Document:

Exhibit 10.1

SECOND AMENDMENT TO ASSET PURCHASE AGREEMENT

This Second Amendment to Asset Purchase Agreement,
dated as of August 8, 2007 (this “Second Amendment”), is by and between
Hedwigs Las Vegas Top Tier, LLC, a Delaware limited liability company, (“Purchaser”)
and 155 East Tropicana, LLC, a Nevada limited liability company, (“Seller”).

RECITALS

A.            Purchaser and Seller entered into that
certain Asset Purchase Agreement dated April 30, 2007 (the “Agreement”).

B.            Purchaser and Seller entered into that certain
First Amendment to Asset Purchase Agreement dated May 7, 2007 (the “First
Amendment”).

C.            As consideration for the First Amendment,
Purchaser paid the sum of One Million dollars ($1,000,000) to Seller (the “Initial
Payment”), which sum was a non-refundable earnest money deposit that was fully
earned on the date of payment.

D.            Purchaser and Seller desire to further amend
the Agreement as set forth below.

AGREEMENT

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereby
amend the Agreement as follows:

1.             Defined Terms. 
Unless otherwise defined herein, all capitalized terms used in this
Second Amendment shall have the meaning given such terms in the Agreement.  Unless the context otherwise indicates, all
references herein to the Agreement shall include this Second Amendment.

2.             Consideration.  As
consideration for this Second Amendment, Purchaser has or shall pay (1) the sum
of Five Hundred Thousand dollars ($500,000) (the “Second Payment”) to Seller in
good funds by 12:00 noon, PST, on August 14, 2007, and (2) the sum of One
Million Five Hundred Thousand dollars ($1,500,000) (the “Third Payment” and
collectively with the Initial Payment and the Second Payment, the “Non-Refundable
Deposits”) to Seller in good funds by 5:00 p.m., PST, on November 15,
2007.  The parties agree that the Second
Payment and the Third Payment are non-refundable earnest money deposits that
are fully earned on the date of payment. 
If the Closing occurs, the Non-Refundable Deposits shall be applied to
the Cash Purchase Price as set forth in amended Section 1.6 of the Agreement
below.

3.             Purchase Price. 
Section 1.5 of the Agreement is deleted and replaced with the following:

The
consideration of the sale and transfer of the Purchased Assets to Purchaser
shall consist of the Cash Purchase Price and the assumption by Purchaser of the
Assumed Liabilities.  The Cash Purchase
Price shall be (i) Ninety-Five Million dollars ($95,000,000) plus (ii) the cash
amount of the Accrued Royalty, plus (iii) any obligations under any notes
executed by Seller under the Lease Agreement (including accrued interest and
penalties) and shall be subject to adjustment as provided in Section 1.8.

4.               Purchase Price Payable at Closing.  Section 1.6 of the Agreement is deleted and
replaced with the following:

At
the Closing, and subject to the terms and conditions of this Agreement,
Purchaser shall pay to Seller at the Closing in cash by wire transfer of
immediately available funds to one or more accounts designated by each Seller
in writing at least two (2) Business Days before the Closing Date, an amount
equal to the sum of (i) Eighty-Five million dollars ($85,000,000), plus (ii)
the cash amount of the Accrued Royalty, minus (iii) the sum of the
Non-Refundable Deposits.

5.               Closing.  Section 1.10 of the Agreement is deleted and
replaced with the following:

Seller shall as promptly as possible notify Purchaser, and
Purchaser shall as promptly as possible notify Seller, when the conditions set
forth in ARTICLE V to such party’s obligations to complete the Transactions
have been satisfied or waived.  Subject
to Section 7.1(a)(iv), the closing of the Transactions (the “Closing”) shall
take place at the offices of Kummer Kaempfer Bonner Renshaw & Ferrario on
the second Business Day following the satisfaction or waiver of the conditions
set forth in Article V, or at such other time, date and place as Seller and
Purchaser may agree in writing.  If the
Closing occurs, it shall be deemed to have occurred at the Cutoff Time.  The date on which the Closing occurs is
referred to herein as the “Closing Date.”

