Document:

Health Net, Inc. Deferred Compensation Plan for Directors

 EXHIBIT 10.19 
  
 HEALTH NET, INC. 
  
 DEFERRED COMPENSATION PLAN 
  
 FOR DIRECTORS 
  
 (effective January 1, 2004) 
  
 I. INTRODUCTION 
  
 The
purpose of the Health Net, Inc. Deferred Compensation Plan for Directors (the “Plan”) is to permit members of the board of directors of Health Net, Inc., a Delaware corporation (the “Company”), who are not employees of the
Company to defer the receipt of certain meeting fees and other cash remuneration payable by the Company, until such times as set forth herein. Prior to January 1, 2004, such directors were eligible to participate in the Health Net, Inc. Deferred
Compensation Plan, on substantially the same terms and conditions that they are eligible to participate in this Plan. 
  
 II. DEFINITIONS 
  
 For purposes of the Plan, the following capitalized terms shall have the meanings set forth in this Article. 
  
 2.1 “Account” shall mean the account kept on the books and records of the Company
established on behalf of a Participant in the Plan to which amounts deferred by such Participant (and deemed earnings and losses thereon), other than amounts credited to the Participant’s In-Service Withdrawal Account, are credited. 

 
 2.2 “Beneficiary” shall mean the beneficiary or beneficiaries (including any
contingent beneficiary) designated pursuant to Section 4.5. 
  
 2.3
“Board” shall mean the Board of Directors of the Company. 
  
 2.4
“Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 2.5
“Committee” shall mean the Compensation and Stock Option Committee of the Board. 
  
 2.6 “Common Stock” shall mean the Class A Common Stock, $.001 par value, of the Company. 
  
 2.7 “Company” shall mean Health Net, Inc. (formerly known as Foundation Health Systems, Inc.), a Delaware corporation, or any successor thereto. 
  
 2.8 “Compensation” shall mean the fees and other cash remuneration payable to a
Director during a Deferral Year. 

 2.9 “Deferral Year” shall mean the twelve-month period beginning each July 1, except that the first Deferral
Year shall be the six-month period beginning on January 1, 2004. 
  
 2.10
“Director” shall mean a member of the Board. 
  
 2.11
“Disability” shall mean a physical or mental disability which, in the judgment of the Committee, prevents a Participant from performing substantially such Participant’s duties and responsibilities to the Company for a continuous
period of at least six months. 
  
 2.12 “ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as amended. 
  
 2.13 “Effective
Date” shall mean January 1, 2004. 
  
 2.14 “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended. 
  
 2.15 “In-Service
Withdrawal Account” shall mean the account kept on the books and records of the Company established on behalf of a Participant to which amounts deferred by such Participant pursuant to Section 3.2(f) shall be paid in a lump sum at the time
described in Section 4.1(b). 
  
 2.16 “In-Service Withdrawal Year” shall
mean the calendar year designated by a Participant on his or her deferral election form filed pursuant to Section 3.2(f), which year begins at least three years after the year in respect of which the Participant has filed such election form.

  
 2.17 “Investment Fund” shall mean an “open-end,”
“closed-end” or other collective investment fund selected by the Company from time to time as a measure for allocating deemed investment gains and losses to Participants’ accounts. 
  
 2.18 “Merger” shall mean any merger of the Company in which the holders of the
Class A common stock, $.001 par value, of the Company immediately prior to the merger have the same proportionate ownership of common stock of the surviving or resulting parent corporation immediately after the merger. 
  
 2.19 “Participant” shall mean a Director who has elected to defer, pursuant to the
terms of the Plan, an amount that would otherwise be payable as Compensation in a Deferral Year. 
  
 2.20 “Payment Date” shall mean the date chosen by the Company, in its sole discretion, that occurs within the 90-day period beginning immediately after the last day of a Deferral Year. 
  
 III. PARTICIPATION AND DEFERRALS 
  
 3.1 Participation. 
  
 (a) In General. Each Director may participate in the Plan in a Deferral Year by specifying on an election form filed
with the Company prior to the beginning of such Deferral Year the percentage(s) of the Compensation otherwise payable to him or her by the Company 
  

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 during the Deferral Year to be deducted from such Compensation and deferred for payment at a later date pursuant to the
Plan. The Company shall establish rules and procedures prescribing the time and manner in which election forms shall be filed with the Company. 
  
 (b) Initial Participation. An individual may participate in the Plan during the first Deferral Year in which the individual becomes a Director. To
participate in the Plan for such Deferral Year, such individual must file a deferral election form with the Company within 30 days of his or her becoming a Director. 
  

	3.2	Deferral Elections. 

  
 (a) In General. Except as provided in Section 3.1(b), a deferral election form must be filed in accordance with rules and procedures prescribed by
the Company prior to the Deferral Year for which the election is to be effective. A Participant may not revoke or change a deferral election for a Deferral Year after the beginning of such year. A Participant must file a new election form with the
Company prior to each Deferral Year for which the election is to be effective. In no event shall an election under the Plan apply to Compensation earned prior to the date on which the election to participate in the Plan for a Deferral Year is
received by the Company. 
  
