Document:

Exhibit
10.14

WELLPOINT HEALTH NETWORKS INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(As restated effective December 4, 2001)

(As amended October 24, 2003)

ARTICLE I

PURPOSE

The purpose of the WellPoint Health Networks Inc.
Supplemental Executive Retirement Plan is to provide additional retirement
benefits to selected executives of WellPoint Health Networks Inc. and its
affiliates and to provide additional incentives for them to remain in
employment with WellPoint and its affiliates. 
The Plan was adopted effective June 1, 2000 and restated effective
December 4, 2001.

This Plan is intended to be a plan that is unfunded
and that is maintained by WellPoint Health Networks Inc. primarily for the
purpose of providing deferred compensation for a select group of management or
highly compensated employees within the meaning of the Employee Retirement
Income Security Act of 1974 (“ERISA”).

ARTICLE II

DEFINITIONS

In this Plan, the following terms have the meanings
indicated below:

2.1   “Committee” means the Compensation
Committee of the Board of Directors of the Company, as constituted from time to
time.  The Committee has full
discretionary authority to administer and interpret the Plan, to determine
eligibility for Plan benefits, to select employees for Plan participation, and
to correct errors.  The Committee may
delegate its duties and responsibilities and, unless the Committee expressly
provides to the contrary, any such delegation will carry with it the
Committee’s full discretionary authority to accomplish the delegation.  Decisions of the Committee and its delegate
will be final and binding on all persons.

2.2   “Company “ means WellPoint Health
Networks Inc. and any successor to substantially all of the assets or business
of WellPoint Health Networks Inc. that, by appropriate action, adopts this
Plan.

2.3   “Final Average Pay” means for each
Participant the average annual salary and target annual bonus for the last five
(5) Years of Benefit Service (or the total Years of Benefit Service if fewer
than five (5)).

2.4   “Other Plan Offset Amount” means the
benefit which is payable to a Participant (or his or her spouse) from (i) the
WellPoint Health Networks Inc. Pension Accumulation Plan, as amended from time
to time, (ii) the Supplemental Pension Benefit portion of the WellPoint Health
Networks Inc. Comprehensive Executive Non-Qualified Retirement Plan, as amended
from time to time, (iii) any other defined benefit pension plan maintained at
any time by a WellPoint Company or an entity that is or was acquired by a
WellPoint Company, or which merges or consolidates with a WellPoint Company, or
which acquires a WellPoint

 

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Company, (iv) if determined by the Committee at the
time that an individual commences participation in the Plan, under a defined
benefit pension plan of a predecessor employer of the Participant or (v) any
annuity contract acquired under or upon termination of such plan.  If any such benefit is payable other than in
the form of a single life annuity or at a different time than the benefits
payable under this Plan, the Other Plan Offset attributable thereto will be
adjusted using the applicable actuarial assumptions that would be in effect
under the WellPoint Health Networks Inc. Pension Accumulation Plan with respect
to that Participant’ s benefits on the date that benefits under this Plan
become payable.

2.5   “Participant” means a current or
former officer of a WellPoint Company who has been selected by the Committee
for participation in this Plan and has received written notice of such
participation.  An individual who
becomes a Participant shall remain a Participant so long as he or she retains
an accrued benefit under the Plan, but further accrual of benefits will be subject
to the terms of the Plan.

2.6   “Plan” means this WellPoint Health
Networks Inc. Supplemental Executive Retirement Plan, as amended from time to
time.

2.7   “WellPoint Company” means the Company
and any other entity while that entity is a parent or a subsidiary of the
Company.

2.8   “Years of Benefit Service” means the
total of a Participant’s Years of Service, provided that (i) when the
individual first becomes a Participant, the Committee may exclude certain Years
of Service rendered before he or she becomes a Participant, (ii) the Committee
may include all or a portion of a Participant’s service rendered to an entity
before it becomes a WellPoint Company, and (iii) the Committee may at any time
cease future accrual of Years of Benefit Service for a Participant.  A Participant may be credited with
fractional Years of Benefit Service.

2.9   “Year of Service” means each 365 days
of service rendered by a Participant for a WellPoint Company.

2.10 “Year of Vesting Service” means each
Year of Service rendered by a Participant for a WellPoint Company after the
later of January 1, 2000 or the date that the individual commences
participation in the Plan.

