Document:

Amendment No. 2010-01 to Master Services Agreement

 Exhibit 10.75 
 Final Execution Version 
 “***” = CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN OMITTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

AMENDMENT NO. 2010-01 TO 
 MASTER SERVICES AGREEMENT 
 This Amendment Number 2010-01
(“Amendment 2010-01”), effective as of April 15, 2010 (the “Amendment 2010-01 Effective Date”), is between Health Net, Inc. (“Health Net”), and
Cognizant Technology Solutions U.S. Corporation (“Supplier”) (each, a “Party” and collectively, the “Parties”). This Amendment 2010-01
is made with reference to the following: 
 A. Master Services Agreement. The Parties entered into a Master Services
Agreement dated September 23, 2008 (the “Agreement”), as modified from time to time, pursuant to which Supplier provides certain business process outsourcing services to Health Net; 

B. Request for Proposal Process. Pursuant to a Change Notice C20100037, dated June 6, 2010, and an amendment contained
therein (“CN 20100037”), the parties changed the methodology for measuring Cognizant’s performance of its service level obligations as described more fully in Schedule B of the Agreement; 

C. Voided Change Notice 20100037. Recognizing that the amendment contained in Change Notice 20100037 should not be part of a
Change Notice, but should instead be a stand-alone amendment, the parties now wish to void Change Notice 20100037 and execute such stand-alone amendment. 
 NOW, THEREFORE, in consideration of the mutual promises, covenants, agreements and other undertakings set forth herein and for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereby agree as follows: 
 1. Definitions. Defined terms used in this Amendment 2010-01 shall have the same
meaning as in the Agreement unless otherwise specifically defined herein. 
 2. Voided Change Notice. Change Notice 20100037 is deemed void and
of no effect. 
 3. Amended and Restated Schedule B. Schedule B of the Agreement is deleted in its entirety and replaced with the Schedule B,
which is attached and incorporated into this Amendment.  
 4. Except as amended and modified by this Amendment, all of the terms and
conditions of the Agreement shall remain in full force and effect. For the avoidance of doubt, the exhibits to Schedule B remain unchanged by, and are not attached to, this Amendment. This Amendment 2010-01 may not be modified except in writing
signed by both parties hereto. This Amendment, the Agreement and exhibits and schedules thereto constitute the entire agreement of the parties with respect to the subject matter contained therein and supersede any and all prior or contemporaneous
agreements between the parties, whether oral or written, concerning the subject matter contained herein. 
 IN WITNESS WHEREOF,
the parties hereto by their duly authorized representatives executed this Amendment 2010-01 to be effective as of the Amendment 2010-01 Effective Date. 

 

  

 

					
	Schedule B	 		 	Health Net/Cognizant Confidential

 Final Execution Version 
  

									
	 Health Net, Inc.
	 	 CognizantTechnologySolutionsU.S.Corporation

					
	By:	 	 /s/ David R. Moffitt
	 		 	By:	 	 /s/ Eugene Solomonov

					
	Print Name:	 	 David R. Moffitt
	 		 	Print Name:	 	 Eugene Solomonov

					
	Title:	 	 Sourcing Manager
	 		 	Title:	 	 Corporate Counsel

					
	Date:	 	 02/25/2011
	 		 	Date:	 	 February 25, 2011

  
  

					
	Schedule B	 		 	Health Net/Cognizant Confidential

 Final Execution Version 
  

 SCHEDULE B 

SERVICE LEVELS 
 Version 2.0 

  
  

					
	Schedule B	 		 	Health Net/Cognizant Confidential

 Final Execution Version 
  

 SCHEDULE B 

SERVICE LEVELS 
 Table of Contents 
  

							
	 1
	 	Introduction	  	 	1	  
			
	 2
	 	Definitions	  	 	1	  
		 	 2.1     Certain Definitions
	  	 	1	  
		 	 2.2     Other Terms
	  	 	2	  
			
	 3
	 	Measurement, reporting and supporting information	  	 	2	  
		 	 3.1     Measurement
	  	 	2	  
		 	 3.2     Measurement Tools
	  	 	2	  
		 	3.3     Reports and Supporting Information	  	 	3	  
			
	 4
	 	Service Level methodology	  	 	3	  
		 	 4.1     General
	  	 	3	  
		 	 4.2     Service Level Codes
	  	 	3	  
		 	 4.3     Failure to Perform
	  	 	4	  
		 	 4.4     Excused Service Level Failures
	  	 	5	  
		 	 4.5     Service Level Credits
	  	 	5	  
		 	 4.6     Excused SLA Penalty Methodology (f.k.a. “Earnback Opportunities”)
	  	 	6	  
			
	 5
	 	MODIFICATIONS AND improvements to Service Levels	  	 	6	  
		 	 5.1     Deletions of Service Levels
	  	 	6	  
		 	 5.2     Additions of Service Levels
	  	 	6	  
		 	 5.3     Designation of Critical Service Levels and Weighting Factors
	  	 	7	  
		 	 5.4     Continuous Improvement
	  	 	7	  
		 	 5.5     Quarterly or Annual Meeting to adjust Service Levels
	  	 	7	  
			
	 6
	 	CUSTOMER SATISFACTION SURVEYS	  	 	7	  

 Table of
Exhibits 
  

			
	Exhibit B-1:	  	Service Level Metrics
		
	 Exhibit B-2:
	  	Problem / Incident Severity Level Definitions
		
	 Exhibit B-3:
	  	Service Request Completion Times

  
  

					
	Schedule B	 	B -i	 	Health Net/Cognizant Confidential

 Final Execution Version 
  

 SCHEDULE B 
 SERVICE LEVELS 
  

	1	INTRODUCTION 

 This Schedule B sets forth
the Service Levels that Supplier is required to meet or exceed in performing certain of the Services during the Term. This Schedule also describes (a) the methodology for calculating Service Level Credits that will be provided to Health Net by
Supplier if Supplier fails to meet a Critical Service Level, and (b) the process the Parties will follow to add, modify or delete Service Levels during the Term. 
  

	2	DEFINITIONS 

  

	2.1	Certain Definitions 

  

	 	(a)	“Amount at Risk” has the meaning given in Section 6.2 of the Terms and Conditions. 

 

	 	(b)	“Business Days” mean Monday through Friday (except holidays on which the offices of Health Net, as applicable, are not open for regular
business). Where this Schedule B provides for the addition or subtraction of a Business Day(s), the result will mean the same time of day as the time of an event on the original Business Day (i.e., a Problem that starts at 3:00 p.m. local time on
Monday is resolved by the following Business Day if such Problem is resolved by 3:00 p.m. local time on Tuesday, provided that both Monday and Tuesday are Business Days). 

 

	 	(c)	“Critical Service Level” means those Service Levels that are assigned a Weighting Factor and for which a Service Level Credit is payable in the
event of a Critical Service Level Failure. Critical Service Levels are designated by Health Net in accordance with Section 5.3 of this Schedule B. 

  

	 	(d)	“Critical Service Level Failure” means, with regard to any Critical Service Level, Supplier’s failure to perform at a level that meets the
corresponding Critical Service Level during any particular Measurement Period. 

