Document:

Exhibit
      10.1

    SUBSCRIPTION
      AGREEMENT

    

     

    This
      Subscription Agreement (this“Agreement”)
      is made and entered into as of February 22, 2008 between ProElite, Inc., a
      New
      Jersey corporation (the “Company”) and Showtime
      Networks
      Inc.
      (the “Issuee”) with reference to the following:

     

    A. Pursuant
      to that certain Broadcast
      Agreement
      dated as of the date hereof (the “Broadcast
      Agreement”)
      between CBS Entertainment and Issuee, the Company has agreed to issue to Issuee
      two warrants (the “Warrants”) to purchase shares of the Company’s Common Stock
      (the “Warrant Shares”) on the terms set forth in the applicable
      Warrants.

     

    B. In
      connection with the issuance of the Warrants, concurrently herewith, the Company
      is entering into an Investor Rights Agreement (the “Investor Rights Agreement”)
      with Issuee.

     

    The
      Company and Issuee hereby agree as follows:

     

    1. Issuance
      of Warrants.
      The
      Company shall issue to Issuee two Warrants to purchase an aggregate of 4,000,000
      shares of common stock, par value $0.0001 per share (“Common Stock”), of the
      Company, at an exercise price of $2.00 per share. 

     

    2. Representations,
      Warranties and Covenants of the Company.
      The
      Company hereby represents and warrants to, and covenants with, the Issuee,
      as
      follows:

     

    2.1 Due
      Organization and Qualification.
      The
      Company is a corporation duly incorporated, validly existing and in good
      standing under the laws of the State of New Jersey, with full corporate power
      and authority to own, lease and operate its business and properties and to
      carry
      on its business in the places and in the manner as presently conducted or
      proposed to be conducted. 

     

    2.2 Due
      Authorization and Valid Issuance.
      The
      Company has all requisite power and authority to execute, deliver and perform
      its obligations under this Agreement, the Warrants and the Investor Rights
      Agreement (collectively, the “Transaction
      Documents”),
      and
      the Transaction Documents have been duly authorized and 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 as enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, fraudulent conveyance, moratorium or similar laws affecting
      creditors’ and contracting parties’ rights generally and except as
      enforceability may be subject to general principles of equity (regardless of
      whether such enforceability is considered in a proceeding in equity or at law).
      The Warrants have been duly authorized and are validly issued, and the Warrant
      Shares, when issued pursuant to the valid exercise of the Warrants, will be
      fully paid, validly issued and nonassessable. The Company has reserved a
      sufficient number of shares of its Common Stock so as to issue Warrant Shares
      upon the full exercise of the Warrants.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    2.3 Capitalization.
      The
      authorized capital stock of the Company consists
      of 250,000,000 shares of Common Stock $.0001 par value and 20,000,000 shares
      of
      Preferred Stock, $.0001 par value. Set forth on Schedule A is a capitalization
      table of the Company which is true and correct as of the date hereof. Except
      as
      set forth on Schedule A, there is no contract, agreement, arrangement, option,
      warrant, call, commitment or other right of any character obligating or
      entitling the Company to issue, sell, redeem or repurchase any of its
      securities, and there is no outstanding security of any kind convertible into
      or
      exchangeable for Company Common Stock. 

     

    2.4 Non-Contravention.
      The
      execution and delivery of the Transaction Documents by the Company and the
      issuance and sale of the Warrants and the Warrant Shares will not (A) conflict
      with or constitute a violation of, or default (with the passage of time or
      otherwise) under (i) any material debenture, note or other evidence of
      indebtedness, or under any material lease, contract, indenture, mortgage, deed
      of trust, loan agreement, joint venture or other agreement or instrument to
      which the Company is a party or by which the Company or its properties are
      bound, (ii) the charter, by-laws or other organizational documents of the
      Company, or (iii) any material law, administrative regulation, ordinance or
      order of any court or governmental agency, arbitration panel or authority
      applicable to the Company or its 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
      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 is a party or by which it is bound
      or to which any of the property or assets of the Company is subject. No consent,
      approval, authorization or other order of, or registration, qualification or
      filing with, any regulatory body, administrative agency, or other governmental
      body in the United States is required for the execution and delivery of the
      Transaction Documents by the Company and the valid issuance and sale of the
      Warrants and the Warrant Shares other than such as have been made or obtained,
      and except for any post-closing securities filings or notifications required
      to
      be made under federal or state securities laws.

     

    3. Representations,
      Warranties and Covenants of the Issuee.

     

    3.1 The
      Issuee represents and warrants to, and covenants with, the Company that: (i)
      the
      Issuee is an “accredited investor” as defined in Rule 501 of Regulation D under
      the Securities Act of 1933, as amended (the “Securities
      Act”)
      or is
      a “Qualified Institutional Buyer” within the meaning of Rule 144A of the Act
      and, in any such case, the Issuee is also knowledgeable, sophisticated and
      experienced in making, and is qualified to make decisions with respect to,
      investments in securities such as the Warrants, including investments in
      securities issued by comparable companies, and has requested, received, reviewed
      and considered all information it deemed relevant in making an informed decision
      to obtain the Warrants; (ii) the Issuee is acquiring the Warrants for its own
      account for investment only and with no present intention of distributing any
      of
      the Warrants or Warrant Shares or any arrangement or understanding with any
      other persons regarding the distribution of the Warrants or Warrant Shares
      (subject, however, to the rights of Issuee pursuant to the Investors Rights
      Agreement); (iii) the Issuee will not, directly or indirectly, offer, sell,
      pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase
      or otherwise acquire or take a pledge of) any of the Warrants or Warrant Shares
      except in compliance with the Securities Act, applicable state securities laws
      and the respective rules and regulations promulgated thereunder; and (iv) the
      Issuee has been solely responsible for the Issuee’s own “due diligence”
investigation of the Company and its management and business, for its own
      analysis of the merits and risks of this investment. The Issuee understands
      that
      his Warrants and the Warrant Shares have 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 bona fide nature of the Issuee’s investment intent as
      expressed herein.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    3.2 The
      Issuee hereby covenants with the Company not to make any sale of the Warrants
      or
      the Warrant Shares without complying with the provisions of this Agreement,
      and
      the Issuee acknowledges that the certificates evidencing the Warrants and the
      Warrant Shares will be imprinted with a legend that prohibits their transfer
      except in accordance therewith.

