Document:

EX-10.25

 Exhibit 10.25 
 Executive Copy 
  
 

 
 February 5, 2013 
 Ms. Keira Krausz 
 [Address Redacted] 

Dear Keira: 
 We are pleased to extend to you
(“Executive”) an offer to join NutriSystem, Inc. (the “the Company”) on the terms set forth in this letter agreement (this “Agreement”). 

 

			
	Commencement Date:	  	February 11, 2013.
		
	Title/Reporting:	  	Executive Vice President and Chief Marketing Officer, reporting to the Company’s Chief Executive Officer. Executive will devote her full business time and best efforts to the
performance of her duties for the Company; provided, however, that Executive shall be able to manage her personal investments or to engage in or serve such civic, community, charitable, educational, or religious organizations as she may
select, so long as such service does not create a conflict of interest with, or interfere with the performance of, Executive’s duties hereunder or conflict with Executive’s covenants under the restrictive covenants agreement (attached
hereto as Exhibit A), which Executive is required to execute as a condition of her employment.
		
	At-Will Employment:	  	Executive will be an at-will employee, which means that her employment may be terminated by either the Company or by her at any time, for any reason. Upon any cessation of her
employment, except as otherwise provided herein, Executive’s entitlement will be limited to the payment of Base Salary accrued but unpaid through the effective date of that cessation.
		
	Annual Base Salary:	  	$300,000, subject to annual review.
		
	Signing Bonus:	  	$25,000, payable the first pay date after the Commencement Date, subject to prompt repayment in full if Executive’s employment with the Company ceases before the first
anniversary of the Commencement Date, .
		
	Initial Equity Grant:	  	On the Commencement Date Executive will receive an equity grant (the “Initial Equity Grant”) with a grant date fair value of $500,000, with such grant
date fair value allocated as follows: 25% Performance RSUs (the “Inducement PRSUs”), 25% Non-Qualified Stock Options and 50% Restricted Shares. The terms of the Performance RSU’s will

  
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		  	be established by the Compensation Committee (“Compensation Committee”) of the Company’s Board of Directors (“Board”) and will
be substantially similar to the terms of the Performance RSUs applicable to the Company’s other executive officers. Restricted Shares and Options are time-based vesting 25% per year.
		
	Annual Cash Bonus Opportunity:	  	Target annual bonus will be 70% of the then current Base Salary. Actual range of payout will be 0 to 150% of the target, based on actual performance against objectives established
by the Compensation Committee for the Company’s other executive officers. Bonuses are paid within 2 1/2 months following the end of the relevant fiscal year. Except as otherwise provided herein, Executive will be required to
remain employed through the applicable bonus payment date in order to receive any bonus.
		
	Annual Equity Incentives:	  	Equity awards will be determined annually by the Compensation Committee in its discretion; provided, however, that for 2013, the awarded annual grant date fair value will be
an amount sufficient to achieve the 50th percentile of
executive pay benchmarking for total direct compensation (TDC), excluding the Initial Equity Grant. The components and terms of the 2013 grant will be substantially consistent with the components and terms of 2013 annual grants made to the
Company’s other executive officers.
		
	Benefits; Expenses:	  	Executive will participate in the same vacation policies, benefit programs, and health, life and disability coverages (as in effect from time to time and on terms and conditions
consistent with those) provided to the Company’s other senior executives. The Company will reimburse Executive, in accordance with the Company’s policy, for reasonable out of pocket travel and other expenses that she incurs in connection
with her employment.
		
	Definitions:	  	 “Cause” means: (a) Executive is convicted of a felony, or (b) in the reasonable determination of the Board,
Executive has done any one of the following: (1) committed an act of fraud, embezzlement, or theft in the course of her employment, (2) caused intentional, wrongful damage to the property of the Company, (3) Executive’s material breach of any
agreement with the Company or its affiliates, any duty owed to the Company or its stockholders or any published policy of the Company, which breach (if curable) is not cured within 30 days after receiving written notice from the Board specifying the
details of the breach, or (4) engaged in gross misconduct or gross negligence in the course of employment. For avoidance of doubt, a termination due to Executive suffering a “Disability” will not constitute a termination “without
Cause.” For this purpose, “Disability” means a condition entitling Executive to benefits under any Company sponsored or funded long term disability plan or policy.

