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<SEC-DOCUMENT>0001157523-10-001279.txt : 20100226
<SEC-HEADER>0001157523-10-001279.hdr.sgml : 20100226
<ACCEPTANCE-DATETIME>20100226161807
ACCESSION NUMBER:		0001157523-10-001279
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20100204
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20100226
DATE AS OF CHANGE:		20100226

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Stratus Media Group, Inc
		CENTRAL INDEX KEY:			0001053691
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISCELLANEOUS REPAIR SERVICES [7600]
		IRS NUMBER:				860776876
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24477
		FILM NUMBER:		10639563

	BUSINESS ADDRESS:	
		STREET 1:		3155 EAST PATRICK LANE,
		STREET 2:		SUITE 1
		CITY:			LAS VEGAS,
		STATE:			NV
		ZIP:			89120
		BUSINESS PHONE:		(702) 492-9413

	MAIL ADDRESS:	
		STREET 1:		3155 EAST PATRICK LANE,
		STREET 2:		SUITE 1
		CITY:			LAS VEGAS,
		STATE:			NV
		ZIP:			89120

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FERIS INTERNATIONAL, INC.
		DATE OF NAME CHANGE:	20080228

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TITAN MOTORCYCLE CO OF AMERICA INC
		DATE OF NAME CHANGE:	19980615
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a6194911.htm
<DESCRIPTION>STRATUS MEDIA GROUP, INC. 8-K
<TEXT>
<html>
  <head>
    <title></title>
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  <body style="font-family: Times New Roman; font-size: 10pt">
    <p style="text-align: center">
      <font style="font-size: 18pt; font-family: Times New Roman"><b>UNITED
      STATES</b></font><b><font style="font-size: 18pt; font-family: Times New Roman"><br style="font-family: Times New Roman; font-size: 18pt"></font><font style="font-size: 18pt; font-family: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman">WASHINGTON,
      D.C. 20549</font>
    </p>
    <p style="text-align: center">
      <br>

    </p>
    <p style="text-align: center">
      <font style="font-size: 18pt; font-family: Times New Roman"><b>FORM 8-K</b></font>
    </p>
    <p style="text-align: center">
      <br>

    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman">CURRENT
      REPORT</font><br><font style="font-size: 12pt; font-family: Times New Roman">PURSUANT
      TO SECTION 13 OR 15(d) OF THE</font><br><font style="font-size: 12pt; font-family: Times New Roman">SECURITIES
      EXCHANGE ACT OF 1934</font>
    </p>
    <p style="text-align: center">
      <br>
      <font style="font-size: 10pt; font-family: Times New Roman">Date of
      Report (Date of earliest event reported): &#160;&#160;February 4, 2010</font><font style="font-size: 10pt; font-family: Times New Roman"><br style="font-family: Times New Roman; font-size: 10pt"></font><br><br>
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="width: 100%; margin-bottom: 10.0px; font-size: 10pt; font-family: Times New Roman">
      <tr>
        <td style="width: 25%; text-align: left; padding-left: 0.0px" valign="top">
          &#160;
        </td>
        <td style="width: 50%; text-align: center; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <font style="font-size: 18pt; font-family: Times New Roman"><b>STRATUS
            MEDIA GROUP, INC.</b></font>
          </p>
        </td>
        <td style="width: 25%">

        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: left">
      <br>
      <br>

