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Exhibit 10.22  

 
 

WELLPOINT HEALTH NETWORKS INC.
  OFFICER CHANGE-IN-CONTROL PLAN
  (As amended and restated through December 4, 2001)    
  

        This WellPoint Health Networks Inc. Officer Change-in-Control Plan (the "Plan") is designed to provide officers of WellPoint Health
Networks Inc. ("WellPoint" or the "Company") and/or Affiliates of WellPoint with benefits in the event of a Change-in-Control. Except to the extent provided herein, the
Plan, which was originally adopted by the Board of Directors as of February 12, 1998, replaced any similar plan previously in effect as of such date of adoption providing for monetary or other
compensation to any officer in the event of a change in control. This Plan has been further amended and restated as of October 27, 1998, as of October 18, 2001, and, as provided herein,
as of December 4, 2001. 

 
 

ARTICLE I
  DEFINITIONS    
  

        Unless otherwise indicated, capitalized terms used herein shall have the following meaning: 

        "Affiliate"
means an entity that is linked to WellPoint by a 51% or greater chain of ownership. For this purpose, ownership is determined by applying the principles of Section 414
of the Code and by substituting a 51% control test for an 80% control test. 

        "Affiliated
Group" means WellPoint and all of its Affiliates. 

        "Base
Salary" means a Participant's highest annualized base salary, in the aggregate, payable from one or more member of the Affiliated Group at any time during the period commencing
five years before the announcement of the relevant Change in Control and ending immediately preceding the Participant's Termination Date or, if earlier and solely for purposes of computing the Change
in Control Completion Bonus under section 2.3, the date of the Change in Control. 

        "CEO"
means the Chief Executive Officer of WellPoint or his delegate. 

        "Change
in Control" shall mean one or more of the following that occurs within the term of the Plan: 

	(i)
	The
acquisition, directly or indirectly by any person or related group of persons (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act), but other than WellPoint or a person that directly or indirectly controls, is controlled by, or is under, control with the Company, of beneficial ownership (as defined in
Rule 13d-3 of the Exchange Act) of securities of the Company that results in such person or related group of persons beneficially owning securities representing 40% or more of the
combined voting power of the Company's then-outstanding securities;

	(ii)
	A
merger, recapitalization, consolidation or similar transaction to which WellPoint is a party or the sale, transfer or other disposition of all or
substantially all of the Company's assets if, in either case, the beneficial owners of WellPoint's securities immediately before the transaction do not have, immediately after the transaction,
beneficial ownership of securities representing at least 60% of the combined voting power of the then-outstanding securities of the surviving entity or the entity acquiring WellPoint's
assets, as the case may be, or a parent thereof;

	(iii)
	A
merger, recapitalization, consolidation or similar transaction to which WellPoint is a party or the sale, transfer or other disposition of all or
substantially all of the Company's assets if, 

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in
either case, the directors of WellPoint immediately prior to consummation of the transaction do not, upon consummation of the transaction, constitute at least a majority of the board of directors
of the surviving entity or the entity acquiring WellPoint's assets, as the case may be, or a parent thereof (for this purpose, any change in director composition that is anticipated or pursuant to an
understanding or agreement in connection with a transaction will be deemed to have occurred at the time of the transaction); or 

	(iv)
	A
change in the composition of the Board of Directors of WellPoint (the "Board") over a period of thirty-six (36) consecutive months
or less such that a majority of the Board members ceases by reason of one or more contested elections for Board membership, to be comprised of individuals who either (a) have been Board members
since the beginning of such period or (b) have been elected or nominated for election as Board members during such period by at least a majority of the Board members
described in clause (a) who were still in office at the time the Board approved such election or nomination. 

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

        "Committee"
shall mean the Compensation Committee of the Board of Directors of WellPoint, whose membership shall be comprised solely of independent directors of WellPoint and to which
the CEO shall report periodically regarding actions taken under this Plan. 

        "Constructive
Termination" means one or more of the following: 

	(i)
	A
material reduction in the duties, responsibilities, status, reporting responsibilities, titles or offices that a Participant had with the Affiliated
Group immediately before such reduction;

	(ii)
	Reduction
by more than 10% of the total annual cash compensation (including base salary and target bonuses) that a Participant was eligible to receive
from all members of the Affiliated Group immediately before the reduction except a reduction that both (a) is part of, and consistent with, an across-the-board reduction
in the salaries of senior officers of the Affiliated Group and (b) is not implemented on or after, or in contemplation of, a Change-In-Control;

	(iii)
	A
change in the Participant's principal place of employment with the Affiliated Group such that the Participant's one-way commute will be
increased by more than 35 miles; or

	(iv)
	A
requirement that the Participant spend an average of two or more days per week at a place of employment other than his or her principal place of
employment if the average ground commute to such additional place of employment from the Participant's primary residence, during normal commute hours, is longer than two hours; provided that the
Participant has not, in advance and in writing, agreed to such requirement in connection with assuming or retaining a specific position;

	(v)
	The
failure of any successor to WellPoint by merger, consolidation or acquisition of all or substantially all of the business of WellPoint to assume
WellPoint's obligations under this Plan. 

