Document:

THIS
        WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
        NOT
        BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
        AND
        THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
        OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
        REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY
        SATISFACTORY TO INNOVATIVE FOOD HOLDINGS, INC. THAT SUCH REGISTRATION IS
        NOT
        REQUIRED.

      

      
        	 	
                Right
                  to Purchase _________ shares of Common Stock of Innovative Food
                  Holdings,
                  Inc. (subject to adjustment as provided
                  herein)

              

      

      

      CLASS C
        COMMON STOCK PURCHASE WARRANT

      

      
        	 	 
	
                No. 2005-C-001

              	
                Issue
                  Date: February ____, 2005

              
	 	 

      

    

    
       

      
        INNOVATIVE
          FOOD HOLDINGS, INC., a corporation organized under the laws of the State
          of
          Florida (the “Company”), hereby certifies that, for value received,
          NAME,
          or its assigns (the “Holder”), is entitled, subject to the terms set forth
          below, to purchase from the Company at any time after the Issue Date until
          5:00
          p.m., E.S.T on the one hundred and eightieth day (180th)
          day after the Registration Statement (as defined in Section 11.1(iv) of
          the
          Subscription Agreement (as defined below) has been effective for the public
          and
          unrestricted resale of the Warrant Shares (the “Expiration Date”), up to
          ________ fully paid and nonassessable shares of Common Stock at a per share
          purchase price of $.005. The aforedescribed purchase price per share, as
          adjusted from time to time as herein provided, is referred to herein as
          the
          "Purchase Price." The number and character of such shares of Common Stock
          and
          the Purchase Price are subject to adjustment as provided herein. The Company
          may
          reduce the Purchase Price without the consent of the Holder. Capitalized
          terms
          used and not otherwise defined herein shall have the meanings set forth
          in that
          certain Subscription Agreement (the “Subscription
          Agreement”),
          dated February ___, 2005, entered into by the Company and Holder’s of the Class
          B Warrants.

         

      

      As
        used
        herein the following terms, unless the context otherwise requires, have the
        following respective meanings: 

       

      (a) The
        term
“Company” shall include Innovative Food Holdings, Inc. and any corporation which
        shall succeed or assume the obligations of Innovative Food Holdings, Inc.
        hereunder. 

       

      (b) The
        term
“Common Stock” includes (a) the Company's Class A Common Stock, $.00001 par
        value per share, as authorized on the date of the Subscription Agreement,
        and
        (b) any other securities into which or for which any of the securities described
        in (a) may be converted or exchanged pursuant to a plan of
        recapitalization, reorganization, merger, sale of assets or
        otherwise.

       

      (c) The
        term
“Other Securities” refers to any stock (other than Common Stock) and other
        securities of the Company or any other person (corporate or otherwise) which
        the
        holder of the Warrant at any time shall be entitled to receive, or shall
        have
        received, on the exercise of the Warrant, in lieu of or in addition to Common
        Stock, or which at any time shall be issuable or shall have been issued in
        exchange for or in replacement of Common Stock or Other Securities pursuant
        to
        Section 5 or otherwise. 

       

      (d) The
        term
“Warrant Shares” shall mean the Common Stock issuable upon exercise of this
        Warrant.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      
      

      1. Exercise
        of Warrant.

       

      1.1. Number
        of Shares Issuable upon Exercise.
        From
        and after the Issue Date through and including the Expiration Date, the Holder
        hereof shall be entitled to receive, upon exercise of this Warrant in whole
        in
        accordance with the terms of subsection 1.2 or upon exercise of this
        Warrant in part in accordance with subsection 1.3, shares of Common
        Stock
        of the Company, subject to adjustment pursuant to Section 4.

       

      1.2. Full
        Exercise.
        This
        Warrant may be exercised in full by the Holder hereof by delivery of an original
        or facsimile copy of the form of subscription attached as Exhibit A
        hereto
        (the “Subscription Form") duly executed by such Holder and surrender of the
        original Warrant within four (4) days of exercise, to the Company at its
        principal office or at the office of its Warrant Agent (as provided
        hereinafter), accompanied by payment, in cash, wire transfer or by certified
        or
        official bank check payable to the order of the Company, in the amount obtained
        by multiplying the number of shares of Common Stock for which this Warrant
        is
        then exercisable by the Purchase Price then in effect. 

       

      1.3. Partial
        Exercise.
        This
        Warrant may be exercised in part (but not for a fractional share) by surrender
        of this Warrant in the manner and at the place provided in subsection 1.2
        except that the amount payable by the Holder on such partial exercise shall
        be
        the amount obtained by multiplying (a) the number of whole shares
        of Common
        Stock designated by the Holder in the Subscription Form by (b) the
        Purchase
        Price then in effect. On any such partial exercise, the Company, at its expense,
        will forthwith issue and deliver to or upon the order of the Holder hereof
        a new
        Warrant of like tenor, in the name of the Holder hereof or as such Holder
        (upon
        payment by such Holder of any applicable transfer taxes) may request, the
        whole
        number of shares of Common Stock for which such Warrant may still be
        exercised.

       

      1.4. Fair
        Market Value.
        Fair
        Market Value of a share of Common Stock as of a particular date (the
        "Determination Date") shall mean: 

       

      (a) If
        the
        Company's Common Stock is traded on an exchange or is quoted on the National
        Association of Securities Dealers, Inc. Automated Quotation ("NASDAQ"), National
        Market System, the NASDAQ SmallCap Market or the American Stock Exchange,
        LLC,
        then the closing or last sale price, respectively, reported for the last
        business day immediately preceding the Determination Date;

       

      (b) If
        the
        Company's Common Stock is not traded on an exchange or on the NASDAQ National
        Market System, the NASDAQ SmallCap Market or the American Stock Exchange,
        Inc.,
        but is traded in the over-the-counter market, then the average of the closing
        bid and ask prices reported for the last business day immediately preceding
        the
        Determination Date;

       

      (c) Except
        as
        provided in clause (d) below, if the Company's Common Stock is not
        publicly
        traded, then as the Holder and the Company agree, or in the absence of such
        an
        agreement, by arbitration in accordance with the rules then standing of the
        American Arbitration Association, before a single arbitrator to be chosen
        from a
        panel of persons qualified by education and training to pass on the matter
        to be
        decided; or

       

      (d) If
        the
        Determination Date is the date of a liquidation, dissolution or winding up,
        or
        any event deemed to be a liquidation, dissolution or winding up pursuant
        to the
        Company's charter, then all amounts to be payable per share to holders of
        the
        Common Stock pursuant to the charter in the event of such liquidation,
        dissolution or winding up, plus all other amounts to be payable per share
        in
        respect of the Common Stock in liquidation under the charter, assuming for
        the
        purposes of this clause (d) that all of the shares of Common Stock
        then
        issuable upon exercise of all of the Warrants are outstanding at the
        Determination Date.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

       

      1.5. Company
        Acknowledgment.
        The
        Company will, at the time of the exercise of the Warrant, upon the request
        of
        the Holder hereof acknowledge in writing its continuing obligation to afford
        to
        such Holder any rights to which such Holder shall continue to be entitled
        after
        such exercise in accordance with the provisions of this Warrant. If the Holder
        shall fail to make any such request, such failure shall not affect the
        continuing obligation of the Company to afford to such Holder any such
        rights.

       

      1.6. Trustee
        for Warrant Holders.
        In the
        event that a bank or trust company shall have been appointed as trustee for
        the
        Holder of the Warrants pursuant to Subsection 3.2, such bank or trust
        company shall have all the powers and duties of a warrant agent (as hereinafter
        described) and shall accept, in its own name for the account of the Company
        or
        such successor person as may be entitled thereto, all amounts otherwise payable
        to the Company or such successor, as the case may be, on exercise of this
        Warrant pursuant to this Section 1. 

