Document:

Technology Licence Agreement

 Exhibit 10.2 
  
 THIS AGREEMENT DATED 15 JULY 2004 
  
 PARTIES 
  

					
	 1
	    	eDiets	  	eDIETS EUROPE LIMITED a company registered in Ireland (registered number 329476) whose registered office is at 29 North Anne Street, Dublin 7, Ireland (including its successors and
permitted assigns);
			
	 2
	    	Tesco	  	TESCO IRELAND LIMITED a company registered in Ireland (no. 19542) whose registered office is at Gresham House, Marine Road, Dun Laoghaire, Co. Dublin, Ireland (including its successors
and permitted assigns); and
			
	 3
	    	eDiets.com	  	eDIETS.COM, INC., a company registered in Delaware whose principal place of business is at 3801 W. Hillboro Blvd, Deerfield Beach, Florida, USA (including its successors and permitted
assigns).

  
 RECITALS 
  

	A.	eDiets is the proprietor of the Technology (as hereinafter defined). 

  

	B.	Tesco is desirous of obtaining a licence of the Technology for the purposes of the Business (as hereinafter defined). 

  

	C.	eDiets agrees that in consideration of Royalties (as hereinafter defined) to be paid to eDiets and other good and valuable consideration, eDiets will grant a licence to Tesco to use
the Technology subject to and upon the terms and conditions of this agreement. 

  
 OPERATIVE PROVISIONS 
  

	1	Definitions and interpretation 

  

	1.1	In this agreement and the recitals, where the context so admits, the following definitions apply: 

  

			
	Business	  	the business of delivering personalized weight loss services and the delivery of diet related fitness services in

  

 1 

			
	 	  	any online (including but not limited to Internet, 3G, WAP, SMS, fax and phone) or offline medium purposefully directed to customers residing in the Territory and for the avoidance of doubt
shall include the fitness service as incorporated in the eDiets Service, but shall not include any standalone online personalised fitness service or the services as currently offered at http://www.eFitness.ie;
		
	 Business Transfer
 Agreement
	  	an agreement between eDiets, Tesco, eDiets.com, Unislim Ireland Limited and Ciaran McCourt of even date transferring certain assets and employees from eDiets to Tesco;
		
	Confidential Information	  	all confidential information as specified in clause 13 below;
		
	Consumer Price Index	  	the general index of retail prices, all items index, compiled by the UK Office for National Statistics and published in the United Kingdom in the Monthly Digest of Statistics by the Office
for National Statistics (or any other relevant government department or executive agency which may from time to time be responsible for its compilation and/or publication) or any other official cost of living index published in the place of or in
substitution for that index;
		
	Content	  	the content specified in part 1.4 of schedule 1;
		
	Control	  	the power to direct the affairs of a company, whether by contract, ownership of shares, management influence or otherwise;
		
	Copyright	  	the copyright in all the works specified in part 1.3 of schedule 1 (including all copyright and source code to all software, tools and materials referred to in that part);
		
	Domain Names	  	the domain names specified in part 1.6 of schedule 1;
		
	eDiets Service	  	the personalised weight loss and diet related fitness business carried out by eDiets.com;

  

 2 

			
	Editorial Material	  	any amended Content;
		
	Effective Date	  	the date of Completion of the Business Transfer Agreement (as defined in that agreement);
		
	Enhancement	  	new material which is operatively connected to (but does not form part of) the Technology (for example via an interface);
		
	Group	  	in respect of a party, that party and any company which is a Subsidiary Company or a Holding Company of that party or any company which is a Subsidiary Company of any Holding
Company;
		
	Holding Company	  	a holding company as defined by Section 736 of the Companies Act 1985;
		
	Improvements	  	all improvements in or to the Technology (including but not limited to Enhancements, Modifications, Updates and Upgrades);
		
	 Intellectual Property
 Rights or
IPR
	  	all present and future intellectual property rights including, without limitation, patents, inventions, trade marks, design rights, copyright, database rights (whether or not any of these is
registered and including any applications for registration of any such rights), know-how, confidential information and trade secrets and all rights and forms of protection of a similar nature or having similar effect to any of these which may exist
anywhere in the world;
		
	Interactive Functionality	  	the interactive functionality specified in part 1.1 of schedule 1;
		
	Know-How	  	know-how or experience whether patentable or not including but not limited to all design or manufacturing

  

 3 

			
		
	 	  	techniques, operating instructions, machinery designs, raw materials or products specifications, drawings, blue prints and any other technical and commercial information relating to research,
design, development, manufacture, assembly use or sale necessary for operating the Business;
		
	Marketing	  	any activity for the promotion of the Business including, but not limited to, those activities set out in schedule 2;
		
	Minimum Royalty	  	the minimum royalty specified in clause 7.5;
		
	Modification	  	any alteration to the Technology (for example a change in the source code) or the creation of a new outward facing interface;
		
	Quarter	  	the four three month periods in the Year, the first such period beginning on the Effective Date and each subsequent such period beginning three months thereafter;
		
	Royalties	  	the royalties payable by Tesco under this agreement as set out in clause 7;
		
	Royalty Deduction	  	the deduction from the Royalty specified in clause 7.7;
		
	Service Level Agreement	  	the agreement between eDiets.com and Tesco of even date;
		
	Steering Committee	  	a committee made up of four representatives of Tesco and one representative of eDiets.com to give guidance and oversight to Tesco regarding the implementation of the
Business;
		
	 Subsidiary Company
 (or Subsidiary in
its plural
 form)
	  	a subsidiary as defined by Section 736 of the Companies Act 1985;

  

 4 

			
	Technology	  	the Content, Domain Names, Interactive Functionality, Trade Marks, Know How, Copyright, Third Party Licences specified in schedule 1 and any related confidential information including and all
Intellectual Property Rights therein and Improvements thereof, which for the avoidance of doubt shall include all future technology or content developed by eDiets or eDiets.com anywhere in the world and useable in relation to the
Business;
		
	Term	  	the term specified in clause 14.1;
		
	Territory	  	the United Kingdom and Ireland;
		
	Tesco Standalone Material	  	any material (including but not limited to application code, text, information, images, audio or video material) developed by or for Tesco which is not an Enhancement or Modification or
Editorial Material;
		
	Third Party Licences	  	the benefit (by way of sub-licence or otherwise) of all third party licences of IPR required to use the Technology including but not limited to those set out in part 1.5 of schedule
1;
		
	Total Revenue	  	all (a) cash subscription income (which shall be all income from subscriptions less any refunds given) and (b) advertising income (which shall be all revenue actually paid by advertisers, net
of VAT paid and net of advertising server costs (if any) received by Tesco from customers or advertising customers of the Business operated using the Technology). For the avoidance of doubt, “Total Revenue” does not include any revenues
received in respect of the sale of products or services, including revenues in respect of (i) the Tesco.com website (whether generated through the sale of products, the provision of services, the display of advertising or otherwise on the Tesco.com
website), and, (ii) Tesco Stores Limited,

  

 5 

			
	 	  	provided that the products or services themselves do not utilise the Technology;
		
	Trade Marks	  	 (i)       the name “eDiets”;
  
 (ii)      the trade marks
and trade mark applications specified in part 1.2 of schedule 1; and
  
 (iii)    any future trade marks and trade mark applications in or applicable to the Territory relevant to the Business;

		
	Updates	  	an update to a software element of the Technology which is for maintenance purposes and does not enhance functionality (for example, a bug fix);
		
	Upgrades	  	an upgrade to a software element of the Technology which does enhance functionality (for example, a new release or new version);
		
	VAT	  	value added tax under the Value Added Tax Act 1994;
		
	Website	  	the eDiets.com website which, at the Effective Date, is located at the URL http://www.ediets.com;
		
	Year	  	a period of 12 months from the Effective Date or an anniversary thereof.

  

	1.2	Save as otherwise provided herein, any references in this agreement to clauses or paragraphs are references to the clauses or paragraphs of this agreement unless the context
otherwise admits or so requires. 

  

	1.3	Words such as hereunder, hereof and herein and other words commencing with here shall, unless the context clearly indicates to the contrary, refer to the whole of this agreement and
not to any particular clause hereof. 

  

	1.4	References to the singular shall include the plural and vice versa and reference to any gender shall include other genders. 

  

 6 

	1.5	The headings to the clauses in this agreement are for reference only and shall not affect the interpretation of this agreement. 

  

	1.6	This agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when executed and delivered shall constitute
an original, all such counterparts together constituting as one and the same instrument. 

  

	1.7	Amendments to or modifications of this agreement may be made only by mutual agreement of all parties in writing and shall be subject to whatever approvals or appropriate authorities
as may be required by law. 

  

	1.8	A waiver by any party of any breach by another party of any terms, provisions or conditions of this agreement or the acquiescence of such party and any act (whether by commission or
omission) which but for such acquiescence would be a breach as aforesaid shall not constitute a general waiver of such term, provision or condition or of any subsequent act contrary thereto. 

  

	1.9	This agreement shall not authorize any party to be the legal representative, partner or agent of the other parties or any of them nor (save as expressly provided in this agreement)
shall any party, or any successor of any party, have the right or authority to assume, create or incur any liability or obligation of any kind express or implied against or in the name of or on behalf of any other party. 

  

	1.10	Except as expressly provided in this agreement, this agreement, or the benefit hereof, may not be assigned, sublicensed or transferred by any party in whole or in part without the
prior and mutual written consent of all of the other parties (such consent not to be unreasonably withheld, delayed or conditioned) save that: 

  

	 	1.10.1 	Tesco may assign or transfer this agreement or the benefit of it (in whole or in part), to any member of its Group; 

  

	 	1.10.2 	eDiets may assign or transfer this agreement or the benefit of it (in whole or in part), to any member of its Group; 

  

	 	1.10.3 	 eDiets may assign this agreement outside of its Group as part of a sale of substantially all of the assets of eDiets, or its Group, or a change of Control or merger
of eDiets, or its Group, provided always that such 

  

 7 

	 	 
assignment is not permitted to Wal-Mart Stores, Inc. or a member of its Group. 

  

	1.11	This agreement and all rights and obligations hereunder shall for all purposes be treated and construed as being separate and apart from any other agreement or agreements or any
rights or obligations thereunder save only insofar as the express provision requires to the contrary. 

  

	1.12	The parties hereto enter this agreement as principals for and on their own behalf. 

  

	1.13	This agreement represents the entire of the understanding of the parties concerning the subject matter hereof and overrides and supersedes all prior promises, representations
(unless fraudulent), undertakings, understandings, arrangements, agreements, side letters or heads of agreement concerning the same which are hereby revoked by mutual consent of the parties. 

  

	1.14	The agreement shall become effective only upon the same being executed by or on behalf of all parties hereto. 

  

	1.15	References to “liability”, unless the context otherwise requires includes claims, demands, proceedings, damages, losses, costs and expenses. 

  

	1.16	Any reference to any statutory enactment includes all amendments, re-enactments and secondary legislation. 

  

	1.17	If the British Pound (£) shall be discontinued then the values stated herein shall be converted to Euros (€) or any such official currency of the United Kingdom using the
conversion rate as posted in the London Financial Times (or similar periodical if discontinued) on the date just prior to discontinuation. 

  

	2	Conditions Precedent 

  

	2.1	This agreement is wholly conditional upon and no rights or obligations shall arise for any of the parties hereto until such time as the Business Transfer Agreement has been executed
and Completion (as defined in the Business Transfer Agreement) has taken place. 

  

 8 

	3	Agreement 

  

	3.1	eDiets, as legal and beneficial owner of the Technology, and subject to the terms of this agreement, grants to Tesco a royalty bearing (for the Term) licence to use the Technology,
subject to the following conditions: 

  

	 	3.1.1 	the licence shall be an exclusive licence to use the Technology in relation to the Business in the Territory; 

  

	 	3.1.2 	ownership of the Technology and all Intellectual Property Rights thereto shall vest in the eDiets Group at all times; 

  

	 	3.1.3 	Tesco shall be entitled to grant or authorise sub-licences of the Technology with the consent of eDiets, such consent not to be unreasonably withheld, delayed or conditioned (save
that no consent is required for any sub-licence (a) to a member of Tesco’s Group, or (b) to the provider of IT and/or business process outsourcing or administration services to Tesco’s Group); 

  

	 	3.1.4 	without prejudice to the generality of the foregoing, eDiets reserves all rights in the Technology outside of the Business and outside of the Territory. 

  

	3.2	eDiets shall (and shall procure that members of its Group shall) make fully available to Tesco (in such format and on such media as Tesco requests) such Know-How as eDiets may
disclose without being in breach of any valid third party confidentiality agreements and as may be reasonably required by Tesco to use the Technology to operate the Business in the Territory, but (except to the extent set out in any other agreement
between the parties) eDiets shall be under no obligation to attend at the premises of Tesco for this purpose or to respond to subsequent requests for information or assistance from Tesco. eDiets shall make such Know-How available to Tesco within 7
days of the Effective Date. 

  

	4	Atkins sub-licence 

  

	4.1	For the purposes of this clause 4, the following definitions apply: 

  

	 	4.1.1 	“ANI” means Atkins Nutritional Inc; 

  

	 	4.1.2 	“ANI Intellectual Property” shall have the meaning set out in the ANI Licence; 

  

 9 

	 	4.1.3 	“ANI Licence” means the licence agreement dated 14 February 2003 between ANI and eDiets.com, as amended by amendments to the licence agreement dated 19 May 2003, 17
September 2003 and 23 December 2003. 

  

	4.2	eDiets.com grants to Tesco a sub-licence to use the ANI Intellectual Property in the Territory. 

  

	4.3	The sub-licence shall be an exclusive sub-licence to use the ANI Intellectual Property in relation to the Business in the Territory. 

  

	4.4	The sub-licence of the ANI Intellectual Property shall terminate on expiry or termination of this agreement or of the ANI Licence. 

  

	4.5	eDiets.com and Tesco agree that the sub-licence to Tesco of the ANI Intellectual Property shall be on the same terms as those set out in the ANI Licence subject to the following
changes: 

  

	 	4.5.1 	Tesco shall be under no obligation to promote ANI products to its customers in the Territory; 

  

	 	4.5.2 	the royalty payable by Tesco for use of the ANI Intellectual Property shall be 10% of all cash subscription income (which shall be all income from subscriptions less any refunds
given) (and eDiets shall (or shall procure that eDiets.com shall) deliver all royalties paid by Tesco under this clause 4.5.2 to ANI without delay or deduction); 

  

	 	4.5.3 	there shall be no minimum royalty payable by Tesco to eDiets.com in connection with the sub-licence of the ANI Intellectual Property; 

  

	 	4.5.4 	payment of the royalty will be made to eDiets.com at the same time as payment of the Royalty to eDiets under clause 7 of this Agreement; 

  

	 	4.5.5 	Tesco shall not be obliged to carry insurance in accordance with paragraph 9 of the ANI Licence; 

  

	 	4.5.6 	 Tesco shall not be obliged to grant ANI or eDiets.com the right to use 

  

 10 

	 	 
any of its user data and paragraph 30 of the ANI Licence shall not apply to Tesco. 

  

	4.6	eDiets.com warrants and undertakes to Tesco that: 

  

	 	4.6.1 	it has the necessary right and authority to grant the sub-licence of the ANI Intellectual Property to Tesco in accordance with this clause 4; 

  

	 	4.6.2 	ANI is aware of and has consented to the terms of the sub-licence of the ANI Intellectual Property to Tesco, including, without limitation to, the provisions of clause 4.5;

  

	 	4.6.3 	any Technology provided to Tesco under this Agreement that contains ANI Intellectual Property will have been approved by ANI under the ANI Licence; 

  

	 	4.6.4 	it shall promptly provide to Tesco copies of any notices or statements issued by ANI under the ANI Licence; 

  

	 	4.6.5	 it shall use best efforts to prevent termination of the ANI Licence under paragraph 16 of the ANI Licence as a result of any act or omission of eDiets.com.

  

	4.7	eDiets.com shall indemnify Tesco against all liabilities (including legal costs and disbursements) which the Tesco Group incurs as a result of any breach by eDiets.com of clause
4.6. 

  

	4.8	Subject to clause 4.9, eDiets.com shall indemnify, defend and hold the Tesco Group harmless from any claims, suits and damages or costs (including reasonable attorneys’s fees
and expenses) arising from or relating to any of the matters listed in (i) to (vi) of paragraph 8A of the ANI Licence. 

