Document:

Separation Agreement effective as of December 9, 2009 with Jeffrey M. Zalla

 EXHIBIT 10.38 
 SEPARATION AGREEMENT 
 The following is an agreement
(the “Agreement”) executed as of August 28, 2009, between Jeffrey M. Zalla (“Employee”) and Chiquita Brands International, Inc. (the “Company”) with respect to Employee’s separation from the Company.

 In consideration of the mutual promises contained in this Agreement, the Company and Employee agree as follows: 

1. Employee will separate from the service of, and will resign as an officer and employee of the Company and all of its subsidiaries and
affiliates on November 13, 2009, which shall be his last day of employment with the Company (the “Separation Date”). As of the Separation Date, Employee will resign all his positions as director, officer or otherwise with
respect to the Company and its subsidiaries, including, without limitation, Employee’s position on the Company’s Benefit Committee. The Company and Employee agree that, from and after the Separation Date (and notwithstanding the provisions
of Sections 4(a) and 4(f) hereof), Employee will not perform services for the Company or its subsidiaries and affiliates to any extent which would result in Employee’s separation not being treated as a separation from service for purposes of
Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”). 
 2. In accordance with its
normal payment schedule, Company shall pay to Employee his normal salary through the close of business on the Separation Date, subject to all normal withholdings and taxes. Employee shall accrue vacation through the Separation Date, and on or before
the Separation Date, the Company shall pay to Employee in a lump sum all remaining earned and accrued, banked and/or carryover vacation pay due in accordance with the Company’s paid time off policy. Upon the payments of such amounts, Employee
will have been paid all amounts due for salary and for earned and accrued, banked and/or carryover vacation pay as of the Separation Date. Such amount shall be paid on the normal payment date for the pay period immediately following the Separation
Date. 
 3. Company’s Obligations. Subject to the provisions of Section 15 hereof: 
 (a) Cash Benefit. The Company will pay Employee a cash benefit of $704,000 (“Cash Benefit”), which amount is equivalent to
the sum of Employee’s current annual base salary and annual bonus target. In order to ensure compliance with the provisions of Section 409A of the Internal Revenue Code, the Employee will receive his Cash Benefit as follows:
(A) $352,000 will be paid in a lump sum on the sixth month anniversary of the Separation Date and (B) the remainder of Employee’s Cash Benefit will be paid in equal bi-weekly installments, beginning with the first payroll date
following the sixth month anniversary of the Separation Date and ending on the one year anniversary of the Separation Date. 
  

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 (b) Pro-Rata Annual Bonus. The Company will pay to Employee an amount equal to a
pro-rata bonus for the period of 2009 during which he was employed by the Company, i.e., through the Separation Date. The amount will be determined based on Employee’s actual performance had his employment not terminated and the
Company’s actual performance for purposes of the Company’s Management Incentive Plan (“MIP”) as determined by the Company pursuant to the MIP for all other MIP-eligible employees. The amount will be paid on May 14, 2010, or
as soon as administratively feasible thereafter, or the date on which MIP bonus payments are made to other MIP-eligible employees for the 2009 performance year, whichever is later. 
 (c) Health Benefits. Employee will retain any health benefits coverage in which he is enrolled through the last day of the month in
which the Separation Date occurs. If Employee extends the medical and/or dental and/or vision benefits in which he is enrolled as of the Separation Date by timely electing coverage under COBRA (which right is not contingent upon his effectiveness of
this Agreement), the Company will pay the full premium for COBRA coverage for the first twelve months after the Separation Date. For the remaining balance of the COBRA period, Employee will be responsible for paying the full premium for COBRA
coverage in effect from time to time, in accordance with the ordinary terms and conditions applicable to COBRA coverage. All other benefits in which Employee is enrolled or eligible as of the Separation Date will cease as of the Separation Date.

 (d) Outplacement Service; Legal Fees. Employee will receive 12 months of career transition services through OI
Partners, commencing on the Separation Date. The outplacement service will be forfeited if Employee does not initiate outplacement services within thirty (30) days following the Separation Date. The outplacement service will not be exchangeable
for any other payment or benefit. The Company will reimburse Employee up to an aggregate of $10,000 for legal fees incurred by Employee in connection with the negotiation and execution of this Agreement, which reimbursement shall be made in a lump
sum within 60 days following the Separation Date. 
 (e) Stock Options and Restricted Stock. Employee will have one year
after the Separation Date (but not beyond the expiration date of the option) to exercise the stock options for 75,000 shares granted to him under the Company’s Stock and Incentive Plan, all of which are vested as of the Separation Date. All
stock options that are not exercised by the one-year anniversary of the Separation Date shall immediately terminate. In addition, 17,553 shares of unvested restricted stock units previously granted to Employee under that Plan shall be deemed to have
vested as of the Separation Date and will be delivered to Employee on May 14, 2010 or as soon as administratively practicable thereafter, provided, however that the shares will not be delivered to Employee until the earliest date permissible
which would not result in a violation of Section 409A of the Internal Revenue Code. 
 (f) Defined Contribution Plan
Benefits. The Company acknowledges that Employee is fully vested in his Accounts under the Company’s Capital Accumulation Plan (the “CAP”). The full amount of Employee’s Deferral Contribution

  

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Account (including earnings therein) under the CAP, and the portions of his other Accounts (including earnings therein) under the CAP which vested prior to January 1, 2005, shall be paid to
Employee in accordance with the terms of the CAP, as amended so as to comply with the provisions of Section 409A of the Internal Revenue Code. The full amount of Employee’s balance under the Company’s Deferred Compensation Plan shall
be paid to Employee in accordance with the terms of the Deferred Compensation Plan, as amended so as to comply with the provisions of Section 409A of the Internal Revenue Code (“Section 409A”). The Company acknowledges that Employee
is fully vested in his Accounts under the Company’s Savings and Investment Plan (the “SIP”). The full amount of Employee’s Accounts (including earnings therein) under the SIP shall be paid to Employee in accordance with the terms
of the SIP. Notwithstanding any provision of the CAP to the contrary, Employee shall remain eligible to receive any Company matching contributions or credits to the CAP and the SIP with respect to the 2009 plan year, with the amount of any such
match to be based on compensation paid to Employee through the Separation Date and otherwise eligible for Company matching contributions under the terms of the applicable plan. Any such contributions or credits shall be credited under the CAP (in
lieu of crediting under the SIP with respect to otherwise eligible SIP contributions) at the time applicable to active plan participants under the applicable plan and shall only be made if such contributions or credits are provided to active plan
participants with respect to the 2009 plan year. 
 (g) Insurance. The Company shall not cancel any coverage for Employee
under any director and officer liability insurance policy otherwise maintained by the Company with respect to any other current or former officers and directors and shall not discriminate against Employee vis-à-vis other officers and former
officers in any purchase or renewal of any such policy or any purchase of an extended reporting period under a policy that is not renewed. 
 4. Employee’s Obligations. 
 (a) Employee will transfer his
responsibilities in an appropriate manner and use reasonable best efforts to effect a smooth transition; 
 (b) Employee will
not following the date hereof represent or bind the Company or any of its subsidiaries or enter into any agreement on behalf of the Company or any of its subsidiaries; 
 (c) Employee will return to the Company no later than the Separation Date his Company credit cards, keys, identification cards and laptop computer (if applicable); 
 (d) Employee will return to the Company no later than the Separation Date all other Company property and materials, including but not
limited to computer hardware and accessories, computer software disks or other media, computer files, books, documents, records and memoranda; 
  

