Officer's Certificate, dated May 31, 2007



 Exhibit 4.1 
 OFFICER’S CERTIFICATE 
 The undersigned, Health Net, Inc., a Delaware corporation (the
“Company”), hereby certifies through Linda V. Tiano, its Senior Vice President, General Counsel and Secretary, pursuant to Sections 2.1, 2.3 and 11.5 of the Indenture, dated as of May 18, 2007 (the “Indenture”), by and
between the Company, as Issuer, and The Bank of New York Trust Company, N.A., a national banking association, as Trustee, as follows: 
 1.
The form and terms of the $100,000,000 aggregate principal amount of 6.375% Senior Notes due 2017 (the “Notes”), issued by the Company on the date set forth on the signature page hereto and as set forth on Annex A attached hereto,
have been established pursuant to Sections 2.1 and 2.3 of the Indenture and comply with the Indenture. 
 2. The undersigned has read the
Indenture. 
 3. The statements made in this certificate are based upon an examination of the Notes under the Indenture, upon an examination
of and familiarity with the Indenture, upon my general knowledge of and familiarity with the operations of the Company and upon the performance of my duties as an officer of the Company. 
 4. In the opinion of the undersigned, she has made such examination or investigation as is necessary to enable her to express an informed opinion as to
whether or not the covenants and conditions provided for in the Indenture have been complied with. 
 5. In the opinion of the undersigned,
with respect to the foregoing, the covenants and conditions provided for in the Indenture have been complied with. 
 Capitalized terms used
herein without definition have the meanings assigned to them in the Indenture. 







 IN WITNESS WHEREOF, the undersigned has caused this certificate to be executed by its duly authorized
officer as of this 31st day of May, 2007. 
  

			
	HEALTH NET, INC.
		
	By:	 	 /s/ Linda V. Tiano

	Name:	 	Linda V. Tiano
	Title:	 	Senior Vice President, General Counsel and Secretary


 [Signature Page to Officer’s Certificate under the Indenture] 







 ANNEX A 
 Pursuant to Section 2.3 of the Indenture, dated as of May 18, 2007 (the “Indenture”), between Health Net, Inc. (the “Issuer”) and The Bank of New York Trust Company, N.A., a national
banking association, as trustee (the “Trustee”), the terms of a series of securities to be issued pursuant to the Indenture are as follows: 
  

	 	1.	Designation. The designation of the securities is “6.375% Senior Notes due 2017” (the “Notes”), and the CUSIP number assigned thereto is 422248 AA2.


  

	 	2.	Initial Aggregate Principal Amount. The Notes shall be limited in initial aggregate principal amount to $400,000,000 (except for Notes authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Section 2.8, 2.9, 2.11, 8.5 or 12.3 of the Indenture). The $400,000,000 aggregate principal amount of the Notes shall be represented by Note No. 1, which
shall be limited to an initial aggregate principal amount of $300,000,000, and Note No. 2, which shall be limited to an initial aggregate principal amount of $100,000,000. Pursuant to Section 2.3 of the Indenture, the $100,000,000 aggregate
principal amount of the Notes will be consolidated with, and will constitute the same series as, the $300,000,000 aggregate principal amount of the Notes. 

  


	 	3.	Currency Denomination. The Notes shall be denominated in Dollars. 

  

	 	4.	Maturity. The date on which the principal of the Notes is payable is June 1, 2017. 

  

	 	5.	Rate of Interest; Interest Payment Dates; Regular Record Dates. Each Note shall bear interest from May 18, 2007 at 6.375% per annum until the principal thereof is
paid. Such interest shall be payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2007, to the persons in whose names the Notes are registered at the close of business on the immediately
preceding May 15 and November 15, respectively. Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from May 18, 2007. Interest on the Notes shall be computed
on the basis of a 360-day year comprised of twelve 30-day months. In the event that any date on which principal, premium, if any, or interest is payable on the Notes is not a Business Day, then payment of the principal, premium, if any, or interest
payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay). 

  

	 	6.	 Place of Payment. Principal of, premium, if any, and interest on the Notes shall be payable, and the transfer of the Notes shall be registrable, at the
office or agency of the Issuer to be maintained for such purpose in the Borough of Manhattan, The City of New York, except that, at the option of the Issuer, interest may be paid by mailing a check to the address of the person entitled thereto as it
appears on the Notes register; provided, however, that while any Notes are represented by a Registered Global Security, payment of principal of, premium, if any, or interest on the Notes 



  

 A-1 









	 	 
may be made by wire transfer to the account of the Depositary or its nominee. 


  

	 	7.	Optional Redemption. The Notes may be redeemed, in whole at any time or in part from time to time, at the option of the Issuer at a redemption price equal to the greater of
(i) 100% of their principal amount and (ii) an amount equal to the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the
date of redemption), discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 30 basis points, plus, in each case, accrued and unpaid interest thereon to the
date of redemption. The Treasury Rate will be calculated on the third business day preceding the redemption date. Notwithstanding the foregoing, installments of interest on Notes that are due and payable on interest payment dates falling on or prior
to a redemption date will be payable on the interest payment date to the registered holders as of the close of business on the relevant record date according to the Notes and the Indenture. Holders of the Notes to be redeemed will receive notice
thereof at least 30 and not more than 60 days prior to the date fixed for redemption. Unless the Issuer defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the Notes or portions thereof
called for redemption. If less than all of the Notes are to be redeemed, the Notes to be redeemed will be selected by the Trustee on a pro rata basis or by any other method the Trustee deems to be fair and appropriate in its sole discretion.


