Document:

First Amendment to Supplemental Executive Retirement Plan

 Exhibit 10.3(b) 
 AMENDMENT TO 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
 This Amendment (the “Amendment”) is entered into on October 17, 2006, by and between PLACER SIERRA BANCSHARES (“Bancshares”),
and RONALD W. BACHLI (the “Participant”), and amends, effective January 1, 2006 (except as otherwise noted), the Supplemental Executive Retirement Plan (the “Plan”) adopted by Bancshares’ predecessor First California
Bancshares by instrument dated May 14, 2003, and accepted by the Participant on May 20, 2003. 
 The Plan is hereby amended in the
following respects only: 
 1. Section 3.01 of the Plan is amended in its entirety to read as follows: 
 3.01 Benefits. This Plan incorporates and provides the “retirement benefits” specified in the Employment Agreement between the
Participant and Bancshares made and entered into as of January 1, 2006, as amended August 14, 2006 and October 17, 2006 (the “Employment Agreement”). The pertinent provisions of the Employment Agreement are set forth in
Appendix A hereto and are incorporated herein by reference. The Participant shall not be entitled to duplicative retirement benefits under the Employment Agreement and this Plan. 
 2. Appendix A to the Plan is replaced in its entirety by Appendix A attached hereto. 
 3. The Plan shall not otherwise be affected by this Amendment. 
 4. This Amendment may be executed in several counterparts, each of which shall be deemed to an original but all of which together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, Bancshares and the Executive have executed this Amendment on October 17, 2006, and effective as of January 1, 2006. 
  

			
	 PLACER SIERRA BANCSHARES
 f/k/a
FIRST CALIFORNIA BANCSHARES

		
	 By:
	 	 /s/ Robert J. Kushner

		 	Robert J. Kushner
		 	Chairman of the Compensation Committee of the Board of Directors

  

	
	 /s/ Ronald W. Bachli

	 RONALD W. BACHLI

 Appendix A 
 Provisions of Employment Agreement dated as of January 1, 2006, by and between Placer Sierra Bancshares and Ronald W. Bachli relating to retirement benefits 
 THIS AMENDED AND RESTATED AGREEMENT (the “Agreement”) is made and entered into as of January 1, 2006 (the “Effective
Date”) by and between PLACER SIERRA BANCSHARES, a California corporation (the “Company”) and RONALD W. BACHLI (the “Executive”) (collectively sometimes referred to as the “Parties”). 
 1. Employment Period. The Company hereby agrees to employ the Executive, and the Executive hereby agrees to enter into the employ of the Company,
subject to the terms and conditions of this Agreement for a term of three (3) years commencing January 1, 2006, continuing until December 31, 2008, unless earlier terminated as provided in Section 3. The period of the
Executive’s employment hereunder is herein referred to in this Agreement as the “Employment Period.” 
 2. Terms of
Employment.  
 (a) Position and Duties.  
 *        *        * 
 (b)
Compensation.  
 *        *        * 
 (vii) Retirement. The Company shall pay to the Executive a retirement benefit of $200,000 per year for a period of ten years,
commencing as of the later of: (1) the first day of the month following the Executive’s retirement from the Company, provided, however, that payments that otherwise would be made within the first 6 months following termination shall be
made the first day of the seventh month following termination, or (2) January 1 following the Executive’s 67th birthday provided that, except as expressly provided in section 4 herein below, such retirement benefits shall be deemed to be 80% vested as of the date of this Agreement and shall continue to vest at the rate of twenty percent
(20%) per year commencing as of the effective date of this Agreement. The retirement benefits shall be payable in semi-monthly installments (calculated by multiplying the Executive’s vested percentage by $200,000) in accordance with the
Company’s normal payroll procedures, less payroll taxes and withholding required by federal, state or local law and any additional withholding to which the Executive agrees in writing. The receipt of any benefit under this economic equivalent
alternative will occur no earlier than would the first payment under the semi-monthly installment alternative. Notwithstanding the foregoing, upon the death or disability of the Executive during the Employment Period, the Executive’s retirement
benefits shall begin on the first day of the month following such death or 

 
disability, provided, however, that payments that otherwise would be made within the first 6 months following such death or disability shall by made the
first day of the seventh month following such death or disability. Payment of such retirement benefits in the event of the Executive’s death shall be made to Executive’s estate or beneficiary as provided in Section 4(c) hereof. The
Company has designated specific corporate assets as the source from which payments under this Section 2(b)(vii) will be paid and such assets will remain under the Company’s dominion and control, and will be subject to the claims of its
general creditors. The Company acknowledges that it has transferred such assets to a “rabbi trust” dated May 14, 2003 that satisfies the guidelines of Revenue Procedure 92-64, 1992-2 CB 422. If and to the extent the Company transfers
such assets to a rabbi trust, it is the intention of the parties that such trust be treated as a “grantor” trust for federal income tax purposes, and that the income of the trust be treated as the Company’s income, pursuant to
Subtitle A, Chapter 1, Subchapter J, Subpart E, of the Internal Revenue Code of 1986, as amended (the “Code”). 
 3. Termination
of Employment.  
 (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Company determines in good faith that the Disability of the Executive has occurred during the Employment Period (pursuant to the definition of Disability set forth below), it may give the
Executive written notice in accordance with Section 17(e) of this Agreement of its intention to terminate the Executive’s employment. In such event, the Executive’s employment with the Company shall terminate effective on the
30th day after receipt of such notice by the Executive (the “Disability Effective Date”), provided that,
within the 30 days after such receipt, the Executive shall not have returned to full-time performance of the Executive’s duties. For purposes of this Agreement, the “Disability” of the Executive has occurred if the Executive is not
able, as a result of an illness or other physical or mental disability, to perform the essential functions of his position as required by this Agreement for a period of ninety (90) consecutive days or in excess of one hundred eighty
(180) days in any one (1) year period, notwithstanding reasonable accommodation by the Company to the Executive’s known physical or mental disability, solely in accordance with, and to the extent required by, the Americans with
Disabilities Act, 29 U.S.C. sections 12101-213 or any other state or local law governing the employment of disabled persons (the “ADA”) provided such accommodation would not impose an undue hardship on the operation of the Company’s
business or a direct threat to the Executive or others pursuant to the ADA. 
 (b) Cause. The Company may terminate the
Executive’s employment for Cause or without Cause. For purposes of this Agreement, “Cause” shall mean: 
 (i)
Any act of material dishonesty; 
 (ii) Any material breach of this Agreement; 
 (iii) Any breach of a fiduciary duty (involving personal profit); 

 (iv) Any habitual neglect of, or habitual negligence in carrying out, those duties
contemplated under Sections 1 and 2 of this Agreement; 
 (v) Any willful violation of any law, rule or regulation, which, by
virtue of bank regulatory restrictions imposed as a result thereof, would have a material adverse effect on the business or financial prospects of the Company; 
 (vi) Any conviction of any felony which may be reasonably interpreted to be harmful to the Company’s reputation; 
 (vii) The requirement to comply with any final cease-and-desist order or written agreement with any applicable state or federal bank
regulatory authority which requests or orders the Executive’s dismissal or limits the Executive’s employment duties; 
 (viii) Any conduct which constitutes unfair competition with the Company or any parent company, shareholder, subsidiary, division or affiliate thereof; 
 (ix) The inducement of any client, customer, agent or employee to break any contract or terminate the agency or employment relationship
with the Company or any parent company, shareholder, subsidiary, division or affiliate thereof; or 
 (x) Any willful engaging
in illegal conduct or gross misconduct, which is materially and demonstrably injurious to the business or reputation of the Company or any of its subsidiaries. For purposes of this subsection (x), in determining whether cause exists, no act or
failure to act on part of Employee shall be considered “willful” unless done, or omitted to be done, by Employee in bad faith and without reasonable belief that the action or omission was in, or not opposed to, the best interest of the
Company or its affiliates. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board is conclusively presumed to be done, or omitted to be done, by Employee in good faith and in the best interest of
the Company. The Company must notify Employee of any event constituting cause within ninety (90) days following the Company’s knowledge of its existence or such event shall not constitute cause for purpose of this subparagraph (x).

