Document:

10Q Exhibit 10.17.2

		

			 

		

		
			            Exhibit 10.17.2
		

		
			EHEALTH, INC.
EXECUTIVE BONUS PLAN
2013
		

			
			
				 1.
			

			
			
			Plan Objectives.

			
			
				  
			

			
			
			Reward management for achieving stated business objectives

			
			
				  
			

			
			
			Build long-term stockholder value

			
			
				  
			

			
			
			Provide competitive compensation for senior management

			
			
				 2.
			

			
			
			Administration.  The Compensation Committee of eHealth, Inc. (the “Company”) will administer the Executive Bonus Plan (the “Plan”). The Compensation Committee reserves the right at any time during the fiscal year to modify the Plan in total or in part.  This Plan may be amended, suspended or terminated at any time at the sole and absolute discretion of the Compensation Committee.

			
			
				 3.
			

			
			
			Eligibility.  Senior management of the Company as nominated by the CEO and approved by the Compensation Committee, but not including the CEO, (collectively, “Participants”) are eligible to participate in this Plan.  Participation in the Plan in one year does not imply continued Plan participation in any subsequent year.  Participants must be employed at the time of payment to earn any payment under the Plan.

		
			Eligible senior management hired during the Plan year will have their Target Incentive Percentage and Maximum Incentive Percentage set by the Compensation Committee (see Item 5 below).  Such Participant’s incentive payout will be pro-rated from the first day of employment; provided that the Compensation Committee determines that the Participant is eligible to participate.  Employees hired after September 30, 2013 are not eligible for incentive payout for the 2013 Plan year, unless the Compensation Committee determines otherwise.
		

			
			
				 4.
			

			
			
			Term.  12 months, commencing on January 1, 2013 and ending on December 31, 2013.

			
			
				 5.
			

			
			
			Target Incentive Payout.  The Compensation Committee will approve a Target Incentive Percentage and a Maximum Incentive Percentage for each Participant.  The incentives under this Plan are expressed as a percentage of annual base salary as of the time the Compensation Committee approves a Participant’s participation in the Plan (the “Annual Salary”).  Attached, as Exhibit A, is a schedule of the Annual Salary, Target and Maximum Incentive Percentages and aggregate incentive for each 2013 Plan Participant. The aggregate “Target Incentive Award” for each Participant is equal to that Participant’s Annual Salary multiplied by the Target Incentive Percentage for that Participant.

		 

		

			5560297_2            -1-

		

 

		

			 

		

			
			
				 6.
			

			
			
			Incentive Determination.  100% of each Participant’s potential Target Incentive Award is based upon achievement of the 2013 Revenue, Non-GAAP Operating Earnings (GAAP Operating Income without stock compensation and amortization of acquired intangibles) and EBITDA (GAAP Operating Income without stock compensation, amortization of acquired intangibles and depreciation and amortization) performance goals of the Company (each, a “Goal”) as approved by the Compensation Committee in connection with the adoption of this Plan and subject to adjustment as set forth elsewhere in this Plan.  The Revenue Goal comprises  50% of the total potential Target Incentive Award. The Non-GAAP Operating Earnings Goal and the EBITDA Goal each comprise 25% of the total potential Target Incentive Award.   In order to determine payouts based upon Goal performance achievement between whole percentages, the Compensation Committee shall apply straight-line interpolation.

		
			On-Target Performance Payout.    In the event the Company meets the Revenue Goal, a Participant shall receive 50% of the product determined by multiplying the Target Incentive Percentage of the Participant by the Participant’s Annual Salary; in the event the Company meets the  Non-GAAP Operating Earnings Goal or the EBITDA Goal, a Participant shall receive 25% (for each goal) of the product determined by multiplying the Target Incentive Percentage of the Participant by the Participant’s Annual Salary (respectively, for each of the three Goals, a “Goal Target Payout”).  
		

		
			Below 95% Performance.  If a Goal is achieved as to less than 95%, there will be no payout for that Goal.  
		

