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Exhibit 4.12  

EXECUTION COPY  

364-DAY CREDIT AGREEMENT  

dated as of 

July 2, 2002  

among 

ANTHEM, INC.  

The Lenders Party Hereto  

and 

JPMORGAN CHASE BANK,
  as Administrative Agent 

BANK OF AMERICA, N.A.,
  as Co-Syndication Agent 

WACHOVIA BANK, N.A.,
  as Co-Syndication Agent 

FLEET NATIONAL BANK,
  as Documentation Agent 

J.P. MORGAN SECURITIES INC.,
  as Lead Arranger and Sole Bookrunner 

 
 

TABLE OF CONTENTS    
  

 
 

ARTICLE I
  
    Definitions    
  

	 
	 	 
	 	Page

	SECTION 1.01.	 	Defined Terms	 	1
	SECTION 1.02.	 	Classification of Loans and Borrowings	 	13
	SECTION 1.03.	 	Terms Generally	 	13
	SECTION 1.04.	 	Accounting Terms; GAAP	 	14

 
 

ARTICLE II
  
    The Credits    
  

	 
	 	 
	 	Page

	SECTION 2.01.	 	Commitments	 	14
	SECTION 2.02.	 	Loans and Borrowings	 	14
	SECTION 2.03.	 	Requests for Revolving Borrowings	 	15
	SECTION 2.04.	 	Competitive Bid Procedure	 	15
	SECTION 2.05.	 	Funding of Borrowings	 	17
	SECTION 2.06.	 	Interest Elections	 	17
	SECTION 2.07.	 	Termination and Reduction of Commitments; Extension of Maturity Date	 	18
	SECTION 2.08.	 	Repayment of Loans; Evidence of Debt	 	19
	SECTION 2.09.	 	Prepayment of Loans	 	19
	SECTION 2.10.	 	Fees	 	20
	SECTION 2.11.	 	Interest	 	20
	SECTION 2.12.	 	Alternate Rate of Interest	 	21
	SECTION 2.13.	 	Increased Costs	 	22
	SECTION 2.14.	 	Break Funding Payments	 	22
	SECTION 2.15.	 	Taxes	 	23
	SECTION 2.16.	 	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	 	24
	SECTION 2.17.	 	Mitigation Obligations; Replacement of Lenders	 	25

 
 

ARTICLE III
  
    Representations and Warranties    
  

	 
	 	 
	 	Page

	SECTION 3.01.	 	Corporate Existence and Standing	 	26
	SECTION 3.02.	 	Authorization and Validity	 	26
	SECTION 3.03.	 	Compliance with Laws and Contracts	 	26
	SECTION 3.04.	 	Governmental Consents	 	27
	SECTION 3.05.	 	Financial Statements	 	27
	SECTION 3.06.	 	Material Adverse Change	 	27
	SECTION 3.07.	 	Properties	 	27
	SECTION 3.08.	 	Litigation and Environmental Matters	 	27
	SECTION 3.09.	 	Taxes	 	27
	SECTION 3.10.	 	Subsidiaries	 	28
	SECTION 3.11.	 	ERISA	 	28
	SECTION 3.12.	 	Defaults	 	28
	SECTION 3.13.	 	Federal Reserve Regulations	 	28
	SECTION 3.14.	 	Investment Company	 	29
	SECTION 3.15.	 	Insurance Licenses	 	29
	SECTION 3.16.	 	Material Agreements	 	29
	SECTION 3.17.	 	Insurance	 	29
	SECTION 3.18.	 	Subordination Provisions	 	29
	SECTION 3.19.	 	Disclosure	 	29

 
 

ARTICLE IV
  
    Conditions    
  

	 
	 	 
	 	Page

	SECTION 4.01.	 	Effective Date	 	29
	SECTION 4.02.	 	[Intentionally Omitted]	 	30
	SECTION 4.03.	 	Each Borrowing	 	30

 
 

ARTICLE V
  
    Covenants    
  

	 
	 	 
	 	Page

	SECTION 5.01.	 	Financial Reporting	 	31
	SECTION 5.02.	 	Use of Proceeds	 	32
	SECTION 5.03.	 	Notice of Material Events	 	32
	SECTION 5.04.	 	Conduct of Business	 	32
	SECTION 5.05.	 	Taxes	 	33
	SECTION 5.06.	 	Insurance	 	33
	SECTION 5.07.	 	Compliance with Laws	 	33
	SECTION 5.08.	 	Maintenance of Properties	 	33
	SECTION 5.09.	 	Inspection	 	33
	SECTION 5.10	 	Coverage Ratio	 	33
	SECTION 5.11.	 	Fundamental Changes	 	33
	SECTION 5.12.	 	Investments and Purchases	 	34
	SECTION 5.13.	 	Liens	 	34
	SECTION 5.14.	 	Affiliates	 	34
	SECTION 5.15.	 	Financial Covenants	 	34
	SECTION 5.16.	 	Change in Corporate Structure; Fiscal Year	 	34
	SECTION 5.17.	 	Inconsistent Agreements	 	34
	SECTION 5.18.	 	ERISA Compliance	 	35
	SECTION 5.19.	 	Subsidiary Indebtedness	 	35

 
 

ARTICLE VI
  
    Events of Default    
  

 
 

ARTICLE VII
  
    The Administrative Agent    
  

 
 

ARTICLE VIII
  
    Miscellaneous    
  

	 
	 	 
	 	Page

	SECTION 8.01	 	Notices	 	39
	SECTION 8.02	 	Waivers; Amendments	 	40
	SECTION 8.03	 	Expenses; Indemnity; Damage Waiver	 	40
	SECTION 8.04	 	Successors and Assigns	 	41
	SECTION 8.05	 	Survival	 	44
	SECTION 8.06	 	Counterparts; Integration; Effectiveness	 	44
	SECTION 8.07	 	Severability	 	44
	SECTION 8.08	 	Right of Setoff	 	44
	SECTION 8.09	 	Governing Law; Jurisdiction; Consent to Service of Process	 	45
	SECTION 8.10	 	WAIVER OF JURY TRIAL	 	45
	SECTION 8.11	 	Headings	 	45
	SECTION 8.12	 	Confidentiality	 	45
	SECTION 8.13	 	Interest Rate Limitation	 	46
	 	 	 	 	 
	SCHEDULES:	 	 
	

Schedule 2.01	
 	

Commitments	
 	

 
	Schedule 3.08	 	Disclosed Matters	 	 
	Schedule 3.10	 	Subsidiaries	 	 
	Schedule 3.11	 	ERISA	 	 
	Schedule 3.15	 	Licenses	 	 
	Schedule 3.16	 	Restrictions on Dividends	 	 
	 	 	 	 	 
	EXHIBITS:	 	 	 	 
	

Exhibit A	
 	

Form of Assignment and Acceptance	
 	

 
	Exhibit B	 	Form of Opinion of Baker & Daniels, Counsel for the Borrower	 	 
	Exhibit C	 	Form of Opinion of David R. Frick, Esq., Executive Vice President and

    Chief Legal and Administrative Officer of Anthem, Inc.	 	 

        364-DAY
CREDIT AGREEMENT dated as of July 2, 2002, among ANTHEM, INC.; the LENDERS party hereto; JPMORGAN CHASE BANK, as Administrative Agent; BANK OF AMERICA,
N.A. and WACHOVIA BANK, N.A., as Co-Syndication Agents; and FLEET NATIONAL BANK, as Documentation Agent. 

        The
Borrower (such term, and each other capitalized term used and not otherwise defined herein having the meaning assigned to it in Article I) has requested the Lenders to extend
credit to enable it to borrow on a revolving credit basis on and after the date hereof and at any time and from time to time prior to the Termination Date a principal amount not in excess of
$600,000,000 at any time outstanding. The Borrower has also requested the Lenders to establish procedures pursuant to which the Borrower may invite the Lenders to bid on an uncommitted basis on
short-term borrowings by the Borrower maturing on or prior to the Termination Date. The proceeds of borrowings hereunder are to be used for general corporate purposes, including stock
repurchases, the payment of maturing commercial paper and the funding of working capital requirements. 

        The
Lenders are willing to extend such credit to the Borrower on the terms and subject to the conditions herein set forth. 

        Accordingly,
the parties hereto agree as follows: 

 
 

ARTICLE I
  
    Definitions    
  

        SECTION
1.01.    Defined Terms.    As used in this Agreement, the following terms have the meanings specified below: 

        "ABR", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate. 

        "Administrative Agent" means JPMorgan Chase Bank, in its capacity as administrative agent for the Lenders hereunder. 

        "Administrative Questionnaire" means an Administrative Questionnaire in a form supplied by the Administrative Agent. 

        "Affiliate" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person specified. 

        "AICI" means Anthem Insurance Companies, Inc., an Indiana stock insurance company and a wholly owned subsidiary of AI. 

        "Alternate Base Rate" means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day and
(b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds Effective
Rate shall be effective from and including the effective date of such change in the Prime Rate or the Federal Funds Effective Rate, respectively. 

        "Annual Statement" of AICI or an Insurance Subsidiary means the annual statutory financial statements of AICI or such Insurance Subsidiary
required to be filed with the insurance commissioner (or similar authority) of its jurisdiction of incorporation, which statement shall be in the form required by AICI's or such Insurance Subsidiary's
jurisdiction of incorporation or, if no specific form is so required, in the form of financial statements permitted by such insurance commissioner (or such similar authority) to be used for filing
annual statutory financial statements and shall contain the type of information permitted by such insurance commissioner (or such similar authority) to be disclosed therein, together with all exhibits
or schedules filed therewith. 

        "AI" means Anthem, Inc., an Indiana corporation. 

 

        "Applicable Percentage" means, with respect to any Lender, the percentage of the total Commitments represented by such Lender's
Commitment. If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to any assignments. 

        "Applicable Rate" means, for any day, with respect to any Eurodollar Revolving Loan, or with respect to the facility fees payable
hereunder, as the case may be, the applicable rate per annum set forth below under the caption "Eurodollar Spread" or "Facility Fee Rate", as the case may be, based upon the ratings by Moody's and
S&P, respectively, applicable on such date to the Index Debt: 

	Index Debt Ratings

S&P/Moody's
	 	Eurodollar Spread

(in bps)
	 	Facility Fee Rate

(in bps)

	Category 1: 3 A+/A1	 	23.5	 	6.5
	Category 2: A/A2	 	30.5	 	7.0
	Category 3: A-/A3	 	41.5	 	8.5
	Category 4: BBB+/Baa1	 	52.5	 	10.0
	Category 5: BBB/Baa2	 	62.0	 	13.0
	Category 6: <BBB/Baa2	 	82.5	 	17.5

        For purposes of the foregoing, (i) if either Moody's or S&P shall not have in effect a rating for the Index Debt (other than by reason of the circumstances referred to in the last
sentence of this definition), then such rating agency shall be deemed to have established a rating in Category 6; provided, that until
July 31, 2002, if Moody's shall not yet have in effect an Index Debt rating for the Borrower, the Applicable Rate shall be determined solely by reference to the S&P rating; (ii) if the
ratings established or deemed to have been established by Moody's and S&P for the Index Debt shall fall within different Categories, the Applicable Rate shall be based on the higher of the two ratings
unless one of the ratings is two or more Categories lower than the other, in which case the Applicable Rate shall be determined by reference to the Category next below that of the higher of the two
ratings; and
(iii) if the ratings established or deemed to have been established by Moody's and S&P for the Index Debt shall be changed (other than as a result of a change in the rating system of Moody's or
S&P), such change shall be effective as of the date on which it is first announced by the applicable rating agency. Each change in the Applicable Rate shall apply during the period commencing on the
effective date of such change and ending on the date immediately preceding the effective date of the next such change. If the rating system of Moody's or S&P shall change, or if either such rating
agency shall cease to be in the business of rating corporate debt obligations, the Borrower and the Lenders shall negotiate in good faith to amend this definition to reflect such changed rating system
or the unavailability of ratings from such rating agency and, pending the effectiveness of any such amendment, the Applicable Rate shall be determined by reference to the rating most recently in
effect prior to such change or cessation. At all times when the ratings of the Index Debt are private ratings, the Borrower will arrange for such ratings to be continually monitored and updated by
Moody's and S&P as if such ratings were published ratings. 

        "Approved Fund" means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or
(c) an entity or an Affiliate of an entity that administers or manages a Lender. 

        "Assignment and Acceptance" means an assignment and acceptance entered into by a Lender and an assignee (with the consent of any party
whose consent is required by Section 8.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by the Administrative Agent. 

        "Authorized Officer" of a Person means any of the president, chief financial officer or treasurer of such Person, acting singly. 

2

 

        "Availability Period" means with respect to the Borrower, the period from and including the Effective Date for the Borrower to but
excluding the earlier of the Termination Date and the date of termination of the Commitments. 

        "Board" means the Board of Governors of the Federal Reserve System of the United States of America. 

        "Borrower" means AI. 

        "Borrowing" means (a) Revolving Loans of the same Type, made, converted or continued on the same date and, in the case of
Eurodollar Loans, as to which a single Interest Period is in effect, or (b) a
Competitive Loan or group of Competitive Loans of the same Type made on the same date and as to which a single Interest Period is in effect. 

        "Borrowing Request" means a request by the Borrower for a Revolving Borrowing in accordance with Section 2.03. 

        "Business Day" means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or
required by law to remain closed; provided that, when used in connection with a Eurodollar Loan, the term "Business
Day" shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market. 

        "Capitalized Lease" of a Person means any lease of Property by such Person as lessee which would be capitalized on a balance sheet of such
Person prepared in accordance with GAAP. 

        "Capitalized Lease Obligations" of a Person means the amount of the obligations of such Person under Capitalized Leases which would be
shown as a liability on a balance sheet of such Person prepared in accordance with GAAP. 

        "Change in Control" means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or
group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof), of equity interests representing
more than 25% of either the aggregate ordinary voting power or the aggregate equity value represented by the issued and outstanding equity interests in AI; (b) the occupation of a majority of
the seats (other than vacant seats) on the board of directors of AI by Persons who were not (i) directors of AI on the date of this Agreement, (ii) nominated by the board of directors of
AI, or (iii) appointed by directors referred to in the preceding clauses (i) and (ii); (c) the ownership by any Person other than AI or a wholly owned subsidiary of AI of any
equity interest in AICI; or (d) the occurrence of a "Change of Control" (or other similar event or condition, however denominated) under any other Indebtedness of the Borrower or any Subsidiary
for borrowed money. 

        "Change in Law" means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in
any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender (or, for purposes of
Section 2.13(b), by any lending office of such Lender or by such Lender's holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement. 

        "Class", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are
Revolving Loans or Competitive Loans. 

        "Code" means the Internal Revenue Code of 1986, as amended from time to time. 

        "Commitment" means, with respect to each Lender, the commitment of such Lender to make Revolving Loans hereunder, expressed as an amount
representing the maximum permitted amount of such Lender's Revolving Credit Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.07 and
(b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 8.04. The initial amount of each Lender's Commitment is set forth on
Schedule 2.01, or in the Assignment and Acceptance pursuant to which 

3

 

such Lender shall have assumed its Commitment, as applicable. The initial aggregate amount of the Lenders' Commitments is $600,000,000. 

        "Competitive Bid" means an offer by a Lender to make a Competitive Loan in accordance with Section 2.04. 

        "Competitive Bid Rate" means, with respect to any Competitive Bid, the Margin or the Fixed Rate, as applicable, offered by the Lender
making such Competitive Bid. 

        "Competitive Bid Request" means a request by the Borrower for Competitive Bids in accordance with Section 2.04. 

        "Competitive Loan" means a Loan made pursuant to Section 2.04. 

        "Condemnation" has the meaning set forth in Article VI. 

        "Contingent Obligation" of a Person means any obligation arising under any agreement, undertaking or arrangement by which (a) such
Person assumes, guarantees, endorses, contingently agrees to purchase or provide funds for the payment of, or otherwise becomes or is contingently liable upon, the financial obligation or liability of
any other Person, or (b) agrees to maintain the net worth or working capital or other financial condition of any other Person, or (c) otherwise assures any creditor of such other Person
against loss, including, without limitation, in each case, any comfort letter, operating agreement or take-or-pay contract or application for a letter of credit, but excluding
in each case obligations incurred by the Borrower or any Insurance Subsidiary under insurance policies or contracts entered into in the ordinary course of business. 

        "Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and
"Controlled" have meanings correlative thereto. 

        "Controlled Group" means all members of a controlled group of corporations and all trades or businesses (whether or not incorporated)
under common control which, together with the Borrower and/or one or more of the Subsidiaries, are treated as a single employer under Section 414 of the Code. 

        "Default" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless
cured or waived, become an Event of Default. 

        "Disclosed Matters" means the actions, suits and proceedings and the environmental matters disclosed in Schedule 3.08. 