       

        1.7 Delivery
        of Stock Certificates, etc. on Exercise.
        The
        Company agrees that the shares of Common Stock purchased upon exercise of
        this
        Warrant shall be deemed to be issued to the Holder hereof as the record owner
        of
        such shares as of the close of business on the date on which this Warrant
        shall
        have been surrendered and payment made for such shares as aforesaid. As soon
        as
        practicable after the exercise of this Warrant in full or in part, and in
        any
        event within four (4) business
        days
        thereafter, the Company at its expense (including the payment by it of any
        applicable issue taxes) will cause to be issued in the name of and delivered
        to
        the Holder hereof, or as such Holder (upon payment by such Holder of any
        applicable transfer taxes) may direct in compliance with applicable securities
        laws, a certificate or certificates for the number of duly and validly issued,
        fully paid and nonassessable shares of Common Stock (or Other Securities)
        to
        which such Holder shall be entitled on such exercise, plus, in lieu of any
        fractional share to which such Holder would otherwise be entitled, cash equal
        to
        such fraction multiplied by the then Fair Market Value of one full share
        of
        Common Stock, together with any other stock or other securities and property
        (including cash, where applicable) to which such Holder is entitled upon
        such
        exercise pursuant to Section 1 or otherwise. 

       

      2. Cashless
        Exercise.

       

      (a) If
        a
        Registration Statement (as defined in the Subscription Agreement) (“Registration
        Statement”) is effective and the Holder may sell its shares of Common Stock upon
        exercise hereof pursuant to the Registration Statement, this Warrant may
        be
        exercisable in whole or in part for cash only as set forth in Section 1 above.
        If no such Registration Statement is available
        during
        the time that such Registration Statement is required to be effective pursuant
        to the terms of the Subscription Agreement, then payment upon exercise may
        be
        made at the option of the Holder either in (i) cash, wire transfer
        or by
        certified or official bank check payable to the order of the Company equal
        to
        the applicable aggregate Purchase Price, (ii) by delivery of Common Stock
        issuable upon exercise of the Warrants in accordance with
        Section (b) below or (iii) by a combination of any of
        the
        foregoing methods, for the number of Common Stock specified in such form
        (as
        such exercise number shall be adjusted to reflect any adjustment in the total
        number of shares of Common Stock issuable to the holder per the terms of
        this
        Warrant) and the holder shall thereupon be entitled to receive the number
        of
        duly authorized, validly issued, fully-paid and non-assessable shares of
        Common
        Stock (or Other Securities) determined as provided herein.

       

      (b) If
        the
        Fair Market Value of one share of Common Stock is greater than the Purchase
        Price (at the date of calculation as set forth below), in lieu of exercising
        this Warrant for cash, the holder may elect to receive shares equal to the
        value
        (as determined below) of this Warrant (or the portion thereof being cancelled)
        by surrender of this Warrant at the principal office of the Company together
        with the properly endorsed Subscription Form in which event the Company shall
        issue to the holder a number of shares of Common Stock computed using the
        following formula:

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
        
           

          
            
              	 	
                      X=

                    	
                      Y
                        (A-B)

                    

            

            
              	 	 	   A

            

          

              

        

      

      
        
          	 Where 	
                  X=

                	
                  the
                    number of shares of Common Stock to be issued to the
                    holder

                

        

          

      

      
        	 	
                Y=

              	
                the
                  number of shares of Common Stock purchasable under the Warrant
                  or, if only
                  a portion of the Warrant is being exercised, the portion of the
                  Warrant
                  being exercised (at the date of such
                  calculation)

              

      

      
      

      
        	 	
                A=

              	
                the
                  Fair Market Value of one share of the Company’s Common Stock (at the date
                  of such calculation)

              

      

      
      

      
        	 	
                B=

              	
                Purchase
                  Price (as adjusted to the date of such
                  calculation)

              

      

       

      (c)  The
        Holder may employ the cashless exercise feature described in Section (b)
        above
        only during the pendency of a Non-Registration Event as described in Section
        11
        of the Subscription Agreement.

       

      For
        purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood
        and acknowledged that the Warrant Shares issued in a cashless exercise
        transaction shall be deemed to have been acquired by the Holder, and the
        holding
        period for the Warrant Shares shall be deemed to have commenced, on the date
        this Warrant was originally issued pursuant to the Subscription
        Agreement.

       

      3. Adjustment
        for Reorganization, Consolidation, Merger, etc.

       

      3.1. Reorganization,
        Consolidation, Merger, etc.
        In case
        at any time or from time to time, the Company shall (a) effect a
        reorganization, (b) consolidate with or merge into any other person
        or
        (c) transfer all or substantially all of its properties or assets
        to any
        other person under any plan or arrangement contemplating the dissolution
        of the
        Company, then, in each such case, as a condition to the consummation of such
        a
        transaction, proper and adequate provision shall be made by the Company whereby
        the Holder of this Warrant, on the exercise hereof as provided in
        Section 1, at any time after the consummation of such reorganization,
        consolidation or merger or the effective date of such dissolution, as the
        case
        may be, shall receive, in lieu of the Common Stock (or Other Securities)
        issuable on such exercise prior to such consummation or such effective date,
        the
        stock and other securities and property (including cash) to which such Holder
        would have been entitled upon such consummation or in connection with such
        dissolution, as the case may be, if such Holder had so exercised this Warrant,
        immediately prior thereto, all subject to further adjustment thereafter as
        provided in Section 4.

       

      3.2. Dissolution.
        In the
        event of any dissolution of the Company following the transfer of all or
        substantially all of its properties or assets, the Company, prior to such
        dissolution, shall at its expense deliver or cause to be delivered the stock
        and
        other securities and property (including cash, where applicable) receivable
        by
        the Holder of the Warrants after the effective date of such dissolution pursuant
        to this Section 3 to a bank or trust company (a "Trustee") having
        its
        principal office in New York, NY, as trustee for the Holder of the
        Warrants. 

       

      3.3. Continuation
        of Terms.
        Upon
        any reorganization, consolidation, merger or transfer (and any dissolution
        following any transfer) referred to in this Section 3, this Warrant
        shall
        continue in full force and effect and the terms hereof shall be applicable
        to
        the Other Securities and property receivable on the exercise of this Warrant
        after the consummation of such reorganization, consolidation or merger or
        the
        effective date of dissolution following any such transfer, as the case may
        be,
        and shall be binding upon the issuer of any Other Securities, including,
        in the
        case of any such transfer, the person acquiring all or substantially all
        of the
        properties or assets of the Company, whether or not such person shall have
        expressly assumed the terms of this Warrant as provided in Section 4.
        In
        the event this Warrant does not continue in full force and effect after the
        consummation of the transaction described in this Section 3, then
        only in
        such event will the Company's securities and property (including cash, where
        applicable) receivable by the Holder of the Warrants be delivered to the
        Trustee
        as contemplated by Section 3.2.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

       

      3.4 Share
        Issuance.
        Until
        the Expiration Date, if the Company shall issue any Common Stock except for
        the
        Excepted Issuance (as defined in the Subscription Agreement), prior to the
        complete exercise of this Warrant for a consideration less than the Purchase
        Price that would be in effect at the time of such issue, then, and thereafter
        successively upon each such issue, the Purchase Price shall be reduced to
        such
        other lower issue price. For purposes of this adjustment, the issuance of
        any
        security or debt instrument of the Company carrying the right to convert
        such
        security or debt instrument into Common Stock or of any warrant, right or
        option
        to purchase Common Stock shall result in an adjustment to the Purchase Price
        upon the issuance of the above-described security, debt instrument, warrant,
        right, or option and again at any time upon any subsequent issuances of shares
        of Common Stock upon exercise of such conversion or purchase rights if such
        issuance is at a price lower than the Purchase Price in effect upon such
        issuance. The reduction of the Purchase Price described in this Section 3.4
        is
        in addition to the other rights of the Holder described in the Subscription
        Agreement.

       

      4. Extraordinary
        Events Regarding Common Stock.
        In the
        event that the Company shall (a) issue additional shares of the Common
        Stock as a dividend or other distribution on outstanding Common Stock,
        (b) subdivide its outstanding shares of Common Stock, or (c) combine
        its outstanding shares of the Common Stock into a smaller number of shares
        of
        the Common Stock, then, in each such event, the Purchase Price shall,
        simultaneously with the happening of such event, be adjusted by multiplying
        the
        then Purchase Price by a fraction, the numerator of which shall be the number
        of
        shares of Common Stock outstanding immediately prior to such event and the
        denominator of which shall be the number of shares of Common Stock outstanding
        immediately after such event, and the product so obtained shall thereafter
        be
        the Purchase Price then in effect. The Purchase Price, as so adjusted, shall
        be
        readjusted in the same manner upon the happening of any successive event
        or
        events described herein in this Section 4. The number of shares of
        Common
        Stock that the Holder of this Warrant shall thereafter, on the exercise hereof
        as provided in Section 1, be entitled to receive shall be adjusted
        to a
        number determined by multiplying the number of shares of Common Stock that
        would
        otherwise (but for the provisions of this Section 4) be issuable on
        such
        exercise by a fraction of which (a) the numerator is the Purchase
        Price
        that would otherwise (but for the provisions of this Section 4) be
        in
        effect, and (b) the denominator is the Purchase Price in effect on
        the date
        of such exercise.