6.               Exclusivity.  Section 4.13 of the Agreement is deleted and
replaced with the following:

Prior to the receipt of the Third Payment, Seller may directly
or indirectly through any representative, employee or agent, solicit, initiate,
or encourage the submission of any proposal or offer from any Person relating
to the acquisition of all or substantially all of the Interests or the assets
of Seller (including any

acquisition structured as a merger, consolidation, or share
exchange) or authorize any person to do any of the foregoing.  Notwithstanding the foregoing, unless and
until this Agreement is terminated in accordance with the provisions of ARTICLE
VII, Seller shall not (i) provide non-public information of the Seller, with
the exception of updated financial statements, to any such Person or (ii) enter
into any agreement, binding or not, relating to the acquisition of all or
substantially all of the Interests or the assets of Seller (including any
acquisition structured as a merger, consolidation, or share exchange) with any
such Person.

Following receipt of the Third Payment, and until this
Agreement is terminated in accordance with the provisions of ARTICLE VII,
Seller shall not, directly or indirectly through any representative, employee
or agent, solicit, initiate, or encourage the submission of any proposal or
offer from any Person relating to the acquisition of all or substantially all
of the Interests or the assets of Seller (including any acquisition structured
as a merger, consolidation, or share exchange) or authorize any person to do
any of the foregoing.

7.              Additional Deposits if Closing is Deferred.  Section 4.15 of the Agreement is deleted and
replaced with the following:

If the Closing has not occurred on or before December 31,
2007 because the required Licenses and Permits have not been obtained and this
Agreement has not been terminated as provided in ARTICLE VII, Purchaser may,
but shall not be required to, extend this Agreement by paying to Seller the sum
of Five Hundred Thousand dollars ($500,000), which shall be non-refundable and
fully earned on the date of payment and shall not be credited toward the Cash
Purchase Price, on the first day of each subsequent month this Agreement is
extended until the Closing has occurred or this Agreement has been terminated.

8.               Restructuring of Agreement.  Section 4.21 of the Agreement is deleted and
replaced with the following:

Purchaser shall reasonably determine, within 60 days of the
date of the Second Amendment, whether (i) consummating the Closing would cause
an event of default under the Indenture, and (ii) such default would not exist
if this Agreement were restructured as a sale of Seller’s membership interest
to Purchaser under terms substantially similar to this Agreement (the “Membership
Interest Purchase Agreement”).  If
Purchaser

makes the determination required by this Section 4.21 in the
affirmative, Seller and Purchaser shall, within 30 days of such a determination
(the “Negotiation Period”), negotiate in good faith a Membership Interest
Purchase Agreement.  On the date that the
Membership Interest Purchase Agreement becomes effective according to the terms
therein, if ever, this Agreement shall become null and void and of no further
force or effect and the parties shall thereafter abide by all of the terms and
conditions contained in the Membership Interest Purchase Agreement.

9.               Termination.  Section 7.1(a) of the Agreement is deleted and
replaced with the following:

(a)       This Agreement may be
terminated and the Transactions may be abandoned at any time prior to the
Closing:

(i)        by mutual written Consent
of the Purchaser and the Seller;

(ii)       by Purchaser at any time;

(iii)      by Seller if the Closing
does not occur on or before December 31, 2007 and Seller is not then in
material breach of any of its representations, warranties or covenants in this
Agreement; provided, however, that the date on which Seller may terminate under
this Section 7.1(a)(iii) shall be extended for one month for each month in
respect of which Purchaser continues to make the payments described in Section
4.15, and further provided, however, that, if, at any time prior to termination
of this Agreement, Seller shall be unable to perform its obligations under the
Lease Agreement, the date on which Seller may terminate under this Section
7.1(a)(iii) shall be automatically extended without any such payment until the
date on which the Lease Term would otherwise have expired.

