Document:

Employment Agreement

 Exhibit 10.4 
  

			
	

	  	3801 West Hillsboro Boulevard * Deerfield Beach * Florida * 33442 * 954.360.9022

 VIA HAND DELIVERY 
 May 18, 2006 
 Mr. Stephen J. Rattner 
 RE: Terms of Employment Between eDiets.com, Inc. and Stephen J. Rattner

 Dear Mr. Rattner: 
 This will serve to confirm the terms of your employment with eDiets.com, Inc. and all affiliates of eDiets.com, Inc. (“EDI,” “We” or “Us). 
  

	 	1.	Term. Subject to the following terms and conditions, this Agreement is effective as of May 18, 2006 and will continue for twenty four (24) months thereafter unless
terminated at the option of the parties and pursuant to the terms expressed below. 

  

	 	2.	Duties. You are employed as President of the Nutrio division of eDiets.com, Inc. (the “Division”), reporting to the Chief Executive Officer of EDI, and shall have
executive management and day to day operational control of the business conducted by the Division, including without limitation, authority and control over capital expenditures, expenses and human resources, to the extent within the parameters and
the budgetary constraints of the Operating Plan (defined herein) and consistent with then current EDI management and spending policies, as well as such other duties consistent with such position as it relates to the Division, as may be assigned to
you from time to time by the Board of Directors (the “Board”). In the event of Nonperformance, as defined herein, EDI may reduce or limit your authority described above or may reassign or demote you, and such action by EDI shall not be
deemed a breach by EDI of this Agreement or constitute “good reason” for you to terminate your employment hereunder. Unless approved in writing by EDI’s Chief Financial Officer or EDI’s Chief Financial Officer’s designee,
you shall not directly or indirectly engage any third party for the purpose of outsourcing work or services other than in accordance with the Operating Plan. You shall not engage directly or indirectly in any activity or business transaction for
yourself, or any other person, whether or not for remuneration, which will adversely affect your ability to discharge your employment duties and responsibilities to EDI. 

  

	 	3.	Management and Future Investment in the Business. The parties acknowledge that you have prepared a budget that will form the basis of an operating plan for the Division (the
“Operating Plan”) to which the parties will agree and prepare as soon as practicable after execution of this Agreement. The Operating Plan will include budgeted expenses on a line-item basis, projected revenues and projected EBITDA of not
more than 60% of the EBITDA targets in the Earn Out plan as set forth in Exhibit F-1 to the Merger Agreement dated as of May 15, 2006 by and among EDI, Nutrio Acquisition Corp., Nutrio.com, Inc., the Stockholders’ Representative and the
Principal Stockholders (as amended, the “Merger Agreement”). The Operating Plan will also include marketing and strategic goals for each Measurement Year (as defined in the Merger Agreement). Subject to meeting the EBITDA targets set forth
in the respective year’s Operating Plan and adhering to the budgetary constraints contained therein, you will retain the duties set forth in Section 2 of this Agreement. The parties acknowledge that operation of the Division will be
in accordance with the then current Operating Plan and will be critical to your ability to achieve and earn the Earn Out Payments pursuant to the Merger Agreement. 

  

	 	4.	Nonperformance. “Nonperformance” means the failure of the Division to achieve 60% of the EBITDA target contained in the Earn Out Plan set forth in Exhibit F-1 to
the Merger Agreement in any Measurement Year (as defined in the Merger Agreement). 

	 	5.	Compensation and Benefits. Your “Base Salary” will be no less than $240,000 per year, and shall be reviewed at least annually in January of each year during the
term of your employment. You will be entitled to not less than 216 hours of “PTO,” excluding holidays, per year, and your other benefits will be provided at levels not less than those provided to similarly situated executive officers of
the Company. You may be paid a bonus in the discretion of the Board of Directors which will be in a form and amount comparable to similarly situated executive officers of the Company. 

  

	 	6.	Performance of Duties. During the term of your employment, you shall devote your full working time, ability and attention to the business of EDI. 

  

	 	7.	Equity Compensation. You will receive a non-incentive stock option, an incentive stock option, restricted stock grant, SAR, or some other form of equity compensation which
shall be comparable to that which is provided to similarly situated executive officers of the Company during the term of this Agreement (the “Option”) under our Equity Compensation Plan(s) in effect from time to time (the
“Plan”). The Option, and any other options granted by us to you, shall have such terms as are required by the Plan and which may be implemented by the Board but, notwithstanding, shall fully vest upon a termination of your employment by us
without “cause” or by you for “good reason,” or upon a “Change of Control,” death or disability. In the event of a conflict between the terms this Agreement and the terms of the Plan or any equity compensation agreement
pursuant thereto, the terms of this Agreement shall control. 

  

	 	8.	“Change of Control.” A “Change of Control” shall be deemed to have occurred if (1) there shall be consummated (a) any consolidation or merger of
EDI in which EDI is not the continuing or surviving corporation or pursuant to which shares of EDI’s Common Stock would be converted into cash, securities or other property, other than a merger of EDI in which the holders of EDI’s Common
Stock immediately prior to the merger continue to control the surviving corporation immediately after the merger and other than a merger of EDI with an affiliate of EDI, or (b) any sale, lease, exchange or other transfer (in one transaction or
a series of related transactions) of all, or substantially all, of the assets of EDI, or (2) the shareholders of EDI approve any plan or proposal for the liquidation or dissolution of EDI or (3) any person (as such term is used in Sections
13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), shall become the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of 80% or more of the combined voting power of
EDI’s outstanding voting securities. The employment terms expressed in this letter shall survive a change of control. 

