Document:

Guaranty Agreement Exhibit 10.2

Exhibit 10.2

GUARANTY AGREEMENT

THIS GUARANTY AGREEMENT (the “Agreement”), dated as of January 31, 2014 is made by ONEOK PARTNERS INTERMEDIATE LIMITED PARTNERSHIP, a Delaware limited partnership (the “Guarantor”) in favor of CITIDANK, N.A., a national banking association, as administrative agent (the “Administrative Agent”) for the several banks and other financial institutions (the “Lenders”) from time to time party to the Amended and Restated Credit Agreement, dated as of the date hereof, by and among and ONEOK PARTNERS, L.P. (the “Borrower”), the Lenders, the Administrative Agent, Citibank, N.A., as an L/C Issuer and as Swing Line Lender, and the other L/C Issuers named therein (as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement).

WITNESSETH:

WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to establish a revolving credit facility for the Borrower;

WHEREAS, the Guarantor is a direct Subsidiary of the Borrower and will derive substantial benefit from the making of Loans by the Lenders and the issuance of Letters of Credit by the L/C Issuers; and

WHEREAS, it is a condition precedent to the obligations of the Administrative Agent, the L/C Issuers, the Swing Line Lender, and the Lenders under the Credit Agreement that the Guarantor execute and deliver to the Administrative Agent this Agreement and the Guarantor wishes to fulfill said condition precedent;

NOW, THEREFORE, in order to induce Lenders to extend the Loans and the L/C Issuers to issue Letters of Credit and to make the financial accommodations as provided for in the Credit Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1.    Guarantee.    The Guarantor unconditionally guarantees, jointly with any other guarantors from time to time and severally, as a primary obligor and not merely as a surety, the due and punctual  payment  and  performance  of  all  Obligations,  whether  at  stated  maturity,  by  required prepayment, upon acceleration, demand or otherwise and whether recovery upon such indebtedness and liabilities may be or hereafter become unenforceable or shall be an allowed or disallowed claim under any proceeding or case commenced by or against any Loan Party under Debtor Relief Laws, and including interest that accrues after the commencement by or against any Loan Party of any proceeding under any Debtor Relief Laws whether or not the claim for such interest is allowed in such proceeding, including, without limitation, (i) the due and punctual payment of (A) the principal of and premium, if any, and interest (including interest accruing during the pendency of any proceeding or case under any Debtor Relief Law, regardless of whether allowed or allowable in such proceeding or case) on the Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (B) each payment required to be made by the Borrower under the Credit Agreement in respect of any Letter of Credit, when and as due, including payments in respect of reimbursement or disbursements, interest thereon  and obligations to  provide cash  collateral, and  (C)  all  other  monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise of the Borrower and other Loan Parties to the Administrative Agent and the Lenders under the Credit Agreement and the other Loan Documents, and (ii) the due and punctual performance of all covenants, agreements, obligations and  liabilities of the Borrower and  other Loan  Parties under or

pursuant to the Credit Agreement and the other Loan Documents (collectively, the “Guaranteed Obligations”).  The Guarantor further agrees that the Guaranteed Obligations may be amended, extended, refinanced, modified or renewed, in whole or in part, without notice to or further assent from the Guarantor, and that the Guarantor will remain bound upon its guarantee notwithstanding any amendment, extension, refinancing, modification or renewal of any Guaranteed Obligations.  All payments made by the Guarantor under this Agreement shall be made to the Administrative Agent at the Administrative Agent’s Office in Dollars.

Anything contained herein to the contrary notwithstanding, to the extent that the obligations of the Guarantor hereunder would be subject to avoidance as a fraudulent transfer or conveyance under Section 548 of the Bankruptcy Code (Title 11, United States Code) or any comparable provisions of any similar federal or state law, the obligations of the Guarantor hereunder shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to such avoidance provisions.

Section 2.    Obligations Not Waived.    To the fullest extent permitted by applicable law, the Guarantor waives presentment or protest to, demand of or payment from the Borrower or any other guarantor of any of the Guaranteed Obligations, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment.  To the fullest extent permitted by applicable law, the obligations of the Guarantor hereunder shall not be affected by (i) the failure of the Administrative Agent or any Lender to assert any claim or demand or to enforce or exercise any right or remedy against the Borrower or any other guarantor under the provisions of the Credit Agreement, any other Loan Document or otherwise, (ii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, this Agreement, any other Loan Document, any guarantee or any other agreement, or (iii) the failure to perfect any security interest in, or the release of, any of the security held by or on behalf of the Administrative Agent or any Lender.

Section 3.    Guarantee of Payment.    The Guarantor further agrees that its guarantee constitutes a guarantee of payment when due and not of collection, and waives any right to require that any resort be had by the Administrative Agent or any Lender to any security held for payment of the Guaranteed Obligations or to any balance of any deposit account or credit on the books of the Administrative Agent or any Lender in favor of the Borrower or any other Person.

