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<p align="center"><font face="Times New Roman" size="5"><b>UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br></b></font>
<font size="3"><b>WASHINGTON, DC 20549<br>______________________</b></font></p>
<p align="center"><font face="Times New Roman" size="5"><b>FORM 8-K</b></font></p>
<p align="center"><font face="Times New Roman" size="5"><b>CURRENT REPORT</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</b><br><br>Date of Report (Date of earliest event reported): March 3, 2008</font></p>
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<td colspan="6" valign="bottom" align="center"><font face="Times New Roman" size="5"><b>PARADISE MUSIC & ENTERTAINMENT, INC.</b></font>
<font face="Times New Roman" size="2"><br>(Exact Name of Registrant as Specified in Charter)</font></td>
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<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Delaware</b></font></td>
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<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>1-4415</b></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>13-3906452</b></font></td>
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<td valign="bottom" align="center"><font face="Times New Roman" size="2">(State
 or Other Jurisdiction of Incorporation)</font></td>
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<td valign="bottom" align="center"><font face="Times New Roman" size="2">(Commission
 File Number)</font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">(IRS Employer
 Identification No.)</font></td>
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<td valign="bottom" align="left" colspan="2"><font face="Times New Roman" size="2"><b>2637 East Atlantic Boulevard, #133, Pompano Beach, Florida</b></font></td>
<td><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>33062</b></font></td>
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<td width="15%" valign="bottom" align="center"><font face="Times New Roman" size="2">(Address
 of Principal Executive Offices)</font></td>
<td width="15%"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="1%"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="15%" valign="bottom" align="center"><font face="Times New Roman" size="2">(Zip Code)
</font></td>
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<td width="35%" valign="bottom" align="left"><font face="Times New Roman" size="2">Registrant&#146;s telephone number, including area code</font></td>
<td width="25%" valign="bottom" align="left">&#160;</td>
<td width="30%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>888-565-3259</b></font></td>
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<p align="center"><font face="Times New Roman" size="2">Former Name or Former Address, if Changed Since Last Report</font></p>
<p align="justify"><font face="Times New Roman" size="2">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under the following provisions:</font></p>
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<td width="3%" valign="top" align="left"><font face="wingdings" size="3">o</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></td>
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<td width="3%" valign="top" align="left"><font face="wingdings" size="3">o</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></td>
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<td width="3%" valign="top" align="left"><font face="wingdings" size="3">o</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></td>
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<td width="3%" valign="top" align="left"><font face="wingdings" size="3">o</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></td>
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<p><font face="Times New Roman" size="2"><b>Item 1.01 Entry into a Material Definitive
 Agreement.</b></font></p>
<p><font face="Times New Roman" size="2"><b>Item 2.03. Creation of a Direct Financial
 Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
</b></font></p>
<p><font face="Times New Roman" size="2"><b>Item 3.02 Unregistered Sales of Equity
 Securities.</b></font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2"><u>Convertible
 Debenture</u></font></p>
<p style="text-indent: 50px;" align="left"><font face="Times New Roman" size="2">On March 3,
 2008, Paradise Music &#038; Entertainment, Inc. (&#147;we,&#148; &#147;Paradise&#148; or the &#147;Company&#148;)
 entered into an agreement pursuant to which it issued and sold to Leaddog Capital
 L.P. (&#147;Leaddog&#148;) a Secured Convertible Debenture (the &#147;Debenture&#148;) in the principal
 amount of $179,300. The Debenture provides for payments of $7,500 monthly beginning
 September 1, 2008, with a due date (the &#147;Maturity Date&#148;) of February 28, 2010. Interest
 is payable on the unpaid principal amount of the Debenture until the principal amount
 of the Debenture is paid in full or has been converted into shares of Common Stock
 of the Company, as described below. The Debenture accrues interest at the annual
 rate of 14%, beginning on January 10, 2008. The interest may be paid either in cash
 or, at our option, shares of our Common Stock.</font></p>
<p style="text-indent: 50px;" align="left"><font face="Times New Roman" size="2">The holder
 of the Debenture may elect to convert the outstanding principal amount, plus accrued
 interest, in whole or in part (and, if in part, in multiples of $2,000), into shares
 of Common Stock at any time before the close of business on the Maturity Date. The
 outstanding principal balance of the Debenture is subject to automatic conversion
