Document:

Severance and Change of Control Agreement

 Exhibit 10.2 
 EXHIBIT B 
 PHOENIX TECHNOLOGIES LTD. 
 SEVERANCE AND CHANGE OF CONTROL AGREEMENT 
 This Severance and Change of Control Agreement (the “Agreement”) is entered into by and between Richard Arnold (“Executive”) and Phoenix Technologies Ltd. (the “Company”), effective as of
September 26, 2006 (the “Effective Date”). 
 RECITALS 
 1. It is possible that the Company could terminate Executive’s employment with the Company. The Board of Directors of the Company (the
“Board”) recognizes that such consideration can be a distraction to Executive and can cause Executive to consider alternative employment opportunities. The Compensation Committee of the Board (pursuant to its delegated authority)
has determined that it is in the best interests of the Company and its stockholders to assure that the Company will have the continued dedication and objectivity of Executive, notwithstanding the possibility, threat or occurrence of such a
termination. 
 2. The Compensation Committee of the Board believes that it is in the best interests of the Company and its stockholders to
provide Executive with an incentive to continue his employment and to motivate Executive to maximize the value of the Company for the benefit of its stockholders. 
 3. The Compensation Committee of the Board believes that it is imperative to provide Executive with certain severance benefits upon certain terminations of Executive’s employment with the Company. These benefits
will provide Executive with enhanced financial security and incentive and encouragement to remain with the Company. 
 4. Certain capitalized
terms used in the Agreement are defined in Section 6 below. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows: 
 1. Term of Agreement. This Agreement will have an initial term of three (3) years commencing on the Effective Date. Notwithstanding the
previous sentence, in the event of a Change of Control within three years of the Effective Date, the term of this Agreement will extend through the one-year anniversary of such Change of Control. 
 2. At-Will Employment. The Company and Executive acknowledge that Executive’s employment is and will continue to be at-will, as defined under
applicable law. If Executive’s employment terminates for any reason, Executive will not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement. 
  

 3. Severance Benefits. 
 (a) Termination other than for Cause. If the Company (or any parent or subsidiary of the Company employing Executive) terminates Executive’s
employment with the Company (or any parent or subsidiary of the Company) for a reason other than Cause, Executive’s Disability or Executive’s death, then, subject to Section 4, Executive will receive the following severance benefits
from the Company: 
 (i) Accrued Compensation. Executive will be entitled to receive all accrued vacation, expense reimbursements and
any other benefits due to Executive through the date of termination of employment in accordance with the Company’s then existing employee benefit plans, policies and arrangements. 
 (ii) Severance Payments. Executive will be paid continuing payments of severance pay for six (6) months from the date of such termination at
a monthly rate equal to Executive’s monthly base salary rate, as then in effect. Such payments shall be paid periodically in accordance with the Company’s normal payroll policies. The period during which the Company pays the Executive
severance shall be referred to as the “Severance Period.” 
 (iii) Bonus. If the Executive is terminated, the Executive
shall be entitled to a bonus equal to the number of full months of Executive’s employment with the Company during the fiscal year in which the termination occurs, divided by twelve (12), and multiplied by the Executive’s bonus, if any, for
the previous fiscal year. 
 (iv) Continued Benefits. Executive will receive Company-paid coverage for Executive and Executive’s
eligible dependents under the Company’s Benefit Plans during the Severance Period. 
 (iv) Option Exercisability. The vested
portion of any stock options held by Executive as of the termination date will remain exercisable until the earlier of (i) the term of the applicable option or (ii) the date six (6) months from the termination date. 
 (v) Payments or Benefits Required by Law. Executive will receive such other compensation or benefits from the Company as may be required by law.

 (b) Certain Terminations in Connection with a Change of Control. If Executive terminates his employment with the Company (or any
parent or subsidiary of the Company) for Good Reason or the Company (or any parent or subsidiary of the Company employing Executive) terminates Executive’s employment with the Company (or any parent or subsidiary of the Company) for a reason
other than Cause, Executive’s Disability or Executive’s death within two (2) months prior to or twelve (12) months following a Change of Control, then Executive shall receive the following: 
 (i) Severance and other benefits set forth in Section 3(a)(i)-(v); and 
  

