Document:

Form of Common Stock Purchase Warrant

 Exhibit 4.7 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER EITHER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE
DISTRIBUTED FOR VALUE UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND SUCH LAWS COVERING SUCH SECURITIES, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY STATING THAT SUCH SALE, TRANSFER,
ASSIGNMENT, OFFER, PLEDGE OR OTHER DISTRIBUTION FOR VALUE IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT AND SUCH LAWS. 
 FORM OF WARRANT 
 TO PURCHASE
             SHARES OF COMMON STOCK 
 OF 
 Antares Pharma, Inc. 
 THIS CERTIFIES
THAT, for good and valuable consideration,              (the “Agent”), or its registered assigns, is entitled to subscribe for and purchase from Antares Pharma, Inc., a
Minnesota corporation (the “Company”), at any time after the date hereof up to and including 5:00 p.m. Exton, Pennsylvania time on             
            ,              (the “Expiration Date”)
             fully paid and nonassessable shares of Common Stock, par value $.01, of the Company at a price of
$             per share (the “Warrant Exercise Price”), subject to the antidilution provisions of this Warrant. The shares which may be acquired upon exercise of this
Warrant are referred to herein as the “Warrant Shares.” As used herein, the term “Holder” means the Agent, any party who acquires all or a part of this Warrant as a registered transferee of the Agent, or any record holder or
holders of the Warrant Shares issued upon exercise, whether in whole or in part, of the Warrant. 
 This Warrant is subject to the following
provisions, terms and conditions: 
 1. Exercise: Transferability. 
 (a) Subject to the provisions of Section 3 hereof, the rights represented by this Warrant may be exercised by the Holder hereof, in whole or in part
(but not as to a fractional share of Common Stock), by written notice of exercise (in the form attached hereto) delivered to the Company at the principal office of the Company prior to the Expiration Date and accompanied or preceded by the surrender
of this Warrant along with a check in payment of the Warrant Exercise Price for such shares. 
 (b) This Warrant is immediately assignable,
notwithstanding anything herein to the contrary, to officers, directors, employees, registered representatives and sub-agents of Brown Simpson Asset Management, LLC. Each successive holder of this Warrant, or of any portion of the rights represented
thereby, shall be bound by the terms and conditions set forth herein. 

 (c) Notwithstanding anything herein to the contrary, in no event shall the Holder be entitled to exercise
any portion of this Warrant in excess of that portion of this Warrant upon exercise of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its Affiliates (other than shares of Common Stock which may be
deemed beneficially owned through the ownership of the unexercised portion of the Warrant or the unexercised or unconverted portion of any other security of the Holder subject to a limitation on conversion analogous to the limitations contained
herein) and (2) the number of shares of Common Stock issuable upon the exercise of the portion of this Warrant with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its
Affiliates of more than 9.99% of the then outstanding shares of Common Stock. As used herein, the term “Affiliate” means any person or entity that, directly or indirectly through one or more intermediaries, controls or is controlled by or
is under common control with a person or entity, as such terms are used in and construed under Rule 144 under the Securities Act. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section B(d) of the Securities Exchange Act of 1934, as amended, and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The Holder may waive the limitations set forth herein by sixty-one
(61) days written notice to the Company. 
 2. Exchange and Replacement. Subject to Sections 1 and 7 hereof, this Warrant is
exchangeable upon the surrender hereof by the Holder to the Company at its office for new Warrants of like tenor and date representing in the aggregate the right to purchase the number of Warrant Shares purchasable hereunder, each of such new
Warrants to represent the right to purchase such number of Warrant Shares (not to exceed the aggregate total number purchasable hereunder) as shall be designated by the Holder at the time of such surrender. Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction, or mutilation of this Warrant, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and upon surrender and cancellation of this Warrant, if
mutilated, the Company will make and deliver a new Warrant of like tenor, in lieu of this Warrant; provided, however, that if the Agent shall be such Holder, an agreement of indemnity by such Holder shall be sufficient for all purposes of this
Section 2. This Warrant shall be promptly canceled by the Company upon the surrender hereof in connection with any exchange or replacement. The Company shall pay all expenses, taxes (other than stock transfer taxes), and other charges payable
in connection with the preparation, execution, and delivery of Warrants pursuant to this Section 2. 
 3. Issuance of the Warrant
Shares. 
 (a) The Company agrees that the Warrant Shares purchased upon the exercise hereof shall be and are deemed to be issued to the
Holder as of the close of business on the date on which this Warrant shall have been surrendered and the payment made for such Warrant Shares as aforesaid. Subject to the provisions of the next section, certificates for the Warrant Shares so
purchased shall be delivered to the Holder within a reasonable time, not exceeding fifteen (15) days after the rights represented by this Warrant shall have been so exercised, and, unless this Warrant has expired, a new Warrant representing the
right to purchase the number of Warrant Shares, if any, with respect to which this Warrant shall not then have been exercised shall also be delivered to the Holder within such time. 
 (b) Notwithstanding the foregoing, however, the Company shall not be required to deliver any certificate for Warrant Shares upon exercise of this Warrant
except in accordance with exemptions from the applicable securities registration requirements or registrations under applicable securities laws. Such Holder shall 

 
also provide the Company with written representations from the Holder and the proposed transferee satisfactory to the Company regarding the transfer or, at
the election of the Company, an opinion of counsel reasonably satisfactory to the Company to the effect that the proposed transfer of this Warrant or disposition of shares may be effected without registration or qualification (under any Federal or
State law) of this Warrant or the Warrant Shares. Upon receipt of such written notice and either such representations or opinion by the Company, such Holder shall be entitled to transfer this Warrant, or to exercise this Warrant in accordance with
its terms and dispose of the Warrant Shares, all in accordance with the terms of the notice delivered by such Holder to the Company, provided that an appropriate legend, if any, respecting the aforesaid restrictions on transfer and disposition may
be endorsed on this Warrant or the certificates for the Warrant Shares. Nothing herein, however, shall obligate the Company to effect registration under federal or state securities laws. If a registration is not in effect and if an exemption is not
available when the Holder seeks to exercise the Warrant, the Warrant exercise period will be extended, if need be, to prevent the Warrant from expiring, until such time as either registration become effective or an exemption is available, and the
Warrant shall then remain exercisable for a period of at least thirty (30) calendar days from the date the Company delivers to the Holder written notice of the availability of such registration or exemption. The Holder agrees to execute such
documents and make such representations, warranties, and agreements as may be required solely to comply with the exemption relied upon by the Company, or the registration made, for the issuance of the Warrant Shares. 
 4. Covenants of the Company. The Company covenants and agrees that all Warrant Shares will, upon issuance, be duly authorized and issued, fully
paid, nonassessable, and free from all taxes, liens, and charges with respect to the issue thereof except for all taxes, liens and charges imposed by the Holder. The Company further covenants and agrees that during the period within which the rights
represented by this Warrant may be exercised, the Company will at all times have authorized and reserved for the purpose of issue or transfer upon exercise of the subscription rights evidenced by this Warrant a sufficient number of shares of Common
Stock to provide for the exercise of the rights represented by this Warrant. 
 5. Antidilution Adjustment. The provisions of this
Warrant are subject to adjustment as provided in this Section 5. 
 (a) The Warrant Exercise Price shall be adjusted from time to time
such that in case the Company shall hereafter: 
  

	 	(i)	pay any dividends on any class of stock of the Company payable in shares of the Company’s common stock or securities convertible into the Company’s Common Stock;

  

	 	(ii)	subdivide its then outstanding shares of Common Stock into a greater number of shares; or 

  

	 	(iii)	combine outstanding shares of Common Stock, by reclassification or otherwise; 

 then, in any such event, the Warrant Exercise Price in effect immediately prior to such event shall (until adjusted again pursuant hereto) be adjusted immediately after such event to a price (calculated to the nearest full cent) determined
by dividing (a) the number of shares of Common Stock outstanding immediately prior to such event, multiplied by the then existing Warrant Exercise Price, by (b) the total number of shares of Common Stock outstanding immediately after such
event (including the maximum number of shares of Common Stock issuable in respect of any securities convertible into Common Stock), and the resulting quotient shall be the adjusted Warrant 

 
Exercise Price per share. An adjustment made pursuant to this Subsection shall become effective immediately after the record date in the case of a dividend
or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification. If, as a result of an adjustment made pursuant to this Subsection, the Holder of any Warrant thereafter
surrendered for exercise shall become entitled to receive shares of two or more classes of capital stock and other capital stock of the Company, the Board of Directors (whose determination shall be conclusive) shall reasonably determine the
allocation of the adjusted Warrant Exercise Price between or among shares of such classes of capital stock and other capital stock. All calculations under this Subsection shall be made to the nearest cent or to the nearest 1/100 of a share, as the
case may be. In the event that at any time as a result of an adjustment made pursuant to this Subsection, the Holder of any Warrant thereafter surrendered for exercise shall become entitled to receive any shares of the Company, thereafter the
Warrant Exercise Price of such other shares so receivable upon exercise of any Warrant shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions contained in this Section 5.

