Document:

CONSULTING
      AGREEMENT

     

    

    This
      Services Agreement (“Agreement”) is entered into and is effective as of October
      3, 2006, by and between Pro Elite, Inc., a New Jersey corporation, (“Company”),
      and Santa Monica Capital Partners II, LLC, a Delaware limited liability company
      (“SMC”), with reference to the following:

     

    RECITALS

     

    A.
       The
      Company desires to retain SMC for consulting services, and SMC desires to be
      retained by Company; 

     

    B. SMC
      has
      furnished consulting services since October 3, 2006 to the Company with the
      understanding that the Company and SMC would enter into this Agreement to
      document the terms and conditions previously agreed upon by each of the Company
      and SMC;

     

    C. The
      Company and SMC desire to enter into this three year consulting agreement for
      SMC to provide services relating to strategic planning, investor relations,
      acquisitions, corporate governance and financing (“Services”),
      from
      October 3, 2006 till September 30, 2009 (the
      “Term”).

     

    NOW,
      THEREFORE, the Company and SMC desire to set forth in this Agreement the terms
      and conditions of SMC's services to be provided to the Company.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements contained
      herein, the parties agree as follows:

     

    AGREEMENT

     

    1.  Engagement.
      Company
      hereby engages SMC to furnish services during the Term in the capacities and
      for
      the purposes of providing
      Services to
      Company as required by Company and as are customarily rendered by persons
      engaged in such capacities for such purposes to the best of their abilities.
      

     

    2.  Consulting
      Fee.
      In
full
      and
      complete consideration for all
      rights granted herein to Company and Company’s
      engagement and SMC’s rendition of the consulting services pursuant to this
      Agreement, Company shall pay to SMC the following:

     

    Thirty
      Thousand Dollars ($30,000) for each month of the first year of the Term, with
      the first year commencing on October 3, 2006, and continuing through September
      30, 2007 (the “First
      Year”),
      and
      each subsequent year having a commencement date of October 1st,
      and a
      completion date of September 30th
      (the
“Year”),
      payable in equal monthly installments no later than the tenth day of each month,
      which amount shall be determined by the Company after the First Year and each
      subsequent Year, but not less than an increase of 5% per Year (“Consulting
      Fee”).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.  Expenses.
      The
      Company shall reimburse SMC for all necessary and reasonable out-of-pocket
      business expenses incurred by SMC in connection with its performance of its
      duties hereunder; provided, however, that the
      Consultant shall not be entitled to any such reimbursement for any expenses
      aggregating more than Five Thousand Dollars ($5,000) in any one calendar month
      if such expenses were not authorized in advance in writing by the Company’s
      Chief Executive Officer or Chief Financial Officer. The Company shall make
      any
      reimbursement required under this Section within thirty (30) days after the
      Company receives receipt and other documentation therefor sufficient to enable
      the Company to treat the expense in question as an ordinary business expense
      for
      federal income tax purposes.

     

    4.  Benefits.
      In
      addition to the Consulting Fee, Company shall offer to SMC’s Members, David
      Marshall, Kurt Brendlinger and Eric Pulier (each a “Member”),
      benefits for the Member, his spouse and his children, if any, in the form of
      health care insurance, life insurance, disability insurance, retirement
      programs, etc., as is provided to its executive employees. If the Company does
      not provide employee benefits to its executive employees at the time the Member
      requests such benefits, the Company will provide to the Member health, dental,
      vision and/or supplemental disability insurance that is normally provided to
      executive employees in the sports promotion industry for the Member, his spouse
      and his children, if any, until the Company offers health care insurance to
      its
      executive officers, upon which Member shall receive the same employee benefits
      as is provided to the Company’s executive employees. 

     

    5.  Equity
      Interest.
      SMC
      received 450 shares of the Common Stock of Real Sport, Inc., which was
      subsequently exchanged for 11,250, 000 shares of the Company, post-reverse
      stock
      split, as part of a financing of $10,000,000.

     

    6.  Termination
      of this Agreement.
      This
      Agreement shall terminate on September 30, 2009, subject to Section 7 of this
      Agreement. 

     

    7.  Automatic
      Extension.
      Unless
      either (a) this Agreement has been terminated prior to the expiration of
      the Term, or (b) one party notifies the other party on or before
      August 15 of any last Year of the Term (including the original Term or as
      the same may have been previously extended) that such party does not wish such
      Term to be extended or further extended, this Agreement shall be automatically
      extended upon the terms and conditions hereof for one additional Year at the
      conclusion of the original or extended Term.

     

    8.  Publicity.
      SMC
      shall authorize or cause the release or dissemination of publicity of any type
      in connection with the services provided by SMC pursuant to this Agreement.
      Any
      breach of the provisions of this paragraph shall be a material breach of
      this Agreement.

     

    9.  Effect
      of Expiration or Termination.
      Notwithstanding anything to the contrary contained in this Agreement, neither
      the expiration nor the termination of this Agreement for any reason shall affect
      the ownership by Company of the results and proceeds of the services rendered
      by
      SMC hereunder, or alter any of the rights or privileges of Company or any
      warranty, representation or undertaking on the part of SMC
      hereunder.

     

    10.   
      Warranties.
      SMC
      represents and warrants that: (a) SMC has the full right, power and
      authority to enter this Agreement and grant the rights granted to Company herein
      without the consent of any third party; (b) SMC is not subject to any
      conflicting obligation or any disability which will or might prevent it from,
      or
      materially interfere with, the execution and performance of this Agreement;
      and
      (c) SMC is a bona fide company duly organized under the laws of Delaware
      and qualified to do business in California.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    11.   
      Arbitration.
      All
      claims or disputes between the Company and Consultant arising out of or relating
      to this Agreement, or the breach thereof, shall be decided by arbitration in
      accordance with the Arbitration Rules of the American Arbitration Association
      currently in effect unless the parties mutually agree otherwise. The governing
      law shall be that of the State of California. The award rendered by the
      arbitrator or arbitrators shall be final, and judgment may be entered upon
      it in
      accordance with applicable law of the State of California. The arbitrator shall
      be entitled to award reasonable attorneys’ fees to the prevailing party.