  

	4.9	eDiets.com’s liability under clause 4.8 above shall be limited to any amounts that eDiets.com is able to recover from ANI under the ANI Licence in relation to a particular
claim or suit provided that eDiets.com takes any action against ANI that it would take were it relying it on recovering under the indemnity in paragraph 8A of the ANI Licence from ANI for its own benefit. 

  

	4.10	 Tesco warrants and undertakes to eDiets.com that it will comply with the terms of the 

  

 11 

	 	 
ANI Licence, as amended by clause 4.5, to the extent that the terms apply to Tesco’s sub-licence of the ANI Intellectual Property and it shall indemnify
eDiets.com against all liabilities (including legal costs and disbursements) which eDiets.com incurs in connection with a claim from ANI that results from any breach by Tesco of this warranty and undertaking. 

  

	5	Obligations and Rights of Tesco 

  

	5.1	Tesco hereby agrees, undertakes and warrants with eDiets for the benefit of eDiets as follows: 

  

	 	5.1.1 	to refrain from using the Technology and Improvements outside of the Territory; 

  

	 	5.1.2 	to provide eDiets with copies of all relevant communications to and from regulatory authorities in the Territory relating to the Technology (such communications shall be deemed
Confidential Information under this agreement); 

  

	 	5.1.3 	to expend at least five hundred thousand pounds (STG £500,000), as calculated based on Tesco’s then current media rate card across its media, on Marketing in each year
for the first six (6) years after the Effective Date; and 

  

	 	5.1.4 	to pay Royalties to eDiets as defined in clause 7 below. 

  

	5.2	Tesco, at its sole discretion, may design and brand any website or other material (whether created for online or offline use) using the Technology as it determines (including using
a non-Tesco brand under licence from a third party, provided such third party’s involvement does not cause Tesco to breach the non-compete obligation in clause 15), provided that if the branding does not contain the word “eDiet”,
Tesco shall include a “powered by eDiets” legend above the fold on the home page in such a way that is clearly visible. Tesco will discontinue including the legend after the expiry or termination of this agreement, whatever the branding.

  

	5.3	 Tesco is free to negotiate with any third party suppliers to supply goods or services (including content) relating to diet products to the Business only if such
suppliers are not already exclusively contractually bound to supply to eDiets.com or its Group, or a 

  

 12 

	 	 
party with which eDiets.com or its Group has established a pre-existing exclusive commercial relationship. 

  

	5.4	Tesco may, with the prior written consent of eDiets (not to be unreasonably withheld, delayed or conditioned), choose to put its own arrangements in place with respect to any Third
Party Licence (provided such third party’s involvement does not cause Tesco to breach the non-compete obligation in clause 15, and further provided that Tesco shall not adversely interfere with the business relations or reputation of eDiets).
Tesco shall give eDiets prompt notice of any such arrangements. In order that Tesco may give such prompt notice, eDiets shall notify Tesco immediately of any intended purchase or renewal of a Third Party Licence. 

  

	5.5	Tesco shall be entitled to enter into Distribution Deals (as hereinafter defined) notwithstanding any other contrary provision of this agreement. “Distribution Deals”
means arrangements to supply material (which may include the Trade Marks) to any website commercially directed primarily at customers within the Territory, the sole purpose of which is to drive traffic to or otherwise promote Tesco’s websites
relating to the Business. For the avoidance of doubt (a) such third party sites may be branded by the third party and (b) the amount of Technology (including the Content and the Trade Marks) provided in a Distribution Deal shall be reasonable in
consideration of its aforementioned primary purpose and subject to the Confidentiality provisions of clause 13 below. 

  

	5.6	Tesco shall be entitled to enter into White Label Deals (as hereinafter defined) notwithstanding any other contrary provision of this agreement. “White Label Deals” means
arrangements to use the Technology to operate white labelled websites commercially directed primarily at customers within the Territory on behalf of third parties. If the branding of such website does not contain the word “eDiet” Tesco
shall prominently include a “powered by eDiets” legend above the fold on the home page in such a way that is clearly visible. Tesco shall not include the legend after the expiry or termination of this agreement, whatever the branding,
subject to the Confidentiality provisions of clause 13 below. For the avoidance of doubt such third party sites shall contain third party branding, and may contain third party content, but shall be reasonable in number and shall not be used to
circumvent this agreement’s prohibition on sublicensing the Technology without consent. 

  

	5.7	Tesco shall use reasonable efforts to divert customers of the Business situated outside the Territory to http://www.eDiets.com or such other site designated by eDiets.

  

 13 

	5.8	Tesco shall only use the Trade Marks in the manner set out in schedule 3 or such other manner as used by the eDiets Service. Any other use shall require Tesco to obtain the prior
written consent of eDiets, such consent not to be unreasonably withheld, delayed or conditioned. 

  

	5.9	Within 20 Business Days from the date of this agreement, Tesco and eDiets.com shall establish the Steering Committee. The Steering Committee shall meet at least once every Quarter
(or more often if requested by Tesco) at the offices of Tesco in Dublin or such other location as the parties shall determine. Tesco shall also provide updates to the Steering Committee on a monthly basis. For the avoidance of doubt, the Steering
Committee shall be a forum for discussion and information sharing only. 

  

	6	Obligations of eDiets 

  

	6.1	eDiets shall provide (and shall procure that members of its Group provide) such reasonable assistance as requested by Tesco from time to time in connection with the Business
(including, but not limited to, sales and marketing assistance) and Tesco’s use of the Technology, including but not limited to, allowing Tesco staff reasonable access to the staff and premises of eDiets and other members of its Group.

  

	6.2	eDiets shall use all reasonable endeavours to make available (and shall procure that members of its Group make available) to Tesco any favourable terms that eDiets is (or members of
its Group are) able to negotiate with its suppliers of any products and services which are not included in the Technology at eDiets’ (or its relevant Group member’s) reasonable documented cost for such products and services.

  

	6.3	During the Term eDiets shall (and shall procure that members of its Group shall) keep the Technology fully updated (by way of Improvements or otherwise) to ensure the Content and
functionality of the Technology are maintained to a level at least equivalent to that of the eDiets’ Service at no additional cost to Tesco. To the extent that such updated Technology or Content is developed by eDiets jointly with a third party
and providing it to Tesco is in violation of the agreement between eDiets and the relevant third party (and eDiets provides evidence of this to Tesco’s satisfaction), the following sub-clauses apply: 

  

	 	6.3.1 	 if such updated Technology or Content is not to be used by the third 

  

 14 

	 	 
party in competition with Tesco, eDiets shall use good faith efforts to obtain for Tesco a royalty-free licence to such Content or upgraded Technology;

  

	 	6.3.2 	if eDiets is not able to obtain a royalty-free licence under clause 6.3.1, any royalty or licence fee will be at Tesco’s cost but Tesco will have the option to accept or
decline the licence; and 

  

	 	6.3.3 	if such updated Technology or Content is to be used by the third party in competition with Tesco, eDiets shall be under no obligation to obtain a licence to such Content or upgraded
Technology for Tesco 

  

	6.4	During the term of this agreement and for one (1) year thereafter, eDiets shall keep complete and accurate records of its performance under this agreement in sufficient detail to
enable Tesco to determine eDiets compliance with this agreement. Upon Tesco’s reasonable request and thirty (30) days prior written notice, eDiets shall once in any year permit Tesco and its representatives (subject to standard conflict of
interest checks) to examine eDiets’ books, ledgers and records during regular business hours for the purpose of, and to the extent necessary, to verify eDiets’ compliance with this agreement. In the event an audit by Tesco discloses that
eDiets has materially breached its obligations under this agreement, eDiets shall promptly reimburse Tesco’s reasonable and documented actual expenses for the audit. 

  

	6.5	eDiets and eDiets.com shall use reasonable efforts to divert customers residing within the Territory to a website for conducting the Business designated by Tesco.

  

	7	Royalties 

  

	7.1	Subject to clause 7.3 Tesco shall pay eDiets a Royalty of ten percent (10%) of Total Revenues less the Royalty Deduction in each of the first three (3) Years.

  

	7.2	Subject to clause 7.3 Tesco shall pay eDiets a Royalty of five percent (5%) of Total Revenues less the Royalty Deduction from the fourth (4th) Year for the remainder of the Term. 

  

	7.3	If, in any Year, the Total Revenues exceed fifteen million pounds (£15,000,000) then the Royalty payable by Tesco in relation to any Total Revenues in excess of the fifteen
million pounds (£15,000,000) shall be three percent (3%) of the excess Total Revenues. 

  

 15 

	7.4	For each Year the Royalty paid shall be no less than the Minimum Royalty (as defined in clause 7.5). 

  

	7.5	Subject to clause 7.6 the Minimum Royalty shall be fifty thousand pounds (£50,000) per Year unless Tesco achieves Total Revenues of fifteen million pounds (£15,000,000)
in any Year in which case, the Minimum Royalty for that Year and all subsequent Years shall be one hundred thousand pounds (£100,000). 

  

	7.6	The Minimum Royalty shall be Irish Consumer Price Index adjusted, with the value of the pound (£) of the first year being used as the base for all Consumer Price Index
adjustments. The first six (6) Minimum Royalty payments shall not be adjusted until completion of the sixth (6th)
Year, and if the Royalty payments fall below the Minimum Royalty per year (as adjusted), Tesco shall pay eDiets the difference between the actual Royalty payments in every Year and the Minimum Royalty as adjusted. 

  

	7.7	The Royalty Deduction in the first Year shall be the lesser of £60,000 or an amount equivalent to the relevant percentage (as specified in clauses 7.1 or 7.2) of Total
Revenues and in each subsequent Year the lesser of £70,000 (Consumer Price Adjusted each Year) or an amount equivalent to the relevant percentage (as specified in clauses 7.1 or 7.2) of Total Revenues. 

  

	7.8	Within twenty eight (28) days of the end of each Quarter, Tesco shall provide eDiets with a quarterly report of gross revenue, VAT, Total Revenue and Royalties due for the previous
Quarter. A self-billing invoice shall accompany this statement. Within thirty-three (33) days of issuance of such quarterly report and self-billing invoice, Tesco shall pay to eDiets such Royalties due as set out in the report and self-billing
invoice. The statement relating to the fourth Quarter in any Year shall be used by Tesco to perform any reconciliation of the Royalties paid to eDiets in the Year leading up to the end of the fourth Quarter. Should Tesco discover any overpayment of
Royalties (for example, because of over reported Total Revenues) Tesco shall be entitled to reduce the Royalties paid in the next Quarter by the amount over paid. 

  

	7.9	 In addition to any payments arising from clauses 7.1, 7.2 and 7.3, Tesco shall pay to eDiets ten percent (10%) of all sales revenues, less VAT paid, for sales of
products other than the Technology supplied by eDiets for sale by Tesco in connection with the 

  

 16 

	 	 
Business unless the parties mutually agree to a different royalty rate for a specific product. Nothing in this agreement obliges Tesco to purchase or re-sell
any products from eDiets. 

  

	7.10	During the term of this agreement and for one (1) year thereafter, Tesco shall keep complete and accurate records of the sales, subscriptions and other revenue generated by the
Business in accordance with UK GAAP in sufficient detail to enable eDiets to determine Royalty payments owed to it under this clause 7. Upon eDiets’ reasonable request and on thirty (30) days’ prior written notice, Tesco shall once in any
Year permit eDiets and its representatives (subject to standard conflict of interest checks and the auditors compliance with equivalent confidentiality obligations to those in clause 13) to examine Tesco’s relevant books, ledgers and records
during regular business hours for the purpose of, and to the extent necessary to verify the amount of Royalties due and payable to eDiets. In the event an audit by eDiets discloses that Tesco has (taking into account any Consumer Price Index
adjustment as contemplated by clause 7) paid less than eighty percent (80%) of the Royalties actually due and owing during the term of this agreement, Tesco shall make good such additional sums due at the next Quarterly Royalty payment and shall
promptly reimburse eDiets its reasonable and documented actual expenses for the audit. In the event the amount or Royalties paid is greater than 80% but less than or equal to 100%, Tesco shall make good to eDiets the sums due at the next quarterly
Royalty payment. Should such audit discover any overpayment of Royalties (for example, because of over reported Total Revenues) Tesco shall be entitled to reduce the Royalties paid in the next Quarter by the amount over paid.

  

	7.11	All sums payable under this agreement shall be paid in full without deduction save that Tesco shall be entitled to deduct such tax as Tesco is obliged to deduct under any applicable
law. 

  

	8	Improvements. 

  

	8.1	Unless otherwise agreed in writing between the parties: 

  

	 	8.1.1 	 all Intellectual Property Rights in any Improvement developed or discovered by or for eDiets or a member of its Group, shall belong exclusively to eDiets (or its
licensor). eDiets shall furnish Tesco (subject to the obligations of confidentiality set out in clause 13) with information 

  

 17 

	 	 
regarding all such Improvements. Both parties hereby agree that the licence in clause 3.1 shall automatically include such Improvements at no extra cost to
Tesco. To the extent that providing such Improvement to Tesco is in violation of any agreement between eDiets and a third party (and eDiets provides evidence of this to Tesco’s satisfaction) the following sub-clauses apply:

  

	 	8.1.1.1 	if such Improvement is not to be used by the third party in competition with Tesco, eDiets shall use good faith efforts to obtain for Tesco a royalty-free licence to said
Improvements; 

  

	 	8.1.1.2 	if eDiets is not able to obtain a royalty-free licence under clause 8.1.1.1, any royalty or licence fee will be at Tesco’s cost but Tesco will have the option to accept or
decline the licence; 

  

	 	8.1.1.3 	if such Improvement is to be used by the third party in competition with Tesco, eDiets shall be under no obligation to obtain a licence for Tesco. 

  

	 	8.1.2 	all Intellectual Property Rights in any Modifications developed by or for Tesco shall belong to eDiets and Tesco shall furnish eDiets (subject to obligations of confidentiality set
out in clause 13) with information regarding all such Modifications. Both parties hereby agree that the licence in clause 3.1 shall automatically include Modifications owned by eDiets under this clause 8.1.2; 

  

	 	8.1.3 	all Intellectual Property Rights in any Enhancements developed by or for Tesco whose primary purpose is use in connection with the Business shall be disclosed to eDiets, but belong
to Tesco, and Tesco grants to eDiets (subject to clause 8.2.3 and obligations of confidentiality set out in clause 13) a licence (on commercially reasonable terms to be agreed between the parties in good faith) to use such Enhancements for the
purposes of its own business; 

  

	 	8.1.4 	 all Intellectual Property Rights in any Improvement developed or 

  

 18 

	 	 
discovered by eDiets and Tesco jointly, shall belong to both parties jointly and parties shall cooperate in good faith regarding the registration (if
applicable) and enforcement of such joint Improvements. Both parties hereby undertake to furnish the other party with full information regarding all Improvements developed jointly in connection with the Business. Both parties agree that the licence
in clause 3.1 shall automatically include such Improvements (notwithstanding this clause 8.1.4, Tesco shall be under no obligation to undertake any joint development activities with eDiets); 

  

	 	8.1.5 	all Intellectual Property Rights in any Editorial Material created by Tesco and incorporated into the Content shall be owned by eDiets. Both parties hereby agree that the licence in
clause 3.1 shall automatically include such Editorial Material. 

  

	8.2	For the avoidance of doubt, both parties hereby agree that: 

  

	 	8.2.1 	the licence in clause 3.1 shall apply to any Improvement in connection with the Business; 

  

	 	8.2.2 	all Tesco Standalone Material shall be outside the terms of this agreement and no rights are granted to eDiets in respect of Tesco Standalone Material (and if eDiets wishes to take
a licence of any Tesco Standalone Material, Tesco shall consider eDiets’ reasonable request in good faith but shall not be under any obligation to licence any Tesco Standalone Material to eDiets); 

  

	 	8.2.3 	Tesco may withhold Enhancements from eDiets if it reasonably believes that such Enhancements may (directly or indirectly) benefit any competitors of the Tesco Group (inside or
outside the Territory); and 

  

	 	8.2.4 	this clause 8 does not prevent eDiets from independently developing or entering into agreements or arrangements with third parties for the bespoke development of software.

