Document:

Exhibit 10.8

ALLIANCE ADVISORS, LLC

(An Affiliate of Hayden Communications, Inc.)

INVESTOR RELATIONS CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT is made this 1st day of December 2005, by and between Health Benefits Direct Corporation (OTC BB: HBDC), a Delaware Corporation (hereinafter referred to as the “Company” or “HBDC”), and Alliance Advisors, LLC (hereinafter referred to as the “Consultant” or “AA”), an affiliate of Hayden Communications, Inc. (“HC”).

EXPLANATORY STATEMENT

The Consultant has successfully demonstrated financial and public relations consulting expertise, and possesses valuable knowledge, and experience in the areas of business finance and corporate investor/public relations. The Company believes that the Consultant’s knowledge, expertise and experience would benefit the Company, and the Company desires to retain the Consultant to perform consulting services in the areas described above for the Company.

NOW, THEREFORE, in consideration of their mutual agreements and covenants contained herein, and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and in further consideration of the affixation by the parties of their respective signatures and seals herein below, the parties agree as follows:

	
I.

	
CONSULTING SERVICES

1.1.       AA agrees that for a period of twelve (12) months commencing December 1, 2005, the Consultant will reasonably be available during regular business hours to advise, counsel and inform designated officers and employees of the Company about the health benefits services industry. Additionally, AA shall provide advice to HBDC about the financial marketplace, competitors, business acquisitions and other aspects of or concerning the Company’s business about which AA has knowledge or expertise.

1.2.       AA shall render services to the Company as an independent contractor, and not as an employee. All services rendered by AA on behalf of the Company shall be performed to the best of AA’s ability in concert with the overall business plan of the Company and the goals and objectives of Corporate Management and the Board of Directors.

	
II.

	
SCOPE OF SERVICES/PROGRAMS/ACTIVITIES

AA will develop, implement, and maintain an ongoing stock market support system for HBDC with the general objective of expanding awareness in HBDC among stockbrokers, analysts, micro-cap portfolio/fund managers, market makers, and the appropriate financial & trade publicaions.

 

 

	
105 South Bedford Road

	
Suite 313

	
Mount Kisco, NY 10549

	
P (914) 244-0062

	
 

	
F (914) 244-4458

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1.

	
PROFESSIONAL INVESTMENT COMMUNITY AWARENESS

	
 

	
 

	
A.

	
Introductions to professionals at select firms, with a focus on members of the Financial Community in various geographic regions, both in the United States, Canada and Europe. The targeted group of professionals, which would be drawn from our proprietary database of contacts will be a subset of the following:

	
 

	
1.

	
Over 15,000 Equity Brokers

	
 

	
 

	
2.

	
Over 800 Analysts (Buy and Sell Side - both generalists and industry specialists)

	
 

	
3.

	
Over 6,500 Micro-Cap Portfolio/Hedge Fund Managers

	
 

	
 

	
4.

	
Over 120 Market Makers (both retail and wholesale)

	
 

	
 

	
5.

	
Financial, Trade and Industry Publications

	
 

	
 

	
B.

	
Introductions to new fund managers and analysts (buy and sell side) through the utilization of both Big Dough and other on-line tools such as StreetWise, etc.

	
 

	
C.

	
Introductions to High Net-Worth accredited investors who build positions in micro-cap companies and are familiar with other quality companies, which AA currently and previously represented.

	
 

	
D.

	
Broker conference calls/presentations arranged by AA in select cities (and at compatible times) with top management at HBDC. Cities we would schedule meetings include New York, Boston, Dallas, Denver, Ft. Lauderdale, Houston, Atlanta, Chicago, LA, Miami, Orange County, CA, San Diego, San Francisco, St. Louis, D.C., and other select cities.

	
 

	
E.

	
All interested parties will be continually updated of Client’s progress via phone conversations and through our fax/e-mail list for news releases.

	
 

	
F.

	
AA will screen all investment firms for upcoming financial conferences, which would be appropriate for HBDC. AA will work through the proper channels with the goal of receiving invitations for management to present at those conferences, which are relevant.

									

 

	
2.

	
SHAREHOLDER COMMUNICATIONS

 

	
A.

	
Handle investor requests for timely information via the telephone and e-mail. AA will have a knowledgeable associate available during market hours to field and respond to all investor inquiries in a timely manner. This is a time intensive service that allows management to focus on executing its business plan.

	
B.