     

    12.   
      Confidential
      Information.
      SMC
      shall hold and keep confidential for the benefit of Company all secret or
      confidential information, files, documents other media in which confidential
      information is contained, knowledge or data (collectively the “Confidential
      Information”) relating to Company or any of its affiliated companies, and their
      respective businesses, which shall have been obtained by SMC during SMC’s
      engagement by Company or any of its affiliated companies. Confidential
      Information does not include information that is already public knowledge at
      the
      time of disclosure (other than by acts by SMC or their affiliates in violation
      of this Agreement) or that is provided to SMC by a third party without an
      obligation with Company to maintain the confidentiality of such information.
      After termination of SMC’s engagement with Company, SMC shall not, without the
      prior written consent of Company, or as may otherwise be required by law or
      legal process, communicate or divulge any Confidential Information to anyone
      other than Company and those designated by it. SMC shall acknowledge that all
      confidential documents are and shall remain the sole and exclusive property
      of
      Company regardless of who originally acquired the confidential documents. SMC
      agrees to return to Company promptly upon the expiration or termination of
      its
      engagement or at any other time when requested by Company, any and all property
      of Company, including, but not limited to, all confidential documents and copies
      thereof in its possession or control. Any loss resulting from a breach of the
      foregoing obligations by SMC to protect the Confidential Information could
      not
      be reasonably or adequately compensated in damages in an action at law.
      Therefore, in addition to other remedies provided by law or this Agreement,
      Company shall have the right to obtain injunctive relief, in the appropriate
      court, at any time, against the dissemination by SMC of the Confidential
      Information, or the use of such information by SMC in violation
      hereof.

     

    13.   
      Benefit,
      Binding Effect.
      This
      Agreement will bind, inure to the benefit of, and be enforceable by the parties,
      their estates, heirs, legatees, devisees, administrators, executors, personal
      representatives, successors and assigns.

     

    14.   
      Assignment.
      This
      Agreement may be assigned by Company and may not be assigned by SMC, except
      with
      respect to SMC’s right to receive compensation hereunder, provided that any such
      assignment shall be in writing and shall not be assigned to more than one
      assignee, and such assignment by SMC shall not relieve SMC of any of its
      obligations hereunder. Notwithstanding the foregoing, SMC may delegate its
      services to a third party subject to Company’s approval, provided that SMC shall
      be ultimately responsible for the services provided to Company by such third
      party. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    15.   
      Amendment.
      This
      Agreement may be modified or rescinded only by a writing signed by the parties
      specifically stating that it is an amendment or rescission.

     

    16.   
      Entire
      Agreement.
      This
      Agreement constitutes a complete and final statement of the terms of the
      agreement between the parties, contains their entire agreement, and supersedes
      all other agreements and understandings, whether written or oral, covering
      the
      subject matter hereof. The parties further represent and warrant that there
      are
      no representations, contracts, agreements, arrangements or understandings
      between them, whether written or oral, relating to the subject matter contained
      in this Agreement, which are not fully expressed herein.

     

    17.   
      Applicable
      Law.
      This
      Agreement as well as any and all claims and disputes arising, directly or
      indirectly, therefrom will be governed by and construed, interpreted and
      enforced in accordance with the laws of the sate of California applicable to
      contracts entered into and to be performed wholly within that state without
      the
      application of any principles or choice or conflicts of laws.

     

    18.   
      Severability.
      In the
      event any provision of this Agreement shall be held to be unenforceable in
      a
      court of law or equity: (i) the parties agree to negotiate in good faith an
      acceptable alternative provision which reflects as closely as possible the
      intent of the unenforceable provision; and (ii) the validity, legality and
      enforceability of the remaining provisions of this Agreement shall not in any
      way be affected or impaired thereby, and shall remain in full force and
      effect.

     

    19.   
      Agreement
      Negotiated.
      The
      parties hereto are sophisticated and have either been represented by lawyers
      throughout this transaction or have knowingly, willingly and intelligently
      waived their right to seek legal counsel prior to execution of this Agreement.
      As a consequence, the parties do not believe that the presumptions of Civil
      Code
      Section 1654 relating to the interpretation of contracts against the drafter
      of
      any particular clause should be applied in this case and therefore waive its
      effects.

     

    20.   
      Counterparts/Copies.
      This
      Agreement and copies hereof may be executed in two or more counterparts, each
      of
      which together will constitute one and the same instrument and will have the
      same force and effect as though all parties had executed one
      original.

     

    21.   
      Waiver
      and Laches.
      No
      waiver by any party hereto of any term or condition of this Agreement shall
      be
      deemed or construed to be a waiver of such term or condition of the future,
      or
      of any preceding or subsequent breach of the same or any other term or condition
      of this or any other agreement.

     

    22.   
      Authorized
      Signators.
      Each
      party and each person signing this Agreement on behalf of a party represents
      and
      warrants as follows: (a) the party has full authority and the right to
      enter into this Agreement; (b) the member or officer signing on behalf of a
      party has full authority to sign on that party’s behalf and by so signing binds
      the party without further legal or other action; (c) the party has read the
      Agreement carefully and understands the contents and legal effect of each of
      its
      provisions; (d) the party and person signing this Agreement consulted with
      one or more attorneys of that party’s own choosing or had a reasonable
      opportunity to so consult and elected not to do so; (e) the party has
      executed the Agreement voluntarily and without duress or undue influence on
      the
      part of, or on behalf of any person or entity; (f) no rights compromised or
      affected by this Agreement have been sold, assigned, or otherwise transferred
      by
      the party executing this Agreement. These representations and warranties shall
      survive the termination of this Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    23.   
      Transmission
      by Facsimile.
      Transmission by facsimile equipment of an executed copy of this Agreement will
      constitute delivery of a binding written contract, and the facsimile copy
      including but not limited to facsimile signatures will be enforceable and will
      constitute evidence to the same extent as if the executed original had been
      delivered.