  

	 	9.	Termination by EDI for Cause. We may terminate your employment “for cause” at any time. As used herein, for “cause” shall mean any one of the following:

  

	 	a.	The willful breach or habitual neglect by you of your job duties and responsibilities; or 

  

	 	b.	Conviction of any felony, excluding minor traffic offenses; or 

  

	 	c.	Commission of an act of fraud, embezzlement or material misappropriation or dishonesty against EDI or any of EDI’s affiliates; or 

  

	 	d.	Commission of a serious violation of any of EDI’s personnel policies, including but not limited to violations of EDI’s policies against any form of harassment; or

  

	 	e.	A breach of Section 13 or 14 of this Agreement. 

 With
regard to sub-paragraphs “a” and “d” above, the notice of termination will be delivered to you in writing and you shall have ten (10) calendar days from the date thereof to cure the basis for the notice of termination. In
the event we terminate your employment for cause, your Base Salary, incentive compensation, benefits, and the unexercised portion of the Option (and any other stock options) shall automatically terminate as of the effective date of such termination.

  

	 	10.	Termination by EDI Without Cause or by You for Good Reason or Upon a Change of Control. We may terminate your employment without cause at any time upon 30 days’ prior
written notice to you. You shall have the right to terminate this Agreement at any time for “good reason” or upon a change of control. “Good reason” means the occurrence of any of the following without your prior written consent
(which is not cured within 30 days of your written notice being received by EDI specifying the grounds for “good reason”: (i) the assignment to you of duties and responsibilities that are unethical, illegal or inconsistent, in a
material and adverse respect, with the scope of the duties and responsibilities usually vested in similarly situated 

  

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 executives other than as a result of “cause” or Nonperformance; (ii) a material reduction
in the benefits payable to you; a material modification or change in your job duties or responsibilities other than as a result of “cause” or Nonperformance; or (iii) a requirement that you perform your primary duties at a location
outside of Broward and Palm Beach Counties in the state of Florida, USA. We shall pay to you on the date of termination without cause or for good reason a severance allowance of an amount equal to Six (6) months’ Base Salary, plus one
(1) month for each year of service to EDI at your then-effective rate, plus all accrued but unpaid allowances, expense reimbursements, bonuses, and commissions. We shall pay to you on the date of termination for a change in control a severance
allowance of an amount equal to twelve (12) months’ Base Salary at your then effective rate. Upon termination by EDI without cause or by you for good reason or upon change of control, we will reimburse you for expenses relating to the
extension of health benefits under COBRA for a period of six (6) months after termination. Additionally, and subject to the terms of any unvested shares under the Option (and any other Stock Options granted under the Plan) shall vest
immediately and shall be exercisable by you for sixty (60) days following the date of termination upon change of control or for twelve (12) months following the date of termination by EDI without cause or by you for good reason.
Furthermore, upon termination of your employment by EDI without cause or by you for good reason or upon change of control, (x) if such termination occurs prior to the end of the first Measurement Year, the EBITDA targets for the first and
second Measurement Years in the Earn Out plan set forth in Exhibit F-1 to the Merger Agreement will be deemed to have been 100% met and the Earn Out Payments in respect of such Measurement Years will be made pursuant to the schedule set forth
therein (subject to any offsets expressly permitted under the Merger Agreement) and (y) if such termination occurs after the first Measurement Year but prior to the end of the second Measurement Year, the EBITDA targets for the second
Measurement Year in the Earn Out plan set forth in Exhibit F-1 to the Merger Agreement will be deemed to have been 100% met and the Earn Out Payment in respect of such Measurement Year will be made pursuant to the schedule set forth therein (subject
to any offsets expressly permitted under the Merger Agreement). 
  

	 	11.	Termination by You Without Good Reason. You may terminate your employment without good reason upon 30 days’ prior written notice to the Company. In such a case, you may
be required to perform your business duties and shall be paid your regular salary up to the date of the termination. At our option, we may require you to depart upon receiving the 30 days’ notice. In this event, we shall pay you an amount equal
to 30 calendar days of your Base Salary at the then-effective rate and all accrued but unpaid allowances and expense reimbursements, and you shall not be entitled to receive any other compensation or severance allowance. Any unexercised and unvested
shares granted pursuant to the Option (and any other stock options granted under the Plan) shall be exercisable in accordance with the terms thereof. 

