Document:

General Supply Agreement for Personal Communications Services Systems

 Exhibit 10.1 
 Contract No. LNM070600KAR 
 TABLE OF CONTENTS 
 GENERAL AGREEMENT FOR PURCHASE 
 OF PERSONAL COMMUNICATIONS SERVICES SYSTEMS

  

					
	1. ARTICLE I – GENERAL PROVISIONS APPLICABLE TO ENTIRE AGREEMENT	  	
			
	1.1	  	HEADINGS AND DEFINITIONS	  	5
			
	1.2	  	TERM OF AGREEMENT	  	9
			
	1.3	  	SCOPE	  	9
			
	1.4	  	PURCHASE OF INITIAL ORDER AND EXCLUSIVITY	  	9
			
	1.5	  	ADDITIONS TO AN INITIAL ORDER	  	11
			
	1.6	  	ORDERS	  	11
			
	1.7	  	CHANGES TO ORDERS	  	12
			
	1.8	  	PRICES	  	12
			
	1.9	  	INVOICES AND TERMS OF PAYMENT	  	12
			
	1.10	  	BILLING DISPUTES	  	13
			
	1.11	  	DELIVERY AND INSTALLATION SCHEDULE	  	13
			
	1.12	  	TRANSPORTATION	  	13
			
	1.13	  	PACKING, MARKING, AND SHIPPING	  	14
			
	1.14	  	TITLE AND RISK OF LOSS	  	14
			
	1.15	  	COMPLIANCE WITH LAWS	  	14
			
	1.16	  	TAXES	  	14
			
	1.17	  	TRAINING	  	14
			
	1.18	  	TERMINATION	  	15
			
	1.19	  	PATENTS AND COPYRIGHTS	  	16
			
	1.20	  	CONFIDENTIAL INFORMATION	  	17

  

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	1.21	  	NOTICES	  	17
			
	1.22	  	RIGHT OF ACCESS	  	18
			
	1.23	  	RELATIONSHIP OF THE PARTIES	  	18
			
	1.24	  	SUBCONTRACTORS	  	18
			
	1.25	  	LIMITATION OF LIABILITY	  	18
			
	1.26	  	FORCE MAJEURE	  	19
			
	1.27	  	ASSIGNMENT	  	19
			
	1.28	  	NO PUBLICITY	  	19
			
	1.29	  	NON-SOLICITATION	  	20
			
	1.30	  	SURVIVAL OF OBLIGATIONS	  	20
			
	1.31	  	SEVERABILITY	  	20
			
	1.32	  	WAIVER	  	20
			
	1.33	  	CUSTOMER RESPONSIBILITY	  	20
			
	1.34	  	DISPUTE RESOLUTION	  	21
			
	1.35	  	UNPLANNED OUTAGES	  	21
			
	1.36	  	CUSTOMER OBLIGATIONS	  	22
			
	1.37	  	AMENDMENT	  	23
			
	1.38	  	CHOICE OF LAW	  	23
			
	1.39	  	HEADINGS	  	23
			
	1.40	  	COUNTERPARTS	  	23
		
	2. ARTICLE II – PROVISIONS APPLICABLE TO THE PURCHASE OF PRODUCTS	  	
			
	2.1	  	GENERAL	  	24
			
	2.2	  	PRODUCT AVAILABILITY & DISCONTINUANCE	  	24
			
	2.3	  	DOCUMENTATION	  	25
			
	2.4	  	PRODUCT COMPLIANCES	  	25
			
	2.5	  	PRODUCT CHANGES	  	25

  

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	2.6	  	SECONDARY MARKET PURCHASES	  	26
			
	2.7	  	SPECIFICATIONS	  	26
			
	2.8	  	CUSTOMER TECHNICAL SUPPORT	  	26
			
	2.9	  	PRODUCT WARRANTY	  	27
		
	3. ARTICLE III – PROVISIONS APPLICABLE TO THE LICENSING OF SOFTWARE	  	
			
	3.1	  	GENERAL	  	29
			
	3.2	  	LICENSE	  	29
			
	3.3	  	TITLE, RESTRICTIONS AND CONFIDENTIALITY	  	30
			
	3.4	  	CHANGES IN LICENSED MATERIALS	  	31
			
	3.5	  	MODIFICATIONS TO SOFTWARE	  	31
			
	3.6	  	MODIFICATION BY CUSTOMER	  	31
			
	3.7	  	RELATED DOCUMENTATION	  	31
			
	3.8	  	CANCELLATION OF LICENSE	  	31
			
	3.9	  	TAXES APPLICABLE TO SOFTWARE	  	32
		
	4. ARTICLE IV – PROVISIONS APPLICABLE TO ENGINEERING, INSTALLATION, AND OTHER SERVICES	  	
			
	4.1	  	GENERAL	  	33
			
	4.2	  	CONDITIONS OF INSTALLATION AND OTHER SERVICES PERFORMED ON CUSTOMER’S SITE	  	
			
	4.2.1	  	ITEMS PROVIDED BY CUSTOMER	  	34
			
	4.2.2	  	ITEMS TO BE FURNISHED BY VENDOR	  	37
			
	4.3	  	WORK DONE BY OTHERS	  	38
		
	5. ARTICLE V	  	
			
	5.1	  	ENTIRE AGREEMENT	  	39

  

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 ATTACHMENT A – VAW WVA PRICING 
 ATTACHMENT B – VA EAST PRICING 
 ATTACHMENT C – LWS SOW 
 ATTACHMENT D – SOLUTION SUMMARY 
 ATTACHMENT E –
DEPLOYMENT SCHEDULE 
 ATTACHMENT F – MARKET DEVELOPMENT PROGRAM 
 ATTACHMENT G – STANDARD WIRELESS DISCOUNTS 
  

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 GENERAL SUPPLY AGREEMENT FOR PERSONAL COMMUNICATIONS 
 SERVICES SYSTEMS 
 This General Supply
Agreement for Personal Communications Services Systems LNM070600KAR, together with any schedules and attachments (“Agreement”) is made and entered into by and between Lucent Technologies Inc. (“Alcatel-Lucent” or
“Vendor”), a Delaware corporation having an office at 600 Mountain Avenue, Murray Hill, NJ 07974, and NTELOS Inc. (“Customer”), a Virginia corporation having an office at 401 Spring Lane Plaza, P.O. Box 1990, Waynesboro, Virginia
22980. This Agreement is effective as of August 3, 2007 (“Effective Date”). 
 1. ARTICLE I – GENERAL PROVISIONS

 GENERAL PROVISIONS APPLICABLE TO ENTIRE AGREEMENT 
  

	1.1	HEADINGS AND DEFINITIONS 

 All headings used
in this Agreement are inserted for convenience only and are not intended to affect the meaning or interpretation of this Agreement or any clause. For the purpose of this Agreement, the following definitions will apply: 
 “Affiliate” of a corporation means its Subsidiaries, any company of which it is a Subsidiary, and other Subsidiaries of such company;

 “Customer Price List” means Vendor’s published price notification releases furnished by Vendor for the purpose of
communicating Vendor’s prices or pricing related information to Customer; however, this does not include firm price quotations; 
 “Designated Processor” means the Product for which the licenses to use Licensed Materials are initially granted; 
 “Firmware” means a combination of (i) hardware and (ii) Software represented by a pattern of bits contained in such hardware; 
 “Fit” means physical size or mounting arrangement (e.g., electrical or mechanical connections); 
 “5ESS® Products” means the 5ESS Switch, Growth and related Licensed Materials including, without limitation, Base Software; 
  

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 “5ESS® Switch” means any 5ESS system containing, at a minimum, an Administrative Module (AM), Communications Module (CM), and at least one (1) switch module. Any such switch can act as a host for Distant Reliable
Modules (“DRMs”) and/or Extended Switch Modules (“EXMs”); 
 “Form” means physical shape; 
 “Function” means product features; 
 “Force Majeure” means act of God, fire, flood, earthquake, the elements or other natural catastrophe; laws, orders, rules, regulations, directions or actions of governmental authorities having jurisdiction over the subject matter
of this Agreement or any civil or military authority; strike, labor dispute, embargo, explosion, water; the condemnation or taking by eminent domain of any of a Party’s facilities used in connection with the Products, national emergency,
insurrection, riot, act of terrorism or war; inability to secure raw materials or transportation facilities; acts or omissions of carriers or suppliers not under the control of such other party; or other similar occurrence. 
 “Hazardous Material” means material designated as a “hazardous chemical substance or mixture” by the Administrator, pursuant to
Section 6 of the Toxic Substance Control Act, a “hazardous material” as defined in the Hazardous Materials Transportation Act (49 U.S.C. 1801, et seq.), or a “hazardous substance” as defined in the Occupational Safety and
Health Act Hazard Communication Standard (29 CFR 1910.1200); 
 “Information” or “Confidential Information” shall include:
(a) any information disclosed by either party (the “Discloser”) to the other party (the “Recipient”) which is in written, electronic, photographic or other tangible form, or information provided orally or visually, and
(b) notes and other records made from such information. Confidential Information disclosed in a tangible or electronic form may be marked or otherwise identified by Discloser with a legend as being confidential or proprietary, but in no event
will the absence of such mark or identification in any way affect Recipient’s obligations hereunder, including without limitation the obligation to treat such information as Confidential Information; 
 “Initial Order” means the initial order for Personal Communications Services (“PCS”) Products, Services, and Licensed Materials set
forth in Attachments A, B, C and D for VA West/West VA swapout markets per Attachment E, and existing VA East markets already containing Vendor’s Products. 
 “Licensed Area” means an area for which the Federal Communications Commission (“FCC”) has granted a license to the Customer to operate within the Personal Communication Services Spectrum Band

 “Licensed Materials” means the Software and Related Documentation for which licenses are granted by Vendor under this Agreement;
no Source Code versions of Software are included in Licensed Materials; 
  

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 “PCS” means broadband personal communications services as authorized by the FCC.

 “PCS CDMA System Products” means a collection of (a) products and software which comprise a PCS System, which are used in
switching, wireless access and transport of voice and data at PCS frequencies based on CDMA technology similar to those Products and Software which are described in Attachments A, B, and D, and which are used and required in an integrated network
solution, and (b) those new, replacement or enhanced PCS CDMA products and software that become available during the Term and comprise a PCS System, which are used in switching, wireless access and transport of voice and data, which are used
and required in an integrated network solution. Notwithstanding the foregoing, hardware, software or services purchased by Customer for purposes of operating and maintaining any Motorola or Nortel equipment in use in Customer’s
network as of the Effective Date of this Agreement shall not be considered PCS CDMA System Products. 
 “PCS CDMA System Products”
does not include site material or cabling ancillary to base station replacement or those Products and Software set forth in Attachments A, B and D. 
 “PCS System” means a collection of products and software to be deployed and operated by Customer, or an Affiliate to provide PCS services in the PCS frequency range. 
 “Product” means systems, equipment, and parts thereof, other than Turnkey Items, but the term does not mean Software whether or not such
Software is part of Firmware; 
 “Related Documentation” means materials useful in connection with Software, such as, but not
limited to, flow charts, logic diagrams, program descriptions, and specifications. No Source Code versions of Software are included in Related Documentation; 
 “Vendor’s Manufactured Product” means a Product manufactured by Vendor or purchased by it pursuant to its procurement specifications (e.g., KS or AT); 
 “Services” means the performance of work for the Customer and includes but is not limited to: (1) engineering Services such as preparation
of equipment specifications, preparation and updating of office records, and preparation of a summary of material not specifically itemized in the Order; (2) installation Services such as installation, equipment removal, and cable mining; and
(3) other Services such as maintenance and repair. Services do not include Turnkey Services; 
  

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 “Software” means a computer program that Customer orders and/or Vendor delivers under this
Agreement consisting of a set of logical instructions and tables of information which guide the functioning of a processor; such program is in object code format may be contained in any medium whatsoever, including hardware containing a pattern of
bits representing such program, however, the term “Software” does not mean or include such medium and does not include any Source Code; 
 “Source Code” means any version of Software incorporating high-level or assembly language that generally is not directly executable by a processor. Except as may be expressly provided, this Agreement does not require Vendor to
furnish any Source Code; 
 “Subsidiary” of a company means a corporation the majority of whose shares or other securities entitled
to vote for election of directors is now or hereafter owned or controlled by such company either directly or indirectly; but any such corporation shall be deemed to be a Subsidiary of such company only as long as such ownership or control exists;

 “Territory” means the 50 states of the United States plus the District of Columbia; 
 “Turnkey Item” means a good or product or a partial assembly of goods or products furnished and, perhaps, installed by Vendor as part of a
Turnkey Service but not furnished by Vendor pursuant to this Agreement. A Turnkey Item is not a Vendor Item or a Product as described in this Agreement; 
 “Turnkey Services” means items and activities normally the responsibility of the Customer under this Agreement, which may include, but shall not be limited to, project management, field coordination,
construction and system testing. Turnkey Services do not include, and are separate from, Vendor’s normal engineering and installation Services; 
 “Use” with respect to Licensed Materials means loading the Licensed Materials, or any portion thereof, into a processor for execution of the instructions and tables contained in such Licensed Materials; 
 “Vendor Item” means a Product or partial assembly of Products furnished by Vendor but neither manufactured by Vendor nor purchased by Vendor
pursuant to its procurement specifications. A Vendor Item is not a Turnkey Item; and 
 “Warranty Period” means the period of time
listed in the respective WARRANTY clauses which, unless otherwise stated, commences on the date of shipment, or if installed by Vendor on acceptance by Customer or thirty (30) days from the date Vendor submits its notice of completion of its
installation whichever is sooner, and for Services, commences on the date the Service is completed. 
  

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	1.2	TERM OF AGREEMENT 

 This Agreement shall
begin on the Effective Date and shall continue for a period of three years (“Term”), unless earlier terminated or as mutually agreed in writing. Expiration or termination of this Agreement shall not excuse a Party from performing
obligations which have not been fully performed for any accepted Order. The terms and conditions in the Agreement shall continue to apply to Orders, Products, Software and Services purchased or licensed from Vendor during the Term of the Agreement,
notwithstanding the expiration or termination of the Agreement. 
  

	1.3	SCOPE 

 This Agreement provides for:
(a) the sale by Vendor to Customer of new or refurbished standard equipment and components made available for sale by Vendor (“Equipment”), (b) the license by Vendor to Customer of Software and Firmware (including third-party
software and firmware) made available for license by Vendor (c) the license by Vendor to Customer of Related Documentation and (d) the performance of Services by Vendor, all of which are set forth in Attachments. The Parties shall
enter into one or more addenda or statements of work (“Addenda”) to supplement or modify this Agreement for specific Products, Licensed Materials or Services. All references to the “Agreement” include this document and its
schedules together with any and all Addenda and their attachments. All Products, Licensed Materials and Services furnished by Vendor to Customer are for Customer’s own internal Use in the United States. Customer represents and warrants that it
has no intention of reselling any Products or sublicensing any Licensed Materials. 
 Except as expressly stated in this Agreement, this
Agreement shall not apply to any products, licensed materials or services offered for supply by any other group within Vendor. Turnkey Services to be performed by Vendor, if any, and/or Turnkey Items to be obtained by Vendor for Customer, if any,
shall be subject to separate agreement of the parties. To the extent that any terms and conditions in any other Article of the Agreement conflict with the provisions of this Article I, such terms and conditions supersede such conflicting provisions
of this Article I. 
  