	
AA will provide same day fulfillment for all investor package requests.

	
 

	
C.

	
Quarterly Conference Calls to accompany the earnings release. AA will assist with scripting these calls and monitoring the continuity to ensure a smooth rollout for investors. Quarterly Interim-Reports including a “CEO Letter” are an additional option to communicate with shareholders on a consistent basis.

 

	
3.

	
MEDIA RELATIONS

	
 

	
 

	
A.

	
Our Media Department will develop a focus list of industry, trade and financial publications and contact appropriate editors, review and manage editorial calendars for relevant upcoming articles.

				

 

 

	
105 South Bedford Road

	
Suite 313

	
Mount Kisco, NY 10549

	
P (914) 244-0062

	
 

	
F (914) 244-4458

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B.

	
Financial Newsletter campaign. AA will work with our many financial newsletter editors and publishers for a “Buy Recommendation” for HBDC. The newsletters we contact have a paid subscription base of investors who focus solely on micro cap stocks and do not solicit compensation for coverage. A “Buy Recommendation” can produce a great deal of new investor interest and lends third party support and opinion. AA has been able to achieve “Buy Recommendations” for former and current clients in: The Kon-Lin letter, The Conservative Speculator, Dick Davis Digest, George Southerland’s Special Investment Situations, The Patient Inve$tor, and Equities Special Situations. Other publications we have worked with and will introduce HBDC to include: The Red Chip Review, Investor’s Digest, The Quiet Investor, Acker Letter, High-Growth Newsletter, Bullish Investor,
Low-Priced Stocks, and the Micro-Stock Digest.

 

	
4.

	
THE FINANCIAL PRESS

 

	
A.

	
AA will assist senior management to draft and complete press releases on all material events as deemed by the Company. Management and corporate counsel will approve all releases before they are sent to the wire.

	
B.

	
AA will disseminate news releases through a Broadcast Fax and/or electronic mail (e-mail) to our established database of financial professionals including: special situation analysts, brokers, fund managers, individual investors, money managers, and current or prospective individual shareholders who are already invested or have expressed an interest in HBDC.

 

	
III.

	
AGENDA (Initial 180 days)

	
 

	
 

	
A.

	
Establish a time line of expected corporate events.

	
 

	
 

	
B.

	
Generate a two-page Corporate Profile, which clearly articulates HBDC’s current business and financial position, as well as its strategy for future growth.

	
 

	
C.

	
Assist HBDC in updating its investor package and investor information via the company’s corporate Web site. Assist with Shareholders’ letter and quarterly update.

	
 

	
D.

	
Assist management in updating its PowerPoint presentation to utilize during corporate presentations.

	
 

	
E.

	
Target select brokers and micro-cap fund managers, which follow growth companies that have a similar profile to HBDC.

	
 

	
F.

	
Expand the number of market makers, which utilize retail support.

	
 

	
 

	
G.

	
Plan in house broker meetings/conference calls in select cities. Follow up with phone calls to gauge management’s effectiveness in articulating the story. Give feedback and make appropriate changes to properly position the company and growth opportunity.

	
 

	
H.

	
Target newsletter editors and publishers for a “Buy Recommendation”. Focus on Trade, Financial and Industry Publications for appropriate stories on HBDC’s services, attributes and value proposition to the marketplace.

						

 

 

	
105 South Bedford Road

	
Suite 313

	
Mount Kisco, NY 10549

	
P (914) 244-0062

	
 

	
F (914) 244-4458

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I.

	
Target “Buy” and “Sell” side analysts for a “Buy Recommendation”.

	
 

	
J.

	
Maintain and update the database to ensure that all press releases are faxed and/or e-mailed to all interested professionals.

	
K.

	
Manage all investor calls in a timely manner to facilitate the timely distribution of corporate information. Focus on educating professional shareholders, with the premise that an informed investor will become a longer-term investor.

	
L.

	
Contact Brokerage Firms who hold conferences for the purpose of receiving an invitation for management to present.

	
M.

	
Provide progress reports to senior management when appropriate. Evaluate achievements after the first 180 days and develop a new agenda.

 

Many of the above items will occur simultaneously. Certain items will have chronological priority over others, however for the most part agenda items will progress in unison throughout the initial 180-day period. As HBDC grows and evolves, we will recommend changes to the Agenda that compliment the growth. As the company continues to execute its strategic plan by signing new installation contracts and completing strategic acquisition, which will compliment its growth, we will target an expanded universe of brokers, analysts and portfolio/fund managers.