 “Comparable Treasury Issue” means the United States Treasury security selected by the Independent Investment
Banker as having a maturity comparable to the remaining term (“Remaining Life”) of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the Notes. 
 “Comparable Treasury Price” means, with
respect to any redemption date, (i) the average of five Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (ii) if the Independent
Investment Banker obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations. 
 “Independent
Investment Banker” means J.P. Morgan Securities Inc., Banc of America Securities LLC or Citigroup Global Markets Inc., as selected by the Issuer or, if such firms are unwilling or unable to select the applicable Comparable Treasury Issue, an
independent investment banking institution of national standing appointed by the Issuer. 
  

 A-2 








 “Reference Treasury Dealer” means (i) J.P. Morgan Securities Inc., Banc of America
Securities LLC or Citigroup Global Markets Inc. and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”),
the Issuer shall substitute therefor another Primary Treasury Dealer; and (ii) any other two Primary Treasury Dealers selected by the Issuer after consultation with the Independent Investment Banker. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as
determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by that Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding such redemption date. 
 “Treasury Rate”
means, with respect to any redemption date: 
  

	 	•	 	 the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release
designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity
under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the Remaining Life (as defined above), yields for the two published
maturities most closely corresponding to the Comparable Treasury Issue will be determined and the treasury rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or



  

	 	•	 	 if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal
to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such
redemption date 


  

	 	8.	 Change of Control. If a Change of Control Triggering Event occurs, unless the Issuer has exercised its right to redeem the Notes as described above, holders
of the Notes will have the right to require the Issuer to 



  

 A-3 









	 	 
repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of their Notes pursuant to the offer described below (the
“Change of Control Offer”). In the Change of Control Offer, the Issuer will be required to offer payment in cash equal to 101% of the aggregate principal amount of Notes repurchased plus accrued and unpaid interest, if any, on the Notes
repurchased, to the date of purchase (the “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event, the Issuer will be required to mail a notice to holders of the Notes describing the transaction or
transactions that constitute the Change of Control Triggering Event and offering to repurchase the Notes on the date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed
(the “Change of Control Payment Date”), pursuant to the procedures described herein and in such notice. The Issuer must comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict
with the Change of Control provisions herein, the Issuer will be required to comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Triggering Event provisions
herein by virtue of such conflicts. 


 On the Change of Control Payment Date, the Issuer will be required, to the extent
lawful, to (i) accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of Control Offer; (ii) deposit with the paying agent an amount equal to the Change of Control Payment in respect of all Notes or
portions of Notes properly tendered; and (iii) deliver or cause to be delivered to the Trustee for cancellation the Notes properly accepted together with an Officer’s Certificate stating the aggregate principal amount of Notes or portions
of Notes being purchased. 
 “Below Investment Grade Rating Event” means the Notes are rated below an Investment Grade Rating by
any two of the Rating Agencies (as defined below) on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of the Change of
Control (which 60-day period shall be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by any two of the Rating Agencies). 
 “Change of Control” means the occurrence of any of the following: (1) the direct or indirect sale, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the 

  

 A-4 








 
Issuer and its Subsidiaries taken as a whole to any Person other than the Issuer or one of its Subsidiaries; (2) the consummation of any transaction
(including, without limitation, any merger or consolidation) the result of which is that any Person becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding number of shares of the Issuer’s voting stock; or
(3) the first day on which a majority of the members of the Issuer’s Board of Directors are not Continuing Directors. Notwithstanding the foregoing, a transaction will not be deemed to be involve a Change of Control if (i) the Issuer
becomes a wholly owned subsidiary of a holding company and (ii) the holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of the Issuer’s voting stock
immediately prior to that transaction. 
 “Change of Control Triggering Event” means the occurrence of both a Change of Control and
a Below Investment Grade Rating Event. 
 “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Issuer who (1) was a member of such Board of Directors on the date of original issue of this Security; or (2) was nominated for election or elected to such Board of Directors with the approval of a majority of the
Continuing Directors who were members of such Board of Directors at the time of such nomination or election (either by a specific vote or by approval of the Issuer’s proxy statement in which such member was named as a nominee for election as a
director, without objection to such nomination). 
 “Fitch” means Fitch, Inc. 
 “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by
S&P and Fitch. 
 “Moody’s” means Moody’s Investors Service, Inc. 
 “Person”, solely for purposes of the definition of “Change of Control”, has the meaning set forth in the Indenture and includes a
“person” as used in Section 13(d)(3) of the Exchange Act. 
 “Rating Agencies” means (1) each of Moody’s,
S&P and Fitch; and (2) if any of Moody’s, S&P or Fitch ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of our control, a “nationally recognized statistical rating
organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Issuer (as certified by a Board Resolution) as a replacement agency for Moody’s, S&P or Fitch, as the case may be. 
  

 A-5 








 “S&P” means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc. 
  

	 	9.	Mandatory Redemption. The Notes are not mandatorily redeemable and are not entitled to the benefit of a sinking fund or any analogous provisions. 

  

	 	10.	Denominations. The Notes shall be issued initially in minimum denominations of $2,000 and shall be issued in integral multiples of $1,000 in excess thereof.


  

	 	11.	Amount Payable Upon Acceleration. The principal of the Notes shall be payable upon declaration of acceleration pursuant to Section 5.1 of the Indenture.


  

	 	12.	Payment Currency. Principal and interest on the Notes shall be payable in Dollars. 

  

	 	13.	Payment Currency - Election. The principal of and interest on the Notes shall not be payable in a currency other than Dollars. 

