Document:

WellChoice, Inc. 2003 Omnibus Incentive Plan

 Exhibit 10.24 
  
 WELLCHOICE, INC. 
  
 2003 OMNIBUS INCENTIVE PLAN 
  
 EFFECTIVE AS OF NOVEMBER 7, 2003 

 WellChoice, Inc. 
  
 2003 OMNIBUS INCENTIVE PLAN 
  

1. Purpose. WellChoice, Inc. 2003 Omnibus Incentive Plan (the “Plan”) is intended to provide incentives which will attract,
retain, motivate and reward highly competent persons who are officers, key employees and non-employee directors of WellChoice, Inc. (the “Company”) and its subsidiaries and affiliates, by providing them with appropriate incentives
and rewards to encourage them to enter into and continue in the employ or service of the Company, to acquire a proprietary interest in the long-term success of the Company. 
  
 2. Administration. 
  
 (a) Committee. The Plan will be administered by the compensation committee of the Board of Directors of the Company (the “Board”)
or such other committee appointed by the Board from among its members (the “Committee”) and shall be comprised, unless otherwise determined by the Board, solely of not less than two (2) members who shall be (i) “Non-Employee
Directors” within the meaning of Rule 16b-3(b)(3) (or any successor rule) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and (ii) ”outside directors” within the
meaning of Treasury Regulation Section 1.162-27(e)(3) under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”). 
  
 (b) Authority. The Committee is authorized, subject to the provisions of the Plan, to establish such rules and regulations as it deems necessary
for the proper administration of the Plan and to make such determinations and interpretations and to take such action in connection with the Plan and any Benefits granted hereunder as it deems necessary or advisable. All determinations and
interpretations made by the Committee shall be binding and conclusive on all participants and their legal representatives. 
  
 (c) Indemnification. No member of the Committee and no employee of the Company shall be liable for any act or failure to act hereunder, except in
circumstances involving his or her bad faith or willful misconduct, or for any act or failure to act hereunder by any other member or employee or by any agent to whom duties in connection with the administration of this Plan have been delegated. The
Company shall indemnify members of the Committee and any agent of the Committee who is an employee of the Company, a subsidiary or an affiliate against any and all liabilities or expenses to which they may be subjected by reason of any act or
failure to act with respect to their duties on behalf of the Plan, except in circumstances involving such person’s bad faith or willful misconduct. 
  
 (d) Delegation and Advisers. The Committee may delegate to one or more of its members or officers of the Company any duties, power or authority it
has under the Plan pursuant to such conditions as the Committee may establish, except that 
  

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the Committee shall not delegate its powers and duties under the Plan (1) with regard to Benefits issued to officers of the Company who are subject to
Section 16 of the Exchange Act, or (2) in such a manner as would cause grants intended to qualify as Performance-Based Awards to fail to so qualify. In addition, the Committee may delegate to one or more of its members, or to one or more agents,
such administrative duties as it may deem advisable, and the Committee, or any person to whom it has delegated duties as aforesaid, may employ one or more persons to render advice with respect to any responsibility the Committee or such person may
have under the Plan. The Committee may employ such legal or other counsel, consultants and agents as it may deem desirable for the administration of the Plan and may rely upon any opinion or computation received from any such counsel, consultant or
agent. Expenses incurred by the Committee in the engagement of such counsel, consultant or agent shall be paid by the Company, or the subsidiary or affiliate whose employees have benefited from the Plan, as determined by the Committee. 

 
 3. Participants. Participants will consist of such officers, key
employees and Non-Employee Directors of the Company and its subsidiaries and affiliates as the Committee in its sole discretion determines to be significantly responsible for the success and future growth and profitability of the Company and whom
the Committee may designate from time to time to receive Benefits under the Plan. Designation of a participant in any year shall not require the Committee to designate such person to receive a Benefit in any other year or, once designated, to
receive the same type or amount of Benefit as granted to the participant in any other year. The Committee shall consider such factors as it deems pertinent in selecting participants and in determining the type and amount of their respective
Benefits. Non-Employee Directors of the Company and its subsidiaries shall not be eligible for Cash Awards (as described below). 
  
 4. Type of Benefits. Benefits under the Plan may be granted in any one or a combination of (a) Stock Options, (b) Stock Appreciation Rights, (c)
Restricted Stock Awards, (d) Restricted Stock Units, and (e) Cash Awards (each as described below, and collectively, the “Benefits”). Restricted Stock Awards, Restricted Stock Units and Cash Awards may, as determined by the
Committee in its discretion, constitute Performance-Based Awards, as described in Section 11 hereof. Benefits granted under the Plan shall be evidenced by agreements (which need not be identical) that may provide additional terms and conditions
associated with such Benefits, as determined by the Committee in its sole discretion, provided, however, that in the event of any conflict between the provisions of the Plan and any such agreement, the provisions of the Plan shall
prevail. 
  
 5. Common Stock Available Under the Plan.

  
 (a) Limitations. 
  
 (i) Plan Limitations. 
  
 (A) Total Number of Shares. The aggregate number of
shares of common stock of the Company, par value $0.01 (“Common Stock”) that may be 
  

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subject to Benefits and issued under this Plan shall be 6,250,000 shares of Common Stock, subject to any adjustments made in accordance with Sections 5(b)
and (c), and 13 hereof. Shares of Common Stock may be authorized and unissued shares, treasury shares or shares previously authorized and issued and purchased by the Company for purposes of satisfying Awards under the Plan. 
  
 (B) Restricted Stock Awards and Restricted Stock
Units. The maximum number of shares of Common Stock that may be granted or measured under the Plan as Restricted Stock Awards or Restricted Stock Units and that vest or otherwise become non-forfeitable by a participant during the term of the
Plan shall be 1,875,000 shares, subject to any adjustments made in accordance with Section 13 hereof and, with respect to shares previously subject to any Restricted Stock Award or Restricted Stock Units, Sections 5(b) and (c) hereof. 
  
 (C) Non-Employee Director Awards. The maximum number
of shares of Common Stock that may be granted or measured under Awards to Non-Employee Directors during the term of the Plan shall be 500,000, subject to any adjustments made in accordance with Section 13 hereof and, with respect to shares of Common
Stock previously subject to any Award, Sections 5(b) and (c) hereof. 
  
 (ii) Individual Limitations. Notwithstanding any other provision in this Plan, the following limitations shall apply to the Awards described below, subject to adjustment pursuant to Section 13 hereof:

  
 (A) Stock Options and Stock Appreciation
Rights. The maximum number of shares of Common Stock with respect to which Stock Options (whether or not Incentive Stock Options) or Stock Appreciation Rights may be granted or measured to any individual participant under the Plan in any
calendar year during the term of the Plan shall be 300,000 shares, subject to adjustment pursuant to Section 13 hereof. 
  
 (B) Restricted Stock Awards or Restricted Stock Units. The maximum number of shares of Common Stock that may be granted or measured
to any individual participant under the Plan as Restricted Stock Awards or Restricted Stock Units during any calendar year during the term of the Plan shall be 100,000 shares, subject to adjustment pursuant to Section 13 hereof. 
  
 (C) Performance Award Limitation for Long-Term Incentive
Awards. Subject to Section 5(a)(ii)(A) and 5(a)(ii)(B) above, the maximum amount of any Performance-Based Award containing a performance period in excess of one year, payable or distributable to any participant who is a “covered
employee” within the meaning of Section 162(m) whether in cash, shares or other property shall be the lesser of (i) $3 million multiplied by the number of years in the performance period governing such Award, and (ii) $10 million.

