment due to Executive's disability that renders Executive incapable of performing the essential functions of Executive's job, with or without reasonable accommodation.  Executive will not be entitled to Severance Benefits under Section 4 in the event of termination due to Executive's death or disability.

		
	4.
	Severance Benefits.  

		
	A.
	Circumstances under Which Severance Benefits Payable.  Executive will be entitled to Severance Benefits only if Executive's employment is terminated by UnitedHealth Group without Cause or if Executive terminates employment for Good Reason.  Executive will be considered to have experienced a termination of employment as of the date that the facts and circumstances indicate that it is reasonably anticipated that Executive will provide no further services after such date or that the level of bona fide services that Executive is expected to perform permanently decreases to no more than 20% of the average level of bona fide services that Executive performed over the immediately preceding 36-month period.  Whether Executive has had a termination of employment will be determined in a manner consistent with the definition of “separation from service” under Section 409A of the Internal Revenue Code of 1986 and its accompanying regulations (“Section 409A). A termination of employment will mean a “separation 

4

from service” and will be referred to herein as a “Termination”. The Severance Benefits in this Agreement are in lieu of any payments or benefits to which Executive otherwise might be entitled under any UnitedHealth Group severance plan or program. 
		
	B.
	Severance Benefits.  Subject to Section 4.D, Executive shall be entitled to the following Severance Benefits if Executive's employment terminates under the circumstances described in Section 4.A above:

(1) Two times Executive's annualized base salary as of Executive's termination date.
(2) Two times the average of the total of any bonus or incentive compensation paid or payable to Executive for the two most recent calendar years (excluding equity-related awards, payments under any long-term or similar benefit plan, or any other special or one-time bonus or incentive compensation payments); provided, however, that if termination occurs within two years following the Effective Date, the amount payable under this paragraph will be two times Executive's target incentive.  
(3) $12,000 lump sum payment to offset costs of COBRA which amount will be paid within 60 days following Termination.
(4) Outplacement services consistent with those provided to similarly situated executives provided by an outplacement firm selected by UnitedHealth Group. 
		
	C.
	Timing of Payments. The Severance Benefits in Sections 4.B.(1)-(2) will be paid out, minus applicable deductions, including deductions for tax withholding, in equal bi-weekly payments on the regular payroll cycle over the 12-month period following Executive's Termination.  Commencement of payments shall begin on the first payroll date that occurs in the month that begins 60 days after the date of Executive's Termination (the “Starting Date”), provided that Executive has satisfied the requirement in Section 4.D.  The first payment on the Starting Date shall include those payments that would have been previously paid if the payments of the severance compensation had begun on the first payroll date following the date of Executive's Termination. Executive's entitlement to the payments of the severance compensation described in Section 4.B shall be treated as the entitlement to a series of separate payments for purposes of Section 409A.  If Executive is a “specified employee” (within the meaning of Section 409A and determined pursuant to procedures adopted by UnitedHealth Group) at the time of Executive's Termination and any amount that would be paid to Executive during the six-month period following Termination constitutes deferred compensation (within the meaning of Section 409A), such amount shall not be paid to Executive until the later of (i) six months after the date of Executive's Separation from 

5

Service, and (ii) the payment date or commencement date specified in this Agreement for such payment(s).  On the first regular payroll date following the expiration of such six-month period (or if Executive dies during the 6-month period, the first payroll date following the death), all payments that were delayed pursuant to the preceding sentence shall be paid to Executive in a single lump sum and thereafter all payments shall be made as if there had been no such delay. All Severance Benefits described in Section 4.B shall be paid by, and no further severance compensation shall be paid or payable after December 31 of the second calendar year in which Executive's Termination occurs.  
		
	D.
	Separation Agreement and Release Required.  In order to receive any Severance Benefits under this Agreement, Executive must timely sign a separation agreement and release of claims in a form determined by UnitedHealth Group in its discretion.  UnitedHealth Group shall provide to Executive a form of separation agreement and release of claims no later than three (3) days following Executive's date of Termination.  Executive must execute and deliver the separation agreement and release of claims within fifty (50) days after Executive's date of Termination.  If Executive does not timely execute and deliver to UnitedHealth Group such severance agreement and release, or if Executive does so, but then revokes it if permitted by and within the time required by applicable law, UnitedHealth Group will have no obligation to pay severance compensation to Executive.