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 (e) Employee will no later than the Separation Date repay all cash advances and file a final
expense report; 
 (f) Employee will fully cooperate and assist the Company with any litigation matters or agency proceedings
for which Employee’s testimony or cooperation is requested (including following the Separation Date), provided that Employee is compensated for any reasonable and necessary expenses incurred or actual income lost as a result of his cooperation
and assistance. 
 (g) At the Company’s request, Employee will (i) sign all necessary documents to effect
Employee’s resignation from all director, officer or other positions with the Company and its subsidiaries, as well as any such positions with joint venture companies and other companies in which the Company and its subsidiaries have a direct
or indirect ownership interest and (ii) sign all documentation, and take any other action, necessary to transfer to the Company’s designee all title or other interest Employee has in “nominee” or similar shares of any company in
which Chiquita has a direct or indirect ownership interest, if any. 
 (h) From and after the Separation Date, Employee will
hold in a fiduciary capacity for the sole benefit of the Company all information, knowledge or data relating to the Company or any of its subsidiaries and their respective businesses and investments, including investments in joint ventures, which
information, knowledge or data the Company or any of its subsidiaries consider to be proprietary, confidential, or not public knowledge (including but not limited to trade secrets) that Employee obtains or has previously obtained during
Employee’s employment by the Company or any of its subsidiaries (“Proprietary, Confidential or Non-Public Information”), provided, however, that Proprietary, Confidential or Non-Public Information shall not include information that is
now or later becomes part of the public domain, unless such information becomes part of the public domain as a result of any action or inaction on the part of Employee. Until and from and after the Separation Date, Employee will not, except as
required by applicable law, directly or indirectly use, communicate, divulge or disseminate any Proprietary, Confidential or Non-Public Information for any purpose not authorized by the Company or its subsidiaries, or for any purpose not related to
the performance of Employee’s work for the Company or any of its subsidiaries. Neither the Company’s senior executive officers or directors nor Employee shall by speech or actions disparage the other party; provided, however, that nothing
herein shall prevent either party from responding truthfully in any legal or regulatory proceeding. At any time requested by the Company or any of its subsidiaries, and in any event on or prior to the Separation Date, Employee shall return all
copies of all documents, materials or information in any form, written or electronic or otherwise, that constitute, contain, refer or relate to any Proprietary, Confidential or Non-Public Information. 
 (i) For a period of one year after the Separation Date, Employee will not, without the written consent of the Company, directly or
indirectly, engage in, invest in or participate in any business or activity conducted by those entities listed on Appendix A hereto (any such company a “Competing Business”), whether as an employee, officer, director, partner, joint
venturer, consultant, independent contractor, agent, representative,

  

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shareholder or in any other capacity (other than as a holder of less than five percent (5%) of any class of publicly traded securities of any such Competing Business). 
 (j) For a period of one year after the Separation Date, Employee will not, without the written consent of the Company, directly or
indirectly, solicit, entice, persuade or induce, or attempt to solicit, entice, persuade or induce (i) any customer, supplier, distributor or other person or entity that has a business relationship, contractual or otherwise, with the Company or
any of its subsidiaries (or any of their respective joint ventures) to direct or transfer away from the Company or any of its subsidiaries (or such joint ventures), or eliminate, interfere with, disrupt or reduce or modify to the detriment of the
Company or any of its subsidiaries (or such joint ventures) any business, patronage or source of supply, or (ii) any person to leave the employment or service of the Company or any of its subsidiaries (or any such joint ventures) (other than
persons employed in a clerical, non-professional or non-managerial position). 
 (k) Employee understands and agrees that the
restrictions set forth in paragraphs (i) and (j) above, including, without limitation, the duration and scope of such restrictions, are reasonable and necessary to protect the legitimate business interests of the Company and its
subsidiaries. Employee further agrees that the Company will be entitled to seek and obtain injunctive relief against Employee in the event of any actual or threatened breach of such restrictions, and Employee hereby consents to the exercise of
personal jurisdiction and venue in a federal or state court of competent jurisdiction located in Hamilton County, Ohio, and Employee agrees not to initiate any legal action relating to the subject matter hereof in any other forum. Employee
understands and agrees that this Agreement shall be construed and enforced in accordance with the laws of the State of Ohio applicable to contracts executed in and to be performed in that State. If any provision of this Agreement is determined to be
unenforceable or unreasonable by any Court, then such provision will be modified or omitted only to the extent necessary to make such provisions and the remaining provisions of this Agreement enforceable. 
 5. General Release. In exchange for the payments and benefits identified in the Agreement, which Employee acknowledges are in
addition to anything of value to which he is already entitled, Employee hereby releases, settles and forever discharges the Company, its parent, subsidiaries, affiliates, joint venture companies, successors and assigns, together with their past and
present directors, officers, employees, agents, insurers, attorneys, and any other party associated with the Company, to the fullest extent permitted by applicable law, from any and all claims, causes of action, rights, demands, debts, liens,
liabilities or damages of whatever nature, whether known or unknown, suspected or unsuspected, which Employee ever had or may now have against the Company or any of the foregoing. This includes, without limitation, any claims, liens, demands, or
liabilities arising out of or in any way connected with Employee’s employment with the Company and the termination of that employment, pursuant to any federal, state or local laws regulating employment such as the Civil Rights Act of 1964, the
Civil Rights Act of 1991, the Americans With Disabilities Act of 1990, the Family and Medical Leave Act of 1993 and the Civil Rights Act known as 42 USC 1981, the Employee Retirement Income Security Act of 1974 (“ERISA”), the Worker
Adjustment and Retraining Notification Act (“WARN”), the Fair Labor Standards Act of 1938, as

  

