Document:

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                                                                     EXHIBIT 4.2

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of
_______________ __, 2002, is made and entered into by and among WellChoice,
Inc., a Delaware corporation (the "Company"), the Members of the Board of The
New York Public Asset Fund, the "public asset fund" established pursuant to
Section 7317 of the New York Insurance Law (the "Fund"), and The New York
Charitable Asset Foundation, a New York not-for-profit corporation (the
"Foundation").

                                    RECITALS

         A. The Fund beneficially owns _____________ shares of common stock, par
value _______ per share, of the Company (the "Common Stock"), and the Foundation
beneficially owns _____________ shares of Common Stock.

         B. The Company has agreed to provide certain registration rights to the
Fund and the Foundation with respect to the shares of Common Stock beneficially
owned by each of them, subject to the terms and conditions contained in this
Agreement.

                                    AGREEMENT

         In consideration of the foregoing and the mutual covenants and
agreements contained in this Agreement, the Company, the Fund and the Foundation
agree as follows:

    Section 1. Definitions. For purposes of this Agreement, the following terms
shall have the following meanings:

         (a) "Affiliate", as used with respect to a Holder, has the meaning
ascribed to such term in Rule 12b-2 of the Exchange Act, but shall be deemed to
not include the Company and its subsidiaries.

         (b) "Agreement" has the meaning set forth in the Preamble hereof.

         (c) "Beneficially Own" has the meaning set forth in Section 1 of
Article VII of the Certificate of Incorporation.

         (d) "Blackout Period" has the meaning specified in Section 5 hereof.

         (e) "Business Day" means a day other than a Saturday, Sunday or other
day on which commercial banks are authorized to close under the laws of the
State of New York and the United States of America.

         (f) "Bylaws" means the Bylaws of the Company as in effect at the time
that reference is made thereto.

         (g) "Certificate of Incorporation" means the Certificate of
Incorporation of the Company as in effect at the time that reference is made
thereto.

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         (h) "Class B Common Stock" means the class B common stock, $.01 par
value per share, of the Company.

         (i) "Common Stock" has the meaning set forth in Recital A hereof.

         (j) "Company" has the meaning set forth in the Preamble hereof.

         (k) "Current Market Value" means the product of the number of
Registrable Securities at issue multiplied by the closing sale price of a share
of Common Stock on the NYSE on the date that the Current Market Value is to be
determined; or, if the Common Stock is not listed or admitted to trading on the
NYSE, as reported in the applicable transaction reporting system with respect to
securities listed on the principal national securities exchange on which the
Common Stock is listed or admitted to trading; or, if the Common Stock is not
listed or admitted to trading on any national securities exchange, the last
quoted price (or, if not so quoted, the average of the high bid and low asked
prices) in the over-the-counter market, as reported by NASDAQ or such other
system then in use; or, if no bids for the Common Stock are quoted by any such
organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the Common Stock selected by the
Board of Directors of the Company.

         (l) "Demand" has the meaning specified in Section 2(a) hereof.

         (m) "Demand Notification" has the meaning specified in Section 2(a)
hereof.

         (n) "Demand Registration" has the meaning specified in Section 2(a)
hereof.

         (o) "Effective Period" means the period commencing on the date that is
one hundred eighty (180) days from the IPO Date and ending on the date on which
there shall no longer exist any Registrable Securities.

         (p) "Excess Shares" has the meaning set forth in Section 1 of Article
VII of the Certificate of Incorporation.

         (q) "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC thereunder, all as the same
shall be in effect at the time that reference is made thereto.

         (r) "Foundation" has the meaning set forth in the Preamble hereof.

         (s) "Fund" has the meaning set forth in the Preamble hereof.

         (t) "Holders" means the Fund and the Foundation, each a "Holder".

         (u) "Inspectors" has the meaning specified in Section 7(k) hereof.

         (v) "IPO Date" means the closing date of an initial underwritten public
offering of Common Stock.

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         (w) "Joinder Notice" has the meaning specified in Section 2(a) hereof.

         (x) "Joinder Period" has the meaning specified in Section 2(a) hereof.

         (y) "NASD" means the National Association of Securities Dealers, Inc.

         (z) "NASDAQ" means the NASD Automated Quotation System.

         (aa) "NYSE" means the New York Stock Exchange, Inc.

         (bb) "Other Rights Holders" has the meaning set forth in Section 2(f)
hereof.

         (cc) "Ownership Limit" has the meaning set forth in Section 1 of
Article VII of the Certificate of Incorporation.

         (dd) "Person" means any individual, firm, partnership, corporation
(including, without limitation, a business trust), limited liability company,
joint stock company, trust, unincorporated association, joint venture or other
entity, and shall include any successor (by merger or otherwise) of any such
entity.

         (ee) "Piggy-Back Request" has the meaning set forth in Section 3(b)
hereof.

         (ff) "Piggy-Back Rights" has the meaning set forth in Section 3(a)
hereof.

         (gg) "Prospectus" means the prospectus included in any Registration
Statement, as amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Registrable Securities
covered by any Registration Statement and by all other amendments and
supplements to the prospectus, including post-effective amendments and all
material incorporated by reference in such prospectus.

         (hh) "Records" has the meaning specified in Section 7(k) hereof.

         (ii) "Registrable Securities" means any and all of (i) the shares of
Common Stock held by the Holders as of the date of this Agreement, and (ii) any
securities issuable or issued or distributed in respect of any of the securities
identified in clause (i) by way of stock dividend or stock split or in
connection with a combination of shares, recapitalization, reorganization,
merger, consolidation or otherwise. Registrable Securities shall cease to be
Registrable Securities when and to the extent that they shall have (i) been
transferred, sold, distributed or otherwise disposed of by the Holder pursuant
to an underwritten public offering, a private placement transaction that is not
in accordance with the terms of the Voting Trust and Divestiture Agreement or
Rule 144, (ii) ceased to be outstanding, or (iii) become Delinquent Shares (as
defined in the Voting Trust and Divestiture Agreement).

         (jj) "Registration Expenses" means any and all reasonable out-of-pocket
expenses incident to performance of or compliance with this Agreement,
including, without limitation, (i) all SEC, NASD and securities exchange
registration and filing fees, (ii) all fees and expenses of complying with state
securities or "blue sky" laws (including fees and disbursements of counsel for
any underwriters in connection with blue sky qualifications of the Registrable

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Securities), (iii) all processing, printing, copying, messenger and delivery
expenses, (iv) all fees and expenses incurred in connection with the listing of
the Registrable Securities on any securities exchange pursuant to Section 7(h)
hereof, (v) all fees and disbursements of counsel for the Company and of its
independent public accountants (including the expenses of any special audits or
comfort letters), and (vi) the reasonable fees and expenses of any special
experts retained in connection with a registration under this Agreement, but
excluding (A) any underwriting discounts and commissions and transfer taxes
relating to the sale or disposition of Registrable Securities pursuant to a
Registration Statement, and (B) any fees, expenses or disbursements of counsel
and other advisers to the Holders.

         (kk) "Registration Statement" means any registration statement
(including a Shelf Registration) of the Company referred to in Section 2 or
Section 3 hereof, including any Prospectus, amendments and supplements to any
such registration statement, including post- effective amendments, and all
exhibits and all material incorporated by reference in any such registration
statement.

         (ll) "Rule 144" means Rule 144 under the Securities Act, 17 C.F.R.
230.144, or any similar or successor rules or regulations hereafter adopted by
the SEC.

         (mm) "SEC" means the United States Securities and Exchange Commission
and any successor federal agency having similar powers.

         (nn) "Securities Act" means the Securities Act of 1933, as amended, and
the rules and regulations of the SEC thereunder, all as the same shall be in
effect at the time that reference is made thereto.

         (oo) "Shelf Registration" means a "shelf" registration statement on an
appropriate form pursuant to Rule 415 under the Securities Act (or any successor
rule that may be adopted by the SEC).

         (pp) "Underwritten Offering" means an offering in which securities of
the Company are sold to an underwriter for reoffering to the public pursuant to
an effective Registration Statement under the Securities Act.

         (qq) "Uncontrolled Event" has the meaning specified in Section 5
hereof.

         (rr) "Voting Trust and Divestiture Agreement" means that certain Voting
Trust and Divestiture Agreement, of even date herewith, by and among the Company
and the Fund.

    Section 2. Demand Registration Rights.

         (a) Throughout the Effective Period, the Fund may, subject to the terms
hereof, request the Company in writing (each, a "Demand") to effect a
registration with the SEC under and in accordance with the provisions of the
Securities Act of all or part of the Registrable Securities Beneficially Owned
by the Fund (a "Demand Registration"). The Demand shall specify the aggregate
number of shares of Registrable Securities requested to be so registered on
behalf of the Fund. Any request received by the Company from the Fund as
provided in this

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Section 2(a) shall be deemed to be a "Demand" for purposes of this Agreement,
unless the Company, in accordance with the terms of this Agreement, shall have
notified the Fund in writing, prior to its receipt of such request from the
Fund, of its intention to register securities with the SEC, in which case the
request from the Fund shall be governed by Section 3 hereof, not this Section 2.
All Demands to be made by the Fund pursuant to this Section 2(a) and any
notifications by the Company pursuant to the preceding sentence must be based
upon a good faith intent of the Fund or the Company, as the case may be, to
effect the sale of securities pursuant to such registrations as promptly as
practicable after the date of the Demand or notification, as the case may be, in
accordance with the terms of this Agreement. Within five (5) days of the
Company's receipt of a Demand from the Fund, the Company shall notify the
Foundation in writing of the Company's receipt of such Demand and of the
Foundation's right to join in such Demand (a "Demand Notification"). The
Foundation shall have fifteen (15) days from its receipt of a Demand
Notification (the "Joinder Period") to deliver to the Company a written notice
of the Foundation's intention to join in such Demand (a "Joinder Notice"). The
Joinder Notice shall specify the aggregate number of shares of Registrable
Securities requested to be so registered on behalf of the Foundation up to a
maximum number of Registrable Securities such that no more than five percent
(5%) of the aggregate amount of Registrable Securities requested to be
registered by the Fund and the Foundation are Beneficially Owned by the
Foundation, unless otherwise agreed to in writing by the Fund. Failure on the
part of the Foundation to deliver a Joinder Notice to the Company within the
Joinder Period shall be deemed to be a waiver on the part of the Foundation of
its right to join in such Demand.