  

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 (D) Performance Award Limitation for Annual Incentive Awards. Subject to Section
5(a)(ii)(A) and 5(a)(ii)(B) above, the maximum amount of any Performance-Based Award, containing a performance period of one year, payable or distributable to any Covered Employee whether in cash, shares or other property shall be $5 million.

  
 (E) Non-Employee Director Benefits.
The maximum number of shares of Common Stock that may be granted or measured under Awards to any individual Non-Employee Director during the term of the Plan in any calendar year shall be 10,000, subject to adjustment pursuant to Section 13 hereof.

  
 (F) Ownership Limitation. No
participant may receive a Benefit under the Plan, if immediately after the receipt of such Benefit, such participant would Beneficially Own more than five percent (5%) of the issued and outstanding Capital Stock of the Company. The terms
“Beneficially Own” and “Capital Stock” have the meanings ascribed to them in the Company’s certificate of incorporation. 
  
 (b) Additional Shares. The following shares of Common Stock subject to, relating to or arising out of Benefits under
the Plan shall again be available for any type of Benefits under the Plan for purposes of the Plan limitations contained in Section 5(a)(i) but not for any of the individual limitations contained in Section 5(a)(ii): 
  
 (i) Unexercised Stock Options and Stock Appreciation
Rights. Any shares of Common Stock subject to a Stock Option or Stock Appreciation Right which for any reason is cancelled or terminated without having been exercised; 
  
 (ii) Forfeited Restricted Stock Awards, Restricted Stock Units, and Performance-Based Awards. Any
shares subject to Restricted Stock Awards, Restricted Stock Units or Performance Awards that are forfeited; 
  
 (iii) Shares Delivered in Payment or to Satisfy a Tax Obligation. Any shares delivered to the Company as part or full payment of
the exercise or purchase price of a Stock Option, Stock Appreciation Right or Restricted Stock Award or to satisfy a tax obligation in connection with an Award, including any shares withheld by the Company pursuant to Section 17 hereof to satisfy
any tax withholding requirements; 
  
 (iv)
Awards Settled in Cash. Any Awards settled in cash; and 
  
 (v) Shares repurchased with Option Exercise Proceeds. Any shares of Common Stock that are repurchased by the Company on the open market or in private transactions in which the Company is a party, may be added
to the aggregate number of shares available for issuance for the exercise of Options or issuance of other Benefits under this Plan provided (i) the aggregate price paid for the repurchased shares does not exceed the cumulative amount received in
cash 
  

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by the Company and (ii) the repurchased shares shall not be added to the maximum number of shares issued with respect to Options under the Plan which shall
not exceed 6,250,000, subject to other adjustments pursuant to Section 5(b)(i) through (iv), 5(c) and 13 hereof. 
  
 (c) Acquisitions. In connection with the acquisition of any business by the Company or any of its subsidiaries or affiliates, any outstanding
grants, awards or sales of options or other similar rights pertaining to such business may be assumed or replaced by Benefits under the Plan upon such terms and conditions as the Committee determines. The date of any such grant or award shall relate
back to the date of the initial grant or award being assumed or replaced, and service with the acquired business shall constitute service with the Company or its subsidiaries or affiliates for purposes of such grant or award. Any shares of Common
Stock underlying any grant or award or sale pursuant to any such acquisition shall be disregarded for purposes of applying the limitations under and shall not reduce the number of shares of Common Stock available under Section 5(a)(i) above.

  
 6. Stock Options. 
  
 (a) Generally. Stock Options will consist of awards from the Company
that will enable the holder to purchase a number of shares of Common Stock, at set terms. Stock Options may be “incentive stock options” (“Incentive Stock Options”), within the meaning of Section 422 of the Code, or
Stock Options which do not constitute Incentive Stock Options (“Nonqualified Stock Options”). The Committee will have the authority to grant to any participant one or more Incentive Stock Options, Nonqualified Stock Options, or both
types of Stock Options (in each case with or without Stock Appreciation Rights). Each Stock Option shall be subject to such terms and conditions, including vesting, consistent with the Plan as the Committee may impose from time to time, subject to
the following limitations: 
  
 (b) Exercise Price.
Each Stock Option granted hereunder shall have per-share exercise price as the Committee may determine at the date of grant but in no event less than one hundred percent (100%) of the Fair Market Value of Common Stock on the date of grant.

  
 (c) Payment of Exercise Price. The option
exercise price may be paid in cash or, in the discretion of the Committee, one or more of the following that the Committee determines to be consistent with applicable law (including, when applicable, the Sarbanes-Oxley Act of 2002, as it may be
amended from time to time) and the purpose of the Plan: 
  
 (A) by the delivery of shares of Common Stock of the Company then owned by the participant, provided any shares acquired upon exercise of a Stock Option or other Benefit have been held for at least six (6) months by
the participant; 
  

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 (B) by delivering a properly executed exercise notice to the Company together with a copy
of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds to pay the exercise price. To facilitate the foregoing, the Company may enter into agreements for coordinated procedures with one or more
brokerage firms; and 
  
 (C) by permitting the
cashless exercise of the Stock Option where the number of shares to be delivered to the participant upon exercise of the Stock Option is reduced by a number of shares of Common Stock having a Fair Market Value equal to the exercise price and the
amount necessary to satisfy any tax obligations in connection with the exercise of the Stock Option. 
  
 (d) Exercise Period. Subject to Section 6(f) hereof, Stock Options granted under the Plan shall be exercisable at such time or times and
subject to such terms and conditions, including vesting, as shall be determined by the Committee; provided, however, that no Stock Option shall be exercisable later than ten (10) years after the date it is granted except in the event of a
participant’s death, in which case, the exercise period of such participant’s Stock Options may be extended beyond such period but no later than one (1) year after the participant’s death. All Stock Options shall terminate at such
earlier times and upon such conditions or circumstances as the Committee shall in its discretion set forth in such option agreement at the date of grant. 
  
 (e) Limitations on Incentive Stock Options. Incentive Stock Options may be granted only to participants who are employees of the Company or
of a “Parent Corporation” or “Subsidiary Corporation” (as defined in Sections 424(e) and (f) of the Code, respectively) at the date of grant. The aggregate Fair Market Value (determined as of the time the Stock
Option is granted) of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by a participant during any calendar year (under all option plans of the Company and of any Parent Corporation or Subsidiary
Corporation ) shall not exceed one hundred thousand dollars ($100,000). For purposes of the preceding sentence, Incentive Stock Options will be taken into account in the order in which they are granted. The per-share exercise price of an Incentive
Stock Option shall not be less than one hundred percent (100%) of the Fair Market Value of the Common Stock on the date of grant, and no Incentive Stock Option may be exercised later than ten (10) years after the date it is granted. 
  
 (f) Minimum Vesting Period. If the vesting of a Stock Option is
not linked to any of the business criteria described in Section 11(b), then no portion of such Stock Option shall vest earlier than one (1) year following the date of grant except for the acceleration of vesting upon or immediately prior to the
occurrence of a Change in Control. 
  