		
			95-99% Performance Payout.  If a Goal is achieved at a 95% level, a Participant shall receive, in connection with the partial achievement of that Goal, 50% of the Goal Target Payout.  If a Goal is achieved at the 96% level, a Participant shall receive, in connection with the partial achievement of that Goal, 60% of the Goal Target Payout.   If a Goal is achieved at the 97% level, a Participant shall receive, in connection with the partial achievement of that Goal, 70% of the Goal Target Payout.  If a Goal is achieved at the 98% level, a Participant shall receive, in connection with the partial achievement of that Goal, 80% of the Goal Target Payout.   If a Goal is achieved at the 99% level, a Participant shall receive, in connection with the partial achievement of that Goal, 90% of the Goal Target Payout.   
		

		
			Above 100% Performance Payout – 2013 Revenue Goal.   Subject to the other provisions of this Plan, for each percent achieved above 100% of the 2013 Revenue Goal, the Participant will receive an additional 5% of the Goal Target Payout for the Revenue Goal up to a maximum additional payment equal to 50% of the Goal Target Payout.
		

		
			Above 100% Performance Payout – 2013 Non-GAAP Operating Earnings Goal.   If and only if the 2013 Revenue Goal is achieved at a level of 100% or more, then for each percent achieved above 100% of the 2013 Non-GAAP Operating Earnings Goal, the Participant will receive an additional 2.5% of the Goal Target Payout up to a maximum additional Goal Target Payout of 50%.
		

		
			Above 100% Performance Payout – 2013 EBITDA Goal.   If and only if the 2013 Revenue Goal is achieved at a level of 100% or more, then for each percent achieved above 100% of the 2013 
		

		 

		

			            -2-

		

 

		

			 

		

		EBITDA Goal, the Participant will receive an additional 2.5% of the Goal Target Payout up to a maximum additional Goal Target Payout of 50%.
		

		
			The Company must be profitable on an operating basis (excluding non-cash charges) for a Participant to qualify for their maximum payout under the Plan for any specific Goal.  If the Company is not profitable on an operating basis (excluding non-cash charges), the maximum possible payout for the achievement of all three Goals shall be no more than 100% of the Participant’s Target Incentive Award.
		

		
			The 2013 Revenue Goal, Non-GAAP Operating Earnings Goal and EBITDA Goal and performance may exclude, at the Compensation Committee’s sole discretion, (i) the effect of mergers and acquisitions closing in 2013 (if any),  (ii) any extraordinary non-recurring items as described in Accounting Principles Board Opinion No. 30 or as otherwise determined by the Compensation Committee to be extraordinary or non-recurring in its sole discretion, and (iii)  the effect of any changes in accounting principles affecting the Company’s or a business units’ reported results.
		

			
			
				 7.
			

			
			
			Payment.  Payments under the Plan will be made following the release of the Company’s earnings to the public, but in no event later than March 15, 2014.   The Compensation Committee must approve all executive officer incentive awards prior to payment.  All Plan payments will be made net of applicable withholding taxes.

			
			
				 8.
			

			
			
			Employment at Will.  The employment of all employees at eHealth is terminable at any time by either party, with or without cause being shown or advance notice by either party.  This Plan shall not be construed to create a contract of employment for a specified period of time between eHealth and any employee.

			
			
				 9.
			

			
			
			Entire Agreement.  This Plan is the entire agreement between eHealth and the eligible employees regarding the subject matter of this Plan and supersedes all prior bonus compensation or bonus incentive plans or any written or verbal representations regarding the subject matter of this Plan.  

