Document:

EX 10.3

RESTRICTED STOCK PURCHASE AGREEMENT

THIS RESTRICTED
STOCK PURCHASE AGREEMENT, together with all the Schedules and other attachments (the “Agreement”),
is entered into by and between RDA EQUITIES, LLC, a limited liability company formed in Puerto Rico with its principal executive
office located 2105 Plantation Village, Dorado Place, Puerto Rico 00646 (“RDA” or the “Purchaser”),
and AUTHENTIC TEAS, INC., a Nevada corporation with its principal executive office located at Suite 1801-1, Yonge Street,
Toronto, Ontario M5E 2A3 Canada (the “Company”), and the stockholder of the Company listed on
the Signature Page to this Agreement (the “Selling Stockholder”). The Purchaser, Company and Selling
Stockholder are sometimes collectively referred herein to as the “Parties” and may each be referred
to as a “Party.”

 

R E C I T A L S

WHEREAS,
the Company is a “smaller reporting company,” as that term is defined by Rule 12b-2 promulgated under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and subject to the reporting requirements
of the Exchange Act with the U.S. Securities and Exchange Commission (the “Commission”);

WHEREAS,
the common stock, par value $0.001 per share (the “Common Stock”), of the Company, is quoted for
trading on the OTC Bulletin Board (OTCBB) under the symbol AUTT;

WHEREAS,
the Company’s authorized capital currently consists of 100,000,000 shares of Common Stock, par value $0.001 per share, of
which 4,011,600 shares currently are currently outstanding, and 100,000,000 shares of “blank check” preferred stock,
par value $0.001 per share (the “Preferred Stock”), of which none have been designated or are currently
outstanding;

WHEREAS,
the Selling Stockholder is deemed to be an “affiliate,” as that term is defined under Rule 144 of the Securities Act
of 1933, as amended (the “Securities Act”);

WHEREAS,
the Company has commenced non-binding discussions with the Purchaser in connection with consummating a business combination with
a corporation formed in the Commonwealth of Puerto Rico;

WHEREAS,
the Purchaser wishes to purchase the number of shares of Common Stock of the Company as indicated on the Signature Page to this
Agreement (the “Shares”) from the Selling Stockholder for $0.001 per Share (the “Purchase
Price”); and the Selling Stockholder wishes to sell the Shares to the Purchaser in consideration for the Purchase
Price pursuant to the terms and conditions set forth in this Agreement; and

NOW, THEREFORE,
in consideration of the foregoing and of the representations, warranties and covenants contained herein, the Parties hereby agree
to the following:

    	 

    	 

    

 

ARTICLE I

SHARE PURCHASE

Section
1.01. Shares. At the Closing (as defined in Section 1.03) and pursuant to the terms and
conditions hereof, the Selling Stockholder hereby agrees to sell to the Purchaser the Shares
for the Purchase Price. 

 

Section 1.02. Purchase
Price. At the Closing (as defined in Section 1.03) and pursuant to the terms and conditions hereof, the Purchaser hereby
agrees to purchase the Shares for the Purchase Price.

 

Section
1.03. Closing.

(a)The
consummation of the sale of the Shares by the Selling Stockholder to the Purchaser (the “Transaction”)
shall occur upon the satisfaction or waiver of all of the conditions set forth herein or such other time as agreed to by the Parties
(the “Closing”). The Closing may be rescheduled by the agreement of the Parties.

(b)At the
Closing, the Company shall have the Selling Stockholder’s stock certificates evidencing the Shares transferred to the Purchaser
and the Purchaser shall deliver the Purchase Price to the Company by wire transfer, bank draft or certified check in readily available
funds to be distributed by the Company to the Selling Stockholder. At the Closing, the Company shall deliver to the Purchaser a
stock certificate evidencing the Shares registered in the name of the Purchaser and such other documents as called for herein and
the Purchaser shall deliver to the Company such other documents as called for herein.

Section
1.04. Additional Actions. Upon the consummation of the Closing or as soon as practicable thereafter, the Company shall
have caused the following to be completed:

(a) Hrant
Isbeceryan and David Lewis Richardson, the current executive officers of the Company, shall resign, and the Board of Directors
of the Company shall appoint one or more individuals designated by the Purchaser as the executive officers of the Company, effectively
immediately;

(b) The
Board of Directors of the Company shall appoint Ralph M. Amato and Joseph Spiteri or other such individuals designated by the Purchaser
as members to the Board of Directors and then Hrant Isbeceryan, David Lewis Richardson and Evan Michael Hershfield shall each resign
from the Board of Directors of the Company, effectively immediately;

(c) Effectuate a three-for-one
(3:1) forward stock split of the Company’s outstanding Common Stock;

(d)Effectuate a business
combination by merging the Company with and into a corporation formed in the Commonwealth of Puerto Rico, with the Company being
the non-surviving entity and the Puerto Rico corporation being the surviving entity (the “Surviving Corporation”)
and with each outstanding share of the Common Stock of the Company being automatically converted into one share of Common Stock
of the Surviving Corporation (the “Merger”); and the Surviving Corporation subsequently acquiring
certain intellectual property assets of Mobile Data Systems, Inc., a New York corporation (the “Acquisition”)
..

(e) For
such other matters as may be mutually agreed upon by the Company and the Purchaser.

Section 1.05. Retransfer Right.
In the event the Merger and Acquisition is not consummated on or prior to the 90th day following the Closing:

 

(a)the Company shall promptly:

		(i)	undertake all reasonable efforts to remove the then current directors and officers of the Company
in accordance with applicable corporate law and replace such individuals with Hrant Isbeceryan as President, Chief Executive Officer
and director, David Lewis Richardson as Chief Financial Officer, Secretary, Treasurer and director and Evan Michael Hershfield
as director, and

		(ii)	unless otherwise consented to in writing by Hrant Isbeceryan, cease all actions in connection with
section 1.04 (c) and (d) to the extent such actions have not yet been consummated;

		(b)	the Purchaser shall promptly sell to the Selling Stockholder the Shares for the Purchase Price
in accordance with the closing procedures set out in section 1.03 (the “Closing Procedures”) with
such changes as are necessary to reflect the retransfer of Shares from the Purchaser back to the Selling Stockholder as contemplated
herein (the “Retransfer”);

		(c)	the Purchaser shall represent and warrant to the Company and the Selling Stockholder that upon
consummation of the Retransfer, the Selling Stockholder will acquire good and marketable title to the Shares, free and clear of
all liens, pledges, claims, security interests, encumbrances, charges or restrictions of any kind; and

		(d)	the Selling Stockholder shall promptly purchase from the Purchaser the Shares for the Purchase
Price in accordance with the Closing Procedures.

 

Section
1.06. Additional Actions After Closing. If, at any time after the Closing, the Purchaser shall consider or be advised
that any further assignments or assurances in law or any other acts are necessary or desirable to vest, perfect or confirm, of
record or otherwise, in the Purchaser title to and possession of any property or right of the Company or to be acquired by reason
of, or as a result of, the Transaction contemplated by this Agreement, or otherwise to carry out the purposes of this Agreement,
the Company and the proper officers and directors, solely in their official capacity as officers and directors, shall execute any
and all documents necessary to vest, perfect or confirm title to and possession of such property or rights in the Purchaser or
the Company, as appropriate, and otherwise to carry out the purposes of this Agreement.

ARTICLE II

REPRESENTATIONS AND WARRANTIES
OF THE COMPANY

In order to
induce the Purchaser to enter into this Agreement, the Company represents and warrants that the statements contained in this Article
II are true and complete as of the date of this Agreement and will be true and complete as of the Closing (as though made then
and at the Closing).

Section
2.01. Organization and Standing.