 on the Maturity Date, at which time all outstanding principal of the Debenture will
 automatically be converted into shares of Common Stock. The conversion price for
 any conversion of the Debenture elected by the holder or at maturity is the lesser
 of (a) $0.008 per share of Common Stock or (b) 75% of the average of the three lowest
 closing bid prices during the 20 trading days prior to the date of conversion. In
 the event we elect to pay any monthly interest in shares of our Common Stock, then
 the interest conversion price will be equal to 75% of the average of the three lowest
 closing bid prices during the 20 trading days prior to the date the holder receives
 the shares. Any shares issued by us for the payment of interest are required to
 be registered with the SEC pursuant to an effective registration statement or must
 be freely tradable pursuant to Rule 144 adopted pursuant to the Securities Act of
 1933, as amended (the &#147;Securities Act&#148;). Notwithstanding the ability of the holder
 to convert the principal of the Debenture into shares of our Common Stock, no such
 conversion will be permitted if such conversion would result in the ownership by
 the holder of more than 4.99% of the number of shares of Common Stock outstanding
 on the date of such conversion, as determined in accordance with SEC rules.</font></p>
<p style="text-indent: 50px;" align="left"><font face="Times New Roman" size="2">If (i) applicable
 rules of any securities exchange on which our shares of Common Stock may become
 traded limit the number of shares that we may issue upon the election of the holder
 to convert any principal amount of the Debenture, such that we are prohibited from
 issuing to the holder the full number of shares issuable upon such election to convert,
 or (ii) there are not a sufficient number of shares of Common Stock authorized under
 our certificate of incorporation to issue upon such election to convert, then the
 holder may elect to (A) require us to issue that number of shares of Common Stock
 that we are authorized to issue upon such conversion, at a conversion price equal
 to the average of the closing bid price per share of Common Stock for any five consecutive
 trading days during the 60 trading days immediately preceding the Conversion Date
 or (B) require us to redeem the portion of the Debenture that may not be converted
 into shares of Common Stock for an amount equal to the sum of (I) 133% of the principal
 of such portion of the Debenture that may not be converted, plus (II) any accrued
 but unpaid interest thereon. As of the date of this Report, our certificate of incorporation
 does not authorize us to issue all shares of Common Stock that are otherwise issuable
 upon (i) the election of the holder of the Debenture to convert the principal amount
 of the Debenture into shares of our Common Stock plus (ii) the election of all holders
 of outstanding shares of our preferred stock, options, and warrants to convert such
 stock, options, and warrants into shares of our Common Stock. We have agreed with
 Leaddog, pursuant to the Debenture Agreement described below, that we will use our
 best efforts to increase the number of shares of Common Stock that we are authorized
 to issue to 500,000,000.</font></p>
<p style="text-indent: 50px;" align="left"><font face="Times New Roman" size="2"><u>Agreement
 Concerning Secured Convertible Debentures</u></font></p>
<p style="text-indent: 50px;" align="left"><font face="Times New Roman" size="2">In addition
 to issuing the Debenture, on March 3, 2008 we entered into an Agreement Concerning
 Secured Convertible Debentures (the &#147;Debenture Agreement&#148;) with Leaddog and Environmental
 Testing Laboratories, Inc.</font></p>
<p align="center"><font face="Times New Roman" size="2">1</font></p>
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<p align="left"><font face="Times New Roman" size="2">(&#147;ETL&#148;), our wholly-owned operating subsidiary. In January
 2008, ETL had executed two separate debentures (the &#147;ETL Debentures&#148;), in the principal
 amounts of $94,300 and $85,000 (or an aggregate of $179,300), dated December 26,
 2007 and January 7, 2008, respectively, in consideration for loans by Leaddog in
 those amounts. The purpose of the Debenture Agreement was to cancel the ETL Debentures
 and replace the indebtedness represented by the ETL Debentures with the Debenture
 issued by the Company. In addition, we agreed to issue 30,000 shares of our Series
 C Preferred Stock to Leaddog Capital Partners, Inc., the general partner of Leaddog,
 for due diligence and structuring fees in connection with the transaction. Each
 share of our Series C Preferred Stock is convertible into 100 shares of Common Stock.</font></p>
<p style="text-indent: 50px;" align="left"><font face="Times New Roman" size="2">The obligations
 of ETL under the ETL Debentures were secured by the assets and accounts receivable
 of ETL, pursuant to two security agreements. Our obligations under the Debenture
 continue to be secured by those same assets of ETL, and the parties have not amended
 or cancelled the two security agreements. The parties to the Debenture Agreement
 agreed that Leaddog will be in a junior position only to ETL&#146;s current secured
 lender. The net proceeds of the ETL Debentures ($160,700) were used to retire a
 portion of existing indebtedness of ETL to one of its lenders, which indebtedness
 bore interest at the rate of 18%.</font></p>
<p style="text-indent: 50px;" align="left"><font face="Times New Roman" size="2">The Debenture
 was issued to Leaddog pursuant to an exemption from the registration requirements