     

    24.   
      Notices.
      Any
      notice, request, demand, consent, waiver, or other item required or permitted
      under this Agreement or applicable law must be in writing and will be deemed
      duly given or made only: (a) if personally served upon the party intended
      to receive it, in which case it is effective when delivered; or (b) is sent
      by certified mail, return receipt requested, postage prepaid, addressed to
      the
      party at its address set forth in this Agreement, in which case it is effective
      upon receipt by any person residing at such address; or (c) is sent
      electronically with a “hard” copy sent by first class mail or by an express mail
      service, postage prepaid, addressed to the party at the address set forth in
      this Agreement, in which case it is effective upon receipt by any person
      residing at such address; or (d) is sent by some form of nationally
      recognized express mail service, e.g., Express Mail© or Federal Express©,
      postage prepaid, addressed to the party at its address set forth in this
      Agreement, in which case it is effective upon receipt by any person residing
      at
      such address.

     

    The
      addresses for notices to the parties are as follows:

     

    
      	
              SMC

            	
              Company

            
	 	 
	
              Santa
                Monica Capital Partners II, LLC

            	
              Pro
                Elite, Inc.

            
	
              9229
                Sunset Boulevard, Suite 505

              Los
                Angeles, California 90069

            	
              12100
                Wilshire Boulevard, Suite 800

              Los
                Angeles, CA 90025

            
	
              Attn:
                David Marshall

            	
              Attn:
                Douglas DeLuca

            
	 	 
	 	
              With
                a copy to:

            
	 	
               

              David
                Ficksman, Esq.

              Troy
                & Gould

              1801
                Century Park East, 16th
                Floor

              Los
                Angeles, California 90067

            

    

     

    No
      objection may be made to the manner of delivery of any notice actually received
      in writing by an authorized agent of a party. A party may change its address
      for
      purposes of this Agreement only by giving notice to the other in the manner
      set
      forth herein.

     

    25.   
      Recitals
      are Binding.
      All of
      the terms and conditions of this Agreement including but not limited to all
      introductory Paragraphs, Recitals and Conditions Precedent, and all Schedules
      and documents attached hereto are contractual and binding upon the parties
      hereto and are incorporated herein by reference.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    26.   
      Independent
      Contractor.
      This
      Agreement does not constitute SMC as agent, employee, legal representative,
      joint venturer or partner of the Company for any reason whatsoever.

    

     

    

     

    [Signature
      page follows]

     

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    The
      parties hereto execute in the spaces provided below agreeing to all of the
      foregoing as of the date first set forth herein.

     

    

    
      	
              “SMC”

               

              SANTA
                MONICA CAPITAL PARTNERS II, LLC

               

              By:
                Santa Monica Capital Corporation, 

              Manager
                Member

               

              By:
                /s/ David
                Marshall                          
                

              David
                Marshall, President 

               

            	
              “Company”

               

              PRO
                ELITE, INC.

               

               

              By:/s/
                Douglas
                DeLuca                           
                

              Name:
                Douglas
                DeLuca                      
                      

              Its:Chief
                Executive
                Officer                      
                

               

               

            

    

    
 

     

     

    
      
        
        

      

      
        7Unassociated Document

    EMPLOYMENT
      AGREEMENT

     

    This
      EMPLOYMENT AGREEMENT (this “Agreement”)
      is entered into as of January 8th, 2007 by and among ProElite, Inc., a New
      Jersey corporation, (the “Pro
      Elite”),
      ProElite.com, a California corporation and a wholly owned subsidiary
      (“ProElite.com,”
      together with Pro Elite, the “Company”),
      and Kelly Perdew (“Employee,”
      together with the Company, the “Parties”),
      with reference to the following facts:

     

    WHEREAS,
      the Company desires to employ the Employee, and Employee desires to be employed
      by Company pursuant to the terms hereof;

     

    WHEREAS,
      Employee desires to commit to an agreement with the Company to serve as the
      President of ProElite.com; and

     

    NOW,
      THEREFORE, the Company and Employee desire to set forth in this Agreement the
      terms and conditions of the Employee's employment with the Company.

     

    ARTICLE
      I

     

    EMPLOYMENT;
      TERM; DUTIES

     

    1.1  Employment.
      Upon
      the terms and conditions hereinafter set forth, the Company hereby employs
      Employee, and Employee hereby accepts employment to serve as the President
      of
      ProElite.com. 

     

    1.2  Duties.
      Employee shall have the responsibilities and carry out the customary functions
      of a President of a wholly-owned subsidiary, which duties shall not be
      materially diminished during the Term; provided however, that Employee shall
      perform such other reasonable duties and responsibilities that are commensurate
      with his position and title as may be assigned from time to time by the Company
      and by the Board of Directors of the Company (the “Board”).
      Employee shall report to the Chief Executive Officer of Pro Elite (“CEO”).
      