  

 19 

	9	Warranties and Undertakings 

  

	9.1	eDiets warrants and undertakes to Tesco that: 

  

	 	9.1.1 	it has the necessary right and authority to enter into this agreement and its entering into this agreement is not a breach of any agreements with third parties or those with other
members of its Group; 

  

	 	9.1.2 	to eDiets knowledge, the Technology does not (and during the Term shall not) infringe any third party Intellectual Property Rights or breach any applicable laws and, to eDiets
knowledge, no facts or circumstances exist which would materially affect the title, scope, exercise, validity, subsistence, existence or enforceability of any of the rights including, without limitation, the Intellectual Property Rights granted to
Tesco under this agreement; 

  

	 	9.1.3 	to eDiets’ knowledge, the Technology (and, in particular, the Content) does not contain (and shall not contain) anything which, either directly or indirectly, causes harm to
the physical or mental health or well being of any individual or is defamatory; 

  

	 	9.1.4 	eDiets has the legal and beneficial rights in all of the Technology necessary to enter this Agreement and is authorised to sub-licence such Technology; 

  

	 	9.1.5 	the Technology is all the technology required by Tesco to operate the Business as operated by the eDiets Group on the date of this agreement; 

  

	 	9.1.6 	the Technology has not been affected by any defects or faults which have caused any material interruption to the Business at any time during the year ending with the Effective Date;

  

	 	9.1.7 	to eDiets’ knowledge, the Technology contains no material defects or faults that prevent (in whole or to a material part) Tesco from operating the Technology as operated by the
eDiets Group on the date of this agreement; and 

  

	9.2	For the purposes of clauses 9.1.3 and 9.1.7, the references to the knowledge of eDiets shall be deemed to include any knowledge, information, belief or awareness of an employee of
eDiets (including Ciaran McCourt and Colin Mitchell) which such employee ought reasonably to have had in relation to the matter in question. 

  

 20 

	9.3	Except as expressly set out in this agreement, the Technology is licensed “as is” without warranty of any kind, and no other warranties, either expressed or implied are
made with respect to the Technology, including but not limited to any implied warranties of merchantability, fitness for a particular purpose, or any other warranties that may arise from usage of trade or course of dealing. eDiets expressly
disclaims any warranties not stated herein. All terms, warranties, representations and conditions whether made orally or implied by circumstances, custom, contract, statute, in equity or at common law are hereby excluded. Without prejudice to the
foregoing, all terms implied pursuant to Sections 13 to 15 of the Sale of Goods Act 1979 are hereby excluded and the parties agree that this is fair and reasonable. All implied terms as to the supply of services pursuant to Sections 4 and 12 of the
Supply of Goods and Services Act 1982 are hereby excluded. 

  

	9.4	No other warranties by eDiets: Tesco acknowledges that, in entering into this agreement, it does not do so in reliance on any representation or warranty other than those expressly
made by eDiets in this agreement, and any conditions, warranties or other terms implied by statute or common law are excluded from this agreement to the fullest extent permitted by law. Without prejudice to the generality of the foregoing, nothing
in this agreement or the Licence granted hereunder shall be construed as: 

  

	 	9.4.1 	a representation or warranty that any patent applications comprised from time to time in the Technology will proceed to grant or that any patents granted pursuant to those
applications will be valid; 

  

	 	9.4.2 	a representation or warranty that any of the Trade Mark applications will be registered or that any trade marks registered pursuant to those applications will be valid;

  

	 	9.4.3 	(subject to clause 9.5) imposing any obligation on eDiets to bring or prosecute actions or proceedings against third parties for infringement or to defend any action or proceedings
for revocation; or 

  

	9.5	Notwithstanding clause 9.4.3 eDiets (or a member of its Group) shall be required to take action against any of its licencees operating a business the same as or similar to the
Business in the Territory using the Technology. 

  

 21 

	9.6	Tesco warrants to eDiets that: 

  

	 	9.6.1 	it has the necessary right and authority to enter into this agreement and to carry out the Business; 

  

	 	9.6.2 	the Business shall be operated, in all material respects, in accordance with all applicable laws and regulations; 

  

	 	9.6.3 	to the knowledge of Tesco, any Improvements that Tesco develops resulting from this agreement shall not infringe Intellectual Property Rights owned by any third party anywhere in
the Territory; 

  

	 	9.6.4	  to Tesco’s knowledge, the operation of the Business will not include anything which, either directly or indirectly, causes harm to the physical or mental health or well
being of any individual or is defamatory (however the warranty in this clause 9.6.4 shall not apply to the extent that the harm or defamation is a result of the Technology as provided by eDiets); 

  

	 	9.6.5 	the operation of the Business by Tesco shall not damage the eDiets brands; and 

  

	 	9.6.6 	the operation of the Business or use of the Technology shall be for the primary purpose of growing revenue of the Business as carried out by Tesco, whenever economically viable.

  

	10	Intellectual Property Rights 

  

	10.1	Tesco and eDiets hereby acknowledge that (subject to the provisions of clause 8) all Intellectual Property Rights in the Technology and all Improvements to the Technology vests in
and belongs to eDiets absolutely. 

  

	10.2	Tesco and eDiets shall at the request and expense of the other party do all things reasonably necessary, execute such deeds and documents and provide all such assistance reasonably
required to enable the requesting party to obtain and maintain the benefit of all Intellectual Property Rights referred to in clauses 8 and 10.1 and the requesting party acknowledges that it will not be entitled to any further compensation or
remuneration in respect of the performance of its obligations under this clause 10 save as may be provided for by law. 

  

 22 

	10.3	In relation to any infringement of the Technology or any breach of applicable law caused by the Technology: 

  

	 	10.3.1 	eDiets shall indemnify Tesco against all liabilities (including legal costs and disbursements) which the Tesco Group incurs as a result of any claim that the Technology infringes
the Intellectual Property Rights of any third party or is a breach of any applicable law; 

  

	 	10.3.2 	eDiets and Tesco shall immediately notify each other of any suspected, potential, actual or threatened infringements or other unauthorised use of the Technology or any third party
inventions similar thereto which comes to their attention or any attempts to challenge Tesco’s right to use the Technology in the Territory so long as this agreement shall remain in force; 

  

	 	10.3.3 	eDiets shall have no liability for any claim that eDiets lacks right, title and interest to the Technology based on Tesco’s modification, combination or integration of the
Technology with third party intellectual property, if such claim would have been avoided had the Technology not been modified, combined or integrated with third party technology. Tesco agrees, at its own expense, to defend eDiets and hold it
harmless against any suit, claim or proceeding arising under this clause 10.3. 

  

	11	Limitation of Liability 

  

	11.1	The aggregate liability of each party in any one Year under or in connection with this agreement whether arising from contract, negligence or otherwise, shall be limited in the
first Year to STG £300,000 and in each subsequent Year to 125% of the Royalty payments made in the previous Year. Any sums paid by a party under the Service Level Agreement by reference to a breach by that party of the Service Level Agreement
shall reduce the figures in this clause 11.1 on a £ for £ basis. 

  

	11.2	Neither Tesco no eDiets shall be liable for any indirect or consequential loss. 

  

	11.3	The exclusions and limitations of liability set out in clause 11 do not apply to: 

  

	 	11.3.1 	liability arising from death or injury to persons caused by negligence; 

  

 23 

	 	11.3.2 	Tesco’s obligation to pay the Royalties; 

  

	 	11.3.3 	eDiets’ liability under clauses 9.1.2, 9.1.3 and 10.3.1; 

  

	 	11.3.4 	either party’s liability arising as a result of fraud or a breach of clauses 15.1 to 15.4; 

  

	 	11.3.5 	any other liability which by law cannot be excluded or limited; 

  
 to which no limit applies. 
  

	12	Guarantee and ability of eDiets to licence the Technology 

  

	12.1	In consideration of the entry of Tesco into this agreement, eDiets.com irrevocably and unconditionally as primary obligor undertakes and guarantees to Tesco on demand the
performance by eDiets of all its obligations under this agreement and/or the other documents to be executed in connection with it. 

  

	12.2	eDiets.com shall hold harmless and indemnify Tesco on demand against losses, liabilities, damages, costs and expenses (including legal costs and expenses on an indemnity basis)
which Tesco suffers by reason of a default by eDiets in the performance of its obligations under this agreement or the other documents to be executed in connection with it. 

  

	12.3	If eDiets defaults in the performance of its obligations under this agreement, eDiets.com shall on demand perform (or procure the performance of) that obligation, so that the same
benefits shall be conferred on Tesco as it would have received if eDiets had duly performed that obligation. 

  

	12.4	The obligations and liabilities of eDiets.com in this clause 12 are continuing obligations and liabilities which shall remain in force until the obligations of eDiets under this
agreement and the other documents to be executed in connection with it have been performed. 

  

 24 

	12.5	The obligations of eDiets.com under this clause 12 shall not be affected by anything which, but for this clause, might operate to release or otherwise exonerate it from or affect
its obligations. In particular none of the following shall affect the obligations of eDiets.com: 

  

	 	12.5.1 	any time, indulgence, waiver or consent given at any time to eDiets or another person except that eDiets.com’s obligations under this clause 12 shall not apply in relation to a
breach by eDiets of the agreement that Tesco has expressly waived in writing; 

  

	 	12.5.2 	any legal limitation, disability, incapacity or other circumstance relating to eDiets or another person; 

  

	 	12.5.3 	an irregularity, unenforceability or invalidity of the obligations of a party to this agreement which does not affect the enforceability or validity of the relevant obligation(s)
being asserted; and 

  

	 	12.5.4 	the dissolution, amalgamation, reconstruction or insolvency of eDiets. 

  

	12.6	The obligations and liabilities contained in this clause 12 may be enforced without Tesco first taking any action against eDiets. 

  

	12.7	Tesco may make one or more demands under this clause 12. 

  

	12.8	This clause 12 is expressly enforceable in any jurisdiction, including in the United States. 

  

	12.9	If there is an amendment and/or variation to the terms of this agreement and/or any other document referred to in it or to be executed in conjunction with it, the obligations of
eDiets under this clause 12 shall apply to the agreement as amended or varied term(s). 

  

	12.10 	In the event that eDiets is no longer entitled or able to licence the Technology to Tesco under this agreement or in the event that eDiets undergoes any event set out in clause
14.2.3, eDiets.com shall procure an equivalent licence from eDiets British Virgin Islands, Inc (or any other relevant member of its Group) for the benefit of Tesco. 

  

	12.11 	An assignment of this agreement under clause 1.10 shall not relieve the Guarantors of their obligations under this agreement. 

  

	13	Confidential Treatment of information 

  

	13.1	 For the purposes of this agreement, “Confidential Information” shall include all information of whatever nature which has been or is disclosed by either
party or to 

  

 25 

	 	 
which either party has been given access, whether in oral, written, graphic, photographic, digital, binary, electronic or paper or in any other form
whatsoever, howsoever stored. 

  

	13.2	The provisions of clause 13.1 do not apply to: 

  

	 	13.2.1 	Confidential Information which at the time of disclosure is within the public domain; 

  

	 	13.2.2 	Confidential Information which after such disclosure comes into the public domain (otherwise and by reason of a breach of any of the undertakings in clause 13.3 below); or

  

	 	13.2.3 	Confidential Information which was lawfully in the possession of the party prior to its being furnished by or on behalf of the other party provided that such information was not
bound by a confidentiality agreement or other obligation of secrecy in respect thereof as evidenced by the ordinary business records of the parties. 

  

	13.3	In consideration of Confidential Information being made available under this agreement, each party will procure that: 

  

	 	13.3.1 	use of the Confidential Information will only occur for purposes relating to this agreement only; 

  

	 	13.3.2 	each party will treat and safeguard as private and confidential all the Confidential Information received at any time. This clause 13.3.2 shall remain in force after expiration or
termination of this agreement; 

  

	 	13.3.3 	neither party shall at any time without the prior written consent of the other party disclose or reveal the Confidential Information to any other person or party whatsoever, other
than the officers, employees, advisors and agents or authorised third parties who are required in the course of their duties to receive and consider the same and who shall be required to observe the same restrictions on the use and disclosure of the
Confidential Information as are contained in this clause 13. 

  

	13.4	 It shall not be a breach of this agreement if such disclosure is made pursuant to a 

  

 26 

	 	 
formal request of a court or governmental agency after sufficient notice to the other party to oppose such request. 

  

	13.5	Each party shall make known without delay to the other party any improper disclosure on the part of an employee or customer or any other person, which may come to that party’s
knowledge. 

  

	14	Term and Termination 

  

	14.1	This Agreement shall remain in force for fifteen (15) Years from the Effective Date (“Initial Term”) and thereafter be renewed for successive two-Year terms (each, a
“Renewal Term”) unless terminated by Tesco on giving eDiets written notice. eDiets shall notify Tesco in writing at least six months before the end of the Initial Term and each Renewal Term that the Term is about to expire and such notice
shall include a request of Tesco to inform eDiets it wishes to renew the agreement. 

  

	14.2	eDiets or Tesco shall be entitled by notice in writing to the other, but without prejudice to any other rights or remedies of either party in respect of any matter or event which
shall have arisen or taken place prior to such notice, to terminate this agreement: 

  

	 	14.2.1 	if any material representation or warranty made by the other herein or in any report, statement, certificate or other instrument delivered under or pursuant to this agreement or the
Service Level Agreement or in connection with any provision of any of such shall prove to have been false or breached in any material respect on the date as of which made; 

  

	 	14.2.2 	by reason of a material breach, default, non-performance or non-observance by the other party of any other provisions, terms or obligations herein and on the other party’s part
to be performed and observed, which the terminating party has required the other party by notice in writing to remedy (such notice specifying the relevant terms, provisions, or obligations and stating the intention of the terminating party to
terminate this agreement pursuant to this clause 14.2.2) and the other party has not within thirty (30) days of such notice remedied (whether such breach is capable of remedy or not); 

  

	 	14.2.3 	 if the other party becomes insolvent, unable to pay its debts as they fall due within the meaning of Section 123 of the Insolvency Act 1986 or 

  

 27 

	 	 
makes any arrangement or composition with its creditors or passes a resolution or any court shall make an order that either party shall be wound up (save and
excepting only a member’s winding up for the purposes of reconstruction or amalgamation; in the case of such activity by eDiets, Tesco shall be notified at least five (5) Business Days in advance) or if an receiver, administrator or similar
officer is appointed over the whole or any part of its assets, or if circumstances shall arise which entitle a court or a creditor to appoint a receiver, administrator or similar officer or to make a winding up order or either party suffers or
undergoes any analogous process to the above under any national laws applicable to it. 

  

	14.3	eDiets shall be entitled by notice in writing to Tesco, but without prejudice to any other rights or remedies of either party in respect of any matter or event which shall have
arisen or taken place prior to such notice, to terminate this agreement: 

  

	 	14.3.1 	if Tesco fails to expend at least two hundred fifty thousand pounds (£250,000) on Marketing in each of any two successive six-month periods during the first six (6) Years
provided that (a) eDiets pays Tesco 1,000% of the Royalty Payments actually due (disregarding any Minimum Royalty to eDiets) in the 12 months prior to the date of termination, and (b) Tesco has not cured any shortfall in the six-month period
following notification of such shortfall; or 

  

	 	14.3.2 	(provided any notice under this clause 14.3.2 is not effective before 18 months from the Effective Date) if, the Business has not generated Total Revenues sufficient to result in
the Minimum Royalty in a Year (for the purposes of this clause 14.3.2 the Minimum Royalty shall not be Consumer Price Index adjusted under clause 7.6) provided that (a) eDiets has required Tesco to remedy the situation by giving at least six months
notice in writing to remedy the shortfall (such notice expressly specifying that the Minimum Royalty has not been achieved during such period and stating the intention of eDiets to terminate the Agreement pursuant to clause 14.3.2), and, (b) Tesco
has not within six months (or such longer period as stated in the notice) generated sufficient additional revenues to cure any shortfall. 

  

 28 

	14.4	Without prejudice to any other rights or remedies of Tesco under the Service Level Agreement, Tesco shall be entitled by notice in writing to eDiets to immediately terminate this
agreement in the event of the termination or expiry of the Service Level Agreement. Termination or expiry of the Service Level Agreement shall not be considered a breach of this agreement by eDiets. 

  

	14.5	Tesco shall be entitled by notice in writing to eDiets, but without prejudice to any other rights or remedies of either party in respect of any matter or event which shall have
arisen or taken place prior to such notice, to terminate this agreement by giving at least six (6) months’ notice, such notice not be served before eighteen (18) months after the Effective Date. 