         (b) After receipt of a Demand from the Fund, the Company shall prepare
and file a Registration Statement for the Registrable Securities so requested to
be registered as soon as reasonably practicable and use its reasonable best
efforts to cause such Registration Statement to become effective.

         (c) Notwithstanding anything in this Agreement to the contrary, the
Company shall not be required to file a Registration Statement for Registrable
Securities pursuant to a Demand:

              (i) if the Company shall have previously effected a Demand
Registration at any time during the immediately preceding one hundred twenty
(120) day period;

              (ii) (A) with respect to a Demand made prior to the date which is
forty-two (42) months following the date hereof, such 42-month period to be
extended by an amount of time equal to the aggregate of all Blackout Periods
during such forty-two (42) months, if the Company shall have previously effected
two (2) Demand Registrations at any time during the calendar year in which such
Demand was received and (B) with respect to a Demand made after such 42-month
period, as it may be so extended, if the Company shall have previously effected
a Demand Registration at any time during the calendar year in which such a
Demand was so received;

              (iii) if the Company shall have previously effected a registration
of Common Stock to be issued and sold by the Company at any time during the
immediately preceding ninety (90) day period (other than a registration on Form
S-4, Form S-8 or Form S-3 (with respect to dividend reinvestment plans and
similar plans) or any successor forms thereto);

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              (iv) if the number of Registrable Securities identified in the
Demand shall have a Current Market Value (determined as of the date of such
Demand) of less than Thirty Million Dollars ($30,000,000), unless such
Registrable Securities identified in the Demand constitute all remaining
Registrable Securities; or

              (v) during the pendency of any Blackout Period.

         (d) The Company shall be permitted to satisfy its obligations under
this Section 2 by amending (to the extent permitted by applicable law) any Shelf
Registration previously filed by the Company under the Securities Act so that
such Shelf Registration (as amended) shall permit the disposition (in accordance
with the intended methods of disposition specified as aforesaid) of all of the
Registrable Securities for which a Demand shall have been made. If the Company
shall so amend a previously filed Shelf Registration, it shall be deemed to have
effected one (1) Demand Registration. Notwithstanding the foregoing, the Company
shall have no obligation under this Agreement to file any Shelf Registration.

         (e) A requested Demand Registration shall not be deemed to count as a
Demand Registration described in Section 2(c)(i) or Section 2(c)(ii) hereof if:
(i) such registration has not been declared effective by the SEC or does not
become effective in accordance with the Securities Act, (ii) after becoming
effective, such registration is materially interfered with by any stop order,
injunction or similar order or requirement of the SEC or other governmental
agency or court for any reason not attributable to the Fund and does not
thereafter become effective, (iii) the conditions to closing specified in any
underwriting agreement entered into in connection with such Demand Registration
are not satisfied or waived other than by reason of an act or omission on the
part of the Fund, or (iv) the Fund shall have withdrawn its Demand or otherwise
determined not to pursue such registration, provided that, in the case of this
clause (iv), the Fund shall have reimbursed the Company for all of its
out-of-pocket expenses incurred in connection with such Demand.

         (f) The Company shall have the right, but not the obligation, to
include any securities to be issued and sold by the Company or sold on behalf of
any of the Company's security holders ("Other Rights Holders") in any
Registration Statement (including a Shelf Registration referred to in Section
2(d) hereof) filed pursuant to a Demand without the prior consent of the Fund.

         (g) If the lead managing underwriters of an Underwritten Offering made
pursuant to a Demand shall advise the Fund and (if applicable) the Foundation in
writing (with a copy to the Company) that marketing or other factors require a
limitation on the number of shares of Common Stock which can be sold in such
offering within a price range acceptable to the Fund, then (i) if the Company
shall have elected to include any securities to be issued and sold by the
Company or sold on behalf of Other Rights Holders in such Registration Statement
pursuant to Section 2(f) hereof, then the Company shall reduce the number of
securities the Company shall intend to issue and sell (and, if applicable, the
number of securities being sold on behalf of Other Rights Holders) pursuant to
such Registration Statement such that the total number of securities being sold
by each such party shall be equal to the number which can be sold in such
offering within a price range acceptable to the Fund, and (ii) if the Company
shall not have elected to include any securities in such Registration Statement
pursuant to Section 2(f)

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hereof or if the reduction referred to in the previous clause (i) shall not be
sufficient, then, notwithstanding Section 2(c)(iv) hereof, the Fund and (if
applicable) the Foundation shall reduce the number of Registrable Securities
requested to be included in such offering to the number that the lead managing
underwriter advises can be sold in such offering within such price range,
provided that, following such reduction, ninety-five percent (95%) of the
Registrable Securities to be included in the Registration Statement shall be
Beneficially Owned by the Fund and five percent (5%) of such Registrable
Securities shall be Beneficially Owned by the Foundation, unless otherwise
agreed to in writing by the Fund and the Foundation. Neither the Fund nor (if
applicable) the Foundation shall be required to reduce the number of Registrable
Securities requested to be included in any such offering until the number of
securities referred to in the previous clause (i) shall have been reduced to
zero (0). A requested Demand reduced pursuant to this Section 2(g) shall count
as a Demand Registration described in Section 2(c)(i) or Section 2(c)(ii)
hereof, provided that at least $30,000,000 in aggregate gross sale proceeds
shall have been received by the Fund and (if applicable) the Foundation pursuant
to such offering. In the event that a requested Demand Registration so reduced
does not result in at least $30,000,000 in aggregate gross sales proceeds being
received by the Fund and (if applicable) the Foundation, such requested Demand
Registration shall not be deemed to count as a Demand Registration described in
Section 2(c)(i) or Section 2(c)(ii) hereof, provided that the Fund and (if
applicable) the Foundation shall have reimbursed the Company for all of its
out-of-pocket expenses incurred in the preparation, filing and processing of the
Registration Statement.

         (h) Without the prior consent of the Fund, the Company shall not, from
and after the date hereof until the expiration of the Effective Period, grant
demand registration rights to any purchaser of the Company's Common Stock in a
private placement transaction that are superior to or pari-passu with the rights
of the Fund and the Foundation as set forth in this Agreement.

    Section 3. Piggy-Back Registration Rights.

         (a) Whenever the Company shall propose to file a Registration Statement
under the Securities Act relating to the public offering of securities for sale
for cash, the Company shall give written notice to the Fund and the Foundation
as promptly as practicable, but in no event less than fifteen (15) days prior to
the anticipated filing thereof, specifying the approximate date on which the
Company proposes to file such Registration Statement and the intended method of
distribution in connection therewith, and advising each of the Fund and the
Foundation of its right to have any or all of the Registrable Securities then
Beneficially Owned by them included among the securities to be covered by such
Registration Statement (the "Piggy-Back Rights"). In this regard, with respect
to offerings effected within twenty-four (24) months from the IPO Date, the Fund
and the Foundation shall have the right to have any or all of the Registrable
Securities then Beneficially Owned by them included among the securities to be
covered by such Registration Statement, such that the Fund and the Foundation
shall be entitled to receive, at their option, in the aggregate up to a maximum
of fifty percent (50%) of the proceeds from the sale of shares of Common Stock
to the public (the "Initial Piggy-Back Rights"). Unless otherwise agreed to in
writing by the Fund and the Foundation, of the Registrable Securities requested
to be included by the Fund and the Foundation in the aggregate in a Registration
Statement pursuant to this Section 3(a), ninety-five percent (95%) of such

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Registrable Securities shall be Beneficially Owned by the Fund and five percent
(5%) of such Registrable Securities shall be Beneficially Owned by the
Foundation.

         (b) Subject to Section 3(c) and Section 3(d) hereof, in the event that
the Fund or the Foundation has and shall elect to utilize its Piggy-Back Rights,
the Company shall include in the Registration Statement the Registrable
Securities identified by such Holder in a written request (a "Piggy-Back
Request") given to the Company not later than five Business Days prior to the
proposed filing date of the Registration Statement. The Registrable Securities
identified in a Piggy-Back Request shall be included in the Registration
Statement on the same terms and conditions as the other securities included in
the Registration Statement.

         (c) Notwithstanding anything in this Agreement to the contrary, the
Holders shall not have Piggy-Back Rights with respect to (i) a Registration
Statement on Form S-4 or Form S-8 or Form S-3 (with respect to dividend
reinvestment plans and similar plans) or any successor forms thereto, (ii) a
Registration Statement filed in connection with an exchange offer or an offering
of securities solely to existing stockholders or employees of the Company, or
(iii) a Registration Statement filed in connection with the redistribution of
shares of Common Stock held by a Holder in excess of the Ownership Limit
pursuant to Article IV of the Voting Trust and Divestiture Agreement.

         (d) If the lead managing underwriters selected by the Company and (if
applicable) the Fund for an Underwritten Offering for which Piggy-Back Rights
are requested shall advise the Company in writing that marketing or other
factors require a limitation on the number of shares of Common Stock which can
be sold in such offering within a price range acceptable to the Company, then,
subject to the second sentence of Section 3(a), (i) such underwriters shall
provide written notice thereof to each requesting Holder and (ii) there shall be
included in the offering, (A) first, all shares of Common Stock proposed by the
Company to be sold for its account (or such lesser amount as shall equal the
maximum number determined by the lead managing underwriters as aforesaid), (B)
second, all shares requested to be included in such Registration Statement by
the Fund and the Foundation, or such lesser number as shall equal, together with
the amount referred to in (A), the maximum number determined by the lead
managing underwriters as aforesaid (in which case ninety-five percent (95%) of
the shares sold by the Fund and the Foundation in the aggregate shall be
Beneficially Owned by the Fund and five percent (5%) shall be Beneficially Owned
by the Foundation, unless otherwise agreed to in writing by the Fund and the
Foundation) and (C) third, only that number of shares requested to be included
by any Other Rights Holders that such lead managing underwriters reasonably and
in good faith believe will not substantially interfere with (including, without
limitation, adversely affect the pricing of) the offering of all the shares of
Common Stock that the Company desires to sell for its own account.