 Termination for Cause by the Company shall not constitute a waiver of any remedies that may otherwise be available to the Company under
law, equity, or this Agreement. 
 (c) Good Reason. The Executive’s employment may be terminated by the Executive
for Good Reason. For purposes of this Agreement, “Good Reason” shall mean in the absence of a written consent of the Executive: 
 (i) The assignment to the Executive of duties inconsistent with the Executive’s status as Chairman of the Board and Chief Executive Officer of the Company or a substantial adverse alteration in the nature or
stature of the Executive’s responsibilities 

 
from those described herein, which is not cured by the Company within seven (7) business days after the Executive delivers written notice to the Company
of such assignment or alteration; 
 (ii) A reduction by the Company of the Executive’s then current Base Salary;

 (iii) Any material breach by the Company of any provisions of this Agreement, which breach is not cured by the Company
within seven (7) business days after the Executive delivers written notice of such breach to the Company. 
 (iv) the
Company’s requiring the Executive to be based at any office location outside of Sacramento, California; 
 (v) any
purported termination by the Company of the Executive’s employment otherwise than as expressly permitted by this Agreement; 
 (vi) any failure by the Company to comply with and satisfy Section 14 (c) of this Agreement; and 
 (vii)
[effective August 14, 2006] The Executive’s written notice of retirement and resignation as a director and the Chairman of the Board of Directors and Chief Executive Officer of the Company, and as a trustee, director and officer of
the Company’s affiliates and subsidiaries; provided, however, that, for a period of 180 days following the effective date of such retirement and resignation, and in consideration of the payment by the Company of a consulting fee of
$125,000, payable upon submission of an executed unconditional Release in the form of Exhibit “A” attached hereto, Executive shall make himself available to consult with and advise the Board of Directors solely regarding management
transition matters; provided, further, that the Company shall reimburse the Executive for reasonable attorneys’ fees, up to a maximum of $5,000, incurred in connection with the amendment of the Executive’s SERP. 

(d) Change in Control. The Executive may terminate this Agreement upon a Change in Control of the Company, provided that the
Executive provides Notice of Termination pursuant to Section 3(e) of this Agreement not later than two (2) years after the Change in Control occurs. “Change in Control” shall mean 
 (i) The consummation of a plan of dissolution or liquidation of the Company; 
 (ii) The consummation of a plan of reorganization, merger or consolidation involving the Company, except for a reorganization, merger or
consolidation where (A) the shareholders of the Company immediately prior to such reorganization, merger or consolidation own directly or indirectly more than 50% of the combined voting power of the outstanding voting securities of the
corporation resulting from such reorganization, merger or consolidation (the “Surviving Corporation”) and the individuals who were members of the Board immediately prior to the execution of the 

 
agreement providing for such reorganization, merger or consolidation constitute at least 50% of the members of the board of directors of the Surviving
Corporation, or a corporation beneficially directly or indirectly owning a majority of the voting securities of the Surviving Corporation; or (B) the Company is reorganized, merged or consolidated with a corporation in which any shareholder
owning at least 50% of the combined voting power of the outstanding voting securities of the Company immediately prior to such reorganization, merger or consolidation, owns at least 50% of the combined voting power of the outstanding voting
securities of the corporation resulting from such reorganization, merger or consolidation; 
 (iii) The sale of all or
substantially all of the assets of the Company to another person or entity; 
 (iv) The acquisition of beneficial ownership of
stock representing more than fifty percent (50%) of the voting power of the Company then outstanding by another person or entity. 
 (e) Notice of Termination. Any termination by the Company whether for Cause or otherwise, or by the Executive for Good Reason or otherwise, shall be communicated by Notice of Termination to the other Party
hereto given in accordance with Section 17(e) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied
upon; and (ii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than thirty (30) days after the giving of such notice). The failure
by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder or preclude
the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder. 
 (f) Date of Termination. “Date of Termination” means (i) if the Executive’s employment is terminated by the
Company for any reason other than death or Disability, or by the Executive for Good Reason or incident to a Change in Control, the date of receipt of the Notice of Termination or any later date specified therein within 30 days of such notice, as the
case may be; (ii) if the Executive’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Executive or the Disability Effective Date, as the case may be; and (iii) if the
Executive terminates his employment other than for Good Reason, the Date of Termination shall be 30 days after the date of Notice of Termination, unless the Company, at its option, chooses an earlier date. 
 4. Obligations of the Company upon Termination.  
 (a) Good Reason; Other Than for Cause, Change in Control, Death or Disability. If, during the Employment Period, the Company shall terminate the Executive’s employment 

 
other than for Cause, death or Disability or the Executive shall terminate employment for Good Reason (other than incident to a Change in Control):

 (i) the Company shall pay to the Executive a lump sum payment calculated to consist of an amount one (1) times
Executive’s then current Base Salary, as defined in Section 2(b)(i), (less payroll taxes and withholding required by any federal, state or local law, any additional withholding to which the Executive has agreed, and any outstanding
obligations owed by the Executive to the Company). No portion of such amount shall be payable until eight days after delivery to the Company of a duly executed Release in the form of Exhibit “A” hereto. The Company shall pay such amount on
or before the 15th day following the Company’s receipt of Executive’s duly executed and unrevoked Release; provided, however, that if such payment otherwise would be made within the first six (6) months following termination of
Executive’s employment with the Company, such payment shall instead be made on the first day of the seventh month following such termination. Notwithstanding the foregoing, no such lump sum payment shall be made unless the duly executed and
unrevoked Release is delivered to the Company no later than two (2) months following the end of the calendar year in which Executive’s employment termination occurs. 
 (ii) the Company shall pay to the Executive the retirement benefit provided for pursuant to Section 2(b)(vii) hereof for a period of
ten years commencing as of the first day of the month following the termination of the Executive’s employment pursuant to Section 3(c) hereof. If the retirement benefits are paid under this Section 4(a)(ii), the vesting schedule
provided in Section 2(b)(vii) hereof will be accelerated and the Executive shall become fully vested in such retirement benefits. The retirement benefits shall be payable in semi-monthly installments in accordance with the Company’s normal
payroll procedures, less payroll taxes and withholding required by federal, state or local law and any additional withholding to which the Executive agrees in writing; provided, however, that the payments that otherwise would be made within the
first 6 months following termination of employment shall by made the first day of the seventh month following such termination. No portion of the otherwise non-vested retirement benefit shall be payable until eight days after delivery to the Company
of a duly executed Release in the form of Exhibit “A” hereto. 
 *        *        * 
 The benefits specified in
Sections 4 (a)(i) through 4(a)(iii) above shall constitute liquidated damages in lieu of any and all claims by the Executive against the Company and each of its parent companies, shareholders, subsidiaries, divisions and affiliates, and each of
their respective directors, partners, members, officers, employees and agents, arising out of this Agreement or out of the employment relationship or termination of the employment relationship between the Executive and the Company, and shall be in
full and complete satisfaction of any and all rights which the Executive may enjoy hereunder, and are expressly conditioned upon receipt by the Company of an executed, unconditional Release from the Executive in the form of Exhibit “A”.

