Document:

Amendment to Employment Letter Agreement Steven H. Nelson

 Exhibit 10.15 
 December 16, 2004 
  
 Mr. Steven Nelson 
 [Address] 
 [Address] 
  
 Dear Steve: 
  
 Congratulations! We are pleased to confirm the terms and conditions of your promotion with Health Net, Inc (the
“Company”). We are confident that you will continue to make a valuable contribution to the Company’s growth and development. Your signature will represent the discussions and agreements reached between you and the Company to amend the
June 16, 2004 letter setting forth the terms and conditions of your employment by the Company (the “Agreement”). Capitalized terms used, but not otherwise defined herein, shall have the meaning ascribed to such terms in the
Agreement. 
  
 Accordingly, in conformance with Section 17 of the
Agreement, you and the Company hereby agree and acknowledge that each of the sections of the Agreement listed below is amended and restated effective January 1, 2005 as follows: 
  

	 	1.	Salary. You will be paid a monthly base salary of $33,333.33, less applicable withholdings, (payable on a bi-weekly basis) (“Base Salary”), which covers all hours
worked. Generally, your base salary will be reviewed annually but the Company reserves the right to change your compensation from time-to-time. 

  

	 	2.	Duties. Your job title will be President, Health Net Northeast and your position will be located in Shelton, Connecticut. Your responsibility will be for the overall
management of the Company’s subsidiary Health Plans located in Connecticut, New Jersey and New York, but you may be assigned other duties as needed and your duties may change from time to time on reasonable notice, based on your skills and the
needs of the Company. You will report to Jeffrey Folick, EVP Regional Health Plans and Specialty Companies, but your reporting relationship may be changed from time-to-time at the discretion of the Company. 

  

	 	7.	 Stock Options. You have been granted an option to purchase 20,000 shares of the common stock of Health Net, Inc. on June 14, 2004. These options have a
ten-year term and vest at the rate of 1/4th of the shares covered thereby on each of the first through fourth
anniversaries of the grant date. Upon approval by the Compensation and Stock Option Committee of the Board of Directors of your achievement of documented 

	 	 
performance goals, you will be granted an option to purchase 20,000 shares of the common stock of Health Net, Inc. If the Compensation and Stock Option
Committee of the Board of Directors approves your achievement of the documented performance goals, you will be granted an additional 10,000 shares of common stock of Health Net, Inc. The 30,000 options granted to you will be granted under the
applicable Health Net, Inc. Stock Option Plan, in accordance with and subject to each term of such plan and the Company’s form of option agreement as adopted by the Compensation and Stock Option Committee of the Board of Directors of the
Company (the “Company”). These options will have a ten-year term (subject to earlier termination as provided in the Stock Option Agreement or the Stock Option Plan) and will have an exercise price equal to the closing sales price of the
Common Stock on the date of grant. The option will vest at the rate of 50% on the 2nd anniversary, 25% on the
3rd anniversary and 25% on the 4th anniversary of the grant date. As set forth in the applicable Stock Option Plans and in the Stock Option Agreement used by the Company, vesting of your
options may be accelerated upon the consummation of certain “Change in Control” transactions (as defined in such documents) subject to the terms and conditions of such documents. Please note that the definition of “Change in
Control” contained in these documents is different in various respects from the definition set forth in Section 11(d) of your Agreement. 

  

Except as expressly provided in this letter, the terms and conditions of the Agreement (including, without limitation, the at-will employment term)
shall remain in full force and effect. Please confirm your agreement with and acceptance of these terms by signing one copy of this letter and returning it to me. The other copy is for your records. If you have any questions or there is any matter
addressed in this letter that you wish to discuss further, please do not hesitate to contact me. 
  

	
	Sincerely,
	
	/s/    Jay Gellert
	 Jay Gellert
 President & Chief Executive
Officer

  
 I agree to the amendments to the terms
of my letter agreement of June 14, 2004 as set forth in this letter. 
  

	
	
	/s/    Steven H. Nelson
	Steven H. Nelson

	
	 
	
	Date: December 16, 2004Certain Compensation Arrangements Company Executive Officers

 Exhibit 10.16 
  
 CERTAIN COMPENSATION ARRANGEMENTS 
 WITH HEALTH NET, INC.’S EXECUTIVE OFFICERS 
  
 Base Salaries 
  
 The annual base salaries for the Company’s
executive officers as of February 24, 2005 are as set forth below. 
  

