More of our emails (this is fair for the sake of full disclosure):

> Thank you for your detailed reply.
>
> My name is *********, I'm an attorney in Chicago.
>
> Comments below.
>
> > At the time of
> > the transaction, 1,066,666
> > shares represented less than 20% of our stake.
> > This exchange, by the way,
> > paved the road for an exchange between the same
> > family of funds and Jill
> > Kelly Productions directly. JKP subsequently sold
> > that stake for $3 million
> > gross dollars to a third party - something I imagine
> > any company in the
> > adult space would love. All in, $6.25 million gross
> > into JKP.
>
>
> Sure, I saw the portion about the trade of stocks and
> the subsequent selling to infuse cash. But what does
> this mean when a company loses $9 million in one year?

- I believe you should look deeper into the financials of the filings for
the answer. Since you are an attorney this should be simple for you. I
haven't looked lately but I believe most are attributable to "non-cash"
items, such as the preferred stock and warrant issuances at below market.
The vast majority of those losses are not related to cash flow loss, which
is where I think you are heading with this. Surely, you know the
difference.

>
> I'm told that you're the person to speak to about the
> ill-fated "JKP nightclub." You had a role in that, I
> presume?


Who told you that?

We introduced the management team of the club to JKP. JKP entered into a
Letter of Intent to acquire the club. For putting the deal together and
for supervising management here in NY, we were getting a small piece of the
deal. JKP later decided to walk away before final execution, so instead we
(meaning Maximum) decided to assume responsibility for whatever monies where
forwarded (minimal - about $108,000) and took possession ourselves. If
you want to know why JKP walked, ask the company themselves for the answer.
It would not be fair for me to represent them in this regard.

>
>
> > 2. As a symbol of our belief in the co moving
> > forward, we further invested
> > $600,000 hard dollars into a private placement that
> > is reflected in the SB-2
> > registration statement. Next to the London-based
> > fund, we are the largest
> > investor in Jill Kelly Productions. This is a far
> > cry from "cutting loose".
>
>
> Thank you for clarifying. I wasn't aware that you
> still had an ownership stake in the company.
>

Again, and I am surprised that you could not derive this from your own
postings since you are an attorney, it is black and white in the SB-2.
Your own posting:

Robert A. Friedland(2)(3)
Chief Executive Officer, Secretary and Chairman of the Board of Directors
16,594,000 52.5 %
Adrianne D. Moore(2)
President and Vice Chairman of the Board of Directors 5,172,000 20.4 %
Ronald C. Stone(2)
Chief Operating Officer and Chief Financial Officer 1,735,000 6.8 %
Daniel R. Ice(2)(4)
Director 500,000 1.9 %
Phillip D. London(2)(5)
Director 521,000 2 %
Keith Gordon(2)
Vice President 100,000 *
Robert Hollis(6)
Beneficial Owner 2,000,000 7.3 %
Kings Against 3, LLC(7)
Beneficial Owner 2,750,000 9.8 %
Maximum Ventures, Inc.(8)
Beneficial Owner 2,781,180 10.1 %
Jubilee Investment Trust, PLC(9)
Beneficial Owner 4,001,213 15.8 %
All Officers and Directors as a Group (6 persons)
24,622,000 78 %