Document:

Subsidiary Guaranty dated May 30, 2008

 Exhibit 10.7 
 SUBSIDIARY GUARANTY 
 Dated as of May 30, 2008 
 From 
 THE GUARANTORS NAMED HEREIN 

and 
 THE ADDITIONAL GUARANTORS REFERRED TO
HEREIN 
 as Guarantors 
 in favor of 
 PRIDES CAPITAL FUND I, L.P. 

 T A B L E   O F   C
O N T E N T S 
  

					
	 Section
	  	Page
			
	Section 1.	  	Guaranty; Limitation of Liability	  	1
			
	Section 2.	  	Guaranty Absolute	  	2
			
	Section 3.	  	Waivers and Acknowledgments	  	3
			
	Section 4.	  	Subrogation	  	3
			
	Section 5.	  	Payments Free and Clear of Taxes, Etc.	  	4
			
	Section 6.	  	Representations and Warranties	  	5
			
	Section 7.	  	Covenants	  	5
			
	Section 8.	  	Amendments, Guaranty Supplements, Etc.	  	6
			
	Section 9.	  	Notices, Etc.	  	6
			
	Section 10.	  	No Waiver; Remedies	  	6
			
	Section 11.	  	Right of Set-off	  	6
			
	Section 12.	  	Indemnification	  	7
			
	Section 13.	  	Subordination	  	7
			
	Section 14.	  	Continuing Guaranty; Assignments under the Notes	  	8
			
	Section 15.	  	Execution in Counterparts	  	8
			
	Section 16.	  	Governing Law; Jurisdiction; Waiver of Jury Trial, Etc.	  	9

 Exhibit A - Guaranty Supplement 
  

 i 

 SUBSIDIARY GUARANTY 
 THIS SUBSIDIARY GUARANTY dated as of May 30, 2008 is made by the parties listed on the signature pages hereof under the caption “Subsidiary Guarantors” and the Additional Guarantors (as defined in
Section 8(b)) (such Persons so listed and the Additional Guarantors being, collectively, the “Guarantors” and, individually, each a “Guarantor”) in favor of Prides Capital Fund I,
L.P. (the “Purchaser”). 
 PRELIMINARY STATEMENT. The Purchaser (i) has purchased a $2,595,000.00 note dated as
of the date hereof (the “Initial Note”) and (ii) may purchase a $2,550,000.00 note dated June 30, 2008 (the “Subsequent Note”, and together with the Initial Note, each a
“Note” and collectively the “Notes”; capitalized terms defined in the Notes and not otherwise defined herein being used herein as therein defined) pursuant to a Note Purchase Agreement dated
May 30, 2008 (the “Note Purchase Agreement”) between eDiets.com, Inc., a Delaware corporation (the “Company”) and the Purchaser. Each Guarantor will derive substantial direct and indirect benefits
from financing provided by the Notes. It is a condition precedent to the purchase of the Notes that each Guarantor shall have executed and delivered this Guaranty. 
 NOW, THEREFORE, in consideration of the premises and in order to induce the Purchaser to purchase the Notes, each Guarantor, jointly and severally with each other Guarantor, hereby agrees as follows: 
 Section 1. Guaranty; Limitation of Liability. (a) Each Guarantor hereby absolutely, unconditionally and irrevocably guarantees the
punctual payment when due, whether at scheduled maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all amounts due under the Notes ( the “Obligations”) (including, without limitation,
any extensions, modifications, substitutions, amendments or renewals of any or all of the foregoing Obligations), whether direct or indirect, absolute or contingent, and whether for principal, interest, premiums, fees, indemnities, contract causes
of action, costs, expenses or otherwise (such Obligations being the “Guaranteed Obligations”), and agrees to pay any and all expenses (including, without limitation, fees and expenses of counsel) incurred by the Purchaser in
enforcing any rights under this Guaranty, the Security Agreement dated as of the date hereof (the “Security Agreement”) among the Purchaser and the parties signatory thereto (each such party, a “Note
Party” and collectively, the “Note Parties”) or the Notes (collectively, the “Note Documents”). Without limiting the generality of the foregoing, each Guarantor’s liability shall
extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by any other Note Party under or in respect of the Note Documents but for the fact that they are unenforceable or not allowable due to the existence of a
bankruptcy, reorganization or similar proceeding involving such other Note Party. 
 (b) Each Guarantor, and by its acceptance of this
Guaranty, the Purchaser, hereby confirms that it is the intention of all such parties that this Guaranty and the Obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law (as
hereinafter defined), the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Guaranty and the Obligations of each Guarantor hereunder. To effectuate
the foregoing intention, the Purchaser and the Guarantors hereby irrevocably agree that the Obligations of each 

