Document:

Senior Secured Note

 Exhibit 10.2 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY
AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. HOLDERS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL
RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN
COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 
 SENIOR SECURED NOTE 
  

			
	$10,000,000.00	  	AUGUST 31, 2007

 Subject to the terms and conditions of this Note, for good and valuable consideration received,
EDIETS.COM, INC., a Delaware corporation (the “Company”), promises to pay to the order of Prides Capital Fund I, L.P. or its assigns (“Holder”), the principal amount of Ten Million and 00/100 Dollars ($10,000,000.00), as
increased as provided in Section 2 below, and interest thereon as provided herein. This Note is issued pursuant to the Note and Warrant Purchase Agreement, dated as of August 31, 2007 (as from time to time amended, the “Note Purchase
Agreement”), between the Company and the respective purchaser(s) named therein and is subject to the terms thereof and the Holder is entitled to the benefits and rights therein. Unless otherwise indicated, capitalized terms used in this Note
shall have the respective meanings ascribed to such terms in the Note Purchase Agreement. The following is a statement of the rights of the Holder and the terms and conditions to which this Note is subject, and to which the Company, by the issuance
of this Note, and the Holder, by the acceptance of this Note, agrees: 
 1. Payment Obligation. Unless paid earlier as provided herein,
the Company shall pay all principal and accrued interest under this Note on August 31, 2010 (the “Maturity Date”). All payments of principal and/or interest under this Note will be made by electronic wire transfer to an account
designated by the Holder. All or any portion of the principal and accrued interest under this Note may be prepaid without the written consent of the Holder upon fifteen (15) days prior written notice to the Holder. 
 2. Interest. Interest (computed on the basis of a 360-day year and for the actual number of days in the respective period) shall accrue daily and
is payable semi-annually, commencing on March 1, 2008, on the unpaid principal amount of this Note then outstanding at the rate of fifteen percent (15%) per annum from and after the date of this Note and, unless paid earlier as provided
herein, shall be paid on the Maturity Date. Accrued interest shall be paid in cash or at the Company’s sole discretion and with prior written notice to Holder on the respective interest payment date such interest then due may be capitalized and
added to the principal 

 
amount of this Note. Each amount so capitalized shall be considered part of the principal amount outstanding under this Note and shall bear interest as
provided in the first sentence of this Section 2. 
 3. Optional Conversion. The Holder shall have the sole right, but not the
obligation, on the Maturity Date to convert all or any portion of the unpaid principal amount of this Note, in an amount not less than $100,000 (such portion hereinafter referred to as a “Conversion Portion”), into the Company’s
Common Stock. In the event the Holder elects to convert any Conversion Portion into Common Stock, such Conversion Portion shall convert into that number of shares of Common Stock of the Company as shall equal such Conversion Portion divided by
$3.290625. 
 4. Events of Default. 
 4.1 The occurrence of any of the following events shall be deemed to constitute an “Event of Default” hereunder: (a) the failure of the Company to pay the principal of this Note, together with all
accrued interest, on the Maturity Date; (b) (i) the failure of the Company to comply with any provision set forth in Section 4 of the Note Purchase Agreement or (ii) the failure of any Note Party to comply with any provision
applicable to it set forth in any Note Document (other than as set forth in clause (a) or (b)(i) above), and such failure with respect to this clause (b)(ii) shall continue unremedied for a period of thirty (30) days; (c) the failure
of any Note Party to pay any amount when due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) in respect of any indebtedness (other than indebtedness evidenced by this Note) in a principal amount of at least
$100,000 and such failure shall continue after the applicable grace period, if any, in the agreement relating to such indebtedness; or any other event shall occur or condition shall exist under any agreement relating to any such indebtedness and
shall continue after the applicable grace period, if any, specified in such agreement, if the effect of such event or condition is to accelerate, or to permit the holder thereof to cause, such indebtedness to mature, (d) any representation or
warranty made by any Note Party in any Note Document shall prove to have been incorrect when made in any material respect; (e) the entry of a judgment against any Note Party in the amount of $500,000 or more, if thirty (30) days have
elapsed and the judgment has not been vacated, satisfied, or dismissed, and the enforcement of the judgment has not been stayed pending appeal; and (f) any Liquidation Event (as defined below). As used herein, “Liquidation Event”
means the occurrence or institution by or against any Note Party of (i) any bankruptcy, reorganization, receivership or insolvency proceeding, (ii) any appointment of a receiver or custodian for all or a substantial portion of the property
of any Note Party; (iii) any assignment for the benefit of, or composition or arrangement with, the creditors of any Note Party (whether or not pursuant to bankruptcy or other insolvency laws), (iv) any sale of all or substantially all of
the assets of any Note Party, or (v) any dissolution, liquidation, or other marshalling of the assets and liabilities of any Note Party. 
 4.2 If there shall occur (a) any Liquidation Event, the entire unpaid principal and accrued interest on this Note shall automatically become and be forthwith due and payable, without any requirement by the Holder to give notice,
present the Note, make demand, protest or give other notice of any kind of character, all of which are hereby expressly waived, anything herein to the contrary notwithstanding, and (b) any Event of Default (other than a Liquidation Event), then
the Holder may declare the entire 