       

      5. Certificate
        as to Adjustments.
        In each
        case of any adjustment or readjustment in the shares of Common Stock (or
        Other
        Securities) issuable on the exercise of the Warrants, the Company at its
        expense
        will promptly cause its Chief Financial Officer or other appropriate designee
        to
        compute such adjustment or readjustment in accordance with the terms of the
        Warrant and prepare a certificate setting forth such adjustment or readjustment
        and showing in detail the facts upon which such adjustment or readjustment
        is
        based, including a statement of (a) the consideration received or
        receivable by the Company for any additional shares of Common Stock (or Other
        Securities) issued or sold or deemed to have been issued or sold, (b) the
        number of shares of Common Stock (or Other Securities) outstanding or deemed
        to
        be outstanding, and (c) the Purchase Price and the number of shares
        of
        Common Stock to be received upon exercise of this Warrant, in effect immediately
        prior to such adjustment or readjustment and as adjusted or readjusted as
        provided in this Warrant. The Company will forthwith mail a copy of each
        such
        certificate to the Holder of the Warrant and any Warrant Agent of the Company
        (appointed pursuant to Section 11 hereof).

       

      6. Reservation
        of Stock, etc. Issuable on Exercise of Warrant; Financial
        Statements.
        The
        Company will at all times reserve and keep available, solely for issuance
        and
        delivery on the exercise of the Warrants, all shares of Common Stock (or
        Other
        Securities) from time to time issuable on the exercise of the Warrant. This
        Warrant entitles the Holder hereof to receive copies of all financial and
        other
        information distributed or required to be distributed to the holders of the
        Company's Common Stock. 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

       

      7. Assignment;
        Exchange of Warrant.
        Subject
        to compliance with applicable securities laws, this Warrant, and the rights
        evidenced hereby, may be transferred by any registered holder hereof (a
        "Transferor"). On the surrender for exchange of this Warrant, with the
        Transferor's endorsement in the form of Exhibit B attached hereto
        (the
“Transferor Endorsement Form") and together with an opinion of counsel
        reasonably satisfactory to the Company that the transfer of this Warrant
        will be
        in compliance with applicable securities laws, the Company at its expense,
        twice, only, but with payment by the Transferor of any applicable transfer
        taxes, will issue and deliver to or on the order of the Transferor thereof
        a new
        Warrant or Warrants of like tenor, in the name of the Transferor and/or the
        transferee(s) specified in such Transferor Endorsement Form (each a
        "Transferee"), calling in the aggregate on the face or faces thereof for
        the
        number of shares of Common Stock called for on the face or faces of the Warrant
        so surrendered by the Transferor. No such transfers shall result in a public
        distribution of the Warrant.

       

      8. Replacement
        of Warrant.
        On
        receipt of evidence reasonably satisfactory to the Company of the loss, theft,
        destruction or mutilation of this Warrant and, in the case of any such loss,
        theft or destruction of this Warrant, on delivery of an indemnity agreement
        or
        security reasonably satisfactory in form and amount to the Company or, in
        the
        case of any such mutilation, on surrender and cancellation of this Warrant,
        the
        Company at its expense, twice only, will execute and deliver, in lieu thereof,
        a
        new Warrant of like tenor.

       

      9. Registration
        Rights.
        The
        Holder of this Warrant has been granted certain registration rights by the
        Company. These registration rights are set forth in the Subscription Agreement.
        The terms of the Subscription Agreement are incorporated herein by this
        reference.

       

      10. Maximum
        Exercise.
        The
        Holder shall not be entitled to exercise this Warrant on an exercise date,
        in
        connection with that number of shares of Common Stock which would be in excess
        of the sum of (i) the number of shares of Common Stock beneficially
        owned
        by the Holder and its affiliates on an exercise date, and (ii) the
        number
        of shares of Common Stock issuable upon the exercise of this Warrant with
        respect to which the determination of this limitation is being made on an
        exercise date, which would result in beneficial ownership by the Holder and
        its
        affiliates of more than 4.99% of the outstanding shares of Common Stock on
        such
        date. For the purposes of the immediately preceding sentence, beneficial
        ownership shall be determined in accordance with Section 13(d) of
        the
        Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.
        Subject to the foregoing, the Holder shall not be limited to aggregate exercises
        which would result in the issuance of more than 4.99%. The
        restriction described in this paragraph may be waived, in whole or
        in part,
        upon sixty-one (61) days prior notice from the Holder to the Company. The
        Holder
        may allocate which of the equity of the Company deemed beneficially owned
        by the
        Subscriber shall be included in the 4.99% amount described above and which
        shall
        be allocated to the excess above 4.99%.

       

      11. Warrant
        Agent.
        The
        Company may, by written notice to the Holder of the Warrant, appoint an agent
        (a
“Warrant Agent”) for the purpose of issuing Common Stock (or Other Securities)
        on the exercise of this Warrant pursuant to Section 1, exchanging
        this
        Warrant pursuant to Section 7, and replacing this Warrant pursuant
        to
        Section 8, or any of the foregoing, and thereafter any such issuance,
        exchange or replacement, as the case may be, shall be made at such office
        by
        such Warrant Agent. 

       

      12. Transfer
        on the Company's Books.
        Until
        this Warrant is transferred on the books of the Company, the Company may
        treat
        the registered holder hereof as the absolute owner hereof for all purposes,
        notwithstanding any notice to the contrary. 

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

       

      13. Notices.
        All
        notices, demands, requests, consents, approvals, and other communications
        required or permitted hereunder shall be in writing and, unless otherwise
        specified herein, shall be (i) personally served, (ii) deposited in the mail,
        registered or certified, return receipt requested, postage prepaid, (iii)
        delivered by reputable air courier service with charges prepaid, or (iv)
        transmitted by hand delivery, telegram, or facsimile, addressed as set forth
        below or to such other address as such party shall have specified most recently
        by written notice. Any notice or other communication required or permitted
        to be
        given hereunder shall be deemed effective (a) upon hand delivery or delivery
        by
        facsimile, with accurate confirmation generated by the transmitting facsimile
        machine, at the address or number designated below (if delivered on a business
        day during normal business hours where such notice is to be received), or
        the
        first business day following such delivery (if delivered other than on a
        business day during normal business hours where such notice is to be received)
        or (b) on the second business day following the date of mailing by express
        courier service, fully prepaid, addressed to such address, or upon actual
        receipt of such mailing, whichever shall first occur. The addresses for such
        communications shall be: (i) if to the Company to: Innovative
        Food Holdings, Inc., 1923 Trade Center Way, Suite #1, Naples, FL 34109, Attn:
        Joe Dimaggio, CEO & President, telecopier number: (239) 596-0204, with an
        additional copy by telecopier only to: Thomas F. Pierson, Esq., 2501 E.
        Commercial Boulevard, Suite 212, Ft. Lauderdale, FL 33308, telecopier number:
        (954) 958-9439, and (ii) if to the Holder, to the address and telecopier
        number
        listed on the first paragraph of this Warrant, with an additional copy by
        telecopier only to: Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601,
        New York, New York 10176, telecopier number: (212) 697-3575.

       

      14. Miscellaneous.
        This
        Warrant and any term hereof may be changed, waived, discharged or terminated
        only by an instrument in writing signed by the party against which enforcement
        of such change, waiver, discharge or termination is sought. This Warrant
        shall
        be construed and enforced in accordance with and governed by the laws of
        New
        York. Any dispute relating to this Warrant shall be adjudicated in New York
        County in the State of New York. The headings in this Warrant are for purposes
        of reference only, and shall not limit or otherwise affect any of the terms
        hereof. The invalidity or unenforceability of any provision hereof shall
        in no
        way affect the validity or enforceability of any other provision. 

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      
        IN
          WITNESS WHEREOF, the Company has executed this Warrant as of the date first
          written above. 

         

        
          	 	 	 
	 	INNOVATIVE
                  FOOD HOLDINGS, INC. 
	 