		(a)	The Company is a corporation duly organized, existing and in good standing under the laws of the
Nevada with full corporate power and authority to own, lease, use and operate its properties and to conduct its business as it
is currently conducted.

 

		(b)	The Company is duly qualified to do business and is in good standing in each jurisdiction where
its activities would require qualification, except where the failure to qualify would not have a material adverse effect upon the
Company’s business or financial condition, or on the ability of the Parties to consummate the Transaction (“Company
Material Adverse Effect”).

 

		(c)	The Company is not in default of any provision of its Articles of Incorporation, Bylaws or other
agreements relating to corporate governance or organization.

 

		(d)	To the knowledge of the Company, the Company is not a “shell company” as defined by
Rule 12b-2 under the Exchange Act nor has it ever been a “shell company” since its formation.

 

		(e)	The Articles of Incorporation of the Company filed with the Commission as an exhibit to the Company’s
registration statement on Form S-1 (File No.: 333-175003) on June 17, 2011 (the “Registration Statement”)
are the true and correct Articles of Incorporation of the Company and such Articles of Incorporation are now in full force and
effect and have not been amended or rescinded.

 

		(f)	The Bylaws of the Company filed with the Commission as an exhibit to the Registration Statement
are the true and correct Bylaws of the Company and such Bylaws are now in full force and effect and have not been amended or rescinded.

Section
2.02. Corporate Power and Authority. The Company has all requisite corporate power and authority to enter into and perform
this Agreement. The Company has duly executed and delivered this Agreement and this Agreement is a legal, valid and binding obligation
of the Company, enforceable in accordance with its terms, except as may be limited by any applicable bankruptcy, insolvency, reorganization,
moratorium, or similar laws and equitable principles related to or affecting creditors' rights generally or the effect of general
principles of equity.

Section
2.03. Conflicts; Consents and Approvals. The Company’s execution or performance of this Agreement will not:

(a) result
in a breach or default or entitle any third party to terminate or accelerate any of the terms, conditions or provisions of the
Certificates of Incorporation or Bylaws of the Company or any agreement or obligation of the Company; or

(b) violate
any order, writ, injunction, decree, statute, rule, or regulation applicable to the Company or its properties or assets.

Section
2.04. Ownership of the Company and Capitalization. 

(a) Authorized
Shares. The Company’s authorized capital stock consists of 100,000,000 shares of Common Stock, par value $0.001 per share,
and 100,000,000 shares of Preferred Stock, par value $0.001 per share. There are currently 4,011,600 shares of Common Stock issued
and outstanding, 3,000,000 of which are held by the Company’s current officers and directors and 1,011,600 of which are held
by non-affiliate stockholders. No shares of Preferred Stock are issued and outstanding. There are no options, warrants or other
securities convertible or exchangeable into shares of capital stock of the Company.

(b) Issuance
of Shares. All shares of the Company Stock, including the Shares: (i) are duly and validly authorized and issued, fully paid
and non-assessable, with, to the knowledge of the Company, no liability attaching to the ownership thereof, (ii) are not subject
to, and were not issued in contravention of, any preemptive or similar rights pursuant to any provision of law, the Company’s
Articles of Incorporation or Bylaws or any agreement, contract or other obligation to which the Company is a party or is subject,
and (iii) were issued in accordance with all applicable laws. The rights, privileges and preferences of the Company Stock are as
stated in its Articles of Incorporation and Bylaws. Except as contemplated herein, there are no outstanding options, subscriptions,
warrants, puts, calls, agreements, understandings, claims or other commitments or rights of any type relating to the issuance,
sale or transfer by the Company of any securities or interests of the Company, nor are there outstanding any securities which are
convertible into or exchangeable for shares or equity interests of the Company.

Section
2.05. No Transfer Restrictions. Except as disclosed in the Company SEC Reports and subject to applicable securities
laws, there are no outstanding agreements, restrictions, contracts, commitments or demands of any character to which the Company
is a party or of which the Company is aware which relate to or restrict the transfer of any of the shares of the Company Stock.
Upon consummation of the Transaction contemplated by this Agreement and except for transfer restrictions as required by applicable
securities laws, the Purchaser will acquire good and marketable title to the Shares, free and clear of all liens, pledges, claims,
security interests, encumbrances, charges or restrictions of any kind.

Section
2.06. Litigation. Except as set forth in the Company’s reports filed with the Commission (the “Company
SEC Reports”), there is no legal action or any proceeding or investigation pending or, to the knowledge of the
Company, threatened against the Company which could have a Company Material Adverse Effect.

Section
2.07. Brokerage and Finder’s Fees. Neither the Company nor any of its directors, officers or employees have incurred,
or will incur, any brokerage, finders or similar fee in connection with the Transaction contemplated by this Agreement.

Section
2.08. Audited and Unaudited Financial Statements. The Company’s audited and unaudited financial statements filed
with the Commission (the “Company Financial Statements”) fairly present the assets, liabilities,
results of the operations and changes in stockholders' equity and financial position of the Company for the respective periods
or as of the respective dates therein set forth. The books and records of the Company are true and complete in all material respects
and have been, and are being, maintained in all material respects in accordance with applicable legal and accounting requirements.

Section
2.09. Undisclosed Liabilities. Other than those disclosed in the Company Financial Statements and Schedule 2.09,
the Company has no liabilities or obligations which, individually or in the aggregate, is greater than $5,000.

Section
2.10. Taxes. 

		(a)	Payment; Tax Returns. The Company has timely paid or accrued all national, state, local
and foreign taxes, assessments, fees and other governmental charges required to be paid or accrued as of the date hereof (“Taxes”),
and has filed all national, state, local and foreign tax returns and tax reports that it is required to file (the “Returns”).
Such Returns and reports are true, correct and complete and have not been amended, and all Taxes for which the Company is liable
arising under the Returns and reports have either been fully paid or are adequately reserved for in the Company Financial Statements,
and will be timely paid when due. No claim has been made by authorities in any jurisdiction where the Company did not file tax
returns that it is or may be subject to taxation by that jurisdiction.

 

		(b)	No Tax Audit or Assessment. To the Company’s knowledge there is no pending or threatened
national, state, local or foreign tax audit or assessment nor any agreement by the Company with any federal, state, local or foreign
taxing authority that may affect the tax liability of the Company.

 

		(c)	No Tax Liability. The Company represents that it shall have no obligation with respect to
any Tax liability of the Company attributable to any period prior to the Closing.

Section
2.11. Compliance with Law. The Company has materially complied with all laws, statutes, ordinances, orders, rules, and
all judgments, decisions and orders entered by any federal, state, local or foreign court or governmental authority or instrumentality
applicable or relating to the Company or its businesses or properties (“Company Applicable Laws”).

Section
2.12. Bank Accounts, Depositories, Powers of Attorney. A true, correct and complete list of the names and locations
of all banks or other depositories where the Company has accounts or safe deposit boxes with the names of the persons authorized
to have access in any way to these items is set forth in Schedule 2.12. Except as set forth in Schedule 2.12,
no person has power of attorney with respect to the Company, except in the normal course of business.

Section
2.13. Title to and Condition of Properties. The Company has good, valid and marketable title or ownership, held free
and clear of any encumbrance whatsoever to all of its assets and properties of every kind, tangible or intangible, wherever located
which is used or planned to be used in the conduct of its business.

Section
2.14. No Conflict or Default. The Company’s execution of this Agreement and the transactions contemplated hereby
will not: (i) violate any applicable laws or permits, (ii) cause a lien, security interest or encumbrance of any nature whatsoever
with respect to the properties or assets of the Company, or (iii) give any entity an interest or rights, including rights of termination,
acceleration or cancellation, with respect to any of the properties, or assets of the Company.

Section
2.15. Complete Disclosure. The representations and warranties of the Company in this Agreement or the related Schedules
delivered by or on the Company’s behalf do not contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements herein or therein, in light of the circumstances in which they are made, not misleading.

