Document:

wti-ex105_135.htm

Exhibit 10.5

W&T OFFSHORE, INC.
AMENDED AND RESTATED INCENTIVE COMPENSATION PLAN

Executive Annual Incentive Award Agreement

For Fiscal Year 2015

This potential Annual Incentive Award (the “Award”) is granted on _____, 2015 (the “Award Date”), by W&T Offshore, Inc., a Texas corporation (the “Company”) to the executive whose name appears in the footer below (“Awardee” or “you”). 

WHEREAS, the Company in order to induce you to enter into and to continue to dedicate service to the Company and to materially contribute to the success of the Company agrees to grant you this Award; 

WHEREAS, this Award is granted to you pursuant to the W&T Offshore, Inc. Amended and Restated Incentive Compensation Plan, as may be amended from time to time (the “Plan”), and the following terms and conditions of this agreement (the “Agreement”) for the Company’s 2015 fiscal year; 

WHEREAS, a copy of the Plan has been furnished to you and shall be deemed a part of this Agreement as if fully set forth herein; and

WHEREAS, you desire to accept the Award made pursuant to this Agreement.

NOW, THEREFORE, in consideration of and mutual covenants set forth herein and for other valuable consideration hereinafter set forth, the parties agree as follows:

1.Terms and Conditions.  The Award is subject to all the terms and conditions of the Plan.  All capitalized terms not defined in this Agreement shall have the meaning stated in the Plan.  If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control unless this Agreement expressly states that an exception to the Plan is being made.

2.Definitions.  For purposes of this Agreement, the following terms shall have the meanings stated below.

(a)“Base Salary” means the base salary you received as a full time employee during the Performance Period, (i) including any amounts deferred pursuant to an election under any 401(k) plan, pre-tax premium plan, deferred compensation plan, or flexible spending account sponsored by the Company or any Subsidiary, and any overtime paid to you as an offshore employee required by your standard work schedule, but (ii)  excluding any incentive compensation, employee benefit, or other benefit paid or provided under any incentive, bonus or employee benefit plan sponsored by the Company or any Subsidiary, all overtime paid other than as specified in (i) above and/or any excellence award, gains upon stock option exercises, restricted stock grants or vesting, moving or travel expense reimbursement, sign on bonus, imputed income, or tax gross-ups, without regard to whether the payment or gain is taxable income to you.

  

Executive (2015): 

 

(b)“Disability” means your permanent disability as defined in your Individual Agreement.  In the event that there is no existing written Individual Agreement between you and the Company or if any such agreement does not define Disability, the term “Disability” shall mean: (i) a physical or mental impairment of sufficient severity that, in the opinion of the Company, (A) you are unable to continue performing the duties assigned to you prior to such impairment or (B) your condition entitles you to disability benefits under any insurance or employee benefit plan of the Company or its Subsidiaries, and (ii) the impairment or condition is cited by the Company as the reason for your termination; provided, however, that in all cases, the term Disability shall be applied and interpreted in compliance with section 409A of the Code and the regulations thereunder. 

(c)“Individual Agreement” means any employment or severance agreement, if any, between you and the Company or any Subsidiary. 

(d)“Performance Goals” means the performance criteria established by the Committee pursuant to Section 8 of the Plan and set forth in Appendix A attached hereto.

(e)“Performance Period” means the Company’s complete fiscal year ending December 31, 2015.

(f)“Total Performance Score” means the aggregate number of points you are assigned as a result of the Committee’s review, analysis and certification of the achievement of the applicable Performance Goals set forth in Appendix A attached hereto for the Performance Period.  

3.Effect of Award Agreement.   By signing this Agreement, you (a) acknowledge receipt of and represent that you have read and are familiar with this Agreement; (b) accept this Award subject to all of the terms and conditions of the Agreement and the Plan; and (c) agree to accept as binding, conclusive and final all decisions or interpretations of the Committee. 

4.Target Award.  You are hereby awarded a target Award of ___% of your Base Salary (referred to herein as your “Target Award”) subject to the terms and conditions set forth in the Plan and this Agreement.  Subject to Sections 5 and 8 below, your Total Performance Score will determine whether you may receive an Award less than, equal to, or greater than your Target Award. 