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 (ii) The equity acceleration noted in this paragraph. If the Change of Control occurs within six
(6) months of the Executive’s date of hire with the Company, 1/3 of the unvested shares subject to all of Executive’s outstanding rights to purchase or receive shares of the Company’s common stock (including, without limitation,
through awards of stock options, stock appreciation rights, restricted stock units or similar awards), and 1/3 of the shares of Company common stock subject to a Company right of repurchase or forfeiture upon Executive’s termination of
employment for any reason (whether acquired by Executive before or after the date of this Agreement) (collectively, “Equity”), shall become fully vested and exercisable as of the date of such termination. If the Change of Control occurs
after six (6) months but less than twelve (12) months after the Executive’s date of hire with the Company, 2/3 of the Equity granted to the Executive shall become fully vested and exercisable as of the date of such termination. If the
Change of Control occurs on or after twelve (12) months from the date of Executive’s date of hire with the Company, all of the Executive’s Equity shall become fully vested and exercisable as of the date of such termination. In all
other respects, such awards will continue to be subject to the terms and conditions of the plans, if any, under which they were granted and any applicable agreements between the Company and Executive. 
 (c) Other Terminations. If Executive voluntarily terminates Executive’s employment with the Company or any parent or subsidiary of the
Company (other than for Good Reason within two (2) months prior to or twelve (12) months following a Change of Control) or if the Company (or any parent or subsidiary of the Company employing Executive) terminates Executive’s
employment with the Company (or any parent or subsidiary of the Company) due to Executive’s death, Disability or for Cause, then Executive will (i) receive his earned but unpaid base salary through the date of termination of employment,
(ii) receive all accrued vacation, expense reimbursements and any other benefits due to Executive through the date of termination of employment in accordance with established Company plans, policies and arrangements, and (iii) not be
entitled to any other compensation or benefits (including, by way of example but not limitation, accelerated vesting of any equity awards) from the Company except to the extent provided under agreement(s) relating to any equity awards or as may be
required by law (for example, “COBRA” coverage under Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”)); provided, that Executive shall be able to exercise any options and retain any
restricted stock awards that are vested as of the date of termination of Executive’s employment. 
 (d) Exclusive Remedy. In the
event of a termination of Executive’s employment with the Company (or any parent or subsidiary of the Company), and whether separate or in connection with a Change of Control, the provisions of this Section 3 are intended to be and are
exclusive and in lieu of any other rights or remedies to which Executive may otherwise be entitled, whether at law, tort or contract, in equity, or under this Agreement. Executive will be entitled to no benefits, compensation or other payments or
rights upon termination of employment other than those benefits expressly set forth in this Section 3. 
 4. Conditions to Receipt of
Severance. 
 (a) Separation Agreement and Release of Claims. The receipt of any severance pursuant to Section 3 will be
subject to Executive signing and not revoking a separation agreement and release of claims as attached hereto as Exhibit A. No severance pursuant to Section 3 will be paid or provided until the separation agreement and release of claims
becomes effective. 
  

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 (b) Noncompetition; Nonsolicitation. The receipt of any severance benefits pursuant to
Section 3 will be subject to Executive not violating the provisions of Section 7. In the event Executive breaches the provisions of Section 7, all continuing payments and benefits to which Executive would have been entitled pursuant
to Section 3 will immediately cease. 
 (c) Section 409A. Any cash severance to be paid pursuant to Section 3 will not
be paid during the six-month period following Executive’s termination of employment, unless the Company reasonably determines that paying such amounts immediately following Executive’s termination of employment would not result in the
imposition of additional tax under Section 409A of the Code (“Section 409A”), in which case such amounts shall be paid in accordance with normal payroll practices in effect at the time of Executive’s termination from employment.
If no cash severance is paid to Executive upon termination of his employment as a result of the previous sentence, on the first day following such six-month period, the Company will pay Executive a lump-sum amount equal to the cumulative amounts
that would have otherwise been paid to Executive pursuant to Section 3. Thereafter, Executive will receive his cash severance payments pursuant to Section 3 in accordance with the Company’s normal payroll practices in effect at the
time of Executive’s termination from employment. 
 5. Limitation on Payments. 
 (a) In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute
“parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 5, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits under
this Agreement shall be payable either 
 (i) in full, or 
 (b) as to such lesser amount which would result in no portion of such severance benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the
applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits under this Agreement, notwithstanding that all
or some portion of such severance benefits may be taxable under Section 4999 of the Code. Unless the Company and Executive otherwise agree in writing, any determination required under this Section 5 shall be made in writing by the
Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon the Executive and the Company for all purposes. For purposes of making the calculations required by this
Section 5, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and
Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 5. The Company shall bear all costs the Accountants may reasonably incur in
connection with any calculations contemplated by this Section 5. 
 6. Definition of Terms. The following terms referred to in
this Agreement will have the following meanings: 
  