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well as all federal, state and local laws, except that this release shall not affect any rights of Employee for benefits payable under any Social Security, Worker’s Compensation or
Unemployment laws. Employee acknowledges and agrees that the payments and benefits payable pursuant to this Agreement are in lieu of any payments or benefits which may otherwise be due to Employee in connection with Employee’s separation or
termination of employment, including the Chiquita Brands International, Inc. Executive Officer Severance Pay Plan. Employee shall not be entitled to any recovery, in any action or proceeding that may be commenced on the Employee’s behalf in any
way arising out of or relating to the matters released under Section 5 or Section 6 hereof. Notwithstanding the foregoing, nothing herein shall release the Company from any claim based on (i) Employee’s vested benefits under the
employee benefit plans of the Company or (ii) Employee’s eligibility for indemnification in accordance with applicable laws or the certificate of incorporation or by-laws of the Company (or any affiliate or subsidiary). 
 6. Waiver and Release Under ADEA and OWBPA. Employee further expressly and specifically waives any and all rights or claims under the
Age Discrimination in Employment Act of 1967 and the Older Workers Benefit Protection Act (collectively the “Act”). Employee acknowledges and agrees that this waiver of any right or claim under the Act (the “Waiver”) is knowing
and voluntary, and specifically agrees as follows: (a) that this Agreement and this Waiver is written in a manner which he understands; (b) that this Waiver specifically relates to rights or claims under the Act; (c) that he does not
waive any rights or claims under the Act that may arise after the date of execution of this Agreement; (d) that he waives rights or claims under the Act in exchange for consideration in addition to anything of value to which he is already
entitled; and (e) that he is advised in writing to consult with an attorney prior to executing this Agreement. 
 7. It is
understood and agreed that for purposes of this Agreement, the term “Company” as used herein, shall include not only Chiquita Brands International, Inc., but also all of its direct or indirect subsidiaries or affiliated companies.

 8. This Agreement shall bind the Employee’s heirs, executors, administrators, personal representatives, spouse,
dependents, successors and assigns. 
 9. This Agreement shall not be construed as an admission by the Company of any wrongdoing
or any violation of any federal, state or local law, regulation or ordinance, and the Company specifically disclaims any wrongdoing whatsoever against Employee on the part of itself, its employees, representatives or agents. 
 10. Neither this Agreement, nor any right or interest hereunder, shall be assignable by Employee, his beneficiaries or legal representatives
without the prior written consent of an officer of the Company. 
 11. This Agreement shall in all respects be interpreted,
enforced and governed by the laws of the State of Ohio. Except as otherwise provided in paragraph 4(k) of this Agreement, the parties agree that any controversy or claim arising out of or relating in any manner to this Agreement or to
Employee’s relationship with the Company shall be

  

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settled by arbitration administered by the American Arbitration Association under its Employment Dispute Resolution Rules and in accordance with the Due Process Protocol for Mediation and
Arbitration of Statutory Disputes Arising Out of the Employment Relationship, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. 
 12. If any provision of this Agreement is determined to be unenforceable by any court, then such provision will be modified or omitted to
the extent necessary to make the remaining provisions of this Agreement enforceable. 
 13. The Company may withhold from
amounts payable under this Agreement all federal, state, local, and foreign taxes that are required to be withheld by applicable laws or regulations. 
 14. Employee and the Company intend for the provisions of this Agreement to comply with the requirements of Section 409A and the Company and Employee have no reason to believe that the provisions of
this Agreement violate such section. 
 15. This Agreement is effective as of the date hereof. However, the obligations of the
Company under Section 3 hereof will not become effective unless following the Separation Date Employee re-affirms in writing his agreement to the provisions of this Agreement, and re-executes Sections 5 and 6 hereof, effective as of a date
following the Separation Date. Employee acknowledges that he understands that(a) he has twenty one (21) days after receipt of this Agreement to decide whether to accept it and that he may revoke any acceptance of this Agreement within
(7) days of such acceptance and (b) he will have 21 days following the Separation Date to decide whether to complete the re-execution and re-affirmation described in the preceding sentence and may revoke such re-execution and
re-affirmation within 7 days of such re-execution and re-affirmation. The obligations of the Company under this Agreement shall not become effective until the second seven (7) day revocation period has expired. 
 Notwithstanding the foregoing, and provided that the obligations set forth in this Agreement have otherwise been complied with fully, the
provisions of this Section 15 shall be subject to the following: 
 (a) If Employee dies or becomes disabled prior to the
Separation Date, this Agreement shall remain in full force and effect notwithstanding the fact that Employee has not executed a document re-affirming his agreement to the provisions of this Agreement and re-executing Sections 5 and 6 hereof; and

 (b) Upon Employee’s re-affirmation of his agreement to the provisions of this Agreement and re-execution of Sections 5
and 6 hereof effective as of the Separation Date, the Agreement shall remain in full force and effect. 
 16. No modification or
amendment of this Agreement will be valid unless made in writing and signed by or on behalf of each party by a duly authorized representative of Employee and the Company. 
  

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 TAKE THIS AGREEMENT HOME, READ IT AND CAREFULLY CONSIDER ALL OF ITS PROVISIONS BEFORE SIGNING IT. IT
INCLUDES A RELEASE OF KNOWN AND UNKNOWN CLAIMS. 
 IN WITNESS WHEREOF, the Company hereby offers this Agreement to Employee on this 28th day
of August, 2009. 
  

			
	CHIQUITA BRANDS INTERNATIONAL, INC.
		
	By:	 	 /s/James E. Thompson

		 	James E. Thompson
	Its:	 	Senior Vice President, General Counsel and Secretary

 ACCEPTANCE 
 I hereby agree to the terms of this Agreement and acknowledge my acceptance of it this 28th day of August, 2009.

  

					
	WITNESS:	 	 	  	 
			
	 /s/ Cindy D. LaBoiteaux
	 		  	 /s/ Jeffrey M. Zalla

		 		  	Jeffrey M. Zalla

  

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 APPENDIX A 
 The Competing Businesses consist of: 
 (A) the following companies and their subsidiaries and
affiliates, as well as any company which acquires all or substantially all of the banana, fresh fruit or fresh cut fruit business, as the case may be, of any of the following companies: 
 Dole Food Company, Inc. 
 Fresh Del Monte Produce Inc. 
 Fyffes plc 
 Noboa Group. 
 and 
 (B) any company that was, at the time of
your termination of employment with the Company or one of its subsidiaries, in direct competition with the Company or any of its subsidiaries or joint ventures in the bagged or packaged salad, vegetable or fruit products businesses in the United
States, the fresh or processed produce business in the Far East, or the processed fruit or fruit ingredients business in the United States or Europe, provided that you were employed in or provided substantial services to such business or businesses
conducted by the Company or any of its subsidiaries or joint ventures within two years prior to the date of your termination of employment. 
  