         (e) Nothing contained in this Section 3 shall create any liability on
the part of the Company to the Holders if the Company for any reason should
decide not to file a Registration Statement for which Piggy-Back Rights are
available or to withdraw such Registration Statement subsequent to its filing,
regardless of any action whatsoever that a Holder may have taken, whether as a
result of the issuance by the Company of any notice hereunder or otherwise.

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         (f) A request made by a Holder pursuant to its Piggy-Back Rights to
include Registrable Securities in a Registration Statement shall not be deemed
to be a Demand Registration described in Section 2(c)(i) or Section 2(c)(ii)
hereof.

    Section 4. Selection of Underwriters. In connection with any Underwritten
Offering made pursuant to a Demand or an Initial Piggy-Back Right, the Company
and the Fund shall each select one joint book running managing underwriter to
manage the Underwritten Offering one of whom will be the stabilization agent.
The selection of the stabilization agent shall alternate between the Company and
the Fund. Such alternation of the selection of the stabilization agent shall
commence with the earlier of (i) the first Demand Registration filed pursuant to
this Agreement and (ii) the first Initial Piggy-Back Rights, with the
stabilization agent being selected by the Company for such first Demand
Registration or first Initial Piggy-Back Rights, as the case may be. Each of the
joint book running managing underwriters shall be equally compensated.

    Section 5. Blackout Periods. If (A) within five (5) Business Days following
the exercise by a Holder of a Demand, the Company determines in good faith and
notifies such Holder in writing that the registration and distribution of
Registrable Securities (or the use of the Registration Statement or related
Prospectus) resulting from a Demand received from a Holder would materially and
adversely interfere with any planned or proposed business combination
transaction involving the Company, or any pending financing, acquisition,
corporate reorganization or any other corporate development involving the
Company or any of its subsidiaries or (B) following the exercise by a Holder of
a Demand but before the effectiveness of the Registration Statement, (i) a
business combination, tender offer, acquisition or other corporate event
involving the Company is proposed, initiated or announced by another Person
beyond the control of the Company (an "Uncontrolled Event"), (ii) in the
reasonable judgment of the Board of Directors of the Company the filing or
seeking the effectiveness of the Registration Statement would materially and
adversely interfere with such Uncontrolled Event or would otherwise materially
and adversely affect the Company and (iii) the Company promptly so notifies the
Holder, then the Company shall be entitled to (x) postpone the filing of the
Registration Statement otherwise required to be filed by the Company pursuant to
Section 2 hereof, or (y) elect that the effective Registration Statement not be
used, in either case for a reasonable period of time, but not to exceed one
hundred twenty (120) days after the date that (1) the Demand was made (in the
case of an clause (A) above) or (2) the Company so notifies the Holder of such
determination (in the case of clause (B) above) (each a "Blackout Period"). Any
such written notice shall contain a general statement of the reasons for such
postponement or restriction on use and an estimate of the anticipated delay. The
Company shall (a) promptly notify such Holder of the expiration or earlier
termination of such Blackout Period and (b) use it reasonable best efforts to
effect the Demand Registration as promptly as practicable after the end of the
Blackout Period.

    Section 6. Holdback.

         (a) If (i) during the Effective Period, the Company shall file a
Registration Statement (other than a registration on Form S-4, Form S-8 or Form
S-3 (with respect to dividend reinvestment plans and similar plans) or any
successor forms thereto) with respect to any shares of its capital stock, and
(ii) upon reasonable prior notice the managing underwriter or

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underwriters (in the case of an Underwritten Offering) advise the Company and
the Fund in writing that a sale or distribution of Registrable Securities would
adversely impact such offering, then the Fund shall, to the extent not
inconsistent with applicable law, refrain from effecting any sale or
distribution of Registrable Securities, including sales pursuant to Rule 144,
during the period commencing on the effective date and continuing until the
ninetieth (90th) day after the effective date of such Registration Statement;
provided that such restriction shall apply to the Fund only if (i) in connection
with such offering, the underwriters require the directors and executive
officers of the Company to refrain from selling the Company's securities for a
like period and on like terms and (ii) the Fund, at the time of such offering,
Beneficially Owns five percent (5%) or more of the Company's issued and
outstanding Common Stock.

         (b) During the ninety (90) day period commencing on the effective date
of a Registration Statement filed by the Company on behalf of the Fund in
connection with an Underwritten Offering pursuant to a Demand, the Company shall
not effect (except pursuant to registrations on Form S-4 or Form S-8 or Form S-3
(with respect to dividend reinvestment plans and similar plans) or any successor
forms thereto and except pursuant to Section 2(f) hereof) any public sale or
distribution of Common Stock or of preferred stock or securities convertible
into or exercisable for Common Stock.

    Section 7. Registration Procedures. If and whenever the Company shall be
required to use its reasonable best efforts to effect or cause the registration
of any Registrable Securities under the Securities Act as provided in this
Agreement, the Company shall and, with respect to Section 7(m) and Section 7(n),
the Fund and (if applicable) the Foundation shall:

         (a) prepare and file with the SEC a Registration Statement with respect
to such Registrable Securities on any form for which the Company then qualifies
or that counsel for the Company shall deem appropriate, and which form shall be
available for the sale of the Registrable Securities in accordance with the
intended methods of distribution thereof, and use its reasonable best efforts to
cause such Registration Statement to become and remain effective;

         (b) prepare and file with the SEC amendments and post-effective
amendments to such Registration Statement and such amendments and supplements to
the Prospectus used in connection therewith as may be necessary to maintain the
effectiveness of such registration or as may be required by the rules,
regulations or instructions applicable to the registration form utilized by the
Company or by the Securities Act for a Shelf Registration or otherwise necessary
to keep such Registration Statement effective for at least ninety (90) days (or
one hundred eighty (180) days in the case of a Shelf Registration) and cause the
Prospectus as so supplemented to be filed pursuant to Rule 424 under the
Securities Act, and to otherwise comply with the provisions of the Securities
Act with respect to the disposition of all securities covered by such
Registration Statement until the earlier of (x) such 90th or 180th day, as the
case may be, or (y) such time as all Registrable Securities covered by such
Registration Statement shall have ceased to be Registrable Securities (it being
understood that the Company at its option may determine to maintain such
effectiveness for a longer period, whether pursuant to a Shelf Registration or
otherwise); provided, however, that a reasonable time before filing a
Registration Statement or Prospectus, or any amendments or supplements thereto
(other than reports required to be filed by it under the Exchange Act), the
Company shall furnish to the Fund and (if applicable) the

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Foundation, the managing underwriter and their respective counsel for review and
comment, copies of all documents proposed to be filed;

         (c) furnish, without charge, to the Fund and (if applicable) the
Foundation and to any underwriter in connection with an Underwritten Offering
such number of conformed copies of such Registration Statement and of each
amendment and post-effective amendment thereto (in each case including all
exhibits) and such number of copies of any Prospectus or Prospectus supplement
and such other documents as the Fund and (if applicable) the Foundation or
underwriter may reasonably request in order to facilitate the disposition of the
Registrable Securities by the Fund and (if applicable) the Foundation or
underwriter (the Company hereby consenting to the use (subject to the
limitations set forth in Section 7(n) hereof) of the Prospectus or any amendment
or supplement thereto in connection with such disposition);

         (d) use its reasonable best efforts to register or qualify such
Registrable Securities covered by such Registration Statement under such other
securities or "blue sky" laws of such jurisdictions as the Fund and (if
applicable) the Foundation shall reasonably request, except that the Company
shall not for any such purpose be required to qualify generally to do business
as a foreign corporation in any jurisdiction where, but for the requirements of
this Section 7(d), it would not be obligated to be so qualified, to subject
itself to taxation in any such jurisdiction, or to consent to general service of
process in any such jurisdiction;

         (e) as promptly as practicable, notify the managing underwriters (if
any) and the Fund and (if applicable) the Foundation, at any time when a
Prospectus relating thereto is required to be delivered under the Securities Act
within the appropriate period mentioned in Section 7(b) hereof, of the Company's
becoming aware that the Prospectus included in such Registration Statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing,
and, as promptly as practicable, prepare and furnish to the Fund and (if
applicable) the Foundation a reasonable number of copies of an amendment or
supplement to such Registration Statement or related Prospectus as may be
necessary so that, as thereafter delivered to the purchasers of such Registrable
Securities, such Prospectus shall not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading in light of the circumstances then
existing;

         (f) notify the Fund and (if applicable) the Foundation, as promptly as
practicable, at any time:

              (i) when the Prospectus or any Prospectus supplement or post-
effective amendment has been filed, and, with respect to the Registration
Statement or any post-effective amendment, when the same has become effective;

              (ii) of any request by the SEC for amendments or supplements to
the Registration Statement or the Prospectus or for additional information;

                                       11

<PAGE>

              (iii) of the issuance by the SEC of any stop order suspending the
effectiveness of the Registration Statement or any order preventing the use of a
related Prospectus, or the initiation (or any overt threats) of any proceedings
for such purposes;

              (iv) of the receipt by the Company of any written notification of
the suspension of the qualification of any of the Registrable Securities for
sale in any jurisdiction or the initiation (or overt threats) of any proceeding
for that purpose; and

              (v) if at any time the representations and warranties of the
Company contemplated by Section 7(i) below cease to be true and correct in all
material respects;

         (g) otherwise comply with all applicable rules and regulations of the
SEC, and make available to its security holders an earnings statement that shall
satisfy the provisions of Section 11(a) of the Securities Act, provided that the
Company shall be deemed to have complied with this Section 7(g) if it shall have
complied with Rule 158 under the Securities Act;

