Document:

Employment Agreement - Thomas F. Connerty

 Exhibit 10.21 
 SECOND AMENDMENT 
 TO THE 
 EMPLOYMENT AGREEMENT 
 (Thomas F. Connerty) 
 THIS SECOND AMENDMENT, dated as of December 30, 2008 (the “Second Amendment”), is between NutriSystem, Inc., a Delaware corporation
(the “Company”), and Thomas F. Connerty (the “Employee”). 
 RECITALS 
 WHEREAS, the Company and the Employee previously entered into an Employment Agreement, dated November 30, 2007 (the “Employment
Agreement”), and an Amendment, dated as of May 14, 2008, to the Employment Agreement (the “First Amendment”), that set forth the terms and conditions of the Employee’s employment with the Company; 
 WHEREAS, the Company and the Employee desire to amend the Employment Agreement and the First Amendment to comply with the requirements of section 409A of
the Internal Revenue Code of 1986, as amended and the final regulations issued thereunder; and 
 WHEREAS, Section 16 of the Employment
Agreement provides that the Employment Agreement may be amended pursuant to a written amendment executed between the Employee and the Company. 
 NOW, THEREFORE, the Company and the Employee, each intending to be legally bound hereby, agree that, effective December 30, 2008, the Employment Agreement and First Amendment shall be amended as follows: 
 A. Total Disability. The first paragraph of Section 10 of the Employment Agreement, and Part D of the First Amendment amending subsection
(b) of the first paragraph of Section 10 of the Employment Agreement, are hereby amended in their entirety to read as follows: 
 “If the Employee becomes “totally disabled,” then the Employment Term shall terminate, and thereafter the Company shall have no further liability or obligation to the Employee under this Agreement, except that the Employee
shall receive (a) any unpaid Salary that has accrued through the date of termination, (b) a lump sum cash payment equal to one month of Salary, and (c) whatever benefits that the Employee may be entitled to receive under any then
existing disability benefit plans of the Company, and except as provided in the Stock Award Agreement with respect to the Stock Grant. Cash payments under this Section 10 shall be made by the Company within 60 days after the Employee’s
termination of employment.” 

 B. Termination without Cause by the Company. Subsections (1) through (6) of
Section 13 of the Employment Agreement, and Part E of the First Amendment amending subsections (1) through (6) of the Employment Agreement, are hereby amended in their entirety to read as follows: 
 “(1) within 60 days following the Employee’s termination date, the Company will pay to the Employee a lump sum cash severance payment in the
amount equal to the sum of: 
 (i) the Salary for period from the date of termination to the end of the Employment Term; and 
 (ii) the value of the premium cost to the Company to continue the Employee on the Company’s group life and AD&D policy for the period from the
date of termination to the end of the Employment Term; 
 (2) the Employee’s group heathcare coverage will be continued for the period
from the date of termination to the end of the Employment Term, at the Employee’s normal contribution rates; and 
 (3) the next tranche
of the Employee’s outstanding restricted common stock that is scheduled to vest after the date of termination will become vested on the date of termination; and 
 (4) the Employee and the Company will enter into, and the Employee must not revoke, a mutual general release, which shall be a condition to the receipt of the termination benefits under this Section.” 

C. Section 409A of the Code. A new Section 19 is hereby added to the Employment Agreement to read as follows: 
 “19. Compliance with Section 409A of the Code 
 This Agreement shall be interpreted to avoid any penalty sections under section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). If any payment or benefit cannot be provided or made
at the time specified herein without incurring sanctions under section 409A, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed. All payments to be made upon a termination
of employment under this Agreement may only be made upon a ‘separation from service’ under section 409A of the Code. For purposes of section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment.
In no event may the Employee, directly or indirectly, designate the calendar year of payment. 
  