     

    1.2.1  Employee
      shall use his best efforts and abilities faithfully and diligently to promote
      the Company’s business interests. For so long as Employee is employed by the
      Company, Employee shall not, directly or indirectly, either as an employee,
      employer, consultant, agent, investor, principal, partner, stockholder (except
      as the holder of less than 1% of the issued and outstanding stock of a publicly
      held corporation), corporate officer or director, or in any other individual
      or
      representative capacity, engage or participate in any business that is in
      competition in any manner whatsoever with the business of the Company,
      ProElite.com, and EliteXC Live, Inc., and other entities the Company may form
      in
      the future (the “Company Group”), as such businesses are now or hereafter
      conducted. Subject to the foregoing prohibition and provided such services
      or
      investments do not violate any applicable law, regulation or order, or interfere
      in any way with the faithful and diligent performance by Employee of the
      services to the Company otherwise required or contemplated by this Agreement,
      the Company expressly acknowledges that Employee may:

     

    (a)  make
      and
      manage personal business investments, including real estate investments and
      developments, of Employee’s choice without consulting the Board;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)  continue
      to serve on the board of directors for or be involved with the companies listed
      in Exhibit
      A
      attached
      hereto; and

     

    (c)  speak
      at
      no more than two (2) non-Company related public speaking engagements per month
      without consulting the Board, provided that such speaking engagements do not
      interfere with Employee’s ability to carry out his duties and responsibilities
      as President of ProElite.com.

     

    1.3  Covenants
      of Employee

     

    1.3.1  Reports.
      Employee shall use his best efforts and skills to truthfully, accurately, and
      promptly make, maintain, and preserve all records and reports that the Company
      may, from time to time, request or require, fully account for all money,
      records, equipment, materials, or other property belonging to the Company of
      which he may have custody, and promptly pay and deliver the same whenever he
      may
      be directed to do so by the Board.

     

    1.3.2  Rules
      and Regulations.
      Employee shall obey all rules, regulations and special instructions of the
      Company and all other rules, regulations, guides, handbooks, procedures,
      policies and special instructions applicable to the Company’s business in
      connection with his duties hereunder and shall endeavor to improve his ability
      and knowledge of the Company’s business in an effort to increase the value of
      his services for the mutual benefit of the Company and the
      Employee.

     

    1.3.3  Opportunities.
      Employee shall make all business opportunities of which he becomes aware that
      are relevant to the Company’s business available to the Company, and to no other
      person or entity or to himself individually.

     

    1.4  Term.
      The
      term of this Employment Agreement shall be the period commencing on January
      8th,
      2007 and ending upon the date of termination of Employee’s employment with the
      Company under Section 4.1 (the “Term”).

     

    ARTICLE
      II

     

    COMPENSATION
      

     

    2.1  Base
      Salary.
      During
      the Term, for all services rendered by Employee hereunder and all covenants
      and
      conditions undertaken by both Parties pursuant to this Agreement, the Company
      shall pay, and Employee shall accept, as compensation, an annual base salary
      of
      $225,000 per year through December 31, 2007 (“Base
      Salary”).
      Thereafter, Employee shall receive an increase in the applicable Base Salary,
      which shall be no less than 5% per year. This Base Salary shall be payable
      in
      accordance with the normal payroll practices of the Company. 

     

    2.2  Performance
      and Review.
      Employee’s performance will be reviewed on no less than an annual
      basis.

     

    2.3  Bonus.
      If the
      Company pays any bonuses to senior executives, Employee will receive a minimum
      bonus of $50,000, payable in the form of cash at the end of each calendar year.
      Any additional bonus shall be based on the following two factors, each of which
      shall be given equal weight in determining the bonus amount Employee will
      receive that calendar year:

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    2.3.1  The
      Company’s performance, based on the performance criteria established by the
      Company’s Compensation Committee in its sole discretion; and

     

    2.3.2  The
      Employee’s job performance, based on the performance criteria established by the
      Company’s Compensation Committee in its sole discretion.

     

    2.4  Options.
      Employee shall be granted options to acquire 1,700,000 shares of the Company’s
      common stock under the Company’s 2006 Stock Compensation Plan (“Option
      Shares”),
      subject to the additional terms set forth in the Company’s Stock Option
      Agreement, of which 340,000 Option Shares shall vest immediately. The
      options will be exercisable at $2.00 per share of common stock and the remaining
      1,360,000 Option Shares shall vest in equal installments on the last day of
      every calendar month during the Term, beginning on January 31st 2007. All
      1,700,000 shares associated with Employee’s options will be registered to be
      freely tradable at the first available opportunity, but in no event will they
      be
      tradeable later than the shares of Santa Monica Capital Partners. 

     

    2.4.1  Employee
      shall, in addition to the rights provided under the 2006 Stock Compensation
      Plan
      and in the Company’s Stock Option Agreement, have the right to exercise the
      options pursuant to a cashless exercise by
      written notice to the Company on the Notice of Exercise duly executed by the
      Employee, and receive a number of Option Shares, determined in accordance with
      the formula set forth below (the “Election”),
      in which event the Company shall issue to the Employee a number of Option Shares
      computed using the following formula: 

     

    X=
      Y(A-B)

     

    A

     

    Where
      

     

    
      
        	 	
                X
                  = 

              	
                The
                  number of Option Shares to be issued to the Employee upon an
                  Election.

              

      

       

    

    
      	 	
              Y
                = 

            	
              The
                number of Option Shares in respect of which the option is being exercised
                as adjusted to the date of the
                Election.

            

    

     

    
      	 	
              A
                =

            	
              The
                Fair Market Value of one Option Share on the date that the relevant
                Notice
                of Exercise is received by the
                Company.

            

    

     

    
      	 	
              B
                =

            	
              The
                Option Exercise Price (as set forth in the Company’s Option
                Certificate).

            

    

     

    2.4.2  For
      purposes of this section 2.4, “Fair
      Market Value”
shall
      mean:

     

    (a)  If
      traded
      on a securities exchange, the Nasdaq National Market or the Nasdaq Small Cap
      Market, the Fair Market Value shall be deemed to be the average of the closing
      prices of the common stock of the Company on such exchange or market over the
      five (5) business days ending immediately prior to the applicable date of
      valuation;

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (b)  If
      actively traded over-the-counter, the Fair Market Value shall be deemed to
      be
      the average of the closing bid prices over the 14-day period ending immediately
      prior to the applicable date of valuation; and

     

    (c)  If
      there
      is no active public market, the Fair Market Value shall be the value as
      determined in good faith by the Company’s Board of Directors upon a review of
      relevant factors.

