The magazine was first published in September 2002, with subsequent editions
published by Sobe Life, LLC in September 2004 and December 2004. Additionally,
we published the Spring 2005 and Summer 2005 issues of the magazine following
our acquisition of Sobe Life, LLC in April 2005. We published the Fall 2005
edition in September 2005 and we plan to publish the Winter 2005 edition in
December 2005.
Advertising in Trump World Magazine
Trump World magazine sells and carries conventional advertising. The size of
each advertisement ranges from one-third to one full page, or special units
(i.e., spreads, gatefolds or inserts). The publisher and sales team of Trump
World magazine is responsible for soliciting potential advertisers, negotiating
advertising contracts and securing executed insertion orders with them. To date,
Trump World magazines advertisers have typically been national businesses that
market products to high net worth individuals. The advertisers, starting with
the first national issue, in the first issues of Trump World magazine have
included London Jewelers, Cellini Jewelers, BlueStarJets private air travel,
Fendi bags, Tourneau watches and A-Link in which we featured Melania Trump.
Donald Trump
Donald Trump is one of most successful and renowned real estate developers in
the world. Long before the success of NBCs reality-based show, The Apprentice,
Donald Trump was a celebrity. The Apprentice is a series that focuses on a group
of young, ambitious entrepreneurs competing for a dream job as a top executive
in Donald Trumps business empire. It has been a top-rated television series for
the past one and one-half years and has a production commitment from NBC for two
more seasons.
Our License Agreement with Donald J. Trump and our Publishing Agreement with
Trump World Publications LLC
Our wholly owned subsidiary Sobe Life, LLC entered into a license agreement with
Donald J. Trump on May 28, 2004 that grants us an exclusive license to use the
trademark Trump World as the name of our magazine through August 30, 2009. In
consideration for the grant of this license, our wholly owned subsidiary Sobe
Life, LLC has agreed to pay Mr. Trump $120,000 upon the publication of the fall
(September) 2005 issue and an additional $120,000 upon the publication of the
winter (December) 2005 issue of Trump World magazine. Sobe Life, LLC has also
agreed to pay Mr. Trump a royalty of $135,000 for each issue of Trump World
magazine published thereafter regardless of the frequency of publication.
In accordance with the license agreement, Mr. Trump has the right to review and
approve each issue of Trump World magazine at least 10 days prior to each
publication in order to confirm that the issue meets the industry standards for
a premier, first-class lifestyle magazine.
In addition to the license agreement, Sobe Life, LLC entered into a five-year
publishing agreement with Trump World Publications LLC, of which Mr. Trump is
the managing member. Sobe Life, LLC first entered into this agreement on May 28,
2004, and it was last amended on July 27, 2005.
The publishing agreement, as amended, required Sobe Life, LLC to pay Trump World
Publications LLC $200,000 on July 30, 2005 in connection with all prior issues
of Trump World magazine including summer 2005, and to thereafter pay 7.5% of the
net profits generated by each issue of Trump World magazine beginning with the
fall (September) issue. These fees are in addition to the royalties payable
under the license agreement described above. The publishing agreement provides
that the net profits generated by each issue of Trump World magazine shall equal
all the gross revenues received with respect to an issue, less accounting costs
directly related to the issue (not to exceed $10,000 per year); legal costs
directly related to the issue (not to exceed $10,000 per year); and a percentage
of our general corporate expenses (including payroll, printing, rent and
photography expenses) based on the number of issues of Trump World magazine
published in a year compared to the total number of our publications in that
same year, including publications of our planned Poker Life magazine.