Document:

Amended and Restated Employment Agreement

 Exhibit 10.1 
 PATRICIA T. CLAREY 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of May 23, 2008 (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 Patricia T.
Clarey (“Executive”). 
 RECITALS 
 WHEREAS, the Company and Executive are party to an Employment Letter Agreement, dated March 23, 2006, (the “Prior Agreement”); 
 WHEREAS, the Company and Executive desire to amend and restate the Prior Agreement to reflect Executive’s new role with the Company as Senior Vice
President and Chief Regulatory and External Relations Officer and to make certain changes to the Prior Agreement as a result of Executive’s new role; and 
 WHEREAS, the Company and Executive are entering into this Agreement to establish the terms and conditions of the employment relationship. 
 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 and Chief Regulatory and External Relations Officer, 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 include (i) responsibility for policy and execution of the Company’s regulatory, public, communications and legislative activities including Medicare and Medicaid to insure consistency of message, approach, execution and
compliance and (ii) provision of staff support to President and Chief Executive Officer in all legislative, congressional, industry group, community activities and strategic Company initiatives, as assigned, 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. 
 B. Salary. Executive will be paid a base salary at the annual rate of $397,254, 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 

  

 - 1 - 

 
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” shall have the meaning ascribed to such term in Treasury Regulations promulgated under Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), from time to time and other publications of the Internal Revenue Service published in the Internal Revenue Bulletin from time to time. 
 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 customers, members, employees or directors of any of such entities, but 

  

 - 2 - 

 
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. 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. 
  

 - 3 - 

 5. 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. 
 6. 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 as long as Executive remains employed by the Company and Executive meets the applicable participation requirements. These benefit programs and plans 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. 
 C.
Financial Counseling Allowance. 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 Incentive Plan (“EIP”) in accordance with the terms of the EIP, which provides Executive with a target opportunity to earn each plan year up to 70% of 

  

 - 4 - 

 
Executive’s Base Salary as additional compensation according to the terms of the EIP. The 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 EIP. 
 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. 
 7. Equity Grants. 
 A. Initial Equity Grant. As of the Effective Date, Executive will be granted 10,000 performance shares (the “Performance Shares”)
which will vest and become non-forfeitable in accordance with the terms of the performance share agreement executed in connection with such grant. The Performance Shares 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. 
 C.
Company Stock Ownership Requirement. In accordance with the Executive Officer Stock Ownership Policy adopted by the Board of Directors of the Company (the “Executive Stock Ownership Policy”), Executive is 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 $397,254 and a stock price of $52.69, which is the average closing price per
share of the Company’s Common Stock as of December 31, 2007, Executive’s current stock ownership requirement is 7,539 (“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 and (2) any changes in Executive’s Base Salary made pursuant to and in accordance with Section 1B of this Agreement. 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, Executive will have until four years from the
Effective Date to comply with the Stock Ownership Requirement. 
  

 - 5 - 

 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. 
 8. 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, with or without advance notice and with or without “Cause” (as defined below). 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 date, (b) accrued but unused PTO,
(c) reimbursable expenses incurred by Executive prior to the Termination date and (d) amounts under any other compensatory plan, arrangement or program payment to which Executive may then be entitled. This Agreement constitutes a final and
fully binding integrated agreement with respect to the at-will nature of the employment relationship. 
 9. 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, prior to the expiration of such (30) day period, 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, and (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) 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 

  

 - 6 - 

 
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 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, prior to the expiration of such thirty (30) day period, 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) month 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 

  

 - 7 - 

 
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 demotion or a substantial reduction in the scope of Executive’s position, duties, responsibilities or status with the Company,
or any removal of Executive from or any failure to reelect Executive to any of the positions (or functional equivalent of such positions) referred to in the introductory paragraphs hereof, 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; 
 (ii) A reduction by the Company in Executive’s Base Salary or a material reduction in the benefits or perquisites available to Executive 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.

 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.), 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 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 

  

 - 8 - 

 
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. 
 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 one times (1x) 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.

 10. 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. 
  

 - 9 - 

 11. 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. 
 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 13 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 13 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 13 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. 
  

 - 10 - 

 12. 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 14, 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. 
 13. Section 409(A) 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
regulations and guidance promulgated thereunder (“Section 409A”) and the Agreement shall be interpreted as to so comply. 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 the requirements of Section 409A. 
 A. If Executive is a “specified employee”
(within the meaning of Section 409A) with respect to the Company, any non-qualified deferred compensation otherwise payable to or in respect of Executive in connection with Executive’s Termination pursuant to this Agreement shall be
delayed until the earliest date upon which such amounts may be paid without being subject to taxation under Section 409A. Any amount, the payment of 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 and tax gross-up
obligations under Sections 7(C) and 7(E) hereof, in no event shall any such reimbursements or gross-up payments be made later than the last day of Executive’s taxable year following the taxable year in which the fee or expense was incurred or
the tax payment was made, as applicable. 
  