	1.4	PURCHASE OF INITIAL ORDER AND EXCLUSIVITY 

 Initial Order 
 (a) Vendor agrees to engineer, furnish and install and Customer agrees to purchase the Initial Order in
accordance with the terms and conditions contained in this Agreement. The Initial Order shall consist of the Products, Licensed Materials and Services as set forth in Attachments A, B, C and D for VA West/West VA swapout markets per Attachment E,
and existing VA East markets already containing Vendor’s Products. Pricing for the Initial Order is provided in Attachments A and B and is based on Customer’s commitment to purchase the PCS CDMA System Products exclusively and to purchase
the Initial Order from Vendor during the Term. 
  

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 Exclusivity 
 (b) Customer agrees to purchase exclusively from Vendor (i) PCS CDMA System Products for 3G-1X voice and data in the VA West/West VA and VA East Markets where Customer is now a provider during the Term; and
(ii) PCS CDMA System Products for EVDO in all PCS 1900 Customer markets where Customer is now a provider or becomes a provider during the Term. Notwithstanding the foregoing, Customer may purchase additional Nortel switching capacity in
quantities that Customer, in Customer’s reasonable judgment, deems necessary to facilitate the deployment of Vendor’s switching equipment. Upon completion of deployment of Vendor’s switching equipment, Customer may, at its sole
discretion, redeploy existing Nortel and Motorola equipment. 
 (i) During the Term of this Agreement and provided that Customer is not in
breach of this Agreement and Customer complies with Subsections 1.4 (a) and (b) above, the prices, terms and conditions, viewed collectively, charged to Customer for the Products and Software provided under Attachments A, B and D of this
Agreement shall be no less favorable than the prices, terms and conditions, viewed collectively, for substantially similar Products and Software at substantially similar volume commitments, with like configurations under comparable circumstances,
made available to any mobility/wireless service providers in the United States by Vendor pursuant to an executed contract. The following sales shall not be considered in any price comparisons: sales to a Vendor Affiliate, distributor, reseller,
sales agent, or governmental entity; sales made as part of the settlement of a dispute, sales involving an exchange or the granting of intellectual property rights (other than the granting of licenses to use software furnished by Vendor to a
customer), third-party branded products, or the provision of laboratory, trial, test, previously used, refurbished, demonstration or promotional Products or Software. If the prices, terms and conditions under this Agreement are at any time less
favorable than the prices, terms and conditions made available to a third party as set forth above, Vendor shall prospectively offer amended prices, terms and conditions under this Agreement as necessary to eliminate such discrepancy. As used in
this Section, the “U.S.” means the 50 United States of America and the District of Columbia. 
  

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 (ii) If Customer fails to procure PCS CDMA System Products exclusively from Vendor or fulfill the
Initial Order during the Term then: (i) Customer will no longer be entitled to the pricing set forth in Attachments A and B and Vendor’s current discount schedule in Attachment G will apply to all of Customer’s purchases;
(ii) Customer will forfeit any and all accrued, but unapplied, credits and discounts identified in Attachments A and B; (iii) Customer shall pay fees, not as a penalty, the difference between the prices paid for all PCS CDMA System
Products purchased during the Term less any discounts and incentives, and the prices Customer would have paid if Customer had not committed to purchase PCS CDMA System Products exclusively from Vendor during the Term. The prices Customer would have
paid will be calculated using Customer’s standard discount rate as provided in Attachment G; and (iv) Section 1.4(c) does not apply. 
  

	1.5	ADDITIONS TO AN INITIAL ORDER 

 The parties
contemplate that Customer will wish to obtain additional Products, Licensed Materials and Services to expand the coverage of or add features to any PCS Systems constructed or initiated under the Initial Order. Orders for such additional items
received by Vendor during the term of this Agreement shall be received and accepted subject to the terms and conditions hereof. 
  

	1.6	ORDERS 

 All purchases under this Agreement
shall be made by Orders issued by Customer from time to time subject to acceptance by Vendor in writing. All orders shall be deemed accepted within fifteen (15) days of order receipt from Vendor, unless Vendor notifies Customer to the contrary.
Each Order shall reference this Agreement and applicable Addendum Customer shall communicate Orders to the Vendor in the manner specified by Vendor. All Orders submitted by Customer shall be deemed to incorporate and be subject to the terms and
conditions of this Agreement unless otherwise agreed in writing. While it is Vendor’s responsibility to provide Customer with an acknowledgment of each order received, it is Customer’s responsibility to advise Vendor of any missing or late
notifications to insure that the order has not been lost. No provision or data on any order or contained in any documents attached to or referenced in any order, any subordinate document (such as shipping releases), shall be binding, except data
necessary for Vendor to fill the order. All such other data and provisions are hereby rejected. Electronic orders shall be binding on Customer notwithstanding the absence of a signature. 
 Vendor shall be entitled to place any order on hold, delay shipment, and/or reject an order or suspend performance of its obligations under this
Agreement, in whole or in part, only (i) in the event that Customer has insufficient credit limits; (ii) or Customer fails to make any payment on or before the due date; or (iii) Event of Default as defined in Section 1.18
Termination. Vendor shall notify Customer within three (3) business days prior to the suspension, delay or rejection of an Order. Any additional costs to Vendor occasioned by the stoppage and subsequent resumption of performance shall be
Customer’s responsibility, and Vendor will be allowed a reasonable extension of time (which shall not be shorter than the duration of Customer’s breach) to complete its obligations. 
  

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	1.7	CHANGES TO ORDERS 

 The parties may, by
mutual agreement, make changes to an Order (“Change”). The party asking for a Change shall describe in writing the details of the requested Change (“Change Order Request”). Vendor shall provide in writing to Customer a summary of
any and all adjustments to the charges and other changes resulting from the Change Order Request. In no event shall any Change be effective or acted upon in any way until such time as i) an authorized representative of each party has agreed to the
terms of the Change Order Request in writing and ii) Vendor has received an Order from Customer for any additional charges resulting from the Change Order Request. 
  

	1.8	PRICES 

 The applicable prices and charges
for each Order shall be set forth in the appropriate addendum or in a firm price quotation made by Vendor or, if not set forth in either of those, in Vendor’s customer price lists in effect on the day Vendor receives the Order. All firm price
quotes shall be deemed to incorporate this Agreement. In the event provisions of a firm price quote conflicts with this Agreement, the Agreement shall supersede the comparable provisions with respect to the Products described in such quote, unless
both parties agree that the provisions of the quote will supersede the Agreement. 
  

	1.9	INVOICES AND TERMS OF PAYMENT 

 Vendor shall
invoice Customer all amounts due for Products and Software upon shipment. Vendor will invoice Customer all amounts due for maintenance, management and other recurring Services in advance and charges for engineering, installation and other
nonrecurring Services as incurred. Customer shall pay the undisputed portions of such invoiced amounts within 45 days after the invoice date. Overdue but undisputed payments shall be subject to a late payment charge of 1% per month of the
overdue and undisputed amount or the maximum rate allowed by law, whichever is less. Invoices paid within 10 days after the invoice date shall be discounted and Customer may deduct 1% from such invoices. If Customer fails to make payments when due
and such payments are not subject to a Dispute Notice (defined below), Vendor may, at its discretion, and without prejudice to its other rights, require Customer to prepay for further purchases. Customer will reimburse Vendor for reasonable
attorneys’ fees and other costs associated with collecting delinquent payments. 
  

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	1.10	BILLING DISPUTES 

 Customer shall notify
Vendor of any billing discrepancies or disputes about an invoice within 30 days after invoice date, specifying with particularity the basis of any such dispute (“Dispute Notice”). The Parties shall negotiate in good faith to resolve any
Dispute Notice. When so resolved, any payment which may have been made by Customer in excess of the resolution amount shall be, at Customer’s option, (i) credited against outstanding fees, charges and/or accounts receivable due and owing
by Customer, or (ii) refunded to Customer. Any amount owed by Customer when so resolved shall be paid by Customer within 30 days of the resolution of the dispute. Vendor shall continue to ship Product and comply with the invoicing and payment
terms of this Agreement during any such dispute. Customer is obligated to pay the undisputed portion of any invoice subject to a Dispute Notice. 
 Notwithstanding anything contained to the contrary in this section, with regard to EV-DO projects, in the event Customer remits an overpayment or either Party discovers a material error in their respective correspondence, including but not
limited, to purchase orders, invoices, or shipping, after the Dispute Notice period, the Parties shall reasonably cooperate with each other to resolve such error. Each Party agrees to notify the other of such errors within 45 days from invoice date,
and any and all errors must be resolved within 180 days from the date of shipment. 
  

	1.11	DELIVERY AND INSTALLATION SCHEDULE 

 The
Parties acknowledge and agree that both Parties’ performance is important to the other’s business operations and shall use commercially reasonable efforts to ensure agreed upon schedules are met. 
  

	1.12	TRANSPORTATION 

 Vendor’s prices for
Products and Licensed Materials do not include freight charges or related transportation Services or charges therefore, unless expressly stated in writing by Vendor to the contrary. Vendor, in accordance with its normal practices, will arrange for
transportation for such items, will prepay transportation, if appropriate, and invoice transportation charges. 
 If Customer elects to route
Products and/or Licensed Materials or to arrange for transportation, Vendor will provide related services subject to a separate fee. 
 Premium transportation will only be used with Customer’s concurrence. 
  

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	1.13	PACKING, MARKING, AND SHIPPING 

 Vendor
shall, at no additional charge, pack and mark shipping containers in accordance with its standard practices for domestic shipments. Where in order to meet Customer’s requests, Vendor packs and/or is required to mark shipping cartons in
accordance with Customer’s specifications, Vendor shall invoice Customer additional charges for such packing and/or marking. 
 Vendor
shall: 
  

	(a)	Enclose a packing memorandum with each shipment and, if the shipment contains more than one package, identify the package containing the memorandum; and 

  

	(b)	Mark Products as practicable for identification in accordance with Vendor’s marking specifications (e.g., model/serial number and month and year of manufacture).

 Partial shipments under an order may be made by Vendor and separately invoiced. 
  

	1.14	TITLE AND RISK OF LOSS 

 Title to Products and risk of loss for Products and Licensed Software shall pass from Vendor to Customer upon delivery to the location specified by Customer in the Purchase Order, unless otherwise agreed in writing by the parties. Provided
however, for all Customer locations where warehouse delivery has been requested, title and risk of loss shall pass upon delivery to the Customer’s designated warehouse location. 
  

	1.15	COMPLIANCE WITH LAWS 

 Performance under this Agreement shall be subject to all applicable laws, orders, and regulations of federal, state, and local governmental entities. 
  

	1.16	TAXES 

 Except for taxes on
Vendor’s income, Customer shall pay all applicable taxes that any governmental or taxing authority may impose upon the purchase, license, ownership, possession, use, operation or relocation of any Product, Software or Service furnished under
this Agreement. 
  

	1.17	TRAINING 

 Vendor will make available
Vendor’s standard training for Customer’s personnel in the planning for, operation and maintenance of Products and Software furnished hereunder in accordance with Vendor’s published prices at Vendor’s training locations or as
mutually agreed. See Attachment A for Customer’s allocated training. 
  

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	1.18	TERMINATION 

 Either Party shall have the
right to terminate this Agreement in its entirety and/or terminate affected Purchase Orders only or suspend performance hereunder (including the suspension of performance of all outstanding Orders) and without prejudice to any other rights or
remedies which it may have under this Agreement, upon the occurrence and during the continuance of any of the following events, each of which shall constitute a material breach of this Agreement by such Party (each, an “Event of Default”):
(i) A Party (A) files a voluntary petition in bankruptcy or has an involuntary petition in bankruptcy filed against it that is not dismissed within sixty (60) days of such involuntary filing, (B) admits the material allegations
of any petition in bankruptcy filed against it, (C) is adjudged bankrupt, (D) is unable generally to pay its debts as they mature, (E) makes a general assignment for the benefit of its creditors, or has a receiver appointed for all or
a substantial portion of its assets that is not discharged within sixty (60) days after such appointment, or (F) commences any proceeding for relief from its creditors in any court under any state insolvency statutes; or (ii) assigns
performance of its obligations other than as permitted under this Agreement; or (iii) fails to timely pay any undisputed amount owed to Vendor as per Section1.9, Invoicing and Terms of Payment; or (iv) materially breaches any other
obligation under this Agreement, provided that such material breach is not cured, or if the material breach is uncurable, substantial progress toward a cure has not been made, within thirty (30) calendar days following a Party’s receipt of
written notice from the other requiring it to do so. Notwithstanding the foregoing, Customer must fulfill its payment obligations respecting Orders for Products, Licensed Materials and Services already shipped or performed. 
 Upon receipt of notice from Customer of termination or suspension of any order or of the Agreement under this Section or if Vendor terminates or suspends
any order or the Agreement pursuant to this Section, Vendor will cancel outstanding orders, discontinue deliverables or services thereunder. Unless termination is caused by a breach of the Agreement by the Vendor, Customer shall also pay Vendor for
any costs and expenses incurred or irrevocably committed to by Vendor with respect to products, Licensed Materials or Services or other materials not yet delivered or not completely performed as of the date of termination or suspension,
any charges charged by Vendor’s subcontractors or suppliers for early termination or suspension and the cost of removing and reshipping any material, products or Licensed Materials from Customer’s sites. In addition for any
suspension of work, not caused by Vendor’s uncured breach of the Agreement, any additional costs to Vendor occasioned by the stoppage and subsequent resumption of performance shall be Customer’s responsibility, and Vendor will be allowed a
reasonable extension of time to complete its obligations. 
  

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	1.19	PATENTS AND COPYRIGHTS 

 Vendor reserves all
intellectual property and proprietary rights in and to i) all methodologies, designs, engineering details, and other data pertaining to the Products and Software, ii) all original works, computer programs, updates developed in the course of
providing the Products and Software. 
 Subject to the conditions and exceptions stated below, in the event of any claim, action, proceeding
or suit by a third party against Customer alleging that a Product or Software furnished by Vendor (including, without limitation, both Vendor and third party Software) infringes any US (i) patent, (ii) copyright, or (iii) trade
secret, Vendor will defend Customer, will reimburse Customer for any cost, expense or attorneys’ fees incurred at Vendor’s written request or authorization and will indemnify Customer against any liability assessed against Customer in a
final judgment on account of such infringement or violation arising out of such use. The preceding obligations are conditioned upon Customer giving Vendor prompt written notice of the claim and information, reasonable assistance, and sole authority
to defend and to settle the claim. In the defense or settlement of a claim, Vendor shall, in its reasonable judgment, and at its option and expense: (i) obtain for Customer the right to continue using the Product or Software, or
(ii) replace or modify the Product or Software so that it becomes non-infringing. If none of the foregoing options is practical, Vendor shall use reasonable commercial best efforts to promptly inform Customer and Vendor will remove the enjoined
Product or Software and refund the amount paid to Vendor for the infringing materials, less a reasonable charge for any actual period of use by Customer. Vendor shall not be liable to Customer under this section to the extent that any infringement
or claim (i) arises from use of the Product or Software in combination with equipment or software not supplied or authorized by Vendor or (ii) arises from adherence to design modifications, specifications, drawings, or written instructions
which Vendor is directed by Customer to follow, but only if such alleged infringement or violation does not reside in corresponding commercial Product or Software of Vendor’s design or selection or (iii) arises from modifications of the
Product or Software not made by or authorized by Vendor which, if not made, the Product or Software would not be infringing or (iv) resides in a Product or Software which is not of Vendor’s origin and which is furnished by Customer to
Vendor for use under this Agreement; or (v) arises from adherence to instructions to apply Customer’s trademark, trade name, or other company identification. In the foregoing cases numbered (i) through (v), Customer shall defend and
indemnify Vendor, subject to the same terms and conditions and exceptions stated above with respect to Vendor’s rights and obligations under this clause. 
 The foregoing states Vendor’s entire obligation, and Customer’s sole and exclusive remedy, with respect to any claim of infringement of any patent, copyright, trade secret or other intellectual property or
proprietary right which a third party may have against Customer. 
  