     

    2.4.3  In
      the
      event this Agreement is terminated pursuant to Section 4.1 of this Agreement,
      Employee shall not thereafter be able to exercise any options that are not
      vested as of December 31 of the calendar year of such termination; however
      Employee will be able to exercise all options that vest through December 31
      of
      that calendar year of such termination. Employee or his legal representative,
      estate or beneficiaries in the case of death or disability as the case may
      be
      shall have the right to exercise any or all of the vested Option Shares during
      the period beginning on the date Employee’s employment is terminated and ending
      on the later of 30 days after the Employee’s lock-up period ends (assumed to be
      May 3, 2008); 90 days after the termination date; or 30 days after all of
      Employee’s shares associated with vested options, should they be exercised,
      become freely tradeable.

     

    2.4.4  During
      the Term of this Agreement, in the event of a Change of Control, Employee’s
      Option Shares shall vest immediately. “Change
      of Control”
      means
      the occurrence after the date hereof of any of (i) an acquisition after the
      date
      hereof by an individual or legal entity or “group” (as described in Rule
      13d-5(b)(1) promulgated under the Securities Exchange Act of 1934, as amended)
      of effective control (whether through legal or beneficial ownership of capital
      stock of the Company, by contract or otherwise) of in excess of 50% of the
      voting securities of the Company (other than by means of conversion or exercise
      of warrants that have already been issued by the Company as of the date hereof),
      or (ii) the Company merges into or consolidates with any other Person, or any
      Person merges into or consolidates with the Company and, after giving effect
      to
      such transaction, the stockholders of the Company immediately prior to such
      transaction own less than 50% of the aggregate voting power of the Company
      or
      the successor entity of such transaction, or (iii) the Company sells or
      transfers all or substantially all of its assets to another Person and the
      shareholders of the Company immediately prior to such transaction own less
      than
      50% of the aggregate voting power of the acquiring entity immediately after
      the
      transaction, or (iv) a replacement at one time or within a three year period
      of
      more than one-half of the members of the Company’s board of directors which is
      not approved by a majority of those individuals who are members of the board
      of
      directors on the date hereof (or by those individuals who are serving as members
      of the board of directors on any date whose nomination to the board of directors
      was approved by a majority of the members of the board of directors who are
      members on the date hereof), or (v) the execution by the Company of an agreement
      to which the Company is a party or by which it is bound, providing for any
      of
      the events set forth in clauses (i) through (iv) above.

     

    (a)  “Person”
      means an 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.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    2.5  Employee
      Benefit Plans.
      During the Term, Employee shall be entitled to participate in any pension,
      savings and group term life, medical, dental, disability and other group benefit
      plans which the Company makes available to its employees generally. Company
      will
      pay for Employees benefits. To the extent that Employee is now or ever deemed
      to
      be an officer of the Company, Company will provide Employee with coverage under
      D&O insurance throughout the term of this Agreement and Company will make
      available to Employee certificate of insurance for inspection.

     

    2.6  Withholding.
      The
      Company may deduct from any compensation payable to Employee (including payments
      made pursuant to Section 2 of this Agreement in connection with or following
      termination of employment) amounts sufficient to cover Employee’s share of
      applicable federal, state and/or local income tax withholding, old-age and
      survivors’ and other social security payments, state disability and other
      insurance premiums and payments.

     

    ARTICLE
      III

     

    BUSINESS
      EXPENSES

     

    3.1  Business
      Expenses.
      Employee will be reimbursed for all reasonable, out-of-pocket business expenses
      (including but not limited to travel, food and lodging expenses, a new computer,
      cell phone/PDA, and online connectivity.) incurred in the performance of his
      duties on behalf of the Company consistent with the Company’s policies and
      procedures, including prior approval requirements and submission of appropriate
      supporting documentation.

     

    ARTICLE
      IV

     

    TERMINATION
      OF EMPLOYMENT

     

    4.1  Termination

     

    4.1.1  Employee’s
      employment pursuant to this Agreement shall terminate on the earliest to occur
      of the following:

     

    (a)  December
      31, 2011;

     

    (b)  upon
      the
      death of Employee (“Death”);

     

    (c)  upon
      the
      delivery to Employee of written notice of termination by the Company if Employee
      shall suffer a physical or mental disability or illness which renders Employee,
      in the reasonable judgment of the Board, unable to perform his duties and
      obligations under this Agreement, with or without reasonable accommodation,
      for
      either 60 consecutive days or 180 days in any 12-month period (“Disability”); 

     

    (d)  upon
      delivery to Company of written notice of termination by the Employee for Good
      Reason;
      

     

    (e)  90
      days
      after delivery to Employee of written notice of termination by the Company
      For
      Cause; 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (f)  December
      31, 2007 if Employee receives a written notice from the Company by September
      30,
      2007 of its intention to terminate Employee’s employment as President of
      ProElite.com; 

     

    (g)  December
      31, 2008 if Employee receives a written notice from the Company by September
      30,
      2008 of its intention to terminate Employee’s employment as President of
      ProElite.com; 

     

    (h)  December
      31, 2009 if Employee receives a written notice from the Company by September
      30,
      2009 of its intention to terminate Employee’s employment as President of
      ProElite.com; or

     

    (i)  December
      31, 2010 if Employee receives a written notice from the Company by September
      30,
      2010 of its intention to terminate Employee’s employment as President of
      ProElite.com.

     

    (j)  For
      the purpose of clarification and by way of example, if Company terminates
      Employee on September 1, 2007, then Employee will receive full payment and
      benefits and options vesting through December 31st
      2007 plus four (4) additional months of severance pay and benefits. If Company
      terminates Employee on Oct 1st,
      2007, then Employee will receive full compensation and benefits and options
      vesting through December 31st,
      2008 plus four (4) additional months of severance pay and benefits.