  

	14.6	Tesco shall be entitled by notice in writing to eDiets to terminate this agreement upon a change of Control of eDiets or eDiets.com (unless such change of Control is solely the
result of a bona fide intra-Group reorganisation). For the avoidance of doubt, termination by Tesco under this clause 14.6 shall not be considered a termination because of a material breach by eDiets of this agreement. 

  

	14.7	On termination or expiry of this agreement: 

  

	 	14.7.1 	all rights granted in favour of Tesco shall cease except and to the extent expressly provided otherwise under the terms of this agreement; 

  

	 	14.7.2 	(if the termination is because of a material breach by Tesco) Tesco hereby undertakes (at eDiets’ direction) to either destroy or deliver up to eDiets all copies of all
Technology and eDiets’ Confidential Information furnished by eDiets under this agreement within thirty (30) days of termination of this agreement; 

  

	 	14.7.3 	eDiets hereby undertakes to cease all use of Tesco’s Confidential Information and (at Tesco’s direction) to either destroy or deliver up to Tesco all Tesco Confidential
Information furnished by Tesco under this agreement within thirty (30) days of termination of this agreement; and 

  

	 	14.7.4 	 (unless in contradiction with clauses 14.7.1, 14.7.2 and 14.7.3) the following clauses shall survive termination or expiry of this agreement: 3 (Agreement), 8
(Improvements), 9 (Warranties and Undertakings), 10 (Intellectual Property Rights), 11 (Limitation of Liability), 12 (Guarantee 

  

 29 

	 	 
and ability of eDiets to licence the Technology) 13 (Confidential Treatment of information), 14 (Term and Termination), 15 (Non-Competition), 16.4 (Governing
Law) and 16.5 (Third Parties). 

  

	15	Non-Competition 

  

	15.1	Tesco agrees and covenants that neither it nor a member of its Group will during the Term operate the online elements of the Business in the Territory using any technology other
than the Technology. Tesco agrees and covenants that neither it nor a member of its Group will, in relation to the offline elements of the Business in the Territory, use any technology other than the Technology except to the extent that the
Technology is unable to offer the performance or functionality required by Tesco for the offline elements of the Business. 

  

	15.2	eDiets agrees and covenants that neither it nor a member of its Group will compete (or be involved in any undertaking which competes) directly or indirectly (for example, by way of
licence to a third party) with Tesco by carrying out a business similar to the Business in the Territory. This covenant not to compete shall exist from the Effective Date until one year after termination of this agreement. However, the covenant not
to compete shall immediately be null and void if termination results from a material breach by Tesco of this agreement. 

  

	15.3	Tesco agrees and covenants that upon expiration or termination of this agreement neither it nor a member of its Group (a) will compete (or be involved in any undertaking which
competes) directly or indirectly (for example, by way of licence to a third party) with eDiets or a member of its Group by carrying out, within the Territory, an online business similar to the Business, or by otherwise using or licensing any
Technology competitive to eDiets’ Technology, (b) use or give their consent to any third party to use the name “eDiets” or any colourable imitation thereof. These covenants shall exist for a period of one year after termination or
expiration of this agreement. This clause 15.3 shall not apply if termination results from a material breach of this agreement or the Service Level Agreement by eDiets or a member of its Group. 

  

	15.4	Tesco agrees and covenants that neither it, nor a member of its Group will utilize the Technology for the Business in any media commercially directed primarily at any customer or
person outside the Territory. 

  

 30 

	15.5	Each party agrees and covenants that, other than as provided in this agreement, neither it nor a member of its Group will induce or seek to induce any employee to leave the
employment of the other party or any member of the other party’s Group whether or not such person would be in breach of contract (save that employee who applied in response to a published job advertisement (either internally or externally)
shall not be considered to be induced). This covenant shall exist for a period of one year after termination or expiration of this agreement. 

  

	15.6	Each party agrees and covenants that neither it nor a member of its Group will at any time do or say anything untrue which could reasonably be anticipated to be harmful to the
reputation of the other party or any member of its Group, or its business or which leads any person, firm or company to cease to do business with the other party or any member of its Group. 

  

	16	General Provisions 

  

	16.1	Force Majeure. Neither party shall be responsible or liable for any failure or delay or consequence thereof in the performance of any of its obligations in this agreement
owing to fire, strike, lock-out, industrial dispute (unless such dispute is caused by the party seeking to rely on this clause), delay in transport, shortage of fuel, inability to obtain materials, embargo, act, refusal of licence, demand or
requirement of any Government or any Government department or agency or of any local authority or of a consequence of war or of hostilities or armed conflict (whether war be declared or not) or to any other cause whatsoever beyond the party’s
reasonable control or the after effects of any of the foregoing and whether same take place or have effect in Ireland or elsewhere. If any such delay occurs, then (unless the cause thereof shall frustrate or render impossible or illegal the
performance of this agreement or shall otherwise discharge the same) the period for the party to perform its obligations hereunder shall be extended by such period (not limited to the length of the delay) as the party may reasonably require to
complete such performance. 

  

	16.2	 Notices. Notices and other communications to the parties to this agreement required or permitted hereunder shall be deemed duly given upon being transmitted
by facsimile to the correct facsimile number of any party or one day after being left at the address of the party to which it is given or seven days after it has been posted by prepaid registered post to the party to which it is to be given at its
address hereinbefore set out or such other address as such party shall have previously communicated by notice to 

  

 31 

	 	 
the party giving such first mentioned notice or other communication. Any notices to Tesco must be served by registered post to both the CEO of Tesco.com and
the Company Secretaries of Tesco.com and Tesco. Any notices to eDiets must also be served on eDiets.com. 

  

	16.3	Severability 

  
 If any provision of this agreement is agreed by the parties to be illegal, void or unenforceable under any law that is applicable hereto or if any court
or arbitrator of competent jurisdiction in a final decision so determines, this agreement shall continue in force save that such provision shall be deemed to be deleted herefrom with effect from the date of such agreement or as declared by a
decision of the said court or arbitrator or such earlier date as the parties may agree. 
  

	16.4	Governing Law 

  

	 	16.4.1 	All disputes between the parties arising out of or in any way relating to this agreement or any other disputes between the parties in any way connected with the subject matter of
this agreement shall be governed by the laws of England and Wales. 

  

	 	16.4.2 	The Courts of England and Wales shall have exclusive jurisdiction to hear all matters arising out of or in any way relating to this agreement. 

  

	16.5	Third Parties 

  

	 	16.5.1 	The parties do not intend any third party to have the right to enforce any provision of this agreement under the Contracts (Rights of Third Parties) Act 1999 or otherwise except any
member of Tesco’s Group, who will have the right to enforce this agreement to the extent to which it relates to the licence of the Technology to it. 

  

	 	16.5.2 	Notwithstanding that any term of this agreement may be or become enforceable by a person who is not a party to it, the terms of this agreement or any of them may be varied, amended
or modified or this agreement may be suspended, cancelled or terminated by agreement in writing between the parties or this agreement may be rescinded (in each case) without the consent of the third party. 

  

 32 

 Signed by the parties on the date of this agreement. 
  

 33 

 SCHEDULE 1 
  

TECHNOLOGY 
  

	1.1	INTERACTIVE FUNCTIONALITY 

  
 The interactive functionality of providing an interactive link in a store between consumers and the manufacturers and retailers that market the consumers for the purpose
of providing sales and marketing information and measuring the response of the consumers to the sales and marketing information, as such functionality applies to the eDiets Internet marketing programme. 
  

	1.2	TRADE MARKS 

  
 United States Trade Mark Applications 
  

			
		
	 Trade Mark:
	  	EDIETS
		
	 Registration No.:
	  	2,855,444
		
	 Class(es):
	  	Class 42
		
	 Goods/Services:
	  	Health and Nutrition Services provided by way of a global computer network, namely, providing access to licensed dieticians, psychologists and nutritional experts for the purposes of
developing and maintaining a healthy lifestyle with weekly medical news, recipes, grocery shopping, fitness tips, professional advice, interactive tools, online meetings, support boards and chats In international class 42.
		
	 Registration Date:
	  	June 22, 2004
	
	*****************************
		
	 Trade Mark:
	  	EDIETS.COM
		
	 Registration No.:
	  	2,855,443

  

 34 

			
		
	 Class(es):
	  	Class 42
		
	 Good/Services:
	  	Health and Nutrition Services provided by way of a global computer network, namely, providing access to licensed dieticians. psychologists and nutritional experts for the purposes of
developing and maintaining a healthy lifestyle with weekly medical news. recipes, grocery shopping, fitness tips, professional advice, interactive tools, online meetings, support boards and chats in international class 42.
		
	 Registration Date:
	  	June 22, 2004.
	
	*****************************
		
	 Trade Mark:
	  	EDIETS
		
	 Application No.:
	  	1499037
		
	 Class(es):
	  	Class 42
		
	 Goods/Services:
	  	Customised diet and nutrition programmes developed based on individual user profiles.
		
	 Application Date:
	  	February 9, 2000
		
	 Priority:
	  	Claiming priority from US Application No. 75/771,786 filed on August 9th, 1999.
	
	*****************************
		
	 Trade Mark:
	  	DIETSMART
		
	 Registration No.:
	  	2,493,454
		
	 Class(es):
	  	Class 42
		
	 Good/Services:
	  	Providing information in the fields of fitness, food, dieting and exercise by means of a website on a global computer network in international class 42.

  

 35 

			
		
	 Registration Date:
	  	September 25, 2001.
	
	*****************************
		
	 Trade Mark:
	  	DIETSMART
		
	 Application No.:
	  	SN 78/418,707
		
	 Class(es):
	  	Class 16
		
	 Good/Services:
	  	Magazines in the fields of health, nutrition and fitness, featuring menus, recipes, grocery shopping lists, fitness tips, and information about licensed dieticians, psychologists and
nutritional experts all for the purpose of developing and maintaining a healthy lifestyle in international class 16.
		
	 Filing Date:
	  	May 14, 2004.
	
	*****************************
		
	 Trade Mark:
	  	I DON’T DIET. I EDIET.
		
	 Application No.:
	  	SN 78/401,812
		
	 Class(es):
	  	Class 42
		
	 Good/Services:
	  	Providing health and nutritional information via the global computer information network, featuring weekly menus, recipes, grocery shopping lists, fitness tips, and information about licensed
dieticians, psychologists and nutritional experts all for the purpose of developing and maintaining a healthy lifestyle in international class 42.
		
	 Filing Date:
	  	April 14, 2004.
	
	*****************************
		
	 Trade Mark:
	  	I.Q. DIET
		
	 Application No.:
	  	SN 78/309,184

  

 36 

			
		
	 Class(es):
	  	Class 44
		
	 Good/Services:
	  	Weight reduction diet planning and supervision, namely, developing customized diet and nutrition programs for individuals in international class 44.
		
	 Filing Date:
	  	October 3, 2003.
	
	*****************************
		
	 Trade Mark:
	  	SOLUTIONS
		
	 Application No.:
	  	SN 78/430,707
		
	 Class(es):
	  	Class 16; Class 42
		
	 Good/Services:
	  	Printed guides, periodical publications, handouts, leaflets and brochures in the fields of health, nutrition and fitness in international class 16.
		
	 	  	Providing information via the global computer information network in the fields of health, nutrition and fitness in international class 42.
		
	 Filing Date:
	  	June 7, 2004.
		
	CANADA	  	 
		
	 Trade Mark:
	  	DIETSMART         Application No.: 1,107,984
		
	 Filing Date:
	  	June 27, 2001
		
	 Status:
	  	Application has been allowed, and upon payment of the registration fee, a registration will issue.
	
	******************************
		
	CTM	  	 
		
	 Trade Mark:
	  	I.Q. DIET

  

 37 

			
		
	 Application No.:
	  	00374424
		
	 Filing Date:
	  	April 1, 2004-07-01
		
	 Status:
	  	Application is pending, as we have not yet received a preliminary response from the EU Office.

  
 ADDITIONAL TRADEMARKS:

  
 ONLINE ANYTIME MEETINGSSM 
  
 YOUR DIET, YOUR WAYSM 
  
 FOR EVERYONE WATCHING THEIR WEIGHTSM 
  

	1.3	COPYRIGHT 

  
 Software 
  
 eDiets has developed interactive proprietary software and systems. eDiets interactive personalised diet programmes are based on proprietary software
developed by eDiets. 
  
 EDiets.com Web Site 
  
 The main eDiets.com Web Site is comprised of proprietary software for the
delivery of personalised diet content for consumers. Specific areas of functionality include personal profile questionnaire and results, member registration, myEdiets personalised diet site, support groups, meal plans, shopping lists, and personal
guidance. 
  
 Content management tools 
  
 Various content management tools are used to create and manage the eDiets
News newsletters, community support groups, online polls, meeting schedules and banners. 
  
 Billing system 
  
 The billing
system is a proprietary software application to process the credit card transactions for our membership base. Multiple installment payment plans are supported. 
  

 38 

 Ad tracking and performance measurement system 
  
 Software exists to track and measure the performance of advertising from
multiple online sources. The system calculates real-time click-thru and sales results for each individual online marketing program. 
  
 Customer Account Maintenance System 
  
 A proprietary web-based application is used by customer service representatives maintain all aspects of the eDiets.com customer database. 
  
 Sales Reporting 
  
 An extensive web-based sales reporting system is used to monitor the
membership sales and other critical business metrics in real-time. 
  
 eDiets.com, Inc. 
  
 Registered Copyrights (as of
June 28, 2004) 
  

			
	 Registration Number:
	  	TX-5-880-669
		
	 Title:
	  	eDiets.
		
	 Description:
	  	CD-ROM.
		
	 Note:
	  	Text.
		
	 Claimant:
	  	Author and claimant: eDiets.com, Inc.
		
	 Created:
	  	2003
		
	 Published:
	  	15Jan03
		
	 Registered:
	  	27Oct03
		
	 Title on © Application:
	  	www.ediets.com, version 6.5.
		
	 Special Codes:
	  	1/B/L
		
	 Registration Number:
	  	TX-5-872-690
		
	 Title:
	  	eFitness.
		
	 Description:
	  	CD-ROM.
		
	 Claimant:
	  	Author and claimant: eDiets.com, Inc.
		
	 Created:
	  	2002
		
	 Published:
	  	24Sep02

  

 39 

			
	 Registered:
	  	27Oct03
		
	 Title on © Application:
	  	www.efitness.com.
		
	 Special Codes:
	  	1/B
		
	 Registration Number:
	  	TX-5-782-718
		
	 Title:
	  	EDiets.com pocket encyclopaedia of dieting & weight loss / authors, Susan Burke, John McGran, and the eDiets professional staff.
		
	 Description:
	  	200 p.
		
	 Note:
	  	Spine ti.: Pocket encyclopaedia of dieting & weight loss.
		
	 Claimant:
	  	Author and claimant: EDiets.com, Inc.
		
	 Created:
	  	2003
		
	 Published:
	  	1Apr03
		
	 Registered:
	  	8May03
		
	 Special Codes:
	  	1/B/D

  

	1.4	CONTENT 

  
 All application code, text, information, images, audio and video material that is incorporated into the following websites: 
  
 (a) http://www.edietsuk.com at the Effective Date; and 
  
 (b) http://www.ediets.com at the Effective Date and throughout the Term. 
  

	1.5	THIRD PARTY LICENCES 

  

			
	 Name

	  	 Term

		
	 AllRecipes
	  	04/24/02 – 05/29/05
		
	 Atkins Nutritionals
	  	04/17/03 – 04/17/05
		
	 Bob Greene Enterprises (GWTP)
	  	05/03/04 – 05/02/07
		
	 Bristol-Myers Squibb (BMS)
	  	4/22/04 – 4/21/07
		
	 High Point Media LLC, (Bill Phillips)
	  	TBD – 18 months

  

 40 

			
	 	  	Expected launch 6/30/04
		
	 North American Pharmacal, Inc. (NAP)
	  	Launch – 3 years
		
	 NV Perricone MD, Ltd
	  	01/14/04 – 01/14/07
		
	 Shape-Up (CSA Nutraceuticals LP)
	  	04/17/03 – TBD
		
	 SlimFast Foods Company (Conopco)
	  	03/19/04 – 03/19/05
		
	 Zone Perfect Nutrition Company
	  	04/17/03 – 04/17/04

  

	1.6	DOMAIN NAMES 

  
 edietsuk.co.uk; 
  
 edietsuk.com; 
  
 ediets.ie; and 
  
 (in the event it is transferred to eDiets or a member of its Group), ediets.co.uk 
  

 41 

 SCHEDULE 2 
  

MARKETING ACTIVITY 
  
 Marketing shall be all activity which directly and prominently promotes the Business and prominently identifying the internet portal address for accessing the Business,
such activity shall include at least one of: 
  

	a)	Online advertising (banner, e-mails, pop up ads where permissible); 

  

	b)	Tesco in-store promotions; 

  

	c)	Tesco in-store billboards; 

  

	d)	Tesco club cards; 

  

	e)	Television advertising; 

  

	f)	Radio advertising; and 

  

	g)	Other external advertising 

  

 42 

 SCHEDULE 3 
  

EDIETS MARKS 
  
 

 
  

 43 

			
	 Signed by
 for and on behalf of
 eDIETS
EUROPE LIMITED
	  	 )
 )
 )

		
	 SIGNED by
 for and on behalf of
 TESCO
IRELAND LIMITED
	  	 )
 )
 )

		
	 SIGNED by
 for and on behalf of
 eDIETS.COM,
INC.
 as a Guarantor
	  	 )
 )
 )

  

 44 

 DATED 15 JULY 2004 
  
 eDIETS EUROPE LIMITED 
  
 TESCO IRELAND LIMITED 
  
 eDIETS.COM, INC. 
  