5.    Property Rights, Confidentiality, Non-Disparagement, and Restrictive Covenants.
		
	A.
	UnitedHealth Group's Property.

		
	i.
	Assignment of Property Rights.  Executive must promptly disclose in writing to UnitedHealth Group all inventions, discoveries, processes, procedures, methods and works of authorship, whether or not patentable or copyrightable, that Executive alone or jointly conceives, makes, discovers, writes or creates, during working hours or on Executive's own time, during this Agreement's term (the “Works”).  Executive hereby assigns to UnitedHealth Group all Executive's rights, including copyrights and patent rights, to all Works.  Executive must assist UnitedHealth Group as it reasonably requires to perfect, protect, and use its rights to the Works.  This provision does not apply to any Work for which no UnitedHealth Group equipment, supplies, facility or trade secret information was used and: (1) which does not relate directly to UnitedHealth Group's business or actual or demonstrably anticipated research or development, or (2) which does not result from any work performed for UnitedHealth Group.

		
	ii.
	No Removal of Property. Executive may not remove from UnitedHealth Group's premises any UnitedHealth Group records, documents, data or other property, in either original or duplicate form, except as necessary in the ordinary course of UnitedHealth Group's business.

		
	iii.
	Return of Property.  Executive must immediately deliver to UnitedHealth Group, upon termination of employment, or at any other time at UnitedHealth Group's request, all UnitedHealth Group property, including records, documents, data, and equipment, and all copies of any such property, including any records or data Executive prepared during employment.

6

		
	B.
	Confidential Information.  Executive will be given access to and provided with sensitive, confidential, proprietary and trade secret information (“Confidential Information”) in the course of Executive's employment.  Examples of Confidential Information include:  inventions; new product or marketing plans; business strategies and plans; merger and acquisition targets; financial and pricing information; computer programs, source codes, models and databases; analytical models; customer lists and information; and supplier and vendor lists and information.  Executive agrees not to disclose or use Confidential Information, either during or after Executive's employment with UnitedHealth Group, except as necessary to perform Executive's UnitedHealth Group duties or as UnitedHealth Group may consent in writing.  This Agreement does not restrict use or disclosure of publicly available information or information: (i) that Executive obtained from a source other than UnitedHealth Group before becoming employed by UnitedHealth Group; or (ii) that Executive received from a source outside UnitedHealth Group without an obligation of confidentiality. 

		
	C.
	Non-Disparagement.  Executive agrees not to criticize, make any negative comments or otherwise disparage UnitedHealth Group or those associated with it, whether orally, in writing or otherwise, directly or by implication, to any person or entity, including UnitedHealth Group customers and agents.  

		
	D.
	Restrictive Covenants.  Executive agrees to the restrictive covenants in this Section in consideration of Executive's employment and UnitedHealth Group's promises in this Agreement, including providing Executive access to Confidential Information.  The restrictive covenants in this Section apply during Executive's employment and for 24 months following termination of employment for any reason.  Executive agrees that he will not, without UnitedHealth Group's prior written consent, directly or indirectly, for Executive or for any other person or entity, as agent, employee, officer, director, consultant, owner, principal, partner or shareholder, or in any other individual or representative capacity:    

		
	i.
	Customer Solicitation:  Executive will not solicit any business competitive with UnitedHealth Group from any person or entity who (a) was a UnitedHealth Group provider or customer within the 12 months before Executive's employment termination and with whom Executive had contact to further UnitedHealth Group's business, or for whom Executive provided services or supervised employees who provided those services, or (b) was a prospective provider or customer UnitedHealth Group solicited within the 12 months before Executive's employment termination and with whom UnitedHealth Group 

7

had contact for the purposes of soliciting the person or entity to become a provider or customer of UnitedHealth Group, or supervised employees who had those contacts.
		
	ii.
	Employee Solicitation:  Executive will not hire, employ, recruit or solicit any UnitedHealth Group employee or consultant. 

		
	iii.
	Interference:  Executive will not induce or influence any UnitedHealth Group employee, consultant, or provider to terminate his, her or its employment or other relationship with UnitedHealth Group.

		
	iv.
	Competitive Activities:  Executive will not engage in or participate in any activity that competes, directly or indirectly, with any UnitedHealth Group product or service that Executive engaged in, participated in, or had Confidential Information about during Executive's employment; provided, however, that this Section 5.D.iv. will not prevent Executive from being employed by, or working as a consultant to, or serving on the board of, or being an owner or an investor in, a private equity firm.   

		
	v.
	Assisting Others.  Executive will not assist anyone in any of the activities listed above.

Because UnitedHealth Group's business competes on a nationwide basis, Executive's obligations under this Section 5.D shall apply on a nationwide basis anywhere in the United States.  To the extent Executive and UnitedHealth Group agree at any time to enter into separate agreements containing restrictive covenants with different or inconsistent terms than those contained herein, Executive and UnitedHealth Group acknowledge and agree that such different or inconsistent terms shall not in any way affect or have relevance to the Restrictive Covenants contained in this Section 5.D. Executive agrees that the Restrictive Covenants in this Section 5.D are reasonable and necessary to protect the legitimate interests of the Company.
		
