Amendment Number Four To Health Net, Inc. 401(K) Savings Plan

Exhibit 10.3


AMENDMENT NUMBER FOUR

TO THE

HEALTH NET, INC. 401(k) SAVINGS PLAN (as amended and restated effective January 1, 2001)

WHEREAS, Health Net, Inc. (the " Company" ) heretofore has adopted and maintains a defined contribution plan designated the Health Net, Inc. 401(k) Savings Plan (the " Plan" ) on behalf of eligible employees;


WHEREAS, the Company desires to amend the Plan to reflect changes required by the Internal Revenue Service pursuant to the Plan' s determination letter request;

WHEREAS, the Company desires to amend the Plan to reflect changes required by the Department of Treasury Regulations regarding required minimum distributions under section 4019(a)(9) of the Internal Revenue Code of 1986, as amended (the " Code" ); and

WHEREAS, pursuant to section 15.1 of the Plan, the Plan can be amended by the Board of Directors of the Company.


NOW THEREFORE, the Plan is amended as follows:


1. Section (15) of Article 2 of the Plan is hereby amended, effective January 1, 2001, by adding the following paragraph to the end thereof.

An Employee who is scheduled to work less than 20 Hours of Service per week shall become an Eligible Employee on the first Entry Date coinciding with or next following either (i) the end of the 12-consecutive month period beginning on the Employee' s employment commencement date if such Employee performs at least 1,000 Hours of Service in such 12-consecutive month period or (ii) the first Plan Year beginning in such 12-consecutive month peri ...