        However,
a Constructive Termination will not be deemed to have occurred unless (A) within sixty (60) days of the occurrence that the Participant deems to be a Constructive
Termination, the Participant notifies WellPoint in writing that he or she has experienced a Constructive Termination, which notice describes the event that the Participant believes constitutes a
Constructive Termination, (B) WellPoint
has not, within fifteen (15) days of receipt of such notice, corrected the circumstance that would otherwise result in a Constructive Termination, and (C) the Participant terminates his
or her employment within ninety (90) days of such 15-day period. 

        "Exchange
Act" means the Securities Exchange Act of 1934, as amended. 

2

 

        "Involuntary
Termination" means actual termination of a Participant's employment with the Affiliated Group other than (i) Termination for Cause, (ii) termination due to the
Participant's total and permanent disability, as that term is defined in the WellPoint long-term disability plan in effect on the date in question, or (iii) termination due to the
Participant's death. 

        "Participant"
means any person holding the title of Staff Vice President, Regional Vice President or Vice President or higher with WellPoint or any member of the Affiliated Group and any
other person as may be designated from time to time by the CEO; provided, however, that it shall not include (i) any person covered by an employment agreement with any member of the Affiliated
Group on his or her Termination Date unless such person's employment agreement otherwise provides; and (ii) unless otherwise designated by the CEO, any other position, whether or not the
position contains the phrase "Vice President, which is not considered to be an officer position of the Affiliated Group or is not entitled to participate in benefits generally reserved for officers of
the Affiliated Group. 

        "Plan
Bonus" means, for each Participant, an amount equal to an amount equal to (i) multiplied by (ii) multiplied by (iii) where: 

        (i)    equals
the Participant's Base Salary; 

        (ii)  equals
the percentage, for the fiscal year occurring in whole or in part during the period commencing five years before the announcement of the relevant Change in
Control and ending immediately before the Participant's Termination Date (or, if earlier and solely for purposes of determining the Change in Control Completion Bonus under Section 2.3, the
date of the Change in Control) for which such percentage is the highest, that the Participant's Target Bonus for such fiscal year represents as a percentage of such Participant's annual base salary
for such fiscal year; and 

        (iii)  equals
the greater of (A) 100% or (B) the average percentage, for the two consecutive fiscal years within the period commencing five years before the
announcement of the relevant Change in Control and ending immediately before the Participant's Termination Date (or, if earlier and solely for purposes of determining the Change in Control Completion
Bonus under Section 2.3, the date of the Change in
Control) for which such average percentage is the highest, that the Participant's actual annual bonus for a fiscal year represented as a percentage of the participant's annual base salary for such
fiscal year. 

        "Target
Bonus" means the Participant's target bonus for any fiscal year under WellPoint's then-applicable annual management incentive plan, or any other similar annual
incentive plan maintained by a member of the Affiliated Group. 

        "Termination
Date" is the first date that a Participant is subject to a Constructive Termination or an Involuntary Termination. 

        "Termination
for Cause" means termination of the Participant's employment with the Affiliated Group by reason of (i) willful engagement by a person in gross misconduct injurious
to WellPoint or the commission by a person of any act of gross negligence or malfeasance with respect to a person's duties incident to employment; (ii) willful failure by a person to attend to
the material duties assigned to such person by such person's supervisor; (iii) a commission by a person of any act of fraud, embezzlement or dishonesty against any member of the Affiliated
Group; or (iv) conviction of a person for any criminal offense involving fraud or dishonesty or any similar conduct which is injurious to the reputation of WellPoint. 

3

 

 
 

ARTICLE II
  BENEFITS UPON A CHANGE IN CONTROL    
  

        2.1    Prior Bonuses and Incentive Pay.    If a Change in Control occurs, each Participant shall be entitled to
receive as soon as practicable, subject to any election to defer such amount made by such Participant under a WellPoint deferral program, any bonus or other incentive compensation for a prior period
that was earned but theretofore remained unpaid. To the extent possible, the determination of such amount shall be made by the WellPoint Board of Directors before the Change in Control and, to the
extent that this is not possible, it shall be determined as soon as practicable following the Change in Control by those continuing members of the \board of directors of the continuing or successor
company that were members of the board of directors of WellPoint immediately before such Change in Control. 

        2.2    Guaranteed Annual Bonus.    If a Change in Control occurs, each Participant shall be entitled to a bonus for
the fiscal year in which the Change in Control occurs equal to the greatest of (i) the Participant's Target Bonus for such fiscal year, (ii) the average of the annual (or annualized)
bonus paid to the Participant for the preceding two fiscal years (or such shorter period as the Participant may have
been eligible for such an award) under WellPoint's then-applicable annual management incentive plan, or any other similar annual incentive plan maintained by a member of the Affiliated
Group or (iii) the bonus that is determined in the ordinary course under such a plan for the Participant for the fiscal year in which the Change in Control occurs. However, if the Participant
terminates employment by reason of an Involuntary Termination or Constructive Termination after the announcement of, or the execution of a definitive agreement for, a Change in Control and before the
end of the fiscal year in which the Change in Control occurs, the bonus payable under this Section 2.2.shall be prorated based on the Participant's actual period of employment with WellPoint or
an Affiliate during the fiscal year in which the Change in Control occurs. Any bonus payable under this Section 2.2 will be paid in a lump sum cash payment upon the earlier of the normal time
for payment of a bonus under the applicable incentive plan or as soon as practicable following the Participant's Termination Date. 