  

	 	14.	Payment Currency - Index. The principal of and interest on the Notes shall not be determined with reference to an index based on a coin or currency. 


 

	 	15.	Registered Securities. The Notes shall be issued only as Registered Securities. The Notes shall be issuable as Registered Global Securities. 

  

	 	16.	Additional Amounts. The Issuer shall not pay additional amounts on the Notes held by a Person that is not a U.S. Person in respect of taxes or similar charges withheld or
deducted. 

  

	 	17.	Definitive Certificates. Section 2.8 of the Indenture will govern the transferability of the Notes in definitive form. 

  

	 	18.	Registrar; Paying Agent; Depositary. The Trustee shall initially serve as the registrar and the paying agent for the Notes. The Depository Trust Company shall initially serve
as the Depositary for the Registered Global Security representing the Notes. 

  

	 	19.	Events of Default; Covenants. There shall be no deletions from or modifications or additions to the Events of Default set forth in Section 5.1 of the Indenture with
respect to the Notes. There shall be the following additions to the covenants of the Issuer set forth in Article III of the Indenture with respect to the Notes: 

  

 A-6 








 Limitation on Liens. The Issuer covenants that, so long as any of the Notes remain outstanding,
it shall not, nor shall it permit any Consolidated Subsidiary to, create or assume any indebtedness for money borrowed which is secured by a mortgage, pledge, security interest or lien (“liens”) of or upon any assets, whether now owned or
hereafter acquired, of the Issuer or any such Consolidated Subsidiary without equally and ratably securing the Notes by a lien ranking ratably with and equal to (or at the option of the Issuer, senior to) such secured indebtedness, except that the
foregoing restriction shall not apply to (a) liens on any assets of any corporation existing at the time such corporation becomes a Consolidated Subsidiary; (b) liens on any assets existing at the time of acquisition of such assets by the
Issuer or a Consolidated Subsidiary, or liens to secure the payment of all or any part of the purchase price of such assets upon the acquisition of such assets by the Issuer or a Consolidated Subsidiary or to secure any indebtedness incurred or
guaranteed by the Issuer or a Consolidated Subsidiary prior to, at the time of, or within 360 days after such acquisition (or in the case of real property, the completion of construction (including any improvements on an existing asset) or
commencement of full operation of such asset, whichever is later), which indebtedness is incurred or guaranteed for the purpose of financing all or any part of the purchase price thereof or, in the case of real property, construction or improvements
thereon; provided, however, that in the case of any such acquisition, construction or improvement, the lien shall not apply to any assets theretofore owned by the Issuer or a Consolidated Subsidiary, other than, in the case of any such construction
or improvement, any real property on which the property so constructed, or the improvement, is located, or to secure the payment of the purchase price of such assets, or to secure indebtedness incurred or guaranteed by the Issuer or a Consolidated
Subsidiary for the purpose of financing the purchase price of such assets or improvements or construction thereon, which indebtedness is incurred or guaranteed prior to, at the time of or within 360 days after such acquisition (or in the case of
real property, completion of such improvement or construction or commencement of full operation of such property, whichever is later); (c) liens on any assets securing indebtedness owed by any Consolidated Subsidiary to the Issuer or another
wholly owned Subsidiary; (d) liens on any assets of a corporation existing at the time such corporation is merged into or consolidated with the Issuer or a Subsidiary or at the time of a purchase, lease or other acquisition of the assets of a
corporation or firm as an entirety or substantially as an entirety by the Issuer or a Subsidiary; (e) liens on any assets of the Issuer or a Consolidated Subsidiary in favor of the United States of America or any state thereof, or any
department, agency or instrumentality or political subdivision of the United States of America or any State thereof, or in favor of any other country, or any political subdivision thereof, to secure partial, progress, advance or other 

  

 A-7 








 
payments pursuant to any contract or statute or to secure any indebtedness incurred or guaranteed for the purpose of financing all or any part of the
purchase price (or, in the case of real property, the cost of construction) of the assets subject to such liens (including, but not limited to, liens incurred in connection with pollution control, industrial revenue or similar financing);
(f) any extension, renewal or replacement (or successive extensions, renewals or replacements), in whole or in part, of any lien referred to in the foregoing clauses (a) to (e), inclusive; provided, however, that the principal amount of
indebtedness secured thereby shall not exceed the principal amount of indebtedness so secured at the time of such extension, renewal or replacement, and that such extension, renewal or replacement shall be limited to all or a part of the assets
which secured the lien so extended, renewed or replaced (plus improvements and construction on such real property); (g) liens imposed by law, such as mechanics’, workmen’s, repairmen’s, materialmen’s, carriers’,
warehousemen’s, vendors’ or other similar liens arising in the ordinary course of business, or governmental (federal, state or municipal) liens arising out of contracts for the sale of products or services by the Issuer or any Consolidated
Subsidiary, or deposits or pledges to obtain the release of any of the foregoing liens; (h) pledges, liens or deposits under worker’s compensation laws or similar legislation and liens or judgments thereunder which are not currently
dischargeable, or in connection with bids, tenders, contracts (other than for the payment of money) or leases to which the Issuer or any Consolidated Subsidiary is a party, or to secure public or statutory obligations of the Issuer or any
Consolidated Subsidiary, or in connection with obtaining or maintaining self-insurance or to obtain the benefits of any law, regulation or arrangement pertaining to unemployment insurance, old age pensions, social security or similar matters, or to
secure surety, appeal or customs bonds to which the Issuer or any Consolidated Subsidiary is a party, or in litigation or other proceedings such as, but not limited to, interpleader proceedings, and other similar pledges, liens or deposits made or
incurred in the ordinary course of business; (i) liens created by or resulting from any litigation or other proceeding which is being contested in good faith by appropriate proceedings, including liens arising out of judgements or awards
against the Issuer or any Consolidated Subsidiary with respect to which the Issuer or such Consolidated Subsidiary is in good faith prosecuting an appeal or proceedings for review or for which the time to make an appeal has not yet expired; or final
unappealable judgment liens which are satisfied within 15 days of the date of judgment; or liens incurred by the Issuer or any Consolidated Subsidiary for the purpose of obtaining a stay or discharge in the course of any litigation or other
proceeding to which the Issuer or such Consolidated Subsidiary is a party; (j) liens for taxes or assessments or governmental charges or levies not yet due or delinquent, or which can thereafter be paid without penalty, or which are being
contested in good faith by appropriate proceedings; landlord’s liens on property held under 