        "Dividendable Cash" means the sum of (i) the amount that AICI is permitted by applicable laws, rules, regulations and orders of
Governmental Authorities to pay to AI in cash as ordinary dividends, based upon its net income and surplus (determined in accordance with SAP) for the fiscal year preceding the date as of which
Dividendable Cash is to be determined, plus (ii) the aggregate amount that all direct and indirect subsidiaries of Trigon (or any Subsidiary into which Trigon is merged) that are engaged in an
insurance business are permitted by applicable laws, rules, regulations and orders of Governmental Authorities to pay to in cash as ordinary dividends, based upon their respective net income and
surplus (determined in accordance with SAP) for the fiscal year preceding the date as of which Dividendable Cash is to be determined, plus (iii) the aggregate amount that all other direct or
indirect subsidiaries of Trigon (or any Subsidiary into which Trigon is merged) are permitted by applicable laws, rules, regulations and orders of Governmental Authorities to pay as cash dividends,
based upon their respective financial positions as at the last day of the fiscal year preceding the date as of which Dividendable Cash is to be determined; in each case, determined without regard to
whether any portion of the total amount permitted to be paid has in fact been paid as cash dividends. 

        "dollars" or "$" refers to lawful money of the United States of America. 

        "Effective Date" means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with
Section 8.02). 

4

 

        "Environmental Laws" means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, release or
threatened release of any Hazardous Material or to health and safety matters. 

        "Environmental Liability" means any liability, contingent or otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of
any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the
foregoing. 

        "ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time. 

        "Eurodollar", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are
bearing interest at a rate determined by reference to the LIBO Rate. 

        "Event of Default" has the meaning assigned to such term in Article VI. 

        "Excluded Taxes" means, with respect to the Administrative Agent, any Lender, or any other recipient of any payment to be made by or on
account of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of America, or by the jurisdiction under the
laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (b) any branch profits
taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction described in clause (a) above and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Borrower under Section 2.17(b)), any withholding tax imposed by the United States of America that (i) is in effect and would apply to amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office), except to the extent that such Foreign Lender (or its assignor,
if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the Borrower with respect to any withholding tax pursuant to
Section 2.15(a), or (ii) is attributable to such Foreign Lender's failure to comply with Section 2.15(e). 

        "Existing Credit Agreement" means the 364-Day Credit Agreement dated as of November 5, 2001 among AICI, Anthem, the
lenders party thereto and JPMorgan Chase Bank, as administrative agent, Bank of America, N.A., as syndication agent and Fleet National Bank, as documentation agent. 

        "Federal Funds Effective Rate" means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100
of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the
Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it. 

        "Financial Officer" of a Person means the chief financial officer, principal accounting officer, treasurer or controller of such Person. 

        "Financial Statements" has the meaning set forth in Section 3.05. 

        "Fiscal Quarter" means one of the four three-month accounting periods comprising a Fiscal Year. 

        "Fiscal Year" means the twelve-month accounting period ending December 31 of each year. 

5

 

        "Fixed Rate" means, with respect to any Competitive Loan (other than a Eurodollar Competitive Loan), the fixed rate of interest per annum
specified by the Lender making such Competitive Loan in its related Competitive Bid. 

        "Fixed Rate Loan" means a Competitive Loan bearing interest at a Fixed Rate. 

        "Foreign Lender" means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is located. For
purposes of this definition, the United States of America, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 

        "Fund" means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing
in commercial loans and similar extensions of credit in the ordinary course of its business. 

        "GAAP" means generally accepted accounting principles in the United States of America. 

        "Governmental Authority" means any government (foreign or domestic) or any state or other political subdivision thereof or any
governmental body, agency, authority, department or commission (including any board of insurance, insurance department or insurance commission and any taxing authority or political subdivision) or any
instrumentality or officer thereof (including any court or tribunal) exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any
corporation, partnership or other entity directly or indirectly owned or controlled by or subject to the control of any of the foregoing. 

        "Hazardous Materials" means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other
pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental Law. 

        "Indebtedness" of a Person means such Person's (a) obligations for borrowed money, (b) obligations representing the deferred
purchase price of Property or services (other than accounts payable arising in the ordinary course of such Person's business payable on terms customary in the trade), (c) obligations, whether
or not assumed, secured by Liens or payable out of the proceeds or production from Property now or hereafter owned or acquired by such Person, (d) obligations which are evidenced by notes,
acceptances, or similar instruments, (e) Capitalized Lease Obligations, (f) Rate Hedging Obligations, (g) Contingent Obligations, (h) obligations for which such Person is
obligated pursuant to or in respect of a letter of credit and (i) repurchase obligations or liabilities of such Person with respect to accounts or notes receivable sold by such Person. 

        "Indemnified Taxes" means Taxes other than Excluded Taxes. 

        "Index Debt" means (a) AI's senior, unsecured indebtedness for borrowed money under bank credit facilities that is not guaranteed
by any other Person or subject to any other credit enhancement or (b) if neither Moody's nor S&P shall have in effect a rating for indebtedness of the type referred to in clause (a), any
other senior, unsecured, long-term indebtedness for borrowed money of AI that is not guaranteed by any other Person or subject to any other credit enhancement. 

        "Indiana Insurance Law" means the Indiana Insurance Law (Title 27 of the Indiana Code), as the same may be amended or supplemented from
time to time. 

        "Insurance Subsidiary" means any Subsidiary which is engaged in the insurance business. 

        "Interest Election Request" means a request by the Borrower to convert or continue a Revolving Borrowing in accordance with
Section 2.06. 

        "Interest Expense" means, for any period, the gross interest expense of the Borrower for such period, determined in accordance with GAAP. 

        "Interest Payment Date" means (a) with respect to any ABR Loan, the last day of each March, June, September and December,
(b) with respect to any Eurodollar Loan, the last day of the Interest 

6

 

Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months' duration, each day prior to the last day
of such Interest Period that occurs at intervals of three months' duration after the first day of such Interest Period and (c) with respect to any Fixed Rate Loan, the last day of the Interest
Period applicable to the Borrowing of which such Loan is a part and, in the case of a Fixed Rate Borrowing with an Interest Period of more than 90 days' duration (unless otherwise specified in
the applicable Competitive Bid Request), each day prior to the last day of such Interest Period that occurs at intervals of 90 days' duration after the first day of such Interest Period, and
any other dates that are specified in the applicable Competitive Bid Request as Interest Payment Dates with respect to such Borrowing. 

        "Interest Period" means (a) with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and
ending on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter, as the Borrower may elect, and (b) with respect to any Fixed Rate Borrowing,
the period (which shall not be less than 7 days or more than 360 days) commencing on the date of such Borrowing and ending on the date specified in the applicable Competitive Bid
Request; provided, that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless, in the case of a Eurodollar Borrowing only, such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end
on the next preceding Business Day and (ii) any Interest Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is
no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the
date of a Borrowing initially shall be the date on which such Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall be the effective date of the most recent conversion or
continuation of such Borrowing. 

        "Investment" of a Person means any loan, advance (other than commission, travel and similar advances to officers and employees made in the
ordinary course of business), extension of credit (other than accounts receivable arising in the ordinary course of business on terms customary in the trade), deposit account or contribution of
capital by such Person to any other Person or any investment in, or purchase or other acquisition of, the stock, partnership interests, notes, debentures or other securities of any other Person made
by such Person. 

        "Lenders" means the Persons listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an
Assignment and Acceptance, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Acceptance. 

        "LIBO Rate" means, with respect to any Eurodollar Borrowing for any Interest Period, the rate appearing on Page 3750 of the Telerate
Service (or on any successor or substitute page of such Service, or any successor to or substitute for such Service, providing rate quotations comparable to those currently provided on such page of
such Service, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period.
In the event that such rate is not available at such time for any reason, then the "LIBO Rate" with respect to such Eurodollar Borrowing for such
Interest Period shall be the rate (rounded upwards, if necessary, to the next 1/16 of 1%) at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period
are offered by the principal London office of the Administrative Agent in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two Business Days
prior to the commencement of such Interest Period. 

        "License" means any license, certificate of authority, permit or other authorization which is required to be obtained from any
Governmental Authority in connection with the operation, ownership or transaction of insurance business. 

7

 

        "Lien" means any security interest, lien (statutory or other), mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, the interest of a vendor or lessor under
any conditional sale, Capitalized Lease or other title retention agreement). 

        "Loans" means the loans made by the Lenders to the Borrower under this Agreement. 

        "Margin" means, with respect to any Competitive Loan bearing interest at a rate based on the LIBO Rate, the marginal rate of interest, if
any, to be added to or subtracted from the LIBO Rate to determine the rate of interest applicable to such Loan, as specified by the Lender making such Loan in its related Competitive Bid. 

        "Margin Stock" has the meaning assigned to such term under Regulation U of the Board. 

        "Material Adverse Effect" means a material adverse effect on (a) the business, Property, condition (financial or otherwise) or
operations of AI and its subsidiaries, taken as a whole, (b) the ability of the Borrower to perform any of the Obligations or (c) the rights of or remedies available to the Lenders under
this Agreement. 

        "Material Insurance Subsidiary" means any Insurance Subsidiary which, together with its subsidiaries, has a net worth in excess of 10% of
the consolidated Net Worth of AI and the Subsidiaries taken as a whole. 

        "Material Subsidiary" means, at any time, any Subsidiary which, together with its subsidiaries, has either assets or revenues from
operations that exceed 10% of the combined assets or combined revenues from operations, respectively, of AI and its subsidiaries taken as a whole. 

        "Maturity Date" means the Termination Date, unless the Maturity Date is extended pursuant to Section 2.07(d), in which case the
Maturity Date shall mean July 1, 2004. 

        "Moody's" means Moody's Investors Service, Inc. 

        "Multiemployer Plan" means a Plan maintained pursuant to a collective bargaining agreement or any other arrangement to which the Borrower
or any member of the Controlled Group is a party to which more than one employer is obligated to make contributions. 

        "NAIC" means the National Association of Insurance Commissioners or any successor thereto, or in lieu thereof, any other association,
agency or other organization performing advisory, coordination or other like functions among insurance departments, insurance commissioners and similar Governmental Authorities of the various states
of the United States toward the promotion of uniformity in the practices of such Governmental Authorities. 

        "Net Income" means for any Person for any period the net income of such Person and its subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP. 

        "Net Worth" means the consolidated shareholders' equity of AI determined in accordance with GAAP. 

        "Obligations" means all the obligations of the Borrower under this Agreement and under any promissory notes delivered pursuant to
Section 2.08(e). 

        "Other Taxes" means any and all present or future recording, stamp, documentary, excise, transfer, sales, property or similar taxes,
charges or levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement. 

        "PBGC" means the Pension Benefit Guaranty Corporation or any successor thereto. 

        "Permitted Liens" means, as applied to the Borrower and the Subsidiaries: 

        (a)    any
Lien in favor of the Administrative Agent or the Lenders given to secure the payment and performance of the Obligations; 

8

 

        (b)    Liens
securing Indebtedness in an aggregate amount not in excess of $75,000,000 (for the Borrower and the Subsidiaries taken as a whole) at any one time outstanding;  provided, however, that no more than $35,000,000 of such Indebtedness shall be Indebtedness of AI; 

        (c)(i)    Liens
on real estate for real estate taxes not yet delinquent and (ii) Liens for taxes, assessments, judgments, governmental charges or levies, or claims the
non-payment of which is being diligently contested in good faith by appropriate proceedings and for which adequate reserves have been set aside, but only so long as no foreclosure,
distraint, sale, or similar proceedings have been commenced with respect thereto and remain unstayed for a period of more than 30 days after their commencement; 

        (d)    Liens
of carriers, warehousemen, mechanics, laborers, and materialmen incurred in the ordinary course of business for sums not yet due or being diligently contested in
good faith, if such reserve or appropriate provision, if any, as shall be required by GAAP or SAP, as applicable, shall have been made therefor; 

        (e)    Liens
incurred in the ordinary course of business in connection with worker's compensation and unemployment insurance; 

        (f)    restrictions
on the transfer of assets imposed by any applicable federal, state or local statute, regulation or ordinance; 

        (g)    easements,
rights-of-way, restrictions and other similar encumbrances on the use of real property which do not interfere with the ordinary
conduct of the business of the Borrower or the Subsidiaries, or Liens incidental to the conduct of the business of the Borrower or the Subsidiaries or to the ownership of its properties which were not
incurred in connection with Indebtedness or other extensions of credit and which do not in the aggregate materially detract from the value of such properties or materially impair their use in the
operation of the business of the Borrower or Subsidiaries; 

        (h)    purchase
money mortgages or security interests, conditional sale arrangements and other similar security interests on equipment and motor vehicles acquired by the
Borrower or any Subsidiary (hereinafter referred to individually as a "Purchase Money Security Interest");  provided, however, that: 

        (i)    the
transaction in which any Purchase Money Security Interest is proposed to be created is not otherwise prohibited by this Agreement; 

        (ii)    any
Purchase Money Security Interest shall attach only to the property or assets acquired in such transaction and shall not extend to or cover any other assets or
properties of the Borrower or the Subsidiaries; 

        (iii)    the
Indebtedness secured or covered by any Purchase Money Security Interest shall not exceed the lesser of the cost or fair market value of the property or asset
acquired and shall not be renewed or extended by the Borrower or the Subsidiaries; and 

        (iv)    the
aggregate outstanding amount of all Indebtedness secured by Purchase Money Security Interests shall not at any time exceed an amount equal to $20,000,000 (for the
Borrower and the Subsidiaries taken as a whole); 

        (i)    judgment
Liens arising in connection with court proceedings which do not exceed $20,000,000 in the aggregate, provided
that the execution or other enforcement of such Liens is effectively stayed, the claims secured thereby are being diligently contested in good faith by appropriate proceedings, and the Borrower or
Subsidiary in question has set aside adequate reserves with respect thereto in accordance with GAAP or SAP, as applicable; 

        (j)    Liens
consisting of deposits made by the Borrower or any Insurance Subsidiary with the insurance authority in its jurisdiction of domicile or other statutory Liens or
Liens or claims imposed or required by applicable insurance law or regulation against the assets of the Borrower or any Insurance 

9

 

Subsidiary, in each case in favor of policyholders of the Borrower or Insurance Subsidiaries and in the ordinary course of the business of the Borrower or Insurance Subsidiaries; 

        (k)    Purchase
Money Security Interests in equipment constituting inventory of the Borrower or any of its subsidiaries which is leased (or held for lease) by the Borrower or
subsidiaries to its customers in the ordinary course of business and other Liens on lease receivables, equipment and cash collateral accounts established in connection therewith; 

        (l)    Liens
on specific items of equipment leased by the Borrower or any of its subsidiaries in the ordinary course of business and on the leases (and proceeds therefrom) for
such equipment granted by the Borrower or any of its subsidiaries in connection with investor lease transactions, so long as the Indebtedness secured by such Liens is without recourse to the Borrower
or any of its subsidiaries or any of their assets other than such equipment and leases and proceeds therefrom; 

        (m)    Liens
securing reimbursement obligations in respect of letters of credit or similar instruments issued for the account of the Borrower or any of its subsidiaries in the
ordinary course of their respective businesses in an aggregate outstanding face amount not to exceed $30,000,000 at any time; 

        (n)    Liens
securing obligations to share with the Federal Centers for Medicare and Medicaid Services potential gains from the sale or other disposition of depreciable assets
used in the administration of the Medicare program; and 

        (o)    Liens
not exceeding $75,000,000 in the aggregate on the property or assets of a corporation which becomes a Subsidiary after the date of this Agreement securing
Indebtedness which is not prohibited by this Agreement (after giving effect to the acquisition of such Subsidiary), provided that (i) such Liens
existed at the time such corporation became a Subsidiary and were not created in anticipation thereof, (ii) any such Lien is not spread to cover any additional property or assets of such
corporation after the time such corporation becomes a Subsidiary, and (iii) no additional amount of Indebtedness shall be secured by such Liens in reliance upon the provisions of this clause. 

        "Person" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity. 

        "Plan" means an employee pension benefit plan, as defined in Section 3(2) of ERISA, as to which the Borrower or any member of the
Controlled Group may have any liability. 

        "Prime Rate" means the rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank as its prime rate in effect
at its principal office in New York City; each change in the
Prime Rate shall be effective from and including the date such change is publicly announced as being effective. 

        "Property" of a Person means any and all property, whether real, personal, tangible, intangible, or mixed of such Person, or other assets
owned, leased or operated by such Person. 

        "Purchase" means any transaction, or any series of related transactions, consummated on or after the date of this Agreement, by which the
Borrower or any of its subsidiaries (a) acquires any going business or all or substantially all of the assets of any firm, corporation or division or line of business thereof, whether through
purchase of assets, merger or otherwise, or (b) directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number
of votes) of the securities of a corporation which have ordinary voting power for the election of directors (other than securities having such power only by reason of the happening of a contingency)
or a majority (by percentage or voting power) of the outstanding partnership interests of a partnership. 

        "Purchase Money Security Interest" is defined in clause (h) of the definition of "Permitted Liens" set forth above. 

        "Quarterly Statement" of AICI or an Insurance Subsidiary means the quarterly statutory financial statements of AICI or such Insurance
Subsidiary required to be filed with the insurance commissioner (or similar authority) of its jurisdiction of incorporation or, if no specific form is so required, in the 

10

 

form of financial statements permitted by such insurance commissioner (or such similar authority) to be used for filing quarterly statutory financial statements and shall contain the type of
financial information permitted by such insurance commissioner (or such similar authority) to be disclosed therein, together with all exhibits or schedules filed therewith. 