 

ARTICLE III

AMOUNT OF BENEFIT

3.1   Retirement Benefit.

(a)   Normal Retirement.  If a Participant terminates employment on or
after attaining age sixty-two (62) and after completing five (5) full years of
vesting service, the Participant shall be entitled to receive an annual
retirement benefit for life, payable in monthly installments beginning on the
first day of the month on or after such termination that, before reduction for
the Other Plan Offset Amount, equals (i) his or her Applicable Retirement

 

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Percentage multiplied by (ii) his or her Final Average
Pay and (iii) if the Participant has less than fifteen (15) Years of Benefit
Service, multiplied by a fraction the numerator of which is the Participant’s
full Years of Benefit Service and the denominator of which is fifteen
(15).  The Applicable Retirement
Percentage for each Participant shall be either fifty (50%) or sixty (60%) as
designated by the Committee at the time that the Participant is selected for
participation in the Plan; provided that the Committee may, in its sole
discretion after participation commences, either change the Applicable
Percentage applicable to future Years of Benefit Service from 50% to 60% or
vice versa or increase the percentage from 50% to 60% applicable to all Years
of Benefit Service.

(b)   Early Retirement.  If a Participant terminates employment
before attaining age sixty-two (62), but after completing five (5) full Years
of Vesting Service, the Participant may elect to receive benefits on the first
day of any month beginning on or after the later of the date of termination or
attainment of age fifty-five (55), but not later than the first day of the
month on or after attainment of age sixty-two (62).  The annual retirement benefit (before reduction for the Other
Plan Offset Amount) shall be the benefit computed in accordance with subsection (a),
based on the number of Years of Benefit Service the Participant has actually
completed as of commencement of retirement benefits, reduced by 6.75% for each
year (or .5625% for each full calendar month) that benefits commence before the
first day of the month on or after the Participant would attain age sixty-two
(62).

(c)   Other Plan Offset Amount.  The amount of the single life annuity
payable to a Participant pursuant to subparagraph (a) or (b) above shall be
further reduced by the Other Plan Offset Amount.

3.2   Other Terminations.  Except as provided in Section 3.3 below, if
a Participant terminates employment with all WellPoint Companies before
completing five (5) full Years of Vesting Service, no benefits shall be payable
under the Plan to or on behalf of such Participant.

3.3   Certain Terminations.  If a Participant’s employment is terminated
under circumstances that would make such Participant eligible for benefits
under the WellPoint Health Networks Inc. Officer Change-in-Control Plan, as in
effect on the date of adoption of this Plan  or such termination, then (i) such Participant shall be deemed to
have five (5) full Years of Vesting Service at the time of such termination for
purposes of Sections 3.1 and 3.2 and (ii) such Participant shall, for purposes
of this Plan, be credited with such number of additional Years of Benefit
Service, and shall be deemed to be older by such number of years, as is set
forth in the Officer Change in Control Plan.

ARTICLE IV

DISTRIBUTIONS

4.1   Distribution of Benefits.  A Participant must elect the manner in which
his or her benefits will be paid out by following the procedures described
below and by satisfying such additional requirements as the Committee may
reasonably determine.

 

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(a)   Elections.  When a Participant first confirms his initial participation in
the Plan, the Participant must elect, in writing, which of the distribution
options described below will govern payment of the Participant’s benefits.

(b)   Timing.  A Participant’s benefits will be distributed, based on the
Participant’s election under (a) above, beginning with the first day of the
month beginning after the later of the Participant’s termination of employment
with all WellPoint Companies or attainment of age fifty-five (55) or, if later,
the date, if any, specified by the Participant in his election.  Any date specified by the Participant must
be at least twelve (12) full calendar months from the date of the election and
in no event later than the date on which the Participant would attain age
sixty-two (62).

(c)   Form. 
A Participant’s benefits will be distributed, based on the Participant’s
election under (a) above, in one of the following forms: (i) a single life
annuity payable to the Participant during his or her lifetime and ending with
the date of the Participant’s death; or (ii) a joint and survivor annuity
payable to the Participant during his or her lifetime and ending with the date
of the Participant’s death, with provision for the continuance of retirement
benefits to the spouse to whom the Participant is married on the date that
benefit distributions begin under this Plan during the lifetime of such spouse
in an amount equal to fifty percent (50%) or one hundred percent (100%) of the
monthly benefit paid to the Participant prior to the Participant’s death.  If the Participant elects a joint and
survivor annuity, the amount payable during the Participant’s lifetime and the
amount on which the continuing survivor benefit will be based will be
determined using the actuarial assumptions that would be in effect for the
Participant under the WellPoint Health Networks Inc. Pension Accumulation Plan
on the date that benefits under this Plan become payable.