  

 A-8 








 
lease; and any other liens or charges incidental to the conduct of the business of the Issuer or any Consolidated Subsidiary or the ownership of the assets
of any of them which were not incurred in connection with the borrowing of money or the obtaining of advances or credit and which do not, in the opinion of the Issuer, materially impair the use of such assets in the operation of the business of the
Issuer or such Consolidated Subsidiary or the value of such assets for the purposes thereof; or (k) liens relating to accounts receivable of the Issuer or any of its Subsidiaries which have been sold, assigned or otherwise transferred to
another Person in a transaction classified as a sale of accounts receivable in accordance with generally accepted accounting principles (to the extent the sale by the Issuer or the applicable Subsidiary is deemed to give rise to a lien in favor of
the purchaser thereof in such accounts receivable or the proceeds thereof). Notwithstanding the above, the Issuer or any Consolidated Subsidiary may, without securing the Notes, create or assume any Indebtedness which is secured by a lien which
would otherwise be subject to the foregoing restrictions, provided that at the time of such creation or assumption, after giving effect thereto, Exempted Debt does not exceed 10% of the total assets of the Issuer and its Subsidiaries on a
consolidated basis, determined in accordance with generally accepted accounting principles. 
 The term “Attributable Debt” in
connection with a sale and lease-back transaction shall mean, as of the date of determination, the lesser of (a) the fair value of the assets subject to such transaction, as determined by the Issuer’s Board of Directors, or (b) the
present value of the obligations of the lessee for net rental payments during the term of any lease or, if not practicable to determine such rate, the weighted average interest rate per annum borne by the Notes outstanding pursuant to the
Indenture, compounded semi-annually in either case as determined by the principal accounting or financial officer of the Issuer. 
 The term
“Consolidated Subsidiary” shall mean any Subsidiary substantially all the property of which is located, and substantially all the operations of which are conducted, in the United States of America whose financial statements are
consolidated with those of the Issuer in accordance with generally accepted accounting principles. 
 The term “Exempted Debt”
shall mean the sum of the following as of the date of determination: (i) Indebtedness of the Issuer and its Consolidated Subsidiaries incurred after the date of issuance of the Notes and secured by liens not permitted to be created or assumed
pursuant to the covenant with respect to “Limitation on Liens” above, and (ii) Attributable Debt of the Issuer and its Consolidated Subsidiaries in respect of every sale and lease-back transaction entered into after the date of
issuance of the Notes. 
  

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 The term “Indebtedness” shall mean all items classified as indebtedness on the then most
recently available consolidated balance sheet of the Issuer and its Consolidated Subsidiaries, in accordance with generally accepted accounting principles. 
 The term “net rental payments” under any lease of any period shall mean the sum of the rental and other payments required to be paid in such period by the lessee thereunder, not including, however, any
amounts required to be paid by such lessee (whether or not designated as rental or additional rental) on account of maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges required to be paid by such
lessee thereunder or any amounts required to be paid by such lessee thereunder contingent upon the amount of sales, maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges. 
 The term “Subsidiary”, solely with respect to the covenant with respect to “Limitation on Liens” above, shall mean any corporation of
which at least a majority of the outstanding stock having voting power under ordinary circumstances for the election of the board of directors of such corporation shall at the time be owned by the Issuer or by the Issuer and one or more Subsidiaries
or by one or more Subsidiaries. 
  

	 	20.	Conversion and Exchange. The Notes shall not be convertible into or exchangeable into any other security. 

  

	 	21.	Further Issues. The Issuer may, without notice to or the consent of the holders of the Notes, create and issue further notes ranking equally and ratably with the Notes in all
respects, or in all respects except for the payment of interest accruing prior to the issue date of such further notes. Such further notes shall be consolidated and form a single series with the Notes and shall have the same terms as to status,
redemption or otherwise as the Notes. 

  

	 	22.	Other Terms. The Notes shall have the other terms and shall be substantially in the form set forth in the form of the Notes attached hereto as Annex A-1. In case of any
conflict between this Annex A and the Notes, the form of the Notes shall control. 

 Capitalized terms used but not otherwise
defined in this Annex A shall have the respective meanings ascribed to such terms in the Indenture. 
  

 A-10 








 ANNEX A-1 
 [FORM OF NOTE] 
 [See Attached] 








			
	REGISTERED	  	REGISTERED

 THIS NOTE IS A REGISTERED GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. TRANSFERS OF THIS REGISTERED GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS
IN WHOLE, BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY TRUST COMPANY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE. 
  

