Ex 10.2


 


INDEMNITY AGREEMENT


 


This INDEMNITY AGREEMENT
(the “Agreement”) is dated as of [__] [____] 2013, and is made by and between xG Technology, Inc. a Delaware corporation
(the “Company”), and [_____], an officer or director of the Company (the “Indemnitee”).


 


RECITALS


 


A.           The
Company is aware that competent and experienced persons are increasingly reluctant to serve as directors or officers of corporations
unless they are protected by comprehensive liability insurance and/or indemnification, due to increased exposure to litigation
costs and risks resulting from their service to such corporations, and due to the fact that the exposure frequently bears no reasonable
relationship to the compensation of such directors and officers;


 


B.           The
Board of Directors of the Company (the “Board”) has concluded that, to retain and attract talented and experienced
individuals to serve as officers and directors of the Company and to encourage such individuals to make the business decisions
necessary or appropriate for the success of the Company and its Subsidiaries (as defined in Section 1 below), it is necessary for
the Company contractually to indemnify its directors and certain of its officers, and certain of the directors and officers of
its Subsidiaries, and to assume for itself maximum permissible liability for Expenses, losses, liabilities and damages in connection
with claims against such officers and directors relating to their service in such capacities, and has further concluded that the
failure to provide such contractual indemnification could result in significant harm to the Company and its Subsidiaries and the
Company’s stockholders;


 


C.           The
statutes and judicial decisions regarding the duties of directors and officers are often difficult to apply, ambiguous, or conflicting,
and therefore fail to provide such directors and officers with adequate, reliable knowledge of legal risks to which they are exposed
or information regarding the proper course of action to take;


 


D.           Plaintiffs
often seek damages in such large amounts and the costs of litigation may be so great (whether or not the case is meritorious),
that the defense and/or settlement of such litigation may be beyond the personal resources of directors and officers;


 


E.           Section
145 of the General Corporation Law of Delaware, under which the Company is organized (the “Law”), empowers the Company
to indemnify by agreement its officers, directors, employees and agents, and persons who serve, at the request of the Company,
as directors, officers, employees or agents of other corporations or enterprises, and expressly provides that the indemnification
provided by the Law is not exclusive; further the provisions of the Amended Certificate of Incorporation of the Company (the “Certificate
of Incorporation”) specifically state that the rights to indemnification and payment of expenses described therein are not
exclusive, and thereby contemplate that contracts with respect to indemnification and payment of Expenses by the Company and similar
obligations of the Company may be entered into by and between the Company and persons entitled to such rights described in the
Certificate of Incorporation; and


 




    	 



    	 



    

 


F.           The
Company desires and has requested the Indemnitee to serve or continue to serve as a director or officer of the Company. As an inducement
to serve and in consideration for such service, the Company has agreed to indemnify the Indemnitee for claims for damages arising
out of or related to the performance of such services to the Company in accordance with the terms and conditions set forth in this
Agreement.


 


NOW, THEREFORE, the
parties hereto, intending to be legally bound, hereby agree as follows:


 


1.           Definitions.


 


1.1.          Agent.
For the purposes of this Agreement, “Agent” of the Company means any person who is or at any time was a director or
officer of the Company or a subsidiary of the Company; or is or at any time was serving at the request of, for the convenience
of, or to represent the interest of the Company or a subsidiary of the Company as a director or officer of another foreign or domestic
corporation, partnership, joint venture, trust or other enterprise or an affiliate of the Company; or was a director or officer
of another enterprise or affiliate of the Company at the request of, for the convenience of, or to represent the interests of such
predecessor corporation. The term “enterprise” includes any employee benefit plan of the Company, its subsidiaries,
affiliates and predecessor corporations.


 


1.2.          Change
in Control. “Change in Control” means a change in control of the Company occurring after December 1, 2008, of a nature
that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar
item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934 (the “Act”), whether or
not the Company is then subject to such reporting requirement; provided, however, that, without limitation, such
a Change in Control shall be deemed to have occurred if after December 1, 2008, (i) any “person” (as such term is used
in Sections 13(d) and 14(d) of the Act) other than a trustee or other fiduciary holding securities under an employee benefit plan
of the Company or a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions
as their ownership of stock of the Company is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Act), directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of the Company’s
then outstanding securities without the prior approval of at least two-thirds of the members of the board of directors of the Company
in office immediately prior to such person attaining such percentage interest; (ii) there occurs a proxy contest, or the Company
is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least two-thirds
of the members of the board of directors of the Company then in office, as a consequence of which members of the board of directors
in office immediately prior to such transaction or event constitute less than a majority of the board of directors thereafter;
or (iii) during any period of two consecutive years, other than as a result of an event described in clause (ii) of this subsection
(c), individuals who at the beginning of such period constituted the board of directors of the Company (including for this purpose
any new director whose election or nomination for election by the Company’s stockholders was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the beginning of such period) cease for any reason to constitute
at least a majority of the board of directors.