 - 11 - 

 D. The provision of Benefits to Executive following Termination hereunder shall be subject to the
provisions of Treasury Regulation 1.409A-3(i)1(iv)(A) and (B). 
 E. 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. 
 14. Company Policies. Executive’s employment with the Company is subject to the terms and conditions contained in the Company’s
Associate Policy Manual (the “Policy Manual”), the content of which is incorporated by reference herein. Executive shall be required to read, understand and comply with the policies contained in the Policy Manual and, within 30 days
of Executive’s first date of employment, acknowledge receipt of the Policy Manual through HR Link, which can be accessed through the Company’s intranet site. 
 15. 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. 
 16. 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). The Company acknowledges and agrees that nothing contained herein shall be deemed to supercede, amend or otherwise modify the terms of the Indemnification Agreement dated
as of the Effective Date between Executive and the Company. 
 17. 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. 
 18. Notices. All notices and communications required or permitted hereunder
shall be in writing and shall be deemed given (a) if delivered personally, (b) one (1) business day after being sent by Federal Express or a similar commercial overnight service, or (c) 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

  

 - 12 - 

			
	If to the Executive:	  	Patricia T. Clarey
		  	[ADDRESS]
		  	[ADDRESS]

 19. 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. 
 20.
Survival and Enforcement. Sections 3, 8, 9, 11 and 12 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, 11 and 12 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). 
 21. 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] 
  

 - 13 - 

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

									
	Executive	 		 	Health Net, Inc.
					
	By:	 	 /s/ Patricia T. Clarey
	 		 	By:	 	 /s/ Jay M. Gellert

	Name:	 	Patricia T. Clarey	 		 	Name:	 	Jay M. Gellert
	Title:	 	SVP, Chief Regulatory &	 		 	Title:	 	President and Chief Executive Officer
		 	External Relations Officer	 		 		 	

  

			
	cc:	  	Linda V. Tiano
		  	Karin Mayhew
		  	Debbie J. Colia/P. Clarey 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. 

  

 A - 1 

	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, law or regulation, federal, state or local, pertaining to any matter related to his employment with the Company, 

  

 A - 2 

	 	 
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 the Executive became acquainted during the course of employment or service for the purpose of terminating such a person’s or entity’s relationship
with the Company or causing 

  

 A - 3 

	 	 
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 the 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.	The 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 the 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 the 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. 

  

 A - 4 

	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] 
  

 A - 5 

 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]

  

 A - 6Form of Indemnification Agreement

 EXHIBIT 10.1 
 INDEMNIFICATION AGREEMENT 
 INDEMNIFICATION AGREEMENT (this “Agreement”), effective as of
the          day of                         ,
20    , by and between The PMI Group, Inc., a Delaware corporation (the “Company”), and
                     (the “Indemnitee”), an officer and/or a director of the Company or of one or more of its subsidiaries;

 WHEREAS, the Indemnitee is currently serving as an officer and/or a director of the Company or of one or more subsidiaries of the Company
and in such capacity has rendered and will render valuable services to the Company; and 
 WHEREAS, the Company desires to provide its
officers and directors and those of its subsidiaries with adequate protection against various legal risks and potential liabilities to which such individuals are subject due to their positions with the Company or such subsidiaries, and has concluded
that available liability insurance and statutory protections may provide inadequate and unacceptable protection to certain individuals requested to serve as its officers and directors or as officers and directors of its subsidiaries; and 

WHEREAS, in order to induce and encourage highly experienced and capable persons such as the Indemnitee to continue to serve as an officer and/or a
director of the Company or of one or more of its subsidiaries, the Board of Directors have determined, after due consideration and investigation of the terms and provisions of this Agreement and the various other options available to the Company and
the Indemnitee in lieu hereof, that this Agreement is not only reasonable and prudent, but necessary to promote the best interests of the Company and its stockholders; 
 NOW, THEREFORE, in consideration of the premises and mutual agreements hereinafter set forth, and other good and valuable consideration, the receipt of which hereby is acknowledged, and in order to induce the
Indemnitee to continue to serve as an officer and/or a director of the Company or, at the Company’s request, of certain subsidiaries, the Company and the Indemnitee hereby agree as follows: 
 1. Definitions. As used in this Agreement: 
 1.1 The term “Change in Control” shall mean: 
 (a) The acquisition by any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either (i) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in 

 
the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (a), the following
shall not constitute a Change of Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company, or (iv) any acquisition pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (c) of this Paragraph 1.1. Notwithstanding the foregoing, in its sole
discretion, the Board may increase the 20% threshold set forth above in this subsection (a) prior to any acquisition of 20% or more beneficial ownership of the Outstanding Company Common Stock or the Outstanding Company Voting Securities;
provided, that (i) such increased threshold shall apply only to the acquisition and maintenance of beneficial ownership by any Person eligible to report such beneficial ownership at the time of such acquisition on Schedule 13G under the
Exchange Act, and (ii) in the event that any Person initially eligible to so report on Schedule 13G thereafter ceases to be eligible to so report on Schedule 13G, the occurrence of the event causing such Person no longer to be eligible to so
report shall be deemed an acquisition by such Person of all of the Outstanding Company Common Stock and Outstanding Company Voting Securities beneficially owned by such Person immediately prior to such occurrence; or 
 (b) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of
the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an
actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or 
 (c) Consummation by the Company of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of
the assets of the Company or the acquisition of assets of another entity (a “Business Combination”), in each case, unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, as such, directly or indirectly, more than 60% of, respectively, the
then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination
(including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s 