        2.3    Change in Control Completion Bonus.    If a Change in Control occurs, each Participant will be entitled to
payment of a Change in Control Completion Bonus equal to 100% of the Participant's Base Salary and Plan Bonus. One-half of the Completion Bonus will be paid one year following consummation
of the Change in Control provided the Participant remains employed with WellPoint, an Affiliate or successor through such date and the remaining one-half will be paid two years after
consummation of the Change in Control provided the Participant remains employed with WellPoint, an Affiliate or successor through such date. However, if a Participant terminates employment before the
scheduled payment date for an installment of such Completion Bonus, the Participant shall not be entitled to receive such installment. 

 
 

ARTICLE III
  SEVERANCE BENEFITS UPON A CHANGE IN CONTROL    
  

        3.1    Eligibility.    If (i) on, or within 36 full calendar months after, a Change in Control, a Participant
is subject to an Involuntary Termination or a Constructive Termination or (ii) on or after the execution of a definitive agreement for a Change in Control and before the consummation of such
Change in Control a Participant is subject to an Involuntary Termination, the Participant will be eligible for the Plan benefits provided in Article III hereof (subject to the terms and
conditions of this Plan); provided, however, that such Participant will not be eligible for Plan benefits if the Participant has already received benefits under this Plan due to a previous
Constructive Termination or a previous Involuntary Termination. 

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        3.2.    Basic Benefit.    

        (a)  The
Basic Benefit for each Participant will be as provided in this Section 3.2 based upon the Participant's position as of the Termination Date as follows;
provided, however, that in no event will the Basic Benefit be less than the lowest Basic Benefit for the highest position held by the Participant with a member of the Affiliated Group at any time
during the period commencing five years before the announcement of the relevant Change in Control and ending immediately before the Participant's Termination Date: 

        (i)    Executive Vice President:    3.00 times Base Salary, plus 3.00 times Plan Bonus. 

        (ii)    Senior Vice President:    2.50 times Base Salary, plus 2.50 times Plan Bonus. 

        (iii)    General Manager or Vice President:    2.00 times Base Salary, plus 2.00 Times Plan Bonus. 

        (iv)    Regional or Staff Vice President:    1.50 times Base Salary, plus 1.50 times Plan Bonus. 

However,
the amount of a Participant's Basic Benefit under this Section 3.2 will be reduced by the amount of any Change in Control Completion Bonus paid to the Participant under
Section 2.3 of the Plan. 

        (b)  The
Basic Benefit will be paid to the Participant in a lump sum as soon as reasonably practicable after the Participant's Termination Date. 

        3.3.    Outplacement Benefit.    Each Participant shall receive the Outplacement Benefit, which shall consist of
outplacement services consistent with WellPoint's then-current outplacement policy for persons holding the Participant's title. The fee for this service will be paid directly by WellPoint
(and/or by an Affiliate controlled by WellPoint) to the outplacement service vendor. 

        3.4    Pension and 401(k) Match Contribution.    Each Participant shall be entitled to a special contribution amount
equal to the sum of the additional Annuity Credits and Matching Contributions to which the Participant would have been entitled under WellPoint's Pension Accumulation Plan, 401(k) Retirement Savings
Program and Comprehensive Executive Non-Qualified Retirement Plan had the Participant remained employed with WellPoint for that number of additional number of years set forth below and the
Participant's Basic Benefit were payable over such period and treated as eligible compensation under such plans: 

        (i)    Executive Vice President:    three years; 

        (ii)    Senior Vice President:    two and one-half years; 

        (iii)    General Manager or Vice President:    two years; 

        (iv)    Regional or Staff Vice President:    one and one-half years. 

The
amount of such special contribution amount shall be computed assuming the Participant was eligible, and made the maximum salary deferrals and supplemental salary deferrals eligible for matching
and supplemental matching contributions, under the 401(k) Retirement Savings Program and Comprehensive Executive Non-Qualified Retirement Plan, respectively. Such special contribution
amount shall be paid to the Participant in a lump sum cash payment as soon as practicable after the Participant's Termination Date, unless the Participant is entitled to participate in WellPoint's
Comprehensive Executive Non-Qualified Retirement Plan, in which case the contribution shall be credited to such Participant's account under such plan as an additional fully vested amount. 

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        3.5    Financial Planning.    Each participant who is an Executive Vice President or Senior Vice president shall be
entitled to a continuation of financial planning benefits for the number of years set forth below: 

        (i)    Executive Vice President:    three years; and 

        (ii)    Senior Vice President:    two and one-half years. 

        3.6    Additional SERP Credit.    Each Participant who is eligible to participate in WellPoint's Supplemental
Executive Retirement Plan will be deemed to have five Years of Vesting Service thereunder and shall be credited with that number of additional Years of Benefit Service, and shall be deemed to be that
number of years older, as is set forth below: 

        (i)    Executive Vice President:    three additional years; 

        (ii)    Senior Vice President:    two and one-half additional years; 

        (iii)    General Manager or Vice President:    two additional years; and 

        (iv)    Regional or Staff Vice President:    one and one-half additional years. 