  

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unpaid principal and accrued interest on this Note immediately due and payable, by notice in writing to the Company, whereupon the entire unpaid principal
and accrued interest on this Note shall automatically become and be forthwith due and payable, without any further requirement by the Holder to present the Note, make demand, protest or give other notice of any kind of character, all of which are
hereby expressly waived, anything herein to the contrary notwithstanding. 
 5. Offer to Repurchase. Within two (2) days of the
Company obtaining knowledge that any Person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, as amended), other than (a) Prides Capital Partners, LLC (“Prides”) and any of
its affiliates or (b) any “group” (within the meaning of Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, as amended) in which Prides is a member, has acquired at least 25% of the Company’s Common Stock (exclusive
of such Common Stock acquired by any Person directly from Prides or any of its affiliates in a private transaction executed on or off the securities exchange or over-the-counter market on which the Company’s securities are then traded) or the
power to exercise, directly or indirectly, a controlling influence over the management or policies of the Company, the Company shall offer in writing to repay this Note from the Holder for a purchase price equal to 100% of the outstanding principal
amount of this Note as of the date of such repayment, plus any accrued and unpaid interest due under this Note as of the date of such repayment. The Holder shall have 30 days following receipt of such written offer in which to provide the Company
with written acceptance of the Company’s offer to repay this Note. The closing on the repayment of the Note shall occur not later than five (5) days following the delivery of the Holder’s written acceptance. 
 6. Expenses; Indemnity. 
 6.1 The
Company shall pay all reasonable out-of-pocket expenses incurred by the Holder (including the reasonable fees, costs and disbursements of any counsel for the Holder), in connection with the enforcement of its rights under this Note and the other
Note Documents, including all such out-of-pocket expenses incurred during any workout, restructuring or related negotiations. 
 6.2 The
Company shall indemnify the Holder and each of its partners, directors, officers, employees, agents and advisors (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the reasonable fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party arising out of, in connection
with, or as a result of (i) the execution or delivery of this Note, any other Note Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties of their respective obligations hereunder or thereunder or
the consummation of the transactions contemplated hereby or thereby or (ii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, brought
by a third party; provided, that such indemnity shall not be available to any Indemnitee if any of the Indemnitees initiate any such claim, litigation, investigation or proceeding; provided further, that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful
misconduct of such Indemnitee. 
  