5.Maximum Performance Levels.  The maximum Total Performance Score you may be assigned shall not exceed 200, nor may the payout of your Award exceed 200% of your Target Award amount.    

6.Award Calculation.  Your Award will be calculated as follows:

(a)Based on your Total Performance Score, the payout amount of your Award will be determined using the chart below:

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Executive (2015):   

 

		
	
Total Performance Score
	
Percentage of Target Award
Paid to You

	
200
	
200%

	
100
	
100%

	
50
	
50%

	
0
	
0%

(b)General Terms.  

(i)Payout multiples between the numbers 0 and 200 on the chart in Section 6(a) above will be calculated using straight-line interpolation.

(ii)Any Award that is earned will be paid in cash as soon as practicable after the Committee has certified the applicable Performance Goals were achieved for the Performance Period, but in no event later than the seventy-fifth (75th) day following the date the Performance Period ends.  However, notwithstanding anything within this Agreement to the contrary, the Company will not pay any such cash payment unless and until the following financial condition is achieved on or before December 31, 2017:  Adjusted EBITDA less Interest Expense Incurred, as reported by the Company in its announced Earnings Release with respect to the end of any fiscal quarter plus the three preceding fiscal quarters, exceeds  $300 million.   In such case the cash payment will be made within 30 days following the achievement of this financial condition, but subject to all the terms of this Agreement, including but not limited to Sections 7(b) and 8; provided that the Committee in its sole discretion retains the right to pay any Award otherwise earned regardless of whether such financial condition is achieved.

(iii) You must be employed full time prior to September 30 within the Performance Period in order to be eligible to participate in the Plan for the Performance Period.

7.Effect of Termination of Employment.  Notwithstanding any provisions to the contrary below in the remainder of this Section 7, in the event of any inconsistency between this Section 7 and any written Individual Agreement you may have, the terms of such an Individual Agreement will control   In the event you do not have an Individual Agreement or your Individual Agreement does not address the treatment of Annual Incentive Awards under the Plan, and your employment is terminated at any time on or after the Award Date and before the Award is paid, your Award will be treated as follows:

(a)Death or Disability.  If your termination of employment is a result of your death or Disability, as determined by the Company in its sole and complete discretion, you will receive a pro-rata Award, if an Award is payable for the Performance Period,  based on the Base Salary you received during the Performance Period (the “Pro-Rata Award”).  You, your beneficiaries, or your estate, as applicable, will be paid in cash as soon as practicable after the Committee has certified the applicable Performance Goals were achieved for the Performance Period, but in no event later than the seventy-fifth (75th) day following the date the Performance Period ends; provided, however, that you must have been employed with the Company for a minimum of 90 

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Executive (2015):   

 

days during the Performance Period in order to be eligible for a Pro-Rata Award described in this Section 7(a). 

(b)Terminations other than Death or Disability.  Unless your termination of employment is a result of your death or Disability, you must be employed by the Company or a Subsidiary on the date Awards are paid in order to be eligible to receive payment of an Award.  You have no vested interest in the Award prior to the Award actually being paid to you by the Company.  If your employment with the Company or a Subsidiary terminates for any reason other than your death or Disability, whether your termination is voluntary or involuntary, with or without cause, you will not be eligible to receive payment of any Award for the Performance Period.

8.Right of the Committee.  The Committee has the right to reduce or eliminate your Award for any reason regardless of the amount of your Total Performance Score achieved.

9.Right of the Company and Subsidiaries to Terminate Services.  Nothing in this Agreement confers upon you the right to continue in the employ of the Company or any Subsidiary, or interfere in any way with the rights of the Company or any Subsidiary to terminate your employment at any time, with or without cause.

10.Withholding Taxes.  The Company may require you to pay to the Company (or the Company’s Subsidiary if you are an employee of a Subsidiary of the Company), an amount the Company deems necessary to satisfy its (or its Subsidiary’s) current or future obligation to withhold federal, state or local income or other taxes that you incur as a result of the Award.  With respect to any such required tax withholding, the Company shall withhold from the payment to be issued to you under this Agreement the amount necessary to satisfy the Company’s obligation to withhold taxes.  

