Document:

Amendment dated December 16, 2004 to Change in Control Retention Agmt- Stocker

 Exhibit 10.18(a) 
  
 

 
  
 December 16, 2004 
  
 Dr. Michael A. Stocker 
 Chief Executive Officer and President 
 WellChoice, Inc. 
 1056 Fifth Avenue Apartment 12C 
 New York, NY 10028 
  
 Re:     Change of Control Retention 
  
 Dear Dr. Stocker: 
  
 WellChoice, Inc. (“WellChoice”) and you have entered into a Change of Control Retention Agreement, dated as of December 18, 2002 (the
“Change of Control Agreement”) and the Board of Directors of WellChoice desires to amend the Change of Control Agreement (this “Amendment”). Accordingly, in consideration of the foregoing and the mutual agreements herein
contained, the Change of Control Agreement is amended as follows: 
  
 1. Amendment. Section 6(a) shall be deleted in its entirety and replaced by the following new Section 6(a): 
  
 “6. Parachute Tax Gross-Up. 
  
 (a) In the event that any payment or benefit received or to be received by you pursuant to the terms of this Agreement (the “Contract Payments”)
or in connection with or contingent upon a Change in Control of the Company pursuant to any other agreement, plan or arrangement with the Company or any of its subsidiaries (“Other Payments” and, together with the Contract Payments, the
“Payments”) would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), the Company shall pay you an additional amount (the “Gross-Up Payment”) such that the net amount of Payments
retained by you shall be equal to the amount you would have retained if none of such Payments were subject to the Excise Tax. In particular, the Company will timely pay to you an amount equal to the Excise Tax on the Payments, any interest,
penalties or additions to tax payable by you by reason of your filing income tax returns and making tax payments in a manner consistent with an opinion of tax counsel selected by the Company and reasonably acceptable to you (“Tax
Counsel”), and any federal, state and local income tax and Excise Tax upon the payments by the Company to you provided for by this Section 6. Notwithstanding the foregoing provisions of this Section 6(a), in 

 the event the amount of Payments exceeds the product (“Parachute Payment Limit”) of 2.99 and your applicable
“base amount” (as such term is defined for purposes of Section 4999 of the Code) by less than ten percent (10%) of your annual base salary, you shall be treated as having waived such rights with respect to Payments designated by you to the
extent required such that the aggregate amount of Payments subject to the Excise Tax is less than the Parachute Payment Limit. 
  
 2. References to and Effect on the Change of Control Agreement. On and after the date of this Amendment, each reference in the Change of Control
Agreement to “Agreement”, “hereunder”, “hereof”, “herein” and words of like import referring to the Change of Control Agreement shall mean and be a reference to the Change of Control Agreement as amended by
this Amendment. Except as specifically amended by this Amendment, all other provisions of the Change of Control Agreement shall remain in full force and effect. 
  

3. Governing Law. This Amendment shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York,
including Section 198 (1-a) of the New York Labor Law, applicable to contracts made and to be performed entirely within such state without regard to principles of conflicts of laws that would apply the law of any other jurisdiction. 
  
 4. Counterparts. This Amendment may be executed in several
counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. 
  
 [remainder of the page left intentionally blank] 
  

 2 

 If this letter sets forth our agreement on the subject matter hereof, kindly sign and return to the
Company the enclosed copy of this letter which will then constitute our agreement on this subject. 
  

			
	Sincerely,
	
	WELLCHOICE, INC.
		
	By:	 	 /s/ John S. McGillicuddy

	Name:	 	John S. McGillicuddy
	Title:	 	Chairman of the Board of Directors

  
 Agreed to this 17th day

 of December, 2004 
  

	
	
	/s/ Michael A. Stocker, M.D.
	Dr. Michael A. Stocker, M.D.

  

 3Amendment dated December 16, 2004 to Change in Control Retention Agmt- Remshard

 Exhibit 10.20(a) 
  
 

 
  
 December 16, 2004 
  
 John Remshard 
 Senior Vice President and Chief Financial Officer 
 WellChoice, Inc. 
 1046 Gypsy Hill Road 
 Lower Gwynedd, PA 19002 
  
 Re:     Change of Control Retention 
  
 Dear Mr. Remshard: 
  
 WellChoice, Inc. (“WellChoice”) and you have entered into a Change of Control Retention Agreement, dated as of
December 23, 2002 (the “Change of Control Agreement”) and the Board of Directors of WellChoice desires to amend the Change of Control Agreement (this “Amendment”). Accordingly, in consideration of the foregoing and the
mutual agreements herein contained, the Change of Control Agreement is amended as follows: 
  
 1. Amendment. Section 5(a) shall be deleted in its entirety and replaced by the following new Section 5(a): 
  
 “5. Parachute Tax Gross-Up. 
  
 (a) In the event that any payment or benefit received or to be received by you pursuant to the terms of this Agreement (the “Contract Payments”)
or in connection with or contingent upon a Change in Control of the Company pursuant to any other agreement, plan or arrangement with the Company or any of its subsidiaries (“Other Payments” and, together with the Contract Payments, the
“Payments”) would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), the Company shall pay you an additional amount (the “Gross-Up Payment”) such that the net amount of Payments
retained by you shall be equal to the amount you would have retained if none of such Payments were subject to the Excise Tax. In particular, the Company will timely pay to you an amount equal to the Excise Tax on the Payments, any interest,
penalties or additions to tax payable by you by reason of your filing income tax returns and making tax payments in a manner consistent with an opinion of tax counsel selected by the Company and reasonably acceptable to you (“Tax
Counsel”), and any federal, state and local income tax and Excise Tax upon the payments by the Company to you provided for by this Section 5. Notwithstanding the foregoing provisions of this Section 5(a), in 

 the event the amount of Payments exceeds the product (“Parachute Payment Limit”) of 2.99 and your applicable
“base amount” (as such term is defined for purposes of Section 4999 of the Code) by less than ten percent (10%) of your annual base salary, you shall be treated as having waived such rights with respect to Payments designated by you to the
extent required such that the aggregate amount of Payments subject to the Excise Tax is less than the Parachute Payment Limit.” 
  