Section
2.16. SEC Compliance; Section 10b-5 Representation. The Company is in full compliance with all rules and regulations
promulgated by the Commission, including, but not limited to, the Exchange Act, the Securities Act, and the Sarbanes-Oxley Act
of 2002, as amended (“SOX”). The Company is current in its periodic reporting requirements under
the Exchange Act, including but not limited to, annual reports on Form 10-K and quarterly reports on Form 10-Q and, to the knowledge
of the Company, comply with the requirements of the Exchange Act. None of the Company SEC Reports or registration statements filed
with the Commission under the Securities Act contains any misstatement of a material fact or omits to state a material fact necessary
to prevent the statements made therein from being misleading.

Section
2.17. Sale to Selling Stockholder.

		(a)	The Company issued the Shares to the Selling Stockholder pursuant to an exemption from the registration
requirements of the Securities Act and the Company has filed all required paperwork with the Commission and/or applicable state
blue sky securities agencies regarding such sales to preserve such exemption.

 

		(b)	The Shares are deemed to be “restricted securities” under Rule 144 of the Securities
Act and the certificates evidencing the Shares bear a Rule 144 restrictive stock legend.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES
OF THE SELLING STOCKHOLDER

In order to
induce the Purchaser to enter into this Agreement, the Selling Stockholder represents and warrants that the statements contained
in this Article III are true and complete as of the date of this Agreement and will be true and complete as of the Closing (as
though made then and at the Closing).

Section
3.01. Authority. The Selling Stockholder has all requisite power and authority to enter into and perform this Agreement.
The Selling Stockholder has duly executed and delivered this Agreement to facilitate the transactions contemplated hereby and this
Agreement is a legal, valid and binding obligation of the Selling Stockholder, enforceable in accordance with its terms, except
as may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws and equitable principles
related to or affecting creditors' rights generally or the effect of general principles of equity.

Section
3.02. Affiliate Status. The Selling Stockholder is an “affiliate” (as that term is defined under Rule 144
of the Securities Act) of the Company.

Section
3.03. Purchase of Shares. To the knowledge of the Selling Stockholder, the Company issued the Restricted Shares to the
Selling Stockholder pursuant to an exemption from the registration requirements of the Securities Act and the Company has filed
all required paperwork with the Commission and/or applicable state blue sky securities agencies regarding such sales to preserve
such exemption.

Section
3.04. Issuance of Shares. To the knowledge of the Selling Stockholder, the Shares: (i) are duly and validly authorized
and issued, fully paid and non-assessable, with no liability attaching to the ownership thereof, (ii) are not subject to, and were
not issued in contravention of, any preemptive or similar rights pursuant to any provision of law, or any agreement, contract or
other obligation to which the Selling Stockholder is a party or is subject, and (c) were issued in accordance with all applicable
laws.

Section
3.05. No Transfer Restrictions. Subject to transfer restrictions required by applicable securities laws, there are no
outstanding agreements, restrictions, contracts, commitments or demands of any character to which the Selling Stockholder is a
party or of which the Selling Stockholder is aware which relate to or restrict the transfer of any of the Shares held by the Selling
Stockholder. Upon consummation of the Transaction, the Purchaser will acquire good and marketable title to the Shares held by the
Selling Stockholder, free and clear of all liens, pledges, claims, security interests, encumbrances, charges or restrictions of
any kind, subject to transfer restrictions required by applicable securities laws.

Section
3.06. Litigation. There is no legal action or any proceeding or investigation pending or, to the knowledge of the Selling
Stockholder, threatened against the Selling Stockholder which could prevent the Selling Stockholder from consummating the Transaction
contemplated by this Agreement.

Section
3.07. Brokerage and Finder’s Fees. No one has acted as a broker or finder on behalf of the Selling Stockholder
in connection with the Transaction contemplated by this Agreement.

Section
3.08. Complete Disclosure. The representations and warranties of the Selling Stockholder in this Agreement or the related
Schedules delivered by or on the Selling Stockholder’s behalf do not contain any untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements herein or therein, in light of the circumstances in which they
are made, not misleading.

    	 

    	 

    

ARTICLE IV

REPRESENTATIONS AND WARRANTIES
OF THE PURCHASER

To induce the
Company and the Selling Stockholder to into this Agreement, the Purchaser represents and warrants the following:

Section
4.01. Organization and Standing. RDA is a limited liability company duly formed under the laws of Puerto Rico, with
full power and authority (corporate and other) to conduct its business as currently conducted. RDA is duly qualified to do business
and is in good standing in each jurisdiction where its activities would require qualification, except where the failure to qualify
would not have a material adverse effect upon the Purchaser’s business or financial condition, or on the ability of the Parties
to consummate the transactions contemplated by this Agreement (“RDA Material Adverse Effect”).
RDA is not in default of any provision of its organizational documents.

Section
4.02. Corporate Power and Authority. RDA has all requisite corporate power and authority to enter into and perform this
Agreement. RDA has duly executed and delivered this Agreement and this Agreement is a legal, valid and binding obligation of RDA,
enforceable in accordance with its terms, except as may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium,
or similar laws and equitable principles related to or affecting creditors' rights generally or the effect of general principles
of equity.

Section
4.03. Consents and Approvals. RDA’s execution, delivery and performance of this Agreement do not and will not
require any consents or approvals of, filings with, or action by any third party.

Section
4.04. Complete Disclosure. The representations and warranties by RDA in this Agreement or the related Schedules delivered
by or on RDA’s behalf do not contain any untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements herein or therein, in light of the circumstances in which they are made, not misleading.

Section
4.04. Brokerage and Finder’s Fees. No one has acted as a broker or finder on behalf of RDA in connection with
the transactions contemplated by this Agreement.

Section
4.05. Accredited Investor. RDA is an “Accredited Investor” as that term is defined under Rule 501 of Regulation
D promulgated under the Securities Act.

Section 4.05 Investment
Purpose. RDA is acquiring the Shares solely for its own account for investment purposes and
not with a view to, or for offer or sale in connection with, any distribution thereof. RDA acknowledges that the Shares are not
registered under the Securities Act, or any state securities laws, and that the Shares may not be transferred or sold except pursuant
to the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and subject to state securities
laws and regulations, as applicable.

 

Section 4.06 Sufficiency of
Funds. RDA has sufficient cash on hand or other sources of immediately available funds to enable it to make payment of
the Purchase Price and consummate the Transaction contemplated by this Agreement.

 

ARTICLE V

COVENANTS OF THE PARTIES

Section
5.01. Covenants.

		(a)	General. Each Party shall use its best efforts to take all actions promptly and do all things
necessary, proper or advisable to perform as required in this Agreement, including without limitation using all commercially reasonable
efforts to cause the satisfaction of all the conditions set forth in this Agreement for which the Party is responsible as soon
as reasonably practicable and to prepare, execute, acknowledge or verify, deliver, and file the additional documents, and take
or cause to be taken the additional actions, as any Party may reasonably request to carry out the purposes or intent of this Agreement.

(b)Independent
Auditor & Stock Transfer Agent Expenses and Fees. All currently outstanding expenses and fees and expenses and fees to
be incurred by the Company in connection with the Company’s dismissal of its current independent auditor and/or stock transfer
agent, including, but not limited to, the transfer of files and other material by such auditor and/or stock transfer agent to the
Company’s new independent auditor and/or stock transfer agent shall be paid, in full, by the Company, whether or not such
expenses and fees are incurred prior to or subsequent to the consummation of the Transaction. (c)Cooperation. At and
after the Closing, each Party shall execute any and all further documents and writings and perform any other commercially reasonable
actions reasonably requested by the other Party to perform this Agreement.