         (h) use its reasonable best efforts to cause all such Registrable
Securities to be listed on the NYSE, NASDAQ or any other national securities
exchange or automated quotation system on which the class of Registrable
Securities being registered is then listed, if such Registrable Securities are
not already so listed and if such listing is then permitted under the rules of
such exchange, and to provide a transfer agent and registrar for such
Registrable Securities covered by such Registration Statement no later than the
effective date of such Registration Statement;

         (i) enter into agreements (including, if applicable, an underwriting
agreement and other customary agreements in the form customarily entered into by
other companies in comparable underwritten offerings) and take all other
appropriate and all commercially reasonable actions in order to expedite or
facilitate the disposition of such Registrable Securities and in such
connection, whether or not an underwriting agreement shall be entered into and
whether or not the registration shall be an underwritten registration:

              (i) make such representations and warranties to the Fund and (if
applicable) the Foundation and the underwriters, if any, in form, substance and
scope as are customarily made by companies to underwriters in comparable
underwritten offerings;

              (ii) obtain opinions of counsel to the Company and updates thereof
(which counsel and opinions shall be reasonably satisfactory (in form, scope and
substance) to the managing underwriters) addressed to the underwriters covering
the matters customarily covered in opinions requested in comparable underwritten
offerings by the Company;

              (iii) obtain "comfort letters" and updates thereof from the
Company's independent certified public accountants addressed to the Board of
Directors of the Company and the underwriters, if any, such letters to be in
customary form and covering matters of the type customarily covered in "comfort
letters" by independent accountants in connection with comparable underwritten
offerings on such date or dates as may be reasonably requested by the managing
underwriters;

                                       12

<PAGE>

              (iv) provide the indemnification in accordance with the provisions
and procedures of Section 11 hereof to all parties to be indemnified pursuant to
such Section 11 and any other indemnification customarily required in
underwritten public offerings; and

              (v) deliver such documents and certificates as may be reasonably
requested by the Fund and (if applicable) the Foundation and the managing
underwriters, if any, to evidence compliance with Section 7(f) above and with
any customary conditions contained in the underwriting agreement or other
agreement entered into by the Company;

         (j) cooperate with the Fund and (if applicable) the Foundation and the
managing underwriter or underwriters to facilitate, to the extent reasonable
under the circumstances, the timely preparation and delivery of certificates
representing the securities to be sold under such Registration Statement, and
enable such securities to be in such denominations and registered in such names
as the managing underwriter or underwriters, if any, or the Fund and (if
applicable) the Foundation may request and/or in a form eligible for deposit
with the Depository Trust Company;

         (k) make available to the Fund and (if applicable) the Foundation, any
underwriter participating in any disposition pursuant to such Registration
Statement, and any attorney, accountant or other agent retained by the Fund and
(if applicable) the Foundation or underwriter (collectively, the "Inspectors"),
reasonable access to appropriate officers and employees of the Company and the
Company's subsidiaries to ask questions and to obtain information reasonably
requested by such Inspector and all financial and other records and other
information, pertinent corporate documents and properties of any of the Company
and its subsidiaries and affiliates (collectively, the "Records"), as shall be
reasonably necessary to enable them to exercise their due diligence
responsibility; provided, however, that the Records that the Company determines,
in good faith, to be confidential and which it notifies the Inspectors in
writing are confidential shall not be disclosed to any Inspector unless such
Inspector signs a confidentiality agreement in customary form reasonably
satisfactory to the Company or either (i) the disclosure of such Records is
necessary to avoid or correct a misstatement or omission of a material fact in
such Registration Statement, or (ii) the release of such Records is ordered
pursuant to a subpoena or other order from a court of competent jurisdiction;
provided, further, that any decision regarding the disclosure of information
pursuant to subclause (i) shall be made only after consultation with counsel for
the applicable Inspectors; and provided, further, that the Fund and (if
applicable) the Foundation severally each agrees that it or they shall, promptly
after learning that disclosure of such Records is sought in a court having
jurisdiction, give notice to the Company and allow the Company, at the Company's
expense, to undertake appropriate action to prevent disclosure of such Records;

         (l) in the event of the issuance of any stop order suspending the
effectiveness of the Registration Statement or of any order suspending or
preventing the use of any related Prospectus or suspending the qualification of
any Registrable Securities included in the Registration Statement for sale in
any jurisdiction, the Company shall use its reasonable best efforts promptly to
obtain its withdrawal;

         (m) the Fund and (if applicable) the Foundation severally each shall
furnish the Company with such information regarding it and pertinent to the
disclosure requirements

                                       13

<PAGE>

relating to the registration and the distribution of such securities as the
Company may from time to time reasonably request in writing or as shall be
required in connection with the action to be taken by the Company hereunder; and

         (n) the Fund and (if applicable) the Foundation severally each shall,
upon receipt of any notice from the Company of the happening of any event of the
kind described in Section 7(e) hereof, forthwith discontinue disposition of
Registrable Securities pursuant to the Prospectus or Registration Statement
covering such Registrable Securities until the Fund and (if applicable) the
Foundation shall have received copies of the supplemented or amended Prospectus
contemplated by Section 7(e) hereof, and, if so directed by the Company, the
Fund and (if applicable) the Foundation shall deliver to the Company (at the
Company's expense) all copies, other than permanent file copies then in their
possession, of the Prospectus covering such Registrable Securities current at
the time of receipt of such notice.

    Section 8. Registration Expenses. Except as otherwise provided herein, in
connection with all registrations of Registrable Securities made pursuant to a
Demand Registration or Piggy-Back Rights, the Company shall pay all Registration
Expenses; provided, however, that the Fund and (if applicable) the Foundation
shall pay, and shall hold the Company harmless from, (i) any underwriting
discounts and commissions and transfer taxes relating to the sale or disposition
of Registrable Securities and (ii) any fees, expenses or disbursements of
counsel and other advisors to the Fund and (if applicable) the Foundation.

    Section 9. Rule 144. The Company shall take such measures and file such
information, documents and reports as shall be required by the SEC as a
condition to the availability of Rule 144.

    Section 10. Covenants of Each Holder. Each Holder hereby covenants and
agrees that it shall not sell any Registrable Securities in violation of the
Securities Act and this Agreement, the Voting Trust and Divestiture Agreement,
the Certificate of Incorporation and the Bylaws.

    Section 11. Indemnification; Contribution.

         (a) The Company shall indemnify and hold harmless each Holder, its
respective officers and directors, and each person, if any, who controls such
Holder within the meaning of either Section 15 of the Securities Act or Section
20 of the Exchange Act and any agents, representatives or advisers thereof
against all losses, claims, damages, liabilities and expenses (including
reasonable attorneys' fees and expenses and reasonable costs of investigation)
incurred by such party pursuant to any actual or threatened action, suit,
proceeding or investigation arising out of or based upon (i) any untrue or
alleged untrue statement of material fact contained in any Registration
Statement, any Prospectus or preliminary Prospectus, or any amendment or
supplement to any of the foregoing, (ii) any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein (in the case of a Prospectus or a preliminary Prospectus,
in light of the circumstances then existing) not misleading, or (iii) any
violation or alleged violation by the Company of any United States federal,
state or common law rule or regulation applicable to the Company and relating to
action required of or inaction by the Company in connection with any such
registration except in each case insofar as the same arise out of or are based
upon, any such

                                       14

<PAGE>

untrue statement or omission made in reliance on and in conformity with written
information with respect to a Holder furnished to the Company by such Holder or
its counsel expressly for use therein. In connection with an Underwritten
Offering, the Company shall indemnify the underwriters thereof, their officers,
directors and agents and each Person who controls such underwriters (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
to the same extent as provided above with respect to the indemnification of each
Holder. Notwithstanding the foregoing provisions of this Section 11(a), the
Company shall not be liable to any Holder, any Person who participates as an
underwriter in the offering or sale of Registrable Securities or any other
Person, if any, who controls any such underwriter (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act), under this Section
11 for any such loss, claim, damage, liability (or action or proceeding in
respect thereof) or expense that arises out of an untrue statement or alleged
untrue statement or omission or alleged omission in the preliminary Prospectus
if a Holder, or other Person on behalf of such Holder, failed to send or deliver
a copy of a final Prospectus to the Person asserting the claim prior to the
written confirmation of the sale of the Registrable Securities to such Person
and such statement or omission was corrected in such final Prospectus and the
Company had previously and timely furnished sufficient copies thereof to the
Holders in accordance with this Agreement.

         (b) Any Person entitled to indemnification hereunder agrees to give
prompt written notice to the indemnifying party after the receipt by such
indemnified party of any written notice of the commencement of any action, suit,
proceeding or investigation or threat thereof made in writing for which such
indemnified party may claim indemnification or contribution pursuant to this
Section 11 (provided that failure to give such notification shall not affect the
obligations of the indemnifying party pursuant to this Section 11 except to the
extent the indemnifying party shall have been materially prejudiced as a result
of such failure). In case any such action shall be brought against any
indemnified party and it shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate therein and, to
the extent that it shall wish, jointly with any other indemnifying party
similarly notified, to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified party (who shall not, except with the consent
of the indemnified party, be counsel to the indemnifying party), and after
notice from the indemnifying party to such indemnified party of its election so
to assume the defense thereof, the indemnifying party shall not be liable to
such indemnified party under this Section 11 for any legal expenses of other
counsel or any other expenses, in each case subsequently incurred by such
indemnified party, in connection with the defense thereof other than reasonable
costs of investigation. Notwithstanding the foregoing, if (i) the indemnifying
party shall not have employed counsel reasonably satisfactory to such
indemnified party to take charge of the defense of such action within a
reasonable time after notice of commencement of such action (so long as such
failure to employ counsel is not the result of an unreasonable determination by
such indemnified party that counsel selected pursuant to the immediately
preceding sentence is unsatisfactory) or if the indemnifying party shall not
have demonstrated to the reasonable satisfaction of the indemnified party its
ability to finance such defense, or (ii) the actual or potential defendants in,
or targets of, any such action include both the indemnifying party and such
indemnified party and such indemnified party shall have reasonably concluded
that there may be legal defenses available to it which are different from or
additional to those available to the indemnifying party which, if the
indemnifying party and such indemnified party were to be represented by the same
counsel, could result in a conflict of interest for such counsel or materially
prejudice the prosecution of the defenses available to such

                                       15

<PAGE>

indemnified party, then such indemnified party shall have the right to employ
separate counsel, in which case the fees and expenses of one counsel or firm of
counsel (plus one local or regulatory counsel or firm of counsel) selected by a
majority in interest of the indemnified parties shall be borne by the
indemnifying party and the fees and expenses of all other counsel retained by
the indemnified parties shall be paid by the indemnified parties. No indemnified
party shall consent to entry of any judgment or enter into any settlement
without the consent (which consent, in the case of an action, suit, claim or
proceeding exclusively seeking monetary relief, shall not be unreasonably
withheld) of each indemnifying party.