			
	No. 2	  	CUSIP NO. 422248 AA2

 HEALTH NET, INC. 
 6.375% SENIOR NOTES DUE 2017 
 Health Net, Inc., a Delaware corporation (the
“Issuer,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to, Cede & Co., or registered assigns, the principal sum of One Hundred Million
Dollars ($100,000,000) on June 1, 2017 and to pay interest on said principal sum from May 18, 2007, or from the most recent interest payment date to which interest has been paid or duly provided for, semi-annually in arrears on June 1
and December 1 (each such date, an “Interest Payment Date”) of each year commencing on December 1, 2007, at the rate of 6.375% per annum until the principal hereof shall have become due and payable. 
 The amount of interest payable on any Interest Payment Date shall be computed on the basis of a 360-day year comprised of twelve 30-day months. In the
event that any date on which the principal or interest payable on this Note is not a Business Day, then payment of principal or interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or
other payment in respect of such delay). The interest installment so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture (referred to on the reverse hereof) be paid to the person in
whose name this Note is registered at the close of business on the record date for such interest installment, which shall be the close of business on the immediately preceding May 15 and November 15 prior to such Interest Payment Date, as
applicable. Any such interest installment not punctually paid or duly provided for shall forthwith cease to be payable to the registered holders on such record date and may be paid to the person in whose name this Note is registered at the close of
business on a subsequent record date (which shall be not less than five Business Days prior to the date of payment of such defaulted interest), notice whereof shall be given by mail by or on behalf of the Issuer to the registered holders of Notes
not less than 15 days preceding such subsequent record date, all as more fully provided in the Indenture. The principal of and the interest on this Note shall be payable at the office or agency of the Issuer maintained for that purpose in any coin
or currency of the United States of America that at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of interest may be made at the option of the Issuer by 








 
check mailed to the person entitled thereto at such address as shall appear in the registry books of the Issuer; provided, further that for so long as
this Note is represented by a Registered Global Security, payment of principal, premium, if any, or interest on this Note may be made by wire transfer to the account of the Depositary or its nominee. 
 Unless the certificate of authentication hereon has been executed by or on behalf of the Trustee (as defined below) under the Indenture (as defined
below), by the manual signature of one of its authorized officers, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 Capitalized terms used in this Note which are defined in the Indenture shall have the respective meanings assigned to them in the Indenture. 

The provisions of this Note are continued on the reverse side hereof and such continued provisions shall for all purposes have the same effect as
though fully set forth at this place. 







 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed, manually or in facsimile,
and an imprint or facsimile of its corporate seal to be imprinted hereon. 
  

					
	 HEALTH NET, INC.
	 	
			
	By:	 	  
	 	
	Name:	 	Linda V. Tiano	 	
	Title:	 	Senior Vice President, General Counsel and Secretary	 	


  

					
	Attest:	 	
			
	By:	 	  
	 	
	Name:	 		 	
	Title:	 		 	
	
	CERTIFICATE OF AUTHENTICATION
	 This is one of the Securities
 referred to in
the within-mentioned
 Indenture.

	
	 THE BANK OF NEW YORK TRUST COMPANY, N.A.
 as Trustee

			
	By:	 	  
	 	
		 	Authorized Signatory	 	
			
	Dated:	 	  
	 	








 [REVERSE SIDE OF NOTE] 
 This Note is one of a duly authorized series of securities (the “Securities”) of the Issuer designated as its 6.375% Senior Notes due 2017 (the
“Notes”). The Securities are all issued or to be issued under and pursuant to an Indenture, dated as of May 18, 2007 (the “Indenture”), duly executed and delivered between the Issuer and The Bank of New York Trust Company,
N.A., a national banking association (the “Trustee,” which term includes any successor Trustee with respect to the Securities under the Indenture), to which the Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights thereunder of the Issuer, the Trustee and the holders of the Securities and the terms upon which the Notes are to be authenticated and delivered. The terms of individual series of Securities may vary with respect
to interest rate or interest rate formulas, issue dates, maturity, redemption, repayment, currency of payment and otherwise. 
 The Notes are
issuable only as Registered Securities in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, the Notes are exchangeable for a like
aggregate principal amount of Notes as requested by the holder surrendering the same. 
 Except as set forth below, this Note is not
redeemable and is not entitled to the benefit of a sinking fund or any analogous provision. 
 The Notes may be redeemed, in whole at any
time or in part from time to time, at the option of the Issuer at a redemption price equal to the greater of (i) 100% of their principal amount and (ii) an amount equal to the sum of the present values of the remaining scheduled payments
of principal and interest thereon (not including any portion of such payments of interest accrued and unpaid as of the date of redemption), discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Treasury Rate plus 30 basis points, plus, in each case, accrued interest thereon to the date of redemption. Notwithstanding the foregoing, installments of interest on the Notes that are due and payable on interest payment dates
falling on or prior to a redemption date will be payable on the interest payment date to the registered holders as of the close of business on the relevant record date. Holders of the Notes to be redeemed will receive notice thereof at least 30 and
not more than 60 days prior to the date fixed for redemption. Unless the Issuer defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the Notes or portions thereof called for redemption. If
less than all of the Notes are to be redeemed, the Notes to be redeemed will be selected by the Trustee on a pro rata basis or by any other method the Trustee deems to be fair and appropriate in its sole discretion. 
 “Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity
comparable to the remaining term (“Remaining Life”) of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Notes. 
 “Comparable Treasury Price” means, with respect to any redemption date,
(i) the average of five Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than
five such Reference Treasury Dealer Quotations, the average of all such quotations. 
 “Independent Investment Banker” means J.P.
Morgan Securities Inc., Banc of America Securities LLC or Citigroup Global Markets Inc., as selected by the Issuer or, if such firms are unwilling 

  

 1 








 
or unable to select the applicable Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Issuer.