At each stage of growth, the appropriate approach to the market will be incorporated into the agenda for optimal results. A new formal Agenda will be created after the 180-day period, or earlier if necessary.

Assuming that HBDC's efforts are leading ultimately to success and greater profitability, the end results of this financial communication and awareness campaign should be:

	
*

	
An increase in the number of financial professionals (including brokers, institutions and analysts) and Individual investors well educated and knowledgeable about HBDC: including senior management, the company’s services, as well as its current financial condition and growth opportunities.

	
*

	
An increase in the number of articles printed in both trade and financial publications.

	
 

	
*

	
And increase in the liquidity of the common stock.

	
 

	
*

	
An increase in HBDC’s market capitalization coupled with a broader, more diverse shareholder base.

	
*

	
Easier access to the capital markets, if additional capital is required.

	
 

					

 

	
IV.

	
TERM

This agreement shall remain in effect for a period commencing on the signature date and terminating twelve months from signing date. At the six-month anniversary either party will have the option to terminate the agreement on 30 days notice. In the event that AA commits any material breach or violation of the provisions of this Agreement, then, the Client has the right to terminate this agreement any time during the contractual period and/or any extension periods after the initial contractual period.

 

 

	
105 South Bedford Road

	
Suite 313

	
Mount Kisco, NY 10549

	
P (914) 244-0062

	
 

	
F (914) 244-4458

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V.

	
COMPENSATION

Regarding compensation, it is our intention to propose parameters that are mutually acceptable to both HBDC and AA in order to accomplish our collective mission. Based on a commitment of resources necessary to perform successfully on behalf of HBDC for a period of twelve (12) months, Alliance Advisors, LLC proposes the following compensation terms:

Cash and Equity

	
A.

	
Monthly consulting and services fee of $8,300 payable upon execution of this Agreement and at the first of each month during the term of this Agreement.

	
B.

	
Common Stock: One Hundred Thousand (100,000) common shares shall be delivered during the first thirty days of this Agreement. AA acknowledges that the New Shares have not been and will not be registered under the federal Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state of the United States or any other jurisdiction, and that the New Shares will constitute “restricted securities” as defined in Rule 144 under the Securities Act (which Rule 144 permits sales after a 1-year restrictive term). The New Shares are for AA’s own account for investment and not for the interest of any other person and, except for subsequent sales as permitted under Rule 144 or other exceptions from registration; AA is not purchasing the New Shares for resale to others or with a view to or for sale in connection with any distribution thereof. AA is
an “Accredited Investor” (as that term is defined in Rule 501 of Regulation D promulgated under the Securities Act). AA will not resell or otherwise dispose of the New Shares or any interest therein at any time unless (i) an exemption from registration is available and, if FDWY requests, FDWY receives an opinion of counsel reasonably satisfactory to it that such exemption is available, or (ii) such securities are subsequently registered under the Securities Act and appropriate state securities laws. AA shall have piggyback registration rights in the event a registration statement is filed during the engagement period.

 

Expenses:              Only expenses that would ordinarily be incurred by the Client will be billed back on a monthly basis. Applicable reimbursements would include: postage for investor packages or research reports (if our office provides fulfillment), fees for news wire services (if our office disseminates news releases), and fees for fax-broadcasting news releases. The Client shall provide AA all investor and broker due-diligence packages. Any packages requiring additional photocopying/printing will be billed back to the Client at cost (with no mark-up). Any extraordinary items, such as broker lunch presentations, air travel, hotel, ground transportation or media campaigns, etc. shall be paid by the Client, only with Client authorization prior to incurring any expenses. Any expenses
over $500 within a calendar month shall be subject to pre-approval by the Company.

 

 

	
105 South Bedford Road

	
Suite 313

	
Mount Kisco, NY 10549

	
P (914) 244-0062

	
 

	
F (914) 244-4458

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VI.        Prior Restriction. AA represents and covenants to the Company that AA is not subject to, or bound by, any agreement which sets forth or contains a restrictive covenant, the existence or enforcement of which would in any way restrict or hinder AA from performing the services on behalf of the Company that AA is herein agreeing to perform.

VII.       Assignment. This Agreement is personal to AA and may not be assigned in any way by AA without the prior written consent of the Company. Subject to the foregoing, the rights and obligations under this Agreement shall inure to the benefit of, and shall be binding upon, the heirs, legatees, successors and permitted assigns of AA and upon the successors and assigns of the Company.