 
assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (ii) no Person (excluding any employee benefit plan (or related trust) of the Company or such corporation resulting from such
Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then
outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination and (iii) at least a majority of the members of the board of directors of the corporation resulting from such
Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 
 (d) Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
 Notwithstanding the foregoing, a Change of Control shall not be deemed to occur solely because any Person acquires beneficial ownership of
20% or more of the Outstanding Company Voting Securities or Outstanding Company Common Stock as a result of the acquisition of such securities or stock by the Company, which acquisition reduces the number of the Outstanding Company Voting Securities
or Outstanding Company Common Stock; provided, that if after such acquisition by the Company such Person (while such Person remains the beneficial owner of 20% or more of the Outstanding Company Voting Securities or Outstanding Company Common Stock)
becomes the beneficial owner of additional shares of such Outstanding Company Voting Securities or Outstanding Company Common Stock (as the case may be) and as a result of acquiring such beneficial ownership such Person’s percentage beneficial
ownership of the Outstanding Company Voting Securities or Outstanding Company Common Stock increases by any amount, a Change of Control shall then occur. Capitalized terms used in this Paragraph 1.1, not otherwise defined, shall have the meaning set
forth in the form of change of control employment agreement as approved at the February 12, 1998 meeting of the Board of Directors and as subsequently amended. 
 1.2 The term “Board of Directors” shall mean the Board of Directors of the Company. 
 1.3 The term “Disinterested Director,” with respect to any request by the Indemnitee for indemnification hereunder, shall
mean a director of the Company who neither is nor was a party to the Proceeding in respect of which indemnification is being sought by the Indemnitee. 

 1.4 The term “Expenses” shall mean, without limitation, expenses related
to or in connection with Proceedings, including attorneys’ fees, disbursements and retainers, accounting and witness fees, expenses related to the preparation or service as a witness, travel and deposition costs, expenses of investigations,
judicial or administrative proceedings and appeals, amounts paid in settlement of a Proceeding by or on behalf of the Indemnitee, costs of attachment or similar bonds, any expenses of attempting to establish or establishing a right to
indemnification, pursuant to this Agreement, under applicable law or otherwise, and reasonable compensation for time spent by the Indemnitee in connection with the investigation, defense or appeal of a Proceeding or action for indemnification for
which he or she is not otherwise compensated by the Company or any third party. The term “Expenses” shall not include the amount of judgments, fines or penalties, or excise taxes or other amounts assessed with respect to any employee
benefit plan, which are actually levied against or sustained by the Indemnitee. 
 1.5 The term “Independent Legal
Counsel” shall mean (subject to Section 8(b)) any firm of attorneys (a) selected by lot from a list consisting of firms which meet minimum size criteria and other reasonable criteria established by the Board of Directors of the
Company, so long as such firm has not represented the Company, the Indemnitee, any entity controlled by the Indemnitee, or any party adverse to the Company, the Indemnitee or any entity controlled by the Indemnitee, within the preceding five
(5) years, and (b) reasonably acceptable to the Indemnitee. Notwithstanding the foregoing, the term “Independent Legal Counsel” shall not include any person who, under applicable standards of professional conduct then prevailing,
would have a conflict of interest in representing either the Company or the Indemnitee in an action to determine the Indemnitee’s right to indemnification under this Agreement, applicable law or otherwise. 
 1.6 The term “Other Enterprises” shall mean a corporation (other than the Company, and including, without limitation,
subsidiaries of the Company and any partnership, joint venture, trust, employee benefit plan or other enterprise for which the Indemnitee is or was serving as a director, officer, employee, trustee, fiduciary, advisor or agent at the request of the
Company. 
 1.7 The term “Proceeding” shall mean any threatened, pending or completed action, suit,
arbitration, alternate dispute resolution mechanism, or any other proceeding (including, without limitation, an appeal therefrom), formal or informal, whether brought in the name of the Company or otherwise, whether of a civil, criminal,
administrative or investigative nature, whether by, in or involving a public official, law enforcement organization, public or government-sponsored board or commission, self-regulatory body, court or an administrative, other governmental or private
entity or body (including, without limitation, an investigation by the Company or its Board of Directors of a committee thereof), and as to which the Indemnitee was or is a party or threatened to be made a party or was or is otherwise involved in by
reason of (i) the fact that the Indemnitee is or was an officer or a director of the Company, or is or was serving at the request of the Company as a director, officer, employee, trustee, fiduciary, advisor or agent of an Other Enterprise, or
was a director, officer, employee, trustee, fiduciary, 