 (b) Change in Control. In the event of a Change in Control and, during the two
(2) year period following such Change in Control, the Executive terminates employment with the Company (pursuant to Section 3(d)): 
 (i) the Company shall pay to the Executive a single sum severance payment calculated to consist of an amount equal to two (2) the Executive’s then current Base Salary, as defined in Section 2(b)(i)
(less payroll taxes and withholding required by any federal, state or local law, any additional withholding to which the Executive has agreed, and any outstanding obligations owed by the Executive to the Company) No portion of such severance pay
shall be payable until eight days after delivery to the Company of a duly executed Release in the form of Exhibit “A” hereto. The Company shall pay such amount on or before the 15th day following the Company’s receipt of
Executive’s duly executed and unrevoked Release; provided, however, that if such payment otherwise would be made within the first six (6) months following termination of Executive’s employment with the Company, such payment shall
instead be made on the first day of the seventh month following such termination. Notwithstanding the foregoing, no such lump sum payment shall be made unless the duly executed and unrevoked Release is delivered to the Company no later than two
(2) months following the end of the calendar year in which Executive’s employment termination occurs. 
 (ii) the
Company (or its successor) shall pay to the Executive the retirement benefit provided for pursuant to Section 2(b)(vii) hereof for a period of ten years, commencing as of the first day of the month following the termination of the
Executive’s employment pursuant to Section 3(d). If the retirement benefits are paid under this Section 4(b)(ii), the vesting schedule provided in Section 2(b)(vii) hereof will be accelerated and the Executive shall become fully
vested in such retirement benefits. The retirement benefits shall be payable in semi-monthly installments in accordance with the Company’s (or its successor’s) normal payroll procedures, less payroll taxes and withholding required by
federal, state or local law and any additional withholding to which the Executive agrees in writing; provided, however, that the payments that otherwise would be made within the first 6 months following termination of employment shall by made the
first day of the seventh month following such termination. No portion of the otherwise non-vested retirement benefit shall be payable until eight days after delivery to the Company of a duly executed Release in the form of Exhibit “A”
hereto. 
 *        *        * 
 The payments specified in Sections 4 (b)(i) through 4(b)(iii) above shall constitute liquidated damages in lieu of any and all claims by the Executive
against the Company and each of its parent companies, shareholders, subsidiaries, divisions and affiliates, and each of their respective directors, partners, members, officers, employees and agents, arising out of this Agreement or out of the
employment relationship or termination of the employment relationship between the Executive and the Company, and shall be in full and complete satisfaction of any and all rights which the Executive may enjoy hereunder, and are expressly conditioned
upon 

 
receipt by the Company of an executed, unconditional Release from the Executive in the form of Exhibit “A”. 
 (c) Death. If the Executive’s employment is terminated by reason of the Executive’s death during the Employment Period,
this Agreement shall terminate without further obligations to the Executive’s legal representatives under this Agreement, other than for payment of accrued Base Salary and the retirement benefit provided for pursuant to Section 2(b)(vii)
hereof. * * * The Company shall pay to the Executive’s estate or beneficiary, as applicable, the entire retirement benefit provided for pursuant to Section 2(b)(vii) hereof in a lump sum payment in cash made the first day of the seventh
month following Executive’s death, less payroll taxes and withholding required by federal, state or local law and any additional withholding to which the Executive has agreed in writing. If the retirement benefits are paid under this
Section 4(c), the vesting schedule provided in Section 2(b)(vii) hereof will be accelerated and the Executive shall become fully vested in such retirement benefits. * * * 
 (d) Disability. If the Executive’s employment is terminated by reason of the Executive’s Disability during the Employment
Period, this Agreement shall terminate without further obligations to the Executive, other than for payment of accrued Base Salary and the retirement benefit provided for pursuant to Section 2(b)(vii) hereof. The Company shall pay to the
Executive the retirement benefit provided for pursuant to Section 2(b)(vii) hereof for a period of ten years commencing as of the first day of the month following the termination of the Executive’s employment for disability pursuant to
Section 3(a). If the retirement benefits are paid under this Section 4(d), the vesting schedule provided in Section 2(b)(vii) hereof will be accelerated and the Executive shall become fully vested in such retirement benefits. The
retirement benefits shall be payable in semi-monthly installments in accordance with the Company’s normal payroll procedures, less payroll taxes and withholding required by federal, state or local law and any additional withholding to which the
Executive agrees in writing. Any and all stock options previously granted to the Executive under any stock option plan of the Company and held by the Executive at the Date of Termination shall become fully vested and shall be exercisable for a
period of three (3) years after the Date of Termination. * * * 
 (e) Cause; Other than for Good Reason. If the
Executive’s employment shall be terminated for Cause or if the Executive terminates his employment without Good Reason during the Employment Period, this Agreement shall terminate without further obligations to the Executive other than the
obligation to pay to the Executive * * * (ii) retirement benefits specified in section 2(b)(vii) hereinabove, to the extent vested as specified therein * * * 
 *        *        * 
 14.
Successors.  
 (a) This Agreement is personal to the Executive and without the prior written consent of the Company
shall not be assignable by the Executive otherwise than by will or the laws 

 
of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives. 
 (b) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 
 (c) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company or any of its affiliated companies would be required to perform it if
no such succession had taken place. As used in this Agreement, “the Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise. As used in this Agreement, the term “affiliated companies” shall include any company controlled by, controlling or under common control with the Company. 
 *        *        * 
 18. Arbitration. In the event of any dispute, claim or controversy between the Executive and the Company (or its directors, officers, employees or
agents) arising out of this Agreement or the Executive’s employment with the Company, both Parties agree to submit such dispute, claim or controversy to final and binding arbitration before the American Arbitration Association (“AAA”)
in accordance with the AAA National Rules for the Resolution of Employment Disputes. The claims governed by this arbitration provision include, but are not limited to, claims for breach of contract, civil torts and employment discrimination such as
violation of the Fair Employment and Housing Act, Title VII of the Civil Rights Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act, and other employment laws. 
 (a) The arbitration shall be conducted by a single arbitrator selected either by mutual agreement of the Executive and the Company or, if
they cannot agree, from an odd-numbered list of experienced employment law arbitrators provided by the American Arbitration Association. Each Party shall strike one arbitrator from the list alternately until only one arbitrator remains. 