     

    3.3 The
      Issuee further represents and warrants to, and covenants with, the Company
      that
      (i) the Issuee has full right, power, authority and capacity to enter into
      this
      Agreement and to consummate the transactions contemplated hereby and has taken
      all necessary action to authorize the execution, delivery and performance of
      this Agreement, and (ii) this Agreement constitutes a valid and binding
      obligation of the Issuee enforceable against the Issuee in accordance with
      its
      terms, except as enforceability may be limited by applicable bankruptcy,
      insolvency, reorganization, moratorium or similar laws affecting creditors’ and
      contracting parties’ rights generally and except as enforceability may be
      subject to general principles of equity (regardless of whether such
      enforceability is considered in a proceeding in equity or at law).

     

    4. Notices.
      All
      notices, requests, consents and other communications hereunder shall be in
      writing, shall be mailed (A) if within the United States by first-class
      registered mail, Express Mail or nationally recognized overnight express
      courier, postage prepaid, or by facsimile, or (B) if delivered from outside
      the United States, by International Federal Express or facsimile, and shall
      be
      deemed given (i) if delivered by first-class registered mail, three
      business days after so mailed, (ii) if delivered by Express Mail or a
      nationally recognized overnight carrier, one business day after so mailed,
      (iii) if delivered by International Federal Express, two business days
      after so mailed, (iv) if delivered by facsimile, upon electronic
      confirmation of receipt and shall be delivered as addressed as
      follows:

     

    
      	
              (a)

            	if to the
              Company,
              to:
	 	 
	 	
              ProElite,
                Inc. 

              Santa
                Monica Capital Partners

              12121
                Wilshire Boulevard, Suite1001

              Los
                Angeles, CA 90025

              Attention:
                Douglas DeLuca

              Phone:
                (310) 526-8701

            
	 	 
	 	
              with
                a copy to:

            
	 	 
	 	
              Troy
                & Gould, Professional Corporation

              Attn:
                David Ficksman

              Phone:
                (310) 789-1290

              Facsimile:
                (310) 789-1490

            

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (b) if
      to the
      Investor, at its address on the signature page hereto, or at such other address
      or addresses as may have been furnished to the Company in writing.

     

    5. Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the internal
      laws of the State of California, without giving effect to the principles of
      conflicts of law. All actions arising out of or relating to this Agreement
      shall
      be heard and determined exclusively in any California federal court sitting
      in
      the City of Los Angeles.

     

    6. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties hereto pertaining
      to the subject matter hereof, and any and all other written or oral agreements
      relating to such subject matter are expressly cancelled.

     

    7. Severability.
      In case
      any provision contained in this Agreement should 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.

     

    8. 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.

     

    9. 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.

     

    10. Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of the Company and the Issuee, including without limitation
      and without the need for an express assignment, affiliates of the Issuee. With
      respect to transfers that are not made pursuant to the Investor Rights
      Agreement, the rights and obligations of an Issuee under this Agreement shall
      be
      automatically assigned by the Issuee to any transferee of all or any portion
      of
      the Warrants or Warrant Shares who is a Permitted Transferee (as defined below);
      provided, however, that within two business days prior to the transfer, (i)
      the
      Company is provided notice of the transfer including the name and address of
      the
      transferee and the number of Warrant Shares and/or Warrants transferred; and
      (ii) that such transferee agrees in writing to be bound by the terms of this
      Agreement and the Investor Rights Agreement. For purposes of this Agreement,
      a
“Permitted Transferee” shall mean any person or entity who is an affiliate of
      Issuee (as such term is defined in Rule 144 promulgated under the Securities
      Act
      of 1933, as amended). Upon any transfer permitted by the second sentence of
      this
      Section 4, the Company shall be obligated to such transferee to perform all
      of
      its covenants under this Agreement as if such transferee were an
      Issuee.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    11. IN
      WITNESS WHEREOF, the parties have executed this Subscription Agreement as of
      the
      date first above written.

     

    
      	 	
              PROELITE,
                INC.

               

               

              By:_____________________________________

              Name: Douglas
                DeLuca

              Title: Chief
                Executive Officer

            
	 	 
	 	 
	 	
              SHOWTIME
                NETWORKS
                INC.

               

               

              By:_____________________________________

              Name: 

              Title: 

            

    

    

     

    
      
        
        

      

      
        5Exhibit
      10.2

    INVESTOR
      RIGHTS AGREEMENT

     

    This
      Investor Rights Agreement (this “Agreement”) is made and entered into as of
      February 22, 2008, by and among ProElite, Inc., a New Jersey corporation
      (the “Company”), and Showtime Networks Inc. (“Holder”) with reference to the
      following.

     

    A. Pursuant
      to the Subscription Agreement between the Company and Holder dated as of the
      date hereof, the Company has issued to Holder two warrants (the “Warrants”) to
      purchase an aggregate of 4,000,000 shares of the Company’s Common Stock
      (“Shares”).

     

    B. The
      parties desire to enter into this Agreement providing for certain registration
      rights with respect to the shares of the Company’s Common Stock issuable upon
      exercise of the Warrants (the “Warrant Shares”), and restrictions on resale.

     

    The
      Company, and the Holder hereby agree as follows:

     

    1. Definitions.
      Capitalized terms used and not otherwise defined herein that are defined in
      the
      Warrant Agreements shall have the meanings given such terms in the Warrant
      Agreements. As used in this Agreement, the following terms shall have the
      following meanings:

     

    “Closing”
means
      the closing of the transactions contemplated by the Purchase
      Agreement.

     

    “Commission”
means
      the Securities and Exchange Commission.

     

    “Common
      Stock”
means
      shares of the Company’s Common Stock.

     

    “Effectiveness
      Date”
means,
      with respect to the Registration Statement required to be filed hereunder,
      the
      earlier of (a) the 120th
      day
      following the filing of the Registration Statement, and (b) the fifth trading
      day following the date on which the Company is notified by the Commission that
      the Registration Statement will not be reviewed or is no longer subject to
      further review and comments. 