        3.7.    Other Severance Benefits.    Each Participant shall receive health, vision, dental and life insurance benefits
at employee rates until the earlier to occur of: 

	(i)
	the
Participant becoming eligible for such benefits under the health and welfare benefit plan or plans maintained by the Participant's successor
employer; and

	(ii)
	depending
on the title of the Participant, the following periods:

	(a)
	in
the case of Executive Vice Presidents, three years;

	(b)
	in
the case of Senior Vice Presidents, two and one-half years;

	(c)
	in
the case of General Managers and Vice Presidents, two years; and

	(d)
	in
the case of Regional and Staff Vice Presidents, one and one-half years. 

        In
lieu of providing the benefits described in this Section 3.7, WellPoint may, in its discretion, elect to make cash payments to Participant in amounts sufficient, on an
after-tax basis, for Participant to otherwise purchase such benefits. 

        3.8.    Offset for Other Payments Received.    The Worker Adjustment and Retraining Notification Act (commonly known
as the WARN Act) requires that advance notice of certain layoffs be given to
employees. Other laws may impose similar notice requirements or require that pay in-lieu of notice, severance pay or similar benefits be paid. WellPoint and/or its Affiliates shall be
entitled to deduct from any benefits otherwise payable to a Participant under this Plan due to a Constructive Termination or an Involuntary Termination any other amount that a member of the Affiliated
Group is legally required to pay to the Participant under such laws due to the same Constructive Termination or Involuntary Termination, plus any compensation and any benefits paid to the Participant
following distribution of such a legally required notice to the Participant due to such Constructive Termination or Involuntary Termination. Similarly, benefits paid under this Plan will be applied to
satisfy any legal obligations that a member of the Affiliated Group may have under such laws or similar laws due to the Constructive Termination or the Involuntary Termination for which Plan benefits
are paid. 

        3.9.    Coordination with Other Plans.    If a Participant is covered under any other severance plan or arrangement
(including WellPoint's Officer Severance Plan) of a member of the Affiliated Group under which benefits are payable on the Participant's Termination Date (each, a "Severance Plan"), then the
Participant will receive benefits under the Severance Plan or Plans in lieu of benefits under this Plan unless the Participant waives his or her benefits under the Severance Plan or Plans with regard
to the 

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Constructive Termination or the Involuntary Termination. For these purposes, such a written waiver must be submitted to the CEO within 30 days of the date, following the Change in Control, on
which the Participant is specifically notified by the CEO that the Participant must waive all benefits payable under the Severance Plan or Plans with regard to the Constructive Termination or the
Involuntary Termination in order to receive benefits under this Plan with regard to that Constructive Termination or Involuntary Termination. 

 
 

ARTICLE IV
  EXCESS PARACHUTE PAYMENTS    
  

        If any employee of WellPoint or an Affiliate (i) is, at the effective time of a Change-in-Control (or any other corporate
transaction) or the date of termination of such employee's employment, an Executive Vice President or Senior Vice President and (ii) receives compensation from WellPoint or an Affiliate or a
successor thereto (under this Plan or otherwise) that subjects the employee to an excise tax under Section 4999 of the Code (relating to excess parachute payments), WellPoint shall make an
additional payment to such employee that, net of all taxes thereon, fully reimburses or "grosses up" the employee for the amount of such excise tax. If any other employee is a Participant in this Plan
and reasonably determines that (i) compensation payable under this Plan, either alone or when aggregated with other compensation payable to such Participant, would subject such Participant to
an excise tax under Section 4999 of the Code and (ii) the net amount that the Participant would realize from such payments on an after-tax basis would be greater if the
benefit payable hereunder were limited, then the benefit payable hereunder shall be limited in the manner reasonably determined by the Participant to maximize such Participant's net payment received
on an after-tax basis. Except to the extent expressly provided in a written agreement between WellPoint and a Participant, the foregoing provisions of this Article shall apply only to
Participants who are also Participants in the WellPoint Health Networks Inc. Officer Severance Plan (as adopted October 27, 1998). With respect to all other Participants under this Plan,
if the CEO reasonably determines that any benefit under this Plan, alone or when aggregated with other compensation payable to the Participant, would constitute an excess parachute payment within the
meaning of Section 280G of the Code, the amount payable under this Plan will be limited only to the extent necessary to avoid creation of an excess parachute payment. 

 
 

ARTICLE V
  MISCELLANEOUS    
  

        5.1.    Withholding.    WellPoint and/or the appropriate member of the Affiliated Group may withhold taxes and other
payroll deductions from Plan benefit payments. 

        5.2.    Effect on Other Plans.    Payments under this Plan will not be treated as compensation for purposes of any
other employee benefit plan, unless the other employee benefit plan expressly provides otherwise. 

        5.3.    Assignment and Source.    Plan benefits are not assignable and will be paid when due from the general assets
of WellPoint and/or from the general assets of an Affiliate controlled by WellPoint. 

        5.4.    Compliance with Agreements.    Plan benefits are conditioned on an eligible Participant's compliance with any
confidentiality agreement or release that the Participant has entered into with any member of the Affiliated Group. 

