Document:

Exhibit
4.1

NEITHER THESE SECURITIES
NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) OR
THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
AND APPLICABLE STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD EXCEPT PURSUANT TO (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR (II) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS.  THESE SECURITIES AND THE SECURITIES ISSUABLE
UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE
MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

INTERNATIONAL
FIGHT LEAGUE, INC.

WARRANT
TO PURCHASE COMMON STOCK

	
  Warrant No. B-1

  	
  Original Issue Date:
  March 1, 2007

  

 

INTERNATIONAL FIGHT
LEAGUE, INC., a Delaware corporation (the “Company”),
hereby certifies that, for value received, PIPER JAFFRAY & CO. or its
permitted registered assigns (the “Holder”),
is entitled to purchase from the Company up to a total of 581,280 shares of
common stock, $0.01 par value per share (the “Common
Stock”), of the Company (each such share, a “Warrant Share” and all such shares, the “Warrant Shares”) at an exercise price per
share equal to $1.25 (as adjusted from time to time as provided in Section 8
herein, the “Exercise Price”), at
any time and from time to time from and after the Original Issue Date (the “Issuance Date”) and through and including
5:00 P.M., New York City time, on March 1, 2012 (the “Expiration Date”), and subject to the
following terms and conditions:

The Holder hereby agrees
that the representations and warranties set forth in Appendix A to Schedule
1, annexed hereto and made a part hereof, are true, accurate and complete
as of the Issuance Date.

1.             Registration of Warrants.  The Company shall register this Warrant, upon
records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the
record Holder (which shall include the initial Holder or, as the case may be,
any registered assignee to which this Warrant is permissibly assigned
hereunder) from time to time.  The
Company may deem and treat the registered Holder of this Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent actual notice to
the contrary.

2.             Registration of Transfers.
Subject to the restrictions on transfer set forth in Section 14(b) and
compliance with all applicable securities laws, the Company shall register the
transfer of all or any portion of this Warrant in the Warrant Register, upon
(i) surrender of this Warrant and the Form of Assignment attached as Schedule
1 hereto duly completed and signed by the transferring Holder, to the
Company at its address specified herein; (ii) if the Registration Statement is
not 

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effective, delivery by
or on behalf of the transferring Holder (at its expense), at the request of the
Company, of an opinion of counsel reasonably satisfactory to the Company to the
effect that the transfer of such portion of this Warrant may be made pursuant
to an available exemption from the registration requirements of the Securities
Act and all applicable state securities or blue sky laws; and (iii) accurate
completion, execution and delivery to the Company by the transferee of Appendix
A to Schedule 1, annexed hereto and made a part hereof. Upon any
such registration or transfer (including, to the extent applicable, receipt of
the items set forth in clauses (i), (ii) and (iii) immediately preceding), a new
warrant to purchase Common Stock in substantially the form of this Warrant (any
such new warrant, a “New Warrant”)
evidencing the portion of this Warrant so transferred shall be issued to the
transferee, and a New Warrant evidencing the remaining portion of this Warrant
not so transferred, if any, shall be issued to the transferring Holder. The
acceptance of the New Warrant by the transferee thereof shall be deemed the
acceptance by such transferee of all of the rights and obligations of a Holder
of a Warrant.

3.             Exercise
and Duration of Warrants.

(a)           All or any part of this Warrant shall
be exercisable by the registered Holder at any time and from time to time on or
after the Issuance Date and through and including 5:00 P.M. New York City time
on the Expiration Date. At 5:00 P.M., New York City time, on the Expiration
Date, the portion of this Warrant not exercised prior thereto shall be and
become void and of no value and this Warrant shall be terminated and no longer
outstanding;

(b)           The Holder may exercise this Warrant
by delivering to the Company (i) an exercise notice, in the form attached as Schedule
2 hereto (the “Exercise Notice”),
appropriately completed and duly signed, and (ii) payment of the Exercise Price
for the number of Warrant Shares as to which this Warrant is being exercised
(which may take the form of a “cashless exercise” if so indicated in the
Exercise Notice and if a “cashless exercise” may occur at such time pursuant to
Section 9 below), and the date such items are delivered to the Company
(as determined in accordance with the notice provisions hereof) is an “Exercise Date.” The delivery by (or on
behalf of) the Holder of the Exercise Notice and the applicable Exercise Price
as provided above shall constitute the Holder’s certification to the Company
that its representations contained in Appendix A to Schedule 1
hereto are true and correct as of the Exercise Date as if remade in their
entirety (or, in the case of any transferee Holder, such transferee Holder’s
certification to the Company that such representations are true and correct as
to such transferree Holder as of the Exercise Date).  Execution and delivery of the Exercise Notice
shall have the same effect as cancellation of the original Warrant and issuance
of a New Warrant evidencing the right to purchase the remaining number of
Warrant Shares.

4.             Delivery of Warrant Shares.  Upon exercise of this Warrant, the Company
shall promptly (but in no event later than three (3) Trading Days after the
Exercise Date) issue or cause to be issued and cause to be delivered to or upon
the written order of the Holder and in such name or names as the Holder may
designate (provided that, if the Registration Statement is not effective and
the Holder directs the Company to deliver a certificate for the Warrant Shares
in a name other than that of the Holder or an Affiliate of the Holder, it shall
deliver to the Company on the Exercise Date an opinion of counsel reasonably
satisfactory to the Company to the effect that the issuance of such Warrant Shares
in such other name may be made pursuant to an available exemption from the
registration requirements of the Securities Act and all applicable state
securities or blue sky laws), a certificate for the Warrant Shares issuable
upon such exercise, free of restrictive legends, unless a registration
statement covering the resale of the Warrant Shares and naming the Holder as a
selling stockholder thereunder is not then effective or the Warrant Shares are
not freely transferable without volume restrictions pursuant to Rule 144(k)
under the 

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Securities Act. The
Holder, or any Person permissibly so designated by the Holder to receive
Warrant Shares, shall be deemed to have become the holder of record of such
Warrant Shares as of the Exercise Date.