     

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2.1 except that for purposes of Section
      3,
      the Effectiveness Period shall extend until all Shares issuable upon exercise
      of
      the Warrants have been sold or may be sold without volume restrictions pursuant
      to Rule 144(k).

     

    “Filing
      Date”
means,
      with respect to the Registration Statement required to be filed hereunder,
      the
      later to occur of the 45th
      calendar
      day following the date that the Company receives a request from Holder that
      the
      Company effect a registration with respect to at least 50% of the Registrable
      Securities or six months from the effective date of the Investor Registration
      Statement.

     

    “Holder”
or
      “Holders”
means
      the holder or holders, as the case may be, from time to time, of Registrable
      Securities. 

     

    “Indemnified
      Party”
shall
      have the meaning set forth in Section 6(c).

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    “Indemnifying
      Party”
shall
      have the meaning set forth in Section 6(c).

     

    “Losses”
shall
      have the meaning set forth in Section 6(a).

     

    “Permitted
      Transferee”
shall
      have the meaning set forth in the Subscription Agreement as of the date hereof
      between Holder and the Company.

     

    “Person”
means
      any individual, partnership, corporation, group, trust or other legal
      entity.

     

    “Plan
      of Distribution”
shall
      have the meaning set forth in Section 2.1.

     

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened. 

     

    “Prospectus”
means
      the prospectus included in the Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus. 

     

    “Registrable
      Securities”
means,
      as to this Agreement only, all of the Warrant Shares, together with any shares
      of the Company’s Common Stock issued or issuable upon any stock split, dividend
      or other distribution, recapitalization or similar event with respect to the
      foregoing. 

     

    “Registration
      Statement”
means
      the registration statements required to be filed hereunder, including (in each
      case) the Prospectus, amendments and supplements to the registration statement
      or Prospectus, including pre- and post-effective amendments, all exhibits
      thereto, and all material incorporated by reference or deemed to be incorporated
      by reference in the registration statement. 

     

    “Rule
      415”
means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule. 

     

    “Rule
      424”
means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule. 

     

    “Securities
      Act”
means
      to Securities Act of 1933, as amended.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Selling
      Shareholder Questionnaire”
shall
      have the meaning set forth in Section 4(a).

     

    “Transfer”
means
      any assignment, sale, disposition or any other like transfer of
      securities.

     

    “Warrant
      Agreements”
means
      the applicable Warrants issued pursuant to the Subscription
      Agreement.

     

    2. Registration.
      

     

    2.1 On
      or
      prior to the Filing Date, the Company shall prepare and file with the
      Commission, and in accordance with the Securities Act and all applicable
      regulations promulgated thereunder, the Registration Statement covering the
      resale of all of the Registrable Securities (or so much of the Registrable
      Securities as Holder requests to be included therein) for an offering to be
      made
      on a continuous basis pursuant to Rule 415. The Registration Statement required
      hereunder shall be on Form SB-2 (except if the Company is not then eligible
      to
      register for resale the Registrable Securities on Form SB-2, in which case
      the
      Registration shall be on another appropriate form in accordance herewith).
      The
      Registration Statement required hereunder shall contain (except if otherwise
      directed by the Holders) substantially the “Plan of Distribution” attached
      hereto as Annex A. Subject to the terms of this Agreement, the Company shall
      use
      its best efforts to cause the Registration Statement to be declared effective
      under the Securities Act as promptly as possible after the filing thereof,
      but
      in any event not later than the Effectiveness Date, and shall use its best
      efforts to keep the Registration Statement continuously effective under the
      Securities Act until the date when all of the Shares have been sold or may
      be
      sold without volume restrictions pursuant to Rule 144(k) as determined by the
      counsel to the Company pursuant to a written opinion letter to such effect,
      addressed and acceptable to the Company’s transfer agent and the affected
      Holders (the “Effectiveness
      Period”).

     

    2.2 Notwithstanding
      the foregoing obligations, if the Company furnishes to Holder a certificate
      signed by the Company’s chief executive officer stating that in the good faith
      judgment of the Company’s Board of Directors it would be materially detrimental
      to the Company and its shareholders for such registration statement to either
      become effective or remain effective for as long as such registration statement
      otherwise would be required to remain effective, because such action would
      (i)
      materially interfere with a significant acquisition, corporate reorganization,
      or other similar transaction involving the Company; (ii) require premature
      disclosure of material information that the Company has a bona fide business
      purpose for preserving as confidential; or (iii) render the Company unable
      to
      comply with requirements under the Securities Act or Exchange Act, then the
      Company shall have the right to defer taking action with respect to such filing,
      and any time periods with respect to filing or effectiveness thereof shall
      be
      tolled correspondingly, for a period of not more than thirty (30) days after
      the
      request of Holder; provided,
      however,
      that
      the Company may not invoke this right more than once in any twelve (12) month
      period; and provided
      further
      that the
      Company shall not register any securities for its own account or that of any
      other stockholder during such thirty (30) day period other than pursuant to
      a
      registration relating to the sale of securities to employees of the Company
      pursuant to a stock option, stock purchase, or similar plan; a registration
      on
      any form that does not include substantially the same information as would
      be
      required to be included in a registration statement covering the sale of the
      Registrable Securities; or a registration in which the only Common Stock being
      registered is Common Stock issuable upon conversion of debt securities that
      are
      also being registered.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    3. “Piggy
      Back” Registration.

     

    If
      at any
      time during the Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities and the Company shall
      determine to prepare and file with the Commission a registration statement
      relating to an offering for its own account under the Securities Act of any
      of
      its equity securities, other than on Form S-4 or Form S-8 (each as promulgated
      under the Securities Act) or their then equivalents relating to equity
      securities to be issued solely in connection with any acquisition of any entity
      or business or equity securities issuable in connection with the stock option
      or
      other employee benefit plans, then the Company shall send to Holder a written
      notice of such determination and, if within fifteen days after the date of
      such
      notice, Holder shall so request in writing, the Company shall include in such
      registration statement all or any part of such Registrable Securities such
      Holder requests to be registered, subject to customary underwriter cutbacks
      applicable to all holders of registration rights. In such event, the provisions
      of Section 4 shall apply to such a registration.