 TECHNOLOGY LICENCE AGREEMENT 
  

 CONTENTS 
  

					
	1	    	Definitions and interpretation	  	1
	2	    	Conditions Precedent	  	8
	3	    	Agreement	  	9
	4	    	Atkins sub-licence	  	9
	5	    	Obligations and Rights of Tesco	  	12
	6	    	Obligations of eDiets	  	14
	7	    	Royalties	  	15
	8	    	Improvements	  	17
	9	    	Warranties and Undertakings	  	20
	10	    	Intellectual Property Rights	  	22
	11	    	Limitation of Liability	  	23
	12	    	Guarantee and ability of eDiets to licence the Technology	  	24
	13	    	Confidential Treatment of information	  	25
	14	    	Term and Termination	  	27
	15	    	Non-Competition	  	30
	16	    	General Provisions	  	31
	SCHEDULE 1 TECHNOLOGY	  	34
	SCHEDULE 2 MARKETING ACTIVITY	  	42
	SCHEDULE 3 EDIETS MARKS	  	43Service Level Agreement

 Exhibit 10.3 
  
 THIS AGREEMENT DATED 15 JULY 2004 
  
 PARTIES 
  

					
	1	  	Tesco	  	TESCO IRELAND LIMITED a company registered in Ireland (no. 19542) whose registered office is at Gresham House, Marine Road, Dun Laoghaire, Co. Dublin, Ireland; and
			
	2	  	eDiets	  	eDIETS.COM, INC., a company registered in Delaware whose principal place of business is at 3801 W. Hillboro Blvd, Deerfield Beach, Florida, USA.

  
 RECITALS 
  

	A.	Tesco and eDiets (or members of their respective Group) have entered into agreements, including a Business Transfer Agreement and a Technology Licence Agreement (each as hereinafter
defined), to enable Tesco to enter into the business of utilising eDiets’ content and technology. 

  

	B.	Tesco is desirous of having eDiets provide services for providing and maintaining a website for performing the activities in accordance with the Business (as hereinafter defined).

  

	C.	eDiets is desirous of performing services for supporting such website. 

  
 OPERATIVE PROVISIONS 
  

	1	Definitions and interpretation 

  

	1.1	In this agreement and the recitals, where the context so admits, the following definitions apply: 

  

			
	AlertSite	  	a third party software tool used to measure availability of websites and/or servers (or such replacement measurement tool as agreed between the parties from time to time);
		
	Available	  	the availability of the Tesco Production Infrastructure (and “Availability” shall have a corresponding meaning and “non-Availability” shall be construed
accordingly);

  

 1 

			
	Business	  	the business of delivering personalized weight loss and diet related fitness services in any online (including, but not limited to, Internet, 3G, WAP, SMS, fax and phone) or offline medium
purposely directed to customers residing in the Territory and for the avoidance of doubt shall include the fitness service as incorporated in the eDiets Service, but shall not include any standalone online personalised fitness service or the
services as currently offered at http://www.eFitness.ie;
		
	Business Transfer Agreement	  	the agreement between eDiets Europe Limited (a subsidiary of eDiets), Tesco, eDiets and Unislim Limited of even date transferring certain assets and employees of eDiets Europe Limited to
Tesco;
		
	Change Control Procedure	  	the procedure for agreeing to major changes to the Services provided by eDiets set out in schedule 2;
		
	Control	  	the power to direct the affairs of a company, whether by ownership of shares, management influence or otherwise;
		
	Customers	  	users of the Tesco Diet Service;
		
	eDiets Service	  	the personalised weight loss and diet related fitness business carried out by eDiets;
		
	Effective Date	  	the date of Completion of the Business Transfer Agreement (as defined in that agreement);
		
	Group	  	in respect of a party, that party and any company which is a Subsidiary Company (as defined in the Technology Licence Agreement) or a Holding Company (as defined in the Technology Licence
Agreement) of that party or any company which is a Subsidiary Company of any Holding Company;

  

 2 

			
	Implementation Services Procedure	  	the procedure by which Improvements made to the eDiets Service are evaluated and implemented on the Tesco Production Infrastructure and Tesco Application System (as applicable) as set out in
schedule 4;
		
	Improvements	  	shall have the meaning set out in the Technology Licence Agreement;
		
	Intellectual Property Rights	  	all copyright and rights in the nature of copyright, database rights, patents, design rights, trade marks, applications and rights to apply for any of the above, moral rights, know-how,
inventions, confidential information and any other intellectual property rights, whether now known or in future subsisting in the United Kingdom, Ireland or any other part of the world;
		
	Maintenance Window	  	00:01 am to 03:00 am (Greenwich Mean Time) every Friday;
		
	Quarter	  	the four three month periods in the Year, the first such period beginning on the Effective Date and each subsequent such period beginning three months thereafter;
		
	Royalties	  	the Royalties payable by Tesco to eDiets Europe Limited under the Technology Licence Agreement;
		
	Security Policy	  	the Tesco security policy setting out Teco.com Limited’s third party IT security requirements set out in schedule 3;
		
	Service Credits	  	the compensation calculated in accordance with clause 15 payable by eDiets to Tesco for failure to meet the Service Levels;
		
	Service Levels	  	the minimum standards (to be no greater than eDiets then current standard as applied to the

  

 3 

			
	 	  	eDiets Service (unless such standard falls below the standards set out in schedule 1, in which case the higher standard in schedule 1 shall prevail)) to be achieved by eDiets in carrying out
its obligations under this agreement as set out in schedule 1;
		
	Services	  	all services provided by eDiets under this agreement (including the service relating directly to the management of the hardware (including network) and software components that comprise the
Tesco Production Infrastructure and the services listed under the heading “Associated services” in schedule 1) and such other services as are agreed to be provided by eDiets to the Tesco Group under this agreement from time to
time;
		
	Technology	  	shall have the meaning set out in the Technology Licence Agreement;
		
	Technology Licence Agreement	  	the agreement between eDiets Europe Limited, eDiets and Tesco of even date setting out arrangements for the licensing to Tesco of certain technology and content relating to the
Business;
		
	Term	  	shall have the meaning set out in clause 20.3;
		
	Tesco Application System	  	all application code residing on the Tesco Production Infrastructure used to provide the Tesco Diet Service (including but not limited to Cold Fusion application code and custom tags, any
code indirectly called as a result, SQL statements, HTML code, Javascript and Flash script) but excluding the software components of the Tesco Production Infrastructure;
		
	Tesco Data	  	any data whether in electronic or paper form and whether provided by the Tesco Group or produced by eDiets as a result of the processing of data provided by Tesco;

  

 4 

			
	Tesco Diet Service	  	all services provided by Tesco in connection with the Business (including the Tesco Diet Website);
		
	Tesco Diet Team	  	the technical, nutrition, content, marketing and customer service team of the Tesco Group that is operating the Tesco Diet Service;
		
	Tesco Diet Website(s)	  	the website(s) made available to public Internet users via the Tesco Production Infrastructure using the Tesco Application System;
		
	Tesco Production Infrastructure	  	the hardware (including network) and software components managed and maintained by eDiets listed under the headings “Hardware and software components” and “Network
components” in schedule 1;
		
	Tesco Systems	  	any and all computer and telecommunications infrastructure (including hardware and software) owned, licensed or leased by or on behalf of Tesco excluding the Tesco Production Infrastructure
and Tesco Application System;
		
	Third Party Services	  	as defined in clause 5.2;
		
	Year	  	a period of 12 months from the Effective Date or an anniversary thereof.

  

	1.2	Save as otherwise provided herein, any references in this agreement to clauses or paragraphs are references to clauses and paragraphs of this agreement unless the context otherwise
admits or so requires. 

  

	1.3	Words such as hereunder, hereof and herein and other words commencing with here shall, unless the context clearly indicates to the contrary, refer to the whole of this agreement and
not to any particular clause hereof. 

  

	1.4	References to the singular shall include the plural and vice versa and reference to any gender shall include other genders. 

  

	1.5	The headings to the clauses in this agreement are for reference only and shall not affect the interpretation of this agreement. 

  

 5 

	1.6	This agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when executed and delivered shall constitute
an original, all such counterparts together constituting as one and the same instrument. 

  

	1.7	Amendments to or modifications of this agreement may be made only by mutual agreement of all parties in writing and shall be subject to whatever approvals or appropriate authorities
as may be required by law. 

  

	1.8	A waiver by either party of any breach by any other party of any other terms, provisions or conditions of this agreement or the acquiescence of such party and any act (whether by
commission or omission) which but for such acquiescence would be a breach as aforesaid shall not constitute a general waiver of such term, provision or condition or of any subsequent act contrary thereto. 

  

	1.9	This agreement shall not authorize any party, the legal representative, partner or agent of the other parties or any of them nor (save as expressly provided in this agreement) shall
any party, or any successor of any party, have the right or authority to assume, create or incur any liability or obligation of any kind express or implied against or in the name of or on behalf of any other party. 

  

	1.10	Except as otherwise provided, this agreement, or the benefit hereof, may not be assigned or sublicensed by either party in whole or in part without the prior and mutual written
consent of the other party (such consent not to be unreasonably withheld, delayed or conditioned) save that: 

  

	 	1.10.1	 either party may assign this agreement or the benefit of it, to any member of its Group; 

  

	 	1.10.2	 eDiets may assign this agreement outside of its Group as part of a sale of substantially all of the assets of eDiets, or its Group, or a change of Control or merger of eDiets,
or its Group, provided always that such assignment is not permitted to Wal-Mart Stores, Inc. or a member of its Group. 

  

	1.11	This agreement and all rights and obligations hereunder shall for all purposes be treated and construed as being separate and apart from any other agreement or agreements or any
rights or obligations thereunder save only insofar as the express provision requires to the contrary. 

  

 6 

	1.12	The parties hereto enter this agreement as principals for and on their own behalf. 

  

	1.13	This agreement represents the entire of the understanding of the parties concerning the subject matter hereof and overrides and supersedes all prior promises, representations
(unless fraudulent), undertakings, understandings, arrangements, agreements, side letters or heads of agreement concerning the same which are hereby revoked by mutual consent of the parties. 

  

	1.14	This agreement shall become effective only upon the same being executed by or on behalf of all parties hereto. 

  

	1.15	References to “liability”, unless the context otherwise requires includes claims, demands, proceedings, damages, losses, costs and expenses. 

  

	1.16	Any reference to any statutory enactment includes all amendments, re-enactments and secondary legislation. 

  

	1.17	If the British Pound (£) shall be discontinued then the values stated herein shall be converted to Euros (€) or any such official currency of the United Kingdom using the
conversion rate as posted in the London Financial Times (or similar periodical if discontinued) on the date just prior to discontinuation. 

  

	1.18	This agreement is wholly conditional upon and no rights or obligations shall arise for either party under this agreement until such time as the Business Transfer Agreement has been
executed and Completion (as defined in that agreement) has taken place. 

  

	2	Performance of the Services by eDiets 

  

	2.1	eDiets shall provide the Services for the Term in accordance with the terms and conditions of this agreement from the Effective Date, in particular in accordance with the Service
Levels. Tesco acknowledges that, in order to provide certain parts of the Services to Tesco, eDiets must put in place certain procedures or elements not in place within the eDiets Service prior to the Effective Date (these procedures and elements
are set out in schedule 5). eDiets shall be excused from meeting the Service Levels to the extent that meeting the Service Levels requires those procedures or elements of the Service listed in Schedule 5 to be in place and provided that all such
procedures or elements of the Service shall be put in place by eDiets within the time periods from the Effective Date set out in schedule 5. For the avoidance of doubt, the absence of these elements of the Service shall not excuse eDiets of its
obligations under this agreement (in particular, in relation to Availability under clause 3.1). 

  

 7 

	2.2	eDiets will perform its obligations under this agreement with reasonable skill, care and diligence and in any event it shall use the skill, care and diligence that it applies to the
eDiets Service and not any lower standard. 

  

	2.3	eDiets shall be responsible for obtaining and maintaining all licences, consents, approvals, permits and authorisations required to be obtained under any applicable law in
connection with the performance of its obligations under this agreement at its own cost and expense. 

  

	3	Availability of the Tesco Diet Service 

  

	3.1	eDiets shall ensure that the Tesco Production Infrastructure is Available for 99.7% of the time in each calendar month during the Term (excluding Maintenance Windows). eDiets shall
use AlertSite to measure Availability as follows: AlertSite will ping the Tesco Production Infrastructure and if a return ping is received by AlertSite indicating the Tesco Production Infrastructure is Available more than 99.7% of the time, the
Available uptime goal under this clause 3.1 will have been achieved by eDiets. eDiets shall make best efforts to ensure that the Tesco Production Infrastructure is accessible by the Tesco Diet Team for an equivalent period of time to the
Availability requirements under this clause 3.1. 

  

	3.2	It is expected that eDiets will need much less than the scheduled Maintenance Window. Should an emergency dictate a need for any period of non-Availability to the Tesco Production
Infrastructure outside the Maintenance Window, or for a period of non-Availability exceeding 3 hours, eDiets will schedule each instance of such non-Availability at least 12 hours in advance of its commencement by agreement with a designated Tesco
representative. Any period of non-Availability outside of the Maintenance Window shall be treated by eDiets as a ‘critical’ Issue (as defined in schedule 1). During any period of non-Availability of the Tesco Diet Website(s) eDiets shall
re-direct all Customers to a holding page provided by Tesco. 

  

	3.4	To the extent that the following have occurred to the Tesco Production Infrastructure, they shall not be included in any calculation of non-Availability for the purposes of clause
3.1: 

  

	 	3.4.1 	loss of Availability due to external issues outside of eDiets’ reasonable control (for example, failure of the hosting provider or catastrophic Internet shutdown arising from
country code (or similar) top level domain failure); 

  

	 	3.4.2 	if ordered by emergency services or any governmental authority; 

  

	 	3.4.3 	patching a change to the Tesco Production Infrastructure by or as instructed by Tesco; 

  

 8 

	 	3.4.4 	a fault in an application on the Tesco Application System if such fault can be reasonably traced to the Tesco System; 

  

	 	3.4.5 	an error caused by the administration of the Tesco Production Infrastructure, or the Tesco Application System, where that error has been caused by a member of the Tesco Diet Team;

  

	 	3.4.6 	a fault in Tesco’s connection to the Internet; 

  

	 	3.4.7 	a failure as a result of excessive page view demand where eDiets has reasonably discharged its responsibilities under schedule 1; 

  

	 	3.4.8 	as a direct result of a withdrawal by Tesco of a change proposal as set out in paragraph 5.2 of schedule 2. 

  

	4	Description of Support Services and Service Levels 

  

	4.1	eDiets shall support the Tesco Production Infrastructure (by way of server and database pinging, 24/7 tech support, server capacity review, security patching and hardware and
software installation as more particularly described in the schedules) in accordance with the Service Levels. 

  

	4.2	eDiets is not responsible for support or bug fixing of the Tesco Application System. 

  

	4.3	eDiets is responsible for the installation but not the configuration or administration of the Tesco Production Infrastructure upon which the Tesco Application Systems run.

  

	4.4	eDiets shall not maintain and monitor the Tesco Application System. Furthermore, eDiets is not responsible for tuning the Tesco Application System (e.g. databases, application
servers). 