VIII.     Confidentiality. Except as required by law or court order, AA will keep confidential any trade secrets or confidential proprietary information of the Company which are now known to AA or which hereinafter may become known to AA and AA shall not at any time directly or indirectly disclose or permit to be disclosed any such information to any person, firm, or corporation or other entity, or use the same in any way other than in connection with the business of the Company. For purposes of this Agreement, “trade secrets or confidential proprietary information” means information unique to the Company, which has a business purpose and is not known or generally available to the public.

	
IX.

	
Default.

9.1.          Except for a claim or controversy arising under Section 6 of this Agreement, any claim or controversy arising under any of the provisions of this Agreement shall, at the election of either party hereto, be determined by arbitration in New York in accordance with the rules of the American Arbitration Association. The decision of the Arbitrator shall be binding and conclusive upon the parties. Each party shall pay its own costs and expenses in any such arbitration and the costs of filing for the arbitration, and the fees of the arbitrator shall be shared equally by the parties.

9.2.          In the event the AA commits any material violation of the provisions of this Agreement, as determined by the Company in good faith, the Company may, by injunctive action, compel AA to comply with, or restrain AA from violating, such provision, and, in addition, and not in the alternative, the Company shall be entitled to declare AA in default hereunder and to terminate this Agreement and any further payments hereunder.

9.3.          Since AA must at all times rely upon the accuracy and completeness of information supplied to it by the Company’s officers, directors, agents, and employees, the Company agrees to indemnify, hold harmless, and defend AA, its officers, agents, and employees at the Company’s expense, in any proceeding or suit which may arise out of and/or due to any inaccuracy or incompleteness of such material supplied by the Company to AA.

X.          Severability and Reformation. If any provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future law, such provision shall be fully severable, and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable 

 

	
105 South Bedford Road

	
Suite 313

	
Mount Kisco, NY 10549

	
P (914) 244-0062

	
 

	
F (914) 244-4458

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provision were never a part hereof, and the remaining provisions shall remain in full force and shall not be affected by the illegal, invalid, or unenforceable provision, or by its severance.

XI.        Notices. Any notices required by this Agreement shall (i) be made in writing by hand delivery, by certified mail, return receipt requested, with adequate postage prepaid, or by overnight courier delivery service for the next day delivery (ii) be deemed given when so delivered, two days after mailing, or the day following delivery to the overnight courier delivery service, and (iii) in the case of the Company, be mailed to its principal office at 2900 Gateway Drive, Pompano Beach, FL 33069 or in the case of AA, be mailed to 105 South Bedford Road, Suite 313, Mount Kisco, NY 10549.

	
XII.

	
Miscellaneous.

12.1.        This Agreement may not be amended, except by a written instrument signed and delivered by the parties hereto.

12.2.        This Agreement constitutes the entire understanding between the parties hereto with respect to the subject matter hereof, and all other agreements relating to the subject matter hereof are hereby superseded.

12.3.        This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

IN WITNESS WHEREOF, the parties have executed, under seal this Consulting Agreement as of the day and year first above written.

	
AGREED:

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/

	
 

	
By:

	
/s/

	
 

	
Alan Sheinwald, Principal

	
 

	
 

	
Scott Frohman, CEO

	
 

	
Alliance Advisors, LLC

	
 

	
 

	
Health Benefits Direct Corporation

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	/s/
	
 

	
 

	
 

	
Matthew Hayden, Principal

	
 

	
 

	
 

	
Alliance Advisors, LLC

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date:

	
December 1, 2005

	
 

	
Date:

	
December 1, 2005

							

 

 

 

	
105 South Bedford Road

	
Suite 313

	
Mount Kisco, NY 10549

	
P (914) 244-0062

	
 

	
F (914) 244-4458

7Exhibit 10.9

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is made and entered into as of this 12th day of January, 2006, by and between HEALTH BENEFITS DIRECT CORPORATION, a Delaware corporation with offices at 2900 Gateway Drive, Pompano Beach, Florida 33069 (the “Corporation”), and Alvin Clemens, an individual residing at 500 Huston Road, St. Davids, PA, 19087 (the “Executive”), under the following circumstances:

RECITALS:

A.         The Corporation desires to secure the services of the Executive upon the terms and conditions hereinafter set forth; and

B.         The Executive desires to render services to the Corporation upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, the parties mutually agree as follows:

1.          Employment. The Corporation hereby employs the Executive and the Executive hereby accepts employment as an executive of the Corporation, subject to the terms and conditions set forth in this Agreement.