Section 4.    No Discharge or Diminishment of Guarantee.    The obligations of the Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason (other than the indefeasible payment in full in cash of the Guaranteed Obligations), including any claim of waiver, release, surrender, alteration, or compromise of any of the Guaranteed Obligations with respect to any other obligor, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Guaranteed Obligations or otherwise.  Without limiting the generality of the foregoing, the obligations of the Guarantor hereunder shall not be discharged or impaired or otherwise affected by the failure of the Administrative Agent or any Lender to assert any claim or demand or to enforce any remedy under the Credit Agreement, any other Loan Document or any other agreement, by any waiver or modification of any provision of any thereof, by any default, failure or delay, willful or otherwise, in the performance of the Guaranteed Obligations, or by any other act or omission that may or might in any manner or to any extent vary the risk of the Guarantor or that would otherwise operate as a discharge of the Guarantor as a matter of law or equity (other than the indefeasible payment in cash of the Obligations).

Section 5.    Defenses of Borrower Waived.    To the fullest extent permitted by applicable law, the Guarantor waives any defense based on or arising out of any defense of any Loan Party or the unenforceability of the Guaranteed Obligations or any part thereof from any cause, or the cessation from

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any cause of the liability of any Loan Party, other than the final and indefeasible payment in full in cash of the Guaranteed Obligations.  The Administrative Agent and the Lenders may, at their election, foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales, accept an  assignment of any such security in lieu of foreclosure, compromise or adjust any part of the Guaranteed Obligations, make any other accommodation with any other Loan Party or any other guarantor, without affecting or impairing in any way the liability of the Guarantor hereunder except to the extent the Guaranteed Obligations have been finally and indefeasibly paid in cash.  Pursuant to applicable law, the Guarantor waives any defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of the Guarantor against the Borrower or any other guarantor, as the case may be, or any security.

Section 6.    No Setoff or Deductions.    The Guarantor shall make all payments hereunder without setoff or counterclaim. The Guarantor agrees to the provisions of Section 3.01 of the Credit Agreement that are applicable to the Guarantor, and such provisions are hereby incorporated  by reference herein. The obligations of the Guarantor under this paragraph shall survive the payment in full of the Guaranteed Obligations and termination  of this Agreement.

Section 7.    Information.    The Guarantor assumes all responsibility for being and keeping itself informed of other Loan Parties’ financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the risks that the Guarantor assumes and incurs hereunder, and agrees that none of the Administrative Agent or the Lenders will have any duty to advise the Guarantor of information known to it or any of them regarding such circumstances or risks.

Section 8.    Indemnity and  Subrogation.    In addition to all such rights of indemnity and subrogation as the Guarantor may have under applicable law (but subject to Section 9), the Borrower agrees that (a) in the event a payment shall be made by the Guarantor under this Agreement, the Borrower shall indemnify the Guarantor for the full amount of such payment and the Guarantor shall be subrogated to the rights of the person to whom such payment shall have been made to the extent of such payment and (b) in the event any assets of the Guarantor shall be sold to satisfy a claim of any Lender under this Agreement, the Borrower shall indemnify the Guarantor in an amount equal to the greater of the book value or the fair market value of the assets so sold.

Section 9.    Subordination.    Notwithstanding any prov1s1on of this Agreement to the contrary, all rights of the Guarantor against the Borrower or any other Loan Party under Section 8 and all other rights of indemnity, contribution, reimbursement or subrogation under applicable law or otherwise shall be fully subordinated and junior to the indefeasible prior payment in full in cash of the Guaranteed Obligations.  No failure on the part of the Borrower to make the payments required under applicable law or otherwise shall in any respect limit the obligations and liabilities of the Guarantor with respect to its obligations hereunder, and the Guarantor shall remain liable for the full amount of the obligations of the Guarantor hereunder.  In  addition, all Indebtedness and other obligations of the Borrower, and all Indebtedness and other obligations of any other Loan Party, in each case now or hereafter owing to the Guarantor is hereby subordinated in right of payment to the prior indefeasible payment in full in cash of the Guaranteed Obligations.  If any amount shall be paid to the Guarantor on account of (i) such subrogation, contribution, reimbursement, indemnity or similar right or (ii) any such Indebtedness or obligations of any Loan Party, such amount shall be held in trust for the benefit of the Administrative Agent and the Lenders and shall forthwith be paid to the Administrative Agent to be credited against the payment of the Guaranteed Obligations, but without reducing or affecting in any manner the liability of the Guarantor under this Guaranty; provided that payments of Indebtedness and other obligations owing

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by the Borrower or other Loan Party to the Guarantor at a time when there does not exist a Default or Event of Default shall not be held in trust or paid to the Administrative Agent.