(iv)      by Seller or Purchaser if
the Closing does not occur on or before June 30, 2008; provided, however, that
the right to terminate this Agreement under this clause (iv) shall not be
available to any party whose breach of a representation, warranty, covenant or
agreement under this Agreement has been the cause of or resulted in the failure
of the Closing to occur on or before such date;

(v)       by Seller or Purchaser if
any court of competent jurisdiction or other Governmental Authority shall have
issued an Order permanently restraining, enjoining or otherwise prohibiting the
Transactions, and such Order shall have become

final and nonappealable; or

(vi)  by Seller if the
Second Payment or Third Payment provided for in this Second Amendment is not
made within the time periods provided in this Second Amendment.

10.             Effect of Termination.  Section 7.2 of the Agreement is deleted and
replaced with the following:

In the event this Agreement is terminated pursuant to this
Article VII, the Transactions shall be abandoned, without further action by
either of the parties hereto, and this Agreement shall become void and have no
further force and effect, except that (a) the obligations of Purchaser set
forth in the Confidentiality Agreement shall remain in effect, (b) neither
party shall be relieved from any liabilities or damages arising out of a
material breach of any provision of this Agreement and (c) the respective
obligations of the parties set forth in Sections 4.6, 7.2, 8.1, 8.2, and
Article IX shall remain in effect.

11.             Definitions.  The following definitions are deleted from
Section 8.1 of the Agreement:

“Escrow Agent” shall have the meaning ascribed to it in
Section 4.21.

“Escrow Agreement” shall have the meaning ascribed to it in
Section 4.21.

12.             Inconsistencies; No Other Changes; No Default.  In the event of any inconsistency between the
terms and provisions of this Second Amendment and the terms and provisions of
the Agreement, the terms and provisions hereof shall control.  Purchaser and Seller agree that there are no
other changes to the Agreement, and the Agreement, as amended hereby, remains
in full force and effect.  Purchaser and
Seller hereby acknowledge and agree that, to their respective knowledge, the
other party is not in default under the Agreement.

13.             Effectiveness.  This Second Amendment shall be effective upon
mutual execution and delivery.

14.             Counterparts.  This Second
Amendment may be executed in counterparts, each of which shall be fully
effective as an original, and all of which together shall constitute one and
the same instrument.

15.             Exhibits.  Exhibit 5 of the Agreement is deleted in its
entirety therefrom.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have
caused this Second Amendment to be duly executed as of the date first above
written.

	
  

  	
   

  	
  HEDWIGS LAS VEGAS TOP TIER, LLC,

  
	
   

  	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Hedwigs Las Vegas GP, LLC,

  
	
   

  	
   

  	
   

  	
  a Delaware limited liability
  company

  
	
   

  	
   

  	
   

  	
  Its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  NTH Advisory Group, LLC

  
	
   

  	
   

  	
   

  	
  a California limited liability 

  
	
   

  	
   

  	
   

  	
  company

  
	
   

  	
   

  	
   

  	
  Its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
  /s/ Richard Bosworth

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   Richard Bosworth

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  155 EAST
  TROPICANA, LLC

  
	
   

  	
   

  	
  a Nevada limited liability company

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Michael Hessling

  	
   

  
	
   

  	
   

  	
  Name: Michael Hessling

  
	
   

  	
   

  	
  Title: PresidentExhibit 4.1

NEITHER THESE SECURITIES
NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE 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-2

  	
   

  	
  Original Issue Date: June 1, 2007

  

 

INTERNATIONAL FIGHT
LEAGUE, INC., a Delaware corporation (the “Company”),
hereby certifies that, for value received, Lifeline Industries, Inc. or its
permitted registered assigns (the “Holder”),
is entitled to purchase from the Company up to a total of ONE HUNDRED SIXTY
THOUSAND (160,000) 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 ONE DOLLAR AND TWENTY-FIVE CENTS
($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 April 2, 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 in
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 12(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 a registration statement under
the Securities Act of 1933 (the “Securities Act”) is not 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 may be
exercised 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 5:01 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, in immediately available funds and/or in accordance with Section 3(c)
below, for the number of Warrant Shares as to which this Warrant is being
exercised.  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.

