Health Net 2007 Annual Report Download - page 186

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
- 4 -