Document:

WellChoice, Inc. 2003 Omnibus Incentive Plan Effective As Of November 7, 2003

 Exhibit 10.24 
  
 WELLCHOICE, INC. 
 2003 OMNIBUS INCENTIVE PLAN 
 EFFECTIVE AS OF NOVEMBER 7, 2003, 
 AMENDED AND RESTATED FEBRUARY 10, 2004 
  

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 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 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, 

  

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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 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. 
  

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 (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. 
  
 (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 

  

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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 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 

  

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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; 
  
 (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. 
  

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 (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 that the Committee may provide for the acceleration of vesting upon or immediately prior to the
occurrence of a Change in Control or upon termination of employment or service as a Non-Employee Director due to death or disability within such one-year period. 
  
 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 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 or upon termination of employment or service as a Non-Employee Director due to death or disability within such one-year period. 
  
 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. 
  

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 (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. 
  
 (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 the Committee
may provide for the acceleration of such vesting upon or immediately prior to the occurrence of a Change in Control or upon termination of employment or service as a Non-Employee Director due to death or disability within such one-year period. 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 the Committee may provide for the acceleration of such vesting upon or immediately prior to the occurrence of a Change in Control or upon termination of employment or service as a Non-Employee
Director due to death or disability within such one-year period. 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 

  

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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 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). 
  
 (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.

  

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 (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 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 

  

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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. 
  
 (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 

  

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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 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 

  

 12 

 
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 
  
 (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 

  

 13 

 
exchange or other market system, and if the Company’s Common Stock is not readily tradable, Fair Market Value shall mean the 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 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 

  

 14 

 
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. 
  

 15 

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

  

 16Change in Control Retention Agreement dated December 23, 2002...Linda V. Tiano

 Exhibit 10.28 
  
 December 23, 2002 
  
 Linda V. Tiano 
 Senior Vice President and General Counsel 
 WellChoice, Inc. 
 11 West 42nd Street 
 New York, NY 10036 
  
 Re: Change in Control
Retention 
  
 Dear Ms. Tiano: 
  
 WellChoice, Inc. (“WellChoice”) considers it essential to its best
interests to foster the continuous employment of key management personnel should WellChoice receive a proposal from a third party, whether solicited by WellChoice or unsolicited, concerning a possible business combination transaction. Further, the
Board of Directors of WellChoice (the “Board”) has determined that it is imperative that it and WellChoice be able to rely upon your continued services without concern that you might be distracted by the personal uncertainties and risks
that such a proposal might otherwise entail. 
  
 Accordingly, the
Board desires to reinforce and encourage your continued attention and dedication to your assigned duties without distraction in the face of potentially disturbing circumstances that could arise out of a proposal for a change in control of
WellChoice. In order to induce you to remain in the employ of WellChoice and its subsidiaries, you shall receive the severance benefits set forth in this letter agreement (the “Agreement”) in the event your employment with WellChoice and
its subsidiaries is involuntarily terminated in connection with a change in control of WellChoice. 
  
 For purposes of this Agreement, the “Company” shall refer to WellChoice and its successors and assigns as provided for in Section 6(a) below.

  
 1. Term of Agreement. This Agreement shall commence on
the date hereof and shall continue in effect through December 31, 2005; provided that the term of this Agreement shall automatically be extended for one additional 

 Page 2 
  

 year as of January 1, 2005 and each January 1 thereafter unless the Company provides you with written notice prior to any
such date that it does not wish to further extend this Agreement. Notwithstanding any such notice by the Company, if a Change in Control occurs during the original or any extended term of this Agreement, this Agreement shall continue in effect until
the second anniversary of such Change in Control. 
  
 2. Change
in Control. 
  
 (a) Notwithstanding any other provision in
this Agreement, no benefits shall be payable hereunder unless there shall have been a Change in Control of the Company, as set forth below. 
  
 (b) For purposes of this Agreement, a Change in Control shall be deemed to have occurred if (A) any “person” (as such term is used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (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 25% or more of the combined voting power of the Company’s then outstanding securities; or (B) during any period of two 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 (x) which does not result in any person becoming the beneficial owner, directly or indirectly, of securities of the Company or the surviving entity representing 25% or more of the combined
voting power of the Company’s (or such surviving entity’s) then outstanding securities and (y) 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 (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 Public Asset Fund of more than 25% of the Company’s securities does not constitute a Change in Control for purposes of this Agreement. 
  