 
Guarantor under this Guaranty at any time shall be limited to the maximum amount as will result in the Obligations of such Guarantor under this Guaranty not
constituting a fraudulent transfer or conveyance. For purposes hereof, “Bankruptcy Law” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally. 
 (c) Each Guarantor hereby unconditionally and irrevocably agrees that in the event any payment shall be required to be made to the Purchaser under this Guaranty or any other guaranty, such Guarantor will contribute, to the maximum extent
permitted by law, such amounts to each other Guarantor and each other guarantor so as to maximize the aggregate amount paid to the Purchaser under or in respect of the Note Documents. 
 Section 2. Guaranty Absolute. Each Guarantor guarantees that the Guaranteed Obligations will be paid strictly in accordance with the terms of
the Note Documents, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Purchaser with respect thereto. The Obligations of each Guarantor under or in respect of
this Guaranty are independent of the Guaranteed Obligations or any other Obligations of any other Note Party under or in respect of the Note Documents, and a separate action or actions may be brought and prosecuted against each Guarantor to enforce
this Guaranty, irrespective of whether any action is brought against the Company or any other Note Party or whether the Company or any other Note Party is joined in any such action or actions. The liability of each Guarantor under this Guaranty
shall be irrevocable, absolute and unconditional irrespective of, and each Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to, any or all of the following: 
 (a) any lack of validity or enforceability of any Note Document or any agreement or instrument relating thereto; 
 (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations or any other
Obligations of any other Note Party under or in respect of the Note Documents, or any other amendment or waiver of or any consent to departure from any Note Document, including, without limitation, any increase in the Guaranteed Obligations
resulting from the extension of additional credit to any Note Party or any of its Subsidiaries or otherwise; 
 (c) any
taking, exchange, release or non-perfection of any Collateral (as such term is defined in the Security Agreement) (or any other collateral, or any taking, release or amendment or waiver of, or consent to departure from, any other guaranty, for all
or any of the Guaranteed Obligations); 
 (d) any manner of application of Collateral or any other collateral, or proceeds
thereof, to all or any of the Guaranteed Obligations, or any manner of sale or other disposition of any Collateral or any other collateral for all or any of the Guaranteed Obligations or any other Obligations of any Note Party under the Note
Documents or any other assets of any Note Party or any of its subsidiaries; 
  

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 (e) any change, restructuring or termination of the corporate structure or existence of
any Note Party or any of its subsidiaries; 
 (f) the failure of any other individual or business entity to execute or deliver
this Guaranty, any Guaranty Supplement (as hereinafter defined) or any other guaranty or agreement or the release or reduction of liability of any Guarantor or other guarantor or surety with respect to the Guaranteed Obligations; or 
 (g) any other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any
representation by the Purchaser that might otherwise constitute a defense available to, or a discharge of, any Note Party or any other guarantor or surety. 
 This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by the Purchaser or any successor-in-interest,
assignee or transferee of the Purchaser upon the insolvency, bankruptcy or reorganization of the Company or any other Note Party or otherwise, all as though such payment had not been made. 
 Section 3. Waivers and Acknowledgments. (a) Each Guarantor hereby unconditionally and irrevocably waives promptness, diligence, notice
of acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed Obligations and this Guaranty and any requirement that the Purchaser
protect, secure, perfect or insure any lien or other encumbrance or any property subject thereto or exhaust any right or take any action against any Note Party or any other entity or any Collateral. 
 (b) Each Guarantor hereby unconditionally and irrevocably waives any right to revoke this Guaranty and acknowledges that this Guaranty is continuing in
nature and applies to all Guaranteed Obligations, whether existing now or in the future. 
 (c) Each Guarantor hereby unconditionally and
irrevocably waives (i) any defense arising by reason of any claim or defense based upon an election of remedies by the Purchaser that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement,
exoneration, contribution or indemnification rights of such Guarantor or other rights of such Guarantor to proceed against any of the other Note Parties, any other guarantor or any entity or any Collateral and (ii) any defense based on any
right of set-off or counterclaim against or in respect of the Obligations of such Guarantor hereunder. 
 (d) Each Guarantor acknowledges
that it will receive substantial direct and indirect benefits from the financing arrangements contemplated by the Note Documents and that the waivers set forth in Section 2 and this Section 3 are knowingly made in contemplation of such
benefits. 
 Section 4. Subrogation. Each Guarantor hereby unconditionally and irrevocably agrees not to exercise any rights that
it may now have or hereafter acquire against the Company, any other Note Party or any other insider guarantor that arise from the existence, payment, performance or enforcement of such Guarantor’s Obligations under or in respect of this
Guaranty or any other 
  