 Page 9 of 9Amended and Restated Employment Agreement

 Exhibit 10.1 
 ANGELEE F. BOUCHARD 
 AMENDED AND RESTATED EMPLOYMENT
AGREEMENT 
 This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of
December 14, 2009 (the “Effective Date”), by and between Health Net, Inc., a Delaware corporation (the “Company”), with its principal place of business located at 21650 Oxnard Street, Woodland Hills, California 91367, and
Angelee F. Bouchard (“Executive”). This Agreement amends and restates in its entirety the Prior Agreement (as defined below). 
 RECITALS 
 WHEREAS, the Company and Executive previously entered into that certain Employment Agreement dated
March 26, 2003, which set forth the terms of Executive’s employment with the Company; and 
 WHEREAS, the Company and
Executive now desire to amend and restate the Prior Agreement on the terms and conditions set forth herein, and to supersede the Prior Agreement in all respects effective as of the Effective Date. 
 NOW, THEREFORE, in consideration of the following covenants, conditions and promises contained herein, and other good and valuable
consideration, the Company and Executive hereby agree as follows: 
 1. Duties and Salary. 
 A. Duties. Executive’s title will be Senior Vice President, General Counsel and Corporate Secretary, but may be changed at the
discretion of the Company to a title that reflects a similarly situated senior executive position. Executive shall report directly to Jay Gellert, President and Chief Executive Officer of the Company, but Executive’s reporting relationship may
be changed from time to time at the discretion of the Company. Executive’s duties and responsibilities are to act as the Company’s most senior legal counsel responsible for advising the Company’s Board of Directors and senior
executives on matters of corporate and employee law, compliance, regulation and governance, and to oversee and direct all internal and external legal activities on behalf of the Company, but the Company reserves the right to assign Executive other
duties as needed and to change Executive’s duties from time to time on reasonable notice, based on Executive’s skills and the needs of the Company. In the event that Executive performs any such additional duties, Executive shall not be
entitled to an increase in compensation beyond that specified in this Agreement. 

 B. Salary. Executive will be paid a base salary at the annual rate of $400,000, which
salary will be paid on a pro-rated bi-weekly basis, less applicable withholdings (“Base Salary”), covering all hours worked. Generally, Executive’s Base Salary will be reviewed annually, but the Company reserves the right to change
Executive’s compensation from time-to-time. Pursuant to the charter of the Compensation Committee of the Company’s Board of Directors (the “Committee”), any adjustment to Executive’s compensation must be made with the
approval of the Committee and, in the event that Executive constitutes one of the top two (2) highest paid executive officers of the Company, with the ratification of the Company’s Board of Directors. 
 C. Disclosure of Personal Compensation Information. As an “executive officer” of the Company (as such term is defined in
the rules and regulations of the Securities and Exchange Commission (“SEC”)), information regarding Executive’s employment arrangements with the Company, including, among other things, the terms of this Agreement and any stock option
agreement, restricted stock agreement, restricted stock unit agreement, performance share agreement and/or severance agreement Executive enters into with the Company from time to time (collectively, “Personal Compensation Information”),
may be disclosed in filings with the SEC, the New York Stock Exchange (“NYSE”) and/or other regulatory organizations upon the occurrence of certain triggering events. Such triggering events include, but are not limited to, the execution of
this Agreement and any amendments thereto, changes in Executive’s Base Salary, any annual incentive payment (whether in the form of cash or equity) awarded to Executive (in the past or after the date hereof), and the establishment of
performance goals under the Company’s incentive plans. Executive’s execution of this Agreement will serve as Executive’s acknowledgement that Executive’s Personal Compensation Information may be publicly disclosed from time to
time in filings with the SEC, NYSE or otherwise as required by applicable law. 
 2. Adjustments and Changes in Employment
Status. Executive understands that the Company reserves the right to make personnel decisions regarding Executive’s employment, including, but not limited to, decisions regarding any promotion, salary adjustment, transfer or disciplinary
action, up to and including Termination (as defined below), consistent with the needs of the business of the Company. 
 For
purposes of this Agreement, the capitalized terms “Termination” and “Terminate,” shall mean Executive’s Separation from Service (as defined below) from the Company. A “Separation from Service” with respect to
Executive shall mean a “separation from service,” as defined in Treasury Regulation Section 1.409A-1(h). 
 3.
Protection of Proprietary and Confidential Information. Executive agrees that Executive’s employment creates a relationship of confidence and trust with the Company with respect to Proprietary and Confidential Information (as defined
below) of the Company learned by Executive during Executive’s employment. 
 A. Executive agrees not to directly or
indirectly use or disclose any of the Proprietary and Confidential Information of the Company or any of its affiliates at any time except in connection with the services Executive provides to such entities. “Proprietary and Confidential
Information” shall mean trade secrets, confidential knowledge, data or any other proprietary or confidential information of the Company or any of its affiliates, or of any

  

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customers, members, employees or directors of any of such entities, but shall not include any information that (i) was publicly known and made generally available in the public domain prior
to the time of disclosure to Executive by the Company or (ii) becomes publicly known and made generally available after disclosure to Executive by the Company other than as a result of a disclosure by Executive in violation of this Agreement.
By way of illustration but not limitation, “Proprietary and Confidential Information” includes: (i) trade secrets, documents, memoranda, reports, files, correspondence, lists and other written and graphic records affecting or relating
to any such entity’s business; (ii) confidential marketing information including without limitation marketing strategies, customer and client names and requirements, services, prices, margins and costs; (iii) confidential financial
information; (iv) personnel information (including without limitation employee compensation); and (v) other confidential business information. 
 B. Executive further agrees that at all times during Executive’s employment and thereafter, Executive will keep in confidence and trust all Proprietary and Confidential Information, and that
Executive will not use or disclose any Proprietary and Confidential Information or anything related to such information without the written consent of the Company, except as may be necessary in the ordinary course of performing Executive’s
duties to the Company. 
 C. All Company property, including, but not limited to, Proprietary and Confidential Information,
documents, data, records, apparatus, equipment and other physical property, whether or not pertaining to Proprietary and Confidential Information, provided to Executive by the Company or any of its affiliates or produced by Executive or others in
connection with Executive’s providing services to the Company or any of its affiliates shall be and remain the sole property of the Company or its affiliates (as the case may be) and shall be returned promptly to such appropriate entity as and
when requested by such entity. Executive shall return and deliver all such property upon termination of Executive’s employment, and Executive may not take any such property or any reproduction of such property upon such termination. 