 (b) Deferral Amount. A
Director may elect on the election form designated by the Company to defer the receipt of any or all of the amount otherwise payable as Compensation to such Director during the Deferral Year. 
  
 (c) Deemed Investment Election. Upon the commencement of participation
in the Plan, each Participant shall specify on his or her election form any one or more of the Investment Funds in which all of the Participant’s accounts under the Plan are to be deemed invested. 
  
 (d) Change of Deemed Investment Election. A Participant may elect to
change his or her deemed investment election as frequently as may be designated by the Company. Any such change shall specify the whole percentages (or amounts if so permitted by the Company) to be deemed invested in one or more of the then
available Investment Funds. A Participant may change his or her election (i) with respect to the balance of his or her account(s) as of the effective date of the Participant’s new investment election, (ii) with respect to future amounts
credited to the Participant’s account(s) under Section 3.3(a) and (b) or (iii) both. A Participant’s change of a deemed investment election must be made in accordance with the written rules and conditions provided by the Company to the
Participants. 
  
 (e) Payment Election. Except as provided
in subsection (f) of this Section 3.2, a Director must designate on each deferral election form filed with the Company (i) a manner of payment in which his or her Account shall be paid, provided that such manner of payment is permitted under
Section 4.2, and (ii) whether the Account is to be paid on the Payment Date occurring immediately after (x) the Deferral Year in which the Director terminates service as a Director, or (y) the Deferral Year immediately following the Deferral Year in
which such service terminates. The Participant’s election on the deferral election form most recently filed with the Company shall supercede the Participant’s election on all previously filed deferral election forms with respect to the
payment of the Participant’s Account, provided that the most recent election form has been on file with the Company for at least twelve (12) months. 
  

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 (f) In-Service Withdrawals. A Participant may elect for any Deferral Year on a deferral election
form filed with the Company (i) to designate any percentage of the amount to be deferred to be credited to an In-Service Withdrawal Account established on behalf of the Participant and (ii) to receive payment of the balance of such In-Service
Withdrawal Account in a lump-sum within 90 days after the last day of the In-Service Withdrawal Year so designated by the Participant. 
  

	3.3	Deferred Compensation Account. 

  
 (a) Crediting Deferred Compensation. Any amount otherwise payable as Compensation that is deferred by a Participant shall be credited to the
applicable account of the Participant as of the date on which, absent such election, such amount would have been payable to the Participant as Compensation. 
  
 (b) Earnings. Each Participant’s account(s) under the Plan shall be credited with deemed earnings, or reduced by deemed losses, equal to the
earnings or losses that would have been realized or paid if assets in an amount equal to the balance of such account(s) were actually invested among the Investment Funds selected by the Participant in accordance with Section 3.2(c) and (d). Although
the Company might actually invest assets of the Company according to the Participant’s election, it is not required to do so nor to set aside any assets to provide for payments hereunder. The Company may promulgate separate accounting and
administrative rules to facilitate the deemed investment in an Investment Fund. 
  
 (c) Notices. Each Participant shall receive written notice of the balance of his or her account(s) as soon as practicable following the last day of each calendar quarter. 
  
 IV. PAYMENTS OF DEFERRED COMPENSATION 
  

	4.1	Timing. 

  
 (a) In General. The balance of a Participant’s Account shall be paid or shall commence to be paid on the Payment Date occurring immediately
after (i) the Deferral Year in which the Participant terminates service as Director, or (ii) the Deferral Year immediately following the Deferral Year in which such service terminates, as elected by the Participant on the election form the
Participant most recently filed with the Company, provided that the election form has been on file for at least twelve (12) months. 
  
 (b) In-Service Withdrawals. A Participant may elect to receive any percentage of an amount deferred for a Deferral Year in any In-Service
Withdrawal Year that begins at least three years after such Deferral Year. Such percentage shall be credited to an In-Service Withdrawal Account established in the Participant’s name and the amount credited to such account shall be paid in a
lump sum on the Payment Date for such In-Service Withdrawal Year. Notwithstanding the immediately preceding sentence, if a Participant terminates service as a Director in a calendar year prior to such In-Service Withdrawal Year, then the amount
credited to the Participant’s In- 
  

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 Service Withdrawal Account shall be paid in a lump sum on the earlier of: (i) the Payment Date for the Deferral Year with
respect to which the Participant’s Account shall be paid or shall commence to be paid, as elected by the Participant pursuant to Section 4.1, and (ii) the Payment Date for the In-Service Withdrawal Year as elected by the Participant.