  

	 	(e)	“Measurement Period” means, for any Service Level, the period of time during which Supplier’s actual performance of the relevant Services
is to be measured against the corresponding Service Level. The Measurement Period for each Service Level is set forth on Exhibit B-1. 

  

	 	(f)	“Pool Percentage Available for Allocation” means *** percentage points. 

 

	 	(g)	“Service Levels” has the meaning given in Section 6.1 of the Terms and Conditions. 

 

	 	(h)	“Service Level Credit” has the meaning provided in Section 4.3(b) of this Schedule B. 

 

	 	(i)	“Service Level Failure” means, with regard to any Service Level, a failure by Supplier to either (i) perform at the level that meets the
corresponding Service Level during any particular Measurement Period, or (ii) to (A) properly monitor or measure any Service Level, or (B) report on the performance for any Service Level in accordance with Section 3.3 below.

  
  

					
	Schedule B	 	B -1	 	Health Net/Cognizant Confidential

 Final Execution Version 
  

	 	(j)	“Weighting Factor” means the portion of the Pool Percentage Available for Allocation that Health Net has allocated with respect to a Critical
Service Level. The Weighting Factor for each of the Critical Service Levels as of the Effective Date are set forth in Exhibit B-1, and shall be subject to modification pursuant to Section 5 of this Schedule B. 

 

	2.2	Other Terms 

 Other terms
used in this Schedule B (or any Exhibit or Attachment to this Schedule B) are either defined in the context in which they are used or are defined elsewhere in this Agreement, and in each case shall have the meanings there indicated. 

 

	3	MEASUREMENT, REPORTING AND SUPPORTING INFORMATION 

  

	3.1	Measurement 

  

	 	(a)	Except as otherwise expressly provided for a particular Service Level in Exhibit B-1, the Measurement Period for each Service Level shall be each calendar month during
the Term. 

  

	 	(b)	Except as otherwise expressly indicated in this Schedule B, all references to time of day in this Schedule B shall refer to Pacific Time (“PT”), and any
reference to “hour” or “hours” shall mean clock hours. 

  

	3.2	Measurement Tools 

  

	 	(a)	Supplier shall measure its performance with respect to each Service Level using the corresponding measurement tools, processes and methodologies identified for such
Service Level in Exhibit B-1, or as specified pursuant to Sections 3.2(c), and 5.2(c)(i) of this Schedule B. 

  

	 	(b)	Supplier shall provide (except as expressly stated otherwise in this Agreement) and utilize the necessary measurement and monitoring tools and procedures required to
measure and report Supplier’s performance of the Services against the applicable Service Levels. Such measurement and monitoring shall permit reporting at a level of detail sufficient to verify compliance with the Service Levels, and will be
subject to verification and review by Health Net. Supplier shall provide Health Net with information and access to such tools and procedures upon request, for purposes of verification. 

 

	 	(c)	If, after the Effective Date, Supplier desires to use a different measurement tool, process or methodology for any Service Level, Supplier shall provide written notice
to Health Net proposing: 

  

	 	(i)	the alternative measurement tool, process or methodology; and 

  

	 	(ii)	any reasonable adjustments to the Service Levels that are necessary to account for any increased or decreased sensitivity that will likely result from use of the
alternative measurement tool, process or methodology. 

 Supplier may utilize such alternative measurement tool,
process or methodology only to the extent such tool, and any associated Service Level adjustments, are approved in 

  
  

					
	Schedule B	 	B -2	 	Health Net/Cognizant Confidential

 Final Execution Version 
  

 
writing by Health Net. 
  

	3.3	Reports and Supporting Information 

  

	 	(a)	Supplier shall deliver the Monthly Performance Report to Health Net in accordance with Section 17.3 of the Terms and Conditions. 

 

	 	(b)	Upon Health Net’s request, Supplier shall provide to Health Net detailed supporting information (including raw performance data) relating to Supplier’s
performance relative to the Service Levels. Such information shall at a minimum include all information that is necessary for Health Net to verify the accuracy of Service Level measurements and reporting, and any other supporting information
requested by Health Net to the extent it is available to Supplier. 

  

	 	(c)	Supplier shall make the reporting and supporting information described in this Section 3.3, available to Health Net both (i) in a form suitable for use on a
personal computer; and (ii) via a secure website; provided, however, that if requested by Health Net, Supplier shall also provide to Health Net “real time” electronic access to performance data (i.e., access to performance data that
reflects performance at the then-present time), to the extent that the agreed-upon measurement tools used to measure performance are capable of providing such access. To the extent that such tools are not capable of providing Health Net with such
“real time” access, Supplier shall promptly provide access to timely data upon Health Net’s request. 

  

	4	SERVICE LEVEL METHODOLOGY 

  

	4.1	General 

  

	 	(a)	Subject to Section 4.2 of this Schedule B, commencing on the Services Commencement Date Supplier shall meet or exceed each of the Service Levels. Service Levels
constitute one means, but not the exclusive means, of measuring Supplier’s performance of its commitment under Section 5.4 of the Terms and Conditions. If a Service Level includes multiple conditions or components (e.g., components (a),
(b) and(c)), then Supplier’s performance must satisfy each and every condition or component (i.e., components (a), (b) and (c)) to achieve the corresponding Service Level. 

 

	 	(b)	If any portion of the Services are to be provided from a business continuity recovery environment, the Service Levels shall continue to apply; except to the extent a
disaster occurring at a Health Net facility prevents Supplier from meeting such Service Levels. 

  

	4.2	Service Level Codes 

 For
each of the Service Levels set forth in Exhibit B-1, a corresponding “Code” has been designated in the “Code” column of the applicable table. The Codes have the following meanings: 

 

	 	(a)	“Code 1” – Code 1 has been assigned to Service Levels for which Health Net believes it has performance data showing that such Service
Levels were achieved by Health Net prior to the Effective Date. Supplier shall meet or exceed each Code 1 Service Level beginning on the Service Commencement Date, subject to the following: 

  
  

					
	Schedule B	 	B -3	 	Health Net/Cognizant Confidential

 Final Execution Version 
  

	 	(i)	During Transition, Supplier shall have the opportunity to review such data. If the Parties agree that such data does not demonstrate a history of compliance with a
particular Code 1 Service Level, they shall (A) first work in good faith to establish a Service Level that both Parties agree is supported by the applicable performance data; and (B) if they are unable to agree upon the Service Level, then
they shall follow the baselining process set forth in Section 5.2(c) to establish the Service Level. 

  

	 	(ii)	The process above shall be applied on an application-by-application basis for the Application Availability, Application Response Time, and On-Time Batch Processing
Service Levels (i.e., Application Availability, Application Response Time, and On-Time Batch Processing for some but not all In-Scope Applications may need to be validated or baselined). 

 

	 	(b)	“Code 2” – Code 2 has been assigned to Service Levels that the Parties agree should be established through the baselining process set forth
in Section 5.2(c). 

  

	 	(c)	“Code 3” – Code 3 has been assigned to the certain Service Levels for which a target has been set that Health Net has not consistently
achieved prior to the Effective Date. The following applies to Code 3 Service Levels: 

  

	 	(i)	Beginning on the Service Commencement Date, Supplier shall meet or exceed the levels of performance achieved by Health Net prior to the Effective Date; and

  

	 	(ii)	Within 60 days of the Service Commencement Date, Supplier shall provide Health Net with a plan for improving the Code 3 Service Levels to meet the target metrics set
for such Service Levels. Upon approval from Health Net, Supplier shall implement the plan and begin meeting the Service Level on the date specified in the plan. 