5.             Charges, Taxes and Expenses.
Issuance and delivery of certificates for shares of Common Stock upon exercise
of this Warrant shall be made without charge to the Holder for any issue or
transfer tax, withholding tax, transfer agent fee or other incidental tax or
expense in respect of the issuance of such certificates, all of which taxes and
expenses shall be paid by the Company; provided,
however, that the Company shall not be required to pay any tax which
may be payable in respect of any transfer involved in the registration of any
certificates for Warrant Shares or Warrants in a name other than that of the
Holder or an Affiliate thereof. The Holder shall be responsible for all other
tax liability that may arise as a result of holding or transferring this
Warrant or receiving Warrant Shares upon exercise hereof.

6.             Replacement of Warrant.  If this Warrant is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation hereof, or in lieu of and substitution
for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction (in such case)
and, in each case, a customary and reasonable indemnity (which may include a
surety bond), if requested. Applicants for a New Warrant under such
circumstances shall also comply with such other reasonable regulations and
procedures and pay such other reasonable third-party costs as the Company may
prescribe. If a New Warrant is requested as a result of a mutilation of this
Warrant, then the Holder shall deliver such mutilated Warrant to the Company as
a condition precedent to the Company’s obligation to issue the New Warrant.

7.             Reservation of Warrant Shares.
The Company covenants that it will initially reserve and keep available out of
the aggregate of its authorized but unissued and otherwise unreserved Common
Stock, solely for the purpose of enabling it to issue Warrant Shares upon
exercise of this Warrant as herein provided, the number of Warrant Shares which
are initially issuable and deliverable upon the exercise of this entire
Warrant, free from preemptive rights or any other contingent purchase rights of
persons other than the Holder.  The Company
further covenants that it will at all times reserve and keep available out of
the aggregate of its authorized but unissued and otherwise unreserved Common
Stock, solely for the purpose of enabling it to issue Warrant Shares upon
exercise of this Warrant as herein provided, the number of Warrant Shares which
are then issuable and deliverable upon the exercise of this entire Warrant,
free from preemptive rights or any other contingent purchase rights of persons
other than the Holder (taking into account the adjustments and restrictions of Section
8). The Company covenants that all Warrant Shares so issuable and
deliverable shall, upon issuance and the payment of the applicable Exercise
Price in accordance with the terms hereof, be duly and validly authorized,
issued and fully paid and nonassessable. The Company will take all such action
as may be reasonably necessary to assure that such shares of Common Stock may
be issued as provided herein without violation of any applicable law or
regulation, or of any requirements of any securities exchange or automated
quotation system upon which the Common Shares may be listed.

8.             Certain Adjustments. The
Exercise Price and number of Warrant Shares issuable upon exercise of this
Warrant are subject to adjustment from time to time as set forth in this Section
8.

(a)           Stock Dividends and Splits. If
the Company, at any time while this Warrant is outstanding, (i) pays a stock
dividend on its Common Stock or otherwise makes a distribution on any class of
capital stock that is payable in shares of Common Stock, (ii) subdivides its
outstanding shares of Common Stock into a larger number of shares, or (iii)
combines its 

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outstanding shares of
Common Stock into a smaller number of shares, then in each such case the
Exercise Price shall be multiplied by a fraction, the numerator of which shall
be the number of shares of Common Stock outstanding immediately before such
event and the denominator of which shall be the number of shares of Common
Stock outstanding immediately after such event. Any adjustment made pursuant to
clause (i) of this paragraph shall become effective immediately after the
record date for the determination of stockholders entitled to receive such
dividend or distribution, and any adjustment pursuant to clause (ii) or (iii)
of this paragraph shall become effective immediately after the effective date
of such subdivision or combination.

(b)           Pro Rata Distributions.  If the Company, at any time while this
Warrant is outstanding, distributes to all holders of Common Stock (i)
evidences of its indebtedness, (ii) any security (other than a distribution of
Common Stock covered by the preceding paragraph), (iii) rights or warrants to
subscribe for or purchase any security, or (iv) any other asset (in each case, “Distributed Property”), then, upon any
exercise of this Warrant that occurs after the record date fixed for
determination of stockholders entitled to receive such distribution, the Holder
shall be entitled to receive, in addition to the Warrant Shares otherwise
issuable upon such exercise (if applicable), the Distributed Property that such
Holder would have been entitled to receive in respect of such number of Warrant
Shares had the Holder been the record holder of such Warrant Shares immediately
prior to such record date.

(c)           Fundamental
Transactions. If, at any time while this Warrant is outstanding  (i) the Company effects any merger or
consolidation of the Company with or into another Person, in which the Company
is not the survivor, (ii) the Company effects any sale of all or substantially
all of its assets or a majority of its Common Stock is acquired by a third
party, in each case,  in one or a series
of related transactions, (iii) any tender offer or exchange offer (whether by
the Company or another Person) is completed pursuant to which all or substantially
all of the holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property, or (iv) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (other than as a result of a subdivision or
combination of shares of Common Stock covered by Section 8(a) above) (in
any such case, a “Fundamental Transaction”),
then the Holder shall have the right thereafter to receive, upon exercise of
this Warrant, the same amount and kind of securities, cash or property as it
would have been entitled to receive upon the occurrence of such Fundamental
Transaction if it had been, immediately prior to such Fundamental Transaction,
the holder of the number of Warrant Shares then issuable upon exercise in full
of this Warrant without regard to any limitations on exercise contained herein
(the “Alternate Consideration”).  The provisions of this paragraph (c) shall
similarly apply to subsequent transactions analogous to a Fundamental
Transaction.

(d)           Number of Warrant Shares.
Simultaneously with any adjustment to the Exercise Price pursuant to this Section
8, the number of Warrant Shares that may be purchased upon exercise of this
Warrant shall be increased or decreased proportionately, so that after such
adjustment the aggregate Exercise Price payable hereunder for the increased or
decreased number of Warrant Shares shall be the same as the aggregate Exercise
Price in effect immediately prior to such adjustment.

(e)           Calculations. All calculations
under this Section 8 shall be made to the nearest cent or the nearest
1/100th of
a share, as applicable. The number of shares of Common Stock outstanding at any
given time shall not include shares owned or held by or for the account of the
Company, and the sale or issuance of any such shares shall be considered an
issue or sale of Common Stock.