 (b) Upon each adjustment of the Warrant Exercise Price pursuant to Section 5(a) above, the Holder of each Warrant shall thereafter
(until another such adjustment) be entitled to purchase at the adjusted Warrant Exercise Price the number of shares, calculated to the nearest full share, obtained by multiplying the number of shares specified in such Warrant (as adjusted as a
result of all adjustments in the Warrant Exercise Price in effect prior to such adjustment) by the Warrant Exercise Price in effect prior to such adjustment and dividing the product so obtained by the adjusted Warrant Exercise Price. 
 (c) In case of any consolidation or merger to which the Company is a party other than a merger or consolidation in which the Company is the continuing
corporation, or in case of any sale or conveyance to another corporation of the property of the Company as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any
exchange effected in connection with a merger of a third corporation into the Company), there shall be no adjustment under Subsection (a) of this Section but the Holder of each Warrant then outstanding shall have the right thereafter to convert
such Warrant into the kind and amount of shares of stock and other securities and property which such Holder would have owned or have been entitled to receive immediately after such consolidation, merger, statutory exchange, sale, or conveyance had
such Warrant been converted immediately prior to the effective date of such consolidation, merger, statutory exchange, sale, or conveyance and in any such case, if necessary, appropriate adjustment shall be made in the application of the provisions
set forth in this Section with respect to the rights and interests thereafter of any Holders of the Warrant, to the end that the provisions set forth in this Section shall thereafter correspondingly be made applicable, as nearly as may reasonably
be, in relation to any shares of stock and other securities and property thereafter deliverable on the exercise of the Warrant. The provisions of this Subsection shall similarly apply to successive consolidations, mergers, statutory exchanges, sales
or conveyances. 
 (d) Upon any adjustment of the Warrant Exercise Price, then and in each such case, the Company shall within ten
(10) days after the date when the circumstances giving rise to the adjustment occurred give written notice thereof, by first-class mail, postage prepaid, addressed to the Holder as shown on the books of the Company, which notice shall state the
Warrant Exercise Price resulting from such adjustment and the increase or decrease, if any, in the number of shares of Common Stock purchasable at such price upon the exercise of this Warrant, setting forth in reasonable detail the method of
calculation and the facts upon which such calculation is based. 
 6. No Voting Rights. This Warrant shall not entitle the Holder to
any voting rights or other rights as a shareholder of the Company. 

 7. Notice of Transfer of Warrant or Resale of the Warrant Shares. 
 (a) Subject to the sale, assignment, hypothecation, or other transfer restrictions set forth in Section 1 hereof, the Holder, by acceptance hereof,
agrees to give written notice to the Company before transferring this Warrant or transferring any Warrant Shares of such Holder’s intention to do so, describing briefly the manner of any proposed transfer. Promptly upon receiving such written
notice, the Company shall present copies thereof to the Company’s counsel and to counsel to the original purchaser of this Warrant. If in the opinion of each such counsel the proposed transfer may be effected without registration or
qualification (under any federal or state securities laws), the Company, as promptly as practicable, shall notify the Holder of such opinion, whereupon the Holder shall be entitled to transfer this Warrant or to dispose of Warrant Shares received
upon the previous exercise of this Warrant, all in accordance with the terms of the notice delivered by the Holder to the Company; provided that an appropriate legend may be endorsed on this Warrant or the certificates for such Warrant Shares
respecting restrictions upon transfer thereof necessary or advisable in the opinion of counsel to the Company and satisfactory to the Company to prevent further transfers which would be in violation of Section 5 of the Securities Act of 1933,
as amended (the “1933 Act”), and applicable state securities laws; and provided further that the Holder and prospective transferee or purchaser shall execute such documents and make such representations, warranties, and agreements as may
be required solely to comply with the exemptions relied upon by the Company for the transfer or disposition of the Warrant or Warrant Shares. 
 (b) If in the opinion of either of the counsel referred to in this Section 7, the proposed transfer or disposition of this Warrant or such Warrant Shares described in the written notice given pursuant to this Section 7 may not be
effected without registration or qualification of this Warrant or such Warrant Shares the Company shall promptly give written notice thereof to the Holder, and the Holder will limit its activities in respect to such as, in the opinion of both such
counsel, are permitted by law. 
 8. Fractional Shares. Fractional shares shall not be issued upon the exercise of this Warrant, but
in any case where the Holder would, except for the provisions of this Section, be entitled under the terms hereof to receive a fractional share, the Company shall, upon the exercise of this Warrant for the largest number of whole shares then called
for, pay a sum in cash equal to the sum of (a) the excess, if any, of the Fair Market Value (as defined in Section l0(d)) of such fractional share over the proportional part of the Warrant Exercise Price represented by such fractional share,
plus (b) the proportional part of the Warrant Exercise Price represented by such fractional share. 
 9. Miscellaneous. Whenever
reference is made herein to the issue or sale of shares of Common Stock, the term “Common Stock” shall include any stock of any class of the Company other than preferred stock with a fixed limit on dividends and a fixed amount payable in
the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company. 
 The Company will not, by amendment of its
Articles of Incorporation or through reorganization, consolidation, merger, dissolution or sale of assets, or by any other voluntary act or deed, avoid or seek to avoid the observance or performance of any of the covenants, stipulations or
conditions to be observed or performed hereunder by the Company, but will, at all times in good faith, assist, insofar as it is able, in the carrying out of all provisions hereof and in the taking of all other action which may be necessary in order
to protect the rights of the Holder hereof against dilution. 

 Upon request of the Agent, the Company shall provide Agent with detailed quarterly and annual financial
statements as soon as available, in a form reasonably satisfactory to Agent, as well as any other documents as Agent or its counsel may reasonably request in a form satisfactory to Agent, so long as this Warrant or any Warrant Shares are outstanding
and unregistered. 
 The representations, warranties and agreements herein contained shall survive the exercise of this Warrant. References
to the “holder of” include the immediate holder of shares purchased on the exercise of this Warrant, and the word “holder” shall include the plural thereof. This Warrant shall be interpreted under the laws of the State of
Minnesota. 
 All shares of Common Stock or other securities issued upon the exercise of the Warrant shall be validly issued, fully paid and
non-assessable, and the Company will pay all taxes due and payable by the issuer in respect of the issuance thereof. 
 Notwithstanding
anything contained herein to the contrary, the holder of this Warrant shall not be deemed a shareholder of the Company for any purpose whatsoever until and unless this Warrant is duly exercised. 
 Neither this Warrant nor any term hereof may be changed, waived, discharged or terminated orally but only by an instrument in writing signed by the part
against which enforcement of the change, waiver, discharge or termination is sought. 
 IN WITNESS WHEREOF, Antares Pharma, Inc. has caused
this Warrant to be signed by its duly authorized officer and this Warrant to be dated                          ,
            . 
  

			
	ANTARES PHARMA, INC.
		
	By:	 	  

 To: Antares Pharma, Inc. 
  

			
	NOTICE OF EXERCISE OF WARRANT -	 	To Be Executed by the Registered Holder in Order to Exercise the Warrant

 The undersigned hereby irrevocably elects to exercise the attached Warrant to purchase for cash,
                     of the shares issuable upon the exercise of such Warrant, and requests that certificates for such shares (together with a
new Warrant to purchase the number of shares, if any, with respect to which this Warrant is not exercised) shall be issued in the name of 
  

									
				
		 		 		 	  
		 		 		 		 	 (Print Name)

				
	 Please insert social security
 or other identifying number
 of registered Holder of
 certificate
(                    )
	 		 		 	Address:
				
		 		 		 	  
				
		 		 		 	  
				
	Dated:                     	 		 		 	  
		 		 		 		 	Signature*

  

	*	The signature on the Notice of Exercise of Warrant must correspond to the name as written upon the face of the Warrant in every particular without alteration or enlargement or any
change whatsoever. When signing on behalf of a corporation, partnership, trust or other entity, PLEASE indicate your position(s) and title(s) with such entity. 

 ASSIGNMENT FORM 
 To be signed only upon authorized transfer of Warrants. 
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto                      the right
to purchase the securities of Antares Pharma, Inc. to which the within Warrant relates and appoints                      attorney, To transfer
said right on the books of Antares Pharma, Inc. with full power of substitution in the premises. 
  

					
			
	Dated: ____________________	 		 	   
		 		 	(Signature)
			
		 		 	Address:
			
	 	 		 	   
			
	 	 		 	   

 Related Schedule of Holders and Other Terms 
  

												
	 Holder
	  	Date Issued	  	Expiration	  	Exercise
Price	  	Number of
Warrants	  	 
	 Sabbatical Ventures, LLC
	  	11/29/05	  	11/28/08	  	$	1.35	  	50,000	  	
	 Sabbatical Ventures, LLC
	  	10/15/03	  	10/14/06	  	$	1.82	  	83,333	  	
		  		  		  			  	 	  	
		  		  		  			  	133,333	  	
		  		  		  			  	 	  	
	 David C. Cavalier
	  	11/29/05	  	11/28/08	  	$	1.35	  	50,000	  	
	 David C. Cavalier
	  	10/15/03	  	10/14/06	  	$	1.82	  	83,333	  	
	 David C. Cavalier
	  	1/15/0004	  	01/14/07	  	$	1.10	  	83,333	  	
		  		  		  			  	 	  	
		  		  		  			  	216,666	  	
		  		  		  			  	 	  	
	 Alfred Mansour
	  	10/15/03	  	10/14/06	  	$	1.82	  	25,000	  	
	 Alfred Mansour
	  	1/15/04	  	01/14/07	  	$	1.10	  	25,000	  	
		  		  		  			  	 	  	