(d)   Subsequent Elections.  Subject to approval by the Committee and to
the requirements of Sections 4.1(b) and 4.1(c) above, a Participant may change
a distribution election as to timing or form by submitting the change to the
Committee in writing.  A subsequent
election will be valid only if the distribution commences more than twelve (12)
months after the date of such subsequent election and if the prior specified
distribution date would have commenced more than twelve (12) months after the
date of the election change.

(e)   Default.  If the Committee does not have a proper distribution election on
file for a Participant, the Participant’s benefits will begin in the form of a
single life annuity on the first day of the month beginning after the later of
the Participant’s termination of employment with all WellPoint Companies or the
Participant’s attainment of age fifty-five (55).

4.2   Withholding.  The Company will deduct from Plan payouts, or from other
compensation payable to a Participant or his or her spouse, amounts required by
law to be withheld for taxes with respect to benefits under this Plan.

ARTICLE V

PRE-RETIREMENT DEATH BENEFIT

If a Participant who has completed at
least five (5) full Years of Vesting Service dies before commencement of
retirement benefits under the Plan, the spouse (if any) to whom 

 

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the Participant is married on the date of his or her
death shall be entitled to receive an annual survivor benefit payable in
monthly installments beginning on the first day of the month beginning after
the later of the date of the Participant’s death or the date the Participant
would have attained age fifty-five (55) and ending with the date of the
surviving spouse’s death.  The annual
survivor benefit will be equal to the survivor benefit that the spouse would
have received had the Participant commenced receipt of benefits on the date
that such survivor benefits begin in the form of a fifty percent (50%) joint
and survivor annuity.

ARTICLE VI

NON-COMPETITION REQUIREMENT

Notwithstanding any other provision of the Plan, if a
Participant at any time without the prior written approval of the Committee,
engages, directly or indirectly (including, but not limited to, as a director,
principal, partner, venturer, employee, consultant or agent), or has any direct
or indirect interest, in any business similar to or competitive with that being
carried on by a WellPoint Company or affiliate at the time of the Participant’s
termination of employment in any area of the world where any WellPoint Company
or an affiliate carries on such business, no further benefit payments shall be
made under the Plan to the Participant or his or her spouse after the
Participant first so engages in, or acquires an interest, in such
business.  Included within the meaning
of an indirect interest for purposes of this Article VI is, by way of example
only, an interest in a trust, corporation, venture or partnership which, in
turn, owns an interest in any such business, or an interest in any such
business through a nominee, agent, option or other device.  However, nothing in this Article VI will
prevent a Participant from serving on boards of companies for which he serves
as a director on the date that he or she becomes a Participant, or from owning
an interest in a mutual fund or an interest of no more than one percent (1%) of
the outstanding equity interest of a corporation whose stock is listed on a
national stock market.  If any of the
provisions of this Article VI would contravene or be invalid under any
applicable law, such contravention or invalidity shall not invalidate all of
the provisions of this Article VI, but rather this Article VI shall be
construed insofar as such law is concerned as not containing the particular
provision or provisions held to be invalid in said state and the rights and
obligations shall be construed and enforced accordingly.

 

ARTICLE VII

MISCELLANEOUS

7.1   Limitation of Rights.  Participation in this Plan does not give any
individual the right to be retained in the service of any entity.  Subject to the terms of any written
employment agreement executed by both parties thereto, both the WellPoint
Companies and each Participant reserve the right to terminate the Participant’s
employment at any time for any or no reason and with or without advance notice.

7.2   Claims Procedure.  If a Participant or his or her spouse
(“Claimant”) believes that he or she is entitled to a greater benefit under the
Plan, the Claimant may submit a signed, written application to the
Committee.  The Claimant will generally
be notified of the approval or denial of this application within 90 days of the
date that the Committee receives the application.