 
advisor or agent of a corporation which was a predecessor corporation of the Company or of another enterprise at the request of such predecessor corporation,
whether or not he or she is serving in such capacity at the time any liability or expense is incurred for which indemnification or reimbursement is to be provided under this Agreement, including, without limitation, any such Proceeding arising out
of or related to any act or omission of the Indemnitee in connection with the business of the Company or any of the Other Enterprises prior to, at the time of or subsequent to the date hereof, or (ii) the Indemnitee attempting to establish or
establishing a right to indemnification pursuant to this Agreement, applicable law or otherwise. 
 1.8 The phrase
“serving at the request of the Company” shall include, without limitation, (i) any service as an officer, director, employee, or agent which imposes duties on, or involves services by, such officer or director with respect to
the Company or any Other Enterprise, and (ii) any service as an officer, director, employee or agent of a corporation which was a predecessor corporation of the Company or of an Other Enterprise at the request of the Company or any such
predecessor corporation. 
 2. Services by the Indemnitee. The Indemnitee agrees to continue to serve as an officer and/or a director
of the Company under the terms of his or her agreement with the Company for so long as he or she is duly elected and qualified, appointed or until such time as he or she tenders his or her resignation in writing or is removed as an officer and/or a
director; provided, however, that the Indemnitee may at any time and for any reason resign from such positions (subject to any other contractual obligation or other obligation imposed by operation of law). 
 3. Proceeding Other Than a Proceeding By or In the Right of the Company. The Company shall indemnify the Indemnitee if the Indemnitee was or is a
party to or threatened to be made a party to or was or is otherwise involved in any Proceeding (other than a Proceeding by or in the right of the Company to procure a judgment in its favor), by reason of the fact that the Indemnitee was or is an
officer or a director of the Company, or was or is serving at the request of the Company as a director, officer, employee, trustee, fiduciary, advisor or agent of an Other Enterprise, or was a director, officer, employee, trustee, fiduciary, advisor
or agent of a corporation which was a predecessor corporation of the Company or of another enterprise at the request of the Company or any such predecessor corporation, against all Expenses, judgments, fines, forfeitures, disgorgements and
penalties, and excise taxes and any other amounts assessed with respect to any employee benefit plan, which are actually incurred by the Indemnitee in connection with such a Proceeding, to the fullest extent permitted by applicable law and not
prohibited by the Company’s Certificate of Incorporation, as amended, or the Company’s By-Laws, as amended, and subject in each case to Paragraph 7 below; provided, that any settlement of a Proceeding be approved in advance in writing by
the Company and the Indemnitee, except that the Indemnitee’s approval shall not be required for a settlement of a Proceeding that is limited to the payment of money and a full release of the Indemnitee and that does not impose any penalty, bar,
disqualification or limitation on or otherwise adversely affect the Indemnitee (including, but without limitation, by involving any admission or other statement of liability, guilt or any illegal, improper or negligent act or omission on the part of
or concerning the Indemnittee). 

 4. Proceedings By or In the Right of the Company. The Company shall indemnify the Indemnitee if
the Indemnitee was or is a party to or threatened to be made a party to or was or is otherwise involved in any Proceeding by or in the right of the Company to procure a judgment in its favor by reason of the fact that the Indemnitee was or is an
officer or a director of the Company, or was or is serving at the request of the Company as a director, officer, employee, trustee, fiduciary, advisor or agent of an Other Enterprise, or was a director, officer, employee, trustee, fiduciary, advisor
or agent of a corporation which was a predecessor corporation of the Company or of another enterprise at the request of the Company or any such predecessor corporation, against all Expenses, judgments, fines, forfeitures, disgorgements and
penalties, and excise taxes and any other amounts assessed with respect to any employee benefit plan, which are actually incurred by the Indemnitee in connection with such a Proceeding, to the fullest extent permitted by applicable law and not
prohibited by the Company’s Certificate of Incorporation, as amended, or the Company’s By-Laws, as amended, and subject in each case to Paragraph 7 below. Notwithstanding the foregoing, indemnification shall not be made in respect of any
claim, issue or matter in such a Proceeding as to which the Indemnitee shall have been adjudged to be liable to the Company if applicable law prohibits such indemnification; provided, however, indemnification shall be made by the Company in such
event if, and to the extent that, the Court of Chancery of the State of Delaware, or the court or other official body in which such Proceeding shall have been brought or is pending, shall determine that indemnification is appropriate under the
circumstances. 
 5. Indemnification for Costs, Charges and Expenses of Witness or Successful Party. Notwithstanding any other
provision of this Agreement (except as set forth in subparagraph 9(a) hereof), and without a requirement for a determination as required by Paragraph 8 hereof, to the extent that the Indemnitee (a) has prepared to serve or has served as a
witness in any Proceeding in any way relating to the Company or any of the Company’s subsidiaries, affiliates, employee benefit plans, such plan’s participants or beneficiaries or any other enterprise, or in any way relating to anything
done or not done (whether actually or allegedly) by the Indemnitee as an officer or a director of the Company, as a director, officer, employee, trustee, fiduciary, advisor or agent of an Other Enterprise, or as a director, officer, employee,
trustee, fiduciary, advisor or agent of a corporation which was a predecessor corporation of the Company or of another enterprise at the request of the Company or any such predecessor corporation, or (b) has been successful in the defense of
any Proceeding or in the defense of any claim, issue or matter therein, on the merits or otherwise, including the dismissal of a Proceeding without prejudice or the settlement of a Proceeding without an admission of liability, the Indemnitee shall
be indemnified against all Expenses actually incurred by the Indemnitee in connection therewith to the fullest extent permitted by applicable law and not prohibited by the Company’s Certificate of Incorporation, as amended, or the
Company’s By-Laws, as amended, subject in each case to Paragraph 7 below. 
 6. Partial Indemnification. If the Indemnitee is
entitled under any provision of this Agreement to indemnification by the Company for a portion of the Expenses, judgments, fines, forfeitures, disgorgements or penalties, or excise taxes or other amounts assessed with respect to any employee benefit
plan, which are actually incurred by him or her in the investigation, defense, appeal or settlement of any Proceeding, but not, however, for the total amount of his or 