11.Furnish Information.  You agree to furnish to the Company all information requested by the Company to enable it to comply with any reporting or other requirements imposed upon the Company by or under any applicable statute or regulation.

12.No Liability for Good Faith Determinations.  The Company, the Committee and the members of the Board shall not be liable for any act, omission or determination taken or made in good faith with respect to this Agreement or the Award granted hereunder.

13.Execution of Receipts and Releases.  Any payment of cash to you, or to your legal representative, heir, legatee or distributee, in accordance with the provisions hereof, shall, to the extent thereof, be in full satisfaction of all claims of such Persons hereunder. The Company may require you or your legal representative, heir, legatee or distributee, as a condition precedent to such payment, to execute a release and receipt therefor in such form as the Company shall determine.

14.Notice.  All notices required or permitted under this Agreement must be in writing and personally delivered or sent by mail and shall be deemed to be delivered on the date on which it is actually received by the person to whom it is properly addressed or if earlier the date it is sent via certified United States mail. 

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15.Waiver of Notice.  Any person entitled to notice hereunder may waive such notice in writing. 

16.Information Confidential.  As partial consideration for the granting of the Award hereunder, you hereby agree to keep confidential all information and knowledge, except that which has been disclosed in any public filings required by law, that you have relating to the terms and conditions of this Agreement; provided, however, that such information may be disclosed as required by law and may be given in confidence to your spouse and tax and financial advisors.  In the event any breach of this promise comes to the attention of the Company, it shall take into consideration that breach in determining whether to recommend the grant of any future similar award to you, as a factor weighing against the advisability of granting any such future award to you.

17.Nontransferability.  Neither this Agreement nor this Award subject to this Agreement shall be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance or garnishment by your creditors or your beneficiary, except transfer by will or by the laws of descent and distribution. All rights with respect to this Agreement shall be exercisable during your lifetime only by yourself or, if necessary, your guardian or legal representative.

18.Successors. This Agreement shall be binding upon you, your legal representatives, heirs, legatees and distributees, and upon the Company, its successors and assigns. 

19.Severability.  If any provision of this Agreement is held to be illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions hereof, but such provision shall be fully severable and this Agreement shall be construed and enforced as if the illegal or invalid provision had never been included herein.

20.Amendment.  The Committee may amend this Agreement at any time; provided, however, that no such amendment may adversely affect your rights under this Agreement without your consent, except to the extent such amendment is reasonably determined by the Committee, in its sole discretion, to be necessary to comply with applicable law or to prevent a detrimental accounting impact. No amendment or addition to this Agreement shall be effective unless in writing.

21.Headings.  The titles and headings of Sections are included for convenience of reference only and are not to be considered in construction of the provisions hereof.

22.Governing Law.  All questions arising with respect to the provisions of this Agreement shall be determined by application of the laws of Texas, without giving any effect to any conflict of law provisions thereof, except to the extent Texas state law is preempted by federal law.  

23.Consent to Texas Jurisdiction and Venue.  You hereby consent and agree that state courts located in Harris County, Texas and the United States District Court for the Southern District of Texas each shall have personal jurisdiction and proper venue with respect to any dispute between you and the Company arising in connection with the Award or this Agreement.  In any dispute with the Company, you will not raise, and you hereby expressly waive, any objection or defense to any such jurisdiction as an inconvenient forum. 

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24. The Plan.  This Agreement is subject to all the terms, conditions, limitations and restrictions contained in the Plan. 

25.Clawback.To the extent required by applicable law or any applicable securities exchange listing standards, or as otherwise determined by the Committee,  this Award and amounts or shares paid or payable pursuant to or with respect to this Award shall be subject to the provisions of any applicable clawback policies or procedures adopted by the Company or its affiliates, which clawback policies or procedures may provide for forfeiture, repurchase and/or recoupment of this Award and amounts or shares paid or payable pursuant to or with respect to such Award.  Notwithstanding any provision of the Agreement to the contrary, the Company reserves the right, without your consent or the consent of any beneficiary of this Award, to adopt any such clawback policies and procedures, including such policies and procedures applicable to this Agreement with retroactive effect. Your acceptance of this Award shall constitute your agreement (1) to be bound by such clawback policies or procedures and (2) to not seek indemnification or contribution from the Company for any amounts clawed back.