     

    4. Registration
      Procedures.

     

    In
      connection with the Company’s registration obligations pursuant to this
      Agreement, the Company shall:

     

    (a) Not
      less
      than five trading days prior to the filing of the Registration Statement or
      any
      related Prospectus or any amendment or supplement thereto, the Company shall,
      (i) furnish to Holder copies of any disclosure relating to the Holders,
      including but not limited to the entire Selling Stockholder and Plan of
      Distribution sections which sections shall be subject to the review of such
      Holders, and (ii) cause its officers and directors, counsel and independent
      certified public accountants to respond to such inquiries as shall be necessary,
      in the reasonable opinion of counsel, to conduct a reasonable investigation
      within the meaning of the Securities Act. The Company shall not file the
      Registration Statement or any such Prospectus or any amendments or supplements
      thereto to which the Holder shall reasonably object in good faith, provided
      that
      the Company is notified of such objection in writing no later than two trading
      days after the Holder has been so furnished copies of such documents. Prior
      to
      any filing relating to the Registration Statement, Holder agrees to furnish
      to
      the Company a completed Questionnaire substantially in the form attached to
      this
      Agreement as Annex B (a “Selling
      Shareholder Questionnaire”)
      within
      five trading days of written request by the Company.

     

    (b) (i)
      Prepare
      and file with the Commission such amendments, including post-effective
      amendments, to the Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep the Registration Statement continuously
      effective for the Effectiveness Period and prepare and file with the Commission
      such additional Registration Statements in order to register for resale under
      the Securities Act all of the Registrable Securities; (ii) cause the related
      Prospectus to be amended or supplemented by any required Prospectus supplement,
      and as so supplemented or amended to be filed pursuant to Rule 424; (iii)
      respond as promptly as reasonably practicable to any comments received from
      the
      Commission with respect to the Registration Statement or any amendment thereto
      and, as promptly as reasonably practicable, provide Holder true and complete
      copies of all correspondence from and to the Commission relating to the
      Registration Statement; (iv) comply with the provisions of the Securities Act
      and the Exchange Act with respect to the disposition of all Registrable
      Securities covered by the Registration Statement during the applicable period
      in
      accordance with the intended methods of disposition by the Holder set forth
      in
      the Registration Statement as so amended or in such Prospectus as so
      supplemented; and (v) take all other actions as may be reasonably necessary
      or
      appropriate in furtherance of the matters required by this Section
      3(b).

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (c) Notify
      Holder as promptly as reasonably practicable and confirm such notice in writing
      promptly following the day (i)(A) when a Prospectus or any Prospectus supplement
      or post-effective amendment to the Registration Statement is proposed to be
      filed; (B) when the Commission notifies the Company whether there will be a
      “review” of the Registration Statement and whenever the Commission comments in
      writing on the Registration Statement (the Company shall upon request provide
      true and complete copies thereof and all written responses thereto to each
      of
      the Holders); and (C) with respect to the Registration Statement or any
      post-effective amendment, when the same has become effective; (ii) of any
      request by the Commission or any other Federal or state governmental authority
      during the period of effectiveness of the Registration Statement for amendments
      or supplements to the Registration Statement or Prospectus or for additional
      information, (iii) of the issuance by the Commission or any other federal or
      state governmental authority of any stop order suspending the effectiveness
      of
      the Registration Statement covering any or all of the Registrable Securities
      or
      the initiation of any Proceedings for that purpose; (iv) of the receipt by
      the
      Company of any notification with respect to the suspension of the qualification
      or exemption from qualification of any of the Registrable Securities for sale
      in
      any jurisdiction, or the initiation or threatening of any Proceeding for such
      purpose; and (v) of the occurrence of any event or passage of time that makes
      the financial statements included in the Registration Statement ineligible
      for
      inclusion therein or any statement made in the Registration Statement or
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference untrue in any material respect or that requires any revisions to
      the
      Registration Statement, Prospectus or other documents so that, in the case
      of
      the Registration Statement or the Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any 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. 

     

    (d) Use
      commercially reasonable efforts to avoid the issuance of, or, if issued, obtain
      the withdrawal of (i) any order suspending the effectiveness of the Registration
      Statement, or (ii) any suspension of the qualification (or exemption from
      qualification) of any of the Registrable Securities for sale in any
      jurisdiction, at the earliest practicable moment.

     

    (e) Furnish
      to Holder, without charge and upon request, at least one conformed copy of
      the
      Registration Statement and each amendment thereto, including financial
      statements and schedules, all documents incorporated or deemed to be
      incorporated therein by reference to the extent requested by such Person, and
      all exhibits to the extent requested by such Person (including those previously
      furnished or incorporated by reference) promptly after the filing of such
      documents with the Commission.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (f) Promptly
      deliver to Holder, without charge and upon request, as many copies of the
      Prospectus or Prospectuses (including each form of prospectus) and each
      amendment or supplement thereto as such Persons may reasonably request in
      connection with resales by Holder. Subject to the terms of this Agreement,
      the
      Company hereby consents to the use of such Prospectus and each amendment or
      supplement thereto by Holder in connection with the offering and sale of the
      Registrable Securities covered by such Prospectus and any amendment or
      supplement thereto, except after the giving on any notice pursuant to Section
      4(c)
      until
      the Company has delivered the Advice and either the supplemented prospectus
      or
      the amended Registration Statement as contemplated by Section 7(c).

     

    (g) Prior
      to
      any resale of Registrable Securities by the Holder, use its commercially
      reasonable efforts to register or qualify or cooperate with the Holder in
      connection with the registration or qualification (or exemption from the
      Registration or qualification) of such Registrable Securities for the resale
      by
      the Holder under the securities or Blue Sky laws of such jurisdictions within
      the United States as any Holder reasonably requests in writing, to keep the
      Registration or qualification (or exemption therefrom) effective during the
      distribution period described in the Registration Statement and to do any and
      all other acts or things reasonably necessary to enable the disposition in
      such
      jurisdictions of the Registrable Securities covered by the Registration
      Statement, provided, that the Company shall not be required to qualify generally
      to do business in any jurisdiction where it is not then so qualified, subject
      the Company to any tax in any such jurisdiction where it is not then so subject
      or file a general consent to service of process in any such
      jurisdiction.