D. Executive recognizes that the Company and its affiliates have received and in the future will receive information from third parties
which is private, proprietary or confidential information subject to a duty on such entity’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. Executive agrees that during Executive’s
employment, and thereafter, Executive owes such entities and such third parties a duty to hold all such private, proprietary or confidential information received from third parties in the strictest confidence and not to disclose it, except as
necessary in carrying out Executive’s work for such entities consistent with such entities’ agreements with such third parties, and not to use it for the benefit of anyone other than for such entities or such third parties consistent with
such entities’ agreements with such third parties. 
 E. Executive’s obligations under this Section 3 shall
continue after the Termination of Executive’s employment and any breach of this Section 3 shall be a material breach of this Agreement. 
 4. Drug Screening; Background Check; Physical Exam. 
 A. Drug Screening. Not
applicable – intentionally omitted. 
  

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

 A. Employee Benefit Programs. Executive shall be eligible to participate in the Company’s various employee benefit
programs and plans in place from time to time in accordance with their terms, as long as Executive remains employed by the Company and Executive meets the applicable participation requirements. These benefit programs and plans currently include paid
time off (“PTO”), holidays, group medical, dental, vision, term life, and short and long term disability insurance and participation in the Company’s 401(k) plan, tuition reimbursement plan and deferred compensation plan. The Company
or its subsidiaries or affiliates may modify, terminate or amend any benefit or plan in its discretion, retroactively or prospectively, subject only to applicable law. 
 B. Required Insurance. Executive will be covered by workers’ compensation insurance and state disability insurance, as required by state law. 
  

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 C. Fringe Benefits. Executive will be entitled to such fringe benefits and
perquisites as are provided by the Company from time to time, in accordance with the Company’s policies, practices and procedures, and shall receive such additional fringe benefits and perquisites as the Company may, in its discretion, from
time-to-time provide. Without limiting the generality of the foregoing, Executive will be entitled to be reimbursed up to the amount of $5,000 per year for documented costs incurred for personal financial counseling services provided to Executive,
including tax preparation, as long as Executive remains employed by the Company. 
 D. Incentive Bonus. Executive will be
eligible to participate in the Health Net, Inc. Executive Officer Incentive Plan (“EOIP”) in accordance with the terms of the EOIP, which provides Executive with a target bonus for each plan year equal to 70% of Executive’s Base
Salary as additional compensation according to the terms of the EOIP. The actual bonus payment will range from 0% to 200% of target depending upon the actual results achieved, and specific, individually tailored measures will be established by the
Company that must be achieved by Executive in order for Executive to be eligible to receive bonus payments for a given plan year. It is understood that the Committee and the Company will award bonus amounts, if any, as it deems appropriate
consistent with the EOIP. 
 E. Expenses. Subject to and in accordance with the Company’s written policies for
business and travel expenses, Executive will receive reimbursement for all business travel and other out-of-pocket expenses reasonably incurred by Executive in the performance of Executive’s duties pursuant to this Agreement. 
 8. Equity Grants. 
 A. Initial Equity Grant. As soon as practicable on or following the Effective Date and upon approval by the Board of Directors (or appropriate committee thereof), Executive will be granted a non-qualified stock option (the
“Stock Option”) to purchase 35,000 shares of Common Stock of the Company (the “Common Stock”) which will become fully vested and exercisable on the third anniversary of the date of grant. All Stock Options granted to Executive
will be granted under one of the Company’s Long-Term Incentive Plans and will be subject to the terms and conditions set forth in such plan and the agreement executed in connection with such grant. 
 In addition, as soon as practicable on or following the Effective Date and upon approval by the Board of Directors (or appropriate committee
thereof), Executive will be granted 20,000 restricted stock units of the Company’s common stock (the “RSUs”) which will vest and become non-forfeitable at the rate of one-fourth of the shares covered on each of the first, second,
third and fourth anniversaries of the date of grant. The RSUs granted to Executive will be granted under one of the Company’s Long-Term Incentive Plans in accordance with and subject to the terms and conditions set forth in such plan and the
agreement executed in connection with such grant. 
 B. Future Equity Grants. Any future equity grants made to Executive
will be granted under one of the Company’s Long-Term Incentive Plans, and will be subject to the terms of such plan and of the agreement executed in connection with such grant. Any future equity grants to Executive will be made at the
discretion of the Committee. 
  

 5 

 C. Company Stock Ownership Requirement. In accordance with the Executive Officer
Stock Ownership Policy adopted by the Board of Directors of the Company, as may be amended from time to time (the “Executive Stock Ownership Policy”), Executive is currently required to own shares of Common Stock of the Company having a
value of one times (1x) Executive’s Base Salary in effect from time to time pursuant to this Agreement (the “Stock Ownership Requirement”). The number of shares of Common Stock Executive is required to own will be calculated
based on the average NYSE closing price per share of the Company’s Common Stock (as adjusted for stock splits and similar changes to the Common Stock) for the most recently completed fiscal year of the Company. 
 Using Executive’s current salary of $400,000 and a stock price of $27.63, which is the average closing price per share of the
Company’s Common Stock as of December 31, 2008, Executive’s current stock ownership requirement is 14,477 (“Target Amount”). The Target Amount is subject to change from time to time based on (1) changes in the average
closing sales price of the Company’s Common Stock on an annual basis, (2) any changes in Executive’s Base Salary made pursuant to and in accordance with Section 1B of this Agreement, and (3) any changes under the terms of
the Executive Stock Ownership Policy. Any shares of Company Common Stock that Executive owns, and any restricted stock units, shares of restricted stock or performance shares of the Company that Executive owns and have vested count toward the Target
Amount. Stock options, unvested restricted stock units, unvested shares of restricted stock, unvested performance shares and shares of Common Stock gifted to others do not count toward the Target Amount. 
 Under the Executive Stock Ownership Policy as currently in effect, to the extent that Executive has not achieved the Stock Ownership
Requirement, Executive must hold 75% of all “net settled shares” received from the vesting, delivery or exercise of equity awards granted under the Company’s equity award (including long-term incentive) plans. For purposes of the
Executive Stock Ownership Policy, “net settled shares” means those shares that remain after payment of (i) the exercise price of stock options or purchase price of other awards and all applicable withholding taxes, including shares
sold or netted with respect thereto, and (ii) all applicable transaction costs. 
 The Committee expects that Executive
will make reasonable progress toward Executive’s Stock Ownership Requirement. Executive will be notified on an annual basis of any changes in Executive’s Target Amount. 
 9. Term of Employment. Executive’s employment with the Company is at the mutual consent of Executive and the Company. Nothing in
this Agreement is intended to guarantee Executive’s continuing employment with the Company or employment for any specific length of time. Accordingly, either Executive or the Company may terminate the employment relationship at any time and for
any reason whatsoever (or for no reason), subject to certain notice requirements, to the extent applicable, as set forth herein. Upon Termination of Executive’s employment for any reason, in addition to any other payments that may be payable to
Executive hereunder, Executive (or Executive’s beneficiaries or estate) shall be paid (in each case to the extent not theretofore paid) within thirty (30) days following Executive’s date of Termination (or such shorter period that may
be required by applicable law): (a) Executive’s annual Base Salary through such Termination date, (b) accrued but unused PTO, (c) reimbursable expenses incurred by Executive prior to the Termination date and (d) payment of