 
 “Good Reason” means: (a) a material diminution of
Executive’s title, authority, duties or responsibilities; (b) a material reduction in

  
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		  	Executive’s then current Base Salary or annual bonus target opportunity; (c) a material change in the geographic location at which Executive performs services for the Company,
which for this purpose shall mean the relocation of the Company’s headquarters by more than 50 miles; and (d) a material breach of this Agreement by the Company; provided that any such event will constitute Good Reason only if Executive
notifies the Company in writing of such event within 90 days following the initial occurrence thereof, the Company fails to cure such event within 30 days after receipt from Executive of such written notice thereof, and Executive resigns her
employment within 30 days following the expiration of that cure period.
		
	Severance; Post-Termination Restrictive Covenants:	  	 In the event of a termination by the Company without Cause or a resignation by Executive for Good Reason, Executive will be entitled
to:
  
 (a) One year continuation of Base Salary at
customary payroll intervals.
  
 (b) One year continuation
of group health benefits at active employee rates.
  
 (c)
Continued eligibility for a pro-rata portion of the annual cash bonus for the year of termination, based on actual performance in that year.
  

(d) If such termination occurs after the second anniversary of the Commencement Date: (i) any time-vested equity awards under the
Initial Equity Grant that remain unvested shall vest, and (ii) if such termination occurs prior to the end of the performance period for the Inducement PRSUs, Executive will remain eligible to earn a pro-rata portion of those PRSUs based on actual
performance through the end of that performance period and pro-rated based on the number of days of service completed during that performance period.
  

(e) Relief from Executive’s obligation to repay the signing bonus, if such termination occurs before the first anniversary of the
Commencement Date.
  
 All severance benefits are conditioned on: (1)
Executive’s execution and delivery to the Company of a general release of claims against the Company and its affiliates, substantially in a form approved by the Board (the “Release”); (2) such Release becoming
irrevocable within 30 days following the Company’s delivery of such Release to Executive’s; and (3) Executive’s continued compliance with her restrictive covenant obligations to the Company. Except for items (c) and (d)(ii) above,
these payments and benefits will be paid or provided (or begin to be paid or provided, as applicable) on the first regularly scheduled payroll date that occurs after the Release becomes irrevocable; provided, however, that if the 30-day
period described above begins in one taxable year and ends in a second taxable year,

  
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		  	such payments or benefits shall not commence until the second taxable year. The payments, if any, required by item (c) and (d)(ii) above will be paid within 2 1/2 months following the end of the applicable performance period.
		
	Section 409A:	  	 Notwithstanding anything herein to the contrary, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or
any successor provision) is necessary to avoid the application of an additional tax under Section 409A of the Internal Revenue Code (“Section 409A”) to any payments due to Executive upon or following her Separation from
Service (within the meaning of Treas. Reg. § 1.409A-1(h)(1) or any successor provision)), then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments that
are otherwise due within six months following Executive’s Separation from Service will be deferred without interest and paid to Executive in a lump sum immediately following the end of such six-month period. This paragraph should not be
construed to prevent the application of Treas. Reg. §§ 1.409A-1(b)(4) or - 1(b)(9)(iii) (or any successor provisions) to amounts payable to Executive. For purposes of the application of Treas. Reg. § 1.409A-1(b)(4) (or any successor
provision) to amounts payable hereunder, each payment in a series of payments will be deemed a separate payment.
  
 While the parties have endeavored to structure Executive’s compensation rights so that payments to her are exempt from or compliant with Section 409A, the Company makes no representation to Executive
in this regard and will have no obligation to indemnify Executive for taxes or interest imposed under Section 409A.

		
	Indemnification:	  	Executive will be entitled to indemnification for acts performed or omissions made in her capacity as an officer of the Company to the extent provided in the Company’s
governing documents.
		
	Other:	  	 (a) Executive will be subject to all corporate policies applicable to executive officers, including the
Company’s securities trading policy, anti-hedging policy, clawback policy and stock ownership guidelines.
  

(b) All payments (or transfers of property) to Executive will be subject to tax withholding to the extent required by applicable
law.
  
 (c) Both during and following her service with
the Company, Executive agrees to cooperate with the Company in connection with any action or proceeding (or any appeal from any action or proceeding) that relates to events occurring during Executive’s employment by the Company. After
Executive’s employment ceases, the Company will provide reasonable advance notice of its need for Executive’s cooperation and will attempt to schedule and limit the need for Executive’s cooperation so as to minimize any disruption of
Executive’s personal and other professional obligations. The

  
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		  	Company will reimburse Executive, in accordance with the Company’s policy, for reasonable out-of-pocket travel and other expenses that she incurs as a result of her
cooperation.
		
		  	 (d) Executive represents and warrants to the Company that there are no orders, judgments, decrees, restrictions,
agreements or understandings by which she is bound that would prevent or make unlawful her execution of this Agreement, that would be inconsistent or in conflict with this Agreement or her obligations hereunder, or that would otherwise prevent,
limit or impair the performance of her duties to the Company.
  