    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="width: 100%; margin-bottom: 10.0px; font-size: 10pt; font-family: Times New Roman">
      <tr>
        <td style="width: 36%; text-align: center; padding-left: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            NEVADA
          </p>
        </td>
        <td style="width: 2%; text-align: left; padding-left: 0.0px" valign="bottom">
          &#160;
        </td>
        <td style="width: 30%; white-space: nowrap; text-align: center; padding-right: 0.0px; padding-left: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            000-24477
          </p>
        </td>
        <td style="width: 2%; text-align: left; padding-left: 0.0px" valign="bottom">
          &#160;
        </td>
        <td style="width: 30%; white-space: nowrap; text-align: center; padding-right: 0.0px; padding-left: 0.0px" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            86-0776876
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 36%; text-align: center; padding-left: 0.0px" valign="top">
          (State or other jurisdiction<br>of incorporation)
        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 30%; text-align: center; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission File Number)
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 30%; text-align: center; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (IRS Employer Identification<br>No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>
      <br>
      3 East De La Guerra Street, 2<sup>nd</sup> Floor<br>Santa Barbara,
      California 93101<br>(Address of principal executive offices)
    </p>
    <p style="text-align: center">
      <br>
      Registrant&#8217;s telephone number, including area code:&#160;&#160;805-884-9977
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions (See General Instruction&#160;A.2 below):</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font><font style="font-size: 10pt; font-family: Times New Roman">
      Written communications pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font><font style="font-size: 10pt; font-family: Times New Roman">
      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
      CFR 240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font><font style="font-size: 10pt; font-family: Times New Roman">
      Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font><font style="font-size: 10pt; font-family: Times New Roman">
      Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))</font>
    </p>
    <div style="width: 100%; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center; font-size: 10pt; font-family: Times New Roman">
          1
        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: left">

    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="width: 100%; margin-bottom: 10.0px; font-size: 10pt; font-family: Times New Roman">
      <tr>
        <td style="width: 10%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Item 1.01
          </p>
        </td>
        <td style="width: 90%; text-align: left; padding-left: 0.0px" valign="top">
          Entry into a Material Definitive Agreement
        </td>
      </tr>
    </table>
    </div>
    <p style="text-indent: 60.0px">
      On February 4, 2010, Stratus Media Group, Inc. (the &#8220;Company&#8221;) entered
      into an Amendment To Strategic Investment Agreement (the &#8220;Amendment&#8221;),
      dated as of January 26, 2010, with ProElite, Inc. (&#8220;PEI&#8221;) pursuant to
      which the parties agreed to amend the terms of that certain Strategic
      Investment Agreement (the &#8220;Agreement&#8221;) entered into between PEI and the
      Company dated October 9, 2009.&#160;&#160;The Amendment (i) provides for certain
      interim funding by the Company to PEI prior to the closing, and contains
      representations regarding the Company&#8217;s ability to provide all funds
      necessary to perform its obligations under the Agreement and the
      Amendment, (ii)&#160;extends the outside date for the Closing to March 31,
      2010, (iii) conditionally provides for changes in the board and
      management of PEI, subject to the Company&#8217;s timely compliance with
      delivery of specified payments to PEI and third parties (the &#8220;Management
      Change&#8221;), (iv) credits against the Purchase Price certain expenses and
      amounts already loaned by the Company, (v) provides for the
      convertibility of amounts previously loaned into Preferred Stock of PEI
      on a pro-rata basis, (v)&#160;provides that all of the conditions to closing
      in Section 6.1 of the Agreement, have been satisfied to date and that,
      notwithstanding such conditions (other than the condition regarding
      legal compliance and certain ministerial conditions), the Company is
      unconditionally obligated to consummate the purchase and other
      transactions contemplated by the Agreement and the Amendment and pay the
      full Purchase Price (applying such credits as provided in the
      Amendment), (vi) provides for a guarantee of certain obligations of the
      Company, (vii) provides for an enforcement mechanism independent of the
      newly appointed board and management until the Closing and (viii)
      provides for application of certain post-closing covenants to the
      interim period.&#160;&#160;This summary does not purport to be a complete summary
      of the Amendment, and is subject to the actual terms of the Amendment
      set forth on Exhibit 10.01 to this Current Report on Form 8-K, which
      exhibit is incorporated herein by reference.
    </p>
    <p style="text-indent: 60.0px">
      On February 22, 2010 the Management Change was effected.&#160;&#160;The then
      current directors of PEI resigned; Paul Feller, Glenn Golenberg and
      Douglas DeLuca, the designees of the Company were appointed as the
      directors of PEI; Charles Champion resigned as Chief Executive Officer
      of PEI; and William Kelly, the designee of the Company, was appointed
      the President and Chief Operating Officer of PEI.
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="width: 100%; margin-bottom: 10.0px; font-size: 10pt; font-family: Times New Roman">
      <tr>
        <td style="width: 10%; text-align: left; padding-left: 0.0px" valign="top">
          Item 3.02
        </td>
        <td style="width: 90%; text-align: left; padding-left: 0.0px" valign="top">
          Unregistered Sales of Equity Securities
        </td>
      </tr>
    </table>
    </div>
    <p style="text-indent: 60.0px">
      Effective February 19, 2010, the Company sold to one accredited investor
      500,000 Units, each Unit consisting of (a) one share of its Common Stock
      (a &#8220;Share&#8221;), and (b) &#189; of a five year warrant (a &#8220;Warrant&#8221;) to purchase
      a Share at an exercise price of $1.65 per Share.&#160;&#160;The purchase price of
      a Unit was $1.00 resulting in gross proceeds of $500,000.&#160;&#160;The Company
      paid $35,000 in commissions and agreed to issue Warrants to the
      placement agent to purchase 50,000 Shares at an exercise price of $1.65
      per Share with respect to the private placement.
    </p>
    <p style="text-indent: 60.0px; font-size: 10pt">
      The Company has agreed to include the Shares and those issuable upon
      exercise of the Warrants requested by the holders to be so included in
      any registration statement with the SEC permitting the resale of such
      securities.
    </p>
    <p style="text-indent: 60.0px; font-size: 10pt">