  
 4.2 Manner of Payment. Each Participant shall receive payment of the
amount credited to the Participant’s Account either in a single lump sum or in annual installments at least equal to $1,000 over a period of not less than two and not more than ten years, as elected by the Participant upon his or her
commencement of participation in the Plan. Notwithstanding the foregoing sentence, such Account shall be paid to such Participant or his or her Beneficiary in the form of a single lump sum if (i) the amount credited to such Account as of the
relevant Payment Date is less than $50,000, (ii) the Participant has not attained age 55 as of such Payment Date or (iii) the Participant’s service as a Director terminates by reason of death. 
  
 4.3 Emergency Payments. In the event of an Unforeseeable Financial Emergency, as
hereinafter defined, the Participant may file a written request with the Company to receive all or any portion of the balance of such Participant’s account(s) in an immediate lump sum payment. A Participant’s written request for such a
payment shall describe the circumstances which the Participant believes justify the payment and an estimate of the amount necessary to eliminate the Unforeseeable Financial Emergency. An “Unforeseeable Financial Emergency” shall mean
unforeseeable severe financial hardship resulting from (i) the Participant’s Disability, (ii) a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, (iii) loss of the Participant’s property due to
casualty or (iv) such other extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, all as determined in the sole discretion of the Company. Unforeseeable Financial Emergency payments shall
be made only to the extent necessary to satisfy the emergency need and shall not be made to the extent the need is or may be relieved through reimbursement or compensation, by insurance or otherwise, by the Company’s cessation of deferrals
under the Plan or by liquidation of the Participant’s assets (to the extent such liquidation itself would not cause severe financial hardship). Any Unforeseeable Financial Emergency payment from a Participant’s account(s) shall be deemed
to cancel any deferral election of the Participant then in effect and, unless otherwise determined by the Company, the Participant shall be suspended from making further deferral elections under the Plan during the remainder of the Deferral Year in
which such payment is made and the Deferral Year immediately thereafter. 
  
 4.4
Distributions to Minor and Incompetent Persons. If a payment is to be made to a minor or to an individual who, in the opinion of the Company, is unable to manage his or her financial affairs by reason of illness or mental incompetency, such
distribution may be made to or for the benefit of any such individual in any of the following ways as the Company shall direct: (a) directly to any such minor individual if, in the opinion of the Company, he or she is able to manage his or her
financial affairs, (b) to the legal representative of any such individual, (c) to a custodian under a Uniform Gifts to Minors Act for any such minor individual, or (d) to a relative of any such individual to be used for the latter’s benefit.
The Company shall not be required to see to the application by any third party of any payment made to or for the benefit of a Participant or Beneficiary pursuant to this Section. 
  

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 4.5 Beneficiaries. A Participant shall have the right to designate a Beneficiary, and amend or revoke such
designation at any time, in writing. Such designation, amendment or revocation shall be effective upon receipt of the Participant’s written designation by the Company. If a Participant is married at the time a beneficiary designation is
submitted to the Company, the designation of a Beneficiary other than the Participant’s spouse shall not be effective unless the Participant’s spouse consents to such designation in writing, or it is established to the satisfaction of the
Company that such consent could not be obtained because the Participant’s spouse cannot be located or such other circumstances as may be considered by the Company. Subject to the preceding sentence, a Participant may from time to time, without
the consent of any Beneficiary, change or cancel any such designation. Such designation and each change therein shall be made in the form prescribed by the Company and shall be filed with the Company. If no Beneficiary survives the Participant, the
Company shall direct that payment of any balance to the Participant’s account(s) be made in the following order of priority: 
  

	 	(a)	to the beneficiaries designated in the Participant’s last will, if specific reference is made therein to the payment of such account(s); or if none, 

 

	 	(b)	to the Participant’s spouse; or if none, 

  

	 	(c)	to the Participant’s descendants, per stirpes; or if none, 

  

	 	(d)	to the Participant’s estate. 

  
 If a Participant has only one election form on file with the Company and terminates service as a Director before the expiration of twelve (12) months since the delivery
of such election form, then, notwithstanding the Participant’s election with respect to the timing of the payment, or commencement of payment, of his or her Account or In-Service Withdrawal Account, as the case may be, the balance of such
account shall be paid or shall commence to be paid on the Payment Date for the calendar year in which the Participant’s service terminates. 
  
 V. ADMINISTRATION 
  
 5.1 Administration. The Plan shall be administered by the Committee, which shall have full power and authority to interpret, construe and administer the Plan in
accordance with the provisions herein set forth, except to the extent the Plan specifically provides that the Company shall carry out certain administrative duties. The Committee’s interpretation and construction hereof, and actions hereunder,
or the amount or recipient of the payments to be made herefrom, shall be binding and conclusive on all persons for all purposes. The Committee and the Company may delegate to any committee, individual or entity any of their respective powers or
duties hereunder. 
  