Executed by the Company as of the Award Date. 

W&T offshore, Inc.

 

 

 

 

 

 

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Executive (2015):   

 

Appendix A - For Annual Plan

Performance Goals

The Performance Goals for your 2015 Annual Incentive Award shall be comprised of two equal portions: the “Business Criteria” and the “Company and Individual Performance Criteria.”  The Business Criteria will comprise 65% of your potential Award, and the Company and Individual Performance Criteria will comprise the remaining 35% of your potential Award.   

Your Total Performance Score will be calculated using the criteria and the scales below. The Committee shall review, analyze and certify the achievement of each of the criterion below, either for the Company or yourself, as applicable, and shall determine your Total Performance Score according to the aggregate number of points you receive from each of the scales below.   

Part 1. Business Criteria 

			
	
Target Criteria
	
Percentage of Weight Relative to your Total Potential Award
	
Points

	
Production Growth: Equivalent production of at least 18.40 MMBoe for 2015, but taking into account the effect of property sales, if applicable as deemed by the  Committee. 
	
25%
	
0-50

	
Reserve Growth:  Increase in reserves to at least 126 MMBoe at YE2015 (5%); but taking into effect the effect of property sales year over year, if applicable as deemed by the Committee.
	
15%
	
0-30

	
LOE & G&A:  2015 LOE and G&A per Boe of production equal to $17.00 per Boe (excluding hurricane expenses, insurance credits for such expenses and/or other extraordinary event)
	
25%
	
0-50

	
     Total
	
65%
	
130

 

 

 

 

 

 

A-1

Executive (2015):  

 

The number of points you receive on each individual scale shall be determined as follows, using a straight-line interpolation: 

	
(a)
	
Production Growth – Production for 2015; but taking into account the effect of property sales, if applicable as deemed by the  Committee. (Measurement rounded to nearest 1/10th decimal)

		
	
Performance Level
	
Points

	
Maximum: 

 21.2 MMBoe or greater
	
50

	
Target: 18.4 MMBoe
	
25

	
Threshold: 17.6 MMBoe 
	
12.5

	
Below Threshold
	
0

 

	
(b)
	
Reserve Growth –At YE 2015, an increase in reserves over 2014 YE reserves (MMBoe); and taking into consideration the effect of property sales year over year, if applicable as deemed by the Committee.  (Measurement rounded to the nearest 1/10th decimal)

		
	
Performance Level
	
Points

	
Maximum: increase in reserves to 135.0 MMBoe or greater (12.5%)
	
30

	
Target:  increase in reserves to 126.0 MMBoe (5%)
	
15

	
Threshold: increase in reserves to 122.4 MMBoe (2%)
	
7.5

	
Below Threshold
	
0

 

(c)Combined LOE & G&A:  For 2015, the combined LOE and G&A per Boe (both measurements excluding hurricane expenses, insurance credits for such expenses and/or other extraordinary event).

(Measurement rounded to the nearest cent)

		
	
Performance Level
	
Points

	
Maximum:  $12.00 or less 
	
50

	
Target:  $17.00 
	
25

	
Threshold:   $17.50  
	
12.5

	
Below Threshold  (greater than $17.50)
	
0

 

 

 

A-2

Executive (2015): 

 

 

 

 

 

 

Part 2. Company and Individual Performance Criteria

 

			
	
Target Criteria
	
Percentage of Weight Relative to your Total Potential Award
	
Points

	
Overall Company Performance Conditions
	
 
	
 

	
2015 Adjusted EBITDA Margin Percentage  of 50%
	
20%
	
0-40

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
Individual Performance Conditions
	
 
	
 

	
Individual Performance as assessed by management for year 2015
	
15%
	
0-30

	
 
	
 
	
 

	
Total for Overall Company Performance     Conditions and Individual Performance Conditions Combined
	