 2. References to and Effect on the Change of Control Agreement. On and after the date of this Amendment, each reference in the Change of Control
Agreement to “Agreement”, “hereunder”, “hereof”, “herein” and words of like import referring to the Change of Control Agreement shall mean and be a reference to the Change of Control Agreement as amended by
this Amendment. Except as specifically amended by this Amendment, all other provisions of the Change of Control Agreement shall remain in full force and effect. 
  

3. Governing Law. This Amendment shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York,
including Section 198 (1-a) of the New York Labor Law, applicable to contracts made and to be performed entirely within such state without regard to principles of conflicts of laws that would apply the law of any other jurisdiction. 
  
 4. Counterparts. This Amendment may be executed in several
counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. 
  
 [remainder of the page left intentionally blank] 
  

 2 

 If this letter sets forth our agreement on the subject matter hereof, kindly sign and return to the
Company the enclosed copy of this letter which will then constitute our agreement on this subject. 
  
  

			
	Sincerely,
	
	WELLCHOICE, INC.
		
	By:	 	 /s/ Michael A. Stocker, M.D.

	Name:	 	Michael A. Stocker, M.D.
	Title:	 	Chief Executive Officer and President

  
 Agreed to this 17th day

 of December, 2004 
  

	
	
	/s/ John Remshard
	John Remshard

  

 3Amendment dated December 16, 2004 to Change in Control Retention Agmt- McCarthy

 Exhibit 10.27(a) 
  
 

 
  
 December 16, 2004 
  
 Gloria McCarthy 
 Executive Vice President and Chief Operating Officer 
 WellChoice, Inc. 
 3 Regina Court 
 Blauvelt, NY 10913 
  
 Re:     Change of Control Retention 
  
 Dear Ms. McCarthy: 
  
 WellChoice, Inc. (“WellChoice”) and you have entered into a Change of Control Retention Agreement, dated as of
April 30, 2003 (the “Change of Control Agreement”) and the Board of Directors of WellChoice desires to amend the Change of Control Agreement (this “Amendment”). Accordingly, in consideration of the foregoing and the mutual
agreements herein contained, the Change of Control Agreement is amended as follows: 
  
 1. Amendment. Section 5(a) shall be deleted in its entirety and replaced by the following new Section 5(a): 
  
 “5. Parachute Tax Gross-Up. 
  
 (a) In the event that any payment or benefit received or to be received by you pursuant to the terms of this Agreement (the “Contract Payments”)
or in connection with or contingent upon a Change in Control of the Company pursuant to any other agreement, plan or arrangement with the Company or any of its subsidiaries (“Other Payments” and, together with the Contract Payments, the
“Payments”) would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), the Company shall pay you an additional amount (the “Gross-Up Payment”) such that the net amount of Payments
retained by you shall be equal to the amount you would have retained if none of such Payments were subject to the Excise Tax. In particular, the Company will timely pay to you an amount equal to the Excise Tax on the Payments, any interest,
penalties or additions to tax payable by you by reason of your filing income tax returns and making tax payments in a manner consistent with an opinion of tax counsel selected by the Company and reasonably acceptable to you (“Tax
Counsel”), and any federal, state and local income tax and Excise Tax upon the payments by the Company to you provided for by this Section 5. Notwithstanding the foregoing provisions of this Section 5(a), in 

 the event the amount of Payments exceeds the product (“Parachute Payment Limit”) of 2.99 and your applicable
“base amount” (as such term is defined for purposes of Section 4999 of the Code) by less than ten percent (10%) of your annual base salary, you shall be treated as having waived such rights with respect to Payments designated by you to the
extent required such that the aggregate amount of Payments subject to the Excise Tax is less than the Parachute Payment Limit.” 
  
 2. References to and Effect on the Change of Control Agreement. On and after the date of this Amendment, each reference in the Change of Control
Agreement to “Agreement”, “hereunder”, “hereof”, “herein” and words of like import referring to the Change of Control Agreement shall mean and be a reference to the Change of Control Agreement as amended by
this Amendment. Except as specifically amended by this Amendment, all other provisions of the Change of Control Agreement shall remain in full force and effect. 
  

3. Governing Law. This Amendment shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York,
including Section 198 (1-a) of the New York Labor Law, applicable to contracts made and to be performed entirely within such state without regard to principles of conflicts of laws that would apply the law of any other jurisdiction. 
  
 4. Counterparts. This Amendment may be executed in several
counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. 
  
 [remainder of the page left intentionally blank] 
  

 2 

 If this letter sets forth our agreement on the subject matter hereof, kindly sign and return to the
Company the enclosed copy of this letter which will then constitute our agreement on this subject. 
  

			
	 Sincerely,

	
	 WELLCHOICE, INC.

		
	 By:
	 	 /s/ Michael A. Stocker, M.D.

	 Name:
	 	 Michael A. Stocker, M.D.

	 Title:
	 	 Chief Executive Officer and President

  
 Agreed to this 18th day

 of December, 2004 
  

	
	 /s/ Gloria McCarthy

	Gloria McCarthy

  

 3

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