Document:

Exhibit 10.02

 

FIRST AMENDMENT
TO FIVE YEAR CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO FIVE YEAR CREDIT AGREEMENT (this
“Amendment”), dated as of March 28, 2003, is entered into among WELLPOINT
HEALTH NETWORKS INC., a Delaware corporation (the “Borrower”),
the Lenders identified on the signature pages hereto (the “Lenders”), BANK OF
AMERICA, N.A., as administrative agent for the Lenders (in such
capacity, the “Administrative Agent”) and JPMORGAN CHASE BANK, as
syndication agent (in such capacity, the “Syndication Agent”).  Terms used but not otherwise defined herein
shall have the meanings provided in the Existing Credit Agreement described
below.

 

 

W I T N E S S E T H

 

WHEREAS, the
Borrower, the Lenders party thereto, the Administrative Agent and the Syndication
Agent entered into that certain Credit Agreement, dated as of March 30, 2001 (the
“Existing Credit Agreement”);

 

WHEREAS, the Borrower has requested, and
the Required Lenders (on behalf of the Lenders) have agreed, to amend the
Existing Credit Agreement as provided herein;

 

NOW, THEREFORE, in consideration of the
agreements hereinafter set forth, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto agree as follows:

 

PART 1

DEFINITIONS

 

SUBPART 1.1  Certain Definitions. 
Unless otherwise defined herein or the context otherwise requires, the
following terms used in this Amendment, including its preamble and recitals,
have the following meanings:

 

“Amended Credit
Agreement” means the Existing Credit Agreement as amended hereby.

 

“Amendment No. 1
Effective Date” is defined in Subpart 3.1.

 

SUBPART 1.2  Other Definitions. 
Unless otherwise defined herein or the context otherwise requires, terms
used in this Amendment, including its preamble and recitals, have the meanings
provided in the Existing Credit Agreement.

 

PART 2

AMENDMENTS TO EXISTING CREDIT
AGREEMENT

 

Effective on (and subject to the occurrence of) the
Amendment No. 1 Effective Date, the Existing Credit Agreement is hereby amended
in accordance with this Part 2.

 

 

SUBPART 2.1  Amendment
to Section 3.10.  Section 3.10
of the Existing Credit Agreement is hereby amended and restated in its entirely
as follows:

 

Section 3.10   ERISA.

 

No ERISA Event has occurred or is reasonably expected
to occur that, when taken together with all other such ERISA Events for which
liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect. 
The present value of all accumulated benefit obligations under each Plan
(based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by more than $100,000,000
the fair market value of the assets of such Plan, and the present value of all
accumulated benefit obligations of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the date of the most recent financial statements
reflecting such amounts, exceed by more than $100,000,000 the fair market value
of the assets of all such underfunded Plans.

 

 

PART 3

CONDITIONS TO EFFECTIVENESS

 

SUBPART 3.1  Amendment No. 1 Effective Date.  This Amendment shall be and become effective as of the date
hereof (the “Amendment No. 1 Effective Date”) when all of the conditions
set forth in this Part 3 shall have been satisfied, and thereafter this
Amendment shall be known, and may be referred to, as the “Amendment”.

 

SUBPART 3.2  Execution
of Counterparts of Amendment.  The
Administrative Agent shall have received counterparts of this Amendment, which
collectively shall have been duly executed on behalf of each of the Borrower,
the Lenders, the Administrative Agent and the Syndication Agent.

 

SUBPART 3.4  Other Items.  The
Administrative Agent shall have received such other documents, agreements or
information that may be reasonably requested by the Administrative Agent.

 

PART 4

MISCELLANEOUS

 

SUBPART 4.1  Representations and Warranties.  The Borrower hereby represents and warrants to the Administrative
Agent and the Lenders that, after giving effect to this Amendment, (a) no
Default or Event of Default exists under the Amended Credit Agreement and (b)
the representations and warranties set forth in Section 3 of the Existing
Credit Agreement are, subject to the limitations set forth therein, true and
correct in all material respects as of the date hereof (except for those which
expressly relate to an earlier date).