 (c) For purposes of this Agreement, a “potential change in control of the Company” shall be deemed to have
occurred if (A) the Company enters into an agreement, the consummation of which would result in the occurrence of a Change in Control; (B) any person (including the Company) publicly announces an intention to take or to consider taking actions which
if 

 Page 3 
  

 consummated would constitute a Change in Control; or (C) the Board adopts a resolution to the effect that, for purposes
of this Agreement, a potential change in control of the Company has occurred. 
  
 3. Termination In Connection with a Change in Control. 
  
 (a) Termination. You shall be entitled to the benefits provided in Section 4 hereof upon the termination of your employment with the Company and its subsidiaries during the term of this Agreement occurring
within six months preceding, or within two years following, a Change in Control, unless such termination is (i) a result of your death, retirement at or after age 65 (as set forth below), or permanent and total disability (as determined for purposes
of the Company’s long-term disability benefit plan in which you participate), (ii) by you other than for Good Reason, or (iii) by the Company or any of its subsidiaries for Cause. 
  
 (b) Disability. In the absence of any applicable long term disability benefit plan, any question as to the existence
of your permanent and total disability for purposes of this Agreement shall be governed by a qualified independent physician selected by the Company and approved by you, said approval not to be unreasonably withheld. The determination of such
physician made in writing to the Company and to you shall be final and conclusive for all purposes of this Agreement. 
  
 (c) Retirement. For purposes of this Agreement, “retirement” shall mean (i) your voluntary resignation of employment with the Company and
its subsidiaries at or after age 65 on your own initiative and other than for Good Reason, (ii) your termination of employment pursuant to a mandatory age limit policy for executives adopted by the Company at least one year prior to any Change in
Control, or (iii) your resignation in accordance with any retirement arrangement established with your consent with respect to you at least six months prior to any Change in Control. 
  
 (d) Cause. For purposes of this Agreement, “Cause” shall mean (A) your willful breach of a material duty or
other material willful misconduct in the course of your employment which, if curable, is not cured by you within ten (10) business days following written notice thereof from the Board, (B) your commission of a felony or a crime involving moral
turpitude (other than a petty misdemeanor), or (C) your habitual neglect of your employment duties provided you were provided prompt written notice of such neglect by the Board and a reasonable opportunity to cure such neglect. For purposes of this
Section 3(d) no act, or failure to act, on your part shall be deemed “willful” unless done, or omitted to be done, by you not in good faith and without reasonable belief that your action or omission was in and not opposed to the interests
of the Company or any of its subsidiaries. Notwithstanding the 

 Page 4 
  

 foregoing, you shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to
you a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire membership of the Board at a meeting of the Board called and held for such purposes (after reasonable notice to you and a reasonable
opportunity for you, together with your counsel, to be heard before the Board), finding that in the reasonable, good faith opinion of the Board you were guilty of conduct set forth above in this Section 3(d) and specify the particulars thereof in
detail. 
  
 (e) Good Reason. You shall be entitled to
terminate your employment with the Company and its subsidiaries for Good Reason on or after a Change in Control by providing at least 30 days prior written notice to the Board specifying the acts or omissions within the preceding 90 days that are
believed to constitute Good Reason and a proposed termination date. The Company and its subsidiaries shall be permitted during the 30-day period following the Board’s receipt of such notice to cure or otherwise correct any such acts or
omissions and, if reasonably cured or corrected, you shall not be allowed to resign for Good Reason. For the purpose of this Agreement, “Good Reason” shall mean the occurrence, without your express written consent, of any of the following
circumstances unless such circumstances are fully corrected prior to the Date of Termination (as defined in Section 3) specified in the Notice of Termination (as defined in Section 3) given in respect thereof: 
  
 (i) the assignment to you of any duties that are not
commensurate or consistent with your status as Senior Vice President & General Counsel of WellChoice, your removal from such position(s), or a substantial diminution in the nature or status of your responsibilities from those in effect
immediately prior to any potential change in control or Change in Control occurring within the preceding two years; provided that (A) any diminution in the nature or status of your responsibilities resulting solely from the Company becoming a
subsidiary of another entity (and not any other changes to your responsibilities) shall constitute Good Reason, and (B) during the six-month period following a Change in Control, in connection with a transition of your responsibilities to a
successor shall not constitute Good Reason until the earlier of the completion of such transition or the end of such six-month period (except you may nevertheless provide a Notice of Termination prior thereto); 
  