  

	 	12.	Death or Disability. In the event of your death, your employment and your future Base Salary, incentive compensation and benefits shall automatically terminate, except for
(a) any vested but unexercised portion of the Option (and any other stock options granted under the Plan), which shall be exercisable in accordance with the terms thereof, and (b) accrued but unpaid allowances and expense reimbursements
and applicable death benefits, if any. If you become unable to perform your duties because of a “disability” we may terminate your employment. In this event, we will pay your unpaid Base Salary, accrued but unpaid allowances, expense
reimbursements, and incentive compensation from the date of your first absence from work due to your disability through the third month following the date of termination, less disability benefits received through our benefit plan. Your option shall
terminate except for any vested but unexercised portion thereof (and any other stock options granted under the Plan). “Disability” means an incapacity due to physical or mental illness, that causes you to be absent from your duties on a
full-time basis for three consecutive months, or for an aggregate of six months in any consecutive 12-month period, and a physician selected by us concludes that (A) you are suffering from “total disability” as defined in the our
disability insurance policy and (B) within 30 days after written notice thereof is given by the Company to you, you have not returned to work on a full time basis. For the avoidance of doubt, termination of your employment by reason of
disability or death shall not constitute termination of your employment by EDI without cause or termination by you for good reason. 

  

	 	13.	Agreement not to Disclose Trade Secrets or Confidential Information. Upon the effective date of this Agreement and until two years after its termination, you shall not
disclose or utilize any trade secrets, confidential information, or other proprietary information acquired by you during the course of your service with EDI (or Nutrio.com, Inc. or its predecessors prior to the date hereof). As used herein,
“trade secret” 

  

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 means the whole or any portion or phase of any formula, pattern, device, combination of devices,
source-code of any proprietary software, or compilation of any scientific, technical or commercial information, including any design, list of suppliers, list of customers or improvement thereof, as well as pricing information or methodology,
contractual arrangements with vendors or suppliers, business development plans or activities, or financial information of EDI that is for use, or is used, in the operation of EDI’s businesses that is not commonly known by or available to the
public and that derives economic value from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use and is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy. You agree to return to EDI any and all such trade secrets, confidential information or other proprietary information immediately upon the termination of this Agreement. 
  

	 	14.	Covenant not to Compete. Upon the effective date of this Agreement and until two (2) years after its termination (the “Restricted Period”), you covenant
and agree that you shall not, directly or indirectly, (i) be, or become interested in, associated with or represent, or otherwise render assistance or services to, or manage, operate, control or engage in (as an officer, director, stockholder,
partner, member, consultant, owner, employee, agent, creditor or otherwise), any business or person that is then, or which then proposes to become, a competitor of EDI in the areas of online health, wellness, diet or fitness plans; provided
that, the foregoing shall not restrict you from the collective ownership, solely as a passive investment, of securities of any business or person if such ownership is (x) not as a controlling person of such business or person, (y) not
as a member of a group that controls such business or person and (z) not as a direct or indirect beneficial owner of 5% or more of any class of securities of such business or person; (ii) induce or seek to influence any employee of EDI to
terminate his or her employment or to become financially interested in a competing business; (iii) aid a competitor of EDI in any attempt to hire a person who shall have been employed by EDI within the one-year period preceding the date of any
such aid; (iv) induce or seek to influence any customer of EDI to transact business with a competitor of or not to do business with EDI; or (v) take any actions for the purpose of interfering with any other business relationships that EDI
has with any other person. The Restricted Period shall be extended by the length of time during which you are in breach of the provisions of this Section 14. For the avoidance of doubt, all references to EDI in Section 13 and 14 shall
include its subsidiaries, divisions and affiliates (including, without limitation, the Division). 

 You acknowledge that the
Restricted Period contained in Section 14 is reasonable under the circumstances. Moreover, it is the desire and intent of the parties that the provisions of Section 14 be enforceable to the fullest extent permissible under the laws and
public policies applied in each jurisdiction in which enforcement is sought. Accordingly, the parties agree that if a governmental authority determines subsequently that the terms of Section 14 are unenforceable, the parties will request that
such governmental authority reform the terms by specifying the greatest time period and/or geographic area that would not render the terms unenforceable. You specifically agree that, in the event of a breach or threatened breach of Section 14,
EDI would suffer irreparable injury and damages at law would be an insufficient remedy, and EDI shall be entitled to seek equitable relief by way of temporary or permanent injunction (or any other equitable remedies), without proof of actual damages
and without the need to post bond or other security. 
  

	 	15.	Indemnification. You shall be entitled to indemnification from EDI to the fullest extent permitted under the EDI’s then-current Articles of Incorporation and Bylaws and
under the law of the state of Delaware. We shall use our reasonable best efforts to obtain coverage for you under any insurance policy obtained during the term of this Agreement that covers the officers and directors of EDI against liability in
connection with their service to EDI. Notwithstanding the foregoing, nothing in this Section 15 is meant to limit your indemnification obligations under the Merger Agreement or the Escrow Agreement (as defined in the Merger Agreement).

  

	 	16.	Attorney Fees. In any action brought to enforce this contract or any provision of this contract, to rescind the contract, to collect damages for an alleged breach of the
contract, or for a declaratory judgment under the terms of the contract, the prevailing party in any such action, whether plaintiff or defendant, shall be entitled to an allowance for reasonable attorney fees and costs. 

  

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	 	17.	Governing Law. This Agreement and the rights and obligations hereunder shall be governed by the laws of the State of Florida and the parties to this Agreement specifically
consent to the jurisdiction of the courts of the State of Florida over any action arising out of or related to this Agreement. 