 

	 	(d)	“Code 4” – Code 4 has been assigned to Service Levels that the Parties agree do not require validation or baselining. Service Provider
shall meet or exceed Code 4 Service Levels beginning on the Service Commencement Date. 

  

	4.3	Failure to Perform 

  

	 	(a)	For each Service Level Failure, Supplier shall (i) investigate, assemble and preserve pertinent information with respect to, and report on the causes of, the
problem, including performing a root cause analysis of the problem; (ii) advise Health Net, as and to the extent requested by Health Net, of the status of remedial efforts being undertaken with respect to such problem; (iii) minimize the
impact of and correct the problem and begin meeting the Service Level; and (iv) take appropriate preventive measures so that the problem does not recur. 

 

	 	(b)	Supplier recognizes that a Critical Service Level Failure may have a material adverse impact on the business and operations of Health Net and that the damage from such
Critical Service Level Failure is not susceptible to precise determination. Accordingly, in the event of a Critical Service Level Failure for reasons other than ***. This Section 4.3(b) shall not limit Health Net’s rights with respect to
the events upon which Health Net may rely as a basis for Health Net’s termination of this Agreement for cause. 

  
  

					
	Schedule B	 	B -4	 	Health Net/Cognizant Confidential

 Final Execution Version 
  

	 	(c)	Supplier shall not be relieved for any Service Level Failure caused by a Managed Third Party if such Service Level Failure arises from Supplier’s failure to manage
such Managed Third Parties in accordance with the terms and conditions of this Agreement. 

  

	4.4	Excused Service Level Failures 

 If Supplier fails to meet a Service Level and establishes within two months after such failure that: (a) Health Net’s failure to perform a retained responsibility was the root cause of
Supplier’s failure to meet such Service Level (e.g., providing the required infrastructure to host In-Scope Applications); (b) Supplier would have achieved such Service Level but for such Health Net failure; (c) Supplier used
Commercially Reasonable Efforts to perform and achieve the Service Level notwithstanding the presence and impact of such Health Net failure; and (d) Supplier is without fault in causing such Health Net failure, then no Service Level Credit
shall be assessed against Supplier for any resulting Service Level Failure, and Supplier shall otherwise be excused from achieving such Service Level for as long as Health Net fails to perform such retained responsibility and Supplier continues to
use Commercially Reasonable Efforts to prevent, overcome, or mitigate the adverse effects of such failure to the extent required to achieve the applicable Service Level. Supplier shall not be excused from a failure to achieve a Service Level other
than under this Section 4.4 or as expressly provided in this Agreement. 
  

	4.5	Service Level Credits 

  

	 	(a)	Calculation. For each Critical Service Level Failure, the applicable Service Level Credit referenced in Section 4.3(b) above shall be calculated in
accordance with the following formula: 

  

					
		 	Service Level Credit = A x B	 	
			
	 Where:
	 		 	
			
		 	A = the applicable Weighting Factor; and	 	
		 	B = the Amount at Risk for such calendar month.	 	

  

	 	(b)	Notification. For each Critical Service Level Failure, Supplier shall report such failure to Health Net pursuant to Section 17.3(b) of the Terms and
Conditions and Section 3.3 of this Schedule B. Such report will, at a minimum, (i) identify and describe as a “Critical Service Level Failure” such Critical Service Level Failure, and (ii) calculate the amount of the
corresponding Service Level Credit, calculated pursuant to Section 4.5(a) of this Schedule B, that Health Net may elect pursuant to Section 4.3(b) of this Schedule B. 

 

	 	(c)	Limitations. 

  

	 	(i)	In no event shall the sum of the Weighting Factors for all Critical Service Levels exceed the Pool Percentage Available for Allocation. 

 

	 	(ii)	In no event shall the total amount of Service Level Credits payable by Supplier for Critical Service Level Failures occurring during a calendar month exceed the Amount
at Risk for such calendar month. 

  
  

					
	Schedule B	 	B -5	 	Health Net/Cognizant Confidential

 Final Execution Version 
  

	4.6	Excused SLA Penalty Methodology (f.k.a. “Earnback Opportunities”) 

 

	 	(a)	*** 

  

	 	(b)	*** 

  

	 	(c)	*** 

  

	 	(d)	*** 

  

	5	MODIFICATIONS AND IMPROVEMENTS TO SERVICE LEVELS. 

  

	5.1	Deletions of Service Levels 

 ***. 
  

	5.2	Additions of Service Levels 

 *** 
  

	 	(a)	If Health Net adds a new Service Level for which there is at *** of historical data within the past *** and such data indicates performance that is acceptable to Health
Net, then the Service Level metric shall be the arithmetic mean of the most recent *** of historical data. For example, ***. Such Service Level shall become effective ***, but no earlier than *** after written notice from Health Net.

  

	 	(b)	If Health Net adds a new Service Level for which there is at least *** of historical data within the ***, but such data does not indicate performance that is acceptable
to Health Net, then, upon Health Net’s written request, Supplier will perform an assessment of the root causes of the unacceptable level of historical performance within ***. 

 

	 	(i)	At the end of such *** period, if Health Net reasonably determines that Supplier’s performance is below an acceptable level (e.g., by reference to industry
standards), then ***. 

  

	 	(ii)	At the end of such *** period, if Health Net determines that Supplier’s performance is at an acceptable level, then the Service Level metric shall be determined in
accordance with Section 5.2(a). 

  

	 	(c)	If Health Net adds a new Service Level for which at least *** of historical data within the past *** does not exist, then such Service Level *** in accordance with the
following: 

  

	 	(i)	*** 

  

	 	(ii)	*** 

  

	 	(iii)	*** 

  

	 	(iv)	***. 

  
  

					
	Schedule B	 	B -6	 	Health Net/Cognizant Confidential

 Final Execution Version 
  

	5.3	Designation of Critical Service Levels and Weighting Factors 

  

	 	(a)	Critical Service Levels. 

  

	 	(i)	As of the Effective Date, the Critical Service Levels are designated by the letter “Y” appearing in the corresponding “Critical Service Level”
column in Exhibit B-1. 

  

	 	(ii)	***. 

  

	 	(b)	Weighting Factors. ***: 

  

	 	(i)	***; and 

  

	 	(ii)	the sum of the Weighting Factors for all Critical Service Levels shall not exceed the Pool Percentage Available for Allocation. 

 

	5.4	Continuous Improvement 

  

	 	(a)	In addition to any improvements in Service Levels resulting from application of the review processes described in Section 5.5, then (except as otherwise set forth
in Exhibit B-1 (i,e., with respect to those Service Levels or components thereof that are not eligible for improvement)): 

  

	 	(i)	***  

  

	 	(ii)	***  

  

	 	(b)	***. 

  

	5.5	Quarterly or Annual Meeting to adjust Service Levels 

  

	 	(a)	Health Net and Supplier will meet to review the Service Levels on a quarterly or annual basis to discuss the Service Levels***. 

 

	 	(b)	The Parties will also discuss in good faith revisions to Service Levels that may be appropriate as a result of material changes in the characteristics of Health
Net’s In-Scope Application portfolio (e.g., re-engineering initiatives). 