(b) Each Party shall have the right to conduct reasonable discovery, as determined by the arbitrator. 
 (c) The arbitrator shall have all powers conferred by law and a judgment may be entered on the award by a court of law having
jurisdiction. The arbitrator shall render a written arbitration award that contains the essential findings and conclusions on which the award is based. The award and judgment shall be binding and final on both Parties. 
 (d) The Company will advance the arbitrator’s fees and costs as well as any AAA administrative fees. The Parties shall each advance
the fees of their own attorneys and the expenses of their own witnesses. To the extent permitted by law, the Arbitrator may in his 

 
or her discretion award the prevailing party the reasonable legal fees and expenses incurred in the arbitration. 
 (e) This agreement to arbitrate shall continue during the term of employment and thereafter regarding any employment-related disputes.

 (f) The Executive and the Company understand that by signing this Agreement, they give up their right to a civil trial and
their right to a trial by jury. 

 EXHIBIT A 
 RELEASE AGREEMENT 
 This Release Agreement (“Release”) was signed by me, RONALD W. BACHLI
(“the Executive”) and given to PLACER SIERRA BANCSHARES, a California corporation (the “Company”) this              day of
                , 200  . At such time as this Release becomes effective and enforceable (i.e., the revocation period set forth below has
expired), and assuming the Executive is otherwise eligible for payments under the terms of that certain Employment Agreement between the Executive and the Company effective as of January 1, 2006, as amended (the “Agreement”), the
Company agrees to pay the Executive, pursuant to the terms of the Agreement, (a) a single sum payment in the amount of $                 (less payroll taxes
and withholding required by any federal, state or local law, any additional withholding to which the Executive has agreed, and any outstanding obligations owed by the Executive to the Company); (b) the retirement benefit to be provided pursuant
to Section 2(b)(vii) of the Agreement (less payroll taxes and withholding required by any federal, state or local law and any additional withholding to which the Executive has agreed) for a period of ten years, commencing as set forth in
Section 2(b)(vii) of the Agreement, with the vesting schedule provided in Section 2(b)(vii) of the Agreement accelerated and the Executive fully vested in such retirement benefits; and (c) the consulting fee to be provided pursuant to
Section 3(c)(vii) of the Agreement (less payroll taxes and withholding required by any federal, state or local law and any additional withholding to which the Executive has agreed). 
 The Executive is also entitled to receive (i) those benefits, if any, that have vested by operation of state or federal law or under any written
term of a plan (“Vested Benefits”); (ii) health care coverage continuation rights (at his own expense) under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended; and (iii) vesting of any stock options, as
specified in the Agreement. 
 In consideration of the Company’s promise to pay the amounts set forth above, the Executive hereby
agrees, for himself, his heirs, executors, administrators, successors and assigns (hereinafter referred to as the “Releasors”), to fully release and discharge the Company and each of its parent companies, shareholders, subsidiaries,
divisions and affiliates, and each of their respective officers, partners, directors, members, managers, employees and agents, and each of their respective predecessors, successors, heirs and assigns (hereinafter referred to as the
“Releasees”) from any and all claims, suits, causes of action, debts, obligations, costs, losses, liabilities, damages and demands under any federal, state or local law or laws, or contract, tort or common law, whether or not known,
suspected or claimed, which the Releasors have, or hereafter may have, against the Releasees arising out of or in any way related to the Executive’s employment (or other contractual relationship) with the Company and/or the termination of that
relationship. The claims released herein include claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Employee Retirement Income Security Act, the Americans with Disabilities Act, the U.S. Pregnancy
Discrimination Act, the U.S. Family and Medical Leave Act, the U.S. Fair Labor Standards Act, the U.S. Equal Pay Act, The Workers Adjustment and Notification Act, the California Fair Employment and Housing Act, and the California Labor Code.
Provided, however, that this Agreement does not waive rights or claims under the Age Discrimination in Employment Act that may arise after the date this Release is executed. 

 It is understood and agreed that this Release extends to all such claims and/or potential claims, and
that the Executive, on behalf of the Releasors, hereby expressly waives all rights with respect to all such claims under California Civil Code section 1542, which provides as follows: 
 A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or her settlement with the debtor. 
 The monies to be paid to
the Executive under this Release are in addition to any sums to which he would be entitled without signing this Release. 
 The Executive
acknowledges that he has read and does understand the provisions of this Release. The Executive acknowledges that he affixes his signature hereto voluntarily and without coercion, and that no promise or inducement has been made other than those set
out in this Release and that he executes this Release without reliance on any representation by any Releasee. 
 The Executive understands
that this Release involves the relinquishment of his legal rights, and that he has the right to, and has been given the opportunity to, consult with an attorney of his choice. The Executive acknowledges that he has been (and hereby is) advised by
the Company that he should consult with an attorney prior to executing this Release. 
 This document does not constitute, and shall not be
admissible as evidence of, an admission by any Releasee as to any fact or matter. 
 In case any part of this Release is later deemed to be
invalid, illegal or otherwise unenforceable, the Executive agrees that the legality and enforceability of the remaining provisions of this Release will not be affected in any way. 
 The Executive acknowledges that he has been given a period of twenty-one (21) days from receipt of this Release within which to consider this
Release and decide whether or not to execute this Release. If the Executive executes this Release at any time prior to the end of the 21 day period, such early execution was a knowing and voluntary waiver of the Executive’s right to consider
this Release for at least 21 days, and was due to his belief that he had ample time in which to consider this Release. 
 The Executive may,
within seven (7) days of his execution and delivery of this Release, revoke this Release by a written document received by the Company on or before the end of the seven (7) day period. The Release will not be effective until said
revocation period has expired. No payments will be made hereunder if the Executive revokes this Release. 
  

					
	 Dated: _______________________________
	  	  

		 		  	RONALD W. BACHLIEmployment Agreement

 EXHIBIT 10.1 
 EXECUTION VERSION 
 EMPLOYMENT AGREEMENT 
 This agreement (“Agreement”), dated as of November 7, 2006, is made by and between Stephen J. Hemsley (“Executive”) and
UnitedHealth Group Incorporated (“UnitedHealth Group” or the “Company”). The “Effective Date” of this Agreement is as set forth in Section 6(k). Unless the context otherwise requires, when used in this Agreement
all references to “UnitedHealth Group” include any entity affiliated with UnitedHealth Group. 
 WHEREAS, Executive was unanimously
selected by the Board of Directors of the Company (“Board”) to serve as the President and Chief Executive Officer of the Company; 
 WHEREAS, the decision to employ Executive as the President and Chief Executive Officer of the Company is consistent with the Company’s succession plan, fully considered by the Board; 
 WHEREAS, the Company desires Executive to serve, and Executive desires to serve, as the President and Chief Executive Officer of the Company; 