         (c) If the indemnification from the indemnifying party provided for in
this Section 11 is unavailable to an indemnified party hereunder in respect of
any losses, claims, damages, liabilities or expenses referred to therein, then
the indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities and expenses in such proportion as
is appropriate to reflect the relative fault of the indemnifying party and
indemnified party in connection with the actions or omissions which resulted in
such losses, claims, damages, liabilities and expenses, as well as any other
relevant equitable considerations. The relative fault of such indemnifying party
and indemnified party shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact, has
been made by, or relates to information supplied (in writing, in the case of a
Holder) by, such indemnifying party or indemnified party, and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such action or omission. The amount paid or payable by a party as a
result of the losses, claims, damages, liabilities and expenses referred to
above shall be deemed to include, subject to the limitations set forth in
Section 11(b) hereof, any legal and other fees and expenses reasonably incurred
by such indemnified party in connection with any investigation or proceeding.
The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 11(c) were determined by pro rata allocation or by any
other method of allocation which does not take account of the equitable
considerations referred to above in this Section 11(c). Any underwriter's
obligations in this Section 11(c) to contribute shall be several in proportion
to the number of Registrable Securities underwritten by them and not joint.
Notwithstanding the provisions of this Section 11(c), no underwriter shall be
required to contribute any amount in excess of the amount by which the total
price at which the Registrable Securities underwritten by it and distributed to
the public were offered to the public exceeds the amount of any damages which
such underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. If indemnification is available
under this Section 11, the indemnifying parties shall indemnify each indemnified
party to the fullest extent provided in Section 11(a) hereof without regard to
the relative fault of such indemnifying parties or indemnified party or any
other equitable consideration provided for in this Section 11(c).

         (d) The provisions of this Section 11 shall be in addition to any
liability which any party may have to any other party and shall survive any
termination of this Agreement. The indemnification provided by this Section 11
shall survive the transfer of such Registrable Securities by the Holder and
shall remain in full force and effect irrespective of any investigation

                                       16

<PAGE>

made by or on behalf of an indemnified party, so long as such indemnified party
is not guilty of acting in a fraudulent, reckless or grossly negligent manner.

    Section 12. Hedging Transactions. The Fund shall be permitted to enter into
transactions in respect of the Registrable Securities that constitute customary
market hedging strategies; provided that, such transactions do not otherwise
violate any of the provisions of the Certificate of Incorporation, the Voting
Trust and Divestiture Agreement or this Agreement.

    Section 13. Participation in Underwritten Offerings. A Holder may not
participate in any Underwritten Offering hereunder unless such Holder (a) in the
case of a registration pursuant to Section 3 hereof, agrees to sell the Holder's
securities on the same economic terms as are applicable to the Company in such
offering, and (b) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required
under the terms of such underwriting arrangements.

    Section 14. No Overlapping Directors. The Fund and the Foundation each
agrees with the Company that for the term of the Voting Trust and Divestiture
Agreement no individual shall at any time serve as a member of its managing
board if such individual also serves or at any time previously served on the
managing board of the other.

    Section 15. Injunctions. Each party acknowledges and agrees that irreparable
damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with its specific terms or were otherwise
breached. Therefore, each party shall be entitled to an injunction or
injunctions to prevent breaches of the provisions of this Agreement and to
enforce specifically the terms and provisions hereof in any court having
jurisdiction, such remedy being in addition to any other remedy to which such
party may be entitled at law or in equity.

    Section 16. Amendments and Waivers. No amendment, modification, supplement,
termination, consent or waiver of any provision of this Agreement, nor consent
to any departure herefrom, shall in any event be effective unless the same is in
writing and is signed by the party against whom enforcement of the same is
sought. Any waiver of any provision of this Agreement and any consent to any
departure from the terms of any provision of this Agreement shall be effective
only in the specific instance and for the specific purpose for which given.

    Section 17. Notices. All notices, consents, requests, demands and other
communications hereunder must be in writing, and shall be deemed to have been
duly given or made: (i) when delivered in person; (ii) three (3) days after
deposited in the United States mail, first class postage prepaid; (iii) in the
case of telegraph or overnight courier services, one (1) Business Day after
delivery to the telegraph company or overnight courier service with payment
provided; or (iv) in the case of telex or telecopy or fax, when sent,
verification received; in each case addressed as follows:

                                       17

<PAGE>

         if to the Company:

                  WellChoice, Inc.
                  11 West 42nd Street
                  New York, NY 10036
                  Attention: Linda V. Tiano, Esq.
                  Fax: (212) 476-2461

         with copy to:

                  Weil, Gotshal & Manges LLP
                  767 Fifth Avenue
                  New York, NY 10153
                  Attention:  Ira M. Millstein, Esq.
                              Raymond O. Gietz, Esq.
                  Fax: (212) 310-8007

         if to the Fund:

                  The New York Public Asset Fund
                  c/o LeBoeuf, Lamb, Greene & MacRae, L.L.P.
                  125 West 55th Street
                  New York, NY 10019
                  Attention:  Alexander M. Dye, Esq.
                  Fax: (212) 424-8500

         if to the Foundation:

                  The New York Charitable Asset Foundation
                  c/o LeBoeuf, Lamb, Greene & MacRae, L.L.P.
                  125 West 55th Street
                  New York, NY 10019
                  Attention:  Alexander M. Dye, Esq.
                  Fax: (212) 424-8500

                                       18

<PAGE>

    Section 18. Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors of each of the parties. This
Agreement and the provisions of this Agreement that are for the benefit of a
Holder shall not be assignable by such Holder to any Person and any such
purported assignment shall be null and void. Notwithstanding the foregoing, this
Agreement shall not preclude the Fund or the Foundation, in the event the Fund
or the Foundation, as the case may be, sells Registrable Securities to an
Institution (as defined in the Voting Trust and Divestiture Agreement) in a
private transaction in accordance with the terms of the Voting Trust and
Divestiture Agreement (in the case of the Fund), from entering into an agreement
with such Institution permitting such Institution to participate in underwritten
public offerings conducted by the Fund and (if applicable) the Foundation
pursuant to Section 2 or underwritten public offerings in which the Fund or (if
applicable) the Foundation participates pursuant to Section 3. The shares owned
and to be sold by any such Institution shall be treated, for purposes of this
Agreement, as being owned and to be sold by the Fund or the Foundation, as the
case may be. The Company shall have no obligations hereunder to any such
Institution.

    Section 19. Representations and Warranties. Each party hereto represents and
warrants to the other parties as follows:

         (a) Such party is duly organized and validly existing under the laws of
its jurisdiction of organization.

         (b) Such party has full corporate or other organizational power and
authority to enter into this Agreement and to carry out and perform it
obligations hereunder. The execution, delivery and performance by such party of
this Agreement have been duly authorized and approved by all necessary corporate
or other organizational action. This Agreement has been duly authorized,
executed and delivered by such party and constitutes the legal, valid and
binding obligation of such party enforceable against it in accordance with its
terms, subject to applicable bankruptcy, insolvency and similar laws affecting
creditor's rights generally and to general principles of equity.

         (c) The execution, delivery and performance by such party of its
obligations under this Agreement, and compliance by such party with the terms
and conditions hereof will not (i) violate, with or without the giving of notice
or the lapse of time, or both, or require any registration, qualification,
approval or filing (other than registrations, qualifications, approvals and
filings that have already been made or obtained) under, any provision of law,
statute, ordinance or regulation applicable to it or any of its subsidiaries and
(ii) conflict with, or require any consent or approval under, or result in the
breach or termination of any provision of, or constitute a default under, or
result in the acceleration of the performance of the obligations of such party
or any of its subsidiaries under, or result in the creation of any claim, lien,
charge or

                                       19

<PAGE>

encumbrance upon any of the properties, assets or businesses of such party or
any of its subsidiaries pursuant to (x) its organizational documents, (y) any
order, judgment, decree, law, ordinance or regulation applicable to it or any of
its subsidiaries or (z) any contract, instrument, agreement or restriction to
which it or any of its subsidiaries is a party or by which it or any of its
subsidiaries or any of its respective assets or properties is bound.

    Section 20. Counterparts. This Agreement may be executed in one (1) or more
counterparts, all of which shall be considered one (1) and the same agreement
and shall become effective when one (1) or more counterparts have been signed by
each of the parties and delivered to the other parties.

    Section 21. Descriptive Headings. The descriptive headings used herein are
inserted for convenience of reference only and are not intended to be part of or
to affect the meaning or interpretation of this Agreement.

    Section 22. Governing Law. This Agreement and the rights and obligations of
the parties hereunder shall be governed by and construed in accordance with the
laws of the State of New York, without regard to choice or conflict of laws
rules.

    Section 23. Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstances,
shall be held invalid, illegal or unenforceable in any respect for any reason,
the validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions contained herein shall not be in any way
impaired thereby, it being intended that all remaining provisions contained
herein shall not be in any way impaired thereby.

    Section 24. Entire Agreement. This Agreement, including any exhibits or
attachments referred to herein, is intended by the parties as a final expression
and a complete and exclusive statement of the agreement and understanding of the
parties hereto in respect of the subject matter hereof. There are no
restrictions, promises, warranties or undertakings with respect to the subject
matter hereof, other than those set forth or referred to herein. This Agreement
supersedes all prior agreements and understandings between the parties with
respect to such subject matter.