Section 10.    Representations and Warranties.    The Guarantor represents and warrants as to itself that all representations and warranties relating to it (as a Subsidiary of the Borrower) contained in the Credit Agreement are true and correct in all material respects, except that such materiality qualifier shall not apply to the extent that any such representation and warranty is qualified by materiality.

Section 11.    Termination; Reinstatement.    This Guaranty is a continuing and irrevocable guaranty of all Guaranteed Obligations now or hereafter existing and shall remain in full force and effect until the Guaranteed Obligations have been indefeasibly paid in full in cash, all other amounts payable under this Guaranty have been indefeasibly paid in full in cash, the Lenders have no further commitment to lend under the Credit Agreement, the Fronting Exposure has been reduced to zero and no L/C Issuer has any further obligation to issue Letters of Credit under the Credit Agreement.  Notwithstanding the foregoing, this Agreement shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored by any Lender or the Guarantor upon the bankruptcy or reorganization of the Borrower, the Guarantor or otherwise. The obligations of the Guarantor under this paragraph shall survive termination of this Agreement.

Section 12.    Stay of Acceleration.    In the event that acceleration of the time for payment of any of the Guaranteed Obligations is stayed, in connection with any case commenced by or against the Guarantor or the Borrower under any Debtor Relief Laws, or otherwise, all such amounts shall nonetheless be payable by the Guarantor immediately upon demand by the Administrative Agent, on behalf of the Lenders.

Section 13.    Expenses.    The Guarantor shall pay on demand all out-of-pocket expenses in any way relating to the enforcement or protection of the rights of the Administrative Agent and the Lenders under this Agreement or in respect of the Guaranteed Obligations, including any incurred during any “workout” or restructuring in respect of the Guaranteed Obligations and any incurred in the preservation, protection or enforcement of any rights of the Administrative Agent and the Lenders in any proceeding any Debtor Relief Laws. The obligations of the Guarantor under this paragraph shall survive the payment in full of the Guaranteed Obligations and termination of this Agreement.

Section 14.    Binding Effect; Several Agreement; Assignments.    Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party; and all covenants, promises and agreements by or on behalf of the Guarantor that are contained in this Agreement shall bind the Guarantor and its successors and assigns and inure to the benefit of the Administrative Agent, the Lenders and their respective successors and assigns, and the Lenders may, without notice to the Guarantor and without affecting the Guarantor’s obligations hereunder, assign, sell or grant participations in the Guaranteed Obligations and this Guaranty, in whole or in part. This Agreement shall become effetive as to the Guarantor when a counterpart hereof is executed on behalf of the Guarantor.  The Guarantor shall not have the right to assign its rights or obligations hereunder or any interest herein (and any such attempted assignment shall be void).

Section 15.     Waivers; Amendment.

(a)    No failure or delay of the Administrative Agent of any kind in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights of the Administrative Agent hereunder and of the Lenders under the other Loan Documents are cumulative and

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are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement or consent to any departure by the Guarantor therefrom shall in any event be effective unless the same shall be permitted by subsection (b) below, and then such waiver and consent shall be effective only in the specific instance and for the purpose for which given.  No notice or demand on the Guarantor in any case shall entitle the Guarantor to any other or further notice in similar or other circumstances.

(b)    Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to a written agreement entered into between the Guarantor with respect to which such waiver, amendment or modification relates and the Administrative Agent in accordance with Section 10.01 of the Credit Agreement.

Section 16.    Notices.    All communications and notices hereunder shall be in writing and given as provided in Section 10.02 of the Credit Agreement.  All communications and notices hereunder to the Guarantor shall be given to it at its address set forth on Schedule I attached hereto or such other address as shall be designated by notice given by the Guarantor.

Section 17.    Severability.    Any provision of this Agreement held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions hereof or thereof; and the illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

Section 18.    Counterparts; Integration.    This Agreement may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract (subject to Section 14), and shall become effective as provided in Section 14.  Delivery of an executed signature page to this Agreement by facsimile transmission shall be as effective as delivery of a manually executed counterpart of this Agreement.  This Agreement constitutes the entire agreement among the parties hereto regarding the subject matters hereof and supersedes all prior agreements and understandings, oral or written, regarding such subject matter.

Section 19.    Rules of Interpretation.    The rules of interpretation specified in Section 1.02 of the Credit Agreement shall be applicable to this Agreement.

Section 20.     Governing Law; Jurisdiction; Consent to Service of Process.

(a)    This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of New York.