 5.2 Indemnification. No officer or employee of the
Company shall be liable to any person for any action taken or omitted in connection with the interpretation and administration of the Plan unless attributable to his or her own willful misconduct or lack of good faith, and the Company shall
indemnify and hold harmless such officers and employees from and against all claims, losses, damages, causes of action and expenses, including reasonable attorney fees and court costs, incurred in connection with such interpretation and
administration of the Plan. The expenses of administering the Plan shall be paid by the Company and shall not be charged against any Participant’s account(s). 
  

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 5.3 Claims Procedure. The Company (i) shall provide notice in writing to any Participant or Beneficiary whose
claim for benefits under the Plan has been denied, setting forth the specific reasons for such denial and written in a manner calculated to be understood by such Participant or Beneficiary and (ii) shall afford a reasonable opportunity to any
Participant or Beneficiary whose claim for benefits has been denied for a full and fair review by the Committee of the decision denying the claim. 
  
 VI. MISCELLANEOUS 
  
 6.1 Unfunded Status and Application of ERISA. The Plan is an unfunded plan. In order to meet the deferred obligations hereunder, the Company may, but shall not be
required to, establish a grantor trust and transfer thereto an amount necessary to provide payments equal to the aggregate balances of the Participants’ accounts. In the event that the Company transfers any amounts to a grantor trust to provide
payments hereunder, such amounts, and all income attributable to such amounts, shall be subject to the claims of the Company’s general creditors. The Company’s obligations hereunder shall constitute general, unsecured obligations, payable
solely out of its general assets, and no Participant or Beneficiary shall have any right to any specific assets. The Plan constitutes a mere promise by the Company to make benefit payments in the future. 
  
 6.2 Limitation on Rights. Neither the establishment of the Plan nor the payment of any
account hereunder shall be construed as giving or granting any person any legal or equitable rights against the Company, the Board, the Committee, or any of their officers, trustees, associates, or agents, other than such as are specifically
conferred by the express terms of the Plan. 
  
 6.3 Satisfaction of Claims.
The payment to a Participant, Beneficiary or other person of an account balance hereunder pursuant to the terms of the Plan shall be in full satisfaction of all claims with respect to such account that such person may have against the Company. Prior
to a Change in Control, the Committee may require any Participant, Beneficiary or other person, as a condition to payment, to execute a waiver and release in such form as shall be designated by the Committee. 
  
 6.4 Nonassignability. No amount deferred under the Plan or any amount credited to an
account shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment, and any attempt to transfer or encumber the same shall be void. 
  
 6.5 Amendment of the Plan. The Committee may, in its sole discretion and without the
consent of any Participant or Beneficiary, amend the Plan at any time and in any manner by duly adopted resolutions, including, without limitation, the acceleration of the payment of any account hereunder; provided, however, that no amendment
shall reduce the amount credited to any account of any Participant immediately prior to such amendment. 
  

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 6.6 Termination of the Plan. The Company may, in its sole discretion, terminate the Plan without the consent of,
or notification to, any person. Upon the termination of the Plan, all account balances shall be paid to Participants and Beneficiaries within a reasonable time (such time determined solely by the Company). 
  
 6.7 Change in Control. If, following a Change in Control, as hereinafter defined, a
Participant determines in good faith that the Company has failed to comply with any of its obligations under the Plan or, if the Company or any other person takes any action to declare the Plan void or unenforceable or institutes any litigation or
other legal action designed to deny or diminish or to recover from any Participant the benefits intended to be provided hereunder, then the Company irrevocably authorizes such Participant to retain counsel of his or her choice at the expense of the
Company to represent such Participant in connection with the initiation or defense of any litigation or other legal action, whether by or against the Company, or any director, officer, stockholder or other person affiliated with the Company, or any
successor thereto in any jurisdiction. For purposes of this Section, a “Change in Control” shall mean: 
  
 (i) Approved Transaction. An action of the Board (or, if approval of the Board is not required as a matter of law, the stockholders
of the Company) approving (a) any consolidation or merger of the Company in which the Company is not the continuing or surviving corporation or pursuant to which shares of Common Stock would be converted into cash, securities or other property,
other than a Merger, or (b) any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Company, or (c) the adoption of any plan or proposal for the
liquidation or dissolution of the Company; 
  
 (ii) Control Purchase. The purchase by any person (as such term is defined in Sections 13(d)(3) and 14(d)(2) of the Exchange Act), corporation or other entity (other than the Company or any employee benefit plan sponsored by an
Employer) of any Common Stock of the Company (or securities convertible into the Company’s Common Stock) for cash, securities or any other consideration pursuant to a tender offer or exchange offer, without the prior consent of the Board and,
after such purchase, such person shall be the “beneficial owner” (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20 percent or more of the combined voting
power of the then outstanding securities of the Company ordinarily (and apart from rights accruing under special circumstances) having the right to vote in the election of directors (calculated as provided in Section (d) of such Rule 13d-3 in the
case of rights to acquire the Company’s securities); 
  
 (iii) Board Change. A change in the composition of the Board during any period of two consecutive years, such that individuals who at the beginning of such period constitute the entire Board shall cease for any
reason to constitute a majority thereof unless the election, or the nomination for election by the Company’s stockholders, of each new director was approved by a vote of at least two-thirds of the directors then still in office who were
directors at the beginning of the period; or 
  
 (iv) Other Transactions. The occurrence of such other transactions involving a significant issuance of voting stock or change in Board composition that the Board determines to be a Change in Control for purposes of the Plan.