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 (a) Benefit Plans. “Benefit Plans” means plans, policies or arrangements that the
Company sponsors (or participates in) and that immediately prior to Executive’s termination of employment provide Executive and/or Executive’s eligible dependents with medical, dental, and/or vision benefits. Benefit Plans do not include
any other type of benefit (including, but not by way of limitation, disability, life insurance or retirement benefits). A requirement that the Company provide Executive and Executive’s eligible dependents with coverage under the Benefit Plans
will not be satisfied unless the coverage is no less favorable than that provided to Executive and Executive’s eligible dependents immediately prior to Executive’s termination of employment. Notwithstanding any contrary provision of this
Section 6(a), but subject to the immediately preceding sentence, the Company may, at its option, satisfy any requirement that the Company provide coverage under any Benefit Plan by (i) reimbursing Executive’s premiums under COBRA
after Executive has properly elected continuation coverage under COBRA (in which case Executive will be solely responsible for electing such coverage for Executive and Executive’s eligible dependents), or (ii) instead providing coverage
under a separate plan or plans providing coverage that is no less favorable or by paying Executive a lump sum payment sufficient to provide Executive and Executive’s eligible dependents with equivalent coverage under a third party plan that is
reasonably available to Executive and Executive’s eligible dependents. 
 (b) Cause. “Cause” means a failure by
Executive to substantially perform Executive’s duties as an employee, other than a failure resulting from the Executive’s complete or partial incapacity due to physical or mental illness or impairment, (ii) a willful act by Executive
that constitutes misconduct, (iii) circumstances where Executive intentionally or negligently imparts material confidential information relating to the Company or its business to competitors or to other third parties other than in the course of
carrying out Executive’s duties, (iv) a material violation by Executive of a federal or state law or regulation applicable to the business of the Company, (v) a willful violation of a material Company employment policy or the
Company’s insider trading policy, (vi) any act or omission by Executive constituting dishonesty (other than a good faith expense account dispute) or fraud, with respect to the Company or any of its affiliates, which is injurious to the
financial condition of the Company or any of its affiliates or is injurious to the business reputation of the Company or any of its affiliates, (vii) Executive’s failure to cooperate with the Company in connection with any actions, suits,
claims, disputes or grievances against the Company or any of its officers, directors, employees, stockholders, affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns, whether or not such cooperation would be adverse
to Executive’s own interest, or (viii) Executive’s conviction or plea of guilty or no contest to a felony. 
 (c) Change of
Control. “Change of Control” means the occurrence of any of the following: 
 (i) the sale, lease, conveyance or other
disposition of all or substantially all of the Company’s assets to any “person” (as such term is used in Section 13(d) of the Securities Exchange Act of 1934, as amended), entity or group of persons acting in concert; 

(ii) any person or group of persons becoming the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of
securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities; 
  

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 (iii) a merger or consolidation of the Company with any other corporation, other than a merger or
consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its
controlling entity) more than 50% of the total voting power represented by the voting securities of the Company or such surviving entity (or its controlling entity) outstanding immediately after such merger or consolidation; or 
 (iv) a contest for the election or removal of members of the Board that results in the removal from the Board of at least 50% of the incumbent members
of the Board. 
 (d) Disability. “Disability” means that Executive has been unable to perform the principal functions
of his duties due to a physical or mental impairment, but only if such inability has lasted or is reasonably expected to last for at least six (6) months. Whether Executive has a Disability will be determined by the Board based on evidence
provided by one or more physicians selected or approved by the Board. 
 (e) Good Reason. “Good Reason” means
(without Executive’s consent) any one of the following events occurs: (i) a material reduction in Executive’s title, authority, status, or responsibilities, unless the Executive is provided with a comparable position (i.e., a position
of equal or greater organizational level, duties, authority, compensation and status); provided, however, that a reduction in duties, position or responsibilities solely by virtue of the Company being acquired and made part of a larger entity shall
not constitute “Good Reason”; (ii) the reduction of Executive’s aggregate base salary and target bonus opportunity as in effect immediately prior to such reduction (other than a reduction applicable to executives generally); or
(iii) a relocation of Executive’s principal place of employment by more than fifty (50) miles. 
 7. Restrictive
Covenants. 
 (a) Noncompete. For a period beginning on the Effective Date and ending twelve (12) months after Executive
ceases to be employed by the Company (or any parent or subsidiary of the Company), Executive agrees to not, directly or indirectly, engage in (whether as an employee, consultant, agent, proprietor, principal, partner, stockholder, corporate officer,
director or otherwise), nor have any ownership interest in or participate in the financing, operation, management or control of, any person, firm, corporation or business that competes with Company (or any parent or subsidiary of the Company).