 

SUBPART 4.2  Reaffirmation of obligations.  The Borrower hereby ratifies the Existing Credit Agreement and
acknowledges and reaffirms (a) that it is bound by all terms of the Existing
Credit Agreement applicable to it and (b) that it is responsible for the
observance and full performance of its respective obligations under the
Existing Credit Agreement.

 

2

 

SUBPART 4.3  Cross-References. 
References in this Amendment to any Part or Subpart are, unless
otherwise specified, to such Part or Subpart of this Amendment.

 

SUBPART 4.4  Instrument Pursuant to Existing Credit Agreement.  This Amendment is executed pursuant to the
Existing Credit Agreement and shall (unless otherwise expressly indicated
therein) be construed, administered and applied in accordance with the terms
and provisions of the Existing Credit Agreement.

 

SUBPART 4.5  References
in Other Credit Documents.  At such
time as this Amendment shall become effective pursuant to the terms of Subpart
3.1, all references to the “Credit Agreement” in the Existing Credit
Agreement shall be deemed to refer to the Existing Credit Agreement as amended
by this Amendment.

 

SUBPART 4.6  Counterparts/Telecopy. 
This Amendment may be executed by the parties hereto in several counterparts,
each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement.  Delivery of executed counterparts of the Amendment by telecopy
shall be effective as an original and shall constitute a representation that an
original shall be delivered.

 

SUBPART 4.7  Governing Law. 
THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND
5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT EXCLUDING ALL OTHER CHOICE
OF LAW AND CONFLICTS OF LAW RULES).

 

SUBPART 4.8  Successors and Assigns. 
This Amendment shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.

 

SUBPART 4.9  General.  Except as
amended hereby, the Existing Credit Agreement and all other Credit Documents
shall continue in full force and effect.

 

[Remainder of Page Intentionally Left Blank]

 

3

 

IN WITNESS WHEREOF, the parties hereto have executed this First
Amendment to Five Year Credit Agreement as of the date first above written.

 

 

	
  BORROWER:

  	
   

  	
  WELLPOINT HEALTH NETWORKS INC.,

  a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  R.DAVID KRETSCHMER

  
	
   

  	
   

  	
  Name:

  	
  R.David
  Kretschmer

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
  ADMINISTRATIVE AGENT:

  	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  KEVIN L. AHART

  
	
   

  	
   

  	
  Name:

  	
  Kevin
  L. Ahart

  
	
   

  	
   

  	
  Title:

  	
  Assistant
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
  SYNDICATION AGENT:

  	
   

  	
  JPMORGAN CHASE BANK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  JAMES ELY III

  
	
   

  	
   

  	
  Name:

  	
  James
  S. Ely III

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ JOSEPH L. CORAH

  
	
   

  	
   

  	
  Name:

  	
  Joseph L. Corah

  
	
   

  	
   

  	
  Title:

  	
  Principal

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK
  ONE, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ CARRIE GOLDMAN
  SEGALL

  
	
   

  	
   

  	
  Name:

  	
  Carrie Goldman Segall

  
	
   

  	
   

  	
  Title:

  	
  Associate Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JPMORGAN CHASE BANK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  JAMES ELY III

  
	
   

  	
   

  	
  Name:

  	
  James
  Ely III

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CITICORP
  USA, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ PETER C. BICKFORD

  
	
   

  	
   

  	
  Name:

  	
  Peter C. Bickford

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  

 

4

 

	
   

  	
   

  	
  MELLON BANK, N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ MARSHA WICKER

  
	
   

  	
   

  	
  Name:

  	
  Marsha Wicker

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT SUISSE FIRST BOSTON,

  CAYMAN ISLANDS BRANCH

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ CHRISTOPHER LALLY

  
	
   

  	
   

  	
  Name:

  	
  Christopher Lally

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ JENNIFER PIEZA

  
	
   

  	
   

  	
  Name:

  	
  Jennifer Pieza

  
	
   

  	
   

  	
  Title:

  	
  Associate

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ REBECCA K. LEVINE

  
	
   

  	
   

  	
  Name:

  	
  Rebecca K. Levine

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUNTRUST BANK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ W. BROOKS HUBBARD

  
	
   

  	
   

  	
  Name:

  	
  W. Brooks Hubbard

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  UBS
  AG, CAYMAN ISLANDS BRANCH

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ WILFORD V. SAINT

  
	
   

  	
   

  	
  Name:

  	
  Wilford V. Saint

  
	
   

  	
   

  	
  Title:

  	
  Associate Director

  
	
   

  	
   

  	
   

  	
  Banking Products
  Services, US

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ THOMAS R. SALZANO

  
	
   

  	
   

  	
  Name:

  	
  Thomas R. Salzano

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
  Banking Products
  Services, US

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEUTSCHE BANK AG NEW YORK BRANCH

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ SCOTTYE LINDSEY

  
	
   

  	
   

  	
  Name:

  	
  Scottye Lindsey

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

5

 

	
   

  	
   

  	
  LEHMAN COMMERCIAL PAPER INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ SUZANNE FLYNN

  
	
   

  	
   

  	
  Name:

  	
  Suzanne Flynn

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ KIMBERLY SHELTON

  
	
   

  	
   

  	
  Name:

  	
  Kimberly Shelton

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FLEET NATIONAL BANK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ THOMAS F. FARLEY,
  JR.

  
	
   

  	
   

  	
  Name:

  	
  Thomas F. Farley, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Group Executive

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BNP
  PARIBAS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ PIERRE NICHOLAS
  ROGERS

  
	
   

  	
   

  	
  Name:

  	
  Pierre Nicholas Rogers

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ JAMES F. MCCANN

  
	
   

  	
   

  	
  Name:

  	
  James F. McCann

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUMITOMO MITSUI BANKING

  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ AL GALLUZZO

  
	
   

  	
   

  	
  Name:

  	
  Al Galluzzo

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SOCIETE
  GENERALE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ RICHARD BERNAL

  
	
   

  	
   

  	
  Name:

  	
  Richard Bernal

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT
  LYONNAIS NEW YORK BRANCH

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ CHARLES HEIDEIECK

  
	
   

  	
   

  	
  Name:

  	
  Charles Heideieck

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

6

 

	
   

  	
   

  	
  BANCA DI ROMA

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ LUCA BALESTRA

  
	
   

  	
   

  	
  Name:

  	
  Luca Balestra

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President
  and Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ RICHARD DIETZ

  
	
   

  	
   

  	
  Name:

  	
  Richard Dietz

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF TOKYO-MITSUBISHI LTD.,

  SEATTLE BRANCH

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ KOSUKE TAKAHASHI

  
	
   

  	
   

  	
  Name:

  	
  Kosuke Takahashi

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

7Exhibit
10.71

 

	
  

  

 

Russ Berrie and Company, Inc.

111 Bauer Drive, Oakland, NJ 07436

(201) 337-9000   (800) 631-8465

 

	
   

  	
  March 25, 2003

  

Mr.
Jeffrey A. Bialosky

32
Ada Place

Allendale,
NJ 07401

 

Dear
Jeff:

 

I am pleased to offer you
the position of Senior Vice President — Product Development (Plush) of Russ
Berrie and Company, Inc. effective April 4, 2003.  This position is one of a corporate officer of the Company.

 

Your employment with the
Company will include the following:

 

1.               COMPENSATION. 
Your base salary will be at an annual rate of $280,000.  For the year 2003, you will be
eligible for the Executive Incentive Program (“EIP”), pro-rated based on your
date of hire.  The EIP is equal to 50%
of your base salary.  Generally, the
full 50% bonus vests over a period of three years.  However, this 3-year vesting period can be waived and, in your
case, will be.  Payment of the bonus (or
a portion thereof) is predicated upon meeting both objective and subjective
performance standards established for the applicable year (2003).  The bonus is generally paid in February of
the following year (2004).

 

2.               GROUP HEALTH AND DISABILITY. 
After 90 days of continuous employment, you will be eligible to
participate in:

 

a.               Our contributory Group Health Plan.

b.              Our non-contributory Life Insurance Plan in
the amount one times your base salary.

c.               Our non-contributory Long Term Disability.

 

3.               DENTAL.  After twelve months of
employment, you will be eligible to participate in our contributory Dental
Insurance Plan.