		  		  		  			  	50,000	  	
		  		  		  			  	 	  	
	 Alan Tuchman
	  	10/15/03	  	10/14/06	  	$	1.82	  	25,000	  	
	 Alan Tuchman
	  	1/15/04	  	01/14/07	  	$	1.10	  	25,000	  	
		  		  		  			  	 	  	
		  		  		  			  	50,000	  	
		  		  		  			  	 	  	
	 Richard Burgoon
	  	10/15/03	  	10/14/06	  	$	1.82	  	25,000	  	
	 Richard Burgoon
	  	1/15/04	  	01/14/07	  	$	1.10	  	25,000	  	
		  		  		  			  	 	  	
		  		  		  			  	50,000	  	
		  		  		  			  	 	  	
	 Anne K. Abramczyk
	  	11/29/05	  	11/28/08	  	$	1.35	  	5,000	  	
	 Anne K. Abramczyk
	  	10/15/03	  	10/14/06	  	$	1.82	  	8,334	  	
	 Anne K. Abramczyk
	  	1/15/04	  	01/14/07	  	$	1.10	  	8,334	  	
		  		  		  			  	 	  	
		  		  		  			  	21,668	  	
		  		  		  			  	 	  	
						
		  		  		  			  		  	Purchased from
Sabbatical Ventures,
LLC
	 Crestview Capital Master,L.L.C.
	  	1/15/04	  	1/14/2007	  	$	1.10	  	83,333	  	
	 Barry M. Pearl
	  	6/22/04	  	6/22/2009	  	$	1.00	  	80,000	  	
	 Neovest Trading, Inc.
	  	6/22/04	  	6/22/2009	  	$	1.00	  	20,000	  	
		  		  		  			  	 	  	
	 Total
	  		  		  			  	705,000Securities Purchase Agreement

 Exhibit 10.1 
 SECURITIES PURCHASE AGREEMENT 
 eDiets.com, Inc. 
 3801 W. Hillsboro Blvd. 
 Deerfield Beach, FL 33442 
 The undersigned (the “Investor”) hereby confirms its agreement with you as follows: 
 1. This Securities Purchase Agreement is made as of the date set forth below between eDiets.com, Inc., a Delaware corporation (the “Company”), and Prides Capital Fund I, L.P. (the
“Investor”). 
 2. Pursuant to the Terms and Conditions for Purchase of Securities, attached hereto as Annex I and
incorporated herein by reference as if fully set forth herein (the “Terms and Conditions”), the Company and the Investor agree that the Investor will purchase from the Company and the Company will issue and sell to the Investor, in
two private placements (the “Offerings”): 
 (a) 1,683,168 shares (the “Initial Shares”) of common stock of
the Company, $0.001 par value per share (the “Common Stock”), at a purchase price of $5.05 per Share, and a warrant (the “Initial Warrant”) in the form of Exhibit A to the Terms and Conditions to purchase up
to a number of shares (the “Initial Warrant Shares”) equal to 60% of the Initial Shares, which shall be exercisable on or after the six (6) month anniversary of the Original Issue Date of the Initial Warrant (as defined in the
Initial Warrant), have a term of exercise equal to five (5) years and have a strike price of $6.00 per share, for an aggregate purchase price of $8,499,998.40 (the “Initial Purchase Price”); and 
 (b) 297,030 shares (the “Subsequent Shares,” together with the Initial Shares, the “Shares”) of Common Stock, at a
purchase price of $5.05 per Share, and a warrant (the “Subsequent Warrant,” together with the Initial Warrant, the “Warrants”) in the form of Exhibit A to the Terms and Conditions to purchase up to a number
of shares (the “Subsequent Warrant Shares,” together with the Initial Warrant Shares, the “Warrant Shares” and together with the Shares, the “Securities”) equal to 60% of the Subsequent Shares,
which shall be exercisable on or after the six (6) month anniversary of the Original Issue Date of the Subsequent Warrant (as defined in the Subsequent Warrant), have a term of exercise equal to five (5) years and have a strike price of
$6.00 per share, for an aggregate purchase price of $1,500,001.50 (the “Subsequent Purchase Price,” together with the Initial Purchase Price, the “Purchase Price”). 
 Unless otherwise requested by the Investor as indicated in a certificate questionnaire substantially in the form of Exhibit B to the Terms and
Conditions, certificates representing the Shares and Warrants purchased by the Investor, respectively, will be registered in the Investor’s name and address as set forth below. 
 3. The Company and the Investor agree to enter into a registration rights agreement (the “Registration Rights Agreement”) and a voting agreement (the “Voting Agreement”) in the
forms of Exhibit C and Exhibit E, respectively, to the Terms and Conditions, each concurrently 

  

 1 

 
with the execution of this Securities Purchase Agreement (the Securities Purchase Agreement, the Registration Rights Agreement and the Voting Agreement,
collectively the “Agreements”). 
 4. The Investor represents that, except as set forth below, as of the date hereof (a) it has
had no position, office or other material relationship within the past three years with the Company or its affiliates, (b) it does not beneficially own (including the right to acquire or vote) any securities of the Company, and (c) it has
no direct or indirect affiliation or association with any National Association of Securities Dealers, Inc. (“NASD”) member. Exceptions: 
 (If no exceptions, write “none.” If left blank, response will be deemed to be “none.”) 
 [Remainder of Page Intentionally Left Blank.] 
  

 2 

 Please confirm that the foregoing correctly sets forth the agreement between us by signing below.

  

					
	 Dated as of: May 15, 2006

	
	 Prides Capital Fund I, L.P.

		
	 By:
	 	 /s/ Murray A. Indick

		 	 Name:
	 	 Murray A. Indick

		 	 Title:
	 	 Managing Member,

		 		 	 Prides Capital Partners, LLC

	
	 Address:

	 c/o Prides Capital Partners, LLC

	 200 High Street, Suite 700

	 Boston, MA 02110

	 Attention: Murray Indick

  

			
	 AGREED AND ACCEPTED:

	
	 eDiets.com, Inc.

		
	 By:
	 	 /s/ James A. Epstein

		 	 Name: James A. Epstein

		 	 Title: General Counsel

 [SECURITIES PURCHASE AGREEMENT SIGNATURE PAGE] 
  

 3 

 ANNEX I 
 TERMS AND CONDITIONS FOR PURCHASE OF SECURITIES 
 1. Agreement to Sell and Purchase the Securities. 
 1.1 Purchase and Sale. At the Closings (as defined in Section 5), the Company will sell to the Investor, and the Investor will purchase from the Company, upon the terms and subject to the conditions set
forth herein, and at the Purchase Price, the number of Shares and Warrants described in paragraph 2 of the Securities Purchase Agreement attached hereto (collectively with this Annex I and the other exhibits attached hereto, this
“Agreement”). 
 1.2 Placement Agent Fee. The Investor acknowledges that the Company intends to pay to
the Placement Agent a fee in respect of the sale of Shares and Warrants to the Investor. 
 2. Initial Closing. 
 2.1 The completion of the purchase and sale of the Initial Shares and Initial Warrants (the “Initial Closing”)
shall occur on a date mutually agreed by the Investor, the Company and the Placement Agent (the “Initial Closing Date”), which date shall not be later than May 15, 2006 (the “Initial Outside Date”). At
the Initial Closing, the Company shall deliver to the Investor one or more certificates representing the number of Initial Shares and Initial Warrants, respectively, set forth in paragraph 2(a) of the Securities Purchase Agreement, each such
certificate to be registered in the name of the Investor or, if so indicated on the Certificate Questionnaire, substantially in the form attached hereto as Exhibit B, in the name of a nominee designated by the Investor. In exchange for the
delivery of the certificates representing such Initial Shares and Initial Warrants, the Investor shall deliver the Initial Purchase Price to the Company by wire transfer of immediately available funds pursuant to the Company’s written
instructions. 
 2.2 The Company’s obligation to issue and sell the Initial Shares and Initial Warrants to the
Investor shall be subject to the following conditions, any one or more of which may be waived by the Company: 
 (a) prior receipt by the
Company of an executed copy of this Agreement; 
 (b) the accuracy in all material respects when made and on the Initial Closing Date of the
representations and warranties made by the Investor in this Agreement and the fulfillment of the obligations of the Investor to be fulfilled by it under this Agreement on or prior to the Initial Closing in all material respects; 
 (c) the execution and delivery by the Investor of the Registration Rights Agreement; 
 (d) receipt of the Initial Purchase Price; 
 (e) the execution and delivery by the Investor of a cross receipt, substantially in the form attached hereto as Exhibit H (the “Initial Cross Receipt”), evidencing receipt of the Initial Shares and Initial Warrants;