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 To the maximum extent permitted under section 409A of the Code and its corresponding regulations, the
severance payments payable under this Agreement are intended to meet the requirements of the short-term deferral exemption under section 409A of the Code and the ‘separation pay exception’ under Treas. Reg. §1.409A-1(b)(9)(iii).
However, if such severance benefits do not qualify for such exemptions at the time of the Employee’s termination of employment and therefore are deemed as deferred compensation subject to the requirements of section 409A of the Code, then if
the Employee is a “specified employee” of a publicly traded corporation under section 409A of the Code on the date of the Employee’s termination of employment, notwithstanding any other provision of this Agreement, payment of
severance under this Agreement shall be delayed for a period of six months from the date of the Employee’s termination of employment if required by section 409A of the Code. The accumulated postponed amount shall be paid in a lump sum payment
within 10 days after the end of the six month period. If the Employee dies during the postponement period prior to payment of the postponed amount, the amounts withheld on account of section 409A of the Code shall be paid to the personal
representatives of the Employee’s estate within 60 days after the date of the Employee’s death. The determination of whether the Employee is a “specified employee” shall be made by the Compensation Committee of the Board (or its
delegate) in accordance with section 409A of the Code and the regulations issued thereunder. 
 All reimbursements provided under this
Agreement shall be made or provided in accordance with the requirements of section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement shall be for expenses incurred during the Employee’s lifetime (or
during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the
reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another
benefit.” 
 D. Effect on Employment Agreement and First Amendment. In all respects not modified by this Second Amendment, the
Employment Agreement and the First Amendment are hereby ratified and confirmed. 
  

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 [SIGNATURE PAGE FOLLOWS] 
  

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 IN WITNESS WHEREOF, the Company and the Employee agree to the terms of the foregoing Second Amendment,
effective as of the date first written above. 
  

			
	 NUTRISYSTEM, INC.

		
	 By:
	 	 /s/    David D. Clark

	 Name:
	 	David D. Clark
	 Title:
	 	Chief Financial Officer
	
	 EMPLOYEE
  

	 /s/    Thomas F. Connerty

	 Name:
	 	Thomas F. Connerty

  

 5Employment Agreement - Scott A. Falconer

 Exhibit 10.23 
 AMENDMENT 
 TO THE 
 EMPLOYMENT AGREEMENT 
 (Scott A. Falconer) 
 THIS AMENDMENT, dated as of December 30, 2008 (the “Amendment”), is between NutriSystem, Inc., a Delaware corporation
(the “Company”), and Scott A. Falconer (the “Employee”). 
 RECITALS 
 WHEREAS, the Company and the Employee previously entered into an Employment Agreement, dated May 14, 2008, (the “Employment
Agreement”), that sets forth the terms and conditions of the Employee’s employment with the Company; 
 WHEREAS, the Company
and the Employee desire to amend the Employment Agreement to comply with the requirements of section 409A of the Internal Revenue Code of 1986, as amended and the final regulations issued thereunder; and 
 WHEREAS, Section 16 of the Employment Agreement provides that the Employment Agreement may be amended pursuant to a written amendment executed
between the Employee and the Company. 
 NOW, THEREFORE, the Company and the Employee, each intending to be legally bound hereby, agree that,
effective December 30, 2008, the Employment Agreement shall be amended as follows: 
 A. Death. Section 9 of the Employment
Agreement is hereby amended in its entirety to read as follows: 
 “If the Employee dies during the Employment Term, then the Employment
Term shall terminate, and thereafter the Company shall not have any further liability or obligation to the Employee, the Employee’s executors, administrators, heirs, assigns or any other person claiming under or through the Employee, except
(a) that the Employee’s estate shall receive any unpaid Salary that has accrued through the date of termination, (b) Employee’s estate shall receive a lump sum cash payment in an amount equal to the Employee’s prorated
Annual Bonus (calculated as equal to 100% of Salary) for the fiscal year of his death, which pro ration will be determined from the first day of the fiscal year in which the Employee dies through the date of death; and (c) the Initial Stock
Grant will be accelerated for an additional period of 12 months following the month in which the Employee dies that is applied between scheduled vesting dates to accelerate vesting on the pro rata portion of the vesting schedule using a monthly
basis instead of the scheduled vesting dates. Cash payments under this Section 9 shall be made by the Company within 60 days after the Employee’s death.” 