  

	6	CUSTOMER SATISFACTION SURVEYS 

  

	 	(a)	Within ninety (90) calendar days after the Effective Date or as otherwise mutually agreed by the Parties, Supplier shall develop and propose for the approval of
the Parties a draft customer satisfaction questionnaire (“Satisfaction Survey”) designed to measure the satisfaction of End Users and other third parties who interact with Supplier with Supplier’s provision of the
Services. Following Health Net’s review of the foregoing, Supplier shall incorporate reasonable comments or suggestions of Health Net and shall finalize the Satisfaction Survey and process within sixty (60) calendar days after receiving
Health Net’s comments and suggestions. The final Satisfaction Survey and process shall be subject to the approval of both Parties. Supplier shall periodically update the Satisfaction to reflect New Services or changes to existing Services;
provided, however, that updates of the Satisfaction Survey and process shall be provided to Health Net for review, comment, and approval. 

  
  

					
	Schedule B	 	B -7	 	Health Net/Cognizant Confidential

 Final Execution Version 
  

	 	(b)	Periodically (but in no event less than annually), Health Net shall conduct a survey using the Satisfaction Survey and process described in and agreed upon pursuant to
this Section. Health Net shall provide to Supplier the survey responses. Supplier shall tally the results of such survey and report to Health Net the results, and integrating the results with previous survey results (e.g., performing trend
analysis). The Parties shall meet to identify the areas of dissatisfaction as such dissatisfaction relates to the Services. Supplier shall prepare a project plan, with Health Net’s input and subject to Health Net’s final approval, that
specifically addresses the steps Supplier shall take to correct such dissatisfaction. The project plan will specify the specific remedial steps Supplier shall take to rectify deficiencies in satisfaction, and the time frames in which Supplier will
implement those steps. 

  
  

					
	Schedule B	 	B -8	 	Health Net/Cognizant ConfidentialAmendment No. 2010-02 to Master Services Agreement

 Exhibit 10.76 
 Final Execution Copy 
 “***” = CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN
OMITTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

AMENDMENT NO. 2010-02 TO 
 MASTER SERVICES AGREEMENT 
 This Amendment
No. 2010-02 to Master Services Agreement (“Amendment”) is made as of this April 1st, 2010, (“Amendment Effective Date”) by and between Cognizant Technology Solutions U.S. Corporation (“Supplier”) and Health Net, Inc., a Delaware corporation (“Health Net”)
with reference to the following facts: 
 A. Supplier and Health Net entered into a Master Services Agreement dated
September 30, 2008, as previously amended (collectively the “Agreement”) which, among other things, requires Supplier to perform Services for Health Net; 
 B. Pursuant to the Agreement some former employees of Health Net became employees of Supplier and such former employees performed some of the Services at rates applicable to “Transitioned
Employees” under the Agreement. 
 C. The parties now wish to relieve Health Net of the obligation to pay for
non-Productive Work for Applications Development Services by Transitioned Employees and require Health Net to pay for Application Development Services by Transitioned Employees only to the extent such employees perform Productive Work. 

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

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

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

 2. Schedule C of the Agreement is hereby deleted in its entirety and replaced with the following attached Revised Schedule C. 

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

 

									
	COGNIZANT TECHNOLOGY SOLUTIONS	 		 	HEALTH NET, INC.
	U.S. CORPORATION	 		 		 	
					
	By	 	 /s/ Ralph Nicosia
	 		 	By	 	 /s/ David R. Moffitt

 Final Execution Copy 

 

									
	Name	 	 Ralph Nicosia
	 		 	Name	 	 David R. Moffitt

									
					
	Title	 	 Account Ops. Lead.
	 		 	Title	 	 Sourcing Manager

 Final Execution Copy 

 
 REVISED SCHEDULE C 

CHARGES 

 Final Execution Copy 

 
 SCHEDULE C 

CHARGES 

Table of Contents 
  

							
	AMENDMENT NO. 2010-02 TO	  	 	i	  
		
	1.    INTRODUCTION	  	 	1	  
	    1.1	    	Overview of Charges	  	 	1	  
	    1.2	    	General Terms	  	 	1	  
		
	2.    DEFINITIONS	  	 	1	  
	    2.1	    	Certain Definitions	  	 	1	  
	    2.2	    	Other Terms	  	 	2	  
		
	3.    SUPPLIER INVESTMENTS	  	 	2	  
		
	4.    PRODUCTION SUPPORT	  	 	2	  
	    4.1	    	Production Support Charge	  	 	2	  
	    4.4	    	Minor Enhancements	  	 	4	  
	    4.5	    	Offshore / Onshore Ratios	  	 	5	  
	    4.6	    	Productivity Assumptions	  	 	5	  
		
	5.    APPLICATIONS DEVELOPMENT	  	 	6	  
	    5.1	    	General Terms	  	 	6	  
	    5.2	    	Adjustments to the Baseline AD Hours	  	 	7	  
	    5.3	    	Charges for Productive Hours in Excess of the Baseline AD Hours	  	 	8	  
	    5.4	    	Offshore / Onshore Ratios	  	 	8	  
	    5.5	    	Productivity	  	 	8	  
	    5.6	    	Transitioned Employees	  	 	9	  
		
	6.    T&M RATES	  	 	9	  
		
	7.    OTHER CHARGES, CREDITS AND TERMS	  	 	9	  
	    7.1	    	Pass-Through Expenses	  	 	9	  
	    7.2	    	Currency	  	 	9	  
	    7.3	    	New Services	  	 	9	  
	    7.4	    	Disaster Recovery	  	 	10	  
	    7.5	    	Remedial Services	  	 	10	  
	    7.6	    	Disengagement Services	  	 	10	  
	    7.7	    	Taxes	  	 	10	  
	    7.8	    	Minimum Commitment	  	 	10	  
		
	8.    ADJUSTMENTS TO CHARGES	  	 	11	  
	    8.1	    	Cost of Living Adjustment (COLA)	  	 	11	  
	    8.2	    	Service Level Credits	  	 	11	  
	    8.3	    	Benchmarking	  	 	12	  
		
	9.    TERMINATION CHARGES	  	 	12	  
	    9.1	    	Termination Charge	  	 	12	  
	    9.2	    	Pro-ration of Termination Charges	  	 	12	  

  

					
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 Table of Exhibits 

 

			
	Exhibit C-1:	 	Production Support Charge
	Exhibit C-2:	 	Individual Application Production Support Charges
	Exhibit C-3:	 	Applications Development Charge
	Exhibit C-4:	 	Baseline AD Hours
	Exhibit C-5:	 	Transitioned Employees
	Exhibit C-6:	 	T&M Rates
	Exhibit C-7:	 	Skillset Mix and Supporting Skillset Rates

  

					
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 SCHEDULE C 

CHARGES 
  

	1.	INTRODUCTION 

  

	1.1	Overview of Charges 

 This
Schedule C describes the methodology for calculating the charges for the Services provided by Supplier to Health Net under this Agreement. The charges consist of the following (collectively, the “Charges”): 

(a) the Production Support Charge described in Section 4.1, as it may be adjusted under Sections 4.2, 4.3, 4.4, and 8; 

(b) the Applications Development Charge described in Section 5.1, as it may be adjusted under Sections 5.2, 5.3, and 8; 

(c) any Out-of-Pocket Expenses expressly payable under this Agreement; and 

(d) any other charges or adjustments (including COLA under Section 8) expressly set forth in this Agreement. 