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 Contract No. LNM070600KAR 
  

	1.20	CONFIDENTIAL INFORMATION 

 Recipient may use
the Confidential Information solely to fulfill its obligations under this Agreement (the “Purpose”) and will not disclose the Confidential Information to any third party, except as expressly provided herein. Recipient may disclose the
Confidential Information only to those having both a need to know to accomplish the Purpose and an obligation to protect information as required by this Agreement. In addition, Confidential Information of Discloser may also be disclosed to
Recipient’s affiliates, subcontractors and agents (provided, in the case of Vendor’s Confidential Information, they are not competitors to Vendor) which, in each case, have a need to know to accomplish the Purpose, and provided Recipient
warrants, and is liable for, such affiliate’s, subcontractor’s and agent’s compliance with the terms of this Agreement. An individual who has seen Discloser’s Confidential Information under this Agreement shall not be precluded
from working on projects for the receiving party that relate to similar subject matters whether during or after the term of this Agreement, provided that the individual does not use or make reference to the Discloser’s Confidential Information.

 Recipient’s obligation of confidentiality and restriction on use will not apply to Confidential Information if, and then only to the
extent that it is: (a) known to Recipient before receipt from Discloser; (b) generally available to the public (or becomes so) without the fault or negligence of Recipient; (c) rightfully received by Recipient from a third party
without a duty of confidentiality; or (d) independently developed by Recipient or its affiliates without any use of Discloser’s Confidential Information. 
 All copies and excerpts of the Confidential Information shall be promptly returned to Discloser upon request. Recipient may choose to destroy such copies and excerpts instead of returning them, if Recipient provides
Discloser with a written representation to such effect. 
 Nothing herein shall be construed as granting Recipient any rights, express or
implied, including without limitation any intellectual property rights, in Discloser’s Confidential Information, other than the limited right to use it to accomplish the Purpose. 
 The term “Information” or “Confidential “as used in this clause does not include Software (whether or not embodied in Firmware) or
Related Documentation for purposes of use. The use of Software and Related Documentation is governed by Article III of this Agreement. 
  

	1.21	NOTICES 

 All notices under this Agreement
shall be in writing (except where otherwise stated) and shall be addressed to the addresses set forth below or to such other address as either party may designate by notice pursuant hereto. Such notices shall be deemed to have been given when
received. 
  

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	Vendor:	  	Lucent Technologies Inc.
		  	900 North Point Parkway
		  	Alpharetta, GA 300005
		  	Attn: Contract Director
		  	Phone:	 	(770) 750-2300
		  	Fax:	 	(678) 297-6553
		
	Customer:	  	NTELOS Inc.
		  	P.O. Box 1990
		  	Waynesboro, VA 22980
		  	Attn: Sr. V.P. Operations & Engineering
		  	Phone:	 	(540) 946-3500
		  	Fax:	 	(540) 946-3599

  

	1.22	RIGHT OF ACCESS 

 Each party shall provide
the other access to its facilities reasonably required in connection with the performance of the respective obligations under this Agreement. No charge shall be made for such access. Reasonable prior notification will be given when access is
required. Neither party shall require releases of any personal rights in connection with visits to its premises. 
  

	1.23	RELATIONSHIP OF THE PARTIES 

 Each Party is
an independent contractor and is not an agent of the other. This Agreement does not create an agency, partnership, joint venture, or similar business relationship between the parties. 
  

	1.24	SUBCONTRACTORS 

 Nothing shall preclude a
Party from employing a subcontractor in carrying out its obligations under this Agreement. A Party shall give written notice to the other Party prior to the use of a subcontractor. A Party’s use of such subcontractor shall not release the Party
from its obligations under this agreement. Notwithstanding the foregoing, Vendor may subcontract all or part of its performance under this Agreement to any of its affiliates or any third party without the need to obtain consent or written notice of
the Customer, provided that Vendor is responsible for the acts or omissions of such subcontractor while performing under this Agreement. 
  

	1.25	LIMITATION OF LIABILITY 

 EXCEPT FOR AMOUNTS
OWED BY VENDOR TO CUSTOMER PURSUANT TO THE UNPLANNED OUTAGE SECTION 1.35, VENDOR’S MAXIMUM CUMULATIVE LIABILITY ARISING OUT OF OR RELATING TO THIS AGREEMENT, WHETHER BASED UPON WARRANTY, CONTRACT, TORT, OR OTHERWISE, SHALL NOT EXCEED $2,000,000
(TWO MILLION DOLLARS). VENDOR’S MAXIMUM CUMULATIVE LIABILITY FOR PATENT AND COPYRIGHT INFRINGEMENT IN SECTION 1.21 SHALL NOT EXCEED $4,000,000 (FOUR MILLION DOLLARS). 
  

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 NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, NEITHER VENDOR NOR CUSTOMER (OR THEIR AFFILIATES OR
SUPPLIERS) SHALL BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS, LOSS OF DATA, OR LOSS OF USE DAMAGES, ARISING OUT OF OR RELATING TO THIS AGREEMENT EVEN IF THE OTHER PARTY
WAS AWARE OF OR WAS NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. 
  

	1.26	FORCE MAJEURE 

 In no event shall either
Party have any claim or right against the other Party for any delay or failure of performance by such other Party if such delay or failure of performance is caused by or the result of causes beyond the reasonable control of such other Party, its
suppliers and subcontractors including, but not limited to, act of God, fire, flood, earthquake, the elements or other natural catastrophe; laws, orders, rules, regulations, directions or actions of governmental authorities having jurisdiction over
the subject matter of this Agreement or any civil or military authority; strike, labor dispute, embargo, explosion, water; the condemnation or taking by eminent domain of any of a Party’s facilities used in connection with the Products,
national emergency, insurrection, riot, act of terrorism or war; inability to secure raw materials or transportation facilities; acts or omissions of carriers or suppliers not under the control of such other party; or other similar occurrence.

  

	1.27	ASSIGNMENT 

 Neither party shall assign its
rights or delegate its duties (in whole or in part) under this Agreement except to an Affiliate without the other party’s prior written consent. The assigning party shall give the non-assigning party prompt written notice of the assignment. Any
purported assignment in contravention of this paragraph is void. 
  

	1.28	NO PUBLICITY 

 Each party agrees to submit to
the other party, for prior written approval to be granted or withheld in that other party’s sole discretion, all press releases, other publicity matters, and any marketing materials in which such other party’s name or mark, or the name or
mark of any of its affiliates, is mentioned and any language from which said name or mark may be reasonably inferred. 
  

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	1.29	NON-SOLICITATION 

 During the term of the
Agreement, neither Party shall solicit for employment or hire any employee of the other Party with whom that Party has had contact or who became known to that Party in connection with the performance of this Agreement; provided, however, that the
foregoing provision will not prevent a Party from employing any such person who (i) on his or her own initiative and without any direct or indirect solicitation or encouragement, contacts a Party following his or her termination without cause
from the other Party or (ii) responds to a public or general solicitation not targeted at such person. 
  

	1.30	SURVIVAL OF OBLIGATIONS 

 The parties’
rights and obligations which, by their nature, would continue beyond the termination, cancellation, or expiration of this Agreement, shall survive such termination, cancellation, or expiration. 
  

	1.31	SEVERABILITY 

 In the event that any
provision of this Agreement or portions thereof is held to be invalid or unenforceable, the remainder of this Agreement will remain in full force and effect. 
  

	1.32	WAIVER 

 If either Party fails to enforce any
right or remedy available under this Agreement, that failure shall not be construed as a waiver of any right or remedy with respect to any other breach or failure by the other Party. 
  

	1.33	CUSTOMER RESPONSIBILITY 

 Customer shall, at
no charge to Vendor, provide Vendor with such electrical and environmental conditions, technical information, data, technical support, or assistance as may reasonably be required by Vendor to fulfill its obligations under this Agreement, any
subordinate agreement, or order. If Customer fails to provide the required conditions, information, data, support, or assistance, Vendor shall be discharged from any such obligation. 
  

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	1.34	DISPUTE RESOLUTION 

 Senior Management of
either Party may, upon notice and within five (5) business days of receipt of a notice from the other Party elect to utilize a non-binding resolution procedure whereby each presents its case before a panel consisting of two senior executives of
each of the Parties and, if such executives can agree upon such an individual, a mutually acceptable neutral advisor. If a Party elects to use the procedure set forth in this clause, the other Party shall participate. The hearing shall occur no more
than ten (10) business days after a Party serves notice to use the procedure set forth in this clause. If the matter cannot be resolved by such senior executives, the neutral advisor, if one has been agreed upon, may be asked to assist such
senior executives in evaluating the strengths and weaknesses of each Party’s position on the merits of their dispute. The Parties shall each bear their respective costs incurred in connection with the procedure set forth in this clause, except
that they shall share equally the fees and expenses of the neutral advisor, if any, and the cost of the facility for the hearing. 
  

	1.35	UNPLANNED OUTAGES 

 For the purposes of this
section, a “Critical Fault” means any unplanned system outage which results in the unavailability, during normal commercial service, of more than ten percent (10%) of the call processing capability of a Product or Software that is a
major network element, and which is due to failure of Vendor’s Products and Software obtained from and installed by Vendor to conform to their Specifications. Events or activities outside of or beyond Vendor’s control, including commercial
or generator power failures or events of Force Majeure, shall not be deemed to be a Critical Fault. Vendor planned events such as maintenance and upgrade activities are excluded from Critical Faults to the extent that the time for such planned event
does not exceed Customer’s agreed to maintenance window. 
 During the applicable warranty period for the affected major network
element, and provided that the affected element is covered by a maintenance program, for each single occurrence of a Critical Fault of a major network element, to the extent caused solely by Vendor or Vendor’s Products or Software, Vendor shall
credit Customer towards future purchases (or licenses) of Vendor’s Products or Licensed Materials using the method for calculating such credit as described below: 
 Determine exact duration of the Critical Fault outage in minutes (hereinafter referred to as the “Critical Fault Duration” or “CFD”). The CFD shall start upon Customer’s notification of such
unplanned outage to Vendor and shall continue until the Critical Fault ceases. Excluded from the CFD shall be the travel time of Customer’s maintenance personnel when travel is necessary to reach a defective Major Network Element. 

Calculate Lost Minutes of Use: Using Customer data for the same time of day or night as the CFD occurred during the three weeks prior to
the Critical Fault, derive the average number of minutes that the affected Major Network Element was in use during such periods. Hereinafter this will be referred to as “Average Minutes of Use” or “AMOU’s”. 

  

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 The billable rate for AMOU’s is Four Cents ($.04) (hereinafter referred to as the “Billable
Rate” or “BR”). 
 Customer and Vendor will mutually agree on the percentage of call processing impact within
two (2) weeks after the occurrence of a Critical Fault (hereinafter referred to as “Call Processing Impact” or “CPI”). 
 Formula for calculating credit owed to customer: 
 AMOU’s x BR x CPI = Credit Owed to Customer 
 When a Critical Fault is due to errors jointly attributable to Customer and Vendor, any credits owed shall be reduced by the percentage of responsibility
attributable to Customer and by the amount of Vendor’s expenses associated with resolving that portion of the Critical Fault attributable to Customer. 
 In the event that data is not available to calculate the credit owed for a Critical Fault, Customer and Vendor will work in good faith to mutually agree in writing on an alternative method for calculating the credit
due customer. 
 Notwithstanding anything to the contrary in this Section, if Customer fails to purchase and maintain the Software Updates,
no damages shall apply. Furthermore, Vendor’s cumulative liability for all Critical Faults that occur during each year of the term of this Agreement shall be limited to Five Hundred Thousand Dollars ($500,000.00). Credits not used before the
expiration or termination of this Agreement shall be null and void. Customer’s exclusive remedy, and Vendor’s entire liability, for damages related to Critical Faults shall be the credits described above. 
 Customer shall give Vendor prompt written notice of any claim. Any action or proceeding against Vendor must be brought within 24 months after the cause
of action accrues. 
  

	1.36	CUSTOMER OBLIGATIONS 

 Customer represents
and warrants that it is buying the Products and licensing the Software for its own internal use and not for resale. Customer acknowledges that the transfer and use of Products, Software, and technical information and the performance of Services
outside the United States are subject to U.S. export laws and regulations. Customer shall not use, distribute, transfer, or transmit the Products, Software, or technical information (even if incorporated into other products) except in compliance
with U.S. export laws and regulations. At Vendor’s request, Customer shall sign written assurances and other export-related documents as may be required for Vendor to comply with U.S. export regulations. 
  

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	1.37	AMENDMENT 

 Any modification or addition to
this Agreement shall be in writing and signed by authorized representatives of both Parties. In case of any conflict between the provisions of this Agreement and of an Addendum (including its attachments), the provisions of the Addendum shall take
precedence. 
  

	1.38	CHOICE OF LAW 

 The laws of the State of New
York as applied to contracts formed and intended to be performed within such state, without regard to principles of conflicts of law, govern all matters arising out of or related to this Agreement, including, without limitation, its construction,
interpretation, performance and enforcement. 
  

	1.39	HEADINGS 

 The captions or headings in this
Agreement are strictly for convenience and shall not be considered in interpreting it or as amplifying or limiting any of its content. 
  

	1.40	COUNTERPARTS 

 This Agreement may be executed
in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 
  

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 Contract No. LNM070600KAR 
  

 2. ARTICLE II 
 PROVISIONS APPLICABLE TO THE PURCHASE OF PRODUCTS 
  

	2.1	GENERAL 

 The provisions of this Article II
shall be applicable to the purchase of Products from Vendor. If Software is also to be licensed for Use on a purchased Product, or if a Product is also to be engineered or installed by Vendor, the provisions of Articles III and IV shall also be
applicable. 
  

	2.2	PRODUCT AVAILABILITY & DISCONTINUANCE 

 Where
possible, Vendor shall notify Customer within a reasonable period of time, before Vendor discontinues accepting orders for a Vendor’s Manufactured Product sold under this Agreement. Vendor commits to Customer that Vendor will support the
Vendor’s Products with parts availability, and hardware and software support in accordance with the Agreement for a minimum of five (5) years after the effective date of discontinuance of each type of such Product. During the term of the
Agreement, where possible, Vendor agrees to give Customer not less than one (1) year’s prior written notice of Vendor’s intent to discontinue any Product being supplied by Vendor to Customer under the Agreement. Such notice does not
apply in instances where Vendor’s suppliers have not provided Vendor with the requisite notice or in the event of a shutdown of the manufacturing facilities, or in the event where Vendor has made a compatible alternate product or item of
product available to Customer. In such instances the notice period shall be as much as is reasonably possible under the circumstances. 
 Further, where
Vendor offers a functionally equivalent Product for sale, the notification period may vary. The notification period does not apply in instances where the Vendor’s suppliers have not provided the Vendor with the requisite notice or in the event
of a shutdown of the manufacturing facilities or in the event where compatible alternate Products or item of Products are available to Customer. In such instances the notice period shall be as much as is reasonably possible in the circumstances.

  

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 Contract No. LNM070600KAR 
  

	2.3	DOCUMENTATION 

 Vendor shall furnish to
Customer, at no additional charge, one copy of documentation for the Products provided hereunder sufficient to operate and maintain such Products. Such documentation will be that customarily provided by Vendor to its Customers at no additional
charge. Such documentation shall be provided prior to, with, or shortly after the shipment of the Products from Vendor to Customer. Additional copies of the documentation are available at prices set forth in the Customer Price List. 
  