 (e) Notices permitted or required under this Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier addressed, in the case of the Company,
c/o its General Counsel at its principal executive office and, in the case of Executive, to her most recent address set forth in the personnel records of the Company.
  

(f) This Agreement shall inure to the benefit of, and shall be binding upon, the parties, their heirs, executors, administrators,
agents, successors, permitted assigns, and estates, provided that Executive’s rights and obligations under this Agreement are personal to her and may not be assigned.

 
 (g) This Agreement is governed by Pennsylvania law, without
regard to the principles of conflicts of laws. Any disputes, actions, claims or causes of action arising out of or in connection with this Agreement or the employment relationship between the Company and Executive shall be subject to the exclusive
jurisdiction of the United States District Court for the Eastern District of Pennsylvania or the Pennsylvania state courts located in Montgomery County.
  

(h) This Agreement sets forth the parties’ entire agreement regarding Executive’s employment and compensation by the Company
and supersedes all prior agreements (including that certain Consulting Agreement dated January 14, 2013, except with respect to provisions thereof that by their nature are intended to survive any termination thereof), discussions and
understandings on those topics. This Agreement may not be modified in any way except by a written amendment executed by Executive and a duly authorized representative of the Company.

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intentionally left blank; signature page follows] 

  
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 Your signature below confirms that all information provided to us during the interview
and hiring process is true and accurate in all material respects. To indicate your acceptance of our offer and its terms, please sign and date this Agreement in the space provided below and return it to me. Please retain a copy for your records.

  

	
	Sincerely,
	
	 /s/ Dawn M. Zier

	Dawn M. Zier
	President and CEO

  

			
	Agreed and accepted on February 5, 2013:
		
	By:	 	 /s/ Keira Krausz

		 	Keira Krausz

  
 6EX-10.26

 Exhibit 10.26 
 NUTRISYSTEM, INC. 
 AMENDED AND RESTATED NUTRISYSTEM, INC.

 2008 LONG-TERM INCENTIVE PLAN 
 RESTRICTED STOCK AWARD AGREEMENT 
 Keira Krausz 

This RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”), dated as of
[                    ] (the “Date of Grant”), is delivered by NutriSystem, Inc. to Keira Krausz (the
“Grantee”). 
 RECITALS 
 A. The Amended and Restated NutriSystem, Inc. 2008 Long-Term Incentive Plan permits the grant of stock awards in accordance with the terms and conditions of the Plan. 

B. In satisfaction of the Company’s commitment to issue restricted shares to the Grantee upon commencement of her employment, as
contained in the letter agreement between the Company and the Grantee dated February 5, 2013 (the “Employment Agreement”), the Compensation Committee of the Board of Directors of the Company has approved this stock award.

 NOW, THEREFORE, the parties to this Agreement, intending to be legally bound hereby, agree as follows: 

1. Stock Award. 
 (a)
Subject to the terms and conditions set forth in this Agreement and the Plan, the Committee hereby grants to the Grantee [            ] shares of Company Stock, subject to the restrictions
set forth below and in the Plan (the “Restricted Stock”) and acknowledges payment by the Grantee of [$            ] ($0.001 per share) for the Restricted Stock.
Shares of Restricted Stock may not be transferred by the Grantee or subjected to any security interest until the shares have become vested pursuant to this Agreement and the Plan. Capitalized terms used but not otherwise defined herein will have
the meanings defined in the Plan. 
 (b) The Grantee hereby accepts this award and acknowledges that it satisfies the
Company’s commitment to issue restricted shares to her upon commencement of her employment, as described in the Employment Agreement. 

 2. Vesting and Nonassignability of Restricted Stock. 

(a) Except as provided in Paragraphs 2(b) and 2(c), the shares of Restricted Stock shall become vested, and the restrictions described in
Paragraph 2(e) shall lapse, according to the following vesting schedule, if the Grantee continues to be employed by, or provide services to, the Employer from the Date of Grant until the applicable vesting date: 

(i) 25% of the shares subject to the Restricted Stock shall become vested on the first anniversary of the Date of Grant;

 (ii) 25% of the shares subject to the Restricted Stock shall become vested on the second anniversary of the
Date of Grant; 
 (iii) 25% of the shares subject to the Restricted Stock shall become vested on the third
anniversary of the Date of Grant; and 
 (iv) the remaining 25% of the shares subject to the Restricted Stock
shall become vested on the fourth anniversary of the Date of Grant. 
 The vesting of the shares subject to the Restricted Stock shall be
cumulative, but shall not exceed 100% of the shares subject to the Restricted Stock. If the foregoing schedule would produce fractional shares, the number of shares that vest shall be rounded down to the nearest whole share. 