 of the Securities Act contained in Rule 506 of Regulation D promulgated thereunder,
 inasmuch as, among other factors, the issuance of the Debenture to Leaddog without
 any form of general solicitation or general advertising, Leaddog&#146;s representation
 that it is an &#147;accredited investor&#148; as defined in Rule 501 under the Securities
 Act, and the placement of a restrictive legend on the Debenture (and any shares
 of Common Stock issued upon its conversion) restricting their resale or other transfer.</font></p>
<p><font face="Times New Roman" size="2"><b>Item 8.01 Other Events.</b></font></p>
<p style="text-indent: 50px;" align="left"><font face="Times New Roman" size="2">In a Current
 Report on form 8-K filed with the SEC on November 26, 2007, we reported that our
 Board of Directors had authorized ETL to execute a Memorandum of Understanding for
 the potential merger of ETL with and into Terra Trema, Inc. and that, as of the
 date of that Report, the Company was negotiating a definitive agreement for such
 a merger. The Company, ETL, and Terra Trema, Inc. have determined not to pursue
 such a merger, and no additional discussions are taking place at this time.</font></p>
<p><font face="Times New Roman" size="2"><b>Item 9.01 Financial Statements and Exhibits.
</b></font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2"></font></p>
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<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="left"><font face="Times New Roman" size="2">(d) Exhibits.</font></td>
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<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
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<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="5%" nowrap valign="bottom" align="left"><font face="Times New Roman" size="2">Exhibit</font></td>
<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
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<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Number</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Description</font></td>
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<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><hr size="1" color="#000000" noshade></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><hr size="1" color="#000000" noshade></td>
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<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">4.8</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Form of Secured
 Convertible Debenture Issued by Environmental Testing Laboratories, Inc. to Leaddog
 Capital L.P., dated December 26, 2007, in the principal amount of $94,300.00</font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
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<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">4.9</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Form of Secured
 Convertible Debenture Issued by Environmental Testing Laboratories, Inc. to Leaddog
 Capital L.P., dated January 7, 2008, in the principal amount of $85,000.00</font></td>
</tr>
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<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
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<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">4.10</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Form of Secured
 Convertible Debenture Issued by Paradise Music &#038; Entertainment, Inc. to Leaddog
 Capital L.P. dated February 29, 2008, in the principal amount of $179,300.00</font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
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<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">10.62</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Form of Security
 Agreement between Environmental Testing Laboratories, Inc. and Leaddog Capital L.P.,
 dated December 24, 2007</font></td>
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<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
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<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">10.63</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Form of Security
 Agreement between Environmental Testing Laboratories, Inc. and Leaddog Capital L.P.,
 dated January 4, 2008</font></td>
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</table>
<p align="center"><font face="Times New Roman" size="2">2</font></p>
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<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="5%" valign="top" align="left"><font face="Times New Roman" size="2">10.64</font></td>
<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Form of Agreement
 Concerning Secured Convertible Debentures among Paradise Music &#038; Entertainment,
 Inc., Environmental Testing Laboratories, Inc., and Leaddog Capital L.P., dated
 as of February 21, 2008</font></td>
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<td colspan="4"><font face="Times New Roman" size="1">&#160;</font></td>
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<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">99.1</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Press Release Issued March 11, 2008</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">3</font></p>
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<p align="center"><font face="Times New Roman" size="2">SIGNATURES</font></p>
<p><font face="Times New Roman" size="2">Pursuant to the requirements of the Securities
 and Exchange Act of 1934, the Registrant has duly caused this Current Report to