		
			******
		

		
			 
		

		

		

		 

		

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		EXHIBIT A
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Salaries, Incentives and Incentive Percentages for 2013 Plan Participants

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						INCENTIVE %

					
					
						INCENTIVE $

					
					
						 

				
	
					
						 

					
					
						OFFICERS

					
					
						SALARY

					
					
						TITLE

					
					
						TARGET

					
					
						MAX

					
					
						TARGET

					
					
						MAX

					
					
						 

				
	
					
						 

					
					
						Gibbs, Sam

					$
250,000 
					
					
						President, Govt Systems

					
60% 
					
90% 
					$
150,000 
					$
225,000 
					
					
						 

				
	
					
						 

					
					
						Huizinga, Stuart

					$
300,000 
					
					
						CFO

					
60% 
					
90% 
					$
180,000 
					$
270,000 
					
					
						 

				
	
					
						 

					
					
						Hurley, Robert

					$
257,500 
					
					
						SVP

					
60% 
					
90% 
					$
154,500 
					$
231,750 
					
					
						 

				
	
					
						 

					
					
						Tsao, Tom

					$
288,500 
					
					
						SVP

					
60% 
					
90% 
					$
173,100 
					$
259,650 
					
					
						 

				
	
					
						 

					
					
						Shaughnessy, Bill

					$
500,000 
					
					
						President & COO

					
60% 
					
90% 
					$
300,000 
					$
450,000 
					
					
						 

				
	
					
						 

					
					
						Wu, Jiang

					$
262,500 
					
					
						SVP

					
60% 
					
90% 
					$
157,500 
					$
236,250 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		 

		

			            -1-10Q Exhibit 10.5.9

		
			Exhibit 10.5.9 
		

		
			EHEALTH, INC. 2006 EQUITY  INCENTIVE  PLAN 
		

		
			NOTICE OF  STOCK  UNIT  GRANT 
		

		
			You have been granted the following Stock Unit award covering shares of the Common Stock of eHealth, Inc. (the “Company”). Each Unit is equivalent to one share of Common Stock of the Company (a “Share”) for purposes of determining the number of Shares subject to this award. None of the restricted Stock Units will be issued (nor will you have the rights of a stockholder with respect to the underlying shares) until the vesting conditions described below are satisfied. Additional terms of this grant are as follows: 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Name of Participant:

					
					
						 

					
					
						«Name»

				
	
					
						 

					
					
						 

				
	
					
						Total Number of Shares:

					
					
						 

					
					
						«TotalShares»

				
	
					
						 

					
					
						 

				
	
					
						Date of Grant:

					
					
						 

					
					
						«DateGrant»

				
	
					
						 

					
					
						 

				
	
					
						Vesting Commencement Date:

					
					
						 

					
					
						«VestDay»

				
	
					
						 

					
					
						 

				
	
					
						Vesting Schedule:

					
					
						 

					
					
						[INSERT VESTING SCHEDULE HERE]

				

		
			Performance-Based Vesting Metrics: 
		

		
			[INSERT VESTING PROVISIONS HERE]
		

		
			You and the Company agree that this Stock Unit award is granted under, and governed by the terms and conditions of, the 2006 Equity Incentive Plan (the “Plan”) and the Stock Unit Award Agreement, both of which are attached to and made a part of this document. 
		

		
			In the event of a Change in Control, as defined in the Plan, prior to the completion of the Company’s [INSERT APPLICABLE YEAR HERE] fiscal year, [INSERT APPLICABLE PERFORMANCE GOALS HERE] shall be deemed to be achieved at 100% of their respective targets. 
		

		
			You further agree that the Company may deliver by email all documents relating to the Plan or this award (including, without limitation, prospectuses required by the Securities and Exchange Commission) and all other documents that the Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements). You also agree that the Company may deliver these documents by posting them on a website maintained by the Company or by a third party under contract with the Company. If the Company posts these documents on a website, it will notify you by email. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						PARTICIPANT:

					
					
						 

					
					
						 

					
					
						 

					
					
						EHEALTH, INC.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						 

					
					
						 

				

		
			 
		

		

		

		 

 

		
		

		
			eHealth, Inc. 2006 Equity Incentive Plan 
		

		
			Stock Unit Agreement 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Grant

					
					
						 

					
					
						The Company hereby grants you an award of restricted Stock Units (“RSUs”), as set forth in the Notice of Stock Unit Grant (the “Notice of Grant”) and subject to the terms and conditions in this Agreement and the Company’s 2006 Equity Incentive Plan (the “Plan”). Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Stock Unit Agreement. When the RSUs are settled, par value will be deemed paid by you for each RSU by past services rendered by you.