 	 
 	 
 
	 	By:  	 
	 	
                  

                  Name:
                    

                  Title:
                    

                
	 Witness:	 
	 	 
	 

                  

                	 
	 	 

        

         

      

       

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      Exhibit A

       

      FORM
        OF
        SUBSCRIPTION

      (to
        be
        signed only on exercise of Warrant)

       

      TO:
        INNOVATIVE FOOD HOLDINGS, INC. 

       

      The
        undersigned, pursuant to the provisions set forth in the attached Warrant
        (No.____), hereby irrevocably elects to purchase (check applicable
        box):

      

      
        	___	
                ________
                  shares of the Common Stock covered by such Warrant;
                  or

              

      

       

      
        	___	
                the
                  maximum number of shares of Common Stock covered by such Warrant
                  pursuant
                  to the cashless exercise procedure set forth in
                  Section 2.

              

      

      

      The
        undersigned herewith makes payment of the full purchase price for such shares
        at
        the price per share provided for in such Warrant, which is $___________.
        Such
        payment takes the form of (check applicable box or boxes):

      

      
        	___	
                $__________
                  in lawful money of the United States;
                  and/or

              

      

       

      
        	___	
                the
                  cancellation of such portion of the attached Warrant as is exercisable
                  for
                  a total of _______ shares of Common Stock (using a Fair Market
                  Value of
                  $_______ per share for purposes of this calculation);
                  and/or

              

      

      

      
        	___	
                the
                  cancellation of such number of shares of Common Stock as is necessary,
                  in
                  accordance with the formula set forth in Section 2, to exercise
                  this
                  Warrant with respect to the maximum number of shares of Common
                  Stock
                  purchasable pursuant to the cashless exercise procedure set forth
                  in
                  Section 2.

              

      

      

      The
        undersigned requests that the certificates for such shares be issued in the
        name
        of, and delivered to ____________________________________________ whose address
        is 
        
          

        

        
          

        

         

        Number
          of
          Shares of Common Stock Beneficially Owned on the date of exercise: Less
          than
          five percent (5%) of the outstanding Common Stock of Innovative Food Holdings,
          Inc..

      

      

      The
        undersigned represents and warrants that all offers and sales by the undersigned
        of the securities issuable upon exercise of the within Warrant shall be made
        pursuant to registration of the Common Stock under the Securities Act of
        1933,
        as amended (the "Securities Act"), or pursuant to an exemption from registration
        under the Securities Act.

       

      

        
          	
                  Dated:

                	 

                  

                	 

                  

                  (Signature
                    must conform to name of holder as specified on the face of the
                    Warrant)

                
	 	 	
                   

                
	 	 	
                  

                  

                  (Address)

                
	 	 	
                   

                

        

      

      
 

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      Exhibit B

      

      FORM
        OF
        TRANSFEROR ENDORSEMENT

      (To
        be
        signed only on transfer of Warrant)

       

      For
        value
        received, the undersigned hereby sells, assigns, and transfers unto the
        person(s) named below under the heading "Transferees" the right represented
        by
        the within Warrant to purchase the percentage and number of shares of Common
        Stock of INNOVATIVE FOOD HOLDINGS, INC. to which the within Warrant relates
        specified under the headings "Percentage Transferred" and "Number Transferred,"
        respectively, opposite the name(s) of such person(s) and appoints each such
        person Attorney to transfer its respective right on the books of INNOVATIVE
        FOOD
        HOLDINGS, INC. with full power of substitution in the premises.

       

      

      
        	
                Transferees

              	
                Percentage
                  Transferred

              	
                Number
                  Transferred

              
	 	 	 
	 	 	 
	 	 	 

      

      

      
        

          
            	
                    Dated:
                      ______________, ___________

                  	 	
                    

                    (Signature
                      must conform to name of holder as specified on the face of
                      the
                      warrant)

                  
	 	 	
                     

                  
	 Signed
                    in the presence of:	 	 
	
                      

                    
                      

                    

                                                 
                      (Name)

                  	 	
                    

                    

                    (address)

                  
	 	 	
                     

                  
	
                    ACCEPTED
                      AND AGREED:

                    [TRANSFEREE]

                  	 	 
	
                      

                    
                      

                    

                                                 
                      (Name)

                  	 	
                    

                    

                    (address)SECURITY
      AND PLEDGE AGREEMENT

    (Innovative)

    

    1. Identification.

    

    This
      Security and Pledge Agreement (the "Agreement"), dated as of February ___,
      2005,
      is entered into by and between Innovative Food Holdings, Inc., a Florida
      corporation (“Innovative” or “Debtor”), and Barbara Mittman, as collateral agent
      acting in the manner and to the extent described in the Collateral Agent
      Agreement defined below (the "Collateral Agent"), for the benefit of the parties
      identified on Schedule A hereto (collectively, the "Lenders").

    

    2. Recitals.

    

    2.1 The
      Lenders have made or are making loans and will make additional loans to
      Innovative (the "Loans"). It is beneficial to Innovative that the Loans were
      made, are being made and will be made.

    

    2.2 The
      Loans
      are and will be evidenced by certain eight percent (8%) rate convertible
      promissory notes (each a “Convertible Note”) issued by Innovative on or about
      the date of this Agreement and issuable after the date of this Agreement,
      pursuant to subscription agreements (each a “Subscription Agreement”) to which
      Innovative and Lenders are parties. The Notes are further identified on Schedule
      A hereto and were and will be executed by Innovative as “Borrower” or “Debtor”
      for the benefit of each Lender as the “Holder” or “Lender” thereof.

    

    2.3 In
      consideration of the Loans made by Lenders to Innovative and for other good
      and
      valuable consideration, and as security for the performance by Innovative of
      its
      obligations under the Notes and as security for the repayment of the Loans
      and
      all other sums due from Debtor to Lenders arising under the Notes presently
      outstanding or to be outstanding in the future, Subscription Agreements, and
      any
      other agreement between or among them (collectively, the "Obligations"),
      Innovative, for good and valuable consideration, receipt of which is
      acknowledged, has agreed to grant to the Collateral Agent, for the benefit
      of
      the Lenders, a security interest in the Collateral (as such term is hereinafter
      defined), on the terms and conditions hereinafter set forth. Obligations include
      all future advances by Lenders to Innovative advanced on a pro rata basis by
      all
      Lenders on a pro rated basis on substantially the same terms. 

    

    2.4 The
      Lenders have appointed Barbara Mittman as Collateral Agent pursuant to that
      certain Collateral Agent Agreement dated at or about February ___, 2005
      (“Collateral Agent Agreement”), among the Lenders and Collateral
      Agent.

    

    2.5 The
      following defined terms which are defined in the Uniform Commercial Code in
      effect in the State of New York on the date hereof are used herein as so
      defined: Accounts, Chattel Paper, Documents, Equipment, General Intangibles,
      Instruments, Inventory and Proceeds.

    

    3. Grant
      of General Security Interest in Collateral.

    

    3.1  As
      security for the Obligations of Debtor, Innovative hereby grants the Collateral
      Agent, for the benefit of the Lenders, a security interest in the
      Collateral.

    

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    

    

    3.2  “Collateral”
      shall mean all of the following property of Innovative:

    

    (A) All
      now
      owned and hereafter acquired right, title and interest of Innovative in, to
      and
      in respect of all Accounts, Goods, real or personal property, all present and
      future books and records relating to the foregoing and all products and Proceeds
      of the foregoing, and as set forth below:

    

    (i) Accounts:
      All now
      owned and hereafter acquired right, title and interest of Innovative in, to
      and
      in respect of all: Accounts, interests in goods represented by Accounts,
      returned, reclaimed or repossessed goods with respect thereto and rights as
      an
      unpaid vendor; contract rights; Chattel Paper; investment property; General
      Intangibles (including but not limited to, tax and duty claims and refunds,
      registered and unregistered patents, trademarks, service marks, certificates,
      copyrights trade names, applications for the foregoing, trade secrets, goodwill,
      processes, drawings, blueprints, customer lists, licenses, whether as licensor
      or licensee, choses in action and other claims, and existing and future
      leasehold interests in equipment, real estate and fixtures); Documents;
      Instruments; letters of credit, bankers’ acceptances or guaranties; cash moneys,
      deposits; securities, bank accounts, deposit accounts, credits and other
      property now or hereafter owned or held in any capacity by Innovative, as well
      as its affiliates, agreements or property securing or relating to any of the
      items referred to above;

    