  

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 6.8 No Contractual Rights to Serve. Nothing in the Plan shall be interpreted as conferring any right on any
Director to continue as a Director. 
  
 6.9 Severability. If a provision of
the Plan shall be held illegal or invalid, the illegality or invalidity shall not affect the remaining parts of the Plan and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included in the Plan.

  
 6.10 Tax Withholding, Etc. Any payment required under the Plan shall be
subject to all requirements of the law with regard to income and withholding taxes, filings, and making of reports, and the Company and Participant shall use their best efforts to satisfy promptly all such requirements. 
  
 6.11 Applicable Law. The Plan and all rights hereunder and all determinations made and
actions taken pursuant thereto, to the extent not otherwise governed by the Code or the laws of the United States, shall be governed by the laws of the State of Delaware and construed in accordance therewith without giving effect to the principles
of conflicts of laws. 
  

 -9-Second Amendment to 364-Day Credit Agreement

 EXHIBIT 10.42 
  
 SECOND AMENDMENT TO 364-DAY CREDIT AGREEMENT 
  
 THIS SECOND AMENDMENT TO 364-DAY CREDIT AGREEMENT (this “Amendment”), dated as of June 25, 2003, is
entered into among HEALTH NET, INC., a Delaware corporation (the “Borrower”), the Lenders identified on the signature pages hereto (the “Existing Lenders”), the Lenders identified on the signature pages
hereto as the new Lenders (the “New Lenders”), and BANK OF AMERICA, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). Terms used but not otherwise defined herein
shall have the meanings provided in the Credit Agreement described below. 
  
 W I T N E S S E T H 
  
 WHEREAS, the Borrower, the Lenders party thereto, and the Administrative Agent entered into that certain 364-Day Credit Agreement dated as of June 28, 2001, as amended by that certain First Amendment to 364-Day Credit Agreement dated
as of June 27, 2002 (the “Existing Credit Agreement”); 
  
 WHEREAS, the Borrower has requested to extend the Commitment Termination Date for an additional 364 day period, and the Existing Lenders have agreed to extend their respective Commitments and amend the Existing Credit Agreement in
accordance with such request and as provided herein; and 
  
 WHEREAS, the Borrower, the Existing Lenders and the New Lenders have agreed that the New Lenders shall become parties to the Existing Credit Agreement (as amended hereby). 
  
 NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
  
 PART 1 
 DEFINITIONS 
  
 SUBPART 1.1 Certain Definitions. Unless otherwise defined
herein or the context otherwise requires, the following terms used in this Amendment, including its preamble and recitals, have the following meanings: 
  
 “Amended Credit Agreement” means the Existing Credit Agreement as amended hereby. 
  
 “Amendment No. 2 Effective Date” is defined
in Subpart 3.1. 
  
 SUBPART 1.2 Other
Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Amendment, including its preamble and recitals, have the meanings provided in the Existing Credit Agreement. 

 PART 2 
 AMENDMENTS TO EXISTING CREDIT AGREEMENT 
  
 Effective on (and subject to the occurrence of) the Amendment No. 2 Effective Date, the Existing Credit, Agreement is hereby amended in accordance with this Part 2. 
  
 SUBPART 2.1 Designation of Documentation Agents. Fleet National
Bank and Citigroup USA are hereby designated as Co-Documentation Agents for the Lenders under the Existing Credit Agreement. 
  
 SUBPART 2.2 Amendments to Section 1.01. The definition of “Commitment Termination Date” set forth in Section 1.01 of the
Existing Credit Agreement is hereby amended in its entirety to read as follows: 
  
 “Commitment Termination Date” shall mean the date 364 days following June 25, 2003. 
  
 SUBPART 2.3 Amendments to Section 1.01. The definition of
“Maturity Date” set forth in Section 1.01 of the Existing Credit Agreement is hereby amended in its entirety to read as follows: 
  
 “Maturity Date” means the date one year following the Commitment Termination Date. 
  
 SUBPART 2.4 Amendments to Section 2.13. Section 2.13(a) and (b)
of the Existing Credit Agreement are hereby amended in their entireties to read as follows: 
  
 Section 2.13 Interest. 
  
 (a) The Loans comprising each ABR Borrowing shall bear interest at a rate per annum equal to the Alternate Base Rate; provided, however, ABR Loans outstanding on or following the Commitment Termination Date
shall bear interest at a rate per annum equal to the Alternate Base Rate plus .25%. 
  