 




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1.3.          Company.
As used herein the term “Company” includes all successors and assigns to the Company, including, without limitation,
any corporation or other entity that is a successor to the Company by virtue of a Change in Control.


 


1.4.          Controlled.
“Controlled” means subject to the power to exercise a controlling influence over the management or policies of a corporation,
partnership, joint venture, trust or other entity.


 


1.5.          Expenses.
For purposes of this Agreement, “Expenses” includes all direct and indirect costs of any type or nature whatsoever
(including, without limitation, attorneys’ fees and related disbursements and retainers, costs of travel, other out-of-pocket
costs such as fees and disbursements of expert witnesses, private investigators and professional advisors, court costs, transcript
costs, fees of experts, duplicating, printing, and binding costs, telephone and fax transmission charges, postage, delivery services,
secretarial services and other disbursements and expenses and reasonable compensation for time spent by the Indemnitee for which
he is not otherwise compensated by the Company or any third party) actually and reasonably incurred by the Indemnitee in connection
with the investigation, defense or appeal of a proceeding or establishing or enforcing a right to indemnification or advancement
of expenses under this Agreement, Section 145 of the Law or otherwise.


 


1.6.          Proceeding.
For the purposes of this Agreement, a “Proceeding” means any threatened, pending, or completed action, suit, arbitration,
alternate dispute resolution process, investigation, administrative hearing, appeal, inquiry or other proceeding, whether civil,
criminal, administrative, investigative or any other type whatsoever, whether formal or informal, including a proceeding initiated
by Indemnitee pursuant to Section 9 of this Agreement to enforce Indemnitee’s rights hereunder.


 


1.7.          Subsidiary.
For purposes of this Agreement, “Subsidiary” means any corporation, partnership, limited liability company, trust,
joint venture, or other entity of which more than fifty percent (50%) of the outstanding voting securities is owned directly or
indirectly by the Company, by the Company and one or more of its subsidiaries or by one or more of the Company’s subsidiaries.


 


2.           Agreement
to Serve. The Indemnitee agrees to serve and/or continue to serve as an agent of the Company, at the will of the Company (or
under separate agreement, if such agreement exists), in the capacity the Indemnitee currently serves as an agent of the Company,
faithfully and to the best of his ability, so long as he is duly appointed or elected and qualified in accordance with the applicable
provisions of the charter documents of the Company or any Subsidiary of the Company; provided, however, that the Indemnitee may
at any time and for any reason resign from such position (subject to any contractual obligation that the Indemnitee may have assumed
apart from this Agreement), and the Company or any Subsidiary shall have no obligation under this Agreement to continue the Indemnitee
in any such position. For the avoidance of doubt, the Company and Indemnitee each acknowledge and agree that the resignation or
other termination of Indemnitee as an agent of the Company under this paragraph 2 shall not impair any right that Indemnitee may
otherwise have to be indemnified under the terms of this Agreement.


 




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3.           Directors’
and Officers’ Insurance. The Company shall, to the extent that the Board determines it to be economically reasonable,
maintain a policy of directors’ and officers’ liability insurance (“D&O Insurance”), on such terms
and conditions as may be approved by the Board.