     

    (h) If
      requested by the Holder, cooperate with the Holder to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to the Registration Statement, which
      certificates shall be free, to the extent permitted by any applicable purchase
      agreement, of all restrictive legends, and to enable such Registrable Securities
      to be in such denominations and registered in such names as any such Holders
      may
      request.

     

    (i) Upon
      the
      occurrence of any event contemplated by Section 4(c)(v), as promptly as
      reasonably possible, prepare a supplement or amendment, including a
      post-effective amendment, to the Registration Statement or a supplement to
      the
      related Prospectus or any document incorporated or deemed to be incorporated
      therein by reference, and file any other required document so that, as
      thereafter delivered, neither the Registration Statement nor such Prospectus
      will 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. If
      the
      Company notifies Holder in accordance with clauses (ii) through (v) of Section
      4(c)
      above to
      suspend the use of any Prospectus until the requisite changes to such Prospectus
      have been made, then Holder shall suspend use of such Prospectus. The Company
      will use its best efforts to ensure that the use of the Prospectus may be
      resumed as promptly as is practicable.

     

    (j) Comply
      with all applicable rules and regulations of the Commission.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    5. Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to any Registration Statement. The
      fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses with respect to filings required to be made with the trading
      market on which the Common Stock is then listed for trading, (ii) printing
      expenses (including, without limitation, expenses of printing certificates
      for
      Registrable Securities and of printing prospectuses if the printing of
      prospectuses is reasonably requested by the holders of a majority of the
      Registrable Securities included in the Registration Statement), (iii) messenger,
      telephone and delivery expenses, (iv) fees and disbursements of counsel for
      the
      Company, (v) Securities Act liability insurance, if the Company so desires
      such
      insurance, and (vi) fees and expenses of all other Persons retained by the
      Company in connection with the consummation of the transactions contemplated
      by
      this Agreement. In addition, the Company shall be responsible for all of its
      internal expenses incurred in connection with the consummation of the
      transactions contemplated by this Agreement (including, without limitation,
      all
      salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit and the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange as required hereunder. In no event shall the Company be
      responsible for any broker or similar commissions or any legal fees or other
      costs of Holder. 

     

    6. Indemnification.

     

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless Holder, the officers, directors, agents, managers, members,
      partners, shareholders and employees of Holder, each Person who controls Holder
      (within the meaning of Section 15 of the Securities Act or Section 20 of the
      Exchange Act) and the officers, directors, agents and employees of each such
      controlling Person, to the fullest extent permitted by applicable law, from
      and
      against any and all losses, claims, damages, liabilities, costs (including,
      without limitation, reasonable attorneys’ fees) and expenses (collectively,
“Losses”),
      as
      incurred, arising out of or relating to any untrue or alleged untrue statement
      of a material fact contained in the Registration Statement, any Prospectus
      or
      any form of prospectus or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein (in the case of any Prospectus or form of prospectus
      or
      supplement thereto, in light of the circumstances under which they were made)
      not misleading, except to the extent, but only to the extent, that (i) such
      untrue statements or omissions are based solely upon information regarding
      Holder furnished in writing to the Company by Holder expressly for use therein,
      or to the extent that such information relates to Holder or Holder’s proposed
      method of distribution of Registrable Securities and was reviewed and expressly
      approved in writing by such Holder expressly for use in the Registration
      Statement, such Prospectus or such form of Prospectus or in any amendment or
      supplement thereto (it being understood that Holder has approved Annex A hereto
      for this purpose) or (ii) in the case of an occurrence of an event of the type
      specified in Section 4(c)(ii)
      through (v), the use by Holder of an outdated or defective Prospectus after
      the
      Company has notified Holder in writing that the Prospectus is outdated or
      defective. The Company shall notify Holder promptly of the institution, threat
      or assertion of any Proceeding of which the Company is aware in connection
      with
      the transactions contemplated by this Agreement. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (b) Indemnification
      by Holder.
      Holder
      shall, severally and not jointly, indemnify and hold harmless the Company,
      its
      directors, officers, agents and employees, each Person who controls the Company
      (within the meaning of Section 15 of the Securities Act and Section 20 of the
      Exchange Act), and the directors, officers, agents or employees of such
      controlling Persons, to the fullest extent permitted by applicable law, from
      and
      against all Losses, as incurred, to the extent arising out of or based solely
      upon: (i) Holder’s failure to comply with the prospectus delivery requirements
      of the Securities Act or (ii) any untrue or alleged untrue statement of a
      material fact contained in any Registration Statement, any Prospectus, or any
      form of prospectus, or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein not misleading, in each case (A) to the extent, but
      only
      to the extent, that such untrue statement or omission is contained in any
      information so furnished in writing by Holder to the Company specifically for
      inclusion in the Registration Statement or such Prospectus or (B) to the extent
      that (x) such untrue statements or omissions are based solely upon information
      regarding Holder furnished in writing to the Company by such Holder expressly
      for use therein, or (C) to the extent that such information relates to Holder
      or
      Holder’s proposed method of distribution of Registrable Securities and was
      reviewed and expressly approved in writing by Holder expressly for use in the
      Registration Statement (it being understood that Holder has approved Annex
      A
      hereto for this purpose), such Prospectus or such form of Prospectus or in
      any
      amendment or supplement thereto or (y) in the case of an occurrence of an event
      of the type specified in Section 4(c)(ii)
      through (v), the use by Holder of an outdated or defective Prospectus after
      the
      Company has notified Holder in writing that the Prospectus is outdated or
      defective; provided,
      however,
      that
      the indemnity agreement contained in this Section 5(b) shall not apply to
      amounts paid in settlement of any such loss, claim, damage, liability or action
      if such settlement is effected without the consent of Holder. In no event shall
      the liability of any selling Holder hereunder be greater in amount than the
      dollar amount of the net proceeds received by Holder upon the sale of the
      Registrable Securities giving rise to such indemnification
      obligation. 

