Document:

Prepared by R.R. Donnelley Financial -- 2005 Stock Plan of the Registrant

 Exhibit 10.4 
 EHEALTH, INC. 
 2005 STOCK
PLAN 
 ADOPTED ON JUNE 8, 2005 AND 
 AMENDED AND RESTATED ON NOVEMBER 2, 2005, AND
DECEMBER 14, 2005 

 TABLE OF CONTENTS 
  

			
	 	  	Page No.
	 SECTION 1. ESTABLISHMENT AND PURPOSE.
	  	1
		
	 SECTION 2. ADMINISTRATION.
	  	1
		
	 (a) Committees of the Board of Directors.
	  	1
	 (b) Authority of the Board of Directors.
	  	1
		
	 SECTION 3. ELIGIBILITY.
	  	1
		
	 (a) General Rule.
	  	1
	 (b) Ten-Percent Stockholders.
	  	1
		
	 SECTION 4. STOCK SUBJECT TO PLAN.
	  	2
		
	 (a) Basic Limitation.
	  	2
	 (b) Additional Shares.
	  	2
		
	 SECTION 5. TERMS AND CONDITIONS OF AWARDS OR SALES.
	  	2
		
	 (a) Stock Purchase Agreement.
	  	2
	 (b) Duration of Offers and Nontransferability of Rights.
	  	2
	 (c) Purchase Price.
	  	2
	 (d) Withholding Taxes.
	  	3
	 (e) Restrictions on Transfer of Shares and Minimum Vesting.
	  	3
	 (f) Accelerated Vesting
	  	3
		
	 SECTION 6. TERMS AND CONDITIONS OF OPTIONS.
	  	3
		
	 (a) Stock Option Agreement.
	  	3
	 (b) Number of Shares.
	  	3
	 (c) Exercise Price.
	  	3
	 (d) Withholding Taxes.
	  	4
	 (e) Exercisability.
	  	4
	 (f) Accelerated Exercisability
	  	4
	 (g) Basic Term.
	  	4
	 (h) Nontransferability.
	  	4
	 (i) Termination of Service (Except by Death).
	  	4
	 (j) Leaves of Absence.
	  	5
	 (k) Death of Optionee.
	  	5
	 (l) No Rights as a Stockholder.
	  	5
	 (m) Modification, Extension and Assumption of Options.
	  	6
	 (n) Restrictions on Transfer of Shares and Minimum Vesting.
	  	6
	 (o) Accelerated Vesting
	  	6

  

 i 

			
	 SECTION 7. PAYMENT FOR SHARES.
	  	6
		
	 (a) General Rule.
	  	6
	 (b) Surrender of Stock.
	  	6
	 (c) Services Rendered.
	  	7
	 (d) Promissory Note.
	  	7
	 (e) Exercise/Sale.
	  	7
	 (f) Exercise/Pledge.
	  	7
		
	 SECTION 8. ADJUSTMENT OF SHARES.
	  	7
		
	 (a) General.
	  	7
	 (b) Mergers and Consolidations.
	  	7
	 (c) Reservation of Rights.
	  	8
		
	 SECTION 9. SECURITIES LAWS REQUIREMENTS.
	  	8
		
	 (a) General
	  	8
	 (b) Financial Reports.
	  	8
		
	 SECTION 10. NO RETENTION RIGHTS.
	  	8
		
	 SECTION 11. DURATION AND AMENDMENTS.
	  	9
		
	 (a) Term of the Plan.
	  	9
	 (b) Right to Amend or Terminate the Plan.
	  	9
	 (c) Effect of Amendment or Termination.
	  	9
		
	 SECTION 12. DEFINITIONS.
	  	9

  

 ii 

 EHEALTH, INC. 2005 STOCK
PLAN 
 SECTION 1. ESTABLISHMENT AND PURPOSE. 
 The purpose of the Plan is to offer selected individuals an opportunity to acquire a proprietary interest in the success of the Company, or to increase
such interest, by purchasing Shares of the Company’s Stock. The Plan provides both for the direct award or sale of Shares and for the grant of Options to purchase Shares. Options granted under the Plan may include Nonstatutory Options as well
as ISOs intended to qualify under Section 422 of the Code. 
 Capitalized terms are defined in Section 12. 
 SECTION 2. ADMINISTRATION. 
 (a) Committees of the
Board of Directors. The Plan may be administered by one or more Committees. Each Committee shall consist of one or more members of the Board of Directors who have been appointed by the Board of Directors. Each Committee shall have such authority
and be responsible for such functions as the Board of Directors has assigned to it. If no Committee has been appointed, the entire Board of Directors shall administer the Plan. Any reference to the Board of Directors in the Plan shall be construed
as a reference to the Committee (if any) to whom the Board of Directors has assigned a particular function. 
 (b) Authority of the Board
of Directors. Subject to the provisions of the Plan, the Board of Directors shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan. All decisions, interpretations and other
actions of the Board of Directors shall be final and binding on all Purchasers, all Optionees and all persons deriving their rights from a Purchaser or Optionee. 
 SECTION 3. ELIGIBILITY. 
 (a) General Rule. Only Employees, Outside Directors and Consultants shall be eligible for
the grant of Options or the direct award or sale of Shares. Only Employees shall be eligible for the grant of ISOs. 
 (b) Ten-Percent
Stockholders. An individual who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries shall not be eligible for designation as an Optionee or Purchaser
unless (i) the Exercise Price is at least 110% of the Fair Market Value of a Share on the date of grant, (ii) the Purchase Price (if any) is at least 100% of the Fair Market Value of a Share and (iii) in the case of an ISO, such ISO
by its terms is not exercisable after the expiration of five years from the date of grant. For purposes of this Subsection (b), in determining stock ownership, the attribution rules of Section 424(d) of the Code shall be applied.

 SECTION 4. STOCK SUBJECT TO PLAN. 
 (a) Basic Limitation. Shares offered under the Plan may be authorized but unissued Shares or treasury Shares. The aggregate number of Shares that may be issued under the Plan (upon exercise of Options or other
rights to acquire Shares) shall not exceed 2,385,645,1 subject to Subsection (b) below and Section 8(a).
All of these Shares may be issued upon the exercise of ISOs. The number of Shares that are subject to Options or other rights outstanding at any time under the Plan shall not exceed the number of Shares that then remain available for issuance under
the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. 
 (b) Additional Shares. In the event that any outstanding Option or other right under this Plan or the 1998 Stock Plan for any reason expires or is canceled or otherwise terminated, the Shares allocable to the
unexercised portion of such Option or other right shall be added to the number of Shares then available for issuance under the Plan. In the event that Shares issued under the Plan or the 1998 Stock Plan are reacquired by the Company, such Shares
shall be added to the number of Shares then available for issuance under the Plan. 
 SECTION 5. TERMS AND CONDITIONS OF AWARDS OR SALES. 

(a) Stock Purchase Agreement. Each award or sale of Shares under the Plan (other than upon exercise of an Option) shall be evidenced by a Stock
Purchase Agreement between the Purchaser and the Company. Such award or sale shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which
the Board of Directors deems appropriate for inclusion in a Stock Purchase Agreement. The provisions of the various Stock Purchase Agreements entered into under the Plan need not be identical. 
 (b) Duration of Offers and Nontransferability of Rights. Any right to acquire Shares under the Plan (other than an Option) shall automatically
expire if not exercised by the Purchaser within 30 days after the grant of such right was communicated to the Purchaser by the Company. Such right shall not be transferable and shall be exercisable only by the Purchaser to whom such right was
granted. 
 (c) Purchase Price. The Purchase Price of Shares to be offered under the Plan shall not be less than 85% of the Fair
Market Value of such Shares, and a higher percentage may be required by Section 3(b). Subject to the preceding sentence, the Purchase Price shall be determined by the Board of Directors at its sole discretion. The Purchase Price shall be
payable in a form described in Section 7. 