 B. Total Disability. The first paragraph of Section 10 of the Employment Agreement is hereby
amended in its entirety to read as follows: 
 “If the Employee becomes “totally disabled,” then the Employment Term shall
terminate, and thereafter the Company shall have no further liability or obligation to the Employee hereunder, except as follows: the Employee shall receive (a) any unpaid Salary that has accrued through the date of termination, (b) a lump
sum cash payment equal to one month of Salary, (c) a lump sum cash payment in an amount equal to the Employee’s prorated Annual Bonus (calculated as equal to 100% of Salary) for the fiscal year of his termination pursuant to this Section,
which pro ration will be determined from the first day of the fiscal year in which the Employee’s termination occurs through the date of termination; (d) the Initial Stock Grant will be accelerated for an additional period of 12 months
following the month in which the Employee is totally disabled that is applied between scheduled vesting dates to accelerate vesting on the pro rata portion of the vesting schedule using a monthly basis instead of the scheduled vesting dates; and
(e) whatever benefits that he may be entitled to receive under any then existing disability benefit plans of the Company. Cash payments under this Section 10 shall be made by the Company within 60 days after the Employee’s termination
of employment.” 
 C. Termination by the Employee. Clause (i) in the second paragraph of Section 12 of the Employment
Agreement is hereby amended in its entirety to read as follows: 
 “(i) a material diminution in the Employee’s base compensation,
which for this purpose base compensation shall mean the Salary and the target Annual Bonus opportunity, which is 100% of Salary;” 
 D.
Termination without Cause or Non-Renewal by the Company. Subsections (1) through (5) of Section 13 of the Employment Agreement are hereby amended in their entirety to read as follows: 
 “(1) within 30 days following the Employee’s termination date, the Company will pay to the Employee a lump sum cash severance payment in the
amount equal to the sum of: 
 (a) 24 months of the Salary then in effect; 
 (b) a pro rated amount of the Annual Bonus (calculated at 100% of Salary) from the first day of the fiscal year in which the termination occurred through
the date of termination; and 
  

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 (c) the value of the premium cost to the Company to continue the Employee on the Company’s group
life and AD&D policy for the 12 month period following the Employee’s termination date; and 
 (2) the Employee’s group
heathcare coverage will be continued for 12 months, at the Employee’s normal contribution rates; and 
 (3) the Employee’s covenants
against non-competition (as described in the Section 8 of this Agreement) shall be reduced to a 12 month period from the termination date, from the period contained in the Agreement referred to in Section 8 above; and 
 (4) the Initial Stock Grant will be accelerated for an additional period of 12 months following the month in which the Employee is terminated that is
applied between scheduled vesting dates to accelerate vesting on the pro rata portion of the vesting schedule using a monthly basis instead of the scheduled vesting dates; and 
 (5) the Employee and the Company will enter into, and the Employee must not revoke, a mutual general release, which shall be a condition to the receipt of
the termination benefits under this Section.” 
 E. Compliance with Section 409A of the Code. The first sentence of the
second paragraph of Section 20 of the Employment Agreement is hereby amended in its entirety to read as follows: 
 “To the maximum
extent permitted under section 409A of the Code and its corresponding regulations, the severance benefits payable under this Agreement are intended to meet the requirements of the short-term deferral exemption under section 409A of the Code and the
‘separation pay exception’ under Treas. Reg. §1.409A-1(b)(9)(iii).” 
 F. Compliance with Section 409A of the
Code. A new paragraph is hereby added to the end of Section 20 of the Employment Agreement to read as follows: 
 “All
reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the
Employee’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other
calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the taxable year following the year in which the 
  

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 expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange
for another benefit. Any tax gross-up payments to be made hereunder shall be made not later than the end of Employee’s taxable year next following Employee’s taxable year in which the related taxes are remitted to the taxing
authority.” 
 G. Excise Tax on Change of Control Payments. The last two sentences of subsection (b) of Section 21 of
the Employment Agreements are hereby amended in their entirety to read as follows: 
 “If a reduction is required by this provision, the
amounts payable or benefits to be provided to the Employee shall be reduced such that the economic loss to the Employee as a result of the reduction is minimized. In applying this principle, the reduction shall be made in a manner consistent with
the requirements of section 409A of the Code and where two economically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro rata basis but not below zero. The Company shall bear all
costs incurred in connection with any calculations contemplated by this Section.” 
 H. Effect on Employment Agreement. In all
respects not modified by this Amendment, the Employment Agreement is hereby ratified and confirmed. 
 IN WITNESS WHEREOF, the Company and
the Employee agree to the terms of the foregoing Amendment, effective as of the date first written above. 
  

			
	 NUTRISYSTEM, INC.

		
	 By:
	 	 /s/    David D. Clark

	 Name:
	 	David D. Clark
	 Title:
	 	Chief Financial Officer
	
	 EMPLOYEE
  

	 /s/    Scott A. Falconer

	 Name:
	 	Scott A. Falconer

  

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