  

	
	Very Truly Yours,
	
	 /s/ Robert T. Hamilton

	Robert T. Hamilton,
	Interim Chief Executive Officer

  

			
	Agreed:	 	
		
	BY:	 	 /s/ Stephen Rattner

	PRINT NAME:	 	 Stephen Rattner

	DATE:	 	 May 18, 2006

  

 - 5 -Employee Retention Agreement, dated as of May 23, 2006

 EXHIBIT 10.1 
 EMPLOYEE RETENTION AGREEMENT 
 AGREEMENT by and between Hooper Holmes, Inc., a New York
corporation (the “Company”), and Michael Shea (the “Employee”), dated as of the 23rd day of May, 2006. 
 The Board of
Directors of the Company (the “Board”), has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have the continued dedication of the Employee, notwithstanding the possibility,
threat, or occurrence of a Change in Control (as defined below) of the Company. The Board believes it is imperative to diminish the inevitable distraction of the Employee by virtue of the personal uncertainties and risks created by a pending or
threatened Change in Control, to encourage the Employee’s full attention and dedication to the Company currently and in the event of any threatened or pending Change in Control, and to provide the Employee with compensation arrangements upon a
financial security and which are competitive with those of other corporations and, in order to accomplish these objectives, the Board has caused the Company to enter into this Agreement. 
 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 
 1. Certain Definitions. 
 (a) Effective Date. The “Effective Date”
shall be the first date during the “Change in Control Period” (as defined in Section 1(b)) on which a Change in Control occurs. Anything in this Agreement to the contrary notwithstanding, if the Employee’s employment with the
Company is terminated prior to the date on which a Change in Control occurs, and it is reasonably demonstrated that such termination (1) was at the request of a third party who has taken steps reasonably calculated to effect a Change in Control
or (2) otherwise arose in connection with or anticipation of a Change in Control, then for all purposes of this Agreement the “Effective Date” shall mean the date immediately prior to the date of such termination. 
 (b) Change in Control Period. The “Change in Control Period” is the period commencing on the date hereof and ending on the second
anniversary of such date; provided, however , that commencing on the date one year after the date hereof, and on each annual anniversary of such date (such date and each annual anniversary thereof is hereinafter referred to as the
“Renewal Date”), the Change in Control Period shall be automatically extended so as to terminate two years from such Renewal Date, unless at least 60 days prior to the Renewal Date the Company shall give notice to the Employee that the
Change in Control Period shall not be so extended. 
 (c) Change in Control. A “Change in Control” shall occur or be
deemed to have occurred only if any of the following events occur (i) any “person”, 

 as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), (other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any corporation owned directly or indirectly by the stockholders of the Company in substantially the same
proportion as their ownership of stock of the Company) is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the
combined voting power of the Company’s then outstanding securities (other than as a result of acquisitions of such securities from the Company); (ii) individuals who, as of the date hereof, constitute the Board (as of the date hereof the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s
shareholders was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened
election contest as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act relating to the election of the Directors of the Company) shall be, for purposes of this Agreement, considered as though such person were a
member of the Incumbent Board; (iii) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than (A) a merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the
Company or such surviving entity outstanding immediately after such merger or consolidation or (B) a merger or consolidation effected to implement a re-capitalization of the Company (or similar transaction) in which no “person” (as
hereinabove defined) acquires more than 20% of the combined voting power of the Company’s then outstanding securities; or (iv) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the
sale or disposition by the Company of all or substantially all of the Company’s assets. 
 2. Employment Period. The
Company hereby agrees to continue the Employee in its employ, and, subject to Section 4(c), the Employee hereby agrees to remain in the employ of the Company, for the period commencing on the Effective Date and ending on the first anniversary
of such date (the “Employment Period”). 
 3. Terms of Employment. 
 (a) Position and Duties. 
 (i)
During the Employment Period, (A) the Employee’s position (including status, offices, titles and reporting requirements), authority, duties and responsibilities shall be at least commensurate in all material respects with the most
significant of those held, exercised and assigned at any time during the 90-day period immediately preceding the Effective Date and (B) the Employee’s 
  

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 services shall be performed at the location where the Employee was employed immediately preceding the Effective Date or
any office or location less than 25 miles from such location and less than 10 miles in commuting distance further than the Employee’s commuting distance to the location at which the Employee performed such services prior to the Change in
Control. 
 (ii) During the Employment Period, and excluding any periods of vacation and sick leave to which the Employee is entitled, the
Employee agrees to devote reasonable attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Employee hereunder, to use the
Employee’s reasonable best efforts to perform faithfully and efficiently such responsibilities. During the Employment Period it shall not be a violation of this Agreement for the Employee to (A) serve on corporate, civic or charitable
boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions and (C) manage personal investments, so long as such activities do not significantly interfere with the performance of the
Employee’s responsibilities as an employee of the Company in accordance with this Agreement. It is expressly understood and agreed that to the extent that any such activities have been conducted by the Employee prior to the Effective Date, the
continued conduct of such activities (or the conduct of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the Employee’s responsibilities to the
Company. 
 (b) Compensation. 
 (i) Base Salary. During the Employment Period, the Employee shall receive a base salary (“Base Salary”) payable no less frequently than semi-monthly at a monthly rate at least equal to the
highest monthly base salary paid or payable to the Employee by the Company during the twelve-month period immediately preceding the month in which the Effective Date occurs. 
 (ii) Annual Bonus. In addition to Base Salary, the Employee shall be awarded, for each fiscal year ending during the Employment Period, an
annual bonus (an “Annual Bonus”) in cash at least equal to the greater of the guaranteed bonus to which the Employee is entitled under any contractual arrangements between the Employee and the Company as of the date hereof or the
highest bonus which the Employee received during the three (3) years preceding the Effective Date. 
 (iii) Incentive, Savings
and Retirement Plans. During the Employment Period, in addition to Base Salary and Annual Bonus payable as hereinabove provided, the Employee shall be entitled to participate in the Company provided incentive, savings and retirement plans,
practices, policies and programs applicable to other key employees of the Company and its subsidiaries (including the Company’s employee benefit plans, in each case providing benefits which are the economic equivalent to those in effect or as
subsequently amended). Such plans, practices, policies and programs, in the aggregate, shall provide the 
  