 


4.           Mandatory
Indemnification. Subject to Section 9 below, the Company shall indemnify and hold the Indemnitee harmless to the fullest extent
permitted by the Law. Without limiting the generality of the foregoing, the Company shall indemnify and hold harmless the Indemnitee
as follows:


 


4.1.          Third
Party Actions. If the Indemnitee is a person who was or is a party or is threatened to be made a party to any proceeding (other
than an action by or in the right of the Company) by reason of the fact that he is or at any time was an agent of the Company,
or by reason of anything done or not done by him in any such capacity, against any and all claims, expenses and liabilities of
any type whatsoever (including, but not limited to, attorneys’ fees, judgments, fines, ERISA excise taxes or penalties and
amounts paid in settlement) actually and reasonably incurred by him in connection with the investigation, defense, settlement or
appeal of such proceeding if he acted in good faith and in a manner he reasonably believed to be in, or not opposed to, the best
interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct
was unlawful; and/or


 


4.2.          Derivative
Actions. If the Indemnitee is a person who was or is a party or is threatened to be made a party to any proceeding by or in the
right of the Company to procure a judgment in its favor by reason of the fact that he is or at any time was an agent of the Company,
or by reason of anything done or not done by him in any such capacity, against any and all claims, expenses and liabilities, including
without limitation attorneys’ fees, amounts paid in settlement of any such proceeding and all expenses actually and reasonably
incurred by him in connection with the investigation, defense, settlement, or appeal of such proceeding if he acted in good faith
and in a manner he reasonably believed to be in, or not opposed to, the best interests of the Company; except that no indemnification
under this subsection shall be made in respect of any claim, issue or matter as to which such person shall have been finally adjudged,
in a judgment not subject to appeal, to be liable to the Company by a court of competent jurisdiction due to willful misconduct
of a culpable nature in the performance of his duty to the Company, unless and only to the extent that the Court of Chancery in
Delaware or the court in which such proceeding was brought shall determine upon application that, despite the adjudication of liability
but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such amounts which
the Court of Chancery or such other court shall deem proper; and/or


 




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4.3.          Exception
for Amounts Covered by Insurance. Notwithstanding the foregoing, the Company shall not be obligated to indemnify the Indemnitee
for expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties
and amounts paid in settlement) to the extent such have been paid directly to the Indemnitee by D&O Insurance.


 


5.           Partial
Indemnification and Contribution.


 


5.1.          Partial
Indemnification. If the Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some
or a portion of any expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise
taxes or penalties and amounts paid in settlement) incurred by him in the investigation, defense, settlement, or appeal of a proceeding
but is not entitled, however, to indemnification for all of the total amount thereof, then the Company shall nevertheless indemnify
the Indemnitee for such total amount except as to the portion thereof to which the Indemnitee is not entitled to indemnification.


 


5.2.          Contribution.
If the Indemnitee is not entitled to the indemnification provided in Section 4 for any reason other than the statutory limitations
set forth in the Law, then in respect of any threatened, pending or completed proceeding in which the Company is jointly liable
with the Indemnitee (or would be if joined in such proceeding), the Company shall contribute to the amount of Expenses (including
attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by
the Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand
and the Indemnitee on the other hand from the transaction from which such proceeding arose and (ii) the relative fault of the Company
on the one hand and of the Indemnitee on the other hand in connection with the events which resulted in such Expenses, judgments,
fines or settlement amounts, as well as any other relevant equitable considerations. The relative fault of the Company on the one
hand and of the Indemnitee on the other hand shall be determined by reference to, among other things, the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Expenses, judgments,
fines or settlement amounts. The Company agrees that it would not be just and equitable if contribution pursuant to this Section
5 were determined by pro rata allocation or any other method of allocation, which does not take account of the foregoing equitable
considerations.


 




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6.           Mandatory
Advancement of Expenses.


 


6.1.          Advancement.
Subject to Section 9 below, the Company shall advance all expenses incurred by the Indemnitee in connection with the investigation,
participation, defense, settlement or appeal of any proceeding to which the Indemnitee is a party or is threatened to be made a
party by reason of the fact that the Indemnitee is or at any time was an agent of the Company or by reason of anything done or
not done by him in any such capacity. The Indemnitee hereby undertakes promptly to repay such amounts advanced only if, and to
the extent that, it shall ultimately be determined that the Indemnitee is not entitled to be indemnified by the Company under the
provisions of this Agreement, the Certificate of Incorporation, or Bylaws of the Company, the Law or otherwise. The advances to
be made hereunder shall be paid by the Company to the Indemnitee within thirty (30) days following delivery of a written request
therefor by the Indemnitee to the Company.