 

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If the claim is denied, the notification will state
specific reasons for the denial and the Claimant will have 60 days to file a
signed, written request for a review of the denial with the Committee.  This request will include the reasons for
requesting a review, facts supporting the request and any other relevant
comments.  The Committee, operating
pursuant to its discretionary authority to administer and interpret the Plan
and to determine eligibility for benefits under the terms of the Plan, will
generally make a final, written determination of the Claimant’s eligibility for
benefits within 60 days of receipt of the request for review.

After satisfaction of the claims procedures described
above, any remaining dispute shall be subject to arbitration.

7.3   Assignment.  To the fullest extent permitted by law, benefits under the Plan
and rights thereto are not subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by
creditors of the Participant or his spouse.

7.4   Inability to Locate Recipient.  If a benefit under the Plan remains unpaid
for two years from the date it becomes payable, solely by reason of the
inability of the Committee to locate a Participant or his or her spouse
entitled to the payment, the benefit shall be treated as forfeited.  Any amount forfeited in this manner shall be
restored without interest upon presentation of an authenticated written claim
by the person entitled to the benefit.

7.5   Amendment and Termination.  The Company may amend or terminate the Plan
at any time, provided that no amendment or termination may adversely affect a
Participant’s rights under the Plan with respect to benefits already accrued
based on Years of Benefit Service rendered before, and Final Average Pay
determined as of, the date of such amendment or termination, without the
Participant’s written consent.  Notwithstanding
the above, upon termination of the Plan, the Company may satisfy its
obligations to each Participant hereunder by making a current single sum cash
payment equal to the present value of the Participant’s then accrued benefit,
based on reasonable actuarial assumptions adopted by the Committee.  In addition, the Company may amend the Plan
to restrict a Participant’s right to change his or her election with respect to
the timing and form of benefit, if and to the extent that the Company deems
necessary to avoid the constructive receipt of benefits by Participants for tax
purposes before actual distribution of benefits.  In the event of a Change in Control (as defined in the WellPoint
Health Networks Inc. Officer Change-in-Control Plan (the “CIC Plan”) as in
effect from time to time), no amendment or termination of the Plan may
adversely affect the rights under Section 3.6 of the CIC Plan of any
Participant under the Plan immediately prior to such Change in Control
(including the applicable credits to which such Participant would be entitled
upon an eligible termination of employment under such CIC Plan), without the
Participant’s written consent.  Any
amendment to the Plan must be made in writing; no oral amendment will be
effective.

7.6   Applicable Law.  To the extent not governed by Federal law,
the laws of the State of California govern the Plan.  If any provision of the Plan is held to be invalid or
unenforceable, the remaining provisions of the Plan will continue to be fully
effective.

 

6

 

7.7   No Funding.  The Plan constitutes a mere promise by the Company to make
payments in the future in accordance with the terms of the Plan. A Participant
and his or her surviving spouse shall have the status of general unsecured
creditors of the Company.  Except to the
extent provided below in Section 7.8, Plan benefits will be paid from the
general assets of the Company and nothing in the Plan will be construed to give
a Participant or any other person rights to any specific assets of the
WellPoint Companies.  In all events, it
is the intention of the WellPoint Companies that the Plan be treated as
unfunded for tax purposes and for purposes of Title I of ERISA.

7.8   Trust.  Except to the extent the Committee determines otherwise before a
benefit is credited under the Plan, Plan benefits will be paid from the assets
of a grantor trust (the “Trust”) established by the Company to assist it in
meeting its obligations and, to the extent that such assets are not sufficient,
by the Company.  The Trust shall conform
to the terms of the Internal Revenue Service Model Trust as described in
Internal Revenue Service Procedure 92-64.

7.9   Plan Year.  The Plan Year of the Plan shall be the calendar year.

7.10 Predecessor Employer Benefits.  Each Participant shall identify the amount
and provide the Committee or its delegate with written materials from any
predecessor employer showing the calculation of benefits payable to the
Participant under the predecessor’s defined benefit pension plan, if benefits
from such plan are to be included in the Other Plan Offset Amount.

IN WITNESS WHEREOF,
WellPoint Health Networks Inc. has caused this Plan to be executed by its duly
authorized representative on the date indicated below.

WELLPOINT HEALTH
NETWORKS INC.