	2.4	PRODUCT COMPLIANCES 

 A Product furnished
hereunder shall comply, to the extent required, with the requirements of Part 24 of the Federal Communication Commission’s Rules and Regulations pertaining to personal communications services in effect upon delivery of such Product. In
addition, a Product furnished hereunder shall comply, to the extent required, with the requirements of Subpart J of Part 15 of the Federal Communication Commission’s Rule and Regulations in effect upon delivery of such Product, including those
sections concerning the labeling of such Product and the suppression of radio frequency and electromagnetic radiation to specified levels. Vendor makes no undertaking with respect to harmful interference caused by (i) installation, repair,
modification or change of Products or Software by other than Vendor; (ii) Products being subjected to misuse, neglect, accident or abuse by other than Vendor; (iii) Products or Software being used in a manner not in accordance with
operating instructions or in a suitable installation environment or operations of other equipment in the frequency range reserved for Customer within the Licensed Area. 
 Vendor assumes no responsibility under this clause for items not specified or supplied by Vendor. Type acceptance or certification of such items shall be the sole responsibility of Customer. 
  

	2.5	PRODUCT CHANGES 

 Prior to the shipment of a
Product, Vendor may at any time make changes in a Product furnished pursuant to this Agreement, or modify the drawings and published specifications relating thereto, or substitute Products of later design to fill an order, provided the changes,
modifications, or substitutions under normal and proper use do not impact upon the Form, Fit, or Function of an ordered Product as identified in Vendor’s specifications. 
  

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	2.6	SECONDARY MARKET PURCHASES 

 Customer shall
not have the right to purchase, other than directly from Vendor, any of the PCS CDMA System Products. Subject to the foregoing Customer in its sole discretion may purchase any other Vendor Products on the secondary equipment market, and Customer
shall notify Vendor at the time of such purchase. Such purchases shall not contribute to the Customer’s procurement of the Initial Order. Products purchased on the secondary market are not covered by Vendor’s warranty. Customer will be
responsible for payment to Vendor of any licensing fees for Software associated with Products purchased on the secondary market. Licensing fees for Software associated with secondary market Products will be in accordance with licensing fees paid
under this Agreement for similar type Products. 
 Notwithstanding anything contained to the contrary of the foregoing, Vendor’s
software license is not transferable for any reason; Customer shall offer Vendor the right of first refusal to buyback any Product it desires to sell on the open market; and if right of first refusal is denied, Customer shall provide written notice
to Vendor of the name and address of the purchaser of the Product, which shall not be a competitor to Vendor.  
  

	2.7	SPECIFICATIONS 

 Upon request, Vendor shall
provide to Customer, at no charge, one (1) copy of Vendor’s available commercial specifications applicable to Products orderable hereunder. Additional copies are available at the applicable price therefore. 
  

	2.8	CUSTOMER TECHNICAL SUPPORT 

 Vendor provides
Customer Technical Support for the PCS through the Customer Technical Support Organization (CTSO). The CTSO provides diagnostic center support, performance measurement and system engineering services at its then standard prices, terms and conditions
for such services. Special, unusual or customized services may be billable, depending upon the nature of the request. 
  

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 Contract No. LNM070600KAR 
  

	2.9	WARRANTY 

 The Warranty Period for Products
manufactured by Vendor is 24 months. The Warranty Period for Software manufactured by Vendor for PCS switching and base stations is 12 months. The Warranty Period begins on the date of shipment, unless Vendor installs, in which case the Warranty
Period begins on the date Vendor completes installation. Vendor warrants to Customer only that (i) during the applicable Warranty Period, Products manufactured by Vendor and purchased hereunder are free from defects in materials and workmanship
and substantially conform to Vendor’s published specifications; and (ii) during the applicable Warranty Period, Software developed by Vendor and licensed hereunder will be free from those defects which materially affect performance in
accordance with the Specifications. If, under normal and proper use, any Product or Software does not function as warranted during the applicable Warranty Period, and Customer promptly notifies Vendor in writing during the applicable Warranty Period
and follows Vendor’s instructions regarding return of such defective or non conforming Product or Software, Vendor will promptly repair the Product so that it conforms to the warranty or will promptly replace it with an equivalent Product as
specified in the “Repair and Return Process”. 
 Any Services performed by Vendor or Customer will be performed in a professional
and workmanlike manner. If Services are not performed as warranted and Vendor is notified in writing by Customer within 30 days upon completion of the date of the performance of the Service giving rise to the claim, Vendor, at its option, either
will promptly re-perform or correct the non-conforming Services or render a credit for the defective or non-conforming portion of the Services based on the original charge for the Services. 
  

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 Contract No. LNM070600KAR 
  

 Vendor shall have no obligation under the warranty to make corrections, repairs, or replacements for
defective conditions or non-conformities which result, in whole or in part, from (i) negligence of Customer, (ii) misuse by Customer or by alteration or modification of Products not authorized by Vendor or failure to apply previously
applicable Vendor-directed modifications or corrections, (iii) non-Vendor products or (iv) causes external to the Product or Software such as, but not limited to, power failure or electric power surges; (v) accident or abuse;
(vi) wiring, repairing, splicing, alteration, installation, storage or maintenance which is improper and is not performed by Vendor; or (vi) use in a manner not in accordance with the Specifications or operating instructions. In addition,
Vendor makes no warranty with respect to Products or Software which were not purchased or licensed from Vendor under this Agreement or which have had their serial numbers or month and year of manufacture removed or altered; with respect to
expendable items, including, without limitation, fuses, light bulbs, motor brushes and the like; or with respect to defects related to Customer’s data base errors. No warranty is made that Software will run uninterrupted or error free. Warranty
does not include: Vendor’s assisting in diagnostic efforts; access to Vendor’s technical support web sites databases or tools; product integration; on-site assistance; or product documentation updates. These Services are available either
during or after the warranty period at Vendor’s published prices. With respect to Products or Software or partial assembly of Products furnished by Vendor but not manufactured by Vendor, Vendor hereby assigns to Customer, to the extent
permitted, the warranties given to Vendor by its vendors of such items. 
 THESE WARRANTIES AND LIMITATIONS ARE CUSTOMER’S EXCLUSIVE WARRANTIES AND SOLE
REMEDIES AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT ARE DISCLAIMED. CUSTOMER’S SOLE AND
EXCLUSIVE REMEDY, AND VENDOR’S SOLE OBLIGATION HEREUNDER, SHALL BE TO REPAIR, REPLACE, OR CREDIT AS SET FORTH ABOVE. 
  

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 3. ARTICLE III 
 PROVISIONS APPLICABLE TO THE LICENSING OF SOFTWARE 
  

	3.1	GENERAL 

 The provisions of this Article
apply to the granting of licenses pursuant to this Agreement by Vendor to Customer for Licensed Materials. 
  

	3.2	LICENSE 

 Upon delivery of Licensed
Materials, but subject to payment of all applicable license fees including, but not limited to, any continuing up-date fees, Vendor grants to Customer a personal, nontransferable, and nonexclusive license pursuant to this Agreement to Use Licensed
Materials in the Territory with either the Designated Processor or temporarily on any comparable replacement, if the Designated Processor becomes inoperative, until the Designated Processor is restored to operational status. Customer shall Use
Licensed Materials only for its own internal business operation. 
 The license grants Customer no right to and Customer will not sublicense
such Licensed Materials, and Customer shall not directly or indirectly: (a) modify, copy, transmit, alter, merge, decompile, disassemble, reverse engineer or adapt any portion of the Licensed Material, (b) encumber, time-share, rent or
lease the rights granted herein; (c) manufacture, adapt, create derivative works of, localize, port or otherwise modify any Licensed Material , (d) disclose or otherwise make available the Licensed Material to any third party or
(e) enable any Software features or capacity which Vendor licenses as separate products without Vendor’s prior written consent. 
  

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 At Vendor’s request and upon reasonable prior written notice, Vendor will have the right to
inspect and audit Customer’s compliance with this Section during normal business hours, provided such audit does not interfere with Customer’s normal network operations. Customer will cooperate with the audit and will grant assistance and
access to applicable records, materials, personnel, Products and Licensed Materials. In addition, Customer will provide remote access to its systems to Vendor to enable Vendor to electronically audit Customer’s compliance with the Section and
Agreement. If an audit reveals that Customer possesses or at any time possessed unlicensed copies of any Licensed Materials, or use of any Licensed Materials beyond the licensed features or capacity restrictions or beyond the terms stated herein,
then Customer shall pay Vendor the applicable license fees (plus interest) and the costs incurred in the audit immediately upon request. If an audit is performed and Customer has inadvertently activated a feature, Customer shall not be charged for
such use should Customer wish to deactivate it. However, in the event Customer desires to maintain the feature, Customer shall be charged Vendor’s fee for such feature, which shall not be retroactive. 
 If the terms set forth in this Section differ from the terms of any license agreement packaged or otherwise provided with the Licensed Materials
(“an Additional License”), the terms of the Additional License shall govern to the extent that terms of the Additional License are inconsistent with the terms set forth in this Section. Vendor’s licensors shall be third party
beneficiaries of the Agreement with respect to their Licensed Materials. 
  

	3.3	TITLE, RESTRICTIONS AND CONFIDENTIALITY 

 All
Licensed Materials (whether or not part of Firmware) furnished by Vendor, and all copies thereof made by Customer, including translations, compilations, and partial copies are the property of Vendor. 
 Except for any part of such Licensed Materials which is or becomes generally known to the public through acts not attributable to Customer, Customer
shall hold such Licensed Materials in confidence, and shall not, without Vendor’s prior written consent, disclose, provide, or otherwise make available, in whole or in part, any Licensed Materials to anyone, except to its employees having a
need- to-know. Customer shall not copy Software embodied in Firmware. Customer shall not make any copies of any other Licensed Materials except Customer may make one copy of any Licensed Material for backup and archival purposes provided that
Customer shall reproduce and include any Vendor copyright and proprietary notice on all such copies of the Licensed Materials. Customer shall also mark all media containing such copies with a warning that the Licensed Materials are subject to
restrictions contained in an agreement between Vendor and Customer and that such Licensed Materials are the property of Vendor. Customer shall maintain records of the number and location of all copies of the Licensed Materials. 
 Customer shall take appropriate action, by instruction, agreement, or otherwise, with the persons permitted access to the Licensed Materials so as to
enable Customer to satisfy its obligations under this Agreement. 
  

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 When the Licensed Materials are no longer needed by Customer, or if Customer’s license is
canceled or terminated, Customer shall return all copies of such Licensed Materials to Vendor or follow written disposition instructions provided by Vendor. 
  

	3.4	CHANGES IN LICENSED MATERIALS 

 Prior to
shipment, Vendor may at any time modify the specifications relating to its Licensed Materials. Vendor may substitute modified Licensed Materials to fill an order, provided the modifications, under normal and proper Use, do not materially adversely
affect the Use, Function, or performance of the ordered Licensed Materials. Unless otherwise agreed, such substitution shall not result in any additional charges to Customer with respect to licenses for which Vendor has quoted fees to Customer.

  

	3.5	MODIFICATIONS TO SOFTWARE 

 Customer may
request Vendor to make changes to Vendor’s Software. Upon receipt of a document describing in detail the changes requested by Customer, Vendor will respond in writing to Customer within ninety (90) days. If Vendor agrees to undertake such
modifications, the response shall quote a proposed delivery date and a fee for a license under such modified Software. 
  

	3.6	MODIFICATION BY CUSTOMER 

 Customer is not
granted any right to modify Software furnished by Vendor under this Agreement. 
  

	3.7	RELATED DOCUMENTATION 

 Vendor shall furnish
to Customer, at no additional charge, one copy of the Related Documentation for Software furnished by Vendor pursuant to this Agreement. Such Related Documentation will be that customarily provided by Vendor to its Customers at no additional charge.
Such Related Documentation shall be provided prior to, with, or shortly after provision of Software by Vendor to Customer. Additional copies of the Related Documentation are available at prices set forth in the Customer Price List. 
  

	3.8	CANCELLATION OF LICENSE 

 Notwithstanding
anything contrary herein to the foregoing, if Customer fails to comply with any of the material terms and conditions of this Agreement and such failure continues beyond thirty (30) days after receipt of written notice thereof by Customer,
Vendor, upon written notice to Customer, may cancel the Agreement and any affected license for Licensed Materials. Upon such termination, Customer will immediately pay all license fees outstanding, cease use of all Licensed Materials return or, at
Vendor’s request, delete all copies of the Licensed Materials in Customer’s possession, and certify compliance with all of the obligations in this paragraph to Vendor in writing. 
  

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 Contract No. LNM070600KAR 
  

	3.9	TAXES APPLICABLE TO SOFTWARE 

 Notwithstanding clause TAXES in Article I of this Agreement, Vendor shall not bill, collect, or remit any state or local sales or use tax with respect to the license of Software under this Agreement, or with respect to the performance of
Services related to such software, which Customer represents to Vendor is not properly due under Customer’s interpretation of the law of the taxing jurisdiction, if (1) Customer submits to Vendor a written explanation of the authorities
upon which Customer bases its position that the license or performance of Services is not subject to sales or use tax, and (2) Vendor agrees that there is authority for Customer’s position, provided, however, that Customer shall hold
Vendor harmless for all costs and expenses (including, but not limited to, taxes and related charges payable under clause TAXES, and attorney’s fees) arising from the assertion by a taxing authority that the license of, or the performance of
Services with respect to, the Software was subject to state or local sales or use tax. 
  

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 Contract No. LNM070600KAR 
  

 4. ARTICLE IV 
 PROVISIONS APPLICABLE TO ENGINEERING, 
 INSTALLATION, AND OTHER
SERVICES 
  

	4.1	GENERAL 

 The provisions of this Article IV
shall be applicable to the furnishing by Vendor of Services other than Services furnished pursuant to any other Article of this Agreement. 
  

	4.2	CONDITIONS OF INSTALLATION AND OTHER SERVICES PERFORMED ON CUSTOMER’S SITE 

 Customer understands that Vendor is in the business of providing services drawing upon the knowledge, understanding and expertise Vendor has gained in the
course of working with many varied customers. Notwithstanding anything in this Agreement to the contrary, nothing herein shall be deemed to assign rights to or limit Vendor’s use of any information, know-how or knowledge to the extent it does
not contain Customer’s Confidential Information. 
 Customer hereby grants to Vendor a non-exclusive, personal, royalty-free and
non-transferable license to make, have made, use, execute, perform, copy (as reasonably necessary), sublicense, display, modify and make derivative works under any and all intellectual property rights owned by Customer to the extent necessary for
furnishing Services and deliverables pursuant to the statements of work under this Agreement. Except as expressly set forth in this Agreement, no right or license is either granted or implied by either party to the other with respect to any
technical or business information, or with respect to rights in any patents, trademarks, copyrights, trade secrets, mask work protection rights, and other intellectual property. Subject to Customer’s right, title and interest in Customer’s
Confidential Information, any and all inventions, derivative works, improvements, developments or innovations made, conceived or devised by Vendor (and its contractors or consultants, as the case may be) in the course of performing Services under
this Agreement, are (and shall be) the sole and exclusive property of Vendor, including but not limited to all rights, title and interest to patents, copyrights, trademarks and trade secrets therein. 
  