    </p>
    <div style="width: 100%; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center; font-size: 10pt; font-family: Times New Roman">
          2
        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-indent: 60.0px; font-size: 10pt">

    </p>
    <p style="text-indent: 60.0px">
      The Units sold were not registered under the Securities Act of 1933, as
      amended (the &#8220;Act&#8221;) in reliance upon the exemption from registration
      contained in Section 4(2) of the Act and Regulation D promulgated
      thereunder.&#160;&#160;The Shares, Warrants and Shares issuable upon the exercise
      of the Warrants may not be reoffered or sold in the United States by the
      holders in the absence of an effective registration statement or
      exemption from the registration requirements of the Act.
    </p>
    <p style="text-indent: 60.0px">
      The Company intends to use the net proceeds ($465,000) to fund its
      immediate obligations and provide interim funding to PEI pursuant to the
      Amendment, (see Item 1.01) and for working capital for the Company.
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="width: 100%; margin-bottom: 10.0px; font-size: 10pt; font-family: Times New Roman">
      <tr>
        <td style="width: 10%; text-align: left; padding-left: 0.0px" valign="top">
          ITEM 8.01
        </td>
        <td style="width: 90%; text-align: left; padding-left: 0.0px" valign="top">
          Other Events
        </td>
      </tr>
    </table>
    </div>
    <p>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;On February 23, 2010, the Company issued a press release
      relating to its assumption of control of the board of directors and
      management of PEI
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="width: 100%; margin-bottom: 10.0px; font-size: 10pt; font-family: Times New Roman">
      <tr>
        <td style="width: 10%; text-align: left; padding-left: 0.0px" valign="top">
          ITEM 9.01
        </td>
        <td style="width: 90%; text-align: left; padding-left: 0.0px" valign="top">
          Financial Statements and Exhibits.
        </td>
      </tr>
    </table>
    </div>
    <p style="text-indent: 60.0px; white-space: nowrap">
      (d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exhibits.
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="width: 100%; margin-bottom: 10.0px; font-size: 10pt; font-family: Times New Roman">
      <tr>
        <td style="width: 20%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Exhibit Number
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="width: 78%; text-align: left; padding-left: 0.0px" valign="top">
          Description
        </td>
      </tr>
      <tr>
        <td style="width: 20%">