        5.5.    Claims Procedure.    If an individual believes that he or she is entitled to a benefit under this Plan or to a
Plan benefit that is greater than the benefit which such person has received, the individual may submit a signed, written application to the CEO within 60 days of the date of the individual's
Constructive Termination or Involuntary Termination, as the case may be. The individual will generally be notified of the approval or denial of this application within 90 days of the date that
the CEO receives the application. If the individual is not so notified the individual may, but need not, treat the 

7

 

claim as denied. If the individual's claim is denied, the notification will state specific reasons for the denial and the individual will have 60 days to file a signed, written request
for a review of the denial with the CEO. This request should include the reasons the individual is requesting a review, facts supporting the individual's request, and any other relevant comments. The
CEO will generally make a final, written determination of the individual's eligibility for Plan benefits within 60 days of receipt of the individual's request for review. 

        5.6.    Arbitration.    If an individual is denied part or all of a Plan benefit pursuant to Section 5.5, the
individual's sole remedy will be to appeal the matter to an impartial arbitrator. Arbitration will be in
accordance with the Model Employment Arbitration Procedures of the American Arbitration Association (the "AAA") before an arbitrator who is familiar with employee benefit matters and who is licensed
to practice law in the state in which the arbitration is convened (the "Arbitrator"). The Arbitrator will be selected by alternate striking from a list of eleven arbitrators drawn by the AAA from its
panel of labor and employment arbitrators. The arbitration will take place in or near the city in which the individual is or was last employed by WellPoint and/or an Affiliate controlled by WellPoint
or in such other location as may be acceptable to both the individual and WellPoint. The Arbitrator will have the exclusive authority to resolve any factual or legal claim relating to the Plan or
relating to the interpretation, applicability or enforceability of this arbitration provision, including but not limited to, any claim that all or any part of this provision is void or voidable. The
arbitration will be final and binding upon all parties. The costs of the Arbitration will be split equally between the parties to the arbitration. 

        5.7.    Amendment or Termination of Plan.    The Committee shall have the authority to amend or terminate the Plan at
any time; provided, however, that no termination of the Plan or amendment thereto that adversely affects the rights of the Participants shall be effective sooner than three years after the approval of
such amendment or termination by the Committee. 

        5.8.    No Right to Continued Employment.    This Plan does not provide a Participant with any right to continue
employment with any member of the Affiliated Group or affect the right of any individual or any member of the Affiliated Group to terminate the services of such individual at any time with or without
cause, subject to the terms of any written employment agreement executed by both parties thereto. 

        5.9.    Governing Law.    This Plan is intended to be an unfunded welfare benefit plan for a select group of
management or highly compensated employees within the meaning of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") and Department of Labor
Regulation 2520.104-24. To the extent applicable and not preempted by ERISA, the laws of the State of California will govern this Plan. 

        5.10.    Effective Date.    This Plan is restated herein is effective on or after December 4, 2001. 

	WELLPOINT HEALTH NETWORKS INC.
	
BY:	

/s/  LEONARD D. SCHAEFFER      	
 	

DATE:	

December 4, 2001
	 	
 LEONARD D. SCHAEFFER	 	 	

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WELLPOINT HEALTH NETWORKS INC. OFFICER CHANGE-IN-CONTROL PLAN (As amended and restated through December 4, 2001)

ARTICLE I DEFINITIONS

ARTICLE II BENEFITS UPON A CHANGE IN CONTROL

ARTICLE III SEVERANCE BENEFITS UPON A CHANGE IN CONTROL

ARTICLE IV EXCESS PARACHUTE PAYMENTS

ARTICLE V MISCELLANEOUSQuickLinks
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Exhibit 10.23  

 
 

WELLPOINT HEALTH NETWORKS INC.
  OFFICER SEVERANCE PLAN
  (as adopted December 4, 2001)    
  

        This WellPoint Health Networks Inc. Officer Severance Plan (the "Plan") is designed to provide each officer of WellPoint Health Networks Inc.
("WellPoint" or the "Company") and/or its affiliates with certain benefits in the event that such officer is involuntarily terminated from employment from WellPoint or one of its affiliates. Except to
the extent provided herein, the Plan replaces any similar plan previously in effect as of the date of adoption providing for monetary or other compensation to any officer in the event that such
officer is involuntarily terminated from employment with WellPoint or one of its affiliates. 

 
 

ARTICLE I
  DEFINITIONS    
  

        Unless otherwise indicated, capitalized terms used herein shall have the following meaning: 

        "Affiliate"
means an entity that is linked to WellPoint by a 51% or greater chain of ownership. For this purpose, ownership is determined by applying the principles of Section 414
of the Code and by substituting a 51% control test for an 80% control test. 

        "Affiliated
Group" means WellPoint and all of its Affiliates. 

        "Base
Salary" means a participant's highest annual rate of base salary paid by a member of the Affiliated Group during the twelve calendar months immediately preceding the Participant's
Termination Date. 

        "CEO"
means the Chief Executive Officer of WellPoint or such person's delegate. 

        "Code"
means the Internal Revenue Code of 1986 as amended. 

        "Committee"
shall mean the Compensation Committee of the Board of Directors of WellPoint, whose membership shall be comprised solely of independent directors of WellPoint and to which
the CEO shall report periodically regarding actions taken under this Plan. 