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Note Document, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to
participate in any claim or remedy of the Purchaser against the Company, any other Note Party or any other insider guarantor or any Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law,
including, without limitation, the right to take or receive from the Company, any other Note Party or any other insider guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account
of such claim, remedy or right, unless and until all of the Guaranteed Obligations and all other amounts payable under this Guaranty shall have been paid in full in cash. If any amount shall be paid to any Guarantor in violation of the immediately
preceding sentence at any time prior to the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Guaranty, such amount shall be received and held in trust for the benefit of the Purchaser, shall be
segregated from other property and funds of such Guarantor and shall forthwith be paid or delivered to the Purchaser in the same form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed
Obligations and all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with the terms of the Note Documents, or to be held as Collateral for any Guaranteed Obligations or other amounts payable under this Guaranty
thereafter arising. If (i) any Guarantor shall make payment to the Purchaser of all or any part of the Guaranteed Obligations and (ii) all of the Guaranteed Obligations and all other amounts payable under this Guaranty shall have been paid
in full in cash, the Purchaser will, at such Guarantor’s request and expense, execute and deliver to such Guarantor appropriate documents, without recourse and without representation or warranty, necessary to evidence the transfer by
subrogation to such Guarantor of an interest in the Guaranteed Obligations resulting from such payment made by such Guarantor pursuant to this Guaranty. 
 Section 5. Payments Free and Clear of Taxes, Etc. (a) Any and all payments made by any Guarantor under or in respect of this Guaranty or any other Note Document shall be made free and clear of and without
deduction for any and all present or future Taxes (as defined below). If any Guarantor shall be required by law to deduct any Taxes from or in respect of any sum payable under or in respect of this Guaranty or any other Note Document to the
Purchaser, (i) the sum payable by such Guarantor shall be increased as may be necessary so that after such Guarantor and the Purchaser have made all required deductions (including deductions applicable to additional sums payable under this
Section 5), the Purchaser receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Guarantor shall make all such deductions and (iii) such Guarantor shall pay the full amount deducted to
the relevant taxation authority or other authority in accordance with applicable law. 
 (b) In addition, each Guarantor agrees to pay any
present or future Other Taxes (as defined below) that arise from any payment made by or on behalf of such Guarantor under or in respect of this Guaranty or any other Note Document or from the execution, delivery or registration of, performance
under, or otherwise with respect to, this Guaranty and the other Note Documents. 
 (c) Each Guarantor will indemnify the Purchaser for and
hold it harmless against the full amount of Taxes and Other Taxes of any kind imposed by any jurisdiction on amounts payable under this Section 5, imposed on or paid by the Purchaser and any liability (including penalties, additions to tax,
interest and expenses) arising therefrom or with respect thereto. This indemnification shall be made within 30 days from the date the Purchaser makes written demand therefor. 
  

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 (d) Within 30 days after the date of any payment of Taxes by or on behalf of any Guarantor, such
Guarantor shall furnish to the Purchaser, at its address referred to in Section 9, the original or a certified copy of a receipt evidencing such payment. In the case of any payment hereunder by or on behalf of any Guarantor through an account
or branch outside the United States or by or on behalf of such Guarantor by a payor that is not a United States person, if such Guarantor determines that no Taxes are payable in respect thereof, such Guarantor shall furnish, or shall cause such
payor to furnish, to the Purchaser, at such address, an opinion of counsel acceptable to the Purchaser stating that such payment is exempt from Taxes. 
 (e) For the purpose of this Section 5: 
 (i) The term “Taxes”
means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any governmental authority, including any interest, additions to tax or penalties applicable thereto; 
 (ii) The term “Other Taxes” means all present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies arising from any payment made hereunder or under any other Note Document or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Note Document; and 
 (iii) The terms “United States” and “United States person” shall have the meanings
specified in Section 7701 of the Internal Revenue Code. 
 Section 6. Representations and Warranties. Each Guarantor hereby
makes each representation and warranty made in the Note Documents by the Company with respect to such Guarantor and each Guarantor hereby further represents and warrants as follows: 
 (b) There are no conditions precedent to the effectiveness of this Guaranty that have not been satisfied or waived. 
 (c) Such Guarantor has, independently and without reliance upon the Purchaser on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Guaranty and each other Note Document to which it is or is to be a party, and such Guarantor has established adequate means of obtaining from each other Note Party on a continuing basis information
pertaining to, and is now and on a continuing basis will be completely familiar with, the business, condition (financial or otherwise), operations, performance, properties and prospects of such other Note Party. 
 Section 7. Covenants. Each Guarantor covenants and agrees that, so long as any part of the Guaranteed Obligations shall remain unpaid such
Guarantor will perform and observe, and cause each of its subsidiaries to perform and observe, all of the terms, covenants and agreements set forth in the Note Documents on its or their part to be performed or observed or that the Company has agreed
to cause such Guarantor or such subsidiaries to perform or observe. 
  