     

    4.2  Certain
      Definitions.
      For
      purposes of this Agreement, the following terms shall have the following
      meanings:

     

    4.2.1  “For
      Cause”
shall
      mean, in the context of a basis for termination of Employee’s employment with
      the Company, that:

     

    (a)  Employee
      is convicted
      of, or pleas nolo
      contendere
      (no
      contest) to, any crime (whether or not involving the Company) constituting
      a
      felony in the jurisdiction involved;

     

    (b)  Employee’s
      willful misconduct in the performance of Employee’s duties
      hereunder;

     

    (c)  Employee’s
      gross negligence in the performance of his duties hereunder or willful and
      repeated failure or refusal to perform such duties as may be delegated to
      Employee by Company commensurate with his position; or 

     

    (d)  Employee
      is in material breach of any provision of this Agreement. 

     

    4.2.2  “Good
      Reason”
giving
      rise to Employee’s right to terminate this Agreement means
      that
      Company has materially breached this Agreement. If Employee claims that the
      Company has so breached this Agreement, Employee shall provide written notice
      to
      Company of any such claimed material breach with exact details of the claimed
      material breach and Company shall have had thirty (30) days from the date of
      receipt of such written notice to cure any such breach; if curable, and in
      the
      event Company does so cure such breach within said thirty (30) days, such
      claimed breach shall not constitute Good Reason or a breach of this Agreement.
      

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    4.3  Effect
      of Termination.
      If
      Employee’s employment is terminated by the Company, and provided that Employee
      executes and delivers to the Company, and does not revoke, a written release
      (the “Release”)
      of any
      and all claims against the Company with respect to all matters arising out
      of
      Employee’s employment by the Company, or the termination thereof (other than
      claims for any entitlements under the terms of this Agreement, claims
      under
      any plans or programs of the Company under which Employee has accrued a benefit,
      and rights to indemnification under applicable law or agreement), the
      Company agrees to pay to Employee the Base Salary when and in the manner as
      if
      Employee’s employment had not terminated for a period of four consecutive
      months, during which time Employee shall be entitled to participate in any
      employee benefits plans (“Severance”).
      The
      Company shall be entitled to defer payment of any amounts under this Section
      4
      until the expiration of any period during which Employee shall have the right
      to
      revoke the Release. 

     

    4.3.1  Employee
      acknowledges that Employee’s employment may terminate without cause, or pursuant
      to Subsections 4.1.1 (b), (c), (e), (f), (g), (h) or (i), and that such
      termination shall not be a breach of this Agreement or any other express or
      implied agreement between the Company and Employee. Accordingly, in the event
      of
      such termination, Employee shall be entitled only to those benefits specifically
      provided for in this Agreement in the event of such termination, and shall
      not
      have any other rights to any compensation or damages from the Company for breach
      of contract or tort arising from such termination.

     

    4.3.2  Employee
      acknowledges that in the event of termination of his employment for any reason
      Employee shall not be entitled to any severance or other compensation from
      the
      Company except as specifically provided in this Section 4.3, and shall not
      be entitled to participate in any employee benefits plans except as provided
      in
      such plans, in Section 4.3 or as required by law. Without limitation on the
      generality of the foregoing, this Section supersedes any plan or policy of
      the
      Company that provides for severance to its officers or employees, and Employee
      shall not be entitled to any benefits under any such plan or
      policy.

     

    ARTICLE
      V

     

    INVENTIONS
      AND TRADEMARK; CONFIDENTIAL INFORMATION; NON-DISCLOSURE; UNFAIR COMPETITION;
      CONFLICT OF INTEREST

     

    5.1  Inventions
      and Trademark.
      All
      ideas, inventions, trademarks, proprietary information, know-how, processes
      and
      other developments or improvements developed by Employee, alone or with others,
      during the Term, that are within the scope of Company’s business operations or
      that relate to Company’s work or projects, are the exclusive property of
      Company. In that regard, Employee agrees to disclose promptly to Company any
      and
      all inventions, discoveries, trademarks, proprietary information, know-how,
      processes or improvements, patentable or otherwise, that he may make from the
      beginning of Employee’s employment until the termination thereof, that relate to
      the business of Company, whether such is made solely or jointly with others.
      Employee further agrees that, during the Term, he will provide Company with
      a
      reasonable level of assistance, at Company’s sole option and expense, to obtain
      patents in the United States of America, or elsewhere on any such ideas,
      inventions, trademarks and other developments, and agrees to execute all
      documents necessary to obtain such patents in the name of Company.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    5.2  Confidential
      Information.
      Employee shall hold and keep confidential for the benefit of Company all secret
      or confidential information, files, documents other media in which confidential
      information is contained, knowledge or data (collectively the “Confidential
      Information”)
      relating to the Company or any of its affiliated companies, and their respective
      businesses, which shall have been obtained by Employee during his employment
      by
      Company or any of its affiliated companies. Confidential Information does not
      include information that is already public knowledge at the time of disclosure
      (other than by acts by Employee or his representatives in violation of this
      Agreement) or that is provided to Employee by a third party without an
      obligation with Company to maintain the confidentiality of such information.
      After termination of Employee’s employment with Company, he shall not, without
      the prior written consent of Company, or as may otherwise be required by law
      or
      legal process, communicate or divulge any Confidential Information to anyone
      other than Company and those designated by it. Employee shall acknowledge that
      all confidential documents are and shall remain the sole and exclusive property
      of Company regardless of who originally acquired the confidential documents.
      Employee agrees to return to Company promptly upon the expiration or termination
      of his employment or at any other time when requested by Company, any and all
      property of Company, including, but not limited to, all confidential documents
      and copies thereof in his possession or control. Any loss resulting from a
      breach of the foregoing obligations by Employee to protect the Confidential
      Information could not be reasonably or adequately compensated in damages in
      an
      action at law. Therefore, in addition to other remedies provided by law or
      this
      Agreement, Company shall have the right to obtain injunctive relief, in the
      appropriate court, at any time, against the dissemination by Employee of the
      Confidential Information, or the use of such information by Employee in
      violation hereof.