		(c)	Confidential Information. No Party shall at any time directly or indirectly copy, disseminate
or use, for such Party's own benefit or the benefit of any third party, any information that has been disclosed in confidence by
the other Party (“Confidential Information”), regardless of how the Confidential Information was
acquired, except for the disclosure or use of the Confidential Information: (x) upon the advice of counsel required by law or legal
process, or (y) authorized in writing by the Party that owns the Confidential Information. Each Party acknowledges and agrees that
remedies at law for a violation or attempted violation of any of the obligations in this section would be inadequate and would
cause immediate irreparable harm to the other Parties, and agrees that in the event of any such violation or attempted violation,
each Party is entitled to a temporary restraining order, temporary and permanent injunctions, and other equitable relief, without
the necessity of posting any bond or proving any actual damage, in addition to all other rights and remedies which may be available.

		(d)	Obligation to Update Schedules. Immediately prior to the Closing, each Party shall promptly
disclose to the others any information contained in the representations and warranties or Schedules which at any time is materially
incomplete or is no longer materially correct or any material adverse development affecting the respective Party; provided, however,
that no disclosure to this Agreement shall be deemed to modify, amend or supplement the representations and warranties of a Party
or the Schedules attached unless the Party to whom the representations and warranties are made has consented in writing.

		(e)	Regulatory Matters and Approvals. Each of the Parties will give any notices to, make any
filings with, and use their reasonable best efforts to obtain any authorizations, consents, and approvals of governments and governmental
agencies in order to effect the transactions contemplated by this Agreement.

Section
5.02. Reasonable Access. The Company shall give the Purchaser, its counsel, accountants, financial advisers and lenders,
and other representatives, after reasonable notice, reasonable access, during normal business hours, throughout the period prior
to the Closing, to all of the properties, books, contracts, commitments and records relating exclusively to the Company’s
business, and the Company shall reasonably cooperate with the Purchaser and its accountants in connection with the preparation
of timely and complete audited and unaudited financial statements.

 

ARTICLE VI

CONDITIONS

 

Section
6.01. Mutual Conditions. The Parties' obligations to consummate the Transaction and to perform this Agreement are subject
to all of the following conditions:

		(a)	No Action. No action before any court or governmental body is pending or threatened wherein
a judgment, decree or order would restrain, prohibit or invalidate any of the transactions contemplated by this Agreement or cause
the Transaction to be declared unlawful or rescinded.

 

		(b)	Approvals. All action necessary to authorize the execution and delivery of this Agreement
and consummation of the Transaction have been obtained.

Section
6.02. Conditions to Obligations of the Purchaser. The Purchaser’s obligation to consummate the Transaction and
to perform this Agreement is subject to the fulfillment of all of the following conditions unless waived by the Purchaser in writing:

		(a)	Representations and Warranties. The representations and warranties of the Company and Selling
Stockholder set forth in this Agreement are true and correct as of the Closing as though made at and as of the Closing, except
where any untruth or inaccuracy will not, either individually or in the aggregate, have a Company Material Adverse Effect.

 

		(b)	Performance of Agreement. The Company and Selling Stockholder shall have performed and observed
in all material respects all obligations and conditions to be performed or observed by it under this Agreement at or prior to the
Closing.

 

		(c)	Material Adverse Changes. Since the date of this Agreement, there has not occurred any change
in the operations, prospects, assets, business, or condition (financial or otherwise) of the Company has had or that could have
a Company Material Adverse Effect.

 

		(d)	Deliveries. All documents or instruments required to be delivered by the Company and the
Selling Stockholder at or prior to the Closing, shall have been delivered to the Purchaser.

 

		(e)	Approval. This Agreement shall have been approved by all necessary action.

 

		(f)	Consents. The Company and Selling Stockholder shall have procured all third-party consents
necessary to effect the Transaction.

 

		(g)	Form of Actions. All actions to be taken by the Company and Selling Stockholder in connection
with consummation of the Transaction and all documents required to effect the Transaction shall be satisfactory in form and substance
to the Purchaser.

 

Section
6.03. Conditions to Obligations of the Selling Stockholder. The Selling Stockholder’s obligation to consummate
the Transaction and to perform this Agreement is subject to the fulfillment of all of the following conditions, unless waived by
Selling Stockholder in writing:

		(a)	Representations and Warranties. The Purchaser’s representations and warranties set
forth in this Agreement are true and correct as of the Closing as though made at the Closing except where any untruth or inaccuracy
will not, either individually or in the aggregate, have a RDA Material Adverse Effect.

 

		(b)	Performance of Agreement. The Purchaser shall have performed and observed in all material
respects all obligations and conditions to be performed or observed by it under this Agreement at or prior to the Closing.

 

		(c)	Material Adverse Changes. There has occurred no change in the operations, prospects, assets,
business, or condition (financial or otherwise) of the Purchaser which would have a RDA Material Adverse Effect.

 

		(d)	Deliveries. All documents or instruments required to be delivered by RDA or third parties
at or prior to the Closing shall have been delivered to the Company.

 

		(e)	Approval. This Agreement shall have been approved by all necessary action.

 

		(f)	Consents. The Purchaser shall have procured all third-party consents necessary to effect
the Transaction.

 

		(g)	Form of Actions. All actions to be taken by the Purchaser in connection with consummation
of the Transaction and all documents required to effect the Transaction shall be satisfactory in form and substance to the Selling
Stockholder.

 

 

ARTICLE VII

TERMINATION, SURVIVAL AND MISCELLANEOUS
AGREEMENTS

Section
7.01. Termination. This Agreement may be terminated at any time prior to the Closing as follows: (a) by unanimous written
consent of the Company, Purchaser and Selling Stockholder; or (b) by any Party if either of the remaining Parties has breached
or failed to perform in any material respect any of its representations, warranties, covenants or other agreements contained in
this Agreement which is incapable of being cured or is not cured within thirty (30) days of written notice of default.

Section
7.02. Survival of Representations and Warranties. The covenants, representations and warranties contained herein shall
survive the Closing of the Transaction.

 

ARTICLE VIII

MISCELLANEOUS

Section
8.01. Notices. All notices and other communications under this Agreement to any Party shall be in writing and shall
be deemed given when delivered to that Party, sent by facsimile transmission (with electronic confirmation) to that Party at the
facsimile number for that Party set forth below, mailed by U.S. mail (postage prepaid and return receipt requested) to that Party
at the address for that Party set forth below, or delivered by Federal Express or any similar express delivery service for delivery
to that Party at that address:

 

If to the Purchaser:

RDA Equities, LLC

Attn: Ralph M. Amato

2105 Plantation Village

Dorado, Puerto Rico
00646

T: (619) 895-6900

 

With a copy to:

Philip Magri, Esq.

The Magri Law Firm, PLLC

11 Broadway, Suite 615

New York, NY, 10004

Direct: (954) 303-8027

T: (646) 502-5900

F: (646) 836-9200

pmagri@magrilaw.com

www.magrilaw.com

If to the Company:

1801-1 Yonge Street

Toronto, Ontario M5E 2A3

Canada

Attn: Hrant Isbeceryan

T: (416) 306-2493

 

If to the Selling
Stockholder:

To the address listed on
the Signature Page.

 

Any Party may change its facsimile
number or address for notices under this Agreement at any time by giving the other Parties written notice of the change.

Section
8.02. Non-Waiver. No failure by a Party to insist upon strict compliance with a term or provision of this Agreement,
to exercise any right, or to seek a remedy is a waiver of the right to insist upon such strict compliance, to exercise that or
any other right, or seek that or any other remedy at any other time. This Agreement may not be modified by custom or practice in
the trade, by the actions of the Parties or in any other manner except in writing signed by the party against whom enforcement
is sought.