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 6.3 The Company hereby agrees that none of the Indemnitees shall have any liability (whether direct or
indirect, in contract, tort or otherwise) to the Company or any of its affiliates or any of their respective officers, directors, employees, agents and advisors, and the Company hereby agrees not to assert any claim against any Indemnitee, for
special, indirect, consequential or punitive damages arising out of or otherwise relating to the Note Documents, the actual or proposed use of the proceeds of the Note or any of the transactions contemplated by the Note Documents. 
 7. Assignment. Subject to any legal limitations arising under the securities laws, the Holder has the right to transfer all or any portion of this
Note to any other entity as provided in the Note Purchase Agreement. The rights and obligations of the Company and the Holder will be binding upon and inure to the benefit of the successors, assigns, heirs, administrators and transferees of the
parties. 
 8. Waiver and Amendment. Any provision of this Note may be amended, waived or modified upon the written consent of the
Company and the Holder. 
 9. Notices. Any notice shall be deemed to have been duly given if personally delivered or sent by United
States mail or by facsimile transmission confirmed by letter in the case of the Company, at eDiets.com, Inc., 1000 Corporate Drive, Suite 600, Ft. Lauderdale, Florida 33334, Attn: James Epstein, Esq., Tel: 954-703-6375, Fax: 954-727-2601, and in the
case of the Holder, at Prides Capital Fund I, L.P., c/o Prides Capital Partners, LLC, 200 High Street, Suite 700, Boston, Massachusetts 02110, Attn: Hank Lawlor, Tel: 617-778-9200, Fax: 617-778-9299, or in each case at such other address as is
noticed to the respective party in accordance with the terms hereof, and will be deemed given, unless earlier received (i) if sent by certified or registered mail, return receipt requested, five calendar days after being deposited in the United
States mails, postage prepaid; (ii) if sent by United States Express Mail, two calendar days after being deposited in the United States mails, postage prepaid; (iii) if sent by facsimile transmission, on the date sent provided confirmatory
notice was sent by first-class mail, postage prepaid; and (iv) if delivered by hand, on the date of receipt. Any party hereto may by notice so given change its address for future notice hereunder. 
 10. Governing Law; Jurisdiction; Waiver of Jury Trial. 
 10.1 This Note shall be governed by and construed in accordance with the laws of the State of New York. 
 10.2 The Company hereby irrevocably and unconditionally submits to the nonexclusive jurisdiction of any New York State or Federal court of the United States of America sitting in the Borough of Manhattan, New York City, in any action or
proceeding arising out of or relating to this Note or any other Note Document to which it is a party and irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such New
York State court or, to the fullest extent permitted by law, in such Federal court. Nothing in this Section 10 shall affect any right that any party may otherwise have to bring any action or proceeding relating to any Note Document in the
courts of any jurisdiction. The Company hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, (a) any objection 

  

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that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of any Note Document in any New York State or Federal
court and (b) the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
 10.3 THE
COMPANY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE NOTE DOCUMENTS OR THE ACTIONS OF THE HOLDER IN THE
NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF. 
 11. Headings; References. All headings used herein are used for
convenience only and will not be used to construe or interpret this Note. Except where otherwise indicated, all references herein to Sections refer to Sections hereof. 
 IN WITNESS WHEREOF, the Company has caused this Note to be issued as of the date first set forth above. 
  

			
	 COMPANY

	
	 EDIETS.COM, INC.

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 5Warrant for the Purchase of Common Stock

 Exhibit 10.3 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW. SUCH SECURITIES MAY
NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE ACT OR THE ISSUER HAS RECEIVED AN OPINION OF COUNSEL IN FORM AND SUBSTANCE
REASONABLY ACCEPTABLE TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE
MARGIN ACCOUNT SECURED BY SUCH SECURITIES. 
 eDiets.com, Inc. 
 Warrant for the Purchase of Shares of 
 Common Stock 
  

			
	1,000,000 Shares	 	August 31, 2007

 FOR VALUE RECEIVED, eDiets.com, Inc., a Delaware corporation (the “Company”), hereby
certifies that Prides Capital Fund I, L.P. or its assigns, is entitled to purchase from the Company, at any time or from time to time commencing on the date hereof (the “Initial Exercise Date”) and expiring at 5:00 P.M., New York City
time, on the ten (10) year anniversary of the Original Issue Date (the “Expiration Date”) ONE MILLION (1,000,000) fully paid and non-assessable shares of Common Stock, par value $.001 per share, of the Company (the “Warrant
Shares”) for a per share exercise price of $5.00 (the “Per Share Warrant Price”). The Per Share Warrant Price is subject to adjustment as hereinafter provided. Capitalized terms used and not otherwise defined in this Warrant shall
have the meanings specified in Section 8, unless the context otherwise requires. 
 1. Exercise of Warrant. 
 (a) This Warrant may be exercised, in whole at any time or in part from time to time, commencing on the Initial Exercise Date and expiring at 5:00 P.M.,
New York City time, on the Expiration Date (with the Exercise Notice at the end of this Warrant duly executed) at the address set forth in Section 10 hereof, together with payment of the Per Share Warrant Price multiplied by the number of
Warrant Shares to which such exercise relates made by delivery to the Company of one or more types of Permitted Consideration. 
 (b) If
this Warrant is exercised in part, the Company will deliver to the Holder within three Trading Days of the date such Holder delivers to the Company this Warrant and an Exercise Notice, together with the payment of the aggregate Per Share Warrant
Price for such exercise, a new Warrant covering the Warrant Shares that have not been exercised. By the expiration of the third Trading Day following the Holder’s delivery of a Warrant, together with an Exercise Notice and the payment of the
aggregate 