 7. Stock Appreciation
Rights. 
  
 (a) Generally. The Committee may, in its
discretion, grant Stock Appreciation Rights, including a concurrent grant of Stock Appreciation Rights in 
  

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tandem with any Stock Option grant. A Stock Appreciation Right means a right to receive a payment in cash, Common Stock or a combination thereof, for an
amount equal to the excess of (i) the Fair Market Value, or other specified valuation, of a specified number of shares of Common Stock on the date the right is exercised over (ii) the Fair Market Value, of such shares of Common Stock on the date the
right is granted, or other specified amount, all as determined by the Committee; provided, however, that if a Stock Appreciation Right is granted in tandem with or in substitution for a Stock Option, the designated Fair Market Value in
the award agreement shall reflect the Fair Market Value on the date such Stock Option was granted. Each Stock Appreciation Right shall be subject to such terms and conditions, including vesting, as the Committee shall impose from time to time.

  
 (b) Exercise Period. Stock Appreciation Rights granted
under the Plan shall be exercisable, at such time or times and subject to such terms and conditions, including vesting, as shall be determined by the Committee; provided, however, that no Stock Appreciation Rights shall be exercisable later
than ten (10) years after the date it is granted except in the event of a participant’s death, in which case, the exercise period of such participant’s Stock Appreciation Rights may be extended beyond such period but no later than one (1)
year after the participant’s death. All Stock Appreciation Rights shall terminate at such earlier times and upon such conditions or circumstances as the Committee shall in its discretion set forth in such right at the date of grant. 

 
 (c) Minimum Vesting Period. If the vesting of a Stock Appreciation
Right is not linked to any of the business criteria described in Section 11(b), then no portion of such Stock Appreciation Right shall vest earlier than one (1) year following the date of grant, except that the Committee may provide for the
acceleration of vesting upon or immediately prior to the occurrence of a Change in Control. 
  
 8. Restricted Stock Awards. 
  
 (a) Generally. The Committee may, in its discretion, grant Restricted Stock Awards (which may include mandatory payment of any bonus in stock) consisting of Common Stock issued or transferred to participants with or without other
payments therefor. A Restricted Stock Award shall be construed as an offer by the Company to the participant to purchase the number of shares of Common Stock subject to the Restricted Stock Award at the purchase price, if any, established therefor.
Any right to acquire the shares under the Restricted Stock Award that is not accepted by the participant within thirty (30) days after the grant is communicated shall automatically expire. 
  
 (b) Payment of the Purchase Price. If the Restricted Stock Award
requires payment therefor, the purchase price of any shares of Common Stock subject to a Restricted Stock Award may be paid in any manner authorized by the Committee, which may include any manner authorized under the Plan for the payment of the
exercise price of a Stock Option. Restricted Stock Awards may also be made in consideration of services rendered to the Company or its subsidiaries or affiliates. 
  

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 (c) Additional Terms. Restricted Stock Awards shall be subject to such terms and conditions as the
Committee deems appropriate including, without limitation, (i) vesting, (ii) restrictions on the transfer of such shares, (iii) the right of the Company to reacquire such shares for no consideration, and (iv) a waiver by the participant of the right
to vote or to receive any dividend or other right or property with respect thereto), and may also constitute Performance-Based Awards, as described in Section 11 hereof; provided, however, that if the vesting of a Restricted Stock
Award is not linked to any of the business criteria described in Section 11(b) or not issued in payment of other compensation that has been earned by the participant, then no portion of such Restricted Stock Award shall vest earlier than one (1)
year following the date of grant except for the acceleration of such vesting upon or immediately prior to the occurrence of a Change in Control. The Committee may require the participant to deliver a duly signed stock power, endorsed in blank,
relating to the Common Stock covered by such an Award. The Committee may also require that the stock certificates evidencing such shares be held in custody or bear restrictive legends until the restrictions thereon shall have lapsed. 
  
 (d) Rights as a Shareholder. The Restricted Stock Award shall specify
whether the participant shall have, with respect to the shares of Common Stock subject to a Restricted Stock Award, all of the rights of a holder of shares of Common Stock of the Company, including the right to receive dividends and to vote the
shares. 
  
 9. Restricted Stock Units. 
  
 (a) Generally. The Committee may, in its discretion, grant Restricted
Stock Units (as defined in subsection (c) below) to participants hereunder. Restricted Stock Units shall be subject to such terms and conditions as the Committee deems appropriate, including, without limitation, (i) vesting, (ii) restrictions on the
transfer of such Units, (iii) forfeiture provisions, and (iv) a waiver by the participant of the right to vote or to receive any dividend or other right or property with respect thereto), and may also constitute Performance-Based Awards, as
described in Section 11 hereof; provided, however, that if the vesting of a Restricted Stock Unit is not linked to any of the business criteria described in Section 11(b) or not issued in payment of other compensation that has been
earned by the participant, then no portion of such Restricted Stock Unit shall vest earlier than one (1) year following the date of grant except for the acceleration of such vesting upon or immediately prior to the occurrence of a Change in Control.
The Committee shall determine whether a participant granted a Restricted Stock Unit shall be entitled to a Dividend Equivalent Right (as defined in subsection (c) below). 
  
 (b) Settlement of Restricted Stock Units. A Restricted Stock Unit granted by the Committee shall provide payment in
shares of Common Stock at such time as the award agreement shall specify unless the Committee provides for the payment of the Restricted Stock Units in cash equal to the value of the shares of Common Stock which would otherwise be distributed to the
participant or partly in cash and partly in shares of Common Stock. Shares of Common Stock issued pursuant to this Section 9 
  

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may be issued with or without other payments therefor as may be required by applicable law or such other consideration as may be determined by the Committee.

  
 (c) Definitions. A “Restricted Stock
Unit” means a notional account representing one (1) share of Common Stock. A “Dividend Equivalent Right” means the right to receive the amount of any dividend paid on the share of Common Stock underlying a Restricted Stock
Unit, which shall be payable in cash or in the form of additional Restricted Stock Units. 
  
 10. Cash Awards. 
  
 The
Committee may, in its discretion, grant awards to be settled solely in cash (“Cash Awards”). Cash Awards may be subject to such terms and conditions, including vesting, as the Committee determines appropriate. Cash Awards may
constitute Performance-Based Awards, as described in Section 11 hereof. 
  
 11. Performance-Based Awards. 
  
 (a)
Generally. Any Benefits granted under the Plan may be granted in a manner such that the Benefits qualify for the performance-based compensation exemption of Section 162(m) of the Code (“Performance-Based Awards”). As
determined by the Committee in its sole discretion, either the granting or vesting of such Performance-Based Awards shall be based on achievement of hurdle rates and/or growth rates in one or more business criteria that apply to the individual
participant, one or more business units or the Company as a whole. 
  
 (b) Business Criteria. The business criteria shall be as follows, individually or in combination: (i) earnings; (ii) earnings per share; (iii) market share; (iv) operating profit; (v) operating margin; (vi) return on equity; (vii)
return on assets; (viii) total return to stockholders; (ix) revenues; (x) cash flows, (xi) membership; (xii) member satisfaction; (xiii) technology improvements; (xiv) claims handling; and (xv) return on investment capital. In addition,
Performance-Based Awards may include comparisons to the performance of other companies, such performance to be measured by one or more of the foregoing business criteria. 
  
 (c) Establishment of Performance Goals. With respect to Performance-Based Awards, the Committee shall establish in
writing (i) the performance goals applicable to a given period, and such performance goals shall state, in terms of an objective formula or standard, the method for computing the amount of compensation payable to the participant if such performance
goals are obtained and (ii) the individual employees or class of employees to which such performance goals apply no later than ninety (90) days after the commencement of such period (but in no event after twenty-five percent (25%) of such period has
elapsed). 
  