 (b) Nonsolicit. For a period beginning on the Effective Date and ending twelve (12) months after Executive ceases to be
employed by the Company (or any parent or subsidiary of the Company), Executive, directly or indirectly, whether as employee, owner, sole proprietor, partner, director, member, consultant, agent, founder, co-venturer or otherwise, will not:
(i) solicit, induce or influence any person to leave employment with the Company (or any parent or subsidiary of the Company); or (ii) directly or indirectly solicit business from any of the Company’s customers and users on behalf of
any business that directly competes with the principal business of the Company (or any parent or subsidiary of the Company). 
 (c)
Understanding of Covenants. Executive represents that he (i) is familiar with the foregoing covenants not to compete and not to solicit, and (ii) is fully aware of his obligations hereunder, including, without limitation, the
reasonableness of the length of time, scope and geographic coverage of these covenants. 
  

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 8. Litigation. Executive agrees to cooperate with the Company beginning on the Effective Date and
thereafter (including following Executive’s termination of employment for any reason), by making himself reasonably available to testify on behalf of the Company or any of its affiliates in any action, suit, or proceeding, whether civil,
criminal, administrative, or investigative, and to assist the Company, or any affiliate, in any such action, suit, or proceeding, by providing information and meeting and consulting with the Board or its representatives or counsel, or
representatives or counsel to the Company, or any affiliate as reasonably requested. The Company agrees to reimburse Executive for all expenses actually incurred in connection with his provision of testimony or assistance, and agrees to pay
Executive a reasonable daily fee in the event Executive is required to spend more than ten (10) hours time in any one month providing such testimony or assistance to the Company. 
 9. Successors. 
 (a) The
Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets will assume
the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all
purposes under this Agreement, the term “Company” will include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described in this Section 9(a) or which becomes
bound by the terms of this Agreement by operation of law. 
 (b) The Executive’s Successors. The terms of this Agreement and all
rights of Executive hereunder will inure to the benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
 10. Notice. 
 (a) General.
Notices and all other communications contemplated by this Agreement will be in writing and will be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage
prepaid. In the case of Executive, mailed notices will be addressed to him at the home address which he most recently communicated to the Company in writing. In the case of the Company, mailed notices will be addressed to its corporate headquarters,
and all notices will be directed to the attention of its General Counsel. 
 (b) Notice of Termination. Any termination by the Company
for Cause or by Executive for Good Reason or as a result of a voluntary resignation will be communicated by a notice of termination to the other party hereto given in accordance with Section 10(a) of this Agreement. Such notice will indicate
the specific termination provision in this Agreement relied upon, will set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated, and will specify the termination date
(which will be not more than thirty (30) days after the giving of such notice). 
  

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 11. Miscellaneous Provisions. 
 (a) No Duty to Mitigate. Executive will not be required to mitigate the amount of any payment contemplated by this Agreement, nor will any such
payment be reduced by any earnings that Executive may receive from any other source. 
 (b) Resignation as Director. Upon the
Company’s written request, Executive agrees to promptly resign as a member of the Company’s (or any Company subsidiary’s) Board of Directors following any termination of his employment with the Company (or any parent or subsidiary of
the Company). 
 (c) Waiver. No provision of this Agreement will be modified, waived or discharged unless the modification, waiver or
discharge is agreed to in writing and signed by Executive and by an authorized officer of the Company (other than Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the
other party will be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
 (d)
Headings. All captions and section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement. 
 (e) Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto and supersedes in their entirety all prior representations, understandings, undertakings or agreements (whether oral
or written and whether expressed or implied) of the parties with respect to the subject matter hereof, including without limitation, any formal offer letter or employment agreement by and between the Company and Executive. No future agreements
between the Company and Executive may supersede this Agreement, unless they are in writing and specifically mention this Agreement. 
 (f)
Choice of Law. The laws of the State of California (without reference to its choice of laws provisions) will govern the validity, interpretation, construction and performance of this Agreement. Any legal action or other legal proceeding
relating to this Agreement shall be brought or otherwise commenced in any state or federal court located in Santa Clara County, California and both parties expressly and irrevocably consent and submit to the jurisdiction of each state and federal
court located in Santa Clara County, California (and each appellate court located in the State of California), in connection with any such legal proceeding; agree not to assert (by way of motion, as a defense or otherwise), in any such legal
proceeding commenced in any state or federal court located in Santa Clara County, California, any claim that the party is not subject personally to the jurisdiction of such court, that such legal proceeding has been brought in an inconvenient forum,
that the venue of such proceeding is improper or that this Agreement or the subject matter of this Agreement may not be enforced in or by such court. 
 (g) All legal fees and expenses which may reasonably incur as a result of any dispute or contest between Executive and the Company with respect to the validity or enforceability of, or liability under, any provision
of this Agreement, or any guarantee of performance thereof (including as a result of any dispute or contest by Executive about the amount of any payment pursuant to this Agreement), shall be paid promptly, by the non-prevailing party in such dispute
or contest. 
  