2.          Duties. The Executive shall serve as the Executive Chairman of the Board of Directors of the Corporation, an executive officer position, with such duties, responsibilities and authority as are commensurate and consistent with his position, as may be, from time to time, assigned to him by the Board of Directors of the Corporation and as specifically set forth on Exhibit A hereto. The Executive shall report directly to the Board of Directors of the Corporation. During the term of this Agreement, the Executive shall devote his full business time and efforts to the performance of his duties hereunder unless otherwise authorized by the Board of Directors. Notwithstanding the foregoing, the expenditure of reasonable amounts of time by the Executive for the making of passive personal investments, the
conduct of private business affairs and charitable and professional activities shall be allowed, provided such activities do not materially interfere with the services required to be rendered to the Corporation hereunder and do not violate the restrictive covenants set forth in Section 9 below.

3.          Term of Employment. The term of the Executive’s employment hereunder, unless sooner terminated as provided herein (the “Initial Term”), shall be for a period of two (2) years commencing on the date hereof (the “Commencement Date”). The term of this Agreement shall automatically be extended for additional terms of one year each (each a “Renewal Term”) unless either party gives prior written notice of non-renewal to the other party no later than sixty (60) days prior to the expiration of the Initial Term (“Non-Renewal Notice”), or the then current Renewal Term, as the
case may be. For purposes of this Agreement, the Initial Term and any Renewal Term are hereinafter collectively referred to as the “Term.”

 

 

 

 

 

	
4.

	
Compensation of Executive.

(a)               The Corporation shall pay the Executive as compensation for his services hereunder, in equal semi-monthly or bi-weekly installments during the Term, the sum of Two Hundred and Seventy-Five Thousand Dollars ($275,000) per annum (the “Base Salary”), less such deductions as shall be required to be withheld by applicable law and regulations. The Corporation shall review the Base Salary on an annual basis and has the right but not the obligation to increase it, but has no right to decrease the Base Salary.

(b)               In addition to the Base Salary set forth in Section 4(a) above, the Executive shall be entitled to such bonus compensation (in cash, capital stock or other property) as a majority of the members of the Board of Directors of the Corporation may determine from time to time in their sole discretion.

(c)               The Corporation shall pay or reimburse the Executive for all reasonable out-of-pocket expenses actually incurred or paid by the Executive in the course of his employment, consistent with the Corporation’s policy for reimbursement of expenses from time to time.

(d)               The Executive shall be entitled to participate in such pension, profit sharing, group insurance, hospitalization, and group health and benefit plans and all other benefits and plans as the Corporation provides to its senior executives (the “Benefit Plans”).

	
5.

	
Termination.

(a)               This Agreement and the Executive’s employment hereunder shall terminate upon the happening of any of the following events:

(i)                upon the Executive’s death; 

(ii)               upon the Executive’s “Total Disability” (as herein defined); 

(iii)              upon the expiration of the Initial Term of this Agreement or any Renewal Term thereof, if either party has provided a timely notice of non-renewal in accordance with Section 3, above;

(iv)              at the Corporation’s option, upon sixty (60) days prior written notice to the Executive if without cause;

(v)               at the Executive’s option, upon thirty (30) days prior written notice to the Corporation;

(vi)              at the Executive’s option, in the event of an act by the Corporation, defined in Section 5(c), below, as constituting “Good Reason” for termination by the Executive; and

 

 

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(vii)             at the Corporation’s option, in the event of an act by the Executive, defined in Section 5(d), below, as constituting “Cause” for termination by the Corporation.

(b)               For purposes of this Agreement, the Executive shall be deemed to be suffering from a “Total Disability” if the Executive has failed to perform his regular and customary duties to the Corporation for a period of 180 days out of any 360-day period and if before the Executive has become “Rehabilitated” (as herein defined) a majority of the members of the Board of Directors of the Corporation, exclusive of the Executive, vote to determine that the Executive is mentally or physically incapable or unable to continue to perform such regular and customary duties of employment. As used herein, the term “Rehabilitated” shall mean such time as the Executive is
willing, able and commences to devote his time and energies to the affairs of the Corporation to the extent and in the manner that he did so prior to his Disability.