 
Per Share Warrant Price for such exercise, the Company will (i) issue a certificate or certificates in the name of the Holder for the largest number of
whole shares of the Common Stock to which the Holder shall be entitled and, if this Warrant is exercised in whole, in lieu of any fractional share of the Common Stock to which the Holder shall be entitled, pay to the Holder cash in an amount equal
to the fair value of such fractional share (determined by reference to the closing sales price of the Common Stock on the date of the Exercise Notice), and (ii) deliver the other securities and properties receivable upon the exercise of this
Warrant, or the proportionate part thereof if this Warrant is exercised in part, pursuant to the provisions of this Warrant. 
 (c) If, by
the third Trading Day after the date that the Holder delivers an Exercise Notice, together with the payment of the aggregate Per Share Warrant Price for such exercise, the Company fails to deliver the required number of Warrant Shares in the manner
required pursuant to Section 1(b), then the Holder will have the right to rescind such exercise. 
 (d) If, by the third Trading Day
after the date that the Holder delivers an Exercise Notice, together with the payment of the aggregate Per Share Warrant Price for such exercise, the Company fails to deliver the required number of Warrant Shares in the manner required pursuant to
Section 1(b), and if after such third Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of
the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at
issue by (B) the closing bid price of the Common Stock at the time of the obligation giving rise to such purchase obligation and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant
Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. The Holder shall provide
the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In. 
 (e) If, after the Required Effective
Date (as defined in the Registration Rights Agreement) the Warrant Shares to be issued are not registered and available for resale by the Holder pursuant to a registration statement in accordance with the Registration Rights Agreement, then
notwithstanding anything contained herein to the contrary, the Holder may, at its election exercised in its sole discretion, exercise a portion of this Warrant with respect to an aggregate total of twenty-five percent (25%) of the total Warrant
Shares and, in lieu of making a cash payment of Permitted Consideration, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following formula: 
  

					
	 Net Number = (A x B) – (A x C)

	       B

 For purposes of the foregoing formula: 
 A = the total number of Warrant Shares with respect to which this Warrant is then being exercised. 
  

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 B = the average of the closing sales prices for the five Trading Days immediately prior to (but not
including) the day that the Holder delivers the Exercise Notice at issue. 
 C = the Per Share Warrant Price. 
 2. Company’s Option to Change Expiration Date. 
 Notwithstanding anything herein to the contrary, in the event that (i) the closing sales price per share of Common Stock is in excess of 150% of the Per Share Warrant Price (as may be adjusted pursuant to
Section 3) for thirty (30) consecutive Trading Days, (ii) the Warrant Shares are either registered for resale pursuant to an effective registration statement naming the Holder as a selling stockholder thereunder (and the prospectus
thereunder is available for use by the Holder as to all then available Warrant Shares) or freely transferable without volume restrictions pursuant to Rule 144(k) promulgated under the Securities Act, as determined by counsel to the Company pursuant
to a written opinion letter addressed and in form and substance reasonably acceptable to the Holder and the transfer agent for the Common Stock, during the entire sixty (60) Trading Day period referenced in (i) above through the expiration
of the Call Date as set forth in the Company’s notice pursuant to this Section (the “Call Condition Period”), and (iii) the Company shall have complied in all material respects with its obligations under this Warrant and the
Common Stock shall at all times be listed on the AMEX, New York Stock Exchange, the Nasdaq National Market, the Nasdaq Capital Market or the OTC Bulletin Board, then, subject to the conditions set forth in this Section, the Company may, in its sole
discretion, elect to change the Expiration Date for the respective Warrant to 5:00 P.M., New York City time on the date that is thirty (30) days after written notice thereof (a “Call Notice”) is received by the Holder (the “Call
Date”) at the address last shown on the records of the Company for the Holder or given by the Holder to the Company for the purpose of notice; provided, that the conditions to giving such notice must be in effect at all times during the Call
Condition Period or any such notice shall be null and void. Notwithstanding anything herein to the contrary, if the Company changes the Expiration Date pursuant to this Section 2, the Holder may, at its election exercised in its sole
discretion, exercise a portion of this Warrant with respect to an aggregate total (including any exercises made under Section 1(e)) of twenty-five percent (25%) of the total Warrant Shares and, in lieu of making a cash payment of Permitted
Consideration, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the formula set forth in Section 1(e). 
 3. Certain Adjustments. The Per Share Warrant Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment
from time to time as set forth in this Section 3. 
 (a) If the Company, at any time while this Warrant is outstanding, (i) pays a
stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, or
(iii) combines outstanding shares of Common Stock into a smaller number of shares, then in each such case the Per Share Warrant Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock
outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph 