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 (h) Severability. The invalidity or unenforceability of any provision or provisions of this
Agreement will not affect the validity or enforceability of any other provision hereof, which will remain in full force and effect. 
 (i)
Withholding. All payments made pursuant to this Agreement may be subject to withholding of applicable income and employment taxes. 
 (j) Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 
 [Remainder of Page Intentionally Left Blank] 
  

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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its
duly authorized officer, as of the day and year set forth above. 
  

					
	COMPANY	 	PHOENIX TECHNOLOGIES LTD.
			
		 	By:	 	 /s/ Scott C. Taylor

		 	Title:	 	Vice President, General Counsel and Secretary
		
	EXECUTIVE	 	RICHARD ARNOLD
			
		 	By:	 	 /s/ Richard Arnold

			
		 	Title:	 	  

  

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 EXHIBIT A 
 RELEASE AGREEMENT 
 I understand that my position
with PHOENIX TECHNOLOGIES, LTD. (the “Company”) terminated effective
                    , 200   (the “Separation Date”). The Company has agreed that if I choose to sign
this Release, the Company will extend to me certain benefits (minus the standard withholdings and deductions, if applicable) pursuant to the terms of the Severance and Change of Control Agreement (the “Agreement”) entered
into as of                     , 2006, between me and the Company, and any agreements incorporated therein by reference. I understand that I
am not entitled to such severance benefits unless I sign this Release. I understand that, regardless of whether I sign this Release, the Company will pay me all of my accrued salary and vacation through the Separation Date and any unreimbursed
business expenses, to which I am entitled by law. 
 In consideration for the severance benefits I am receiving under the Agreement, I hereby
release the Company and its officers, directors, agents, attorneys, employees, shareholders, parents, subsidiaries, and affiliates from any and all claims, liabilities, demands, causes of action, attorneys’ fees, damages, or obligations of
every kind and nature, whether they are now known or unknown, arising at any time prior to the date I sign this Release. This general release includes, but is not limited to: all federal and state statutory and common law claims, claims related to
my employment or the termination of my employment or related to breach of contract, tort, wrongful termination, discrimination, wages or benefits, or claims for any form of equity or compensation. Notwithstanding the release in the preceding
sentence, I am not releasing any right of indemnification I may have for any liabilities arising from my actions within the course and scope of my employment with the Company or within the course and scope of my role as a member of the Board of
Directors and/or officer of the Company. 
 I UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. In giving
this release, which includes claims which may be unknown to me at present, I hereby waive the benefit of any provision of California law, and of any other jurisdiction, which is similar to the following: “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.”  
 I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the federal Age Discrimination in Employment Act of
1967, as amended (“ADEA”). I also acknowledge that the consideration given for the waiver in the above paragraph is in addition to anything of value to which I was already entitled. I have been advised by this writing, as
required by the ADEA that: (a) my waiver and release do not apply to any claims that may arise after my signing of this Release; (b) I should consult with an attorney prior to executing this Release; (c) I have twenty-one
(21) days within which to consider this Release (although I may choose to voluntarily execute this Release earlier); (d) I have seven (7) days following the execution of this release to revoke the Release; and (e) this Release
will not be effective until the eighth day after this Release has been signed both by me and by the Company. 
  

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 I UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. 
  