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 Contract No. LNM070600KAR 
  

	4.2.1	ITEMS PROVIDED BY CUSTOMER 

 Except as the
parties may have otherwise agreed for Turnkey Services, as set forth in this Agreement or in other agreements of the parties, Customer will be responsible for furnishing the following items (as required by the conditions of the particular
installation or other on-site Service, hereinafter collectively referred to as the “Service”) at no charge to Vendor and these items will not be included in Vendor’s price for the Service. Vendor’s representative shall have the
right to inspect the site prior to Service start date. Should Customer fail to furnish any of such items for which it is responsible after Vendor provides Customer notice, Vendor may furnish such items and charge Customer for them in addition to the
prices otherwise charged by Vendor for the Service. Vendor will provide pricing to the Customer in advance of the charges. 
 Regulatory
Commission Approvals—Prior to Service start date, obtain such approvals, licenses, permits, tariffs and/or other authorities from the Federal Communications Commission and state and local public utilities commissions as may be necessary for
construction and operation of a Personal Communications Services System. 
 Easements, Permits and Rights-of-Way—Prior to Service
start date, provide all rights-of-way, easements, licenses to come upon land to perform the Service, permits and authority for installation of Products and other items; permits for opening sidewalks, streets, alleys, and highways; and construction
and building permits. 
 Access to Building and Work Site—Allow employees of Vendor and it subcontractors free access to premises
and facilities at all hours during the scheduled Service or at such other times as are requested by Vendor. Customer shall obtain for Vendor’s and its subcontractors’ employees any necessary identification and clearance credentials to
enable Vendor and its subcontractors to have access to the work site. 
 General Building Conditions—When Customer provides or
arranges for a third party to provide facilities or structures for PCS installation services, Customer shall prior to Service start date: 
  

	 	a.	Consult with Vendor and provided Vendor reasonably requests additional information regarding a site, Customer shall provide Vendor with site surveys, blueprints, and any other
engineering or architectural documents reasonably necessary to assist Vendor in determining the structural soundness of a site. Any costs associated with such determination shall be borne by Customer; 

  

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 Contract No. LNM070600KAR 
  

	 	b.	Take such action as may be necessary to insure that the premises will be dry and free from dust and Hazardous Materials, including but not limited to asbestos, and in such condition
as not to be injurious to Vendor’s or its subcontractors’ employees or to the materials to be installed. Prior to commencement of the Services and during the performance of the Service, Customer shall, if requested by Vendor, provide
Vendor with sufficient data to assist Vendor’s supplier in evaluating the environmental conditions at the work site (including the presence of Hazardous Materials). The price quoted by Vendor’s supplier for the Service does not include the
cost of removal or disposal of the Hazardous Materials from the work site. Customer is responsible for removing and disposing of the Hazardous Materials, including but not limited to asbestos, prior to commencement of the Service.

 Sensitive Equipment—Prior to commencement of the Service, inform Vendor of the presence of any sensitive
equipment at the work site (e.g., equipment sensitive to static electricity or light). 
 Repairs to Buildings—Prior to Service
start date, make such alterations and repairs as are necessary for proper installation of items to be installed. 
 Openings in
Buildings—Prior to Service start date, furnish suitable openings in buildings to allow the items to be installed to be placed in position, and provide necessary openings and ducts for cable and conductors in floors and walls as designated
on engineering drawings furnished by Vendor. 
 Electrical Current, Heat, Light and Water—Provide electric current for charging
storage batteries and for any other necessary purposes with suitable terminals where work is to be performed; provide temperature control and general illumination (regular and emergency) in rooms in which work is to be performed or Products or other
items stored, equivalent to that ordinarily furnished for similar purposes in a working office; provide exit lights; provide water and other necessary utilities for the proper execution of the Service. 
 PCS Utility Requirements—Negotiate with the power and telephone companies for installation of the power and telephone facilities necessary to
proper operation of the Products and/or other items being installed. The type and quantity of such facilities shall be subject to Vendor’s reasonable approval. Customer shall have the telephone company provide, place, install, extend and
terminate telephone facilities into the PCS System; line up and test the telephone company facilities outside and inside the PCS System; and provide to Vendor copies of the test results prior to Vendor’s commencing integration testing of the
PCS System. 
 Material Furnished by Customer—New or used material furnished by Customer shall be in such condition that it
requires no repair and no adjustment or test effort in excess of that normal for new equipment. Customer assumes all responsibility for the proper functioning of such material. Customer shall also provide the necessary information for Vendor to
properly install such material. 
 Furniture—provide and install all furniture. 
  

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 Contract No. LNM070600KAR 
  

 Floor Space and Storage Facilities—Provide, during progress of the Service, suitable and
easily accessible floor space and storage facilities (a) to permit storing major items of Products and other material closely adjacent to where they will be used, (b) for administrative and luncheon purposes, (c) for Vendor’s and
its subcontractors’ employees’ personal effects, and (d) for tools and property of Vendor and its subcontractors. Where the Service is to be performed outside of a building or in a building under construction, Customer shall, in
addition to the above requirements, as appropriate, permit or secure permission for Vendor and its subcontractors to maintain at the work site, storage facilities (such as trailers) for Products, materials and other items and for tools and equipment
needed to complete the Service. 
 Watch Service—For PCS, provide normal security (for cell sites, commercial alarms) necessary
to prevent admission of unauthorized persons to building and other areas where installation Service is performed and to prevent unauthorized removal of the Products and other items. Vendor will inform Customer as to which storage facilities at the
work site Vendor will keep locked; such storage facilities will remain closed to Customer’s surveillance. 
 Use of Available Testing
Equipment—Customer shall make available to Vendor: (1) the maintenance test facilities which are imbedded in equipment to which the Product or other item being installed will be connected or added, and (2) meters, test sets, and
other portable apparatus that is unique to the item being installed. Vendor’s use of such test equipment shall not interfere with the Customer’s normal equipment maintenance functions. 
 Hazardous Materials Cleanup—At the conclusion of the Service, Customer shall be responsible for the cleanup, removal, and proper disposal of
all Hazardous Materials present at Customer’s premises, except if the Hazardous Material is a result of Work being completed by Vendor. 
 Access to Existing Facilities—Customer shall permit Vendor reasonable use of such portions of the existing plant or equipment as are necessary for the proper completion of such tests as require coordination with existing
facilities. Such use shall not interfere with the Customer’s normal maintenance of equipment. 
 Grounds—Customer shall
provide access to suitable and isolated building ground as required for Vendor’s standard grounding of equipment. Where installation is outside or in a building under construction, Customer shall also furnish lightning protection ground.

 Requirements for Customer Designed Circuits—Customer shall furnish information covering the proper test and readjust
requirements for apparatus and requirements for circuit performance associated with circuits designed by Customer or standard circuits modified by Customer’s drawings. 
 Through Tests and Trunk Tests—Customer shall make required through tests and trunk tests to other offices after Vendor provides its notice of
completion or notice of advanced turnover. 
  

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 Contract No. LNM070600KAR 
  

	4.2.2	ITEMS TO BE FURNISHED BY VENDOR 

 The
following items will be furnished by Vendor (if required by the conditions of the particular Service) and the price thereof is included in Vendor’s price for Service: 
 Protection of Equipment and Building—Vendor shall provide protection for Customer’s equipment and buildings during the performance of the Service and in accordance with Vendor’s standard
practices. 
 Method of Procedure—Vendor shall prepare a detailed Method of Procedure (“MOP”) before starting work on
live equipment. Customer shall review the MOP and any requested changes shall be negotiated. Customer shall give Vendor written acceptance of the MOP prior to start of the work. 
 The following items will be furnished by Vendor if requested by Customer, but Customer will be billed and shall pay for them in addition to
Vendor’s standard or firm quoted price for the Services: 
 Protection of Buildings and Equipment—Vendor may provide
protection of buildings and equipment in accordance with special practices of Customer differing from Vendor’s standard practices. 
 Maintenance—Maintenance of Products, Software and other items from completion of installation until date of acceptance. 
 Locally Purchased Items—Purchase of items indicated by Vendor’s specifications as needing to be purchased locally. 
 Readjusting Apparatus—Vendor may provide readjustment (in excess of that normally required on new apparatus) of apparatus associated with relocated or rewired circuits. 
 Cross-Connections (Other than to Outside Cable Terminations)—Vendor may run or rerun permanent cross-connections in accordance with revised
cross-connection lists furnished by Customer. 
 Handling, Packing, Transportation and Disposition of Removed and Surplus Customer
Equipment—Vendor may pack, transport, and dispose of surplus and removed Customer equipment as agreed by the parties. 
 Premium
Time Allowances and Night Shift Bonuses—Vendor may have its Services personnel work premium time and night shifts to the extent that Vendor may deem such to be necessary to effect the required coordination of installing and testing
operations or other Services because of Customer’s requirements. 
 Emergency Lighting System—Vendor may provide new
emergency lighting system (other than the original ceiling mounted stumble lighting) to satisfy illumination and safety needs of Products of certain heights. 
  

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 Contract No. LNM070600KAR 
  

	4.3	WORK DONE BY OTHERS 

 Work done at the site
by Customer or its other vendors or contractors shall not interfere with Vendor’s performance of the installation or other Services. If Customer or its other vendors or contractors fail to timely complete the site readiness or if
Customer’s or its other vendors or contractors’ work interferes with Vendor’s performance, the scheduled completion date of Vendor’s Services under this agreement shall be extended as necessary to compensate for such delay or
interference. 
  

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 Contract No. LNM070600KAR 
  

 5. ARTICLE V 
 ENTIRE AGREEMENT AND EXECUTION 
  

	5.1	ENTIRE AGREEMENT 

 This Agreement constitutes
the entire agreement, and supersedes all prior oral and written understandings, between the parties regarding the subject matter hereof. 
 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives on the date(s) indicated. 
  

									
	NTELOS Inc.	 	 	 	LUCENT TECHNOLOGIES Inc.
					
	By:	 	  
	 		 	By:	 	  

	Name:	 	James S. Quarforth	 		 	Name:	 	Gerard Cafaro
	Title:	 	Chief Executive Officer	 		 	Title:	 	Sales Vice President
	Date:	 	August 3, 2007	 		 	Date:	 	August 3, 2007

  

 39Employment Agreement

 Exhibit 10.1 
 JOSEPH C. CAPEZZA 
 EMPLOYMENT AGREEMENT 
 This EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into as of October 9, 2007, by and between Health Net, Inc., a Delaware corporation
(the "Company"), with its principal place of business located at 21650 Oxnard Street, Woodland Hills, California 91367, and Joseph C. Capezza ("Executive"). 
 RECITALS 
 WHEREAS, the Company desires to employ Executive and Executive desires to render services
to the Company as an employee; and 
 WHEREAS, the Company and Executive are entering into this Agreement to establish the terms and
conditions of the employment relationship. 
 NOW, THEREFORE, in consideration of the following covenants, conditions and promises contained
herein, and other good and valuable consideration, the Company and Executive hereby agree as follows: 
 1.    Duties
and Salary. 
 A.    Duties.  Executive’s employment with the Company shall commence on
November 1, 2007 (the “Effective Date”) and Executive’s title will be Executive Vice President & Chief Financial Officer. Executive shall report directly to the President and Chief Executive Officer of the Company.
Executive’s duties and responsibilities are to provide executive leadership, infrastructure, processes and management of the Company’s Finance organization, but the Company reserves the right to assign Executive other duties as needed and
to change Executive’s duties from time to time on reasonable notice, based on Executive’s skills and the needs of the Company. 
 B.    Salary.  Executive will be paid a base salary at the annual rate of $550,000, which salary will be paid on a pro-rated bi-weekly basis, less applicable withholdings ("Base Salary"), covering all
hours worked. Generally, Executive’s Base Salary will be reviewed annually, but the Company reserves the right to change Executive’s compensation from time-to-time. Pursuant to the charter of the Compensation Committee of the
Company’s Board of Directors (the “Committee”), any such adjustment to Executive’s compensation must be made with the approval of the Committee and, in the event that Executive constitutes one of the top two (2) highest paid
executive officers of the Company, with the ratification of the Company’s Board of Directors. 
 C.    Engagement
Bonus.  Executive will receive an engagement bonus in the amount of $350,000 payable within thirty (30) days of the Effective Date. Executive must be actively employed and on the Company payroll at the time the bonus is paid. If
Executive voluntarily Terminates (as defined below) employment with the Company or if the Company Terminates (as defined below) Executive’s employment for Cause within the first twenty-four 

  

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(24) months of employment, Executive will be required to repay a prorated portion of the engagement bonus to the Company based on the number of months
Executive has been employed by the Company as of the date of such Termination. 
 D.    Disclosure of Personal
Compensation Information.  As an “executive officer” of the Company (as such term is defined in the rules and regulations of the Securities and Exchange Commission (“SEC”)), information regarding Executive’s
employment arrangements with the Company, including, among other things, the terms of this Agreement and any stock option agreement, restricted stock agreement, restricted stock unit agreement, performance share agreement and/or severance agreement
Executive enters into with the Company from time to time (collectively, “Personal Compensation Information”), may be disclosed in filings with the SEC, the New York Stock Exchange (“NYSE”) and/or other regulatory organizations
upon the occurrence of certain triggering events. Such triggering events include, but are not limited to, the execution of this Agreement and any amendments thereto, changes in Executive’s Base Salary, any annual incentive payment (whether in
the form of cash or equity) awarded to Executive and the establishment of performance goals under the Company’s incentive plans. Executive’s execution of this Agreement will serve as Executive’s acknowledgement that Executive’s
Personal Compensation Information may be publicly disclosed from time to time in filings with the SEC, NYSE or otherwise as required by applicable law. 
 2.    Adjustments and Changes in Employment Status.  Executive understands that the Company reserves the right to make personnel decisions regarding Executive’s employment,
including, but not limited to, decisions regarding any promotion, salary adjustment, transfer or disciplinary action, up to and including Termination (as defined below), consistent with the needs of the business of the Company; provided,
however, that those decisions do not violate or alter any of the terms of this Agreement. 
 For purposes of this Agreement, the
capitalized terms “Termination” and “Terminate,” shall mean Executive’s Separation from Service (as defined below) from the Company. A “Separation from Service” shall have the meaning ascribed
to such term in Treasury Regulations promulgated under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), from time to time and other publications of the Internal Revenue Service published in the Internal
Revenue Bulletin from time to time. 
 3.    Protection of Proprietary and Confidential
Information.  Executive agrees that Executive’s employment creates a relationship of confidence and trust with the Company with respect to Proprietary and Confidential Information (as defined below) of the Company learned by
Executive during Executive’s employment. 
 A.    Except as may be required of the Executive by law, Executive
agrees not to directly or indirectly use or disclose any of the Proprietary and Confidential Information of the Company or any of its affiliates at any time except in connection with the services Executive provides to such entities.
“Proprietary and Confidential Information” shall mean trade secrets, confidential knowledge, data or any other proprietary or confidential information of the Company or any of its affiliates, or of any customers, members, employees
or directors of any of such entities, but shall not include any information that (i) was publicly known and made generally available in the public domain prior to the time of disclosure to Executive by the 

  

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Company or (ii) becomes publicly known and made generally available after disclosure to Executive by the Company other than as a result of a disclosure
by Executive in violation of this Agreement. By way of illustration but not limitation, “Proprietary and Confidential Information” includes: (i) trade secrets, documents, memoranda, reports, files, correspondence, lists and other
written and graphic records affecting or relating to any such entity’s business; (ii) confidential marketing information including without limitation marketing strategies, customer and client names and requirements, services, prices,
margins and costs; (iii) confidential financial information; (iv) personnel information (including without limitation employee compensation); and (v) other confidential business information. 
 B.    Executive further agrees that at all times during Executive’s employment and thereafter, Executive will keep in confidence
and trust all Proprietary and Confidential Information, and that Executive will not use or disclose any Proprietary and Confidential Information or anything related to such information without the written consent of the Company, except as may be
necessary in the ordinary course of performing Executive’s duties to the Company. 
 C.    All Company property,
including, but not limited to, Proprietary and Confidential Information, documents, data, records, apparatus, equipment and other physical property, whether or not pertaining to Proprietary and Confidential Information, provided to Executive by the
Company or any of its affiliates or produced by Executive or others in connection with Executive’s providing services to the Company or any of its affiliates shall be and remain the sole property of the Company or its affiliates (as the case
may be) and shall be returned promptly to such appropriate entity as and when requested by such entity. Executive shall return and deliver all such property upon termination of Executive’s employment, and Executive may not take any such
property or any reproduction of such property upon such termination. 
 D.    Executive recognizes that the Company and
its affiliates have received and in the future will receive information from third parties which is private, proprietary or confidential information subject to a duty on such entity’s part to maintain the confidentiality of such information and
to use it only for certain limited purposes. Executive agrees that during Executive’s employment, and thereafter, Executive owes such entities and such third parties a duty to hold all such private, proprietary or confidential information
received from third parties in the strictest confidence and not to disclose it, except as necessary in carrying out Executive’s work for such entities consistent with such entities’ agreements with such third parties, and not to use it for
the benefit of anyone other than for such entities or such third parties consistent with such entities’ agreements with such third parties. 
 E.    Executive’s obligations under this Section 3 shall continue after the Termination of Executive’s employment. 
 4.    Drug Screening; Background Check; Physical Exam. 
 A.    Drug Screening.  The Company reserves the right to terminate Executive’s employment in the event Executive does not pass the Company’s drug screening test for illegal drugs. 