	1	Reflects 500,000-share increase approved by the Board of Directors on November 2, 2005; and 1,000,000-share increase approved by the Board of Directors on
December 14, 2005. 

  

 2 

 (d) Withholding Taxes. As a condition to the purchase of Shares, the Purchaser shall make such
arrangements as the Board of Directors may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such purchase. 
 (e) Restrictions on Transfer of Shares and Minimum Vesting. Any Shares awarded or sold under the Plan shall be subject to such special forfeiture
conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Board of Directors may determine. Such restrictions shall be set forth in the applicable Stock Purchase Agreement and shall apply in addition to any
restrictions that may apply to holders of Shares generally. In the case of a Purchaser who is not an officer of the Company, an Outside Director or a Consultant, any right to repurchase the Purchaser’s Shares at the original Purchase Price (if
any) upon termination of the Purchaser’s Service shall lapse at least as rapidly as 20% per year over the five-year period commencing on the date of the award or sale of the Shares. Any such right may be exercised only within 90 days after
the termination of the Purchaser’s Service for cash or for cancellation of indebtedness incurred in purchasing the Shares. 
 (f)
Accelerated Vesting. Unless the applicable Stock Purchase Agreement provides otherwise, no vesting shall be accelerated in the event the Company is subject to a Change in Control before the Purchaser’s Service terminates. Any right to
repurchase a Purchaser’s Shares at the original Purchase Price (if any) upon termination of the Purchaser’s Service shall remain in force. 
 SECTION 6. TERMS AND CONDITIONS OF OPTIONS. 
 (a) Stock Option Agreement. Each grant of an Option under the Plan shall
be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the
Plan and which the Board of Directors deems appropriate for inclusion in a Stock Option Agreement. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. 
 (b) Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the
adjustment of such number in accordance with Section 8. The Stock Option Agreement shall also specify whether the Option is an ISO or a Nonstatutory Option. 
 (c) Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, and a higher
percentage may be required by Section 3(b). The Exercise Price of a Nonstatutory Option shall not be less than 85% of the Fair Market Value of a Share on the date of grant, and a higher percentage may be 
  

 3 

 required by Section 3(b). Subject to the preceding two sentences, the Exercise Price under any
Option shall be determined by the Board of Directors at its sole discretion. The Exercise Price shall be payable in a form described in Section 7. 
 (d) Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Board of Directors may require for the satisfaction of any federal, state, local or foreign
withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make such arrangements as the Board of Directors may require for the satisfaction of any federal, state, local or foreign withholding tax
obligations that may arise in connection with the disposition of Shares acquired by exercising an Option. 
 (e) Exercisability. Each
Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. In the case of an Optionee who is not an officer of the Company, an Outside Director or a Consultant, an Option shall become
exercisable at least as rapidly as 20% per year over the five-year period commencing on the date of grant. Subject to the preceding sentence, the exercisability provisions of any Stock Option Agreement shall be determined by the Board of
Directors at its sole discretion. 
 (f) Accelerated Exercisability. Unless the applicable Stock Option Agreement provides otherwise,
there shall be no acceleration of exercisability. 
 (g) Basic Term. The Stock Option Agreement shall specify the term of the Option.
The term shall not exceed 10 years from the date of grant, and a shorter term may be required by Section 3(b). Subject to the preceding sentence, the Board of Directors at its sole discretion shall determine when an Option is to expire.

 (h) Nontransferability. No Option shall be transferable by the Optionee other than by beneficiary designation, will or the laws of
descent and distribution. An Option may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or legal representative. No Option or interest therein may be transferred, assigned, pledged or
hypothecated by the Optionee during the Optionee’s lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process. 
 (i) Termination of Service (Except by Death). If an Optionee’s Service terminates for any reason other than the Optionee’s death, then
the Optionee’s Options shall expire on the earliest of the following occasions: 
 (i) The expiration date determined
pursuant to Subsection (g) above; 
 (ii) The date three months after the termination of the Optionee’s Service for
any reason other than Disability, or such later date as the Board of Directors may determine; or 
  

 4 

 (iii) The date six months after the termination of the Optionee’s Service by reason
of Disability, or such later date as the Board of Directors may determine. 
 The Optionee may exercise all or part of the Optionee’s Options at any
time before the expiration of such Options under the preceding sentence, but only to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable as a result of the termination) and the
underlying Shares had vested before the Optionee’s Service terminated (or vested as a result of the termination). The balance of such Options shall lapse when the Optionee’s Service terminates. In the event that the Optionee dies after the
termination of the Optionee’s Service but before the expiration of the Optionee’s Options, all or part of such Options may be exercised (prior to expiration) by the executors or administrators of the Optionee’s estate or by any person
who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable as a
result of the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested as a result of the termination). 
 (j) Leaves of Absence. For purposes of Subsection (i) above, Service shall be deemed to continue while the Optionee is on a bona fide leave of absence, if such leave was approved by the Company in writing
and if continued crediting of Service for this purpose is expressly required by the terms of such leave or by applicable law (as determined by the Company). 
 (k) Death of Optionee. If an Optionee dies while the Optionee is in Service, then the Optionee’s Options shall expire on the earlier of the following dates: 
 (i) The expiration date determined pursuant to Subsection (g) above; or 
 (ii) The date 12 months after the Optionee’s death. 
 All or part of the Optionee’s Options may be exercised at any time before the expiration of such Options under the preceding sentence by the executors or administrators of the Optionee’s estate or by any
person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s death or became exercisable as a result of
the death. The balance of such Options shall lapse when the Optionee dies. 
 (l) No Rights as a Stockholder. An Optionee, or a
transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by the Optionee’s Option until such person becomes entitled to receive such Shares by filing a notice of exercise and paying the Exercise Price
pursuant to the terms of such Option. 
  

 5 

 (m) Modification, Extension and Assumption of Options. Within the limitations of the Plan, the
Board of Directors may modify, extend or assume outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Company or another issuer) in return for the grant of new Options for the same or a different number of
Shares and at the same or a different Exercise Price. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, impair the Optionee’s rights or increase the Optionee’s obligations under such
Option. 
 (n) Restrictions on Transfer of Shares and Minimum Vesting. Any Shares issued upon exercise of an Option shall be subject
to such special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Board of Directors may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall
apply in addition to any restrictions that may apply to holders of Shares generally. In the case of an Optionee who is not an officer of the Company, an Outside Director or a Consultant: 
 (i) Any right to repurchase the Optionee’s Shares at the original Exercise Price upon termination of the Optionee’s Service
shall lapse at least as rapidly as 20% per year over the five-year period commencing on the date of the option grant; 
 (ii) Any such right may be exercised only for cash or for cancellation of indebtedness incurred in purchasing the Shares; and 
 (iii) Any such right may be exercised only within 90 days after the later of (A) the termination of the Optionee’s Service or (B) the date of the option exercise. 
 (o) Accelerated Vesting. Unless the applicable Stock Option Agreement provides otherwise, no vesting shall be accelerated in the event the Company
is subject to a Change in Control before the Optionee’s Service terminates. Any right to repurchase an Optionee’s Shares at the original Exercise Price (if any) upon termination of the Optionee’s Service shall remain in force.

 SECTION 7. PAYMENT FOR SHARES. 
 (a)
General Rule. The entire Purchase Price or Exercise Price of Shares issued under the Plan shall be payable in cash or cash equivalents at the time when such Shares are purchased, except as otherwise provided in this Section 7.

 (b) Surrender of Stock. To the extent that a Stock Option Agreement so provides, all or any part of the Exercise Price may be paid
by surrendering, or attesting to the ownership of, Shares that are already owned by the Optionee. Such Shares shall be surrendered to the Company in good form for transfer and shall be valued at their Fair Market Value on the date when the Option is
exercised. The Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to recognize compensation expense (or additional compensation expense) with respect to the
Option for financial reporting purposes. 
  