 (f) the execution and delivery by the Investor of the Voting Agreement; and 
  

 4 

 (g) the absence of any order, writ, injunction, judgment or decree that questions the validity of the
Agreements or the right of the Company or the Investor to enter into the Agreements or to consummate the transactions contemplated hereby and thereby. 
 2.3 The Investor’s obligation to purchase the Initial Shares and Initial Warrants shall be subject to the following conditions, any one or more of which may be waived by the Investor: 
 (a) the delivery to the Investor of a legal opinion, dated the Initial Closing Date, from counsel to the Company, substantially in the form attached
hereto as Exhibit G; 
 (b) the accuracy in all material respects of the representations and warranties made by the Company in this
Agreement on the date hereof and, if different, on the Initial Closing Date and the fulfillment of the obligations of the Company to be fulfilled by it under this Agreement on or prior to the Initial Closing in all material respects; 
 (c) the execution and delivery by the Company of the Registration Rights Agreement, 
 (d) the execution and delivery by the Company of the Voting Agreement; 
 (e) the fulfillment of the obligations of the Company to be fulfilled by it under this Agreement on or prior to the Initial Closing; 
 (f) the execution and delivery by the Company of the Initial Cross Receipt evidencing receipt of the Initial Purchase Price; 
 (g) the absence of any order, writ, injunction, judgment or decree that questions the validity of the Agreements or the right of the Company or the Investor to enter into such Agreements or to consummate the
transactions contemplated hereby and thereby; 
 (h) if permitted under the Nasdaq rules, the appointment by the Company to the
Company’s Board of the Directors (the “Board”) of two individuals designated by the Investor, who are willing and able to serve as directors and are reasonably acceptable to the Company, and the appointment by the Company of
one of such individuals to the Compensation Committee of the Board, to serve from and after the Initial Closing Date until a successor is duly elected and qualified; 
 (i) if the Nasdaq rules do not permit the appointment to the Board of two individuals designated by the investor at the Initial Closing, the appointment by the Company to the Board of one individual designated by the
Investor, who is willing and able to serve as a director and is reasonably acceptable to the Company, and the appointment by the Company of such individual to the Compensation Committee of the Board, to serve from and after the Initial Closing Date
until a successor is duly elected and qualified; and the appointment by the Investor of an observer to the Board, who shall have the right to receive notice of and attend all meetings of the Board until such time as the observer may be replaced by a
second individual designated by the Investor to serve as a director of the Company; 
 (j) the sale by David R. Humble of 2,712,864 shares of
Common Stock to the Investor in a private sale to occur simultaneously with the Initial Closing (the “First Humble Transaction”); and 
 (k) the delivery to the Investor by the Secretary or Assistant Secretary of the Company of a certificate stating that the conditions specified in this paragraph have been fulfilled. 
  

 5 

 2.4 In the event that the Initial Closing does not occur on or before the Initial
Outside Date as a result of the Company’s failure to satisfy any of the conditions set forth above (and such condition has not been waived by the Investor), the Company shall return any and all funds paid hereunder to the Investor no later than
one (1) Business Day following the Initial Outside Date and the Investor shall have no further obligations hereunder. For purposes of this Agreement, “Business Day” shall mean any day other than a Saturday, Sunday or other day
on which the New York Stock Exchange or commercial banks located in Boston, Massachusetts are permitted or required by law to close. 
 3.
Shareholder Approval. Promptly following the Initial Closing, the Company shall cause to be prepared and filed with the Commission a proxy or consent solicitation statement to obtain approval of the Company’s shareholders (the
“Shareholder Approval”) for: 
 (i) the sale by David R. Humble of 4,287,136 shares of Common Stock to the Investor in a
private sale to occur simultaneously with the Subsequent Closing (the “Second Humble Transaction” and together with the First Humble Transaction, the “Humble Transactions”); 
 (ii) the issuance and sale by the Company of the Subsequent Shares and the Subsequent Warrants to the Investor pursuant hereto; 
 (iii) any other matter set forth in the Agreements, the efficacy or effectiveness of which is contingent upon the receipt by the Company of the
Shareholder Approval; and 
 (iv) any other matter that the Investor reasonably requests to be presented to the Company’s shareholders
for approval in order to secure for the Investor the rights set forth in the Agreements to the fullest extent possible. 
 The Company shall
use its best efforts to cause such proxy or consent solicitation statement to be approved by the Securities and Exchange Commission (the “SEC”) and to obtain Shareholder Approval as promptly as practicable. If the Company fails to
hold a stockholder meeting within sixty (60) days (plus an additional number of days, if the proxy or consent solicitation statement is subject to SEC review, equal to the number of days commencing with the date the Company is notified by the
SEC of such review through, and including, the date that such review is completed and all SEC comments are fully and finally resolved) of the Initial Closing Date (the “Meeting Deadline Date”), the Company agrees to pay the Investor
$1,000,000 within two (2) Business Days of the Meeting Deadline Date. 
 4. HSR Act Filing. At such time as is mutually agreed by
the Investor and the Company, the Investor and the Company each will make or cause to be made, if required, an appropriate filing of a Notification and Report Form pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the
“HSR Act”). Each such filing will request early termination of the waiting period imposed by the HSR Act. The Company and the Investor each will use its reasonable best efforts to respond or cause a response to be made as promptly as
reasonably practicable to any inquires received from the Federal Trade Commission (the “FTC”) and the Antitrust Division of the Department of Justice (the “Antitrust Division”) for additional information or documentation and to
respond as promptly as reasonably practicable to all inquiries and requests received from any other governmental entity in connection with antitrust matters; provided, however, that nothing contained herein will be deemed to preclude either the
Company or the Investor from negotiating reasonably with any governmental entity regarding the scope and content of any such requested information or documentation. The Company and the Investor each will use their respective reasonable best efforts
to overcome any objections that may be raised by the FTC, the Antitrust Division or any other governmental entity having jurisdiction over antitrust matters. Notwithstanding the foregoing, neither the Company nor the Investor will be required to
make any significant change in the operations or activities of the business (or any material assets 

  

 6 

 
employed therein) of the Investor or any of its affiliates, or the Company or any of its affiliates, if the Investor or the Company determines in good faith
that such change would be materially adverse to the operations or activities of the business (or any material assets employed therein) of the Investor or any of its affiliates or the Company or any of its affiliates. The Company covenants and agrees
that it shall pay and all fees and expenses, including filing fees and fees and expenses of advisors, incurred in connection with this Section 4. 
 5. Subsequent Closing. Upon receipt of Shareholder Approval, the completion of the purchase and sale of the Subsequent Shares and Subsequent Warrants (the “Subsequent Closing,” together with
the Original Closing, the “Closings”) shall occur on a date mutually agreed by the Investor, the Company and the Placement Agent (the “Subsequent Closing Date”), which date shall not be later than the earlier
of two Business Days following receipt of the Shareholder Approval and 60 days following the Initial Closing Date (the “Subsequent Outside Date”). At the Subsequent Closing, the Company shall deliver to the Investor one or more
certificates representing the number of Subsequent Shares and Subsequent Warrants, respectively, set forth in paragraph 2(b) of the Securities Purchase Agreement, each such certificate to be registered in the name of the Investor or, if so indicated
on the Certificate Questionnaire, substantially in the form attached hereto as Exhibit B, in the name of a nominee designated by the Investor. In exchange for the delivery of the certificates representing such Subsequent Shares and Subsequent
Warrants, the Investor shall deliver the Subsequent Purchase Price to the Company by wire transfer of immediately available funds pursuant to the Company’s written instructions. 
 5.1 The Company’s obligation to issue and sell the Subsequent Shares and Subsequent Warrants to the Investor shall be subject
to the following conditions, any one or more of which may be waived by the Company: 
 (a) prior receipt by the Company of an executed copy
of this Agreement; 
 (b) the accuracy in all material respects when made and on the Subsequent Closing Date of the representations and
warranties made by the Investor in this Agreement and the fulfillment of the obligations of the Investor to be fulfilled by it under this Agreement on or prior to the Subsequent Closing in all material respects;  
 (c) the execution and delivery by the Investor of the Registration Rights Agreement; 
 (d) prior receipt by the Company of the Subsequent Purchase Price; 
 (e) the execution and delivery by the Investor of a cross receipt, substantially in the form attached hereto as Exhibit I (the “Subsequent Cross Receipt”), evidencing receipt of the Subsequent
Shares and Subsequent Warrants; 
 (f) the absence of any order, writ, injunction, judgment or decree that questions the validity of the
Agreements or the right of the Company or the Investor to enter into the Agreements or to consummate the transactions contemplated hereby and thereby; and 
 (g) the waiting period applicable to the Subsequent Closing under the HSR Act, if any, shall have expired or been earlier terminated. 
 5.2 The Investor’s obligation to purchase the Subsequent Shares and Subsequent Warrants shall be subject to the following
conditions, any one or more of which may be waived by the Investor: 
 (a) the delivery to the Investor of a legal opinion, dated the
Subsequent Closing Date, from counsel to the Company, substantially in the form attached hereto as Exhibit G; 
  