        "Rate Hedging Obligations" of a Person means any and all net obligations of such Person, whether absolute or contingent and howsoever and
whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (a) any and all agreements, devices or
arrangements designed to protect at least one of the parties thereto from the fluctuations of interest rates, exchange rates or forward rates applicable to such party's assets, liabilities or exchange
transactions, including, but not limited to, dollar-denominated or cross-currency interest rate exchange agreements, forward currency exchange agreements, interest rate cap or collar protection
agreements, forward rate currency or interest rate options, puts and warrants, and (b) any and all cancellations, buybacks, reversals, terminations or assignments of any of the foregoing. 

        "Register" has the meaning set forth in Section 8.04. 

        "Registration Statement" means the registration statement (Registration No. 333-67714) on Form S-1
under the Securities Act filed with the Securities and Exchange Commission on August 16, 2001, as subsequently amended or supplemented. 

        "Related Parties" means, with respect to any specified Person, such Person's Affiliates and the respective directors, officers, employees,
agents and advisors of such Person and such Person's Affiliates. 

        "Reportable Event" means a reportable event as defined in Section 4043 of ERISA and the regulations issued under such section, with
respect to a Plan, excluding, however, such events as to which the PBGC has by regulation waived the requirement of Section 4043(a) of ERISA that it be notified within 30 days of the
occurrence of such event; provided, that a failure to meet the minimum funding standard of Section 412 of the Code and of Section 302 of
ERISA shall be a Reportable Event regardless of the issuance of any such waiver of the notice requirement in accordance with either Section 4043(a) of ERISA or Section 412(d) of the
Code. 

        "Required Lenders" means, at any time, Lenders having Revolving Credit Exposures and unused Commitments representing more than 50% of the
sum of the total Revolving Credit Exposures and unused Commitments at such time; provided that, for purposes of declaring the Loans to be due and
payable pursuant to Article VI, and for all purposes after the Loans become due and payable pursuant to Article VI or the Commitments expire or terminate, the outstanding Competitive
Loans of the Lenders shall be included in their respective Revolving Credit Exposures in determining the Required Lenders. 

        "Revolving Credit Exposure" means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender's
Revolving Loans at such time. 

        "Revolving Loan" means a Loan made pursuant to Sections 2.01 and 2.03. 

        "SAP" means, with respect to AICI or any Insurance Subsidiary, the statutory accounting practices prescribed or permitted by the insurance
commissioner (or other similar authority) in the jurisdiction of AICI or such Insurance Subsidiary for the preparation of annual statements and other financial reports by insurance companies of the
same type as AICI or such Insurance Subsidiary in effect from time to time, applied in a manner consistent with those used in preparing the Financial Statements referred to in Section 3.05(c)
and (d). 

        "S&P" means Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc. 

        "Securities Act" means the Securities Act of 1933, as amended. 

11

 

        "Single Employer Plan" means a Plan subject to Title IV of ERISA maintained by the Borrower or any member of the Controlled Group for
employees of the Borrower or member of the Controlled Group, other than a Multiemployer Plan. 

        "subsidiary" means, with respect to any Person (the "parent") at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent's consolidated financial statements
if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity of which
securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general
partnership interests are, as of such date, owned, controlled or held by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. 

        "Subsidiary" means any subsidiary of AI. 

        "Substantial Portion" means Property which (a) represents more than 10% of the consolidated assets of AI and the Subsidiaries, as
would be shown in the consolidated financial statements of AI and the Subsidiaries as at the end of the Fiscal Quarter next preceding the date on which such determination is made, or (b) is
responsible for more than 10% of the consolidated revenues from operations of AI and the Subsidiaries for the 12-month period ending as of the end of the Fiscal Quarter next preceding the
date of determination. 

        "Surplus Notes" of AICI means all notes evidencing obligations of AICI which may from time to time be issued by AICI and which under SAP
in effect on the date of this Agreement would be included in the amount specified on page 3, line 26A of the "Liabilities, Surplus and Other Funds" statement of AICI's Annual Statement. 

        "Taxes" means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any
Governmental Authority. 

        "Termination Date" means July 1, 2003. 

        "Termination Event" means, with respect to a Plan which is subject to Title IV of ERISA, (a) a Reportable Event, (b) the
withdrawal of the Borrower or any other member of the Controlled Group from such Plan during a plan year in which the Borrower or member of the Controlled Group was a "substantial employer" as defined
in Section 4001(a)(2) of ERISA or was deemed such under Section 4068(f) of ERISA, (c) the termination of such Plan, the filing of a notice of intent to terminate such Plan or the
treatment of an amendment of such Plan as a termination under Section 4041 of ERISA, (d) the institution by the PBGC of proceedings to terminate such Plan or (e) any event or
condition which could reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or appointment of a trustee to administer, such Plan. 

        "Total Debt" means, at any time, all Indebtedness that would be required to appear as liabilities on the consolidated balance sheet of AI
and its Subsidiaries prepared in accordance with GAAP (including, in any event, Surplus Notes of AICI and surplus notes issued by any other Insurance Subsidiary) plus all guarantee obligations (or
obligations having the economic effect of guarantee obligations) of AI or any Subsidiary in respect of Indebtedness of Persons other than AI or any Subsidiary. 

        "Total Debt to Capital Ratio" means, at any time, the ratio of (a) the Total Debt at such time to (b) the sum of Total Debt  plus AI's Net Worth at such time.

        "Transactions" means the execution, delivery and performance by the Borrower of this Agreement, the borrowing of Loans, the use of the
proceeds thereof and the other transactions contemplated hereby. 

        "Trigon" means Trigon Healthcare, Inc. 

12

 

        "Type", when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising
such Borrowing, is determined by reference to the LIBO Rate, the Alternate Base Rate or, in the case of a Competitive Loan or Borrowing, a Fixed Rate. 

        "Unfunded Liability" means the amount (if any) by which the present value of all vested and unvested accrued benefits under a Single
Employer Plan exceeds the fair market value of assets allocable to such benefits, all determined as of the then most recent valuation date for such Plans using PBGC actuarial assumptions for single
employer plan terminations. 

        SECTION
1.02.    Classification of Loans and Borrowings.    For purposes of this Agreement, Loans may be classified
and referred to by Class (e.g., a "Revolving Loan") or by Type (e.g., a "Eurodollar Loan") or
by Class and Type (e.g., a "Eurodollar Revolving Loan"). Borrowings also may be classified and referred to by Class
(e.g., a "Revolving Borrowing") or by Type (e.g., a "Eurodollar Borrowing") or by Class and Type
(e.g., a "Eurodollar Revolving Borrowing"). 

        SECTION
1.03.    Terms Generally.    The definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be
deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise
(a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be
construed to include such Person's successors and assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement and (e) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights. 

13

  

        SECTION 1.04.    Accounting Terms; GAAP.    Except as otherwise expressly provided herein, all terms of an
accounting
or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the
Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any
such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such
change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. 

 
 

ARTICLE II
  
    The Credits    
  

        SECTION
2.01.    Commitments.    Subject to the terms and conditions set forth herein, each Lender agrees to make
Revolving Loans to the Borrower from time to time during the Availability Period for the Borrower in an aggregate principal amount for the Borrower that will not result in (a) such Lender's
Revolving Credit Exposure exceeding such Lender's Commitment or (b) the sum of the total Revolving Credit Exposures plus the aggregate principal amount of outstanding Competitive Loans
exceeding the total Commitments. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans during the
Availability Period. 

        SECTION
2.02.    Loans and Borrowings.    (a)    Each Revolving Loan shall be made as part of a Borrowing
consisting of Revolving Loans made by the Lenders ratably in accordance with their respective Commitments. Each Competitive Loan shall be made in accordance with the procedures set forth in
Section 2.04. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder;  provided that the Commitments and Competitive
Bids of the Lenders are several and no Lender shall be responsible for any other Lender's failure to make
Loans as required. 

        (b)    Subject
to Section 2.12, (i) each Revolving Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request in
accordance herewith, and (ii) each Competitive Borrowing shall be comprised entirely of Eurodollar Loans or Fixed Rate Loans as the Borrower may request in accordance herewith. Each Lender at
its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any
exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement. 

        (c)    At
the commencement of each Interest Period for any Eurodollar Revolving Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of
$1,000,000 and not less than $5,000,000. At the time that each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less
than $5,000,000; provided that an ABR Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total
Commitments. Each Competitive Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $25,000,000. Borrowings of more than one Type and Class may be
outstanding at the same time; provided that there shall not at any time be more than a total of five Eurodollar Revolving Borrowings outstanding. 

        (d)    Notwithstanding
any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest
Period requested with respect thereto would end after the Termination Date. 

14

 

        SECTION
2.03.    Requests for Revolving Borrowings.    To request a Revolving Borrowing, the Borrower shall notify the
Administrative Agent of such request by telephone (a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of the
proposed Borrowing (b) in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the Business Day of the proposed Borrowing. Each such telephonic Borrowing
Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative Agent and
signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02: 

        (i)    the
aggregate amount of the requested Borrowing; 

        (ii)    the
date of such Borrowing, which shall be a Business Day; 

        (iii)    whether
such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; 

        (iv)    in
the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term
"Interest Period"; and 

        (v)    the
location and number of the Borrower's account to which funds are to be disbursed, which shall comply with the requirements of Section 2.05. 

If
no election as to the Type of Revolving Borrowing is specified, then the requested Revolving Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested
Eurodollar Revolving Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month's duration. Promptly following receipt of a Borrowing Request in accordance with this
Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender's Loan to be made as part of the requested Borrowing. 

        SECTION
2.04.    Competitive Bid Procedure.    (a)    Subject to the terms and conditions set forth herein,
from time to time during the Availability Period for the Borrower, the Borrower may request Competitive Bids and may (but shall not have any obligation to) accept Competitive Bids and borrow
Competitive Loans; provided that the sum of the total Revolving Credit Exposures plus the aggregate principal amount of outstanding Competitive Loans at
any time shall not exceed the total Commitments. To request Competitive Bids, the Borrower shall notify the Administrative Agent of such request by telephone, in the case of a Eurodollar Borrowing,
not later than 11:00 a.m., New York City time, four Business Days before the date of the proposed Borrowing and, in the case of a Fixed Rate Borrowing, not later than 10:00 a.m., New
York City time, one Business Day before the date of the proposed Borrowing; provided that the Borrower may submit up to (but not more than) three
Competitive Bid Requests on the same day, but a Competitive Bid Request shall not be made within five Business Days after the date of any previous Competitive Bid Request, unless any and all such
previous Competitive Bid Requests shall have been withdrawn or all Competitive Bids received in response thereto rejected. Each such telephonic Competitive Bid Request shall be confirmed promptly by
hand delivery or telecopy to the Administrative Agent of a written Competitive Bid Request in a form approved by the Administrative Agent and signed by the Borrower. Each such telephonic and written
Competitive Bid Request shall specify the following information in compliance with Section 2.02: 

        (i)    the
aggregate amount of the requested Borrowing; 

        (ii)    the
date of such Borrowing, which shall be a Business Day; 

        (iii)    whether
such Borrowing is to be a Eurodollar Borrowing or a Fixed Rate Borrowing; 

15

 

        (iv)    the
Interest Period to be applicable to such Borrowing, which shall be a period contemplated by the definition of the term "Interest Period" and shall end no later than
the Termination Date; and 

        (v)    the
location and number of the Borrower's account to which funds are to be disbursed, which shall comply with the requirements of Section 2.05. 

Promptly
following receipt of a Competitive Bid Request in accordance with this Section, the Administrative Agent shall notify the Lenders of the details thereof by telecopy, inviting the Lenders to
submit Competitive Bids. 

        (b)    Each
Lender may (but shall not have any obligation to) make one or more Competitive Bids in response to a Competitive Bid Request. Each Competitive Bid by a Lender must
be in a form approved by the Administrative Agent and must be received by the Administrative Agent by telecopy, in the case of a Eurodollar Competitive Borrowing, not later than 9:30 a.m., New
York City time, three Business Days before the proposed date of such Competitive Borrowing, and in the case of a Fixed Rate Borrowing, not later than 9:30 a.m., New York City time, on the
proposed date of such Competitive Borrowing. Competitive Bids that do not conform substantially to the form approved by the Administrative Agent may be rejected by the Administrative Agent, and the
Administrative Agent shall notify the applicable Lender as promptly as practicable. Each Competitive Bid shall specify (i) the principal amount (which shall be a minimum of $5,000,000 and an
integral multiple of $1,000,000 and which may equal the entire principal amount of the Competitive Borrowing requested) of the Competitive Loan or Loans that the Lender is willing to make,
(ii) the Competitive Bid Rate or Rates at which the Lender is prepared to make such Loan or Loans (expressed as a percentage rate per annum in the form of a decimal to no more than four decimal
places) and (iii) the Interest Period applicable to each such Loan and the last day thereof. 

        (c)    The
Administrative Agent shall promptly notify the Borrower by telecopy of the Competitive Bid Rate and the principal amount specified in each Competitive Bid and the
identity of the Lender that shall have made such Competitive Bid. 

        (d)    Subject
only to the provisions of this paragraph, the Borrower may accept or reject any Competitive Bid. The Borrower shall notify the Administrative Agent by telephone,
confirmed by telecopy in a form approved by the Administrative Agent, whether and to what extent it has decided to accept or reject each Competitive Bid, in the case of a Eurodollar Competitive
Borrowing, not later than 10:30 a.m., New York City time, three Business Days before the date of the proposed Competitive Borrowing, and in the case of a Fixed Rate Borrowing, not later than
10:30 a.m., New York City time, on the proposed date of the Competitive Borrowing; provided that (i) the failure of the Borrower to give
such notice shall be deemed to be a rejection of each Competitive Bid, (ii) the Borrower shall not accept a Competitive Bid made at a particular Competitive Bid Rate if the Borrower rejects a
Competitive Bid made at a lower Competitive Bid Rate, (iii) the aggregate amount of the Competitive Bids accepted by the Borrower shall not exceed the aggregate amount of the requested
Competitive Borrowing specified in the related Competitive Bid Request, (iv) to the extent necessary to comply with clause (iii) above, the
Borrower may accept Competitive Bids at the same Competitive Bid Rate in part, which acceptance, in the case of multiple Competitive Bids at such Competitive Bid Rate, shall be made pro rata in
accordance with the amount of each such Competitive Bid, and (v) except pursuant to clause (iv) above, no Competitive Bid shall be accepted for a Competitive Loan unless such Competitive
Loan is in a minimum principal amount of $5,000,000 and an integral multiple of $1,000,000; provided further that if a Competitive Loan must be in an
amount less than $5,000,000 because of the provisions of clause (iv) above, such Competitive Loan may be for a minimum of $1,000,000 or any integral multiple thereof, and in calculating the pro
rata allocation of acceptances of portions of multiple Competitive Bids at a particular Competitive Bid Rate pursuant to clause (iv) the 

16

 

amounts shall be rounded to integral multiples of $1,000,000 in a manner determined by the Borrower. A notice given by the Borrower pursuant to this paragraph shall be irrevocable. 

        (e)    The
Administrative Agent shall promptly notify each bidding Lender by telecopy whether or not its Competitive Bid has been accepted (and, if so, the amount and
Competitive Bid Rate so accepted), and each successful bidder will thereupon become bound, subject to the terms and conditions hereof, to make the Competitive Loan in respect of which its Competitive
Bid has been accepted. 

        (f)    If
the Administrative Agent shall elect to submit a Competitive Bid in its capacity as a Lender, it shall submit such Competitive Bid directly to the Borrower at least
one quarter of an hour earlier than the time by which the other Lenders are required to submit their Competitive Bids to the Administrative Agent pursuant to paragraph (b) of this Section. 

        SECTION
2.05.    Funding of Borrowings.    (a)    Each Lender shall make each Loan to be made by it
hereunder on the proposed date thereof by wire transfer of immediately available funds by 1:00 p.m., New York City time, to the account of the Administrative Agent most recently designated by
it for such purpose by notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to accounts of the
Borrower maintained with the Administrative Agent in New York City and designated by the Borrower in the applicable Borrowing Request or Competitive Bid Request. 

        (b)    Unless
the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of
this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing
available to the Administrative Agent, then the applicable Lender and the Borrower agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for
each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the
greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the
Borrower, the interest rate applicable to ABR
Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender's Loan included in such Borrowing. 

        SECTION
2.06.    Interest Elections.    (a)    Each Revolving Borrowing initially shall be of the Type
specified in the applicable Borrowing Request and, in the case of a Eurodollar Revolving Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the
Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar Revolving Borrowing, may elect Interest Periods therefor, all as
provided in this Section. The Borrower may elect different options with respect to different portions of an affected Borrowing, in which case each such portion shall be allocated ratably among the
Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. This Section shall not apply to Competitive Borrowings, which
may not be converted or continued. 

        (b)    To
make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election by telephone by the time that a Borrowing Request would
be required under Section 2.03 if the Borrower were requesting a Revolving Borrowing of the Type resulting from such election to be made on the effective date of such election. Each such
telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the 

17

 

Administrative Agent of a written Interest Election Request in a form approved by the Administrative Agent and signed by the Borrower. 

        (c)    Each
telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02: 

        (i)    the
Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions
thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting
Borrowing); 

        (ii)    the
effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; 

        (iii)    whether
the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and 

        (iv)    if
the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term "Interest Period". 