    (ii) Goods:
      All now
      owned and hereafter acquired right, title and interest of Innovative in, to
      and
      in respect of goods, including, but not limited to:

    

    (a) All
      Inventory, wherever located, whether now owned or hereafter acquired, of
      whatever kind, nature or description, including all raw materials,
      work-in-process, finished goods, and materials to be used or consumed in
      Innovative’s business; and all names or marks affixed to or to be affixed
      thereto for purposes of selling same by the seller, manufacturer, lessor or
      licensor thereof and all Inventory which may be returned to Innovative by its
      customers or repossessed by Innovative and all of Innovative’ right, title and
      interest in and to the foregoing (including all of Innovative’ rights as a
      seller of goods);

    

    (b) All
      Equipment and fixtures, wherever located, whether now owned or hereafter
      acquired, including, without limitation, all machinery, motor vehicles,
      furniture and fixtures, and any and all additions, substitutions, replacements
      (including spare parts), and accessions thereof and thereto (including, but
      not
      limited to Innovative’s rights to acquire any of the foregoing, whether by
      exercise of a purchase option or otherwise);

    

    (iii) Property:
      All now
      owned and hereafter acquired right, title and interests of Innovative in, to
      and
      in respect of any real or other personal property in or upon which Innovative
      has or may hereafter have a security interest, lien or right of
      setoff; 

    

    (iv) Books
      and Records:
      All
      present and future books and records relating to any of the above including,
      without limitation, all computer programs, printed output and computer readable
      data in the possession or control of the Innovative, any computer service bureau
      or other third party; and

    

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

    

    (v) Products
      and Proceeds:
      All
      products and Proceeds of the foregoing in whatever form and wherever located,
      including, without limitation, all insurance proceeds and all claims against
      third parties for loss or destruction of or damage to any of the
      foregoing.

    

    (B) All
      now
      owned and hereafter acquired right, title and interest of Innovative in, to
      and
      in respect of the following:

    

    (i) the
      shares of stock, partnership interests, member interests or other equity
      interests at any time and from time to time acquired by Innovative of any and
      all entities now or hereafter existing, all or a portion of such stock or other
      equity interests which are acquired by such entities at any time (such entities,
      together with the existing issuers, being hereinafter referred to collectively
      as the "Pledged Issuers" and individually as a "Pledged Issuer"), the
      certificates representing such shares, partnership interests, member interests
      or other interests all options and other rights, contractual or otherwise,
      in
      respect thereof and all dividends, distributions, cash, instruments, investment
      property and other property from time to time received, receivable or otherwise
      distributed in respect of or in exchange for any or all of such shares,
      partnership interests, member interests or other interests;

     

    (ii) all
      additional shares of stock, partnership interests, member interests or other
      equity interests from time to time acquired by Innovative, of any Pledged
      Issuer, the certificates representing such additional shares, all options and
      other rights, contractual or otherwise, in respect thereof and all dividends,
      distributions, cash, instruments, investment property and other property from
      time to time received, receivable or otherwise distributed in respect of or
      in
      exchange for any or all of such additional shares, interests or equity; and
      

    

    (iii) all
      security entitlements of Innovative in, and all Proceeds of any and all of
      the
      foregoing in each case, whether now owned or hereafter acquired by Innovative
      and howsoever its interest therein may arise or appear (whether by ownership,
      security interest, lien, claim or otherwise).

    

    3.3 The
      Collateral Agent is hereby specifically authorized, after the Maturity Date
      (defined in the Notes) accelerated or otherwise, or after an Event of Default
      (as defined herein) and the expiration of any applicable cure period, to
      transfer any Collateral into the name of the Collateral Agent and to take any
      and all action deemed advisable to the Collateral Agent to remove any transfer
      restrictions affecting the Collateral.

    

    4. Perfection
      of Security Interest.

    

    4.1 Innovative
      shall prepare, execute and deliver to the Collateral Agent UCC-1 Financing
      Statements. The Collateral Agent is instructed to prepare and file at
      Innovative’s cost and expense, financing statements in such jurisdictions deemed
      advisable to the Collateral Agent, including but not limited to Florida. The
      Financing Statements are deemed to have been filed for the benefit of the
      Collateral Agent and Lenders identified on Schedule A hereto.

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    

    

    4.2 
      All
      other certificates and instruments constituting Collateral from time to time
      required to be pledged to Collateral Agent pursuant to the terms hereof (the
      "Additional Collateral") shall be delivered to Collateral Agent promptly upon
      receipt thereof by or on behalf of Innovative. All such certificates and
      instruments shall be held by or on behalf of Collateral Agent pursuant hereto
      and shall be delivered in suitable form for transfer by delivery, or shall
      be
      accompanied by duly executed instruments of transfer or assignment or undated
      stock powers executed in blank, all in form and substance satisfactory to
      Collateral Agent. If any Collateral consists of uncertificated securities,
      unless the immediately following sentence is applicable thereto, Innovative
      shall cause Collateral Agent (or its custodian, nominee or other designee)
      to
      become the registered holder thereof, or cause each issuer of such securities
      to
      agree that it will comply with instructions originated by Collateral Agent
      with
      respect to such securities without further consent by Innovative. If any
      Collateral consists of security entitlements, Innovative shall transfer such
      security entitlements to Collateral Agent (or its custodian, nominee or other
      designee) or cause the applicable securities intermediary to agree that it
      will
      comply with entitlement orders by Collateral Agent without further consent
      by
      Innovative. 

     

    4.3 Within
      five (5) days after the receipt by Innovative of any Additional Collateral,
      a
      Pledge Amendment, duly executed by Innovative, in substantially the form of
      Annex I hereto (a "Pledge Amendment"), shall be delivered to Collateral Agent
      in
      respect of the Additional Collateral to be pledged pursuant to this Agreement.
      Innovative hereby authorizes Collateral Agent to attach each Pledge Amendment
      to
      this Agreement and agrees that all certificates or instruments listed on any
      Pledge Amendment delivered to Collateral Agent shall for all purposes hereunder
      constitute Collateral.

     

    

    4.4 If
      Innovative shall receive, by virtue of Innovative's being or having been an
      owner of any Collateral, any (i) stock certificate (including, without
      limitation, any certificate representing a stock dividend or distribution in
      connection with any increase or reduction of capital, reclassification, merger,
      consolidation, sale of assets, combination of shares, stock split, spin-off
      or
      split-off), promissory note or other instrument, (ii) option or right,
      whether as an addition to, substitution for, or in exchange for, any Collateral,
      or otherwise, (iii) dividends payable in cash (except such dividends permitted
      to be retained by Innovative pursuant to Section 5.2 hereof) or in securities
      or
      other property or (iv) dividends or other distributions in connection
      with
      a partial or total liquidation or dissolution or in connection with a reduction
      of capital, capital surplus or paid-in surplus, Innovative shall receive such
      stock certificate, promissory note, instrument, option, right, payment or
      distribution in trust for the benefit of Collateral Agent, shall segregate
      it
      from Innovative's other property and shall deliver it forthwith to Collateral
      Agent, in the exact form received, with any necessary endorsement and/or
      appropriate stock powers duly executed in blank, to be held by Collateral Agent
      as Collateral and as further collateral security for the
      Obligations.

    

    5. Distribution
      on Liquidation.

    

    5.1 If
      any
      sum is paid as a liquidating distribution on or with respect to the Collateral,
      Innovative shall deliver same to the Collateral Agent to be applied to the
      Obligations, then due, in accordance with the terms of the Convertible
      Notes.

    

    5.2 So
      long
      as no Event of Default exists, Innovative shall be entitled (i) to exercise
      all
      voting power pertaining to any of the Collateral, provided such exercise is
      not
      contrary to the interests of the Lenders and does not impair the Collateral
      and
      (ii) may receive and retain any and all dividends, interest payments or other
      distributions paid in respect of the Collateral.

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    

    

    5.3. Upon
      the
      occurrence and during the continuation of an Event of Default, all rights of
      Innovative, upon notice given by Collateral Agent, to exercise the voting power
      and receive payments, which it would otherwise be entitled to pursuant to
      Section 5.2, shall be suspended and all such rights shall thereupon become
      vested in Collateral Agent, which shall thereupon have the sole right to
      exercise such voting power and receive such payments.