 be signed on its behalf by the undersigned hereto duly authorized.</font></p>
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<tr><td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>PARADISE
 MUSIC &#038; ENTERTAINMENT, INC.</b></font></td>
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
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<td width="40%" valign="bottom" align="left"><font face="Times New Roman" size="2">Date: March
 6, 2008</font></td>
<td width="10%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">By: <u>/s/ Richard
 P. Rifenburgh</u></font></td>
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Name: Richard
 P. Rifenburgh</font></td>
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Chairman and
 President</font></td>
</tr>
</table>
<br>
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<p align="center"><font face="Times New Roman" size="2">EXHIBIT INDEX</font></p>
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<td width="5%" nowrap valign="bottom" align="left"><font face="Times New Roman" size="2">Exhibit</font></td>
<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
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<td valign="bottom" align="left"><font face="Times New Roman" size="2">Number</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Description</font></td>
</tr>
<tr>
<td valign="bottom"><hr size="1" color="#000000" noshade></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><hr size="1" color="#000000" noshade></td>
</tr>
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<td valign="top" align="left"><font face="Times New Roman" size="2">4.8</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Form of Secured
 Convertible Debenture Issued by Environmental Testing Laboratories, Inc. to Leaddog
 Capital L.P., dated December 26, 2007, in the principal amount of $94,300.00</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">4.9</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Form of Secured
 Convertible Debenture Issued by Environmental Testing Laboratories, Inc. to Leaddog
 Capital L.P., dated January 7, 2008, in the principal amount of $85,000.00</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
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<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">4.10</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Form of Secured
 Convertible Debenture Issued by Paradise Music &#038; Entertainment, Inc. to Leaddog
 Capital L.P. dated February 29, 2008, in the principal amount of $179,300.00</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">10.62</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Form of Security
 Agreement between Environmental Testing Laboratories, Inc. and Leaddog Capital L.P.,
 dated December 24, 2007</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">10.63</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Form of Security
 Agreement between Environmental Testing Laboratories, Inc. and Leaddog Capital L.P.,
 dated January 4, 2008</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>

<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">10.64</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Form of Agreement
 Concerning Secured Convertible Debentures among Paradise Music &#038; Entertainment,
 Inc., Environmental Testing Laboratories, Inc., and Leaddog Capital L.P., dated
 as of February 21, 2008</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">99.1</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Press Release Issued March 11, 2008</font></td>
</tr>

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{"company-data": {"conformed-name": "PARADISE MUSIC & ENTERTAINMENT INC", "cik": "0001024464", "assigned-sic": "7812", "irs-number": "133906452", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-12635", "film-number": "08674767"}, "business-address": {"street1": "53 W 23RD ST", "city": "NEW YORK", "state": "NY", "zip": "10010", "phone": "2125902100"}, "mail-address": {"street1": "53 WEST 23RD ST", "city": "NEW YORK", "state": "NY", "zip": "10010"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 3, 2008
PARADISE MUSIC & ENTERTAINMENT, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware
1-4415
13-3906452
(State
 or Other Jurisdiction of Incorporation)
(Commission
 File Number)
(IRS Employer
 Identification No.)
2637 East Atlantic Boulevard, #133, Pompano Beach, Florida
33062
(Address
 of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code
888-565-3259
Former Name or Former Address, if Changed Since Last Report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive
 Agreement.
Item 2.03. Creation of a Direct Financial
 Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
Item 3.02 Unregistered Sales of Equity
 Securities.
Convertible
 Debenture
On March 3,
 2008, Paradise Music & Entertainment, Inc. ("we," "Paradise" or the "Company")
 entered into an agreement pursuant to which it issued and sold to Leaddog Capital
 L.P. ("Leaddog") a Secured Convertible Debenture (the "Debenture") in the principal
 amount of $179,300. The Debenture provides for payments of $7,500 monthly beginning
 September 1, 2008, with a due date (the "Maturity Date") of February 28, 2010. Interest
 is payable on the unpaid principal amount of the Debenture until the principal amount
 of the Debenture is paid in full or has been converted into shares of Common Stock
 of the Company, as described below. The Debenture accrues interest at the annual
 rate of 14%, beginning on January 10, 2008. The interest may be paid either in cash
 or, at our option, shares of our Common Stock.