If
any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month's
duration. 

        (d)    Promptly
following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender's portion of each
resulting Borrowing. 

        (e)    If
the Borrower shall fail to deliver a timely Interest Election Request with respect to a Eurodollar Revolving Borrowing prior to the end of the Interest Period
applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary
provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of
Default is continuing (i) no outstanding Revolving Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Revolving Borrowing shall
be converted to an ABR Borrowing at the end of the Interest Period applicable thereto. 

        SECTION
2.07.    Termination and Reduction of Commitments; Extension of Maturity Date.    (a)    Unless
previously terminated, the Commitments shall terminate on the Termination Date. 

        (b)    The
Borrower may at any time terminate, or from time to time reduce, the Commitments; provided that (i) each
reduction of the Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Borrower shall not terminate or reduce the Commitments
if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 2.09, the sum of the Revolving Credit Exposures plus the aggregate principal amount of outstanding
Competitive Loans would exceed the total Commitments. 

        (c)    The
Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) of this Section at least three
Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent
shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a
notice of termination of the Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked
by the Borrower (by notice to the Administrative Agent on or prior to the specified 

18

 

effective date) if such condition is not satisfied. Any termination or reduction of the Commitments shall be permanent. Each reduction of the Commitments shall be made ratably among the Lenders in
accordance with their respective Commitments. 

        (d)    The
Borrower may, at any time not earlier than the 30th Business Day prior to the Termination Date and not later than the 15th Business Day prior to the Termination
Date, deliver to the Administrative Agent written notice extending the Maturity Date, in which event the Commitments shall terminate on the Termination Date and, so long as no Default or Event of
Default has occurred and is continuing on the Termination Date, the Maturity Date for Revolving Loans outstanding on the Termination Date shall be extended to July 1, 2004. Loans repaid or
prepaid after the Termination Date may not be reborrowed. 

        SECTION
2.08.    Repayment of Loans; Evidence of Debt.    (a)    The Borrower hereby unconditionally agrees
to pay (i) to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Revolving Loan on the Maturity Date and (ii) to the Administrative Agent
for the account of each Lender the then unpaid principal amount of each Competitive Loan on the last day of the Interest Period applicable to such Loan. 

        (b)    Each
Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each
Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 

        (c)    The
Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class and Type thereof and the Interest
Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of
any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender's share thereof. 

        (d)    The
entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima
facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement. 

        (e)    Any
Lender may request that Loans made by it be evidenced by a promissory note. In such event, the Borrower shall prepare, execute and deliver to such Lender a
promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent. Thereafter, the
Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 8.04) be represented by one or more promissory notes in such form
payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). 

        SECTION
2.09.    Prepayment of Loans.    (a)    The Borrower shall have the right at any time and from time
to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with paragraph (b) of this Section; provided that the
Borrower shall not have the right to prepay any Competitive Loan without the prior consent of the Lender thereof. 

        (b)    The
Borrower shall notify the Administrative Agent by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar
Revolving Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of prepayment or (ii) in the case of prepayment of an ABR Revolving Borrowing, not
later than 11:00 a.m., New York City time, one Business Day before the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount
of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with a conditional notice of 

19

 

termination of the Commitments as contemplated by Section 2.07, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.07.
Promptly following receipt of any such notice relating to a Revolving Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Revolving
Borrowing shall be in an amount that would be permitted in the case of an advance of a Revolving Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Revolving Borrowing
shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 2.11 and shall be subject to
break funding payments to the extent required by Section 2.14. 

        SECTION
2.10.    Fees.    (a)    The Borrower agrees to pay to the Administrative Agent for the account of
each Lender a facility fee, which shall accrue at the Applicable Rate on the daily amount of the Commitment of such Lender (whether used or unused), and, following the Termination Date, on the
Revolving Credit Exposure of such Lender, during the period from and including the date of this Agreement to but excluding the Maturity Date; provided
that, if such Lender continues to have any Revolving Credit Exposure after the Maturity Date, then such facility fee shall continue to accrue on the daily amount of such Lender's Revolving Credit
Exposure from and including the Maturity Date to but excluding the date on which such Lender ceases to have any Revolving Credit Exposure. Accrued facility fees shall be payable in arrears on the last
day of March, June, September and December of each year, on any date prior to the Termination Date on which the Commitments terminate and on the Maturity Date, commencing on the first such date to
occur after the date hereof; provided that any facility fees accruing after the Maturity Date shall be payable on demand. All facility fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 

        (b)    The
Borrower agrees to pay to the Administrative Agent for the account of each Lender a utilization fee for each day during the preceding quarter (or shorter period
commencing on the Effective Date or ending with the date on which the Loans shall have been repaid in full) on which the aggregate amount of all Loans outstanding exceeded 50% of the aggregate amount
of the Lenders' Commitments, at a rate of .125% per annum, on the aggregate amount of Loans of such Lender outstanding on such day; provided that if
such Lender shall continue to have any Revolving Credit
Exposure after its Commitment shall have terminated, then such utilization fee shall continue to accrue on the daily aggregate amount of the Loans of such Lender for each day on which such Loans are
outstanding. Accrued utilization fees shall be payable in arrears on the last day of March, June, September and December of each year, on any date prior to the Termination Date on which the
Commitments terminate and on the Maturity Date, commencing on the first such date to occur after the date hereof; provided that any utilization fees
accruing after the Maturity Date shall be payable on demand. All utilization fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days
elapsed. 

        (c)    The
Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and
the Administrative Agent. 

        (d)    All
fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent for distribution, in the case of facility fees and
utilization fees, to the Lenders. Fees paid shall not be refundable. 

        SECTION
2.11.    Interest.    (a)    The Loans comprising each ABR Borrowing shall bear interest at the
Alternate Base Rate plus, at any time, a spread equal to the greater of (i) the spread over the LIBO Rate used at such time to determine the rate at which interest accrues on Eurodollar
Revolving Loans (equal to the Applicable Rate at such time plus any additional spread applicable at such time under paragraph (g) below) minus 1.00% per annum and (ii) 0% per annum. 

20

  

        (b)    Subject
to the provisions of paragraph (g) below, the Loans comprising each Eurodollar Borrowing shall bear interest (i) in the case of a Eurodollar
Revolving Loan, at the LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate, or (ii) in the case of a Eurodollar Competitive Loan, at the LIBO Rate for the
Interest Period in effect for such Borrowing plus (or minus, as applicable) the Margin applicable to such Loan. 

        (c)    Each
Fixed Rate Loan shall bear interest at the Fixed Rate applicable to such Loan. 

        (d)    Notwithstanding
the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by the Borrower hereunder is not paid when due, whether at
stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of
any Loan, 2% per annum plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% per annum plus the
rate applicable to ABR Loans as provided in paragraph (a) of this Section. 

        (e)    Accrued
interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and, in the case of Revolving Loans, upon termination of the
Commitments; provided that (i) interest accrued pursuant to paragraph (d) of this Section shall be payable on demand, (ii) in the
event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar Revolving Loan prior to the end of the current Interest Period
therefor, accrued interest on such Loan shall be payable on the effective date of such conversion. 

        (f)    All
interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate Base Rate at times when
the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual
number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate or LIBO Rate shall be determined by the Administrative Agent, and such determination
shall be conclusive absent manifest error. 

        (g)    Following
the Termination Date, the Loans comprising each Eurodollar Borrowing shall bear interest at a rate per annum equal to 0.250% per annum plus the rate otherwise
applicable to such Loan as provided in the preceding paragraphs of this Section 2.11. 

        SECTION
2.12.    Alternate Rate of Interest.    If prior to the commencement of any Interest Period for a Eurodollar
Borrowing: 

        (a)    the
Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the
LIBO Rate for such Interest Period; or 

        (b)    the
Administrative Agent is advised by the Required Lenders (or, in the case of a Eurodollar Competitive Loan, the Lender that is required to make such Loan) that the
LIBO Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such
Interest Period; 

then
the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the
Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Revolving Borrowing to, or
continuation 

21

 

of any Revolving Borrowing as, a Eurodollar Borrowing shall be ineffective, (ii) if any Borrowing Request requests a Eurodollar Revolving Borrowing, such Borrowing shall be made as an ABR
Borrowing and (iii) any request by the Borrower for a Eurodollar Competitive Borrowing shall be ineffective; provided that (A) if the
circumstances giving rise to such notice do not affect all the Lenders, then requests by the Borrower for Eurodollar Competitive Borrowings may be made to Lenders that are not affected thereby and
(B) if the circumstances giving rise to such notice affect only one Type of Borrowings, then the other Type of Borrowings shall be permitted. 

        SECTION
2.13.    Increased Costs.    (a)    If any Change in Law shall: 

        (i)    impose,
modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any
Lender; or 

        (ii)    impose
on any Lender or the London interbank market any other condition affecting this Agreement or Eurodollar Loans or Fixed Rate Loans made by such Lender; 

and
the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan or Fixed Rate Loan (or of maintaining its obligation to make any such
Loan) or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or otherwise), then the Borrower will pay to such Lender such additional amount
or amounts as will compensate such Lender for such additional costs incurred or reduction suffered. 

        (b)    If
any Lender determines that any Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on such Lender's capital or on
the capital of such Lender's holding company, if any, as a consequence of this Agreement or the Loans made by such Lender to a level below that which such Lender or such Lender's holding company could
have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy), then from time to time
the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered. 

        (c)    A
certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in
paragraph (a) or (b) of this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any
such certificate within 10 days after receipt thereof. 

        (d)    Failure
or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's right to demand such
compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs or reductions
incurred more than 180 days prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender's intention to
claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the
180-day period referred to above shall be extended to include the period of retroactive effect thereof. 

        (e)    Notwithstanding
the foregoing provisions of this Section, a Lender shall not be entitled to compensation pursuant to this Section in respect of any Competitive Loan if
the Change in Law that would otherwise entitle it to such compensation shall have been publicly announced prior to submission of the Competitive Bid pursuant to which such Loan was made. 

        SECTION
2.14.    Break Funding Payments.    In the event of (a) the payment of any principal of any Eurodollar
Loan or Fixed Rate Loan other than on the last day of an Interest Period applicable 

22

 

thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure
to borrow, convert, continue or prepay any Loan on the date or in the amount specified in any notice delivered pursuant
hereto (regardless of whether such notice may be revoked under Section 2.09(b) and is revoked in accordance therewith), (d) the failure to borrow any Competitive Loan after accepting the
Competitive Bid to make such Loan, or (e) the assignment of any Eurodollar Loan or Fixed Rate Loan other than on the last day of the Interest Period applicable thereto as a result of a request
by the Borrower pursuant to Section 2.17, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a
Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have
accrued on the principal amount of such Loan had such event not occurred, at the LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of
the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the
amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits
of a comparable amount and period from other banks in the eurodollar market. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof. 

        SECTION
2.15.    Taxes.    (a)    Any and all payments by or on account of any obligation of the Borrower
hereunder shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be
required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section) the Administrative Agent or Lender (as the case may be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with
applicable law. 

        (b)    In
addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. 

        (c)    The
Borrower shall indemnify the Administrative Agent and each Lender, within 10 days after written demand therefor, for the full amount of any Indemnified Taxes
or Other Taxes paid by the Administrative Agent or such Lender, as the case may be, on or with respect to any payment by or on account of any obligation of the Borrower hereunder (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and any penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to the Borrower by a Lender, or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error. 

        (d)    As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of
the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 

23

 

        (e)    Any
Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is located, or any
treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times prescribed by
applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrower as will permit such payments to be made without withholding or
at a reduced rate, provided that such Foreign Lender has received written notice from the Borrower advising it of the availability of such exemption or reduction and containing all applicable
documentation. 

        (f)    If
the Administrative Agent or a Lender determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified
by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section 2.15, it shall pay over such refund to the Borrower (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower under this Section 2.15 with respect to the Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of the Administrative Agent or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such
refund); provided, that the Borrower, upon the request of the Administrative Agent or such Lender, agree to repay the amount paid over to the Borrower
(plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is
required to repay such refund to such Governmental Authority. This Section shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other
information relating to its taxes which it deems confidential) to the Borrower or any other Person. 

        SECTION
2.16.    Payments Generally; Pro Rata Treatment; Sharing of Set-offs.    (a)    The
Borrower shall make each payment required to be made by it hereunder (whether of principal, interest or fees, or of amounts payable under Section 2.13, 2.14 or 2.15, or otherwise) prior to
12:00 noon, New York City time, on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may, in the
discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the
Administrative Agent at its offices at 270 Park Avenue, New York, New York, except that payments pursuant to Sections 2.13, 2.14, 2.15 and 8.03 shall be made directly to the Persons entitled thereto.
The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder
shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall
be payable for the period of such extension. All payments hereunder shall be made in dollars. 

        (b)    If
at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, interest and fees then due hereunder,
such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (ii) second, towards payment of principal then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal then due to
such parties. 

        (c)    If
any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its
Revolving Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Revolving Loans and accrued interest thereon than the proportion received by any other
Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the 

24

 

Revolving Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Revolving Loans; provided that (i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of
this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the
provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation
pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct
creditor of the Borrower in the amount of such participation. 

        (d)    Unless
the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of
the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance
upon such assumption, distribute to the Lenders the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such Lender with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the
date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation. 

        (e)    If
any Lender shall fail to make any payment required to be made by it pursuant to Section 2.05(b) or 2.16(d), then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender's obligations under
such Sections until all such unsatisfied obligations are fully paid. 

        SECTION
2.17.    Mitigation Obligations; Replacement of Lenders.    (a)    If any Lender requests
compensation under Section 2.13, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.15, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder
to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to
Section 2.13 or 2.15, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. 

        (b)    If
any Lender requests compensation under Section 2.13, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority
for the account of any Lender pursuant to Section 2.15, or if any Lender defaults in its obligation to fund Loans hereunder, then the Borrower may, at its sole expense and effort, upon notice
to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 8.04), all its
interests, rights and obligations under this Agreement (other than any outstanding Competitive Loans held by it) to an assignee that shall assume such obligations (which assignee may be another
Lender, if a 

25

 

Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written consent of the Administrative Agent, which
consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans (other than Competitive Loans), accrued
interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case
of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.13 or payments required to be made pursuant to
Section 2.15, such assignment will result in a material reduction in such compensation or payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto,
as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 

 
 

ARTICLE III
  
    Representations and Warranties    
  

        The Borrower represents and warrants to the Lenders that: 

        SECTION
3.01.    Corporate Existence and Standing.    The Borrower and (a) each Subsidiary is a corporation,
limited liability company or other entity duly organized and validly existing under the laws of the jurisdiction of its incorporation; (b) each Material Subsidiary has all requisite corporate
power, and has all material governmental licenses, authorizations, consents and approvals, necessary to own its assets and carry on its business as now being or as proposed to be conducted; and
(c) each Subsidiary is duly
qualified to do business in all jurisdictions in which the nature of the business conducted by it makes such qualification necessary except where the failure so to qualify could not reasonably be
expected to have a Material Adverse Effect. 

        SECTION
3.02.    Authorization and Validity.    The Borrower has all requisite corporate power and authority and legal
right to execute and deliver this Agreement and to perform its obligations hereunder. The execution and delivery by the Borrower of this Agreement and the performance of its obligations hereunder have
been duly authorized by proper corporate proceedings and this Agreement constitutes the legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with its
terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally which may be in effect and to general principles of
equity. 

        SECTION
3.03.    Compliance with Laws and Contracts.    Neither the Borrower nor any Subsidiary is in default under or
in violation of any foreign, federal, state or local law, rule, regulation, order, writ, judgment, injunction, decree or award binding upon or applicable to the Borrower or such Subsidiary, in each
case the consequence of which default or violation could reasonably be expected to have a Material Adverse Effect. None of the execution and delivery by the Borrower of this Agreement, the application
of the proceeds of the Loans, or compliance with the provisions of this Agreement will, or at the relevant time did, (a) violate any law, rule, regulation (including Regulations U and X of the
Board), order, writ, judgment, injunction, decree or award binding on the Borrower or any Subsidiary or the Borrower's or any Subsidiary's charter, articles or certificate of incorporation,
by-laws or code of regulations, (b) violate the provisions of or require the approval or consent of any party to any indenture, instrument or agreement to which the Borrower or any
Subsidiary is a party or is subject, or by which it, or its Property, is bound, or conflict with or constitute a default thereunder, or result in the creation or imposition of any Lien (other than
Permitted Liens) in, of or on the Property of the Borrower or any Subsidiary pursuant to the terms of any such indenture, instrument or agreement, or (c) require the consent or approval of any
Person, except for any violation of, or failure to obtain an approval or consent required under, any such indenture, instrument or agreement that could not reasonably be expected to have a Material
Adverse Effect. 

26

 

        SECTION
3.04.    Governmental Consents.    No order, consent, approval, qualification, license or authorization of, or
filing, recording or registration with, or exemption by, or other action in respect of, any Governmental Authority or self-regulatory organization is or at the relevant time was necessary
or required to authorize, or is or at the relevant time was required in connection with, the execution, delivery, consummation or performance or the legality, validity, binding effect or
enforceability of this Agreement and the Transactions (other than those which the failure to obtain could not reasonably be expected to result in a Material Adverse Effect). 

