Document:

AMENDED AND RESTATED CREDIT AGREEMENT

 

EXHIBIT 10.14

$300,000,000

AMENDED AND RESTATED

364-DAY CREDIT AGREEMENT

dated as of

November 30, 2001

among

Aetna Inc.,

as Borrower

The Banks Listed Herein

and

JPMorgan Chase Bank,

as Administrative Agent

J.P. Morgan Securities Inc., as Lead Arranger

Citibank, N.A.

and

Fleet National Bank,

as Syndication Agents, and

First Union National Bank

and

Deutsche Bank AG, New York Branch,

as Documentation Agents

 

 

	 	 	 
	 	 	
AMENDED AND RESTATED 364-DAY CREDIT
AGREEMENT, dated as of November 30, 2001 (this
“Amendment and Restatement”), among AETNA INC. (the
“Borrower”), the BANKS listed on the signature pages
hereof (the “Banks”), JPMORGAN CHASE BANK, as
Administrative Agent (the “Agent”), J.P. MORGAN
SECURITIES INC., as Lead Arranger, CITIBANK, N.A. and
FLEET NATIONAL BANK, as Syndication Agents, and FIRST
UNION NATIONAL BANK and DEUTSCHE BANK AG, NEW YORK
BRANCH, as Documentation Agents.

W I T N E S S E T H :

         WHEREAS certain of the parties hereto have heretofore entered
into a 364-Day Credit Agreement dated as of December 13, 2000 (the “364-Day
Agreement”), among Aetna Inc. (formerly known as Aetna U.S. Healthcare Inc.),
the Banks listed therein and JPMorgan Chase Bank (as successor to Morgan
Guaranty Trust Company of New York), as Administrative Agent; and

         WHEREAS the parties hereto desire to amend and restate the
364-Day Agreement in its entirety to read as set forth in the 364-Day Agreement
as in effect on the date hereof with the amendments specified below.

         NOW, THEREFORE, the parties hereto agree as follows:

         SECTION 1. Definitions; References. Unless otherwise
specifically defined herein, each capitalized term used herein which is defined
in the 364-Day Agreement shall have the meaning assigned to such term in the
364-Day Agreement. Each reference to “hereof”, “hereunder”, “herein” and
“hereby” and each other similar reference and each reference to “this Agreement”
and each other similar reference contained in the 364-Day Agreement shall from
and after the date hereof refer to such Agreement as amended hereby.

         SECTION 2. General Amendments to the 364-Day Agreement. The
364-Day Agreement is hereby amended by (a) deleting the words “Morgan Guaranty
Trust Company of New

 

 

3

York” each time they appear therein and inserting the words “JPMorgan Chase
Bank” in their place, (b) deleting the words “Effective Date” each time they
appear therein (except with respect to (i) the definition of “Effective Date” in
Section 1.01 thereof and (ii) Section 3.01 thereof) and inserting the words
“Amendment and Restatement Effective Date” in their place and (c) deleting the
words “Aetna U.S. Healthcare Inc.” each time they appear therein and inserting
the words “Aetna Inc.” in their place.

         SECTION 3. Amendment to Section 1.01 of the 364-Day Agreement.
(a) The definitions of the following terms are hereby deleted in their entirety
from Section 1.01 of the 364-Day Agreement: “Business”; “Distribution
Agreement”; “Existing Credit Agreements”; “Merger”; “Other Credit Agreements”;
“Parent”; and “Spin-Off Transactions”.

         (b)  Section 1.01 of the 364-Day Agreement is hereby amended by
inserting the following definitions in the proper alphabetical order:

	 	 	“Amendment and Restatement Effective Date” has the meaning assigned to
such term in Section 13 of the Amended and Restated 364-Day Credit
Agreement dated as of November 30, 2001, among the Borrower, the Banks
listed on the signature pages thereof and the Agent.
	 
	 	 	“SFAS 142” means Statement of Financial Accounting Standards No. 142,
Goodwill and Other Intangibles.

         (c)  The definition of the term “Borrower” is hereby deleted in
its entirety from Section 1.01 of the 364-Day Agreement and replaced with the
following:

	 	 	“Borrower” means Aetna Inc., a Pennsylvania corporation, and its
successors.