 


6.2.          Exception.
Notwithstanding the foregoing provisions of this Section 6, the Company shall not be obligated to advance any expenses to the Indemnitee
arising from a lawsuit filed directly by the Company against the Indemnitee if an absolute majority of the members of the Board
reasonably determines in good faith, within thirty (30) days of the Indemnitee’s request to be advanced expenses, that the
facts known to them at the time such determination is made demonstrate clearly and convincingly that the Indemnitee acted in bad
faith. If such a determination is made, the Indemnitee may have such decision reviewed by another forum, in the manner set forth
in Sections 8.3, 8.4 and 8.5 hereof, with all references therein to “indemnification” being deemed to refer to “advancement
of expenses,” and the burden of proof shall be on the Company to demonstrate clearly and convincingly that, based on the
facts known at the time, the Indemnitee acted in bad faith. The Company may not avail itself of this Section 6.2 as to a given
lawsuit if, at any time after the occurrence of the activities or omissions that are the primary focus of the lawsuit, the Company
has undergone a change in control. For this purpose, a change in control shall mean a given person or group of affiliated persons
or groups increasing their beneficial ownership interest in the Company by at least fifteen (15) percentage points without advance
Board approval.


 


7.           Notice
and Other Indemnification Procedures.


 


7.1.          Promptly
after receipt by the Indemnitee of notice of the commencement of or the threat of commencement of any proceeding, the Indemnitee
shall, if the Indemnitee believes that indemnification with respect thereto may be sought from the Company under this Agreement,
notify the Company of the commencement or threat of commencement thereof.


 


7.2.          If,
at the time of the receipt of a notice of the commencement of a proceeding pursuant to Section 7.1 hereof, the Company has D&O
Insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance
with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to
cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with
the terms of such D&O Insurance policies.


 




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7.3.          In
the event the Company shall be obligated to advance the expenses for any proceeding against the Indemnitee, the Company, if appropriate,
shall be entitled to assume the defense of such proceeding, with counsel approved by the Indemnitee (which approval shall not be
unreasonably withheld), upon the delivery to the Indemnitee of written notice of its election to do so. After delivery of such
notice, approval of such counsel by the Indemnitee and the retention of such counsel by the Company, the Company will not be liable
to the Indemnitee under this Agreement for any fees of counsel subsequently incurred by the Indemnitee with respect to the same
proceeding, provided that: (a) the Indemnitee shall have the right to employ his own counsel in any such proceeding at the Indemnitee’s
expense; (b) the Indemnitee shall have the right to employ his own counsel in connection with any such proceeding, at the expense
of the Company, if such counsel serves in a review, observer, advice, and counseling capacity and does not otherwise materially
control or participate in the defense of such proceeding; or (c) if (i) the employment of counsel by the Indemnitee has been previously
authorized by the Company, (ii) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between
the Company and the Indemnitee in the conduct of any such defense or (iii) the Company shall not, in fact, have employed counsel
to assume the defense of such proceeding, then the fees and expenses of the Indemnitee’s counsel shall be at the expense
of the Company.


 


8.           Determination
of Right to Indemnification.


 


8.1.          To
the extent the Indemnitee has been successful on the merits or otherwise in defense of any proceeding referred to in Section 4.1
or 4.2 of this Agreement or in the defense of any claim, issue or matter described therein, the Company shall indemnify the Indemnitee
against expenses actually and reasonably incurred by him in connection with the investigation, defense or appeal of such proceeding,
or such claim, issue or matter, as the case may be, including without limitation Indemnitee’s attorneys’ fees.


 


8.2.          In
the event that Section 8.1 is inapplicable, or does not apply to the entire proceeding, the Company shall nonetheless indemnify
the Indemnitee unless the Company shall prove by clear and convincing evidence to a forum listed in Section 8.3 below that the
Indemnitee has not met the applicable standard of conduct required to entitle the Indemnitee to such indemnification.


 


8.3.          The
Indemnitee shall be entitled to select the forum in which the validity of the Company’s claim under Section 8.2 hereof that
the Indemnitee is not entitled to indemnification will be heard from among the following:


 


(a)          a
quorum of the Board consisting of directors who are not parties to the proceeding for which indemnification is being sought;


 


(b)          the
stockholders of the Company, provided however that the Indemnitee can select a forum consisting of the stockholders of the Company
only with the approval of the Company;


 


(c)          legal
counsel mutually agreed upon by the Indemnitee and the Board, which counsel shall make such determination in a written opinion;


 


(d)          a
panel of three arbitrators, one of whom is selected by the Company, another of whom is selected by the Indemnitee and the last
of whom is selected by the first two arbitrators so selected; or


 




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(e)          the
Court of Chancery of Delaware or other court having jurisdiction of subject matter and the parties.