				
	
					
						 

					
					
						 

				
	
					
						Company’s Obligation

					
					
						 

					
					
						Each RSU represents the right to receive a share of Stock (a “Share”) on the vesting date. Unless and until the RSUs vest, you will have no right to receive Shares under such RSUs. Prior to actual distribution of Shares pursuant to any vested RSUs, such RSUs will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company. Settlement of any vested RSUs shall be made in whole Shares only.

				
	
					
						 

					
					
						 

				
	
					
						Vesting

					
					
						 

					
					
						Subject to the next paragraph (Forfeiture upon Termination of Service), the RSUs awarded by this Agreement will vest according to the vesting schedule specified in the Notice of Grant. If you commence working on a part-time basis, then the vesting schedule specified in the Notice of Grant may be adjusted in accordance with the Company’s part-time work policy or the terms of an agreement between you and the Company pertaining to your part-time schedule.

				
	
					
						 

					
					
						 

				
	
					
						Forfeiture upon Termination of Service

					
					
						 

					
					
						Notwithstanding any contrary provision of this Agreement or the Notice of Grant, if you terminate Service for any or no reason prior to vesting, the unvested RSUs awarded by this Agreement will thereupon be forfeited at no cost to the Company, except as otherwise specified in any duly authorized written agreement between you and the Company.

				
	
					
						 

					
					
						 

				
	
					
						Leaves of Absence

					
					
						 

					
					
						For purposes of this RSU, your Service does not terminate when you go on a military leave, a sick leave or another bona fide leave of absence, if the leave was approved by the Company in writing and if continued crediting of Service is required by the terms of the leave or by applicable law. But your Service terminates when the approved leave ends, unless you immediately return to active work. If you go on a leave of absence, then the vesting schedule specified in the Notice of Grant may be adjusted in accordance with the Company’s leave of absence policy or the terms of your leave.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Payment after Vesting

					
					
						 

					
					
						Any RSUs that vest hereunder will be paid to you (or in the event of your death, to your estate) in Shares.

				
	
					
						 

					
					
						 

				
	
					
						Tax Withholding

					
					
						 

					
					
						Notwithstanding any contrary provision of this Agreement, no Shares shall be distributed to you unless and until you have made satisfactory arrangements with respect to the payment of income, employment and any other taxes which must be withheld with respect to such Shares. The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit you to satisfy such tax withholding obligation, in whole or in part by one or more of the following: (a) paying cash, (b) electing to have the Company withhold otherwise deliverable Shares having a value equal to the minimum amount statutorily required to be withheld, (c) delivering to the Company already vested and owned Shares having a value equal to the amount required to be withheld, or (d) selling a sufficient number of such Shares otherwise deliverable to you through such means as the Administrator may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld. If you fail to make satisfactory arrangements for the payment of any required tax withholding obligations with respect to Shares that are vesting, the Administrator, in its sole discretion, may require you to permanently forfeit such Shares and the Shares will be returned to the Plan at no cost.

				
	
					
						 

					
					
						 

				
	
					
						Arbitration

					
					
						 

					
					
						You and the Company agree that any and all disputes arising out of the terms of the Notice of Grant, the Plan or this Agreement or their interpretation shall be subject to binding arbitration in Santa Clara County, California before the American Arbitration Association under its California Employment Dispute Resolution Rules, or by a judge to be mutually agreed upon. You and the Company agree that the prevailing party in any arbitration shall be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. You and the Company agree that the prevailing party in any arbitration shall be awarded reasonable attorney’s fees and costs.

				
	
					
						 

					
					
						 

				
	
					
						Payments after Death

					
					
						 

					
					
						Any distribution or delivery to be made to you under this Agreement will, if you are then deceased, be made to the administrator or executor of your estate. Any such administrator or executor must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.