 “Reference Treasury Dealer” means (i) J.P. Morgan Securities Inc., Banc of America Securities LLC or Citigroup Global
Markets Inc. and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Issuer shall substitute
therefor another Primary Treasury Dealer; and (ii) any other two Primary Treasury Dealers selected by the Issuer after consultation with the Independent Investment Banker. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as
determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by that Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding such redemption date. 
 “Treasury Rate”
means, with respect to any redemption date: 
  

	 	•	 	 the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release
designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity
under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the Remaining Life (as defined above), yields for the two published
maturities most closely corresponding to the Comparable Treasury Issue will be determined and the treasury rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or



  

	 	•	 	 if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per
annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price
for such redemption date. 


 If a Change of Control Triggering Event occurs, unless the Issuer has exercised its right to
redeem the Notes as described above, holders of the Notes will have the right to require the Issuer to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of their Notes pursuant to the offer described
below (the “Change of Control Offer”). In the Change of Control Offer, the Issuer will be required to offer payment in cash equal to 101% of the aggregate principal amount of Notes repurchased plus accrued and unpaid interest, if any, on
the Notes repurchased, to the date of purchase (the “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event, the Issuer will be required to mail a notice to holders of the Notes describing the
transaction or transactions that constitute the Change of Control Triggering Event and offering to repurchase the Notes on the date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such
notice is mailed (the “Change of Control Payment Date”), pursuant to the procedures described herein and in such notice. The Issuer must comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and
regulations 


 2 








 
thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control
Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control provisions herein, the Issuer will be required to comply with the applicable securities laws and regulations and will not
be deemed to have breached its obligations under the Change of Control Triggering Event provisions herein by virtue of such conflicts. 
 On
the Change of Control Payment Date, the Issuer will be required, to the extent lawful, to (i) accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of Control Offer; (ii) deposit with the paying agent
an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered; and (iii) deliver or cause to be delivered to the Trustee for cancellation the Notes properly accepted together with an
Officer’s Certificate stating the aggregate principal amount of Notes or portions of Notes being purchased. 
 “Below Investment
Grade Rating Event” means the Notes are rated below an Investment Grade Rating by any two of the Rating Agencies (as defined below) on any date from the date of the public notice of an arrangement that could result in a Change of Control until
the end of the 60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by any two of
the Rating Agencies). 
 “Change of Control” means the occurrence of any of the following: (1) the direct or indirect sale,
transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Issuer and its Subsidiaries taken as a whole to any
Person other than the Issuer or one of its Subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any Person becomes the beneficial owner, directly or
indirectly, of more than 50% of the then outstanding number of shares of the Issuer’s voting stock; or (3) the first day on which a majority of the members of the Issuer’s Board of Directors are not Continuing Directors.
Notwithstanding the foregoing, a transaction will not be deemed to be involve a Change of Control if (i) the Issuer becomes a wholly owned subsidiary of a holding company and (ii) the holders of the voting stock of such holding company
immediately following that transaction are substantially the same as the holders of the Issuer’s voting stock immediately prior to that transaction. 
 “Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event. 
 “Continuing Directors” means, as of any date of determination, any member of the Board of Directors of the Issuer who (1) was a member of such Board of Directors on the date of original issue of this
Security; or (2) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election (either by a
specific vote or by approval of the Issuer’s proxy statement in which such member was named as a nominee for election as a director, without objection to such nomination). 
 “Fitch” means Fitch, Inc. 
 “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P and Fitch. 
 “Moody’s” means Moody’s Investors Service, Inc. 
  

 3 








 “Person”, solely for purposes of the definition of “Change of Control”, has the
meaning set forth in the Indenture and includes a “person” as used in Section 13(d)(3) of the Exchange Act. 
 “Rating
Agencies” means (1) each of Moody’s, S&P and Fitch; and (2) if any of Moody’s, S&P or Fitch ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of our control, a
“nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Issuer (as certified by a Board Resolution) as a replacement agency for Moody’s, S&P or
Fitch, as the case may be. 
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. 
 If an Event of Default with respect to the Notes shall occur and be continuing, the principal of all the Notes, and any
accrued interest, may be declared due and payable in the manner and with the effect provided in the Indenture. 
 There shall be no deletions
from or modifications or additions to the Events of Default set forth in Section 5.1 of the Indenture with respect to the Notes. There shall be the following additions to the covenants of the Issuer set forth in Article III of the Indenture
with respect to the Notes: 
 Limitation on Liens. The Issuer covenants that, so long as any of the Notes remain outstanding, it shall
not, nor shall it permit any Consolidated Subsidiary to, create or assume any indebtedness for money borrowed which is secured by a mortgage, pledge, security interest or lien (“liens”) of or upon any assets, whether now owned or hereafter
acquired, of the Issuer or any such Consolidated Subsidiary without equally and ratably securing the Notes by a lien ranking ratably with and equal to (or at the option of the Issuer, senior to) such secured indebtedness, except that the foregoing
restriction shall not apply to (a) liens on any assets of any corporation existing at the time such corporation becomes a Consolidated Subsidiary; (b) liens on any assets existing at the time of acquisition of such assets by the Issuer or
a Consolidated Subsidiary, or liens to secure the payment of all or any part of the purchase price of such assets upon the acquisition of such assets by the Issuer or a Consolidated Subsidiary or to secure any indebtedness incurred or guaranteed by
the Issuer or a Consolidated Subsidiary prior to, at the time of, or within 360 days after such acquisition (or in the case of real property, the completion of construction (including any improvements on an existing asset) or commencement of full
operation of such asset, whichever is later), which indebtedness is incurred or guaranteed for the purpose of financing all or any part of the purchase price thereof or, in the case of real property, construction or improvements thereon; provided,
however, that in the case of any such acquisition, construction or improvement, the lien shall not apply to any assets theretofore owned by the Issuer or a Consolidated Subsidiary, other than, in the case of any such construction or improvement, any
real property on which the property so constructed, or the improvement, is located, or to secure the payment of the purchase price of such assets, or to secure indebtedness incurred or guaranteed by the Issuer or a Consolidated Subsidiary for the
purpose of financing the purchase price of such assets or improvements or construction thereon, which indebtedness is incurred or guaranteed prior to, at the time of or within 360 days after such acquisition (or in the case of real property,
completion of such improvement or construction or commencement of full operation of such property, whichever is later); (c) liens on any assets securing indebtedness owed by any Consolidated Subsidiary to the Issuer or another wholly owned
Subsidiary; (d) liens on any assets of a corporation existing at the time such corporation is merged into or consolidated with the Issuer or a Subsidiary or at the time of a purchase, lease or other acquisition of the assets of a corporation or
firm as an entirety or substantially as an entirety by the Issuer or a Subsidiary; (e) liens on any assets of the Issuer or a Consolidated Subsidiary in favor of the United States of America or any state thereof, or any department, agency or
instrumentality 