(b)    THE GUARANTOR (i) IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT, ANY LENDER, ANY L/C ISSUER, OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY, AND IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK

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STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT and (ii) AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATNE AGENT, ANY LENDER OR THE LIC ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE GUARANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

(c)    TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE GUARANTOR HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WANES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION AND THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT, AND (ii) IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02 OF THE CREDIT AGREEMENT.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

Section 21.    Waiver of Jury Trial.    THE GUARANTOR IRREVOCABLY WANES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY), AND CERTIFIES THAT NO REPRESENTATNE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER.

Section 22.    Right of Setoff.    If an Event of Default shall have occurred and be continuing, each Lender and its Affiliates is hereby authorized at any time and from time to time, without prior notice to the Guarantor, such notice being waived by the Guarantor to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other Indebtedness at any time owing by such Lender or such Affiliate to or for the credit or the account of the Guarantor against any or all the obligations of the Guarantor now or hereafter existing under this Agreement and the other Loan Documents, irrespective of whether or not such Person shall have made any demand under this Agreement or any other Loan Document and although such obligations may be unmatured.  The rights of each Lender under this Section 22 are in addition to other rights and remedies (including other rights of setoff) that such Lender may have.

Section 23.    Entire  Agreement.    This Agreement and the other Loan Documents represent the final agreement among the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties.  There are no unwritten oral agreements among the parties.

[Remainder of Page is Intentionally Blank]

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IN WITNESS WHEREOF, the undersigned has duly executed this Agreement as of the day and year first above written.
	
				
	 
	 
	GUARANTOR:

	 
	 
	 
	 

	 
	 
	ONEOK PARTNERS INTERMEDIATE
LIMITED PARTNERSHIP

	 
	 
	 
	 

	 
	 
	By:
	ONEOK ILP GP, L.L.C.,
its sole General Partner

	 
	 
	 
	 

	 
	 
	By:
	/s/ Derek S. Reiners

	 
	 
	Name:
	Derek S. Reiners

	 
	 
	Title:
	Senior Vice President, Chief Financial
Officer and Treasurer

[Signature Page to Guaranty Agreement]

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SCHEDULE I TO THE
GUARANTY AGREEMENT

	
					
	ONEOK Partners Intermediate Limited Partnership

	ONEOK Partners, L.P.
	 
	 

	c/o ONEOK Partners GP, L.L.C.
	 
	 

	100 West Fifth Street
	 
	 

	Tulsa, OK 74102-0871
	 
	 

	Attn:
	 
	 
	 

	Phone:
	 
	 
	 

	Fax:
	 
	 
	 

	Electronic Mail:
	 
	 

	Website: http://www.oneokpartners.com/
	 

Schedule 1 to the Guaranty Agreement

8Exhibit 10.1 2014 Q1_Amendment No. 4 to Master Services Agreement

Exhibit 10.1 

The mark *** indicates that text has been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934 and filed separately with the Securities and Exchange Commission.

AMENDMENT NO. 4 TO
MASTER SERVICES AGREEMENT

This Amendment No. 4 to Master Services Agreement (“Amendment”) is made as of this January 1st,  2014, (“Amendment Effective Date”) by and between Cognizant Technology Solutions U.S. Corporation (“Supplier”) and Health Net, Inc., a Delaware corporation (“Health Net”) with reference to the following facts:

A.    Supplier and Health Net entered into a Master Services Agreement dated September 30, 2008, as previously amended (collectively the “Agreement”) which, among other things, requires Supplier to perform Services for Health Net.

B.    The initial term of the Agreement was due to expire on December 31, 2013.

C.    Supplier and Health Net desire to extend the term of the Agreement and to modify certain terms and conditions contained in the Agreement as provided in this Amendment;

NOW, THEREFORE, in consideration of the mutual promises, covenants, agreements and other undertakings set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

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General Terms and Conditions

1.    Definitions:  Defined terms used in this Amendment shall have the same meaning as in the Agreement unless otherwise specifically defined herein.

2.    Section 4.1 (Initial Term) of the General Terms and Conditions  is hereby deleted in its entirety and replaced with the following language:

“The term of this Agreement shall commence on the Effective Date and expire on December, 31, 2018, unless it is terminated earlier or is extended pursuant to the terms of this Agreement (such period, together with all extensions thereof, the “Term”).” 

3.    The following replaces Sections 10.1 (a) through (c) of the General Terms and Conditions:  
10    INVOICING AND PAYMENT
		
	10.1
	Invoicing

		
	(a)
	The Supplier shall submit invoices in the following two manners:

(i)    Time & Material (T&M) Invoicing
Supplier shall invoice Health Net for all amounts due under this section 10(a)(i) on a monthly basis in arrears (i.e., Charges for Services delivered in August will be invoiced on the invoice delivered to Health Net in September), or as otherwise agreed by the Parties in writing. Supplier shall submit timesheets via Planview (or such other tool as may be agreed by Health Net) within a reasonable time from work performed. Supplier shall render a single consolidated invoice within *** for each month’s Charges showing such details as reasonably specified by Health Net, including as necessary to satisfy Health Net’s internal accounting and chargeback requirements (such as allocating Charges among Service components, locations and departments). The form of invoice shall be mutually agreed by the Parties during Transition and any changes to such form invoice during the Term must be approved by Health Net. Health Net shall pay for only time reported, submitted and approved via Planview (or such other tool as may be agreed by Health Net). 
Each month’s invoice shall be complete as to the Charges for such month. ***

