Document:

Amendment No. 01 to Services Agreement

 Exhibit 10.2 
 “***” = CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED 
 Amendment No. 01 to Services
Agreement 
 The terms and conditions of that certain Services Agreement dated August 19, 2008, by and between
Health Net, Inc. (“Health Net”) and International Business Machines Corporation (“IBM”), herein referred to as the “Agreement” shall be further amended as set forth in this amendment
dated and effective as of August 19, 2008 (“Amendment No. 01”). All capitalized terms used herein and not otherwise defined herein shall have the meanings given them in the Agreement. 

For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Health Net and IBM hereby agree as
follows: 
 1. GENERAL 
 The
Parties wish to effect an update to Schedule E (Transitioned Employees) to reflect changes in the compensation for Transitioned Employees to provide a salary guarantee period. 
 2. CHANGES TO SCHEDULE E (TRANSITIONED EMPLOYEES) 
 Schedule E (Transitioned Employees) is
hereby amended as follows: 
  

	(a)	Section 3.4 (Compensation) is amended by inserting the following subsection (c): 

 

	 	(c)	The annualized base salary of those Transitioned Employees shall not be reduced during the first ***after their Transfer Date. 

Except for the modifications set forth herein, all of the other terms and conditions of the Agreement (including its Schedules and Exhibits) remain in
full force and effect. EACH PARTY ACKNOWLEDGES THAT IT HAS READ AND UNDERSTANDS THIS AMENDMENT NO. 01 AND AGREES TO BE BOUND BY THE TERMS HEREOF. 
 IN WITNESS WHEREOF, Health Net and IBM have each caused this Amendment No. 01 to the Agreement to be signed and delivered by its duly authorized officer. 

 

			
	HEALTH NET, INC.	 	 INTERNATIONAL BUSINESS

MACHINES CORPORATION

  

							
	Signed:	  	/s/ Jeffery R. Flynn                	  	Signed:	  	/s/ Fernando A. Morgan                

  

							
	Name (Print):	  	Jeffery R. Flynn	  	Name (Print):	  	Fernando A. Morgan

  

							
	Title:	  	Vice President	  	Title:	  	Sr. PE, IBM

  

							
	Date:	  	10/7/08	  	Date:	  	9/18/2008

  
  

					
	 Amendment No. 01 to

Health Net/IBM Services Agreement
	  	Page 1 of 1	  	Final Execution Copy

 HEALTH NET AND IBM CONFIDENTIAL AND
PROPRIETARY. DO NOT COPY. DO NOT DISSEMINATE.Amendment No. 02 to Services Agreement

 Exhibit 10.3 
 “***” = CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED 
 Amendment No. 02 to Services
Agreement 
 The terms and conditions of that certain Services Agreement dated August 19, 2008, by and between
Health Net, Inc. (“Health Net”) and International Business Machines Corporation (“IBM”), herein referred to as the “Agreement” shall be further amended as set forth in this amendment
dated and effective as of August 19, 2008 (“Amendment No. 02”). All capitalized terms used herein and not otherwise defined herein shall have the meanings given them in the Agreement. 

For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Health Net and IBM hereby agree as
follows: 
 1. GENERAL 
 The
Parties wish to effect an amendment to Section 9.3(c)(iii), Taxes, in the General Terms and Conditions of the Agreement to make the final subclause (iii) within that section effective after June 30, 2009. IBM and Health Net
acknowledge the complexities associated with the billing calculations for tax compliance, specifically regarding the voice and data elements of the Services. Both Parties agree that reasonable efforts are being taken on behalf of both Parties to
ensure tax invoicing compliance as soon as possible. As a result of AT&T’s circuit migration not being complete and the occurrence of other events generally affecting certain tax calculations, both Parties agree that the timely invoicing of
taxes will not be required until after June 30, 2009. 
 2. CHANGES TO THE GENERAL TERMS AND CONDITIONS 