  

 6 

 
amounts to which Executive may be entitled through such Termination date under any other compensatory plan, arrangement or program payment in accordance with the terms thereunder. This Agreement
constitutes a final and fully binding integrated agreement with respect to the at-will nature of the employment relationship. 
 10. Termination of Employment/Severance Pay. 
 A. Termination Without Cause Not Following Change in
Control. If Executive’s employment is Terminated by the Company without “Cause” (as defined in Section 10(D) below) at any time that is not within two (2) years after a “Change in Control” (as defined below) of
Health Net, Inc., Executive will be entitled to receive, within thirty (30) days following the Termination of Executive’s employment, provided that Executive signs and delivers prior to the expiration of such (30) day period,
and does not revoke or attempt to revoke, a Separation Agreement, Waiver and Release of Claims substantially in the form attached hereto as Exhibit A, which is incorporated into this Agreement by reference, (i) a lump sum cash payment
equal to twenty-four (24) months of Executive’s Base Salary in effect immediately prior to the date of Executive’s Termination, (ii) the continuation of Executive’s medical, dental and vision benefits (as maintained for
Executive’s benefit immediately prior to the date of Executive’s Termination) (the “Benefits”) for Executive and Executive’s dependents for a period of six (6) months following the effective date of Executive’s
Termination, and (iii) after expiration of such six (6) months Benefits continuation period, the continuation, under COBRA, of Executive’s Benefits for Executive and Executive’s dependents for a period of eighteen
(18) months, with premium payments paid by the Company on Executive’s behalf, provided, that Executive properly elects to continue those benefits under COBRA. 
 For purposes of this Agreement, “Change in Control” is defined as any of the following which occurs subsequent to the
effective date of Executive’s employment: 
 (i) Any person (as such term is defined under
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), corporation or other entity (other than Health Net, Inc. or any of its subsidiaries, or any employee benefit plan sponsored by Health Net, Inc.
or any of its subsidiaries) is or becomes the beneficial owner (as such term is defined in Rule 13d-3 under the Exchange Act) of securities of Health Net, Inc. representing twenty percent (20%) or more of the combined voting power of the
outstanding securities of Health Net, Inc. which ordinarily (and apart from rights accruing under special circumstances) have the right to vote in the election of directors (calculated as provided in paragraph (d) of such Rule 13d-3 in the case
of rights to acquire Health Net, Inc.’s securities) (the “Securities”); 
 (ii) As a result of a
tender offer, merger, sale of assets or other major transaction, the persons who are directors of Health Net, Inc. immediately prior to such transaction cease to constitute a majority of the Board of Directors of Health Net, Inc. (or any successor
corporations) immediately after such transaction; 
 (iii) Health Net, Inc. is merged or consolidated with any
other person, firm, corporation or other entity and, as a result, the shareholders of Health Net, Inc., as determined immediately before such transaction, own less than eighty percent (80%) of

  

 7 

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

 8 

 (ii) A material reduction by the Company in Executive’s base
compensation (i.e., Executive’s Base Salary and/or target annual bonus) as in effect immediately prior to any such reduction; 
 (iii) A relocation of Executive to a work location more than fifty (50) miles from Executive’s work location immediately prior to such proposed relocation; provided that such proposed relocation
results in a materially greater commute for Executive based on Executive’s residence immediately prior to such relocation; or 
 (iv) The failure of the Company to obtain an assumption agreement from any successor contemplated under Section 13 of this Agreement; 
 provided, however, that (a) Executive provides written notice to the Company of the existence of the condition described above within ninety (90) days of the initial existence of
the condition, (b) the Company fails to cure such condition within thirty (30) days after receipt of such written notice, and (c) the date of Executive’s Termination occurs no later than seventy-five (75) days after the
initial occurrence of the event constituting Good Reason, in accordance with Treasury Regulation Section 1.409A-1(n)(2)(ii). 
 C. Voluntary Termination. Notwithstanding anything to the contrary in this Agreement, whether express or implied, Executive may at any time Terminate Executive’s employment for any reason by giving the Company fourteen
(14) days prior written notice of the effective date of Termination. In the event that Executive voluntarily Terminates employment with the Company (except for Good Reason within two (2) years after a Change in Control of Health Net, Inc.,
as described in Section 10(B) hereof), then Executive shall not be eligible to receive any payments or continuation of Benefits set forth in this Section 10). 
 D. Termination by the Company for Cause. The Company may Terminate Executive’s employment for “Cause” at any time with or without advance notice. In the event of such Termination,
Executive will not be eligible to receive any of the payments set forth in Section 10(A) or 10(B) above. For purposes of this Agreement, a Termination for “Cause” is defined as: (i) an act of dishonesty causing harm to the
Company or any of its affiliates, (ii) the material breach of either the Company’s Code of Business Conduct and Ethics (the “Code of Conduct”) or any policy or procedure developed and published by the Company regarding compliance
or ethics related to the Code of Conduct, (iii) habitual drunkenness or narcotic drug addiction, (iv) conviction of, or entry by Executive of a guilty or no contest plea to, the commission of a felony or a misdemeanor involving moral
turpitude, (v) willful refusal to perform or gross neglect of the duties assigned to Executive, (vi) the willful breach of any law that, directly or indirectly, affects the Company or any of its affiliates, (vii) a material breach by
Executive following a Change in Control of those duties and responsibilities of Executive that do not differ in any material respect from Executive’s duties and responsibilities during the 90-day period immediately prior to such Change in
Control (other than as a result of incapacity due to physical or mental illness) which is demonstrably willful and deliberate on Executive’s part, which is committed in bad faith or without reasonable belief that such breach is in the best
interests of the Company or any of its affiliates and which is not remedied in a reasonable period of time after receipt of written notice from the Company specifying such breach, or (viii) breach of Executive’s obligations hereunder (or
under any Company policy) to protect the proprietary and confidential information of the Company or any of its affiliates. 
  