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(f)            Notice of Adjustments. Upon
the occurrence of each adjustment pursuant to this Section 8, the
Company at its expense will, at the written request of the Holder, promptly
compute such adjustment, in good faith, in accordance with the terms of this
Warrant and prepare a certificate setting forth such adjustment, including a
statement of the adjusted Exercise Price and adjusted number or type of Warrant
Shares or other securities issuable upon exercise of this Warrant (as
applicable), describing the transactions giving rise to such adjustments and
showing in detail the facts upon which such adjustment is based. Upon written
request, the Company will promptly deliver a copy of each such certificate to
the Holder and to the Company’s transfer agent.

9.             Payment of Exercise Price.

(a)           The Holder shall pay the Exercise
Price in immediately available funds; or

(b)           Exercise this Warrant in whole or in
part and, in lieu of making the cash payment otherwise contemplated to be made
to the Company upon such exercise in payment of the aggregate Exercise Price,
and elect instead to receive upon such exercise the “Net Number” of
shares of Common Stock determined according to the following formula (a “Cashless Exercise”):

	
  

  	
  Net Number = 

  	
  (A x B) - (A x C)

  	
   

  
	
   

  	
   

  	
  B

  	
   

  	
   

  
						

 

For purposes of the foregoing formula:

A=                             the
total number of shares with respect to which this Warrant is then being
exercised.

B=                               the
average of the Closing Sale Prices of the shares of Common Stock (as reported
by Bloomberg Financial Markets) for the five Trading Days ending on the date
immediately preceding the date of the written notice of exercise.

C=                               the
Exercise Price then in effect for the applicable Warrant Shares at the time of
such exercise.

For purposes of
this Warrant, “Closing Sale Price” means, for
any security as of any date, the last trade price for such security on the
principal securities exchange or trading market for such security, as reported
by Bloomberg Financial Markets, or, if such exchange or trading market begins
to operate on an extended hours basis and does not designate the last trade
price, then the last trade price of such security prior to 4:00 p.m., New York
Time, as reported by Bloomberg Financial Markets, or if the foregoing do not
apply, the last trade price of such security in the over-the-counter market on
the electronic bulletin board for such security as reported by Bloomberg
Financial Markets, or, if no last trade price is reported for such security by
Bloomberg Financial Markets, the average of the bid prices, or the ask prices,
respectively, of any market makers for such security as reported in the “pink
sheets” by Pink Sheets LLC.  If the
Closing Sale Price cannot be calculated for a security on a particular date on
any of the foregoing bases, the Closing Sale Price of such security on such
date shall be the fair market value as mutually determined by the Company and
the Holder.  If the Company and the
Holder are unable to agree upon the fair market value of such security, then
the Company shall, within two (2) Trading Days submit via facsimile (a) the
disputed determination of the fair market value to an independent, reputable
investment bank selected by the Company and approved by the Holder or (b) the 

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disputed
arithmetic calculation of the Warrant Shares to the Company’s independent,
outside accountant.  The Company shall
cause at its expense the investment bank or the accountant, as the case may be,
to perform the determinations or calculations and notify the Company and the
Holder of the results no later than ten (10) Trading Days from the time it
receives the disputed determinations or calculations.  Such investment bank’s or accountant’s
determination or calculation, as the case may be, shall be binding upon all
parties absent demonstrable error.  All
such determinations to be appropriately adjusted for any stock dividend, stock
split, stock combination or other similar transaction during the applicable
calculation period.

10.           No Fractional Shares. No
fractional Warrant Shares will be issued in connection with any exercise of
this Warrant.  In lieu of any fractional
shares which would otherwise be issuable, subject to Section 9, the
number of shares of Warrant Shares to be issued shall be rounded up to the
nearest whole number.

11.           Notices. Any and all notices or
other communications or deliveries hereunder (including, without limitation,
any Exercise Notice) shall be in writing and shall be deemed given and
effective on the earliest of (i) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in
the Purchase Agreement prior to 5:00 p.m. (New York City time) on a Trading
Day, (ii) the next Trading Day after the date of transmission, if such notice
or communication is delivered via facsimile at the facsimile number specified
in the Purchase Agreement on a day that is not a Trading Day or later than 5:00
p.m. (New York City time) on any Trading Day, (iii) the Trading Day following
the date of mailing, if sent by nationally recognized overnight courier service
specifying next Trading Day delivery, or (iv) upon actual receipt by the party
to whom such notice is required to be given, if by hand delivery. The address
and facsimile number of a party for such notices or communications shall be as
set forth below unless changed by such party by two (2) Trading Days’ prior
notice to the other party in accordance with this Section 11:

 

 

[This space
intentionally left blank]

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  If to the Company:

  	
  International Fight League, Inc.

  
	
   

  	
  424 West 33rd Street, Suite 650

  
	
   

  	
  New York, New York 10001

  
	
   

  	
  Telephone No.: (212) 356-4000

  
	
   

  	
  Facsimile No.: (212) 564-6546

  
	
   

  	
  Attention: Chief Executive Officer

  
	
  With a copy to:

  	
  Lowenstein Sandler PC

  
	
   

  	
  1251 Avenue of the Americas

  
	
   

  	
  New York, New York 10020

  
	
   

  	
  Telephone No.: (212) 262-6700

  
	
   

  	
  Facsimile No.: (973) 597.2507

  
	
   

  	
  Attention: Steven E. Siesser, Esq.

  
	
  If to the
  original Holder:

  	
  Piper Jaffray & Co.

  
	
   

  	
  800 Nicollet Mall - Suite 800

  
	
   

  	
  Minneapolis, MN 55402-7020

  
	
   

  	
  Telephone No.: 612-303-6000

  
	
   

  	
  Facsimile No.: 612-___________

  
	
   

  	
  Attention: Mr. Rod Dolan

  
	
  With a copy to:

  	
  Nelson Mullins Riley
  & Scarborough LLP

  
	
   

  	
  101 Constitution Avenue, N.W. - Suite 900

  
	
   

  	
  Washington, D.C. 20001

  
	
   

  	
  Telephone No.: 202-712-2806

  
	
   

  	
  Facsimile No.: 202-712-2860

  
	
   

  	
  Attn: Jon Talcott, Esq.