Section
8.03. Headings. The headings of the various Articles and Sections of this Agreement are not part of the context of this
Agreement, are merely labels to assist in locating such articles and Sections, and shall be ignored in construing this Agreement.

Section
8.04. Counterparts. This Agreement may be executed in multiple counterparts, each of which is an original, but all of
which taken together are one and the same Agreement.

Section
8.05. Entire Agreement. This Agreement (including the Schedules hereto) constitutes the entire agreement between the
Parties with respect to its subject matter and supersedes all prior or contemporaneous discussions, negotiations, agreements and
understandings (both written and oral) among the Parties with respect to such subject matter; and may be amended only by a writing
signed by all Parties.

Section
8.06. Governing Law. This Agreement is governed by and shall be construed in accordance with the laws of New York, without
regard to its principles of conflicts of law. The Parties irrevocably submit to the jurisdiction and venue of any federal or state
court in New York, New York over any dispute arising out of this Agreement and agree that all claims related to any dispute related
to this Agreement shall be heard and determined in any such court. The Parties irrevocably waive, to the fullest extent permitted
by law, any objection they may have to the venue of any dispute brought in any such court or any defense of inconvenient forum
for the maintenance of the dispute. The Parties irrevocably consent to process being served upon them in any site, action or proceeding
before any such court by delivering as provided for notices in Section 8.01 of this Agreement. All rights and remedies of each
Party under this Agreement are cumulative and are in addition to all other rights and remedies available to the Party from time
to time, whether under this Agreement otherwise.

Section
8.07. Binding Effect; Assignment. This Agreement is binding upon, inures to the benefit of and is enforceable by and
against the Parties and their respective heirs, personal representatives, successors and permitted assigns. Neither this Agreement
nor any of the rights, interests or obligations under this Agreement may be transferred or assigned by any of the Parties without
the prior written consent of the other Parties and any attempted assignment in violation of this provision is void.

Section
8.08. Expenses. Except as otherwise specifically provided in this Agreement, each party shall pay the expenses they
may incur in connection with the transactions contemplated by this Agreement, including without limitation the fees and expenses
of legal counsel, accountants and financial advisors.

Section
8.09. Severability. If any provision of this Agreement is determined by a court or other government entity to be unenforceable,
the Parties shall cooperate in good faith to rewrite such provision so that it is enforceable to the maximum extent permitted by
applicable law, and the Parties shall abide by the provisions as rewritten. If any provision of this Agreement cannot be rewritten,
the provision shall be severed from this Agreement, but every other provision of this Agreement shall remain in full force and
effect.

[SIGNATURE PAGE TO FOLLOW]

IN WITNESS
WHEREOF, the Parties have caused this Agreement to be duly executed as of the 23rd day of August 2013.

RDA
EQUITIES, LLC

 

By: /s/ RALPH M. AMATO

Name: Ralph M. Amato

Title: Managing Member

 

 

AUTHENTIC TEAS, INC.

 

 

By: /s/ HRANT ISBECRYAN

Name: Hrant Isbeceryan

Title: President and Director

 

SELLING STOCKHOLDER:

 

 

/s/ EVAN HERSHFIELD

Signature

 

Evan
Hershfield 

Print Name

 

_________________________________

Street Address

 

_________________________________

City, State & Zip

 

	
         

        Number of Shares:
	250,000
	
         

        Total Purchase Price ($0.001 per Share):
	$250ASSET PURCHASE AND REVENUE SHARING AGREEMENT

Exhibit 10.6

ASSET PURCHASE AND REVENUE SHARING AGREEMENT

THIS ASSET PURCHASE AND REVENUE SHARING AGREEMENT (the “Agreement”), dated as of August 23, 2013, is made by and between, Chefs Diet National Co., LLC, a Delaware limited liability company, (the “Buyer”) and eDiets.com, Inc., a Delaware corporation (the “Seller,” and together with the Buyer, the “Parties”).

WHEREAS, the Seller owns certain assets consisting of any and all research, sales, order, and demographic data, a customer data base of approximately 750,000 aggregate historical active and inactive customer/account(s) and lead based designations which are the intellectual property of and owned and managed by the Seller; 

WHEREAS, the Buyer desires to acquire the assets listed on Exhibit A attached hereto (the “Assets”) and the Seller desires to sell the Assets; and

WHEREAS, the Buyer and the Seller have entered into a Letter of Intent pursuant to which the Buyer has made an initial deposit of $100,000 (“Initial Deposit”) into an escrow account opened for this purpose (“Escrow”). 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

SECTION 1.

ASSETS PURCHASED

1.1

The Seller agrees to sell to the Buyer and the Buyer agrees to purchase from the Seller, on the terms and conditions set forth in this Agreement, the Assets. The subscriber list, which forms part of the Assets, shall be delivered in computer readable form acceptable to the Buyer in the manner described in Exhibit A. All information, documents and other materials comprising the Assets shall be delivered to Buyer at the Closing at no further expenses to Buyer.

1.2

It is explicitly agreed that the Buyer will not assume any liabilities, obligations or commitments arising out of or relating to the Assets or the Seller’s business, of whatever kind or nature, whether contingent or absolute, whether known or unknown, whether arising prior to or on or after the date of this Agreement. 

SECTION 2.

PURCHASE PRICE FOR ASSETS.

2.1

The purchase price for the Assets shall be (i) a cash payment of $200,000 (the “Cash Payment”), 50% of which has been deposited into the Escrow on July 29, 2013, (ii) one or more cash payments calculated in accordance with Section 2.3 below and (iii) quarterly cash payments totaling up to a maximum of $900,000 calculated in accordance with Section 2.4 below.

2.2

Within two days following execution of the Agreement, the Buyer shall deposit the remaining 50% of the Cash Payment into the Escrow. The Buyer and the Seller shall instruct the escrow agent to release the full amount of the Cash Payment to the Seller from Escrow upon closing of the transaction contemplated herein (“Closing”). Notwithstanding anything to the contrary contained herein, the Initial Deposit shall be refundable if the Closing does not occur for any reason whatsoever.

2.3

During each of the first four calendar quarters beginning January 1, 2014, the Seller shall become entitled to receive from the Buyer a cash payment of $50,000 if, during such period, both of the following conditions applicable to such period are met or a cash payment of $35,000 if, during such period, either of the following conditions applicable to such period are met:

			
	Period

	Condition One

	Condition Two

	Q1

	At least 72 of current Seller customers each become or remain Buyer 40-Day Customers.

	During the period from Closing to the end of Q1, a total of at least 1.8% of Seller’s former meal delivery customers during the one-year period prior to closing have become Buyer 40-Day Customers.

	Q2

	At least 72 of current Seller customers each remain Buyer 40-Day Customers.

	During Q2 of 2014, a total of at least 3.6% of Seller’s former meal delivery customers during the one-year period prior to closing have become Buyer 40-Day Customers.

	Q3

	At least 72 of current Seller customers each remain Buyer 40-Day Customers.

	During Q3 of 2014, a total of at least 3.6% of Seller’s former meal delivery customers during the one-year period prior to closing have become Buyer 40-Day Customers.

	Q4

	At least 72 of current Seller customers each remain Buyer 40-Day Customers.

	During Q4 of 2014, a total of at least 4.5% of Seller’s former meal delivery customers during the one-year period prior to closing have become Buyer 40-Day Customers.

For the purposes of this Section 2.3, a “former meal delivery customer” shall mean a Seller customer that enrolled in the Seller’s meal delivery program and received at least 40 days of meals during the 12-month period preceding the Closing. A “Buyer 40-Day Customer” shall mean a customer that enrolls in the Buyer’s program after the Closing and receives at least 40 consecutive days of meals, excluding any customer’s requested temporary suspension.