	E.
	Cooperation and Indemnification.  Executive agrees that Executive will cooperate (i) with UnitedHealth Group in the defense of any legal claim involving any matter that arose during Executive's employment with UnitedHealth Group, and (ii) with all government authorities on matters pertaining to any investigation, litigation or administrative proceeding concerning UnitedHealth Group.  UnitedHealth Group will reimburse Executive for any reasonable travel and out-of-pocket expenses incurred by Executive in providing such cooperation.  UnitedHealth Group will indemnify Executive, in accordance with the Minnesota Business Corporation Act,

8

for all claims and other covered matters arising in connection with Executive's employment. 
		
	F.
	Injunctive Relief.  Executive agrees that (a) legal remedies (money damages) for any breach of Section 5 will be inadequate, (b) UnitedHealth Group will suffer immediate and irreparable harm from any such breach, and (c) UnitedHealth Group will be entitled to injunctive relief from a court in addition to any legal remedies UnitedHealth Group may seek in arbitration.  If an arbitrator or court determines that Executive has breached any provision of Section 5, Executive agrees to pay to UnitedHealth Group its reasonable costs and attorney's fees incurred in enforcing that provision.

		
	G.
	Survival.  This Section 5 will survive this Agreement's termination. 

		
	6.
	Miscellaneous.

		
	A.
	Tax Withholding.  All compensation payable under this Agreement will be subject to applicable tax withholding and other required or authorized deductions.

		
	B.
	Assignment.  Executive may not assign this Agreement.  UnitedHealth Group may assign this Agreement.  Any successor to UnitedHealth Group will be deemed to be UnitedHealth Group under this Agreement.

		
	C.
	Entire Agreement, Amendment.  This Agreement contains the parties' entire agreement regarding its subject matter and may only be amended in a writing signed by the parties.  This Agreement supersedes any and all prior oral or written employment agreements (including letters and memoranda) between Executive and UnitedHealth Group or its predecessors.  Except as provided in the following paragraph, this Agreement does not supersede any equity award plan or certificate.

Notwithstanding the terms of any other agreement heretofore or hereafter entered into between the parties that reference retirement, Executive and UnitedHealth Group acknowledge and agree that for purposes of calculating years of service for retirement eligibility, Executive will receive two years of service credit for each year he remains employed with UnitedHealth Group after attainment of age 59.  In addition, prior to the date upon which Executive becomes eligible for retirement, if Executive's employment is terminated by the Company without Cause or if Executive terminates employment for Good Reason, Executive will be deemed to have met the applicable age and service requirements and will be retirement eligible.  The Company agrees that this revised retirement definition will be reflected in and become part of Executive's outstanding and future issued equity award certificates.
		
	D.
	Choice of Law.   Minnesota law governs this Agreement.

9

		
	E.
	Waivers.  No party's failure to exercise, or delay in exercising, any right or remedy under this Agreement will be a waiver of such right or remedy, nor will any single or partial exercise of any right or remedy preclude any other or further exercise of such right or remedy.

		
	F.
	Narrowed Enforcement and Severability.  If a court or arbitrator decides that any provision of this Agreement is invalid or overbroad, the parties agree that the court or arbitrator should narrow such provision so that it is enforceable or, if narrowing is not possible or permissible, such provision should be considered severed and the other provisions of this Agreement should be unaffected.

		
	G.
	Dispute Resolution and Remedies.  Except for injunctive relief under Section 5.F, any dispute between the parties relating to this Agreement or to Executive's employment will be resolved by binding arbitration under UnitedHealth Group's Employment Arbitration Policy, as it may be amended from time to time.  The arbitrator(s) may not vary this Agreement's terms and must apply applicable law. 

		
	H. 
	Section 409A.  To the extent applicable, it is intended that the compensation arrangements under this Agreement be in full compliance with Section 409A.  This Agreement shall be construed in a manner to give effect to such intention.  In no event whatsoever shall UnitedHealth Group or any of its affiliates be liable for any tax, interest or penalties that may be imposed on Executive under Section 409A.  Neither UnitedHealth Group nor any of its affiliates have any obligation to indemnify or otherwise hold Executive harmless from any or all such taxes, interest or penalties, or liability for any damages related thereto. 

	
			
	United HealthCare Services, Inc.
	 
	Executive

	 
	 
	 

	By /s/ Lori Sweere
	 
	/s/ Larry C. Renfro
    

	 
	 
	 

	Its Executive Vice President Human Capital
	 
	 

	 
	 
	 

	Date: March 26, 2012
	 
	Date: March 23, 2012

	 
	 
	 

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