        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 78%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 20%; white-space: nowrap; text-align: left; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          10.01
        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 78%; text-align: left; padding-left: 0.0px" valign="top">
          Amendment to Strategic Investment Agreement, dated as of January 26,
          2010. The schedules and exhibits to the Agreement in this Exhibit
          10.01 have been omitted pursuant to Item 601(b)(2) of Regulation
          S-K. The descriptions of the omitted schedules and exhibits are
          contained within the Amendment. Company hereby agrees to furnish a
          copy of any omitted schedule or exhibit to the Commission upon
          request.
        </td>
      </tr>
      <tr>
        <td style="width: 20%">

        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 78%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 20%; white-space: nowrap; text-align: left; padding-right: 0.0px; padding-left: 0.0px" valign="top">
          99.1
        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 78%; text-align: left; padding-left: 0.0px" valign="top">
          Press Release
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="width: 100%; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center; font-size: 10pt; font-family: Times New Roman">
          3
        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman">SIGNATURE</font>
    </p>
    <p style="text-indent: 30.0px">
      <font style="font-size: 10pt; font-family: Times New Roman">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <p style="text-indent: 30.0px">
      <br>

    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="width: 100%; margin-bottom: 10.0px; font-size: 10pt; font-family: Times New Roman">
      <tr>
        <td style="width: 7%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Date:
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            February 26, 2010
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="3">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u>STRATUS MEDIA GROUP, INC.</u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 7%">

        </td>
        <td colspan="2">

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 21%">

        </td>
      </tr>
      <tr>
        <td style="width: 7%">

        </td>
        <td colspan="2">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 21%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 7%; text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 43%; text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 1%">

        </td>
        <td style="width: 3%; text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          By:
        </td>
        <td style="width: 25%; text-align: left; padding-left: 0.0px; border-bottom: solid black 1.0pt" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/&#160;&#160;Paul Feller
          </p>
        </td>
        <td style="width: 21%">

        </td>
      </tr>
      <tr>
        <td style="width: 7%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 3%">

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Paul Feller, Chief Executive Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>
      <font style="font-size: 10pt; font-family: Times New Roman">4</font>
    </p>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.01
<SEQUENCE>2
<FILENAME>a6194911_ex1001.htm
<DESCRIPTION>EXHIBIT 10.01
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2010 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
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    <p style="text-align: right">
      <b>Exhibit 10.01</b>
    </p>
    <p style="text-align: right">
      <br>

