Health Net 2009 Annual Report Download - page 239

4.3 Emergency Payments. In the event of an Unforeseeable Financial Emergency, as hereinafter defined, the Participant may file
a written request with the Company to receive all or any portion of the balance of such Participant’s account(s) in an immediate lump
sum payment. A Participant’s written request for such a payment shall describe the circumstances which the Participant believes
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ustify the payment and an estimate of the amount necessary to eliminate the Unforeseeable Financial Emergency. An “Unforeseeable
Financial Emergency” shall mean unforeseeable severe financial hardship resulting from (i) the Participant’s Disability, (ii) a sudden
and unexpected illness or accident of the Participant or a dependent of the Participant, (iii) loss of the Participant’s property due to
casualty or (iv) such other extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the
Participant, all as determined in the sole discretion of the Company, provided that any such Unforeseeable Financial Emergency must
also constitute an “unforeseeable emergency” as defined in Treasury Regulation 1.409A-3(i). Unforeseeable Financial Emergency
payments shall be made only to the extent necessary to satisfy the emergency need and shall not be made to the extent the need is or
may be relieved through reimbursement or compensation, by insurance or otherwise, by the Company’s cessation of deferrals under
the Plan or by liquidation of the Participant’s assets (to the extent such liquidation itself would not cause severe financial hardship).
Any Unforeseeable Financial Emergency payment from a Participant’s account(s) shall be deemed to cancel any deferral election of
the Participant then in effect and, unless otherwise determined by the Company, the Participant shall be suspended from making
further deferral elections under the Plan during the remainder of the Deferral Year in which such payment is made and the Deferral
Year immediately thereafter. Any payment as a result of an Unforeseeable Financial Emergency shall be made in accordance with
Section 409A(a)(2)(A)(vi) of the Code and the regulations thereunder.
4.4 Distributions to Minor and Incompetent Persons. If a payment is to be made to a minor or to an individual who, in the
opinion of the Company, is unable to manage his or her financial affairs by reason of illness or mental incompetency, such payment
may be made to or for the benefit of any such individual in any of the following ways as the Company shall direct: (a) directly to any
such minor individual if, in the opinion of the Company, he or she is able to manage his or her financial affairs, (b) to the legal
representative of any such individual, (c) to a custodian under a Uniform Gifts to Minors Act for any such minor individual, or (d) to
a relative of any such individual to be used for the latter’s benefit. Neither the Company nor any Employer shall be required to see to
the application by any third party of any payment made to or for the benefit of a Participant or Beneficiary pursuant to this Section.
4.5 Beneficiaries. A Participant shall have the right to designate a Beneficiary, and amend or revoke such designation at any
time, in writing. Such designation, amendment or revocation shall be effective upon receipt of the Participant’s written designation by
the Company. If a Participant is married at the time a Beneficiary designation is submitted to the Company, the designation of a
Beneficiary other than the Participant’s spouse shall not be effective unless the Participant’s spouse consents to such designation in
writing, or it is established to the satisfaction of the Company that such consent could not be obtained because the Participant’s
spouse cannot be located or such other circumstances as may be considered by the Company. Subject to the preceding sentence, a
Participant may from time to time, without the consent of any Beneficiary, change or cancel any such designation. Such designation
and each change therein shall be made in the form prescribed by the Company and shall be filed with the Company. If no Beneficiary
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