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 Section 8. Amendments, Guaranty Supplements, Etc. (a) No amendment or waiver of any provision
of this Guaranty and no consent to any departure by any Guarantor therefrom shall in any event be effective unless the same shall be in writing and signed by the Purchaser and the Guarantors, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given. 
 (b) Upon the execution and delivery by any entity of a guaranty
supplement in substantially the form of Exhibit A hereto (each, a “Guaranty Supplement”), (i) such entity shall be referred to as an “Additional Guarantor” and shall become and be a Guarantor
hereunder, and each reference in this Guaranty to a “Guarantor” shall also mean and be a reference to such Additional Guarantor, and each reference in any other Note Document to a “Subsidiary
Guarantor” shall also mean and be a reference to such Additional Guarantor, and (ii) each reference herein to “this Guaranty”, “hereunder”, “hereof” or words
of like import referring to this Guaranty, and each reference in any other Note Document to the “Subsidiary Guaranty”, “thereunder”, “thereof” or words of like import referring
to this Guaranty, shall mean and be a reference to this Guaranty as supplemented by such Guaranty Supplement. 
 Section 9. Notices,
Etc. All notices and other communications provided for hereunder shall be in writing (including facsimile communication) and mailed, faxed, sent by electronic mail or delivered to the Purchase or any Guarantor at the Purchaser or such
Guarantors’ address as specified in Section 20 of the Security Agreement. All such notices and other communications shall, when mailed, faxed, sent by electronic mail or otherwise, be effective when deposited in the mails, confirmed by
facsimile answerback or sent by electronic mail, respectively. Delivery by facsimile or electronic mail of an executed counterpart of a signature page to any amendment or waiver of any provision of this Guaranty or of any Guaranty Supplement to be
executed and delivered hereunder shall be effective as delivery of an original executed counterpart thereof. 
 Section 10. No
Waiver; Remedies. No failure on the part of the Purchaser to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
 Section 11. Right of Set-off. Upon the occurrence and during the continuance of any Event of Default and the acceleration of the amounts due and payable under any Note pursuant to Section 4 of the
Notes, the Purchaser and any of its affiliates are hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by the Purchaser or any such affiliate to or for the credit or the account of any Guarantor against any and all of the Obligations of such Guarantor now or hereafter existing under the Note
Documents, irrespective of whether the Purchaser shall have made any demand under this Guaranty or any other Note Document and although such Obligations may be unmatured. The Purchaser agrees promptly to notify such Guarantor after any such set-off
and application; provided, however, that the failure to give such notice shall not affect the 

  

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validity of such set-off and application. The rights the Purchaser under this Section 11 are in addition to other rights and remedies (including,
without limitation, other rights of set off) that the Purchaser and its affiliates may have. 
 Section 12. Indemnification.
(a) Without limitation on any other Obligations of any Guarantor or remedies of the Purchaser under this Guaranty, each Guarantor shall, to the fullest extent permitted by law, indemnify, defend and save and hold harmless the Purchaser and each
of its affiliates and their respective officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and
expenses (including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party in connection with or as a result of any failure of any Guaranteed Obligations to be the
legal, valid and binding obligations of any Note Party enforceable against such Note Party in accordance with their terms. 
 (b) Each
Guarantor hereby also agrees that none of the Indemnified Parties shall have any liability (whether direct or indirect, in contract, tort or otherwise) to any of the Guarantors or any of their respective affiliates or any of their respective
officers, directors, employees, agents and advisors, and each Guarantor hereby agrees not to assert any claim against any Indemnified Party, for special, indirect, consequential or punitive damages arising out of or otherwise relating to the Note
Documents, the actual or proposed use of the proceeds of the Notes or any of the transactions contemplated by the Note Documents. 
 (c)
Without prejudice to the survival of any of the other agreements of any Guarantor under this Guaranty or any of the other Note Documents, the agreements and obligations of each Guarantor contained in Section 1(a) (with respect to enforcement
expenses), the last sentence of Section 2, Section 5 and this Section 12 shall survive the payment in full of the Guaranteed Obligations and all of the other amounts payable under this Guaranty. 
 Section 13. Subordination. Each Guarantor hereby subordinates any and all debts, liabilities and other Obligations owed to such Guarantor by
each other Note Party (the “Subordinated Obligations”) to the Guaranteed Obligations to the extent and in the manner hereinafter set forth in this Section 13: 
 (a) Prohibited Payments, Etc. Except during the continuance of an Event of Default (including the commencement and continuation of
any proceeding under any Bankruptcy Law relating to any other Note Party), each Guarantor may receive regularly scheduled payments from any other Note Party on account of the Subordinated Obligations. After the occurrence and during the continuance
of any Event of Default (including the commencement and continuation of any proceeding under any Bankruptcy Law relating to any other Note Party), however, unless the Purchaser otherwise agrees, no Guarantor shall demand, accept or take any action
to collect any payment on account of the Subordinated Obligations. 
 (b) Prior Payment of Guaranteed Obligations. In
any proceeding under any Bankruptcy Law relating to any other Note Party, each Guarantor agrees that the Purchaser shall be entitled to receive payment in full in cash of all Guaranteed Obligations 