         (d)  The definition of the term “Consolidated EBITDA” is hereby
deleted in its entirety from Section 1.01 of the 364-Day Agreement and replaced
with the following:

	 	 	“Consolidated EBITDA” means, for any period, Consolidated Net Income
for such period plus, without duplication, to the extent deducted in
determining such Consolidated Net Income, the sum of (a) consolidated
interest expense for such period, (b) consolidated income tax expense
for such period and (c) all amounts 

 

 

 
4

	 	 	attributable to depreciation, amortization and other similar non-cash
charges for such period; provided that, for purposes of determining
Consolidated EBITDA for any period, Consolidated Net Income for such
period shall be adjusted to exclude, without duplication, the effect on
Consolidated Net Income for such period of (i) any Excluded Charges
deducted in determining such Consolidated Net Income and (ii) any
extraordinary gains or losses for such period.

         (e)  The definition of the term “Disclosure Documents” is
hereby deleted in its entirety from Section 1.01 of the 364-Day Agreement and
replaced with the following:

	 	 	“Disclosure Documents” means (a) the Confidential Bank Memorandum dated
October 30, 2001 and/or the Confidential Information Memorandum dated
October 29, 2001 previously delivered to the Lenders; (b) the
Borrower’s Annual Report on Form 10-K filed with the Securities and
Exchange Commission for the period ended December 31, 2000; (c) the
Borrower’s Quarterly Reports on Form 10-Q filed with the Securities and
Exchange Commission for the periods ended March 31, 2001, June 30, 2001
and September 30, 2001; (d) the Borrower’s Current Reports on Form 8-K
filed with the Securities and Exchange Commission after December 31,
2000 and on or before October 30, 2001; and (e) the disclosure letter
dated November 30, 2001 from the Borrower’s counsel to the
Administrative Agent’s counsel.

         (f)  The definition of the term “Excluded Charges” is hereby
deleted in its entirety from Section 1.01 of the 364-Day Agreement and replaced
with the following:

“Excluded Charges” means (a) the aggregate after-tax amount of any
non-recurring charges (up to an aggregate amount of $300,000,000) taken
after September 30, 2001 and on or before December 31, 2002, including,
but not limited to, charges incurred to restructure operations and/or
exit certain activities, including employee termination benefits and
other costs and (b) the amount of any reduction in goodwill and/or
cumulative effect adjustment associated with the Borrower’s adoption of
SFAS 142.

 

 

5

         (g)  The definition of the term “Leverage Ratio” is hereby
deleted in its entirety from Section 1.01 of the 364-Day Agreement and replaced
with the following:

	 	 	“Leverage Ratio” means, as of the end of any fiscal quarter of the
Borrower, the ratio of (a) Total Debt as of such date to (b)
Consolidated EBITDA for the period of four consecutive fiscal quarters
of the Borrower then ended.

         (h)  The definition of the term “Minimum Adjusted Consolidated
Net Worth” is hereby deleted in its entirety from Section 1.01 of the 364-Day
Agreement and replaced with the following:

	 	 	“Minimum Adjusted Consolidated Net Worth” means, as of the end of any
fiscal quarter of the Borrower, the sum of (a) $7,500,000,000 plus (b)
in the case of any determination as of the end of any fiscal quarter
ending on or after December 31, 2001, the amount equal to 50% of
Consolidated Net Income in respect of each fiscal quarter of the
Borrower as to which Consolidated Net Income is a positive amount and
that ends on or after December 31, 2001, and on or prior to such date
of determination; provided that the amount of “Minimum Adjusted
Consolidated Net Worth” as of any date shall be reduced on a dollar for
dollar basis to the extent that Adjusted Consolidated Net Worth has
been reduced on or prior to such date as a result of any Excluded
Charges; provided further that any reduction pursuant to the
immediately preceding proviso as a result of any reduction and/or
cumulative effect adjustment described in clause (b) of the definition
of Excluded Charges shall not exceed $4,500,000,000 in the aggregate.

         (i)  The definition of “Termination Date” is hereby deleted in
its entirety from Section 1.01 of the 364-Day Agreement and replaced with the
following:

	 	 	“Termination Date” means November 29, 2002, or, if such day is not a
Euro-Dollar Business Day, the next preceding Euro-Dollar Business Day.

         SECTION 4. Amendment to Section 1.02 of the 364-Day Agreement.
Section 1.02 of the 364-Day Agreement is hereby amended by deleting the words
“(a) the Parent and its consolidated subsidiaries, until the first audited

 

 

6

consolidated financial statements of the Borrower are delivered hereunder and
(b) thereafter,”.

