Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

The Company has been named as a principal party to proceedings brought in the name of MMA Capital, LLC ("MMA") in United States District Court for the Northern District of California alleging breach of the Secured Convertible Promissory Note and Security Agreement executed by the parties on or about January 11, 2006. The complaint also alleges breach of the Confidential Settlement Agreement executed by the parties on or about March 5, 2007. MMA has petitioned the Court for a temporary restraining order and order to show cause regarding preliminary injunction against Dynamic Leisure Corporation prohibiting Dynamic, its agents, servants and employees, and all persons acting under, in concert with, or for them, from pledging, disposing of or destroying any of the assets that it has pledged as security to MMA for a $2.25 million loan that MMA made to Dynamic. The Motion will be made on the grounds that Dynamic intends to and will imminently enter into a convertible debt financing transaction with Trafalgar Capital Specialized Investment Fund and give Trafalgar a senior security interest in the Collateral which will irreparably harm MMA's interest in the Collateral. The Company recently received service of the complaint on January 24, 2008 and is reviewing its contents. The Company has retained counsel to prepare a responsive pleading.