  

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(including all interest and expenses accruing after the commencement of a proceeding under any Bankruptcy Law, whether or not constituting an allowed claim
in such proceeding (“Post Petition Interest”)) before such Guarantor receives payment of any Subordinated Obligations. 
 (c) Turn-Over. After the occurrence and during the continuance of any Event of Default (including the commencement and continuation of any proceeding under any Bankruptcy Law relating to any other Note Party),
each Guarantor shall, if the Purchaser so requests, collect, enforce and receive payments on account of the Subordinated Obligations as trustee for the Purchaser and deliver such payments to the Purchaser on account of the Guaranteed Obligations
(including all Post Petition Interest), together with any necessary endorsements or other instruments of transfer, but without reducing or affecting in any manner the liability of such Guarantor under the other provisions of this Guaranty.

 (d) Purchaser Authorization. After the occurrence and during the continuance of any Event of Default (including the
commencement and continuation of any proceeding under any Bankruptcy Law relating to any other Note Party), the Purchaser is authorized and empowered (but without any obligation to so do), in its discretion, (i) in the name of each Guarantor,
to collect and enforce, and to submit claims in respect of, Subordinated Obligations and to apply any amounts received thereon to the Guaranteed Obligations (including any and all Post Petition Interest), and (ii) to require each Guarantor
(A) to collect and enforce, and to submit claims in respect of, Subordinated Obligations and (B) to pay any amounts received on such obligations to the Purchaser for application to the Guaranteed Obligations (including any and all Post
Petition Interest). 
 Section 14. Continuing Guaranty; Assignments under the Notes. This Guaranty is a continuing guaranty and
shall (a) remain in full force and effect until the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Guaranty, (b) be binding upon the Guarantor, its successors and assigns and (c) inure
to the benefit of and be enforceable by the Purchaser and its successors, transferees and assigns. Without limiting the generality of clause (c) of the immediately preceding sentence, the Purchaser may assign or otherwise transfer all or any
portion of its rights and obligations under the Notes to any entity, and such entity shall thereupon become vested with all the benefits in respect thereof granted to the Purchaser herein or otherwise. No Guarantor shall have the right to assign its
rights hereunder or any interest herein without the prior written consent of the Purchaser. 
 Section 15. Execution in
Counterparts. This Guaranty and each amendment, waiver and consent with respect hereto may be executed in any number of counterparts and by different parties thereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Guaranty by telecopier shall be effective as delivery of an original executed counterpart of
this Guaranty. 
  

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 Section 16. Governing Law; Jurisdiction; Waiver of Jury Trial, Etc. (a) This Guaranty shall
be governed by, and construed in accordance with, the laws of the State of New York. 
 (b) Each Guarantor hereby irrevocably and
unconditionally submits to the nonexclusive jurisdiction of any New York State or Federal court of the United States of America sitting in the Borough of Manhattan, New York City, in any action or proceeding arising out of or relating to this
Guaranty or any other Note Document to which it is a party and irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such New York State court or, to the fullest extent
permitted by law, in such Federal court. Nothing in this Section 16 shall affect any right that any party may otherwise have to bring any action or proceeding relating to any Note Document in the courts of any jurisdiction. Each Guarantor
hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, (a) any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of this Guaranty
or any other Note Document in any New York State or Federal court and (b) the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
 (c) EACH GUARANTOR HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE NOTE DOCUMENTS OR THE ACTIONS OF THE PURCHASER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF. 
 [Remainder of page intentionally left blank.] 
  

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 IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be duly executed and delivered by its
officer thereunto duly authorized as of the date first above written. 
  

			
	EDIETS, INC.
		
	By:	 	 /s/ James A. Epstein

	Name:	 	James A. Epstein
	Title:	 	Secretary
	
	NUTRIO.COM, INC.
		