  

 

12.           Warrant Agent. The Company
shall serve as warrant agent under this Warrant. Upon thirty (30) days’ notice
to the Holder, the Company may appoint a new warrant agent. Any corporation
into which the Company or any new warrant agent may be merged or any
corporation resulting from any consolidation to which the Company or any new
warrant agent shall be a party or any corporation to which the Company or any
new warrant agent transfers substantially all of its corporate trust or
shareholders services business shall be a successor warrant agent under this
Warrant without any further act. Any such successor warrant agent shall
promptly cause notice of its succession as warrant agent to be mailed (by first
class mail, postage prepaid) to the Holder at the Holder’s last address as
shown on the Warrant Register.

13.           Limitations on Exercise. (a)
Notwithstanding anything to the contrary contained herein, the number of
Warrant Shares that may be acquired by the Holder upon any exercise of this
Warrant (or otherwise in respect hereof) shall be limited to the extent
necessary to ensure that, following such exercise (or other issuance), the
total number of shares of Common Stock then beneficially owned by the Holder
and its Affiliates and any other Persons whose beneficial ownership of Common
Stock would be aggregated with the Holder’s for purposes of Section 13(d) of
the Exchange Act, does not exceed 4.999% of the total number of issued and
outstanding shares of Common Stock (including for such purpose the shares of
Common Stock issuable upon such exercise). For such purposes, beneficial
ownership shall be determined in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. Each delivery of an
Exercise Notice by the Holder will constitute a representation by the Holder
that it has evaluated the limitation set forth in this Section and determined
that issuance of the full number of Warrant Shares requested in such Exercise
Notice is permitted under this Section.  The

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Company’s obligation to
issue shares of Common Stock in excess of the limitation referred to in this
Section shall be suspended (and, except as provided below, shall not terminate
or expire notwithstanding any contrary provisions hereof) until such time, if
any, as such shares of Common Stock may be issued in compliance with such
limitation; provided, that, if, as of 5:00 p.m., New York City time, on the
Expiration Date, the Company has not received written notice that the shares of
Common Stock may be issued in compliance with such limitation, the Company’s
obligation to issue such shares shall terminate.  This provision shall not restrict the number
of shares of Common Stock which a Holder may receive or beneficially own in
order to determine the amount of securities or other consideration that such
Holder may receive in the event of a Fundamental Transaction as contemplated in
Section 8 of this Warrant.  By
written notice to the Company, the Holder may waive the provisions of this
Section but any such waiver will not be effective until the 61st day after such notice
is delivered to the Company, nor will any such waiver effect any other Holder.

                (b)           Notwithstanding anything to the contrary contained herein,
the number of Warrant Shares that may be acquired by the Holder upon any
exercise of this Warrant (or otherwise in respect hereof) shall be limited to
the extent necessary to ensure that, following such exercise (or other
issuance), the total number of shares of Common Stock then beneficially owned
by such Holder and its Affiliates and any other Persons whose beneficial
ownership of Common Stock would be aggregated with the Holder’s for purposes of
Section 13(d) of the Exchange Act, does not exceed 9.999% of the total number
of issued and outstanding shares of Common Stock (including for such purpose
the shares of Common Stock issuable upon such exercise). For such purposes,
beneficial ownership shall be determined in accordance with Section 13(d) of
the Exchange Act and the rules and regulations promulgated thereunder. Each
delivery of an Exercise Notice hereunder will constitute a representation by
the Holder that it has evaluated the limitation set forth in this Section and
determined that issuance of the full number of Warrant Shares requested in such
Exercise Notice is permitted under this Section.  The Company’s obligation to issue shares of
Common Stock in excess of the limitation referred to in this Section shall be
suspended (and, except as provided below, shall not terminate or expire
notwithstanding any contrary provisions hereof) until such time, if any, as
such shares of Common Stock may be issued in compliance with such limitation;
provided, that, if, as of 5:00 p.m., New York City time, on the Expiration
Date, the Company has not received written notice that the shares of Common
Stock may be issued in compliance with such limitation, the Company’s
obligation to issue such shares shall terminate.  This provision shall not restrict the number
of shares of Common Stock which a Holder may receive or beneficially own in
order to determine the amount of securities or other consideration that such
Holder may receive in the event of a Fundamental Transaction as contemplated in
Section 8 of this Warrant.  By
written notice to the Company, the Holder may waive the provisions of this
Section but any such waiver will not be effective until the 61st day after such notice
is delivered to the Company, nor will any such waiver effect any other Holder.

14.           Miscellaneous.

(a)           The Holder, solely
in such Person’s capacity as a holder of this Warrant, shall not be entitled to
vote or receive dividends or be deemed the holder of share capital of the
Company for any purpose, nor shall anything contained in this Warrant be
construed to confer upon the Holder, solely in such Person’s capacity as the
Holder of this Warrant, any of the rights of a stockholder of the Company or
any right to vote, give or withhold consent to any corporate action (whether
any reorganization, issue of stock, reclassification of stock, consolidation,
merger, amalgamation, conveyance or otherwise), receive notice of meetings,
receive dividends or subscription rights, or otherwise, prior to the issuance
to the Holder of the Warrant Shares which 

 8
 

 

such Person is then
entitled to receive upon the due exercise of this Warrant. In addition, nothing
contained in this Warrant shall be construed as imposing any liabilities on the
Holder to purchase any securities (upon exercise of this Warrant or otherwise)
or as a stockholder of the Company, whether such liabilities are asserted by
the Company or by creditors of the Company.

(b)           Subject
to compliance with applicable securities laws, this Warrant shall not be
assigned by the Holder, unless the Holder shall, together with such assignment,
provide written notice thereof to the Company, in the form of Schedule 1
annexed hereto and made a part hereof. This Warrant shall not be assigned by
the Company except to a successor in the event of a Fundamental Transaction. This
Warrant shall be binding on and inure to the benefit of the parties hereto and
their respective permitted successors and assigns. Subject to the preceding
sentence, nothing in this Warrant shall be construed to give to any Person
other than the Company and the Holder any legal or equitable right, remedy or
cause of action under this Warrant. This Warrant shall be amended only in
writing signed by the Company and the Holder, or their permitted successors and
assigns.