 

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 B.    Background Check.  The Company reserves the right to terminate
Executive’s employment in the event the background check conducted by the Company on Executive is not satisfactory to the Company in the Company’s sole discretion. The Company shall notify Executive of the results of the background check
within five (5) business days of the receipt of the same. 
 C.    Physical Exam.  Executive shall
be required, on an annual basis, to undergo a physical examination and to send evidence that Executive has undergone such exam (but in no case the results of such exam) to the Senior Vice President of Organizational Effectiveness. The Company shall
reimburse Executive for any out-of-pocket expenses relating to the physical examination that are not otherwise covered by Executive’s health insurance plan. 
 5.    Immigration Documentation.  Executive’s employment is contingent on Executive’s ability to prove Executive’s identity and authorization to work in the United
States for the Company. Executive must comply with the Immigration and Naturalization Service's employment verification requirements. 
 6.    Representations and Warranties of Executive. 
 A.    No Violation; No
Conflicts.  Executive represents and warrants to the Company that the entering into of this Agreement and Executive’s performance of Executive’s duties hereunder, will not violate any agreements with, or trade secrets of, any
other person or entity. Executive further represents and warrants that Executive does not have any relationship or commitment to any other person or entity that might be in conflict with Executive’s obligations to the Company under this
Agreement, including but not limited to outside employment, sales broker relationships, investments or business activities. Executive understands and agrees that while employed by the Company Executive is expected to refrain from engaging in any
outside activities that might be in conflict with the business interests of the Company. In addition, Executive represents and warrants to the Company that Executive has not shared with or disclosed to, and will not share with or disclose to, the
Company any proprietary or confidential information of Executive’s previous employers or any other third party. 
 B.    Legal Proceedings.  Executive represents and warrants to the Company that Executive has not been arrested, indicted, convicted or otherwise involved in any criminal or civil action or legal matter
that could affect Executive’s ability to perform Executive’s duties hereunder or that may have a negative impact on the Company, its reputation or its operations. Executive agrees, to the extent permitted by applicable law, to notify the
Company’s Senior Vice President of Organizational Effectiveness immediately in the event that Executive becomes party to any criminal or civil action or other legal matter in the future that could have an affect on the foregoing representation.

 7.    Executive Benefits. 
 A.    Employee Benefit Programs.  Executive shall be eligible to participate in the Company’s various employee benefit programs and plans in place from time to time as long as
Executive remains employed by the Company and Executive meets the applicable participation requirements. These benefit programs and plans include paid time off (“PTO”), holidays, group medical, dental, vision, term life, and short and long
term disability insurance 

  

 - 4 - 

 
and participation in the Company's 401(k) plan, tuition reimbursement plan and deferred compensation plan. The Company or its subsidiaries or affiliates may
modify, terminate or amend any benefit or plan in its discretion, retroactively or prospectively, subject only to applicable law; provided, that any such modifications, terminations and amendments are directed at rights granted to a class of
employees generally and not directed to the Executive or any specific rights granted to Executive in this Agreement. 
 B.    Required Insurance.  Executive will be covered by workers’ compensation insurance and state disability insurance, as required by state law. 
 C.    Financial Counseling Allowance.  Executive will be entitled to be reimbursed up to the amount of $5,000 per
year for documented costs incurred for personal financial counseling services provided to Executive, including tax preparation, as long as Executive remains employed by the Company. 
 D.    Incentive Bonus.  Executive will be eligible to participate in the Health Net, Inc. Executive Incentive Plan
("EIP") in accordance with the terms of the EIP, which provides Executive with a target opportunity to earn each plan year up to 80% of Executive’s Base Salary as additional compensation according to the terms of the EIP. The bonus payment will
range from 0% to 200% of target depending upon the actual results achieved, and specific, individually tailored measures will be established by the Company that must be achieved by Executive in order for Executive to be eligible to receive bonus
payments for a given plan year. It is understood that the Committee and the Company will award bonus amounts, if any, as it deems appropriate consistent with the EIP. For 2007, Executive’s incentive bonus will be guaranteed at $440,000 and
shall be paid on or before March 15, 2008. 
 E.    Relocation Benefits.  Executive’s
relocation will be covered under the Company’s Relocation Policy currently in effect. All relocation expenses not deductible under IRS regulations, except the miscellaneous spending allowance, will be “grossed up” for income tax
purposes at the supplemental federal tax rate and applicable state tax rate. In the event Executive is Terminated without Cause by the Company within the first twenty-four (24) months of employment and Executive is unable to secure new
employment with a relocation benefit within thirty (30) days of the date of such Termination, the Company shall provide Executive relocation services in an amount not to exceed $80,000 (the “Move-Back Benefit”). Executive acknowledges
and agrees that any amounts paid to Executive as part of the Move Back Benefit shall be imputed income to the Executive and Executive shall be solely responsible for any income taxes resulting there from. 
 F.    Expenses.  Subject to and in accordance with the Company's written policies for business and travel expenses,
Executive will receive reimbursement for all business travel and other out-of-pocket expenses reasonably incurred by Executive in the performance of Executive’s duties pursuant to this Agreement. 
 8.    Equity Grants. 
 A.    Initial Equity Grant.  As of Effective Date, Executive will be granted 40,000 restricted stock units of the Company’s Common Stock (the “RSUs”), which will vest and become
non-forfeitable in accordance with the terms of the restricted stock unit 

  

 - 5 - 

 
agreement to be entered into between the Company and Executive on the Effective Date. The RSUs granted to Executive will be granted under one of the
Company’s Long-Term Incentive Plans in accordance with and subject to the terms and conditions set forth in such plan and the restricted stock unit agreement executed in connection with such grant. 
 In addition, as of the Effective Date, Executive will be granted 40,000 performance shares (the “Performance Shares”) which will vest and
become non-forfeitable in accordance with the terms of the performance share agreement to be entered into between the Company and Executive on the Effective Date. The Performance Shares granted to Executive will be granted under one of the
Company’s Long-Term Incentive Plans in accordance with and subject to the terms and conditions set forth in such plan and the performance share agreement executed in connection with such grant. 
 B.    Future Equity Grants.  Any future equity grants made to Executive will be granted under one of the
Company’s Long-Term Incentive Plans, and will be subject to the terms of such plan and of the agreement executed in connection with such grant. Any future equity grants to Executive will be made at the discretion of the Committee. Executive
acknowledges and agrees that Executive will not be eligible for an annual equity grant in 2008. 
 C.    Company Stock
Ownership Requirement.  In accordance with the Executive Officer Stock Ownership Policy adopted by the Board of Directors of the Company (the “Executive Stock Ownership Policy”), Executive is required to own shares of Common
Stock of the Company having a value of three times (3x) Executive’s Base Salary in effect from time to time pursuant to this Agreement (the “Stock Ownership Requirement”). The number of shares of Common Stock Executive is
required to own will be calculated based on the average NYSE closing price per share of the Company's Common Stock (as adjusted for stock splits and similar changes to the Common Stock) for the most recently completed fiscal year of the Company.

 Using Executive’s current salary of $550,000 and a stock price of $45.34, which is the average closing price per share of the
Company’s Common Stock as of December 31, 2006, Executive’s current stock ownership requirement is 36,392 shares (“Target Amount”). The Target Amount is subject to change from time to time based on (1) changes in the
average closing sales price of the Company’s Common Stock on an annual basis and (2) any changes in Executive’s Base Salary made pursuant to and in accordance with Section 1B of this Agreement. Any shares of Company Common Stock
that Executive owns, and any restricted stock units, shares of restricted stock or performance shares of the Company that Executive owns and have vested count toward the Target Amount. Stock options, unvested restricted stock units, unvested shares
of restricted stock, unvested performance shares and shares of Common Stock gifted to others do not count toward the Target Amount. Under the Executive Stock Ownership Policy, Executive will have until four years from the Effective Date to comply
with the Stock Ownership Requirement. 
 The Committee expects that Executive will make reasonable progress toward Executive’s Stock
Ownership Requirement. Executive will be notified on an annual basis of any changes in Executive’s Target Amount. 
  

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 9.    Term of Employment.  Executive’s employment with the
Company is at the mutual consent of Executive and the Company. Nothing in this Agreement is intended to guarantee Executive’s continuing employment with the Company or employment for any specific length of time. Accordingly, either Executive or
the Company may terminate the employment relationship at any time, with or without advance notice and with or without “Cause” (as defined below). Upon Termination of Executive’s employment for any reason, in addition to any other
payments that may be payable to Executive hereunder, Executive (or Executive’s beneficiaries or estate) shall be paid (in each case to the extent not theretofore paid) within thirty (30) days following Executive’s date of Termination
(or such shorter period that may be required by applicable law): (a) Executive’s annual Base Salary through such date, (b) accrued but unused PTO, (c) reimbursable expenses incurred by Executive prior to the Termination date and
(d) amounts under any other compensatory plan, arrangement or program payment to which Executive may then be entitled. The Company acknowledges and agrees that, following the Termination of Executive’s employment for any reason, Executive
shall continue to be entitled to receive any vested benefit Executive has accrued pursuant to the Company’s 401(k) Plan and shall be entitled to all post-termination rights and benefits available to Executive under applicable law relating to
the 401(k) Plan and any other benefit plan in which Executive participated pre-Termination. This Agreement constitutes a final and fully binding integrated agreement with respect to the at-will nature of the employment relationship. 
 10.    Termination of Employment/Severance Pay. 
 A.    Termination Without Cause Not Following Change in Control.  If Executive’s employment is Terminated by the Company without “Cause” (as defined in
Section 10(D) below) at any time that is not within two (2) years after a “Change in Control” (as defined below) of Health Net, Inc., Executive will be entitled to receive, within thirty (30) days following the Termination
of Executive’s employment, provided that Executive signs, prior to the expiration of such (30) day period, a Separation Agreement, Waiver and Release of Claims substantially in the form attached hereto as Exhibit A, which is
incorporated into this Agreement by reference, (i) a lump sum cash payment equal to twenty-four (24) months of Executive’s Base Salary in effect immediately prior to the date of Executive’s Termination, and (ii) the
continuation of Executive’s medical, dental and vision benefits (as maintained for Executive’s benefit immediately prior to the date of Executive’s Termination) (the “Benefits”) for Executive and Executive’s dependents
for a period of six (6) months following the effective date of Executive’s Termination, and (iii) the continuation, under COBRA, of Executive’s Benefits for Executive and Executive’s dependents for an additional period of
eighteen (18) months, with premium payments paid by the Company on Executive’s behalf, provided, that Executive properly elects to continue those benefits under COBRA. 
 For purposes of this Agreement, “Change in Control” is defined as any of the following which occurs subsequent to the effective date of
Executive’s employment: 
 (i)    Any person (as such term is defined under Section 13(d)(3) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act")), corporation or other entity (other than Health Net, Inc. or any of its subsidiaries, or any employee benefit plan sponsored by Health Net, Inc. or any of its subsidiaries) is or
becomes the beneficial owner (as such term is defined in Rule 13d-3 under the Exchange Act) of securities of Health Net, Inc. representing twenty percent (20%) or more of the combined 

  

 - 7 - 

 
voting power of the outstanding securities of Health Net, Inc. which ordinarily (and apart from rights accruing under special circumstances) have the right
to vote in the election of directors (calculated as provided in paragraph (d) of such Rule 13d-3 in the case of rights to acquire Health Net, Inc.'s securities) (the "Securities"); 
 (ii)    As a result of a tender offer, merger, sale of assets or other major transaction, the persons who are
directors of Health Net, Inc. immediately prior to such transaction cease to constitute a majority of the Board of Directors of Health Net, Inc. (or any successor corporations) immediately after such transaction; 
 (iii)    Health Net, Inc. is merged or consolidated with any other person, firm, corporation or other entity and, as
a result, the shareholders of Health Net, Inc., as determined immediately before such transaction, own less than eighty percent (80%) of the outstanding Securities of the surviving or resulting entity immediately after such transaction:

 (iv)    A tender offer or exchange offer is made and consummated for the ownership of twenty percent
(20%) or more of the outstanding Securities of Health Net, Inc.; 
 (v)    Health Net, Inc.
transfers substantially all of its assets to another person, firm, corporation or other entity that is not a wholly-owned subsidiary of Health Net, Inc.; or 
 (vi)    Health Net, Inc. enters into a management agreement with another person, firm, corporation or other entity
that is not a wholly-owned subsidiary of Health Net, Inc. and such management agreement extends hiring and firing authority over Executive to an individual or organization other than Health Net, Inc. 
 B.    Termination Without Cause or For Good Reason Following Change in Control.  If at any time within two
(2) years after a Change in Control of Health Net, Inc. Executive’s employment is Terminated by the Company without Cause or Executive Terminates Executive’s employment for “Good Reason” (as defined below) (by giving the
Company at least fourteen (14) days prior written notice of the effective date of Termination), then Executive will be entitled to receive, within thirty (30) days following the Termination of Executive’s employment, provided
that Executive signs, prior to the expiration of such thirty (30) day period, a Separation Agreement, Waiver and Release of Claims substantially in the form attached hereto as Exhibit A, which is incorporated into this Agreement by
reference, (i) a lump sum payment equal to thirty-six (36) months of Executive’s Base Salary in effect immediately prior to the date of Executive’s Termination, and (ii) the continuation of Executive’s Benefits for
eighteen (18) months following Executive’s date of Termination, and (iii) and after expiration of such eighteen (18) months Benefits continuation period, the continuation, under COBRA, of Benefits for Executive and
Executive’s dependents for an additional period of eighteen (18) months following the effective date of Executive’s Termination with premium payments made by the Company on Executive’s behalf, provided, that Executive
properly elects to continue those benefits under COBRA, and provided, further, that in the event the Company requests, in writing, prior to such voluntary Termination by Executive for Good Reason that Executive continue in the employ
of the Company for a period of time up to 90 days following such 

  