	By:	 	 /s/ James A. Epstein

	Name:	 	James A. Epstein
	Title:	 	Secretary

  

 [Signature Page to Subsidiary Guaranty] 

 Exhibit A 
 To The 
 Subsidiary Guaranty 
 FORM OF SUBSIDIARY GUARANTY SUPPLEMENT 
                  ,          
 Prides Capital Fund I, L.P., 
 as Purchaser 
 200 High Street, Suite 700 
 Boston, MA 02110 
 Attention: Hank Lawlor 
 Senior Secured Notes dated as of May 30, 2008 and June 30, 2008 (the
“Notes”) 
 issued by eDiets.com, Inc., a Delaware corporation (the “Company”) 
 in favor of Prides Capital Fund I, L.P. (the “Purchaser”) 
 Ladies and Gentlemen: 
 Reference is made to the above-captioned Notes and to the Subsidiary Guaranty dated
as of May 30, 2008 in respect thereof (such Subsidiary Guaranty, as in effect on the date hereof and as it may hereafter be amended, supplemented or otherwise modified from time to time, together with this Guaranty Supplement, being the
“Subsidiary Guaranty”). The capitalized terms defined in the Subsidiary Guaranty or in the Notes and not otherwise defined herein are used herein as therein defined. 
 Section 1. Guaranty; Limitation of Liability. (a) The undersigned hereby absolutely, unconditionally and irrevocably guarantees the
punctual payment when due, whether at scheduled maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all Obligations of each other Note Party now or hereafter existing under or in respect of the Note Documents
(including, without limitation, any extensions, modifications, substitutions, amendments or renewals of any or all of the foregoing Obligations), whether direct or indirect, absolute or contingent, and whether for principal, interest, premium, fees,
indemnities, contract causes of action, costs, expenses or otherwise (such Obligations being the “Guaranteed Obligations”), and agrees to pay any and all expenses (including, without limitation, fees and expenses of counsel)
incurred by the Purchaser in enforcing any rights under this Guaranty Supplement, the Subsidiary Guaranty or any other Note Document. Without limiting the generality of the foregoing, the undersigned’s liability shall extend to all amounts that
constitute part of the Guaranteed Obligations and would be owed by any other Note Party to the Purchaser under or in respect of the Note Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving such other Note Party. 
  

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 (b) The undersigned, and by its acceptance of this Guaranty Supplement, the Purchaser, hereby confirms
that it is the intention of all such parties that this Guaranty Supplement, the Subsidiary Guaranty and the Obligations of the undersigned hereunder and thereunder not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law,
the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Guaranty Supplement, the Subsidiary Guaranty and the Obligations of the undersigned hereunder
and thereunder. To effectuate the foregoing intention, the Purchaser and the undersigned hereby irrevocably agree that the Obligations of the undersigned under this Guaranty Supplement and the Subsidiary Guaranty at any time shall be limited to the
maximum amount as will result in the Obligations of the undersigned under this Guaranty Supplement and the Subsidiary Guaranty not constituting a fraudulent transfer or conveyance. 
 (c) The undersigned hereby unconditionally and irrevocably agrees that in the event any payment shall be required to be made to the Purchaser under this
Guaranty Supplement, the Subsidiary Guaranty or any other guaranty, the undersigned will contribute, to the maximum extent permitted by applicable law, such amounts to each other Guarantor and each other guarantor so as to maximize the aggregate
amount paid to the Purchaser under or in respect of the Note Documents. 
 Section 2. Obligations Under the Guaranty. The
undersigned hereby agrees, as of the date first above written, to be bound as a Guarantor by all of the terms and conditions of the Subsidiary Guaranty to the same extent as each of the other Guarantors thereunder. The undersigned further agrees, as
of the date first above written, that each reference in the Subsidiary Guaranty to an “Additional Guarantor” or a “Guarantor” shall also mean and be a reference to the undersigned, and each reference
in any other Note Document to a “Subsidiary Guarantor” or a “Note Party” shall also mean and be a reference to the undersigned. 
 Section 3. Representations and Warranties. The undersigned hereby makes each representation and warranty set forth in Section 6 of the
Subsidiary Guaranty to the same extent as each other Guarantor. 
 Section 4. Delivery by Facsimile or Electronic Mail. Delivery
of an executed counterpart of a signature page to this Guaranty Supplement by facsimile or electronic mail shall be effective as delivery of an original executed counterpart of this Guaranty Supplement. 
 Section 5. Governing Law; Jurisdiction; Waiver of Jury Trial, Etc. (a) This Guaranty Supplement shall be governed by, and construed in
accordance with, the laws of the State of New York. 
 (b) The undersigned hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or any federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Guaranty Supplement, the Subsidiary Guaranty or any of the other Note Documents to which it is or is to be a party, or for recognition or enforcement of any judgment, and the undersigned hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in any such New York State court or, to the extent permitted by law, in such federal court. The undersigned 

