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Exhibit 10.1

 

SERVICE AGREEMENT

 

THIS AGREEMENT (the “Agreement”) is made and entered into this 6th day of September, 2005, by and between ELITE FINANCIAL COMMUNICATIONS GROUP, LLC, located at 605 Crescent Executive Court, Suite 124, Lake Mary, Florida 32746, (hereinafter referred to as “ELITE”) and VITACUBE SYSTEMS HOLDINGS, INC., located at 480 South Holly Street Denver, Colorado 80246,  (hereinafter referred to as the “Company”).

 

WITNESSETH:

 

For and consideration of the mutual promises and covenants contained herein, the parties hereto agree as follows:

 

1)                        EMPLOYMENT

Company hereby hires and employs ELITE as an independent contractor, and ELITE does hereby accept its position as an independent contractor to the Company upon the terms and conditions hereinafter set forth.

 

2)                        TERM

The term of this Agreement shall be for twelve (12) months. However the Company shall retain the right to terminate this Agreement following 90 consecutive days of representation by ELITE.  Said desire to terminate must be submitted in writing to ELITE by the Company no less than 30 days prior to the desired termination date.

 

3)                        DUTIES AND OBLIGATIONS OF ELITE

a)               ELITE will review and analyze various aspects of the Company’s goals and make recommendations on feasibility and achievement of desired goals.

b)              Through its Market Relations Group, ELITE will provide exposure to its network of firms and brokers that may be interested in participating with the Company, schedule and conduct the necessary due diligence, and obtain the required approvals necessary for those firms to participate.  ELITE will also interview and make determinations on any brokerage or institutional firms referred by the Company with regard to their participation.

c)               At the Company’s request, ELITE will be available to field any calls from firms, individual investors/shareholders and brokers inquiring about the Company.  In addition, ELITE will assist the Company in preparing its quarterly communications relative to its financial results and coordinate corresponding news announcements, conference calls and simulcasts on the Internet in accordance with Regulation FD.

d)              ELITE will feature the Company on the Internet via ELITE’s home web site (www.efcg.net) within the Elite Financial Forum which will feature comprehensive information relative to the Company’s fundamental and technical strengths, as well as industry and corporate overviews; management biographies; stock trading history; market making activity; conference call/webcast archives; and other information meaningful to the investment community.  The Forum will be updated routinely and provide for site visitors to request ongoing information about the Company as it is released.

e)               ELITE shall write, produce and/or assist the Company in preparing and releasing all news announcements.  The Company shall be solely responsible for paying all fees associated with the actual release(s) through BusinessWire, PR Newswire, or any other comparable news dissemination source. ELITE will create, build and continually enhance a database of all brokers, investors, analysts and media contacts who have expressed an interest in receiving ongoing information on the Company and manage the ongoing distribution of news announcements and/or other Company approved communications.

 



 

f)                 ELITE shall serve as the Company’s publicist and will strive to obtain coverage in both national and industry publications, in financial newsletters, on financial radio and television programming and via traditional press mediums.  Specifically, ELITE will facilitate an ongoing outreach program to an intelligently targeted universe of media professionals.  Further, ELITE will track published articles and provide monthly clippings of those articles/mentions featuring the Company.

g)              At the Company’s request, strive to obtain the Company analyst coverage and/or investment banking sponsorship.

h)              ELITE shall arrange for a series of due diligence meetings with select broker/dealers, institutional investors and analysts at predetermined dates throughout the campaign term, while remaining compliant with the rules and regulations associated with Regulation FD.

i)                  ELITE shall develop customized, high-quality, high-impact and fully integrated financial communications programs and platforms, and leverage our strategic resources to enhance general product/service marketing programs initiated by the Company.

j)                  ALL OF THE FOREGOING ELITE-PREPARED DOCUMENTATION CONCERNING THE COMPANY, INCLUDING, BUT NOT LIMITED TO, INFORMATIONAL WRITE-UPS, NEWS ANNOUNCEMENTS, SHAREHOLDER LETTERS, ET AL, SHALL BE PREPARED BY ELITE USING MATERIALS SUPPLIED TO IT BY THE COMPANY AND SHALL BE APPROVED BY THE COMPANY PRIOR TO DISSEMINATION BY ELITE.

 

4)                        ELITE’S COMPENSATION

a)               $10,000 cash, payable per month with the first payment of $10,000 due immediately following execution of this Agreement and subsequent monthly payments due every 30 days thereafter for the term of the Agreement.  The Co


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