 6 

 (c) Services Rendered. At the discretion of the Board of Directors, Shares may be awarded under
the Plan in consideration of services rendered to the Company, a Parent or a Subsidiary prior to the award. 
 (d) Promissory Note. To
the extent that a Stock Option Agreement or Stock Purchase Agreement so provides, all or a portion of the Exercise Price or Purchase Price (as the case may be) of Shares issued under the Plan may be paid with a full-recourse promissory note.
However, the par value of the Shares, if newly issued, shall be paid in cash or cash equivalents. The Shares shall be pledged as security for payment of the principal amount of the promissory note and interest thereon. The interest rate payable
under the terms of the promissory note shall not be less than the minimum rate (if any) required to avoid the imputation of additional interest under the Code. Subject to the foregoing, the Board of Directors (at its sole discretion) shall specify
the term, interest rate, amortization requirements (if any) and other provisions of such note. 
 (e) Exercise/Sale. To the extent
that a Stock Option Agreement so provides, and if Stock is publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell
Shares and to deliver all or part of the sales proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes. 
 (f) Exercise/Pledge. To the extent that a Stock Option Agreement so provides, and if Stock is publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the Company) of an irrevocable direction to
pledge Shares to a securities broker or lender approved by the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes. 
 SECTION 8. ADJUSTMENT OF SHARES. 
 (a) General.
In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of an extraordinary dividend payable in a form other than Shares in an amount that has a material effect on the Fair Market Value of
the Stock, a combination or consolidation of the outstanding Stock into a lesser number of Shares, a recapitalization, a spin-off, a reclassification or a similar occurrence, the Board of Directors shall make appropriate adjustments in one or more
of (i) the number of Shares available for future grants under Section 4, (ii) the number of Shares covered by each outstanding Option or (iii) the Exercise Price under each outstanding Option. 
 (b) Mergers and Consolidations. In the event that the Company is a party to a merger or consolidation, outstanding Options shall be subject to the
agreement of merger or consolidation. Such agreement, without the Optionees’ consent, may provide for: 
 (i) The
continuation of such outstanding Options by the Company (if the Company is the surviving corporation); 
  

 7 

 (ii) The assumption of the Plan and such outstanding Options by the surviving corporation
or its parent; 
 (iii) The substitution by the surviving corporation or its parent of options with substantially the same
terms for such outstanding Options; or 
 (iv) The cancellation of such outstanding Options without payment of any
consideration. 
 (c) Reservation of Rights. Except as provided in this Section 8, an Optionee or Purchaser shall have no rights
by reason of (i) any subdivision or consolidation of shares of stock of any class, (ii) the payment of any dividend or (iii) any other increase or decrease in the number of shares of stock of any class. Any issuance by the Company of
shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option. The grant of
an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate,
sell or transfer all or any part of its business or assets. 
 SECTION 9. SECURITIES LAW REQUIREMENTS. 
 (a) General. Shares shall not be issued under the Plan unless the issuance and delivery of such Shares comply with (or are exempt from) all
applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other
securities market on which the Company’s securities may then be traded. 
 (b) Financial Reports. The Company each year shall
furnish to Optionees, Purchasers and stockholders who have received Stock under the Plan its balance sheet and income statement, unless such Optionees, Purchasers or stockholders are key Employees whose duties with the Company assure them access to
equivalent information. Such balance sheet and income statement need not be audited. 
 SECTION 10. NO RETENTION RIGHTS. 
 Nothing in the Plan or in any right or Option granted under the Plan shall confer upon the Purchaser or Optionee any right to continue in Service for any
period of specific duration or interfere with or otherwise restrict in any way the rights of the 
  

 8 

 Company (or any Parent or Subsidiary employing or retaining the Purchaser or Optionee) or of the Purchaser or Optionee,
which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause. 
 SECTION 11.
DURATION AND AMENDMENTS. 
 (a) Term of the Plan. The Plan, as set forth herein, shall become effective on the date of its adoption
by the Board of Directors, subject to the approval of the Company’s stockholders. In the event that the stockholders fail to approve the Plan within 12 months after its adoption by the Board of Directors, any grants of Options or sales or
awards of Shares that have already occurred shall be rescinded, and no additional grants, sales or awards shall be made thereafter under the Plan. The Plan shall terminate automatically 10 years after its adoption by the Board of Directors and
may be terminated on any earlier date pursuant to Subsection (b) below. 
 (b) Right to Amend or Terminate the Plan. The Board of
Directors may amend, suspend or terminate the Plan at any time and for any reason; provided, however, that any amendment of the Plan which increases the number of Shares available for issuance under the Plan (except as provided in Section 8),
or which materially changes the class of persons who are eligible for the grant of ISOs, shall be subject to the approval of the Company’s stockholders. Stockholder approval shall not be required for any other amendment of the Plan. 

(c) Effect of Amendment or Termination. No Shares shall be issued or sold under the Plan after the termination thereof, except upon exercise of
an Option granted prior to such termination. The termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Option previously granted under the Plan. 
 SECTION 12. DEFINITIONS. 
 (a) “Board of
Directors” shall mean the Board of Directors of the Company, as constituted from time to time. 
 (b) “Change in
Control” shall mean: 
 (i) The consummation of a merger or consolidation of the Company with or into another entity
or any other corporate reorganization, if persons who were not shareholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more
of the voting power of the outstanding securities of each of (A) the continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity; or 
  

 9 

 (ii) The sale, transfer or other disposition of all or substantially all of the
Company’s assets. 
 A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s
incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
 (c) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 (d) “Committee” shall mean a committee of the Board of Directors, as described in Section 2(a). 
 (e) “Company” shall mean eHealth, Inc., a Delaware corporation. 
 (f) “Consultant” shall mean a person who performs bona fide services for the Company, a Parent or a Subsidiary as a consultant or
advisor, excluding Employees and Outside Directors. 
 (g) “Disability” shall mean that the Optionee is unable to engage in
any substantial gainful activity by reason of any medically determinable physical or mental impairment. 
 (h) “Employee”
shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary. 
 (i) “Exercise Price”
shall mean the amount for which one Share may be purchased upon exercise of an Option, as specified by the Board of Directors in the applicable Stock Option Agreement. 
 (j) “Fair Market Value” shall mean the fair market value of a Share, as determined by the Board of Directors in good faith. Such determination shall be conclusive and binding on all persons.

 (k) “ISO” shall mean an employee incentive stock option described in Section 422(b) of the Code. 
 (l) “Nonstatutory Option” shall mean a stock option not described in Sections 422(b) or 423(b) of the Code. 
 (m) “Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 
 (n) “Optionee” shall mean an individual who holds an Option. 
 (o) “Outside Director” shall mean a member of the Board of Directors who is not an Employee. 
  

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 (p) “Parent” shall mean any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that
attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date. 
 (q)
“Plan” shall mean this eHealth, Inc. 2005 Stock Plan. 
 (r) “Purchase Price” shall mean the consideration
for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Board of Directors. 
 (s)
“Purchaser” shall mean an individual to whom the Board of Directors has offered the right to acquire Shares under the Plan (other than upon exercise of an Option). 
 (t) “Service” shall mean service as an Employee, Outside Director or Consultant. 
 (u) “Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if applicable). 
 (v) “Stock” shall mean the Common Stock of the Company, with a par value of $0.0001 per Share. 
 (w) “Stock Option Agreement” shall mean the agreement between the Company and an Optionee which contains the terms, conditions and
restrictions pertaining to the Optionee’s Option. 
 (x) “Stock Purchase Agreement” shall mean the agreement between
the Company and a Purchaser who acquires Shares under the Plan which contains the terms, conditions and restrictions pertaining to the acquisition of such Shares. 
 (y) “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the
unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the
Plan shall be considered a Subsidiary commencing as of such date. 
  