 

	
  By:

  	
   

  	
  /s/ Leonard D. Schaeffer

  	
   

  	
  October 24, 2003

  
	
   

  	
   

  	
   

  	
   

  	
  Date

  

 

 

 

7EXHIBIT 10.15

 

 

AMENDMENT

TO THE

WELLPOINT 401(k) RETIREMENT SAVINGS PLAN

 

 

(As Amended Through October 10, 2003)

 

The WellPoint
401(k) Retirement Savings Plan (the “Plan”), as amended through October 10,
2003, is hereby further amended, as follows:

 

1.               Effective January 1, 2003, Section 2.01
is amended to read as follows:

 

“2.01                     “Account”
means the value of all Accounts maintained on behalf of a Participant or
Beneficiary.  An Account may include a
Special Contributions Account, a Salary Deferral Contributions Account,
Matching Contributions Accounts, a Loan Account, Rollover Accounts, a Bonus
Contributions Account, a Profit Sharing Contributions Account, and a Post-Tax
Contributions Account.”

 

2.               Effective January 1, 2003, Section 3.01
is amended to read as follows:

 

“3.01                     Hour of
Service.  An Hour of Service is each
hour for which an Employee is paid or entitled to payment for the performance
of services for an Affiliated Company. 
For purposes of this section, Hour of Service does not include hours
which an Employee is paid or entitled to payment solely from workers’
compensation, unemployment compensation or disability insurance.”

 

3.               Effective June 30, 2003, Article III is
amended by the addition of the following new subsection 3.19:

 

“3.19                     Golden
West Health Plan, Inc.  Each
individual employed by Golden West Health Plan, Inc. (“Golden West”) on June
29, 2003 who becomes an Eligible Employee in connection with the acquisition by
the Company will receive credit under the Plan for all service with Golden West
completed prior to June 30, 2003, provided, however, that no such Eligible
Employee will be eligible for the Grandfathered Match implemented in 1997
regardless of his or her aggregated service.”

 

4.               Effective January 1, 2004, Section 5.02
is amended to read as follows:

 

“5.02                     Matching
Contributions.  A Participant’s
Matching Contributions will be credited to that Participant’s Matching
Contributions Account.  Unless provided
otherwise in a writing signed by an officer of the Company at the level of Senior
Vice President or above, and subject to the provisos in (c), (d), (e), (f), (g)
and (h) below, for payroll periods ending on or after January 1, 2004, the
schedule outlined in (a) below will be used to determine the amount of Matching
Contributions.”

 

(a)   General
Rule.  Except as provided in
paragraph (1) of subsection (e) below, effective January 1, 2004, Matching
Contributions will equal 100% (or a

 

 

lesser percentage determined by each
Participating Company before the payroll period) of the Salary Deferral
Contribution (not taking into account any Catch Up Contributions) that the
Participant directed during the Plan Year, while eligible for Matching
Contributions as provided in Section 5.02(h) of the Plan.  Notwithstanding the foregoing, Salary Deferral
Contributions in excess of 6% of a Participant’s Compensation (or such greater
or lesser percentage determined by each Participating Company before the
payroll period) will not be matched.  In
no event will a Participant’s Matching Contributions for a Plan Year exceed 6%
(or such greater or lesser percentage determined by each Participating Company
before the payroll period) of the 401(a)(17) Limit in effect for the Plan
Year.  To the extent administratively feasible,
Matching Contributions will be credited to a Participant’s Account on a payroll
period by payroll period basis.

 

(b)   Pre-January
1, 2004 Matching.  Except as
provided in (c) below, effective November 1, 1998 through December
31, 2003, Matching Contributions will equal 75% (or a greater or lesser
percentage determined by each Participating Company before the payroll period)
of the Salary Deferral Contribution (not taking into account any Catch Up
Contributions) that the Participant directed during the Plan Year, while
eligible for Matching Contributions as provided in Section 5.02(h) of the
Plan.  Notwithstanding the foregoing,
Salary Deferral Contributions in excess of 6% of a Participant’s Compensation
(or such greater or lesser percentage determined by each Participating Company
before the payroll period) will not be matched.  In no event will a Participant’s Matching Contributions for a
Plan Year exceed 6% (or such greater or lesser percentage determined by each
Participating Company before the payroll period) of the 401(a)(17) Limit in
effect for the Plan Year.  To the extent
administratively feasible, Matching Contributions will be credited to a
Participant’s Account on a payroll period by payroll period basis.