 


8.4.          As
soon as practicable, and in no event later than thirty (30) days after the forum has been selected pursuant to Section 8.3 above,
the Company shall, at its own expense, submit to the selected forum its claim that the Indemnitee is not entitled to indemnification,
and the Company shall act in the utmost good faith to assure the Indemnitee a complete opportunity to defend against such claim.


 


8.5.          If
the forum selected in accordance with Section 8.3 hereof is not a court, then after the final decision of such forum is rendered,
the Company or the Indemnitee shall have the right to apply to the Court of Chancery of Delaware, the court in which the proceeding
giving rise to the Indemnitee’s claim for indemnification is or was pending or any other court having jurisdiction of subject
matter and the parties, for the purpose of appealing the decision of such forum, provided that such right is executed within sixty
(60) days after the final decision of such forum is rendered. If the forum selected in accordance with Section 8.3 hereof is a
court, then the rights of the Company or the Indemnitee to appeal any decision of such court shall be governed by the applicable
laws and rules governing appeals of the decision of such court.


 


8.6.          Notwithstanding
any other provision in this Agreement to the contrary, the Company shall indemnify the Indemnitee against all Expenses incurred
by the Indemnitee in connection with any hearing or proceeding under this Section 8 involving the Indemnitee and against all Expenses
incurred by the Indemnitee in connection with any other proceeding between the Company and the Indemnitee involving the interpretation
or enforcement of the rights of the Indemnitee under this Agreement unless a court of competent jurisdiction finds that each of
the material claims and/or defenses of the Indemnitee in any such proceeding was frivolous or not made in good faith.


 


9.           Exceptions.
Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:


 


9.1.          Claims
Initiated by Indemnitee. To indemnify or advance expenses to the Indemnitee with respect to proceedings or claims initiated or
brought voluntarily by the Indemnitee and not by way of defense, except with respect to proceedings specifically authorized by
the Board or brought to establish or enforce a right to indemnification and/or advancement of Expenses arising under this Agreement,
the charter documents of the Company or any Subsidiary or any statute or law or otherwise, but such indemnification or advancement
of Expenses may be provided by the Company in specific cases if the Board finds it to be appropriate; or


 


9.2.          Unauthorized
Settlements. To indemnify the Indemnitee hereunder for any amounts paid in settlement of a proceeding unless the Company consents
in advance in writing to such settlement, which consent shall not be unreasonably withheld; or


 




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9.3.          Securities
Law Actions. To indemnify the Indemnitee on account of any suit in which judgment is rendered against the Indemnitee for an accounting
of profits made from the purchase or sale by the Indemnitee of securities of the Company pursuant to the provisions of Section
l6(b) of the Securities Exchange Act of 1934 and amendments thereto or similar provisions of any federal, state or local statutory
law; or


 


9.4.          Unlawful
Indemnification. To indemnify the Indemnitee if a final decision by a court having jurisdiction in the matter, in a judgment not
subject to appeal, shall determine that such indemnification is not lawful. In this respect, the Company and the Indemnitee have
been advised that the Securities and Exchange Commission takes the position that indemnification for liabilities arising under
the federal securities laws is against public policy and is, therefore, unenforceable and that claims for indemnification should
be submitted to appropriate courts for adjudication.


 


10.         Non-Exclusivity.


 


THE PROVISIONS
FOR INDEMNIFICATION AND ADVANCEMENT OF EXPENSES SET FORTH IN THIS AGREEMENT SHALL NOT BE DEEMED EXCLUSIVE OF ANY OTHER RIGHTS WHICH
THE INDEMNITEE MAY HAVE UNDER ANY PROVISION OF LAW, THE COMPANY’S CERTIFICATE OF INCORPORATION OR BYLAWS, THE VOTE OF THE
COMPANY’S STOCKHOLDERS OR DISINTERESTED DIRECTORS, OTHER AGREEMENTS OR OTHERWISE, BOTH AS TO ACTION IN THE INDEMNITEE’S
OFFICIAL CAPACITY AND TO ACTION IN ANOTHER CAPACITY WHILE OCCUPYING HIS POSITION AS AN AGENT OF THE COMPANY, AND THE INDEMNITEE’S
RIGHTS HEREUNDER SHALL CONTINUE AFTER THE INDEMNITEE HAS CEASED ACTING AS AN AGENT OF THE COMPANY AND SHALL INURE TO THE BENEFIT
OF THE HEIRS, EXECUTORS AND ADMINISTRATORS OF THE INDEMNITEE.