  

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shall become effective immediately after the record date for the determination of shareholders entitled to receive such dividend or distribution, and any
adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. 
 (b) If, at any time while this Warrant is outstanding, (1) the Company effects any merger or consolidation of the Company with or into another person, (2) the Company effects any sale of all or substantially
all of its assets in one or a series of related transactions, (3) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property, or (4) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (in any such case, a “Fundamental Transaction”), then thereafter this Warrant shall represent the right to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it
would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant
(the “Alternate Consideration”). For purposes of any such exercise, the determination of the Per Share Warrant Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Per Share Warrant Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different
components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. At the Holder’s option and request, any successor to the Company or surviving entity (and, if an entity different from the successor or
surviving entity, the entity whose capital stock or assets the Holders of Common Stock are entitled to receive as a result of such Fundamental Transaction) in such Fundamental Transaction shall, either (1) issue to the Holder a new warrant
substantially in the form of this Warrant and consistent with the foregoing provisions and evidencing the Holder’s right to purchase the Alternate Consideration for the aggregate Per Share Warrant Price upon exercise thereof, or
(2) purchase the Warrant from the Holder for a purchase price, payable in cash within five trading days after such request (or, if later, on the effective date of the Fundamental Transaction), equal to the Black Scholes value of the remaining
unexercised portion of this Warrant on the date of such request. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity (and, if an entity different
from the successor or surviving entity, the entity whose capital stock or assets the Holders of Common Stock are entitled to receive as a result of such Fundamental Transaction) to comply with the provisions of this paragraph (b) and insuring
that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction. 
 (c) All calculations under this Section 3 shall be made to the nearest cent or the nearest
1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the
account of the Company. 
  

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 (d) Upon the occurrence of each adjustment pursuant to this Section 3, the Company at its expense
will promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Per Share Warrant Price and adjusted number or type of Warrant Shares
or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. The Company will promptly deliver a copy of
each such certificate to the Holder and to the Company’s transfer agent. 
 4. Fully Paid Stock; Taxes. 
 The Company agrees that the shares of Common Stock represented by each and every certificate for Warrant Shares delivered on the exercise of this Warrant
shall at the time of such delivery, be duly authorized, validly issued and outstanding, fully paid and nonassessable, and not subject to preemptive rights or rights of first refusal, and the Company will take all such actions as may be necessary to
assure that the par value or stated value, if any, per share of the Common Stock is at all times equal to or less than the then Per Share Warrant Price. The Company further covenants and agrees that it will pay, when due and payable, any and all
Federal and state stamp, original issue or similar taxes which may be payable in respect of the issue of any Warrant Share or any certificate thereof to the extent required because of the issuance by the Company of such security. 
 5. Registration Under Securities Act . 
 (a) The Holder shall, with respect to the Warrant Shares, have the registration rights set forth in the Registration Rights Agreement. By acceptance of this Warrant, the Holder agrees to comply with the provisions of the Registration Rights
Agreement. 
 (b) Until the later of (i) such time as the Holder shall be eligible to resell all of its Warrant Shares without volume
restrictions pursuant to Rule 144(k) promulgated under the Securities Act (assuming Holder is not an “affiliate” of the Company, as defined in Rule 144), as evidenced by a legal opinion to such effect delivered by the Company’s
counsel and acceptable to each of the Company’s transfer agent and the Holder, or (ii) the date on which all Warrant Shares have been sold under a Registration Statement or pursuant to Rule 144 (“Rule 144”) as promulgated under
the Securities Act, the Company shall use its reasonable best efforts to file with the Securities and Exchange Commission all current reports and the information as may be necessary to enable the Holder to effect sales of the Warrant Shares in
reliance upon Rule 144 promulgated under the Securities Act. 
 6. Investment Intent; Restrictions on Transferability. 
 (a) The Holder represents, by accepting this Warrant that it understands that this Warrant and any securities obtainable upon exercise of this Warrant
have not been registered for sale under Federal or state securities laws and are being offered and sold to the Holder pursuant to one or more exemptions from the registration requirements of such securities laws. Certificates representing Warrant
Shares may bear the restrictive legend set forth on the first page hereof. The Holder understands that the Holder must bear the economic risk of such Holder’s investment in this Warrant and any Warrant Shares or other securities obtainable upon
exercise of this Warrant for an indefinite period of time, as this Warrant and such Warrant shares or other securities have not been registered under Federal or state securities laws and therefore cannot be sold unless subsequently registered under
such laws, or an exemption from such registration is available. 
  