 11Prepared by R.R. Donnelley Financial -- 2006 Equity Inventive Plan of the Registrant

Table of Contents

 Exhibit 10.5 
  
 EHEALTH, INC. 
 2006 EQUITY INCENTIVE PLAN 
 (AS
ADOPTED APRIL 17, 2006) 

Table of Contents

 
TABLE OF CONTENTS 
 Page 
  

			
	 
ARTICLE 1.    INTRODUCTION
	  	1
		
	 
ARTICLE 2.    ADMINISTRATION
	  	1
	 
2.1 Administrator
	  	1
	 
2.2 Administrator Responsibilities
	  	1
	 
2.3 Committee for Non-Officer Grants
	  	1
		
	 
ARTICLE 3.    SHARES AVAILABLE FOR GRANTS
	  	1
	 
3.1 Basic Limitation
	  	1
	 
3.2 Annual Increase in Shares
	  	2
	 
3.3 Shares Returned to Reserve
	  	2
	 
3.4 Dividend Equivalents
	  	2
		
	 
ARTICLE 4.    ELIGIBILITY
	  	2
	 
4.1 Incentive Stock Options
	  	2
	 
4.2 Other Grants
	  	2
		
	 
ARTICLE 5.    OPTIONS
	  	2
	 
5.1 Stock Option Agreement
	  	2
	 
5.2 Number of Shares
	  	3
	 
5.3 Exercise Price
	  	3
	 
5.4 Exercisability and Term
	  	3
	 
5.5 Effect of Change in Control
	  	3
	 
5.6 Modification or Assumption of Options
	  	3
	 
5.7 Buyout Provisions
	  	3
		
	 
ARTICLE 6.    PAYMENT FOR OPTION SHARES
	  	4
	 
6.1 General Rule
	  	4
	 
6.2 Surrender of Stock
	  	4
	 
6.3 Exercise/Sale
	  	4
	 
6.4 Promissory Note
	  	4
	 
6.5 Other Forms of Payment
	  	4
		
	 
ARTICLE 7.    AUTOMATIC OPTION GRANTS TO OUTSIDE DIRECTORS
	  	4
	 
7.1 Initial Grants
	  	4
	 
7.2 Annual Grants
	  	4
	 
7.3 Accelerated Exercisability
	  	5
	 
7.4 Exercise Price
	  	5
	 
7.5 Term
	  	5
	 
7.6 Affiliates of Outside Directors
	  	5
	 
7.7 Amendments
	  	5

  

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ARTICLE 8.    STOCK APPRECIATION RIGHTS
	  	5
	 
8.1 SAR Agreement
	  	5
	 
8.2 Number of Shares
	  	6
	 
8.3 Exercise Price
	  	6
	 
8.4 Exercisability and Term
	  	6
	 
8.5 Effect of Change in Control
	  	6
	 
8.6 Exercise of SARs
	  	6
	 
8.7 Modification or Assumption of SARs
	  	6
		
	 
ARTICLE 9.    RESTRICTED SHARES
	  	7
	 
9.1 Restricted Stock Agreement
	  	7
	 
9.2 Payment for Awards
	  	7
	 
9.3 Vesting Conditions
	  	7
	 
9.4 Voting and Dividend Rights
	  	7
		
	 
ARTICLE 10.    STOCK UNITS
	  	8
	 
10.1 Stock Unit Agreement
	  	8
	 
10.2 Payment for Awards
	  	8
	 
10.3 Vesting Conditions
	  	8
	 
10.4 Voting and Dividend Rights
	  	8
	 
10.5 Form and Time of Settlement of Stock Units
	  	8
	 
10.6 Death of Recipient
	  	9
	 
10.7 Creditors’ Rights
	  	9
		
	 
ARTICLE 11.    ADJUSTMENTS, DISSOLUTION OR LIQUIDATION, REORGANIZATIONS
	  	9
	 
11.1 Adjustments
	  	9
	 
11.2 Dissolution or Liquidation
	  	10
	 
11.3 Reorganizations
	  	10
		
	 
ARTICLE 12.    AWARDS UNDER OTHER PLANS.
	  	11
		
	 
ARTICLE 13.    PAYMENT OF DIRECTOR’S FEES IN SECURITIES
	  	11
	 
13.1 Effective Date
	  	11
	 
13.2 Elections to Receive NSOs, Restricted Shares or Stock Units
	  	11
	 
13.3 Number and Terms of NSOs, Restricted Shares or Stock Units
	  	12
		
	 
ARTICLE 14.    LIMITATION ON RIGHTS
	  	12
	 
14.1 Retention Rights
	  	12
	 
14.2 Stockholders’ Rights
	  	12
	 
14.3 Regulatory Requirements
	  	12
		
	 
ARTICLE 15.    WITHHOLDING TAXES
	  	12
	 
15.1 General
	  	12
	 
15.2 Share Withholding
	  	12
		
	 
ARTICLE 16.    FUTURE OF THE PLAN
	  	13
	 
16.1 Term of the Plan
	  	13

  

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16.2 Amendment or Termination
	  	13
	 
16.3 Stockholder Approval
	  	13
		
	 
ARTICLE 17.    DEFINITIONS
	  	13

  

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 EHEALTH, INC. 
 2006 EQUITY INCENTIVE PLAN 
 
ARTICLE 1.    INTRODUCTION. 
 The Plan was adopted by the Board on April 17,
2006, to be effective as of the effective date of the IPO. The purpose of the Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus
on the Company’s performance, (b) encouraging the attraction and retention of Employees, Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to
stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of Restricted Shares, Stock Units, Options (which may constitute ISOs or NSOs) or SARs. 
 The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware (except its choice-of-law provisions). 
 
ARTICLE 2.    ADMINISTRATION. 
 
2.1 Administrator. The Administrator shall administer the Plan. 
 
2.2 Administrator Responsibilities. The Administrator shall (a) select the Employees, Outside Directors and Consultants who are to receive Awards under the Plan, (b) determine the type, number,
vesting requirements and other features and conditions of such Awards, (c) interpret the Plan and the terms of the Awards, and (d) make all other decisions relating to the operation of the Plan. The Administrator may adopt such rules or
guidelines as it deems appropriate to implement the Plan and amend any Award, subject to the consent of the holder of such Award to the extent required by applicable law. The Administrator’s determinations under the Plan shall be final and
binding on all persons. 
 
2.3 Committee for Non-Officer Grants. The Board may appoint a secondary committee of the Board that may administer the Plan with respect to Employees and Consultants who are not Outside Directors and are
not considered executive officers of the Company under section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and Consultants and may determine all features and conditions of such Awards. Within the limitations of
this Section 2.3, any reference in the Plan to the Administrator shall include such secondary committee. 
 
ARTICLE 3.    SHARES AVAILABLE FOR GRANTS. 
 
3.1 Basic Limitation. Shares of Stock issued pursuant to the Plan may be authorized but unissued shares or treasury shares. The aggregate number of shares of Stock issued under the Plan shall not exceed
(a) 4,000,000 and (b) the additional shares of Stock 

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described in Sections 3.2 and 3.3. The number of shares of Stock that are subject to Awards outstanding at any time under the Plan shall not exceed the
number of shares of Stock that then remain available for issuance under the Plan. The limitations of this Section 3.1 and Section 3.2 shall be subject to adjustment pursuant to Article 11. 
 
3.2 Annual Increase in Shares. As of January 1 of each year, commencing in 2007, the aggregate number of shares of Stock that may be issued under the Plan shall automatically increase by a number
equal to the lowest of (a) 4% of the total number of shares of Stock then outstanding, (b) 3,000,000 shares of Stock or (c) the number determined by the Administrator. 
 