(c)           GOVERNING
LAW; VENUE; WAIVER OF JURY TRIAL. ALL QUESTIONS CONCERNING THE CONSTRUCTION,
VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY
AND CONSTRUED AND ENFORCED EXCLUSIVELY IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. EACH
PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE
ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY
TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO
THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY
WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM
THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT
SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY
WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY
SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR
CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY
AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT
SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE
THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT
TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. THE COMPANY HEREBY WAIVES ALL
RIGHTS TO A TRIAL BY JURY.

(d)           The headings herein are for
convenience only, do not constitute a part of this Warrant and shall not be
deemed to limit or affect any of the provisions hereof.

(e)           In case any one or more of the
provisions of this Warrant shall be invalid or unenforceable in any respect,
the validity and enforceability of the remaining terms and provisions of this
Warrant shall not in any way be affected or impaired thereby, and the parties
will attempt in good faith to agree upon a valid and enforceable provision
which shall be a commercially reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this Warrant.

 9
 

 

(f)            Prior to exercise of this Warrant,
the Holder hereof shall not, by reason of by being a Holder, be entitled to any
rights of a stockholder with respect to the Warrant Shares.

15.           Registration Rights. This
Warrant has been issued in connection with the transactions contemplated by (a)
those certain Securities Purchase Agreements, dated as of December 22, 2006, by
and among the Company and the purchasers named therein (collectively, the “Purchase Agreement”), and (b) that certain
Registration Rights Agreement (as defined in the Purchase Agreement).  The original Holder of this Warrant is the
Placement Agent named in the Purchase Agreement.  On or
prior to the Filing Deadline, the Company shall prepare and file with the
Commission a Registration Statement covering the resale of all Warrant Shares
not already covered by an existing and effective Registration Statement (as
defined in the Purchase Agreement), provided,
that, the Placement Agent
accurately completes, executes and delivers to the Company, prior to the filing
date, the “Selling Securityholder Notice and Questionnaire” attached to the
Registration Rights Agreement as Annex B thereto.  As a further express condition precedent to
including the Warrant Shares in the Registration Statement, by its execution of
this Warrant, the Placement Agent hereby agrees that it is bound by the
indemnification, contribution and other covenants set forth in Section 5 of the
Registration Rights Agreement, including without limitation Sections 5(b), (c)
and (d) thereof, as though it were a “Holder” (as defined therein).

16.           Definitions.

“Affiliate” of any specified Person means
any other person or entity directly or indirectly controlling, controlled by or
under direct or indirect common control with such specified Person.  For purposes of this definition, “control” means the power to direct the
management and policies of such Person or firm, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise.

“Bloomberg” means Bloomberg Financial Markets.

“Eligible Market” shall mean any of the New
York Stock Exchange, the American Stock Exchange, Nasdaq Stock Market or the
Over-the-Counter Bulletin Board (the “OTCBB”).

“Filing Deadline” means,
with respect to the Registration Statement covering the Warrant Shares,
required to be filed pursuant to Section 15 herein, the 60th calendar day following the date in which the
Form S-1 Registration Statement filed pursuant to the Registration Rights
Agreement is declared effective by the Commission.

“Person” means any court or other federal,
state, local or other governmental authority or other individual or
corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or
an agency or subdivision thereof) or other entity of any kind.

“Trading Day” shall mean any day on which
the Common Stock is listed or quoted on any Eligible Market.

 10
 

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Warrant to be duly
executed by its authorized officer as of the date first indicated above.

	
  

  	
  INTERNATIONAL FIGHT LEAGUE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Salvatore A. Bucci

  
	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PIPER JAFFRAY & CO.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Rod Dolan

  
	
   

  	
  Title:

  	
  Chief
  Administrative Officer

  
	
   

  	
   

  	
   

  

 

 11

 

SCHEDULE 1

INTERNATIONAL
FIGHT LEAGUE, INC.

FORM OF ASSIGNMENT

[To be completed and
signed only upon transfer of Warrant]

FOR VALUE RECEIVED, the
undersigned hereby sells, assigns and transfers unto                             
(the “Transferee” the right
represented by the within Warrant to purchase                 
shares of Common Stock of International Fight League, Inc., a Delaware
corporation (the “Company”) to
which the within Warrant relates and appoints                             
attorney to transfer said right on the books of the Company with full power of
substitution in the premises. In connection therewith, the undersigned
represents, warrants, covenants and agrees to and with the Company that:

(a)                                  the
offer and sale of the Warrant contemplated hereby is being made in compliance
with Section 4(1) of the United States Securities Act of 1933, as amended (the “Securities Act”) or another valid
exemption from the registration requirements of Section 5 of the Securities Act
and in compliance with all applicable securities laws of the states of the
United States;

(b)                                 the
undersigned has not offered to sell the Warrant by any form of general
solicitation or general advertising, including, but not limited to, any
advertisement, article, notice or other communication published in any
newspaper, magazine or similar media or broadcast over television or radio, and
any seminar or meeting whose attendees have been invited by any general
solicitation or general advertising;

(c)                                  the
undersigned has read, executed and deliver to the Company Appendix A to this
Schedule 1 included herewith, and to its actual knowledge, the statements made
therein are true and correct; and

(d)                                 the
undersigned understands that the Company may condition the transfer of the
Warrant contemplated hereby upon the delivery to the Company by the undersigned
or the Transferee, as the case may be, of a written opinion of counsel (which
opinion shall be in form, substance and scope customary for opinions of counsel
in comparable transactions) to the effect that such transfer may be made
without registration under the Securities Act and under applicable securities
laws of the states of the United States.

