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 <p><font size="1">&nbsp;</font></p>
 </td>
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 <p><font size="2">In December 2007, the FASB issued SFAS No. 160,
 Noncontrolling Interests in Consolidated Financial Statements, an amendment
 of ARB 51, which changes the accounting and reporting for minority interests.
 Minority interests will be recharacterized as noncontrolling interests and
 will be reported as a component of equity separate from the parent’s equity,
 and purchases or sales of equity interests that do not result in a change in
 control will be accounted for as equity transactions. In addition, net income
 attributable to the noncontrolling interest will be included in consolidated
 net income on the face of the income statement and, upon a loss of control,
 the interest sold, as well as any interest retained, will be recorded at fair
 value with any gain or loss recognized in earnings. SFAS No. 160 is effective
 for annual periods beginning after December 15, 2008. Management currently believes that the
 adoption of this statement will not have a material impact on the Company’s
 financial statements.</font></p>
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 <p><font size="1">&nbsp;</font></p>
 </td>
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 <p><font size="2">In March 2008, the FASB issued FASB Statement No.
 161, Disclosures about Derivative Instruments and Hedging Activities. The new
 standard is intended to improve financial reporting about derivative
 instruments and hedging activities by requiring enhanced disclosures to
 enable investors to better understand their effects on an entity’s financial
 position, financial performance, and cash flows. It is effective for
 financial statements issued for fiscal years and interim periods beginning
 after November 15, 2008, with early application encouraged. Management
 currently believes that the adoption of this statement will not have a
 material impact on the Company’s financial statements.</font></p>
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 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2">In May 2008, the FASB issued Statement No. 162, “The
 Hierarchy of Generally Accepted Accounting Principles” (“SFAS 162”). The new
 standard is intended to improve financial reporting by identifying a
 consistent framework, or hierarchy, for selecting accounting principles to be
 used in preparing financial statements that are presented in conformity with
 U.S. generally accepted accounting principles (GAAP) for nongovernmental
 entities. Prior to the issuance of SFAS 162, GAAP hierarchy was defined in
 the American Institute of Certified Public Accountants (AICPA) Statement on
 Auditing Standards (SAS) No. 69, The
 Meaning of Present Fairly in Conformity With Generally Accepted
 Accounting Principles. SFAS 162 is effective 60 days following the SEC’s
 approval of the Public Company Accounting Oversight Board Auditing amendments
 to AU Section 411, The Meaning of Present Fairly in Conformity with Generally
 Accepted Accounting Principles. Management currently believes that the
 adoption of this statement will not have a material impact on the Company’s
 financial statements.</font></p>
 </td>
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 <p><font size="2">(3)</font></p>
 </td>
 <td colspan="2" valign="TOP">
 <p><font size="2"><u>Acquisition of 3 For All Partners, LLC</u></font></p>
 </td>
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 <td colspan="2" valign="TOP">
 <p><font size="2">On June 30, 2008, the Company, through its
 wholly-owned subsidiary U.S. Concepts LLC, acquired substantially all of the
 assets of 3 For All Partners, LLC, d/b/a mktgpartners (“mktgpartners”)
 pursuant to an Asset Purchase Agreement between the Company, U.S. Concepts
 LLC, mktgpartners and mktgpartners’ members.
 Founded in 2003, mktgpartners focuses on entertainment and sports
 marketing, experiential marketing and promotional media, and is headquartered
 in New York, with additional offices in Chicago, San Francisco and Toronto.</font></p>
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 <td colspan="2" valign="TOP">
 <p><font size="2">The consideration for the acquisition consisted of
 $3.25 million in cash and 332,226 common shares (the “Share Consideration”)
 of the Company’s common stock, valued at approximately $1,000,000. In addition the Company incurred $98,251
 in direct acquisition costs.</font></p>
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 <td colspan="2" valign="TOP">
 <p><font size="2">In connection with the acquisition, the Company
 hired all of mktgpartners’ employees and issued 166,113 shares of restricted
 common stock of the Company, valued at approximately $500,000, to certain of
 those employees. The restricted
 shares vest annually in equal installments over five years.</font></p>
 </td>
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 <p><font size="1">&nbsp;</font></p>
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 <p><font size="1">&nbsp;</font></p>
 </td>
 <td colspan="2" valign="TOP">
 <p><font size="2">Pursuant to the Asset Purchase Agreement, $750,000
 of the cash consideration and the entire Share Consideration were deposited
 into an escrow account to be held for a period of 18 months to satisfy indemnification
 claims, if any, that may be made by the Company under the Asset Purchase
 Agreement. In addition, as more fully
 set forth in the Asset Purchase Agreement, all or a portion of the escrowed
 consideration will be subject to release to the Company upon the occurrence
 of certain specified events under the Asset Purchase Agreement, including the
 termination of employment (other than due to death or by the Company without
 cause), of certain key employees of mktgpartners during the first year following
 the closing of the acquisition, and the failure to achieve “Gross Margin”
 targets during the 12 month period following the closing.</font></p>
 </td>
 </tr>
</tbody></table>
<table>
<tbody><tr>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>In December 2007, the FASB issued SFAS No. 160,
 Noncontrolling Interests in Consolidated Financial Statements, an amendment
 of ARB 51, which changes the accounting and reporting for minority interests.