 

	1.2	General Terms 

 (a) There
are no amounts other than the Charges defined in Section 1.1 payable by Health Net under this Agreement. 
 (b) If any
service or offering that Supplier is obligated to provide under this Agreement is not measured by a specific Charge, the cost to Supplier of providing that service or offering is subsumed in the Charges hereunder and there shall be no separate
charge for such service or offering. 
 (c) Supplier was given an opportunity to perform due diligence on the In-Scope
Applications prior to the Effective Date. ***. 
  

	2.	DEFINITIONS 

  

	 	2.1	Certain Definitions 

 (a)
“Applications Development Charge” or “AD Charge” has the meaning given in Section 5.1. 
 (b) “Applications Development Project” or “AD Project” means Applications Development Services requested by Health Net that do not constitute a Minor
Enhancement. 
 (c) “Application Development Services” or “AD Services” has the
meaning given in Section 5 of Schedule A 
 (d) “Charges” has the meaning given in Section 1.

 (e) “Contract Year” means each 12 month period during the Term beginning January 1 and ending
December 31, except Contract Year 1 shall commence on November 10, 2008 and continue until December 31, 2009. 

(f) “FTE” means a full-time equivalent personnel within a particular T&M Rate category. One FTE = ***
Productive Hours. 

  

					
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 (g) “Individual Application Production Support
Charges” has the meaning given in Section 4.1. 
 (h) “In-Scope Applications” has the
meaning given in Section 1.3 of Schedule C. 
 (i) “Joint Capacity Planning Process” has the
meaning given in Schedule G. 
 (j) “Minor Enhancement” means an enhancement or upgrade to In-Scope
Applications requested by Health Net that is (i) estimated to require *** hours or less of Productive Work of Applications Development Services and (ii) not otherwise required to perform break-fix, operational support or other Production
Support Services. 
 (k) “Offshore Personnel” has the meaning given in Section 4.5. 

(l) “Onshore Personnel” has the meaning given in Section 4.5. 

(m) “Production Support Charge” has the meaning given in Section 4.1. 

(n) “Production Support Services” means all Services that are not Application Development Services, including
Application Support Services and the Software Quality Assurance/Testing Services and Cross-Functional Services associated with Application Support Services. 
 (o) “Productive Work” means productive work performed specifically for Health Net, as appropriately recorded under a labor tracking system or other system acceptable to both
Parties. ***. 
 (p) “Service Commencement Date” has the meaning given in Section 2.1 of the Terms
and Conditions. 
 (q) “Steady-State” means, for each In-Scope Application, the later of (i) the
Scheduled Steady-State Date and (ii) the date Supplier satisfies the applicable exit criteria in Exhibit A-2 and assumes full responsibility for Production Support Services for the In-Scope Application. 

(r) “T&M Rates” means the hourly personnel rates for Onshore Personnel and Offshore Personnel for each
In-Scope Application set forth in Exhibit C-6. 
 (s) “Transitioned Employees” has the meaning given in
Schedule E. 
  

	2.2	Other Terms 

 Capitalized
terms used in this Schedule C but not defined herein have the meanings given in the Glossary attached as Schedule R or elsewhere in this Agreement. 
  

	3.	SUPPLIER INVESTMENTS 

There are no charges or other amounts payable by Health Net for: 
 (a) *** 
 (b) *** 

(c) *** 
 (d)
*** 
  

	4.	PRODUCTION SUPPORT 

  

	4.1	Production Support Charge 

(a) Exhibit C-1 sets forth a monthly charge for Production Support Services (“Production Support Charge”). Subject
to Sections 4.2 and 8, the Production Support Charge is a fixed amount 

  

					
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payable for performance of all of the Production Support Services, except to the extent Supplier may count such Cross Functional Services against the Baseline AD Hours pursuant to
Section 5.1(f). 
 (b) Exhibit C-2 sets forth the component of the Production Support Charge applicable to each In-Scope
Application (“Individual Application Production Support Charges”). The Individual Application Production Support Charges shall be used solely to adjust the Production Support Charge when required pursuant to Sections 4.2 and
4.3. 
 (c) Subject to Sections 4.2 and 4.3, beginning in November 2008, Supplier shall invoice Health Net on a monthly basis in
arrears for the applicable Production Support Charge set forth in Exhibit C-1 in accordance with Section 10.1 of the Terms and Conditions. 
  

	4.2	Adjustments of Production Support Charge Due to Transition Delays 

 The Production Support Charge in Exhibit C-1 assumes each In-Scope Application will be transitioned to Supplier (and reach Steady-State) by the corresponding transition completion date set forth in
Exhibit E-3 (“Scheduled Steady-State Date”). If an In-Scope Application is not fully transitioned to Steady-State by the Scheduled Steady-State Date set forth in Exhibit E-3, then the Production Support Charge shall be
reduced by an amount equal to the applicable Individual Application Production Support Charge until such In-Scope Application is fully transitioned to Steady-State (i.e., there are no charges payable for an In-Scope Application until it reaches
Steady-State, except as provided in Section 4.7 with respect to Transitioned Employees). If any of the In-Scope Applications can be transitioned and reach Steady State prior to the applicable Scheduled Steady-State Date, the Parties shall
discuss whether to commence Steady-State and the corresponding component of the Production Support Charge early. If the Parties agree to make any such adjustment, they shall document their agreement in advance and in writing. 

 

	4.3	Adjustments of Production Support Charge Due to Changes in the In-Scope Application Portfolio 

(a) If Health Net adds a new In-Scope Application to this Agreement, then: 

(i) Supplier shall propose a staffing plan showing the incremental Supplier Personnel required to support the new In-Scope Application.
Upon request, Supplier shall provide Health Net with supporting detail from Supplier’s estimating tools to allow Health Net to understand and validate Supplier’s proposed staffing. 

(ii) After the staffing is determined, the Parties shall: 

 

	 	(A)	establish a new T&M Rate in Exhibit C-6 for Onshore Personnel and Offshore Personnel for the new In-Scope Application, which shall be a blended rate determined
using the Supporting Skillset Rates set forth in Exhibit C-7; and 

  

	 	(B)	equitably adjust the Production Support Charge to reflect the additional staffing, which adjustment shall not exceed an amount equal to the number of incremental FTEs
in the revised staffing multiplied by the new T&M Rates for the In-Scope Application established under Section 4.3(a)(ii)(A). 

 (b) If Health Net removes an existing In-Scope Application, then: 
 (i) Supplier
shall propose a revised staffing plan showing the reduction in Supplier Personnel required to support the reduced workload. Upon request, Supplier shall provide Health Net 

  

					
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with supporting detail from Supplier’s estimating tools to allow Health Net to understand and validate Supplier’s proposed revisions. 