 (ii) a reduction by the Company or any of its subsidiaries
in your annual base salary as in effect on the date hereof or as the same may be increased from time to time; 

 Page 5 
  

 (iii) the failure by the Company or any of its subsidiaries to continue in effect any
bonus or incentive compensation plan in which you participate prior to the Change in Control, unless an equitable alternative compensation arrangement (embodied in an ongoing substitute or alternative plan) has been provided for you, except that the
discontinuation of the grant of options or other equity based awards shall not be deemed to be covered by the provisions of this subparagraph; 
  
 (iv) the failure by the Company or any of its subsidiaries to continue your participation in any employee benefit plans other than by
reason of any change applicable to all similarly situated employees; 
  
 (v) the relocation of the office in which you are based to a location more than thirty-five (35) miles from the office in which you are based, unless such relocation does not increase your commute by more than twenty
(20) miles; 
  
 (vi) the failure of the Company
to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement, as contemplated in Section 6 hereof. 
  
 Your continued employment shall not constitute consent to, or a waiver of rights with respect to, any circumstances constituting Good Reason hereunder;
provided, however, you may not seek to terminate your employment for Good Reason based on any act or such circumstance that occurred more than 90 days prior to the date Notice of Termination is provided. The suspension of your duties and
responsibilities, following written notice from the Board and during the pendency of the Board’s consideration of a termination of your employment with the Company for Cause shall not, by itself, constitute Good Reason provided such suspension
does not extend for more than 30 days unless you have requested in writing additional time in order to be heard by the Board before it makes its final determination on your proposed termination for Cause. 
  
 (f) Notice of Termination. Any purported termination of your
employment by the Company and its subsidiaries or by you shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 7 hereof. For purposes of this Agreement, a “Notice of Termination” shall
mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the
provision so indicated. 
  
 (g) Date of Termination, Etc.
“Date of Termination” shall mean if your employment is terminated for any reason (other than your death or 

 Page 6 
  

 Disability), the date specified in the Notice of Termination which shall not be less than thirty (30) days from the date
such Notice of Termination is given; provided in the event of your proposed termination by the Company for Cause you shall be permitted to correct or otherwise cure the offending act or failure to act, if possible, during the period following such
notice. 
  
 4. Compensation Upon Termination. 

 
 (a) If your employment by the Company and its subsidiaries shall be
terminated during the term of this Agreement by (a) the Company and its subsidiaries other than for Cause or your death, Retirement or Disability, or (b) you for Good Reason, and such termination occurs within six months preceding, or within two
years following, a Change in Control of the Company, then you shall be entitled to the benefits provided below: 
  
 (i) The Company (or one of its subsidiaries, if applicable) shall pay you no later than the tenth business day following the Date of
Termination (unless a different payment date is specified herein): (A) your full base salary through the Date of Termination at the rate in effect at the time of the Change in Control or the Notice of Termination is given (whichever date your salary
rate is higher), plus (B) the unpaid annual incentive for the preceding year, if any, plus (C) a pro rata amount of your target annual incentive for the year in which your termination of employment occurs, plus (D) all other amounts to which you are
entitled under any compensation plan of the Company applicable to you, at the time such payments are due, plus (E) a pro rata portion of your target awards under the Company’s Long-Term Incentive Compensation Plan. 
  
 (ii) The Company shall pay you, on a date that is no later
than the tenth business day following the Date of Termination, a severance payment equal to two times (2x) the sum of (A) your full annual base salary and (B) annual incentive payment, in each case in effect at the time of the Change in Control or
the Notice of Termination is given (whichever date provides a higher payment). For purposes of this Section 4(a)(ii), your annual incentive payment shall mean your target bonus multiplied by the average of the corporate score under the annual
incentive plan for the three years preceding the year in which your termination of employment occurs. 
  