 (b) The Loans comprising each Eurodollar Borrowing shall bear interest at a rate per annum equal to the LIBO Rate for the Interest Period
in effect for such Borrowing plus the Applicable Rate; provided, however, Eurodollar Loans outstanding on or following the Commitment Termination Date shall bear interest at a rate per annum equal to the LIBO Rate for the Interest Period in
effect for such Borrowing plus the Applicable Rate plus .25% 
  
 SUBPART 2.5 Amendments to Section 2.18. The penultimate sentence in Section 2.18(a) of the Existing Credit Agreement is hereby amended and restated as follows: 
  
 “If any payment hereunder shall be due on a day that is
not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension; provided, however,
that if the Maturity Date is not a Business Day, the date for payment shall be on the preceding Business Day.” 

 SUBPART 2.6 Amendments to Section 3.16. A new Section 3.16 is hereby added to the Existing
Credit Agreement to read as follows: 
  
 Section 3.16 Tax
Shelter Regulations. 
  
 Borrower does
not intend to treat the Loans and related transactions as being a “reportable transaction” (within the meaning of Treasury Regulation Section 1.6011-4). In the event Borrower determines to take any action inconsistent with such intention,
it will promptly notify the Administrative Agent thereof. If Borrower so notifies Administrative Agent, Borrower acknowledges that one or more of the Lenders may treat its Loans as part of a transaction that is subject to Treasury Regulation Section
301.6112-1, and such Lender or Lenders, as applicable, will maintain the lists and other records required by such Treasury Regulation. 
  
 SUBPART 2.7 Amendments to Section 5.01. 
  
 (a) The language “(with copies for each Lender)” in the introductory paragraph is hereby deleted and replaced with “(for further
distribution to each Lender)”; 
  
 (b) the word
“and” at the end of clause (f) is hereby deleted; 
  
 (c) the period at the end of clause (g) is hereby deleted and replaced with “; and”; and 
  
 (d) a new clause (h) is hereby added to Section 5.01 of the Existing Credit Agreement to read as follows: 
  
 (h) promptly after Borrower has notified Administrative
Agent of any intention by Borrower to treat the Loans and related transactions as being a “reportable transaction” (within the meaning of Treasury Regulation Section 1.6011-4), a duly completed copy of IRS Form 8886 or any successor form.

  
 SUBPART 2.8 Amendments to Section 9.12. Section
9.12 of the Existing Credit Agreement is hereby amended in its entirety to read as follows: 
  
 Section 9.12 Confidentiality. 
  
 Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ and its
Approved Funds’ directors, officers, employees and agents, including accountants, legal counsel and other advisors, on a need to know basis (it being understood that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information confidential in accordance with the terms hereof), (b) to the extent requested by any regulatory authority, (c) to the extent, and only to the extent, required by
applicable laws or regulations or by any subpoena or similar legal process, provided that the Person required to disclose such information shall take reasonable efforts (at Borrower’s expense) to ensure that any Information so disclosed shall
be afforded confidential treatment, (d) to any other party to this Agreement, (e) to the extent that such confidential Information is directly relevant to the subject matter thereof, in connection 

 with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or
obligations under this Agreement, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent or
any Lender on a nonconfidential basis from a source other than the Borrower who is not, to the knowledge of the Administrative Agent or such Lender, under an obligation of confidentiality to Borrower with respect to such Information. For the
purposes of this Section, “Information” means all information received from or on behalf of the Borrower or any Subsidiary relating to the Borrower, any Subsidiary or any of their respective businesses or assets, other than any such
information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower; provided that, in the case of information received from or on behalf of the Borrower or any Subsidiary
after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. Notwithstanding anything herein to the contrary,
“Information” shall not include, and the Borrower, the Administrative Agent and each Lender may disclose to any and all Persons, without limitation of any kind, any information with respect to the “tax treatment” and “tax
structure” (in each case, within the meaning of Treasury Regulation Section 1.6011-4) of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to the Borrower, the
Administrative Agent or such Lender relating to such tax treatment and tax structure; provided that with respect to any document or similar item that in either case contains information concerning the tax treatment or tax structure of the
transaction as well as other information, this sentence shall only apply to such portions of the document or similar item that relate to the tax treatment or tax structure of the Loans and transactions contemplated hereby. 
  
 SUBPART 2.9 Amendments to Schedule 2.01. Schedule 2.01
of the Existing Credit Agreement is hereby replaced with Schedule 2.01 attached hereto. 
  
 PART 3 
 CONDITIONS TO EFFECTIVENESS 
  
 SUBPART 3.1 Amendment No. 2 Effective Date. This Amendment
shall be and become effective as of the date hereof (the “Amendment No. 2 Effective Date”) when all of the conditions set forth in this Part 3 shall have been satisfied, and thereafter this Amendment shall be known, and may
be referred to, as the “Amendment”. 
  