WHEREAS, the Company desires to retain long-term leadership with the Executive; 
 WHEREAS, the Executive was employed by the Company prior to the Effective Date pursuant to an employment agreement dated as of October 13, 1999, as
supplement by a letter dated February 13, 2001, and an amendment effective as of August 5, 2005 (as so supplemented and amended, the “Prior Agreement”), and the Company and Executive wish to replace the Prior Agreement with the
terms set forth in this Agreement; 
 WHEREAS, the Company has determined that the terms agreed upon by the parties and set forth in this
Agreement are reasonable and appropriate and will assist in accomplishing the Company’s near and long-term leadership goals; and 
 WHEREAS, in exchange for the consideration set forth in this Agreement, Executive is willing to give the Company, under certain circumstances, his covenant not to compete, to protect UnitedHealth Group’s knowledge, expertise, customer
and provider relationships, and the confidential information UnitedHealth Group has developed about its customers, providers, products, operations, and services; 
 NOW, THEREFORE, in consideration of the promises and the mutual agreements contained herein, the Company and Executive hereby agree as follows: 
 1. Employment. UnitedHealth Group agrees to employ Executive, and Executive hereby accepts such employment with the Company, upon the terms and
conditions set forth in this Agreement, for the period beginning on the Effective Date and ending on the fourth annual anniversary of the Effective Date (the “Employment Period”), unless sooner terminated in accordance with the terms of
this Agreement. The Employment Period shall automatically be extended for successive additional one-year periods unless either party to this Agreement provides the other party with notice of termination of this Agreement at least sixty
(60) days prior to the expiration of the original four-year period or any one-year period thereafter. 

 2. Position and Duties. UnitedHealth Group hereby employs Executive as the President and Chief
Executive Officer of UnitedHealth Group. Executive shall, during the term of his employment hereunder and subject to the supervision and control of the Board, perform such duties, have such power, and exercise such supervision and control with
regard to the business of UnitedHealth Group as are commonly associated with or appropriate to the offices of the President and Chief Executive Officer. Executive shall report to the Board. Executive accepts such employment on the terms and
conditions set forth in this Agreement and, except as specifically superseded by this Agreement, subject to all of UnitedHealth Group’s policies and procedures, as changed from time-to-time, in regard to its employees generally. During the
period of his employment, the Board shall nominate Executive as a director for election by the stockholders of the Company to the Board. 
 3. Compensation. 
 (a) Base Salary. Executive shall be paid a base annual salary in the amount of
$1,300,000 payable bi-weekly in accordance with UnitedHealth Group’s then current payroll practices, less all applicable withholdings and deductions. From time to time the Company’s Compensation and Human Resources Committee (the
“Committee”) shall review Executive’s performance and may increase (but not decrease) Executive’s base salary in the Committee’s sole discretion. 
 (b) Bonus and Other Incentive Arrangements. During the Employment Period, Executive shall be eligible for an annual cash bonus
payment, equity awards, and long-term incentive compensation payments, to the extent and in such amount, if any, as recommended by the Committee of the Board. Any such bonus payments, equity awards or other payment shall be payable in such form and
manner as may be determined by the Company. 
 (c) Employee Benefits. Executive shall be eligible to participate in
UnitedHealth Group’s other employee benefit plans, fringe benefit arrangements and perquisites, including without limitation, any life, health, dental, short-term and long-term disability insurance coverage and any retirement or savings plans,
in accordance with the terms and conditions of those plans and on a basis consistent with that customarily provided for other employees of a similar level within UnitedHealth Group. 
 (d) Supplemental Employee Retirement Plan. The parties previously entered into a supplemental retirement benefit plan, which is
being amended and shall be attached hereto, as amended, as Exhibit A (“SERP”), the terms and conditions of which are incorporated herein by reference. 
 (e) Vacation and Illness. Executive shall be entitled to paid vacation and sick leave benefits each year in accordance with
UnitedHealth Group’s then-current policies and on a basis consistent with that customarily provided other employees of a similar level of UnitedHealth Group. 
  

 2 

 (f) Stock Options. Stock options previously granted to Executive shall continue to
vest in accordance with their terms, as set forth in the applicable agreements, plans and other documents evidencing and governing such options, subject to amendments thereto, including, without limitation, any amendments to the exercise price
thereof as may be agreed upon from time to time by Executive and UnitedHealth Group. In no event will the vesting, exercise or other terms and conditions of any stock options previously granted to Executive be enhanced, changed, reduced or otherwise
modified in any manner whatsoever as a result of the terms and conditions of this Agreement. The parties hereby agree to the incorporation by reference of any governing provisions from the Prior Agreement and any applicable stock option
certificates, but solely to the extent necessary to accomplish the intent of the foregoing sentence. 
 4. Term and Termination.

 (a) Term. This Agreement shall continue in full force and effect during the Employment Period and may be terminated
as set forth in Section 1 or as otherwise set forth below. 
 (b) Termination of Agreement. 
 (i) This Agreement and Executive’s employment hereunder may be terminated at any time by the mutual written agreement of the parties.

 (ii) From and after the first anniversary of this Agreement, this Agreement and Executive’s employment may be
terminated by UnitedHealth Group for any reason without Cause and at any time upon 90 days’ prior written notice to Executive. 
 (iii) Executive may resign his employment and terminate this Agreement without Good Reason (as defined below) upon 90 days’ prior written notice to UnitedHealth Group. 
 (iv) This Agreement and Executive’s employment shall automatically terminate upon the death or permanent disability (as determined
under the Company’s group disability plan) of Executive. 
 (v) This Agreement and Executive’s employment may be
terminated by UnitedHealth Group for Cause (as defined below) immediately upon written notice to Executive. 
 (vi) This
Agreement and Executive’s employment may be terminated by Executive for Good Reason upon 90 days’ prior written notice from Executive to UnitedHealth Group specifying such Good Reason, provided that such notice is given within 120 days
after the initial occurrence of such Good Reason, and provided further that the events giving rise to Good Reason shall not have been remedied as of the date of such notice. 
 (c) Termination of Employment by UnitedHealth Group for Cause. If Executive’s employment with UnitedHealth Group is terminated
by UnitedHealth Group 

  