     

    5.2.1  Restriction
      on Use of Confidential/Trade Secret Information.
      Employee agrees that his use of confidential/trade secret information is subject
      to the following restrictions for an indefinite period of time so long as the
      confidential/trade secret information has not become generally known to the
      public:

     

    (a)  Non-Disclosure.
      Employee agrees that he will not publish or disclose, or allow to be published
      or disclosed, confidential/trade secret information to any person without the
      prior written authorization of the Company unless pursuant to Employee’s job
      duties to the Company under this Agreement.

     

    (b)  Non-Removal/Surrender.
      Employee agrees that he will not remove any confidential/trade secret
      information from the offices of the Company or the premises of any facility
      in
      which the Company is performing services, except pursuant to his duties under
      this Agreement. Employee further agrees that he shall surrender to the Company
      all documents and materials in his possession or control which contain
      confidential/trade secret information and which are the property of the Company
      upon the termination of this Agreement, and that he shall not thereafter retain
      any copies of any such materials.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    5.2.2  Non-Solicitation
      of Customers/Prohibition Against Unfair Competition.
      Employee agrees that at no time after his employment with the Company will
      he
      engage in competition with the Company while making any use of the Company’s
      confidential/trade secret information. Employee agrees that he will not directly
      or indirectly accept or solicit, whether as an employee, independent contractor
      or in any other capacity, the business of any customer of the Company with
      whom
      Employee worked or otherwise had access to the Company’s confidential/trade
      secret information pertaining to its business with that customer during the
      last
      year of his employment with the Company.

     

    5.3  Non-Solicitation
      During Employment.
      Employee shall not during his employment inappropriately interfere with the
      Company’s business relationship with its customers or suppliers or solicit any
      of the employees of the Company to leave the employ of the Company.

     

    5.4  Non-Solicitation
      of Employees.
      Employee agrees that, for one year following the termination of his employment,
      he shall not, directly or indirectly, ask or encourage any of the Company’s
      employees to leave their employment with the Company or solicit any of the
      Company’s employees for employment.

     

    5.5  Breach
      of Provisions.
      If the
      Employee breaches any of the provisions of this Section 5, or in the event
      that
      any such breach is threatened by the Employee, in addition to and without
      limiting or waiving any other remedies available to the Company at law or in
      equity, the Company shall be entitled to immediate injunctive relief in any
      court, domestic or foreign, having the capacity to grant such relief, to
      restrain any such breach or threatened breach and to enforce the provisions
      of
      this Section 5. 

     

    5.6  Reasonable
      Restrictions.
      The
      parties acknowledge that the foregoing restrictions, as well as the duration
      and
      the territorial scope thereof as set forth in this Section 5, are under all
      of
      the circumstances reasonable and necessary for the protection of the Company
      and
      its business.

     

    5.7  Definition.
      For
      purposes of this section 5, the term “Company”
shall
      be deemed to include any parent, subsidiary or affiliate of the
      Company.

     

    ARTICLE
      VI

     

    MISCELLANEOUS

     

    6.1  Binding
      Effect; Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties and
      their respective legal representatives, heirs, distributees, successors and
      assigns. Employee may not assign any of his rights and obligations under this
      Agreement. The Company may assign its rights and obligations under this
      Agreement to any successor entity. Provided, said assignment shall not delay
      in
      any manner the implantation of the Employees rights under paragraph 2.4.4 of
      this Agreement.

     

    6.2  Notices.
      Any
      notice provided for herein shall be in writing and shall be deemed to have
      been
      given or made (a) when personally delivered or (b) when sent by telecopier
      and
      confirmed within 48 hours by letter mailed or delivered to the party to be
      notified at its or his address set forth herein; or three days after being
      sent
      by registered or certified mail, return receipt requested, (or by equivalent
      carrier with delivery documentation such as FEDEX or UPS) to the address of
      the
      other party set forth or to such other address as may be specified by notice
      given in accordance with this section 6.2:

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
              If
                to the Company:

            	
              Pro
                Elite, Inc.

              12100
                Wilshire Boulevard, Suite 800

              Los
                Angeles, California 90025

              Telephone: (310)
                806-9420

              Facsimile: (310)
                806-9426

              Attention: Douglas
                De Luca

            
	 	 
	
              If
                to Employee:

            	
              Kelly
                Perdew

              225
                California Ave 

              Santa
                Monica, CA
                90403             
                 

              Telephone: (310)
                890.8129

              Facsimile: (___)
                _________

            

    

     

    6.3  Severability.
      If any
      provision of this Agreement, or portion thereof, shall be held invalid or
      unenforceable by a court of competent jurisdiction, such invalidity or
      unenforceability shall attach only to such provision or portion thereof, and
      shall not in any manner affect or render invalid or unenforceable any other
      provision of this Agreement or portion thereof, and this Agreement shall be
      carried out as if any such invalid or unenforceable provision or portion thereof
      were not contained herein. In addition, any such invalid or unenforceable
      provision or portion thereof shall be deemed, without further action on the
      part
      of the parties hereto, modified, amended or limited to the extent necessary
      to
      render the same valid and enforceable.

     

    6.4  Waiver.
      No
      waiver by a party hereto of a breach or default hereunder by the other party
      shall be considered valid, unless expressed in a writing signed by such first
      party, and no such waiver shall be deemed a waiver of any subsequent breach
      or
      default of the same or any other nature.