 SUBPART 3.2 Execution of Counterparts of Amendment. The Administrative Agent shall have received counterparts (or other evidence of execution, including telephonic message, satisfactory to the Administrative Agent) of this
Amendment, which collectively shall have been duly executed on behalf of each of the Borrower, the Existing Lenders, the New Lenders and the Administrative Agent. 

 SUBPART 3.3 Fees and Expenses. The Borrower has paid all fees and expenses incurred in
connection with the negotiation, preparation, execution and delivery of this Amendment and the other transactions contemplated herein including, without limitation, the reasonable legal fees and expenses of Moore & Van Allen PLLC, counsel to the
Administrative Agent. 
  
 SUBPART 3.4 Other Items.
The Administrative Agent shall have received such other documents, agreements or information which may be reasonably requested by the Administrative Agent. 
  
 PART 4 
 JOINDER OF NEW LENDERS

  
 From and after the Amendment No. 2 Effective Date, each of
the New Lenders shall be a party to and be bound by the provisions of the Existing Credit Agreement (as amended hereby) and shall have the rights and obligations of a Lender thereunder. 
  
 Each New Lender (i) confirms that it has received a copy of the Existing Credit Agreement and such other documents and
information as it has deemed appropriate to make its own credit analysis and decision to enter into this Amendment; (ii) agrees that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Existing Credit Agreement (as amended hereby); (iii) appoints and authorizes the Administrative
Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Existing Credit Agreement (as amended hereby) as are delegated to the Administrative Agent by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto; (iv) agrees that it will perform in accordance with their terms all of the obligations that by the terms of the Existing Credit Agreement (as amended hereby) are required to be performed by it as a
Lender; and (v) which is not a United States person shall have attached all forms required under Section 2.17(f) of the Existing Credit Agreement. 
  
 PART 5 
 MISCELLANEOUS 

 
 SUBPART 5.1 Representations and Warranties. The Borrower
hereby represents and warrants to the Administrative Agent, the Existing Lenders and the New Lenders that, after giving effect to this Amendment, (a) no Default or Event of Default exists under the Credit Agreement and (b) the representations and
warranties set forth in Section 3 of the Existing Credit Agreement are, subject to the limitations set forth therein, true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date).

  
 SUBPART 5.2 Reaffirmation of Obligations. The
Borrower hereby ratifies the Credit Agreement and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement applicable to it and (b) that it is responsible for the observance and full performance of its respective
obligations under the Credit Agreement. 
  
 SUBPART 5.3
Cross-References. References in this Amendment to any Part or Subpart are, unless otherwise specified, to such Part or Subpart of this Amendment. 

 SUBPART 5.4 Instrument Pursuant to Existing Credit Agreement. This Amendment is executed
pursuant to the Existing Credit Agreement and shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with the terms and provisions of the Existing Credit Agreement. 
  
 SUBPART 5.5 References in Other Credit Documents. At such time
as this Amendment shall become effective pursuant to the terms of Subpart 3.1, all references to the “Credit Agreement” shall be deemed to refer to the Credit Agreement as amended by this Amendment. 
  
 SUBPART 5.6 Counterparts/Telecopy. This Amendment may be
executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. Delivery of executed counterparts of the Amendment by telecopy shall
be effective as an original and shall constitute a representation that an original shall be delivered. 
  
 SUBPART 5.7 Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW
YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF LAW RULES). 
  
 SUBPART 5.8 Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns. 
  
 SUBPART 5.9 General.
Except as amended hereby, the Existing Credit Agreement and all other credit documents shall continue in full force and effect. 
  
 [Remainder of Page Intentionally Left Blank] 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the 364-Day Credit
Agreement as of the date first above written. 
  

							
	BORROWER:	 	HEALTH NET, INC.,
	 	 	 	 	 a Delaware corporation

				
	 	 	 	 	 By:
	 	 /s/ Wisdom Lu

	 	 	 	 	 Name:
	 	 Wisdom Lu

	 	 	 	 	 Title:
	 	 TREASURER

		
	ADMINISTRATIVE AGENT:	 	BANK OF AMERICA, N.A.
				
	 	 	 	 	 By:
	 	 /s/ Kevin L. Ahart

	 	 	 	 	 Name:
	 	 Kevin L. Ahart

	 	 	 	 	 Title:
	 	 Assistant Vice President

		
	EXISTING LENDERS:	 	BANK OF AMERICA, N.A.
				