(ii)    Fixed Pricing (Fixed Delivery/Fixed Bid) Invoicing

For Fixed Pricing (Fixed Delivery/Fixed Bid) invoicing purposes, Supplier shall submit to Health Net a Deliverable Acceptance Document (DAD) (or other such document as agreed by Health Net) for signature of milestone/deliverable acceptance within *** days of milestone completion. Supplier shall submit to Health Net the invoice and signed DAD for said milestone/deliverable within *** days of DAD signature date. *** Cognizant’s ability to invoice work is dependent upon reasonable expectation of Health Net’s reasonable cooperation. 

		
	(b)
	To the extent a credit may be due Health Net pursuant to this Agreement, Supplier shall provide Health Net with an appropriate credit against amounts then due and owing. If no further payments are due to Supplier, Supplier shall pay such amounts to Health Net within ***.

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(c)    Each invoice shall, for each Charge on the invoice, cite the specific section of the Agreement on which such Charge is based. Supplier shall include the calculations utilized to establish the Charges. 

[Remainder of Page Intentionally Left Blank]

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Schedule A

4. The first paragraph of Section 3.1 (Application Maintenance Services) of Schedule A (Scope of Services) is deleted in its entirety and replaced with the following:

“Application Maintenance Services” are those Functions associated with the maintenance and repair of Software, including performing break‐and‐fix activities, implementing commercial product patches, bug fix, service pack, and performing application Software upgrades. 
In the event any effort or project conducted under this section 3.1 exceeds *** hours of Supplier time, such effort will be chargeable as Application Development Services. In the event any effort or project conducted under this section 3.1 is less than or equal to *** hours of Supplier time, such efforts are covered under the Production Support Services charge and no further compensation is due to Supplier from Health Net. For purposes of clarity, such efforts are not considered Minor Enhancements as defined in Section 4.1(j) of Schedule C. Additionally, non-emergency activities under this section 3.1 will follow a prioritization process agreed to by both Parties., except for Emergency activities as described in this section as well as activities covered under Section 3.1(c)(ix) which must be done on an immediate basis.

[Remainder of Page Intentionally Left Blank]

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Schedule B
 
5. Section 4.6(b) (Earnback Opportunities) is modified by adding the following. Also Table 1 has been added to include the new SLA references: 
***

6. Section 5.4(a) (ii) (Continuous) of Schedule B (Service Levels) is deleted in its entirety and replaced with the following:
*** 

[Remainder of Page Intentionally Left Blank]

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Exhibit B-1

7.    Section 2 (Service Level Metrics) of Exhibit B-1(Service Level Metrics) is modified by adding the Continuous Improvement and implementing new Service Levels: 

		
	1.
	SERVICE LEVELS

***
***

 [Remainder of Page Intentionally Left Blank]

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Schedule C

8. Section 4.4(a)(iii) (Minor Enhancements) of Schedule C (Charges) is deleted in its entirety and replaced with the following:
“(iii)    As of January 1,  2014, each Contract Year through 2018, the Baseline Minor Enhancement Hours shall equal *** per calendar quarter, unless adjusted pursuant to Section 4.4(b).”

9. Section 4.6 (Productivity Assumptions) of Schedule C (Charges) is deleted in its entirety and replaced with the following:
“If the Production Support Charge is revised pursuant to Section 4.2 in connection with the addition of a new In-Scope Application, the revised Production Support Charge shall, at a minimum, reflect the Productivity Commitments stated in the table below for each remaining year of the Term. In the instance of adding a new In-Scope Application pursuant to Section 4.2, the Productivity Commitments will be applied to the Production Support Charge using CY1 as the first year reduction, CY2 the second year reduction, and continue each year thereafter as indicated in the table below. The yearly reduction will be equitably prorated based on the month the In-Scope Application is introduced. For example, in the event the new In-Scope Application effective date is June 1st, the *** CY1 reduction will apply to the next year’s Production Support Charge starting on June 1st of the subsequent year.  