    

    5.4 All
      dividends, distributions, interest and other payments which are received by
      Innovative contrary to the provisions of Section 5.3 shall be received in trust
      for the benefit of Collateral Agent, shall be segregated from other funds of
      Innovative, and shall be forthwith paid over to Collateral Agent as Collateral
      in the exact form received with any necessary endorsement and/or appropriate
      stock powers duly executed in blank, to be held by Collateral Agent as
      Collateral and as further collateral security for the Obligations

    

    6. Further
      Action By Innovative; Covenants and Warranties.

    

    6.1 Collateral
      Agent at all times shall have a perfected security interest in the Collateral.
      Subject to the security interests described herein, Innovative has and will
      continue to have full title to the Collateral free from any liens, leases,
      encumbrances, judgments or other claims. Collateral Agent's security interest
      in
      the Collateral constitutes and will continue to constitute a first, prior and
      indefeasible security interest in favor of Collateral Agent. Innovative will
      do
      all acts and things, and will execute and file all instruments (including,
      but
      not limited to, security agreements, financing statements, continuation
      statements, etc.) reasonably requested by Collateral Agent to establish,
      maintain and continue the perfected security interest of Collateral Agent in
      the
      Collateral, and will promptly on demand, pay all costs and expenses of filing
      and recording, including the costs of any searches reasonably deemed necessary
      by Collateral Agent from time to time to establish and determine the validity
      and the continuing priority of the security interest of Collateral Agent, and
      also pay all other claims and charges that, in the opinion of Collateral Agent,
      exercised in good faith, are reasonably likely to materially prejudice, imperil
      or otherwise affect the Collateral or Collateral Agent’s or Lender’s security
      interests therein.

    

    6.2 Other
      than in the ordinary course of business, and except for Collateral which is
      substituted by assets of identical or greater value or which has become obsolete
      or is of inconsequential in value, Innovative will not sell, transfer, assign
      or
      pledge those items of Collateral (or allow any such items to be sold,
      transferred, assigned or pledged), without the prior written consent of
      Collateral Agent other than a transfer of the Collateral to a wholly-owned
      subsidiary on prior notice to Collateral Agent, and provided the Collateral
      remains subject to the security interest herein described. Although Proceeds
      of
      Collateral are covered by this Agreement, this shall not be construed to mean
      that Collateral Agent consents to any sale of the Collateral, except as provided
      herein. Sales of Collateral in the ordinary course of business shall be free
      of
      the security interest of Lenders and Collateral Agent and Lenders and Collateral
      Agent shall promptly execute such documents (including without limitation
      releases and termination statements) as may be required by Debtor to evidence
      or
      effectuate the same.

    

    6.3 Innovative
      will, at all reasonable times and upon reasonable notice, allow Collateral
      Agent
      or its representatives free and complete access to the Collateral and all of
      Innovative's records which in any way relate to the Collateral, for such
      inspection and examination as Collateral Agent reasonably deems
      necessary.

    

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    

    

    6.4 Innovative,
      at its sole cost and expense, will protect and defend this Security Agreement,
      all of the rights of Collateral Agent and Lenders hereunder, and the Collateral
      against the claims and demands of all other persons.

    

    6.5 Innovative
      will promptly notify Collateral Agent of any levy, distraint or other seizure
      by
      legal process or otherwise of any part of the Collateral, and of any threatened
      or filed claims or proceedings that are reasonably likely to affect or impair
      any of the rights of Collateral Agent under this Security Agreement in any
      material respect.

    

    6.6 Innovative,
      at its own expense, will obtain and maintain in force insurance policies
      covering losses or damage to those items of Collateral which constitute physical
      personal property. The insurance policies to be obtained by Innovative shall
      be
      in form and amounts reasonably acceptable to Collateral Agent. Innovative shall
      make the Collateral Agent a first loss payee thereon to the extent of its
      interest in the Collateral. Collateral Agent is hereby irrevocably (until the
      Obligations are paid in full) appointed Innovative’ attorney-in-fact to endorse
      any check or draft that may be payable to Innovative so that Collateral Agent
      may collect the proceeds payable for any loss under such insurance. The proceeds
      of such insurance (subject to the rights of senior secured parties), less any
      costs and expenses incurred or paid by Collateral Agent in the collection
      thereof, shall be applied either toward the cost of the repair or replacement
      of
      the items damaged or destroyed, or on account of any sums secured hereby,
      whether or not then due or payable.

    

    6.7 Collateral
      Agent may, at its option, and without any obligation to do so, pay, perform
      and
      discharge any and all amounts, costs, expenses and liabilities herein agreed
      to
      be paid or performed by Innovative. Upon Innovative’ failure to do so, all
      amounts expended by Collateral Agent in so doing shall become part of the
      Obligations secured hereby, and shall be immediately due and payable by
      Innovative to Collateral Agent upon demand and shall bear interest at the lesser
      of 15% per annum or the highest legal amount from the dates of such expenditures
      until paid.

    

    6.8 Upon
      the
      request of Collateral Agent, Innovative will furnish to Collateral Agent within
      five (5) business days thereafter, or to any proposed assignee of this Security
      Agreement, a written statement in form reasonably satisfactory to Collateral
      Agent, duly acknowledged, certifying the amount of the principal and interest
      and any other sum then owing under the Obligations, whether to its knowledge
      any
      claims, offsets or defenses exist against the Obligations or against this
      Security Agreement, or any of the terms and provisions of any other agreement
      of
      Innovative securing the Obligations. In connection with any assignment by
      Collateral Agent of this Security Agreement, Innovative hereby agrees to cause
      the insurance policies required hereby to be carried by Innovative, if any,
      to
      be endorsed in form satisfactory to Collateral Agent or to such assignee, with
      loss payable clauses in favor of such assignee, and to cause such endorsements
      to be delivered to Collateral Agent within ten (10) calendar days after request
      therefor by Collateral Agent.

    

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    

    

    6.9 Innovative
      will, at its own expense, make, execute, endorse, acknowledge, file and/or
      deliver to the Collateral Agent from time to time such vouchers, invoices,
      schedules, confirmatory assignments, conveyances, financing statements, transfer
      endorsements, powers of attorney, certificates, reports and other reasonable
      assurances or instruments and take further steps relating to the Collateral
      and
      other property or rights covered by the security interest hereby granted, as
      the
      Collateral Agent may reasonably require to perfect its security interest
      hereunder.

    

    6.10 Innovative
      represents and warrants that it is the true and lawful exclusive owner of the
      Collateral, free and clear of any liens and encumbrances.

    

    6.11 Innovative
      hereby agrees not to divest itself of any right under the Collateral except
      as
      permitted herein absent prior written approval of the Collateral
      Agent.

    6.12 Innovative
      shall cause each Subsidiary of Innovative not in existence on the date hereof
      to
      execute and deliver to Collateral Agent promptly and in any event within 10
      days
      after the formation, acquisition or change in status thereof (A) a guaranty
      guaranteeing the Obligations and (B) a security and pledge agreement in
      substantially the form of this Agreement, together with (x) certificates
      evidencing all of the capital stock of any entity owned by such Subsidiary,
      (y)
      undated stock powers executed in blank with signature guaranteed, and (z) such
      opinion of counsel and such approving certificate of such Subsidiary as
      Collateral Agent may reasonably request in respect of complying with any legend
      on any such certificate or any other matter relating to such shares and (E)
      such
      other agreements, instruments, approvals, legal opinions or other documents
      reasonably requested by Collateral Agent in order to create, perfect, establish
      the first priority of or otherwise protect any lien purported to be covered
      by
      any such pledge and security Agreement or otherwise to effect the intent that
      all property and assets of such Subsidiary shall become Collateral for the
      Obligations. For purposes of this Agreement, “Subsidiary”
      means,
      with respect to any entity at any date, any corporation, limited or general
      partnership, limited liability company, trust, estate, association, joint
      venture or other business entity of which more than 50% of (A) the
      outstanding capital stock having (in the absence of contingencies) ordinary
      voting power to elect a majority of the board of directors or other managing
      body of such entity, (B) in the case of a partnership or limited liability
      company, the interest in the capital or profits of such partnership or limited
      liability company or (C) in the case of a trust, estate, association,
      joint
      venture or other entity, the beneficial interest in such trust, estate,
      association or other entity business is, at the time of determination, owned
      or
      controlled directly or indirectly through one or more intermediaries, by such
      entity.