 
her Expenses, judgments, fines, forfeitures, disgorgements or penalties, or excise taxes or other amounts assessed with respect to any employee benefit plan,
then the Company shall nevertheless indemnify the Indemnitee for the portion of such Expenses, judgments, fines, forfeitures, disgorgements, penalties, or excise taxes or other amounts to which the Indemnitee is entitled. 
 7. Advances of Expenses. The Expenses incurred by the Indemnitee in any Proceeding shall be paid promptly by the Company at the time incurred in
advance of the final disposition of the Proceeding at the written request of the Indemnitee to the fullest extent permitted by applicable law and not prohibited by the Company’s Certificate of Incorporation, as amended, or the Company’s
By-Laws, as amended; provided, that the Indemnitee shall set forth in such request reasonable evidence that such Expenses have been incurred by the Indemnitee in connection with such Proceeding, a statement that such Expenses do not relate to any
matter described in subparagraph 9(a) of this Agreement, and an undertaking in writing to repay any advances of Expenses (a) if it is ultimately determined as provided in subparagraph 8(b) of this Agreement that the Indemnitee is not entitled
to indemnification for such Expenses under this Agreement, or (b) upon reimbursement or other payment to the Indemnitee under any applicable insurance policy of the Expenses so advanced. The undertaking required by this Paragraph 7 shall be an
unlimited general obligation of the Indemnitee, but shall not be secured by or made with reference to the financial ability of the Indemnitee to make repayment. 
 8. Indemnification Procedure: Determination of Right to Indemnification. 
 (a)
Promptly after receipt by the Indemnitee of notice of the commencement of any Proceeding (the receipt of which shall be conclusively presumed if the Indemnitee is served with or has actual knowledge of any citation, summons, complaint, indictment or
any other similar documents relating to such Proceeding), the Indemnitee shall, if a claim for indemnification or advances in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement thereof in
writing (which notice shall be addressed to the General Counsel of the Company). The omission to so notify the Company will not relieve the Company from any liability which the Company may have to the Indemnitee under this Agreement except to the
extent that the Company shall have lost substantive or procedural rights with respect to the defense of any Proceeding as a result of such omission to so notify. 
 (b) The Indemnitee shall be conclusively presumed to have met the relevant standards of conduct, if any, as defined by Delaware law, for
indemnification pursuant to this Agreement and shall be absolutely entitled to such indemnification and advances, unless a good faith determination by clear and convincing evidence is made that the Indemnitee has not met such standards (i) by
the Board of Directors by a majority vote of a quorum consisting of Disinterested Directors, (ii) by the stockholders of the Company by a majority vote of a quorum thereof consisting of stockholders who are not parties to the Proceeding in
respect of which indemnification is being sought by the Indemnitee under this Agreement, (iii) by Independent Legal Counsel as set forth in a written opinion, provided, that (A) a quorum of Disinterested Directors is not obtainable
or (B) the Board of Directors of the Company by a majority vote of a 