(ii) After the revised staffing is determined, the Parties shall equitably adjust the Production Support Charge to reflect the revised
staffing, which adjustment shall equal the applicable Individual Application Production Support Charge for the In-Scope Application removed unless the Parties agree otherwise. 
 (c) The Production Support Charge assumes the MC400 In-Scope Applications will be sunset by December 31, 2010 and their functions migrated to ABS. For purposes of this Section, “sunset”
means the date on which Health Net desires to cease receiving full Production Support Services and to receive the more limited support described below in Section 4.3(c)(iii). Health Net shall provide Supplier with reasonable notice (at least 30
days) if it desires to change the sunset date to a date other than December 31, 2010. 
 (i) If any of the MC400 In-Scope
Applications are sunset prior to December 31, 2010, then the Production Support Charge shall be reduced by an amount equal to the Individual Application Production Support Charges for such MC400 In-Scope Applications during the period from
(A) the sunset date, until (B) December 31, 2010. 
 (ii) If any of the MC400 In-Scope Applications require full
Production Support Services after December 31, 2010, then the Production Support Charge shall be increased by an amount equal to the Individual Application Production Support Charges for such MC400 In-Scope Applications during the period from
(A) December 31, 2010, until (B) the date Health Net no longer requires full Production Support Services for such MC400 In-Scope Applications. 
 (iii) The Parties anticipate that Health Net will require a reduced level of Production Support Services for the MC400 In-Scope Applications in the years following the sunset and migration to ABS. Prior
to the sunset date, the Parties will agree upon the staffing required to provide such support, and calculate the charges for such support by multiplying the Supplier Personnel FTEs in such staffing plan by the applicable T&M Rates in Exhibit
C-6. 
  

	4.4	Minor Enhancements 

 (a)
The Production Support Charge includes a baseline of Productive Hours that Supplier shall perform each calendar quarter on Minor Enhancements requested by Health Net (“Baseline Minor Enhancement Hours”). Subject to
Section 4.4(b), the Baseline Minor Enhancement Hours included in the Production Support Charge are as follows: 
 (i) There
are no Baseline Minor Enhancement Hours in 2008. 
 (ii) In 2009, the Baseline Minor Enhancement Hours shall increase as follows
each calendar quarter as In-Scope Applications are transitioned: 
  

									
	 	  	Calendar Year 2009
	 	  	Q1 2009	 	Q2 2009	 	Q3 2009	 	Q4 2009
	 Baseline Minor Enhancement Hours
	  	***	 	***	 	***	 	***

 (iii) In 2010, and
each Contract Year thereafter, the Baseline Minor Enhancement Hours shall equal *** per calendar quarter, unless adjusted pursuant to Section 4.4(b). 

  

					
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 (b) The Baseline Minor Enhancement Hours shall be adjusted as
follows: 
 (i) If Health Net retires or otherwise withdraws an In-Scope Application from Production Support Services under this
Agreement, beginning in the month following such withdrawal, the Baseline Minor Enhancement Hours shall be ***. 
 (ii) If
Health Net adds a new In-Scope Application, beginning in the month following such addition, the quarterly Baseline Minor Enhancement Hours shall be ***. 
 (iii) Upon request, Supplier shall provide Health Net with supporting detail to allow Health Net to understand and validate Supplier’s staffing numbers and proposed adjustments. 

(c) Health Net and Supplier shall each use Commercially Reasonable Efforts to prioritize, manage and coordinate Minor Enhancement work to
stay within the Baseline Minor Enhancement Hours allocation each quarter. Notwithstanding the foregoing, if Health Net requires a volume of Minor Enhancement hours above the Baseline Minor Enhancement Hours in a quarter, Supplier shall provide such
hours using the Baseline AD Hours provided under Section 5.1. 
  

	4.5	Offshore / Onshore Ratios 

The Parties have agreed on the following maximum ratios of Supplier Personnel based in India (“Offshore
Personnel”) and Supplier Personnel based in the United States (“Onshore Personnel”) assigned to perform Production Support Services (“Maximum Offshore/Onshore Ratio”): 

 

											
	 	  	Contract Year
	 	  	Year 1	 	Year 2	 	Year 3	 	Year 4	 	Year 5
	 Maximum Offshore / Onshore Ratio
	  	***	 	***	 	***	 	***	 	***

 (a) The Maximum
Offshore/Onshore Ratios reflect the maximum number of Offshore Personnel Supplier may use to perform Production Support Services. These Maximum Offshore/Onshore Ratios reflect the average ratio of Offshore Personnel and Onshore Personnel during each
Contract Year (i.e., the ratio of Offshore Personnel to Onshore Personnel may increase temporarily as long as the average ratio for the Contract Year does not exceed the applicable Maximum Offshore/Onshore Ratio). If Supplier believes it can
increase this ratio while maintaining compliance with the Service Levels and other terms of this Agreement, Supplier shall propose a revised staffing plan ***. 
 (b) Supplier is responsible for performing all functions required to transition Services to Offshore Personnel (up to the permitted Maximum Offshore/Onshore Ratio) while maintaining compliance with the
Service Levels and other terms of this Agreement. ***. 
 (c) If Health Net directs Supplier to reduce the number of Offshore
Personnel below the permitted Maximum Offshore/Onshore Ratio for reasons other than Supplier’s failure to meet Service Levels or comply with other terms of this Agreement, then Supplier shall ***. Supplier shall obtain Health Net’s written
consent prior to implementing the plan. 
  

	4.6	Productivity Assumptions 

The Production Support Charge declines during the Term at a rate reflecting the percentages set forth in the table below
(“Productivity Commitments”). Supplier shall be responsible for any costs associated with its failure to achieve the Productivity Commitments. If the Production Support Charge is

  

					
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revised pursuant to Section 4.2 in connection with the addition of a new In-Scope Application, the revised Production Support Charge shall, at a minimum, reflect the Productivity Commitments
stated in the table below for each remaining year of the Term. 
  

											
	 	  	Contract Years
	 	  	CY 1	 	CY 2	 	CY 3	 	CY 4	 	CY 5
	 Productivity Commitment
	  	***	 	***	 	***	 	***	 	***

  

	4.7	Transitioned Employees 

(a) Supplier shall hire 76 Transitioned Employees in accordance with Schedule E as of the applicable Transfer Date defined in Schedule E.
Of the 76 Transitioned Employees, 47 will be assigned to perform Production Support Services. Supplier shall be fully compensated for such 47 Transitioned Employees through the Production Support Charge. 

(b) The Production Support Charge assumes the Transfer Date (defined in Schedule E) for all 47 Transitioned Employees shall be
November 16, 2008. ***. 
 (c) Without limiting any of Supplier’s obligations under this Agreement with respect to
Supplier Personnel, Health Net shall have the right to assign and prioritize work for each Transitioned Employee during the period between the applicable Transfer Date and the Scheduled Steady-State Date for the In-Scope Application on which such
Transitioned Employee is assigned to work. 
  

	4.8	Supporting Skillset Rates 

Exhibit C-7 sets forth the skillset mix and individual supporting skillset rates that were used to determine the blended T&M Rates in
Exhibit C-6 for each In-Scope Application (“Supporting Skillset Rates”). The Supporting Skillset Rates shall be used solely for (a) benchmarking, (b) to create new T&M Rates pursuant to Section 4.3(a), and
(c) to adjust the T&M Rates for an In-Scope Application if Health Net requests a material change in the skillset mix for such In-Scope Application. If Health Net requests a material change under item (c) above, the Parties shall
document the new skillset mix requested by Health Net in Exhibit C-7 and revise the blended T&M Rates in Exhibit C-6 to reflect the new skillset mix using the individual Supporting Skillset Rates in Exhibit C-7. For clarification, the adjustment
in item (c) shall apply only if Health Net requests a change in skillset mix; it shall not apply if Supplier determines that it requires a different skillset mix in order to provide the Services described in this Agreement. 