     

    (c) Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an “Indemnified
      Party”),
      such
      Indemnified Party shall promptly notify the Person from whom indemnity is sought
      (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the
      right to assume the defense thereof, including the employment of counsel
      reasonably satisfactory to the Indemnified Party and the payment of all fees
      and
      expenses incurred in connection with defense thereof; provided, that the failure
      of any Indemnified Party to give such notice shall not relieve the Indemnifying
      Party of its obligations or liabilities pursuant to this Agreement, except
      (and
      only) to the extent that it shall be finally determined by a court of competent
      jurisdiction (which determination is not subject to appeal or further review)
      that such failure shall have prejudiced the Indemnifying Party. 

     

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (i) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; (ii) the Indemnifying Party shall have failed promptly to assume
      the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (iii) the named parties to any
      such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such Indemnified Party shall reasonably believe
      that a material conflict of interest is likely to exist if the same counsel
      were
      to represent such Indemnified Party and the Indemnifying Party (in which case,
      if such Indemnified Party notifies the Indemnifying Party in writing that it
      elects to employ separate counsel at the expense of the Indemnifying Party,
      the
      Indemnifying Party shall not have the right to assume the defense thereof and
      the reasonable fees and expenses of one separate counsel shall be at the expense
      of the Indemnifying Party). The Indemnifying Party shall not be liable for
      any
      settlement of any such Proceeding effected without its written consent, which
      consent shall not be unreasonably withheld. No Indemnifying Party shall, without
      the prior written consent of the Indemnified Party, effect any settlement of
      any
      pending Proceeding in respect of which any Indemnified Party is a party, unless
      such settlement includes an unconditional release of such Indemnified Party
      from
      all liability on claims that are the subject matter of such Proceeding.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Subject
      to the terms of this Agreement, all reasonable fees and expenses of the
      Indemnified Party (including reasonable fees and expenses to the extent incurred
      in connection with investigating or preparing to defend such Proceeding in
      a
      manner not inconsistent with this Section) shall be paid to the Indemnified
      Party, as incurred, within ten trading days of written notice thereof to the
      Indemnifying Party; provided, that the Indemnified Party shall promptly
      reimburse the Indemnifying Party for that portion of such fees and expenses
      applicable to such actions for which such Indemnified Party is not entitled
      to
      indemnification hereunder, determined based upon the relative faults of the
      parties. 

     

    (d) Contribution.
      If a
      claim for indemnification under Section 6(a)
      or
6(b)
      is
      unavailable to an Indemnified Party (by reason of public policy or otherwise),
      then each Indemnifying Party, in lieu of indemnifying such Indemnified Party,
      shall contribute to the amount paid or payable by such Indemnified Party as
      a
      result of such Losses, in such proportion as is appropriate to reflect the
      relative fault of the Indemnifying Party and Indemnified Party in connection
      with the actions, statements or omissions that resulted in such Losses as well
      as any other relevant equitable considerations. The relative fault of such
      Indemnifying Party and Indemnified Party shall be determined by reference to,
      among other things, whether any action in question, including any untrue or
      alleged untrue statement of a material fact or omission or alleged omission
      of a
      material fact, has been taken or made by, or relates to information supplied
      by,
      such Indemnifying Party or Indemnified Party, and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action, statement or omission. The amount paid or payable by a party as a result
      of any Losses shall be deemed to include, subject to the limitations set forth
      in this Agreement, any reasonable attorneys’ or other reasonable fees or
      expenses incurred by such party in connection with any Proceeding to the extent
      such party would have been indemnified for such fees or expenses if the
      indemnification provided for in this Section was available to such party in
      accordance with its terms. 

     

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 6(d)
      were
      determined by pro rata allocation or by any other method of allocation that
      does
      not take into account the equitable considerations referred to in the
      immediately preceding paragraph. Notwithstanding the provisions of this Section
      6(d),
      no
      Holder shall be required to contribute, in the aggregate, any amount in excess
      of the amount by which the proceeds actually received by such Holder from the
      sale of the Registrable Securities subject to the Proceeding exceeds the amount
      of any damages that such Holder has otherwise been required to pay by reason
      of
      such untrue or alleged untrue statement or omission or alleged omission, except
      in the case of fraud by such Holder. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties. 

     

    7. Rights
      and Obligations of Holder and the Company.
      

     

    (a) Remedies.
      In the
      event of a breach by the Company or by Holder of any of their obligations under
      Sections 2 and 3 of this Agreement, Holder or the Company, as the case may
      be, in addition to being entitled to exercise all rights granted by law and
      under this Agreement will be entitled to specific performance of its rights
      under this Agreement. The parties agree that monetary damages would not provide
      adequate compensation for any losses incurred by reason of a breach by it of
      any
      of the provisions of this Agreement and hereby further agrees that, in the
      event
      of any action for specific performance in respect of such breach, it shall
      waive
      the defense that a remedy at law would be adequate. 

     

    (b) Compliance.
      Holder
      covenants and agrees that he will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to the Registration Statement. 

     

    (c) Discontinued
      Disposition.
      Holder
      agrees by his acquisition of such Registrable Securities that, upon receipt
      of a
      notice from the Company of the occurrence of any event of the kind described
      in
      Section 4(c),
      Holder
      will forthwith discontinue disposition of such Registrable Securities under
      the
      Registration Statement until Holder’s receipt of the copies of the supplemented
      Prospectus and/or amended Registration Statement or until it is advised in
      writing (the “Advice”)
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement. The Company will use its best efforts to ensure that
      the
      use of the Prospectus may be resumed as promptly as it practicable.

     

    8. Lock-Up.

     

    During
      the period beginning on the date hereof and ending March 5, 2009 (the
“Lock-up Period”), Holder will not sell, transfer, assign, pledge or hypothecate
      any Warrants or Warrant Shares (the “Covered
      Securities”),
      unless it is to a Permitted Transferee that agrees to be subject to the terms
      and conditions of this Section. In addition, during the Lock-Up Period, the
      Covered Securities shall not be the subject of any hedging, short sale,
      derivative, put, or call transactions that would result in the effective
      economic disposition of the Covered Securities by any person. The obligations
      of
      the Holder that are contained in herein also apply (i) to all Covered
      Securities that Holder may receive as a stock dividend or other distribution
      on
      the Covered Securities and (ii) to all other securities of the Company that
      Holder may receive in a recapitalization or similar transaction in exchange
      for
      Covered Securities acquired by Holder.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    9. Miscellaneous.