  

 A-2 

 
agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in
any other manner provided by law. Nothing in this Guaranty Supplement or the Subsidiary Guaranty or any other Note Document shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Guaranty
Supplement, the Subsidiary Guaranty or any of the other Note Documents to which it is or is to be a party in the courts of any other jurisdiction. 
 (c) The undersigned irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of
or relating to this Guaranty Supplement, the Subsidiary Guaranty or any of the other Note Documents to which it is or is to be a party in any New York State or federal court. The undersigned hereby irrevocably waives, to the fullest extent permitted
by law, the defense of an inconvenient forum to the maintenance of such suit, action or proceeding in any such court. 
 (d) THE UNDERSIGNED
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS OR THE ACTIONS OF THE PURCHASER IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF. 
  

			
	Very truly yours,
	
	[NAME OF ADDITIONAL GUARANTOR]
		
	By	 	  

	Title:	 	

  

 A-3Amended Warrant for the Purchase of Common Stock dated May 30, 2008

 Exhibit 10.8 
 AMENDMENT NO. 1 TO WARRANT FOR THE PURCHASE OF SHARES OF COMMON STOCK dated as of May 30, 2008 (this “Amendment”) among eDiets.com, Inc., a Delaware Corporation (the
“Company”) and Prides Capital Fund I, L.P. (the “Purchaser”). 
 PRELIMINARY STATEMENTS: 

(1) WHEREAS, the parties hereto have entered into that certain Warrant for the Purchase of Shares of Common Stock dated as of August 31, 2007 (the
“Warrant”). Capitalized terms not otherwise defined in this Amendment have the same meanings as specified in the Warrant or in that certain Note and Warrant Purchase Agreement dated August 31, 2007 (the “Note and
Warrant Purchase Agreement”) among the Company and the Purchaser. 
 (2) WHEREAS, the Company has requested that the Warrant be
amended as provided herein. 
 (3) The Purchaser is, on the terms and conditions stated below, willing to grant the request of the Company
and the Company and the Purchaser have agreed to amend the Warrant as hereinafter set forth. 
 SECTION 1. Amendments to Warrant. The
Warrant is, effective as of the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 2, hereby amended as follows: 
 (a) Article 3 is amended by: (1) renumbering existing subsection (c) as subsection (d); (2) renumbering existing subsection (d) as new subsection (e); and (3) inserting new subsection
(c) to read as follows: 
 (c) If, at any time while this Warrant is outstanding, the Company shall issue additional
shares of Common Stock for consideration per share less than the then current market price (determined (a) in the event that the Common Stock is publicly listed, by reference to the closing sales price of the Common Stock on the date of such
issue or (b) in the event that the Common Stock is not publicly listed, by reference to the then current market value of each share of Common Stock as determined by the Board of Directors of the Company in good faith; provided, however, that in
the event of a sale, merger, liquidation, dissolution or winding up of the Company (each, a ‘Liquidity Event’), current market price means the amount per share payable to the holders of the Common Stock upon the consummation of such
Liquidity Event), then the Per Share Warrant Price of the Warrant Shares shall be reduced, concurrently with such issue, to a price (calculated to the nearest cent) determined by multiplying such Per Share Warrant Price by a fraction, the numerator
of which shall be the number of shares of Common Stock outstanding immediately prior to such issue plus the number of shares which the aggregate consideration received by the Company for the total number of additional shares of Common Stock so
issued would purchase at the then current fair market price, and the denominator of which shall be the number of shares of Common Stock outstanding immediately prior to such 

  