Section 9.3 (Taxes)(c)(iii) of the General Terms and Conditions of the Agreement is hereby amended by: 

a. deleting the following clause in its entirety: 
 Health Net shall be responsible for any sales, use, excise, value-added, services, consumption or other tax existing as of the Effective Date that is assessed on the provision of the Services as a whole,
or on any particular Service by any governmental or taxing authority within the United States; provided, however, that (i) Supplier invoices reflect on a current basis (and in any event before any such tax becomes due and payable) the amount of
any such tax in each jurisdiction and the taxable Services to which such tax relates, (iii) if Supplier fails to reflect on its invoice any such tax on a current basis, Supplier shall be financially responsible for any penalties and interest
assessed by the taxing authority with respect to such tax, and (iii) if Supplier fails to reflect any such tax on a Supplier invoice within *** days after such tax should have been invoiced, Supplier shall be financially responsible for the
full amount of such tax, including any penalties and interest. Subject to Health Net’s right to terminate the Agreement relating to taxes set forth in Section 16.1(h), Health Net shall bear the responsibility for any sales, use, excise,
value-added, services, consumption or other tax becoming applicable during the Term (or that is increased during the Term) that is assessed on the provision of the Services as a whole, or on any 

 

			
	Amendment No. 02 to Health Net/IBM Services Agreement	  	Page 1 of 2

 HEALTH NET AND IBM CONFIDENTIAL AND
PROPRIETARY. DO NOT COPY. DO NOT DISSEMINATE. 

 
particular Service by any governmental or taxing authority within the United States (subject to items (i)-(ii) above). 
 and 
 b. replacing it with the following new clause: 

(iii) Health Net shall be responsible for any sales, use, excise, value-added, services, consumption or other tax existing as of the Effective Date that
is assessed on the provision of the Services as a whole, or on any particular Service by any governmental or taxing authority within the United States; provided, however, that (i) Supplier invoices reflect on a current basis (and in any event
before any such tax becomes due and payable) the amount of any such tax in each jurisdiction and the taxable Services to which such tax relates, (ii) if Supplier fails to reflect on its invoice any such tax on a current basis, Supplier shall be
financially responsible for any penalties and interest assessed by the taxing authority with respect to such tax, and (iii) if, after June 30, 2009, Supplier fails to reflect any such tax on a Supplier invoice within *** days after such
tax should have been invoiced, Supplier shall be financially responsible for the full amount of such tax, including any penalties and interest. Subject to Health Net’s right to terminate the Agreement relating to taxes set forth in
Section 16.1(h), Health Net shall bear the responsibility for any sales, use, excise, value-added services, consumption or other tax becoming applicable during the term (or that is increased during the Term) that is assessed on the provision of
the Services as a whole, or on any particular Service by any governmental or taxing authority within the United States (subject to items (i)-(ii) (iii) above). 
 Except for the modifications set forth herein, all of the other terms and conditions of the Agreement (including its Schedules and Exhibits) remain in full force and effect. EACH PARTY ACKNOWLEDGES
THAT IT HAS READ AND UNDERSTANDS THIS AMENDMENT NO. 02 AND AGREES TO BE BOUND BY THE TERMS HEREOF. 
 IN WITNESS WHEREOF, Health Net
and IBM have each caused this Amendment No. 02 to the Agreement to be signed and delivered by its duly authorized officer. 
  

			
	 HEALTH NET, INC.
	  	 INTERNATIONAL BUSINESS
 MACHINES CORPORATION

		
	 Signed:   /s/ Roberta
Stocker                
	  	 Signed:   /s/ Fernando A.
Morgan                

		
	 Name (Print):  Roberta Stocker
	  	 Name (Print):   Fernando A. Morgan

		
	 Title:   Director, IT Governance
	  	 Title:   Sr PE IBM

		
	 Date:   4/22/09
	  	 Date:   4/22/2009

  

			
	 Amendment No. 02 to Health Net/IBM Services Agreement
	  	Page 2 of 2

 HEALTH NET AND IBM CONFIDENTIAL AND
PROPRIETARY. DO NOT COPY. DO NOT DISSEMINATE.Amendment No. 3 to Master Agreement