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 (b) The Holder, by such Holder’s acceptance of this Warrant, represents to the Company that such
Holder is acquiring this Warrant and will acquire any Warrant Shares or other securities obtainable upon exercise of this Warrant for such Holder’s own account for investment and not with a view to, or for sale in connection with, any
distribution thereof in violation of the Securities Act. The Holder agrees that this Warrant and any such Warrant Shares or other securities will not be sold or otherwise transferred unless (i) a registration statement with respect to such
transfer is effective under the Securities Act or (ii) such sale or transfer is made pursuant to one or more exemptions from the Securities Act. 
 7. Loss, Theft, Destruction or Mutilation of Warrant. 
 Upon receipt of evidence satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant, and of indemnity reasonably satisfactory to the Company, if lost, stolen or destroyed, and upon surrender and cancellation of this Warrant, if mutilated, the Company shall
execute and deliver to the Holder, a new Warrant of like date, tenor and denomination. 
 8. Warrant Holder Not Stockholder.

 This Warrant does not confer upon the Holder any right to vote or to consent to or receive notice as a stockholder of the Company, as such,
in respect of any matters whatsoever, or any other rights or liabilities as a stockholder, prior to the exercise hereof; this Warrant does, however, require certain notices to Holders as set forth herein. 
 9. Definitions. 
 In addition to the
terms defined elsewhere in this Warrant, the following terms have the following meanings: 
 “Assignment” shall mean a notice of
assignment substantially in the form of Exhibit A attached hereto. 
 “Business Day” shall mean any day except Saturday,
Sunday and any day that is a federal legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close. 
 “Common Stock” shall mean the Common Stock, par value $.001 per share, of the Company, for which the Warrant is exercisable and any securities
into which such common stock may hereafter be classified. 
 “Exercise Notice” shall mean a notice substantially in the form of
Exhibit C attached hereto. 
 “Holder” shall mean the holder of this Warrant and “Holders” shall mean the holder
of this Warrant and the holders of all other Warrants. 
  

 - 6 - 

 “Partial Assignment” shall mean a notice of partial assignment substantially in the form of
Exhibit B attached hereto. 
 “Permitted Consideration” shall mean (a) cash or other funds immediately available to the
Company. 
 “Registration Rights Agreement” shall mean that certain Registration Rights Agreement, dated as of August 31,
2007, by and between the Company and the parties thereto. 
 “Trading Day” means (i) a day on which the Common Stock is traded
on a Trading Market (other than the OTC Bulletin Board), or (ii) if the Common Stock is not listed on a Trading Market, a day on which the Common Stock is traded in the over the counter market, as reported by the OTC Bulletin Board, or
(iii) if the Common Stock is not quoted on the OTC Bulletin Board, a day on which the Common Stock is quoted in the over the counter market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency
succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day. 
 “Trading Market” shall mean whichever of the New York Stock Exchange, the AMEX, the NASDAQ Global Select Market, the NASDAQ Global Market, the
NASDAQ Capital Market or OTC Bulletin Board on which the Common Stock is listed or quoted for trading on the date in question. 
 “Warrants” shall mean this Warrant, all similar Warrants issued on the date hereof and all warrants hereafter issued in exchange or substitution for this Warrant or such similar Warrants. 
 10. Communication. 
 All notices and
communications hereunder shall be in writing and shall be deemed to be duly given if sent by registered or certified mail, return receipt requested, via a national recognized overnight mail delivery service, or by facsimile (provided the sender
receives a machine-generated confirmation of successful transmission), if to the Company, to: 
  

			
	eDiets.com, Inc.
	3801 W. Hillsboro Blvd.
	Deerfield Beach, Florida 33442
	Attn:	  	General Counsel
	Fax:	  	(954) 360-9022

  

 - 7 - 

 With a copy to (except in the case of Exercise Notices, Assignments and Partial Assignments): 

 