 7 

 (b) the accuracy in all material respects of the representations and warranties made by the Company in
this Agreement on the date hereof and, if different, on the Subsequent Closing Date; 
 (c) the execution and delivery by the Company of the
Registration Rights Agreement, 
 (d) the fulfillment of the obligations of the Company to be fulfilled by it under this Agreement on or
prior to the Subsequent Closing Date; 
 (e) the execution and delivery by the Company of the Subsequent Cross Receipt evidencing receipt of
the Subsequent Purchase Price; 
 (f) the absence of any order, writ, injunction, judgment or decree that questions the validity of the
Agreements or the right of the Company or the Investor to enter into such Agreements or to consummate the transactions contemplated hereby and thereby; 
 (g) the completion of the Second Humble Transaction, to occur simultaneously with the Subsequent Closing; 
 (h) the delivery to the Investor by the Secretary or Assistant Secretary of the Company of a certificate stating that the conditions specified in this paragraph have been fulfilled; and 
 (i) the waiting period applicable to the Subsequent Closing under the HSR Act, if any, shall have expired or been earlier terminated. 
 5.3 In the event that the Subsequent Closing does not occur on or before the Subsequent Outside Date as a result of the
Company’s failure to satisfy any of the conditions set forth above (and such condition has not been waived by the Investor), the Company shall return any and all funds paid hereunder to the Investor no later than one (1) Business Day
following the Subsequent Outside Date and the Investor shall have no further obligations hereunder. 
 6. Representations, Warranties and
Covenants of the Company. Except as otherwise described in (a) the Company’s Annual Report on Form 10-K for the year ended December 31, 2005 (and any amendments thereto filed at least two (2) Business Days prior to the date
hereof with the SEC, the Company’s Proxy Statement for its 2006 Annual Meeting of Shareholders (and any amendments thereto filed at least two Business Days prior to the date hereof) or any of the Company’s Current Reports on Form 8-K filed
since March 31, 2006 and at least two (2) Business Days prior to the date hereof (collectively, the “SEC Reports”) or (b) the disclosure schedules, if any, of the Company delivered concurrently herewith (the
“Disclosure Schedules”), the Company hereby represents and warrants to, and covenants with, the Investor as of the date hereof and the Closing Date, as follows: 
 6.1 Organization. The Company is duly incorporated and validly existing in good standing under the laws of the State of Delaware.
The Company has full power and authority to own, operate and occupy its properties and to conduct its business as presently conducted and is registered or qualified to do business and in good standing in each jurisdiction in which it owns or leases
property or transacts business and where the failure to be so qualified would have a material adverse effect upon the Company and its subsidiaries as a whole or the business, financial condition, prospects, properties, operations or assets of the
Company and its subsidiaries as a whole or the Company’s ability to perform its obligations under the Agreements in all material respects (“Material Adverse Effect”), and no 

  

 8 

 
proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing, or seeking to revoke, limit or curtail, such power and authority or
qualification. The Company has no “subsidiaries” (as defined in Rule 405 under the Securities Act of 1933, as amended (the “Securities Act”)), other than eDiets, Inc., eDiets, B.V.I, Inc. and eDiets, Europe Limited.

 6.2 Due Authorization. The Company has all requisite power and authority to execute, deliver and perform its
obligations under the Agreements. The execution and delivery of the Agreements, and the consummation by the Company of the transactions contemplated hereby, have been duly authorized by all necessary corporate action and no further action on the
part of the Company or the Board or shareholders is required. The Agreements have been validly executed and delivered by the Company and constitute legal, valid and binding agreements of the Company enforceable against the Company in accordance with
their terms, except to the extent (i) rights to indemnity and contribution may be limited by state or federal securities laws or the public policy underlying such laws, (ii) such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and (iii) such enforceability may be subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law). 
 6.3 Non-Contravention. The execution and delivery
of the Agreements, the issuance and sale of the Shares and Warrants to be sold by the Company under the Agreements, the fulfillment of the terms of the Agreements and the consummation of the other transactions contemplated thereby will not
(A) result in a conflict with, give rise to any payment or constitute a violation of, or default (with the passage of time or otherwise) under, (i) any bond, debenture, note or other evidence of indebtedness, or any material lease,
contract, indenture, mortgage, deed of trust, loan agreement, joint venture or other agreement or instrument to which the Company or any subsidiary (each, a “Subsidiary” and collectively, the “Subsidiaries”) is a
party or by which the Company or the Subsidiaries or their respective properties are bound, (ii) the Articles of Incorporation, by-laws or other organizational documents of the Company, as amended, or (iii) any law, administrative
regulation, ordinance or order of any court or governmental agency, arbitration panel or authority binding upon the Company or any Subsidiary or their respective properties or (B) result in the creation or imposition of any lien, encumbrance,
claim, security interest or restriction whatsoever upon any of the material properties or assets of the Company or the Subsidiaries or an acceleration of indebtedness pursuant to any obligation, agreement or condition contained in any material bond,
debenture, note or any other evidence of indebtedness or any material indenture, mortgage, deed of trust or any other agreement or instrument to which the Company or any Subsidiary is a party or by which it is bound or to which any of the property
or assets of the Company is subject; except in the case of each of A(i), A(iii) and B, such as would not reasonably be expected to result in a Material Adverse Effect. No consent, approval, authorization or other order of, or registration,
qualification or filing with, any regulatory body, administrative agency, or other governmental body is required for the execution and delivery of the Agreements by the Company and the valid issuance or sale of the Shares and Warrants by the Company
pursuant to the Agreements, other than such as have been made or obtained, and except for any filings required to be made under federal or state securities laws and exchange listing rules and requirements and as described in Section 4 hereof.

 6.4 Capitalization. The outstanding capital stock of the Company as of March 14, 2006 is as described in the
Company’s Annual Report on Form 10-K for the year ended December 31, 2005. The Company has not issued any capital stock since March 14, 2006 other than pursuant to the grant of equity compensation in the form of restricted shares
under the Company’s Equity Compensation Plan and the exercise of outstanding warrants or stock options, in each case as disclosed in the SEC Reports. The Shares to be sold pursuant to the Agreements have been duly authorized, and when issued
and paid for in accordance with the terms of the Agreements, will be duly and validly issued, fully paid 

  

 9 

 
and nonassessable, subject to no lien, claim or encumbrance (except for any such lien, claim or encumbrance created, directly or indirectly, by the
Investor). The outstanding shares of capital stock of the Company have been duly and validly issued and are fully paid and nonassessable, have been issued in compliance with the registration requirements of federal and state securities laws, and
were not issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. The Company owns all of the outstanding capital stock of each Subsidiary, free and clear of all liens, claims and encumbrances. There
are no outstanding rights (including, without limitation, preemptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any unissued shares of capital stock or other equity interest in the Company or any
Subsidiary, or any contract, commitment, agreement, understanding or arrangement of any kind to which the Company or any Subsidiary is a party and providing for the issuance or sale of any capital stock of the Company or of any Subsidiary, any such
convertible or exchangeable securities or any such rights, warrants or options. Without limiting the foregoing, no preemptive right, co-sale right, registration right, right of first refusal or other similar right exists with respect to the issuance
and sale of the Shares, except as provided in the Agreements. There are no shareholders agreements, voting agreements or other similar agreements with respect to the Common Stock to which the Company is a party. 
 6.5 Legal Proceedings. There is no material legal or governmental proceeding pending, or to the knowledge of the Company,
threatened, to which the Company or any Subsidiary is a party or of which the business or property of the Company or any Subsidiary is subject that is required to be disclosed and that is not so disclosed in the SEC Reports. Neither the Company nor
any Subsidiary is subject to any injunction, judgment, decree or order of any court, regulatory body, administrative agency or other government body. 
 6.6 No Violations. Neither the Company nor any Subsidiary is in violation of its Certificate of Incorporation, bylaws or other organizational documents, as amended, or in violation of any law, administrative
regulation, ordinance or order of any court or governmental agency, arbitration panel or authority applicable to the Company, which violation, individually or in the aggregate, is reasonably likely to have a Material Adverse Effect, and neither the
Company nor any Subsidiary is in default (and there exists no condition which, with the passage of time or otherwise, would constitute a default) in the performance of any bond, debenture, note or any other evidence of indebtedness or any indenture,
mortgage, deed of trust or any other material agreement or instrument to which the Company or any Subsidiary is a party or by which the Company or such Subsidiary or their respective properties are bound, which default is reasonably likely to have a
Material Adverse Effect. 
 6.7 Governmental Permits, Etc. Each of the Company and the Subsidiaries has all necessary
franchises, licenses, certificates and other authorizations from any foreign, federal, state or local government or governmental agency, department or body that are currently necessary for the operation of the business of the Company and the
Subsidiaries as currently conducted, except where the failure to currently possess such franchises, licenses, certificates and other authorizations is not reasonably likely to have a Material Adverse Effect. 
 6.8 Intellectual Property. 
 (a) Except for matters which are not reasonably likely to have a Material Adverse Effect, (i) each of the Company and the Subsidiaries has ownership of, or a license or other legal right to use, all patents,
copyrights, trade secrets, trademarks, Internet domain names, customer lists, designs, manufacturing or other processes, computer software, systems, data compilation, research results or other proprietary rights used in the business of the Company
(collectively, “Intellectual Property”) and (ii) all of the Intellectual Property owned by the Company or by the Subsidiaries consisting of patents, registered trademarks and registered copyrights have been duly registered in,
filed in or issued by the United States 

  