 

(c)   Grandfathered
Match.  Effective
November 1, 1998 through December 31, 2003, the provisions on this
subsection (c) will govern the calculation of the Matching Contribution of
a Participant with 10 or more years of Service at the beginning of the first
payroll period ending after January 1, 1997 other than a Participant covered
by a collective bargaining agreement as described in Section 5.02(d)
below.  For Participants with 10 or more
but less than 20 Years of Service at the beginning of the first payroll period
ending on or after January 1, 1997, Matching Contributions will equal 85% of
the Salary Deferral Contribution (not taking into account any Catch Up
Contributions) that the Participant directed during the Plan Year, while
eligible for Matching Contributions as provided in Section 5.02(g) of the Plan.  For Participants with 20 or more Years of
Service at the beginning of the first payroll period ending on or after January
1, 1997, Matching Contributions will equal 100% of the Salary Deferral
Contribution (not taking into account any Catch Up Contributions) that the Participant
directed during the Plan Year, while eligible for Matching Contributions as
provided in Section 5.02(h) of the Plan. 
Notwithstanding the foregoing, Salary Deferral Contributions in excess
of 6%

 

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of a Participant’s Compensation will not be
matched.  To the extent administratively
feasible, Matching Contributions will be credited to a Participant’s Account on
a payroll period by payroll period basis. 
In no event will any other provision of the Plan granting service credit
with a prior employer while such employer is not an Affiliated Company be taken
into account in determining eligibility for the Grandfathered Match described
in this subsection (c).

 

(d)   Matching
Contributions to be made in Cash. 
For payroll periods ending on and after November 17, 2002, a
Participant’s Matching Contributions will be made in cash and credited to that
Participant’s Matching Contributions Account. 
As of the first payroll period ending on or after January 1, 1998
through November payroll period that ended before November 17, 2002, all
Participants who were eligible to receive an allocation of Matching
Contributions as described in subsections (b) and (c) above received 33.33% of
their Matching Contribution in the form of units of a WellPoint Common Stock
Fund.

 

(e)   Collective
Bargaining Agreement.

 

(1)  
If the employment of an Eligible Employee is governed by the terms of a
collective bargaining agreement (“Bargaining Unit Employee”) between Blue Cross
of California and the Office and Professional Employees International Union
Local 29, AFL-CIO that became effective November 16, 1997 (“Local 29
Agreement”), the Company will cover that Bargaining Unit Employee in the Plan
as in effect on the effective date of the Local 29 Agreement, and as the Plan
may be changed to comply with applicable law. 
The Matching Contributions rate for such Bargaining Unit Employees who
are employed by Blue Cross of California on November 16, 1997
(“Eligible Local 29 Employees”) and who have one Year of Service, but less than
10 Years of Service will be 75% of the Participant’s Salary Deferral
Contribution for the Plan Year; for Eligible Local 29 Employees with 10 or more
Years of Service but less than 20, the rate will be 85% of the Participant’s
Salary Deferral Contribution for the Plan Year; for Eligible Local 29 Employees
with 20 Years of Service, the rate will be 100% of the Participant’s Salary
Deferral Contribution for the Plan Year. The rate of Matching Contributions for
all Eligible Local 29 Employees will be frozen at November 15, 2000
levels, based on each such Employee’s Years of Service at that date.  For Plan Years beginning on or after January
1, 2004, the Matching Contributions formula contained in subsection (b) above
shall continue to apply to Bargaining Unit Employees covered under the Local 29
Agreement who were not credited with One Year of Service on
November 16, 1997 or became an Eligible Employee after November 16,
1997.

 

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(2)  
If the employment of an Eligible Employee is governed by the terms of a
collective bargaining agreement between UNICARE and the International
Brotherhood of Teamsters of North America Local Union 614 (“Local 614
Agreement”) that became effective October 1, 2002, the Company will cover that
Bargaining Unit Employee in the Plan as in effect on the effective date of the
Local 614 Agreement and as the plan may be changed.  Effective for payroll periods commencing on or after February 1,
2004, the matching contribution allocation shall be governed by subsection (a).

 

(3)  
With respect to any other Bargaining Unit Employee, the level and the
form (e.g., cash) of Matching Contributions provided to such Employees will be
governed by the terms of the applicable bargaining agreement.