					
	 NAME AND POSITION

	  	BASE SALARY

	 
	 Jay M. Gellert
 President and Chief Executive Officer
	  	$	900,000	 
		
	 Jeffrey M. Folick
 Executive Vice President, Regional Health Plans and Specialty Companies
	  	$	540,000	 
		
	 Stephen D. Lynch
 President, Regional Health Plans
	  	$	450,000	(1)
		
	 Karin D. Mayhew
 Senior Vice President of Organization Effectiveness
	  	$	375,000	 
		
	 Steven H. Nelson
 President of Health Net of the Northeast
	  	$	400,000	(2)
		
	 Anthony S. Piszel
 Executive Vice President, Chief Financial Officer
	  	$	500,000	 
		
	 Marvin P. Rich
 Executive Vice President, Operations
	  	$	525,000	 
		
	 Jonathan Scheff, M.D.
 Senior Vice President and Chief Medical Officer
	  	$	341,550	(3)
		
	 B. Curtis Westen, Esq.
 Senior Vice President, General Counsel and Secretary
	  	$	500,000	 

				
	 NAME AND POSITION

	  	BASE SALARY

	 Christopher P. Wing
 Executive Vice President, Regional Health Plans and Specialty Companies
	  	$	525,000
		
	 James E. Woys
 President of Health Net Federal Services
	  	$	475,000

	(1)	As reported in the Company’s Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on February 9, 2005, Mr. Lynch’s salary was increased in
January 2005 in conjunction with his appointment to President, Regional Health Plans for the Company. 

	(2)	As reported in the Company’s Form 8-K filed with the SEC on March 10, 2005, Mr. Nelson was designated, on March 4, 2005, as a Section 16 reporting officer. Mr. Nelson’s
salary was increased in January 2005 in conjunction with his appointment to President of Health Net of the Northeast. 

	(3)	Reflects the $11,550 increase in Mr. Scheff’s annual base salary for 2005 approved by the Compensation Committee on February 24, 2005. 

  
 Annual Incentive Compensation to Be Earned in 2005 
  
 On February 24, 2005, the Compensation Committee established the 2005
performance goals for the eligibility of the Company’s executive officers for bonus awards under the Plan. The Compensation Committee designated the executive officers eligible to participate in the Plan for 2005. The 2005 performance goals
were set in a manner consistent with the 2004 goals, and include pre-established corporate, business unit and individual performance goals. Specifically, for 2005, the Plan is to be funded based on the Company attaining its earnings per share goals
as approved by the Compensation Committee. Actual incentive awards for 2005 are to be paid on performance against pre-established corporate, business unit and individual performance goals. Corporate goals for 2005 are based upon earnings per-share,
commercial membership and employee satisfaction improvement. Business unit goals vary, but are based on financial and operating performance and employee satisfaction improvement. The Compensation Committee established individual target bonuses so
that a participant under the Plan would be entitled to receive from 50% to 125% of his or her base salary as a target bonus, with a payout ranging from 0% to 125% of target bonus depending upon the attainment of total performance goals. The
Compensation Committee has the discretion to reduce but not increase the amount of a participant’s bonus under the Plan.Certain Compensation Arrangements Company Board of Directors

 Exhibit 10.17 
  
 CERTAIN COMPENSATION ARRANGEMENTS 
 WITH HEALTH NET, INC.’S 
 NON-EMPLOYEE DIRECTORS 
  
 Upon recommendation of the Governance Committee of the Board of Directors of
Health Net, Inc. (the “Company”), the Board of Directors of the Company has approved the payment of the following compensation to each non-employee director of the Board in respect of his/her service on the Board: 
  

	 	•	 	an annual retainer of $30,000 per year for each non-employee director (other than the Chairman of the Board); 

  

	 	•	 	an annual retainer of $5,000 for each Chair of the Compensation Committee, Governance Committee and Finance Committee; 

  

	 	•	 	an annual retainer of $15,000 for the Chair of the Audit Committee; 

  

	 	•	 	meeting fee of $2,000 for each meeting of the Board of Directors attended, and a $1,000 fee for each committee meeting attended, other than the Audit Committee, which meeting fee is
$2,000 for each audit committee meeting attended; 

  

	 	•	 	in lieu of the above listed retainer and meeting fees, the Chairman of the Board receives $15,833 per month, for his services; and 

  

	 	•	 	reimbursement of customary expenses for attending Board, committee and shareholder meetings. 

  
 In addition, the non-employee directors of the Company are eligible to participate in the Company’s Third Amended and
Restated Non-Employee Director Stock Option Plan (the “Director Plan”) and the Company’s 1998 Stock Option Plan (the “1998 Plan”). Under the Director Plan, 500,000 shares of Common Stock are reserved for initial grants of
nonqualified stock options to directors when they join the Company’s Board and automatic annual grants of nonqualified stock options on each year such director is re-elected to the Company’s Board. Each non-employee director grant entitles
the optionee to purchase the granted number of shares of Common Stock (which number is determined pursuant to grant formula provisions in the Director Plan) at an exercise price equal to the fair market value of Common Stock on the date of such
grant. Each grant vests as to 33 1/3% of the shares each year on the anniversary of the date of the grant,
provided that the options become immediately exercisable in the event of a “change in control” of the Company, as defined in the Director Plan and 1998 Plan, as applicable 
  
 Furthermore, the Company maintains a deferred compensation plan pursuant to
which non-employee directors are eligible to defer up to 100% of their compensation. The compensation deferred under such plan is credited with earnings or losses measured by the rate of return on investments elected by plan participants. Each plan
participant is fully vested in all deferred compensation and earnings credited to his or her account.

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