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 (d) Certification of Performance. No Performance-Based Awards shall be payable to or vest with
respect to, as the case may be, any participant for a given period until the Committee certifies in writing that the objective performance goals (and any other material terms) applicable to such period have been satisfied. 
  
 (e) Modification of Performance-Based Awards. With respect to any
Benefits intended to qualify as Performance-Based Awards, after establishment of a performance goal, the Committee shall not revise such performance goal or increase the amount of compensation payable thereunder (as determined in accordance with
Section 162(m) of the Code) upon the attainment of such performance goal. Notwithstanding the preceding sentence, the Committee may reduce or eliminate the number of shares of Common Stock or cash granted or the number of shares of Common Stock
vested upon the attainment of such performance goal. 
  
 (f)
Settlement of Performance-Based Awards. Performance-Based Awards may be settled in cash, shares of Common Stock or any combination thereof. Should the Committee so provide, settlement of Performance-Based Awards may be deferred and paid in
installments or a lump sum in accordance with such procedures as may be established by the Committee. Such deferred awards may be credited with a reasonable rate of interest. 
  
 (g) Annual Executive Incentive Plan. Annual bonuses under the Company’s Annual Executive Incentive Compensation
Plan for the Company’s senior executive officers and bonuses to other employees to be settled in (or measured by reference to) shares of Common Stock, shall be designed as Performance-Based Awards and settled under this Plan. Unless the
Committee provides otherwise, award opportunities under the Annual Executive Incentive Plan shall be set as a percentage of base salary, subject to the limitations contained in Section 5 hereof. 
  
 (h) Long Term Incentive Plan. Awards made under the Company’s
Long Term Incentive Plan to the Company’s senior executive officers and awards to other employees to be settled (or measured by reference to) shares of Common Stock, shall be designed as Performance-Based Awards and settled under this Plan.

  
 12. Non-Employee Director Awards. 
  
 (a) Avoidance of Conflicts. No member of the Committee shall exercise
discretion with respect to his own Benefit unless such discretion is applicable uniformly to the Benefits of similarly situated Non-Employee Director participants. 
  
 (b) Taxes. Upon or prior to the exercise of an Option or receipt of Common Stock, a Non-Employee Director may make a
written election to have shares of Common Stock withheld by the Company from the shares otherwise to be received to cover Federal, state or local income, and other taxes and governmental obligations (“Taxes”) incurred by the reason
of the exercise or issuance of Benefits under the Plan. The number of shares so withheld shall have an aggregate Fair Market Value on the date 
  

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of exercise sufficient to satisfy the applicable Taxes. The acceptance of any such election by an Optionee shall be at the sole discretion of the Committee.
Such Taxes shall be calculated at minimum statutory withholding rates. 
  
 13. Adjustment Provisions; Change in Control. 
  
 (a) Adjustment Generally. If there shall be any change in the Common Stock of the Company, through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, reverse stock split, split up, spin-off,
combination of shares, exchange of shares, dividend in kind or other like change in capital structure or distribution (other than normal cash dividends) to stockholders of the Company, an adjustment shall be made to each outstanding Stock Option and
Stock Appreciation Right such that each such Stock Option and Stock Appreciation Right shall thereafter be exercisable for such securities, cash and/or other property as would have been received in respect of the Common Stock subject to such Stock
Option or Stock Appreciation Right had such Stock Option or Stock Appreciation Right been exercised in full immediately prior to such change or distribution, and such an adjustment shall be made successively each time any such change shall occur.

  
 (b) Modification of Benefits. In the event of any
change or distribution described in subsection (a) above, in order to prevent dilution or enlargement of participants’ rights under the Plan, the Committee will have authority to adjust, in an equitable manner, the number and kind of shares
that may be issued under the Plan, the number and kind of shares subject to outstanding Benefits, the exercise price applicable to outstanding Benefits, and the Fair Market Value of the Common Stock and other value determinations applicable to
outstanding Benefits; provided, however, that any such arithmetic adjustment to a Performance-Based Award shall not cause the amount of compensation payable thereunder to be increased from what otherwise would have been due upon attainment of
the unadjusted award. Appropriate adjustments may also be made by the Committee in the terms of any Benefits under the Plan to reflect such changes or distributions and to modify any other terms of outstanding Benefits on an equitable basis,
including modifications of performance targets and changes in the length of performance periods; provided, however, that any such arithmetic adjustment to a Performance-Based Award shall not cause the amount of compensation payable thereunder
to be increased from what otherwise would have been due upon attainment of the unadjusted award. In addition, other than with respect to Stock Options, Stock Appreciation Rights, and other awards intended to constitute Performance-Based Awards, the
Committee is authorized to make adjustments to the terms and conditions of, and the criteria included in, Benefits in recognition of unusual or nonrecurring events affecting the Company or the financial statements of the Company, or in response to
changes in applicable laws, regulations, or accounting principles. Notwithstanding the foregoing, (i) each such adjustment with respect to an Incentive Stock Option shall comply with the rules of Section 424(a) of the Code, and (ii) in no event
shall any adjustment be made which would render any Incentive Stock Option granted hereunder other than an incentive stock option for purposes of Section 422 of the Code. 
  

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 (c) Effect of a Change in Control. Notwithstanding any other provision of this Plan, unless the
Committee shall determine otherwise at the time of grant with respect to a particular Benefit, in the event of a Change in Control: 
  
 (i) All outstanding Benefits (other than those Benefits designed to qualify as Performance-Based Awards) shall become fully and
immediately exercisable and vested and all deferrals and restrictions with respect thereto shall lapse unless such Benefits are converted, assumed or replaced by a successor. In the event of a Change in Control in which such Benefits are not
converted, assumed or replaced by a successor, all such Benefits shall be subject to the terms of any agreement effecting the Change in Control, which agreement, may provide, without limitation, that each Stock Option and Stock Appreciation Right
outstanding hereunder shall terminate within a specified number of days after notice to the holder, and that such holder shall receive, with respect to each share of Common Stock subject to such Stock Option or Stock Appreciation Right, an amount
equal to the excess of the Fair Market Value of such shares of Common Stock immediately prior to the occurrence of such Change in Control over the exercise price per share underlying such Stock Option or Stock Appreciation Right with such amount
payable in cash, in one or more kinds of property (including the property, if any, payable in the transaction) or in a combination thereof, as the Committee, in its discretion, shall determine. A provision like the one contained in the preceding
sentence shall be inapplicable to a Stock Option or Stock Appreciation Right granted within six (6) months before the occurrence of a Change in Control if the holder of such Stock Option or Stock Appreciation Right is subject to the reporting
requirements of Section 16(a) of the Exchange Act and no exception from liability under Section 16(b) of the Exchange Act is otherwise available to such holder. 
  
 (ii) If following a Change in Control, the Benefits of a participant (other than those Benefits designed to
qualify as Performance-Based Awards) are converted, assumed or replaced by a successor and within twenty-four (24) months following such Change in Control the participant’s employment with the Company or the successor is terminated by the
Company (or the successor) without “Cause” or by the participant for “Good Reason” (as such terms are defined in Section 13(d) below), then as of the date that employment terminates the unvested portion of such
Benefits shall become fully exercisable and vested and all deferrals and restrictions on any such Benefits shall lapse. 
  
