Health Net 2009 Annual Report Download - page 237

manner of payment is permitted under Section 4.2, and (ii) whether the Account is to be paid on the Payment Date occurring
immediately after (x) the calendar year in which the Eligible Employee terminates employment with the Employer, or (y) the calendar
year immediately following the calendar year in which such employment terminates. The Participan
t
’s election on a deferral election
form shall in no event supersede the Participant’s election with respect to previously deferred amounts (and credits attributable
thereto).
(f) In-Service Withdrawals. A Participant may elect for any Deferral Year on a deferral election form filed with the Company
(i) to designate any percentage of the amount to be deferred to be credited to an In-Service Withdrawal Account established on behalf
of the Participant and (ii) to receive payment of the balance of such In-Service Withdrawal Account in a lump-sum within 90 days
after the first day of the In-Service Withdrawal Year so designated by the Participant.
3.3 Deferred Compensation Account.
(a) Crediting Deferred Compensation. Any amount otherwise payable as Compensation that is deferred by a Participant
hereunder shall be credited to the applicable account of the Participant as of the date on which, absent such election, such amount
would have been payable to the Participant as Compensation.
(b) Earnings. Each Participant’s account(s) under the Plan shall be credited with deemed earnings, or reduced by deemed losses,
equal to the earnings or losses that would have been realized or paid if assets in an amount equal to the balance of such account(s)
were actually invested among the Investment Funds selected by the Participant in accordance with Section 3.2(c) and (d). Although
the Company or an Employer might actually invest assets of the Company or such Employer according to the Participant’s election, it
is not required to do so nor to set aside any assets to provide for payments hereunder. The Company may promulgate separate
accounting and administrative rules to facilitate the deemed investment in an Investment Fund.
(c) Notices. Each Participant shall receive written notice of the balance of his or her account(s) as soon as practicable following
the last day of each calendar quarter.
IV. PAYMENTS OF DEFERRED COMPENSATION
4.1 Timing.
(a) In General. The balance of a Participant’s Account shall be paid or shall commence to be paid on the Payment Date
occurring immediately after (i) the calendar year in which the Participant terminates employment with the Employer, or (ii) the
calendar year immediately following the calendar year in which such employment terminates, as elected by the Participant on the
applicable election form of the Participant. Notwithstanding the foregoing, in the event that the Participant is a “specified
employee” (within the meaning of Section 409A of the Code) with respect to the Company at the time of a termination of
employment, the payment (or the commencement of payment) of the Participant’s Account shall be delayed until the earliest date
upon which such payment may be made or commenced without such payment being subject to taxation under Section 409A (the
“Required Delay”). In the event that the Participant has elected
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