         SECTION 5. Amendments to Article II of the 364-Day Agreement.
Article II of the 364-Day Agreement is hereby amended by deleting the amount
“$20,000,000” each time it appears therein and inserting the amount
“$15,000,000” in its place.

         SECTION 6. Amendments to Article IV of the 364-Day Agreement.
(a) Section 4.04(a) of the 364-Day Agreement is hereby deleted in its entirety
and replaced with the following:

	 	 	The Borrower has heretofore furnished to the Agent, for distribution to
each of the Banks, (i) the audited consolidated balance sheet for the
Borrower and its Consolidated Subsidiaries as of December 31, 2000, and
related consolidated statements of cash flows, income and retained
earnings for the Borrower and its Consolidated Subsidiaries for the
twelve-month period then ended, and (ii) the unaudited consolidated
balance sheets of the Borrower and its Consolidated Subsidiaries as of
March 31, 2001, June 30, 2001 and September 30, 2001, and the related
consolidated statements of cash flows, income and retained earnings for
the three-month, six-month and nine-month periods then ended,
respectively. Such financial statements present fairly, in all material
respects, the consolidated financial position and results of operations
and cash flows of the Borrower and its Consolidated Subsidiaries as of
such dates and for such periods, in accordance with GAAP and, in the
case of the financial statements described in clause (ii) of this
Section 4.04(a), subject to year-end audit adjustments and the absence
of footnotes.

         (b)  Section 4.04(b) of the 364-Day Agreement is hereby deleted
in its entirety and replaced with the following:

		
	 	         (b) Since December 31, 2000, there has been no
material adverse change in the business, assets, operations, prospects
or condition (financial or otherwise) of the Borrower and its
Consolidated Subsidiaries, taken as a whole; provided that the charges
and other information disclosed in the

 

 

7

	 	 	Disclosure Documents and the effect on the Borrower of the adoption of
SFAS 142 shall be deemed not to constitute any such material adverse
change.

         (c)  Section 4.05 of the 364-Day Agreement is hereby amended by
deleting the words “and the Parent’s Form 10-Q for the third quarter of 2000,
after giving effect to the Spin-Off Transactions” and inserting a comma in their
place.

         (d)  Section 4.11 of the 364-Day Agreement is hereby deleted in
its entirety.

         SECTION 7. Amendments to Article V of the 364-Day Agreement.
(a) The reference to “December 31, 2000” in Section 5.03 of the 364-Day
Agreement is changed to “December 31, 2001”.

         (b)  The reference to “March 31, 2001” in Section 5.04 of the
364-Day Agreement is changed to “December 31, 2001”.

         SECTION 8. Amendments to Article IX of the 364-Day Agreement.
Section 9.03(b) of the 364-Day Agreement is hereby amended by (a) deleting the
words “the Spin-Off Transactions or the Merger, (ii)” and (b) replacing the
reference to “(iii)” with “(ii)”.

         SECTION 9. Amendments to Exhibits A, B, C and D to the 364-Day
Agreement.

         (a)  Each reference to “Morgan Guaranty Trust Company of New
York” in Exhibit A, B, C and D to the 364-Day Agreement is hereby changed to
“JPMorgan Chase Bank”.

         (b)  Each reference to “Aetna U.S. Healthcare Inc.” in Exhibit
A, B, C and D to the 364-Day Agreement is hereby changed to “Aetna Inc.”.

         (c)  Each reference to “the Credit Agreement dated as of
December 13, 2000” in Exhibit A, C and D to the 364-Day Agreement is hereby
changed to “the Amended and Restated 364-Day Credit Agreement dated as of
November 30, 2001”.

         (d)  The reference to “Credit Agreement (the “Credit
Agreement”) dated as of December 13, 2000” in Exhibit B to the 364-Day Agreement
is hereby changed to

 

 

8

“Amended and Restated 364-Day Credit Agreement (the “Credit Agreement”) dated as
of November 30, 2001”.

         (e)  The date above the first paragraph of Exhibit A to the
364-Day Agreement is changed from “2000” to “20 “.

         (f)  The reference to “60 Wall Street, New York, New York” in
Exhibit A of the 364-Day Agreement is hereby changed to “One Chase Manhattan
Plaza, 8th floor, New York, New York”.

         (g)  Each reference to “$20,000,000” in Exhibits B and D to the
364-Day Agreement is hereby changed to “$15,000,000”.

