This excerpt taken from the UNH DEF 14A filed Apr 7, 2005.
Option Grants in 2004
Number of Securities Underlying Options Granted
% of Total Options Granted to Employees in 2004
Price ($ / share)
Potential Realizable Value at Assumed Annual Rates of Stock Price Appreciation for Option Term (2)
William W. McGuire
2 /11 / 14
Stephen J. Hemsley
2 / 11 / 14
David J. Lubben
12 / 7 / 14
Robert J. Sheehy
12 / 7 / 14
David S. Wichmann
8 / 6 / 14 12 / 7 / 14
All options granted in 2004 expire ten years following the date of grant, subject to earlier termination upon certain events related to termination of employment. Options not
yet exercisable generally become exercisable upon a change in control of the Company, as such term is defined in each executives employment agreement. Options granted under the Companys 2002 Stock Incentive Plan provide for five years of
additional vesting and exercisability (but not beyond the expiration date of the option) in the event of a termination by reason of retirement. Under the 2002 plan, retirement is defined as a termination, other than due to death or disability, by a
is 55 years of age or older and whose age plus number of years of continuous service with the Company totals at least 65.
The potential realizable value shown is the potential gain on the last day the option remains exercisable. This value will be achieved only if the options have been held for the
full ten years and the stock price has appreciated at the assumed rate. Potential realizable value is listed for illustration only. The values disclosed are not intended to be, and should not be interpreted as, representations or projections of
future value of our common stock or of the stock price.
Options become exercisable at the rate of 25% per year over a period of four years, beginning on January 1, 2005.
Options become exercisable at the rate of 25% per year on each of the first four anniversaries of the date of grant.