eHealth, Inc. Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

On April 1, 2022, eHealth, Inc. (NASDAQ: EHTH) announced the grant of inducement stock unit awards to newly appointed COO Roman Rariy. These awards consist of two restricted stock unit grants, each covering 76,688 shares. The first will vest over four years, while the second is tied to stock price performance. This decision aligns with NASDAQ Listing Rule 5635(c)(4) and aims to incentivize Rariy's contributions to the company. eHealth operates a significant online health insurance marketplace connecting millions with various health insurance options.

Positive

• Inducement stock unit awards granted to a key executive to enhance retention.
• Two stock unit awards incentivize performance linked to stock price goals.

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• None.

SANTA CLARA, Calif., April 1, 2022 /PRNewswire/ -- eHealth, Inc. (Nasdaq: EHTH), a leading private online health insurance marketplace (the "Company"), today announced that on April 1, 2022, pursuant to the terms previously announced by eHealth on February 28, 2022, the Compensation Committee of its Board of Directors granted inducement stock unit awards to Roman Rariy, an employee of eHealth, Inc. who was appointed the Chief Operating Officer and Chief Transformation Officer of eHealth, Inc. effective March 1, 2022. Each of these awards was granted under the Company's Amended and Restated 2021 Inducement Plan (the "Inducement Plan") and otherwise will be subject to the terms and conditions of a stock unit agreement under the Inducement Plan.

Mr. Rariy received two restricted stock unit awards. The first restricted stock unit award covers 76,688 shares of the Company's common stock and will be subject to vesting over four years, with 25% vesting on the first anniversary of the vesting commencement date of March 10, 2022, and the remainder vesting in equal quarterly installments over the subsequent three years, subject to potential acceleration upon certain terminations of employment. The second restricted stock unit award covers 76,688 shares of the Company's common stock and will become eligible to vest based on the achievement of stock price goals, and will then vest on the first anniversary of the date that the hurdle was met, subject to continued service through the vesting date (and potential acceleration upon certain terminations of employment).

The stock unit awards were granted as inducements material to Mr. Rariy entering into employment with eHealth, Inc. in accordance with NASDAQ Listing Rule 5635(c)(4).

About eHealth, Inc.
eHealth, Inc. (NASDAQ: EHTH) operates a leading health insurance marketplace at eHealth.com and eHealthMedicare.com with technology that provides consumers with health insurance enrollment solutions. Since 1997, we have connected more than 8 million members with quality, affordable health insurance, Medicare options, and ancillary plans. Our proprietary marketplace offers Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual, family, small business and other plans from over 200 health insurance carriers across fifty states and the District of Columbia.

Media inquiries:
Lara Sasken
Senior Vice President, Corporate Communications
pr@ehealth.com

Investor Relations Contact:
Kate Sidorovich, CFA
Senior Vice President, Investor Relations & Strategy
Kate.sidorovich@ehealth.com

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SOURCE eHealth, Inc.

FAQ

What are the inducement stock unit awards granted to eHealth COO Roman Rariy?

On April 1, 2022, eHealth granted Roman Rariy two inducement stock unit awards, each covering 76,688 shares, to incentivize his performance.

How will the stock unit awards vest for Roman Rariy?

The first award will vest over four years, while the second award is contingent on achieving stock price goals.

What is the significance of NASDAQ Listing Rule 5635(c)(4) in eHealth's announcement?

This rule allows companies to grant inducement awards to new employees as part of their compensation.

When was Roman Rariy appointed COO of eHealth?

Roman Rariy was appointed COO and Chief Transformation Officer effective March 1, 2022.

What does eHealth, Inc. do?

eHealth operates an online health insurance marketplace and connects consumers with various health insurance options.