        "Constructive
Termination" means a change in the Participant's principal place of employment such that the Participant's one-way commute will be increased by more than 35
miles. However, a Constructive Termination will not be deemed to have occurred unless (i) within sixty (60) days of the occurrence that the Participant deems to be a Constructive
Termination, the Participant notifies WellPoint in writing that he or she has experienced a Constructive Termination, which notice describes the event that the Participant believes constitutes a
Constructive Termination, (ii) WellPoint has not, within fifteen (15) days of receipt of such notice, corrected the circumstance that would otherwise result in a Constructive
Termination, and (iii) the Participant terminates his or her employment within ninety (90) days of such 15-day period. 

        "Involuntary
Termination" means actual termination of a Participant's employment with a member of the Affiliated Group initiated by one or more members of the Affiliated Group, other
than (i) Termination for Cause, (ii) termination due to the Participant's total and permanent disability, as that term is defined in the WellPoint long-term disability plan
in effect on the date in question, or (iii) termination due to the Participant's death. Involuntary Termination shall also mean the resignation by a Participant in lieu of discharge from
employment by mutual agreement between such Participant and the member of the Affiliated Group. 

        "Participant"
means any person holding the title of Staff Vice President, Regional Vice President, Vice President or higher with WellPoint or any member of the Affiliated Group;
provided, however, that it shall not include (i) any person covered by an employment agreement with any member of the Affiliated Group on his or Termination Date unless such person's employment
agreement provides 

 

otherwise; and (ii) unless otherwise designated by the CEO, any other position (whether or not such position contains the phrase "Vice President") which is not considered to be an officer
position of the Affiliated Group or is not entitled to participate in benefits generally reserved for officers of the Affiliated Group. 

        "Service"
means the number of years from a Participant's latest or adjusted hire date, whichever is longer. An adjusted hire date shall apply to any Participant who is reinstated with
the Affiliated Group and who has had a break in service with the Affiliated Group of a duration of less than one year. Participants who have a break in service of one year or greater shall not accrue
any service credit for the period prior to such break in service. 

        "Termination
Date" is the first date that a Participant is subject to a Constructive Termination or an Involuntary Termination. 

        "Termination
for Cause" means (i) a commission by a Participant of any act of fraud, embezzlement or dishonesty against any member of the Affiliated Group; (ii) the
conviction of a Participant for any criminal offense involving fraud or dishonesty or any similar conduct that is injurious to the reputation of WellPoint or any member of the Affiliated Group; or
(iii) willful engagement by a Participant in gross misconduct injurious to WellPoint or any member of the Affiliated Group. 

 
 

ARTICLE II
  ELIGIBILITY    
  

        A Participant who is subject to a Constructive Termination or an Involuntary Termination from the Affiliated Group will be eligible for the Plan Benefits provided
in Article III hereof (subject to the terms and conditions of this Plan). 

 
 

ARTICLE III
  PLAN BENEFITS    
  

        3.1.    Basic Benefit.    (a) The Basic Benefit for each Participant will be as provided in the Schedule
attached hereto applicable to such Participant based upon the Participant's position as of the Termination Date; provided, however, that in no event will the Basic Benefit be less than the lowest
Basic Benefit for the highest position held by the Participant with a member of the Affiliated Group at any time during the 12 calendar months immediately preceding the Participant's Termination Date. 

        (b)  For
purposes of calculating the Basic Benefit, the term "Target Bonus" referred to in the applicable Schedule is an amount equal to (i) the target bonus
percentage (if any) for the Participant for the fiscal year immediately preceding his or her Termination Date under WellPoint's then-applicable annual
management incentive plan, or any other cash incentive plan maintained by a member of the Affiliated Group, multiplied by (ii) the Participant's Base Salary at the time of termination. 

        3.2.    Other Benefits.    Each Participant shall receive health, vision, dental and life insurance benefits
comparable (including the Participant responsibility for the employee contribution required at such time) to those generally provided to employees of WellPoint or its Affiliates until the earlier to
occur of: 

	(i)
	the
Participant becoming eligible for such benefits under the health and welfare benefit plan or plans maintained by any successor employer of the
Participant; and

	(ii)
	depending
on the title of the Participant, the period set forth in the applicable Schedule attached hereto. 

        In
lieu of providing the benefits described in this Section 3.2, WellPoint may, in its discretion, elect to make cash payments to Participant in amounts sufficient, on an
after-tax basis and after taking into 

2

 

account the employee contribution required at such time, for Participant to otherwise purchase such benefits. 

        3.3.    Excess Parachute Payments.    If any Participant determines that (i) any benefit under this Plan,
either alone or when aggregated with other compensation payable to such Participant, would subject such Participant to an excise tax under Section 4999 of the Code (relating to excess parachute
payments) and (ii) the net amount that the Participant would realize from such payments on an after-tax basis would be greater if the benefit payable hereunder were limited, then
the benefit payable hereunder shall be limited in the manner reasonably determined by such Participant to maximize such Participant's net payments received on an after tax basis,  unless under a separate
written agreement, plan or program, such Participant is entitled to an additional payment that, net of all taxes thereon, fully
reimburses or "grosses up" the Participant for the amount of such excise tax. 

