Health Net 2007 Annual Report Download - page 206

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Exhibit 10.16
[Name]
FORM
RESTRICTED STOCK UNIT AGREEMENT
This Restricted Stock Unit Agreement (this “Restricted Stock Unit Agreement”) is made and entered into as of [DATE OF
GRANT] (the “Date of Grant”), by and between Health Net, Inc., a Delaware corporation (the “Company”), and [NAME] (the
“Recipient”).
WHEREAS, the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company has
approved the grant of Restricted Stock Units, as hereinafter defined, to the Recipient as set forth below under the Company’s [NAME
OF PLAN] (the “Plan”).
1
Capitalized terms used but not defined herein shall have the meanings set forth in the Plan.
NOW, THEREFORE, in consideration of the covenants and agreements herein contained and intending to be legally bound
hereby, the parties agree as follows:
1. Grant of Restricted Stock Units. The Company hereby grants to the Recipient [NUMBER OF UNITS] restricted stock units
(the “Restricted Stock Units”), each of which represent to rights to receive, upon vesting, a share of the Common Stock, par value
$.001 per share (the “Common Stock”) of the Company, subject to all of the terms and conditions of this Restricted Stock Unit
Agreement.
2. Lapse of Restrictions. Except as otherwise provided in Section 3 hereof, the Restricted Stock Units shall vest with respect to
all of the Restricted Stock Units on the [NUMBER] anniversary of the Grant Date (the “Vesting Date”). Upon the Vesting Date, the
Recipient shall pay to the Company the par value in cash for each share of Common Stock delivered pursuant to this grant. Shares
that have become vested may be evidenced by stock certificates, at the request of the Recipient, which certificates shall be registered
in the name of the Recipient and delivered to Recipient within ten (10) days of such request.
3. Termination of Employment.
(a) Except as otherwise set forth in Section 10, if prior to the Vesting Date, the Recipient’s employment with the Company
is terminated by either the Recipient or the Company for any reason (a “Termination Event”) other than Retirement (as defined
below), then all of the Restricted Stock Units shall be immediately forfeited at such time. If the Recipient’s employment with the
Company is terminated prior to the Vesting Date due to Retirement, then a portion of the Restricted Stock Units not yet vested shall
vest immediately, which portion shall equal the total number of Restricted Stock Units multiplied by a fraction, the numerator of
which is the number of full years which have elapsed from the Date of Grant to the date of Retirement
1
1 Note to Draft- this form will work with either plan.