	
						
	 
	Contract Year based on application go-live date in AO

	 
	CY 1
	CY 2
	CY 3
	CY 4
	CY 5

	Productivity Commitment
	***%
	***%
	***%
	***%
	***%

10. Section 5.2 (Joint Capacity Planning Process) of Schedule C (Charges) is deleted in its entirety, replaced with the following and renamed to Section 5.2 (Joint Capacity Managing Process):
“In connection with the Joint Capacity Planning Process, the Parties shall work together to develop and maintain a rolling six (6) month forecast of AD Projects and associated resource requirements (“AD Project Forecast”). Each month, and as otherwise requested by Health Net, the Parties shall meet to update the AD Project Forecast as necessary to remain current with Health Net’s estimated AD Project demand Supplier to work with Health Net on a case by case basis on applicability of Application Development and Quality (Testing) Service levels for projects that are started with insufficient lead time or fast tracked or where work needs to start without clear requirements.”

11. Section 7.4 (Disaster Recovery) of Schedule C (Charges) is deleted in its entirety and replace with the following:

“The Charges for all disaster recovery Services described in this Agreement as of the Effective Date are included in the Production Support Charge. This includes but is not limited to Disaster Recovery testing activities as well as all activities required in the case of a Disaster Recovery event.”    

12. Section 7.8 (Minimum Commitment) of Schedule C (Charges) is hereby deleted in its entirety and replaced with the following:

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(a)    The chart in this Section 7.8 sets forth a minimum AD Services revenue commitment for each Contract Year of the Term (each a “Minimum Commitment”). To the extent the total Charges payable by Health Net under this Agreement for AD Services in a Contract Year are less than (or reasonably likely to be less than) the applicable Minimum Commitment for that Contract Year as a result of Health Net’s decision to withdraw AD Services from this Agreement and either perform them itself or use a third party to perform them, then the Parties shall work in good faith to equitably adjust the Charges to reflect the reduced volume of AD Services. If after working in good faith the Parties are unable to agree on such an equitable adjustment, then Health Net, at its option, shall either (i) pay Supplier an additional amount equal to the difference between (A) the applicable Minimum Commitment for such Contract Year and (B) the total Charges paid by Health Net for AD Services in such Contract Year, to the extent such difference results from Health Net’s decision to withdraw AD Services from this Agreement and either perform them itself or use a third party to perform them; or (ii) terminate this Agreement in whole or in part for convenience. The Minimum Commitment shall be prorated for partial Contract Years. 

	
						
	 
	Contract Year

	 
	CY 6
	CY 7
	CY 8
	CY 9
	CY 10

	Minimum Commitment
	$***
	$***
	$***
	$***
	$***

(b) If Health Net terminates AD Services in part pursuant to Section 16.1 of the Terms and Conditions, the Minimum Commitment for each Contract Year shall be reduced by an amount proportionate to the percentage of the Charges attributable to the terminated Services for each Contract Year as set forth as of the Effective Date.”

Additionally, Exhibit C-1, C-2, C-6 and C-7 are updated as follows:

Exhibit C-1

***

[Remainder of Page Intentionally Left Blank]

Page 8

Exhibit C-2

***

Exhibit C-6

***

Exhibit C-7

***

Exhibit A-6

13. The first sentence of Section 1.2(a) (Work Orders) of Exhibit A-6 (Project Framework) is deleted in its entirety and replaced with the following: 

“Prior to commencing work or authorizing performance of a Project, the Parties will document the Project requirements in a detailed work order (“Work Order”), substantially, unless otherwise agreed by the parties, in the form of Exhibit A-12 (Work Order Template).

14. A new Work Order Template is added as Exhibit A-12 

[See attachment]

15. The following is added as Section 1.3 (Exception Process) of Exhibit A-6 (Project Framework):

		
	a)
	“ (a) The exception request process shall apply only in exceptional situations as specifically requested by Health Net in order to bypass the standard Project methodology set forth in this Section 1. Circumstances under which Health Net may utilize the exception process in order to obtain Project approval include emergency Projects that must be implemented in a time period shorter than *** days or otherwise demanded by Health Net executives or as otherwise requested by Health Net. Supplier to work with Health Net on a case by case basis on waivers for  Application Development and Quality (Testing) Service levels for projects that are started with insufficient lead time or fast tracked or where work needs to start without clear requirements.

“ (c) The Parties shall follow the Project Exception Service Request User Guide, attached as Schedule M (Project Exception Service Request User Guide). 

16. The following document entitled “Project Exception Service Request User Guide is added to Schedule M

[See attachment]

[Remainder of Page Intentionally Left Blank]

Page 9

17.    Except as amended and modified by this Amendment, all of the terms and conditions of the Agreement shall remain in full force and effect. This Amendment may not be modified except in writing signed by both parties hereto. This Amendment, the Agreement and exhibits and schedules thereto constitute the entire agreement of the parties with respect to the subject matter contained therein and supersedes any and all prior or contemporaneous agreements between the parties, whether oral or written, concerning the subject matter contained herein.

IN WITNESS WHEREOF, the parties hereto by their duly authorized representatives executed this Amendment to be effective as of the Amendment Effective Date.