         (h)  The reference to “60 Wall Street, New York, New York
10260” in Exhibit D to the 364-Day Agreement is hereby changed to “One Chase
Manhattan Plaza, 8th floor, New York, New York 10081”.

         SECTION 10. New Commitments. With effect from and including
the Amendment and Restatement Effective Date, the Commitment of each Bank under
the 364-Day Agreement shall be the amount set forth opposite the name of such
Bank on Schedule 2.01 attached hereto, which hereby replaces and supercedes
Schedule 2.01 to the 364-Day Agreement. Each Bank that has a Commitment under
the 364-Day Agreement as a result of this Amendment and Restatement but that was
not a party to the 364-Day Agreement prior to the effectiveness of this
Amendment and Restatement shall, upon the effectiveness of this Amendment and
Restatement, be a party to the 364-Day Agreement with all of the rights and
obligations of a Bank thereunder and with the Commitment as set forth on
Schedule 2.01 hereto. Each Bank with a Commitment under the 364-Day Agreement
prior to the effectiveness of this Amendment and Restatement that will continue
to have a Commitment after the effectiveness of this Amendment and Restatement
shall continue to be a party to the 364-Day Agreement with all of the rights and
obligations of a Bank thereunder and with the Commitment as set forth on
Schedule 2.01 hereto. The Commitment of each Bank with a Commitment under the
364-Day Agreement prior to the effectiveness of this Amendment and Restatement
that will not have a Commitment after the Amendment and Restatement Effective
Date shall terminate upon the Amendment and Restatement Effective Date, and such
Bank shall no longer be a party to the 364-Day Agreement.

 

 

9

         SECTION 11. Representations and Warranties. The Borrower
represents and warrants that as of the date hereof and after giving effect
hereto:

         (a)  no Default has occurred and is continuing; and

         (b)  each representation and warranty of the Borrower set forth
in the 364-Day Agreement after giving effect to this Amendment and Restatement
is true and correct as though made on and as of such date.

         SECTION 12. Governing Law. This Amendment and Restatement
shall be governed by and construed in accordance with the laws of the State of
New York.

         SECTION 13. Counterparts; Effectiveness. This Amendment and
Restatement may be signed in any number of counterparts, each of which shall be
an original, with the same effect as if the signatures thereto and hereto were
upon the same instrument. This Amendment and Restatement shall become effective
on November 30, 2001 (the “Amendment and Restatement Effective Date”); provided
that this Amendment and Restatement shall not become effective unless, on or
prior to such date, all of the following conditions shall have been satisfied
(or waived in accordance with Section 9.04 of the 364-Day Agreement, as amended
and restated hereby):

		
	 	         (a) receipt by the Agent from the Borrower and each Bank of
either (i) a counterpart hereof signed by such party or (ii)
telegraphic, telex or other written confirmation, in form satisfactory
to the Agent, confirming that a counterpart hereof has been signed by
such party;

		
	 	         (b) receipt by the Agent of a certificate signed by the
Executive Vice President, Administration and Finance, the Chief
Financial Officer or the Vice President, Finance, of the Borrower,
dated the Amendment and Restatement Effective Date, to the effect that
(i) no Default has occurred and is continuing as of the Amendment and
Restatement Effective Date and (ii) the representations and warranties
of the Borrower set forth in Article IV of the 364-Day Agreement, as
amended and restated hereby, are true in all material 

 

 

10

	 	 	respects on, and as of, the Amendment and Restatement Effective Date;

		
	 	         (c) receipt by the Agent of opinions from William C. Baskin
III, Esq., counsel to the Borrower, Davis Polk & Wardwell, special
counsel to the Borrower, and Drinker Biddle & Reath LLP, Pennsylvania
counsel to the Borrower, in each case given upon the Borrower’s express
instructions and in a form satisfactory to the Agent;

		
	 	         (d) receipt by the Agent of all documents it may reasonably
request relating to the existence of the Borrower, the corporate
authority for and the validity of this Amendment and Restatement, and
any other matters relevant hereto, all in form and substance
satisfactory to the Agent;

		
	 	         (e) the Banks shall have received the financial statements
referred to in Section 4.04(a) of the 364-Day Agreement, as amended and
restated hereby; and

		
	 	         (f) the Agent shall have received all fees and other amounts
due and payable by the Borrower under this Amendment and Restatement
and the 364-Day Agreement on or prior to the Amendment and Restatement
Effective Date, including, to the extent invoiced, reimbursement or
payment of all out-of-pocket expenses required to be reimbursed or paid
by the Borrower.