3.3 Shares Returned to Reserve. If Restricted Shares or shares of Stock issued upon the exercise of Options under the Plan are forfeited or repurchased, then such shares of Stock shall again become
available for Awards under the Plan. If Stock Units, Options or SARs under the Plan are forfeited or terminate for any other reason before being exercised or settled, then the corresponding shares of Stock shall again become available for Awards
under the Plan. If Stock Units are settled, then only the number of shares of Stock (if any) actually issued in settlement of such Stock Units shall reduce the number available under Section 3.1 and the balance shall again become available for
Awards under the Plan. If SARs are exercised, then only the number of shares of Stock (if any) actually issued in settlement of such SARs shall reduce the number available under Section 3.1 and the balance shall again become available for
Awards under the Plan. If the Exercise Price (or purchase price) of an Award is paid through the tender of shares of Stock, or if shares of Stock are tendered or withheld to satisfy any Company withholding obligations, the number of shares of Stock
so tendered or withheld shall again be available for issuance pursuant to future Awards under the Plan. 
 
3.4 Dividend Equivalents. Any dividend equivalents paid or credited under the Plan shall not be applied against the number of shares of Stock that may be issued under the Plan, whether or not such
dividend equivalents are converted into Stock Units. 
 
ARTICLE 4.    ELIGIBILITY. 
 
4.1 Incentive Stock Options. Only Employees who are common-law employees of the Company, a Parent or a Subsidiary shall be eligible for the grant of ISOs. In addition, an Employee who owns more than 10%
of the total combined voting power of all classes of outstanding stock of the Company or any of its Parents or Subsidiaries shall not be eligible for the grant of an ISO unless the requirements set forth in section 422(c)(5) of the Code
are satisfied. 
 
4.2 Other Grants. Only Employees, Outside Directors and Consultants shall be eligible for the grant of Restricted Shares, Stock Units, NSOs or SARs. 
 
ARTICLE 5.    OPTIONS. 
 
5.1 Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable
terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The Stock Option Agreement shall specify whether the 

  

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Option is an ISO or an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. Options may be granted
in consideration of a reduction in the Optionee’s other compensation. A Stock Option Agreement may provide that a new Option will be granted automatically to the Optionee when he or she exercises a prior Option and pays the Exercise Price in
the form described in Section 6.2. 
 
5.2 Number of Shares. Each Stock Option Agreement shall specify the number of shares of Stock subject to the Option and shall provide for the adjustment of such number in accordance with Article 11.
Options granted to any Optionee in a single fiscal year of the Company shall not cover more than 500,000 shares of Stock, except that Options granted to a new Employee in the fiscal year of the Company in which his or her Service as an Employee
first commences shall not cover more than 1,000,000 shares of Stock. The limitations set forth in the preceding sentence shall be subject to adjustment in accordance with Article 11. 
 
5.3 Exercise Price. Each Stock Option Agreement shall specify the Exercise Price; provided that the Exercise Price under an Option shall in no event be less than 100% of the Fair Market Value of a share of
Stock on the date of grant. 
 
5.4 Exercisability and Term. Each Stock Option Agreement shall specify the date or event when all or any installment of the Option is to become exercisable and vested. The Stock Option Agreement shall
also specify the term of the Option; provided that the term of an ISO shall in no event exceed 10 years from the date of grant. A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death,
disability or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service. Options may be awarded in combination with SARs, and such an Award may provide that
the Options will not be exercisable unless the related SARs are forfeited. 
 
5.5 Effect of Change in Control. The Administrator may determine, at the time of granting an Option or thereafter, that such Option shall become vested and exercisable as to all or part of the shares of
Stock subject to such Option upon certain events, such as a Change in Control or certain terminations following a Change in Control. In addition, acceleration of vesting and exercisability may be required under Section 11.3. 
 
5.6 Modification or Assumption of Options. Within the limitations of the Plan, the Administrator may (a) modify, reprice, extend or assume outstanding options, (b) accept the cancellation of
outstanding options (whether granted by the Company or by another issuer) in return for the grant of new Options for the same or a different number of shares and at the same or a different exercise price or (c) accept the cancellation of
outstanding options in return for the grant of new Awards other than Options. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, alter or impair his or her rights or obligations under such Option.

 
5.7 Buyout Provisions. The Administrator may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to
cash out an Option previously granted, in either case at such time and based upon such terms and conditions as the Administrator shall establish. 
  

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ARTICLE 6.    PAYMENT FOR OPTION SHARES. 
 
6.1 General Rule. The entire Exercise Price of shares of Stock issued upon exercise of Options shall be payable in cash or cash equivalents at the time when such shares of Stock are purchased, except
that the Administrator at its sole discretion may accept payment of the Exercise Price in any other form(s) described in this Article 6. However, if the Optionee is an Outside Director or executive officer of the Company, he or she may pay the
Exercise Price in a form other than cash or cash equivalents only to the extent permitted by section 13(k) of the Exchange Act. 
 
6.2 Surrender of Stock. With the Administrator’s consent, all or any part of the Exercise Price may be paid by surrendering, or attesting to the ownership of, shares of Stock that are already owned
by the Optionee. Such shares of Stock shall be valued at their Fair Market Value on the date when the new shares of Stock are purchased under the Plan. 
 
6.3 Exercise/Sale. With the Administrator’s consent, all or any part of the Exercise Price and any withholding taxes may be paid by delivering (on a form prescribed by the Company) an irrevocable
direction to a securities broker approved by the Company to sell all or part of the shares of Stock being purchased under the Plan and to deliver all or part of the sales proceeds to the Company. 
 
6.4 Promissory Note. With the Administrator’s consent, all or any part of the Exercise Price and any withholding taxes may be paid by delivering (on a form prescribed by the Company) a full-recourse
promissory note. 
 
6.5 Other Forms of Payment. With the Administrator’s consent, all or any part of the Exercise Price and any withholding taxes may be paid in any other form that is consistent with applicable laws,
regulations and rules. 
 
ARTICLE 7.    AUTOMATIC OPTION GRANTS TO OUTSIDE DIRECTORS. 
 
7.1 Initial Grants. Except as provided in Section 7.7, each Outside Director who first becomes a member of the Board after the effective date of the IPO shall receive a one-time grant of an NSO
covering 50,000 shares of Stock. Such NSO shall be granted on the date when such Outside Director first joins the Board and shall become exercisable as follows: upon the completion of 12 months of service with the Company following the Outside
Director’s first date of Board service, the Outside Director may exercise the option with respect to 25% of the shares of Stock, and upon the completion of each of the next 36 months of Board service, the Outside Director may exercise the
option with respect to an additional 1/48th of the shares of Stock subject to the option. An Outside Director who
previously was an Employee shall not receive a grant under this Section 7.1. 
 
7.2 Annual Grants. Except as provided in Section 7.7, upon the conclusion of each regular annual meeting of the Company’s stockholders held in the year 2007 or thereafter, each Outside Director
who will continue serving as a member of the Board thereafter shall receive an NSO covering 12,500 shares of Stock, except that such NSO shall not be granted in the calendar year in which the same Outside Director received the NSO described in
Section 7.1. NSOs granted under this Section 7.2 shall become exercisable as follows: upon the 

  

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completion of 12 months of service with the Company following the date of grant of the NSO, the Outside Director may exercise the option with respect to 25%
of the shares of Stock, and upon the completion of each of the next 36 months of Board service, the Outside Director may exercise the option with respect to an additional 1/48th of the shares of Stock subject to the option. An Outside Director who previously was an Employee shall be eligible to receive grants under this
Section 7.2. 
 
7.3 Accelerated Exercisability. Except as provided in Section 7.7, all NSOs granted to an Outside Director under this Article 7 shall also become exercisable in full in the event that the
Company is subject to a Change in Control before such Outside Director’s Service terminates. Acceleration of exercisability may also be required by Section 11.3. 
 
7.4 Exercise Price. Except as provided in Section 7.7, the Exercise Price under all NSOs granted to an Outside Director under this Article 7 shall be equal to 100% of the Fair Market Value of a
share of Stock on the date of grant, payable in one of the forms described in Sections 6.1, 6.2 and 6.3. 
 