35%
	
70

The number of points you receive on each individual scale shall be determined as follows, on straight-line interpolation: 

 

	
 
	
(a)
	
Adjusted EBITDA Margin Percentage YE 2015:  

(Measurement rounded to nearest full percentage point)

		
	
Performance Level
	
Points

	
Maximum:  65% or greater 
	
40

	
Target: 50% 
	
20

	
Threshold: 43% 
	
10

	
Below Threshold
	
0

 

A-3

Executive (2015): 

 

 

 

 

	
 
	
(b)
	
Individual Performance in 2015, assessed by management

(Measurement rounded to nearest 1/10th decimal)

		
	
Performance Level
	
Points

	
Maximum – Far Exceeded Expectations
	
30

	
Target – Exceeded Expectations
	
15

	
Threshold – Met expectations
	
7.5

	
Below Threshold
	
0

 

 

A-4

Executive (2015):Exhibit

Exhibit 10.1

EHEALTH, INC.
DEFERRAL ELECTION FORM 
FOR NEWLY ELIGIBLE INDIVIDUALS WITH EXISTING AWARDS
Please complete, execute and return this deferral election form (the “Election Form”) via e-mail to _________, Senior Stock Administrator at eHealth, Inc. (the “Company”), and to ________, Senior Corporate Counsel of the Company, no later than _________, 20__ (which is within 30 days of the date that you were designated by the Administrator as an Eligible Individual) (the “Submission Deadline”). THIS ELECTION FORM WILL BECOME IRREVOCABLE AS OF THE SUBMISSION DEADLINE.
Terms not otherwise defined herein shall have the meaning set forth in Exhibit A to this Election Form or the meaning set forth in the applicable Plan under which an Eligible Award was granted. 
I.    INFORMATION
Name:                                   (the “Participant”).
II.    GRANTS TO WHICH THIS ELECTION FORM APPLIES
The Awards set forth on Exhibit B are eligible and may be deferred under this Election Form (the “Eligible Awards”).  
III.    DEFERRAL ELECTION
[___] I hereby elect to defer 100% of the shares subject to the Eligible Awards that I have marked with a “Yes” on Exhibit B.   All Eligible Awards that are deferred by me on Exhibit B pursuant to this Section III shall be referred to as “Deferred Awards” hereunder).
[___]  I do not wish to defer settlement of any Eligible Award.   I understand that by not electing to defer the settlement of any Eligible Award, such Eligible Award(s), if any, will be settled (if at all) as provided in the applicable Plan and Award Agreement.
IV.    ELECTIVE SETTLEMENT DATES
Subject to the mandatory terms set forth in Section V below: 
[_]    I elect to have my Deferred Awards settled in a single lump sum installment in whole shares on ________________,     20___ (please select a date no earlier than ___________, 20__), or, if earlier, as set forth in Section V below.
[_]    I do not select a fixed settlement date for my Deferred Awards and as a result my Deferred Awards will be settled as set forth in Section V below. 
V.    MANDATORY TERMS
Notwithstanding the foregoing:
		
	1.
	Upon a Change of Control Event, your Separation Date, or your death, all Deferred Awards that have not yet been distributed to you will be automatically settled in full and immediately distributed in a single lump sum distribution.  

		
	2.
	If a distribution hereunder is triggered because of your Separation Date and you are a “specified employee” within the meaning of Section 409A at the time of your Separation Date, then the distribution that you would otherwise be entitled to receive upon the Separation Date will not be 

Exhibit 10.1

settled until the date that is 6 months and 1 day following the Separation Date, unless you die following your Separation Date, in which case, your distribution will commence as soon as practicable following your death.
VI.    PARTICIPANT ACKNOWLEDGEMENTS AND SIGNATURE
		
	A.
	I agree to all of the terms and conditions of this Election Form. 

		
	B.
	I acknowledge that I have received and read a copy of each Plan’s prospectus and that I am familiar with the terms and provisions of each Plan.  

		
	C.
	I agree to the right of the Administrator to amend or terminate this election at any time and for any reason, with or without notice; provided that such termination or amendment is performed in compliance with Section 409A (as determined by Company legal counsel in its sole and absolute discretion).  