 (iii) Upon a Change in Control, all Performance-Based Awards (and cash or other awards the payment of which depends on achievement of
performance factors (a “performance-type award”) shall, if appropriate, be adjusted pursuant to Section 13(a) above. If within 24 months following a Change in Control, a participant’s employment with the Company or the
successor is terminated by the Company (or the successor) without Cause or by the participant for Good Reason, the Company (or the successor) shall pay the participant (A) any accrued but unpaid Performance-Based Award (and each other 
  

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performance-type award) which had not been paid for any performance periods that ended prior to date employment terminated, and (B) a pro-rata
Performance-Based Award (and each other performance-type award) for each performance period that had not been completed as of the date of employment termination, based on the target award established for each such performance period and any
requirement that a participant remain employed to receive a Performance-Based Award shall be waived. 
  
 (d) Definitions. The following definitions used in this Section 13 shall have the meaning ascribed to them below: 
  
 (i) “Cause” shall mean
“cause” as defined in any individual employment, severance or Change in Control agreement between the Company and the participant or in the absence of any such agreement, “cause” as defined in the Award
agreement. 
  
 (ii) “Change
in Control” of the Company shall be deemed to have occurred upon any of the following events: 
  
 (A) Any person (as such term is used in Section 13(d) and 14(d) of the Exchange Act, other than the Fund referred to below, is or becomes
the “beneficial owner” (as determined for purposes of Regulation 13D-G under the Exchange Act as currently in effect), directly or indirectly, of securities of the Company representing twenty-five percent (25%) or more of the
combined voting power of the Company’s then outstanding securities; or 
  
 (B) During any period of two (2) consecutive years, individuals who at the beginning of such period constitute the Board and any new director, whose election to the Board or nomination for election to the Board was
approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to
constitute a majority of the Board; or 
  
 (C)
The Company effects a merger or consolidation with any other corporation, other than a merger or consolidation (1) which does not result in any person becoming the beneficial owner, directly or indirectly of securities of the Company or the
surviving entity fifty percent (50%) or more of the combined voting power of the Company’s (or such surviving entity’s) then outstanding securities, and (2) in which a majority of the Board of Directors of the Company or such surviving
entity immediately after such merger or consolidation is comprised of directors of the Company immediately prior to such merger or consolidation; or 
  

 14 

 (D) The Company sells or disposes of all or substantially all of the Company’s
assets. 
  
 Notwithstanding anything to the contrary set forth
herein, the ownership of The New York State Public Asset Fund of more than twenty-five percent (25%) of the Company’s securities does not constitute a Change in Control for purposes of this Plan. 
  
 (iii) “Good Reason” shall mean
“good reason” as defined in any individual employment, severance or Change in Control agreement between the Company and the participant or in the absence of any such agreement, “good reason” as defined in the Award
agreement. 
  
 14. Nontransferability. Each Benefit
granted under the Plan to a participant (other than that portion of a Restricted Stock Award or Cash Award which has vested) shall not be transferable otherwise than by will or the laws of descent and distribution, and shall be exercisable, during
the participant’s lifetime, only by the participant. In the event of the death of a participant, each Stock Option or Stock Appreciation Right theretofore granted to him or her shall be exercisable during such period after his or her death as
the Committee shall in its discretion set forth in such option or right at the date of grant and then only by the executor or administrator of the estate of the deceased participant or the person or persons to whom the deceased participant’s
rights under the Stock Option or Stock Appreciation Right shall pass by will or the laws of descent and distribution. Notwithstanding the foregoing, at the discretion of the Committee, an award of a Benefit other than an Incentive Stock Option may
permit the transferability of a Benefit by a participant solely to the participant’s spouse, siblings, parents, children and grandchildren or trusts for the benefit of such persons or partnerships, corporations, limited liability companies or
other entities owned solely by such persons, including trusts for such persons, subject to any restriction included in the award of the Benefit. 
  
 15. Other Provisions. The award of any Benefit under the Plan may also be subject to such other provisions (whether or not applicable to the
Benefit awarded to any other participant) as the Committee determines appropriate, including, without limitation, for the forfeiture of, or restrictions on resale or other disposition of, Common Stock acquired under any form of Benefit, for the
payment of the value of Benefits to participants in the event of a Change in Control, or to comply with federal and state securities laws, or understandings or conditions as to the participant’s service with the Company in addition to those
specifically provided for under the Plan. 
  
 16. Fair Market
Value. For purposes of this Plan and any Benefits awarded hereunder, Fair Market Value shall be the average of the high and low sale prices of the Company’s Common Stock on the date of calculation (or on the last preceding trading date if
Common Stock was not traded on such date) if the Company’s Common Stock is readily tradable on a national securities exchange or other market system, and if the Company’s Common Stock is not readily tradable, Fair Market Value shall mean
the 
  

 15 

 
amount determined in good faith by the Committee as the fair market value of the Common Stock of the Company. 
  
 17. Withholding. All payments or distributions of Benefits made
pursuant to the Plan shall be net of any amounts required to be withheld pursuant to applicable Taxes. If the Company proposes or is required to distribute Common Stock pursuant to the Plan, it may require the recipient to remit to it or to the
corporation that employs such recipient an amount sufficient to satisfy such tax withholding requirements prior to the delivery of any certificates for such Common Stock. In lieu thereof, the Company or the employing corporation shall have the right
to withhold the amount of Taxes from any other sums due or to become due from such corporation to the recipient as the Committee shall prescribe. The Committee may, in its discretion and subject to such rules as it may adopt (including any as may be
required to satisfy applicable tax and/or non-tax regulatory requirements), permit an optionee or award or right holder to pay all or a portion of Taxes arising in connection with any Benefit consisting of shares of Common Stock by electing to have
the Company withhold shares of Common Stock having a Fair Market Value equal to the amount of Taxes to be withheld. Such Taxes shall be calculated at minimum statutory withholding rates. 
  
 18. Tenure. A participant’s right, if any, to continue to serve the Company or any of its subsidiaries or
affiliates as an officer, employee, Non-Employee Director or otherwise, shall not be enlarged or otherwise affected by his or her designation as a participant under the Plan. 
  
 19. Unfunded Plan. Participants shall have no right, title, or interest whatsoever in or to any investments which the
Company may make to aid it in meeting its obligations under the Plan. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the
Company and any participant, beneficiary, legal representative or any other person. To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of an unsecured
general creditor of the Company. All payments to be made hereunder shall be paid from the general funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts
except as expressly set forth in the Plan. The Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended. 
  
 20. No Fractional Shares. No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan or any Benefit. The Committee
shall determine whether cash, or Benefits, or other property shall be issued or paid in lieu of fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated. 
  
 21. Duration, Amendment and Termination. No Benefit shall be granted
more than ten (10) years after the earlier of the Effective Date or the date of shareholder approval of the Plan and, unless shareholders re-approve the business criteria described in 
  

 16 

 
Section 11 hereof in the first shareholder’s meeting that occurs five (5) years after the Effective Date, no Performance-Based Award shall be granted
more than five (5) years after the Effective Date. The Committee may amend the Plan from time to time or suspend or terminate the Plan at any time. No amendment of the Plan may be made without approval of the stockholders of the Company if the
amendment will: (i) disqualify any Incentive Stock Options granted under the Plan; (ii) increase the aggregate number of shares of Common Stock that may be delivered through Stock Options under the Plan; (iii) increase the maximum amounts which can
be paid to an individual participant under the Plan as set forth in Section 5(a)(ii) hereof; (iv) permit the Committee to grant Stock Options with a per share exercise price less than Fair Market Value on the date of grant; (v) change the types of
business criteria on which Performance-Based Awards are to be based under the Plan; (vi) permit the Committee to re-price, substitute, replace or buy out Stock Options or Stock Appreciation Rights with an exercise price or grant price less than the
Fair Market Value of the Common Stock underlying such Stock Option or Stock Appreciation Right; (vii) modify the requirements as to eligibility for participation in the Plan; or (viii) take any action which would otherwise require shareholder
approval under the rules of the New York Stock Exchange or applicable law. 
  