    </p>
    <p style="text-align: center">
      <b>AMENDMENT TO STRATEGIC INVESTMENT AGREEMENT</b>
    </p>
    <p style="text-indent: 60.0px">
      THIS AMENDMENT TO STRATEGIC INVESTMENT AGREEMENT (the &#8220;Amendment&#8221;) dated
      as of January 11, 2010 (the &#8220;Amendment Effective Date&#8221;) between Stratus
      Media Group, Inc., a Nevada corporation (&#8220;the Company&#8221;), and ProElite,
      Inc., a New Jersey corporation (the &#8220;Company&#8221;):
    </p>
    <p style="text-indent: 60.0px">
      A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company and the Company entered into that certain
      Strategic Investment Agreement dated as of October 9, 2009 (the
      &#8220;Agreement&#8221;) pursuant to which PEI agreed to sell and the Company agreed
      to purchase shares of PEI&#8217;s preferred stock.&#160;&#160;Defined terms not defined
      herein shall have the meanings ascribed to them in the Agreement.
    </p>
    <p style="text-indent: 60.0px">
      B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Parties wish to amend the Agreement on the terms set forth
      below.
    </p>
    <p style="text-align: center">
      ARTICLE I.&#160;&#160;<br><br>AMENDMENT OF AGREEMENT
    </p>
    <p style="text-indent: 60.0px">
      &#160;&#160;1.1.&#160;&#160;Article 5 is hereby amended by adding the following sections.
    </p>
    <p style="text-indent: 60.0px; margin-left: 30.0px">
      &#8220;Availability of Funds.&#160;&#160;the Company currently has, readily available,
      and under its control on an unrestricted basis (except only those
      restrictions set forth on Schedule 4.1(i) hereto, which for clarity, are
      not conditions to Closing or to the Company&#8217;s obligations, but merely
      modifications to this representation) all funds necessary to perform its
      obligations under the Agreement and the Amendment to provide interim
      funding and make the payments contemplated by Section 5.9 and 5.10(b) of
      the Amendment, and not later than the Outside Date will have, readily
      available, and under its control on an unrestricted basis (except only
      those restrictions set forth on Schedule 4.1(i) hereto, which for
      clarity, are not conditions to Closing or the Company&#8217;s obligations, but
      merely modifications to this representation) all funds necessary to
      consummate the purchase of all of the Preferred Shares contemplated to
      be purchased hereby.&#8221;
    </p>
    <p style="text-indent: 60.0px">
      &#160;&#160;1.2.&#160;&#160;Article 5 is hereby amended by adding the following sections.
    </p>
    <p style="text-indent: 60.0px; margin-left: 30.0px">
      &#8220;5.9&#160;&#160;&#160;&#160;&#160;&#160;<u>Interim Funding</u>.&#160;&#160;During
      the period between the Amendment Effective Date and the Closing, the
      Company shall continue to provide funding to PEI in accordance with the
      budget attached as Schedule A, it being acknowledged that, through the
      Amendment Effective Date, the Company has provided funding to PEI in the
      aggregate amount of $228,894.23.&#160;&#160;All amounts so funded (the &#8220;Funded
      Payments&#8221;) shall be evidenced by promissory notes of PEI (each a &#8220;Note&#8221;)
      in the same form and having the same terms as the notes already issued
      to the Company in respect of advances of the Purchase Price.&#160;&#160;Any Note
      shall be convertible, at the option of SMG1, into shares of Preferred
      Stock on a pro rata basis based on the conversion ratio set forth in the
      Series A Certificate of Designation.&#160;&#160;To the extent applicable, the
      Funded Payments shall reduce the Closing Payments.
    </p>
    <p style="text-indent: 60.0px; margin-left: 30.0px">

    </p>
    <div style="width: 100%; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-indent: 60.0px; margin-left: 30.0px">