(b) If, prior to the date 100% of the Restricted Stock becomes vested, the Grantee ceases to be employed by, or provide services to, the
Employer on account of (i) the death of the Grantee, or (ii) termination by the Employer because the Grantee becomes “totally disabled” (defined as a condition entitling Grantee to benefits under any long-term disability plan or
policy maintained or funded by the Employer), then the next tranche of shares that would otherwise have vested under Paragraph 2(a) (but for such cessation of employment or service) will become vested as of the date of such cessation; provided that,
in its discretion, the Company may condition such accelerated vesting on the execution by the Grantee or her estate (as applicable) of a release of claims in a form prescribed by the Company and on that release becoming irrevocable within 30 days
following the cessation of the Grantee’s employment or service. 
 (c) If, prior to the date 100% of the Restricted Stock
becomes vested, the Grantee ceases to be employed by, or provide services to, the Employer on account of (i) a termination by the Employer without “cause” (as defined in the Employment Agreement), or (ii) the resignation by the
Grantee with “good reason” (as defined in the Employment Agreement), the vesting of the Restricted Stock shall accelerate to the extent, and subject to the conditions, described in the severance provisions of the Employment Agreement.

 (d) Except as otherwise provided in this Paragraph 2, if the Grantee’s employment or service with the Employer
terminates for any reason before the Restricted Stock is fully vested, the shares of Restricted Stock that are not then vested (or do not then become vested) shall be forfeited and must be immediately returned to the Company, and the Company shall
pay to the Grantee, as consideration for the return of the non-vested shares, the lesser of $0.001 per share or the Fair Market Value of a share of Company Stock on the date of the forfeiture, for each returned share. 

(e) During the period before the shares of Restricted Stock vest (the “Restriction Period”), the non-vested shares of
Restricted Stock may not be assigned, transferred, pledged or 

  
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otherwise disposed of by the Grantee. Any attempt to assign, transfer, pledge or otherwise dispose of the shares contrary to the provisions hereof, and the levy of any execution, attachment or
similar process upon the shares, shall be null, void and without effect. 
 3. Issuance of Shares. 

(a) The Company will cause the Restricted Stock to be issued in the Grantee’s name either by book-entry registration or issuance of
a stock certificate or certificates. While the Restricted Stock remains unvested, the Company will cause an appropriate stop-transfer order to be issued and to remain in effect with respect to the Restricted Stock. As soon as practicable following
the vesting of any of the Restricted Stock (and provided that appropriate arrangements have been made with the Company for the satisfaction of any required tax withholding), the Company will cause the stop-transfer order to be removed from an
appropriate number of shares. 
 (b) If any certificate is issued in respect of Restricted Stock, that certificate will include
such legends as the Company determines are appropriate and will be held in escrow by the Company or its designee. In addition, the Grantee may be required to execute and deliver to the Company or its designee a stock power with respect to the
Restricted Stock. When any certificated Restricted Stock becomes vested, the Company will cause a new certificate to be issued without that portion of the legend referencing the forfeiture conditions described in Paragraph 2 and will cause that new
certificate to be delivered to the Grantee (provided that appropriate arrangements have been made with the Company for the satisfaction of any required tax withholding). 
 (c) During the Restriction Period, the Grantee shall receive any cash dividends or other distributions paid with respect to the shares of Restricted Stock and may vote the shares of Restricted Stock. In
the event of a dividend or distribution payable in stock or other property or a reclassification, split up or similar event during the Restriction Period, the shares or other property issued or declared with respect to the non-vested shares of
Restricted Stock shall be subject to the same forfeiture conditions and transfer restrictions as those non-vested shares. 
 (d)
The obligation of the Company to deliver shares upon the vesting of the Restricted Stock shall be subject to all applicable laws, rules, and regulations and such approvals by governmental agencies as may be deemed appropriate to comply with relevant
securities laws and regulations. 
 4. Dissolution or Liquidation; Sale or Merger. In the event of a dissolution, liquidation, sale or
merger of the Company or similar event or transaction, the Committee may take such actions with respect to the Restricted Stock as it deems appropriate and consistent with the Plan. 
 5. Grant Subject to Plan Provisions. This grant is made pursuant to the Plan, the terms of which are incorporated herein by reference, and in all respects shall be interpreted in accordance with
the Plan. The grant is subject to interpretations, regulations and determinations concerning the Plan established from time to time by the Committee in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining
to (i) rights and obligations with respect to withholding taxes, (ii) the registration, qualification or listing of the shares, (iii) changes in capitalization of the Company, and (iv) other requirements of applicable law. The
Committee shall have the authority to interpret and construe the grant pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder. 