 
quorum thereof consisting of Disinterested Directors so directs, or (iv) by a court of competent jurisdiction; provided, however, that if
a Change of Control shall have occurred and the Indemnitee so requests in writing, such determination shall be made by Independent Legal Counsel (which, for purposes of this proviso only, shall mean a law firm, a member of a law firm, or an
independent practitioner, that is experienced in matters of corporation law and shall include any person who, under the applicable standards of professional conduct then prevailing, would not have a conflict of interest in representing either the
Company or the Indemnitee in an action to determine the Indemnitee’s right to indemnification-under this Agreement, applicable law or otherwise) selected by the Indemnitee. 
 (c) If the Company fails to respond within sixty (60) days to a written request for indemnification or advances, the Company shall be
deemed to have approved the request. If the Company denies a written request for indemnification or advances, in whole or in part, or if payment in full pursuant to such request is not made within thirty (30) days thereof, the rights provided
by this Agreement shall be enforceable by the Indemnitee in any court of competent jurisdiction. Such judicial proceeding shall be made de novo. The burden of proving by clear and convincing evidence that indemnification or advances is not
appropriate shall be on the Company. Neither the failure of the directors or stockholders of the Company or Independent Legal Counsel to have made a determination prior to the commencement of such action that indemnification or advances is proper in
the circumstances because the Indemnitee has met the applicable standard of conduct, if any, nor an actual determination by the directors or stockholders of the Company or Independent Legal Counsel that the Indemnitee has not met the applicable
standard of conduct, shall be a defense to an action by the Indemnitee, shift the burden of proof to the Indemnitee or create a presumption for the purpose of such an action that the Indemnitee has not met the applicable standard of conduct. The
termination or settlement of any Proceeding by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, (i) create a presumption that the Indemnitee did not act in good faith and in a
manner which he or she reasonably believed to be in the best interests of the Company and/or its stockholders, or, with respect to any criminal Proceeding, that the Indemnitee had reasonable cause to believe that his or her conduct was unlawful, or
(ii) otherwise adversely affect the rights of the Indemnitee to indemnification or advances under this Agreement, except in each case as may be provided herein. The Company shall not oppose the Indemnitee’s right or entitlement to
indemnification or advances in any such judicial proceeding or appeal therefrom. The Company further agrees to stipulate to such rights in any such judicial proceeding or appeal therefrom unless a determination is made pursuant to Section 8(b)
that the Indemnitee is not entitled to indemnification or advances. The Company further agrees to stipulate in any such judicial proceeding that the Company is bound by all the provisions of this Agreement and is precluded from making any assertion
to the contrary. 
 (d) If a court of competent jurisdiction shall determine that the Indemnitee is entitled to any
indemnification or advances hereunder, the Company shall pay all Expenses actually incurred by the Indemnitee in connection with such adjudication (including, but not limited to, any appellate proceedings). The Indemnitee’s Expenses incurred in
connection with any Proceeding concerning his or her right to indemnification or advances in whole or in part pursuant to this Agreement shall also be indemnified by the Company, regardless of the outcome of such a Proceeding, to the fullest extent
permitted by applicable law and not prohibited by the Company’s Certificate of Incorporation, as amended, or the Company’s By-Laws, as amended; provided, however, that nothing in this clause (d) shall limit or diminish in any respect
the Company’s obligations to advance Expenses pursuant to Paragraph 7 above. 

 (e) With respect to any Proceeding for which indemnification or advances are requested,
the Company will be entitled to participate therein at its own expense and, except as otherwise provided below, to the extent that it may wish, the Company may assume the defense thereof, with counsel acceptable to the Indemnitee. After notice from
the Company to the Indemnitee of its election to so assume the defense of a Proceeding, the Company will not be liable to the Indemnitee under this Agreement for any Expenses subsequently incurred by the Indemnitee in connection with the defense
thereof, other than as provided below. The Company shall not settle any Proceeding in any manner which would impose any penalty, bar, disqualification or limitation on or otherwise adversely affect the Indemnitee without the Indemnitee’s
written consent (including, without limitation, by involving any admission or other statement of liability, guilt or any illegal, improper or negligent act or omission on the part of or concerning the Indemnitee). The Indemnitee shall have the right
to employ his or her own counsel in any Proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense of the Proceeding shall be at the expense of the Indemnitee, unless (i) the
employment of counsel by the Indemnitee has been authorized by the Company, (ii) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee in the conduct of the defense of a
Proceeding, or (iii) the Company shall not in fact have employed counsel acceptable to the Indemnitee to assume the defense of a Proceeding, in each of which cases the fees and expenses of the Indemnitee’s counsel shall be advanced by the
Company pursuant to the terms of Paragraph 7 above. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company or as to which the Indemnitee reasonably has concluded that there may be a conflict
of interest between the Company and the Indemnitee. 
 9. Limitations on Indemnification. No payments pursuant to this Agreement shall
be made by the Company: 
 (a) To indemnify or advance funds to the Indemnitee for (i) Expenses with respect to
Proceedings initiated or brought voluntarily by the Indemnitee and not by way of defense, except with respect to Proceedings brought to establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise as
required under applicable law, or (ii) Expenses incurred by the Indemnitee in connection with preparing to serve or serving, prior to a Change in Control, as a witness in cooperation with any party or entity who or which has threatened or
commenced any action or proceeding against the Company, or any director, officer, employee, trustee, agent, representative, subsidiary, parent corporation or affiliate of the Company, but such indemnification or advancement of Expenses in each such
case may be provided by the Company if the Board of Directors finds it to be appropriate; 
 (b) To indemnify the Indemnitee
for any Expenses, judgments, fines, forfeitures, disgorgement or penalties, or excise taxes or other amounts assessed with respect to any employee benefit plan, which are actually levied against or sustained by the Indemnitee in any Proceeding for
which payment has been actually made to the Indemnitee under a valid and 

 
collectible insurance policy, except in respect of any excess beyond the amount of payment under such insurance policy; provided, however, that nothing in
this clause (b) shall limit or diminish in any respect the Company’s obligations to advance Expenses pursuant to Paragraph 7 above; 
 (c) To indemnify the Indemnitee for any Expenses, judgments, fines, forfeitures, disgorgements or penalties, sustained in any Proceeding for an accounting of profits made from the purchase or sale by the Indemnitee of
securities of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended from time to time, or provisions of any federal, state or local statute or regulation that prohibits indemnification.