     

    (a) Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be made in accordance with the provisions of the
      Subscription Agreement. 

     

    (b) Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. Each Holder may assign their respective rights hereunder to its
      Permitted Transferees.

     

    (c) Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

     

    (d) Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be with the internal laws of the State of California,
      without giving effect to the principles of conflicts of law. All actions arising
      out of or relating to this Agreement shall be heard and determined exclusively
      in any California federal court sitting in the City of Los Angeles.

     

    (e) Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law. 

     

    (f) Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their commercially reasonable
      efforts to find and employ an alternative means to achieve the same or
      substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

     

    (g) Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof. 

     

    [SIGNATURE
      PAGES FOLLOW]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Investor Rights Agreement as
      of
      the date first written above. 

     

    
      	 	
              PROELITE,
                INC.

               

               

              By:____________________________________

              Name: Douglas
                DeLuca

              Title: Chief
                Executive Officer

            
	 	 
	 	 
	 	
              SHOWTIME
                NETWORKS INC.

               

               

              By:____________________________________

              Name:

              Title:

            

    

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
          Exhibit
            10.2

        

      

    

    ANNEX
      A

     

    PLAN
      OF DISTRIBUTION

     

    The
      Selling Stockholders (the “Selling
      Stockholders”)
      of the
      common stock (“Common
      Stock”)
      of Pro
      Elite, Inc., a New Jersey corporation (the “Company”)
      and
      any of their pledgees, assignees and successors-in-interest may, from time
      to
      time, sell any or all of their shares of Common Stock on any stock exchange,
      market or trading facility on which the shares are traded or in private
      transactions. These sales may be at fixed or negotiated prices. The Selling
      Stockholders may use any one or more of the following methods when selling
      shares: 

     

    
      	 	
              ·

            	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits purchasers; 

            

    

     

    
      	 	
              ·

            	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction; 

            

    

     

    
      	 	
              ·

            	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account; 

            

    

     

    
      	 	
              ·

            	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

     

    
      	 	
              ·

            	
              privately
                negotiated transactions;

            

    

     

    
      	 	
              ·

            	
              settlement
                of short sales entered into after the date of this
                prospectus;

            

    

     

    
      	 	
              ·

            	
              broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a stipulated price per share;

            

    

     

    
      	 	
              ·

            	
              a
                combination of any such methods of
                sale;

            

    

     

    
      	 	
              ·

            	
              through
                the writing or settlement of options or other hedging transactions,
                whether through an options exchange or otherwise; or
                

            

    

     

    
      	 	
              ·

            	
              any
                other method permitted pursuant to applicable law.
                

            

    

     

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act of 1933, as amended (the “Securities
      Act”),
      if
      available, rather than under this prospectus. 

     

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the Selling Stockholders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated. Each
      Selling Stockholder does not expect these commissions and discounts relating
      to
      its sales of shares to exceed what is customary in the types of transactions
      involved. 

     

    
      
        
        

      

      
        A
          -
          1

        
          

        

      

      
        
        

      

    

    In
      connection with the sale of our common stock or interests therein, the Selling
      Stockholders may enter into hedging transactions with broker-dealers or other
      financial institutions, which may in turn engage in short sales of the common
      stock in the course of hedging the positions they assume. The Selling
      Stockholders may also sell shares of our common stock short and deliver these
      securities to close out their short positions, or loan or pledge the common
      stock to broker-dealers that in turn may sell these securities. The Selling
      Stockholders may also enter into option or other transactions with
      broker-dealers or other financial institutions or the creation of one or more
      derivative securities which require the delivery to such broker-dealer or other
      financial institution of shares offered by this prospectus, which shares such
      broker-dealer or other financial institution may resell pursuant to this
      prospectus (as supplemented or amended to reflect such transaction).

     

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act. Each Selling Stockholder has informed the
      Company that it does not have any agreement or understanding, directly or
      indirectly, with any person to distribute the Common Stock. 

     

    The
      Company is required to pay certain fees and expenses incurred by the Company
      incident to the registration of the shares. The Company has agreed to indemnify
      the Selling Stockholders against certain losses, claims, damages and
      liabilities, including liabilities under the Securities Act.

     

    Because
      Selling Stockholders may be deemed to be “underwriters” within the meaning of
      the Securities Act, they will be subject to the prospectus delivery requirements
      of the Securities Act. In addition, any securities covered by this prospectus,
      which qualify for sale pursuant to Rule 144 under the Securities Act, may be
      sold under Rule 144 rather than under this prospectus. Each Selling Stockholder
      has advised us that they have not entered into any agreements, understandings
      or
      arrangements with any underwriter or broker-dealer regarding the sale of the
      resale shares. There is no underwriter or coordinating broker acting in
      connection with the proposed sale of the resale shares by the Selling
      Stockholders. 

     

    We
      agreed
      to keep this prospectus effective until the earlier of (i) the date on which
      the
      shares may be resold by the Selling Stockholders without registration and
      without regard to any volume limitations by reason of Rule 144(k) under the
      Securities Act or any other rule of similar effect or (ii) all of the shares
      have been sold pursuant to the prospectus or Rule 144 under the Securities
      Act
      or any other rule of similar effect. The resale shares will be sold only through
      registered or licensed brokers or dealers if required under applicable state
      securities laws. In addition, in certain states, the resale shares may not
      be
      sold unless they have been registered or qualified for sale in the applicable
      state or an exemption from the registration or qualification requirement is
      available and is complied with. 

     

    Under
      applicable rules and regulations under the Exchange Act, any person engaged
      in
      the distribution of the resale shares may not simultaneously engage in market
      making activities with respect to our common stock for a period of two business
      days prior to the commencement of the distribution. In addition, the Selling
      Stockholders will be subject to applicable provisions of the Exchange Act and
      the rules and regulations thereunder, including Regulation M, which may limit
      the timing of purchases and sales of shares of our common stock by the Selling
      Stockholders or any other person. We will make copies of this prospectus
      available to the Selling Stockholders and have informed them of the need to
      deliver a copy of this prospectus to each purchaser at or prior to the time
      of
      the sale. 