 

	5.	APPLICATIONS DEVELOPMENT 

Exhibit A-6 (Project Framework) sets forth a framework and terms under which Health Net may authorize Supplier to perform
Applications Development Projects. This Section 5 describes how the Charges for AD Projects shall be determined.  
  

	5.1	General Terms 

 (a)
Exhibit C-3 sets forth a monthly charge for the volume of Applications Development Services authorized by Health Net as of the Effective Date (“Applications Development Charge” or “AD Charge”). The AD
Charge consists of the following components for each In-Scope Application: 
 (i) The Onshore Personnel and Offshore Personnel
components of the AD Charge for each In-Scope Application in Exhibit C-3 are determined by multiplying the volume of Productive Hours for Onshore Personnel (excluding Transitioned Employees) and Offshore Personnel set forth in Exhibit C-4 for each
such In-Scope Application by the applicable T&M Rates in Exhibit C-6; 

  

					
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 (ii) The Transitioned Employee component of the AD Charge is
determined by multiplying the volume of Productive Work (as measured in hours) during the Minimum Retention Period(s) (as defined in Section 3.6 of Schedule E) of the Transitioned Employees assigned solely to perform Applications Development
Services for an In-Scope Application (as set forth in Exhibit C-5) by ***, subject to COLA as required hereunder. Upon completion of the Minimum Retention Period of a Transitioned Employee and in the event such person continues to perform
Application Development services, he or she shall be deemed an Onshore Personnel or Offshore Personnel, as the case may be, and charged at rates in accordance with such designation. 

(b) The Applications Development Charge includes a pool of Productive Hours of Applications Development Services for each In-Scope
Application (“Baseline AD Hours”). The Baseline AD Hours for each In-Scope Application shall equal: 

(i) The volume of Productive Hours for Onshore Personnel (excluding Transitioned Employees) and Offshore Personnel for the In-Scope
Application set forth in Exhibit C-4 for the applicable month, plus 
 (ii) *** Productive Hours during the Minimum Retention
Period for each Transitioned Employee assigned to perform Applications Development Services for the In-Scope Application (as set forth in Exhibit C-4), plus 
 (iii) Any additional Productive Hours within the *** described in Section 5.3. 
 (c) Beginning in November 2008, Supplier shall invoice Health Net on a monthly basis in arrears for the Baseline AD Hours, as they may be adjusted each month under Section 5.2, through the
Applications Development Charge in accordance with Section 10.1 of the Terms and Conditions. 
 (d) Supplier will make
available the Baseline AD Hours specified in Exhibit C-4, as they may be adjusted by Health Net on a monthly basis pursuant to Section 5.2(b). If Health Net does not request sufficient work to fully utilize Baseline AD Hours for a particular
In-Scope Application in a month, then Supplier shall use reasonable efforts to redeploy the Supplier Personnel assigned to provide such Baseline AD Hours for such In-Scope Application to work on other In-Scope Applications that require similar
skills (and such work shall not be considered Incremental AD Hours under Section 5.3(b)). For the avoidance of doubt, Health Net shall not be entitled to a credit or carry-over of Baseline AD Hours in a month that are unused due to Health
Net’s failure to request sufficient work to utilize such Baseline AD Hours in the month. 
 (e) Health Net and Supplier
shall each use Commercially Reasonable Efforts to prioritize, manage and coordinate Applications Development Projects to stay within the Baseline AD Hours allocation each month. 

(f) Hours spent by Supplier in performing Cross Functional Services described in Schedule A shall not be counted as Productive Hours or
applied against Baseline AD Hours except to the extent (i) they are spent performing activities described in Sections 2.3, 2.4, 2.8, 2.9 2.10, 2.11 and 2.13 of Schedule A directly relating to performing Application Development Projects, and
(ii) they are not precluded from being chargeable under Exhibit A-6 (Project Framework). 
  

	5.2	Adjustments to the Baseline AD Hours 

 (a) In connection with the Joint Capacity Planning Process, the Parties shall work together to develop and maintain a rolling 12-month forecast of AD Projects and associated resource requirements
(“AD Project Forecast”). Each month, and as otherwise requested by Health Net, the Parties shall meet to (i) update the AD Project Forecast as necessary to remain current with Health Net’s estimated AD

  

					
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Project demand and (ii) make any corresponding adjustments to the Baseline AD Hours in accordance with Section 5.2(b). 

(b) On a monthly basis, Health Net may request a change in the upcoming volume or mix of Baseline AD Hours. In such event, Supplier shall
make such change within 30 days after receiving such request and recalculate the Applications Development Charge for the remaining months in the applicable Contract Year using the formulas in Sections 5.1(a)(i) and 5.1(a)(ii). 

 

	5.3	Charges for Productive Hours in Excess of the Baseline AD Hours 

 The Parties shall adjust the Applications Development Charge on a monthly basis as provided in Section 5.2(b) to reflect changes in the Baseline AD Hours forecasted by Health Net. This
Section 5.3 describes the incremental Charge Health Net shall pay if its actual usage of Productive Hours on Applications Development Services for a particular In-Scope Application in a calendar quarter exceeds the aggregate Baseline AD Hours
for that In-Scope Application (as such Baseline AD Hours may be adjusted pursuant to Section 5.2(b)) for such calendar quarter. 
 (a) Not later than 30 days after the end of each calendar quarter, Supplier will report (i) the quantity of Productive Hours authorized by Health Net and performed by Supplier on Applications
Development Services during the quarter for each In-Scope Application (“Actual AD Hours”) and (ii) any variance in Actual AD Hours above or below the Baseline AD Hours for the In-Scope Application in that quarter.

 (b) ***: 
 (i) ***. 
 (ii) ***. 
 Example 1: ***. 
 Example 2: ***. 

(c) Supplier shall use all Commercially Reasonable Efforts to minimize Incremental AD Hours, including by cross-training Supplier
Personnel so that they can work on multiple In-Scope Applications (e.g., if an individual is assigned to MC400 but not fully utilized performing AD Projects for MC400, Supplier shall assign AD Projects for other In-Scope Applications to such
individual). 
 (d) Supplier shall include any additional charges payable under this Section 5.3 on the invoice for the
month following the end of each calendar quarter. 
  

	5.4	Offshore / Onshore Ratios 

As of the Effective Date, the Baseline AD Hours reflect what the Parties believe is the optimal mix of Offshore Personnel and Onshore
Personnel. Health Net may alter this mix by adding or removing Baseline AD Hours performed by Offshore Personnel or Onshore Personnel through the process described in Section 5.2. 