  

 4 








 
or political subdivision of the United States of America or any State thereof, or in favor of any other country, or any political subdivision thereof, to
secure partial, progress, advance or other payments pursuant to any contract or statute or to secure any indebtedness incurred or guaranteed for the purpose of financing all or any part of the purchase price (or, in the case of real property, the
cost of construction) of the assets subject to such liens (including, but not limited to, liens incurred in connection with pollution control, industrial revenue or similar financing); (f) any extension, renewal or replacement (or successive
extensions, renewals or replacements), in whole or in part, of any lien referred to in the foregoing clauses (a) to (e), inclusive; provided, however, that the principal amount of indebtedness secured thereby shall not exceed the principal
amount of indebtedness so secured at the time of such extension, renewal or replacement, and that such extension, renewal or replacement shall be limited to all or a part of the assets which secured the lien so extended, renewed or replaced (plus
improvements and construction on such real property); (g) liens imposed by law, such as mechanics’, workmen’s, repairmen’s, materialmen’s, carriers’, warehousemen’s, vendors’ or other similar liens arising in
the ordinary course of business, or governmental (federal, state or municipal) liens arising out of contracts for the sale of products or services by the Issuer or any Consolidated Subsidiary, or deposits or pledges to obtain the release of any of
the foregoing liens; (h) pledges, liens or deposits under worker’s compensation laws or similar legislation and liens or judgments thereunder which are not currently dischargeable, or in connection with bids, tenders, contracts (other than
for the payment of money) or leases to which the Issuer or any Consolidated Subsidiary is a party, or to secure public or statutory obligations of the Issuer or any Consolidated Subsidiary, or in connection with obtaining or maintaining
self-insurance or to obtain the benefits of any law, regulation or arrangement pertaining to unemployment insurance, old age pensions, social security or similar matters, or to secure surety, appeal or customs bonds to which the Issuer or any
Consolidated Subsidiary is a party, or in litigation or other proceedings such as, but not limited to, interpleader proceedings, and other similar pledges, liens or deposits made or incurred in the ordinary course of business; (i) liens created
by or resulting from any litigation or other proceeding which is being contested in good faith by appropriate proceedings, including liens arising out of judgements or awards against the Issuer or any Consolidated Subsidiary with respect to which
the Issuer or such Consolidated Subsidiary is in good faith prosecuting an appeal or proceedings for review or for which the time to make an appeal has not yet expired; or final unappealable judgment liens which are satisfied within 15 days of the
date of judgment; or liens incurred by the Issuer or any Consolidated Subsidiary for the purpose of obtaining a stay or discharge in the course of any litigation or other proceeding to which the Issuer or such Consolidated Subsidiary is a party;
(j) liens for taxes or assessments or governmental charges or levies not yet due or delinquent, or which can thereafter be paid without penalty, or which are being contested in good faith by appropriate proceedings; landlord’s liens on
property held under lease; and any other liens or charges incidental to the conduct of the business of the Issuer or any Consolidated Subsidiary or the ownership of the assets of any of them which were not incurred in connection with the borrowing
of money or the obtaining of advances or credit and which do not, in the opinion of the Issuer, materially impair the use of such assets in the operation of the business of the Issuer or such Consolidated Subsidiary or the value of such assets for
the purposes thereof; or (k) liens relating to accounts receivable of the Issuer or any of its Subsidiaries which have been sold, assigned or otherwise transferred to another Person in a transaction classified as a sale of accounts receivable
in accordance with generally accepted accounting principles (to the extent the sale by the Issuer or the applicable Subsidiary is deemed to give rise to a lien in favor of the purchaser thereof in such accounts receivable or the proceeds thereof).
Notwithstanding the above, the Issuer or any Consolidated Subsidiary may, without securing the Notes, create or assume any Indebtedness which is secured by a lien which would otherwise be subject to the foregoing restrictions, provided that at the
time of such creation or assumption, after giving effect thereto, Exempted Debt does not exceed 10% of the total assets of the Issuer and its Subsidiaries on a consolidated basis, determined in accordance with generally accepted accounting
principles. 
  