     

    
      
        
        

      

      
        A
          -
          2

        
          

        

      

      
        
          Exhibit
            10.2

        

      

       

    

    ANNEX
      B

     

    Pro
      Elite, Inc.

     

    SELLING
      SECURITYHOLDER NOTICE AND QUESTIONNAIRE

     

    The
      undersigned beneficial owner of common stock, (the “Common
      Stock”),
      of
      Pro Elite, Inc., a New Jersey corporation (the “Company”),
      (the
“Registrable
      Securities”)
      understands that the Company has filed or intends to file with the Securities
      and Exchange Commission (the “Commission”)
      a
      registration statement on Form SB-2 (the “Registration Statement”) for the
      registration and resale under Rule 415 of the Securities Act of 1933, as amended
      (the “Securities
      Act”),
      of
      the Registrable Securities, in accordance with the terms of the Investor Rights
      Agreement, dated as of February 12, 2008 (the “Investor
      Rights Agreement”),
      among
      the Company and the holder named therein. A copy of the Investor Rights
      Agreement is available from the Company upon request at the address set forth
      below. All capitalized terms not otherwise defined herein shall have the
      meanings ascribed thereto in the Investor Rights Agreement. 

     

    Certain
      legal consequences arise from being named as a selling securityholder in the
      Registration Statement and the related prospectus. Accordingly, holders and
      beneficial owners of Registrable Securities are advised to consult their own
      securities law counsel regarding the consequences of being named or not being
      named as a selling securityholder in the Registration Statement and the related
      prospectus. 

     

    NOTICE

     

    The
      undersigned beneficial owner (the “Selling
      Securityholder”)
      of
      Registrable Securities hereby elects to include the Registrable Securities
      owned
      by it and listed below in Item 3 (unless otherwise specified under such Item
      3)
      in the Registration Statement. 

     

     

    
      
        
        

      

      
        B
          - 1

        
          

        

      

      
        
        

      

    

    QUESTIONNAIRE

     

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate: 

     

    
      	
              1. 

            	
              Name.

            
	 	
              (a) 

            	
              Full
                Legal Name of Selling Securityholder 

               

               

            
	 	 	 
	 	
              (b) 

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities Listed in Item 3 below are held:

               

               

            
	 	 	 
	 	
              (c) 

            	
              Full
                Legal Name of Natural Control Person (which means a natural person
                who
                directly or indirectly alone or with others has power to vote or
                dispose
                of the securities covered by the questionnaire): 

               

               

            
	 	 	 
	
              2. 

            	
              Address
                for Notices to Selling Securityholder: 

               

              Telephone:_______________________________________________________________________________

               

              Fax:_____________________________________________________________________________________

               

              Contact
                Person:____________________________________________________________________________

            
	 	 
	
              3. 

            	
              Beneficial
                Ownership of Registrable Securities: 

            
	 	 
	 	
              (a) 

            	
              Type
                and Number of Registrable Securities beneficially owned: 

               

               

            
	 	 	 
	 	 	 
	 	 	 
	
              4. 

            	
              Broker-Dealer
                Status:

            
	 	 
	 	
              (a) 

            	
              Are
                you a broker-dealer?

            
	 	 	 
	 	 	
              Yes

            	
               ̈

            	
              No

            	
               ̈

            
	 	 	 	 	 	 
	 	 	
              Note: If
                yes, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    
      
        
        

      

      
        B
          - 2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b) 

            	
              Are
                you an affiliate of a broker-dealer?

            
	 	 	 
	 	 	
              Yes

            	
               ̈

            	
              No

            	
               ̈

            
	 	 	 	 	 	 
	 	
              (c) 

            	
              If
                you are an affiliate of a broker-dealer, do you certify that you
                bought
                the Registrable Securities in the ordinary course of business, and
                at the
                time of the purchase of the Registrable Securities to be resold,
                you had
                no agreements or understandings, directly or indirectly, with any
                person
                to distribute the Registrable Securities?

            
	 	 	 
	 	 	
              Yes

            	
               ̈

            	
              No

            	
               ̈

            
	 	 	 	 	 	 
	
              5. 

            	 	
              Beneficial
                Ownership of Other Securities of the Company Owned by the Selling
                Securityholder. 

            
	 	 	 
	 	 	
              Except
                as set forth below in this Item 5, the undersigned is not the beneficial
                or registered owner of any securities of the Company other than the
                Registrable Securities listed above in Item 3.

            
	 	 	 
	 	
              (a) 

            	
              Type
                and Amount of Other Securities beneficially owned by the Selling
                Securityholder:

               

               

            
	 	 	 
	 	 	 
	
              6. 

            	 	
              Relationship
                with the Company:

            
	 	 	 
	 	 	
              Except
                as set forth below, neither the undersigned nor any of its affiliates,
                officers, directors or principal equity holders (owners of 5% of
                more of
                the equity securities of the undersigned) has held any position or
                office
                or has had any other material relationship with the Company (or its
                predecessors or affiliates) during the past three years. State any
                exceptions here:

            
	 	 	 
	 	 	
              State
                any exceptions here:

               

               

            
	 	 	 

    

     

    
 

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein that may occur subsequent to the date hereof
      at any time while the Registration Statement remains effective. 

     

    
      
        
        

      

      
        B
          - 3

        
          

        

      

      
        
        

      

    

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items 1 through 6 and the inclusion of such
      information in the Registration Statement and the related prospectus. The
      undersigned understands that such information will be relied upon by the Company
      in connection with the preparation or amendment of the Registration Statement
      and the related prospectus. 

     

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
      and Questionnaire to be executed and delivered either in person or by its duly
      authorized agent. 

     

    

    
      	
              Dated: ________________

            	
              Beneficial
                Owner

               

              ______________________________________

               

               

              By:_________________________________________

              Name:__________________________________

              Title:___________________________________

            

    

    

    

    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
      THE ORIGINAL BY OVERNIGHT MAIL, TO: 

    

    
      
        
        

      

      
        B
          - 4

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