Health Net 2009 Annual Report Download - page 249

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. The Company shall not 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
survives the Participant, the Company shall direct that payment of any balance to the Participant’s account(s) be made in the
following order of priority:
(a) to the beneficiaries designated in the Participant’s last will, if specific reference is made therein to the payment of such
account(s); or if none,
(b) to the Participant’s spouse; or if none,
(c) to the Participant’s descendants, per stirpes; or if none,
(d) to the Participant’s estate.
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