 22. Governing Law. This Plan, Benefits granted hereunder and actions taken in connection herewith shall be governed and construed in accordance with the laws of the State of Delaware (regardless of the law that
might otherwise govern under applicable Delaware principles of conflict of laws). 
  
 23. Effective Date. The Plan shall be effective as of November 7, 2003 (the “Effective Date”), provided that the Plan is approved by the stockholders of the Company at an annual meeting or any
special meeting of stockholders of the Company within twelve (12) months of the Effective Date, and such approval of stockholders shall be a condition to the right of each participant to receive any Benefits hereunder. Any Benefits granted under the
Plan prior to such approval of stockholders shall be effective as of the date of grant (unless, with respect to any Benefit, the Committee specifies otherwise at the time of grant), but no such Benefit may be exercised or settled and no restrictions
relating to any Benefit may lapse prior to such stockholder approval, and if stockholders fail to approve the Plan as specified hereunder, any such Benefit shall be cancelled. 
  

 17 

 Index of Defined Terms 
  

	 Term

	 	 Section Where Defined or First Used

	 Benefits
	 	4
		
	 Beneficially Own (plan limits)
	 	5(a)(ii)(F)
		
	 Beneficial Owner (COC defn)
	 	13(d)(ii)(A)
		
	 Board
	 	2(a)
		
	 Capital Stock (plan limits)
	 	5(a)(ii)(F)
		
	 Cash Awards
	 	10
		
	 Cause
	 	13(d)(i)
		
	 Change in Control
	 	13(d)(ii)
		
	 Code
	 	2(a)
		
	 Committee
	 	2(a)
		
	 Common Stock
	 	5(a)(1)(A)
		
	 Company
	 	1
		
	 Covered Employee
	 	5(a)(ii)(C)
		
	 Dividend Equivalent Right
	 	9(c)
		
	 Effective Date
	 	23
		
	 Exchange Act
	 	2(a)
		
	 Fair Market Value
	 	16
		
	 Good Reason
	 	13(d)(iii)
		
	 Incentive Stock Option
	 	6(a)
		
	 Non-Employee Director
	 	2(a)
		
	 Nonqualified Stock Options
	 	6(a)
		
	 Outside Directors
	 	2(a)
		
	 Parent Corporation
	 	6(e)
		
	 Performance-Based Awards
	 	11(a)
		
	 Performance-Type Award
	 	13(c)(iii)
		
	 Plan
	 	1
		
	 Restricted Stock
	 	8
		
	 Restricted Stock Awards
	 	8(a)
		
	 Restricted Stock Unit
	 	9(c)
		
	 Stock Appreciation Rights
	 	7

  

 18 

	 Term

	 	 Section Where Defined or First Used

	 Stock Options
	 	6(a)
		
	 Subsidiary Corporation
	 	6(e)
		
	 Taxes
	 	12(b)

  

 19WellChoice, Inc. Employee Stock Purchase Plan

 Exhibit 10.25 
  
 WELLCHOICE, INC. 
 2003 EMPLOYEE STOCK
PURCHASE PLAN 
  
 Effective January 1, 2004 

 WELLCHOICE, INC. 
 2003 EMPLOYEE STOCK PURCHASE PLAN 
  
 ARTICLE I. PURPOSE AND DEFINITIONS 
  

	1.01	 	Purpose; Administration. The purpose of the WellChoice, Inc. 2003 Employee Stock Purchase Plan, as amended from time to time (the “Plan”), is to provide
employees of WellChoice, Inc. (the “Company”) and certain related companies or corporations with an opportunity to share in the ownership of the Company by providing for regular and systematic purchases of common stock, and, thus,
to develop a stronger incentive to work for the continued success of the Company. The Plan is intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”),
but is not intended to be subject to Section 401(a) of the Code or the Employee Retirement Income Security Act of 1974. 

  

	1.02	 	Committee. The Plan shall be administered by a Committee, which shall consist of such members as determined by the Company (the “Committee”). The Committee
shall interpret and apply the provisions of the Plan in its good faith discretion, and the Committee’s decision is final and binding. The Committee may establish rules for the administration of the Plan. 

  

	1.03	 	Definitions. A term defined in the Plan shall have the meaning ascribed to it wherever it is used herein unless the context indicates otherwise. 

  
 ARTICLE II. PARTICIPATION 
  

	2.01	 	Adoption by Subsidiaries. The Board of Directors of the Company (the “Board”) may authorize the adoption of the Plan by one or more subsidiary companies or
corporations of the Company (“Participating Subsidiaries”). 

  

	2.02	 	Eligibility to Participate. A person is eligible to participate in an Offering under the Plan (as defined in Paragraph 4.02) if, as of the first day of such Offering, such
person is (i) an employee of the Company or a Participating Subsidiary and (ii) scheduled to work more than five (5) months per year for the Company or any of its Participating Subsidiaries (as determined by reference to the Company’s
employment records). 

  

	2.04	 	Participation Agreement. Participation in the Plan is voluntary with respect to each Offering. To participate in an Offering, a person must be eligible and must complete a
written enrollment form provided by the Company (“Participation Agreement”) authorizing payroll deductions from his or her paycheck. The Participation Agreement will remain in effect through each consecutive Offering unless the
participant chooses to revise or revoke it, or becomes ineligible to participate in the Plan. 

  

	2.05	 	Termination of Participation. A participant may withdraw at any time from any Offering by written notice to the Committee in such form as it may require, provided the
participant agrees not to participate in the first Offering (and not more than one Offering) concurrent with or immediately following the date of withdrawal. Participation will also end upon termination of a participant’s employment with the
Company and/or a Participating Subsidiary, if applicable, or when a participant becomes ineligible to participate (including by reason of the Company or any Participating Subsidiary terminating its participation in the Plan).

  

	2.06	 	Designation of Beneficiary. A participant shall, by written notice to the Committee, designate a person or persons to receive the value of his or her Account (as defined in
Paragraph 5.01) in the 

  

 2 

	 	 
event of the participant’s death. A participant may, by written notice to the Committee during employment, alter or revoke such designation, subject
always to any applicable law governing the designation of beneficiaries. Such written notice shall be in such form and shall be executed in such manner as the Committee may determine. If upon a participant’s death the participant has not
designated a beneficiary under the Plan or such beneficiary does not survive the participant, the value of a participant’s Account shall be paid to his or her estate. 

  
 ARTICLE III. CONTRIBUTIONS 
  

	3.01	 	Payroll Deductions. A participant may accumulate after-tax compensation to purchase Shares in an Offering by authorizing payroll deductions pursuant to a Participation
Agreement, subject to such minimum and maximum limits (expressed in dollars or as a percentage of base salary or base wages) as the Committee may impose. Such savings shall be credited to a participant’s Account with respect to the Offering to
which they relate. Payroll deductions for an Offering shall commence with the first paycheck a participant receives during such Offering and shall end with the last paycheck a participant receives during such Offering. Paychecks will be treated as
having been received when they are sent out or otherwise distributed. 

  

	3.02	 	Alternative Contributions. Where payroll deductions are not permitted by applicable law in a jurisdiction outside of the United States, the Committee may permit contributions
by alternate means. 