 

 12
 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:            ,
       

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature must conform in all respects to name of
  holder as specified on the face of the Warrant)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address of Transferee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  In the presence of:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 13
 

 

Appendix
A

to

Schedule
1

Warrant
Holder Certification

In
connection with the issuance, transfer and/or exercise of the Warrant to which
this Schedule 1 is attached, as the case may be, the undersigned hereby
certifies, knowing and intending that the International Fight League, Inc., a
Delaware corporation (the “Company”)
is relying hereon in issuing, transferring and/or exercising such Warrant, as
the case may be, that the following representations and warranties are true,
accurate and complete as of the date of such issuance, transfer and/or
exercise:

1.             Investment Intent.  The undersigned understands that this Warrant
and the Warrant Shares are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is
acquiring this Warrant and the Warrant Shares, as the case may be, as principal
for its own account and not with a view to, or for distributing or reselling
this Warrant and such Warrant Shares, as the case may be, or any part thereof
in violation of the Securities Act or any applicable state securities laws,
without prejudice, however, to the undersigned’s right, subject to the
provisions of the Warrant, at all times to sell or otherwise dispose of all or
any part of such Warrant Shares pursuant to an effective registration statement
under the Securities Act or under an exemption from such registration and in
compliance with applicable federal and state securities laws.  The undersigned is acquiring this Warrant and
the Warrant Shares hereunder, as the case may be, in the ordinary course of its
business. The undersigned does not presently have any agreement, plan or
understanding, directly or indirectly, with any Person to distribute or effect
any distribution of this Warrant or any of the Warrant Shares (or any
securities which are derivatives thereof) to or through any person or entity; provided, however,
that by making the representations herein, the undersigned does not agree to
hold this Warrant or any of the Warrant Shares, as the case may be, for any
minimum period of time.

2.             Purchaser Status.   The
undersigned is an “accredited investor” as defined in Rule 501(a) under the
Securities Act.

3.             General Solicitation.   The
undersigned is not acquiring this Warrant or the Warrant Shares, as the case
may be, as a result of any advertisement, article, notice or other
communication regarding this Warrant or the Warrant Shares, published in any
newspaper, magazine or similar media or broadcast over television or radio or
presented at any seminar or any other general advertisement.

4.             Experience of Such Purchaser.   The
undersigned, either alone or together with its representatives, has such
knowledge, sophistication and experience in business and financial matters so
as to be capable of evaluating the merits and risks of the prospective
investment in this Warrant and the Warrant Shares, and has so evaluated the
merits and risks of such investment.  The
undersigned is able to bear the economic risk of an investment in this Warrant
and the Warrant Shares and, at the present time, is able to afford a complete
loss of such investment.

5.             Access to Information.   The
undersigned acknowledges that it has been afforded (i) the opportunity to ask
such questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the
offering of this Warrant and the Warrant Shares and the merits and risks of
investing in this Warrant and the 

 14
 

 

Warrant Shares; (ii)
access to information (other than material non-public information) about the
Company and the subsidiaries and their respective financial condition, results
of operations, business, properties, management and prospects sufficient to
enable it to evaluate its investment; and (iii) the opportunity to obtain such
additional information that the Company possesses or can acquire without
unreasonable effort or expense that is necessary to make an informed investment
decision with respect to the investment.

6.             Independent Investment Decision.   The
undersigned has independently evaluated the merits of its decision to acquire
this Warrant and the Warrant Shares.  The
undersigned understands that nothing in this Warrant or any other materials
presented by or on behalf of the Company to the undersigned in connection with
its acquisition of this Warrant and the Warrant Shares or this Warrant
constitutes legal, tax or investment advice. 
The undersigned has consulted such legal, tax and investment advisors as
it, in its sole discretion, has deemed necessary or appropriate in connection
with its acquisition of this Warrant and the Warrant Shares.

7.             Reliance on Exemptions.   The
undersigned understands that the Warrant and the Warrant Shares are being
offered and issued to it in reliance on specific exemptions from the
registration requirements of United States federal and state securities laws
and that the Company is relying in part upon the truth and accuracy of, and the
undersigned’s compliance with, the representations, warranties, agreements,
acknowledgements and understandings of the undersigned set forth herein in
order to determine the availability of such exemptions and the eligibility of
the undersigned to acquire the Warrant and the Warrant Shares.

IN
WITNESS WHEREOF, the undersigned has caused this Appendix to be duly executed
by its authorized officer as of the date first indicated above.

	
  

  	
   

  	
  NAME OF ENTITY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AUTHORIZED SIGNATORY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ADDRESS FOR NOTICE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c/o:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Street:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  City/State/Zip:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tel:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Email:

  	
   

  	
   

  
																

 

 15
 

 

SCHEDULE 2

FORM OF EXERCISE NOTICE

(To be executed by the
Holder to exercise the right to purchase shares of Common Stock under the
foregoing Warrant)

Ladies and Gentlemen:

(1)           The undersigned is the Holder of
Warrant No. __________ (the “Warrant”) issued by International Fight League,
Inc., a Delaware corporation (the “Company”). 
Capitalized terms used herein and not otherwise defined herein have the
respective meanings set forth in the Warrant.

(2)           The undersigned hereby exercises its
right to purchase __________ Warrant Shares pursuant to the Warrant.

(3)           The Holder intends that payment of
the Exercise Price shall be made as (check one):

·              Cash Exercise

·              “Cashless Exercise” under Section 9 in accordance with the terms of the Warrant.

(4)           If the Holder has elected a Cash
Exercise, the Holder shall pay the sum of $_______ to the Company in accordance
with the terms of the Warrant.

(5)           Pursuant to this Exercise Notice, the
Company shall deliver to the Holder _____________ Warrant Shares in accordance
with the terms of the Warrant.

Dated:_______________, _____

Name of Holder:  ___________________________

By:__________________________________

Name: _______________________________            

Title:  _______________________________

(Signature
must conform in all respects to name of Holder as specified on the face of the
Warrant)

 16Exhibit 10.1

INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION AGREEMENT
(this “Agreement”) is made and entered into
this ____ day of ________, 2007 by and between Vyyo Inc.,
a Delaware corporation (the “Company”), and [name]
(“Indemnitee”).  This Agreement supersedes any and all
indemnification agreement(s) previously entered into between the Company and
Indemnitee.

RECITALS

A.            It
is essential to the Company to retain and attract as directors and officers the
most capable persons available.

B.            Indemnitee is a director or officer of the Company or its
affiliates.

C.            Both the Company and Indemnitee recognize the increased
risk of litigation and other claims being asserted against directors and
officers of public companies in today’s environment.

D.            The Amended and Restated Bylaws and Fourth Amended and
Restated Certificate of Incorporation (collectively, the “Charter
Documents”) require the Company to indemnify and advance expenses to
its directors and officers to the full extent permitted by the Delaware General
Company Law, as amended (the “DGCL”), and
Indemnitee intends to continue serving as a director or officer of the Company
in part in reliance on such Charter Documents and the DGCL.

