Viratech Corp. (VIRA)

[Cindy Ortiz]

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Hergott Productions, Inc./Muffin Club Entertainment Inc. Files Motion For Preliminary Injunction Against Multiple Parties Involved With "Never Submit" Movie

CORONA DEL MAR, Calif., May 18, 2007 – Hergott Productions, Inc./Muffin Club Entertainment Inc. President James Hergott announced today a preliminary injunction has been filed in federal court against Imperia Entertainment, Inc. (Pink Sheets: IPEI), Muller Media, Inc.
(Pink Sheets: MUMI), Ken Eade and Never Submit LLC in regards to the mixed martial arts movie "Never Submit" (US Copyright PAU3106473).

The injunction alleges that in addition to copyright infringement Imperia Entertainment, Inc. and Chairman Kenneth Eade continue to mislead the public by putting out company press releases with Mr.
Hergott's name on them, to list Mr. Hergott as president on the official company website and to list Mr. Hergott as president and an officer of both Imperia Entertainment, Inc and Imperia Distribution,
Inc on the company records in the state of Nevada. All of this
despite Mr. Hergott's official resignation from all company positions on March 13, 2007 after Imperia was 24 weeks delinquent in
compensation to Mr. Hergott (Which remains outstanding). Mr. Hergott
began work as an independent contractor in the position as president of Imperia Entertainment, Inc. (formerly Soleil Film, Inc.) on July 1, 2005. In an email sent March 14, 2007 Mr. Eade admits to Mr. Hergott that he owes him the back pay stating, "We will, of course, make prompt payment of your back salary." The funds however never materialized.

A Muller Media, Inc. PR put out by Mr. Eade on May 8, 2007 and May 9,
2007 lists Mr. Hergott as director of "Never Submit" and an April 27,
2007 Muller Media, Inc. PR announcing a reverse split lists Mr.
Hergott as the contact person for the company in multiple places throughout the PR. Mr. Hergott has never been an executive with Muller Media, Inc. and has long resigned from his positions at Imperia. The above PRs mislead the public about Mr. Hergott's involvement with both companies.

Additionally paragraphs 19 through 23 of Mr. Hergott's court declaration allege the following:

19. I am especially concerned that EADE will continue this pattern of deception. Among other concerns, he continues to:
a. Wrongfully use my script and illegally use my name to produce a movie;
b. Place me in a false light, affecting my professional relationships in the mixed martial arts and movie industries;
c. Subject me to liability for false statements and criminal activities by EADE and his businesses.
20. I have these concerns because after EADE failed to pay the $24,000 and terminated the director's contract, I learned more disturbing facts about EADE and his business practices.
21. I learned that EADE has been using "Never Submit" to prop up his corporations by making false "insider" statements about the movie project, including scores of postings on Internet bulletin boards. For example, he has used the false identity "investyrstallone" on InvestorsHub.com, to leak information to the public and shareholders about the movie. (See message board posting and press release attached as Exhibits Q and R.)
22. I learned that in the months preceding my termination, IMPERIA issued no fewer than 36 press releases about "Never Submit"
and that during the same time period EADE used the false identity "investyrstallone" to promote IMPERIA stock in at least 100 message postings on Investors.Hub.com. (See press release and message listings attached as Exhibits S and T.)
23. I am informed and believe that EADE has stolen my script and is desperately promoting his stock because he owes investors, employees and others an estimated $100,000 and he does not have the money to pay them. I am informed and believe that EADE is running his corporations as alter-egos for his illegal activities. And I am concerned because I learned the State Bar of California has suspended him from law practice 13 times. (See State Bar information attached as Exhibit U.)


Mr. Hergott's full court declaration has been attached to this PR.

If you wish to interview Mr. Hergott about the situation or wish to contact Hergott Productions please email Stephanie Johnson at [e-mail].


ABOUT HERGOTT PRODUCTIONS

Hergott Productions, Inc. projects include controlling interest in "All That I Need" (http://imdb.com/title/tt0439434/), released in theaters December 2005, and now being marketed for DVD distribution, "Brothers," by James Hergott and Tarquin Gotch ("Home Alone"), and a number of film and TV projects currently being developed.