(c)               For purposes of this Agreement, the term “Good Reason” shall mean that the Executive has resigned due to the failure of the Corporation to meet any of its obligations to the Executive under this or any other agreement between the Corporation and the Executive, including, without limitation, the failure to permit the Executive to exercise his authority with respect to the matters delegated to Executive in Exhibit A hereto, and failure to cure the same within thirty (30) days following Executive’s delivery of notice specifying the breach(es) by the Corporation.

(d)               For purposes of this Agreement, the term “Cause” shall mean material, gross and willful misconduct on the part of the Executive in connection with his employment duties hereunder or commission of a felony or act of dishonesty resulting in material harm to the Corporation by the Executive.

	
6.

	
Effects of Termination.

(a)               Upon termination of the Executive’s employment pursuant to Section 5(a)(i), the Executive’s estate or beneficiaries shall be entitled to the following severance benefits: (i) three (3) months’ Base Salary at the then current rate, payable in a lump sum, less withholding of applicable taxes; and (ii) continued provision for a period of one (1) year following the Executive’s death of benefits under Benefit Plans extended from time to time by the Corporation to its senior executives.

(b)               Upon termination of the Executive’s employment pursuant to Section 5(a)(ii), the Executive shall be entitled to the following severance benefits: (i) thirty-six (36) months’ Base Salary at the then current rate, to be paid from the date of termination until paid in full in accordance with the Corporation’s usual practices, including the withholding of all applicable taxes; (ii) continued provision during said thirty-six (36) month period of the benefits under Benefit Plans extended from time to time by the Corporation to its senior executives; and (iii) payment on a prorated basis of any bonus or other payments earned in connection with the Corporation’s then-existing bonus plan in place at the time of termination. The Corporation may credit against
such amounts any proceeds paid to Executive with respect to any disability policy maintained for his benefit.

 

 

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(c)               Upon termination of the Executive’s employment pursuant to Section 5(a)(iii), where the Corporation has offered to renew the term of the Executive’s employment for an additional one (1) year period and the Executive chooses not to continue in the employ of the Corporation, the Executive shall be entitled to receive only the accrued but unpaid compensation and vacation pay through the date of termination and any other benefits accrued to him under any Benefit Plans outstanding at such time. In the event the Corporation tenders Non-Renewal Notice to the Executive, then the Executive shall be entitled to the same severance benefits as if the Executive’s employment were terminated pursuant to Section 5(a)(iv) or Section 5(a)(vi); provided, however, if such Non-Renewal Notice was triggered due to the Corporation’s statement that the Executive’s employment was terminated due to Section 5(a)(v) (for “Cause”), then payment of severance benefits will be contingent upon a determination as to whether termination was properly for “Cause.”

(d)               Upon termination of the Executive’s employment pursuant to Section 5(a)(iv) or (vi), the Executive shall be entitled to the following severance benefits: (i) twelve (12) months’ Base Salary at the then current rate, to be paid upon the date of termination of employment in monthly installments, less withholding of all applicable taxes; (ii) continued provision for a period of twelve (12) months after the date of termination of the benefits under Benefit Plans extended from time to time by the Corporation to its senior executives; and (iii) payment on a prorated basis of any bonus or other payments earned in connection with any bonus plan to which the Executive was a participant as of the date of the Executive’s termination of employment.

(e)               Upon termination of the Executive’s employment pursuant to Section 5(a)(v) or (vii), the Executive shall be entitled to the following severance benefits: (i) accrued and unpaid Base Salary and vacation pay through the date of termination, less withholding of applicable taxes; and (ii) continued provision, for a period of one (1) month after the date of the Executive’s termination of employment, of benefits under Benefit Plans extended to the Executive at the time of termination.

(f)                The Executive shall be obligated to seek other employment in order to mitigate his damages resulting from his discharge pursuant to Sections 5(a)(iv), (v), (vi) or (vii), provided that such employment need not be taken at a level below chief operating officer of a subsequent company. Any payments required to be made hereunder by the Corporation to the Executive shall continue to the Executive’s beneficiaries in the event of his death until paid in full.

7.                 Vacations. The Executive shall be entitled to a vacation of four (4) weeks per year, during which period his salary shall be paid in full. The Executive shall take his vacation at such time or times as the Executive and the Corporation shall determine is mutually convenient. Any vacation not taken in one (1) year shall not accrue, provided that if vacation is not taken due to the Corporation’s business necessities, up to two (2) weeks’ vacation may carry over to the subsequent year.