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 Employee with compensation, benefits and reward opportunities at least as favorable as the most favorable of such
compensation, benefits and reward opportunities provided by the Company for the Employee under such plans, practices, policies and programs as in effect at any time during the 90-day period immediately preceding the Effective Date or, if more
favorable to the Employee, as provided at any time during the Employment Period with respect to other key employees of the Company. 
 (iv)
Welfare Benefit Plans. During the Employment Period, the Employee and/or the Employee’s family, as the case may be, shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices,
policies and programs provided by the Company (including, without limitation, medical, prescription, dental, disability, salary continuance, employee life, group life, accidental death and travel accident insurance plans and programs), at least as
favorable as the most favorable of such plans, practices, policies and programs in effect at any time during the 90-day period immediately preceding the Effective Date or, if more favorable to the Employee and/or the Employee’s family, as in
effect at any time during the Employment Period with respect to other key employees of the Company. 
 (v) Expenses. During
the Employment Period, the Employee shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Employee in accordance with the most favorable policies, practices and procedures of the Company in effect at any time
during the 90-day period immediately preceding the Effective Date or, if more favorable to the Employee, as in effect at any time during the Employment Period with respect to other key employees of the Company. 
 (vi) Fringe Benefits. During the Employment Period, the Employee shall be entitled to fringe benefits and perquisites in accordance with
the most favorable plans, practices, programs and policies of the Company in effect at any time during the 90-day period immediately preceding the Effective date or, if more favorable to the Employee, as in effect at any time during the Employment
Period with respect to other key employees of the Company. 
 (vii) Office and Support Staff. During the Employment Period,
the Employee shall be entitled to an office or offices of a size and with furnishings and other appointments, and to secretarial and other assistance, at least equal to the most favorable of the foregoing provided to the Employee by the Company at
any time during the 90-day period immediately preceding the Effective Date or, if more favorable to the Employee, as provided at any time during the Employment Period with respect to other key employees of the Company. 
 (viii) Vacation. During the Employment Period, the Employee shall be entitled to paid vacation in accordance with the most favorable
plans, policies, programs and practices of the Company as in effect at any time during the 90-day period immediately preceding the Effective Date or, if more favorable to the Employee, as in effect at any time during the Employment Period with
respect to other key employees of the Company. 
  

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 4. Termination. 
 (a) Death or Disability. This Agreement shall terminate automatically upon the Employee’s death during the Employment Period. If during
the Employment Period, as a result of incapacity due to physical or mental illness which is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Employee or the Employee’s legal
representative, the Employee shall have been absent from the full-time performance of the Employee’s duties with the Company for six (6) consecutive months and, within thirty (30) days after written notice of termination is given to
the Employee, the Employee shall not have returned to the full-time performance of the Employee’s duties, the Employee’s employment may be terminated for “Disability”. Any termination for Disability under this Agreement shall not
affect any rights the Employee may otherwise have under the Company’s Long-Term Disability Plan. If the Company determines in good faith that the Disability of the Employee has occurred (pursuant to the definition of “Disability” set
forth above), it may give to the Employee written notice of its intention to terminate the Employee’s employment. In such event, the Employee’s employment with the Company shall terminate effective on the 30th day after receipt of such
notice by the Employee (the “Disability Effective Date”), provided that, within the 30 days after such receipt, the Employee shall not have returned to full-time performance of the Employee’s duties. 
 (b) Cause. The Company may terminate the Employee’s employment during the Employment Period for “Cause”. For purposes of
this Agreement, “Cause” shall mean termination (A) upon the Employee’s willful and continued failure to substantially perform the Employee’s duties with the Company (other than any such failure resulting from the
Employee’s incapacity due to physical or mental illness or any such actual or anticipated failure after the issuance of a Notice of Termination by the Employee), provided that a written demand for substantial performance has been delivered to
the Employee by the Company specifically identifying the manner in which the Company believes that the Employee has not substantially performed the Employee’s duties and the Employee has not cured such failure within 30 days after such demand,
or (B) by reason of the Employee’s willful engaging in conduct which is demonstrably and materially injurious to the Company, or (C) the Employee’s willful violation of any material provision of any confidentiality,
nondisclosure, non-competition or similar agreement entered into by the employee in connection with the Employee’s employment by the Company. For purposes of this paragraph, no act or failure to act on the Employee’s part shall be deemed
“willful” unless done or omitted to be done by the Employee not in good faith and without reasonable belief that the Employee’s action or omission was in the best interest of the Company. 
 (c) Termination by Employee. The Employee may terminate his employment with he Company (i) in the event of a breach of this Agreement
by the 
  