 


11.         Burden
of Proof. In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity
making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement, and the Company shall
have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination
contrary to that presumption.


 


12.         Duration
of Agreement.


 


This Agreement shall
continue until and terminate upon the later of: (a) 10 years after the date that the Indemnitee shall have ceased to serve as a
director and/or officer of the Company or director, officer, employee or agent of any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise which the Indemnitee served at the request of the Company; or (b) one year after
the final, nonappealable termination of any Proceeding then pending in respect of which the Indemnitee is granted rights of indemnification
or advancement of Expenses hereunder and of any proceeding commenced by the Indemnitee pursuant to Section 10 of this Agreement
relating thereto.


 




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13.         General
Provisions.


 


13.1.          Interpretation
of Agreement. It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide indemnification
and advancement of expenses to the Indemnitee to the fullest extent now or hereafter permitted by law, except as expressly limited
herein.


 


13.2.          Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal, or unenforceable for any reason whatsoever,
then:


 


(a)          the
validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, all portions
of any paragraphs of this Agreement containing any such provision held to be invalid, illegal, or unenforceable that are not themselves
invalid, illegal, or unenforceable) shall not in any way be affected or impaired thereby; and


 


(b)          to
the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraphs of
this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal
or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable
and to give effect to Section 13.1 hereof.


 


13.3.          Modification
and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the
parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver.


 


13.4.          Subrogation.
In the event of full payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of the Indemnitee, who shall execute all documents required and shall do all acts that may be necessary or desirable
to secure such rights and to enable the Company effectively to bring suit to enforce such rights.


 


13.5.          Counterparts.
This Agreement may be executed in one or more counterparts and via facsimile, each of which shall constitute an original, but all
of which when taken together shall constitute a single agreement.


 


13.6.          Successors
and Assigns. The terms of this Agreement shall bind, and shall inure to the benefit of, the successors and assigns of the parties
hereto.


 


13.7.          Notice.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed duly given:
(a) if delivered by hand and signed for by the party addressee; or (b) if mailed by certified or registered mail, with postage
prepaid, on the third business day after the mailing date. Addresses for notices to either party are as shown on the signature
page of this Agreement or as subsequently modified by written notice.


 




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13.8.          Gender.
The masculine, feminine or neuter pronouns used herein shall be interpreted without regard to gender, and the use of the singular
or plural shall be deemed to include the other whenever the context so requires.


 


13.9.          Governing
Law. This Agreement shall be governed exclusively by and construed according to the laws of the State of Delaware, as applied to
contracts between Delaware residents entered into and to be performed entirely within Delaware.


 


If the General Corporation
Law of the State of Delaware (the “Delaware Law”) or any other applicable law is amended after the date hereof to permit
the Company to indemnify Indemnitee for Expenses or liabilities, or to indemnify Indemnitee with respect to any action or Proceeding,
not contemplated by this Agreement, then this Agreement (without any further action be either party hereto) shall automatically
be deemed to be amended to require that the Company indemnify Indemnitee to the fullest extent permitted by the Delaware Law.


 


13.10.         Consent
to Jurisdiction. The Company and the Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of the State
of Delaware for all purposes in connection with any action or proceeding, which arises out of or relates to this Agreement.


 


13.11.         Attorneys’
Fees. In the event Indemnitee is required to bring any action to enforce rights under this Agreement (including, without limitation,
the payment or reimbursement of expenses of any proceeding described in Section 4), the Indemnitee shall be entitled to all reasonable
fees and expenses in bringing and pursuing such action, unless a court of competent jurisdiction finds each of the material claims
of the Indemnitee in any such action was frivolous and not made in good faith.


 


[Balance of the
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IN WITNESS WHEREOF,
the parties hereto have entered into this Agreement effective as of the date first written above.


 


	xG TECHNOLOGY, INC.	 	INDEMNITEE
	 	 	 	 	 
	By:	 	 	By:	 
	Name:	 	 	Name:	 
	Title:	 	 	Title:	 
	 	 	 	 	 
	Date: [____] [__________] 2013	 	Date: [____] [__________] 2013
	 	 	 
	Address:	 	Address:


 




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