8.                 Disclosure of Confidential Information. The Executive recognizes, acknowledges and agrees that he has had and will continue to have access to secret and confidential information regarding the Corporation, including but not limited to, its products, formulae, patents, sources of 

 

 

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supply, customer dealings, data, know-how and business plans, provided such information is not in or does not hereafter become part of the public domain, or become known to others through no fault of the Executive. The Executive acknowledges that such information is of great value to the Corporation, is the sole property of the Corporation, and has been and will be acquired by him in confidence. In consideration of the obligations undertaken by the Corporation herein, the Executive will not, at any time, during or after his employment hereunder, reveal, divulge or make known to any person, any information acquired by the Executive during the course of his employment, which is treated as confidential by the Corporation, and not otherwise in the public domain, known to the Executive prior to November 23, 2005, or disclosed to the Executive by a third party not restricted from doing so. The provisions of this Section 8
shall survive the Executive’s employment hereunder except in the event of a termination of this Agreement pursuant to Section 5(a)(iv) or (vi), hereof, or as detailed in the provision above. All references to the Corporation in Section 8 and Section 9 hereof shall include any subsidiary of the Corporation.

	
9.

	
Covenant Not To Compete or Solicit.

(a)               The Executive recognizes that the services to be performed by him hereunder are special, unique and extraordinary. The parties confirm that it is reasonably necessary for the protection of the Corporation that the Executive agree, and accordingly, the Executive does hereby agree, that he shall not, directly or indirectly, at any time during the “Restricted Period” within the “Restricted Area” (as those terms are defined in Section 9(e) below):

(i)                except as provided in Subsection (c) below, engage directly in the operation of an online insurance marketplace , either on his own behalf or as an officer, director, stockholder, partner, consultant, associate, employee, owner, agent, creditor, independent contractor, or co-venturer of any third party (for the absence of doubt, notwithstanding anything herein to the contrary, Executive shall not be restricted from participating or from engaging in, as officer, director, stockholder, partner, consultant, associate, employee, owner, agent, creditor, independent contractor, or co-venturer, any business that is a licensed insurance company, provided that if such licensed insurance company maintains or operates an online insurance marketplace, Executive may not be
assigned to such online insurance marketplace as his primary functional area of responsibility); or 

(ii)               solicit to employ or engage, for or on behalf of himself or any third party, any employee or agent of the Corporation, other than Anthony Verdi.

(b)               The Executive hereby agrees that he will not, directly or indirectly, for or on behalf of himself or any third party, at any time during the Term and during the Restricted Period, solicit any customers of the Corporation with respect to products competitive with products then being sold by the Corporation.

(c)               If any of the restrictions contained in this Section 9 shall be deemed to be unenforceable by reason of the extent, duration or geographical scope thereof, or otherwise, then the court making such determination shall have the right to reduce such extent, duration, 

 

 

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geographical scope, or other provisions hereof, and in its reduced form this Section shall then be enforceable in the manner contemplated hereby.

(d)               This Section 9 shall not be construed to prevent the Executive from owning, directly or indirectly, in the aggregate, an amount not exceeding five percent (5%) of the issued and outstanding voting securities of any class of any corporation whose voting capital stock is traded or listed on a national securities exchange or in the over-the-counter market.

(e)               The term “Restricted Period,” as used in this Section 9, shall mean the period of the Executive’s actual employment hereunder, plus twelve (12) months after the date the Executive is actually no longer employed by the Corporation. The term “Restricted Area” as used in this Section 9 shall mean the continental United States.

(f)                The provisions of this Section 9 shall survive the termination of the Executive’s employment hereunder and until the end of the Restricted Period as provided in Section 9(e) hereof except in the event that this Agreement is terminated pursuant to Section 5(a)(iv) or (vi), hereof, in which case such provisions shall not survive termination of this Agreement. In no event shall the terms of Section 9 be enforceable, should the Corporation be in default of any of its obligations to the Executive at the time of his termination of employment by the Corporation.

	
10.

	
Miscellaneous.