    

    7. Power
      of Attorney.

    

    After
      the
      occurrence and during the uncured continuation of an Event of Default as defined
      in Section 9 below, Innovative hereby irrevocably constitutes and appoints
      the
      Collateral Agent as the true and lawful attorney of Innovative, with full power
      of substitution, in the place and stead of Innovative and in the name of
      Innovative or otherwise, at any time or times, in the discretion of the
      Collateral Agent, to take any action and to execute any instrument or document
      which the Collateral Agent may deem necessary or advisable to accomplish the
      purposes of this Agreement. This power of attorney is coupled with an interest
      and is irrevocable until the Obligations are satisfied.

    

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    

    

    8. Performance
      By The Collateral Agent.

    

    If
      Innovative fails to perform any material covenant, agreement, duty or obligation
      of Innovative under this Agreement, the Collateral Agent may, after any
      applicable cure period, at any time or times in its discretion, take action
      to
      effect performance of such obligation. All reasonable expenses of the Collateral
      Agent incurred in connection with the foregoing authorization shall be payable
      by Innovative as provided in Paragraph 12.1 hereof. No discretionary right,
      remedy or power granted to the Collateral Agent under any part of this Agreement
      shall be deemed to impose any obligation whatsoever on the Collateral Agent
      with
      respect thereto, such rights, remedies and powers being solely for the
      protection of the Collateral Agent.

    

    9. Event
      of Default.

    

    An
      event
      of default ("Event of Default") shall be deemed to have occurred hereunder
      upon
      the occurrence of any event of default as defined and described in this
      Agreement, in the Notes, Subscription Agreement, and any other agreement to
      which Innovative and Collateral Agent or a Lender are parties. Upon and after
      any Event of Default, after the applicable cure period, if any, any or all
      of
      the Obligations shall become immediately due and payable at the option of the
      Collateral Agent, for the benefit of the Lenders, and the Collateral Agent
      may
      dispose of Collateral as provided below. A default by Innovative of any of
      its
      material obligations pursuant to this Agreement shall be an Event of Default
      hereunder and an event of default as defined in the Notes, and Subscription
      Agreement.

    

    10. Disposition
      of Collateral.

    

    Upon
      and
      after any Event of Default which is then continuing,

    

    10.1 The
      Collateral Agent may exercise its rights with respect to each and every
      component of the Collateral, without regard to the existence of any other
      security or source of payment for the Obligations. In addition to other rights
      and remedies provided for herein or otherwise available to it, the Collateral
      Agent shall have all of the rights and remedies of a lender on default under
      the
      Uniform Commercial Code then in effect in the State of New York.

    

    10.2 If
      any
      notice to Innovative of the sale or other disposition of Collateral is required
      by then applicable law, five business (5) days prior written notice (which
      Innovative agrees is reasonable notice within the meaning of Section 9.612(a)
      of
      the Uniform Commercial Code) shall be given to Innovative of the time and place
      of any sale of Collateral which Innovative hereby agrees may be by private
      sale.
      The rights granted in this Section are in addition to any and all rights
      available to Collateral Agent under the Uniform Commercial Code.

    

    10.3 The
      Collateral Agent is authorized, at any such sale, if the Collateral Agent deems
      it advisable to do so, in order to comply with any applicable securities laws,
      to restrict the prospective bidders or purchasers to persons who will represent
      and agree, among other things, that they are purchasing the Collateral for
      their
      own account for investment, and not with a view to the distribution or resale
      thereof, or otherwise to restrict such sale in such other manner as the
      Collateral Agent deems advisable to ensure such compliance. Sales made subject
      to such restrictions shall be deemed to have been made in a commercially
      reasonable manner.

    

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    

    

    10.4 All
      proceeds received by the Collateral Agent for the benefit of the Lenders in
      respect of any sale, collection or other enforcement or disposition of
      Collateral, shall be applied (after deduction of any amounts payable to the
      Collateral Agent pursuant to Paragraph 12.1 hereof) against the Obligations
      pro
      rata among the Lenders in proportion to their interests in the Obligations.
      Upon
      payment in full of all Obligations, Innovative shall be entitled to the return
      of all Collateral, including cash, which has not been used or applied toward
      the
      payment of Obligations or used or applied to any and all costs or expenses
      of
      the Collateral Agent incurred in connection with the liquidation of the
      Collateral (unless another person is legally entitled thereto) and if applicable
      the Collateral Agent upon satisfaction of the Obligations will deliver form
      UCC-3 Financing Statement (Termination) to the Borrower. Any assignment of
      Collateral by the Collateral Agent to Innovative shall be without representation
      or warranty of any nature whatsoever and wholly without recourse. To the extent
      allowed by law, each Lender may purchase the Collateral and pay for such
      purchase by offsetting up to such Lender’s pro rata portion of the proceeds with
      sums owed to such Lender by Innovative arising under the Obligations or any
      other source.

    

    11. Waiver
      of Automatic Stay.
      Innovative acknowledges and agrees that should a proceeding under any bankruptcy
      or insolvency law be commenced by or against Innovative, or if any of the
      Collateral should become the subject of any bankruptcy or insolvency proceeding,
      then the Collateral Agent should be entitled to, among other relief to which
      the
      Collateral Agent or Lenders may be entitled under the Note, Subscription
      Agreement and any other agreement to which the Debtor, Lenders or Collateral
      Agent are parties, (collectively "Loan Documents") and/or applicable law, an
      order from the court granting immediate relief from the automatic stay pursuant
      to 11 U.S.C. Section 362 to permit the Collateral Agent to exercise all of
      its
      rights and remedies pursuant to the Loan Documents and/or applicable law.
      Innovative EXPRESSLY WAIVES THE BENEFIT OF THE AUTOMATIC STAY IMPOSED BY 11
      U.S.C. SECTION 362. FURTHERMORE, Innovative EXPRESSLY ACKNOWLEDGES AND AGREES
      THAT NEITHER 11 U.S.C. SECTION 362 NOR ANY OTHER SECTION OF THE BANKRUPTCY
      CODE
      OR OTHER STATUTE OR RULE (INCLUDING, WITHOUT LIMITATION, 11 U.S.C. SECTION
      105)
      SHALL STAY, INTERDICT, CONDITION, REDUCE OR INHIBIT IN ANY WAY THE ABILITY
      OF
      THE COLLATERAL AGENT TO ENFORCE ANY OF ITS RIGHTS AND REMEDIES UNDER THE LOAN
      DOCUMENTS AND/OR APPLICABLE LAW. Innovative hereby consents to any motion for
      relief from stay which may be filed by the Collateral Agent in any bankruptcy
      or
      insolvency proceeding initiated by or against Innovative, and further agrees
      not
      to file any opposition to any motion for relief from stay filed by the
      Collateral Agent. Innovative represents, acknowledges and agrees that this
      provision is a specific and material aspect of this Agreement, and that the
      Collateral Agent would not agree to the terms of this Agreement if this waiver
      were not a part of this Agreement. Innovative further represents, acknowledges
      and agrees that this waiver is knowingly, intelligently and voluntarily made,
      that neither the Collateral Agent nor any person acting on behalf of the
      Collateral Agent has made any representations to induce this waiver, that
      Innovative has been represented (or has had the opportunity to be represented)
      in the signing of this Agreement and in the making of this waiver by independent
      legal counsel selected by Innovative and that Innovative has had the opportunity
      to discuss this waiver with counsel. Innovative further agrees that any
      bankruptcy or insolvency proceeding initiated by Innovative will only be brought
      in the Federal Court within the Southern District of New York.

    

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    

    

    12. Miscellaneous.

    

    12.1 Expenses.
      Innovative shall pay to the Collateral Agent, on demand, the amount of any
      and
      all reasonable expenses, including, without limitation, attorneys' fees, legal
      expenses and brokers' fees, which the Collateral Agent may incur in connection
      with (a) sale, collection or other enforcement or disposition of Collateral;
      (b)
      exercise or enforcement of any the rights, remedies or powers of the Collateral
      Agent hereunder or with respect to any or all of the Obligations upon breach
      or
      threatened breach; or (c) failure by Innovative to perform and observe any
      agreements of Innovative contained herein which are performed by the Collateral
      Agent after any required notice to Innovative.