	 	 	 	 	 By:
	 	 /s/ Joseph L. Corah

	 	 	 	 	 Name:
	 	 Joseph L. Corah

	 	 	 	 	 Title:
	 	 Principal

			
	JPMORGAN CHASE BANK (formerly known as The Chase Manhattan Bank)	 	 	 	 
				
	 By:
	 	 /s/ Dawn Lee Lum

	 	 	 	 
	 Name:
	 	 Dawn Lee Lum
	 	 	 	 
	 Title:
	 	 Vice President
	 	 	 	 
			
	 	 	 	 	FLEET NATIONAL BANK
				
	 	 	 	 	 By:
	 	 /s/ Judi N. Cyr

	 	 	 	 	 Name:
	 	 Judi N. Cyr

	 	 	 	 	 Title:
	 	 Senior Vice President

			
	 	 	 	 	THE BANK OF NOVA SCOTIA
				
	 	 	 	 	 By:
	 	 /s/ R.P. Reynolds

	 	 	 	 	 Name:
	 	 R.P. Reynolds

	 	 	 	 	 Title:
	 	 Director

		
	 	 	CITICORP USA, INC.
				
	 	 	 	 	 By:
	 	 [ILLEGIBLE]

	 	 	 	 	 Name:
	 	 [ILLEGIBLE]

	 	 	 	 	 Title:
	 	 Vice President

  
 HEALTH NET, INC.

 SECOND AMENDMENT 
  

 7 

							
	 	 	SUMITOMO MITSUI BANKING CORPORATION
				
	 	 	 	 	 By:
	 	 /s/ AL GALLUZZO

	 	 	 	 	 Name:
	 	 AL GALLUZZO

	 	 	 	 	 Title:
	 	 SENIOR VICE PRESIDENT

			
	 	 	 	 	THE BANK OF NEW YORK
				
	 	 	 	 	 By:
	 	 /s/ Rebecca K. Levine

	 	 	 	 	 Name:
	 	 Rebecca K. Levine

	 	 	 	 	 Title:
	 	 Vice President

			
	 	 	 	 	WELLS FARGO BANK, N.A.
				
	 	 	 	 	 By:
	 	 [ILLEGIBLE]

	 	 	 	 	 Name:
	 	 
	 	 	 	 	 Title:
	 	 
			
	 	 	 	 	UNION BANK OF CALIFORNIA, N.A.
				
	 	 	 	 	 By:
	 	 /s/ ROBERT LEEPER

	 	 	 	 	 Name:
	 	 ROBERT LEEPER

	 	 	 	 	 Title:
	 	 SVP

							
	 	 	NEW LENDERS:	 	BANK OF THE WEST
				
	 	 	 	 	 By:
	 	 /s/ William R. Murray

	 	 	 	 	 Name:
	 	 William R. Murray

	 	 	 	 	 Title:
	 	 Vice President

			
	 	 	 	 	MORGAN STANLEY BANK
				
	 	 	 	 	 By:
	 	 /s/ Jaap L. Tonckens

	 	 	 	 	 Name:
	 	 Jaap L. Tonckens

	 	 	 	 	 Title:
	 	 Vice President

	 	 	 	 	 	 	 Morgan Stanley Bank

			
	 	 	 	 	UBS AG, CAYMAN ISLANDS BRANCH
				
	 	 	 	 	 By:
	 	 /s/ Patricia O’Kicki

	 	 	 	 	 Name:
	 	 Patricia O’Kicki

	 	 	 	 	 Title:
	 	 Director

				
	 	 	 	 	 By:
	 	 /s/ Wilfred V. Saint

	 	 	 	 	 Name:
	 	 Wilfred V. Saint

	 	 	 	 	 Title:
	 	 Associate Director

	 	 	 	 	 	 	 Banking Products

	 	 	 	 	 	 	 Services, US

  
 HEALTH NET, INC.

 SECOND AMENDMENT 

 SCHEDULE 2.01 
  
 COMMITMENTS 
 (364-Day Credit Agreement) 
  

							
	 Lender

	  	Commitment Amount

	  	Commitment Percentage

	 
	 Bank of America, N.A.
	  	$	23,500,000	  	13.428571429	%
	 JPMorgan Chase Bank
	  	$	23,500,000	  	13.428571429	%
	 Fleet National Bank
	  	$	23,000,000	  	13.142857143	%
	 Citicorp USA, Inc.
	  	$	22,500,000	  	12.857142857	%
	 The Bank of Nova Scotia
	  	$	15,000,000	  	8.571428571	%
	 Sumitomo Mitsui Banking Corporation
	  	$	7,500,000	  	4.285714286	%
	 The Bank of New York
	  	$	10,000,000	  	5.714285714	%
	 Wells Fargo Bank
	  	$	10,000,000	  	5.714285714	%
	 Union Bank of California, N.A.
	  	$	10,000,000	  	5.714285714	%
	 Bank of the West
	  	$	10,000,000	  	5.714285714	%
	 Morgan Stanley
	  	$	10,000,000	  	5.714285714	%
	 UBS Warburg
	  	$	10,000,000	  	5.714285714	%
	 	  	
	
	  	
	

	 Total:
	  	$	175,000,000	  	100.000000000	%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]