The Agent shall promptly notify the Borrower and the Banks of the Amendment and
Restatement Effective Date, and such notice shall be conclusive and binding on
all parties hereto.

         SECTION 14. Expenses. The Borrower agrees to reimburse the
Agent for its out-of-pocket expenses in connection with this Amendment and
Restatement, including the reasonable fees, charges and disbursements of
Cravath, Swaine & Moore, counsel for the Agent.

 

 

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

	 	 	 	 	 
	 	 	AETNA INC.,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Alfred P. Quirk Jr.
	 	 	 	 	

	 	 	 	 	Name: Alfred P. Quirk Jr.
	
	
	
	

	 	 	 	 	Title: Vice President, Finance and Treasurer

 

 

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK,
individually and as Administrative Agent,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Dawn Lee Lum
	 	 	 	 	

	 	 	 	 	Name: Dawn Lee Lum
	
	
	
	

	 	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	CITIBANK, N.A.,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Maria Hackley
	 	 	 	 	

	 	 	 	 	Name: Maria Hackley
	
	
	
	

	 	 	 	 	Title: Director

 

 

	 	 	 	 	 
	 	 	FLEET NATIONAL BANK,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Celeste Echlin
	 	 	 	 	

	 	 	 	 	Name: Celeste Echlin
	
	
	
	

	 	 	 	 	Title: Director

 

 

	 	 	 	 	 
	 	 	DEUTSCHE BANK AG, NEW YORK

AND/OR CAYMAN ISLANDS BRANCHES,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Ruth Leung
	 	 	 	 	

	 	 	 	 	Name: Ruth Leung
	
	
	
	

	 	 	 	 	Title: Director
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Clinton M. Johnson
	 	 	 	 	

	 	 	 	 	Name: Clinton M. Johnson
	
	
	
	

	 	 	 	 	Title: Managing Director

 

 

	 	 	 	 	 
	 	 	FIRST UNION NATIONAL BANK,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Thomas L. Stitchberry
	 	 	 	 	

	 	 	 	 	Name: Thomas L. Stitchberry
	
	
	
	

	 	 	 	 	Title: Senior Vice President
	
	
	
	

	
	
	
	

 

 

	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ William S. Lutkins
	 	 	 	 	

	 	 	 	 	Name: William S. Lutkins
	
	
	
	

	 	 	 	 	Title: Vice President
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Robert Hetu
	 	 	 	 	

	 	 	 	 	Name: Robert Hetu
	
	
	
	

	 	 	 	 	Title: Director

 

 

	 	 	 	 	 
	 	 	DRESDNER BANK AG, NEW YORK AND

GRAND CAYMAN BRANCHES,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ J. M. Leffler
	 	 	 	 	

	 	 	 	 	Name: J. Michael Leffler
	
	
	
	

	 	 	 	 	Title: Director
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Jasmine Xinyue Geffner
	 	 	 	 	

	 	 	 	 	Name: Jasmine Xinyue Geffner
	
	
	
	

	 	 	 	 	Title: Associate

 

 

	 	 	 	 	 
	 	 	STATE STREET BANK AND TRUST COMPANY,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Edward M. Anderson
	 	 	 	 	

	 	 	 	 	Name: Edward M. Anderson
	
	
	
	

	 	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	THE
BANK OF NEW YORK,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Michael Flannery
	 	 	 	 	

	 	 	 	 	Name: Michael Flannery
	
	
	
	

	 	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	Commitment

$0	 	THE BANK OF TOKYO-MITSUBISHI

TRUST COMPANY,
	 	 	
 	 	 
	
	
	
	

	 	 	
by
	 	/s/ John Beckwith
	 	 	 	 	

	 	 	 	 	Name: John
Beckwith
	
	
	
	

	 	 	 	 	Title: Vice
President & Manager

 

 

	 	 	 	 	 
	 	 	BANK
ONE, NA (MAIN OFFICE CHICAGO),
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Jason D. White
	 	 	 	 	

	 	 	 	 	Name: Jason D. White
	
	
	
	

	 	 	 	 	Title: DirectorFIRST AMENDMENT TO THREE-YEAR CREDIT AGREEMENT

 

EXHIBIT 10.16

EXECUTION COPY

		
	 	         FIRST AMENDMENT dated as of November 30,
2001 (this “Amendment”), among AETNA INC. (the
“Borrower”), the BANKS listed on the signature pages
hereof (the “Banks”) and JPMORGAN CHASE BANK, as
Administrative Agent (the “Agent”).