7.5 Term. Except as provided in Section 7.7, all NSOs granted to an Outside Director under this Article 7 shall terminate on the earlier of (a) the date 10 years after the date of grant or
(b) a date following the termination of such Outside Director’s Service, as described herein. If an Outside Director’s Service terminates for any reason except death or Total and Permanent Disability, then the Outside Director’s
NSOs shall expire at the close of business at Company headquarters on the date three months after the Outside Director’s Service termination date. If an Outside Director dies before his or her Service terminates, then the Outside
Director’s NSOs shall expire at the close of business at Company headquarters on the date 12 months after the date of death. If an Outside Director’s Service terminates because of the Outside Director’s Total and Permanent Disability,
then the Outside Director’s NSOs shall expire at the close of business at Company headquarters on the date 12 months after the Outside Director’s Service termination date. 
 
7.6 Affiliates of Outside Directors. The Administrator may provide that the NSOs that otherwise would be granted to an Outside Director under this Article 7 shall instead be granted to an affiliate
of such Outside Director. Such affiliate shall then be deemed to be an Outside Director for purposes of the Plan, provided that the Service-related vesting and termination provisions pertaining to the NSOs shall be applied with regard to the Service
of the Outside Director. 
 
7.7 Amendments. Notwithstanding the foregoing, the Administrator in its discretion may change the number of shares of Stock subject to the NSOs described in Sections 7.1 and 7.2 above, may
change the terms of such NSOs, as set forth in Sections 7.1 through 7.6, and may grant substitute Awards having an equivalent value to such NSOs, as determined by the Administrator on the date of grant. 
 
ARTICLE 8.    STOCK APPRECIATION RIGHTS. 
 
8.1 SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be
subject to any other terms that are not inconsistent with 

  

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the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical. SARs may be granted in consideration of a reduction
in the Optionee’s other compensation. 
 
8.2 Number of Shares. Each SAR Agreement shall specify the number of shares of Stock to which the SAR pertains and shall provide for the adjustment of such number in accordance with Article 11. SARs
granted to any Optionee in a single fiscal year shall in no event pertain to more than 500,000 shares of Stock, except that SARs granted to a new Employee in the fiscal year of the Company in which his or her Service as an Employee first commences
shall not pertain to more than 1,000,000 shares of Stock. The limitations set forth in the preceding sentence shall be subject to adjustment in accordance with Article 11. 
 
8.3 Exercise Price. Each SAR Agreement shall specify the Exercise Price; provided that the Exercise Price under an SAR shall in no event be less than 100% of the Fair Market Value of a share of Stock on
the date of grant. 
 
8.4 Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR Agreement shall also specify the term of the SAR. A SAR
Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the
Optionee’s Service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. A SAR may be included with an ISO only at the time of grant but
may be included with an NSO at the time of grant or thereafter. A SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control. 
 
8.5 Effect of Change in Control. The Administrator may determine, at the time of granting a SAR or thereafter, that such SAR shall become fully exercisable as to all shares of Stock subject to such SAR
upon certain events, such as a Change in Control or certain terminations following a Change in Control. In addition, acceleration of exercisability may be required under Section 11.3. 
 
8.6 Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her death) shall receive from the Company (a) shares of Stock,
(b) cash or (c) a combination of shares of Stock and cash, as the Administrator shall determine. The amount of cash and/or the Fair Market Value of shares of Stock received upon exercise of SARs shall, in the aggregate, not exceed the
amount by which the Fair Market Value (on the date of surrender) of the shares of Stock subject to the SARs exceeds the Exercise Price. If, on the date when a SAR expires, the Exercise Price under such SAR is less than the Fair Market Value on such
date but any portion of such SAR has not been exercised or surrendered, then such SAR shall automatically be deemed to be exercised as of such date with respect to such portion. A SAR Agreement may also provide for an automatic exercise of the SAR
on an earlier date. 
 
8.7 Modification or Assumption of SARs. Within the limitations of the Plan, the Administrator may (a) modify, reprice, extend or assume outstanding SARs, (b) accept 

  

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the cancellation of outstanding SARs (whether granted by the Company or by another issuer) in return for the grant of new SARs for the same or a different
number of shares and at the same or a different exercise price or (c) accept the cancellation of outstanding SARs in return for the grant of new Awards other than SARs. The foregoing notwithstanding, no modification of a SAR shall, without the
consent of the Optionee, alter or impair his or her rights or obligations under such SAR. 
 
ARTICLE 9.    RESTRICTED SHARES. 
 
9.1 Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock Agreement between the recipient and the Company. Such Restricted Shares shall be
subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock Agreements entered into under the Plan need not be identical. Restricted Shares
may be granted in consideration of a reduction in the recipient’s other compensation. 
 
9.2 Payment for Awards. Restricted Shares may be sold or awarded under the Plan for such consideration as the Administrator may determine, including (without limitation) cash, cash equivalents, property,
full-recourse promissory notes, past services and future services. If the Participant is an Outside Director or executive officer of the Company, he or she may pay for Restricted Shares with a promissory note only to the extent permitted by
section 13(k) of the Exchange Act. Within the limitations of the Plan, the Administrator may accept the cancellation of outstanding options or SARs in return for the grant of Restricted Shares. 
 
9.3 Vesting Conditions. Each Award of Restricted Shares may or may not be subject to vesting. Any vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the
Restricted Stock Agreement. The Administrator may include among such conditions the requirement that the performance of the Company or a business unit of the Company for a specified period of one or more fiscal years equal or exceed a target
determined in advance by the Administrator. Such target shall be based on one or more of the criteria set forth in Appendix A. The Administrator shall identify such target not later than the 90th day of such period. In no event shall more than 500,000 Restricted Shares that are subject to performance-based vesting conditions be granted to any
Participant in a single fiscal year of the Company, subject to adjustment in accordance with Article 11. A Restricted Stock Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or
other events. The Administrator may determine, at the time of granting Restricted Shares or thereafter, that all or part of such Restricted Shares shall become vested upon certain events, such as a Change in Control or certain terminations following
a Change in Control. 
 
9.4 Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. A Restricted Stock
Agreement may require that the holders of Restricted Shares invest any cash dividends received in additional Restricted Shares. Any additional Restricted Shares that represent share dividends shall be subject to the same conditions and restrictions
as the Award with respect to which the dividends were paid. 
  

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ARTICLE 10.    STOCK UNITS. 
 
10.1 Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the recipient and the Company. Such Stock Units shall be subject to all applicable
terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock Unit Agreements entered into under the Plan need not be identical. Stock Units may be granted in consideration of a
reduction in the recipient’s other compensation. 
 
10.2 Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award recipients. Within the limitations of the Plan, the
Administrator may accept the cancellation of outstanding options or SARs in return for the grant of Stock Units. 
 
10.3 Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit
Agreement. The Administrator may include among such conditions the requirement that the performance of the Company or a business unit of the Company for a specified period of one or more fiscal years equal or exceed a target determined in advance by
the Administrator. Such target shall be based on one or more of the criteria set forth in Appendix A. The Administrator shall identify such target not later than the 90th day of such period. In no event shall more than 500,000 Stock Units that are subject to performance-based vesting conditions be granted to any Participant in
a single fiscal year of the Company, subject to adjustment in accordance with Article 11. A Stock Unit Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The
Administrator may determine, at the time of granting Stock Units or thereafter, that all or part of such Stock Units shall become vested upon certain events, such as a Change in Control or certain terminations following a Change in Control. In
addition, acceleration of vesting may be required under Section 11.3. 
 
10.4 Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan may, at the Administrator’s
discretion, carry with it a right to dividend equivalents. Such right would entitle the holder to be credited with an amount equal to all cash dividends paid on one share of Stock while the Stock Unit is outstanding, which shall be subject to the
terms of the Stock Unit Agreement. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of shares of Stock, or in a combination of both. Prior to
distribution, any dividend equivalents that are not paid shall be subject to the same conditions and restrictions as the Stock Units to which they attach. 
 