        SECTION
3.05.    Financial Statements.    The Borrower has heretofore furnished to the Lenders (a) the
December 31, 2001, audited consolidated financial statements of AI and its subsidiaries, (b) the unaudited consolidated financial statements of AI and its subsidiaries through
March 31, 2002, (c) the
December 31, 2001, Annual Statement of AICI and (d) the March 31, 2002, Quarterly Statement of AICI (collectively, the "Financial
Statements"). Each of the Financial Statements was prepared in accordance with GAAP or SAP, as applicable, and such Financial Statements fairly present the consolidated
financial condition and operations of the Borrower and the Subsidiaries at such dates and the consolidated results of their operations for the respective periods then ended (except, in the case of
such unaudited statements, for normal year-end audit adjustments). The pro forma financial statements contained in the Registration Statement have been properly applied to the historical
amounts and comply in form with the applicable accounting requirements of the Securities Act. 

        SECTION
3.06.    Material Adverse Change.    No material adverse change in the business, Property, condition
(financial or otherwise) or operations of AI, or of AI and its subsidiaries taken as a whole, has occurred since December 31, 2001. 

        SECTION
3.07.    Properties.    (a)    The Borrower and each Subsidiary has good title to, or valid
leasehold interests in, all its real and personal property material to its business, except for minor defects in title that do not interfere with its ability to conduct its business as currently
conducted or to utilize such properties for their intended purposes. 

        (b)    The
Borrower and each Subsidiary owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business,
and the use thereof by the Borrower or Subsidiary, as applicable, does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could
not reasonably be expected to result in a Material Adverse Effect. 

        SECTION
3.08.    Litigation and Environmental Matters.    (a)    There are no actions, suits or proceedings
by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any Subsidiary (i) as to which there
is a reasonable possibility of an adverse determination and that, if adversely determined, could reasonably be expected, individually or in the aggregate (excluding from such aggregate any Disclosed
Matters), to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that involve this Agreement. 

        (b)    Except
for the Disclosed Matters and except with respect to any other matters that, individually or in the aggregate (excluding from such aggregate any Disclosed
Matters), could not reasonably be expected to result in a Material Adverse Effect, neither the Borrower nor any Subsidiary (i) has failed to comply with any Environmental Law or to obtain,
maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice of
any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability. 

        SECTION
3.09.    Taxes.    The Borrower and each Subsidiary has filed or caused to be filed on a timely basis and in
correct form all United States federal and applicable material foreign, state and local Tax returns and all other material Tax returns which are required to be filed and have paid all 

27

 

Taxes due pursuant to said Tax returns or pursuant to any assessment received by the Borrower or Subsidiary, except such Taxes, if any, as are being contested in good faith by appropriate proceedings
and as to which adequate reserves have been provided in accordance with GAAP and as to which no Lien exists. No Liens have been filed and no claims are being asserted with respect to any Taxes owed by
the Borrower or any Subsidiary which could reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on the books of the Borrower and its subsidiaries in respect of
any Taxes or other governmental charges are in accordance with GAAP or SAP, as applicable. 

        SECTION
3.10.    Subsidiaries.    Schedule 3.10 hereto contains (a) an accurate list of all of the
Borrower's existing subsidiaries as of March 31, 2002, setting forth their respective jurisdictions of incorporation and the percentages of their capital stock owned by the Borrower or other
Subsidiaries and (b) an accurate list of each Material Subsidiary as of March 31, 2002, setting forth the percentages of its capital stock owned by the Borrower or other Subsidiaries. As
of the date of this Agreement, the Borrower does not own or hold, directly or indirectly, any capital stock or equity security of, or any equity or partnership interest in, any Person other than such
subsidiaries except (a) for holdings in its general investment portfolio and (b) as otherwise set forth on Schedule 3.10. 

        SECTION
3.11.    ERISA.    Except as disclosed on Schedule 3.11, neither the Borrower nor any other member of
the Controlled Group maintains, or is obligated to contribute to, any Multiemployer Plan or has incurred, or is reasonably expected to incur, any withdrawal liability to any Multiemployer Plan. Each
Plan complies in all material respects with all applicable requirements of law and regulations. Neither the Borrower nor any member of the Controlled Group has, with respect to any Plan, failed to
make any contribution or pay any amount required under Section 412 of the Code or Section 302 of ERISA or the terms of such Plan. No Single Employer Plan has any material Unfunded
Liability. There are no pending or, to the knowledge of the Borrower, threatened claims, actions, investigations or lawsuits against any Plan, any fiduciary thereof, or the Borrower or any member of
the Controlled Group with respect to a Plan which could reasonably be expected to have a Material Adverse Effect. Neither the Borrower nor any member of the Controlled Group has engaged in any
prohibited transaction (as defined in Section 4975 of the Code or Section 406 of ERISA) in connection with any Plan which would subject such Person to any material liability. Within the
last five years neither the Borrower nor any member of the Controlled Group has engaged in a transaction which resulted in a Single Employer Plan with an Unfunded Liability being transferred out of
the Controlled Group. No Termination Event has occurred or is reasonably expected to occur with respect to any Plan which is subject to Title IV of ERISA. 

        SECTION
3.12.    Defaults.    No Default or Event of Default has occurred and is continuing. 

        SECTION
3.13.    Federal Reserve Regulations.    Neither the Borrower nor any Subsidiary is engaged, directly or
indirectly, principally, or as one of its important activities, in the business of extending, or arranging for the extension of, credit for the purpose of purchasing or carrying Margin Stock. No part
of the proceeds of any Loan will be used in a manner which would violate, or result in a violation of, Regulation U or Regulation X of the Board. Neither the making of any Loan hereunder
nor the use of the proceeds thereof will violate or be inconsistent with the provisions of Regulation U or Regulation X.
Following the application of the proceeds of the Loans, less than 25% of the value (as determined by any reasonable method) of the assets of the Borrower and its subsidiaries which are subject to any
limitation on sale, pledge, or other restriction hereunder, taken as a whole, will be represented by Margin Stock. 

28

  

        SECTION 3.14.    Investment Company.    Neither the Borrower nor any Subsidiary is, or after giving effect to any
Borrowing will be, an "investment company" or a company "controlled" by an "investment company" within the meaning of the Investment Company Act of 1940, as amended. 

        SECTION
3.15.    Insurance Licenses.    Schedule 3.15 hereto lists all of the jurisdictions in which the
Borrower or any Material Insurance Subsidiary holds a License and is authorized to transact insurance business as of the date of this Agreement and the line or lines of insurance in which the Borrower
and each such Material Insurance Subsidiary is engaged. No License held by the Borrower or any Insurance Subsidiary, the loss of which could reasonably be expected to have a Material Adverse Effect,
is the subject of a proceeding for suspension or revocation. To the Borrower's knowledge, there is not a sustainable basis for such suspension or revocation, and no such suspension or revocation has
been threatened by any Governmental Authority. 

        SECTION
3.16.    Material Agreements.    Except as disclosed on Schedule 3.16, neither the Borrower nor any
Subsidiary is a party to any agreement or instrument or subject to any charter or other internal corporate restriction (a) which could reasonably be expected to have a Material Adverse Effect
or (b) except to the extent imposed by applicable state Governmental Authorities, which restricts or imposes conditions upon the ability of any Subsidiary to (i) pay dividends or make
other distributions on its capital stock, (ii) make loans or advances to the Borrower, (iii) repay loans or advances from the Borrower or (iv) grant Liens to the Administrative
Agent to secure the Obligations. Neither the Borrower nor any Subsidiary is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any
agreement to which it is a party, which default could reasonably be expected to have a Material Adverse Effect. 

        SECTION
3.17.    Insurance.    The Borrower and each Subsidiary maintains with financially sound and reputable
insurance companies insurance on its Property in such amounts and covering such risks as are consistent with sound business practice. 

        SECTION
3.18.    Subordination Provisions.    The subordination provisions contained in the Surplus Notes, and other
instruments entered into or issued in respect of the Surplus Notes, are enforceable against AICI and the holders thereof, and the Loans are within the definition of "Indebtedness" included in such
provisions. 

        SECTION
3.19.    Disclosure.    None of the (a) information, exhibits or reports furnished or to be furnished
by the Borrower or any Subsidiary to the Administrative Agent or to any Lender in connection with the negotiation of this Agreement, or (b) representations or warranties of the Borrower or any
Subsidiary contained in this
Agreement or any other document, certificate or written statement furnished to the Administrative Agent or the Lenders by or on behalf of the Borrower, contained, contains or will contain any untrue
statement of a material fact or omitted, omits or will omit to state a material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances
in which the same were made. As of the date of this Agreement, there is no fact known to the Borrower (other than matters of a general economic nature) that has had since December 31, 2001, or
could reasonably be expected to have a Material Adverse Effect and that has not been disclosed herein or in such other documents, certificates and statements furnished to the Lenders for use in
connection with this Agreement and the Transactions. 

 
 

ARTICLE IV
  
    Conditions    
  

        SECTION
4.01.    Effective Date.    The obligations of the Lenders to make Loans hereunder shall not become effective
until the Borrower shall have furnished the following to the Administrative Agent and the other conditions set forth below are satisfied (or waived in accordance with Section 8.02): 

        (a)    Charter Documents; Good Standing Certificates.    Copies of the articles of incorporation of the Borrower,
together with all amendments thereto, certified as of a date not earlier than 10 days prior to the date of this Agreement, by the appropriate governmental officer in the State of Indiana,
together with (i) a certificate of existence as to the Borrower from the State of Indiana and (ii) a certificate of compliance as to AICI from the Indiana Department of Insurance. 

        (b)    [Intentionally
Omitted] 

29

 

        (c)    By-Laws and Resolutions.    Copies, certified by the Secretary or Assistant Secretary of the
Borrower, of its by-laws and of its Board of Directors' resolutions authorizing the execution, delivery and performance of this Agreement and the Transactions. 

        (d)    Secretary's Certificate.    An incumbency certificate, executed by the Secretary or Assistant Secretary of the
Borrower, which shall identify by name and title and bear the signature of the officers of the Borrower authorized to sign this Agreement and to authorize Borrowings hereunder, upon which certificate
the Administrative Agent and the Lenders shall be entitled to rely until informed in writing of any change by the Borrower. 

        (e)    Officer's Certificate.    A certificate, dated the date of this Agreement, signed by an Authorized Officer of
the Borrower, in form and substance satisfactory to the Administrative Agent, to the effect that (i) on such date (both before and after giving effect to the consummation of the Transactions
that have been completed on or
prior to such date and the making of any Loans hereunder) no Default or Event of Default has occurred and is continuing and (ii) each of the representations and warranties set forth in
Article III of this Agreement is true and correct in all material respects on and as of such date. 

        (f)    Legal Opinions.    A written opinion addressed to the Administrative Agent and the Lenders of
(i) Baker & Daniels, counsel to the Borrower, substantially in the form of Exhibit B hereto and (ii) David R. Frick, Esq., Executive Vice President and Chief Legal and
Administrative Officer of AI, substantially in the form of Exhibit C hereto. 

        (g)    Executed Documents.    Executed originals of this Agreement and the other documents contemplated by this
Agreement, which shall be in full force and effect, together with all schedules, exhibits, certificates, instruments, documents and financial statements required to be delivered pursuant hereto and
thereto. 

        (h)    Loan Terminations.    Evidence in form and substance satisfactory to the Administrative Agent that the Existing
Credit Agreement has been terminated and all obligations of AI and AICI thereunder have been discharged. 

        (i)    Amendment of Five-Year Credit Agreement.    Evidence in form and substance satisfactory to the
Administrative Agent that the Borrower's Five-Year Credit Agreement dated as of November 5, 2001 among AICI, AI, the lenders party thereto and JPMorgan Chase Bank ("JPMCB"), as
administrative agent, Bank of America, N.A., as syndication agent and Fleet National Bank, as documentation agent, has been amended (i) to make the Borrower hereunder the sole Borrower
thereunder, (ii) to amend the pricing to be based on the debt ratings of the Borrower, (iii) to conform the affirmative and negative covenants, events of default and representations and
warranties to those of this Agreement and (iv) to make such other changes as the Borrower and JPMCB may determine to be appropriate. 

        (j)    Payment of Fees.    The Borrower shall have paid all accrued and unpaid fees, costs and expenses to the extent
due and payable on or prior to the execution of this Agreement, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be
reimbursed or paid by the Borrower hereunder. 

        (k)    Other.    Such other documents as the Administrative Agent, any Lender or their counsel may have reasonably
requested. 

        SECTION
4.02.    [Intentionally Omitted] 

        SECTION
4.03.    Each Borrowing.    The obligation of each Lender to make a Loan on the occasion of any Borrowing
shall be subject to the satisfaction of the following conditions: 

        (a)    The
representations and warranties of the Borrower set forth in Article III of this Agreement (except the representations and warranties made by the Borrower in
Sections 3.06 and 3.08) shall be true and correct in all material respects on and as of the date of such Borrowing (except to the extent any of them expressly relate to an earlier date, in which case
such representations and warranties shall be true and correct in all material respects on and as of such earlier date). 

        (b)    At
the time of and immediately after giving effect to such Borrowing, no Default shall have occurred and be continuing. 

30

 

        (c)    All
legal matters incident to such Borrowing shall be reasonably satisfactory to the Lenders and their counsel. 

Each
Borrowing shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section. 

 
 

ARTICLE V
  
    Covenants    
  

        Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full,
the Borrower covenants and agrees with the Lenders that: 

        SECTION
5.01.    Financial Reporting.    The Borrower will maintain, for itself and each of its subsidiaries, a system
of accounting established and administered in accordance with GAAP, consistently applied, and will furnish to the Administrative Agent and each Lender: 

        (a)    As
soon as practicable and in any event within 90 days after the close of each Fiscal Year, the consolidated and consolidating statements of income, retained
earnings and cash flow of AI and its Subsidiaries for such Fiscal Year, and the related consolidated and consolidating balance sheet of AI and its Subsidiaries as at the end of such Fiscal Year,
setting forth in each case in comparative form the corresponding figures for the preceding Fiscal Year, accompanied by an opinion of Ernst & Young or such other certified public accountants of
recognized standing which are reasonably satisfactory to the Administrative Agent, which opinion shall not be limited as to scope or contain a "going concern" or like qualification or exception and
shall state that such financial statements (other than consolidating statements) fairly present the consolidated financial condition and results of operations, as the case may be, of AI and its
Subsidiaries in accordance with GAAP as at the end of, and for, such Fiscal Year. 

        (b)    As
soon as practicable and in any event within 60 days after the close of each of the first three Fiscal Quarters of each Fiscal Year, the consolidated unaudited
balance sheets of AI and its Subsidiaries as at the
close of each such period and related consolidated statements of income, retained earnings and cash flow for the period from the beginning of such Fiscal Year to the end of such Fiscal Quarter, in
each case setting forth in comparative form results of the corresponding period in the preceding Fiscal Year, all certified by the chief financial officer or treasurer of AI as fairly presenting the
consolidated financial condition and results of operations of AI and its Subsidiaries for such period in accordance with GAAP (subject to normal year-end adjustments). 

        (c)    As
soon as practicable and in any event within 90 days after the close of each Fiscal Year, copies of the unaudited Annual Statement of AICI, certified by the
chief financial officer or treasurer of AICI as fairly presenting the financial condition and results of operations of AICI in accordance with SAP consistently applied throughout the periods reflected
therein. 

        (d)    As
soon as practicable and in any event within 60 days after the close of each of the first three Fiscal Quarters of each Fiscal Year, copies of the unaudited
Quarterly Statement of AICI, certified by the chief financial officer or treasurer of AICI as fairly presenting the financial condition and results of operations of AICI in accordance with SAP
consistently applied throughout the periods reflected therein. 

        (e)    Promptly,
and in any event within 15 days after learning thereof, notification of any change after the date hereof in the ratings by Moody's or S&P of the Index
Debt. 

        (f)    Together
with the financial statements required by clauses (a) and (b) above, a compliance certificate signed by the chief financial officer or treasurer
of AI showing the calculations necessary to determine compliance with Sections 5.10, 5.11 and 5.15 of this Agreement and stating that no Default has occurred, or if a Default has occurred, stating the
nature and status thereof and the details of any action taken or proposed to be taken with respect thereto. 

        (g)    As
soon as possible and in any event within 10 days after the Borrower knows that any Termination Event has occurred, a statement, signed by the chief financial
officer or treasurer of AI, describing such Termination Event and the action which AI proposes to take with respect thereto. 

31

 

        (h)    Promptly
upon the filing thereof, copies of all filings and annual, quarterly, monthly or other regular reports which AI or any Subsidiary files with (i) the
Securities and Exchange Commission or (ii) to the extent that it contains information indicating that an event or circumstance constituting or resulting in a Material Adverse Effect has
occurred, the NAIC or any insurance commission or department or analogous Governmental Authority (including, without limitation, any filing made by AI or any Subsidiary pursuant to any insurance
holding company act or related rules or regulations). 

        (i)    As
soon as possible (i) after learning thereof, notice that the Blue Cross Blue Shield Association is taking or intends to take action to terminate or materially
modify any Blue Cross/Blue Shield license arrangement of AI or an Insurance Subsidiary, and (ii) after taking such action, notice of any action by the Borrower to materially modify such
arrangement. 