         A.     Reference is made to the Three-Year Credit Agreement dated
as of December 13, 2000 (as amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”), among Aetna Inc. (formerly known as Aetna
U.S. Healthcare Inc.), the Banks listed therein and JPMorgan Chase Bank (as
successor to Morgan Guaranty Trust Company of New York), as Administrative
Agent.

         B.     The Borrower has requested that the Banks amend certain
provisions of the Credit Agreement. The Banks are willing to agree to such
amendments on the terms and subject to the conditions of this Amendment.

         Accordingly, in consideration of the mutual agreements herein
contained and other good and valuable consideration, the sufficiency and receipt
of which are hereby acknowledged, the parties hereto hereby agree as follows:

         SECTION 1. Definitions; References. Unless otherwise
specifically defined herein, each capitalized term used herein which is defined
in the Credit Agreement shall have the meaning assigned to such term in the
Credit Agreement. Each reference to “hereof”, “hereunder”, “herein” and “hereby”
and each other similar reference and each reference to “this Agreement” and each
other similar reference contained in the Credit Agreement shall from and after
the date hereof refer to such Agreement as amended hereby.

         SECTION 2. General Amendment to the Credit Agreement. The
Credit Agreement is hereby amended by(a) deleting the words “Morgan Guaranty
Trust Company of New York” each time they appear therein and inserting the words
“JPMorgan Chase Bank” in their place and (b) deleting the words “Aetna U.S.
Healthcare Inc.” each time they appear therein and inserting the words “Aetna
Inc.” in their place.

 

 

 2

         SECTION 3. Amendments to Section 1.01 of the Credit Agreement.
(a) Section 1.01 of the Credit Agreement is hereby amended by inserting the
following definition in the proper alphabetical order:

	 	 	 	“SFAS 142” means Statement of Financial Accounting Standards No. 142,
Goodwill and Other Intangibles.

         (b)  The definition of the term “Borrower” is hereby deleted in
its entirety from Section 1.01 of the Credit Agreement and replaced with the
following:

	 	 	 	“Borrower” means Aetna Inc., a Pennsylvania corporation, and its
successors.

         (c)  The definition of the term “Consolidated EBITDA” is hereby
deleted in its entirety from Section 1.01 of the Credit Agreement and replaced
with the following:

	 	 	 	“Consolidated EBITDA” means, for any period, Consolidated Net Income
for such period plus, without duplication, to the extent deducted in
determining such Consolidated Net Income, the sum of (a) consolidated
interest expense for such period, (b) consolidated income tax expense
for such period and (c) all amounts attributable to depreciation,
amortization and other similar non-cash charges for such period;
provided that, for purposes of determining Consolidated EBITDA for any
period, Consolidated Net Income for such period shall be adjusted to
exclude, without duplication, the effect on Consolidated Net Income for
such period of (i) any Excluded Charges deducted in determining such
Consolidated Net Income, provided that, in the case of any calculation
of Consolidated EBITDA for a period ending on or prior to September 30,
2001, adjustments pursuant to this clause (i) shall not exceed
$200,000,000 after-tax in the aggregate (for all such periods ending on
or after December 13, 2000) and (ii) any extraordinary gains or losses
for such period.

         (d)  The definition of the term “Disclosure Documents” is
hereby deleted in its entirety from Section 1.01 of the Credit Agreement and
replaced with the following:

 

 

 3

	 	 	 	“Disclosure Documents” means (a) the Confidential Bank Memorandum dated
October 30, 2001 and/or the Confidential Information Memorandum dated
October 29, 2001 previously delivered to the Lenders; (b) the
Borrower’s Annual Report on Form 10-K filed with the Securities and
Exchange Commission for the period ended December 31, 2000; (c) the
Borrower’s Quarterly Reports on Form 10-Q filed with the Securities and
Exchange Commission for the periods ended March 31, 2001, June 30, 2001
and September 30, 2001; (d) the Borrower’s Current Reports on Form 8-K
filed with the Securities and Exchange Commission on or before October
30, 2001; and (e) the disclosure letter dated November 30, 2001 from
the Borrower’s counsel to the Administrative Agent’s counsel.