  

	3.03	 	Change in Rate or Suspension of Contributions. A participant may increase or decrease the rate of his or her payroll deductions one (1) time during an Offering by written
notice to the Committee in such form and manner as it requires. In addition, a participant may, at any time during an Offering, suspend his or her payroll deductions by written notice to the Committee in such form and manner as it requires, provided
the participant agrees not to participate in the first Offering (and not more than one Offering) concurrent with or immediately following the date of withdrawal. Such change shall be effective as of the first pay period thereafter by which the
Company is able to process the change. 

  

	3.04	 	Possession of Contributions. All payroll deductions made pursuant to the Plan shall be held for a participant’s benefit and on his or her behalf by the Company or any
custodian selected by the Committee. Such payroll deductions shall constitute a participant’s personal property notwithstanding that they may be commingled with the general assets of the Company or such custodian. 

  
 ARTICLE IV. OPTIONS TO ACQUIRE SHARES 
  

	4.01	 	Maximum Number of Shares. The number of shares of common stock, $0.01 par value per share, of the Company (“Shares”) available for issuance under the Plan
shall be 3,000,000 with respect to the ten (10) years following the adoption of the Plan and the total number of Shares purchasable under Offerings in any calendar year shall not exceed .075% of the Shares outstanding at the end of such calendar
year. Any Shares that are not actually purchased under the Plan for any reason shall remain available for purchase hereunder. In the event the number of Shares to be purchased by participants during any Offering exceeds the number of Shares then
available for issuance under the Plan, the Committee shall make a pro rata allocation of the Shares remaining available in such uniform manner as it shall determine to be equitable. Any excess cash amounts remaining in a participant’s Account
as a consequence of the implementation of the provisions of this paragraph shall be returned to the participant, without interest, as soon as administratively feasible. 

  

 3 

	4.02	 	Offerings. The Company will offer Shares for purchase under the Plan (“Offering”) for six-month periods beginning on January 1 and July 1 of each calendar
year, commencing on January 1, 2004. The Company may make additional Offerings for different periods, provided that no Offering shall extend for more than 27 months. 

  

	4.03	 	Options. Each Offering shall constitute an option to purchase whole Shares at a price per Share equal to 85% of the lesser of (i) the fair market value of a Share on the
first day of such Offering or (ii) the fair market value of a Share on the last day of such Offering. The fair market value of a Share on any date shall be its closing sale price reported by The New York Stock Exchange on which Shares are traded for
such date or for the next earliest date on which Shares were traded. 

  

	4.04	 	Individual Limit on Options. In no event shall the fair market value of all shares purchased by an employee under the Plan or other plans qualifying under Section 423 of the
Code exceed $25,000 (determined on the date of grant, which is the first day of an Offering) with respect to any calendar year. 

  

	4.05	 	Purchase of Shares. Unless a participant withdraws or becomes ineligible prior to the end of an Offering, the accumulated payroll deductions, and/or such alternative
contributions as permitted by the Committee, deposited to his or her Account shall be automatically applied on the last day of the Offering to purchase whole Shares to the extent feasible in accordance with the Offering. Such purchase shall be
treated as the exercise of an option represented by the Offering. Any amount remaining in a participant’s Account after such purchase shall be applied to the next Offering. A participant is not entitled or permitted to make cash payments in
lieu of payroll deductions to acquire Shares in an Offering. In no event shall any Shares be purchased pursuant to an Offering more than 27 months after the commencement of the Offering. 

  

	4.06	 	Source of Shares. Shares offered under the Plan may be authorized and issued Shares, authorized but unissued Shares or treasury Shares. Shares may be purchased directly from
the Company or by the Custodian (as defined in Paragraph 5.02) pursuant to directions from the Committee. If the Custodian acquires Shares pursuant to an open market transaction, such purchase shall be made at the market price prevailing on the
applicable exchange. 

  

	4.07	 	5% Owner Prohibition and Restriction. No employee shall be permitted to purchase Shares under the Plan, if immediately after such purchase, such employee would Beneficially
Own more than 5% of the issued and outstanding Capital Stock of the Company, the terms “Beneficially Own” and “Capital Stock” having the meanings ascribed to them in the Company’s Certificate of Incorporation. In addition,
even if otherwise not deemed to Beneficially Own more than 5% of the Capital Stock of the Company under the Company’s Certificate of Incorporation, no employee shall be permitted to purchase Shares under the Plan if, immediately after such
purchase, such employee would possess stock having five percent (5%) or more of the total combined voting power of all classes of stock of the Company or any of its parent or subsidiary corporations, determined by applying the stock ownership rules
of Section 424(d) of the Code. 

  

	4.08	 	Prohibition Against Assignment. A participant’s right to purchase Shares under the Plan is exercisable only by the participant and may not be sold, pledged, assigned,
surrendered or transferred in any manner other than by will or the laws of descent and distribution. Any attempt to sell, pledge, assign, surrender or transfer such rights shall be void and shall automatically cause any purchase rights held by the
participant to be terminated. In such event, the Committee may refund in cash, without interest, all contributions credited to a participant’s Account. 

  

 4 

	4.09	 	Holding Period. Shares acquired under the Plan by any officer of the Company or any of its subsidiaries who is subject to Section 16 of the Exchange Act (or by any other
participant the Committee so designates) shall be subject to a two (2) year holding period (or such shorter period as may be permitted under the Act or by the Board). Shares subject to such holding period may not be sold, pledged assigned,
surrendered or transferred in any manner other than by will or the laws of descent and distribution, except that such Shares may be transferred by a participant to the participant’s spouse, siblings, parents, children and grandchildren or to
trusts for the benefit of such persons, or to partnerships, corporations, limited liability companies or other entities owned solely by the participant and/or such persons, including trusts, for such persons subject to the holding period restriction
applicable to the participant. Any attempt to sell, pledge, assign, surrender or transfer Shares in violation of this Section 4.09 shall be null and void ab initio. 

  
 ARTICLE V. ACCOUNTS 
  

	5.01	 	Establishment of Accounts. The Committee shall cause to be maintained a separate account for each participant (“Account”) to record the amount of payroll
deductions with respect to each Offering, and the purchase price for and the number of Shares, credited to such participant. No interest or other earnings shall be credited to any contributions to an Account under the Plan. 

 

	5.02	 	Custody of Shares. The Committee shall select an administrator (“Custodian”) which shall hold and act as custodian of Shares purchased pursuant to the Plan.
Absent written instructions to the contrary from a participant, certificates for Shares purchased will not be issued by the Custodian to a participant. 

  

	5.03	 	Voting of Shares. A participant shall direct the Custodian as to how to vote the full Shares credited to his or her Account following the purchase of such Shares.

  
 ARTICLE VI. DISBURSEMENTS FROM ACCOUNT

  

	6.01	 	Withdrawal of Contributions. Upon a participant’s withdrawal from any Offering, all or any designated portion of the contributions credited to the participant’s
Account with respect to such Offering shall be disbursed, without interest, to the participant. 

  

	6.02	 	Withdrawal of Shares. A participant may at any time withdraw all or any number of whole Shares credited to his or her Account under the Plan by directing the Custodian to
cause his or her Shares to be (i) issued as certificates in his or her name (subject to the charges described in Section 7.02) or (ii) sold and the net proceeds (less applicable commissions and other charges) distributed in cash to the participant.
A participant may also direct the Custodian to cause Shares to be transferred to another brokerage account of the participant, provided the Shares are held by the participant for at least two (2) years following the first day of the Offering
pursuant to which the Shares were acquired. 