 Minority interests will be recharacterized as noncontrolling interests and
 will be reported as a component of equity separate from the parent’s equity,
 and purchases or sales of equity interests that do not result in a change in
 control will be accounted for as equity transactions. In addition, net income
 attributable to the noncontrolling interest will be included in consolidated
 net income on the face of the income statement and, upon a loss of control,
 the interest sold, as well as any interest retained, will be recorded at fair
 value with any gain or loss recognized in earnings. SFAS No. 160 is effective
 for annual periods beginning after December 15, 2008. Management currently believes that the
 adoption of this statement will not have a material impact on the Company’s
 financial statements.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>In March 2008, the FASB issued FASB Statement No.
 161, Disclosures about Derivative Instruments and Hedging Activities. The new
 standard is intended to improve financial reporting about derivative
 instruments and hedging activities by requiring enhanced disclosures to
 enable investors to better understand their effects on an entity’s financial
 position, financial performance, and cash flows. It is effective for
 financial statements issued for fiscal years and interim periods beginning
 after November 15, 2008, with early application encouraged. Management
 currently believes that the adoption of this statement will not have a
 material impact on the Company’s financial statements.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>In May 2008, the FASB issued Statement No. 162, “The
 Hierarchy of Generally Accepted Accounting Principles” (“SFAS 162”). The new
 standard is intended to improve financial reporting by identifying a
 consistent framework, or hierarchy, for selecting accounting principles to be
 used in preparing financial statements that are presented in conformity with
 U.S. generally accepted accounting principles (GAAP) for nongovernmental
 entities. Prior to the issuance of SFAS 162, GAAP hierarchy was defined in
 the American Institute of Certified Public Accountants (AICPA) Statement on
 Auditing Standards (SAS) No. 69, The
 Meaning of Present Fairly in Conformity With Generally Accepted
 Accounting Principles. SFAS 162 is effective 60 days following the SEC’s
 approval of the Public Company Accounting Oversight Board Auditing amendments
 to AU Section 411, The Meaning of Present Fairly in Conformity with Generally
 Accepted Accounting Principles. Management currently believes that the
 adoption of this statement will not have a material impact on the Company’s
 financial statements.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font>(3)</font></p>
</td>
<td>
<p><font><u>Acquisition of 3 For All Partners, LLC</u></font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>On June 30, 2008, the Company, through its
 wholly-owned subsidiary U.S. Concepts LLC, acquired substantially all of the
 assets of 3 For All Partners, LLC, d/b/a mktgpartners (“mktgpartners”)
 pursuant to an Asset Purchase Agreement between the Company, U.S. Concepts
 LLC, mktgpartners and mktgpartners’ members.
 Founded in 2003, mktgpartners focuses on entertainment and sports
 marketing, experiential marketing and promotional media, and is headquartered
 in New York, with additional offices in Chicago, San Francisco and Toronto.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>The consideration for the acquisition consisted of
 $3.25 million in cash and 332,226 common shares (the “Share Consideration”)
 of the Company’s common stock, valued at approximately $1,000,000. In addition the Company incurred $98,251
 in direct acquisition costs.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>In connection with the acquisition, the Company
 hired all of mktgpartners’ employees and issued 166,113 shares of restricted
 common stock of the Company, valued at approximately $500,000, to certain of
 those employees. The restricted
 shares vest annually in equal installments over five years.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>Pursuant to the Asset Purchase Agreement, $750,000
 of the cash consideration and the entire Share Consideration were deposited
 into an escrow account to be held for a period of 18 months to satisfy indemnification
 claims, if any, that may be made by the Company under the Asset Purchase
 Agreement. In addition, as more fully
 set forth in the Asset Purchase Agreement, all or a portion of the escrowed
 consideration will be subject to release to the Company upon the occurrence
 of certain specified events under the Asset Purchase Agreement, including the
 termination of employment (other than due to death or by the Company without
 cause), of certain key employees of mktgpartners during the first year following
 the closing of the acquisition, and the failure to achieve “Gross Margin”
 targets during the 12 month period following the closing.</font></p>
</td>
</tr>
</tbody></table>