ITEM 2.04 TRIGGER EVENTS THAT ACCELERATE OR INCREASE A DRIECT FINANCIAL
OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT
As previously disclosed on a Form 10-QSB for the quarter ended June 30, 2007, filed with the Securities and Exchange Commission on August 14, 2007, in November 2005, the Company and the Company's former President entered into a settlement agreement with Shane Mosley, a boxer, related to a judgment in connection with an unpaid boxing purse. The Company agreed to pay $565,000 to Mosley in installments was also entitled to a $100,000 credit against the settlement amount, contingent upon the transfer and assignment of the Company's rights to the Mosley Video Library. Any amounts unpaid by December 31, 2008 are immediately due.
In December 2006, Mosley filed a motion to restore the judgment as a result of a breach of the settlement because of non compliance to the settlement. In January 2007, the Company filed its opposition to this motion. On September 26, 2007, after a hearing on the merits, the United States District Court found in favor of Mosley and entered a judgment in the amount of $529,368 against the Company.
Yorkville / Cornell Tracking Board #board-9964
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