  

	4.5	eDiets and Tesco shall estimate capacity for the Tesco Application System based on page view demand in accordance with schedule 1. Tesco shall implement any additional capacity to
the Tesco Production Infrastructure in accordance with schedule 1. 

  

	4.6	If the Services cannot be provided in the manner contemplated herein, eDiets will notify Tesco and the procedures set out in schedule 1 shall apply. Contact information is set out
in schedule 1 and shall be updated by the relevant party any time personnel or contact information changes. 

  

	4.7	eDiets shall at all times have such resource and expertise available – whether on site or on call – to ensure the uninterrupted Availability of the Tesco Production
Infrastructure under clause 3.1. 

  

 9 

	5	Tesco Rights and Obligations 

  

	5.1	eDiets shall make the Tesco Production Infrastructure accessible to Tesco via a secure manner (as agreed between the parties from time to time) for the purpose of updating the Tesco
Application System (including the Tesco Diet Website(s)) with the Availability set out in clause 3.1. 

  

	5.2	Tesco shall have the right to contract with any third party to: 

  

	 	5.2.1 	perform any service outside of the scope of, or in addition to, the Services, including systems operations and related services to augment or supplement the Services or to interface
with Tesco Systems; however, any modification of any eDiets software shall be owned by eDiets and eDiets retains copyright in such modifications, and if ownership cannot be obtained, then Tesco shall obtain an irrevocable license to use such
modification from eDiets (unless such modification is an Improvement under the Technology Licence Agreement, in which case the terms and conditions relating to ownership of Improvements shall apply); and/or 

  

	 	5.2.2 	to provide IT and/or business process outsourcing or administration services to Tesco in connection with the subject matter of this agreement; 

  
 (collectively, “Third Party Services”). 
  

	5.3	If Tesco contracts with any third party to perform Third Party Services, eDiets shall cooperate with Tesco and any such third party to the extent reasonably required by Tesco
including by providing (subject to equivalent confidentiality as set out in clause 19) all reasonable assistance to Tesco and such third party. In relation to clause 5.2.2, eDiets agrees that the outsourcing service provider may exercise any of
Tesco’s rights, or perform any of Tesco’s obligations, under this agreement as if the outsourcing provider were Tesco. Tesco shall pay eDiets’ reasonable and documented increased costs (at cost, and as pre-agreed with Tesco) for
complying with its obligations under this clause 5.3. 

  

	5.4	All payments made by Tesco under this agreement shall be payable by Tesco under its standard payment procedures (i.e., within 30 days from the end of the month in which Tesco
receives the invoice). In the event that Tesco fails to make a payment for services under this agreement, and that payment is not the subject of a bona fide dispute between the parties, eDiets may charge interest on the amount unpaid, at the rate of
two percent per annum above Barclays Bank plc base rate from time to time until the payment in full is made. 

  

 10 

	5.5	eDiets acknowledges and agrees that Tesco may source hardware, software and services relating to the Tesco Production Infrastructure from any supplier of its choice and at its sole
discretion, providedthat the hardware, software and services do not conflict with eDiets’ then-current hardware, software or services used for the eDiets Service. 

  

	6	Insurance 

  

	6.1	Without prejudice to the warranties and undertakings given by eDiets in this agreement, eDiets shall maintain in force (at its own expense) for the Term and for six years thereafter
general liability insurance as related to eDiets responsibilities to maintain the web hosting (sometimes referred to cyber liability insurance) to cover loss of $1m. 

  

	6.2	The insurance policies referred to in clause 6.1 shall be with a reputable insurer and shall not include unreasonable excesses which are unusual for this type of insurance.

  

	6.3	Within 14 calendar days of a request by Tesco, eDiets shall provide evidence of the insurances which it is obliged to maintain under clause 6.1. 

  

	6.4	eDiets shall be responsible for insuring any equipment which it brings onto any Tesco premises. Tesco shall have no responsibility for any loss of or damage to this equipment except
for loss or damage caused by damage to Tesco premises or the negligent acts of Tesco. 

  

	7	Hosting of the eDiets Europe Limited websites on the Tesco Production Infrastructure 

  

	7.1	Subject to Security Policy, for the period beginning on the Effective Date and ending six months thereafter, Tesco grants eDiets (solely for the benefit of its Subsidiary Company
eDiets Europe Limited) the following: 

  

	 	7.1.1 	the ability to host the eDiets Europe Limited websites on the Tesco Production Infrastructure; and 

  

	 	7.1.2 	the right to access the Tesco Production Infrastructure for the purposes of administering and maintaining the eDiets Europe Limited websites. 

  

	8	Reports; Data 

  

	8.1	 eDiets, at its sole cost, in fulfilment of all monitoring requirements, shall use AlertSite to measure and report on eDiet’s performance under this agreement.
eDiets shall provide 

  

 11 

	 	 
Tesco with a log in facility to AlertSite via a dedicated web page. Reports will be available to Tesco daily by Tesco logging into the AlertSite web page.
Tesco shall retain all necessary AlertSite data (“AlertSite Data”) to produce monthly rollups reports to measure eDiets compliance against the Availability metrics stated in clause 3.1. The historical availability of the AlertSite Data is
subject to the operation procedures of AlertSite and Tesco will have the responsibility for retrieving and archiving such data should it require functionality beyond that provided by AlertSite. 

  

	8.2	All data and information (including Tesco Data) submitted to eDiets by the Tesco Group in connection with the Services and all data developed, generated and processed by eDiets on
behalf of the Tesco Group in performance of its obligations under this agreement or the Technology Licence Agreement is and shall remain the exclusive property of Tesco (or its licensors, as the case may be). Tesco Data shall not be used by eDiets
other than in connection with providing the Services and may not be sold, leased or otherwise provided to third parties or in any way commercially exploited by or on behalf of eDiets, its employees or agents or by any third party save with
Tesco’s prior express written agreement. 

  

	9	Change Control Procedure 

  

	9.1	eDiets and Tesco will use the Change Control Procedure to agree any proposed major changes to the Services at least 10 working days before their application (including changes to
the procedures referred to in clause 2.1). 

  

	9.2	eDiets will conduct tests of the security and integrity of the changes to the Tesco Production Infrastructure under clause 2.1. The nature and benchmarks for such tests shall be
mutually agreed as part of the Change Control Procedure before each change. 

  

	10	Co-operation; Benchmarking; Service Improvements 

  

	10.1	 Where eDiets becomes aware of system security vulnerabilities, e.g. Microsoft Critical Alerts, in relation to the Tesco Production Infrastructure, it shall advise
Tesco of available updates/patches at the earliest opportunity (and in any event within 24 hours of the alert) and seek Tesco’s approval to apply the updates/patches. If Tesco is unavailable to approve the update/patch following eDiets’
best endeavours to contact Tesco using the contact information provided from time to time and if, in eDiets’ opinion, the Tesco Diet Service is exposed to an attack that threatens to materially adversely affect the Tesco Production
Infrastructure or the Tesco Diet Service, eDiets may apply an update/patch or disconnect the Tesco Diet Service from the Internet (and any disconnection under this clause 10.1 shall be deemed a critical level support issue, “critical”
having the meaning set out in schedule 

  

 12 

	 	 
1). Provided eDiets uses its best endeavours to contact Tesco, eDiets will have no liability to Tesco for non-Availability as a result of taking such action
without the consent of Tesco and any non-Availability as a direct result of such action will not be used to calculate the Availability of the service under clause 3.1. 

  

	10.2	eDiets shall not be permitted to make any changes or modifications to the Tesco Production Infrastructure that would adversely alter the functionality, degrade performance or
materially affect the Tesco Diet Service (including the Tesco Diet Website(s)) or the day to day operation of Tesco’s business (including the Business). In addition, eDiets shall be responsible, at no charge to Tesco, for any alteration or
substitution of Tesco Application System or Tesco Production Infrastructure necessitated by unauthorised alterations. 

  

	10.3	Access by eDiets to the Tesco System is only permitted to the extent necessary for the performance of the Services and is subject to eDiets complying with Tesco’s physical and
electronic security procedures (including the Security Policy) and other relevant Tesco practices and guidelines relating to the use of computer systems as notified to eDiets by Tesco from time to time. 

  

	10.4	As part of the Services, eDiets shall identify ways to improve delivery of the Services and the Service Levels, including applying proven techniques and tools from which Tesco would
benefit either operationally or financially. eDiets will inform Tesco (via the Steering Committee under the Technology Licence Agreement) (either in writing or by way of meeting followed by a written attendance note) of eDiets’ planning
activities as they relate to the eDiets Service. If Tesco requests, any such improvements (which shall be deemed to be Improvements) shall be implemented in accordance with schedule 4. (For the avoidance of doubt, eDiets is under no obligation to
implement such Improvements as part of the eDiets Service for itself.) The parties agree that Tesco may benchmark the provision of the Services on an annual basis provided such benchmarking does not mandate eDiets to provide a higher level of
service than the then current eDiets Service and the performance of eDiets’ obligations under this agreement. 

  

	11	Warranties and Undertakings 

  

	11.1	eDiets warrants and undertakes to Tesco that: 

  

	 	11.1.1	 it has the necessary right and authority to enter into this agreement and its entering into this agreement is not a breach of any agreements with third parties;

  

	 	11.1.2	  the provision of the Services by eDiets does not (and shall not) infringe any 

  

 13 

	 	 
third party Intellectual Property Rights or breach any applicable laws; 

  

	 	11.1.3	 the Services received by Tesco under this agreement are the only services required by Tesco to operate the Technology as operated by the eDiets Group on the date of this
agreement (and to continue to operate the Technology as operated by the eDiets Group throughout the Term); 

  

	 	11.1.4	 the Services shall be regularly updated and improved (by way of Improvements, benchmarking (as contemplated by clause 10, or otherwise) to ensure that the Services provided to
Tesco under this agreement are the same or better than services provided to eDiets (either by itself or third parties) in relation to the Technology; 

  

	 	11.1.5	 the Improvement Implementation Services shall be delivered using the Improvement Implementation Services Procedure outlined in schedule 4; 

  

	 	11.1.6	 the Services shall only be provided using appropriately qualified and skilled personnel; 

  

	 	11.1.7	 in providing the Services, eDiets will not interfere with the business of the Tesco Group; 

  

	 	11.1.8	 the Services shall be (and at all times during the Term remain) free from defects or errors in material or workmanship and eDiets shall repair or replace any such defects or
errors in accordance with the Service Levels at no cost to Tesco. 

  

	11.2	Tesco warrants it has the necessary right and authority to enter into agreement and its entering into this agreement is not a breach of any agreements with third parties.

  

	12	Indemnity 

  

	12.1	eDiets shall indemnify Tesco against all reasonable costs and expenses (including legal costs and disbursements) which the Tesco Group incurs as a result of any claim that the
Services infringe any Intellectual Property Rights of a third party or any applicable laws. 

  

	12.2	Tesco shall notify eDiets promptly in writing of any claim under clause 12.1 of which it is aware. 

  

	12.3	eDiets shall not use Tesco’s name in any action or claim without Tesco’s prior written consent. However, if Tesco must be named as a party to provide standing for any
action, it agrees to be named as a party. 

  

 14 

	12.4	If the Services (or any part of them), are held to constitute an infringement, eDiets may at its option and expense: 

  

	 	12.4.1	 procure for the Tesco Group the right to continue using the Services; 

  

	 	12.4.2	 modify the Services so that they are non-infringing without materially detracting from their overall performance; or 

  

	 	12.4.3	 replace the infringing Services with other non-infringing services having a capability materially equivalent to the infringing Services. 

  

	12.5	eDiets shall indemnify Tesco against all claims, demands, actions, costs and expenses (including legal costs and disbursements) which the Tesco Group incurs as a result of any loss
of use except any loss arising in accordance with clause 3.4 or agreed normal maintenance, during and/or following modification or replacement of the Services under clause 12.4. 

  

	13	Limitation of Liability 

  

	13.1	The aggregate liability of each party any one Year under or in connection with this agreement whether arising from contract, negligence or otherwise, shall be limited in the first
Year to £300,000 and in subsequent Years to 125% of the Royalty payments made under the Technology Licence Agreement in the previous Year for each Year thereafter. Any sums paid by a party under the Technology Licence Agreement by reference to
a breach by that party of the Technology Licence Agreement shall reduce the figures referred to in this clause 13.1 on a £ for £ basis. 

  

	13.2	Neither party shall be liable for any indirect or consequential loss. The following losses shall not be treated as indirect or consequential losses under this clause 13.2:

  

	 	13.2.1	 Tesco’s reasonable and documented costs of internal staff (including associated expenses reasonably incurred by such staff) necessitated as a direct result of
eDiets’ negligence or default (including, but not limited to, costs of staff providing or re-providing that which should have been provided under this agreement by eDiets); 

  

	 	13.2.2	 the costs of taking emergency measures, including changing over to other hosting suppliers. 

  

	13.3	The exclusions and limitations of liability set out in clause 13 do not apply to: 

  

	 	13.3.1	 liability arising from death or injury to persons caused by negligence; 

  

 15 

	 	13.3.2	 eDiet’s liability under clause 12; 

  

	 	13.3.3	 either party’s liability arising as a result of fraud; 

  

	 	13.3.4	 any liability which cannot by law be limited or excluded. 

  

	14	Exclusions 

  

	14.1	The parties agree that eDiets will not be liable to Tesco for any failure to provide the Services where such failure arises from the following: 

  

	 	14.1.1	 failure of Tesco or its agent to install virus-checking software on Tesco’s equipment; 

  

	 	14.1.2	 the failure of Tesco to keep virus checking software up to date; 

  

	 	14.1.3	 Tesco’s material failure to provide eDiets with access to Tesco’s technical staff; 

  

	 	14.1.4	 any willful action on a production or test system taken by Tesco staff that causes a failure. 

  

	15	Service Credits 

  
 In the event of the non-Availability of the Tesco Production Infrastructure for reasons other than (a) Force Majeure, (b) reasons excluded under this
agreement for scheduled and agreed periods of non-Availability or (c) by the default or action of Tesco against the express instructions of eDiets, eDiets shall pay compensation (or procure the payment of compensation from another member of its
Group) to Tesco of an amount equal to one percent (1%) of any Royalties payable by Tesco to eDiets Europe Limited during the month for each 0.1% (or part thereof) of any Quarter of non-Availability during which the Tesco Production Infrastructure
suffers non-Availability. 
  

	16	Tesco Responsibilities 

  

	16.1	Tesco shall not post, transmit, retransmit or store material on or through the Tesco Production Infrastructure that: (i) is in violation of any applicable local, state, federal law,
regulation, treaty or tariff; or (ii) violates the rights of any person, including rights protected by copyright, trade secret, patent or other intellectual property or similar laws or regulations, including, but not limited to, the installation or
distribution of pirated or other software products that are not appropriately licensed for use by Tesco. 

  

 16 

	16.2	Tesco shall: 

  

	 	16.2.1 	generate all new website application code and database changes in relation to the Tesco Application System including all development required to localise and integrate any
Improvements so that they fit with the application and database structure maintained by Tesco; 

  

	 	16.2.2 	use reasonable endeavours to ensure the correct functioning of all website application code (including but not limited to Cold Fusion application code and custom tags, any code
indirectly called as a result, SQL statements, HTML code, Javascript and Flash script) and the publishing of all web content; 

  

	 	16.2.3 	be responsible for the configuration and administration of the application software installed on the Tesco Production Infrastructure by Tesco and all generated log files.;

  

	 	15.2.4 	be responsible for monitoring the application software, application services (ColdFusion, IIS, SQL Server) to ensure the Tesco Diet Service is available; 

 

	 	15.2.5 	be responsible for understanding the capacity needs, including but not limited to bandwidth, database scaling, and web server scaling to run the Tesco Diet Service. Scaling the
components is subject to the terms in schedule 1; 

  

	 	15.2.6 	be responsible for the timely purchase and installation of all SSL certificates required by the web servers; 

  

	16.3	Tesco is responsible for testing, publishing and monitoring the Tesco Application System, but both parties shall agree in good faith a mutually acceptable method of:

  

	 	16.3.1 	testing such the Tesco Application System code and content so as to minimise any potentially negative effect on the Tesco Production Infrastructure and Tesco Systems; and

  

	 	16.3.2 	publishing the Tesco Application System code and content to the Tesco Application Infrastructure; 

  

	 	16.3.3 	monitoring the Tesco Application System using industry standard tools and methodologies including, but not limited to, ‘ping’ monitoring. 