        3.4.    Offset for Other Payments Received.    The Worker Adjustment and Retraining Notification Act (commonly known
as the WARN Act) requires that advance notice of certain layoffs be given to employees. Other laws may impose similar notice requirements or require that pay in-lieu of notice, severance
pay or similar benefits be paid. WellPoint and/or its Affiliates shall be entitled to deduct from any benefits otherwise payable to a Participant under this Plan any other amount that a member of the
Affiliated Group is legally required to pay to the Participant under such laws plus any compensation and any benefits paid to the Participant following distribution of such a legally required notice
to the Participant. Similarly, benefits paid under this Plan will be applied to satisfy any legal obligations that a member of the Affiliated Group may have under such laws or similar laws for which
Plan benefits are paid. 

        3.5.    Form of Payment.    The Basic Benefit will be paid to the Participant in a lump sum as soon as reasonably
practicable after the later to occur of the Participant's Termination Date and WellPoint's receipt of an executed general release from the Participant provided pursuant to Section 3.10 hereof. 

        3.6.    Withholding.    WellPoint and/or the appropriate member of the Affiliated Group may withhold taxes and other
payroll deductions from Plan benefit payments. 

        3.7.    Effect on Other Plans.    Payments under this Plan will not be treated as compensation for purposes of any
other employee benefit plan, unless the other employee benefit plan expressly provides otherwise. 

        3.8.    Coordination with Other Plans.    Any person otherwise eligible as a Participant under this Plan shall not be
considered a Participant if such person is then covered under any other severance plan or arrangement maintained by a member of the Affiliated Group, under which benefits are payable as a result of
Participant's Constructive Termination or Involuntary Termination (a "Severance Plan"), other than WellPoint's Officer Change-in-Control Plan. Such person shall only be
considered a Participant hereunder upon receipt by the Company of a duly executed termination agreement, in a form acceptable to the Company, with respect to such person under such Severance Plan or
Plans. In any event, any benefits otherwise payable to a Participant hereunder upon a Constructive Termination or Involuntary Termination shall be reduced on a
dollar-for-dollar basis for any benefits received by the Participant from any other Severance Plan or Plans (whether maintained by the Company, any member of the Affiliated
Group or any former or successor employers of the Participant), including WellPoint's Officer Change-in-Control Plan. 

        3.9.    Effect of Divestitures or Other Significant Corporate Transactions.    A Participant shall not be deemed to
have suffered a Constructive Termination or Involuntary Termination solely by virtue of the Company or any member of the Affiliated Group consummating a divestiture, sale or other similar transaction
(whether by asset sale, stock sale or otherwise) (a "Divestiture") with respect to a member of the Affiliated Group or business unit or division (a "Transferred Unit") so long as the Participant shall
continue in his or her employment with the Transferred Unit or shall be offered a position having 

3

 

a substantially similar title, responsibilities, compensation and benefits with the entity acquiring such Transferred Unit. Notwithstanding the foregoing, in the event that a Participant shall suffer
an Involuntary Termination or Constructive Termination from the Transferred Unit within the time period after completion of the Divestiture specified in the applicable Schedule, such Participant shall
be entitled to receive the benefits specified in Sections 3.1 and 3.3 hereof (subject to the terms and conditions of this Plan, including Sections 3.8 and 3.10 hereof). 

        3.10.    Execution of General Release.    It shall be a condition to receipt of any benefit under this Plan that
Participant shall have executed a general release of all claims that the Participant may have against
WellPoint and all members of the Affiliated Group and their respective employees and agents. Such general release shall be in the form customarily used by WellPoint. 

 
 

ARTICLE IV
  MISCELLANEOUS    
  

        4.1.    Assignment and Source.    Plan benefits are not assignable and will be paid when due from the general assets
of WellPoint and/or from the general assets of an Affiliate controlled by WellPoint. 

        4.2.    Compliance with Agreements.    Plan benefits are conditioned on an eligible Participant's compliance with any
confidentiality agreement that the Participant has entered into with any member of the Affiliated Group. 

        4.3.    Claims Procedure.    If a Participant believes that he or she is entitled to a benefit under this Plan or to a
Plan benefit that is greater than the benefit which such person has received, the Participant may submit a signed, written application to the CEO within 60 days of the Participant's Termination
Date. The Participant will generally be notified of the approval or denial of this application within 90 days of the date that the CEO receives the application. If the Participant is not so
notified the Participant may, but need not, treat the claim as denied. If the Participant's claim is denied, the notification will state specific reasons for the denial and the Participant will have
60 days from the date of such notification to file a signed, written request for a review of the denial with the CEO. This request shall include the reasons the Participant is requesting
a review, facts supporting the Participant's request and any other relevant comments. The CEO will generally make a final, written determination of the Participant's eligibility for Plan benefits
within 60 days of receipt of the Participant's request for review. 