		
	D.
	I understand that the obligation of the Company to deliver any Deferred Awards is unfunded and that no assets of any kind have been segregated in a trust or otherwise set aside to satisfy any obligation under this Election Form.  I also understand that any election to defer the settlement of any Eligible Awards pursuant to this Election Form will make me only a general, unsecured creditor of the Company.  

		
	E.
	I understand that any amounts deferred will be taxable as ordinary income in the year settled, but may be subject to certain employment taxes in the year vested.  Notwithstanding, I agree and understand that the Company does not guarantee in any way whatsoever the tax treatment of any deferrals or payments made under the Plans or this Election Form.  I am solely will be responsible for all taxes and any other costs owed with respect to any deferrals or payments made with respect to my Eligible Awards. 

		
	F.
	I agree that the Company has the right (but not the obligation) to withhold taxes from my Deferred Awards (including pursuant to net share withholding) as is necessary to satisfy any income tax withholding obligations upon settlement. 

		
	G.
	I understand and agree that the Company will not be able to withhold employment taxes from my Deferred Awards (i.e., through net share withholding), and I will be obligated to pay the required amount in cash at the time they become due from my own personal funds.  I hereby consent to having the Company withhold from other wages due to me if I do not make other arrangements (e.g., writing a personal check) that are satisfactory to the Company to satisfy any employment tax withholding obligations upon vesting, but the Company will not be obligated to do so.  

		
	H.
	I understand that the Company will be under no obligation to deliver any Deferred Awards subject to such award until any income and employment tax withholding obligations are satisfied and that if I fail to satisfy any such tax withholding obligations I may forfeit my right to receive the Shares subject to my Deferred Award.  

		
	I.
	I understand that, upon receipt of any Deferred Awards, in addition to federal taxes, I may owe taxes to the state where I resided at the time of vesting in the Eligible Award and/or to the state where I reside when I receive the Deferred Awards, if different.

		
	J.
	I understand, acknowledge and agree that the Administrator has the discretion to make all determinations and decisions regarding any elections set forth on this Election Form.  

		
	K.
	I understand that this Election Form and the elections made hereunder are intended to comply with the requirements of Section 409A so that none of the Deferred Awards issuable will be subject to the tax acceleration and additional penalty taxes imposed under Section 409A, and any ambiguities herein will be interpreted to so comply.  If applicable, I understand that I am solely responsible for any accelerated income taxes and additional taxes and tax penalties imposed by Section 409A.

		
	L.
	I also understand that this Election Form and the elections made hereunder will in all respects be subject to the terms and conditions of the Plans, as applicable.  Should any inconsistency exist between this Election Form, the Plan under which an Eligible Award was granted, the Award Agreement under 

Exhibit 10.1

which an Eligible Award was granted, and/or any applicable law, then the provisions of either the applicable law (including, but not limited to, Section 409A) or the applicable Plan will control, with the applicable Plan subordinated to the applicable law and the Award Agreement subordinated to this Election Form.
By signing this Election Form, I authorize the implementation of the above elections.  I understand that any deferral election in Section III is irrevocable effective as of the Submission Deadline and may not be changed in the future, except in accordance with the requirements of Section 409A and the procedures specified by the Administrator.

Signed:                 Date:  _______________, ______
 PARTICIPANT 

Agreed to and accepted:

EHEALTH, INC.

By:         Date: ________________, ______
    

Title:    