The holder
 of the Debenture may elect to convert the outstanding principal amount, plus accrued
 interest, in whole or in part (and, if in part, in multiples of $2,000), into shares
 of Common Stock at any time before the close of business on the Maturity Date. The
 outstanding principal balance of the Debenture is subject to automatic conversion
 on the Maturity Date, at which time all outstanding principal of the Debenture will
 automatically be converted into shares of Common Stock. The conversion price for
 any conversion of the Debenture elected by the holder or at maturity is the lesser
 of (a) $0.008 per share of Common Stock or (b) 75% of the average of the three lowest
 closing bid prices during the 20 trading days prior to the date of conversion. In
 the event we elect to pay any monthly interest in shares of our Common Stock, then
 the interest conversion price will be equal to 75% of the average of the three lowest
 closing bid prices during the 20 trading days prior to the date the holder receives
 the shares. Any shares issued by us for the payment of interest are required to
 be registered with the SEC pursuant to an effective registration statement or must
 be freely tradable pursuant to Rule 144 adopted pursuant to the Securities Act of
 1933, as amended (the "Securities Act"). Notwithstanding the ability of the holder
 to convert the principal of the Debenture into shares of our Common Stock, no such
 conversion will be permitted if such conversion would result in the ownership by
 the holder of more than 4.99% of the number of shares of Common Stock outstanding
 on the date of such conversion, as determined in accordance with SEC rules.
If (i) applicable
 rules of any securities exchange on which our shares of Common Stock may become
 traded limit the number of shares that we may issue upon the election of the holder
 to convert any principal amount of the Debenture, such that we are prohibited from
 issuing to the holder the full number of shares issuable upon such election to convert,
 or (ii) there are not a sufficient number of shares of Common Stock authorized under
 our certificate of incorporation to issue upon such election to convert, then the
 holder may elect to (A) require us to issue that number of shares of Common Stock
 that we are authorized to issue upon such conversion, at a conversion price equal
 to the average of the closing bid price per share of Common Stock for any five consecutive
 trading days during the 60 trading days immediately preceding the Conversion Date
 or (B) require us to redeem the portion of the Debenture that may not be converted
 into shares of Common Stock for an amount equal to the sum of (I) 133% of the principal
 of such portion of the Debenture that may not be converted, plus (II) any accrued
 but unpaid interest thereon. As of the date of this Report, our certificate of incorporation
 does not authorize us to issue all shares of Common Stock that are otherwise issuable
 upon (i) the election of the holder of the Debenture to convert the principal amount
 of the Debenture into shares of our Common Stock plus (ii) the election of all holders
 of outstanding shares of our preferred stock, options, and warrants to convert such
 stock, options, and warrants into shares of our Common Stock. We have agreed with
 Leaddog, pursuant to the Debenture Agreement described below, that we will use our
 best efforts to increase the number of shares of Common Stock that we are authorized
 to issue to 500,000,000.
Agreement
 Concerning Secured Convertible Debentures
In addition
 to issuing the Debenture, on March 3, 2008 we entered into an Agreement Concerning
 Secured Convertible Debentures (the "Debenture Agreement") with Leaddog and Environmental
 Testing Laboratories, Inc.
1
("ETL"), our wholly-owned operating subsidiary. In January
 2008, ETL had executed two separate debentures (the "ETL Debentures"), in the principal
 amounts of $94,300 and $85,000 (or an aggregate of $179,300), dated December 26,
 2007 and January 7, 2008, respectively, in consideration for loans by Leaddog in
 those amounts. The purpose of the Debenture Agreement was to cancel the ETL Debentures
 and replace the indebtedness represented by the ETL Debentures with the Debenture
 issued by the Company. In addition, we agreed to issue 30,000 shares of our Series
 C Preferred Stock to Leaddog Capital Partners, Inc., the general partner of Leaddog,
 for due diligence and structuring fees in connection with the transaction. Each
 share of our Series C Preferred Stock is convertible into 100 shares of Common Stock.