 Exhibit 10.4 
 “***” = CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED AND HAVE BEEN SEPARATELY 
 FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED 

Final Execution Version 
 AMENDMENT NO. 3 TO 
 MASTER AGREEMENT 

This Amendment Number 3 (“Amendment 3”), effective as of April 25, 2011 (the “Amendment
3 Effective Date”), is between Health Net, Inc. (“Health Net”), and International Business Machines Corporation (“Supplier”) (each, a
“Party” and collectively, the “Parties”). Defined terms used in this Amendment shall have the same meaning as in the Agreement unless otherwise specifically defined herein.
This Amendment 3 is made with reference to the following: 
 Background 

A. Master Agreement. The Parties entered into a Master Agreement dated August 19, 2008 (the “Agreement”), as
modified from time to time, pursuant to which Supplier provides certain business process outsourcing services to Health Net; and 
 B. Modification. The Parties now desire to modify the Agreement pursuant to this Amendment 3 with respect to the Service Levels, changing the definition of Amount-at-Risk and certain Service Level
metrics. 
 NOW, THEREFORE, in consideration of the mutual promises, covenants, agreements and other undertakings set forth
herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows: 
 Changes 
 1. Effective January 1, 2010, Section 2.1(a) of Schedule B (Service
Levels) is deleted in its entirety and replaced with the following: 
 “Amount at Risk” means an amount equal to ***
percent (***%) of the aggregate monthly charges payable by Health Net under this Agreement excluding: ***. 
  

	2.	For the period of January 1, 2010 through October 31, 2010, Exhibit B-1 is deleted in its entirety and replaced with the Exhibit B-1 attached hereto as
Attachment 1 to Amendment 3. 

  

	3.	Effective November 1, 2010, Exhibit B-1 is deleted in its entirety and replaced with the Exhibit B-1 attached hereto as Attachment 2 to Amendment 3.

  

	4.	Effective November 1, 2010, Section 1.3(a)(ii)(B) of Exhibit B-2 (Formula Definitions) is deleted in its entirety. 

 

	5.	Except as amended and modified by this Amendment, all of the terms and conditions of the Agreement shall remain in full force and effect. This Amendment may not be
modified except in writing signed by both Parties hereto. This Amendment, the Agreement and exhibits and schedules thereto constitute the entire agreement of the Parties with respect to the subject matter contained therein and supersede any and all
prior or contemporaneous agreements between the Parties, whether oral or written, concerning the subject matter contained herein. EACH PARTY ACKNOWLEDGES THAT IT HAS READ AND UNDERSTANDS THIS AMENDMENT AND AGREES TO BE BOUND BY THE TERMS
HEREOF. 

 IN WITNESS WHEREOF, the Parties hereto by their duly authorized representatives executed this
Amendment to be effective as of the Amendment Effective Date. 

  

			
	 Health Net/ IBM Confidential

Amendment 3 effect. 04252011
	  	  
 B-1 - 1

 Final Execution Version 

 

									
	 Health Net, Inc.
	 		 	International Business Machines Corporation
					
	By:	 	 /s/     David R.
Moffitt        
	 		 	By:	 	 /s/     Lisa Kogovsek
        

					
	Print Name:	 	David R. Moffitt	 		 	Print Name:	 	Lisa Kogovsek
					
	Title:	 	SR Sourcing Manager	 		 	Title:	 	IBM PE
					
	Date:	 	5/19/2011	 		 	Date:	 	6/8/2011

  

			
	 Health Net/ IBM Confidential

Amendment 3 effect. 04252011
	  	  
 B-1 - 2

 ATTACHMENT 1 TO AMENDMENT 3 

Exhibit B-1 

Service Levels 
 Effective January 1, 2010 through October 31, 2010 
 ***

  
  
  

 

  

			
	 Health Net/ IBM Confidential

Amendment 3 effect. 04252011
	  	

 ATTACHMENT 2 TO AMENDMENT 3 

Exhibit B-1 

Service Levels 
 Effective November 1, 2010 
 *** 

 

  

			
	  
 Exhibit B-1

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