         (e)  The definition of the term “Excluded Charges” is hereby
deleted in its entirety from Section 1.01 of the Credit Agreement and replaced
with the following:

	 	 	 	“Excluded Charges” means (a) for periods ending on or prior to
September 30, 2001, any non-recurring after-tax charges taken by the
Borrower after the date of the consummation of the Spin-Off
Transactions and prior to December 31, 2001 and (b) for periods ending
after September 30, 2001 (i) the aggregate after-tax amount of any
non-recurring charges (up to an aggregate amount of $300,000,000) taken
after September 30, 2001 and on or before December 31, 2002, and (ii)
the amount of any reduction in goodwill and/or cumulative effect
adjustment associated with the Borrower’s adoption of SFAS 142.
Excluded Charges described in clause (a) or (b)(i) above shall include,
but not be limited to, charges incurred to restructure operations
and/or exit certain activities, including employee termination benefits
and other costs.

         (f)  The definition of the term “Minimum Adjusted Consolidated
Net Worth” is hereby deleted in its entirety from Section 1.01 of the Credit
Agreement and replaced with the following:

	 	 	 	“Minimum Adjusted Consolidated Net Worth” means, as of the end of any
fiscal quarter of the Borrower, the sum of (a) $7,500,000,000 plus (b)
in the case of any determination as of the end of any fiscal quarter
ending on or after March 31, 2001 (in the case of any

 

 

 4

	 	 	 	fiscal quarter ending on or prior to September 30, 2001) or December
31, 2001 (in the case of any fiscal quarter ending on or after December
31, 2001), the amount equal to 50% of Consolidated Net Income in
respect of each fiscal quarter of the Borrower as to which Consolidated
Net Income is a positive amount and that ends on or after March 31,
2001 (in the case of any fiscal quarter ending on or prior to September
30, 2001) or December 31, 2001 (in the case of any fiscal quarter
ending on or after December 31, 2001), and on or prior to such date of
determination; provided that the amount of “Minimum Adjusted
Consolidated Net Worth” as of any date shall be reduced on a dollar for
dollar basis (but not, in the case of any fiscal quarter ending on or
prior to September 30, 2001, by more than $200,000,000) to the extent
that Adjusted Consolidated Net Worth has been reduced on or prior to
such date as a result of any Excluded Charges; provided further that
any reduction pursuant to the immediately preceding proviso as a result
of any reduction and/or cumulative effect adjustment described in
clause (b)(ii) of the definition of Excluded Charges shall not exceed
$4,500,000,000 in the aggregate.

         SECTION 4. Amendments to Article II of the Credit Agreement.
Article II of the Credit Agreement is hereby amended by deleting the amount
“$20,000,000” each time it appears therein and inserting the amount
“$15,000,000” in its place.

         SECTION 5. Amendments to Article IV of the Credit Agreement.
Section 4.04(b) of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:

		
	 	         (b) Since December 31, 2000, there has been no
material adverse change in the business, assets, operations, prospects
or condition (financial or otherwise) of the Borrower and its
Consolidated Subsidiaries, taken as a whole; provided that the charges
and other information disclosed in the Disclosure Documents and the
effect on the Borrower of the adoption of SFAS 142 shall be deemed not
to constitute any such material adverse change.

         SECTION 6. Amendment to Exhibits A, B, C and D to the Credit
Agreement.

 

 

 5

         (a)  Each reference to “Morgan Guaranty Trust Company of New
York” in Exhibits A, B, C and D to the Credit Agreement is hereby changed to
“JPMorgan Chase Bank”.

         (b)  Each reference to “Aetna U.S. Healthcare Inc.” in Exhibits
A, B, C and D to the Credit Agreement is hereby changed to “Aetna Inc.”.

         (c)  The date after the first paragraph of Exhibit A to the
Credit Agreement is changed from “2000” to “20     ”.

         (d)  The reference to “60 Wall Street, New York, New York” in
Exhibit A of the Credit Agreement is hereby changed to “One Chase Manhattan
Plaza, 8th Floor, New York, New York”.

         (e)  Each reference to “$20,000,000” in Exhibits B and D to the
Credit Agreement is hereby changed to “$15,000,000”.

         (f)  The reference to “60 Wall Street, New York, New York
10260” in Exhibit D to the Credit Agreement is hereby changed to “One Chase
Manhattan Plaza, 8th Floor, New York, New York 10081”.

         SECTION 7. Representations and Warranties. The Borrower
represents and warrants that as of the date hereof and after giving effect
hereto:

		
	 	         (a) The representations and warranties set forth in Article IV
of the Credit Agreement are true and correct in all material respects
with the same effect as if made on the Amendment Effective Date (as
defined below), except to the extent such representations and
warranties expressly relate to an earlier date.
	 