 (d) To indemnify the Indemnitee for any Expenses, judgments, fines, forfeitures, disgorgements or penalties, or excise
taxes or other amounts assessed with respect to any employee benefit plan, for which the Indemnitee is indemnified by the Company otherwise than pursuant to this Agreement and as to which payment has been actually made to the Indemnitee under such
other indemnification obligations, except in respect of any excess beyond the amount of payment under such other indemnification obligations; provided, however, that nothing in this clause (d) shall limit or diminish in any
respect the Company’s obligations to advance Expenses pursuant to Paragraph 7 above; 
 (e) To indemnify the Indemnitee
for any Expenses, judgments, fines, forfeitures, disgorgements or penalties, or excise taxes or other amounts assessed with respect to any employee benefit plan, for which the Indemnitee is indemnified, or the payment of which is guaranteed, by a
Company affiliate or another third party and as to which payment has been actually made to the Indemnitee under such other indemnification or guaranty obligations, except in respect of any excess beyond the amount of payment under such other
indemnification or guaranty obligations; provided, however, that nothing in this clause (d) shall limit or diminish in any respect the Company’s obligations to advance Expenses pursuant to Paragraph 7 above; 
 (f) To indemnify the Indemnitee for any Expenses, judgments, fines, forfeitures, disgorgements or penalties, or excise taxes or other
amounts assessed with respect to any employee benefit plan, on account of the Indemnitee’s conduct if such conduct shall be adjudged to have been knowingly fraudulent or willful misconduct by a court of competent jurisdiction in a final
determination from which there is no appeal or as to which the applicable period for appeal has expired; or 
 (g) If a court
of competent jurisdiction reaches a final determination from which there is no appeal or as to which the applicable period for appeal has expired that any indemnification hereunder is unlawful. 

 10. Maintenance of Liability Insurance. 
 (a) The Company hereby covenants and agrees that, as long as the Indemnitee continues to serve as an officer or a director of the Company
and thereafter as long as the Indemnitee may be subject to any possible Proceeding, the Company, subject to subparagraph 10(c) of this Agreement, shall promptly obtain and maintain in full force and effect directors’ and officers’
liability insurance (“D&O Insurance”) in reasonable amounts from established and reputable insurers. 
 (b) In
all D&O Insurance polices, the Indemnitee shall be named as an insured in such a manner as to provide to the Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s directors and officers.

 (c) Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain D&O Insurance if the
Company determines, in its sole discretion, that such insurance is not reasonably available, the premium costs for such insurance are disproportionate to the amount of coverage provided, or the coverage provided by such insurance is so limited by
exclusions that it provides an insufficient benefit. 
 11. Duration. All agreements and obligations of the Company contained herein
(a) shall be applicable to any period prior to the date hereof during which the Indemnitee has been an officer and/or a director of the Company (or (i) a director, officer, employee, trustee, fiduciary, advisor or agent of an Other
Enterprise, or (ii) a director, officer, employee, trustee, fiduciary, advisor or agent of a corporation which was a predecessor corporation of the Company or of another enterprise at the request of the Company or any such predecessor
corporation); (b) shall be applicable to and continue during any period that the Indemnitee is an officer and/or a director of the Company (or is serving at the request of the Company as a director, officer, employee, trustee, fiduciary,
advisor or agent of an Other Enterprise) and (c) shall be applicable and continue thereafter so long as the Indemnitee shall be subject to any possible Proceeding by reason of the fact that the Indemnitee was an officer or a director of the
Company or serving in any other capacity referred to in this Paragraph 11. 
 12. Indemnification Hereunder Not Exclusive. 

(a) The indemnification provided by this Agreement shall not be deemed exclusive of any other rights to which the Indemnitee may be
entitled under the Certificate of Incorporation, as amended, of the Company, the By-Laws, as amended, of the Company, any agreement, vote of stockholders or Disinterested Directors, provisions of applicable law, or otherwise, both as to action in
his or her official capacity and as to action in another capacity on behalf of the Company while holding such office. 
 (b)
Except as otherwise expressly provided in Paragraphs 9(b), 9(d) and 9(e) above with respect to payments actually made and received by Indemnitee, the indemnification provided by this Agreement is provided independently of, and shall not be deemed
superseded by, subordinated to, conditioned on the exercise of rights by the Indemnitee under, or limited or otherwise affected in any respect by, (i) any D&O Insurance or other insurance coverage maintained by the Company, any Company
affiliate or any other third party with respect to the Indemnitee’s acts or omissions to act, (ii) any indemnification obligations of the Company other than pursuant to this Agreement, or (iii) any guaranty or indemnification
obligations of any Company affiliate or other third party with respect to the Indemnitee’s acts or omissions to act or with respect to the Company’s performance hereunder. 