 10 

 
Patent and Trademark Office, the United States Register of Copyrights or the corresponding offices of other jurisdictions and have been maintained and
renewed in accordance with all applicable provisions of law and administrative regulations in the United States and/or such other jurisdictions. 
 (b) Except for matters which are not reasonably likely to have a Material Adverse Effect, all material licenses or other material agreements under which (i) the Company or any Subsidiary employs rights in
Intellectual Property, or (ii) the Company or any Subsidiary has granted rights to others in Intellectual Property owned or licensed by the Company or any Subsidiary are in full force and effect, there is no default by the Company with respect
thereto, and the consummation of the transactions contemplated by the Agreements will not result in any default, change or acceleration of any obligations under any such licenses or agreements. 
 (c) The Company believes that it has taken all steps reasonably required in accordance with sound business practice and business judgment
to establish and preserve the ownership of all material Intellectual Property owned by the Company or any Subsidiary. 
 (d)
Except for matters which are not reasonably likely to have a Material Adverse Effect, to the knowledge of the Company, (i) the present business, activities and products of the Company or any Subsidiary do not infringe any intellectual property
of any other person; (ii) neither the Company nor any Subsidiary has misappropriated or is making unauthorized use of any confidential information or trade secrets of any person; and (iii) the activities of any of the employees of the
Company or any Subsidiary, acting on behalf of the Company or such Subsidiary, do not violate any agreements or arrangements related to confidential information or trade secrets of third parties. 
 (e) No proceedings are pending, or to the knowledge of the Company, threatened, which challenge the rights of the Company or any
Subsidiary to the use of Intellectual Property, except for matters which are not reasonably likely to have a Material Adverse Effect. 
 (f) Except for matters which are not reasonably likely to have a Material Adverse Effect, to the knowledge of the Company, no third parties are infringing upon or misappropriating any Intellectual Property owned by
the Company or any Subsidiary. 
 (g) To the knowledge of the Company, all software, databases, systems, networks and Internet
sites used by the Company or any subsidiary are free from any material defect, bug, Trojan Horse, malware, spyware or viruses or other programming design or corruptant. The Company and all of its subsidiaries have taken all reasonably necessary
actions to protect the confidentiality, integrity and security of their software, databases, systems, networks and Internet sites, and all information stored or contained therein or transmitted thereby from any unauthorized use, access, interruption
or modification by third parties. The Company and its subsidiaries fully comply in all material respects with all relevant laws and regulations and with their own respective policies with respect to the privacy of all users and customers and any of
their personally identifiable information, and no claims have been asserted or threatened in writing against the Company or any of its subsidiaries alleging a violation of any of the foregoing. 
 6.9 Financial Statements. The financial statements of the Company and the related notes contained in the SEC Reports present fairly
and accurately in all material respects the financial position of the Company as of the dates therein indicated, and the results of its operations, cash flows and the changes in shareholders’ equity for the periods therein specified, subject,
in the case of unaudited financial statements for interim periods, to normal year-end audit adjustments. Such financial statements (including the related notes) have been prepared in accordance with generally accepted accounting principles applied
on a consistent basis at the times and throughout the periods therein specified, except 

  

 11 

 
that unaudited financial statements may not contain all footnotes required by generally accepted accounting principles. 
 6.10 No Material Adverse Change. Except as disclosed in the SEC Reports, in any press releases issued by the Company at least two
(2) Business Days prior to the date of this Agreement, or disclosed directly to the Investor by the Company at least two (2) Business Days prior to the date of this Agreement, since March 31, 2006, there has not been (i) an
event, circumstance or change that has had or is reasonably likely to have a Material Adverse Effect, (ii) any obligation incurred by the Company or any Subsidiary, direct or contingent, that is material to the Company, (iii) any dividend
or distribution of any kind declared, paid or made on the capital stock of the Company, or (iv) any loss or damage (whether or not insured) to the physical property of the Company or any Subsidiary which has had a Material Adverse Effect.

 6.11 Nasdaq Compliance. The Company’s Common Stock is registered pursuant to Section 12(g) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is listed on the Nasdaq Capital Market (the “Nasdaq Stock Market”), and the Company has taken no action intended to, or which to its knowledge could
have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the Nasdaq Stock Market. The issuance of the Shares does not require shareholder approval, including, without limitation,
pursuant to Nasdaq Marketplace Rule 4350(i). 
 6.12 Reporting Status. The Company has timely made all filings required
under the Exchange Act during the twelve (12) months preceding the date of this Agreement, and all of those documents complied in all material respects with the SEC’s requirements as of their respective filing dates, and the information
contained therein as of the respective dates thereof did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances
under which they were made not misleading. The Company is currently eligible to register the resale of Common Stock by the Investors pursuant to a registration statement on Form S-3 under the Securities Act (the “Registration
Statement”). 
 6.13 No Manipulation; Disclosure of Information. The Company has not taken and will not take
any action designed to or that might reasonably be expected to cause or result in an unlawful manipulation of the price of the Common Stock to facilitate the sale or resale of the Securities. 
 6.14 Accountants. Ernst & Young, LLP, who expressed their opinion with respect to the consolidated financial statements
contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2005 into the Registration Statement, have advised the Company that they are, and to the knowledge of the Company they are, an independent registered
public accounting firm as required by the Securities Act and the rules and regulations promulgated thereunder. 
 6.15
Contracts. Except for matters which are not reasonably likely to have a Material Adverse Effect and those contracts that are substantially or fully performed or expired by their terms, (i) the contracts listed as exhibits to or described in
the SEC Reports that are material to the Company and (ii) the Product Services and Supply Agreement dated as of May 12, 2006 between the Company and PurFoods LLC, and all amendments thereto, are in full force and effect on the date hereof,
and neither the Company nor, to the Company’s knowledge, any other party to such contracts is in breach of or default under any of such contracts. 
 6.16 Taxes. Except for matters which are not reasonably likely have a Material Adverse Effect, each of the Company and the Subsidiaries has filed all necessary federal, state and foreign income and franchise
tax returns and has paid or accrued all taxes shown as due thereon, and the 

  

 12 

 
Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company or any Subsidiary. 
 6.17 Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other than income taxes) which are required to be paid
in connection with the sale and transfer of the Shares hereunder will be, or will have been, fully paid or provided for by the Company and the Company will have complied with all laws imposing such taxes. 
 6.18 Investment Company. The Company is not an “investment company” or an “affiliated person” of, or
“promoter” or “principal underwriter” for an investment company, within the meaning of the Investment Company Act of 1940, as amended, and will not be deemed an “investment company” as a result of the transactions
contemplated by this Agreement. 
 6.19 Insurance. Each of the Company and the Subsidiaries maintains insurance of the
types and in the amounts that the Company reasonably believes is adequate for its businesses, including, but not limited to, insurance covering real and personal property owned or leased by the Company or any Subsidiary against theft, damage,
destruction, acts of vandalism and all other risks customarily insured against by similarly situated companies, all of which insurance is in full force and effect. 
 6.20 Offering Prohibitions. Neither the Company nor any person acting on its behalf or at its direction has in the past or will in
the future take any action to sell, offer for sale or solicit offers to buy any securities of the Company which would bring the offer or sale of the Securities as contemplated by this Agreement within the provisions of Section 5 of the
Securities Act. Assuming the accuracy of the representations and warranties of Investor contained in this Agreement, the offer, sale and issuance of the Securities will be exempt from the registration requirements of the Securities Act and will have
been registered or qualified (or are exempt from registration and qualification) under the registration, permit or qualification requirements of all applicable state securities laws. 
 6.21 Listing. The Company shall comply with all requirements of the NASD with respect to the issuance of the Shares and Warrant
Shares and the listing thereof on the Nasdaq Stock Market. 
 6.22 Related Party Transactions. Except for (i) the
transactions described and contemplated by the securities purchase agreement dated the date hereof between David R. Humble and the Investor and the related agreements provided for therein, (ii) the transactions described and contemplated by the
Agreements; and (iii) as disclosed in the SEC Reports, to the knowledge of the Company, no transaction has occurred between or among the Company or any of its affiliates, officers or directors or any affiliate or affiliates of any such officer
or director that is required to be disclosed pursuant to Section 13, 14 or 15(d) of the Exchange Act. 
 6.23 Books
and Records. The books, records and accounts of the Company accurately and fairly reflect, in reasonable detail, the transactions in, and dispositions of, the assets of, and the operations of, the Company. The Company maintains a system of
internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific
authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
  

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 6.24 Proxy Statement. The proxy statement or consent solicitation statement to be
sent to the stockholders of the Company in connection with obtaining Shareholder Approval (such statement, as amended or supplemented, being referred to herein as the “Statement”), shall not, at the date the Statement (or any
amendment or supplement thereto) is first mailed to stockholders of the Company, at the time of the meeting or vote to obtain the Shareholder Approval or at the Subsequent Closing, contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not false or misleading or necessary to correct any statement in any earlier communication
with respect to the solicitation of proxies which shall have become false or misleading. 
 6.25 Employee Matters. With
respect to the Benefit Plans, to the knowledge of the Company, no event has occurred and no condition or set of circumstances exist, in connection with which the Company could be subject to any material liability that would have a material adverse
effect on it or its business under ERISA, the United States Internal Revenue Code of 1986, as amended, or any other applicable law. The term “Benefit Plan” means each “employee benefit plan” (within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), including, without limitation, multiemployer plans within the meaning of Section 3(37) of ERISA), and all stock purchase, stock
option, severance, employment, change-in-control, fringe benefit, collective bargaining, bonus, incentive, deferred compensation, employee loan and all other employee benefit plans, agreements, programs, policies or other arrangements, whether or
not subject to ERISA, under which (i) any current or former employee, director or consultant of the Company or its subsidiaries has any present or future right to benefits and which are contributed to, sponsored by or maintained by the Company
or any of its respective subsidiaries or (ii) the Company or any of its respective subsidiaries has had or has any present or future liability. The transactions contemplated by this Agreement will not result in any severance, change of control
or termination pay or termination benefits or otherwise require the Company to make any cash payments to any of its directors, officers, employees or other affiliates. 
 6.26 Board Approval. The Board has (i) determined that the transactions contemplated by this Agreement and the Humble
Transactions, are fair to, and in the best interests of, the holders of Common Stock of the Company, (ii) approved, adopted and declared advisable this Agreement, the Humble Transactions, and the transactions contemplated hereby involving
Investor (such approval and adoption having been made in accordance with the Delaware General Corporation Law (the “DGCL”), including, without limitation, Section 203 thereof), (iii) approved Investor and its affiliates
becoming a holder of 15% or more of the Company’s outstanding voting stock for purposes of Section 203 of the DGCL and (iv) resolved to recommend that the holders of Shares approve and adopt this Agreement and the Humble Transactions.