 9 

 E. Termination Due to Death or Disability. In the event that Executive’s
employment is Terminated at any time due to Executive’s death or “Disability” (as defined below), Executive (or Executive’s beneficiaries or estate) shall be entitled to receive, provided Executive (or Executive’s
beneficiaries or estate, as applicable) signs a Separation Agreement, Waiver and Release of Claims substantially in the form attached hereto as Exhibit A, which is incorporated into this Agreement by reference, (i) continuation of
Executive’s Benefits for a period of twelve (12) months from the date of Termination and (ii) a lump sum payment equal to twelve (12) months Executive’s Base Salary in effect immediately prior to the date of Executive’s
Termination, to be paid within thirty (30) days following Executive’s Termination of employment. For purposes of this Agreement, a Termination for “Disability” shall mean a Termination of Executive’s employment due to
Executive’s absence from Executive’s duties with the Company on a full-time basis for at least 180 consecutive days as a result of Executive’s incapacity due to physical or mental illness which is determined to be total and permanent
by a physician selected by the Company or its insurers. 
 11. Withholding. All payments required to be made by the
Company hereunder to Executive or Executive’s estate or beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine should be withheld pursuant to any applicable law or regulation.

 12. Restrictive Covenants. 
 A. Non-Competition. Executive hereby agrees that, during (i) the six (6)-month period following a Termination of Executive’s employment with the Company that entitles Executive to receive
severance benefits under this Agreement or a written agreement with or policy of the Company or (ii) the twelve (12)-month period following a Termination of Executive’s employment with the Company that does not entitle Executive to receive
such severance benefits (the period referred to in either clause (i) or (ii), the “Restricted Period”), Executive shall not undertake any employment or activity (including, but not limited to, consulting services) with a Competitor
(as defined below) in any geographic area in which the Company or any of its affiliates operate (the “Market Area”), where the loyal and complete fulfillment of the duties of the competitive employment or activity would call upon Executive
to reveal, to make judgments on or otherwise use or disclose any confidential business information or trade secrets of the business of the Company or any of its affiliates to which Executive had access during Executive’s employment with the
Company. For purposes of this Section, “Competitor” shall refer to any health maintenance organization or insurance company that provides managed health care or related services similar to those provided by the Company or any of its
affiliates. 
 B. Non-Solicitation. In addition, Executive agrees that, during the applicable Restricted Period following
Termination of Executive’s employment with the Company, Executive shall not, directly or indirectly, (i) solicit, interfere with, hire, offer to hire or induce any person, who is or was an employee of the Company or any of its affiliates
at the time of such solicitation, interference, hiring, offering to hire or inducement, to discontinue his/her relationship with the Company or any of its affiliates or to accept employment by, or enter into a business relationship with, Executive
or any other entity or person or (ii) solicit, interfere with or otherwise contact any customer or client of the Company or any of its affiliates. 
  

 10 

 C. Modification of Restrictions. It is hereby further agreed that if any court of
competent jurisdiction shall determine that the restrictions imposed in this Section 12 are unreasonable (including, but not limited to, the definition of Market Area or Competitor or the time period during which this provision is applicable),
the parties hereto hereby agree to any restrictions that such court would find to be reasonable under the circumstances. 
 D.
Injunction Rights. Executive also acknowledges that the services to be rendered by Executive to the Company are of a special and unique character, which gives this Agreement a peculiar value to the Company or any of its affiliates, the loss
of which may not be reasonably or adequately compensated for by damages in an action at law, and that a material breach or threatened breach by Executive of any of the provisions contained in this Section 12 will cause the Company or any of its
affiliates irreparable injury. Executive therefore agrees that the Company may be entitled, in addition to the remedies set forth above in this Section 12 and any other right or remedy, to a temporary, preliminary and permanent injunction,
without the necessity of proving the inadequacy of monetary damages or the posting of any bond or security, enjoining or restraining Executive from any such violation or threatened violations. 
 13. Successors; Binding Agreement. 
 A. Survival Following Merger, Consolidation or Asset Transfer. This Agreement shall not be terminated by any merger or consolidation of the Company whereby the Company is or is not the surviving or
resulting corporation or as a result of any transfer of all or substantially all of the assets of the Company. In the event of any such merger, consolidation or transfer of assets, the provisions of this Agreement shall be binding upon the surviving
or resulting corporation or the person or entity to which such assets are transferred. 
 B. Survivor’s Assumption of
Agreement. The Company agrees that concurrently with any merger, consolidation or transfer of assets referred to in this Section 13, it will cause any successor or transferee to unconditionally assume, by written instrument delivered to
Executive (or Executive’s beneficiary or estate), all of the obligations of the Company hereunder. Failure of the Company to obtain such assumption prior to the effectiveness of any such merger, consolidation or transfer of assets shall entitle
Executive to compensation and other benefits from the Company in the same amount and on the same terms as Executive would be entitled hereunder if Executive’s employment were Terminated without Cause. For purposes of implementing the foregoing,
the date on which any such merger, consolidation or transfer becomes effective shall be deemed the date of Termination. 
 C.
Enforceability. This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive shall die
while any amounts would be payable to Executive hereunder had Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to such person or persons appointed in
writing by Executive to receive such amounts or, if no person is so appointed, to Executive’s estate. 
  

 11 

 14. Limitation on Payments. 
 A. Notwithstanding any other provisions of this Agreement, in the event that any payment or benefit received or to be received by Executive
(including any payment or benefit received in connection with a Change in Control or the termination of Executive’s employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and
benefits, including the payments and benefits under Section 10 hereof, being hereinafter referred to as the “Total Payments”) would be subject (in whole or part), to the excise tax imposed under Section 4999 of the
Internal Revenue Code of 1986, as amended (the “Code”) (the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan,
arrangement or agreement, the cash severance payments shall first be reduced, and the non-cash severance payments shall thereafter be reduced, to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax, but only if
(i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and
personal exemptions attributable to such reduced Total Payments), is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on
such Total Payments and the amount of Excise Tax to which Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such
unreduced Total Payments). The Total Payments shall be reduced by the Company in its reasonable discretion in the following order: (A) reduction of any cash severance payments otherwise payable to Executive that are exempt from
Section 409A of the Code, (B) reduction of any other cash payments or benefits otherwise payable to Executive that are exempt from Section 409A of the Code, but excluding any payments attributable to the acceleration of vesting or
payments with respect to any stock option or other equity award with respect to the Company’s Common Stock that are exempt from Section 409A of the Code, (C) reduction of any other payments or benefits otherwise payable to Executive
on a pro-rata basis or such other manner that complies with Section 409A of the Code, but excluding any payments attributable to the acceleration of vesting and payments with respect to any stock option or other equity award with respect to the
Company’s Common Stock that are exempt from Section 409A of the Code, and (D) reduction of any payments attributable to the acceleration of vesting or payments with respect to any stock option or other equity award with respect to the
Company’s Common Stock that are exempt from Section 409A of the Code. 
 B. For purposes of determining whether and
the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner as not to constitute a
“payment” within the meaning of Section 280G(b) of the Code shall be taken into account, (ii) no portion of the Total Payments shall be taken into account which, in the written opinion of independent auditors of nationally
recognized standing (“Independent Advisors”) selected by the Company, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A)
of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for services actually rendered, within the meaning of
Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation, and (iii) the value of any non-cash benefit or any deferred payment
or benefit