 5 








 The term “Attributable Debt” in connection with a sale and lease-back transaction shall mean,
as of the date of determination, the lesser of (a) the fair value of the assets subject to such transaction, as determined by the Issuer’s Board of Directors, or (b) the present value of the obligations of the lessee for net rental
payments during the term of any lease or, if not practicable to determine such rate, the weighted average interest rate per annum borne by the Notes outstanding pursuant to the Indenture, compounded semi-annually in either case as determined by the
principal accounting or financial officer of the Issuer. 
 The term “Consolidated Subsidiary” shall mean any Subsidiary
substantially all the property of which is located, and substantially all the operations of which are conducted, in the United States of America whose financial statements are consolidated with those of the Issuer in accordance with generally
accepted accounting principles. 
 The term “Exempted Debt” shall mean the sum of the following as of the date of determination:
(i) Indebtedness of the Issuer and its Consolidated Subsidiaries incurred after the date of issuance of the Notes and secured by liens not permitted to be created or assumed pursuant to the covenant with respect to “Limitation on
Liens” above, and (ii) Attributable Debt of the Issuer and its Consolidated Subsidiaries in respect of every sale and lease-back transaction entered into after the date of issuance of the Notes. 
 The term “Indebtedness” shall mean all items classified as indebtedness on the then most recently available consolidated balance sheet of the
Issuer and its Consolidated Subsidiaries, in accordance with generally accepted accounting principles. 
 The term “net rental
payments” under any lease of any period shall mean the sum of the rental and other payments required to be paid in such period by the lessee thereunder, not including, however, any amounts required to be paid by such lessee (whether or not
designated as rental or additional rental) on account of maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges required to be paid by such lessee thereunder or any amounts required to be paid by such
lessee thereunder contingent upon the amount of sales, maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges. 
 The term “Subsidiary”, solely with respect to the covenant with respect to “Limitation on Liens” above, shall mean any corporation of which at least a majority of the outstanding stock having
voting power under ordinary circumstances for the election of the board of directors of such corporation shall at the time be owned by the Issuer or by the Issuer and one or more Subsidiaries or by one or more Subsidiaries. 
 The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of the holders of not less than a majority in aggregate
principal amount of the Senior Securities or Subordinated Securities, as the case may be, of all series issued under such Indenture then outstanding and affected (each voting as one class), to add any provisions to, or change in any manner,
eliminate or waive any of the provisions of, such Indenture or modify in any manner the rights of the holders of the Securities of each series or Coupons so affected; provided that the Issuer and the Trustee may not, without the consent
of the holder of each Outstanding Security affected thereby, (i) extend the final maturity of the principal of any Security or reduce the principal amount thereof or premium thereon, if any, or reduce the rate or extend the time of payment of
interest thereon, or reduce any amount payable on redemption thereof or change the currency in which the principal thereof (other than as otherwise may be provided with respect to such series), premium, if any, or interest thereon is payable or
reduce the amount of the principal of any Original Issue Discount Security that is payable upon acceleration or provable in bankruptcy, or in the case of Subordinated Securities of any series, modify any of the 

  

 6 








 
subordination provisions or the definition of “Senior Indebtedness” relating to such series in a manner adverse to the holders of such Subordinated
Securities, or alter certain provisions of the Indenture relating to Securities not denominated in Dollars or the Judgment Currency of such Securities or impair or affect the right of any Securityholder to institute suit for the enforcement of any
payment thereof when due or, if the Securities provide therefor, any right of repayment at the option of the Securityholder or (ii) reduce the aforesaid percentage in principal amount of Securities of any series issued under the Indenture, the
consent of the holders of which is required for any such modification. It is also provided in the Indenture that, with respect to certain defaults or Events of Default regarding the Securities of any series, the holders of a majority in aggregate
principal amount Outstanding of the Securities of each such series, each such series voting as a separate class (or, of all Securities, as the case may be voting as a single class) may under certain circumstances waive all defaults with respect to
each such series (or with respect to all the Securities, as the case may be) and rescind and annul a declaration of default and its consequences, but no such waiver or rescission and annulment shall extend to or affect any subsequent default or
shall impair any right consequent thereto. The preceding sentence shall not, however, apply to a default in the payment of the principal of or interest on any of the Securities. 
 No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at the time, place and rate, and in the coin or currency, herein prescribed. 
 As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note may be registered on the registry books of the Issuer, upon surrender of this Note for registration of
transfer at the office or agency of the Issuer maintained by the Issuer for such purpose in the Borough of Manhattan, The City of New York, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Issuer and
the Trustee duly executed by, the holder hereof or by its attorney duly authorized in writing, and thereupon one or more new Notes of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee
or transferees. 
 No service charge shall be made for any such registration of transfer or exchange, but the Issuer may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 
 Prior to due presentment of this
Note for registration of transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the contrary. 
 THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(b). 
  

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 [FORM OF SCHEDULE FOR ENDORSEMENTS ON REGISTERED 
 GLOBAL SECURITIES TO REFLECT CHANGES IN PRINCIPAL AMOUNT] 
 Schedule A 
 Changes to Principal Amount of Registered Global Securities 
  

							
	 Date
	 	 Principal Amount
of Notes
by which this Registered
Global
Security is to be
Reduced or Increased,
and Reason for
Reduction or Increase
	 	 Remaining Principal
Amount of this
Registered
Global
Security
	 	 Notation Made By


  

 8