  

	16.4	Any method agreed shall include responsibilities for monitoring the effect of SQL statements to ensure they do not overload the Tesco Production Infrastructure database server.

  

 17 

	16.5	In the event of a loss of the Tesco Diet Service to Customers, where Alert Site is not reporting an error and upon reasonable request by eDiets, Tesco shall verify that the code
base of the Tesco Application System is not the source of the problem before requesting further support of such loss of service from eDiets. 

  

	17	Data Protection 

  

	17.1	Each party agrees that it will comply with data protection laws and regulations that apply to the performance of its obligations under this agreement. eDiets agrees that it will
only process any personal data (including any which forms part of the Tesco Data) as a result of, or in connection with, the provision of the Services to Tesco strictly in accordance with Tesco’s instructions and/or all applicable data
protection laws and regulations and not otherwise. eDiets will take reasonable, appropriate technical and organisational measures against accidental or unauthorised destruction, loss, alteration or disclosure of any personal data and adequate
security programs and procedures to ensure that unauthorised persons will not have access to any equipment used to process personal data as part of the Services. 

  

	18	Backup; Step In Rights 

  

	18.1	eDiets shall, using standard industry practice, regularly back-up all data stored on behalf of Tesco as part of the provision of the Services in a manner similar to the standard of
recovery and maintenance of the currently existing eDiets Service. 

  

	18.2	Tesco may itself provide or may employ a third party to provide the Services or any part of the Services: 

  

	 	18.2.1 	if Force Majeure (as defined in clause 21.1) prevents eDiets from providing part or all of the Services in accordance with this agreement in any material respect for more than two
days (and eDiets shall treat any Force Majeure as a ‘critical’ support issue); or 

  

	 	18.2.2 	if eDiets fails to provide all or part of the Services in accordance with this agreement in any material respect and eDiets does not remedy the failure within the time period
applicable for resolution of ‘critical’ or ‘non-critical’ issues under schedule 1. 

  

	18.3	Tesco’s reasonable costs in providing or procuring the provision of the Services under clause 18.2 may, at Tesco’s option, be deducted from any sums due to eDiets or shall
be recoverable by Tesco from eDiets as a debt. 

  

 18 

	18.4	eDiets shall co-operate with Tesco and third party supplier engaged by Tesco under clause 18.2. So that Tesco and any third party supplier can provided the Services or any part of
the Services, eDiets shall make available to Tesco and the third party supplier all relevant materials, including (without limitation) documentation, information, premises, data, employees, agents and sub-contractors, software, hardware and other
assets previously used by eDiets to provide the Services. 

  

	18.5	To the extent which the Services are being provided by Tesco or a third party supplier under clause 18.2, eDiets is relieved of its obligations to provide the Services. eDiets will
not be liable for the acts or omissions of Tesco or the third party supplier in providing the Services. 

  

	18.6	Tesco may require eDiets to resume delivery of the Services once Tesco is satisfied on reasonable grounds that eDiets will be able to resume delivery of the Services in accordance
with this agreement. 

  

	19	Confidential Treatment of Information 

  

	19.1	For the purposes of this agreement, “Confidential Information” shall include all information of whatever nature which has been or is disclosed to the other party or to
which either party has been given access, whether in oral, written, graphic, photographic, digital, binary, electronic or paper or in any other form whatsoever, howsoever stored. 

  

	19.2	The provisions of clause 19.1 do not apply to: 

  

	 	19.2.1 	Confidential Information which at the time of disclosure is within the public domain; 

  

	 	19.2.2 	Confidential Information which after such disclosure comes into the public domain (other than by reason of a breach of any of the undertakings in clause 19.3 below); or

  

	 	19.2.3 	Confidential Information which was lawfully in the possession of the party prior to its being furnished by or on behalf of the other party provided that such information was not
bound by a confidentiality agreement or other obligation of secrecy in respect thereof as demonstrated by the party’s ordinary business records. 

  

 19 

	19.3	In consideration of Confidential Information being made available under this agreement, each party will procure that: 

  

	 	19.3.1 	use of the Confidential Information will only occur for purposes relating to this agreement only; 

  

	 	19.3.2 	each party will treat and safeguard as private and confidential all the Confidential Information received at any time. This clause 19 shall remain in force after expiration or
termination of this agreement; 

  

	 	19.3.3 	either party shall not at any time without the prior written consent of the other party disclose or reveal the Confidential Information to any other person or party whatsoever,
other than the officers, employees, advisors and agents or authorised third parties who are required in the course of their duties to receive and consider the same and who shall be required to observe the same restrictions on the use and disclosure
of the Confidential Information as are contained in this confidentiality clause. 

  

	19.4	Each party shall make known without delay to the other party any improper disclosure on the part of an employee or customer or any other person, which may come to that party’s
knowledge. 

  

	19.5	It shall not be considered a breach of this agreement if disclosure is made in response to a formal request by a court or governmental agency, after notice to the other party,
sufficient to oppose such formal request. 

  

	20	Default; Term and Termination 

  

	20.1	Within five (5) days after receipt of a notice from Tesco in respect of eDiet’s material failure to provide the Services or eDiet’s repeated failure to provide elements of
the Services in accordance with the Service Levels, eDiets shall: 

  

	 	20.1.1 	perform a root-cause analysis to identify the cause of such failure; 

  

	 	20.1.2 	provide Tesco with a written report detailing the cause of, and the procedure for correcting, such failure; 

  

	 	20.1.3 	correct such failure; and 

  

	 	20.1.4 	provide Tesco with reasonable assurance and documented evidence that such failure shall not reoccur. 

  

	20.2	Any notice given by Tesco under clause 20.1 shall be without prejudice to Tesco’s termination rights under this agreement. 

  

 20 

	20.3	Subject to the provisions of clause 20.4 below, this agreement shall remain in force (a) until termination or expiration of the Technology Licence Agreement or (b) for 15 years from
the Effective Date and thereafter be renewable for successive one year terms upon notice by Tesco, whichever shall first occur. 

  

	20.4	Without prejudice to any other sub-clause in this clause 20, Tesco may, at any time during the Term, give eDiets three months notice to terminate this agreement and move the Tesco
Production Infrastructure to a hosting facility of Tesco’s choice. If Tesco terminates this agreement under this clause 20.4 the provisions relating to Transition Assistance below shall apply. 

  

	20.5	eDiets or Tesco shall be entitled by notice in writing to the other, but without prejudice to any other rights or remedies of either party in respect of any matter or event which
shall have arisen or taken place prior to such notice, to terminate this agreement: 

  

	 	20.5.1 	by reason of a material breach, default, non-performance or non-observance by the other party of any provisions, terms or obligations herein and on the other party’s part to be
performed and observed, which the terminating party has required the other party by notice in writing to remedy (such notice specifying the relevant terms, provisions, or obligations and stating the intention of the terminating party to terminate
under clause 20.5.1) and the other party has not within thirty (30) days of such notice remedied (whether such breach is capable of remedy or not); 

  

	 	20.5.2 	if the either party becomes insolvent, unable to pay its debts as they fall due within the meaning of Section 123 of the Insolvency Act 1986 or makes any arrangement or composition
with its creditors or passes a resolution or any court shall make any order that a party shall be wound up (save and excepting only a member’s winding up for the purposes of reconstruction or amalgamation to which Tesco has approved in writing)
or if a receiver, administrator or similar officer is appointed over the whole or any part of a party’s assets, or if circumstances shall arise which entitle a court or a creditor to appoint a receiver, administrator or similar officer or to
make a winding up order or a party suffers or undergoes any analogous process to the above under any national laws applicable to it. 

  

	20.6	 Tesco shall be entitled by notice in writing to eDiets, but without prejudice to any other rights or remedies of Tesco in respect of any matter or event which shall
have arisen or taken place prior to such notice, to terminate this agreement if eDiets (a) materially breaches the Service Levels, and/or, (b) persistently breaches the Service Levels (for the 

  

 21 

	 	 
purpose of this agreement, a persistent breach of the Service Levels shall be three non-material breaches of the Service Levels in any Quarter).

  

	20.7	Tesco shall be entitled by notice in writing to eDiets to terminate this agreement upon a change of Control of eDiets or eDiets.com (unless such change of Control is solely the
result of a bona fide intra-Group reorganisation). 

  

	20.8	On termination of this agreement for any reason: 

  

	 	20.8.1 	eDiets shall return all Tesco Data in such format and on such media as requested by Tesco and then delete (so that no undelete is possible, including the overwrite of any back-up
media) all Tesco Data held by eDiets; and 

  

	 	20.8.2 	eDiets shall not obstruct Tesco should they move the Tesco Production Infrastructure to a new facility, and shall provide all information and assistance necessary to ensure the
smooth transition of services and functions included in the Tesco Production Infrastructure; 

  
 (collectively, “Transition Assistance”). 
  

	20.9	Tesco may require that Transition Assistance commence upon eDiet’s receipt of a notice to terminate the agreement and continue through to the effective date of the termination
and for a period of up to three (3) months following the date of termination, unless otherwise agreed by both parties. Charges for Services provided after termination of this agreement will be at eDiets reasonable and documented actual cost
(calculated on the basis of third party invoices or the actual cost to eDiets of its own personnel). Tesco will have the option to purchase from eDiets, at fair market value (taking into account wear and tear), any equipment or material primarily
used by eDiets to provide Services under this agreement. 

  

	21	General Provisions 

  

	21.1	 Force Majeure. Neither party shall be responsible or liable for any failure or delay or consequence thereof in the performance of any of its obligations in
this agreement owing to fire, strike, lock-out, industrial dispute (unless such dispute is caused by the party seeking to rely on this clause), delay in transport, shortage of fuel, inability to obtain materials, embargo, act, demand or requirement
of any Government or any Government department or agency or of any local authority or of a consequence of war or of hostilities or armed conflict (whether war be declared or not) or to any other cause whatsoever beyond the party’s reasonable
control or the after effects of any of the foregoing. If any such delay occurs, then (unless the cause thereof shall frustrate or render impossible or illegal the 

  

 22 

	 	 
performance of this agreement or shall otherwise discharge the same) the period for the party to perform its obligations hereunder shall be extended by such
period (not limited to the length of the delay) as the party may reasonably require to complete such performance. 

  

	21.2	Notices. Notices and other communications to the parties to this agreement required or permitted hereunder shall be deemed duly given upon being transmitted by facsimile to
the correct facsimile number of any party or one day after being left at the address of the party to which it is given or seven days after it has been posted by prepaid registered post to the party to which it is to be given at its address
hereinbefore set out or such other address as such party shall have previously communicated by notice to the party giving such first mentioned notice or other communication. Notices to Tesco shall be delivered by registered post to the CEO of
Tesco.com Limited with copies to the Company Secretaries of Tesco.com Limtied and Tesco Stores Limited (the registered address for Tesco.com Limited and Tesco Stores Limited is Tesco House, Delamare Road, Cheshunt, Hertfordshire EN8 9SL, England).

  

	21.3	Severability. If any provision of this agreement is agreed by the parties to be illegal, void or unenforceable under any law that is applicable hereto or if any court or
arbitrator of competent jurisdiction in a final decision so determines, this agreement shall continue in force save that such provision shall be deemed to be deleted herefrom with effect from the date of such agreement or as declared by a decision
of the said court or arbitrator or such earlier date as the parties may agree. 

  

	21.4	Governing Law 

  

	 	21.4.1 	All disputes between the parties arising out of or in any way relating to this Agreement or any other disputes between the parties in any way connected with the subject matter of
this agreement shall be governed by the laws of England and Wales. 

  

	 	21.4.2 	The Courts of England and Wales shall have exclusive jurisdiction to hear all matters arising out of or in any way relating to this agreement. 

  

	21.5	Third Parties 

  

	 	21.5.1 	The parties do not intend any third party to have the right to enforce any provision of this agreement under the Contract (Rights of Third Parties) Act 1999 or otherwise except any
member of Tesco’s Group, who will have the right to enforce this agreement to the extent to which it relates to the services provided to any member of Tesco’s Group under it. 

  

	 	21.5.2 	 Notwithstanding that any term of this agreement may be or become 

  

 23 

	 	 
enforceable by a person who is not a part to it, the terms of this agreement or any of them may be varied, amended, modified or this agreement may be
suspended, cancelled or terminated by agreement in writing between the parties or this agreement may be rescinded (in each case) without the consent of the third party. 

  
 Signed by the parties on the date of this agreement. 
  

 24 

 Schedule 1 
  

Services and Service Levels 
  
 eDiets will manage and maintain the Tesco Production Infrastructure (including both electronic and physical security for the Tesco Diet Service) to a standard compliant
with its then current standards from time to time in relation to the eDiets Service and the Security Policy (in the event of a conflict in standards between the eDiets Service and the Security Policy requirements, the requirements of the Security
Policy shall prevail). 
  
 eDiets will maintain the Tesco Production
Infrastructure necessary for hosting the Tesco Diet Website and uploading the Tesco Application System on a Tier One hosting facility (for the purposes of this schedule a “Tier One hosting facility” is one that has (a) at least two peered
network connections and (b) resilient live and back-up connectivity and electricity provision). The Tesco Production Infrastructure will be (and, subject to the Change Control Procedure, shall continue to be during the Term) architected similarly to
the existing eDiets website and include normal operations such as system back-ups. At the date of this agreement, the Tesco Production Infrastructure includes the following hardware (including network components as defined below) and software
components which shall be maintained and supported by eDiets under this agreement: 
  
 Hardware and software components: 
  

	 	•	1 database cluster (two servers and disk array) including Advanced Server software and SQL Server software 

  

	 	•	3 web servers each including ColdFusion software 

  

	 	•	2 email servers configured with Listserv and LSMTP software respectively. 

  

	 	•	1 QA Server including ColdFusion software and SQL Server software (the QA server is used for testing of code before final deployment, to act as the final staging site for tested
code that is subsequently copied across to the production webservers, as a platform for various in-house utilities such as graphics uploading and log viewing and as the platform for Livestats (eDiets’ web stats application).

  

	 	•	Miscellaneous software shall comprise Statistics Server Livestats ‘webstats’ software and Remote Access Software (eg Windows Terminal Services or PC Anywhere) as agreed
between eDiets and Tesco. 

  

 25 

 Network components: 
  

	 	•	1 45 U server rack 

  

	 	•	1 APC power strip (remote reboot) 

  
 The maintenance and support of the Tesco Production Infrastructure includes the following associated services, which shall be provided by eDiets under this agreement:

  
 Associated services: 
  

	 	•	Provision of rack space 

  

	 	•	Provision of bandwidth 

  

	 	•	Bandwidth 

  
 (These associated services do not include management of email, code development, application or web log monitoring, performance tuning, collection of web statistics (e.g., webtrends, omniture) or billing processing.)

  
 Tesco shall reimburse eDiets its reasonable and documented costs for the
provision of bandwidth under this agreement. 
  
 eDiets’ maintenance of the
Tesco Production Infrastructure shall include installing software patches from the respective vendors (for example, Microsoft patches). 
  
 eDiets is specifically not responsible in any way for the maintaining or monitoring of the Tesco Application System that runs on the Tesco Production Infrastructure.
Monitoring of application processes (whether critical or non critical), resulting from software issues in the application code of the Tesco Application System are the responsibility of Tesco. 
  
 eDiets and Tesco will agree a procedure to estimate the anticipated page view demand in
sufficient time to allow (a) Tesco to supply and eDiets to install all necessary hardware and software to meet the anticipated demand, and (b) eDiets to provide necessary bandwidth to meet the anticipated demand. 
  
 eDiets will monitor the Tesco Production Infrastructure to ensure it meets the Availability
requirements and provide Tesco with access to AlertSite. The reports generated by AlertSite will be the same or similar to the reports used by eDiets to manage the eDiets Service. 
  
 Upon receiving a notification (“Notification”) (via AlertSite or from Tesco) of an issue (or potential issue) (“Issue”)
with the Service, eDiets shall investigate and classify the issue as either ‘critical’ or ‘non-critical’ (as defined below). eDiets will trace the status of outstanding Issues related to the Tesco 

  

 26 

 
Diet Website(s) or the Tesco Production Infrastructure and will notify Tesco of progress, including informing Tesco whether the problem is a
‘critical’ or ‘non-critical’ problem. (Issues relating to the Tesco Application Systems are the responsibility of Tesco.) 
  