2.4

The Seller shall be entitled to receive from the Buyer (i) in respect of the period from Closing through December 31, 2013, an amount equal to seven percent of Adjusted Gross Revenue for such period (ii) in respect of each of the eight calendar quarters beginning January 1, 2014, an amount equal to the greater of $56,250 or seven percent of Adjusted Gross Revenue for such calendar quarter and (iii) in respect of each of the eight calendar quarters beginning January 1, 2016, an amount equal to the greater of $56,250 or five percent of Adjusted Gross Revenue for such calendar quarter, in all cases from individuals or entities identified in the Selected Assets and recognized by Buyer, as defined under GAAP, and up to an aggregate maximum amount of $900,000. For purposes of clarification, once Buyer shall have paid Seller an aggregate of $900,000 pursuant to this Section 2.4, no further payment under this Section 2.4 shall be due or accrued. As used in this Agreement, “Adjusted Gross Revenue” means gross revenue less refunds, charge backs, bad debt, and sales, value added and other similar taxes (but excluding taxes on net income).  Amounts payable under this Section 2.4 will be calculated on a quarterly basis and paid by Buyer to Seller within fifteen days following the end of the period to which such payment relates. 

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SECTION 3.

TRANSITION OF BUSINESS

3.1

The Seller shall have the right to terminate this Agreement and rescind the transaction contemplated herein in the event that the Buyer fails to launch a prepared frozen meal plan on or before October 1, 2013. In the event that the Seller terminates this Agreement pursuant to this Section 3.1, the Seller shall return to the Buyer, any payment that has been made to the Seller by the Buyer pursuant to this Agreement. In the event that the funds are not returned within two days of any such termination, the Agreement shall continue in full force and effect.

3.2

In connection with the acquisition of the Assets, the Buyer shall (i) consummate a financing in which the Buyer receives at least $250,000, (ii) carry a minimum of 30 SKUs and (iii) enhance the Buyer’s website to be sufficient to support a national program. The Seller shall have the right to terminate this Agreement and rescind the transaction contemplated herein in the event that the Buyer fails to satisfy its obligations under this Section 3.2 on or before October 1, 2013. In the event that the Seller terminates this Agreement pursuant to this Section 3.2, the Seller shall return to the Buyer, any payment that has been made to the Seller by the Buyer pursuant to this Agreement.

3.3

The Seller, for itself and its affiliates, shall retain a perpetual, nonexclusive, worldwide, royalty free right and license to use the Assets in its business; provided, that it shall not utilize the Assets to promote any fresh, frozen or MAP prepared meal program. 

3.4

The Seller hereby grants the Buyer a perpetual, nonexclusive, worldwide, royalty free right and license to use the web content as listed on Exhibit B attached hereto. The Parties shall cooperate with each other to establish a technical infrastructure allowing Seller’s current meal delivery customers to experience a smooth transition to Buyer’s prepared meal service The Seller will ensure that a meal delivery tile on its website redirects to the Buyer’s website until at least December 31, 2018. 

3.5

The Buyer and Seller acknowledge that following Closing through December 31, 2013, Buyer will require certain services from the Seller’s employees.  The Seller hereby agrees to use commercially reasonable efforts to make its employees reasonably available to Buyer as requested for the purpose of assisting Buyer with the transition of meal delivery activities to the Seller without any cost to Buyer. The parties both anticipate that the vast majority of such services will be required in the first 45 days following Closing.  The anticipated services which shall be provided include, but are not limited to, weekly mentions of Buyer on all of Seller’s Social Media Outlets until December 31, 2013.  These mentions shall direct subscribers to Buyer’s social media profiles and sites.

3.6

During the six (6) months following the Closing, the Buyer shall have the right to access any of the Seller’s computer, software, network, electronic files or electronic data storage systems therein.  The Buyer shall limit (and as applicable, cause its designees to limit) such access and use the foregoing items solely to retrieve Buyer’s materials and shall not access or attempt to access any computer, software, network, electronic files or electronic data storage system other than those allowed for under this Agreement.  The Seller agrees to reasonably cooperate (and cause its personnel to reasonably cooperate) with Buyer or its designees with respect to such access.

3.7

During the period between the date of this Agreement and Closing, the Seller shall continue to conduct its business only in the ordinary course and will not undertake any extraordinary business activities without the Buyer’s consent.  

3

SECTION 4.

NO SHOP

From and after the date of this Agreement until Closing and except as contemplated by this Agreement, neither the Seller nor any of its affiliates or agents will solicit or encourage inquiries or proposals or participate in any negotiations or discussions concerning, directly or indirectly, (i) disposition of the Assets other than the transactions contemplated by this Agreement, (ii) acquisition of any capital stock or other voting securities, or any substantial portion of the assets of the Seller, or (iii) a merger or consolidation where the Seller is not the surviving entity.  Further, the Seller will instruct its officers, directors, agents and affiliates to refrain from engaging in any of the activities described in the preceding sentence.

SECTION 5.

SELLER’S REPRESENTATIONS AND WARRANTIES

Seller represents and warrants as follows:

5.1

CORPORATE EXISTENCE.

Seller is now and on the date of closing will be a corporation duly organized and validly existing and in good standing under the laws of the State of Delaware.  Seller has all requisite corporate power and authority to own and/or operate the Assets, as the case may be.

5.2

AUTHORIZATION.

The execution, delivery and performance of this Agreement have been duly authorized and approved by the necessary corporate action, including, but not limited to, authorization of the board of directors and the sole shareholder of Seller, and this Agreement constitutes a valid and binding agreement of Seller in accordance with its terms.

5.3

TITLE TO ASSETS. Seller holds good and marketable title to the Assets, free and clear of restrictions on or conditions to transfer or assignment, and free and clear of liens, pledges, charges or encumbrances.

5.4

PRIVACY RIGHTS.  Seller acknowledges that the customer list contains certain personal information related to its customers, including but not limited to, names, addresses, phone numbers, email addresses and customer’s past buying habits.  Seller represents that it has the right to transfer the customer list to Buyer and the transfer of such list does not violate any privacy right held by such customers or communicated to such customers by Seller.

5.5

BROKERS AND FINDERS.

Seller has not employed any broker or finder in connection with the transaction contemplated by this Agreement or taken action that would give rise to valid claims against any party for a brokerage commission, finder’s fee or other like payment.

5.6

TRANSFER NOT SUBJECT TO ENCUMBRANCES OR THIRD PARTY APPROVAL. The execution and delivery of this Agreement by Seller, and the consummation of the contemplated transactions, will not result in the creation or imposition of any valid lien, charge or encumbrance on any of the Assets, and will not require the authorization, consent, or approval of any third party, including any governmental division or regulatory agency.

5.7

COMPLEMENTARY ASSETS. Other than the transfer of the Assets to the Buyer, the Seller has not transferred or attempted to transfer any assets related or complementary to the Assets to any Person.

4

5.8

LITIGATION. There is no judgment, order, injunction, decree or award (whether rendered by a court, administrative agency or by arbitration) to which the Seller is a party that, either individually or in the aggregate, would have a material adverse effect on the transactions contemplated by this Agreement and that there is no judgment, and or, injunction, decree or award which relates to the Assets being transferred.

 

5.9

BANKRUPTCY.  None of the Seller or any Affiliate of the Seller has had or currently intends to have any petition for a receiving order in bankruptcy filed against it, has made or currently intends to make a voluntary assignment in bankruptcy, has initiated or currently intends to initiate any proceeding with respect to a compromise or arrangement, has initiated or intends to initiate any proceeding to have itself declared bankrupt or wound-up, has initiated or intends to initiate any proceeding to have a receiver appointed to any part of its assets, has had any creditor take or currently anticipates that any creditor will take possession of any of its property, or has had any of the foregoing become enforceable or currently anticipates that any of the foregoing will become enforceable upon any of its property.