     

    6.5  Entire
      Agreement.
      This
      Agreement sets forth the entire agreement between the Parties with respect
      to
      the subject matter hereof, and supersedes any and all prior agreements between
      the Company and Employee, whether written or oral, relating to any or all
      matters covered by and contained or otherwise dealt with in this Agreement.
      This
      Agreement does not constitute a commitment of the Company with regard to
      Employee’s employment, express or implied, other than to the extent expressly
      provided for herein.

     

    6.6  Amendment.
      No
      modification, change or amendment of this Agreement or any of its provisions
      shall be valid, unless in writing and signed by the party against whom such
      claimed modification, change or amendment is sought to be enforced.

     

    6.7  Authority.
      The
      Parties each represent and warrant that it or he has the power, authority and
      right to enter into this Agreement and to carry out and perform the terms,
      covenants and conditions hereof.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    6.8  Attorneys’
      Fees.
      If
      either party hereto commences an arbitration or other action against the other
      party to enforce any of the terms hereof or because of the breach by such other
      party of any of the terms hereof, the prevailing party shall be entitled, in
      addition to any other relief granted, to all actual out-of-pocket costs and
      expenses incurred by such prevailing party in connection with such action,
      including, without limitation, all reasonable attorneys’ fees, and a right to
      such costs and expenses shall be deemed to have accrued upon the commencement
      of
      such action and shall be enforceable whether or not such action is prosecuted
      to
      judgment.

     

    6.9  Titles.
      The
      titles of the sections of this Agreement are inserted merely for convenience
      and
      ease of reference and shall not affect or modify the meaning of any of the
      terms, covenants or conditions of this Agreement.

     

    6.10  Applicable
      Law; Choice of Forum.
      This
      Agreement, and all of the rights and obligations of the parties in connection
      with the employment relationship established hereby, shall be governed by and
      construed in accordance with the substantive laws of the State of California
      without giving effect to principles relating to conflicts of law.

     

    6.11  Arbitration.

     

    6.11.1  Scope.
      To the
      fullest extent permitted by law, Employee and the Company agree to the binding
      arbitration of any and all controversies, claims or disputes between them
      arising out of or in any way related to this Agreement, the employment
      relationship between the Company and Employee and any disputes upon termination
      of employment, including but not limited to breach of contract, tort,
      discrimination, harassment, wrongful termination, demotion, discipline, failure
      to accommodate, family and medical leave, compensation or benefits claims,
      constitutional claims; and any claims for violation of any local, state or
      federal law, statute, regulation or ordinance or common law. For the purpose
      of
      this agreement to arbitrate, references to “Company” include all parent,
      subsidiary or related entities and their employees, supervisors, officers,
      directors, agents, pension or benefit plans, pension or benefit plan sponsors,
      fiduciaries, administrators, affiliates and all successors and assigns of any
      of
      them, and this agreement to arbitrate shall apply to them to the extent
      Employee’s claims arise out of or relate to their actions on behalf of the
      Company.

     

    6.11.2  Arbitration
      Procedure.
      To
      commence any such arbitration proceeding, the party commencing the arbitration
      must provide the other party with written notice of any and all claims forming
      the basis of such right in sufficient detail to inform the other party of the
      substance of such claims. In no event shall this notice for arbitration be
      made
      after the date when institution of legal or equitable proceedings based on
      such
      claims would be barred by the applicable statute of limitations. The arbitration
      will be conducted in Los Angeles, California, by a single neutral arbitrator
      and
      in accordance with the then-current rules for resolution of employment disputes
      of the American Arbitration Association (“AAA”).
      The
      Arbitrator is to be selected by the mutual agreement of the Parties. If the
      Parties cannot agree, the Superior Court will select the arbitrator. The Parties
      are entitled to representation by an attorney or other representative of their
      choosing. The arbitrator shall have the power to enter any award that could
      be
      entered by a judge of the trial court of the State of California, and only
      such
      power, and shall follow the law. The award shall be binding and the Parties
      agree to abide by and perform any award rendered by the arbitrator. The
      arbitrator shall issue the award in writing and therein state the essential
      findings and conclusions on which the award is based. Judgment on the award
      may
      be entered in any court having jurisdiction thereof. The Company shall bear
      the
      costs of the arbitration filing and hearing fees and the cost of the
      arbitrator.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    6.12  This
      Agreement shall not be terminated by any voluntary or involuntary dissolution
      of
      the Company resulting from either a merger or consolidation in which the Company
      is not the consolidated or surviving corporation, or a transfer of all or
      substantially all of the assets of the Company. In the event of any such merger
      or consolidation or transfer of assets, Employee’s rights, benefits and
      obligations hereunder shall be assigned to the surviving or resulting
      corporation or the transferee of the Company’s assets.

     

    

     

    [Signature
      page to follow]

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

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

     

    

    
      	
               

               

               

                
                /s/ Kelly
                Perdew                                
                 

              Kelly
                Perdew

            	
              Pro
                Elite, Inc., a New Jersey corporation

               

               

              By:
                /s/
                Douglas
                DeLuca                             

              Name:Douglas
                DeLuca                    
                 

              Title:
                Chief
                Executive
                Officer             
                

            
	 	
               

              ProElite.com,
                a California corporation

               

               

              By:
                /s/
                William
                Kelly                                
                 

              Name:/s/
                William
                Kelly                   
                 

              Title:President                                    
                

               

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A

    List
      of Companies

    

    

    American
      Family Protection

    Family
      Real Estate Activities (Perdew Properties, Patriot Self-Storage, SRS
      Ranch)

    President’s
      Council on Service and Civic Participation

    Charitable
      Organizations (USO, Big Brothers/Sisters, National Guard Youth Challenge
      Program)

    Radiance
      Rewards

    Jobzone
      Networks

    Clone
      Interactive

    LinkedIn

    Angel
      Venture Partners

    Frank’s
      Energy Drink

    Authentic
      Planet, Inc.

    

    
      
         

      

      
        14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]