The obligations
 of ETL under the ETL Debentures were secured by the assets and accounts receivable
 of ETL, pursuant to two security agreements. Our obligations under the Debenture
 continue to be secured by those same assets of ETL, and the parties have not amended
 or cancelled the two security agreements. The parties to the Debenture Agreement
 agreed that Leaddog will be in a junior position only to ETL's current secured
 lender. The net proceeds of the ETL Debentures ($160,700) were used to retire a
 portion of existing indebtedness of ETL to one of its lenders, which indebtedness
 bore interest at the rate of 18%.
The Debenture
 was issued to Leaddog pursuant to an exemption from the registration requirements
 of the Securities Act contained in Rule 506 of Regulation D promulgated thereunder,
 inasmuch as, among other factors, the issuance of the Debenture to Leaddog without
 any form of general solicitation or general advertising, Leaddog's representation
 that it is an "accredited investor" as defined in Rule 501 under the Securities
 Act, and the placement of a restrictive legend on the Debenture (and any shares
 of Common Stock issued upon its conversion) restricting their resale or other transfer.
Item 8.01 Other Events.
In a Current
 Report on form 8-K filed with the SEC on November 26, 2007, we reported that our
 Board of Directors had authorized ETL to execute a Memorandum of Understanding for
 the potential merger of ETL with and into Terra Trema, Inc. and that, as of the
 date of that Report, the Company was negotiating a definitive agreement for such
 a merger. The Company, ETL, and Terra Trema, Inc. have determined not to pursue
 such a merger, and no additional discussions are taking place at this time.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number
Description
4.8
Form of Secured
 Convertible Debenture Issued by Environmental Testing Laboratories, Inc. to Leaddog
 Capital L.P., dated December 26, 2007, in the principal amount of $94,300.00
4.9
Form of Secured
 Convertible Debenture Issued by Environmental Testing Laboratories, Inc. to Leaddog
 Capital L.P., dated January 7, 2008, in the principal amount of $85,000.00
4.10
Form of Secured
 Convertible Debenture Issued by Paradise Music & Entertainment, Inc. to Leaddog
 Capital L.P. dated February 29, 2008, in the principal amount of $179,300.00
10.62
Form of Security
 Agreement between Environmental Testing Laboratories, Inc. and Leaddog Capital L.P.,
 dated December 24, 2007
10.63
Form of Security
 Agreement between Environmental Testing Laboratories, Inc. and Leaddog Capital L.P.,
 dated January 4, 2008
2
10.64
Form of Agreement
 Concerning Secured Convertible Debentures among Paradise Music & Entertainment,
 Inc., Environmental Testing Laboratories, Inc., and Leaddog Capital L.P., dated
 as of February 21, 2008
99.1
Press Release Issued March 11, 2008
3
SIGNATURES
Pursuant to the requirements of the Securities
 and Exchange Act of 1934, the Registrant has duly caused this Current Report to
 be signed on its behalf by the undersigned hereto duly authorized.
PARADISE
 MUSIC & ENTERTAINMENT, INC.
Date: March
 6, 2008
By:
/s/ Richard
 P. Rifenburgh
Name: Richard
 P. Rifenburgh
Chairman and
 President
EXHIBIT INDEX
Exhibit
Number
Description
4.8
Form of Secured
 Convertible Debenture Issued by Environmental Testing Laboratories, Inc. to Leaddog
 Capital L.P., dated December 26, 2007, in the principal amount of $94,300.00
4.9
Form of Secured
 Convertible Debenture Issued by Environmental Testing Laboratories, Inc. to Leaddog
 Capital L.P., dated January 7, 2008, in the principal amount of $85,000.00
4.10
Form of Secured
 Convertible Debenture Issued by Paradise Music & Entertainment, Inc. to Leaddog
 Capital L.P. dated February 29, 2008, in the principal amount of $179,300.00
10.62
Form of Security
 Agreement between Environmental Testing Laboratories, Inc. and Leaddog Capital L.P.,
 dated December 24, 2007
10.63
Form of Security
 Agreement between Environmental Testing Laboratories, Inc. and Leaddog Capital L.P.,
 dated January 4, 2008
10.64
Form of Agreement
 Concerning Secured Convertible Debentures among Paradise Music & Entertainment,
 Inc., Environmental Testing Laboratories, Inc., and Leaddog Capital L.P., dated
 as of February 21, 2008
99.1
Press Release Issued March 11, 2008