        4.4.    Arbitration.    If a Participant is denied part or all of a Plan benefit pursuant to Section 4.3, the
Participant's sole remedy will be to appeal the matter to an impartial arbitrator. Arbitration will be in accordance with the Model Employment Arbitration Procedures of the American Arbitration
Association (the "AAA") before an arbitrator who is familiar with employee benefit matters and who is licensed to practice law in the state in which the arbitration is convened (the "Arbitrator"). The
Arbitrator will be selected by alternate striking from a list of eleven arbitrators drawn by the AAA from its panel of labor and employment arbitrators. The arbitration will take place in or near the
city in which the Participant is or was last employed by WellPoint or an Affiliate controlled by WellPoint or in such other location as may be acceptable to both the Participant and WellPoint. The
arbitrator will not be allowed to consider or include any claims of other Participants. The Arbitrator will have the exclusive authority to resolve any factual or legal claim relating to the Plan or
relating to the interpretation, applicability or enforceability of this arbitration provision, including but not limited to, any claim that all or any part of this provision is void or voidable. The
arbitration will be final and binding upon all parties. The costs of the Arbitration will be split equally between the parties to the arbitration. 

        4.5.    Amendment or Termination of Plan.    The Committee shall have the authority to amend or terminate the Plan at
any time; provided, however, that no termination of the Plan or amendment thereto that adversely affects the rights of Participants shall be effective sooner than the January 1 that 

4

 

next occurs after the first anniversary of the approval of such amendment or termination by the Committee. 

        4.6.    No Right to Continued Employment.    This Plan does not provide a Participant with any right to continued
employment with any member of the Affiliated Group or affect the right of any member of the Affiliated Group to terminate the services of any Participant at any time with or without cause or notice,
subject to the terms of any written employment agreement executed by both parties thereto. 

        4.7.    Governing Law.    This Plan is intended to be an unfunded welfare benefit plan for a select group of
management or highly compensated employees within the meaning of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") and Department of Labor
Regulation 2520.104-24. To the extent applicable and not preempted by ERISA, the laws of the State of California will govern this Plan. 

        4.8.    Effective Date.    This Plan as restated herein is effective on and after December 4, 2001. 

WELLPOINT HEALTH NETWORKS INC.  

	BY:	 	/s/  LEONARD D. SCHAEFFER      	 	DATE: December 4, 2001
	 	 	
 LEONARD D. SCHAEFFER	 	 

5

 
 
 

Schedule of Benefits
  Applicable To Executive Vice Presidents    
  

Basic Benefit.    (Section 3.1) 

        12 months
Base Salary and 100% of Target Bonus (or, if greater, the time period and percentages set forth in any officer severance agreement in effect on October 27, 1998).
Participants with over five years of Service will receive one additional week of salary continuation for each completed year of Service in excess of five years, up to a maximum of 13 additional weeks
of salary continuation. 

Other Benefits.    (Section 3.2) 

        12
Months (or, if greater, the time period set forth in any officer severance agreement in effect on October 27, 1998) 

Effective of Divestitures or Other Significant Corporate Transactions.    (Section 3.9) 

        The
period referred to in the final sentence of Section 3.9 shall be 12 months (or, if greater, the period referred to under "Other Benefits. (Section 3.2)" directly
above). 

6

 
 
 

Schedule of Benefits
  Applicable To Senior Vice Presidents    
  

Basic Benefit.    (Section 3.1) 

        9 months
Base Salary and 75% of Target Bonus. Participants with over five years of Service will receive one additional week of salary continuation for each completed year of
Service in excess of five years, up to a maximum of 13 additional weeks of salary continuation. 

Other Benefits.    (Section 3.2) 

        9
Months 

Effective of Divestitures or Other Significant Corporate Transactions.    (Section 3.9) 

        The
period referred to in the final sentence of Section 3.9 shall be 9 months. 

7

 
 
 

Schedule of Benefits
  Applicable To General Managers / Vice Presidents    
  

Basic Benefit.    (Section 3.1) 

        6 months
Base Salary and 50% of Target Bonus. Participants with over five years of Service will receive one additional week of salary continuation for each completed year of
Service in excess of five years, up to a maximum of 13 additional weeks of salary continuation. 

Other Benefits.    (Section 3.2) 

        6
Months 

Effective of Divestitures or Other Significant Corporate Transactions.    (Section 3.9) 

        The
period referred to in the final sentence of Section 3.9 shall be 6 months. 

8

 
 
 

Schedule of Benefits
  Applicable to Staff Vice Presidents / Regional Vice Presidents    
  

Basic Benefit.    (Section 3.1) 

        3 months
Base Salary. Participants with over five years of Service will receive one additional week of salary continuation for each completed year of Service in excess of five
years, up to a maximum of 13 additional weeks of salary continuation. 

Other Benefits.    (Section 3.2) 

        3
Months 

Effective of Divestitures or Other Significant Corporate Transactions.    (Section 3.9) 

        The
period referred to in the final sentence of Section 3.9 shall be 3 months. 

9

QuickLinks

WELLPOINT HEALTH NETWORKS INC. OFFICER SEVERANCE PLAN (as adopted December 4, 2001)

ARTICLE I DEFINITIONS

ARTICLE II ELIGIBILITY

ARTICLE III PLAN BENEFITS

ARTICLE IV MISCELLANEOUS

Schedule of Benefits Applicable To Executive Vice Presidents

Schedule of Benefits Applicable To Senior Vice Presidents

Schedule of Benefits Applicable To General Managers / Vice Presidents

Schedule of Benefits Applicable to Staff Vice Presidents / Regional Vice Presidents

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