 

(f)   Leave.  Prior to October 1, 1997, this
subsection (f) read as follows: 
Notwithstanding anything to the contrary in this Plan, a Participant’s
eligibility to receive Matching Contributions will cease as of the first day of
the first full payroll period immediately following 8 consecutive work days
(excluding week-ends and holidays) during which the Participant was absent from
work due to a paid sick leave.  Such a
Participant will again become eligible to receive Matching Contributions, as
otherwise provided under this Section, as of the first day of the first full
payroll period immediately following the Participant’s return to work after
such a leave.  Subsection (e) is
eliminated from the Plan effective October 1, 1997.

 

(g)   No
Match.  Notwithstanding anything to
the contrary in this Plan, if WellPoint Practice Management Company, Inc.
(formerly known as WellPoint Dental Services, Inc.), The Professional Medical
Associates of Santa Barbara, Health Management Associates of San Luis Obispo,
Health Management Associates of Santa Barbara, and/or any successor to any of
them become a Participating Company, their Employees will not be eligible to
receive Matching Contributions under this Plan.

 

(h)   Match
Eligibility.  Effective for the
first payroll period ending on or after October 1, 1997, an Employee
is not eligible to receive a Matching Contribution under this Plan for
Compensation earned prior to the payroll period during which the Participant is
credited with a Year of Service measured from his or her date of hire (if a new
Employee) or date of rehire (following the Employee’s separation from service
with all Affiliated Companies for any reason). 
For this purpose, a reinstatement is not treated as a rehire.”

 

5.               Effective January 1, 2004, Section
5.03(c) is amended to read as follows:

 

“(c)                            A
nonelective contribution (“Profit Sharing Contribution”) in an amount
determined by the board of directors of a Participating Company, in its sole
discretion, which

 

4

 

amount will be allocated to the Accounts of a group of “Profit Sharing
Eligible Employees” on such Employees’ eligible compensation. A “Profit Sharing
Eligible Employee” refers to each Employee of a Participating Company employed
on both the last day of Plan Year preceding the effective date of the Profit
Sharing Contribution and the effective date that the Profit Sharing
Contribution is contributed to the Plan other than a Temporary Employee, a
non-resident alien who receives no earned income from sources within the United
States, an Employee who has not attained age 18, a participant in either the
Company's Management Bonus Plan or Executive Officer Annual Incentive Plan (or
successor plans) or an Employee whose terms of employment are governed by a
collective bargaining agreement except to the extent such agreement expressly
provides for an allocation of any Bonus and Profit Sharing Contribution.

 

6.               Effective January 1, 2004, the first
paragraph of Section 5.10 is amended to read as follows:

 

“Effective for Plan Years beginning on and after
January 1, 2000, a discretionary Bonus Contribution (as defined in
subsection (b) below) may be made to the Account of a Bonus Eligible Employee
(as defined in subsection (b) below) in an amount to be determined in the sole
discretion of the Company.  The
contribution may be made in a specified number of shares of the common stock of
the Company, a specified number of shares of common stock of the Company per
Bonus Eligible Employee or a flat dollar amount. The Bonus Contribution will be
allocated on a per capita basis to the Bonus Contributions Account established
for each Bonus Eligible Employee.”

 

7.               Effective January 1, 2004, Section
5.10(b)(1) and (2) are amended to read as follows:

 

“(1)                            A
“Bonus Contribution” refers to a qualified nonelective employer profit sharing
contribution made at the sole discretion of the Company that is subject to the
distribution restrictions applicable to Salary Deferral Contributions.  Bonus Contributions may be taken into
account to the extent necessary to satisfy the tests described in the Testing
Salary Deferral and Matching Contributions Appendix to this Plan.