 - 8 - 

 
Change in Control, then Executive shall forfeit such severance allowance if Executive voluntarily leaves the employ of the Company prior to the expiration of
such period of time. 
 For purposes of this Agreement, the term “Good Reason” means any of the following which occurs,
without Executive’s consent, subsequent to the effective date of a Change in Control as defined above: 
 (i)    A demotion or a substantial reduction in the scope of Executive’s position, duties, responsibilities or status with the Company, or any removal of Executive from or any failure to reelect Executive to any of
the positions (or functional equivalent of such positions) referred to in the introductory paragraphs hereof, except in connection with the Termination of Executive’s employment for Disability (as defined below), normal retirement or Cause or
by Executive voluntarily other than for Good Reason; 
 (ii)    A reduction by the Company in
Executive’s Base Salary or a material reduction in the benefits or perquisites available to Executive as in effect immediately prior to any such reduction; 
 (iii)    A relocation of Executive to a work location more than fifty (50) miles from Executive’s work
location immediately prior to such proposed relocation; provided that such proposed relocation results in a materially greater commute for Executive based on Executive’s residence immediately prior to such relocation; or 
 (iv)    The failure of the Company to obtain an assumption agreement from any successor contemplated under
Section 14 of this Agreement. 
 C.    Voluntary Termination.  Notwithstanding anything to the
contrary in this Agreement, whether express or implied, Executive may at any time Terminate Executive’s employment for any reason by giving the Company fourteen (14) days prior written notice of the effective date of Termination. In the
event that Executive voluntarily Terminates employment with the Company (except for Good Reason within two (2) years after a Change in Control of Health Net, Inc.), then Executive shall not be eligible to receive any payments or continuation of
Benefits set forth in this Section 10 other than compensation and benefits earned through the date of Termination). 
 D.    Termination by the Company for Cause.  The Company may Terminate Executive’s employment for Cause at any time with or without advance notice. In the event of such Termination, Executive will
not be eligible to receive any of the payments set forth in Section 10(A) or 10(B) above. For purposes of this Agreement, a Termination for “Cause” is defined as: (i) an act of dishonesty causing harm to the Company or any
of its affiliates, (ii) the material breach of either the Company’s Code of Business Conduct and Ethics (the “Code of Conduct”) or any policy or procedure developed and published by the Company regarding compliance or ethics
related to the Code of Conduct, (iii) habitual drunkenness or narcotic drug addiction, (iv) conviction of a felony or a misdemeanor involving moral turpitude, (v) willful refusal to perform or gross neglect of the duties assigned to
Executive, (vi) the willful breach of any law that, directly or indirectly, affects the Company or any of its affiliates, (vii) a material breach by Executive following a Change in Control of those duties and responsibilities of Executive
that do not differ in any material respect from Executive’s duties and responsibilities 

  

 - 9 - 

 
during the 90-day period immediately prior to such Change in Control (other than as a result of incapacity due to physical or mental illness) which is
demonstrably willful and deliberate on Executive’s part, which is committed in bad faith or without reasonable belief that such breach is in the best interests of the Company or any of its affiliates and which is not remedied in a reasonable
period of time after receipt of written notice from the Company specifying such breach, or (viii) breach of Executive’s obligations hereunder (or under any Company policy) to protect the proprietary and confidential information of the
Company or any of its affiliates. 
 E.    Termination Due to Death or Disability.  In the event that
Executive’s employment is Terminated at any time due to Executive’s death or “Disability” (as defined below), Executive (or Executive’s beneficiaries or estate) shall be entitled to receive, provided Executive (or
Executive’s beneficiaries or estate, as applicable) signs a Separation Agreement, Waiver and Release of Claims substantially in the form attached hereto as Exhibit A, which is incorporated into this Agreement by reference,
(i) continuation of Executive’s Benefits for a period of twelve (12) months from the date of Termination and (ii) a lump sum payment equal to one times (1x) Executive’s Annual Base Salary in effect immediately prior to
the date of Executive’s Termination, to be paid within thirty (30) days following Executive’s Termination of employment. For purposes of this Agreement, a Termination for "Disability" shall mean a Termination of
Executive’s employment due to Executive’s absence from Executive’s duties with the Company on a full-time basis for at least 180 consecutive days as a result of Executive’s incapacity due to physical or mental illness.

 11.    Withholding.  All payments required to be made by the Company hereunder to Executive or
Executive’s estate or beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine should be withheld pursuant to any applicable law or regulation. 
 12.    Potential Tax Consequences for “Parachute” Payments 
 A.    Tax Gross-Up.  Notwithstanding any other provisions of this Agreement, during the period from November 1,
2007 through December 31, 2009 only, a period of twenty-six (26 months), in the event that (i) any payment or distribution by the Company to or for Executive’s benefit (whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement or any other plan, arrangement or agreement with the Company, any person whose actions result in a Change in Control or any person affiliated with the Company or such person) (all such payments and distributions,
including the severance payments and benefits provided for in Section 10 hereof (the "Severance Payments"), being hereinafter called ("Total Payments") would be subject (in whole or part) to the excise tax imposed under Section 4999 of the
Code, or any successor provision enacted under the Code or any interest or penalties are incurred by Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to
as the “Excise Tax”) and (ii) the amount of such Total Payments subject to such Excise Tax exceeds $50,000, then the Company shall pay to Executive an additional cash payment (the “Tax Gross-Up”) so that after receipt of
such Tax Gross-Up, the payment of any additional federal, state and local income taxes on such Tax Gross-Up amount and the payment of any Excise Taxes, Executive shall receive such net amount of Total Payments equal to the amount that Executive
would have received if no Excise Tax was due. If the amount of Total Payments subject to the Excise Tax does not exceed $50,000, then the Tax-Gross-Up shall not be paid and the Severance Payments shall be reduced 

  

 - 10 - 

 
(if necessary, to zero) to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax. 
 B.    Accounting Firm Determination.  All determinations required to be made under this Section 12, including
whether and when a Tax Gross-Up is required and the amount of such Tax Gross-Up and the assumptions to be utilized in arriving at such determination, shall be made by the public accounting firm that, immediately prior to the Change in Control, was
the Company’s independent auditor (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and Executive within fifteen (15) business days of the receipt of notice from Executive that
Executive has received Total Payments, or such earlier time as is requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Tax Gross-Up, as determined pursuant to this Section 12, shall be
paid by the Company to Executive within five (5) days of the receipt of the Accounting Firm’s determination, but in no event later than the end of Executive’s taxable year next following Executive’s taxable year in which
Executive pays the Excise Tax. If the Accounting Firm determines that no Excise Tax is payable by Executive, then the Accounting Firm shall furnish to Executive a written opinion that failure to report the Excise Tax on Executive’s applicable
federal income tax return would not result in the imposition of any tax assessment or a negligence or similar penalty. As a result of any uncertainty in the application of Section 4999 of the Code at the time of the determination by the
Accounting Firm hereunder, it is possible that Tax Gross-Up which will not have been made by the Company should have been made (“Underpayment”), or that amount of the Tax Gross-Up will exceed the amount required under Section 12(A)
(“Overpayment”). In the event that the Accounting Firm shall determine that an Underpayment or Overpayment has occurred, either Executive or the Company, as applicable, shall promptly reimburse the other for the amount of such Underpayment
or Overpayment that has occurred 
 C.    Notifications.  Executive shall notify the Company in writing
of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Tax Gross-Up. Such notification shall be given as soon as practicable but no later than ten (10) business days after Executive is
informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. Executive and the Company shall each reasonably cooperate with the other in connection with any
administrative or judicial proceedings concerning the existence or amount of liability for Excise Tax with respect to Total Payments. 
 D.    Payment Calculator.  At the time that payments are made under this Section 12, the Company shall provide Executive with a written statement setting forth the manner in which such payments were
calculated and the basis for such calculations including, without limitation, any opinions or other advice the Company has received from tax counsel, the Accounting Firm or other advisors or consultants (and any such opinions or advice which are in
writing shall be attached to the statement). 
  

 - 11 - 

 13.    Restrictive Covenants. 
 A.    Non-Competition.  Executive hereby agrees that, during (i) the six (6)-month period following a
Termination of Executive’s employment with the Company that entitles Executive to receive severance benefits under this Agreement or a written agreement with or policy of the Company or (ii) the twelve (12)-month period following a
Termination of Executive’s employment with the Company that does not entitle Executive to receive such severance benefits (the period referred to in either clause (i) or (ii), the “Restricted Period”), Executive shall not
undertake any employment or activity (including, but not limited to, consulting services) with a Competitor (as defined below) in any geographic area in which the Company or any of its affiliates operate (the “Market Area”), where the
loyal and complete fulfillment of the duties of the competitive employment or activity would call upon Executive to reveal, to make judgments on or otherwise use or disclose any confidential business information or trade secrets of the business of
the Company or any of its affiliates to which Executive had access during Executive’s employment with the Company. For purposes of this Section, “Competitor” shall refer to any health maintenance organization or insurance company that
provides managed health care or related services similar to those provided by the Company or any of its affiliates. 
 B.    Non-Solicitation.  In addition, Executive agrees that, during the applicable Restricted Period following Termination of Executive’s employment with the Company, Executive shall not, directly
or indirectly, (i) solicit, interfere with, hire, offer to hire or induce any person, who is or was an employee of the Company or any of its affiliates at the time of such solicitation, interference, hiring, offering to hire or inducement, to
discontinue his/her relationship with the Company or any of its affiliates or to accept employment by, or enter into a business relationship with, Executive or any other entity or person or (ii) solicit, interfere with or otherwise contact any
customer or client of the Company or any of its affiliates. Notwithstanding the foregoing, the restrictions contained in Section 12B(i) above shall not apply to any person solicited by Executive to work for the Company and who previously worked
for or with Executive at any prior place of employment. 
 C.    Modification of Restrictions.  It is
hereby further agreed that if any court of competent jurisdiction shall determine that the restrictions imposed in this Section 13 are unreasonable (including, but not limited to, the definition of Market Area or Competitor or the time period
during which this provision is applicable), the parties hereto hereby agree to any restrictions that such court would find to be reasonable under the circumstances. 
 D.    Injunction Rights.  Executive also acknowledges that the services to be rendered by Executive to the Company are of a special and unique character, which gives this Agreement
a peculiar value to the Company or any of its affiliates, the loss of which may not be reasonably or adequately compensated for by damages in an action at law, and that a material breach or threatened breach by Executive of any of the provisions
contained in this Section 13 will cause the Company or any of its affiliates irreparable injury. Executive therefore agrees that the Company may be entitled, in addition to the remedies set forth above in this Section 13 and any other
right or remedy, to a temporary, preliminary and permanent injunction, without the necessity of proving the inadequacy of monetary damages or the posting of any bond or security, enjoining or restraining Executive from any such violation or
threatened violations. 
  

 - 12 - 

 14.    Successors; Binding Agreement. 
 A.    Survival Following Merger, Consolidation or Asset Transfer.  This Agreement shall not be terminated by any
merger or consolidation of the Company whereby the Company is or is not the surviving or resulting corporation or as a result of any transfer of all or substantially all of the assets of the Company. In the event of any such merger, consolidation or
transfer of assets, the provisions of this Agreement shall be binding upon the surviving or resulting corporation or the person or entity to which such assets are transferred. 
 B.    Survivor’s Assumption of Agreement.  The Company agrees that concurrently with any merger, consolidation
or transfer of assets referred to in this Section 14, it will cause any successor or transferee to unconditionally assume, by written instrument delivered to Executive (or Executive’s beneficiary or estate), all of the obligations of the
Company hereunder. Failure of the Company to obtain such assumption prior to the effectiveness of any such merger, consolidation or transfer of assets shall entitle Executive to compensation and other benefits from the Company in the same amount and
on the same terms as Executive would be entitled hereunder if Executive’s employment were Terminated without Cause. For purposes of implementing the foregoing, the date on which any such merger, consolidation or transfer becomes effective shall
be deemed the date of Termination. 
 C.    Enforceability.  This Agreement shall inure to the benefit
of and be enforceable by Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive shall die while any amounts would be payable to Executive hereunder had
Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to such person or persons appointed in writing by Executive to receive such amounts or, if no person is so
appointed, to Executive’s estate. 
 15.    Section 409(A) of the Internal Revenue Code.  It
is the intention of the Company and Executive that this Agreement not result in unfavorable tax consequences to Executive under Section 409A of the Code, and the regulations and guidance promulgated thereunder (“Section 409A”) and the
Agreement shall be interpreted as to so comply. Notwithstanding anything to the contrary herein, the Company and Executive agree to the provisions set forth in this Section 15 in order to comply with the requirements of Section 409A.

 A.    If Executive is a "specified employee" (within the meaning of Section 409A) with respect to the Company,
any non-qualified deferred compensation otherwise payable to or in respect of Executive in connection with Executive’s Termination pursuant to this Agreement shall be delayed until the earliest date upon which such amounts may be paid without
being subject to taxation under Section 409A. Any amount, the payment or benefit of which is delayed by application of the preceding sentence, shall be paid as soon as possible following the expiration of such period. 
 B.    All incentive bonus payments described in Section 7(D) shall be
paid to Executive, to the extent earned, in no event later than the last day of the “applicable 2  1/2 month
period”, as such term is defined in Treasury Regulation Section 1.409A-1(b)(4)(i)(A) with respect to such payment’s treatment as a “short-term deferral” for purposes of Section 409A. 
  

 - 13 - 

 C.    With respect to the Company’s reimbursement and tax gross-up obligations
under Sections 7(C) and 7(E) hereof, in no event shall any such reimbursements or gross-up payments be made later than the last day of Executive’s taxable year following the taxable year in which the fee or expense was incurred or the tax
payment was made, as applicable. 
 D.    The provision of Benefits to Executive following Termination hereunder shall be
subject to the provisions of Treasury Regulation 1.409A-3(i)1(iv)(A) and (B). 
 E.    The Company and Executive agree to
cooperate in good faith in an effort to comply with Section 409A. Under no circumstances shall the Company be responsible for any taxes, penalties, interest or other losses or expenses incurred by the Executive due to any failure to comply with
Section 409A. 
 16.    Company Policies.  Executive’s employment with the Company is subject
to the terms and conditions contained in the Company’s Associate Policy Manual (the “Policy Manual”), the content of which is incorporated by reference herein. Executive shall be required to read, understand and comply with the
policies contained in the Policy Manual and, within 30 days of Executive’s first date of employment, acknowledge receipt of the Policy Manual through HR Link, which can be accessed through the Company’s intranet site. The Company
acknowledges and agrees that, to the extent any Company Policy provides a benefit to Company associates in general (including, but not limited to, PTO, severance or relocation benefits) and such benefit is less favorable to Executive than the
benefits provided herein, the terms of this Agreement shall control. 
 17.    Severability.  If any
term of this Agreement is held to be invalid, void or unenforceable, the remainder of this Agreement shall remain in full force and effect and shall in no way be affected and the parties shall use their best efforts to find an alternative way to
achieve the same result. 
 18.    Integrated Agreement.  This Agreement supersedes any prior
agreements, representations or promises of any kind, whether written, oral, express or implied between the parties hereto with respect to the subject matters herein. It constitutes the full, complete and exclusive agreement between Executive and the
Company with respect to the subject matters herein. This Agreement cannot be changed unless in writing, signed by Executive and the Chief Executive Officer of the Company and approved by the Board of Directors of the Company (or the Committee, if
permitted by the Committee’s charter). 
 19.    Waiver.  No waiver of any default hereunder shall
operate as a waiver of any subsequent default. Failure by either party to enforce any of the terms or conditions of this Agreement, for any length of time or from time to time, shall not be deemed to waive or decrease the rights of such party to
insist thereafter upon strict performance by the other party. 
 20.    Notices.  All notices and
communications required or permitted hereunder shall be in writing and shall be deemed given (a) if delivered personally, (b) one (1) business day after being sent by Federal Express or a similar commercial overnight service, or
(c) three (3) business days after being mailed by registered or certified mail, return receipt requested, prepaid and 

  

 - 14 - 

 
addressed to the following addresses, or at such other addresses as the parties may designate by written notice in the manner aforesaid: 
  

			
	If to the Company:	  	 Health Net, Inc.
 21650 Oxnard Street, 22nd
Floor
 Woodland Hills, CA 91367
 Attention: General
Counsel

		
	If to the Executive:	  	 Joseph C. Capezza
 [ADDRESS]

 21.    Governing Law.  The interpretation, construction and
performance of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware without regard to the principle of conflicts of laws. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other provisions of this Agreement, which other provisions shall remain in full force and effect. 
 22.    Survival and Enforcement.  Sections 3, 9, 10, 12, 13 and 14 of this Agreement and any rights and remedies arising out of this Agreement shall survive and continue in full
force and effect in accordance with the respective terms thereof, notwithstanding any termination of this Agreement or a Termination of Executive’s employment. The parties agree that the Company would be damaged irreparably in the event any
provision of Sections 3, 12, 13 and 14 of this Agreement were not performed in accordance with its terms or were otherwise breached and that money damages would be an inadequate remedy for any such nonperformance or breach. Therefore, the Company or
its successors or assigns shall be entitled in addition to other rights and remedies existing in their favor, to an injunction or injunctions to prevent any breach or threatened breach of any of such provisions and to enforce such provisions
specifically (without posting a bond or other security). 
 23.    Acknowledgement.  Executive
acknowledges that Executive has had the opportunity to discuss the content of this Agreement with and obtain advice from Executive’s attorney, have had sufficient time to and have carefully read and fully understood all of the provisions of
this Agreement, and Executive is knowingly and voluntarily entering into this Agreement. Executive further acknowledges that Executive is obligated to become familiar with and comply at all times with all written policies of the Company. 