 3 

 
for Cause then, upon termination of the Executive’s employment, Executive shall be entitled to no further compensation or payments from the Company
other than earned but unpaid salary and benefits. 
 (d) Termination of Employment by UnitedHealth Group without Cause.
If Executive’s employment with UnitedHealth Group is terminated by UnitedHealth Group without Cause other than upon the expiration of the then current original four-year period or any subsequent one-year period as described in Section 1,
as applicable, then, upon termination of Executive’s employment as severance and in lieu of any other compensation, Executive shall continue to receive, at the times otherwise payable hereunder, the annual base salary for the longer of
(i) the remainder of the Employment Period and (ii) twelve months. Notwithstanding the foregoing, if UnitedHealth Group determines that Executive’s payments under this Section are subject to Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”), such payments shall be delayed six months and one day after Executive’s separation from service (to the extent necessary to comply with Section 409A). The first cash payment made following
such delay shall include a lump sum of all prior missed payments. 
 (e) Termination of Employment by Executive (other than
Good Reason or retirement). If Executive’s employment with UnitedHealth Group is terminated by Executive without Good Reason and other than by retirement, then, upon termination of Executive’s employment, Executive shall be entitled to
no further compensation or payments from the Company other than earned but unpaid salary and benefits. 
 (f) Termination
of Employment in the Event of Death. If Executive’s employment with UnitedHealth Group is terminated due to the death of Executive then, upon termination of Executive’s employment, Executive (and his estate, beneficiaries and any other
person claiming through him) shall be entitled to compensation from the Company, in addition to earned but unpaid salary and benefits, in an amount equal to two years’ total compensation of base salary plus the average of the bonus paid or
payable to Executive for the two most recent calendar years (excluding any special or one-time bonus or incentive compensation payments), less all applicable withholdings or deductions, payable in a lump sum on the date of such termination of
employment. 
 (g) Termination of Employment in the Event of Disability. If Executive’s employment with
UnitedHealth Group is terminated due to the permanent disability of Executive then, upon termination of Executive’s employment, Executive shall be entitled in addition to compensation or payments from the Company to earned but unpaid salary and
benefits, in an amount equal to two years’ total compensation of base salary plus the average of the bonus paid or payable to Executive for the two most recent calendar years (excluding any special or one-time bonus or incentive compensation
payments), less all applicable withholdings or deductions, payable in a lump sum on the date of such termination of employment. Notwithstanding the foregoing, if UnitedHealth Group determines that Executive’s payments under this Section are
subject to Section 409A of the Code, such payments shall be delayed six months and one day after Executive’s separation from service (to the extent necessary to comply with Section 409A). The first cash payment made following such
delay shall include a lump sum of all prior missed payments. 
  

 4 

 (h) Termination of Employment for Retirement. If Executive’s employment with
UnitedHealth Group is terminated by Executive by reason of retirement or upon expiration of the Employment Period, then, upon termination of Executive’s employment, Executive shall be entitled to no further compensation or payments from the
Company other than earned but unpaid salary and benefits. 
 (i) Termination of Employment by Executive for Good
Reason. If Executive’s employment with UnitedHealth Group is terminated by Executive for Good Reason, then, upon termination of Executive’s employment as severance and in lieu of any other compensation, Executive shall continue to
receive, at the times otherwise payable hereunder, the annual base salary for the longer of (i) the remainder of the Employment Period and (ii) twelve months. Notwithstanding the foregoing, if UnitedHealth Group determines that
Executive’s payments under this Section are subject to Section 409A of the Code, such payments shall be delayed six months and one day after Executive’s separation from service (to the extent necessary to comply with
Section 409A). The first cash payment made following such delay shall include a lump sum of all prior missed payments. 
 (j) Cause. For purposes of this Agreement, “Cause” means (A) the willful and continued failure by Executive substantially to perform his duties hereunder (other than any such failure resulting from his disability or
from termination by Executive for Good Reason), after a written demand for substantial performance is delivered to Executive that specifically identifies the manner in which Executive has not substantially performed his duties, and Executive has not
remedied such failure within a reasonable time after receipt of such written notice; (B) a violation of UnitedHealth Group’s Code of Conduct that is materially detrimental to UnitedHealth Group and that Executive has not remedied within a
reasonable time after receipt of a written notice from UnitedHealth Group that specifically identifies such violations; (C) the conviction of Executive of, or a plea of nolo contendere with respect to, a felony; (D) engaging
by Executive in fraud, material dishonesty or gross misconduct in connection with the business of the Company; or (E) any other willful and material breach of this Agreement by Executive that Executive has not remedied within a reasonable time
after receipt of a written notice from UnitedHealth Group that specifically identifies such breach. For purposes of this paragraph, no act, or failure to act, on Executive’s part will be deemed “willful” unless done, or omitted to be
done, by Executive not in good faith and without reasonable belief that his action or omission was in the best interest of UnitedHealth Group. 
 (k) Good Reason. For purposes of this Agreement, “Good Reason” means (A) the assignment to Executive of any duties inconsistent in any respect with Executive’s position (including status,
offices, titles and reporting relationships), authority, duties or responsibilities as contemplated by Section 2 or any other action by UnitedHealth Group which results in a diminution in such position, authority, duties or responsibilities,
excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by UnitedHealth Group promptly after receipt of notice thereof given by Executive; (B) the failure by UnitedHealth Group
to elect Executive to the position of the President and Chief Executive Officer or the failure by the Board to nominate the Executive to serve on the Board or any other action by UnitedHealth Group which results in the diminution of Executive’s
position, authority, duties, or responsibilities, excluding an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by 

  

 5 

 
Group promptly after receipt of notice thereof given by Executive; (C) any failure of UnitedHealth Group to pay base salary or incentive compensation as
provided herein or to provide benefits in accordance with the Company’s plans, programs, policies and practices on the most favorable basis such plans programs, policies and practices were maintained and benefits are provided to Executive on
the Effective Date; (D) UnitedHealth Group’s requiring Executive to be based at any office or location other than its principal executive offices at its current location in Minnetonka, Minnesota or within twenty-five miles of such current
location, except for travel reasonably required in the performance of the Executive’s responsibilities; (E) any purported termination by UnitedHealth Group of Executive’s employment otherwise than as expressly permitted by this
Agreement; or (F) any other material breach of this Agreement by UnitedHealth Group that is not remedied within a reasonable time after written notice from Executive to UnitedHealth Group that specifically identifies such breach. 
 (l) Upon Executive’s termination, he will resign from the Board and any committees thereof. 
 5. Property Rights, Confidentiality, Non-Solicit and Non-Compete Provisions. 
 (a) Property Rights. 
 (i) Executive shall promptly disclose to UnitedHealth Group 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 UnitedHealth Group 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 UnitedHealth Group. Executive shall give UnitedHealth Group any of the assistance it reasonably requires in order for UnitedHealth Group to perfect, protect and use its rights to inventions and works of
authorship. 
 This provision shall not apply to an invention, discovery, or work of authorship for which no equipment,
supplies, facility, or trade secret information of UnitedHealth Group was used and which was developed entirely on the Executive’s own time and which does not relate to the business of UnitedHealth Group, to UnitedHealth Group’s
anticipated research or development, or does not result from any work performed by Executive for UnitedHealth Group. 
 (ii)
Executive shall not remove any records, documents, or any other tangible items (excluding Executive’s personal property) from the premises of UnitedHealth Group in either original or duplicate form, except as is needed in the ordinary course of
conducting business for UnitedHealth Group. 
 (iii) Executive shall immediately deliver to UnitedHealth Group, upon
termination of employment with UnitedHealth Group, or at any other reasonable time upon UnitedHealth Group’s request, any property, records, documents, and other tangible items (excluding Executive’s personal property) in 

  