    </p>
    <p style="text-indent: 60.0px; margin-left: 30.0px">
      5.10&#160;&#160;&#160;&#160;&#160;&#160;<u>Management Change</u>.&#160;&#160;
    </p>
    <p style="text-indent: 180.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(a)&#160;&#160;The Company is delivering the following resignations and
      written consents, which shall be (and may state that they are) subject
      to the Company&#8217;s timely compliance with Section 5.10(b): (i) Charles
      Champion&#8217;s resignation as Chief Executive Officer of PEI and the
      appointment of William Kelly as President and Chief Operating Officer of
      PEI; and (ii) the election by the current members of the board of
      directors by written consent of Paul Feller, Glenn Golenberg and Douglas
      De Luca to PEI&#8217;s board of directors and the resignation of such current
      members.
    </p>
    <p style="text-indent: 180.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(b)&#160;&#160;The Company shall promptly (but not later than the close of
      business on Friday, February 11, 2010):
    </p>
    <p style="text-indent: 240.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(i)&#160;&#160;In satisfaction of PEI&#8217;s obligations to Charles
      Champion, pay to Mr. Champion $150,000 (the &#8220;Champion Payment&#8221;) as
      follows: $75,000 in cash and issuing to him restricted shares of the
      Company&#8217;s Common Stock valued at $2.30 per share.
    </p>
    <p style="text-indent: 240.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(ii)&#160;&#160;Pay all amounts due as of the Amendment Effective Date
      pursuant to Section 5.9, and make the those portions of the &#8220;Closing
      Payments&#8221; to the persons specified in Section 5.6 of the Disclosure
      Schedule as specified on Schedule A.
    </p>
    <p style="text-indent: 180.0px">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;(c)&#160;&#160;Notwithstanding Mr. Champion&#8217;s resignation, upon new board
      members being appointed under Section 5.10(a), prior to the Closing he
      (or his designee or designees) shall be vested with the sole authority
      to take, at Company expense, with the same authority and protection as
      if specifically instructed by the board of directors, all appropriate
      action on behalf of PEI to enforce PEI&#8217;s rights under the Agreement and
      Amendment, grant waivers thereunder or hereunder, execute any amendment
      to the Agreement or the Amendment on behalf of PEI and authorize any
      deliveries or other actions necessary for the Closing.&#8221;
    </p>
    <p style="text-indent: 120.0px">
      5.11.&#160;&#160;&#160;&#160;&#160;<u>Credit to Purchase Price</u>.&#160;&#160;The
      Purchase Price payable at Closing shall be reduced by the aggregate
      amount of the Funded Payments, the Champion Payment, all amounts paid to
      Gumbiner Savett, Inc. with respect to the audit and review of PEI&#8217;s
      financial statements, and all amounts (not to exceed $231,525) paid to
      William Kelly or assumed by the Company in connection with the amount
      owed by PEI to Mr. Kelly.
    </p>
    <p style="text-indent: 60.0px">
      &#160;&#160;1.3.&#160;&#160;The Company agrees acknowledges that all of the conditions to
      closing in Section 6.1, have been satisfied to date and agrees that,
      notwithstanding such conditions (other than the conditions in Section
      6.1(f) and 6.1(d)(i),(ii), (iv), (v) and (vi), which shall continue to
      be conditions to Closing in accordance with their terms; provided, that
      6.1(d)(iv), (v) and (vi) need only be satisfied as of the Amendment
      Effective Date in order for such conditions to be deemed satisfied for