    Section 25. Further Actions; Reasonable Best Efforts. Each Holder shall use
its reasonable best efforts to take or cause to be taken all appropriate action
and to do or cause to be done all things reasonably necessary, proper or
advisable under applicable law and regulations to assist the Company in the
performance of its obligations hereunder, including, without limitation, the
preparation and filing of any Registration Statements pursuant to any Demand.

                        [signatures appear on next page]

                                       20

<PAGE>

    IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first set forth above.

                                            WELLCHOICE, INC.

                                            By:
                                               ---------------------------------
                                            Name:
                                            Title:

                                            THE MEMBERS OF THE BOARD OF THE NEW
                                            YORK PUBLIC ASSET FUND

                                            ------------------------------------
                                            Name:

                                            ------------------------------------
                                            Name:

                                            ------------------------------------
                                            Name:

                                            ------------------------------------
                                            Name:

                                            ------------------------------------
                                            Name:

                                            THE NEW YORK CHARITABLE ASSET
                                            FOUNDATION

                                            By:
                                               ---------------------------------
                                            Name:
                                            Title:

                                       21<PAGE>

                                                                 EXHIBIT 10.16

                 EMPIRE BLUE CROSS/BLUE SHIELD LICENSE ADDENDUM

         Blue Cross and Blue Shield Association (the "National Association") and
WellChoice, Inc. ("Holdco") have entered into this License Addendum ("this
Addendum") as of November __, 2002 (the "date hereof").

         Whereas: The National Association is an association of independent
members. The National Association licenses to each member the right to use the
"Blue Cross" and/or "Blue Shield" names under which the member provides health
care benefits in the state or other service area to which the license applies.
The rights licensed by the National Association are herein collectively called
the "Blue Cross/Blue Shield Licensed Rights."

         Whereas: Each member's right to continue to use the Blue Cross/Blue
Shield Licensed Rights and to remain a member of the Association is conditioned
upon that member's remaining in compliance with membership standards and
requirements established by the National Association.

         Whereas: It is fundamental to the integrity of the National Association
that each member remain independent of any control or influence by any
particular economic interest or other special interest which might impair its
ability to (i) exercise independent judgment as to the programs which will best
meet the needs of the communities in the state or area for which it is
responsible or (ii) function as an integral part of a unique system that depends
on cooperative efforts of independent members to provide Blue Cross/Blue Shield
coverage on a nationwide basis.

         Whereas: Empire HealthChoice, Inc. (which is called the "Old Parent" in
this Addendum) has served as the primary licensee authorized by the National
Association to provide health care benefits in a service area within the State
of New York established by licenses granted by the National Association to the
Old Parent (the "New York Service Area"). The Old Parent was originally
organized as a nonprofit health services corporation incorporated in New York.

         Whereas: The Board of Directors of the Old Parent has approved a series
of related actions (herein collectively called the "New York Reorganization")
that are designed, among other things, to change the member holding the primary
license for the provision of Blue Cross and Blue Shield health care benefits in
the New York Service Area to an investor-owned corporation.

         Whereas: Holdco has been incorporated in Delaware for the purpose of
taking the place of the Old Parent as the member primarily licensed to provide
health care benefits in the New York Service Area under the Blue Cross/Blue
Shield Licensed Rights after completion of the New York Reorganization.

         Whereas: The New York Reorganization was consummated on the date hereof
and included among other things the following actions: (1) Old Parent converted
from a not-for-profit health service corporation to a for-profit accident and
health insurance corporation in

<PAGE>

accordance with New York law and issued one hundred percent (100%) of its
authorized common stock as follows: (i) ninety-five percent (95%) to a "public
asset fund" (the "Fund") and (ii) five percent (5%) to a charitable non-profit
corporation (the "Foundation"); (2) the Fund and the Foundation will
simultaneously receive all of the shares of newly issued common stock of Holdco
in exchange for all of their Old Parent shares; (3) WellChoice Holdings of New
York, Inc., a New York corporation ("Holdings") and wholly-owned subsidiary of
Holdco, will receive all of the outstanding shares of Old Parent from the
Foundation and Fund; (4) Old Parent will become a wholly owned subsidiary of
Holdings; (5) Empire HealthChoice Assurance, Inc. ("EHCA") will be merged with
and into Old Parent with surviving entity being Old Parent under the name
"Empire Health Choice Assurance, Inc." ("New Empire"), (6) Holdco has commenced
an initial public offering of stock (the "IPO") and (7) immediately after the
proposed transaction, including the IPO, the Fund will own not more than 79% of
the outstanding shares of Holdco and preside over the liquidation of such stock
over a ten year period; and the Foundation will own less than 5% of the
outstanding shares of Holdco.

         Whereas: The National Association permits a member to convert to
investor-owned status only if the member has in place safeguards designed to
protect the member's independence including safeguards designed to prevent any
institutional investor from acquiring a 10% or higher voting interest in the
member, to prevent any other investor from acquiring a 5% or higher voting
interest in the member, and to prevent any investor from acquiring a 20% or
higher ownership interest in the member. The Fund does not qualify as an
institutional investor for purposes of these requirements.

         Whereas: The parties to the New York Reorganization recognized that the
New York Reorganization would provide the Fund with an initial ownership
interest in Holdco much larger than permitted by the National Association's
license requirements applicable to investor-owned members and requested that the
National Association: (i) grant a temporary exemption from the ownership
concentration limit to provide the Fund with time to sell its ownership in
Holdco to buyers whose ownership is below the National Association's limits
cited in the preceding paragraph in an orderly manner though a series of
underwritten public offerings or by other appropriate means; (ii) admit Holdco
as a member of the National Association; (iii) issue Holdco Primary Licenses
permitting Holdco to use the names "Blue Cross" and "Blue Shield" and various
other Blue Cross/Blue Shield Licensed Rights in the New York Service Area; and
(iv) issue controlled affiliate licenses to certain affiliates controlled by
Holdco permitting them to utilize various Blue Cross/Blue Shield Licensed
Rights.

         Whereas: The National Association is willing to grant the waiver and
take the other actions specified in the preceding paragraph subject to the
following conditions: (i) a package of safeguards be instituted in Holdco's
Charter and Bylaws and in agreements between Holdco and the Fund in order among
other things to obtain the Fund's commitment to sell down its ownership interest
in Holdco by prescribed minimum amounts by prescribed deadlines and to ensure
that Holdco remains independent of the Fund during the period the sell down
occurs; (ii) Holdco must explicitly agree that the licenses granted by the
National Association to Holdco and its controlled affiliates will automatically
terminate on the terms specified in this Addendum if Holdco's independence is
lost or jeopardized by the loss of any of the safeguards or by the failure

                                       2

<PAGE>

to observe or enforce any of the safeguards; and (iii) Holdco must provide
certain other commitments contained in this Addendum.

         Whereas: The parties have entered into this Addendum to evidence the
waiver granted by the National Association and the terms subject to which it has
been granted.

        The parties hereby agree as follows:

     1. Waiver. The National Association hereby agrees that the ownership of
Holdco shares by the Fund in excess of the number permitted by the Holdco
Primary Licenses will not be deemed to provide grounds for termination of the
Holdco Licenses so long as the conditions specified in Part 2 of this Addendum
are satisfied. In order to obtain the waiver and consent in the preceding
sentence, Holdco agrees that its right to hold and utilize the Holdco Primary
Licenses will at all times be subject to the conditions in Part 2 of this
Addendum and hereby covenants not to take or allow any action (or to fail to
enforce any right or power available to it in any manner) which could provide
grounds for termination of the Holdco Primary Licenses other than pursuant to
clause (d) of paragraph 9 of the Holdco Primary Licenses.

     2. Triggering Events.

        2.1 Selldown Commitments: A Triggering Event shall be deemed to have
occurred if without the written consent of the National Association the Fund
shall Beneficially Own common stock representing:

            (a) more than 80% of the outstanding common stock at any time from
and including the date of the initial public offering referenced in Section 2.6
herein to but not including the "Three Year Divestiture Deadline", or

            (b) 50% or more of the outstanding common stock at any time from and
including the "Three Year Divestiture Deadline" to but not including the "Five
Year Divestiture Deadline", or

            (c) 20% or more of the outstanding common stock at any time from and
including the "Five Year Divestiture Deadline" to but not including the "Ten
Year Divestiture Deadline", or

            (d) 5% or more of the outstanding common stock at any time on or
after the "Ten Year Divestiture Deadline".

        The terms "Three Year Divestiture Deadline", "Five Year Divestiture
Deadline" and "Ten Year Divestiture Deadline" have the respective meanings set
forth in the Voting Trust and Divestiture Agreement dated the date hereof among
the Fund, the Trustee and Holdco (herein called the "Voting Trust Agreement") as
such terms are defined therein on the date hereof and without giving effect to
any amendment or supplement to the Voting Trust Agreement.

        The term "Selldown Completion Date" shall be deemed to occur for
purposes of this Addendum when the Fund reduces its Beneficial Ownership of
Holdco common stock to less

                                       3

<PAGE>

than 5% of the outstanding common stock provided that if prior to the Selldown
Completion Date Holdco shall issue any equity security other than common stock,
then the Selldown Completion Date shall occur when the Fund reduces its
Beneficial Ownership of Holdco shares to (i) less than 5% of the outstanding
common stock and (ii) less than levels of ownership of Holdco shares that (but
for this Addendum) could provide a basis for the termination of the Holdco
Primary Licenses as then constituted.

        2.2 Standstill Commitment. A Triggering Event shall be deemed to have
occurred if without the written consent of the National Association the Fund
shall at any time prior to the Selldown Completion Date become Beneficial Owner
of any Holdco shares except for (i) the common stock issuable to the Fund in the
New York Reorganization and (ii) common stock issued to the Fund in connection
with stock dividends, stock splits, recapitalizations and other events in which
the Fund receives the same consideration per common share owned prior to such
event as every other holder of common stock and in which the voting power and
percentage ownership interest represented by the Fund Shares does not increase.
The term "Fund Shares" whenever it is used in this Addendum designates and
includes all Holdco shares Beneficially Owned by the Fund at the time as of
which the term shall be applied.