  
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 6. Withholding. The Grantee shall be required to pay to the Employer, or make other arrangements
satisfactory to the Employer to provide for the payment of, any federal, state, local or other taxes that the Employer is required to withhold with respect to the grant or vesting of the Restricted Stock. Subject to Committee approval, the Grantee
may elect to satisfy any tax withholding obligation of the Employer with respect to the Restricted Stock by having vested shares withheld up to an amount that does not exceed the minimum applicable withholding tax rate for federal (including FICA),
state, local and other tax liabilities. Notwithstanding anything to the contrary in the Plan or this Agreement, until the Grantee has satisfied the Employer’s withholding obligation with respect to the shares of Restricted Stock, the Grantee
shall not have any rights to sell or transfer any shares that have become vested pursuant to Paragraph 2. 
 7. Restrictions on Sale or
Transfer of Shares. 
 (a) The Grantee will not sell, transfer, pledge, donate, assign, mortgage, hypothecate or otherwise
encumber the shares underlying this grant unless the shares are registered under the 1933 Act, or the Company is given an opinion of counsel reasonably acceptable to the Company that such registration is not required under the 1933 Act. 

(b) In consideration for this grant of Restricted Stock, the Grantee agrees to be bound by the Employer’s policies as in effect from
time to time, including, but not limited to, the Company’s Insider Trading, Anti-Hedging and Clawback Policies and Stock Ownership Guidelines, and understands that there may be certain times during the year that the Grantee will be prohibited
from selling, transferring, donating, assigning, mortgaging, hypothecating or otherwise encumbering Company securities. 
 8. No Employment
or Other Rights. This grant shall not confer upon the Grantee any right to be retained by or in the employ or service of the Employer and shall not interfere in any way with the right of the Employer to terminate the Grantee’s employment or
service at any time. The right of the Employer to terminate at will the Grantee’s employment or service at any time for any reason is specifically reserved. 
 9. Confidential Information, Non-Competition and Non-Solicitation. The Grantee affirms her obligations under the Nondisclosure and Noncompete Agreement for Management Employees. 

10. Assignment by Company. The rights and protections of the Company hereunder shall extend to any successors or assigns of the Company and to the
Company’s parents, subsidiaries, and affiliates. This Agreement may be assigned by the Company without the Grantee’s consent. 
 11.
Effect on Other Benefits. The value of this award or the shares subject hereto shall not be considered eligible earnings for purposes of any other plan maintained by the Company or the Employer. Neither shall such value be considered part of
the Grantee’s compensation for purposes of determining or calculating other benefits that are based on compensation, such as life insurance. 

  
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 12. Applicable Law. The validity, construction, interpretation and effect of this instrument shall be
governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the conflicts of laws provisions thereof. 
 13. Entire Agreement. This Agreement, including the terms of the Employment Agreement specifically incorporated by reference in Sections 2(c), represents the entire agreement between the parties
hereto relating to the subject matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements and understandings of every nature relating to the subject matter hereof. 

14. Consent to Electronic Delivery. The Grantee hereby authorizes the Company to deliver electronically any prospectuses or other documentation
related to this Agreement, the Plan and any other compensation or benefit plan or arrangement in effect from time to time (including, without limitation, reports, proxy statements or other documents that are required to be delivered to participants
in such plans or arrangements pursuant to federal or state laws, rules or regulations). For this purpose, electronic delivery will include, without limitation, delivery by means of e-mail or e-mail notification that such documentation is available
on the Company’s intranet site. Upon written request, the Company will provide to the Grantee a paper copy of any document also delivered to the Grantee electronically. The authorization described in this paragraph may be revoked by the Grantee
at any time by written notice to the Company. 
 IN WITNESS WHEREOF, the Company has caused its duly authorized officer to
execute this Agreement, and the Grantee has placed his or her signature hereon, on this         day of             , 2013. 

 

									
		 		 		 	NUTRISYSTEM, INC.
				
	 Attest:
	 		 		 	
				
	  
	 		 	By:	 	  

	 Name:
	 	Kathleen Simone	 		 	Name:	 	David Clark
	Title:	 	SVP, Finance & Controller	 		 	Title:	 	Chief Financial Officer

 I hereby accept the grant of Restricted Stock described in this Agreement, and I agree to be bound by the terms of the
Plan and this Agreement. I hereby further agree that all of the decisions and determinations of the Committee shall be final and binding. 
  

	
	  

	Grantee: Keira Krausz

  
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