 6 

 
Executive’s possession or control, including data incorporated in word processing, computer, and other data storage media, and all copies of such
records, documents, and information, including all Confidential Information, as defined below. 
 (b) Confidential
Information. During the course of his employment Executive will develop, become aware of and familiar with, accumulate and learn confidential proprietary and trade secret information regarding (among other things) UnitedHealth Group’s
organization, strategies, business, and operations and UnitedHealth Group’s past, current, or potential customers, providers, and suppliers. Except to the extent required for Executive to perform his obligations to UnitedHealth Group, Executive
shall not, both during Executive’s employment with UnitedHealth Group and thereafter, use any such Confidential Information or disclose it to other persons or entities except as is necessary for the performance of Executive’s duties for
UnitedHealth Group or as has been expressly permitted in writing by UnitedHealth Group. Provided, however, that the foregoing covenant shall not apply to any information possessed by Executive prior to his employment by UnitedHealth Group, or to any
information which is in or has entered the public domain or has been disclosed within any industry segment in which UnitedHealth Group or any subsidiary or affiliated company of UnitedHealth Group operates by or pursuant to the authority of
UnitedHealth Group or any subsidiary or affiliated company of UnitedHealth Group. 
 (c) Non-Competition. Executive
acknowledges that by virtue of his employment with UnitedHealth Group, including under this Agreement, he (i) has and will become familiar with UnitedHealth Group’s Confidential Information concerning UnitedHealth Group and its business,
and (ii) will develop, preserve, solidify and/or enhance goodwill and relationships with (among others) key customers and suppliers of UnitedHealth Group. Executive agrees that during his employment with UnitedHealth Group (both under this
Agreement and thereafter) and for a period equal to the longer of (A) two (2) years immediately after Executive’s employment with UnitedHealth Group ends or (B) the period during which Executive is receiving severance payments
pursuant to Section 4(d) or 4(i) (the “Restricted Period”), and regardless of how or why Executive’s employment ends, Executive shall not, directly or indirectly, as an employee, officer, partner, director or otherwise, solely on
behalf of a company whose principal business is the managed healthcare business (a “Proscribed Company”), (i) assist such Proscribed Company in competing, against UnitedHealth Group or any of its subsidiaries in the United States in
the managed healthcare business; (ii) assist such Proscribed Company in engaging, in the United States, in the managed healthcare business; (iii) own any interest in, or manage, control, or provide any executive, managerial, supervisory,
sales, marketing or consulting services for, a Proscribed Company that competes against UnitedHealth Group, or any subsidiary thereof, in the managed healthcare business; provided, however, that nothing herein shall prohibit Executive
from being a passive owner of not more than 2% of the outstanding stock of any class of a corporation which is publicly traded; and; provided, further, that this Section 5(c) shall not prevent Executive from being employed by, or
working as a consultant to, or serving on the board of, or being an owner of or an investor in a private equity firm. Executive understands and acknowledges that UnitedHealth Group’s managed healthcare business and his duties and
responsibilities encompass the entire United Sates and he agrees, in light of his executive-level position, duties and responsibilities, the Confidential Information he will have, and the goodwill and relationships he is being paid to develop on
behalf of UnitedHealth Group, that the restrictions in this Section are reasonable. 
  

 7 

 (d) Non-Solicitation. Except as required in connection with Executive’s
duties under this Agreement, Executive shall not, during the Restricted Period, and regardless of how or why Executive’s employment ends, directly or indirectly, solely on behalf of a Proscribed Company, (i) employ, solicit or recruit for
employment or otherwise contract for, or assist a Proscribed Company in soliciting, recruiting, employing, or otherwise contracting for, the services of any person who was an employee of UnitedHealth Group (or any subsidiary thereof) at any time
during the last four (4) months of Executive’s employment with UnitedHealth Group and who had provided executive, managerial, supervisory, sales, marketing or consulting services to UnitedHealth Group or any subsidiary, or
(ii) induce, attempt to induce, or assist a Proscribed Company in inducing or attempting to induce, any customer, supplier, licensee, licensor or other business relation of UnitedHealth Group or any subsidiary to cease doing business with
UnitedHealth Group or any subsidiary in the managed healthcare business, or in any way interfere with the relationship between any such customer, supplier, licensee, licensor or business relation and UnitedHealth Group or any subsidiary in the
managed healthcare business, or (iii) provide, or attempt to provide, or assist a Proscribed Company in providing, goods or services to any such customer, supplier, licensee or other business relation of UnitedHealth Group in competition
against UnitedHealth Group in the managed healthcare business; provided, that this Section 5(d) shall not prevent Executive from being employed by, or working as a consultant to, or serving on the board of, or being an owner of or an
investor in a private equity firm. Executive acknowledges and agrees that the restrictions in this Section are reasonable. 
 6.
Miscellaneous. 
 (a) Withholding. All payments hereunder shall be subject to deductions for customary
withholdings, including, without limitation, federal, state and local withholding taxes and social security taxes. 
 (b)
Assignment. This Agreement shall be binding upon and shall inure to the benefit of the parties and their respective legal and personal representatives, heirs, successors, and assigns, but may not be assigned by either party (except by
operation of law upon death or disability of Executive and except that UnitedHealth Group may assign its obligations hereunder to a wholly owned subsidiary provided that such assignment shall not relieve UnitedHealth Group of its obligations under
this Agreement) without the prior written consent of the other party. UnitedHealth Group will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of its business and/or
assets to assume expressly and agree to perform this Agreement in the same manner and to the same extent that UnitedHealth Group is required to perform under this Agreement if no such succession had taken place. As used in this Agreement,
“UnitedHealth Group” shall mean each and any successor to is business and/or assets aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. 
  

 8 

 (c) 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. 
  

			
	UnitedHealth Group:	 	300 Opus Center
		 	9900 Bren Road East
		 	Minnetonka, MN 55343
		 	Attn: General Counsel
		
	Executive:	 	Stephen J. Hemsley
		 	300 Opus Center
		 	9900 Bren Road East
		 	Minnetonka, MN 55343

 (d) 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, subject to Section 6(i) hereof. On the Effective Date, 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 Executive and UnitedHealth Group or any of its subsidiaries and affiliated companies.

 (e) Choice of Law. This Agreement shall be construed and interpreted under the applicable laws and decisions of the
State of Minnesota. 
 (f) 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. 
 (g) Adequacy of Consideration. Executive acknowledges and agrees that he has received, prior to or contemporaneously with the
Effective Date, adequate consideration from UnitedHealth Group to enter into this Agreement. 
 (h) Dispute Resolution and
Remedies. Any dispute arising between the parties relating to this Agreement or to Executive’s employment by UnitedHealth Group shall be resolved by binding arbitration held in the City of Minneapolis pursuant to the Rules of the American
Arbitration Association, except as hereinafter expressly modified. If the disputing and responding parties are unable to agree upon a resolution within forty-five business days after the responding party’s receipt of written notice from the
disputing party setting forth the nature of the dispute, within the following ten business days the disputing and responding parties shall select a mutually acceptable single arbitrator to resolve the dispute or if the parties fail or are unable to
do so, each shall within the following ten business days select a single arbitrator, and the two so selected shall select a third arbitrator within the following ten business days. Such single arbitrator or, as the case may be, panel of three
arbitrators acting by majority decision, shall resolve the dispute within sixty days after 

  