      all purposes), the Company is unconditionally obligated to consummate
      the purchase and other transactions contemplated by the Agreement and
      this Amendment and pay the full Purchase Price (as may be adjusted by
      Sections 5.9 and 5.11) as provided in amended Section&#160;7.1 of the
      Agreement (see section 1.4 of this Amendment below).&#160;&#160;Additionally, the
      Company shall pay any additional amount required to purchase an extended
      discovery policy upon the Closing.
    </p>
    <p style="text-indent: 60.0px">

    </p>
    <div style="width: 100%; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-indent: 60.0px">
      &#160;&#160;1.4.&#160;&#160;Section 7.1 of the Agreement is hereby amended in its entirety
      by inserting the following in lieu thereof.
    </p>
    <p style="text-indent: 60.0px; margin-left: 30.0px">
      &#8220;The completion of any transactions of purchase and sale contemplated by
      this Agreement (the &#8220;Closing&#8221;) shall take place at the offices of
      TroyGould PC, 1801 Century Park East, Suite 1600, Los Angeles,
      California 90067as soon as possible but in no event shall the Closing
      occur later than March 31, 2010 (the &#8220;Outside Date&#8221;) except that the
      Outside Date may be extended with approval of the Parties.&#160;&#160;In the event
      that the Closing has not occurred by the Outside Date, or in the event
      of any other material breach hereof by the Company, then in addition to
      any other remedies available to PEI, on five business days notice, the
      Company shall cause the Company Designees to appoint the designees of
      PEI to PEI&#8217;s board of directors (the &#8220;Company Designees&#8221;) and the
      Company Designees shall resign.&#160;&#160;The Company Designees shall be the
      individual(s) designated by Charles Champion.&#8221;
    </p>
    <p style="text-indent: 60.0px">
      &#160;&#160;1.5.&#160;&#160;Section 9.1(b) of the Agreement is hereby amended by inserting
      the following in lieu thereof:
    </p>
    <p style="text-indent: 60.0px; margin-left: 30.0px">
      &#8220;(b) The Company, on the one hand, or the Company, on the other hand, if
      the Closing has not occurred by Outside Date because the non-terminating
      party has materially breached this Agreement and not cured such breach
      in a reasonable time; provided, the party purporting to terminate is not
      itself in material breach.&#8221;
    </p>
    <p style="text-indent: 60.0px">
      1.7.&#160;&#160;&#160;&#160;&#160;&#160;Paul Feller shall deliver to PEI, at the Amendment Effective
      Date, a guarantee of certain obligations in form and substance
      satisfactory to PEI.
    </p>
    <p style="text-indent: 60.0px">
      1.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;In addition to its post-Closing obligations under Section 8.3,
      the Company shall also comply with such section prior to the Closing
      after the board and management changes contemplated by Section 5.10 have
      become effective.&#160;&#160;In addition, those persons who are reasonably
      intended third party beneficiaries of the post-Closing obligations in
      Section 8.3 shall be deemed to have such status, notwithstanding
      anything contrary in the Agreement.
    </p>
    <p style="text-indent: 60.0px">
      1.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company may file this Amendment on Edgar.
    </p>
    <p style="text-align: center">
      ARTICLE II.&#160;&#160;<br><br>EFFECT OF AMENDMENT
    </p>
    <p style="text-indent: 60.0px">
      Except as expressly provided herein, all of the terms of the Agreement
      shall remain in full force and effect.
    </p>
    <p style="text-indent: 60.0px">