 1 

 
issue plus the number of such additional shares of Common Stock so issued. Notwithstanding the foregoing, no adjustment to the Per Share Warrant Price shall
be required under this Section 3(c): (i) in connection with the issuance of shares of Common Stock and/or options, warrants or other Common Stock purchase rights and the Common Stock issued pursuant to such options, warrants or other
rights (as adjusted for any stock dividends, combinations, splits, recapitalizations and the like after the date hereof) issued or to be issued after the date hereof to employees, officers or directors of, or consultants or advisors to the Company
or any subsidiary, pursuant to stock purchase or stock option or employee benefit plans or other arrangements that are approved by the board of directors of the Company; (ii) in connection with a bona fide firm commitment underwritten public
offering with a nationally recognized underwriter which generates gross proceeds to the Company in excess of $15 million; (iii) upon conversion of any options, warrants or other rights to acquire shares of Common Stock that are outstanding on
the day immediately preceding the date hereof, provided, however, that the terms of such options, warrants or rights are not amended, modified or changed on or after the date hereof; or (iv) in connection with shares of Common Stock issued as
consideration for the acquisition of another company or business in which the shareholders of the Company do not have a majority ownership interest, which acquisition has been approved by the board of directors of the Company and provided
that after giving effect to such acquisition the Company is the surviving entity. 
 (b) Article 6 is amended by inserting a new sentence at
the end of subsection (b) to read as follows: 
 Notwithstanding the foregoing, this Warrant shall not be sold or
otherwise transferred, except to an Affiliate (as such term is defined that certain note and warrant purchase agreement dated August 31, 2007 entered into by the Company and Prides Capital Fund I, L.P., the ‘Note and Warrant Purchase
Agreement’), unless all amounts due under the Notes (as such term is defined in the Note and Warrant Purchase Agreement) have been paid in full. 
 SECTION 2. Conditions of Effectiveness. This Amendment shall become effective upon its execution by the parties hereto. 
 SECTION 3. Representations and Warranties of the Company. The Company hereby represents and warrants to the Purchaser that, as of the date hereof and after giving effect to this Amendment, (a) this
Amendment has been duly authorized, executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles (regardless of whether enforcement is sought in equity or at law) and (b) the Warrant (as amended by this Amendment)
and all other Note Documents are and remain legal, valid, binding and enforceable obligations of the Note Parties in accordance with the terms thereof except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
relating to or limiting creditors’ rights generally or by equitable principles (regardless of whether enforcement is sought in equity or at law). 
  

 2 

 SECTION 4. Reference to and Effect on the Note Documents. 
 (a) On and after the effectiveness of this Amendment, each reference in the Warrant to “this Warrant”, “hereunder”, “hereof”
or words of like import referring to the Warrant, shall mean and be a reference to the Warrant, as amended by this Amendment. 
 (b) The
Warrant and each of the other Note Documents, as specifically amended by this Amendment, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. Without limiting the generality of the foregoing,
the Security Agreement and all of the Collateral described therein do and shall continue to secure the payment of all Secured Obligations (as defined in the Security Agreement) of the Note Parties under the Note Documents, in each case as amended by
this Amendment. 
 (c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as
a waiver of any right, power or remedy of the Purchaser under any of the Note Documents, nor constitute a waiver of any provision of any of the Note Documents. 
 SECTION 5. Costs and Expenses. The Company agrees to indefeasibly pay on demand all costs and expenses of the Purchaser in connection with the preparation, execution, delivery and administration, modification
and amendment of this Amendment and the other instruments and documents to be delivered hereunder (including, without limitation, the reasonable fees and expenses of counsel for the Purchaser) in accordance with the terms of Section 2.1 of the
Note and Warrant Purchase Agreement. 
 SECTION 6. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed
counterpart of a signature page to this Amendment by telecopier shall be effective as delivery of a manually executed counterpart of this Amendment. 
 SECTION 7. Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of Delaware. 
  

 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective
officers thereunto duly authorized, as of the date first above written. 
  

			
	EDIETS.COM, INC.
		
	By:	 	 /s/ James A. Epstein

	Name:	 	James A. Epstein
	Title:	 	Secretary
	
	PRIDES CAPITAL FUND I, L.P.
		
	By:	 	Prides Capital Partners, LLC, its General Partner
		
	By:	 	 /s/ Kevin A. Richardson II

	Name:	 	Kevin A. Richardson II
	Title:	 	

  

 Signature Page to Amendment No. 1 to Warrant 

 CONSENT 
 Dated as of May 30, 2008 
 We, the undersigned, as Guarantors under the Guaranty and the Security
Agreement (each as defined in the Note and Warrant Purchase Agreement) in favor of the Purchaser and, for its benefit, hereby consent to the foregoing Amendment No. 1 to the Warrant (the “Amendment”) and hereby confirm and
agree that (a) notwithstanding the effectiveness of such Amendment, the Guaranty and Security Agreement are, and shall continue to be, in full force and effect and are hereby ratified and confirmed in all respects, except that, on and after the
effectiveness of such Amendment, each reference in the Guaranty, Security Agreement and Intellectual Property Security Agreement to “Warrant”, “thereunder”, “thereof”, or words of like import shall mean and be a
reference to the Warrant, as amended by such Amendment. 
  

			
	EDIETS, INC.
		
	By:	 	 /s/ James A. Epstein

	Name:	 	James A. Epstein
	Title:	 	Secretary
	
	NUTRIO.COM, INC.
		
	By:	 	 /s/ James A. Epstein

	Name:	 	James A. Epstein
	Title:	 	Secretary

  

 Signature Page to Consent to Amendment No. 1 to Warrant

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