 (iii) The payment to be made to you pursuant to this Section 4(a) shall not be reduced by the amount of any other payment or the value of
any benefit received or to be received by 

 Page 7 
  

 you in connection with your termination of employment or contingent upon a Change in Control of the
Company (whether payable pursuant to the terms of this Agreement or any other agreement, plan or arrangement with the Company or an affiliate, predecessor or successor of the Company or any person whose actions result in a Change in Control of the
Company or an affiliate of such person), except your acceptance of the severance payment provided by this Agreement shall constitute a waiver of any right or entitlement to severance pay under any severance pay plan of the Company otherwise
applicable to you. In addition, the Company will pay you (x) all amounts under all retirement plans accrued through the Date of Termination (which shall be immediately vested on your termination of employment), Deferred Compensation Plan or any
other deferred compensation plan or non-qualified retirement plan in effect at the Date of Termination, such amounts to be paid to you at the time specified in your election (or deemed election) under such plans, notwithstanding any provisions of
such plan (or any related trust) that would allow WellChoice (or any trustee) to delay the payments of such amounts, (y) all amounts determined and earned by you on an annual basis consistent with WellChoice’s practice as of the date of this
Agreement for years ended before the year in which the Date of Termination occurs under, pursuant to or in connection with any Long-Term Incentive Compensation Plan adopted by WellChoice, notwithstanding the fact that your employment will have
terminated prior to the end of the relevant three-year period performance cycle thereunder or any vesting or other provisions of any such plan, and (z) if the number of your years of service is a factor in the determination of your benefit under any
of the Company’s defined benefit retirement plans, an amount equal to any additional benefit you would be entitled to under any such plans if your years of service for purposes of such plans was increased by two. 
  
 (b) You shall not be required to mitigate the amount of any payment provided
for in Section 4 by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in Section 4 be reduced by any compensation earned by you as the result of employment by another employer or by retirement
benefits received after the Date of Termination or otherwise. 
  
 (c) If you are entitled to the payments provided in Section 4 hereof, the Company or any of its subsidiaries shall continue your participation, as if you were still an employee, in the medical, dental, hospitalization and life insurance
plans, programs and/or arrangements of the Company or any of its 

 Page 8 
  

 subsidiaries in which you were participating on the date of the termination of your employment on the same terms and
conditions as other executives under such plans, programs and/or arrangements until the earlier of (i) the end of the 24-month period following the date of the termination of your employment or (ii) the date, or dates you receive equivalent coverage
and benefits under the plans, programs and/or arrangements of a subsequent employer (such coverage and benefits to be determined on a coverage-by-coverage or benefit-by-benefit basis). 
  
 5. Parachute Tax Gross-Up. 
  

(a) In the event that any payment or benefit received or to be received by you pursuant to the terms of this Agreement (the “Contract
Payments”) or in connection with or contingent upon a Change in Control of the Company pursuant to any other agreement, plan or arrangement with the Company or any of its subsidiaries (“Other Payments” and, together with the Contract
Payments, the “Payments”) would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), the Company shall pay to you an additional amount (the “Gross-Up Payment”) such that the net amount of
Payments retained by you shall be equal the amount you would have retained if none of such Payments were subject to the Excise Tax. In particular, the Company will timely pay to you an amount equal to the Excise Tax on the Payments, any interest,
penalties or additions to tax payable by you by reason of your filing income tax returns and making tax payments in a manner consistent with an opinion of tax counsel selected by the Company and reasonably acceptable to you (“Tax
Counsel”), and any federal, state and local income tax and Excise Tax upon the payments by the Company to you provided for by this Section 5. Notwithstanding the foregoing provisions of this Section 5(a), in the event the amount of Payments
subject to the Excise Tax exceeds the product (“Parachute Payment Limit”) of 2.99 and your applicable “base amount” (as such term is defined for purposes of Section 4999 of the Code) by less than ten percent (10%) of your annual
base salary, you shall be treated as having waived such rights with respect to Payments designated by you to the extent required such that the aggregate amount of Payments subject to the Excise Tax is less than the Parachute Payment Limit.

  
 (b) The Company shall obtain an opinion of Tax Counsel that
initially determines whether any of the Payments will be subject to the Excise Tax and the amounts of such Excise Tax, which shall serve as the basis for reporting Excise Taxes and federal, state and local income taxes on Payments hereunder. For
purposes of determining the amount of the Gross-Up Payment, you shall be deemed to pay federal income tax at the highest marginal rates of federal income taxation applicable to individuals in the calendar year in which the Gross-Up Payment is to be
made and state and local income taxes at the highest marginal rates of taxation applicable to individuals as are in effect in the state and locality of your residence in the calendar year in which the Gross-Up Payment is to be 

 Page 9 
  

 made, net of the maximum reduction in federal income taxes that can be obtained from deduction of such state and local
taxes, taking into account any limitations applicable to individuals subject to federal income tax at the highest marginal rates. 
  