    

    12.2 Waivers,
      Amendment and Remedies.
      No
      course of dealing by the Collateral Agent and no failure by the Collateral
      Agent
      to exercise, or delay by the Collateral Agent in exercising, any right, remedy
      or power hereunder shall operate as a waiver thereof, and no single or partial
      exercise thereof shall preclude any other or further exercise thereof or the
      exercise of any other right, remedy or power of the Collateral Agent. No
      amendment, modification or waiver of any provision of this Agreement and no
      consent to any departure by Innovative therefrom, shall, in any event, be
      effective unless contained in a writing signed by the Collateral Agent, and
      then
      such waiver or consent shall be effective only in the specific instance and
      for
      the specific purpose for which given. The rights, remedies and powers of the
      Collateral Agent, not only hereunder, but also under any instruments and
      agreements evidencing or securing the Obligations and under applicable law
      are
      cumulative, and may be exercised by the Collateral Agent from time to time
      in
      such order as the Collateral Agent may elect.

    

    12.3 Notices.
      All
      notices or other communications given or made hereunder shall be in writing
      and
      shall be personally delivered or deemed delivered the first business day after
      being faxed (provided that a copy is delivered by first class mail) to the
      party
      to receive the same at its address set forth below or to such other address
      as
      either party shall hereafter give to the other by notice duly made under this
      Section:

    

    
      	 	
              To
                Debtor:

            	
              Innovative
                Food Holdings, Inc.

            
	 	 	
              1923
                Trade Center Way, Suite #1

            
	 	 	
              Naples,
                FL 34109

            
	 	 	
              Attn:
                Joe Dimaggio, CEO & President

            
	 	 	
              Fax:
                (239) 596-0204

            
	 	 	 
	 	
              With
                an additional copy by telecopier only to:

            	 
	 	 	 
	 	 	
              Thomas
                F. Pierson, Esq.

            
	 	 	
              2501
                E. Commercial Boulevard, Suite 212

            
	 	 	
              Ft.
                Lauderdale, FL 33308

            
	 	 	
              Fax:
                (954) 958-9439

            
	 	 	 
	 	
              To
                Lenders:

            	
              To
                the addresses and telecopier numbers set forth on Schedule
                A

            
	 	 	 
	 	 	 
	 	
              To
                the Collateral Agent:

            	
              Barbara
                R. Mittman

            
	 	 	
              Grushko
                & Mittman, P.C.

            
	 	 	
              551
                Fifth Avenue, Suite 1601

            
	 	 	
              New
                York, New York 10176

            
	 	 	
              Fax:
                (212) 697-3575

            

    

    

    Any
      party
      may change its address by written notice in accordance with this
      paragraph.

    

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    

    

    12.4 Term;
      Binding Effect.
      This
      Agreement shall (a) remain in full force and effect until payment and
      satisfaction in full of all of the Obligations; (b) be binding upon Innovative,
      and its successors and permitted assigns; and (c) inure to the benefit of the
      Collateral Agent, for the benefit of the Lenders and their respective successors
      and assigns. All the rights and benefits granted by Debtor to the Collateral
      Agent and Lenders in the Loan Documents and other agreements and documents
      delivered in connection therewith are deemed granted to both the Collateral
      Agent and Lenders.

    

    12.5 Captions.
      The
      captions of Paragraphs, Articles and Sections in this Agreement have been
      included for convenience of reference only, and shall not define or limit the
      provisions hereof and have no legal or other significance
      whatsoever.

    

    12.6 Governing
      Law; Venue; Severability.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York without regard to principles of conflicts or choice of law,
      except to the extent that the perfection of the security interest granted hereby
      in respect of any item of Collateral may be governed by the law of another
      jurisdiction. Any legal action or proceeding against Innovative with respect
      to
      this Agreement may be brought in the courts in the State of New York or of
      the
      United States for the Southern District of New York, and, by execution and
      delivery of this Agreement, Innovative hereby irrevocably accepts for itself
      and
      in respect of its property, generally and unconditionally, the jurisdiction
      of
      the aforesaid courts. Innovative hereby irrevocably waives any objection which
      they may now or hereafter have to the laying of venue of any of the aforesaid
      actions or proceedings arising out of or in connection with this Agreement
      brought in the aforesaid courts and hereby further irrevocably waives and agrees
      not to plead or claim in any such court that any such action or proceeding
      brought in any such court has been brought in an inconvenient forum. If any
      provision of this Agreement, or the application thereof to any person or
      circumstance, is held invalid, such invalidity shall not affect any other
      provisions which can be given effect without the invalid provision or
      application, and to this end the provisions hereof shall be severable and the
      remaining, valid provisions shall remain of full force and effect.

    

    12.7 Counterparts/Execution.
      This
      Agreement may be executed in any number of counterparts and by the different
      signatories hereto on separate counterparts, each of which, when so executed,
      shall be deemed an original, but all such counterparts shall constitute but
      one
      and the same instrument. This Agreement may be executed by facsimile signature
      and delivered by facsimile transmission.

    

    [THIS
      SPACE INTENTIONALLY LEFT BLANK]

    

    

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the
      undersigned have executed and delivered this Security and Pledge Agreement,
      as
      of the date first written above.

     

    
      	"DEBTOR"	 	 	"THE
              COLLATERAL AGENT"
	INNOVATIVE FOOD HOLDINGS, INC.	 	 	BARBARA R. MITTMAN
	a Florida corporation	 	 	 
	 	 	 	 
	By: 	 	 	 
	
              
                

              

            	 	 	
              

            
	Its:
              	 	 	 
	
              
                

              

            	 	 	 
	 	 	 	 

    

    

    APPROVED
      BY “LENDERS”:

     

    
      
        	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	ALPHA CAPITAL AKTIENGESELLSCHAFT	 	 	WHALEHAVEN CAPITAL FUND LIMITED
	
                
                  

                

              	 	 	
                

              
	 	 	 	 

      

      
 

    

    
 

    This
      Security and Pledge Agreement may be signed by facsimile signature
      and

    delivered
      by confirmed facsimile transmission.

    

    

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    

    SCHEDULE
      A TO SECURITY AND PLEDGE AGREEMENT

    

    
      

      

      
        	
                LENDERS

              	 	
                INITIAL
                  CLOSING PURCHASE PRICE

              	 	
                CLASS
                  A WARRANTS

              	 	
                CLASS
                  B WARRANTS

              	 	
                CLASS
                  C WARRANTS

              	 	
                SECOND
                  CLOSING PURCHASE PRICE

              	 
	
                ALPHA
                  CAPITAL AKTIENGESELLSCHAFT

                Pradafant
                  7

                9490
                  Furstentums

                Vaduz,
                  Lichtenstein

                Fax:
                  011-42-32323196

              	 	
                $

              	
                350,000.00

              	 	 	 	 	 	 	 	 	 	 	
                $

              	
                120,000.00

              	 
	
                WHALEHAVEN
                  CAPITAL FUND LIMITED 

                3rd
                  Floor, 14 Par-Laville Road

                Hamilton,
                  Bermuda HM08

                Fax:
                  (441) 292-1373

              	 	
                $

              	
                50,000.00

              	 	 	 	 	 	 	 	 	 	 	
                $

              	
                30,000.00

              	 
	
                TOTAL

              	 	
                $

              	
                400,000.00

              	 	 	 	 	 	 	 	 	 	 	
                $

              	
                150,000.00

              	 

      

      
 

    

    

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    

    ANNEX
      I

     

    TO

     

    SECURITY
      AND PLEDGE AGREEMENT

     

    PLEDGE
      AMENDMENT

     

    This
      Pledge Amendment, dated _________ __ 200_, is delivered pursuant to Section
      4.3
      of the Security and Pledge Agreement referred to below. The undersigned hereby
      agrees that this Pledge Amendment may be attached to the Security and Pledge
      Agreement, dated February ___, 2005, as it may heretofore have been or hereafter
      may be amended, restated, supplemented or otherwise modified from time to time
      and that the shares listed on this Pledge Amendment shall be hereby pledged
      and
      assigned to Collateral Agent and become part of the Collateral referred to
      in
      such Security and Pledge Agreement and shall secure all of the Obligations
      referred to in such Security and Pledge Agreement.

     

    

    

    
      	
               

              Name
                of Issuer

            	 	
               

              Number
of
                Shares

            	 	
               

              Class

            	 	
               

              Certificate
Number(s)

            	 
	 	 	 	
            	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

    

    

    
      	 	 	 
	 	INNOVATIVE
              FOOD HOLDINGS, INC.
	 
 	 
 	 
 
	 
              	By:  	 
	 	
              

              Name:

              Title:

            
	 	 

      

     

     

    
      
         

      

      
        -14-

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