	 	         (b) The Borrower has the requisite power and authority to
execute, deliver and perform its obligations under this Amendment and
to perform its obligations under the Credit Agreement as amended by
this Amendment.
	 
	 	         (c) The execution, delivery and performance by the Borrower of
this Amendment are within its corporate powers, have been duly
authorized by all necessary corporate action, require no action by or
in respect 

 

 

 6

	 	 	 	of, or advance filing with, any governmental body, agency or official
and do not contravene, or constitute a default under, (i) any provision
of the certificate of incorporation or by-laws of the Borrower, (ii)
any applicable law or regulation or any judgment, injunction, order or
decree binding upon the Borrower, or (iii) any material financial
agreement or instrument of the Borrower.

		
	 	         (d) This Amendment has been duly executed and delivered by the
Borrower. Each of this Amendment and the Credit Agreement, as amended
by this Amendment, constitutes a valid and binding agreement of the
Borrower, enforceable in accordance with its terms except as may be
limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights generally
and by general principles of equity.
	 
	 	         (e) As of the Amendment Effective Date, no Default has
occurred and is continuing.

         SECTION 8. Governing Law. This Amendment shall be governed by
and construed in accordance with the laws of the State of New York.

         SECTION 9. Counterparts; Effectiveness. This Amendment may be
signed in any number of counterparts, each of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same
instrument. This Amendment shall become effective on the date of the
satisfaction in full of the following conditions precedent (the “Amendment
Effective Date”):

		
	 	         (a) The Agent shall have received duly executed counterparts
hereof which, when taken together, bear the authorized signatures of
the Borrower, the Agent and the Required Banks; and
	 
	 	         (f) the Agent shall have received all fees and other amounts
due and payable by the Borrower under this Amendment and the Credit
Agreement on or prior to the Amendment Effective Date, including, to
the extent invoiced, reimbursement or payment of all out-of-pocket
expenses required to be reimbursed or paid by the Borrower.

 

 

 7

The Agent shall promptly notify the Borrower and the Banks of the Amendment
Effective Date, and such notice shall be conclusive and binding on all parties
hereto.

         SECTION 10. Credit Agreement. Except as specifically stated
herein, the Credit Agreement shall continue in full force and effect in
accordance with the provisions thereof.

         SECTION 11. Expenses. The Borrower agrees to reimburse the
Agent for its out-of-pocket expenses in connection with this Amendment,
including the reasonable fees, charges and disbursements of Cravath, Swaine &
Moore, counsel for the Agent.

 

 

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

	 	 	 	 	 
	 	 	AETNA INC.,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Alfred P. Quirk Jr.

Name: Alfred P. Quirk Jr.
	
	
	
	

	 	 	 	 	Title: Vice President, Finance and Treasurer

 

 

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, individually
and as Agent,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Dawn Lee Lum

Name: Dawn Lee Lum
	
	
	
	

	 	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	DEUTSCHE BANK AG, NEW YORK AND/OR

CAYMAN ISLANDS BRANCHES,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Ruth Leung

Name: Ruth Leung

Title: Director
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Clinton M. Johnson

Name: Clinton M. Johnson
	
	
	
	

	 	 	 	 	Title: Managing Director

 

 

	 	 	 	 	 
	 	 	CITIBANK, N.A.,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Maria Hackley

Name: Maria Hackley

Title: Director

 

 

	 	 	 	 	 
	 	 	BANK ONE, NA (MAIN OFFICE CHICAGO),
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Jason D. White

Name: Jason D. White

Title: Director

 

 

	 	 	 	 	 
	 	 	FIRST UNION NATIONAL BANK,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Thomas L. Stitchberry

Name: Thomas L. Stitchberry

Title: Senior Vice President

 

 

	 	 	 	 	 
	 	 	FLEET NATIONAL BANK,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Celeste Echlin

Name: Celeste Echlin

Title: Director

 

 

	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ William S. Lutkins

Name: William S. Lutkins

Title: Vice President
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Robert Hetu

Name: Robert Hetu

Title: Director

 

 

	 	 	 	 	 
	 	 	STATE STREET BANK AND TRUST COMPANY,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Edward M. Anderson

Name: Edward M. Anderson

Title: Vice President

 

 

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Michael Flannery

Name: Michael Flannery

Title: Vice President

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