    </p>
    <div style="width: 100%; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
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        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-indent: 30.0px">

    </p>
    <p style="text-indent: 30.0px">
      IN WITNESS WHEREOF the Parties have executed this Amendment effective as
      of the Amendment Effective Date.
    </p>
    <p>

    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="width: 100%; margin-bottom: 10.0px; font-size: 9pt; font-family: Times New Roman">
      <tr>
        <td style="width: 50%">
          &#160;
        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>PROELITE, INC.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 47%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 47%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%; text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            By:
          </p>
        </td>
        <td style="width: 47%; text-align: left; padding-left: 0.0px; border-bottom: solid black 1.0pt" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Charles Champion
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 47%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Name: Charles Champion
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 47%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Title: Chief Executive Officer
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 47%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 47%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 47%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="text-align: left; padding-left: 0.0px; border-bottom: solid black 1.0pt" valign="top" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>STRATUS MEDIA GROUP, INC.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 47%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 47%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%; text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            By:
          </p>
        </td>
        <td style="width: 47%; text-align: left; padding-left: 0.0px; border-bottom: solid black 1.0pt" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Paul Feller
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 47%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Name: Paul Feller
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 47%; text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Title: President
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: right">

        </div>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>a6194911_ex991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2010 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-family: Times New Roman; font-size: 8pt">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>ProElite
      Relaunch under Management of Stratus Media Group</b></font>
    </p>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>International
      MMA Events Planned for 2010</b></font>
    </p>
    <p>
      SANTA BARBARA, Calif.--(BUSINESS WIRE)--February 23, 2010--Stratus Media
      Group, Inc. (OTCBB:SMDI), a live entertainment company, announced today
      that Stratus has assumed control over the board of directors and the
      management of ProElite Inc. (Pink Sheets:PELE), an entertainment and
      media company involved in the promotion of mixed martial arts (MMA).
    </p>
    <p>
      &#8220;This acquisition allows Stratus and ProElite to combine forces at the
      management and board levels of both organizations,&#8221; stated Paul Feller,
      President and CEO of Stratus. &#8220;ProElite has a globally recognized brand.
      We believe that by combining select key experienced management
      executives, who made ProElite the immediate success it was, with new top
      executives with demonstrated successes in conducting and televising MMA
      events internationally and sufficient capital, that we will achieve the
      brand&#8217;s strategy for global growth and success. With this combination,
      we can start focusing on strengthening and repositioning ProElite events
      and the brand, planning a series of MMA events that we believe will
      bring excitement to the MMA market, fans and our shareholders and
      establish ProElite as a leading international MMA company.&#8221;
    </p>
    <p>
      Founded in 2006, ProElite still holds the record for highest ratings for
      a major network telecast of a MMA event. ProElite also owns a web portal
      with social networking for MMA fighters and fans and live streams of MMA
      bouts not broadcast on television. A focal point of ProElite's live
      event promotions is Elite XC. Running its first show in 2007, it quickly
      became one of the most visible brands in mixed martial arts in the
      United States. Prior to the sale of specific assets which produce
      ongoing financial considerations owed from Strikeforce and King of the
      Cage, ProElite recorded $13.5 million in MMA event and television
      revenues for the 18 months ended June 2008. ProElite has engaged in an
      extensive restructuring that included the sales of certain assets for
      cash and a share of future revenues, significant expense reductions, the
      elimination of $12 million of direct and contingent liabilities and the
      shedding of unprofitable subsidiaries. The company maintains its
      ownership stake in South Korean-based Spirit MC, and British promotion
      Cage Rage.
    </p>
    <p>
      <b>About ProElite, Inc.</b> (<u>www.proelite.com</u>)
    </p>
    <p>
      ProElite, Inc. historically has delivered exciting entertainment
      experiences in the world of mixed martial arts (MMA) with live
      arena-based entertainment events, cable television programming on
      Showtime Networks and community-driven interactive broadband
      entertainment via the Internet. ProElite plans to deliver live MMA fight
      events that showcase the world's top fighters internationally.
      ProElite's interactive business, ProElite.com, plans to capitalize on
      the growing popularity of the sport of mixed martial arts.
    </p>
    <p>
      <b>About Stratus Media Group, Inc.</b>
    </p>
    <p>
      Incorporated in November of 1998, Santa Barbara-based Stratus Media
      Group is an owner, operator and marketer of live entertainment and
      sporting events. The company is primarily focused on internal growth and
      acquisitions within the live entertainment-related market, including
      action sports, automotive shows, college sports, food events, motor
      sports, music concerts and festivals, running events, diversified media
      marketing, trade shows and expositions, and talent management. In
      addition, the company intends to expand its consumer rewards marketing
      and redemption activities through its Stratus Rewards Visa White Card --
      providing exclusive redemption benefits to its cardholders in the form
      of VIP event access, luxury trips, private jet travel, luxury
      automobiles, high-end merchandise and other rewards for specified levels
      of use. For more information on Stratus Media Group, Inc., go to <u>www.stratusmediagroup.com</u>.
    </p>
    <div style="width: 100%; margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
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        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <i>Forward Looking Statements</i>
    </p>
    <p>
      Statements in this press release relating to plans, strategies, economic
      performance and trends, projections of results of specific activities or
      investments, and other statements that are not descriptions of
      historical facts may be forward-looking statements within the meaning of
      the Private Securities Litigation Reform Act of 1995, Section 27A of the
      Securities Act of 1933 and Section 21E of the Securities Exchange Act of
      1934. Forward-looking information is inherently subject to risks and
      uncertainties, and actual results could differ materially from those
      currently anticipated due to a number of factors which include but are
      not limited to risk factors inherent in doing business. Although the
      company's management believes that the expectations reflected in the
      forward-looking statements are reasonable, it cannot guarantee future
      results, levels of activity, performance or achievements. The company
      has no obligation to update these forward-looking statements.
    </p>
    <p>
      CONTACT:<br>Stratus Media Group, Inc.<br>Christine Kolenik, 800-594-7734<br>Public
      Relations and Media Marketing<br><u>Christinek@stratusmediagroup.com</u><br>Facebook:
      <u>http://www.facebook.com/pages/Stratus-Media-Group-Inc/139769168668?ref=ts</u><br>Twitter:
      <u>http://twitter.com/stratusmedia</u>
    </p>
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