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 Company, or (ii) during the Window Period for any reason. For purposes of this Agreement, the term “Window
Period” shall mean the thirty (30) day period immediately following the nine (9) month anniversary of the Effective Date. 
 (d) Notice of Termination. Any termination by the Company for Cause or by the Employee for any reason shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 12(b) of this
Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination for the Employee’s employment under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the
termination date (which date shall be not more than fifteen (15) days after the giving of such notice). 
 (e) Date of
Termination. “Date of Termination” means the date of receipt of the Notice of Termination or any later date specified therein, as the case may be; provided , however , that (i) if the Employee’s employment
is terminated by the Company other than for Cause or Disability, the Date of Termination shall be the date on which the Company notifies the Employee of such termination and (ii) if the Employee’s employment is terminated by reason of
death or Disability, the Date of Termination shall be the date of death of the Employee or the Disability Effective Date, as the case may be. 
 5. Obligations of the Company Upon Termination. 
 (a) Death. If, during the Employment Period, the
Employee’s employment is terminated by reason of the Employee’s death, this Agreement shall terminate without further obligations to the Employee’s legal representatives under this Agreement, other than those obligations accrued or
earned and vested (if applicable) by the Employee as of the Date of Termination, including, for this purpose (i) the Employee’s full Base Salary through the Date of Termination at the rate in effect on the Date of Termination or, if
higher, at the highest rate in effect at any time from the 90-day period preceding the Effective Date through the Date of Termination (the “Highest Base Salary”), (ii) the product of the Annual Bonus paid to the Employee for the last
full fiscal year and a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which is 365 and (iii) any compensation previously deferred by the Employee
(together with any accrued interest thereon) and not yet paid by the Company and any accrued vacation pay not yet paid by the Company (such amounts specified in clause (i), (ii) and (iii) are hereinafter referred to as “Accrued
Obligations”). All such Accrued Obligations shall be paid to the Employee’s estate or beneficiary, as applicable, in a lump sum in cash within 30 days of the Date of Termination. Anything in this Agreement to the contrary notwithstanding,
the Employee’s family shall be entitled to receive benefits at least equal to the most favorable benefits provided by the Company to surviving families of employees of 
  

 6 

 the Company under such plans, programs, practices and policies relating to family death benefits, if any, in accordance
with the most favorable plans, programs, practices and policies of the Company in effect at any time during the 90-day period immediately preceding the Effective Date or, if more favorable to the Employee and/or the Employee’s family, as in
effect at any time during the Employment Period with respect to other key employees of the Company and their families. 
 (b)
Disability. If, during the Employment Period, the Employee’s employment is terminated by reason of the Employee’s Disability, this Agreement shall terminate without further obligations to the Employee, other than those
obligations accrued or earned and vested (if applicable) by the Employee as of the Date of Termination, including for this purpose, all Accrued Obligations. All such Accrued Obligations shall be paid to the Employee in a lump sum in cash within 30
days of the Date of Termination. Anything in this Agreement to the contrary notwithstanding, the Employee shall be entitled after the Disability Effective Date to receive disability and other benefits at least equal to the most favorable of those
provided by the Company to disabled employees and/or their families in accordance with such plans, programs, practices and policies relating to disability, if any, in accordance with the most favorable plans, programs, practices and policies of the
Company in effect at any time during the 90-day period immediately preceding the Effective Date or, if more favorable to the Employee and/or the Employee’s family, as in effect at any time during the Employment Period with respect to other key
employees of the Company and their families. 
 (c) Cause. If, during the Employment Period, the Employee’s employment
shall be terminated for Cause, this Agreement shall terminate without further obligations to the Employee other than the obligation to pay to the Employee the Highest Base Salary through the Date of Termination plus the amount of any accrued
vacation pay and any compensation previously deferred by the Employee (together with accrued interest thereon). 
 (d) Other Than for
Cause, Death or Disability. If, during the Employment Period, the Company shall terminate the Employee’s employment other than for Cause, Disability or Death, or if the Employee shall terminate his employment for any reason: 

(i) the Company shall pay to the Employee in a lump sum in cash within 30 days after the Date of Termination the aggregate of the following amounts:

  

	 	A.	to the extent not theretofore paid, the Employee’s Highest Base Salary through the Date of Termination; and 

  

	 	B.	the product of (x) the Annual Bonus paid or payable to the Employee for the last full fiscal year (if any) ending during the Employment Period or, if 

 

 7 

 higher, the Annual Bonus paid to the Employee for the last full fiscal year prior to the Effective Date
(as applicable, the “Recent Bonus”) and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination and the denominator of which is 365; and 
  

	 	C.	the product of (x) two and (y) the sum of (i) the Highest Base Salary and (ii) the Recent Bonus; and 

  