        (j)    Such
other information as the Administrative Agent or any Lender may from time to time reasonably request. 

        (k)    Information
required to be delivered pursuant to Sections 5.01(a) and 5.01(b) and clause (i) of Section 5.01(h) shall be deemed to have been delivered on
the date on which the Borrower provides written notice to the Lenders that such information has been posted on the Borrower's website on the Internet at  http://www.Anthem.com or at http://www.sec.gov; provided
that such notice may be included in the certificates delivered pursuant to Section 5.01(f) and provided further that the Borrower shall deliver
paper copies of the information referred to in Sections 5.01(a) and 5.01(b) and clause (i) of Section 5.01(h) after the date delivery is required thereunder to any Lender which requests
such delivery within five Business Days after such request. 

        SECTION
5.02.    Use of Proceeds.    The Borrower will use the proceeds of the Loans for general corporate purposes,
including stock repurchases, the payment of maturing commercial paper and the funding of working capital requirements. The Borrower will not, nor will it permit any of the Subsidiaries to, own Margin
Stock to the extent the value of such Margin Stock would exceed 25% of the value of the assets of AI and its consolidated Subsidiaries that are subject to Section 5.11 or 5.13 or to use any of
the proceeds of the Loans to finance the Purchase of any Person which has not been approved and recommended by the board of directors (or functional equivalent thereof) of such Person. 

        SECTION
5.03.    Notice of Material Events.    The Borrower will give prompt notice in writing to the Lenders of
(a) the occurrence of any Default, (b) the occurrence of any other development, financial or otherwise, relating specifically to AI or any Subsidiaries (and not of a general economic or
political nature) which could reasonably be expected to have a Material Adverse Effect, (c) the receipt of any notice from any Governmental Authority of the expiration without renewal,
revocation or suspension of, or the institution of any proceedings to revoke or suspend, any License now or hereafter held by AI or any Insurance Subsidiary which is required to conduct insurance
business in compliance with all applicable laws and regulations and the expiration, revocation or suspension of which could reasonably be expected to have a Material Adverse Effect, (d) the
receipt of any notice from any Governmental Authority of the institution of any disciplinary proceedings against or in respect of AI or any Insurance Subsidiary, or the issuance of any order, the
taking of any action or any request for an extraordinary audit for cause by any Governmental Authority which, if adversely determined, could reasonably be expected to have a Material Adverse Effect,
(e) any judicial or administrative order limiting or controlling the business of AI or any of its subsidiaries (and not the industry in which AI or such subsidiary is engaged generally) which
has been issued or adopted which could reasonably be expected to have a Material Adverse Effect or (f) the commencement of any litigation which could reasonably be expected to result in a
Material Adverse Effect. 

        SECTION
5.04.    Conduct of Business.    (a) The Borrower will, and will cause each of its subsidiaries to,
(i) carry on and conduct its business only in substantially the same manner and in substantially the same fields of enterprise as it is presently conducted, (ii)(w) with respect to the Borrower
and each Insurance Subsidiary, only engage in the insurance business or the business of a holding company owning entities engaged in the insurance business or the business of insurance or reasonably
incidental activities, and (x) with respect to each other Subsidiary, only engage in other activities reasonably incidental to the insurance business, all substantially to the extent in which
it is engaged as of the date hereof, provided, that any subsidiary or subsidiaries with an aggregate net worth, determined in accordance with GAAP, of
less than 10% of the Net Worth of AI, may engage in other activities, (y) do all things necessary to remain duly incorporated, validly existing and in good standing in its jurisdiction of
incorporation and its jurisdiction of domicile and maintain all requisite authority to conduct its business in each other jurisdiction in which such 

32

 

qualification is required, except where the failure to maintain such qualification could not reasonably be expected to have a Material Adverse Effect, and (z) do all things necessary to renew,
extend and continue in effect all Licenses which may at any time and from time to time be necessary for the Borrower or any Insurance Subsidiary to conduct business in compliance with all applicable
laws and regulations; provided, that the Borrower or any Insurance Subsidiary may withdraw from one or more states (other than its state of domicile) as
an admitted insurer if such withdrawal is determined by the Borrower's or such Insurance Subsidiary's Board of Directors to be in the best interest of the Borrower or such Insurance Subsidiary, as
applicable, and could not reasonably be expected to have a Material Adverse Effect. 

        SECTION
5.05.    Taxes.    The Borrower will, and will cause each of its subsidiaries to, timely file complete and
correct United States federal and applicable material foreign, state and local Tax returns required by applicable law and pay when due all Taxes, except those which are being contested in good faith
by appropriate proceedings and with respect to which adequate reserves have been set aside in accordance with GAAP or SAP, as applicable. 

        SECTION
5.06.    Insurance.    The Borrower will, and will cause each of its subsidiaries to, maintain with
financially sound and reputable insurance companies insurance on all of its Property in such amounts and covering such risks as is consistent with sound business practice (or, to an extent not in
excess of that customarily employed by Persons engaged in the same or similar business similarly situated, by self-insurance), and the Borrower will furnish to the Administrative Agent and
any Lender upon request full information as to the insurance carried. 

        SECTION
5.07.    Compliance with Laws.    The Borrower will, and will cause each of its subsidiaries to, comply with
all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be subject, the failure to comply with which could reasonably be expected to have a Material
Adverse Effect. 

        SECTION
5.08.    Maintenance of Properties.    The Borrower will, and will cause each of its Material Subsidiaries to,
do all things necessary to maintain, preserve, protect and keep its Property in good repair, working order and condition (ordinary wear and tear excepted), and make all necessary and proper repairs,
renewals and replacements so that its business carried on in connection therewith may be properly conducted at all times. 

        SECTION
5.09.    Inspection.    The Borrower will, and will cause each of its Material Subsidiaries to, permit the
Administrative Agent and each Lender, by its respective representatives and agents, to inspect any of the Property, corporate books and financial records of the Borrower or Material Subsidiary, to
examine and make copies of the books of accounts and other financial records of the Borrower or Material Subsidiary, and to discuss the affairs, finances and accounts of the Borrower and each of its
subsidiaries with, and to be advised as to the same by, their respective officers at such reasonable times and intervals as the Administrative Agent or such Lender may designate upon reasonable
notice. The Borrower will keep or cause to be kept, and cause each of its subsidiaries to keep or cause to be kept, appropriate records and books of account in which complete entries are made
reflecting its and their business and financial transactions, such entries to be made in accordance with GAAP or SAP, as applicable, consistently applied. 

        SECTION
5.10    Coverage Ratio.    The Borrower will achieve, as of the last day of each fiscal quarter, a ratio of
Dividendable Cash to Interest Expense for the period of four consecutive fiscal quarters ending on such date, of not less than 2.00 to 1.00. 

        SECTION
5.11.    Fundamental Changes.    (a)    The Borrower will not, nor will it permit any of its
subsidiaries to, liquidate or dissolve itself (or suffer any liquidation or dissolution) or otherwise wind up, merge or consolidate with any other corporation, or sell, lease or otherwise dispose of
all or any part of its assets (other than in the ordinary course of business), except that, so long as no Default then exists or would result therefrom: 

	(i)
	Subsidiaries
which are not Material Subsidiaries may be liquidated or dissolved and their affairs wound up;

	(ii)
	The
Borrower or any Subsidiary may merge, consolidate or amalgamate with any other Person; provided,
that the Borrower or Subsidiary, as the case may be, is the surviving, continuing or resulting Person in such merger, consolidation or amalgamation and, in the case of a Subsidiary, continues to be a
Subsidiary; 

33

 

	(iii)
	any
Subsidiary may merge into the Borrower or another Subsidiary;

	(iv)
	any
Subsidiary may sell, lease or otherwise dispose of any of its assets (whether now owned or hereafter acquired and including shares of capital
stock, receivables and leasehold interests) to the Borrower or to another Subsidiary; and

	(v)
	the
Borrower may sell, lease or otherwise dispose of less than all of its assets (whether now owned or hereafter acquired and including shares of
capital stock, receivables and leasehold interests) to any Person, and any Subsidiary may sell, lease or otherwise dispose of all or any part of its assets to a Person other than the Borrower or
another Subsidiary (whether in connection with a merger, consolidation or amalgamation of such Subsidiary into a Person other than the Borrower or another Subsidiary or otherwise), in each case, for a
consideration which represents the fair market value of such assets (as determined in good faith by an Authorized Officer of such Subsidiary) of such Subsidiary at the time of such sale, lease or
other disposition; provided, that immediately after such sale, lease or other disposition and after giving effect thereto, the aggregate market value of
all assets so sold, leased or otherwise disposed of by AI and the Subsidiaries during any Fiscal Year does not exceed 10% of the consolidated assets of AI and its subsidiaries as shown in the
consolidated financial statements of AI and the Subsidiaries as at the end of the Fiscal Year next preceding the date on which such determination is made. 

        (b)    The
Borrower shall not, nor shall it permit any of its subsidiaries to, at any time, acquire any assets of or interests in any other Person for a total consideration in
excess of $250,000,000, unless the Borrower shall provide to the Administrative Agent and the Lenders, not less than 10 days prior to the proposed acquisition, calculations specifically
demonstrating compliance with the financial covenants in Section 5.15, both before and after giving effect to the proposed acquisition. 

        SECTION
5.12.    Investments and Purchases.    The Borrower will not, and the Borrower will not permit any Insurance
Subsidiary to, make or suffer to exist any Investments (including, without limitation, loans and advances to, and other Investments in, Subsidiaries), or commitments therefor, or to create any
Subsidiary or
to become or remain a partner in any partnership or joint venture, or to make any Purchases, except for Investments and Purchases approved by applicable insurance departments or commissioners, or as
otherwise permitted by, or not prohibited by, applicable insurance laws. 

        SECTION
5.13.    Liens.    The Borrower will not, nor will it permit any Subsidiary to, create, assume, incur, or
permit to exist or to be created, assumed, incurred or permitted to exist, directly or indirectly, any Lien on any of its Property, whether now owned or hereafter acquired, except for Permitted Liens. 

        SECTION
5.14.    Affiliates.    The Borrower will not, nor will it permit any Subsidiary to, sell or transfer any
assets to, or purchase or acquire any assets of, or otherwise engage in any transaction with, any of its respective Affiliates, except in the ordinary course of business and upon fair and reasonable
terms no less favorable than the Borrower or Subsidiary could obtain or could be entitled to in an arm's-length transaction with a Person which is not an Affiliate. 

        SECTION
5.15.    Financial Covenants.    AI on a consolidated basis with the Subsidiaries shall: 

        (a)    Minimum Net Worth.    Maintain a minimum Net Worth as of the last day of each Fiscal Quarter after the date
hereof of an amount at least equal to the sum of (a) 75% of the Net Worth of AI as of June 30, 2002, plus (b) 50% of positive Net
Income, if any, of AI for each Fiscal Quarter ending after the June 30, 2002, Fiscal Quarter and prior to the time of determination, plus (c) 75% of any equity issuance of AI or a
Subsidiary in connection with the acquisition of Trigon. 

        (b)    Total Debt to Capital Ratio.    At all times after the date hereof, maintain a Total Debt to Capital Ratio of
not more than 40%. 

        SECTION
5.16.    Change in Corporate Structure; Fiscal Year.    The Borrower shall not, nor shall it permit any of its
subsidiaries to, (a) permit any amendment or modification to be made to its certificate or articles of incorporation, by-laws or code of regulations which is materially adverse to
the interests of the Lenders or (b) change its Fiscal Year to end on any date other than December 31 of each year. 

        SECTION
5.17.    Inconsistent Agreements.    The Borrower shall not, nor shall it permit any of its subsidiaries to,
enter into any material indenture, agreement, instrument or other arrangement which, 

34

 

(a) directly or indirectly prohibits or restrains, or has the effect of prohibiting or restraining, or imposes materially adverse conditions upon, the Transactions or the Obligations, the
amending of this Agreement or the ability of any Material Subsidiary to (i) pay dividends or make other distributions on its capital stock, (ii) make loans or advances to the Borrower or
(iii) repay loans or advances from the Borrower (other than as required by applicable state Governmental Authorities), or (b) contains any provision which would be violated or breached
by the making of Loans or by the performance by the Borrower of any of the Obligations or the Transactions. 

        SECTION
5.18.    ERISA Compliance.    With respect to each Plan, neither the Borrower nor any Subsidiary nor any
member of the Controlled Group shall: 

        (a)    engage
in any "prohibited transaction" (as such term is defined in Section 406 of ERISA or Section 4975 of the Code) for which a civil penalty pursuant to
Section 502(i) of ERISA or a tax pursuant to Section 4975 of the Code in excess of $15,000,000 for such Plan and all other Plans in the aggregate (less any amount outstanding
under clause (b) or (c)) could be imposed; 

        (b)    (i)
incur any "accumulated funding deficiency" (as such term is defined in Section 302 of ERISA) in excess of $15,000,000 for such Plan and all other Plans in the
aggregate (less any amount outstanding under clause (a), (b)(ii) or (c)), whether or not waived, or (ii) permit any Unfunded Liability to exceed $15,000,000 for such Plan and all
other Plans in the aggregate (less any amount outstanding under clause (a), (b)(i) or (c)); 

        (c)    permit
the occurrence of any Termination Event which could result in a liability to such entity in excess of $15,000,000 for such Plan and all other Plans in the
aggregate (less any amount outstanding under clause (b) or (a)); 

        (d)    be
an "employer" (as such term is defined in Section 3(5) of ERISA) required to contribute to such Plan if it is a Multiemployer Plan or a "substantial employer"
(as such term is defined in Section 4001(a)(2) of ERISA) required to contribute to such Plan if it is a Multiemployer Plan if the same could reasonably be expected to have a Material Adverse
Effect; or 

        (e)    permit
the establishment or amendment of such Plan or fail to comply with the applicable provisions of ERISA and the Code with respect to such Plan which could result in
liability to the Borrower or any member of the Controlled Group which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

        SECTION
5.19.    Subsidiary Indebtedness.    The Borrower will not permit the aggregate principal amount of
Indebtedness of the Subsidiaries (excluding (i) any Indebtedness of AICI existing on the date hereof and (ii) any Indebtedness of a Subsidiary owed to the Borrower or another Subsidiary
and Contingent Obligations of any Subsidiary where the "other Person" referred to in the definition of "Contingent Obligations" is a Subsidiary, but including, without duplication, any guarantee (or
obligations having the economic effect of a guarantee) by a Subsidiary of Indebtedness of the Borrower) at any time to exceed $100,000,000. 

 
 

ARTICLE VI
  
    Events of Default    
  

        If
any of the following events ("Events of Default") shall occur: 

        (a)    any
representation or warranty made or deemed made by or on behalf of the Borrower to the Lenders or the Administrative Agent under or in connection with this Agreement
or the Transactions, or any certificate or information delivered in connection with this Agreement or the Transactions, shall be false in any material respect on the date as of which made, deemed
made, or delivered; 

        (b)    (i) the
Borrower shall fail to pay any principal of any Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed
for prepayment thereof or otherwise; or (ii) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause (i))
payable under this Agreement, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five days; 

35

 

        (c)    the
breach by the Borrower or any Subsidiary of any of the terms or provisions of Section 5.02, Section 5.03(a), Section 5.10, or Sections 5.11,
5.12, 5.13 (to the extent that a Lien was created, assumed, incurred or permitted to exist in violation thereof with the knowledge or approval of a Financial Officer) or 5.14 through 5.19, or by any
member of the Controlled Group of Section 5.18; 

        (d)    the
breach by the Borrower (other than breaches specified in clause (a), (b) or (c) of this Article) of any of the terms or provisions of this
Agreement which is not remedied within 30 days after the earlier of (i) first knowledge thereof by the Borrower and (ii) written notice from the Administrative Agent or any
Lender; 

        (e)    the
default by the Borrower or any Subsidiary in the performance of any term, provision or condition contained in any agreement or agreements under which any
Indebtedness aggregating in excess of $30,000,000 was created or is governed, or the occurrence of any other event or existence of any other condition, the effect of any of which is to cause, or to
permit the holder or holders of such Indebtedness to cause, such Indebtedness to become due prior to its stated maturity; or any such Indebtedness of the Borrower or any Subsidiary shall be declared
to be due and payable or required to be prepaid (other than by regularly scheduled payment) prior to the stated maturity thereof; 

        (f)    The
Borrower or any of its Material Subsidiaries shall (i) have an order for relief entered with respect to it under the Federal bankruptcy laws as now or
hereafter in effect, (ii) make an assignment for the benefit of creditors, (iii) apply for, seek, consent to, or acquiesce in, the appointment of a receiver, custodian, trustee,
examiner, liquidator or similar official for it or its Property, (iv) institute any proceeding seeking an order for relief under the Federal bankruptcy laws as now or hereafter in effect or
seeking to adjudicate it as bankrupt or insolvent, or seeking dissolution, winding up, liquidation, reorganization, rehabilitation, arrangement, adjustment or composition of it or its debts under any
law relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it,
(v) take any corporate action to authorize or effect any of the foregoing actions set forth in this clause (f), (vi) fail to contest in good faith any appointment or proceeding
described in clause (g) of this Article or (vii) become unable to pay, not pay, or admit in writing its inability to pay, its debts generally as they become due; 