IMPORTANT DEADLINE:  Please remember that if you wish to make any election set forth on this Election Form, then the properly completed Election Form must be signed by you and returned ON OR BEFORE THE SUBMISSION DEADLINE via e-mail to ________, Senior Stock Administrator, at ________ and to ________, Senior Corporate Counsel, at ________.  You may not hand-deliver your Election Form.
EXHIBIT A
DEFINITIONS
“Administrator” means the Compensation Committee of the Company’s Board of Directors (or any other authorized designee of the Board as set forth in the applicable Plan under which an Eligible Award is granted).
“Affiliate” means each corporation, trade or business that is, together with the Company, a member of a controlled group of corporations or under common control (as determined under section 414(b) or (c) of the Code), but only for the period during which such other entity is so affiliated with the Company.  Notwithstanding the foregoing, in applying sections 1563(a)(1), (2) and (3) of the Code for purposes of determining a controlled group of corporations under section 414(b) of the Code and in applying Treasury regulation section 1.414(c)-2 for purposes of determining trades or businesses that are under common control for purposes of section 414(c) of the Code, the phrase “at least 50 percent” will be used instead of “at least 80 percent” at each place it appears in such sections.
“Award” means a restricted stock unit or performance stock unit award granted under a Plan.
“Award Agreement” means that written agreement between the Participant and the Company evidencing the grant of an Award.

Exhibit 10.1

“Board” means the Board of Directors of the Company, as from time to time constituted.
“Change in Control Event” means, as applicable, a Change in Control as defined in Section 16(e) of the 2014 Plan with respect to an Award granted under the 2014 Plan, and a Change in Control as defined in Section 16.5 of the 2006 Plan with respect to an Award granted under the 2006 Plan, provided, however, in each case, such event qualifies as a change in the ownership or effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company, as determined in accordance with section 409A(a)(2)(A)(v) of the Code and Treasury regulation section 1.409A-3(i)(5).
“Code” means the U.S. Internal Revenue Code of 1986, as amended.  Reference to a specific section of the Code will include such section, any valid regulation or other Treasury Department or Internal Revenue Service guidance promulgated thereunder, and any comparable provision of any future legislation amending, supplementing or superseding such section.
“Company” means eHealth, Inc., a Delaware corporation.
“Eligible Individual” means a person who is a member of the Board or is U.S. employee of the Company with a title of Senior Vice President and above following the establishment of this deferred compensation program.  For the avoidance of any doubt, if an individual providing services to the Company qualifies as an “Eligible Individual” and then later ceases to qualify as an “Eligible Individual” following the date an election to defer becomes irrevocable, he or she shall continue to be subject to terms and conditions of any such deferral election.
“Grant Date” means the date of grant of the Award, as applicable.
“Plan” means, as applicable, either (1) the Company’s 2014 Equity Incentive Plan, as amended from time to time (“2014 Plan”), or (2) the Company’s 2006 Equity Incentive Plan, as amended from time to time (“2006 Plan”).
“Qualifying Disability” means any medically determinable physical or mental impairment resulting in the Participant’s inability to perform the duties of his or her position of employment or any substantially similar position of employment, where such impairment can be expected to result in death or can be expected to last for a continuous period of not less than six (6) months.  The Company will determine whether or not the Participant has incurred a Qualifying Disability based on such evidence as the Company deems necessary or advisable.
“Section 409A” means Section 409A of the Code.
“Separation Date” means the date of the Participant’s death, retirement or other termination of employment with the Company and all of its Affiliates (as determined in accordance with section 409A(2)(A)(i) of the Code and Treasury regulation section 1.409A-1(h)).  For this purpose, the employment relationship will be treated as continuing intact while the Participant is on military leave, sick leave or other bona fide leave of absence, except that if the period of such leave exceeds six (6) months and the Participant does not retain a right to reemployment under an applicable statute or by contract, then the employment relationship will be deemed to have terminated on the first day immediately following such six (6)-month period.  A leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services.  Notwithstanding the foregoing, if a leave of absence is due to a Qualifying Disability, a twenty-nine (29)-month period of absence will be substituted for the six (6)-month period specified above.
EXHIBIT B

Exhibit 10.1

ELIGIBLE AWARDS
NOTE:  You may choose to defer on a grant-by-grant basis only.   Please mark “Yes” next to each Eligible Award that you want to defer.  By marking “Yes” you are electing to defer 100% of the “Unvested Shares Eligible for Deferral.”

	
				
	Grant Number
	Total Shares Subject to Grant
	Unvested Shares Eligible for Deferral
	Participant’s Election to Defer

	RSU Grant Number: ______
	 
	 
	Yes  [_]
No [_]

	PSU Grant Number: ______
	 
	 
	Yes  [_]
No [_]

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