			
	 By:
	 	  

		
	 Date:
	 	  

  

 -12-Second Amendment to Bridge Loan Agreement

 Exhibit 10.3 
 SECOND AMENDMENT TO BRIDGE LOAN AGREEMENT 
 THIS SECOND AMENDMENT TO BRIDGE LOAN AGREEMENT
(this “Amendment”), dated as of November 6, 2006, is entered into among HEALTH NET, INC., a Delaware corporation (the “Borrower”), the Lenders party thereto and THE BANK OF NOVA
SCOTIA, as administrative agent (the “Administrative Agent”). 
 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 Bridge Loan Agreement dated as of
June 23, 2006, as amended by the First Amendment dated as of September 21, 2006 (the “Existing Bridge Loan Agreement”); 
 WHEREAS, the Borrower has requested that the Required Lenders agree to amend certain provisions of the Existing Bridge Loan Agreement as hereinafter set forth; 
 WHEREAS, each Lender has agreed to such modification on the terms and conditions set forth herein. 
 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: 
 “Amendment 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 Bridge Loan Agreement. 
 PART 2 
 AMENDMENTS TO EXISTING BRIDGE LOAN AGREEMENT 
 Effective on (and subject to the occurrence of) the Amendment Effective Date, the Existing Bridge Loan Agreement is hereby amended in accordance with this Part 2. 
 SUBPART 2.1. The following definition is added to Section 1.01 of the Existing Bridge Loan Agreement in appropriate alphabetical order:

 “Second Amendment Effective Date” means November 6, 2006. 

 SUBPART 2.2. The first sentence contained in Section 7.02 of the Existing Bridge Loan
Agreement is hereby deleted in its entirety and replaced with the following: 
 The provisions of the following Sections of
the Revolving Credit Agreement as in effect on the Second Amendment Effective Date are incorporated herein by reference in their entirety with the same effect as if set forth in full herein (with the defined terms used therein, including defined
terms used in other defined terms, having the meanings assigned to them in the Revolving Credit Agreement except as expressly set forth below): 
 PART 3 
 CONDITIONS TO EFFECTIVENESS 
 SUBPART 3.1 Amendment Effective Date. This Amendment shall become effective as of the date hereof (the “Amendment 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 of this Amendment, which collectively shall have been duly executed on behalf of each of the Borrower, the Lenders
and the Administrative Agent. 
 PART 4 
 MISCELLANEOUS 
 SUBPART 4.1 Representations and Warranties. The Borrower hereby
represents and warrants to the Administrative Agent and the Lenders that, after giving effect to this Amendment, (a) no Default or Event of Default exists under the Existing Bridge Loan Agreement and (b) the representations and warranties
set forth in Article V of the Existing Bridge Loan Agreement (i) that contain a materiality qualification are true and correct on and as of the date hereof, subject to the limitations set forth therein, as if made on and as of such date (except
to the extent such representations and warranties expressly relate to another date in which case such representations and warranties shall be true and correct as of such date) and (ii) that do not contain a materiality qualification are true
and correct in all material respects on and as of the date hereof, subject to the limitations set forth therein, as if made on and as of such date (except to the extent such representations and warranties expressly relate to another date in which
case such representations and warranties shall be true and correct in all material respects as of such date). 
 SUBPART 4.2
Cross-References. References in this Amendment to any Part or Subpart are, unless otherwise specified, to such Part or Subpart of this Amendment. 
 SUBPART 4.3 Instrument Pursuant to Existing Bridge Loan Agreement. This Amendment is executed pursuant to the Existing Bridge Loan Agreement and shall (unless otherwise expressly indicated therein) be
construed, administered and applied in accordance with the terms and provisions of the Existing Bridge Loan Agreement. 

 SUBPART 4.4 References in Other Loan Documents. At such time as this Amendment shall become
effective pursuant to the terms of Subpart 3.1, all references to the “Bridge Loan Agreement” shall be deemed to refer to the Bridge Loan Agreement as amended by this Amendment. 
 SUBPART 4.5 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 or other electronic means shall be effective as an original and shall constitute a
representation that an original shall be delivered. 
 SUBPART 4.6 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 4.7 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 4.8 General. Except as amended hereby, the Existing Bridge Loan Agreement and all
other loan 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 Bridge Loan 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:	 		 	THE BANK OF NOVA SCOTIA
				
		 		 	By:	 	/s/ V.H. Gibson
		 		 		 	Name:	 	V.H. Gibson
		 		 		 	Title:	 	Assistant Agent

									
	LENDER:	 		 	THE BANK OF NOVA SCOTIA
				
		 		 	By:	 	/s/ V.H. Gibson
		 		 		 	Name:	 	V.H. Gibson
		 		 		 	Title:	 	Assistant Agent

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