(a)               The Executive acknowledges that the services to be rendered by him under the provisions of this Agreement are of a special, unique and extraordinary character and that it would be difficult or impossible to replace such services. Accordingly, the Executive agrees that any breach or threatened breach by him of Sections 8 or 9 of this Agreement shall entitle the Corporation, in addition to all other legal remedies available to it, to apply to any court of competent jurisdiction to seek to enjoin such breach or threatened breach. The parties understand and intend that each restriction agreed to by the Executive hereinabove shall be construed as separable and divisible from every other restriction, that the unenforceability of any restriction shall not limit the
enforceability, in whole or in part, of any other restriction, and that one or more or all of such restrictions may be enforced in whole or in part as the circumstances warrant. In the event that any restriction in this Agreement is more restrictive than permitted by law in the jurisdiction in which the Corporation seeks enforcement thereof, such restriction shall be limited to the extent permitted by law. The remedy of injunctive relief herein set forth shall be in addition to, and not in lieu of, any other rights or remedies that the Corporation may have at law or in equity.

(b)               Neither the Executive nor the Corporation may assign or delegate any of their rights or duties under this Agreement without the express written consent of the other; provided however that the Corporation shall have the right to delegate its obligation of payment of all sums due to the Executive hereunder, provided that such delegation shall not relieve the Corporation of any of its obligations hereunder.

(c)               This Agreement constitutes and embodies the full and complete understanding and agreement of the parties with respect to the Executive’s employment by the 

 

 

6

 

 

Corporation, supersedes all prior understandings and agreements, whether oral or written, between the Executive and the Corporation, and shall not be amended, modified or changed except by an instrument in writing executed by the party to be charged. The invalidity or partial invalidity of one or more provisions of this Agreement shall not invalidate any other provision of this Agreement. No waiver by either party of any provision or condition to be performed shall be deemed a waiver of similar or dissimilar provisions or conditions at the same time or any prior or subsequent time. 

(d)               This Agreement shall inure to the benefit of, be binding upon and enforceable against, the parties hereto and their respective successors, heirs, beneficiaries and permitted assigns.

(e)               The headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.

(f)                All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when personally delivered, sent by registered or certified mail, return receipt requested, postage prepaid, or by private overnight mail service (e.g. Federal Express) to the party at the address set forth above or to such other address as either party may hereafter give notice of in accordance with the provisions hereof. Notices shall be deemed given on the sooner of the date actually received or the third business day after sending.

(g)               This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to such State’s conflicts of laws provisions and each of the parties hereto irrevocably consents to the jurisdiction and venue of the federal and state courts located in the State of Delaware.

(h)               This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one of the same instrument. The parties hereto have executed this Agreement as of the date set forth above.

 

	
CORPORATION:

	
EXECUTIVE:

	
 

	
 

	
HEALTH BENEFITS DIRECT CORPORATION

	
ALVIN CLEMENS

	
 

	
 

	
 

	
 

	
By: 

	
/s/ Scott Frohman

	
 

	/s/ Alvin Clemens
	
 

	
Name:

	
Scott Frohman

	
Title:

	
Chief Executive Officer

					

 

 

7

 

 

 

Exhibit A 

 

Executive shall be responsible to manage the following areas of the business, subject to separate approval of any material transactions or expenditures (other than transactions and expenditures approved by the Board of Directors and authorized pursuant to management budgets and forecasts submitted by management and the various operating companies as to which Executive shall not have separate authority or discretion). For purposes hereof, a material transaction or expenditure shall include transactions with a cost to the company in excess of $100,000 individually or in the aggregate, or related costs in excess of $100,000 over a consecutive twelve month period, which shall require Board approval (other than routine ordinary course expenditures, such as commissions, incurred).

 

Discussions, negotiations, preparation of term sheets, proposals, and other documentation relating to any of the following:

 

	
1.

	
Acquisitions;

	
 

	
2.

	
Mergers;

	
 

	
3.

	
Agreements with or for re-insurance and related agreements;

	
 

	
4.

	
Primary carrier agreements;

	
 

	
5.

	
Strategic alliances of any nature;

	
 

	
6.

	
Commercial banking relationships;

	
 

	
7.

	
Investment banking relationships, including any relationship with finders or other contact persons engaged in investigating or providing capital;

	
 

	
8.

	
Investor Relations;

	
 

	
9.

	
Long-range strategic planning;

	
 

	
10.

	
Holding company short-term investments, cash management, and financial review; and

	
11.

	
Duties associated with responsibilities as Chairman of the Board of Directors.

	
 

												

 

These duties may be increased or changes only with the express written authority of the Executive and the Board of Directors, or its express designee.

 

 

 

8

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