[Signature Page to Follow] 
  

 - 15 - 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth in the
preamble to this Agreement. 
  

									
	Executive	 		 	Health Net, Inc.
					
	By:	 	/s/ Joseph C. Capezza	 		 	By:	 	/s/ Jay M. Gellert
		 	Name: Joseph C. Capezza	 		 		 	Name: Jay M. Gellert
		 	Title: Executive Vice President & Chief Financial Officer	 		 		 	Title: President & Chief Executive Officer

  

	cc:	Linda V. Tiano 

	    	Karin Mayhew 

	    	Debbie J. Colia/Capezza Personnel File 

 EXHIBIT A 
 [FORM OF SEPARATION AGREEMENT, WAIVER AND RELEASE OF CLAIMS] 
 This SEPARATION AGREEMENT, WAIVER AND
RELEASE OF CLAIMS (this “Separation Agreement and Release”) is made and entered into as of the dates set forth on the signature pages hereto by and between Health Net, Inc. and its affiliates and subsidiaries (hereinafter referred
to as the “Company”) and [EXECUTIVE NAME] (hereinafter referred to as the “Executive”). 
 WHEREAS,
the Company and Executive are parties to an Employment Agreement dated as of [DATE] (the “Employment Agreement”) and are entering into this Separation Agreement and Release as a condition to Executive’s receipt of a severance
payment thereunder (capitalized terms used but not defined herein shall have the meanings set forth in the Employment Agreement). 
 NOW,
THEREFORE, the Company and Executive agree as follows: 
  

	1.	Executive’s employment with the Company will terminate on [TERM DATE ] (the “Termination Date”). Upon termination of employment, Executive will not represent
to anyone that he is an employee of the Company and will not say or do anything purporting to bind the Company. Upon Executive’s termination of employment, Executive shall be deemed to have resigned from all other positions with the Company, if
any, held by Executive. 

  

	2.	Executive’s termination of employment with the Company shall be considered a [DESCRIBE TYPE OF TERMINATION] under the Employment Agreement, and Executive is therefore
eligible to receive [DESCRIBE PAYMENTS AND OTHER BENEFITS TO BE RECEIVED (SEVERANCE, BENEFIT CONTINUATION/COBRA, ETC.]. 

  

	3.	Executive acknowledges that all unused accrued vacation and unused personal absence time will be paid in Executive’s final regular paycheck in keeping with the Company’s
policy and practice or such shorter time as may be required by applicable law. Executive further acknowledges that no further vacation/paid-time-off or other benefits will accrue after the Termination Date. 

  

	4.	Executive’s participation in all Company employee benefit plans as an active employee shall cease on the Termination Date, and Executive shall not be eligible to make
contributions to or to receive Company matching contributions under the Health Net, Inc. 401(k) Associate Savings Plan, or to make any deferrals pursuant to any deferred compensation plan of the Company after the Termination Date (it being
understood that Executive shall be entitled to all vested benefits accrued as of the date hereof under the Company’s 401(k) Savings Plan and any deferred compensation plan). If, immediately prior to the Termination Date, Executive participates
in any Company employee welfare benefit plan, Executive’s participation in such plan shall continue on the same terms and conditions, including the same co-payment terms, until 11:59 p.m. (Pacific Time) on the last day of the month in which the
Termination Date occurs. 

  

 A - 1 

	5.	In partial consideration of the Company providing Executive the payments and benefits set forth above and as a condition to receive such payments and benefits, which Executive
acknowledges he is not otherwise entitled to receive, Executive freely and voluntarily enters into this Separation Agreement and Release and, by signing this Separation Agreement and Release, Executive, on his own behalf and on behalf of his heirs,
beneficiaries, successors, representatives, trustees, administrators and assigns, hereby waives and releases the Company, and each of its past, present and future officers, directors, shareholders, employees, consultants, accountants, attorneys,
agents, managers, insurers, sureties, parent and sister corporations, divisions, subsidiary corporations and entities, partners, joint venturers, affiliates, beneficiaries, successors, representatives and assigns, from any and all claims, demands,
damages, debts, liabilities, controversies, obligations, actions or causes of action of any nature whatsoever, whether based on tort, statute, contract, indemnity, rescission or any other theory of recovery, including but not limited to claims
arising under federal, state or local laws prohibiting discrimination in employment, including Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1870, as amended, claims of disability discrimination under the Americans
with Disabilities Act, the Age Discrimination in Employment Act, as amended (“ADEA”), the Worker Adjustment and Retraining Notification Act (“WARN”), or claims growing out of any legal restrictions on the
Company’s right to terminate its employees and whether for compensatory, punitive, equitable or other relief, whether known, unknown, suspected or unsuspected, against the Company, including without limitation claims which may have arisen or
may in the future arise in connection with any event which occurred on or before the date of Executive’s execution of this Separation Agreement and Release. The provisions in this paragraph do not extend to any rights Executive may have to
enforce the terms of this Agreement and are not intended to prohibit Executive from filing a claim for unemployment insurance. 

  

	6.	Executive expressly waives any right or claim of right to assert hereafter that any claim, demand, obligation and/or cause of action has, through ignorance, oversight or error, been
omitted from the terms of this Separation Agreement and Release. Executive makes this waiver with full knowledge of his rights and with specific intent to release both his known and unknown claims, and therefore specifically waives the provisions of
Section 1542 of the Civil Code of California or other similar provisions of any other applicable law, which reads as follows: 

 “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the
debtor.” 
 Executive understands and acknowledges the significance and consequence of this Separation Agreement and Release and of such
specific waiver of Section 1542, and expressly agrees that this Agreement shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected claims, demands,
obligations and causes of action herein above specified. 
  

	7.	 Executive shall not initiate or cause to be initiated against the Company any compliance review, suit, action, investigation or proceeding of any kind, or
voluntarily participate in same, individually or as a representative, witness or member of a class, under contract, 

  

 A - 2 

 
law or regulation, federal, state or local, pertaining to any matter related to his employment with the Company, unless Executive first cooperates in making
his allegations known to the Company for the Company to take corrective action at a time and place designated by the Company. Executive represents and warrants that he has not, to date, initiated (or caused to be initiated) any such review, suit,
action, investigation or proceeding; provided, however, that nothing in this Section 7 shall restrict Executive’s ability to challenge the validity of any release herein of ADEA claims nor to any suit or action brought by
Executive to assert such a challenge. In addition, Executive shall, without further compensation, cooperate with and assist the Company in the investigation of, preparation for or defense of any actual or threatened third party claim, investigation
or proceeding involving the Company or its predecessors or affiliates and arising from or relating to, in whole or in part, Executive’s employment with the Company or its predecessors or affiliates for which the Company requests
Executive’s assistance, which cooperation and assistance shall include, but not be limited to, providing testimony and assisting in information and document gathering efforts. In this connection, it is agreed that the Company will use its
reasonable best efforts to assure that any request for such cooperation will not unduly interfere with Executive’s other material business and personal obligations and commitments. 
  

	8.	Executive agrees he will return to the Company immediately upon termination any building keys, security passes or other access or identification cards and any Company property that
was in his possession, including but not limited to any documents, credit cards, computer equipment, mobile phones or data files. Executive agrees to clear all expense accounts and pay all amounts owed on any corporate credit cards which the Company
previously issued to Executive, subject to the Company's obligation to reimburse Executive for any properly reimbursable business expenses in accordance with the Company's expense policies and procedures then in effect. 

  

	9.	Executive shall not, without the Company’s written consent by an authorized representative, at any time prior or subsequent to the execution of this Separation Agreement and
Release, disclose, use, remove or copy any confidential, trade secret or proprietary information he acquired during the course of his employment by the Company, including without limitation, any technical, actuarial, economic, financial,
procurement, provider, customer, underwriting, contractual, managerial, marketing or other information of any type that has economic value in the business in which the Company is engaged, but not including any previously published information or
other information generally in the public domain. 

  

	10.	 In addition to any other part or term of this Separation Agreement and Release or the Employment Agreement, Executive agrees that he will not, (a) for a period
of one (1) year from the date of this Agreement, irrespective of the reason for the termination, either directly or indirectly, on his own behalf or on behalf of any other person: (1) make known to any person, firm, corporation or other
entity of any type, the names and addresses of any of the Company’s customers, enrollees or providers or any other information pertaining to them; or (2) disrupt, solicit or influence or attempt to solicit, disrupt or influence any of the
Company’s customers, providers, vendors, agents or independent contractors with whom the Executive became acquainted during the course of employment or service for the purpose of terminating such a person’s or entity’s 

  

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relationship with the Company or causing such a person or entity to associate with a competitor of the Company, and (b) for [a period of one
(1) year] [the six (6) month period] following the Termination Date undertake any employment or activity prohibited by the Employment Agreement. The prohibitions of this paragraph are not intended to deny employment opportunities
within the Executive’s field of employment but are limited only to those prohibitions necessary to protect the Company from unfair competition. In addition, Executive agrees that, for [a period of one (1) year] [the six (6) month
period] following the Termination Date, he shall not, directly or indirectly solicit, interfere with, hire, offer to hire or induce any person, who is or was an employee of the Company or any of its affiliates at the time of such solicitation,
interference, hiring, offering to hire or inducement, to discontinue his/her relationship with the Company or any of its affiliates or to accept employment by, or enter into a business relationship with, Executive or any other entity or person.

  

	11.	Executive further agrees that, in exchange for the consideration set forth in Section 2 hereof, Executive shall not make any disparaging comments and/or statements to anyone
either orally or in writing about the Company and/or its employees. 

  

	12.	Nothing contained herein shall be construed as an admission of any wrongful act, including but not limited to violation of any contract, express or implied, or any federal, state or
local employment laws or regulations, and nothing contained herein shall be used for any purpose except in proceedings related to the enforcement of this Separation Agreement and Release. 

  

	13.	If any part or term of this Separation Agreement and Release is held invalid or unenforceable by any court or arbitrator, such invalidity or unenforceability shall not affect in any
way the validity or enforceability of any other part or term of this Separation Agreement and Release. In addition, if any court of competent jurisdiction construes the covenants contained in Section 10 hereof, or any part thereof, to be
unenforceable in any respect, the court may reduce the duration or scope to the extent necessary so that the provision is enforceable, and the provision, as reduced, shall then be enforceable. 

  

	14.	Executive agrees and acknowledges that this Separation Agreement and Release recites all payments and benefits Executive is entitled to receive hereunder and under the Employment
Agreement, and that no other payments or benefits will be asserted or requested by Executive. 

  

	15.	The Executive acknowledges that he has had an opportunity to consult and be represented by counsel of his own choosing in the review of this Separation Agreement and Release, and
that he has been advised by the Company to do so, that the Executive is fully aware of this Separation Agreement and Release and of its legal effect, that the preceding paragraphs recite the sole consideration for this Separation Agreement and
Release, and that Executive enters into this Separation Agreement and Release freely, without coercion, and based on the Executive’s own judgment and not in reliance upon any representation or promise made by the other party, other than those
contained herein. There may be no modification of the terms of this Separation Agreement and Release except in writing signed by the parties hereto including an appropriately authorized officer of the Company. 

  

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	16.	This Separation Agreement and Release constitutes the full, complete and exclusive agreement between Executive and the Company with respect to the subject matters herein and
supersedes any prior agreements, representations or promises of any kind, whether written, oral, express or implied, with respect to the subject matters herein. This Separation Agreement and Release cannot be changed unless in writing, signed by
Executive and an authorized officer of the Company. 

  

	17.	If there is any dispute between the Company and Executive over the terms or obligations under this Separation Agreement and Release, that dispute shall be resolved by binding
arbitration before a single neutral arbitrator who shall be a retired judge. The arbitration shall proceed in accordance with the then-current rules of the Commercial American Arbitration Association to the extent not inconsistent with this
Separation Agreement and Release. The judgment of the arbitrator shall be final, binding and nonappealable, and may be entered in any state or federal court having jurisdiction thereafter. The arbitrator shall be bound to apply and follow the
applicable state or federal laws in reaching a decision in this matter. Any disagreement regarding whether a dispute is required to be arbitrated pursuant to this Separation Agreement and Release shall be decided by the arbitrator. The Federal
Arbitration Act, 9 U.S.C. Sections 1-16, shall govern the interpretation and enforcement of this Section 17. The prevailing party will be entitled to recover reasonable attorney’s fees and costs incurred in any action to enforce or defend
this Separation Agreement and Release. 

  

	18.	This Separation Agreement and Release shall be construed and governed by the laws of the State of Delaware. 

 EXECUTIVE ACKNOWLEDGES BY SIGNING BELOW that (i) Executive has not relied upon any representations, written or oral, not set forth in this
Separation Agreement and Release; (ii) at the time Executive was given this Separation Agreement and Release Executive was informed in writing by the Company that (a) Executive had at least 21 days in which to consider whether Executive
would sign the Separation Agreement and Release and (b) Executive should consult with an attorney before signing the Separation Agreement and Release; and (iii) Executive had an opportunity to consult with an attorney and either had such
consultations or has freely decided to sign this Separation Agreement and Release without consulting an attorney. 
 Executive further
acknowledges that he may revoke acceptance of this Separation Agreement and Release by delivering a letter of revocation within seven (7) days after the later of the dates set forth below addressed to: Health Net, Inc., Organization
Effectiveness Department, 21650 Oxnard Street, Woodland Hills, California 91367, Attention: Karin Mayhew. 
 Finally, Executive acknowledges
that he understands that this Separation Agreement and Release will not become effective until the eighth (8th) day following his signing this Separation Agreement and Release and that if Executive does not revoke his acceptance of the terms of
this Separation Agreement and Release within the seven (7) day period following the date on which Executive signs this Separation Agreement and Release as set forth above, this Separation Agreement and Release will be binding and enforceable.

 [Signature Page Follows] 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Separation Agreement and Release as of the
dates set forth below. 
  

									
	Executive	 		 	Health Net, Inc.
					
	By:	 	[EXHIBIT COPY]	 		 	By:	 	[EXHIBIT COPY]
		 	Name:	 		 		 	Name:
		 	Title:	 		 		 	Title:
					
	Dated:	 	[TO BE INSERTED]	 		 	Dated:	 	[TO BE INSERTED]

  

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