10.5 Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash, (b) shares of Stock or (c) any combination of both, as determined by
the Administrator. The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance factors. Methods of converting Stock Units into cash may include
(without limitation) a method based on the average Fair Market Value of shares of Stock over a series of trading days. Vested Stock Units may be settled in a lump sum or in installments. The 

  

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distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred to any
later date. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Article 11.

 
10.6 Death of Recipient. Any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a Stock
Units Award under the Plan shall designate one or more beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the
Award recipient’s death. If no beneficiary was designated or if no designated beneficiary survives the Award recipient, then any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the
recipient’s estate. 
 
10.7 Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company,
subject to the terms and conditions of the applicable Stock Unit Agreement. 
 
ARTICLE 11.    ADJUSTMENTS, DISSOLUTION OR LIQUIDATION, REORGANIZATIONS. 
 
11.1 Adjustments. In the event of a subdivision of the outstanding shares of Stock, a declaration of a dividend payable in shares of Stock or a combination or consolidation of the outstanding shares of
Stock (by reclassification or otherwise) into a lesser number of shares of Stock, corresponding adjustments shall automatically be made in each of the following: 
 (a) The number of Options, SARs, Restricted Shares and Stock Units available for future Awards under Article 3; 
 (b) The limitations set forth in Sections 5.2, 8.2, 9.3 and 10.3; 
 (c) The number of shares of Stock covered by each outstanding Option and SAR; 
 (d) The Exercise Price under each outstanding Option and SAR; 
 (e) The number of shares of Stock covered by an Option to be granted under Article 7; or 
 (f) The number of Stock Units included in any prior Award that has not yet been settled. 
 In the event of a declaration of an extraordinary dividend payable in a form other than shares of Stock in an amount that has a material effect on the price of shares of
Stock, a recapitalization, a spin-off or a similar occurrence, the Administrator shall make such adjustments as it, in its sole 

  

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discretion, deems appropriate in one or more of the foregoing. Except as provided in this Article 11, a Participant shall have no rights by reason of
any issuance by the Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number
of shares of stock of any class. 
 
11.2 Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company.

 
11.3 Reorganizations. In the event that the Company is a party to a merger or consolidation, all outstanding Awards shall be subject to the agreement of merger or consolidation, which does not have to
provide that all outstanding Awards (or a portion thereof) be treated in an identical manner. Such agreement shall provide for one or more of the following: 
 (a) The continuation of any outstanding Awards by the Company (if the Company is the surviving corporation). 
 (b) The assumption of any outstanding Awards by the surviving corporation or its parent, provided that the assumption of Options or SARs
shall comply with section 424(a) of the Code (whether or not the Options are ISOs). 
 (c) The substitution by the
surviving corporation or its parent of new awards for any outstanding Awards, provided that the substitution of Options or SARs shall comply with section 424(a) of the Code (whether or not the Options are ISOs). 
 (d) Full exercisability of any outstanding Options and SARs and full vesting of the shares of Stock subject to such Options and SARs,
followed by the cancellation of such Options and SARs. The full exercisability of any Options and SARs and full vesting of such shares of Stock may be contingent on the closing of such merger or consolidation. The Optionees shall be able to exercise
such Options and SARs during a period of not less than five full business days preceding the closing date of such merger or consolidation, unless (i) a shorter period is required to permit a timely closing of such merger or consolidation and
(ii) such shorter period still offers the Optionees a reasonable opportunity to exercise such Options and SARs. Any exercise of such Options and SARs during such period may be contingent on the closing of such merger or consolidation.

 (e) The cancellation of any outstanding Options and SARs and a payment to the Optionees equal to the excess of (i) the
Fair Market Value of the shares of Stock subject to such Options and SARs (whether or not such Options and SARs are then exercisable or such shares of Stock are then vested) as of the closing date of such merger or consolidation over (ii) their
Exercise Price. Such 

  

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payment shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market Value equal to the
required amount. Such payment may be made in installments and may be deferred until the date or dates when such Options and SARs would have become exercisable or such shares of Stock would have vested. Such payment may be subject to vesting based on
the Optionee’s continuing Service, provided that the vesting schedule shall not be less favorable to the Optionee than the schedule under which such Options and SARs would have become exercisable or such shares of Stock would have vested. If
the Exercise Price of the shares of Stock subject to such Options and SARs exceeds the Fair Market Value of such shares of Stock, then such Options and SARs may be cancelled without making a payment to the Optionees. For purposes of this
Subsection (e), the Fair Market Value of any security shall be determined without regard to any vesting conditions that may apply to such security. 
 (f) The cancellation of any outstanding Stock Units and a payment to the Participants equal to the Fair Market Value of the shares of Stock subject to such Stock Units (whether or not such Stock Units are then vested)
as of the closing date of such merger or consolidation. Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market Value equal to the required amount. Such payment
may be made in installments and may be deferred until the date or dates when such Stock Units would have vested. Such payment may be subject to vesting based on the Participant’s continuing Service, provided that the vesting schedule shall not
be less favorable to the Participant than the schedule under which such Stock Units would have vested. For purposes of this Subsection (f), the Fair Market Value of any security shall be determined without regard to any vesting conditions that
may apply to such security. 
 
ARTICLE 12.    AWARDS UNDER OTHER PLANS. 
 The Company may grant awards under other
plans or programs. Such awards may be settled in the form of shares of Stock issued under this Plan. Such shares of Stock shall be treated for all purposes under the Plan like shares of Stock issued in settlement of Stock Units and shall, when
issued, reduce the number of shares of Stock available under Article 3. 
 
ARTICLE 13.    PAYMENT OF DIRECTOR’S FEES IN SECURITIES. 
 
13.1 Effective Date. No provision of this Article 13 shall be effective unless and until the Administrator has determined to implement such provision. 
 
13.2 Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside Director may elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash,
NSOs, Restricted Shares or Stock Units, or a combination thereof, as determined by the Administrator. Such NSOs, Restricted Shares and Stock Units shall be issued under the Plan. An election under this Article 13 shall be filed with the Company
on the prescribed form. 
  

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13.3 Number and Terms of NSOs, Restricted Shares or Stock Units. The number of NSOs, Restricted Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that
would otherwise be paid in cash shall be calculated in a manner determined by the Administrator. The Administrator shall also determine the terms of such NSOs, Restricted Shares or Stock Units. 
 
ARTICLE 14.    LIMITATION ON RIGHTS. 
 
14.1 Retention Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain an Employee, Outside Director or Consultant. The Company and its
Parents, Subsidiaries and Affiliates reserve the right to terminate the Service of any Employee, Outside Director or Consultant at any time, with or without cause, subject to applicable laws, the Company’s certificate of incorporation and
by-laws and a written employment agreement (if any). 
 
14.2 Stockholders’ Rights. A Participant shall have no dividend rights, voting rights or other rights as a stockholder with respect to any shares of Stock covered by his or her Award prior to the
time when a stock certificate for such shares of Stock is issued or, if applicable, the time when he or she becomes entitled to receive such shares of Stock by filing any required notice of exercise and paying any required Exercise Price. No
adjustment shall be made for cash dividends or other rights for which the record date is prior to such time, except as expressly provided in the Plan. 
 
14.3 Regulatory Requirements. Any other provision of the Plan notwithstanding, the obligation of the Company to issue shares of Stock under the Plan shall be subject to all applicable laws, rules and
regulations and such approval by any regulatory body as may be required. The Company reserves the right to restrict, in whole or in part, the delivery of shares of Stock pursuant to any Award prior to the satisfaction of all legal requirements
relating to the issuance of such shares of Stock, to their registration, qualification or listing or to an exemption from registration, qualification or listing. 
 