COGNIZANT TECHNOLOGY SOLUTIONS    HEALTH NET, INC.
U.S. CORPORATION

By  /s/ Eugene Solomonov                By  /s/ James E. Woys            

Name  Eugene Solomonov                Name  James E. Woys            

Title  Corporate Counsel                Title  C.O.O.                

Page 10

         

Work Order 
BID-PID_COG_WO_Ver X.x 
For <Project Name>
Ver X.x

Project Id: <XXXXX>

[Cognizant Technology Solutions Company Logo]

[Cognizant Technology Solutions Company Logo]

<Project Name>
        

This Work Order dated MMM DD, YYYY is issued pursuant to the Application Outsourcing Master Services Agreement date Sep 30th, 2008 (the “Agreement”), by and between Health Net Inc. and Cognizant Technology Solutions U.S. Corporation (“Vendor”).

[Cognizant Technology Solutions Company Logo]

Project Id: XXXXX
BID-PID_COG_WO_Ver X.x

[Cognizant Technology Solutions Company Logo]

Table of Contents
	
				
	1
	 
	Introduction
	9

	2
	 
	Scope of Services
	9

	2.2
	 
	In Scope
	9

	2.3
	 
	Out of Scope
	9

	3
	 
	Approach / Proposed Changes
	9

	4
	 
	Infrastructure & Capacity requirement
	9

	4.1
	 
	Hardware
	9

	4.2
	 
	Software
	9

	4.3
	 
	Network connectivity
	9

	4.4
	 
	Third party vendor services
	9

	5
	 
	Key Risks, Mitigation and Assumptions
	10

	5.1
	 
	Assumptions:
	10

	5.2
	 
	Risks:
	10

	6
	 
	Deliverables, Roles & Responsibilities
	10

	7
	 
	Work Order Schedule
	11

	8
	 
	Milestones
	11

	9
	 
	Effort Estimate & Pricing
	12

	10
	 
	References
	12

	11
	 
	Appendix
	12

	12
	 
	Key contacts
	12

	13
	 
	Document Control
	13

	14
	 
	Approvals
	14

[Cognizant Technology Solutions Company Logo]

		
	1
	Introduction

<Description about the project>

		
	2
	Scope of Services

1.In Scope

		
	•
	<Add content>

2.Out of Scope

		
	•
	<Add content>

		
	3
	Approach / Proposed Changes

		
	•
	<Add content>

		
	4
	Infrastructure & Capacity requirement

Infrastructure & capacity are in Place, no additional infrastructure requirement for this project. 
1.Hardware
		
	•
	<Add content>

2.Software
		
	•
	<Add content>

3.Network connectivity
		
	•
	<Add content>

4.Third party vendor services
		
	•
	<Add content>

[Cognizant Technology Solutions Company Logo]

		
	5
	Key Risks, Mitigation and Assumptions

1.Assumptions:

		
	•
	<Add content>

General Assumptions

		
	•
	<Add content>

2.Risks:

		
	•
	<Add content>

General Risks

		
	•
	<Add content>

		
	6
	Deliverables, Roles & Responsibilities   

   
	
				
	DELIVERABLES AND MILESTONES
	Roles & Responsibilities

	Phase
	Description
	Acceptance Criteria
<default values, can be modified and agreed by both Parties>

	Analysis & Design
	Analysis & Design
	Health Net approved BARR, Technical/Business Design Document, and Traceability Matrix
	Cognizant will be responsible for working with business to design the solution. 

	Build (Enhancement changes & Unit Testing)
	Coding & Unit Testing
	Health Net approved Use Cases, Unit Test scripts, Unit  and System Test Results
	Cognizant will code and unit test the functionality.
Cognizant will create production implementation package and CMR.

	UAT
	UAT
	Approval notice from Health Net
	Cognizant will perform the UAT and send the results to Users.
Business will review and sign off

	Implementation
	Implementation activities
	Health Net Approval Notice 
	Cognizant will perform implementation activities.

[Cognizant Technology Solutions Company Logo]

		
	7
	Work Order Schedule

The tentative schedule for the applicable phase should be given below (Spread by Week). If any changes in schedule, it will be agreed upon mutually between Cognizant and Health Net. 

<Attach Timeline/Schedule XL Chart>

		
	8
	 Milestones

Following is the proposed timeline

	
			
	<insert description>

	Task
	From Date
	To Date

	Analysis and Design
	MM/DD/YY
	MM/DD/YY

	Coding & Unit Testing
	MM/DD/YY
	MM/DD/YY

	Use Acceptance Testing
	MM/DD/YY
	MM/DD/YY

	Implementation Support
	MM/DD/YY
	MM/DD/YY

[Cognizant Technology Solutions Company Logo]

		
	9
	Effort Estimate & Pricing

	
			
	Application Area

	 
	Cognizant
	 

 
The tentative billing amount for the entire project duration is $XXXX.XX. Vendor will not incur charges in excess of the Fee Estimate without Health Net’s prior written approval. Charges are computed as below:

<Attach Labour Schedule XL Sheet>

		
	10
	 References

ITG Project Brief for XXXXX.