 

4.               STOCK OPTIONS.  You
will receive 25,000 stock options as of the date of your hire.  These options will vest over a period of 5
years, with 5,000 options vesting each year, beginning on the first anniversary
of your hire date (such that the first 5,000 options will vest on your first
anniversary date in 2004; another 5,000 options will vest on your next
anniversary date in 2005; another 5,000 options will vest on your next
anniversary date in 2006; another 5,000 options will vest on your next
anniversary date in 2007, and; the final 5,000

 

1

 

options
will vest on your next anniversary date in 2008.  As each 5,000 option portion vests, it shall remain exercisable
for a period of 10 years from the date of its vesting (subject to earlier
termination under certain circumstances set forth under the option agreement
referenced below) and will be subject to the terms and provisions of an option
agreement, in form and substance satisfactory to the Company.  In order to exercise the vested options, you
must be an active employee of the Company on the date of exercise; provided,
however, that if your employment is terminated by the Company for reason other
than Cause (hereinafter defined), your outstanding, vested options may be exercised
within 30 days after such termination, or the remaining exercise period of the
option, whichever period is shorter. 
Unvested options will immediately be forfeited upon termination of
employment.  For purposes of this
paragraph, employment shall be considered to be terminated for Cause if your
employment is terminated as a result of (a) your willful or grossly negligent
failure to perform your employment duties, (b) your serious misconduct,
including, but not limited to, any unauthorized disclosure, or (c) any other
conduct intended to, or which the Company determines is reasonable likely to,
adversely affect the interests of the Company, including, but not limited to
commission of, or indictment or conviction for, any criminal act.

 

5.               RESTRICTED STOCK.  You
will receive $50,000 worth of restricted stock as of the date of your
hire.  The restriction on these shares
will lapse over a period of 3 years (one-third will lapse in each year
beginning on the first anniversary of your hire date, such that the restriction
on one-third of the shares will lapse on your first anniversary date in 2004;
the restriction on another one-third of the shares will lapse on your next
anniversary date in 2005, and; the restriction on the remaining one-third of
the shares will lapse on your next anniversary date in 2006).  In order for the restriction(s) on
these shares to lapse, you must be an active employee of the Company on the
date of such lapse.  In the event that
your employment is terminated by the Company or by you prior to the lapse of
all or a part of the restrictions, those shares still then subject to
restriction(s) shall immediately be forfeited upon termination of employment.

 

6.               401(k).  After six months of employment,
you will be eligible to participate in the Company’s 401(k) plan based on its
current provisions.  The Company’s
contribution to your 401(k) account fully vests over a period of four years of
employment.

 

7.               VACATION.  You will be eligible for three
weeks vacation.

 

8.               HOLIDAY/SICK. You will be eligible for paid holidays and
sick time in accordance with Company policy.

 

9.               COMPANY CAR.  You will receive an allowance of up to
$31,000 (in accordance with Company policy) to purchase an automobile in the

 

2

 

 

Company’s name.  This allowance is paid every three years
toward an automobile.  Certain expenses,
such as gasoline, repairs and insurance, will be provided by the Company.

 

10.         SEVERANCE.  You will be provided with the Company’s
severance policy for domestic Vice Presidents.

 

11.         CHANGE IN CONTROL
SEVERANCE PLAN.  You will be
recommended to the Company’s Board of Directors (or appropriate committee
thereof) for inclusion in the Company’s Change in Control Severance Plan.

 

12.         TUITION REIMBURSEMENT.  Under
the Company’s policy, after one year of employment, you will be eligible to
participate in the Company’s tuition reimbursement program.

 

The
Company reserves the right to change or modify these programs.  In addition, employment with the Company is
considered “at-will” and does not represent a specific guarantee.

 

Jeff,
I want to welcome you back to Russ Berrie and Company, Inc. and wish you much
success in your new position.

 

 

	
   

  	
   

  	
   

  	
  Very truly yours,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /S/   EVA J. GOLDENBERG

  	
   

  
	
   

  	
   

  	
   

  	
  Eva J. Goldenberg

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Vice President - Human 

  Resources

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /S/ JEFF BIALOSKY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jeff Bialosky

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  cc:  A. Berrie, J. Toolan, C.
  Cooke

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]