Health Net 2009 Annual Report Download - page 248

date of payment, provided that, such irrevocable election will be effective no earlier than 12 months after the date on which such
election is made; further, provided, that any such election shall be made in accordance with Section 409A(a)(4)(C) of the Code and
the regulations thereunder, pursuant to procedures and rules prescribed by the Company. If a Participant has only one election form
on file with the Company and terminates service as a Director before the expiration of twelve (12) months since the delivery of such
election form, then, notwithstanding the Participant’s election with respect to the timing of the payment, or commencement of
payment, of his or her Account or In-Service Withdrawal Account, as the case may be, the balance of such account shall be paid or
shall commence to be paid on the Payment Date for the calendar year in which the Participant’s service terminates.
(b) In-Service Withdrawals. A Participant may elect to receive any percentage of an amount deferred for a Deferral Year in any
In-Service Withdrawal Year that begins at least three years after such Deferral Year. Such percentage shall be credited to an In-
Service Withdrawal Account established in the Participant’s name and the amount credited to such account shall be paid in a lump
sum within 90 days after the first day of the In-Service Withdrawal Year as elected by the Participant. Notwithstanding the
immediately preceding sentence, if a Participant terminates service as a Director in a calendar year prior to such In-Service
Withdrawal Year, then the amount credited to the Participant’s In-Service Withdrawal Account shall be paid in a lump sum on the
earlier of: (i) the Payment Date for the Deferral Year with respect to which the Participant’s Account shall be paid or shall commence
to be paid, as elected by the Participant pursuant to Section 4.1 (subject to the Required Delay), or (ii) within 90 days after the first
day of the In-Service Withdrawal Year as elected by the Participant.
4.2 Manner of Payment. Each Participant shall receive payment of the amount credited to the Participant’s Account either in a
single lump sum or in substantially equal annual installments (as adjusted to reflect earnings or losses thereon) at least equal to $1,000
over a period of not less than two and not more than ten years, as elected by the Participant upon his or her commencement of
participation in the Plan. Notwithstanding the foregoing sentence, such Account shall be paid to such Participant or his or her
Beneficiary in the form of a single lump sum if (i) the amount credited to such Account as of the relevant Payment Date is less than
the applicable dollar amount under Section 402(g)(1)(B) of the Code, (ii) the Participant has not attained age 55 as of the date of such
Participant’s termination of service as a Director or (iii) the Participant dies before all installment payments have been made.
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
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