 9 

 
the date such arbitrator, or the last of them so selected, is selected, or as soon thereafter as practicable. If either party refuses or fails to select an
arbitrator within the time therefor, the other party may do so on such refusing or failing party’s behalf. The arbitrators shall have no power to award any punitive or exemplary damages or may construe or interpret but shall not ignore or vary
the terms of this Agreement and shall be bound by controlling law. Nothing herein, however, shall prevent UnitedHealth Group from filing suit in order to obtain injunctive relief, including temporary and preliminary relief, with respect to
Executive’s obligations under Section 5 of this Agreement, and the parties acknowledge that Executive’s failure to comply with his obligations under Section 5 of this Agreement will cause immediate and irreparable injury to
UnitedHealth Group. The party not prevailing in the proceeding and/or the litigation shall bear the costs and expenses thereof, including without limitation, the reasonable attorneys’ fees of the prevailing party. The arbitration award or other
resolution may be entered as a judgment at the request of the prevailing party by any court of competent jurisdiction in Minnesota or elsewhere, and any such action brought by UnitedHealth Group may be brought and pursued in the State or Federal
courts for the State of Minnesota. 
 (i) Judicial Modification. If a court or other tribunal of competent jurisdiction
determines that any of the provisions of this Agreement are illegal, void as against public policy or otherwise unenforceable, then such provisions shall be modified to the extent necessary to make such provisions enforceable and then enforced to
the full extent permissible under the applicable law consistent to the maximum extent permissible with the intent of the parties hereto. Executive has reviewed this entire Agreement with his counsel, and Executive acknowledges and agrees that each
of the provisions contained in this Agreement is reasonable and should be fully enforceable. 
 (j) Survival. The
provisions of Sections 3(d), 4(d), 5 and 6 shall survive any termination of this Agreement. The existence of any claim or cause of action by Executive against UnitedHealth Group, whether predicated on this Agreement or otherwise, shall not
constitute a defense to the enforcement by UnitedHealth Group of Executive’s obligations under Section 5 of this Agreement. The parties also agree that Executive’s obligations under Section 5 remain in effect regardless of any
reason that his employment with UnitedHealth Group ends. 
 (k) Effective Date/Good Reason under Prior Agreement.
Subject to the following sentence, the “Effective Date” of this Agreement shall be the earlier of (i) the first day that (A) the current Chief Executive Officer of the Company is no longer Chief Executive Officer, (B) the
action of the Board on the date hereof appointing Executive to become President and Chief Executive Officer upon the position of Chief Executive Officer becoming vacant remains in full force and effect and unamended, and (C) there is no other
impediment, by injunction or otherwise, that prevents Executive from assuming the positions of President and Chief Executive Officer of the Company or (ii) December 1, 2006. The parties hereto acknowledge and agree that, notwithstanding
anything herein to the contrary: (x) the Prior Agreement shall remain in full force and effect until the Effective Date of this Agreement, upon which occasion the Prior Agreement shall terminate without further action of any party; and
(y) if the Effective Date has occurred and the Executive is not the President and Chief Executive Officer of the Company, then Executive shall have 

  

 10 

 
the right to terminate his employment for Good Reason pursuant to the Section 4(k) of this Agreement upon sending a written notice to the Company but
without the obligation to wait during any cure period after sending such written notice. 
 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 on the date set forth below. 
  

									
	UnitedHealth Group Incorporated	 		 		 	Stephen J. Hemsley
					
	By:	 	 /s/ Richard T. Burke
	 		 		 	 /s/ Stephen J. Hemsley

	Date:	 	November 7, 2006	 		 		 	Date: November 7, 2006

  

 11 

 Exhibit A 
 Agreement for Supplemental Executive Retirement Pay, effective April 1, 2004, between UnitedHealth Group Incorporated and Stephen J. Hemsley (incorporated by reference to Exhibit 10(b) to UnitedHealth Group Incorporated’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2004) 

 AMENDMENT TO AGREEMENT FOR SUPPLEMENTAL EXECUTIVE RETIREMENT PAY 
 This Amendment, effective as of November 7, 2006, is made by and between Stephen J. Hemsley (“Executive”) and UnitedHealth Group
Incorporated, a Minnesota corporation (“UnitedHealth Group”). 
 WITNESSETH: 
 WHEREAS, Executive is currently employed as President and Chief Operating Officer of UnitedHealth Group; and 
 WHEREAS, the Employment Agreement, originally effective October 13, 1999, between Executive and UnitedHealth Group (“Executive’s
Employment Agreement”) provides that UnitedHealth Group will use its best efforts to establish and provide Executive a supplemental retirement benefit plan; and 
 WHEREAS, UnitedHealth Group and Executive have previously entered into an Agreement for Supplemental Executive Retirement Pay, dated April 1, 2004 (the “SERP”), which satisfies the requirement in
Executive’s Employment Agreement for UnitedHealth Group to provide Executive a supplemental retirement benefit plan; and 
 WHEREAS,
UnitedHealth Group and Executive wish to discontinue further accruals to Executive’s supplemental retirement benefit and fix the amount of Executive’s supplemental retirement benefit under the SERP to the amount payable under the SERP as
of May 1, 2006; and 
 WHEREAS, UnitedHealth Group and Executive wish to amend and restate the SERP to comply with Section 409A of
the Internal Revenue Code (the “Code”). 
 NOW, THEREFORE, based on the foregoing and the mutual promises which follow, the parties
hereto agree as follows: 
 1. SUPPLEMENTAL RETIREMENT BENEFIT. The parties hereto hereby agree that the amount of the supplemental retirement benefit
payable under the SERP shall be fixed at the amount payable under the SERP as of May 1, 2006 as if Executive’s employment with UnitedHealth Group terminated as of such date. Further the parties hereto agree that the supplemental retirement
benefit payable under the SERP based on the provisions of Section 1 of the SERP and the assumptions in the preceding sentence is Ten Million Seven Hundred Three Thousand Two Hundred Twenty Nine and 00/100 Dollars ($10,703,229.00). Accordingly,
Section 1.3 of the SERP is hereby amended to read in full as follows: 
 1.3 Amount of Benefit. The amount of the lump sum amount
payable to Executive under this Agreement shall be equal to Ten Million Seven Hundred Three Thousand Two Hundred Twenty Nine and 00/100 Dollars ($10,703,229.00). 
 2. SECTION 409A COMPLIANCE. Since the SERP was entered into by the parties hereto, Section 409A of the Code was enacted. The parties desire to amend the SERP to comply 

 
with Section 409A of the Code. Accordingly, the parties hereby amend the SERP to add the following new Section 1.6 to the SERP: 
 1.6 Section 409A Compliance. Notwithstanding any other provisions of this Agreement: (i) if Executive is a “specified employee”
under Section 409A of the Code at the time of his separation from service from UnitedHealth Group and all affiliates, the supplemental retirement benefit to which Executive is entitled under Section 1.3 of the Agreement shall be paid
within sixty (60) days following the date that is six (6) months and one (1) day following Executive’s separation from service; and (ii) payment shall only be delayed for purposes of maximizing UnitedHealth Group’s
federal income tax deduction to the extent permitted under Section 409A of the Internal Revenue Code. 
 IN WITNESS WHEREOF, this
Agreement has been signed by the parties hereto on the date set forth below. 
  

									
	UNITEDHEALTH GROUP INCORPORATED	 		 		 	STEPHEN J. HEMSLEY
					
	By	 	 /s/ Richard T. Burke
	 		 		 	 /s/ Stephen J. Hemsley

	Date	 	November 7, 2006	 		 		 	Date: November 7, 2006

  

 2

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