        (g)    Without
the application, approval or consent of the Borrower or any of its Material Subsidiaries, a receiver, trustee, examiner, liquidator, conservator or similar
official shall be appointed for the Borrower or any of its Material Subsidiaries or its Property, or a proceeding described in clause (f)(iv) of this Article shall be instituted against
the Borrower or any of its Material Subsidiaries and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of thirty consecutive days; 

        (h)    Any
court, government or governmental agency shall condemn, seize or otherwise appropriate, or take custody or control of (each a
"Condemnation"), all or any portion of the Property of the Borrower and its subsidiaries which, when taken together with all other Property of the
Borrower and its subsidiaries so condemned, seized, appropriated, or taken custody or control of, during the twelve-month period ending with the month in which any such Condemnation occurs,
constitutes a Substantial Portion; 

        (i)    There
is entered against the Borrower or any of its subsidiaries (i) a final judgment or order for the payment of money in excess of $30,000,000 (or multiple
judgments or orders for the payment of an aggregate amount in excess of $30,000,000) which has not been paid, bonded or otherwise discharged within 30 days after such judgment becomes final, or
(ii) any non-monetary final judgment that has, or could reasonably be expected to have, a Material Adverse Effect which has not been bonded or discharged within 30 days after
such judgment becomes final and, in either case, such judgment or order has not been stayed on appeal or is not otherwise being appropriately contested in good faith; 

        (j)    any
License of AICI or any Insurance Subsidiary, the loss of which could reasonably be expected to have a Material Adverse Effect, (a) shall be revoked by the
Governmental Authority which issued such License, or any action (administrative or judicial) to revoke such License shall have been commenced against AICI or such Insurance Subsidiary and shall not
have been dismissed within 30 days after the commencement thereof, (b) shall be suspended by such Governmental Authority for a period in excess of 30 days, or (c) shall not
be reissued or renewed by such Governmental Authority upon the 

36

 

expiration thereof following application for such reinsurance or renewal by AICI or such Insurance Subsidiary; 

        (k)    The
Borrower or any Insurance Subsidiary shall be fined by or at the request of any state insurance regulatory agency as a result of such violation by the Borrower or
Insurance Subsidiary of such state's applicable insurance laws or the regulations promulgated in connection therewith and the imposition of such fine or the payment thereof could reasonably be
expected to have a Material Adverse Effect; 

        (l)    the
Borrower or any Insurance Subsidiary shall become subject to (a) any conservation or liquidation order, directive or mandate issued by any Governmental
Authority or (b) any other directive or mandate issued by any Governmental Authority which could reasonably be expected to have a Material Adverse Effect, which in either case is not stayed
within 10 days; or 

        (m)    a
Change in Control shall occur; 

then,
and in every such event (other than an event with respect to the Borrower described in clause (f) or (g) of this Article), and at any time thereafter during the continuance of such
event, the Administrative Agent at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or different times:
(i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which
case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with
accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described in clause (f) or (g) of this Article, the Commitments shall
automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall
automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. 

37

  

 
 

ARTICLE VII
  
    The Administrative Agent    
  

        Each of the Lenders hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf
and to exercise such powers as are delegated to the Administrative Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto. 

        The
bank serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were
not the Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary or other
Affiliate thereof as if it were not the Administrative Agent hereunder. 

        The
Administrative Agent shall not have any duties or obligations except those expressly set forth herein. Without limiting the generality of the foregoing, (a) the Administrative
Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take
any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby that the Administrative Agent is required to exercise in writing by
the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 8.02), and (c) except as expressly set forth
herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any Subsidiary that is
communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 8.02) or in
the absence of its own gross negligence or wilful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default, except with respect to defaults in the payment of
principal, interest, fees or other amounts required to be paid to the Administrative Agent for the account of the Lenders, unless and until written notice thereof is given to the Administrative Agent
by the Borrower or a Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in
connection with this Agreement, (ii) the contents of any certificate, report or other document delivered hereunder or in connection herewith, (iii) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement or any other agreement, instrument
or document, or (v) the satisfaction
of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. None of the Lenders
identified on the facing page or signature pages of this Agreement as a "syndication agent" or a "documentation agent" shall have any right, power, obligation, liability, responsibility or duty under
this Agreement other than those applicable to all Lenders as such. Without limiting the foregoing, none of the Lenders so identified shall have or be deemed to have any fiduciary relationship with any
Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders so identified in deciding to enter into this Agreement or in taking or not taking action hereunder. 

        The
Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or
other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower),
independent accountants 

38

 

and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 

        The
Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent.
The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions
of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. 

        Subject
to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any time by notifying the Lenders and
the Borrower. Upon any such resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor. If no successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its appointment as
Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to
its predecessor unless otherwise agreed between the Borrower and such successor. After the Administrative Agent's resignation hereunder, the provisions of this Article and Section 8.03 shall
continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any
of them while it was acting as Administrative Agent. 

        Each
Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this
Agreement, any related agreement or any document furnished hereunder or thereunder. 

 
 

ARTICLE VIII
  
    Miscellaneous    
  

        SECTION
8.01.    Notices.    Except in the case of notices and other communications expressly permitted to be given by
telephone, all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
telecopy, as follows: 

        (a)    if
to the Borrower, to it at Anthem, Inc., 120 Monument Circle, Indianapolis, Indiana 46204, Attention of Treasurer (Telecopy
No. 317-488-6160); 

        (b)    if
to the Administrative Agent, to JPMorgan Chase Bank, Loan and Agency Services Group, One Chase Manhattan Plaza, 8th Floor, New York, New York 10081, Attention of
Monica Mikolajczyk (Telecopy No. (212) 552-7500), with a copy to JPMorgan Chase Bank, 270 Park Avenue, New York 10017, Attention of Robert Bottamedi (Telecopy No.
(212) 270-3279); and 

39

 

        (c)    if
to any other Lender, to it at its address (or telecopy number) set forth in its Administrative Questionnaire. 

        Any
party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto. All notices and other communications
given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt. 

        SECTION
8.02.    Waivers; Amendments.    (a)    No failure or delay by the Administrative Agent or any
Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps
to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent and the Lenders
hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by the Borrower
therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan shall not be construed as a waiver of any Default, regardless of whether the Administrative
Agent or any Lender may have had notice or knowledge of such Default at the time. 

        (b)    Neither
this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower
and the Required Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders; provided that no such agreement shall
(i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or reduce the rate of interest thereon, or reduce any
fees payable hereunder, without the written consent of each Lender affected thereby, (iii) postpone the scheduled date of payment of the principal amount of any Loan, or any interest thereon,
or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender
affected thereby, (iv) change Section 2.16(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, or
(v) change any of the provisions of this Section or the definition of "Required Lenders" or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or
modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender; provided further that
no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent hereunder without the prior written consent of the Administrative Agent. Notwithstanding the
foregoing, any provision of this Agreement may be amended by an agreement in writing entered into by the Borrower, the Required Lenders and the Administrative Agent if (i) by the terms of such
agreement the Commitment of each Lender not consenting to the amendment provided for therein shall terminate upon the effectiveness of such amendment and (ii) at the time such amendment becomes
effective, each Lender not consenting thereto receives payment in full of the principal of and interest accrued on each Loan made by it and all other amounts owing to it or accrued for its account
under this Agreement. 

        SECTION
8.03.    Expenses; Indemnity; Damage Waiver.    (a)    The Borrower shall pay (i) all
reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent, in connection with the syndication of the credit facilities provided for herein, the preparation and administration of this Agreement or any amendments, modifications or waivers
of the provisions hereof (whether or not the transactions contemplated hereby or thereby shall be consummated) and (ii) all out-of-pocket expenses incurred by the
Administrative Agent or any Lender, including the fees, charges and disbursements of any counsel for the Administrative Agent or any Lender, in connection with the enforcement or 

40

 

protection of its rights in connection with this Agreement, including its rights under this Section, or in connection with the Loans made hereunder, including all such
out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans. 

        (b)    The
Borrower shall indemnify the Administrative Agent and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an
"Indemnitee") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the
fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or
delivery of this Agreement or any agreement or instrument contemplated hereby, the performance by the parties hereto of their respective obligations hereunder or the consummation of the Transactions
or any other transactions contemplated hereby, (ii) any Loan or the use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any
property owned or operated by the Borrower or any of its subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its subsidiaries, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party
thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or
related expenses resulted from the gross negligence or wilful misconduct of such Indemnitee. 

        (c)    To
the extent that the Borrower fails to pay any amount required to be paid by it to the Administrative Agent under paragraph (a) or (b) of this Section,
each Lender severally agrees to pay to the Administrative Agent such Lender's Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment was
incurred) of such unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against the Administrative Agent in its capacity as such. 

        (d)    To
the extent permitted by applicable law, the Borrower shall not assert, and the Borrower hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or any agreement or instrument
contemplated hereby, the Transactions, any Loan or the use of the proceeds thereof. 

        (e)    All
amounts due under this Section shall be payable promptly after written demand therefor. 

        SECTION
8.04.    Successors and Assigns.    (a)    The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly
contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

        (b)    Any
Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the
Loans at the time owing to it); provided that (i) except in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund,
the Borrower and the Administrative Agent must give their prior written consent to such assignment (which consent shall not be unreasonably withheld or delayed), (ii) except in the case of an
assignment to a Lender or an Affiliate of a Lender or an 

41

 

assignment of the entire remaining amount of the assigning Lender's Commitment, the amount of the Commitment of the assigning Lender subject to each such assignment (determined as of the date the
Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unless the Borrower and the Administrative Agent otherwise
consent, (iii) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement, except that this
clause (iii) shall not apply to rights in respect of outstanding Competitive Loans, (iv) the parties to each assignment shall execute and deliver to the Administrative Agent an
Assignment and Acceptance, together with a processing and recordation fee of $3,500, and (v) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an
Administrative Questionnaire; and provided further that any consent of the Borrower otherwise required under this paragraph shall not be required if a
Default has occurred and is continuing. Subject to acceptance and recording thereof pursuant to paragraph (d) of this Section, from and after the effective date specified in each Assignment and
Acceptance the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case
of an Assignment and Acceptance covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to
the benefits of Sections 2.13, 2.14, 2.15 and 8.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (e) of this Section. 

        (c)    The
Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices in The City of New York a copy of each Assignment and
Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans owing to, each Lender pursuant to the
terms hereof from time to time (the "Register"). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 

        (d)    Upon
its receipt of a duly completed Assignment and Acceptance executed by an assigning Lender and an assignee, the assignee's completed Administrative Questionnaire
(unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment required by
paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Acceptance and record the information
contained therein in the Register. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph. 

        (e)    Any
Lender may, without the consent of the Borrower or the Administrative Agent, sell participations to one or more banks or other entities (a
"Participant") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or
the Loans owing to it); provided that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in 

42

 

connection with such Lender's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall
retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to
Section 8.02(b) (ii) or (iii) that affects such Participant. Subject to paragraph (f) of this Section, the Borrower agrees that each Participant shall be entitled to the
benefits of Sections 2.13, 2.14 and 2.15 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. 

        (f)    A
Participant shall not be entitled to receive any greater payment under Section 2.13 or 2.15 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower's prior written consent. A Participant that would be a Foreign
Lender if it were a Lender shall not be entitled to the benefits of Section 2.15 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for
the benefit of the Borrower, to comply with Section 2.15(e) as though it were a Lender. 

        (g)    Any
Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including
any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest;  provided that no such pledge or
assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such
pledgee or assignee for such Lender as a party hereto. 

        (h)    Notwithstanding
anything to the contrary contained herein, any Lender (a "Granting Lender") may grant to a special
purpose funding vehicle utilized by such Granting Lender (a "SPC"), identified as such in writing from time to time by the Granting Lender to the
Administrative Agent and the Borrower, the option to provide to the Borrower all or any part of any Loan that such Granting Lender would otherwise be obligated to make to the Borrower pursuant to this
Agreement; provided that (i) nothing herein shall constitute a commitment by any SPC to make any Loan, (ii) if a SPC elects not to
exercise such option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of a Loan by a
SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees that no SPC shall be
liable for any indemnity or similar payment obligation under this Agreement (all liability for which shall remain with the Granting Lender). In furtherance of the foregoing, each party hereto hereby
agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other
senior indebtedness of any SPC, it will not institute against, or join any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings under the laws of the United States or any State thereof. In addition, notwithstanding anything to the contrary contained in this Agreement, any SPC may (i) with prior notice to,
but without the prior written consent of, the Borrower and the Administrative Agent and without paying any processing fee therefor, assign all or a portion of its interests in any Loans to its
Granting Lender or to any financial institutions providing liquidity and/or credit support to or for the account of such SPC to support the funding or maintenance of Loans and (ii) disclose on
a confidential basis any non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement
to such SPC. This subsection (h) may not be amended without the written consent of each SPC which has Loans outstanding at the time such amendment is made. Except for its obligation to fund any
portion of its 

43

 

Commitment that is actually funded by an SPC, the obligations of the Granting Lender under this Agreement shall remain unchanged, the Granting Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, and the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with the Granting Lender in
connection with the Granting Lender's rights and obligations under this Agreement. Except as otherwise provided in this subsection (h), the Granting Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision of this Agreement. 

        SECTION
8.05.    Survival.    All covenants, agreements, representations and warranties made by the Borrower herein
and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the
execution and delivery of this Agreement and the making of any Loans, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent or
any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as
the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid and so long as the Commitments have not expired or
terminated. The provisions of Sections 2.13, 2.14, 2.15 and 8.03 and Article VII shall survive and remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination of the Commitments or the termination of this Agreement or any provision hereof. 

        SECTION
8.06.    Counterparts; Integration; Effectiveness.    This Agreement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and any
separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all
previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been
executed by
the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter
shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy
shall be effective as delivery of a manually executed counterpart of this Agreement. 

        SECTION
8.07.    Severability.    Any provision of this Agreement held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the
remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 

        SECTION
8.08.    Right of Setoff.    If an Event of Default shall have occurred and be continuing, each Lender and
each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower against any of and all the obligations of
the Borrower now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such
obligations may be unmatured. The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have. 

44

 

        SECTION
8.09.    Governing Law; Jurisdiction; Consent to Service of Process.    (a)    This Agreement shall
be construed in accordance with and governed by the law of the State of New York. 

        (b)    The
Borrower hereby irrevocably and unconditionally submits, for itself and its Property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right
that the Administrative Agent or any Lender may otherwise have to bring any action or proceeding relating to this Agreement against the Borrower or its Properties in the courts of any jurisdiction. 

        (c)    The
Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have
to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

        (d)    Each
party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 8.01. Nothing in this Agreement will affect
the right of any party to this Agreement to serve process in any other manner permitted by law. 

        SECTION
8.10.    WAIVER OF JURY TRIAL.    EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

        SECTION
8.11.    Headings.    Article and Section headings and the Table of Contents used herein are for convenience
of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 

        SECTION
8.12.    Confidentiality.    Each of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates' directors, officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal
process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the
enforcement of rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this 

45

 

Agreement, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or
(ii) becomes available to the Administrative Agent or any Lender on a nonconfidential basis from a source other than the Borrower. For the purposes of this Section,
"Information" means all information received from the Borrower relating to the Borrower or its business, other than any such information that is
available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower; provided that, in the case of information received from the Borrower after the date
hereof, such
information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential
information. 

        SECTION
8.13.    Interest Rate Limitation.    Notwithstanding anything herein to the contrary, if at any time the
interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the
"Charges"), shall exceed the maximum lawful rate (the "Maximum Rate") which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges
payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a
result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate
therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender. 

46

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written. 

	 	 	ANTHEM, INC,
	

 	
 	

    by	

 
	 	 	 	
 Name:

Title:
	

 	
 	

JPMORGAN CHASE BANK, individually and as Administrative Agent,
	

 	
 	

    by	

 
	 	 	 	
 Name:

Title:
	

 	
 	

BANK OF AMERICA, N.A.,

individually and as Co-Syndication Agent,
	

 	
 	

    by	

 
	 	 	 	
 Name:

Title:
	

 	
 	

WACHOVIA BANK, N.A.,

individually and as Co-Syndication Agent,
	

 	
 	

    by	

 
	 	 	 	
 Name:

Title:
	

 	
 	

FLEET NATIONAL BANK,

individually and as Documentation Agent,
	

 	
 	

    by	

 
	 	 	 	
 Name:

Title:
	

 	
 	

Name of Institution:
	

 	
 	

    by	

 
	 	 	 	
 Name:

Title:

47

QuickLinks

TABLE OF CONTENTS

ARTICLE I Definitions

ARTICLE II The Credits

ARTICLE III Representations and Warranties

ARTICLE IV Conditions

ARTICLE V Covenants

ARTICLE VI Events of Default

ARTICLE VII The Administrative Agent

ARTICLE VIII Miscellaneous

ARTICLE I Definitions

ARTICLE II The Credits

ARTICLE III Representations and Warranties

ARTICLE IV Conditions

ARTICLE V Covenants

ARTICLE VI Events of Default

ARTICLE VII The Administrative Agent

ARTICLE VIII MiscellaneousQuickLinks
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Exhibit 4.14  

ANTHEM, INC.

and

THE
BANK OF NEW YORK 

as
Trustee 

FIRST
SUPPLEMENTAL INDENTURE 

Dated
as of July     •    , 2002 

Supplement
to Indenture dated as of July     •    , 2002 

      %
Notes due 2005 

      %
Notes due 2012 

      %
Notes due 2032 

 
 

FIRST SUPPLEMENTAL INDENTURE    
  

        FIRST SUPPLEMENTAL INDENTURE, dated as of July     •    , 2002, by and between ANTHEM, INC., an Indiana corporation
(hereinafter called the "Company"), having its principal office at 120 Monument Circle, Indianapolis, Indiana, 46204 and THE BANK OF NEW YORK, a New York banking corporation (hereafter called the
"Trustee"), having a Corporate Trust Office at 101 Barclay Street, New York, New York 10286, Attn: Corporate Trust Division—Corporate Finance Unit, as Trustee under the Indenture (as
hereinafter defined). 