SECTION 6.

REPRESENTATIONS OF BUYER

Buyer represents and warrants as follows:

6.1

CORPORATE EXISTENCE.

Buyer is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware.  Buyer has all requisite corporate power and authority to enter into this Agreement and perform its obligations hereunder.

6.2

AUTHORIZATION.

The execution, delivery and performance of this Agreement have been duly authorized and approved by any necessary corporate action, and this Agreement constitutes a valid and binding agreement of Buyer in accordance with its terms.

6.3

BROKERS AND FINDERS.

Buyer has not employed any broker or finder in connection with the transactions contemplated by this Agreement and has taken no action that would give rise to a valid claim against any party for a brokerage commission, finder’s fee or other like payment.

SECTION 7.

CLOSING AND TERMINATION

7.1

Unless this agreement is earlier terminated in accordance with Section 7.7, the Closing shall take place on or before September 30, 2013 or on such earlier date when each of the conditions set forth in this Section 7 have been satisfied or waived (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions), or at such other time as the Parties may agree (the “Closing Date”). The Closing shall take place at the offices of Sichenzia Ross Friedman and Ference, 61 Broadway, New York, NY 10006 or at such other location as the Parties hereto agree.

7.2

The respective obligations of each Party hereto to consummate the transaction contemplated herein shall be subject to the satisfaction at or prior to the Closing of each of the following conditions:

 

(i)       No temporary restraining order, preliminary or permanent injunction or other order issued by any court of competent jurisdiction or other legal or regulatory restraint or prohibition preventing the consummation of the transactions contemplated herein shall be in effect, nor shall any action have been taken by any governmental authority seeking any 

5

of the foregoing, and no statute, rule, regulation or order shall have been enacted, entered, enforced or deemed applicable to the transaction contemplated herein, which makes the consummation of the transaction contemplated herein illegal.

 

(ii)       The Parties shall have made all necessary filings and received all necessary governmental, regulatory, third party and shareholder approvals and consents in order to consummate the transaction contemplated herein.   

 

7.3

The obligations of the Seller to consummate the transactions contemplated hereby shall be subject to the satisfaction at or prior to the Closing of each of the following conditions (it being understood that each such condition is solely for the benefit of the Seller and may be waived by the Seller in writing in its sole discretion without notice, liability or obligation to any person):

 

(i)       The representations and warranties of the Buyer in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality, which representations and warranties as so qualified shall be true and correct in all respects) on and as of the date of this Agreement and on and as of the Closing Date as though such representations and warranties were made on and as of such date (except for representations and warranties which address matters only as to a specified date, which representations and warranties shall be true and correct with respect to such specified date). The Buyer shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it at or prior to the Closing.

 

(ii)

There shall be no material adverse change in the operations, assets, results of operations, or condition, financial or otherwise, of the Buyer.

 

7.4

The obligations of the Buyer to consummate the transactions contemplated hereby shall be subject to the satisfaction at or prior to the Closing of each of the following conditions (it being understood that each such condition is solely for the benefit of the Buyer and may be waived by the Buyer in writing in its sole discretion without notice, liability or obligation to any person):

 

(i)       The representations and warranties of the Seller in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality, which representations and warranties as so qualified shall be true and correct in all respects) on and as of the date of this Agreement and on and as of the Closing Date as though such representations and warranties were made on and as of such date (except for representations and warranties which address matters only as to a specified date, which representations and warranties shall be true and correct with respect to such specified date). The Seller shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it at or prior to the Closing. 

(ii)

The Buyer shall have completed a satisfactory business, financial and legal due diligence of the Seller, which will be completed on or before August 15, 2013.

 

(iii)       The Buyer shall have received each of the deliveries required to be made by the Seller to the Buyer pursuant to Section 7.5.

6

 

7.5

At the Closing, the Seller shall execute and deliver to the Buyer a certificate dated as of the Closing Date, executed on behalf of the Seller by its President, to the effect that (i) the representations and warranties of the Seller provided in Article 5 are true and correct as of the Closing Date, and (ii) there shall not have occurred a material adverse effect with respect to the Seller since the date of the Agreement.

   

7.6

All transactions contemplated herein to occur on and as of the Closing Date shall be deemed to have occurred simultaneously and to be effective as of the close of business on the Closing Date; provided, however, that none of such transactions shall be deemed to have occurred unless and until all of the conditions to closing described in Sections 7.2, 7.3 and 7.4 and each of the deliverables and actions referenced in Section 7.5 shall have been delivered and taken in accordance therewith.

  

7.7

At any time prior to the Closing, this Agreement may be terminated and the transactions contemplated hereby abandoned by authorized action taken by the terminating Party:

 

(a)       by mutual written consent duly authorized by the Parties;

 

(b)       by either Party, if the Closing shall not have occurred on or before September 30, 2013 or such other date that the Parties may agree upon in writing (the “Termination Date”); provided, however, that the right to terminate this Agreement under this Section 7.7(b) shall not be available to any Party whose breach of this Agreement has resulted in the failure of the Closing to occur on or before the Termination Date;

 

(c)       by either Party, if any permanent injunction or other order of a governmental authority preventing the consummation of the transactions contemplated hereby shall have become final and nonappealable;

 

(d)       by the Seller, if the Buyer shall have breached any representation, warranty, covenant or agreement contained herein and such breach shall not have been cured within five business days after receipt by the Buyer of written notice of such breach (provided, however, that no such cure period shall be available or applicable to any such breach which by its nature cannot be cured) and if not cured within the timeframe above and at or prior to the Closing, such breach would result in the failure of any of the conditions set forth in Section 7.3 to be satisfied; or

 

(e)       by the Buyer, if the Seller shall have breached any representation, warranty, covenant or agreement contained herein and such breach shall not have been cured within five business days after receipt by the Seller of written notice of such breach (provided, however, that no such cure period shall be available or applicable to any such breach which by its nature cannot be cured) and if not cured within the timeframe above and at or prior to the Closing, such breach would result in the failure of any of the conditions set forth in Section 7.4 to be satisfied.

 

7.8

In the event of termination of this Agreement as provided in Section 7.7, this Agreement shall forthwith become void and there shall be no liability or obligation on the part of the Parties, or their respective officers, directors, stockholders or affiliates; provided, however, that (a) this Section 7.8 and Section 8 (Miscellaneous) shall remain in full force and effect and survive any termination of this Agreement and (b) nothing herein shall relieve any Party hereto from liability in connection with any breach of such Party’s representations, warranties or covenants contained herein.

7

SECTION 8.

MISCELLANEOUS

8.1

Except as otherwise provided herein, no Party shall assign or transfer this Agreement or any rights or obligations hereunder without the prior written consent of the other Party, and any such attempted assignment without such prior written consent shall be void and of no force and effect. With written notice to the other Party, a Party may assign or transfer this Agreement to an entity controlling, controlled by or under common control with such Party, (ii) as part of a sale of substantially all of such Party’s assets or (iii) in connection with a merger of such Party with or into another entity; provided, that in each such case the assigning or transferring Party shall remain fully and primarily liable hereunder. The provisions of this Agreement shall be binding upon and inure to the benefit of the heirs, personal representatives, successors, and assigns of the Parties.

8.2

This Agreement shall be governed by and shall be construed in accordance with the laws of the State of New York. EACH PARTY HERETO AGREES TO SUBMIT TO THE PERSONAL JURISDICTION AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN NEW YORK FOR RESOLUTION OF ALL DISPUTES ARISING OUT OF, IN CONNECTION WITH, OR BY REASON OF THE INTERPRETATION, CONSTRUCTION AND ENFORCEMENT OF THIS AGREEMENT, AND HEREBY WAIVES THE CLAIM OR DEFENSE THEREIN THAT SUCH COURTS CONSTITUTE AN INCONVENIENT FORUM. AS A MATERIAL INDUCEMENT FOR THIS AGREEMENT, EACH PARTY SPECIFICALLY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY ISSUES SO TRIABLE.  The substantially prevailing party in any litigation arising hereunder shall be entitled to an award of a reasonable sum as attorneys fees and costs incurred in connection with such litigation.