E.             In recognition of Indemnitee’s need for substantial
protection against personal liability in order to enhance Indemnitee’s
continued service to the Company in an effective manner, the Company wishes to
provide in this Agreement for the indemnification of and the advancing of
expenses to Indemnitee to the fullest extent (whether partial or complete)
permitted by law and as set forth in this Agreement.

AGREEMENT

NOW, THEREFORE, in consideration
of the premises and of Indemnitee continuing to serve the Company directly or,
at its request, another enterprise, and intending to be legally bound hereby,
the parties hereto agree as follows:

1.             Certain Definitions:

a.             Change
in Control:  Shall
be deemed to have occurred if (i) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of
1934, as amended), 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 said Act),
directly or indirectly, of securities of the Company representing twenty
percent (20%) or more of the total voting power represented by the Company’s then
outstanding Voting Securities; or (ii) during any period of two (2) consecutive
years, individuals 

who
at the beginning of such period constitute the Board of Directors of the
Company and any new director whose election by the Board of Directors or nomination
for election by the Company’s stockholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute a
majority thereof; or (iii) the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the Voting Securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into Voting Securities of the
surviving entity) at least eighty percent (80%) of the total voting power represented
by the Voting Securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation, or the stockholders of the
Company approve a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company of (in one transaction or a series
of transactions) all or substantially all the Company’s assets.

b.             Claim:  Any threatened, pending or completed action,
suit or proceeding, or any inquiry or investigation, whether instituted by or
on behalf of or in the name of the Company or any other party, that Indemnitee
in good faith believes might lead to the institution of any such action, suit
or proceeding, whether civil, criminal, administrative, investigative or other.

c.             Expenses:  Include attorneys’ fees and all other costs,
expenses and obligations paid or incurred in connection with investigating,
defending, being a witness in or participating in (including on appeal), or
preparing to defend, be a witness in or participate in, any Claim relating to
any Indemnifiable Event.

d.             Indemnifiable
Event:  Any event
or occurrence related to the fact that Indemnitee is or was a director,
officer, employee, agent or fiduciary of the Company, or is or was serving at
the request of the Company as a director, officer, employee, trustee, agent or
fiduciary of another corporation, partnership, joint venture, employee benefit
plan, trust or other enterprise, or by reason of anything done or not done by
Indemnitee in any such capacity.

e.             Independent
Legal Counsel:  An
attorney or firm of attorneys, selected in accordance with the provisions of
Section 3, who shall not have otherwise performed services for the Company or
Indemnitee within the last five (5) years (other than with respect to matters
concerning the rights of Indemnitee under this Agreement, or of other
indemnitees under similar indemnity agreements).

f.              Reviewing
Party:  Any
appropriate person or body consisting of a member or members of the Company’s
Board of Directors or any other person or body appointed by the Board who is
not a party to the particular Claim for which Indemnitee is seeking
indemnification, or Independent Legal Counsel.

g.             Voting
Securities:  Any
securities of the Company which vote generally in the election of directors.

 2
 

2.             Basic
Indemnification Arrangement.

a.             In the event Indemnitee was, is or becomes a party to or
witness or other participant in, or is threatened to be made a party to or
witness or other participant in, a Claim by reason of (or arising in part out
of) an Indemnifiable Event, the Company shall indemnify Indemnitee to the
fullest extent permitted by law as soon as practicable but in any event no
later than thirty days after written demand is presented to the Company,
against any and all Expenses, judgments, fines, penalties and amounts paid in
settlement (including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses, judgments, fines,
penalties or amounts paid in settlement) of such Claim.  If so requested by Indemnitee, the Company
shall advance (within two business days of such request) any and all Expenses
to Indemnitee (an “Expense Advance”).

 b.            Notwithstanding the foregoing, (i)
the obligations of the Company under Section 2(a) shall be subject to the
condition that the Reviewing Party shall not have determined (in a written
opinion, in any case in which the Independent Legal Counsel referred to in
Section 3 hereof is involved) that Indemnitee would not be permitted to be
indemnified under applicable law; and (ii) the obligation of the Company
to make an Expense Advance pursuant to Section 2(a) shall be subject to the
condition that, if, when and to the extent that the Reviewing Party determines
that Indemnitee would not be permitted to be so indemnified under applicable
law, the Company shall be entitled to be reimbursed by Indemnitee (who hereby
agrees to reimburse the Company) for all such amounts theretofore paid; provided, however, that if Indemnitee has commenced or
thereafter commences legal proceedings in a court of competent jurisdiction to
secure a determination that Indemnitee should be indemnified under applicable
law, any determination made by the Reviewing Party that Indemnitee would not be
permitted to be indemnified under applicable law shall not be binding and
Indemnitee shall not be required to reimburse the Company for any Expense
Advance until a final judicial determination is made with respect thereto (as
to which all rights of appeal therefrom have been exhausted or lapsed).  If there has not been a Change in Control,
the Reviewing Party shall be selected by the Board of Directors, and if there
has been such a Change in Control (other than a Change in Control which has
been approved by a majority of the Company’s Board of Directors who were
directors immediately prior to such Change in Control), the Reviewing Party
shall be the Independent Legal Counsel referred to in Section 3 hereof.  If there has been no determination by the
Reviewing Party or if the Reviewing Party determines that Indemnitee
substantively would not be permitted to be indemnified in whole or in part
under applicable law, Indemnitee shall have the right to commence litigation in
any court in the States of California or Delaware having subject matter jurisdiction
thereof and in which venue is proper seeking an initial determination by the
court or challenging any such determination by the Reviewing Party or any
aspect thereof, including the legal or factual bases therefor, and the Company
hereby consents to service of process and to appear in any such
proceeding.  Any determination by the
Reviewing Party otherwise shall be conclusive and binding on the Company and
Indemnitee.

