Health Net 2009 Annual Report Download - page 236

(b) Initial Participation. An individual may participate in the Plan during the first Deferral Year in which the individual begins
employment with an Employer, provided that on the individual’s date of hire he or she satisfies the conditions set forth in clauses
(i) and (ii) of the definition of “Eligible Employee” and his or her annual base rate of salary for such Deferral Year is at least
$100,000 (or such other amount as determined by the Company from time to time). To participate in the Plan for such Deferral Year,
such individual must file a deferral election form with the Company within 30 days of his or her date of hire (hereinafter, such
individual is referred to as an “Eligible Employee”) and may only elect to defer Compensation with respect to services performed for
periods following the date of such election.
3.2 Deferral Elections.
(a) In General. Except as provided in Section 3.1(b), a deferral election form must be filed in accordance with rules and
procedures prescribed by the Company prior to the Deferral Year for which the election is to be effective. A deferral election for a
Deferral Year will be irrevocable as of the last day of the preceding Deferral Year. A Participant may not change a deferral election
for a Deferral Year after the beginning of such Deferral Year. A Participant must file a new election form with the Company prior to
each Deferral Year for which the election is to be effective. In no event shall an election under the Plan apply to Compensation earned
prior to the date on which the election to participate in the Plan for a Deferral Year is effective. Any deferral election under the Plan
shall be made in accordance with Section 409A(a)(4)(B) of the Code and the regulations thereunder.
(b) Deferral Amount. An Eligible Employee may elect on the election form designated by the Company to defer the receipt of
(i) between 5% and 90% of the amount that would otherwise be the Eligible Employee’s Regular Compensation for a Deferral Year,
(ii) between 5% and 100% of Other Compensation received or earned by such Eligible Employee during, or with respect to, the
Deferral Year or (iii) any combination of such percentages described in clauses (i) and (ii).
(c) Deemed Investment Election. Upon the commencement of participation in the Plan, each Participant shall specify on his or
her election form any one or more of the Investment Funds in which all of the Participant’s accounts under the Plan are to be deemed
invested.
(d) Change of Deemed Investment Election. A Participant may elect to change his or her deemed investment election as
frequently as may be designated by the Company, and in any event at least quarterly. Any such change shall specify the whole
percentages (or amounts if so permitted by the Company) to be deemed invested in one or more of the then available Investment
Funds. A Participant may change his or her election (i) with respect to the balance of his or her account(s) as of the effective date of
the Participant’s new investment election, (ii) with respect to future amounts credited to the Participant’s account(s) under Section 3.3
(a) and (b) or (iii) both. A Participant’s change of a deemed investment election must be made in accordance with the written rules
and conditions provided by the Company to the Participants.
(e) Payment Election. Except as provided in subsection (f) of this Section 3.2, an Eligible Employee must designate on a deferral
election form filed with the Company (i) a manner of payment in which the balance of his or her Account shall be paid, provided that
such
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