  

 12 

 
included in the Total Payments shall be determined by the Independent Advisors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code 
 15. Section 409A of the Internal Revenue Code. It is the intention of the Company and Executive that this Agreement not result
in unfavorable tax consequences to Executive under Section 409A of the Code, and the Treasury Regulations and Internal Revenue Service guidance promulgated thereunder (“Section 409A”) and the Agreement shall be interpreted,
construed and administered as to so comply with, or be exempt from, Section 409A. Notwithstanding anything to the contrary herein, the Company and Executive agree to the provisions set forth in this Section 15 in order to comply with, or
be exempt from, the requirements of Section 409A 
 A. If Executive is a “specified employee” (as determined under
the Company’s Specified Employee Policy as in effect from time to time, or, in the absence of such policy, within the meaning of Section 409A) with respect to the Company, any non-exempt non-qualified deferred compensation that is subject
to Section 409A and otherwise payable to or in respect of Executive in connection with Executive’s Separation from Service pursuant to this Agreement shall be delayed until the earlier of (i) the expiration of six (6) months
measured from the date of Executive’s Separation from Service, or (ii) the date of Executive’s death. Any amount, the payment or benefit of which is delayed by application of the preceding sentence, shall be paid as soon as possible
following the expiration of such period. 
 B. All incentive bonus payments described in Section 7(D) shall be paid to
Executive, to the extent earned, in no event later than the last day of the “applicable 2-1/2 month period”, as such term is defined in Treasury Regulation Section 1.409A-1(b)(4)(i)(A) with respect to such payment’s treatment as
a “short-term deferral” for purposes of Section 409A. 
 C. With respect to the Company’s reimbursement
obligations under Sections 7(C) and 7(E) hereof and the provision of Benefits to Executive, (i) in no event shall any such reimbursements or in-kind benefits be made or provided later than the last day of Executive’s taxable year following
the taxable year in which the fee or expense was incurred, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during Executive’s taxable year may not affect the expenses eligible for reimbursement, or
in-kind benefits to be provided, in any other taxable year of Executive, and (iii) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, in accordance with Treasury Regulation
Section 1.409A-3(i)(1)(iv). 
 D. The Company and Executive agree to cooperate in good faith in an effort to comply with
Section 409A. Under no circumstances shall the Company be responsible for any taxes, penalties, interest or other losses or expenses incurred by the Executive due to any failure to comply with Section 409A. To the extent payments and
benefits under this Agreement are subject to Section 409A, and such payments and benefits do not so comply, the Company shall amend this Agreement, or take such other actions as the Company deems reasonably necessary or appropriate, to comply
with Section 409A. If any provision of the Agreement would cause such payments and benefits to fail to so comply, such provision shall not be effective and shall be null and void with respect to such payments or benefits, and such provision
shall otherwise remain in full force and effect. 
  

 13 

 16. Company Policies. Executive’s employment with the Company is subject to the
terms and conditions contained in the Company’s Associate Policies located on HR Link, which can be accessed through the Company’s intranet site, as in effect from time to time (the “Associate Policies”), the content of which is
incorporated by reference herein. Executive shall be required to read, understand and comply with the Associate Policies. 
 17.
Severability. If any term of this Agreement is held to be invalid, void or unenforceable, the remainder of this Agreement shall remain in full force and effect and shall in no way be affected and the parties shall use their best efforts to
find an alternative way to achieve the same result. 
 18. Integrated Agreement. This Agreement supersedes any prior
agreements, representations or promises of any kind, whether written, oral, express or implied between the parties hereto with respect to the subject matters herein. It constitutes the full, complete and exclusive agreement between Executive and the
Company with respect to the subject matters herein. This Agreement cannot be changed unless in writing, signed by Executive and the Chief Executive Officer of the Company and approved by the Board of Directors of the Company (or the Committee, if
permitted by the Committee’s charter). 
 19. Waiver. No waiver of any default hereunder shall operate as a waiver
of any subsequent default. Failure by either party to enforce any of the terms or conditions of this Agreement, for any length of time or from time to time, shall not be deemed to waive or decrease the rights of such party to insist thereafter upon
strict performance by the other party. 
 20. Notices. All notices and communications required or permitted hereunder
shall be in writing and shall be deemed given (a) if delivered personally, (b) upon confirmation of receipt by the sender after being sent by electronic mail, (c) one (1) business day after being sent by Federal Express or a
similar commercial overnight service, or (d) three (3) business days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the following addresses, or at such other addresses as the parties
may designate by written notice in the manner aforesaid: 
  

			
	If to the Company:	  	Health Net, Inc.
		  	21650 Oxnard Street, 22nd Floor
		  	Woodland Hills, CA 91367
		  	Attention: General Counsel
		
	If to Executive:	  	Angelee F. Bouchard
		  	[ADDRESS]
		  	[ADDRESS]

 21. Governing Law. The interpretation, construction and performance of this
Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware without regard to the principle of conflicts of laws. The invalidity or unenforceability of any provision of this Agreement shall
not affect the validity or enforceability of any other provisions of this Agreement, which other provisions shall remain in full force and effect. 
  

 14 

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

 15 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date
set forth above. 
  

									
	 Executive
	 		 	Health Net, Inc.
					
	 By:
	 	 /s/ Angelee F. Bouchard
	 		 	By:	 	 /s/ Karin D. Mayhew

	 Name:
	 	Angelee F. Bouchard	 		 	Name:	 	Karin D. Mayhew
	 Title:
	 	SVP, General Counsel & Corporate Secretary	 		 	Title:	 	SVP, Organization Effectiveness

  

	cc:	Karin Mayhew 

 Debbie J. Colia /
Angelee F. Bouchard Personnel File 

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

 NOW, THEREFORE, the Company and Executive agree as follows: 
  

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

  

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

  

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

 

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

  

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

  

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

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

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

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

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

											
	Executive	 		 	Health Net, Inc.
					
	By:	 	 [EXHIBIT COPY]
	 		 	By:	 	 [EXHIBIT COPY]

	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	
					
	Dated:	 	 [TO BE INSERTED]
	 		 	Dated:	 	 [TO BE INSERTED]

  

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