				
	
					
						 

					
					
						 

				
	
					
						Stockholder Rights

					
					
						 

					
					
						Neither you nor any person claiming under or through you will have any of the rights or privileges of a stockholder of the Company in respect of any Shares deliverable hereunder unless and until certificates representing such Shares will have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to you or your broker.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						No Effect on Employment

					
					
						 

					
					
						Your employment with the Company and its Subsidiaries is on an at-will basis only. Accordingly, the terms of your employment with the Company and its Subsidiaries will be determined from time to time by the Company or the Subsidiary employing you (as the case may be), and the Company or the Subsidiary will have the right, which is hereby expressly reserved, to terminate or change the terms of your employment at any time for any reason whatsoever, with or without good cause or notice.

				
	
					
						 

					
					
						 

				
	
					
						Notices

					
					
						 

					
					
						Any notice to be given to the Company under the terms of this Agreement will be addressed to the Company at 440 East Middlefield Road, Mountain View, California 94043, Attn: Stock Administration, or at such other address as the Company may hereafter designate in writing or electronically.

				
	
					
						 

					
					
						 

				
	
					
						Grant is Not Transferable

					
					
						 

					
					
						Except to the limited extent provided in paragraph, this grant and the rights and privileges conferred hereby will not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and will not be subject to sale under execution, attachment or similar process. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this grant, or any right or privilege conferred hereby, or upon any attempted sale under any execution, attachment or similar process, this grant and the rights and privileges conferred hereby immediately will become null and void. You may, however, dispose of this award in your will or through a beneficiary designation.

				
	
					
						 

					
					
						 

				
	
					
						Binding Agreement

					
					
						 

					
					
						Subject to the limitation on the transferability of this grant contained herein, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

				
	
					
						 

					
					
						 

				
	
					
						Additional Conditions to Issuance of Stock

					
					
						 

					
					
						If at any time the Company will determine, in its discretion, that the listing, registration or qualification of the Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to you (or your estate), such issuance will not occur unless and until such listing, registration, qualification, consent or approval will have been effected or obtained free of any conditions not acceptable to the Company. The Company will make all reasonable efforts to meet the requirements of any such state or federal law or securities exchange and to obtain any such consent or approval of any such governmental authority.

				
	
					
						 

					
					
						 

					
					
						 

				

		 

 

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Resale Restrictions

					
					
						 

					
					
						You agree not to sell any RSU Shares at a time when applicable laws, Company policies or an agreement between the Company and its underwriters prohibit a sale. This restriction will apply as long as your Service continues and for such period of time after the termination of your Service as the Company may specify.

				
	
					
						 

					
					
						 

				
	
					
						Applicable Law

					
					
						 

					
					
						This Agreement will be interpreted and enforced under the laws of the State of California, without regard to its choice-of-law provisions.

				
	
					
						 

					
					
						 

				
	
					
						The Plan and Other Agreements

					
					
						 

					
					
						The text of the Plan is incorporated in this Agreement by reference. This Agreement and the Notice of Grant are subject to all terms and provisions of the Plan. In the event of a conflict between one or more provisions of this Agreement or the Notice of Grant and one or more provisions of the Plan, the provisions of the Plan will govern.

					
						This Agreement, the Notice of Grant, any duly authorized written agreement between you and the Company and the Plan constitute the entire understanding between you and the Company regarding this award. Any prior agreements, commitments or negotiations concerning this award are superseded. This Agreement may be amended only by another written agreement between the parties.

				
	
					
						 

					
					
						 

				
	
					
						Administrator Authority

					
					
						 

					
					
						The Administrator will have the power to interpret the Plan, the Notice of Grant and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any RSUs have vested). All actions taken and all interpretations and determinations made by the Administrator in good faith will be final and binding upon you, the Company and all other interested persons. No member of the Administrator will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, the Notice of Grant or this Agreement.

				

		 

 

		
			BY SIGNING THE  NOTICE OF  GRANT,  YOU AGREE TO ALL OF THE TERMS AND 
		

		
			CONDITIONS DESCRIBED ABOVE AND IN THE  PLAN.

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