	 	D.	in the case of compensation previously deferred by the Employee, all amounts previously deferred (together with any accrued interest thereon) and not yet paid by the Company, and
any accrued vacation pay not yet paid by the Company; and 

 (ii) for the remainder of the Employment Period, or such longer
period as any plan, program, practice or policy may provide, the Company shall continue benefits to the Employee and/or the Employee’s family at least equal to those which would have been provided to them in accordance with the plans, programs,
practices and policies described in Section 3 (b) (iv) of this Agreement if the Employee’s employment had not been terminated, including medical and dental insurance and life insurance, in accordance with the most favorable
plans, practices, programs or policies of the Company during the 90-day period immediately preceding the Effective Date or, if more favorable to the Employee, as in effect at any time during the Employment Period with respect to other key employees
and their families and for purposes of eligibility for retiree benefits pursuant to such plans, practices, programs and policies, the Employee shall be considered to have remained employed until the end of the Employment Period and to have retired
on the last day of such period. 
 6. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the
Employee’s continuing or future participation in any benefit, bonus, incentive or other plans, programs, policies or practices, provided by the Company or any of its subsidiaries and for which the Employee may qualify, nor shall anything herein
limit or otherwise affect such rights as the Employee may have under any stock option or other agreements with the Company or any of its subsidiaries. Amounts which are vested benefits or which the Employee is otherwise entitled to receive under any
plan, policy, practice or program of the Company or any of its subsidiaries at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program. 
 7. Full Settlement. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Employee or others. 
  

 8 

 In no event shall the Employee be obligated to seek other amounts payable to the Employee under any of the provisions of
this Agreement. 
 8. Enforcement of Rights. 
 (a) The parties shall endeavor to resolve any dispute arising out of, or relating to, this Agreement by mediation under the CPR Mediation Procedure for Business Disputes. Unless the parties agree otherwise, the
mediator will be selected from the CPR Panel of Neutrals with notification to CPR. Any controversy or claim arising out of or relating to this contract or the breach, termination or validity thereof, which remains unresolved 45 days after
appointment of a mediator, shall be settled by arbitration by a sole arbitrator in accordance with the CPR Non-administered Arbitration Rules, and judgment upon the award rendered by the arbitrator may be entered by any court having jurisdiction
thereof. 
 (b) The Company shall pay to the Employee all legal fees and expenses incurred by the Employee as a result of any dispute under
this Agreement (including all such fees and expenses, if any, incurred in contesting or disputing any such termination or in seeking to obtain or enforce any right or benefit provided by this Agreement or in connection with any tax audit or
proceeding to the extent attributable to the application of Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) to any payment or benefit provided hereunder). 
 9. Certain Additional Payments by the Company. 
 (a) Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment (including any “parachute payment” within the meaning of Section 280G(b) of the Code)
or distribution by the Company to or for the benefit of the Employee, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would be subject to the excise tax imposed by
Section 4999 of the Code, or any interest or penalties are incurred by the Employee with respect to such excise tax (such excise tax, together with any such interest and penalties are hereinafter collectively referred to as the “Excise
Tax”), then the Employee shall be entitled to receive an additional payment under this Agreement (a “Gross-Up Payment”) in an amount such that after payment by the Employee of all taxes (including any interest or penalties imposed
with respect to such taxes), including any Excise Tax, imposed upon the Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. 
 (b) Subject to the provisions of Section 9(c), all determinations required to be made under this Section 9, including whether a Gross-Up
Payment is required and the amount of such Gross-Up Payment, shall be made by KPMG LLP, or such other public accounting firm chosen by the Audit Committee of the Board as the Company’s independent accountants, (the “Accounting Firm”)
which shall provide detailed supporting calculations both to the Company and the Employee 
  

 9 

 within fifteen business days of the Date of Termination, if applicable, or such earlier time as is requested by the
Company. The initial Gross-Up Payment, if any, as determined pursuant to this Section 9(b), shall be paid to the Employee within five days of the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no
Excise Tax is payable by the Employee, it shall furnish the Employee with an opinion that failure to report the Excise Tax on the Employee’s applicable federal income tax return would not result in the imposition of an accuracy-related penalty
under Section 6662 of the Code or any other penalty. Any determination by the Accounting Firm shall be binding upon the Company and the Employee. As a result of the uncertainty in the application of Section 4999 of the Code at the time of
the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (“Underpayment”), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to Section 9(c) and the Employee thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has
occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Employee. All fees and expenses of the Accounting Firm shall be paid by the Company. 
 (c) The Employee shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the
Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten business days after the Employee knows of such claim and shall apprise the Company of the nature of such claim and the date on which such
claim is requested to be paid. The Employee shall not pay such claim prior to the expiration of the 30-day period following the date on which the Employee gives such notice to the Company (or such shorter period ending on the date that any payment
of taxes with respect to such claim is due). If the Company notifies the Employee in writing prior to the expiration of such period that it desires to contest such claim, the Employee shall: 
 (i) give the Company any information reasonably requested by the Company relating to such claim, 
 (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without
limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company, 
 (iii) cooperate
with the Company in good faith in order to effectively contest such claim, 
 (iv) permit the Company to participate in any proceedings
relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the Employee harmless,
on an after-tax basis, for any Excise Tax or income or employment tax, 
  