 (c) The Gross-Up Payments provided for in this Section 5 shall be made as to each Payment upon the earlier of (i) the payment to you of any such Contract
Payment or Other Payment or (ii) the imposition upon you or payment by you of any Excise Tax or any federal, state or local income tax on any payment pursuant to this Section 5. 
  
 (d) If it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding or the
opinion of Tax Counsel that the Excise Tax is less than the amount taken into account under Section 5 hereof, you shall repay to the Company within five days of your receipt of notice of such final determination or opinion the portion of the
Gross-Up Payment attributable to such reduction (plus the portion of the Gross-Up Payment attributable to the Excise Tax and federal, state and local income tax imposed on the Gross-Up Payment being repaid by you if such repayment results in a
reduction in Excise Tax or a federal, state and local income tax deduction) plus any interest received by you on the amount of such repayment. If it is established pursuant to a final determination of a court or an Internal Revenue Service
proceeding or the opinion of Tax Counsel that the Excise Tax exceeds the amount taken into account hereunder (including by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-Up Payment), the Company
shall make an additional Gross-Up Payment in respect of such excess within five days of the Company’s receipt of notice of such final determination or opinion. 
  
 6. Successors; Binding Agreement. 
  
 (a) For purposes of this Agreement, the “Company” shall mean WellChoice, Inc. The Company will require any
successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the
same extent that the Company is required to perform it. Failure of the Company to obtain such assumption and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle you to compensation from
the Company in the same amount and on the same terms as you would be entitled hereunder if you had terminated your employment for Good Reason following a Change in Control, except that for purposes of implementing the foregoing, the date on which
any such succession becomes effective shall be deemed the Date of Termination. As used in this Agreement, “Company”shall mean the Company as defined in the first sentence of this Section 6(a) as well as any successor to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. 

 Page 10 
  

 (b) This Agreement shall inure to the benefit of and be enforceable by your personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If you should die while any amount would still be payable to you hereunder if you had continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to your devisee, legatee or other designee or, if there is no such designee, to your estate. 
  
 7. Notice. For the purpose of this Agreement, notices and all other communications provided for in this Agreement
shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the address set forth on the first page of this Agreement with respect
to the Company and on the signature page with respect to you, provided that all notices to the Company shall be directed to the attention of the General Counsel of the Company, or to such other address as either party may have furnished to the other
in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt. 
  
 8. Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by you and such officer as may be specifically designated by the Board. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any conditions or provision of this Agreement
to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to
the subject matter hereof have been made by either party which are not expressly set forth in this Agreement. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of New York,
including Section 198 (1-a) of the New York Labor Law. All references to sections of the Code shall be deemed also to refer to any successor provisions to such sections. Any payments provided for hereunder shall be paid net of any applicable
withholding required under federal, state or local law. The obligations of the Company under Section 4 shall survive the expiration of the term of this Agreement. 
  
 9. Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

 Page 11 
  

 10. Legal Expenses. The Company shall also pay to you all legal fees and expenses reasonably
incurred by you in contesting or disputing the nature of any termination of your employment for purposes of this Agreement or in seeking to obtain or enforce any right or benefit provided by this Agreement); provided that the Company shall not be
obligated to pay any amount under this Section 10 to the extent a court or a mutually agreed upon arbitrator determines that your claim, contest, dispute or enforcement of this Agreement is frivolous. 
  
 11. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. 
  
 12. Arbitration. Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in
accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction; provided, however, that you shall be entitled to seek specific performance of
your right to be paid until the Date of Termination during the pendency of any dispute or controversy arising tinder or in connection with this Agreement. 
  
 If this letter sets forth our agreement on the subject matter hereof, kindly sign and return to the Company the enclosed copy of this letter which will
then constitute our agreement on this subject. 
  

			
	 Sincerely,

	
	 WELLCHOICE, INC.

		
	 By:
	 	 /s/ Michael A. Stocker, M.D.

		
	 Name:
	 	 Michael A. Stocker, M.D.

	 Title:
	 	 Chief Executive Officer

  

	
	 Agreed to this 23rd day
 of December 2002

	
	 /s/ Linda V. Tiano

	
	 Address for notices:

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