 

(2)                                  A
“Bonus Eligible Employee” refers to each Employee of a Participating Company, other
than an Employee classified as an officer of a Participating Company, employed
on both the last day of Plan Year preceding the effective date of the Bonus
Contribution and the effective date that the Bonus Contribution is contributed
to the Plan other than a Temporary Employee, a non-resident alien who receives
no earned income from sources within the United States, an Employee who has not
attained age 18 or an Employee whose terms of employment are governed by a
collective bargaining agreement except to the extent such agreement expressly
provides for an allocation of any Bonus and Profit Sharing Contribution.  Notwithstanding the prior sentence, an
individual employed by RightCHOICE Managed Care, Inc. or any of its
subsidiaries (collectively, “RightCHOICE”) on February 28, 2002 will be
eligible to receive an allocation of the Bonus Contribution made as of such
date provided the individual (i) is not categorized as a temporary employee by
RightCHOICE and has not performed 1,000 Hours of Service during any consecutive
12-month period, (ii) is not a non-resident alien who receives no earned income
from sources within the United States, and (iii) is not less than 18 years of
age.  An individual employed by
RightCHOICE who would otherwise be eligible for an allocation of the Bonus
Contribution, but is on a leave of absence on February 28, 2002, will be
eligible for such an allocation if, and at such time as, he or she returns to
employment with RightCHOICE at the end of the leave.”

 

5

 

8.               Effective January 1, 2004, Article VIII
is amended to read as follows:

 

ARTICLE VIII

 

VESTING

 

A Participant
shall have a fully vested right to his or her Salary Deferral Contributions
Account, Rollover Account and Post-Tax Contributions Account.

 

8.01                           Vesting.  Notwithstanding anything to the contrary in
the Plan, each Participant shall have a fully vested right to his or her
Accounts at all times, except that a Participant with an Employment
Commencement Date of January 1, 2004 or later shall be subject to the vesting
schedule set forth below in Section 8.02.

 

8.02                           Vesting
Schedule.  A Participant who ceases
to be an Employee upon or after attainment of age 65, or by reason of death or
disability (as defined in the Company’s Long Term Disability Plan) shall have a
fully vested right to all his or her Accounts. 
If a Participant ceases to be an Employee for any other reason, then
such Participant shall have a fully vested right to a percentage of his or her
Matching Contributions, Bonus Contribution and Profit Sharing Contributions
Accounts determined on the basis of his or her Years of Service in accordance
with the following schedule:

 

	
  Year of
  Vesting Service

  	
   

  	
  Vested Interest

  	
   

  
	
  Less than 2

  	
   

  	
  0

  	
  %

  
	
  2, but less
  than 3

  	
   

  	
  25

  	
  %

  
	
  3, but less
  than 4

  	
   

  	
  50

  	
  %

  
	
  4, but less
  than 5

  	
   

  	
  75

  	
  %

  
	
  5 or more

  	
   

  	
  100

  	
  %

  

 

8.03                           Forfeitures.

 

(a)                                  Separation
from Service.  If a Participant
separates from service before such Participant is fully vested in his or her
Accounts, then the unvested portion of the Participant’s Accounts shall be
forfeited immediately upon separation from service.  If such a Participant is not vested in any part of his or her
Matching Contributions and Profit Sharing Contributions Accounts, such Accounts
will be deemed to have been distributed. 
Even if the Participant’s vested Matching Contributions and Profit
Sharing Contributions Accounts are not distributed, the unvested portion of the
Participant’s matching Contributions and Profit Sharing Contributions Accounts
will be forfeited upon expiration of five (5) consecutive One Year Periods of
Severance.  All amounts forfeited under
this Section shall be used to reduce the obligation to make contributions
pursuant to Article V and/or payment of Plan expenses.

 

(b)                                 Reemployment.  Should a Participant described in subsection
(a) above resume Employee status before incurring five (5) consecutive One

 

6

 

Year Periods
of Severance, then any amount forfeited under the vesting schedule shall be
restored to such Employee’s Matching Contributions and Profit Sharing
Contributions Accounts.  Subject to
Article V, the funds for effecting such restoration shall be drawn first from
the forfeitures for the Plan Year in which the Participant resumes Employee status,
and then, to the extent necessary, from a special contribution to the Plan,
which such special contribution shall not be subject to the limitations set
forth in Appendix II.”

 

9.               Effective June 30, 2003, Appendix VII is
amended by the addition of Golden West Health Plan, Inc. as a Participating
Company.

 

IN WITNESS
WHEREOF, WellPoint Health Networks Inc. caused this Amendment to be executed
this 13th day of November, 2003.

 

 

WELLPOINT HEALTH NETWORKS INC.

 

 

	
  By:

  	
  /s/ J. THOMAS VAN BERKEM

  	
   

  	
  Date:

  	
  11/13/03

  	
   

  

 

7

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