 10 

 including interest and penalties with respect thereto, imposed as a result of such representation and payment of costs
and expenses. Without limitation on the foregoing provisions of this Section 9(c), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forgo any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct the Employee to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Employee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs
the Employee to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Employee, on an interest-free basis and shall indemnify and hold the Employee harmless, on an after-tax basis, from any Excise Tax or
income or employment tax, including interest or penalties with respect thereto, imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with
respect to which a Gross-Up Payment would be payable hereunder and the Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
 (d) If, after the receipt by the Employee of an amount advanced by the Company pursuant to Section 9(c), the Employee becomes entitled to receive
any refund with respect to such claim, the Employee shall (subject to the Company’s complying with the requirements of Section 9(c) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Employee of an amount advanced by the Company pursuant to Section 9(c), a determination is made that the Employee shall not be entitled to any refund with respect to such claim and
the Company does not notify the Employee in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount
of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 
 10. Confidential
Information. The Employee shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or any of its subsidiaries, and their respective businesses, which
shall have been obtained by the Employee during the Employee’s employment by the Company or any of its subsidiaries and which shall not be or become public knowledge (other than by acts by the Employee of his representatives in violation of
this Agreement). After termination of the Employee’s employment with the Company, the Employee shall not, without the prior written consent of the Company, or as may otherwise be required by law, communicate or divulge any such information,
knowledge or data to anyone other than the 
  

 11 

 Company and those designated by it. In no event shall an asserted violation of the provisions of this Section 10
constitute a basis for deferring or withholding any amounts otherwise payable to the Employee under this Agreement. 
 11.
Successors. 
 (a) This Agreement is personal to the Employee and without the prior written consent of the Company shall not be
assignable by the Employee otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Employee’s legal representatives. 
 (b) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 
 (c) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this
Agreement, “Company” shall mean the Company as hereinbefore defined and any successor or its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. 
 12. COMPLIANCE WITH SECTION 409A OF THE CODE. Payments under this Agreement (including, but not limited to, any payments that may be made
under Sections 5, 8 and 9) are intended to comply with Section 409A of the Code. To the extent the requirements of Section 409A(a)(2)(B)(i) of the Code (relating to the 6-month delay in payments to certain “specified employees”
upon separation from service) become applicable to payments under this Agreement, any delayed payments shall made on the first day of the seventh month following the date of Executive’s separation from service. If any compensation payable under
the terms of this Agreement would be subject to the Adverse Tax Consequences under Section 409A, then this Agreement shall be amended in a way that avoids the Adverse Tax Consequences under Section 409A without reducing the overall
compensation payable under this Agreement. For purposes of the preceding sentence, “Adverse Tax Consequences under Section 409A” shall mean the accelerated inclusion, 20% additional tax rate, and associated interest charge that will
apply to any deferred compensation included in taxable income of an individual under Section 409A(a)(1)(B) of the Code. 
 13.
Miscellaneous. 
 (a) This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey,
without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified other than by a written agreement executed by
the parties hereto or their respective successors and legal representatives; provided, however, that this 
  

 12 

 Agreement may be amended to the extent necessary to satisfy the provisions of Section 409A of the Internal Revenue
Code, as amended. 
 (b) All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other
party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
 If to the Employee:

 Michael Shea 
 c/o Hooper
Holmes, Inc. 
 170 Mt. Airy Road 
 Basking Ridge, NJ 07920 
 If to the Company: 
 Hooper Holmes, Inc. 
 170 Mt. Airy Road 
 Basking Ridge, NJ 07920 Attention: General Counsel 
 or to
such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 
 (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement. 
 (d) The Company may withhold from any amounts payable under this Agreement such Federal, state or local taxes as shall be
required to be withheld pursuant to any applicable law or regulation. 
 (e) The Employee’s failure to insist upon strict compliance
with any provision hereof shall not be deemed to be a waiver of such provision or any other provision thereof. 
 (f) This Agreement contains
the entire understanding of the Company and the Employee with respect to the subject matter hereof and the Employee waives any severance benefits (but not pension benefits) that he might otherwise be entitled to under the Company’s severance
plan or policy and agrees that from and after the Effective Date that this Agreement supersedes the agreements specified on Schedule A hereto. 
 (g) Nothing herein shall constitute a promise of employment other than as results from a Change in Control and the Employee and the Company acknowledge that, except as provided by any other agreement between the Employee and the Company,
the employment of the Employee by the Company is “at will”, and, prior to the Effective Date, may be terminated by either the 
  

 13 

 Employee or the Company at any time. Upon a termination of the Employee’s employment or upon the Employee’s
ceasing to be an officer of the Company, in each case, prior to the Effective Date, the Employee shall have no further rights under this Agreement. 
 IN WITNESS WHEREOF, the Employee has hereunto set his hand and, pursuant to the authorization from its Board of Directors, the Company has caused this Agreement to be executed in its name on its behalf, all as of the day and year
first above written. 
  

			
	Employee:
	
	 /s/ Michael Shea

	Michael Shea
	Senior Vice-President, Chief Financial Officer
	
	The Company:
		
	By:	 	 /s/ James Calver

	Name:	 	James Calver
	Title:	 	President & CEO

  

 14

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