This excerpt taken from the UNH DEF 14A filed Apr 30, 2007.
George L. Mikan III, Richard H. Anderson and David S. Wichmann
The following discussion applies specifically to the Companys employment agreements with Messrs. Mikan, Anderson and Wichmann in connection with potential payments to such executive officers upon termination of employment or a change-in-control. The defined terms used in this section and the terms of the employment agreements are described in greater detail under Executive Employment Agreements above.
Termination Without Cause or for Good Reason. Had Messrs. Mikan, Anderson and Wichmanns employment terminated on December 31, 2006 without Cause or for Good Reason, cash payments to
Messrs. Mikan, Anderson and Wichmann would have been equal to 24 months of such executives base salary plus 200% of the executives target bonus, or approximately $2.5 million, $3.2 million and $2.6 million, respectively. The severance compensation will be payable over a 24-month period. In addition, each executive will be entitled to receive a $12,000 cash payment to offset the costs of benefits continuation coverage, and will be provided with outplacement services.
Termination Upon Disability. In addition to the Companys generally available benefits, the Company provides Messrs. Mikan, Anderson and Wichmann with a long term disability policy which covers 60% of their respective base salaries in the event of a qualifying disability. Had Messrs. Mikan, Anderson and Wichmanns employment been terminated due to disability on December 31, 2006, this supplemental annual disability benefit to Messrs. Mikan, Anderson and Wichmann, respectively, would have been approximately $390,000, $480,000 and $405,000, respectively.
Termination Upon Death. In addition to the Companys generally available benefits, the Company provides Messrs. Mikan, Anderson and Wichmann term life insurance with a face value of $2 million. Accordingly, had Messrs. Mikan, Anderson, and Wichmanns employment been terminated due to death on December 31, 2006, the life insurance benefits to Messrs. Mikan, Anderson and Wichmann would have been $2 million.