        2.3 Voting Trust. A Triggering Event shall be deemed to have occurred if
at any time prior to the Selldown Completion Date without the written consent of
the National Association:

            (a) the Voting Trust Agreement shall be amended, eliminated or
otherwise impaired or any person shall be permitted, by the ruling of any court
or otherwise, to take any action contrary to any of the terms of the Voting
Trust Agreement;

            (b) the Fund shall breach any of its covenants in Article V of the
Voting Trust Agreement;

            (c) the voting trust established by the Voting Trust Agreement (the
"Voting Trust") shall expire or otherwise cease to exist other than as a result
of the termination of the Voting Trust Agreement pursuant to section 9.01
thereof;

            (d) except for the Undeposited Shares, any of the Fund Shares shall
be voted in any manner contrary to the express terms in the Voting Trust
Agreement;

            (e) except for the Undeposited Shares, any of the Fund Shares shall
not be held on deposit in the Voting Trust and subject to all of the provisions
in the Voting Trust Agreement from the time the Fund acquires Beneficial
Ownership of that Share until the earlier of (i) the sale of that Share in a
manner that complies with clause (f) or (ii) the Selldown Completion Date;

            (f) any of the Fund Shares shall be withdrawn from the Voting Trust
for any reason other than as contemplated under Section 3.02 of the Voting Trust
Agreement or a sale consummating at the time of such withdrawal that causes the
Fund to cease to Beneficially Own that share.

                                       4

<PAGE>

        The term "Undeposited Shares" means Fund Shares which (i) are not
deposited in the voting trust established by the Voting Trust Agreement and (ii)
in the aggregate are at all times less than 5% of the outstanding common stock
of Holdco and, if Holdco shall issue any equity security other than common
stock, are less than 5% of the outstanding common stock and less than levels of
ownership of Holdco shares that (but for this Addendum) could provide a basis
for termination of the Holdco Primary Licenses as then constituted.

            (g) Holdco Independence. A Triggering Event shall be deemed to have
occurred if at any time prior to the Selldown Completion Date without the
written consent of the National Association a majority of the persons elected or
appointed to the Holdco Board shall not be independent of: (i) any government
authority in New York State (including any municipal subdivision thereof) or
(ii) any business or similarly situated entities, any of which provide goods or
services to Holdco.

         2.4 Impairment of the Permanent Protections. A Triggering Event shall
be deemed to have occurred if at any time without the written consent of the
National Association:

            (a) Any person who does not qualify as an "Independent Director"
under Holdco's Charter as constituted on the date hereof shall be elected or
appointed to the Holdco Board of Directors and immediately after such election
or appointment, less than a majority of the sitting members of the Holdco Board
shall constitute Independent Directors; or

            (b) The Holdco Board shall use its discretionary powers under the
Holdco Charter to cause any person not to constitute a "Major Participant" who
would but for such Board action have constituted a Major Participant under
Article IV Section 4 of the Holdco Charter; or

            (c) The Holdco Board shall take any action that impairs or
eliminates Holdco's ability to eliminate any concentrated ownership of Holdco
shares that could provide grounds for termination of any of the Holdco Licenses
including but not limited to any such action under clause (b) in the definition
of Beneficial Ownership in Section 1 of Article VII of the Holdco Charter or any
such action under Section 15 of Article VII of the Holdco Charter; or

            (d) Any of the provisions in Article IV (other than provisions in
Sections 2, 8 and 9 of Article IV), Article VII, Article VIII, Article X, or
Article XII of Holdco's Charter shall be amended, eliminated or otherwise
impaired or any person shall be permitted, by the ruling of any court or
otherwise, to take any action contrary to the terms of any of those provisions;
or

            (e) The Holdco Charter shall be amended to eliminate, change or
impair the language in Article VI that reads:

                  "In no event shall any director be deemed to breach any
                  fiduciary duty or other obligation owed to any stockholders of
                  the Corporation or any other person by reason of (i) his or
                  her failure to vote for (or by reason of such director's vote
                  against) any

                                       5

<PAGE>

                  proposal or course of action that in such director's judgment
                  would breach any requirement imposed by the Blue Cross and
                  Blue Shield Association (or its then successor) (the "BCBSA")
                  or could lead to termination of any license granted by the
                  BCBSA to the Corporation or any subsidiary or affiliate of the
                  Corporation, or (ii) his or her decision to vote in favor of
                  any proposal or course of action that in such director's
                  judgment is necessary to prevent a breach of any requirement
                  imposed by the BCBSA or could prevent termination of any
                  license granted by the BCBSA to the Corporation or any
                  subsidiary or affiliate of the Corporation"; or

            (f) Any shares known by Holdco to be Excess Shares under the terms
of Article VII of Holdco's Charter shall not be voted in accordance with the
terms in Section 7 of Article VII of Holdco's Charter; or

            (g) Any of the provisions in Section 2.3, 2.11, 3.4, or 3.5 of
Holdco's Bylaws shall be amended, eliminated or otherwise impaired or any person
shall be permitted, by the ruling of any court or otherwise, to take any action
contrary to the terms of any of those provisions; or

            (h) any warranty by Holdco in Section 6.4 herein shall not be
correct (whether or not Holdco or any other person knew or could have known that
such warranty was incorrect).

        2.5 Notice. Holdco shall notify the National Association in writing
immediately after Holdco learns of any development or state of facts that
constitutes a Triggering Event.

        2.6 IPO. A Triggering Event shall be deemed to have occurred if the
consummation of the initial public offering under the New York Reorganization
has not occurred within 60 days of the date hereof.

        2.7 Foundation. A Triggering Event shall be deemed to have occurred if
at any time after the initial public offering referenced in Section 2.6, the
Foundation becomes the Beneficial Owner of more than 5% of the outstanding
common stock of Holdco.

        2.8 Trustee. The BCBSA acknowledges and agrees with Holdco that the
Trustee under the Voting Trust Agreement does not Beneficially Own any of the
shares subject to the Voting Trust.

     3. Termination Provisions.

        3.1 Automatic Termination. Except as otherwise provided in Section 3.2,
or Section 3.3, all Holdco Licenses shall automatically terminate thirty days
after Holdco first learns of any development or state of facts that constitutes
a Triggering Event under the terms of this Addendum. The termination of any of
the Holdco Licenses under any of the provisions in this Addendum shall have the
consequences prescribed in paragraphs 11 and 15(d) (including

                                       6

<PAGE>

subparagraph (iii) of paragraph 15(d)) of the Holdco Primary Licenses and other
consequences consistent therewith arising out of the terms of the Holdco
Licenses, this Addendum or other applicable provisions.

        3.2 Waiver Request.

            (a) Holdco shall have the right to request that the National
Association grant a waiver to prevent or reverse an automatic termination under
Section 3.1. Any such request shall (i) describe the Triggering Event, (ii)
describe the action Holdco proposes to take in response to the Triggering Event,
and (iii) describe the action from the National Association requested by Holdco
in connection with the Triggering Event.

            (b) If in connection with any particular Triggering Event, Holdco
shall actually deliver a waiver request to the National Association in writing
on or prior to the thirtieth day (the "Request Deadline") after Holdco first
learns of the development or state of facts that constitutes that Triggering
Event, then no automatic termination shall become effective by reason of the
occurrence of that particular Triggering Event until the conclusion of the first
meeting of the members of the National Association that occurs after receipt of
such a waiver request.

            (c) If in connection with any particular Triggering Event, Holdco
shall not deliver a waiver request to the National Association in writing on or
prior to the Request Deadline but shall do so after the Request Deadline, then
the National Association shall have the right to temporarily reinstate all or
any one or more of the Holdco Licenses effective from the date upon which they
would otherwise have automatically terminated under Section 3.1 upon such terms
and subject to such conditions as the National Association may prescribe and
utilize the procedure prescribed in Section 3.3 to determine whether the Holdco
Licenses shall terminate or whether an Alternative Outcome shall be prescribed.
In no event shall the National Association be deemed obligated to grant any such
temporary reinstatement and unless the National Association does so the
automatic termination of the Holdco Licenses effected under Section Error!
Reference source not found. shall be permanent.

        3.3 Members' Disposition.

            (a) If any automatic termination of the Holdco Licenses shall have
been postponed pursuant to the provisions of Section 3.2 until a particular
meeting of the members of the National Association, then such automatic
termination shall become effective at the conclusion of that meeting unless a
Double Disinterested Majority in their sole discretion prescribe an alternative
outcome (herein called an "Alternative Outcome").

            (b) The Alternative Outcome may have any terms as the Double
Disinterested Majority shall prescribe and (without limiting by implication the
discretion of such Double Disinterested Majority) may be (i) an interim outcome
(such as the postponement of a final decision to a subsequent meeting subject to
such conditions as such Double Disinterested Majority shall prescribe) or (ii) a
final outcome in which Holdco's right to retain the Holdco Licenses may be made
subject to such terms and conditions as the Double Disinterested Majority may
prescribe and in which the terms of those Holdco Licenses and or this Addendum
may be

                                       7

<PAGE>

changed in such manner as the Double Disinterested Majority may prescribe. The
Double Disinterested Majority shall also have the right to delegate to any
committee, group or person the right to establish any of the terms of an
Alternative Outcome, to administer any Alternative Outcome, and/or to make
determinations required under the Alternative Outcome (such as a determination
as to whether Holdco has satisfied any conditions that may be prescribed in the
Alternative Outcome for the continuation of the Holdco Licenses).

            (c) If Holdco shall be dissatisfied with any Alternative Outcome,
Holdco shall have the right to elect to have the Holdco Licenses automatically
terminate rather than accept such Alternative Outcome. Unless Holdco shall
expressly agree in writing to the terms of an Alternative Outcome not later than
the Acceptance Deadline, the Holdco Licenses shall automatically terminate on
the Acceptance Deadline. Unless the Double Disinterested Majority shall
prescribe another date, the Acceptance Deadline for any Alterative Outcome shall
be the third business day after the Double Disinterested Majority approves the
Alterative Outcome.