ARTICLE 15.    WITHHOLDING TAXES. 
 
15.1 General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of
any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any shares of Stock or make any cash payment under the Plan until such obligations are satisfied. 
 
15.2 Share Withholding. To the extent that applicable law subjects a Participant to tax withholding obligations, the Administrator may permit such Participant to satisfy all or part of such obligations
by having the Company withhold all or a portion of any shares of Stock that otherwise would be issued to him or her or by surrendering all or a portion of any shares of Stock that he or she previously acquired. Such shares of Stock shall be valued
at their Fair Market Value on the date when they are withheld or surrendered. 
  

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ARTICLE 16.    FUTURE OF THE PLAN. 
 
16.1 Term of the Plan. The Plan, as set forth herein, shall become effective on the effective date of the IPO. The Plan shall remain in effect until the earlier of (a) the date when the Plan is
terminated under Section 16.2 or (b) the 10th anniversary of the date when the Board adopted the Plan.

 
16.2 Amendment or Termination. The Board may, at any time and for any reason, amend or terminate the Plan. No Awards shall be granted under the Plan after the termination thereof. The termination of the
Plan, or any amendment thereof, shall not affect any Award previously granted under the Plan. 
 
16.3 Stockholder Approval. An amendment of the Plan shall be subject to the approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules. 

ARTICLE 17.    DEFINITIONS. 
 17.1 “Administrator” means the
Board or any of its Committees that will be administering the Plan, in accordance with Article 2. 
 17.2 “Affiliate”
means any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not less than 50% of such entity. 
 17.3
“Award” means any award of an Option, a SAR, a Restricted Share or a Stock Unit under the Plan. 
 17.4
“Board” means the Company’s Board of Directors, as constituted from time to time. 
 17.5 “Change in
Control” means: 
 (a) The consummation of a merger or consolidation of the Company with or into another entity or
any other corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of
the voting power of the outstanding securities of each of (i) the continuing or surviving entity and (ii) any direct or indirect parent corporation of such continuing or surviving entity; 
 (b) The sale, transfer or other disposition of all or substantially all of the Company’s assets; 
 (c) A change in the composition of the Board, as a result of which fewer than 50% of the incumbent directors are directors who either:

  

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 (i) Had been directors of the Company on the date 24 months prior to the date of such
change in the composition of the Board (the “Original Directors”); or 
 (ii) Were appointed to the Board, or
nominated for election to the Board, with the affirmative votes of at least a majority of the aggregate of (A) the Original Directors who were in office at the time of their appointment or nomination and (B) the directors whose appointment
or nomination was previously approved in a manner consistent with this Paragraph (ii); or 
 (d) Any transaction as a
result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least 50% of the total voting power represented by the
Company’s then outstanding voting securities. For purposes of this Subsection (d), the term “person” shall have the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a
trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a Parent or Subsidiary and (ii) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same
proportions as their ownership of the common stock of the Company. 
 A transaction shall not constitute a Change in Control if its sole purpose is to change
the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
 17.6 “Code” means the Internal Revenue Code of 1986, as amended. 
 17.7 “Committee” means a committee appointed by the Board that consists of one or more Board members or other individuals
satisfying all applicable laws. 
 17.8 “Company” means eHealth, Inc., a Delaware corporation. 
 17.9 “Consultant” means a consultant or adviser who provides bona fide services to the Company, a Parent, a Subsidiary or an
Affiliate as an independent contractor. 
 17.10 “Employee” means a common-law employee of the Company, a Parent, a
Subsidiary or an Affiliate. 
 17.11 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 17.12 “Exercise Price,” in the case of an Option, means the amount for which one share of Stock may be purchased
upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, means an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of
one share of Stock in determining the amount payable upon exercise of such SAR. 
  

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 17.13 “Fair Market Value” means the market price of shares of Stock, determined
by the Administrator in good faith on such basis as it deems appropriate. Whenever possible, the determination of Fair Market Value by the Administrator shall be based on the prices reported in The Wall Street Journal or as reported directly
to the Company by Nasdaq or a stock exchange. Such determination shall be conclusive and binding on all persons. 
 17.14
“IPO” means the effective date of the registration statement filed by the Company with the Securities and Exchange Commission for its initial offering of Stock to the public. 
 17.15 “ISO” means an incentive stock option described in section 422(b) of the Code. 
 17.16 “NSO” means a stock option not described in sections 422 or 423 of the Code. 
 17.17 “Option” means an ISO or NSO granted under the Plan and entitling the holder to purchase shares of Stock. 
 17.18 “Optionee” means a person or estate who holds an Option or SAR. 
 17.19 “Outside Director” means a member of the Board who is not an Employee. 
 17.20 “Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if
each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date
after the adoption of the Plan shall be considered a Parent commencing as of such date. 
 17.21 “Participant” means
a person or estate who holds an Award. 
 17.22 “Plan” means this eHealth, Inc. 2006 Equity Incentive Plan, as
amended from time to time. 
 17.23 “Restricted Share” means a share of Stock awarded under the Plan. 
 17.24 “Restricted Stock Agreement” means the agreement between the Company and the recipient of a Restricted Share that contains
the terms, conditions and restrictions pertaining to such Restricted Share. 
 17.25 “SAR” means a stock appreciation
right granted under the Plan. 
 17.26 “SAR Agreement” means the agreement between the Company and an Optionee that
contains the terms, conditions and restrictions pertaining to his or her SAR. 
 17.27 “Service” means service as an
Employee, Outside Director or Consultant. 
  

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 17.28 “Stock” means the Common Stock of the Company. 
 17.29 “Stock Option Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and
restrictions pertaining to his or her Option. 
 17.30 “Stock Unit” means a bookkeeping entry representing the
equivalent of one share of Stock, as awarded under the Plan. 
 17.31 “Stock Unit Agreement” means the agreement
between the Company and the recipient of a Stock Unit that contains the terms, conditions and restrictions pertaining to such Stock Unit. 
 17.32 “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain
owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be
considered a Subsidiary commencing as of such date. 
 17.33 “Total and Permanent Disability” means that the Optionee
is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted, or can be expected to last, for a continuous period of not
less than one year. 
  

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 APPENDIX A 
 PERFORMANCE CRITERIA FOR RESTRICTED SHARES AND STOCK UNITS

 The performance goals that may be used by the Administrator may consist of: operating profits (including EBITDA), net profits, earnings, earnings per
share, profit returns and margins, cash flow, revenues, stockholder return and/or value, stock price, return on capital, return on assets or net assets, return on investment, revenue, income or net income, operating income or net operating income,
operating profit or net operating profit, operating margin, return on operating revenue, working capital, market share, contract awards or backlog, overhead or other expense reduction, growth in stockholder value relative to the moving average of
the S&P 500 Index or a peer group index, credit rating, strategic plan development and implementation, improvement in workforce diversity, number of customers, submitted applications, sold applications or members, conversion yields achieved
from website visitors to sold members (including any sub-yield in between), increase in membership, cost of acquiring members or applicants, retention of membership, business acquisition metrics, individual confidential business objectives, and any
other similar criteria. Performance goals may be measured solely on an individual, corporate, subsidiary or business unit basis, or a combination thereof. Further, performance criteria may reflect absolute entity performance or a relative comparison
of entity performance to the performance of a peer group of entities or other external measure of the selected performance criteria. Profit, earnings and revenues used for any performance goal measurement may exclude: gains or losses on operating
asset sales or dispositions; asset write-downs; litigation or claim judgments or settlements; accruals for historic environmental obligations; effect of changes in tax law or rate on deferred tax liabilities, accounting principles or other such laws
or provisions affecting reported results; accruals for reorganization and restructuring programs; uninsured catastrophic property losses; the cumulative effect of changes in accounting principles; and any extraordinary non-recurring items as
described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial performance appearing in the Company’s annual report to stockholders for the applicable year. 
  

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