8.3

Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be mailed by certified mail, return receipt requested, postage prepaid, addressed to the parties as follows:

To the Buyer:

Chefs Diet National Co., LLC

108 West 39 Street

Suite 902

New York, NY 10018

Telephone: 718-444-0246

Facsimile: 718-444-0463

Attn: Kevin Glodek, CEO

With a copy to:

Sichenzia Ross Friedman Ference LLP

61 Broadway, 32nd Floor

New York, New York 10006

Telephone: (212) 930-9700 

Facsimile: (212) 930-9725

Attn: Arthur Marcus, Esq.

To the Seller:

eDiets.com, Inc.

14044 Icot Blvd.

Clearwater, FL 33760

Telephone: (727) 288-2739

Facsimile: (727) 213-9024

Attn: Adrian Swaim, Controller

8

8.4

This Agreement constitutes the entire agreement between the parties pertaining to its subject matter and it supersedes all prior contemporaneous agreements, representations, and understandings of the parties.  No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by all parties.

8.5 

This Agreement may be executed and delivered in two or more counterparts, each of which, when so executed and delivered, shall be an original, and such counterparts together shall constitute but one and the same instrument and agreement, and the Agreement shall not be binding on any party until all parties have executed it.  This Agreement may be signed by a facsimile or electronic signature, which shall have the same force and effect as an original signature.

8.6

All federal, state and local sales, transfer, gains, excise, value-added or other similar taxes, including, without limitation, all state and local taxes in connection with the transfer of the Assets (collectively, “Transaction Taxes”) that may be imposed by reason of the sale, transfer, assignment and delivery of the Assets shall be paid one half by Purchaser and one half by Seller.  Buyer and Seller agree to cooperate to determine the amount of Transaction Taxes payable in connection with the transactions contemplated under this Agreement.  Purchaser and Seller agree to cooperate in the preparation and filing of any and all required returns for or with respect to such Transaction Taxes with any and all appropriate taxing authorities.

8.7

In the event that any part of this Agreement is declared by any court or other judicial or administrative body to be null, void or unenforceable, said provision shall survive to the extent it is not so declared, and all of the other provisions of this Agreement shall remain in full force and effect only if, after excluding the portion deemed to be unenforceable, the remaining terms shall provide for the consummation of the transactions contemplated hereby in substantially the same manner as originally set forth at the later of the date this Agreement was executed or last amended.

8.8

The Exhibits attached to, delivered with and identified to this Agreement are a part of this Agreement the same as if fully set forth herein.

8.9

At the request of Buyer, at any time after the Closing Date, Seller shall execute and deliver such documents and take such commercially reasonable actions as Buyer may reasonably request to effectuate the purposes of this Agreement. Without limiting the generality of the foregoing, if the Buyer is required by its independent auditor or by any governmental agency to provide audited financial statements for periods prior to Closing relating to the Seller’s business or any segment incorporating the Assets, the Seller shall prepare and deliver such financial statements at its own expense within a commercially reasonable period of time.

8.10

The Seller shall defend, indemnify and hold the Buyer, and its officers, directors, employees, agents, contractors, managers, partners, members and other similar agents, harmless from any and all claims, losses, liabilities or other damages (collectively, “Damages”) arising from or related to any action, lawsuit, judgment, claim, investigation or legal or administrative proceeding brought by or against the Seller and involving the Assets or the transactions contemplated by this Agreement; provided, that the Seller’s aggregate liability for Damages under this Section 8.10 will not exceed the sum of all payments received by the Seller under this Agreement (the “Damages Limitations”).  The Damages Limitation shall not be applicable to any suit brought against the Buyer related to Seller’s violation of the privacy rights of its customers.  In the event of such a suit, Seller’s indemnification shall not be subject to the Damages Limitation.

9

8.11 If any Action is commenced or threatened that may give rise to a claim for indemnification (an “Indemnification Claim”) by any person entitled to indemnification under this Agreement (each, an “Indemnified Person”) against the Seller, then such Indemnified Person will promptly give written notice to the Seller of such Indemnification Claim including a description thereof in reasonable detail sufficient for the Seller to assess whether such claim is a valid Indemnification Claim (an “Indemnification Notice”).  Failure to notify the Seller will not relieve the Seller of any liability that it may have to the Indemnified Person, except to the extent the defense of such Action is materially and irrevocably prejudiced by the Indemnified Person’s failure to give such notice.  In the event of an Indemnification Claim that arises out of the claim of any third party, the Seller may elect at any time to assume and thereafter conduct the defense of the Indemnification Claim, at the Seller’s expense, with counsel of the Seller’s choice satisfactory to the Indemnified Person.  Until the Seller assumes the defense of such Indemnification Claim, the Indemnified Person may defend against the Indemnification Claim in any manner the Indemnified Person reasonably may deem appropriate and the reasonable costs of such defense shall be borne by the Seller and shall be deemed Damages hereunder.  In the event the Seller assumed the defense of any Indemnification Claim, the Seller will not approve of the entry of any judgment or enter into any settlement with respect to the Indemnification Claim without the Indemnified Person’s prior written consent. 

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10

Witness the signatures of the parties this 23rd day of August 2013.

			
	 
	CHEFS DIET NATIONAL CO., LLC

	 
	 
	 

	 
	 
	 

	 
	By:

	/s/ Kevin Glodek

	 
	Name: 

	Kevin Glodek

	 
	Title: 

	Chief Executive Officer

	 
	 
	 

	 
	 
	 

	 
	eDIETS.COM, INC.

	 
	 
	 

	 
	 
	 

	 
	By:

	/s/ Ronald C. Pruett, Jr.

	 
	Name: 

	Ronald C. Pruett, Jr.

	 
	Title: 

	Chief Executive Officer

THE UNDERSIGNED HEREBY UNCONDITIONALLY GUARANTEES PERFORMANCE OF THE OBLIGATIONS SET FORTH IN SECTIONS 2.3 AND 2.4, ABOVE, JOINTLY AND SEVERALLY WITH THE BUYER.

			
	 
	CHEF’S DIET CORP.

	 
	 
	 

	 
	 
	 

	 
	By:

	/s/ David Mayer

	 
	Name: 

	David Mayer

	 
	Title: 

	Chief Executive Officer

 

11

EXHIBIT A

ASSETS

Data Sets:

·

Relational Database Map

·

To the Extent Available to Seller, Data Sets with Information Pertaining to:

o

Contact

o

Lead Source

o

Purchase History

o

Meal Preferences

o

Profile Details

o

Demographics

o

Customer Service Interaction Logs for all Meal Delivery Services Clients

o

Sales Interaction Logs for all Meal Delivery Services Clients

o

Diet Profiler which includes the general profile of the customer and other demographics

o

List of questions that have been utilized in the past and answers from existing clients

12

EXHIBIT B

LICENSED CONTENT

Marketing Intel:

·

Sample Meal Delivery Client Login with History

·

Sample Non-Meal Delivery Client with History

·

E-mail Creative Pieces that had the highest open rates (top 10)

·

Landing Page Links with the highest conversion (Top 10)

·

Unsubscribes

·

Google Analytics Login

·

Contact information for clients who have previously provided testimonials 

·

Direct Mail Pieces related to meal delivery used in past

·

Any other marketing materials including e-mail blasts and infomercials

·

TV Advertisement (for informational purposes only not to be reused by Buyer)

13

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