  

	6.03	 	Distribution Upon Termination. Upon termination of a person’s participation in the Plan as a whole prior to the expiration of all Offerings thereunder, all contributions
and Shares credited to a participant’s Account shall be disbursed to, and as directed by, him or her in accordance with the Plan. All contributions credited to a participant’s Account that have not been applied to the purchase of Shares
shall be returned to him or her without interest. Shares credited to a participant’s Account shall, in accordance with instructions to the Custodian from a participant and at his or her expense, be distributed in the same manner as permitted
upon any withdrawal. 

  

 5 

	6.04	 	Failure to Provide Directions. If within ninety (90) days after a participant has withdrawn from the Plan a participant has not notified the Custodian of his or her
instructions as set forth herein, the Committee shall direct the Custodian to issue Shares in the participant’s name and deliver the same to the participant at his or her last known address. 

  

	6.05	 	Sale of Shares. If a participant elects to receive the proceeds from the sale of his or her Shares, the amount payable shall be determined by the Custodian on the date of
sale, less any applicable commissions, fees and charges. The Custodian, acting on a participant’s behalf, shall take such action as soon as practicable, but in no event later than five (5) business days after receipt of notification from the
participant. The Company assumes no responsibility in connection with such transactions, and all commissions, fees or other charges arising in connection therewith shall be borne directly by the participant. The amount thus determined shall be paid
in a lump sum to the participant. 

  

	6.06	 	Unpaid Leave of Absence. Unless a participant has voluntarily withdrawn his or her contributions from the Plan, Shares will be purchased with contributions to his or her
Account on the last day of the Offering next following commencement of an unpaid leave of absence by such participant provided such leave does not constitute a termination of employment. The number of Shares to be purchased will be determined by
applying to the purchase the amount of the participant’s contributions made up to the commencement of such unpaid leave of absence. Upon the termination of a participant’s unpaid leave of absence and the participant’s return to work
at the Company, payroll deductions and/or such alternative contributions as permitted by the Committee, shall resume at the rate in effect at the commencement of the unpaid leave of absence. 

  
 ARTICLE VII. EXPENSES 
  

	7.01	 	Expenses for Purchase of Shares. The Company shall pay brokerage commissions, fees and other charges, if any, incurred for purchases of Shares with payroll deductions made
under the Plan. 

  

	7.02	 	Expenses to Sell or Transfer Shares. All brokerage commissions, fees or other charges in connection with any sale or other transfer of Shares shall be paid by the
participant. In addition, any charges by the Custodian in connection with a participant’s request to have certificates representing Shares registered in his or her name shall be paid by the participant. 

  

	7.03	 	Post-Termination Expenses. Upon a participant’s termination of employment or withdrawal from the Plan for any other reason, all commissions, fees and other charges
thereafter relating to the participant’s Account will be the participant’s responsibility. 

  
 ARTICLE VIII. MERGERS AND OTHER SHARE ADJUSTMENTS 
  

	8.01	 	Mergers or Other Consolidations. In the event that the Company is a party to a sale of substantially all of its assets, a merger or consolidation, outstanding options to
purchase Shares under the Plan shall be subject to the agreement of sale, merger or consolidation. Such agreement, without the consent of any participant, may provide for: 

  

	 	(a)	 	the continuation of such outstanding options by the Company (if the Company is the surviving corporation); 

  

 6 

	 	(b)	 	the assumption of the Plan and such outstanding options by the surviving corporation or its parent; 

  

	 	(c)	 	the substitution by the surviving corporation or its parent of options with substantially the same terms for such outstanding options, including the substitution of shares of common
stock of the surviving corporation with such appropriate adjustments so as not to enlarge or diminish the rights of participants; 

  

	 	(d)	 	the cancellation of such outstanding options without payment of any consideration other than the return of contributions credited to participants’ Accounts, without interest;
or 

  

	 	(e)	 	the shortening of the Offering Period and any Offering then in progress by setting a new last day of the Offering (the “New Purchase Date”). The New Purchase Date
shall be before the date of the proposed sale, merger or consolidation. Each participant will be notified in writing that the last day of the Offering has been changed to the New Purchase Date and that the applicable number of Shares will be
purchased automatically on the New Purchase Date, unless prior to such date the participant has withdrawn from the Plan as provided in Paragraph 6.01. 

  

	8.02	 	Adjustments to Shares or Options. In the event of a subdivision of the outstanding common stock, a declaration of a dividend payable in Shares, a declaration of an
extraordinary dividend payable in a form other than Shares in an amount that has a material effect on the fair market value of the Shares, a combination or consolidation of the outstanding Shares into a lesser number of Shares, a recapitalization, a
spin-off, a reclassification or a similar occurrence, the Board shall make appropriate adjustments so as not to enlarge or diminish the rights of participants, in one or more of (i) the number of Shares available for purchase under the Plan, (ii)
the number of Shares subject to purchase under outstanding options, or (iii) the purchase price per Share under each outstanding option. 

  
 ARTICLE IX. AMENDMENT AND TERMINATION 
  

	9.01	 	Authority. The Board may at any time terminate or amend the Plan in any respect, including, but not limited to, terminating the Plan prior to the end of an Offering Period or
reducing the term of an Offering Period; provided, however, that the number of Shares subject to purchase under the Plan shall not be increased without approval of the Company’s stockholders. 

  

	9.02	 	Termination of the Plan. This Plan shall terminate at the earliest to occur of: 

  

	 	(a)	 	the tenth anniversary following shareholder approval of the Plan; 

  

	 	(b)	 	the date the Board acts to terminate the Plan in accordance with Paragraph 9.01; and 

  

	 	(c)	 	the date when the total number of Shares of Company common stock to be offered under this Plan, as set forth in Paragraph 4.01, have been purchased. 

  

	9.03	 	Distributions on Plan Termination. Upon termination of the Plan at the end of an Offering Period, Shares shall be issued to participants, and cash, if any, remaining in the
Accounts of the participants, shall be refunded to them. Upon termination of the Plan prior to the end of an Offering Period, all amounts not previously applied to the purchase of Shares shall be distributed to the participants, as if the Plan had
terminated at the end of an Offering Period. 

  

 7 

	9.04	 	Effect on Custodian. No amendments to the Plan which affects the responsibilities or duties of the Custodian shall be effective without the agreement and approval of the
Custodian. 

  
 ARTICLE X. MISCELLANEOUS

  

	10.01	 	Joint Ownership. Shares may be registered in the name of the participant, or, if he or she so designates, in his or her name jointly with his or her spouse, with a right of
survivorship. 

  

	10.02	 	No Employment Rights. The Plan shall not be deemed to constitute a contract of employment between the Company and any participant, nor shall it interfere with the right of
the Company to terminate a participant and treat a participant without regard to the effect which such treatment might have upon the participant under the Plan. 

  

	10.03	 	Tax Withholding. The Company shall withhold from amounts to be paid to a participant as wages, any applicable Federal, state or local withholding or other taxes which it is
from time to time required by law to withhold. 

  

	10.04	 	Compliance with Laws. The Company may direct the Custodian to delay the issuance of any certificate in the name of any person or the delivery of Shares to any person if it
determines that listing, registration or qualification of such Shares upon any national securities market or exchange or under any law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or
in connection with, the sale or purchase of Shares under the Plan, until such listing, registration, qualification, consent or approval shall have been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the
Company. 

  

	10.05	 	Governing Law. The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware and without regard to the conflict of laws principles of
such state. 

  

 8

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