<Attach Project Brief>

		
	11
	Appendix

		
	12
	 Key contacts

	
			
	Cognizant Contact

	 
	Project Manager
	 

	 
	Developer
	 

	
			
	Health Net Contact

	 
	PM
	 

	 
	CE
	 

[Cognizant Technology Solutions Company Logo]

		
	13
	 Document Control

	
					
	Date
	Description
	Author

	 
	 
	 
	 

	 
	 
	 
	 
	 

[Cognizant Technology Solutions Company Logo]

		
	14
	 Approvals

WORK SCHEDULE APPROVAL/SIGNOFF

Client: Health Net
Project Name: <Project Name>
Project Description As stated in the prior sections of this Work Order. 
    

APPROVALS

This Work Order is agreed and accepted by:

Cognizant Technology Solutions         Health Net 

By:    ___________________________        _________________________
    
Name:                                         Name:    

Title:                            Title:    
Date:                            Date:

Health Net PO# :

[Cognizant Technology Solutions Company Logo]

	
		
	[Health Net, Inc. Company Logo]
	CTS Project Exception Service Request 

User Guide - January 29, 2014

	
		
	[Health Net, Inc. Company Logo]
	PUBLISHED BY
Health Net Incorporated
Rancho Cordova, CA  95670

[Health Net, Inc. Company Logo]

Copyright © 2006 by Health Net Incorporated.  No part of this publication can be reproduced, transmitted, stored in a retrieval system, or translated into any language without the written permission of the publisher.  

Contents
	
				
	1.
	Introduction
	17
	

	2.
	Logging into Service Request
	18
	

	3.
	How to Submit a Project Exception Request
	19
	

[Health Net, Inc. Company Logo]

		
	1.
	Introduction

	
					
	 
	 
	 
	 
	 

Service Request is a centralized web-based tool for submitting business requests.  Service Request replaces and streamlines many existing tools, forms and processes, and creates one central location for request submission. From Service Request, associates will now submit requests for software application services, telecommunication services, data restores, conference calls and more.

How it works  

When an associate submits a Service Request, it goes through approval, then, one or more Work Orders are generated with specific tracking numbers associated. Work Orders are automatically routed to the Information Technology (IT) team responsible for fulfilling the request.  

	
		
	Service Request 
	A form filled out by the Associate requesting service.  These are accessed from the Service Request Console.

	Work Order
	The “ticket” processed by IT via the Work Order Console.

[Health Net, Inc. Company Logo]

2.  Logging into Service Request
	
					
	 
	 
	 
	 
	 

Service Request is accessed from a tab in Health Net Connect (Figure 1).

***
Figure 1- Health Net Connect Page

When you click on the tab, the HN Connect login window will appear (Figure 2). Type in your Associate ID and Network password.

***

Figure 2 - Remedy Login Screen

After logging in, the Service Request home page will appear.  See next page. 

[Health Net, Inc. Company Logo]

3.  How to Submit a CTS Project Exception Request
	
					
	 
	 
	 
	 
	 

		
	1.
	 Click on “Advanced IT Services”

***

		
	2.
	Click on for the CTS Project Exception Request.

***

		
	3.
	 Fill out the questions.  The Project should not be over 500k

***

[Health Net, Inc. Company Logo]

		
	4.
	Click on the “Submit” button after you ensure all fields have been completed correctly.

***

		
	5.
	 Once you hit the “Submit” button your Service Request (SR) will go through the “Approval Process”

		
	a.
	First Level Approver - Direct supervisor of the requester

		
	b.
	Second Level Approvers - ***

		
	c.
	Third Approver - ***

		
	d.
	Final Approver - ***

		
	6.
	Approved Service Request (SR)

a. Once the SR is approved the status changes to “Planning” and an internal work order is assigned to the CTS group.  This provide CTS the approval to start work without a signed Work Order (WO) or Project Change Request (PCR)
b. CTS should move the WO into “In Process” this allow the requestor to know the Service Request has been acknowledged
c. It’s the responsibility of the Requestor to ensure that all financial gates have been met and a signed WO or PCR is completed within 30 days from the time the SR is approved.
d. The IT Governance team will sent out a weekly Project Exception report showing all open SR’s.
e. Once a signed CTS WO or PCR is sent to CTS.  CTS should close the WO   that was assigned to them from the SR. 

		
	7.
	Service Request User Guide

Use the following link to get to the Service Request user guide. It will show you how to use the Search and Approval features.
***

[Health Net, Inc. Company Logo]

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