RECITALS OF THE COMPANY  

        WHEREAS, the Company has heretofore executed and delivered to the Trustee the Indenture, dated as of July     , 2002 (herein called the
"Indenture"), providing for the issuance from time to time of one or more series of the Company's unsecured debentures, notes or other evidences of indebtedness (herein and in the Indenture called the
"Securities"), the forms and terms of which are to be determined as set forth in Sections 201 and 301 of the Indenture; and 

        WHEREAS,
Section 901 of the Indenture provides, among other things, that the Company and the Trustee may enter into indentures supplemental to the Indenture for, among other
things, the purpose of establishing the terms of Securities of any series; and 

        WHEREAS,
the Company desires to create three series of the Securities in a total aggregate principal amount of U.S.$950,000,000, which three series shall be designated the
    % Notes due 2005, the    % Notes due 2012 and the    % Notes due 2032 respectively (the "2005 Notes", the "2012 Notes" and the "2032 Notes", respectively, and
collectively, the "Notes"), and all action on the part of the Company necessary to authorize the issuance of the Notes under the Indenture and this First Supplemental Indenture has been duly taken;
and 

        WHEREAS,
all acts and things necessary to make the Notes, when executed by the Company and authenticated and delivered by the Trustee as provided in the Indenture and this First
Supplemental Indenture, the valid and binding obligations of the Company and to constitute these presents a valid
and binding supplemental indenture and agreement according to its terms, have been done and performed; 

        NOW,
THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH: 

        That
in consideration of the premises and the issuance of the Notes, the Company covenants and agrees with the Trustee, for the equal and proportionate benefit of all Holders of the
Notes, as follows: 

 
 

ARTICLE ONE    
    
    CREATION OF THE NOTES    
  

        Section 1.1.    Designation of Series.    Pursuant to the terms hereof and Sections 201 and 301 of the
Indenture, the Company hereby creates three series of Securities designated as the "    •    % Notes due 2005,    •    % Notes due 2012
and    •    % Notes due 2032" respectively, which Notes shall be deemed "Securities" for all purposes under the Indenture. 

        Section 1.2.    Form of Notes.    (a) The form of the 2005 Notes shall be substantially in the form set
forth in Exhibit A attached hereto, which is incorporated herein and made part hereof. The 2005 Notes shall bear interest, be payable and have
such other terms as are stated in said form of 2005 Notes attached hereto as Exhibit A and in the Indenture, as supplemented by this First
Supplemental Indenture. The Stated Maturity of the 2005 Notes shall be    •    , 2005. 

        (b)  The
form of the 2012 Notes shall be substantially in the form set forth in Exhibit B attached hereto which is
incorporated herein and made part hereof. The 2012 Notes shall bear interest, be payable and have such other terms as are stated in said form of 2012 Notes attached hereto as  Exhibit B and in the
Indenture, as supplemented by this First Supplemental Indenture. The Stated Maturity of the 2012 Notes shall be
    •    , 2012. 

 

        (c)  The
form of the 2032 Notes shall be substantially in the form set forth in Exhibit C attached hereto which is
incorporated herein and made part hereof. The 2032 Notes shall bear interest, be payable and have such other terms as are stated in said form of 2032 Notes attached hereto as  Exhibit C and in the
Indenture, as supplemented by this First Supplemental Indenture. The Stated Maturity of the 2032 Notes shall be
    •    , 2032. 

        Section 1.3.    Limit on Amount of Series.    The 2005 Notes shall not exceed
U.S.$                        in aggregate
principal amount Outstanding under the Indenture at any time; the 2012 Notes shall not exceed U.S.$                        in
aggregate principal amount Outstanding under the Indenture at any time; and the
2032 Notes shall not exceed U.S.$                        in aggregate principal amount Outstanding under the Indenture at any
time. The Notes may, upon the execution and delivery of this First Supplemental
Indenture or from time to time thereafter, be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver said Notes upon the
delivery of a Company Order. 

        Section 1.4.    Redemption.    The Notes shall not be redeemable at the option of the Company prior to their
respective Stated Maturities. 

        Section 1.5.    No Sinking Fund.    No sinking fund will be provided with respect to the Notes. 

        Section 1.6.    Notes Not Convertible or Exchangeable.    The Notes will not be convertible or exchangeable for
other securities or property. 

        Section 1.7.    Issuance of Notes; Selection of Depository.    The Notes shall be issued as Global Securities
in registered form, without coupons. The initial Depository for the Notes shall be The Depository Trust Company. 

        Section 1.8.    No Additional Amounts.    No Additional Amounts shall be payable with respect to the Notes. 

 
 

ARTICLE TWO    
    
    APPOINTMENT OF THE TRUSTEE AS AGENT    
  

        Section 2.1.    Appointment of Trustee.    Pursuant and subject to the Indenture, the Company hereby
constitutes the Trustee to act as the principal Paying Agent for the Notes, effective upon execution and delivery of this First Supplemental Indenture. By execution, acknowledgment and delivery of
this First Supplemental Indenture, the Trustee hereby accepts appointment as Paying Agent with respect to the Notes, and agrees to serve as Paying Agent upon the terms and conditions set forth in the
Indenture and in this First Supplemental Indenture. Pursuant to Section 1002 of the Indenture, the Company hereby designates the Corporate Trust Office of the Trustee as the office of the
Company where the Notes may be presented or surrendered for payment, where Notes may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in
respect of the Notes, the Indenture and this First Supplemental Indenture may be served. The Company hereby appoints the Trustee as its agent for all such purposes and the Trustee hereby accepts its
appointment for such purposes. 

        Section 2.2.    Rights, Powers, Duties and Obligations of the Trustee.    Any rights, powers, duties and
obligations by any provisions of the Indenture conferred or imposed upon the Trustee shall, insofar as permitted by law, be conferred or imposed upon and exercised or performed by the Trustee with
respect to the Notes. 

2

 

 
 

ARTICLE THREE    
    
    DEFEASANCE    
  

        Section 3.1.    Defeasance Applicable to Notes.    Pursuant to Section 301(15) and Section 1301
of the Indenture, the Company, will have (i) the option of defeasance of the Notes under Section 1302 of the Indenture and (ii) the option of covenant defeasance under
Section 1303, in each case, upon the terms and conditions contained in Article Thirteen of the Indenture. 

 
 

ARTICLE FOUR    
    
    MISCELLANEOUS    
  

        Section 4.1.    Execution as Supplemental Indenture.    This First Supplemental Indenture is executed and shall
be construed as an indenture supplemental to the Indenture and, as provided in the Indenture, this First Supplemental Indenture forms a part thereof. Except as herein expressly otherwise defined, the
use of the terms and expressions herein is in accordance with the definitions, uses and constructions contained in the Indenture. 

        Section 4.2.    Responsibility for Recitals, Etc.    The recitals herein and in the Notes (except in the
Trustee's certificate of authentication) shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representations as
to validity or sufficiency of this First Supplemental Indenture or of the Notes. The Trustee shall not be accountable for the use or application by the Company of the Notes or of the proceeds thereof. 

        Section 4.3.    Provisions Binding on Company's Successors.    All the covenants, stipulations, promises and
agreements of the Company contained in this First Supplemental Indenture shall bind the Company's successors and assigns whether so expressed or not. 

        Section 4.4.    New York Contract.    This First Supplemental Indenture and each note shall be governed by and
construed in accordance with the laws of the State of New York (including without limitation Section 5-1401 of the New York General Obligations Law or any successor to such
statute). 

        Section 4.5.    Execution and Counterparts.    This First Supplemental Indenture may be executed with
counterpart signature pages or in any number of counterparts, each of which shall be an original but such counterparts shall together constitute but one and the same instrument. 

        Section 4.6.    Capitalized Terms.    Capitalized terms not otherwise defined in this First Supplemental
Indenture shall have the respective meanings assigned to them in the Indenture. 

        Section 4.7.    Satisfaction and Discharge.    The Company shall be deemed to have satisfied all of its
obligations under this First Supplemental Indenture upon compliance with the provisions of Section 1302 of the Indenture relating to defeasance of the Notes. 

3

 

        IN
WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed by their respective officers hereunto duly authorized, all as of the day and year
first above written. 

	 	 	 	ANTHEM, INC.
	

Dated:	

July •, 2002	
 	

By:	

    
 Name:

Title:
	

Attest:	

    
	
 	

 	

 
	 	Name:

Title:	 	 	 
	

 	

 	
 	

THE BANK OF NEW YORK,

as Trustee
	

 	

 	
 	

By:	

    
 Name:

Title:

4

  

 
 

EXHIBIT A TO FIRST SUPPLEMENTAL INDENTURE    
    
    FORM OF 2005 NOTE    
  

        Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or its agent for
registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC
(and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

        THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT
BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITORY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

ANTHEM, INC.  

     •    % NOTE DUE 2005  

	No.	 	 	 	 	U.S.$	 
	CUSIP NO. •	 	 	 	 	 

        Anthem, Inc.,
a corporation duly organized and existing under the laws of the State of Indiana (herein called the "Company", which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay to                        , or registered assigns,
the principal sum of    •    Dollars on
    •    , 2005, and to pay interest thereon from    •    , 2002 or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, semi-annually on    •    and    •    in each year, commencing
    •    , 2002, at the rate of    •    % per annum, until the principal hereof is paid or made available for payment  provided,
however that any principal and premium, and any such installment of interest, which is overdue shall bear interest at the rate of
            % per annum (to the extent that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment,
and
such interest shall be payable on demand. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the
    •    or    •    (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

        Payment
of the principal of (and premium, if any) and interest on this Security will be made at the office or agency of the Company maintained for that purpose in The City of New York,
New York, in such coin or currency of the United States of America as at the time of payment is legal tender for 

A-1

 

payment of public and private debts; provided, however, that at the option of the Company payment of
interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register. 

        Reference
is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth
at this place. 

        Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose. 

        IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal. 

	 	 	 	ANTHEM, INC.
	

Dated:	

 	
 	

By:	

    
 Name:

Title:
	Attest:	    
	 	 	 
	 	Name:

Title:	 	 	 

CERTIFICATE OF AUTHENTICATION  

        This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

	 	 	The Bank of New York,

As Trustee
	

 	
 	

By:	

    
 Authorized Signatory:

[FORM OF REVERSE]  

        This Security is one of a duly authorized issue of securities of the Company (herein called the "Securities"), issued and to be issued in one or more series under
an Indenture, dated as of July     •    , 2002 (herein called the "Indenture", which term shall have the meaning assigned to it in such instrument), between the
Company and The Bank of New York, as Trustee (herein called the "Trustee", which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement
of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the series designated on the face hereof, limited in aggregate principal amount to $    •    . 

        The
Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security or certain restrictive covenants and Events of Default with respect to this
Security, in each case upon compliance with certain conditions set forth in the Indenture. 

A-2

 

        If
an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture. 

        The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders
of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security
issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

        As
provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time
Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall
not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute
any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the
enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 

        No
reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

        As
provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more
new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

        The
Securities of this series are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and subject
to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same. 

        No
service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. 

A-3

 

        Prior
to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 

        All
terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

A-4

  

 
 

EXHIBIT B TO FIRST SUPPLEMENTAL INDENTURE    
    
    FORM OF 2012 NOTE    
  

        Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or its agent for
registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC
(and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

        THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT
BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITORY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

        Anthem, Inc.,
a corporation duly organized and existing under the laws of the State of Indiana (herein called the "Company", which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay to                        , or registered assigns,
the principal sum of    •    Dollars on
    •    , 2012, and to pay interest thereon from    •    , 2002 or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, semi-annually on    •    and    •    in each year, commencing
    •    , 2002, at the rate of    •    % per annum, until the principal hereof is paid or made available for payment  provided,
however that any principal and premium, and any such installment of interest, which is overdue shall bear interest at the rate of
            % per annum (to the extent that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment,
and
such interest shall be payable on demand. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the
    •    or    •    (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof
shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

        Payment
of the principal of (and premium, if any) and interest on this Security will be made at the office or agency of the Company maintained for that purpose in The City of New York,
New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided,
however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the
Security Register. 

        Reference
is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth
at this place. 

B-1

 

        Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose. 

        IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal. 

	 	 	 	ANTHEM, INC.
	

Dated:	

 	
 	

By:	

    
 Name:

Title:
	

Attest:	

    
	
 	

 	

 
	 	Name:

Title:	 	 	 

CERTIFICATE OF AUTHENTICATION  

        This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

	 	 	The Bank of New York,

As Trustee
	

 	
 	

By:	

    
 Authorized Signatory

[FORM OF REVERSE]  

        This Security is one of a duly authorized issue of securities of the Company (herein called the "Securities"), issued and to be issued in one or more series under
an Indenture, dated as of July     •    , 2002 (herein called the "Indenture", which term shall have the meaning assigned to it in such instrument), between the
Company and The Bank of New York, as Trustee (herein called the "Trustee", which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement
of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the series designated on the face hereof, limited in aggregate principal amount to $    •    . 

        The
Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security or certain restrictive covenants and Events of Default with respect to this
Security, in each case upon compliance with certain conditions set forth in the Indenture. 

        If
an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture. 

        The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders
of the 

B-2

 

Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time
Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

        As
provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in principal amount of
Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice,
request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest
hereon on or after the respective due dates expressed herein. 

        No
reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

        As
provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more
new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

        The
Securities of this series are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and subject
to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same. 

        No
service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. 

        Prior
to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 

        All
terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

B-3

  

 
 

EXHIBIT C TO FIRST SUPPLEMENTAL INDENTURE    
    
    FORM OF 2032 NOTE    
  

        Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or its agent for
registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC
(and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

        THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT
BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITORY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

        Anthem, Inc.,
a corporation duly organized and existing under the laws of the State of Indiana (herein called the "Company", which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay to                        , or registered assigns,
the principal sum of    •    Dollars on
    •    , 2032, and to pay interest thereon from    •    , 2002 or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, semi-annually on    •    and    •    in each year, commencing
    •    , 2002, at the rate of    •    % per annum, until the principal hereof is paid or made available for payment  provided,
however that any principal and premium, and any such installment of interest, which is overdue shall bear interest at the rate of
            % per annum (to the extent that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment,
and
such interest shall be payable on demand. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the
    •    or    •    (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof
shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

        Payment
of the principal of (and premium, if any) and interest on this Security will be made at the office or agency of the Company maintained for that purpose in The City of New York,
New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided,
however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the
Security Register. 

        Reference
is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth
at this place. 

C-1

 

        Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose. 

        IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal. 

	 	 	 	ANTHEM, INC.
	

Dated:	

 	
 	

By:	

    
 Name:

Title:
	

Attest:	

    
	
 	

 	

 
	 	Name:

Title:	 	 	 

CERTIFICATE OF AUTHENTICATION  

        This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

	 	 	The Bank of New York,

As Trustee
	

 	
 	

By:	

    
 Authorized Signatory

[FORM OF REVERSE]  

        This Security is one of a duly authorized issue of securities of the Company (herein called the "Securities"), issued and to be issued in one or more series under
an Indenture, dated as of July     •    , 2002 (herein called the "Indenture", which term shall have the meaning assigned to it in such instrument), between the
Company and The Bank of New York, as Trustee (herein called the "Trustee", which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement
of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the series designated on the face hereof, limited in aggregate principal amount to $    •    . 

        The
Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security or certain restrictive covenants and Events of Default with respect to this
Security, in each case upon compliance with certain conditions set forth in the Indenture. 

        If
an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture. 

        The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders
of the 

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Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time
Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

        As
provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in principal amount of
Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice,
request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest
hereon on or after the respective due dates expressed herein. 

        No
reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

        As
provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more
new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

        The
Securities of this series are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and subject
to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same. 

        No
service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. 

        Prior
to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 

        All
terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

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QuickLinks

FIRST SUPPLEMENTAL INDENTURE

ARTICLE ONE CREATION OF THE NOTES

ARTICLE TWO APPOINTMENT OF THE TRUSTEE AS AGENT

ARTICLE THREE DEFEASANCE

ARTICLE FOUR MISCELLANEOUS

EXHIBIT A TO FIRST SUPPLEMENTAL INDENTURE FORM OF 2005 NOTE

EXHIBIT B TO FIRST SUPPLEMENTAL INDENTURE FORM OF 2012 NOTE

EXHIBIT C TO FIRST SUPPLEMENTAL INDENTURE FORM OF 2032 NOTE

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