            (d) For purposes of this Agreement, the term "Double Disinterested
Majority" means a majority of the disinterested members of the National
Association and a majority of the total then current weighted vote of the
disinterested members of the National Association.

        3.4 Each Triggering Event Operates Independently. Each Triggering Event
shall operate independently of any other Triggering Event for purposes of this
Addendum. Every Triggering Event shall constitute a separate and self-sufficient
cause for automatic termination of the Holdco Licenses regardless of whether any
prior occurrence of such event or any other event shall have been waived
absolutely or conditionally. Accordingly whenever a development occurs or a
state of facts exists that constitutes a Triggering Event under any of the
provisions in Part 2, (i) that development or state of facts shall cause an
automatic termination of the Holdco Licenses under Section 3.1 unless a separate
Alternative Outcome shall be separately approved for that particular Triggering
Event under the provisions of Section 3.3 and (ii) the result prescribed in
clause (i) shall occur regardless of whether one or more Triggering Events shall
have earlier occurred and regardless of the outcome of any preceding Triggering
Event.

        3.5 Association's Independent Authority. The National Association shall
have the right and power to make each determination available to it under this
Addendum in such manner as the National Association shall determine in its sole
discretion and shall not be under any explicit or implicit obligation to act in
any particular manner or to avoid any particular course of action. Without
limiting by implication the generality of the preceding provisions, in no event
shall the National Association have any duty or obligation (i) to prevent any
automatic termination of the Holdco Licenses or to approve any Alternative
Outcome to any such automatic termination or (ii) to treat any particular
development or circumstances in a manner consistent with the manner in which the
National Association treated any prior development or circumstances (whether
involving Holdco or any other National Association member).

                                       8

<PAGE>

     4. License Relationships

        4.1 This Addendum Controls. The Holdco Primary Licenses and all other
Holdco Licenses granted on or after the date hereof shall be deemed subject to
this Addendum regardless of whether any such Holdco License explicitly so states
or otherwise refers to this Addendum. In the event there shall be any conflict
between any provision in this Addendum and any provision in any of the Holdco
Licenses, this Addendum shall control.

        4.2 No Other Waiver. Nothing herein shall constitute a waiver of the
National Association's rights to terminate the Holdco Licenses for any reason
allowed under the Holdco Licenses other than the reason expressly waived in Part
1 of this Addendum.

        4.3 Cancellation of Preceding Licenses. All agreements, understandings
or other circumstances which were made or arose prior to the date hereof
granting Old Parent, Holdco or any of their respective subsidiaries, affiliates
or predecessors licenses or rights in the Blue Cross name or Blue Shield name or
other rights licensed by the National Association are hereby terminated, and
neither Holdco nor Old Parent nor any of their respective affiliates shall have
any rights under or by reason of such earlier agreements, understandings or
other circumstances. The rights of Holdco and its subsidiaries and affiliates to
use the Blue Cross name, the Blue Shield name and other rights licensed by the
National Association shall instead be derived from and after the date hereof
exclusively from the Holdco Licenses and related written agreements granted on
or after the date hereof. No rule of strict construction, rule resolving
ambiguities against the person who drafted the provision giving rise to such
ambiguities, or other such rule of interpretation shall be applied against any
party with respect to this Addendum or any Holdco License.

     5. Definitions. The following terms shall have the following meanings as
used herein:

        Beneficially Own. The terms "Beneficially Own" and "Beneficial Owner"
each has the meaning it is given in Article VII of the Charter as constituted on
the date hereof. For purposes of determining the percentage of outstanding
shares that any particular person (including the Fund) shall be deemed to
Beneficially Own at any particular time, the number of outstanding shares shall
be deemed equal to the number of shares then actually outstanding plus any
shares not then outstanding that the particular person shall be deemed to
Beneficially Own at that particular time.

        Charter. The term "Charter" means Holdco's Certificate of Incorporation.

        Common Share. The term "common share" means a share of common stock.

        Common Stock The term "common stock" means common stock issued or
issuable by Holdco.

        Holdco Licenses. The term "Holdco Licenses" designates and includes both
the Holdco Primary Licenses and any other licenses which shall have been granted
by the National Association to Holdco or to any subsidiary or affiliate of
Holdco and shall be in effect at the time

                                       9

<PAGE>

as of which the term shall be applied. In the event the Holdco Primary Licenses
shall terminate, such termination shall have the effect of terminating all other
Holdco Licenses and terminating the right of any Holdco subsidiary or affiliate
to use the Blue Cross or Blue Shield name and all other names or rights licensed
from the National Association.

        Holdco Primary Licenses. The term "Holdco Primary Licenses" means (i)
the license to use the Blue Cross name and all other rights granted under or by
reason of the Blue Cross License Agreement dated the date hereof between the
National Association and Holdco and under any amendments or supplements to, or
restatements or replacements of, that Agreement and (ii) the license to use the
Blue Shield name and all other rights granted under or by reason of the Blue
Shield License Agreement dated the date hereof between the National Association
and Holdco and under any amendments or supplements to, or restatements or
replacements of, that Agreement.

        Holdco Share. The term "Holdco share" designates and includes a share of
common stock or a share (or other basic unit) of any class, series or kind of
any other equity security which Holdco may at any time issue or be authorized to
issue.

      6. Miscellaneous

         6.1 Assignment. Holdco shall not assign its rights or obligations under
this Addendum to any other person without the prior written consent of the
National Association. The National Association shall have the right to assign
its rights under this Addendum to any corporation or other entity which shall
assume any of its responsibility for the Blue Cross or Blue Shield name or other
rights licensed under the Holdco Primary Licenses. This Addendum and the
provisions hereof shall be binding upon each of the parties, and their
successors and assigns, and shall inure to the benefit of each party's
successors and permitted assignees.

         6.2 Amendment. Any term or provision of this Addendum may be amended,
and the observance of any term of this Addendum may be waived (either generally
or in a particular instance and either retroactively or prospectively) only by a
writing signed by the party to be bound thereby. The failure of any party to
enforce any of the provisions hereof shall not be construed to be a waiver of
the right of such party thereafter to enforce such provisions. No oral
agreement, arrangement or understanding which might otherwise affect the rights
or obligations of any person under or by reason of this Addendum or any of the
Holdco Licenses shall be effective to change any of the rights or obligations
that would otherwise arise under or by reason of this Addendum or any of the
Holdco Licenses.

         6.3 Specific Enforcement. Each of the parties acknowledges that the
other party will be irreparably harmed and that there will be no adequate remedy
at law for a violation of any of the covenants of the other party set forth
herein. Therefore, it is agreed that, in addition to any other remedies that may
be available to either party to this Addendum in connection with any such
violation or prospective violation, such party shall have the right to enforce
such covenant by specific performance, by injunctive relief or by any other
means available to such party at law or in equity.

                                       10

<PAGE>

         6.4 Holdco Warranties. Holdco warrants to the National Association
that: (i) the New York Reorganization has become effective in New York on the
terms and with the effect described in the Plan of Conversion to a Stock
Accident and Health Insurance Company, dated September 26, 2002 (as amended, the
"Plan of Conversion"); (ii) the terms of Holdco's Charter, Holdco's Bylaws, the
Voting Trust Agreement and the Registration Rights Agreement between Holdco and
the Fund and the Fund's Articles of Incorporation and Bylaws, all as constituted
immediately after the New York Reorganization and as constituted at the time of
the execution and delivery of this Addendum are identical to the terms of such
documents attached to the Plan of Conversion cited in clause(ii) except for
those changes provided to the National Association in writing prior to the date
hereof; (iii) the Fund has executed and delivered the Voting Trust Agreement and
the Registration Rights Agreement; (iv) there are no agreements or
understandings that govern the rights or obligations of Holdco or the Fund with
respect to each other except those cited in clause (iii) or disclosed to the
National Association prior to the date hereof; (v) the Plan of Conversion and
other exhibits to the Plan of Conversion shall be in full force and effect; (vi)
on the date hereof and after giving effect to the consummation of the New York
Reorganization and the IPO, the Fund will Beneficially Own not more than 79% of
Holdco's outstanding common stock; (vii) on the date hereof and after giving
effect to the consummation of the New York Reorganization, Holdco has no
knowledge that any person other than the Fund Beneficially Owns more than 5% of
Holdco's outstanding common stock; (viii) on the date hereof and after giving
effect to the consummation of the New York Reorganization there are no Holdco
shares outstanding other than common stock and Holdco has no obligation to issue
any Holdco shares other than common stock (including the one share of Class B
common stock issued to the Fund pursuant to the Voting Trust Agreement); and
(ix) the Board of Directors of Holdco is on the date hereof composed exclusively
of the individuals previously identified to the National Association as the
individuals who will serve on such Board after completion of the Consummating
Merger; and (x) each of the Board of Directors of the Fund is on the date hereof
comprised exclusively of the individuals named on a list provided to the
National Association prior to the date hereof as the individuals who will serve
on such Board or Committee after completion of the Consummating Merger.

         6.5 Citations. The citations in this Addendum to provisions in Holdco's
Charter, Bylaws, and Voting Trust Agreement are to the versions of those
documents cited in clause (iii) of Section 6.4 and in the event the nomenclature
used in such document shall change, then the citation in this Addendum shall be
deemed to refer to the provision in that document having the same wording as the
provision in the original document cited in clause (iii) of Section 6.4 .

         6.6 Illinois Law Governs. The internal laws of the State of Illinois
(irrespective of its choice of law principles) shall govern all issues
concerning the validity of this Addendum, the construction of its terms, and the
interpretation and enforcement of the rights and duties of the parties.

         6.7 Each of the parties has executed this Addendum to evidence its
agreement to be bound by all of its terms.

                                       11

<PAGE>

         Each of the parties has executed this Addendum to evidence its
agreement to be bound by all of its terms.

                                        BLUE CROSS AND BLUE SHIELD ASSOCIATION

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        WELLCHOICE, INC.
                                        (a Delaware corporation identified
                                        herein as "Holdco")

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title

                                       12

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