			
	Edwards Angell Palmer & Dodge LLP
	350 E. Las Olas Boulevard
	Suite 1150
	Fort Lauderdale, Florida 33301-4215
	Attn:	  	Leslie J. Croland, P.A.
	Fax:	  	(904) 727-2601

 If to the Holder of this Warrant, to such Holder at the address listed on the records of the
Company. 
 11. Reservation of Warrant Shares; Listing. 
 The Company shall at all times prior to the Expiration Date (a) have authorized and in reserve, and shall keep available, solely for issuance and delivery upon the exercise of this Warrant, the shares of the
Common Stock and other securities and properties as from time to time shall be receivable upon the exercise of this Warrant, free and clear of all restrictions on sale or transfer, other than under Federal or state securities laws, and free and
clear of all preemptive rights and rights of first refusal; and (b) use its reasonable best efforts to keep the Warrant Shares authorized for listing on any national securities exchange, the Nasdaq National Market, the Nasdaq Capital Market or
the OTC Bulletin Board. 
 12. Headings; Severability. 
 The headings of this Warrant have been inserted as a matter of convenience and shall not affect the construction hereof. In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in
any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which
shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Warrant. 
 13. Applicable Law. 
 This Warrant shall be governed by and construed in accordance with the law of the State of Delaware
without giving effect to the principles of conflicts of law thereof. 
 14. Specific Performance. The Company agrees that the remedies
at law of the Holder of this Warrant in the event of any default or threatened default by the Company in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent
permitted by law, such terms maybe specifically enforced by a decree for the specific performance of any obligation contained herein or by an injunction against a violation of any of the terms hereof or otherwise. 
  

 - 8 - 

 15. Amendment, Waiver, etc. 
 Except as expressly provided herein, neither this Warrant nor any term hereof may be amended, waived, discharged or terminated other than by a written
instrument signed by the party against whom enforcement of any such amendment, waiver, discharge or termination is sought. 
 [Signature
Page Follows] 
  

 - 9 - 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly signed by its undersigned duly
authorized officer as of the Original Issue Date first above referenced. 
  

			
	 eDiets.com, Inc.

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 - 10 - 

 EXHIBIT A 
 ASSIGNMENT 
 FOR VALUE RECEIVED
                        
                         hereby sells, assigns and transfers unto
                        
                         the foregoing Warrant and all rights evidenced thereby, and does irrevocably constitute and appoint
                        
                        , attorney, to transfer said Warrant on the books of eDiets.com, Inc. 
  

									
	 Dated:
                            
	 		 	Signature:	 	  
	 	
					
		 		 	 Address:
	 	  
	 	

  

 - 11 - 

 EXHIBIT B 
 PARTIAL ASSIGNMENT 
 FOR VALUE RECEIVED
                        
                         hereby assigns and transfers unto
                        
                         the right to purchase          shares of the Common
Stock, par value $.001 per share, of eDiets.com, Inc. covered by the foregoing Warrant, and a proportionate part of said Warrant and the rights evidenced thereby, and does irrevocably constitute and appoint
                        
                        , attorney, to transfer that part of said Warrant on the books of eDiets.com, Inc. 
  

									
	 Dated:
                            
	 		 	Signature:	 	  
	 	
					
		 		 	Address:	 	  
	 	

  

 - 12 - 

 EXHIBIT C 
 EXERCISE NOTICE 
 The undersigned hereby elects to purchase         
shares of Common Stock of eDiets.com, Inc. pursuant to the attached Warrant, and, if such Holder is not utilizing the cashless (or net) exercise provisions set forth in the Warrant, encloses herewith
$             in cash, certified or official bank check or checks or other immediately available funds, which sum represents the aggregate Per Share Warrant Price for the number of
shares of Common Stock to which this Exercise Notice relates, together with any applicable taxes payable by the undersigned pursuant to the Warrant. 
 By
its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that it is an “accredited investor” as defined in Rule 501(a) under the Securities Act of 1933. 
 The undersigned requests that certificates for the shares of Common Stock issuable upon this exercise be issued in the name of:
                        
                        . 
  

									
	 Date:
                            
	 		 	  
	 	
		 		 	Signature	 	
					
		 		 	Name:	 	  
	 	
					
		 		 	Address:	 	  
	 	
					
		 		 		 	  
	 	
				
		 		 	Social Security or Tax I.D. Number:	 	
		 		 		 	  
	 	

  

 - 13 -

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