 6.27 Rights Plan. The Company is not party to any contract or agreement with respect to, and does not maintain any,
stockholders rights plan, poison pill or similar agreement, plan or arrangement with respect to its Common Stock or any other capital stock of the Company. 
 6.28 Board Designee. In the event that as of the Initial Closing Date the Board consists of only one designee of the Investor pursuant to Section 2.3(i) hereof, the Company covenants and agrees to use its
reasonable best efforts to obtain Nasdaq approval of the designation by Investor of a second appointee to the Board as promptly as practicable upon failure to obtain Shareholder Approval pursuant to Section 3, and in any event by the Meeting
Deadline Date. The Company agrees to pay all reasonable fees and expenses, including attorneys’ fees, in connection with obtaining such approval. 
  

 14 

 7. Representations, Warranties and Covenants of the Investor. 
 7.1 Investor Knowledge and Status. The Investor represents and warrants to, and covenants with, the Company that: 
 (i) the Investor was at the time it was offered the Securities, is as of the date hereof and of the Closings and will be on each date it exercises any
Warrants an “accredited investor” as defined in Regulation D under the Securities Act, is knowledgeable, sophisticated and experienced in making, and is qualified to make decisions with respect to, investments in securities presenting an
investment decision similar to that involved in the purchase of the Securities, and has requested, received, reviewed and considered all information it deemed relevant in making an informed decision to purchase the Securities and is able to bear the
economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment; 
 (ii) the
Investor understands that the Securities are “restricted securities” and have not been registered under the Securities Act and is acquiring the number of Securities set forth in paragraph 2 of the Securities Purchase Agreement in the
ordinary course of its business and for its own account for investment only, has no present intention of distributing any of such Securities and has no arrangement or understanding with any other persons regarding the distribution of such Securities
(this representation and warranty not limiting the Investor’s right to sell Securities pursuant to a Registration Statement filed under the Registration Rights Agreement or otherwise, or other than with respect to any claim arising out of a
breach of this representation and warranty, the Investor’s right to indemnification under Section 3 of the Registration Rights Agreement); 
 (iii) the Investor will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose (each a “Disposition”) of (or solicit any offers to buy, purchase or otherwise acquire or take a
pledge of) any of the Securities except in compliance with the Securities Act, applicable state securities laws and the respective rules and regulations promulgated thereunder; 
 (iv) the Investor has answered all questions in paragraph 4 of the Securities Purchase Agreement and the Investor Questionnaire attached hereto as
Exhibit F for use in preparation of the Registration Statement and for determining the availability of state “Blue Sky” exemptions and the answers thereto are true and correct as of the date hereof and will be true and correct as of
the Closing Date; 
 (v) the Investor will notify the Company promptly of any change in any of such information until such time as the
Investor has sold all of its Securities or until the Company is no longer required to keep the Registration Statement effective; 
 (vi) the
Investor acknowledges that it has reviewed the materials presented to the Investor in connection with the Offerings and has been afforded (A) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities; (B) access to information about the Company and the Subsidiaries and their respective
financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (C) the opportunity to obtain such additional information that the Company possesses or can
acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment; and 
 (vii) the Investor has, in connection with its decision to purchase the number of Securities set forth in paragraph 2 of the Securities Purchase Agreement, relied upon the representations and warranties of the Company contained herein and
the information contained in the SEC Reports. 
  

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 The Investor understands that the issuance of the Securities to the Investor has not been
registered under the Securities Act, or registered or qualified under any state securities law, in reliance on specific exemptions therefrom, which exemptions may depend upon, among other things, the representations made by the Investor in this
Agreement. No person (including without limitation the Placement Agent) is authorized by the Company to provide any representation that is inconsistent with or in addition to those contained herein or in the SEC Reports, and the Investor
acknowledges that it has not received or relied on any such representations. 
 7.2 Power and Authority. The Investor
represents and warrants to the Company that (i) the Investor is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, power, authority and capacity to enter into
the Agreements and to consummate the transactions contemplated thereby and has taken all necessary action to authorize the execution, delivery and performance of the Agreements, and (ii) the Agreements constitute valid and binding obligations
of the Investor enforceable against the Investor in accordance with their terms, except to the extent (1) rights to indemnity and contribution may be limited by state or federal securities laws or the public policy underlying such laws,
(2) such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and (3) such enforceability may be subject to
general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
 7.3 Short Position Prior to the Date Hereof. From the earlier of (i) thirty (30) days prior to the date hereof and (ii) the date the Investor learned of the Offering, neither the Investor nor any affiliate has directly
or indirectly established or agreed to establish any hedge, “put equivalent position” (as defined in Rule 16a-1 under the Exchange Act) or other position in the Common Stock that is outstanding on the Closing Date and that is designed to
or could reasonably be expected to lead to or result in a Disposition by the Investor or any other person or entity. For purposes hereof, a “hedge or other position” includes, without limitation, effecting any short sale or having in
effect any short position (whether or not such sale or position is against the box and regardless of when such position was entered into) or any purchase, sale or grant of any right (including, without limitation, any put or call option) with
respect to the Common Stock or with respect to any security (other than a broad-based market basket or index) that includes, relates to or derives any significant part of its value from the Common Stock. The Investor acknowledges that this
representation is made for the benefit of the Company. 
 7.4 Short Sales and Confidentiality After the Date Hereof.
The Investor covenants that neither it nor any affiliates acting on its behalf or pursuant to any understanding with it will execute any short sales during the period after the date the Investor learned of the Offering and ending at the time
that the transactions contemplated by this Agreement has been publicly disclosed following the Company’s announcement described in Section 9.2. The Investor covenants that until such time as the transactions contemplated by this
Agreement are publicly disclosed by the Company as described in 8.2, the Investor will maintain, the confidentiality of all disclosures made to it in connection with the Offering (including the existence and terms of the Offering). The Investor
understands and acknowledges that the SEC currently takes the position that coverage of short sales of shares of the Common Stock “against the box” prior to the effective date of the Registration Statement with the Securities is a
violation of Section 5 of the Securities Act, as set forth in Item 65, Section 5 under Section A, of the Manual of Publicly Available Telephone Interpretations, dated July 1997, compiled by the Office of Chief Counsel, Division of
Corporation Finance. Notwithstanding the foregoing, the Investor does not make any representation, warranty or covenant hereby that it will not engage in short sales in the securities of the Company after the time that the transactions contemplated
by this Agreement are first publicly disclosed as described in Section 9.2. 
  

 16 

 7.5 No Investment, Tax or Legal Advice. The Investor understands that nothing in
the SEC Reports, this Agreement, or any other materials presented to the Investor in connection with the purchase and sale of the Securities constitutes legal, tax or investment advice. The Investor has consulted such legal, tax and investment
advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of Securities. 
 7.6 Confidential Information. The Investor covenants that from the date hereof it will maintain in confidence all material non-public information regarding the Company received by the Investor from the Company, including the receipt
and content of any Suspension Notice (as defined in the Registration Rights Agreement)) until such information (a) becomes generally publicly available other than through a violation of this provision by the Investor or its agents or
(b) is required to be disclosed in legal proceedings (such as by deposition, interrogatory, request for documents, subpoena, civil investigation demand, filing with any governmental authority or similar process) or as otherwise required by law;
provided, however, that before making any disclosure in reliance on this Section 7.6, the Investor will give the Company at least fifteen (15) days prior written notice (or such shorter period as required by law) specifying the
circumstances giving rise thereto and will furnish only that portion of the non-public information which is legally required and will exercise its commercially reasonable efforts to ensure that confidential treatment will be accorded any non-public
information so furnished. The parties acknowledge and agree that as of the date hereof and as of the Closing Date, the Company has disclosed to the Investor the material non-public information described in Schedule 7.6 and that such information is
subject to this Section 7.6. 
 7.7 Acknowledgments Regarding Placement Agent. The Investor acknowledges that the
Placement Agent has acted solely as placement agent for the Company in connection with the Offerings of the Securities by the Company, and that the Placement Agent has made no representation or warranty whatsoever with respect to the accuracy or
completeness of information, data or other related disclosure material that has been provided to the Investor. The Investor further acknowledges that in making its decision to enter into this Agreement and purchase the Securities, it has relied on
its own examination of the Company and the terms of, and consequences of holding, the Securities. The Investor further acknowledges that the provisions of this Section 7.7 are for the benefit of, and may be enforced by, the Placement Agent.

 7.8 PATRIOT Act. The Investor represents and warrants to, and covenants with, the Company that: 
 (i) it is in compliance with Executive Order 13224 and the regulations administered by the U.S. Department of the Treasury
(“Treasury”) Office of Foreign Assets Control, 
 (ii) its parents, subsidiaries, affiliated companies, officers,
directors and partners, and to the Investor’s knowledge, its shareholders, owners, employees, and agents, are not on the List of Specially Designated Nationals and Blocked Persons maintained by Treasury and have not been designated by Treasury
as a financial institution of primary money laundering concern, 
 (iii) to the Investor’s knowledge after reasonable
investigation, all of the funds to be used to acquire the Securities are derived from legitimate sources and are not the product of illegal activities, and 
 (iv) the Investor is in compliance with all other applicable U.S. anti-money laundering laws and regulations and has implemented, if applicable, an anti-money laundering compliance program in accordance with the
requirements of the Bank Secrecy Act, as amended by the USA PATRIOT Act, Pub. L. 107-56. 
  