 A ‘critical’ problem is defined as an inability of Customers to access the Tesco Diet Website(s) or the inability of Tesco to access the Tesco Production
Infrastructure due to a failure on the part of the Services. ‘Critical’ Issues are problems with hardware or software managed by eDiets that cause an interruption in the delivery, management or maintenance of the Tesco Diet Service as well
as and any non-critical Issue which has not been remedied to Tesco’s satisfaction within 7 days of Notification. Critical Issues do not include any problem resulting from a failure in the Tesco Application Systems caused by Tesco. A
‘non-critical’ Issue is defined as a problem that affects the Tesco Production Infrastructure environment but is mutually agreed by both parties to be a “bug” that must be addressed but is not immediately causing
non-Availability. 
  
 eDiets can be contacted 24x7 for ‘critical’
problems at tescosupport@ediets.com. eDiets will correct (to the extent practicable using best endeavours) ‘critical’ Issues within 30 minutes of Notification; if such correction is not practicable, eDiets shall update Tesco in that time
limit by outlining to Tesco the planned approach and anticipated timing for the resolution of the Issue. eDiets will correct (to the extent practicable using best endeavours) ‘non-critical’ Issues within 48 hours of Notification; if such
correction is not practicable, eDiets shall update Tesco in that time limit by outlining to Tesco the planned approach and anticipated timing for the resolution of the Issue. Thereafter, eDiets will continue to provide Tesco with regular status
updates on progress against the plan. In relation to critical Issues, such updates will be delivered at least every hour; in relation to non-critical Issues, such updates will be delivered at least every 48 hours. 
  
 eDiets will alert Tesco by e-mail, phone, or instant messenger, with as much notice as is
reasonably practicable, to any known problems within the Service which may affect service quality (including but not limited to slow page download times) or Availability. Such notification shall not relieve eDiets of any of its obligations under
this agreement. 
  
 Failure to provide a satisfactory response to any fault in the
Services within the response times shall automatically trigger Service Credits. 
  

 27 

 Schedule 2 
  

Change Control Procedure 
  

	1	General principles 

  

	1.1	No change to the Services will be binding on either party unless made in writing and signed by duly authorised representatives of both parties. 

  

	2	Who may request or recommend changes 

  

	2.1	At any time, Tesco or eDiets may request changes to any part or parts of the Services. 

  

	2.2	The request may be given verbally and confirmed in writing. 

  

	3	Tesco changes 

  

	3.1	If Tesco has requested a change, eDiets will submit to Tesco as soon as reasonably practicable after receipt of a proposed change to the agreement (and in any event within 7 days,
unless reasonably deemed a significant modification by eDiets, in which case a non-binding estimated proposal time will be provided by eDiets) a written proposal for the change specifying: 

  

	 	3.1.1 	the impact of implementing the proposed change on the Services; and 

  

	 	3.1.2 	a timetable for implementing the proposed change; and 

  

	 	3.1.3 	material changes which will be required to the agreement; and 

  

	 	3.1.4 	its reasonable additional costs required to implement the proposed change (for the avoidance of doubt, such costs are only applicable if the requested change by Tesco requires the
implementation of a service which eDiets does not currently implement in relation to the eDiets website); and 

  

	 	3.1.5 	(if applicable) the cost savings or cost reductions resulting from the change. 

  

	3.2	eDiets will investigate the impact of implementing the proposed change and prepare the written estimate at no additional charge to Tesco. 

  

	4	eDiets Changes 

  

	4.1	eDiets may recommend changes to Tesco by a written proposal, specifying sufficient detail about the change to allow Tesco to evaluate the change in full, including:

  

	 	4.1.1 	the impact of implementing the proposed change on the Services; and 

  

 28 

	 	4.1.2 	a timetable for implementing the proposed change (specifying whether there are any dates by which a decision by Tesco is critical); 

  

	 	4.1.3 	material changes which will be required to the agreement; and 

  

	 	4.1.4 	its reasonable additional costs required to implement the proposed change (for the avoidance of doubt, such costs are only applicable if the requested change by Tesco requires the
implementation of a service which eDiets does not currently implement in relation to the eDiets website); and 

  

	 	4.1.5 	(if applicable) the cost savings or cost reductions resulting from the change; and 

  

	 	4.1.6 	eDiet’s reasons for requesting the change. 

  

	4.2	eDiets will investigate the impact of implementing the proposed change and prepare the recommendation at no additional charge to Tesco. 

  

	5	Evaluation of the change 

  

	5.1	After receipt of the estimate or recommendation the proposed change will be considered by Tesco, who will decide in its absolute discretion whether: 

  

	 	5.1.1 	to accept eDiet’s estimate or recommendation in which case the Services will be amended in accordance with eDiets estimate or recommendation; 

  

	 	5.1.2 	to withdraw the proposed change; 

  

	 	5.1.3 	if the change is to be implemented by a subcontractor of eDiet’s, to request eDiet’s to obtain competitive quotes from other suitable sub-contractors (eDiets is not
obliged to obtain such requests, but shall not unreasonably fail to do so); 

  

	 	5.1.4 	to request eDiets to benchmark the proposed change (including the estimated cost of the change) in accordance with the benchmarking criteria agreed between the parties (eDiets is
not obliged to carry out such benchmarking under this schedule, but shall not unreasonably fail to do so); and/or 

  

	 	5.1.5 	to query the estimate. 

  

 29 

	5.2	For the purposes of paragraph 5.1.2 of schedule 2, if eDiets and Tesco (each acting reasonably and in good faith) agree that the proposed change is required by eDiets’ meeting
its Availability obligations under clause 2.1 and yet Tesco withdraws the proposed change, any period of unavailability caused as a direct result of this shall not be included in the calculation of unavailability for the purposes of clause 3.1.

  

	5.3	At Tesco’s request, eDiets will provide any additional information requested by Tesco to evaluate the estimate or recommendation fully. 

  

	5.4	Until a change is formally agreed in writing between the parties in accordance with this procedure, eDiets will continue to perform its obligations under the agreement as if the
change had not been proposed. If eDiets implement changes to the Services before they have been agreed under this schedule, then it will do so at its own risk and expense. 

  

 30 

 Schedule 3 
  

Security Policy 
  
 eDiets shall comply with the following security requirements: 
  

	1	Business continuity planning 

  
 Aspects of business continuity management: 
  
 There must be a documented and practiced process for Disaster Recovery 
  

	2	System access control 

  

	2.1	Network access control 

  
 Only authorised IT staff must have access to network equipment, configuration and software. 
  

	2.2	Operating system access control 

  
 Only authorised IT staff must have access to server operating system configuration and systems/application software. 
  

	2.3	Monitoring system access and use 

  
 There must be a system in place to manage and monitor all servers and notify of any errors, failures or security breaches 
  

	2.4	Mobile computing and networking 

  
 Any mobile access must be via secure access. 
  

	3	System development and maintenance 

  

	3.1	Security requirements of systems 

  
 There must be documented and practiced system security guidelines, surrounding all aspects of the system above the hardware and below the application
(such as removal of non-required components, patch management, configuration lock-down). 
  

	3.2	Security of system files 

  
 Only authorised IT staff must have access to production system files 
  

 31 

	4	Physical and environmental security 

  

	4.1	Secure areas 

  
 All production IT equipment must be housed in a secure data centre environment, with restricted access and appropriate levels of monitoring 
  

	4.2	Equipment security 

  
 All production IT equipment should be physically secured and should be marked to reduce the risk of theft 
  

	5	Compliance 

  

	5.1	Compliance with legal requirements 

  
 The company must comply with the requirements of the Data Protection Act and any other relevant legislation concerning the use of Information Technology
and Information Security. 
  

	5.2	System audit considerations 

  
 The company must allow themselves to be audited externally by Tesco in relation to their performance under this agreement. 
  

	6	Security organisation 

  

	6.1	Security in job definition and resourcing 

  
 The company should have a defined (and resourced) role within the organisation responsible for IT security 
  

	6.2	User training 

  
 The company should give all of their users appropriate training and awareness in the secure use of their systems 
  

	6.3	Responding to incidents & malfunctions 

  
 The company should have a documented process for responding to incidents (such as security breaches, virus attacks etc) 
  

	7	Computer and operations management 

  

	7.1	Information Security Infrastructure 

  

 32 

 The company must have infrastructure equipment that provides balanced security in-depth. Evidence of
firewalls, anti-virus, intrusion detection 
  

	7.2	Security of third party access 

  
 Any third party access to the company must be by a secure route 
  

	7.3	Outsourcing 

  
 Any outsourcing done by the company must be covered by the same information security policy terms as the main company 
  

	7.4	Operational procedures & responsibilities 

  
 There must be a documented set of procedures for incident and problem management and standard operational processes such as support and escalation

  

	7.5	System planning and acceptance 

  
 There must be a documented set of procedures for testing, change, configuration and release management 
  

	7.6	Protection against malicious software 

  
 There must be a documented process for checking for software updates/vulnerabilities/patches, analysing them, risk assessment and testing and
implementation. All critical vulnerabilities identified by this process must be patched. 
  

	7.7	Housekeeping 

  
 There must be documented and practiced processes for backup and recovery. 
  

	7.8	Network management 

  
 There must be a network management system in place to manage and monitor all network equipment and notify of any errors, failures or security breaches.

  

	7.9	Media handling and security 

  
 There should be a secure location for storage of media (software, images, data backups etc), with regular offsite storage. 
  

 33 

 Schedule 4 
  

Implementation Services Procedure 
  

	1	Improvements requiring the implementation of application code only (i.e., Improvements not requiring the addition of new components of the Tesco Production Infrastructure)

  

	1.1	Where an Improvement has been developed by eDiets and is made up of new web application code which does not require the addition of any new supporting infrastructure to be added to
the Tesco Production Infrastructure, whether hardware or software, eDiets will, at Tesco’s request, make available to Tesco sufficient information (including application source code, database schematics and application description) to allow
Tesco to be able to estimate the resources needed for Tesco to incorporate the new code into the Tesco Diet Service. 

  

	1.2	If Tesco wish to incorporate the new Improvement, Tesco shall draw up an implementation timetable to incorporate the new Improvement into the Tesco Diet Service, and the
incorporation of the Improvement onto the Tesco Production Infrastructure will be agreed at a time and in a manner convenient to both parties. 

  

	1.3	Tesco will be responsible for any code reconfiguration, content localisation and database modifications necessary to enable the applicable new Improvement to be incorporated into
the Tesco Diet Service. 

  

	1.4	Although eDiets is not responsible for the Tesco Application System, Tesco may request, and eDiets shall make best efforts to carry out such tasks as Tesco requests on the Tesco
Application System where Tesco does not have sufficient knowledge and skill to carry out such tasks itself (for example, Cold Fusion expertise). Tesco shall reimburse eDiets its reasonable and documented actual costs of providing any such services
under this schedule provided such costs are agreed by Tesco in writing before being incurred by eDiets (and payment of such costs shall be governed by clause 5.4). 

  

	2	Improvements requiring the addition of new components of the Tesco Production Infrastructure 

  

	2.1	Where an Improvement requires the addition of new components to the Tesco Production Infrastructure, the addition of such new components shall be at the discretion and cost of
Tesco. To enable Tesco to determine whether or not to add the new component(s) the parties shall carry out the procedure set out in paragraph 2.2 below. 

  

 34 

	2.2	In circumstances where Tesco notifies eDiets that it may wish to make an addition to the Tesco Production Infrastructure to incorporate an Improvement the following shall apply:

  

	 	2.2.1 	eDiets shall produce a reasonable estimate of both the cost of implementing the additional component to the Tesco Production Infrastructure to incorporate the Improvement and the
benefits that would accrue to Tesco as a result of the Improvement. 

  

	 	2.2.2 	Implementation of the additional component to the Tesco Production Infrastructure to incorporate the Improvement shall then only proceed where it is agreed by Tesco that the
Improvement would be beneficial to it. 

  

	 	2.2.3 	If it has been agreed to implement the additional component to the Tesco Production Infrastructure to incorporate the new Improvement, both parties shall draw up an implementation
timetable to implement the additional component and the incorporation of the Improvement onto the Tesco Production Infrastructure will be agreed at a time and in a manner convenient to Tesco. 

  

	 	2.2.4 	The costs for the implementation the additional component to the Tesco Production Infrastructure to incorporate shall be borne by Tesco. 

  

	3	Other (non-Improvement) new components of the Tesco Production Infrastructure 

  

	3.1	Where Tesco wishes to implement any non-Improvement components (including any associated software) to the Tesco Production Infrastructure, such new components shall be at the
discretion and cost of Tesco. To enable Tesco to determine whether or not to add the new component(s) the parties shall carry out the procedure set out in paragraph 3.2 below. 

  

	3.2	In circumstances where Tesco notifies eDiets that it may wish to make an addition to the Tesco Production Infrastructure to incorporate any non-Improvement components the following
shall apply: 

  

	 	3.2.1 	eDiets shall produce a reasonable estimate of both the cost of implementing the additional component to the Tesco Production Infrastructure. 

  

	 	3.2.2 	Implementation of the additional component to the Tesco Production Infrastructure to incorporate the Improvement shall then only proceed where it is agreed by Tesco that the
non-Improvement would be beneficial to it. 

  

 35 

	 	3.2.3 	If it has been agreed to implement the additional non-Improvement component to the Tesco Production Infrastructure both parties shall draw up an implementation timetable to
implement the additional component and the incorporation of the component onto the Tesco Production Infrastructure will be agreed at a time and in a manner convenient to Tesco. 

  

	3.3	The costs for the implementation the additional component to the Tesco Production Infrastructure to incorporate shall be borne by Tesco. 

  

 36 

 Schedule 5 
  

Procedures and elements of the Service with a delayed Effective Date 
  
 The following procedures and elements of the Service shall have the following delayed Effective Date: 
  

	 	•	eDiets compliance with the Security Policy is required from the Effective Date. However, eDiets obligations to document its policies and procedures under the Security Policy shall
have a delayed Effective Date of six weeks from the Effective Date. 

  

	 	•	In relation to the Tesco Production Infrastructure, eDiets shall leave the current eDiets Europe Limited UK and Ireland website server stack running in Miami (to ensure an
uninterrupted service). The non-UK and Ireland eDiets Europe Limited website will also be present on the same server stack (which will result in eDiets Europe Limited and Tesco posting content to the same server stack). Unless otherwise agreed
between the parties following a mutual review of the service provided using the same server stack, eDiets shall (or shall procure that eDiets Europe Limited shall) migrate the non-Tesco websites to a dedicated server within 6 months of the Effective
Date (however any documentation requirements under schedule 3 shall be completed by eDiets within 8 weeks of the Effective Date). 

  

 37 

			
	 SIGNED by
 for and on behalf of
 TESCO IRELAND LIMITED
	  	 )
 )
 )

		
	 SIGNED by
 for and on behalf of
 eDIETS.COM,
INC.
	  	 )
 )
 )

  

 38 

 DATED 15 JULY 2004 
  
 eDIETS.COM, INC. 
  
 TESCO IRELAND LIMITED 
  
 SERVICE LEVEL AGREEMENT 
  

 CONTENTS 
  

					
	1	  	 Definitions and interpretation
	  	1
	2	  	 Performance of the Services by eDiets
	  	7
	3	  	 Availability of the Tesco Diet Service
	  	8
	4	  	 Description of Support Services and Service Levels
	  	9
	5	  	 Tesco Rights and Obligations
	  	10
	6	  	 Insurance
	  	11
	7	  	 Hosting of the eDiets Europe Limited websites on the Tesco Production Infrastructure
	  	11
	8	  	 Reports; Data
	  	11
	9	  	 Change Control Procedure
	  	12
	10	  	 Co-operation; Benchmarking; Service Improvements
	  	12
	11	  	 Warranties and Undertakings
	  	13
	12	  	 Indemnity
	  	14
	13	  	 Limitation of Liability
	  	15
	14	  	 Exclusions
	  	16
	15	  	 Service Credits
	  	16
	16	  	 Tesco Responsibilities
	  	16
	17	  	 Data Protection
	  	18
	18	  	 Backup; Step In Rights
	  	18
	19	  	 Confidential Treatment of Information
	  	19
	20	  	 Default; Term and Termination
	  	20
	21	  	 General Provisions
	  	22
	Schedule 1	  	25
	Schedule 2	  	28
	Schedule 3	  	31
	Schedule 4	  	34
	Schedule 5	  	37

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]