Note 3 – Sobe Life LLC

Involuntary Bankruptcy

On September 20, 2007 three creditors of Sobe Life LLC (“Sobe”) filed a petition for involuntary bankruptcy with the United States Bankruptcy Court for the Southern District of New York Case No. 07-12963.  Involuntary bankruptcy is a process where a court appointed trustee is empowered to liquidate the non-exempt property, if any, of the debtor and distribute the proceeds to the creditors of the debtor.  The Company did not oppose the petition.  As of the date of filing, Sobe had assets of $35,575, current liabilities of $505,890 and was jointly liable with Premiere on an additional $727,186 of current liabilities.  Following the filing of the petition for involuntary bankruptcy, the Company has written off and abandoned its investment in Sobe. 

Termination of Trump Licensing Agreement

Sobe was the publisher of the “Trump Magazine,” of which it ceased publication following the winter edition.  On August 31, 2007 Trump World Publications, LLC and Mr. Donald Trump (“Trump”) terminated their publishing and licensee agreements with Sobe.   On the date of termination, Sobe owed Trump $270,000 of unpaid license fees.