ABOUT JAMES HERGOTT

James Hergott was born in Cornwall, Ontario in 1976. Always an imaginative spirit, Hergott's film career began in high school at age thirteen when he got his first home video camera. His cast and crew were comprised of other kids in his neighborhood. Though Hergott struggled with a learning disability in his early years, he was found to be of superior intellectual caliber with an escalated sense of ingenuity and creativity.??While in college at York University, Hergott started his own business, a 1-900 job line servicing all of Canada. His new venture skyrocketed, and he even turned his dorm room into his corporate headquarters, but he never lost his true passion for filmmaking. In 1999, his biggest break yet came when he met Hollywood producer Tarquin Gotch at the Toronto Film Festival. The two formed an instant friendship and working relationship. Gotch was so impressed with Hergott's tenacity and love of filmmaking that he took him under his tutelage. Together they developed the Showtime biopic "Call Me Donald" on real estate mogul Donald Trump. The collaboration garnered national media attention for Hergott in the industry cornerstone Variety which reported "Young Buck, Plays Trump Card" in their April 1999 issue. The Don himself also praised Hergott's work and in a personal letter to the young filmmaker, Mr. Trump wrote that he was "extremely talented" and wished him the best in his "burgeoning career."Hergott also went on to co-write the feature film "Brothers"
with Gotch, which is scheduled to begin production in Canada in early 2008. The partnership led to the co-founding of Steinberg Gotch Entertainment with Hergott, Gotch and famous sports agent Leigh Steinberg.??In 2004, Hergott went solo with the production and direction of his first feature film "All That I Need." The film debuted at the Cannes International Film Festival Market in 2005 as part of a roster of films presented by a Beverly Hills production company. Following the success of the film at Cannes, executives decided to offer Hergott the presidency of the company, a challenge he eagerly accepted. In this position, he was able to secure a limited theatrical release of "All That I Need" with the Regal/UA Theatre chain that exhibited the film on screens across the country. Hergott has also been featured in over 200 media outlets throughout the U.S.
and Canada as well as a number of national publications including Indie Slate and Create Magazines.

CONTACT: [e-mail]


William K. Vogeler CN 147445
Gruenbeck & Vogeler
Six Venture, Suite 270
Irvine, Calif. 92618
Phone: [phone]
Fax: [phone]
Attorneys for Plaintiffs
HERGOTT PRODUCTIONS, INC.
MUFFIN CLUB ENTERTAINMENT, INC.
And JAMES HERGOTT
UNITED STATES DISTRICT COURT
FOR THE CENTRAL DISTRICT OF CALIFORNIA
HERGOTT PRODUCTIONS, INC., a California corporation; MUFFIN CLUB ENTERTAINMENT, INC., a California corporation; and JAMES HERGOTT, an individual,
Plaintiffs,
vs.
IMPERIA ENTERTAINMENT, INC.; a Nevada corporation; IMPERIA INTERNATIONAL DISTRIBUTION, INC., a Nevada corporation; MULLER MEDIA, INC., a Nevada corporation; NEVER SUBMIT, LLC., a Nevada limited liability company; KENNETH EADE, an individual; and DOES 1 through 10,
Defendants. )
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))))))))))))) Case No.: SACV07-553 DOC(MLGx)




DECLARATION OF JAMES HERGOTT IN SUPPORT OF MOTION FOR PRELIMINARY INJUNCTION
DATE:
TIME:
PLACE:

I, JAMES HERGOTT, declare:
1. I am a named plaintiff in the above-captioned matter. I know the facts set forth in this declaration are true of my own knowledge, except those facts stated upon information and belief, and I believe those facts to be true. If called upon, I would testify competently to these facts.
2. As president of HERGOTT PRODUCTIONS, INC. and MUFFIN CLUB ENTERTAINMENT, INC., (hereinafter "MUFFIN CLUB") I am a writer, director and producer of motion pictures. I wrote, directed and produced my first movie called "All That I Need," which was released theatrically in December 2005.
3. In the meantime, I wrote and developed a movie script called, "Never Submit." It is an inspirational story about a young, mixed martial arts fighter who learns that revenge in the ring is not a worthy prize. (See script and copyright registration attached together as Exhibit A.)
4. On or about July 1, 2005, my company the MUFFIN CLUB entered a contract with IMPERIA ENTERTAINMENT, INC. (hereinafter "IMPERIA") whereby I agreed to serve as president of IMPERIA for a fee of $1,000 a week. My duties included promoting the company's movie projects pursuant to an Executive Agreement drafted by the company's sole director and attorney KENNETH EADE (hereinafter "EADE.") (See Executive Agreement attached as Exhibit B.)
5. I am informed and believe that EADE has the controlling interest in IMPERIA, IMPERIA INTERNATIONAL DISTRIBUTION, INC., MULLER MEDIA, INC. and NEVER SUBMIT, LLC. I am informed and believe IMPERIA, IMPERIA INTERNATIONAL and MULLER MEDIA are Nevada corporations and NEVER SUBMIT is a Nevada limited liability company. I am informed and believe that none of these businesses is qualified to do business in California, and that EADE runs all of these businesses from his law office in Beverly Hills, California.
6. While working with EADE and IMPERIA, I also promoted my own projects, including "Never Submit." After about a year in which I secured support from various organizations and individuals in the mixed martial arts fighting industry for "Never Submit," EADE expressed an interest in my project.
7. Based on an oral agreement between us sometime in April 2006, I began working first with IMPERIA and IMPERIA INTERNATIONAL and later with MULLER MEDIA and NEVER SUBMIT, LLC on the project with the understanding that IMPERIA would pay the MUFFIN CLUB $35,000 for me to direct the movie. In addition, I agreed to give IMPERIA some rights (with rights of reversion and sequel rights to me) to the script in exchange for 15 percent of the gross proceeds from the movie. EADE later prepared a contract to memoralize our agreement dated Jan. 3,
2007 (See Writer's/Director's Agreement attached as Exhibit C.)
8. In the meantime, I continued to work on the script with some minimal input from EADE. In emails dated Feb. 15, 2007 and Feb. 16, 2007, EADE acknowledged that "Never Submit" was my script and that my "story was gold." (See email attached as Exhibits D and E.)
9. However, IMPERIA had not paid $24,000 for executive service fees and additional expenses to the MUFFIN CLUB over a period of months. So I resigned as president of IMPERIA on March 13, 2007. (See resignation letter attached as Exhibit F.)
10. I also informed EADE that I still intended to direct "Never Submit," but that I wanted IMPERIA to pay the past-due service fees and expenses. I also said that I wanted the director's fee paid before I began production of the film.
11. On or about March 14, 2007, EADE said in an email that he would pay the past-due fees but asserted that IMPERIA owned my script.
EADE also said I was expected to direct the movie. (See email attached as Exhibit G.)
12. On or about 5:05 p.m. on March 15, 2007, EADE asked me in an email whether I was going to direct the movie. I responded on or about 5:20 p.m. the same date that I would perform all my duties under the contract. (See email attached as Exhibits H and I.)
13. While I stood ready and able to direct the movie, I received a letter dated March 21, 2007, from an attorney for IMPERIA. The attorney said that I had been removed as director because I was a Canadian not lawfully entitled to work in the United States. (See letter attached as Exhibit J.)
14. Contrary to IMPERIA's statement, I am legally in the United States. And throughout the time I was serving as president of IMPERIA, EADE was aware that I was a Canadian citizen. In fact, EADE as counsel for his corporation advised me that I could work as an independent contractor through my company in July 2005. (See email attached as Exhibit K.)
15. Indeed, IMPERIA had been paying my company the MUFFIN CLUB for my services as president (except for the past due $24,000) until I resigned. IMPERIA also had contracted with the MUFFIN CLUB for my services as director, but terminated the contract before production began.
16. Even so, IMPERIA, IMPERIA INTERNATIONAL and MULLER MEDIA has continued to state falsely in press releases, company records and in communications to their shareholders that I am president of IMPERIA and IMPERIA INTERNATIONAL and director of "Never Submit." (See press releases, corporate details and website print-out attached as Exhibits L, M, N, O and P.)
17. Based on this information and my own knowledge, I believe that EADE, IMPERIA, IMPERIA INTERNATIONAL, MULLER and NEVER SUBMIT, LLC are using my script and my name to raise money to produce the movie "Never Submit." I am informed and believe they intend to begin filming as soon as May 21, 2007.
18. I am concerned that they will use my script or a substantially similar one to produce the movie and deprive me of the benefits of my intellectual property. Moreover, I am concerned that they will continue to use my name falsely in their communications to the public and shareholders and cause irreparable injury to me personally.
19. I am especially concerned that EADE will continue this pattern of deception. Among other concerns, he continues to:
a. Wrongfully use my script and illegally use my name to produce a movie;
b. Place me in a false light, affecting my professional relationships in the mixed martial arts and movie industries;
c. Subject me to liability for false statements and criminal activities by EADE and his businesses.
20. I have these concerns because after EADE failed to pay the $24,000 and terminated the director's contract, I learned more disturbing facts about EADE and his business practices.
21. I learned that EADE has been using "Never Submit" to prop up his corporations by making false "insider" statements about the movie project, including scores of postings on Internet bulletin boards. For example, he has used the false identity "investyrstallone" on InvestorsHub.com, to leak information to the public and shareholders about the movie. (See message board posting and press release attached as Exhibits Q and R.)
22. I learned that in the months preceding my termination, IMPERIA issued no fewer than 36 press releases about "Never Submit"
and that during the same time period EADE used the false identity "investyrstallone" to promote IMPERIA stock in at least 100 message postings on Investors.Hub.com. (See press release and message listings attached as Exhibits S and T.)
23. I am informed and believe that EADE has stolen my script and is desperately promoting his stock because he owes investors, employees and others an estimated $100,000 and he does not have the money to pay them. I am informed and believe that EADE is running his corporations as alter-egos for his illegal activities. And I am concerned because I learned the State Bar of California has suspended him from law practice 13 times. (See State Bar information attached as Exhibit U.)
24. Because of these facts and concerns, I filed my complaint for copyright infringement, breach of contract and false light.
Accordingly, I ask the court to enjoin EADE, IMPERIA, IMPERIA INTERNATIONAL, MULLER MEDIA, and NEVER SUBMIT, LLC from using my script "Never Submit" and my name in association with their business.
25. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Dated: May 17, 2007

JAMES HERGOTT