(c)           Holder  may, at its option, elect to pay some or all
of the Exercise Price payable upon an exercise of this Warrant by cancelling a
portion of this Warrant with respect to such number of Warrant Shares as is
determined by dividing (i) the total Exercise Price payable in respect of the
number of Warrant Shares being purchased upon such exercise by (ii) the excess
of the Fair Market Value per share of Common Stock as of the Exercise Date,
over the Exercise Price per share.  The
Fair Market Value per share of Common Stock shall be determined as follows:

(i)            If the Common Stock
is listed or quoted on a national securities exchange, the Nasdaq National
Market or another nationally recognized exchange or trading system (including
the OTC Bulletin Board) as of the Exercise Date, the Fair Market Value per
share of Common Stock shall be deemed to be the last reported sale price per
share of Common Stock thereon on the Exercise Date, or, if no such price is
reported on such date, such price on the next preceding business day for which
such price is reported.

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(ii)           If the Common Stock is not listed or
quoted as described in (i) above, the Fair Market Value per share of Common
Stock shall be deemed to be the amount determined in good faith by the Board of
Directors of the Company  to represent
the value per share the Common Stock would have if it were publicly traded on a
nationally recognized exchange or trading system, not as an initial public
offering but on a seasoned basis and without any unusual market conditions or
any premium for control or discount for minority interests, illiquidity or
restrictions on transfer.

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 a registration statement covering the Warrant
Shares 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 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 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

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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 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

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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.

(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.             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, the number of Warrant Shares to be
issued shall be rounded up to the nearest whole number.

10.           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 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 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 10:

 5
 

 

	
  If to the Company:

  	
   

  	
  International Fight League, Inc.

  
	
   

  	
   

  	
  424 West 33rd Street, Suite 650

  
	
   

  	
   

  	
  New York, New York 10001

  
	
   

  	
   

  	
  Telephone No.: (212) 356-4028

  
	
   

  	
   

  	
  Facsimile No.: (212) 564-6546

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention: President, Legal and Business Affairs

  
	
   

  	
   

  	
   

  
	
  If to the
  original Holder:

  	
   

  	
  Lifeline Industries, Inc.

  
	
   

  	
   

  	
  1640 Anderson Avenue, Suite C

  
	
   

  	
   

  	
  Fort Lee, NJ 07024

  
	
   

  	
   

  	
  Telephone No.:

  
	
   

  	
   

  	
  Facsimile No.:

  
	
   

  	
   

  	
  Attention: Robb Knie

  

 

11.           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.

12.           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 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 transferred by
the Holder without the Company’s prior written consent, except to an Affiliate
of the Holder, provided, that, subject to compliance with applicable securities
laws, nothing in this Warrant shall prohibit the Holder from transferring any
Warrant Shares issued upon exercise of this Warrant.  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.

 6

(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 HOLDER AND THE COMPANY EACH 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.

(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.

14.           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.

“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”).

“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.

 7
 

 

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:

  	
  Michael
  C. Keefe

  
	
   

  	
  Title:

  	
  President, Legal and Business Affairs

  

 

 8
 

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.

 9
 

 

	
  

  	
   

  	
   

  
	
  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:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 10
 

 

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 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

 11
 

and the 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:

  	
   

  
	
   

  	
   

  
					

 

 12
 

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, and shall
pay the sum of $_______ to the Company in accordance with the terms of the
Warrant by:

	
  o

  	
   

  	
  $______ by wire transfer,
  bank check or other method acceptable to the Company, and/or

  
	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  the cancellation of such portion of the attached
  Warrant as is exercisable for a total of Warrant Shares (using a Fair Market
  Value of $_______ per share for purposes of this calculation).

  

 

(3)           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)

 13

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