 17 

 7.9 Limitation on Ownership. Immediately after the Initial Closing Date, the
Investor, together with its Affiliates, if any, will not beneficially own twenty percent (20%) or more of the shares of Common Stock outstanding immediately prior to the Initial Closing Date. 
 8. Survival of Representations, Warranties and Agreements. Notwithstanding any investigation made by any party to this Agreement or by the
Placement Agent, all covenants, agreements, representations and warranties made by the Company and the Investor herein shall survive the execution of this Agreement, the delivery to the Investor of the Securities being purchased and the payment
therefor, and a party’s reliance on such representations and warranties shall not be affected by any investigation made by such party or any information developed thereby. 
 9. Registration of Securities; Public Statements. 
 9.1 In connection with the purchase and sale of the Securities by the Investor contemplated hereby, the Company has entered into a Registration Rights Agreement with the Investor providing for the filing by the
Company of a Registration Statement on Form S-3 to enable the resale of the Shares and Warrant Shares by the Investor and its transferees and assigns from time to time. 
 9.2 The Company agrees to disclose on a Current Report on Form 8-K the existence of the Offerings and the material terms, thereof,
including pricing, within one (1) Business Day after the respective Closing. The Company will not issue any public statement, press release or any other public disclosure listing the Investor as one of the purchasers of the Securities without
the Investor’s prior written consent, except as may be required by applicable law or rules of any exchange on which the Company’s securities are listed. No Investor shall issue any press release, or otherwise make any such public statement
regarding the Offerings without the prior written consent of the Company, except as may be required by applicable law. 
 10.
Participation Rights. 
 10.1 If at any time after the Initial Closing Date and prior to the five (5) year
anniversary of the Initial Closing Date (a) the Company issues or sells, or agrees to issue or sell, shares of Common Stock or any securities of the Company which entitle the holder thereof to acquire Common Stock at any time (including without
limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into, or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock or other securities that entitle the
holder to receive, directly or indirectly, Common Stock), and (b) the Investor owns of record at least 10 percent (10%) of the total number of shares of Common Stock outstanding (calculated as described in (iii) below), the Company
shall deliver to the Investor an offer to participate, which shall: 
 (i) identify the amount of shares to be issued or sold; 
 (ii) describe the price and other terms upon which they are to be issued or sold; 
 (iii) offer to issue and sell to the Investor at the same price and upon the same terms, including closing date, an amount of the shares to be issued or
sold in proportion to the Investor’s percentage ownership of the outstanding shares of Common Stock as calculated based on the aggregate number of shares of Common Stock then held by the Investor and the total number of shares of Common Stock
then outstanding, in each case not giving effect to the conversion or exercise into Common Stock of outstanding convertible or exercisable securities). 
  

 18 

 10.2 The rights of the Investor under this Section 10 shall not apply to
shares of Common Stock: 
 (i) issued or issuable in connection with any stock dividend, stock split, split-up or other distribution on
shares of Common Stock; 
 (ii) issued or issuable in connection with a merger or acquisition of another company or business, which
transaction is reviewed by, but not subject to the approval of, a committee of the Board comprised of three directors one of whom is the Investor’s designee to the Board and the other two members shall be chosen by a majority vote of the Board,
provided that the transaction is approved by a majority vote of the members of the Board and by the shareholders of the Company if more than twenty percent (20%) of the Company’s voting equity securities would be issued or issuable under
the terms of the transaction; 
 (iii) or options or other rights with respect thereto, subject in either case to appropriate adjustment in
the event of any stock dividend, stock split, combination or other similar recapitalization affecting such shares, issued or issuable to employees or directors of, or consultants to, the Company pursuant to a plan or arrangement approved by the
Board; and 
 (iv) issued or issuable in the Offerings. 
 11. Humble Transactions. The Company agrees to use its best efforts to remove or cause to be removed any restrictive legends from the certificates representing the shares of Common Stock purchased by Investor
in connection with the Humble Transactions as promptly as practicable following such time as such legends may be removed pursuant to applicable law. 
 12. Investor Protective Rights. 
 12.1 Subject to Section 12.2, the
Company will not, without the approval of a majority of directors of the Board, which majority must include at least one director designated by the Investor: 
 (i) authorize, create, designate, establish or issue any other class or series of capital stock ranking senior to the Common Stock as to dividends or upon liquidation, or reclassify any shares of Common Stock into
shares having any preference or priority as to dividends or upon liquidation superior to any such preference or priority of Common Stock; 
 (ii) adopt a plan for the liquidation, dissolution or winding up or the affairs of the Company or any recapitalization plan; 
 (iii) amend, alter or repeal, whether by merger, consolidation or otherwise, the Certificate of Incorporation of the Company; 
 (iv) alter or change the rights, preferences or privileges of the Common Stock or the Warrants; or 
 (v) directly or indirectly,
declare or pay any dividend (other than dividends payable in shares of Common Stock) or directly or indirectly purchase, redeem, repurchase or otherwise acquire any share of Common Stock (except for shares of Common Stock repurchased from current or
former employees, consultants, or directors upon termination of service in accordance with plans approved by the Board) whether in cash, securities or property or in obligations of the Company. 
 12.2 The rights under this Section 12 shall become exercisable by the Investor only upon completion of the Initial Closing and
shall expire at such time as the Board no longer includes any 

  

 19 

 
director designated by the Investor; and provided further, that the rights may only be exercised by the Investor if, at the time of exercise, the Investor
owns of record at least five percent (5%) of the total number of shares of Common Stock outstanding as calculated based on the aggregate number of shares of Common Stock then held by the Investor and the total number of shares of Common Stock
then outstanding, in each case not giving effect to the conversion or exercise into Common Stock of outstanding convertible or exercisable securities. 
 13. Conduct of Business Pending the Subsequent Closing. The Company covenants and agrees that, between the date of this Agreement and the Subsequent Closing, except for the Company’s contemplated merger
with Nutrio.com, Inc. and as expressly contemplated by any other provision of this Agreement, unless Investor shall otherwise consent in writing: (i) the businesses of the Company and its subsidiaries shall be conducted only in, and the Company
and its subsidiaries shall not take any action except in, the ordinary course of business and in a manner consistent with past practice; and (ii) the Company shall use reasonable commercial efforts to preserve substantially intact the business
organization of the Company and its subsidiaries, to maintain in effect all permits and licenses that are required for the Company or such subsidiary to carry on its business, to keep available the services of the current officers, employees,
independent contractors and consultants of the Company and its subsidiaries and to preserve the current relationships of the Company and its subsidiaries with customers, suppliers and other persons with which the Company or any subsidiary has
significant business relations. 
 14. Notices. All notices, requests, consents and other communications hereunder shall be in
writing, shall be delivered (A) if within the United States, by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile, or (B) if from outside the United States, by
International Federal Express (or comparable service) or facsimile, and shall be deemed given: 
 (i) if delivered by first-class registered
or certified mail domestic, upon the Business Day received, 
 (ii) if delivered by nationally recognized overnight carrier, one
(1) Business Day after timely delivery to such carrier, 
 (iii) if delivered by International Federal Express (or comparable service),
two (2) Business Days after timely delivery to such carrier, or 
 (iv) if delivered by facsimile, upon electric confirmation of receipt
and shall be addressed as follows, or to such other address or addresses as may have been furnished in writing by a party to another party pursuant to this paragraph: 
 (a) if to the Company, to: 
 eDiets.com, Inc. 
 3801 W. Hillsboro Blvd. 
 Deerfield Beach, FL 33442 
 Attention: General Counsel 
 Telephone: (954) 360-9022 
 with a
copy to: 
 Leslie J. Croland, P.A. 
 Edwards Angell Palmer & Dodge LLP 
 350 East Las Olas Boulevard, Suite 1150 
 Fort Lauderdale, FL 33301 
 Telephone:
(954) 667-6129 
  

 20 

 (b) if to the Investor, at its address on the signature page to the Securities Purchase
Agreement. 
 15. Amendments; Waiver. This Agreement may not be modified or amended except pursuant to an instrument in writing signed
by the Company and the Investor. Any waiver of a provision of this Agreement must be in writing and executed by the party against whom enforcement of such waiver is sought. 
 16. Headings. The headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed
to be part of this Agreement. 
 17. Entire Agreement; Severability. This Agreement sets forth the entire agreement and understanding
of the parties relating to the subject matter hereof and supersedes all prior and contemporaneous agreements, negotiations and understandings between the parties, both oral and written relating to the subject matter hereof. If any provision
contained in this Agreement is determined to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

 18. Governing Law. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of
Delaware, without giving effect to the principles of conflicts of law. 
 19. Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties and their successors and permitted assigns. No party may assign this Agreement or any rights or obligations hereunder without the prior written consent of the other; provided, however, that Investor may
assign all or any of its rights and obligations hereunder to any affiliate of Investor that is controlled, directly or indirectly, by Prides Capital Partners, LLC, and that such affiliate agrees in writing to be bound to the terms and conditions
contained herein that apply to the Investor. 
 20. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. In the
event that any signature is delivered by fax transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such fax signature page
were an original thereof. 
 * * * * 
  

 21

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