Health Net 2007 Annual Report Download - page 211
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18. Section 409A. For purposes of determining whether the Recipient has experienced a Retirement for purposes of this
Restricted Stock Unit Agreement or whether the Recipient has experienced a termination of employment for purposes of Section 10
hereof, the Recipient will not be treated as having terminated employment unless such termination constitutes a “Separation from
Service” as defined for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). If the Recipient is
“specified employee” (within the meaning of Section 409A) with respect to the Company at the time of a termination of employment
and the Recipient becomes vested in Restricted Stock Units as a consequence of a termination of employment, the delivery of
Common Stock in respect of such Restricted Stock Units shall be delayed until the earliest date upon which such Common Stock may
be delivered to Recipient without being subject to taxation under Section 409A.
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