3.             Change in Control.  The Company agrees that if there is a Change
in Control of the Company (other than a Change in Control which has been
approved by a majority of the Company’s Board of Directors who were directors
immediately prior to such Change in Control) then with respect to all matters
thereafter arising concerning the rights of Indemnitee to indemnity payments
and Expense Advances under this Agreement or any other agreement or Charter
Document now or 

 3
 

hereafter
in effect relating to Claims for Indemnifiable Events, the Company shall seek
legal advice only from Independent Legal Counsel selected by Indemnitee and
approved by the Company (which approval shall not be unreasonably
withheld).  Such counsel, among other
things, shall render its written opinion to the Company and Indemnitee as to
whether and to what extent the Indemnitee would be permitted to be indemnified
under applicable law.  The Company agrees
to pay the reasonable fees of the Independent Legal Counsel referred to above
and to indemnify fully such counsel against any and all expenses (including
attorneys’ fees), claims, liabilities and damages arising out of or relating to
this Agreement or its engagement pursuant hereto.

4.             Indemnification for Additional
Expenses.  The
Company shall indemnify Indemnitee against any and all expenses (including
attorneys’ fees) and, if requested by Indemnitee, shall (within two (2)
business days of such request) advance such expenses to Indemnitee, which are
incurred by Indemnitee in connection with any action brought by Indemnitee for
(i) indemnification or advance payment of Expenses by the Company under this
Agreement or any other agreement or Charter Document now or hereafter in effect
relating to Claims for Indemnifiable Events; and/or (ii) recovery under any
directors’ and officers’ liability insurance policies maintained by the
Company, regardless of whether Indemnitee ultimately is determined to be
entitled to such indemnification, advance expense payment or insurance
recovery, as the case may be.

5.             Partial Indemnity, etc.  If Indemnitee is entitled under any provision
of this Agreement to indemnification by the Company for some or a portion of
the Expenses, judgments, fines, penalties and amounts paid in settlement of a
Claim but not, however, for all of the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee
is entitled.  Moreover, notwithstanding
any other provision of this Agreement, to the extent that Indemnitee has been
successful on the merits or otherwise in defense of any or all Claims relating
in whole or in part to an Indemnifiable Event or in defense of any issue or
matter therein, including dismissal without prejudice, Indemnitee shall be
indemnified against all Expenses incurred in connection therewith.

6.             Burden of Proof.  In connection with any determination by the
Reviewing Party or otherwise as to whether Indemnitee is entitled to be
indemnified hereunder the burden of proof shall be on the Company to establish
that Indemnitee is not so entitled.

7.             No Presumptions.  For purposes of this Agreement, the
termination of any claim, action, suit or proceeding, by judgment, order,
settlement (whether with or without court approval) or conviction, or upon a
plea of nolo contendere, or its equivalent,
shall not create a presumption that Indemnitee did not meet any particular
standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by applicable law.  In addition, neither the failure of the
Reviewing Party to have made a determination as to whether Indemnitee has met
any particular standard of conduct or had any particular belief, nor an actual
determination by the Reviewing Party that Indemnitee has not met such standard
of conduct or did not have such belief, prior to the commencement of legal
proceedings by Indemnitee to secure a judicial determination that Indemnitee
should be indemnified under applicable law shall be a defense to Indemnitee’s
claim or create a presumption that Indemnitee has not met any particular
standard of conduct or did not 

 4
 

have
any particular belief. The Company hereby waives any collateral estoppel effect
that any such judgment, order, settlement or conviction may have with respect
to Indemnitee.

8.             Nonexclusivity, etc.  The rights of the Indemnitee hereunder shall
be in addition to any other rights Indemnitee may have under the Company’s
Bylaws or the DGCL or otherwise.  To the
extent that a change in the DGCL (whether by statute or judicial decision)
permits greater indemnification by agreement than would be afforded currently
under the Company’s Bylaws and this Agreement, Indemnitee shall enjoy by this
Agreement the greater benefits so afforded by such change.

9.             Liability Insurance.  To the extent the Company maintains an
insurance policy or policies providing directors’ and officers’ liability
insurance, Indemnitee shall be covered by such policy or policies, in
accordance with its or their terms, to the maximum extent of the coverage
available for any Company director or officer.

10.          Period of Limitations.  No legal action shall be brought and no cause
of action shall be asserted by or in the right of the Company against
Indemnitee, Indemnitee’s spouse, heirs, executors or personal or legal
representatives after the expiration of two (2) years from the date of accrual
of such cause of action, and any claim or cause of action of the Company shall
be extinguished and deemed released unless asserted by the timely filing of a
legal action within such two (2) year period; provided,
however, that if any shorter period of limitations is otherwise
applicable to any such cause of action such shorter period shall govern.

11.          Amendments, etc.  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 provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

12.          Subrogation.  In the event of payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of Indemnitee, who shall execute all papers required and
shall do everything that may be necessary to secure such rights, including the
execution of such documents necessary to enable the Company effectively to
bring suit to enforce such rights.

13.          No Duplication of Payments.  The Company shall not be liable under this
Agreement to make any payment in connection with any Claim made against
Indemnitee to the extent Indemnitee has otherwise actually received payment
(under any insurance policy, Charter Document or otherwise) of the amounts
otherwise indemnifiable hereunder.

14.          Binding Effect, etc.   This Agreement shall be binding upon and inure
to the benefit of and be enforceable by the parties hereto and their respective
successors, assigns, including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business
and/or assets of the Company, spouses, heirs, executors and personal and legal
representatives.  This Agreement shall
continue in effect regardless of whether Indemnitee continues to serve as an
officer or director of the Company or of any other enterprise at the Company’s
request.

 5
 

15.          Severability.  The provisions of this
Agreement shall be severable in the event that any of the provisions hereof
(including any provision within a single section, paragraph or sentence) are
held by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable in any respect, and the validity and enforceability of any such
provision in every other respect and of the remaining provisions hereof shall
not be in any way impaired and shall remain enforceable to the fullest extent
permitted by law.

16.          Governing Law.  This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware
applicable to contracts made and to be performed in such state without giving
effect to the principles of conflicts of laws.

IN WITNESS WHEREOF, the parties
hereto have executed this Agreement on and as of the day and year first above
written.

	
  VYYO INC.

  	
   

  	
  INDEMNITEE

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  By:

  	
   

  
	
   

  	
  (Signature)

  	
   

  	
               (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Print Name & Title)

  	
   

  	
  (Print Name & Title)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
               (Address)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
               (Address)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
               (Phone/Fax)

  

 

 6

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