 13. Successors and Assigns. 
 (a) This Agreement shall be binding upon, and shall inure to the benefit of, the Indemnitee and his or her heirs, executors,
administrators and assigns, whether or not the Indemnitee has ceased to be an officer or director, and the Company and its successors and assigns. Upon the sale of all or substantially all of the business, assets or capital stock of the Company to,
or upon the merger of the Company into or with, any corporation, partnership, joint venture, trust or other person, this Agreement shall inure to the benefit of and be binding upon both the Indemnitee and such purchaser or successor person, and the
Company (or any entity assuming the Company’s obligations hereunder) shall not sell, or permit or acquiesce in the sale of, all or substantially all of the business, assets or capital stock of the Company (or such entity) to, or permit the
merger of the Company (or such entity) into or with, any corporation, partnership, joint venture, trust or other person, unless the purchaser or successor person agrees in writing to be bound by all terms and conditions of this Agreement applicable
to the Company (or such entity). Subject to the foregoing, this Agreement may not be assigned by either party without the prior written consent of the other party hereto. 
 (b) If the Indemnitee is deceased and is entitled to indemnification under any provision of this Agreement, the Company shall indemnify
the Indemnitee’s estate and his or her spouse, heirs, executors, administrators and assigns against, and the Company shall, and does hereby agree to, assume any and all Expenses, judgments, fines or penalties, or excise taxes or other amounts
assessed with respect to any employee benefit plan, actually and reasonably incurred by or for the Indemnitee or his or her estate, in connection with the investigation, defense, appeal or settlement of any Proceeding. Further, upon the death of the
Indemnitee, the Company (i) shall provide written notice to the parties listed in this clause (b), to such address(es) as the Indemnitee shall have previously provided to the Company, of the Company’s agreement hereunder to indemnify the
Indemnitee and such parties against and to itself assume such Expenses, judgments, fines, penalties, excise taxes or other amounts, and (ii) when requested in writing by any of the parties listed in this clause (b), shall provide appropriate
evidence of such agreement by the Company hereunder to so indemnify the Indemnitee and such parties. 
 14. Subrogation. In the event
of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such
rights and to enable the Company effectively to bring suit to enforce such rights. 
 15. Severability. Each and every paragraph,
sentence, term and provision of this Agreement is separate and distinct so that if any paragraph, sentence, term or provision thereof shall be held to be invalid, unlawful or unenforceable for any reason, such invalidity, unlawfulness or
unenforceability shall not affect the validity, lawfulness or enforceability of any other paragraph, sentence, term or provision hereof. To the extent required, any paragraph, sentence, term or provision of this Agreement may be modified by a court
of competent jurisdiction to preserve its validity and to provide the Indemnitee with the broadest possible indemnification permitted under applicable law. 

 16. Savings Clause. If this Agreement or any paragraph, sentence, term or provision hereof is
invalidated on any ground by any court of competent jurisdiction, the Company shall nevertheless indemnify the Indemnitee as to any Expenses, judgments, fines, forfeitures, disgorgements or penalties, or excise taxes or other amounts assessed with
respect to any employee benefit plan, incurred with respect to any Proceeding to the fullest extent permitted by any (a) applicable paragraph, sentence, term or provision of this Agreement that has not been invalidated or (b) applicable
provision of applicable law. 
 17. Interpretation; Governing Law. This Agreement shall be construed as a whole and in accordance with
its fair meaning. Headings are for convenience only and shall not be used in construing meaning. This Agreement shall be governed and interpreted in accordance with the laws of the State of Delaware. 
 18. Amendments. No amendment, waiver, modification, termination or cancellation of this Agreement shall be effective unless in writing signed by
each party hereto. The indemnification rights afforded to the Indemnitee hereby are contract rights and may not be diminished, eliminated or otherwise affected by amendments to the Certificate of Incorporation, as amended, of the Company, the
By-Laws, as amended, of the Company, or by other agreements, including D&O Insurance policies, of the Company. 
 19.
Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each party hereto and delivered
to the other. 
 20. Notices. Any notice required to be given under this Agreement shall be directed to the Company at 3003 Oak Road,
Walnut Creek, California 94597, Attention: General Counsel, and to the Indemnitee at the address noted below or to such other address as either shall designate to the other in writing. 

 IN WITNESS WHEREOF, the parties have executed this Indemnification Agreement as of the date first written
above. 
  

			
	THE PMI GROUP, INC.
		
	By:	 	 
		 	Name:
		 	Title:
	
	INDEMNITEE
		
	By:	 	 
		 	Name:
		 	Title:
		 	Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]