 

	5.5	Productivity 

 (a)
Productivity Commitment. Supplier shall achieve at least the annual productivity improvement set forth in the chart below for each Contract Year in providing Application Development Services (e.g., Health Net shall receive *** more
Applications Development output by the end of 

  

					
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Contract Year 2 than it received at the beginning of Contract Year 1 for the same number of chargeable Productive Hours): 

 

											
	 	  	Contract Years
	 	  	CY 1	 	CY 2	 	CY 3	 	CY 4	 	CY 5
	 Productivity Commitment
	  	***	 	***	 	***	 	***	 	***

 (b) Measuring
Productivity. Within 90 days after the Effective Date, Supplier shall propose a detailed methodology for measuring productivity within the Applications Development Services. The Parties shall then work together to refine the details of such
methodology and agree on a plan and timeline for implementing it. Thereafter, Supplier shall report upon its performance against the productivity commitments in this Section 5.5 on a quarterly basis. 

 

	5.6	Transitioned Employees 

Supplier shall hire certain Transitioned Employees in accordance with Schedule E as of the applicable Transfer Date defined in
Schedule E. The charges for Transitioned Employees (and associated Baseline AD Hours) are included in the Applications Development Charge as explained in Section 5.1(a)(ii).  

 

	6.	T&M RATES 

 (a)
Exhibit C-6 contains the T&M Rates referenced in this Schedule C and elsewhere in this Agreement. Supplier may charge Health Net using the T&M Rates only where this Agreement expressly states that Supplier is permitted to charge Health Net,
or make adjustments to Charges, “using the T&M Rates” or on a “time and materials” basis. 
 (b) ***.

 (c) ***. 
 (d) ***. 
  

	7.	OTHER CHARGES, CREDITS AND TERMS 

  

	7.1	Pass-Through Expenses 

(a) There are no Pass-Through Expenses as of the Effective Date. If the Parties agree to add Pass-Through Expenses after the Effective
Date, they shall document them in an amendment to this Agreement. 
 (b) ***. 

 

	7.2	Currency 

 All
Charges in this Agreement are stated in U.S. Dollars, and shall be invoiced by Supplier and paid by Health Net in U.S. Dollars. ***.  
  

	7.3	New Services 

 The Charges
for any New Services performed by Supplier at Health Net’s request shall be calculated in accordance with Section 3.7 of the Terms and Conditions. 

  

					
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	7.4	Disaster Recovery 

 The
Charges for all disaster recovery Services described in this Agreement as of the Effective Date are included in the Production Support Charge and Applications Development Charge. 

 

	7.5	Remedial Services 

Supplier shall not be entitled to charge Health Net for any rework or other Services required as a result of Supplier’s failure to
perform in accordance with this Agreement. 
  

	7.6	Disengagement Services 

Supplier shall invoice Health Net for Disengagement Services payable by Health Net as provided in Section 16.5(b) of the Terms and
Conditions. 
  

	7.7	Taxes 

 Supplier shall
invoice Health Net for taxes payable by Health Net as provided in Section 9.3 of the Terms and Conditions. 
  

	7.8	Minimum Commitment 

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

											
	 	  	Contract Year
	 	  	CY 1	 	CY 2	 	CY 3	 	CY 4	 	CY 5
	 Minimum Commitment
	  	***	 	***	 	***	 	***	 	***

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

	7.9	Travel 

 (a) ***.

 (b) Health Net shall reimburse Supplier for actual expenses for travel requested by Health Net in connection with an
Applications Development Product or Minor Enhancement; provided such 

  

					
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expenses are (i) approved in advance by Health Net and documented in advance and in writing; and (ii) incurred in accordance with Health Net’s travel and expense policy.

  

	8.	ADJUSTMENTS TO CHARGES 

  

	8.1	Cost of Living Adjustment (COLA) 

 (a) On January 1 of each calendar year *** Supplier shall increase (i) the Production Support Charge, (ii) the Applications Development Charge, and (iii) the T&M Rates
(collectively, the “Adjustable Charges”) by multiplying such Adjustable Charges by the applicable Inflation Factor defined below (each adjustment, a “COLA”). ***. 

(b) The “Onshore Inflation Factor” for each calendar year *** for the T&M Rates for Onshore Personnel
(including the fee set forth in Section 5.6 for Transitioned Employees performing Applications Development Services) shall be determined by the change in the AHE, and shall be equal to the sum of (i) one (1) plus (ii) the
quotient of (A) the AHE of the current calendar year less the AHE of the prior calendar year (the “Prior Year AHE”) over (B) the Prior Year AHE; provided the Onshore Inflation Factor shall not exceed *** in any
calendar year. The AHE used for this calculation will be the index published in September of current year and September of immediately preceding year. 
 (c) The “Offshore Inflation Factor” for each calendar year *** for the T&M Rates for Offshore Personnel shall be determined by the change in the UNME, and shall be equal to the
sum of (i) one (1) plus (ii) the quotient of (A) the UNME of the current calendar year less the UNME of the prior calendar year (the “Prior Year UNME”) over (B) the Prior Year UNME; provided the
Offshore Inflation Factor shall not exceed *** in any calendar year. The UNME used for this calculation will be the index published in September of current year and September of immediately preceding year. 

(d) ***. 
 (e)
Supplier shall give Health Net notice of the applicable COLA for each calendar year at least thirty (30) days prior to the beginning of such year, including detailed calculations and supporting documentation as to the determination of the
Inflation Factor and the resulting changes to the Charges for such year. 
 (f) Under no circumstances, shall any of the
Inflation Factors used be less than 1. 
 (g) “AHE” means Average Hourly Earnings of Production workers
for Professional and business services as published by the Bureau of Labor Statistics of the Department of Labor. If the Bureau of Labor Statistics (or its successor agency) stops publishing the AHE or substantially changes its content and format,
the Parties will substitute another comparable index published at least annually by a mutually agreeable source. “UNME” means Indian Consumer Price Index for Urban Non-Manual Employees as published by Ministry of Statistics
and Programme Implementation, Government of India. If the Ministry of Statistics and Programme Implementation (or its successor agency) stops publishing the UNME or substantially changes its content and format, the Parties will substitute another
comparable index published at least annually by a mutually agreeable source. 
  

	8.2	Service Level Credits 

Supplier shall credit any Service Level Credits earned in a month against the subsequent month’s Charges. 

  

					
	Schedule C (Charges)	 	C - 11	 	Health Net / Cognizant Confidential

 Final Execution Copy 

 
  

	8.3	Benchmarking 

 ***.

  

	9.	TERMINATION CHARGES 

  

	9.1	Termination Charge 

 The
following are the termination charges referenced in Section 16.1(b) of the Terms and Conditions: 
  

											
	 	  	Contract Years
	 	  	CY 1	 	CY 2	 	CY 3	 	CY 4	 	CY 5
	 Termination Charge
	  	***	 	***	 	***	 	***	 	***

  

	9.2	Pro-ration of Termination Charges 

 The termination charges set forth in Section 9.1 are the applicable amounts with respect to terminations that are effective in the first month of the relevant Contract Year and otherwise such
amounts will be prorated according to the following formula:  
  

					
		  	

	 	; where

 A = the termination charge
applicable to the Contract Year in which the termination is effective; 
 B = the termination charge applicable to the Contract
Year after the Contract Year in which the termination is effective; and 
 C = the number of whole calendar months after the
effective date of termination that remain during the Contract Year in which termination is effective. 

  

					
	Schedule C (Charges)	 	C - 12	 	Health Net / Cognizant Confidential

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